# EDGAR Filing Document

**Accession Number:** 0001499505
**File Stem:** 0001628280-23-007291
**Filing Date:** 2023-3
**Character Count:** 502724
**Document Hash:** eeb84e8ac9b6fe201c7607a3e9e4a17d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-007291.hdr.sgml**: 20230309

**ACCESSION NUMBER**: 0001628280-23-007291

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230309

**DATE AS OF CHANGE**: 20230309

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Adecoagro S.A.
- **CENTRAL INDEX KEY:** 0001499505
- **STANDARD INDUSTRIAL CLASSIFICATION:** AGRICULTURE PRODUCTION - CROPS [0100]
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35052
- **FILM NUMBER:** 23719675

**BUSINESS ADDRESS:**
- **STREET 1:** 13-15 Avenue de la Liberte
- **CITY:** N/A
- **STATE:** N4
- **ZIP:** L-1931
- **BUSINESS PHONE:** 352 2689-8213

**MAIL ADDRESS:**
- **STREET 1:** 13-15 Avenue de la Liberte
- **CITY:** N/A
- **STATE:** N4
- **ZIP:** L-1931

    

**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 2023

**Commission File Number: 001-35052** 

**Adecoagro S.A.**

**(Translation of registrant's name into English)**

**Vertigo Naos Building 6, Rue Eugène 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 <u>X</u> 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):

Yes  No <u>X</u>

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):

Yes  No <u>X</u>

&nbsp;&nbsp;&nbsp;&nbsp;

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| **ITEM** | |
| 99.1. | Earnings release, dated March 9, 2023, related to the registrant's results for the fourth quarter ended December 31, 2022. |
| 99.2 | Audited consolidated financial statements of the registrant as of and for the year ended December 31, 2022. |

---

&nbsp;&nbsp;&nbsp;&nbsp;

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**SIGNATURE**

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.

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| | | |
|:---|:---|:---|
| **Adecoagro S.A.** | **Adecoagro S.A.** | **Adecoagro S.A.** |
| By: | /s/ Emilio Federico Gnecco | /s/ Emilio Federico Gnecco |
|  | Name: | Emilio Federico Gnecco |
|  | Title: | Chief Financial Officer |

---

Date: March 9, 2023

&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 99.1

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ![coverpage4q22.jpg](coverpage4q22.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;![coverpageer.jpg](coverpageer.jpg) |
|  | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** |
|  | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** |
|  | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** |
| **4Q22 Earning Release Conference Call** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** |
|  | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** | **Adecoagro's Adj EBITDA reached $433 million in 2022, in line with 2021 despite higher global costs and challenging weather. During 2022 the company distributed 47% of NCFO via cash dividend and share repurchases.** |
| **English Conference Call** | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. |
| March 10, 2023 | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. |
| 9 a.m. (US EST) | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. |
| 11 a.m. (Buenos Aires/Sao Paulo time) | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. | Luxembourg, March 9, 2023 - Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the fourth quarter ended December 31, 2022. The financial information contained in this press release is based on 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 35 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release. |
| 3 p.m. (Luxembourg) |  |  |  |  |  |  |  |
|  | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** |  |  |
|  | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** |  |  |
|  | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** | **Financial Performance - Highlights** |  |  |
| Zoom link details available at | ***$ thousands*** | **4Q22** | **4Q21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| www.ir.adecoagro.com | Gross Sales | 382016 | 320545 | 19.2% | 1351707 | 1097723 | 23.1% |
|  | Net Sales <sup>(1)</sup> | 373235 | 312762 | 19.3% | 1324477 | 1070153 | 23.8% |
|  | **Adj EBITDA** <sup>(2)</sup> |  |  |  |  |  |  |
| **Investor Relations** | &nbsp;&nbsp;&nbsp;Farming & Land Transformation | 10288 | 10474 | (1.8)% | 82911 | 123834 | (33.0)% |
| Emilio Gnecco | &nbsp;&nbsp;&nbsp;Sugar, Ethanol & Energy | 101132 | 65026 | 55.5% | 373770 | 334854 | 11.6% |
| CFO | &nbsp;&nbsp;&nbsp;Corporate Expenses | (5636) | (5975) | (5.7)% | (23828) | (21584) | 10.4% |
| Victoria Cabello | **Total Adj EBITDA** | **105784** | **69525** | **52.2%** | **432853** | **437104** | **(1.0)%** |
| IR Officer | **Adj EBITDA Margin** <sup>(2)</sup> | **28.3%** | **22.2%** | **27.5%** | **32.7%** | **40.8%** | **(20.0)%** |
|  | *Net Income* | 2732 | 58753 | (95.4)% | 108606 | 130717 | (16.9)% |
| **Email** | Adj Net Income <sup>(3)</sup> | 18568 | 57074 | (67.5)% | 124521 | 157218 | (20.8)% |
| ir@adecoagro.com | ***LTM Adj Free Cash Flow from Op (NCFO)*** <sup>(4)</sup> | **141286** | **151769** | **(6.9)%** | **141286** | **151769** <sup>(5)</sup> | **(6.9)%** |
|  | **LTM Adj Free Cash Flow** <sup>(4)</sup> | **70500** | **93739** | **(24.8)%** | **70500** | **93739** <sup>(5)</sup> | **(24.8)%** |
|  | **Operating Performance - Highlights** | **Operating Performance - Highlights** | **Operating Performance - Highlights** | **Operating Performance - Highlights** | **Operating Performance - Highlights** | **Operating Performance - Highlights** | **Operating Performance - Highlights** |
|  | Sugarcane milled (thousand tons) | 3156 | 1252 | 152.0% | 10485 | 10940 | (4.2)% |
| **Website:** | Farming Planted Area (Hectares) | 291843 | 262110 | 11.3% | 291843 | 262110 | 11.3% |
| www.adecoagro.com | Milk Produced (million liters) | 47.6 | 46.7 | 2.0% | 185.6 | 173.1 | 7.2% |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Free Cash Flow from Operations<sup>(5)</sup> (also referred to as NCFO) amounted to $141 million in 2022, guaranteeing a minimum distribution of $56.5 million to be paid in 2023 via dividend and share repurchases.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales presented a year-over-year increase of 19.3% in 4Q22 and 23.8% in 2022 on a solid commercial strategy in all of our business units. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA in 4Q22 was 52.2% higher year-over-year driven by an outperformance of the Sugar, Ethanol & Energy business whereas for the full year it amounted to $433 million, in line with 2021. |
| ![argoa07.jpg](argoa07.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. | &nbsp;&nbsp;&nbsp;&nbsp;(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/(Loss). Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income to profit for the period. <br>&nbsp;&nbsp;&nbsp;&nbsp;(4) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow to Net Increase/(Decrease) in Cash and Equivalents. <br>&nbsp;&nbsp;&nbsp;&nbsp;(5) As reported in our 2021 Annual Report. |
| ![argoa07.jpg](argoa07.jpg) |  |  |  |  |  |  |  |

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![cover4q22.jpg](cover4q22.jpg)<br>

Sugar, Ethanol & Energy business&nbsp;&nbsp;&nbsp;&nbsp;

◦ Adjusted EBITDA in our Sugar, Ethanol & Energy business reached $101.1 million in 4Q22, 55.5% or $36.1 million higher compared to the same period of last year. This was positively impacted by (i) an increase in crushing volume of 1.9 million tons compared to 4Q21 driven by greater cane availability and enhanced agricultural productivity indicators; (ii) our flexibility to continuously maximize production of the product with the highest marginal contribution (44% of total TRS production diverted to sugar compared to only 7% during 4Q21; and 93% of total ethanol production was anhydrous ethanol compared to 64% last year); coupled with (iii) lower cost of production and higher mark-to-market of our harvested cane, both driven by higher volume.

◦ In 2022 Adjusted EBITDA in our Sugar, Ethanol & Energy business reached $373.8 million, $38.9 million higher year-over-year. Crushing volume amounted to 10.5 million tons, 0.5 million tons lower than in 2021, due to the start of crushing activities in mid-March, following a short inter-harvest period. Despite lower volumes, higher results were mostly explained by an increase in net sales driven by our operational and commercial flexibility which enabled us to benefit from attractive prices of ethanol and sugar, especially during the first half of the year. Throughout 2022, the price scenario of our products experienced significant changes. The late start of harvesting activities in Center-South Brazil and strong international oil prices were constructive for prices at the beginning of the year. To benefit from this scenario we (i) carried-over production from 2021 into 2022 to be sold at higher prices; and (ii) cleared out our tanks at the peak of prices achieving record sale volumes (23% of ethanol sales at prices over 26 ct/lb sugar equivalent). By mid-year prices, especially of ethanol, experienced downward pressure caused by regulatory changes in Brazil (reduction of ICMS and zeroing of federal taxes) and by the delay in adjusting domestic gasoline prices to reflect international parity. We were able to rapidly adapt our strategy to the current context by focusing on (i) the commercialization of sugar and anhydrous ethanol, while we built inventory of hydrous ethanol; (ii) exporting 35% of our anhydrous ethanol production into Europe to capture a premium versus domestic prices – thanks to our certifications and ability to meet product specification; and (iii) using our bagasse as fuel to dehydrate ethanol stocks rather than to produce energy due to lower spot prices. Results were partially offset by higher costs of inputs, such as diesel and salaries, among others - partially mitigated by our strategy to be self-sufficient in potash fertilizer, which accounts for 48% of our total agricultural inputs' requirements. This not only reduces our exposure to spot prices but improves our sustainability profile.

◦ We have entered into 2023 with good sugarcane availability and solid productivity indicators. As expected, this has enabled us to resume our continuous harvest model. We are currently one of the few players in Brazil crushing and the only player producing sugar. Being able to crush cane year-round, even during the traditional inter-harvest period, is one of our main competitive advantages. While the Sugar & Ethanol industry in Brazil has to rely on inventories carried over from the past year, we are able to supply new production into the market and continuously maximize the product that offers the highest marginal contribution, which nowadays is sugar (40% hedged at 19.4 ct/lb). Weather going normal, we expect our crushing volume in 2023 to be around 15% higher than in 2022 on account of (i) better productivity outlook; and (ii) greater sugarcane availability. This, in turn, will result in a reduction in unitary cash cost, due to better dilution of fixed costs.

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![cover4q22.jpg](cover4q22.jpg)<br>

Farming & Land Transformation business

◦ Adjusted EBITDA in the Farming and Land Transformation business amounted to $10.3 million in 4Q22, in line with 4Q21. Our Rice and Dairy businesses presented an outperformance compared to the same period of last year, which was fully offset by the $7.4 million year-over-year reduction in the Adjusted EBITDA of our Crops business.

◦ As we had already anticipated in our previous reports, Adjusted EBITDA for the full year was 33.0% lower than in 2021, reaching $82.9 million. Higher results of our Dairy business driven by volume and better mix of higher value added products, were fully offset by an underperformance of our Crops and Rice businesses. Results were mainly impacted by higher costs, an uneven performance of yields and lower rice prices. Margins were pressured by the global inflationary environment which led to an overall increase in costs of agricultural inputs in U.S. dollars, including diesel and agrochemicals, as well as higher logistic costs, among others. In terms of yields, rice presented a reduction of 1.0 Tn/Ha compared to the previous campaign as a consequence of La Niña weather event, while peanut and sunflower also performed below last year's average (5.3% and 3.9% lower, respectively). Moreover, yields for both of our second crops (soybean and corn) also reported a decline compared to the previous campaign (19.2% and 6.0% lower, respectively).

◦ La Niña weather event has extended its effects during the beginning of 2023 and continue affecting production as of today. Almost all of the productive regions of Argentina and Uruguay are experiencing losses in their summer crop productions. Although we are diversified in terms of crops and geographical regions, due to lack of soil moisture because of the drought, we had to adjust our planting calendar and reduce area. We are constantly reviewing the evolution of each crop and expect yields to be lower than the previous harvest year. On the other hand, our Rice and Dairy businesses, which were less affected by the drought, have a much better outlook for the current campaign.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Remarks</u>

2022 Shareholder Distribution Update

◦ 2022 was the first year of distribution as per our Distribution Policy announced in November 2021. This policy consists of a minimum distribution of 40% of the Adjusted Free Cash Flow from Operations (NCFO) generated during the previous year, via a combination of share repurchases and dividends.

◦ During 2022 we distributed a total of $71.8 million, or 47% of the NCFO generated in 2021, representing a distribution yield of 7.1%. This was executed via the repurchase of 4.6 million shares at an average price of $8.02 per share (average market price for the year stood at $9.13), totaling $36.8 million. In addition, we distributed cash dividends in the amount of $35.0 million, paid in two installments of $17.5 million each in May and November 2022, representing approximately $0.1571 and $0.1603 per share, respectively.

2023 Announced Shareholder Distribution

◦ In 2022, we generated $141.3 million of NCFO, which equals to a minimum distribution of $56.5 million during 2023. Cash dividends will amount to $35.0 million to be paid in two installments of $17.5 million each, on or about May and November 2023. Such dividend distribution is subject to the approval of the annual shareholder meeting to be held next April 19th. The balance will be distributed via buybacks and/or dividends as the case may be.

◦ During the first two months of the year, we repurchased 0.7 million shares at an average price of $7.95 per share, totaling $5.5 million. Going forward we expect to continue repurchasing shares, in line with our commitment to generate long term value for our shareholders.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>ESG Update</u>

Led by our ESG committee, throughout 2022 we worked on (i) consolidating our ESG strategy; (ii) analyzing alternatives to enhance our ESG communication to stakeholders and expand our investor base; and (iii) reviewing the company's operations in order to identify potential opportunities to strengthen our ESG performance. Below are some of our main developments of the year.

◦ Innovation: We continued developing and adopting technologies to become more efficient producers of food and renewable energy and further reduce our carbon footprint. Examples of this include (i) our proprietary technology to produce biogas from vinasse, which is then used in the production of energy or converted into biomethane to replace diesel consumption; (ii) the replacement of synthetic fertilizer with biofertilizer produced from subproducts; (iii) the construction of a second biodigestor which produces energy from cow manure; and (iv) the continuous implementation of agtech, such as the selective application of agrochemicals using drones.

◦ Integrated report: By mid-2022 we released our first Integrated Report, together with our audited 2021 Sustainability report. We prepared these reports following the Integrated Reporting Framework, GRI and SASB standards, and showing our contribution to the United Nation's 2030 Agenda. Please visit our Sustainability microwebsite (https://sustainability.adecoagro.com/en) for more information.

◦ Publication of policies: In addition to our existing Integrated Policy and Food Safety & Quality Policy, during 2022 we published the following company-wide policies: (i) Environmental; (ii) Human Rights; (iii) Diversity & Inclusion; (iv) Occupational Health & Safety; and (vi) Animal Welfare Policy.

◦ Engagement with rating agencies: With the goal of gaining a better understanding of information requirements from investors and the general market, we engaged with three of the most relevant ESG rating agencies. Throughout this process we identified opportunities for improvement, strictly related to information disclosure and communication, which we will continue to tackle in the short and medium term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Corporate Sustainability Assessment (S&P Global): In the 2022 CSA, Adecoagro performed in the 87<sup>th</sup> percentile in the Food Products industry, becoming a top #13 company out of every 100 companies, reflecting an improvement from the 66<sup>th</sup> percentile in the past assessment year. (Score date: February 17<sup>th</sup>, 2023)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Sustainalytics (Morningstar): Adecoagro's score was upgraded one notch, outperforming 62% of the players in the Agriculture subindustry. (Score date: January 27<sup>th</sup>, 2022). Next update will be published on or about 3Q23.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ MSCI: Adecoagro ranked "A", performing in the 76<sup>th</sup> percentile of the Food Products industry. (Score date: February 24<sup>th</sup>, 2022). Feedback on our new score should be available in 1Q23.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Sugar, Ethanol & Energy Segment - Operational Performance</u>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION** | **SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION** | **SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION** | **SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION** | **SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION** | | | |
| Operating Data | **Metric** | **4Q22** | **4Q21** | **Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| **Milling** |  |  |  |  |  |  |  |
| **Sugarcane Milled** | **tons** | **3156246** | **1252357** | **152.0%** | **10484888** | **10940307** | **(4.2)%** |
| *Own Cane* | *tons* | *3124796* | *1247086* | *150.6%* | *10117148* | *10479720* | *(3.5)%* |
| *Third Party Cane* | *tons* | *31450* | *5271* | *496.7%* | *367740* | *460587* | *(20.2)%* |
| **Production** |  |  |  |  |  |  |  |
| TRS Equivalent Produced | tons | 433472 | 163718 | 164.8% | 1435225 | 1485321 | (3.4)% |
| Sugar | tons | 184382 | 11441 | n.m | 481919 | 546819 | (11.9)% |
| Ethanol | M3 | 138014 | 88071 | 56.7% | 540231 | 534603 | 1.1% |
| *Hydrous Ethanol* | *M3* | *9256* | *31397* | *(70.5)%* | *184644* | *292708* | *(36.9)%* |
| *Anhydrous Ethanol* <sup>(1)</sup> | *M3* | *128758* | *56674* | *127.2%* | *355587* | *241896* | *47.0%* |
| Sugar mix in production | % | 44% | 7% | 508.7% | 35% | 38% | (8.8)% |
| Ethanol mix in production | % | 56% | 93% | (40.1)% | 65% | 62% | 5.5% |
| Energy Exported (sold to grid) | MWh | 169758 | 159401 | 6.5% | 608964 | 730739 | (16.7)% |
| *Cogen efficiency (KWh sold/ton crushed)* | *KWh/ton* | *53.8* | *127.3* | *(57.7)%* | *58.1* | *66.8* | *(13.0)%* |
| **Agricultural Metrics** |  |  |  |  |  |  |  |
| Harvested own sugarcane | tons | 3124796 | 1247086 | 150.6% | 10117148 | 10479720 | (3.5)% |
| Harvested area | Hectares | 38567 | 19044 | 102.5% | 152074 | 152830 | (0.5)% |
| Yield | tons/hectare | 81 | 65 | 23.7% | 67 | 69 | (3.0)% |
| TRS content | kg/ton | 134 | 120 | 11.6% | 131 | 128 | 2.2% |
| TRS per hectare | kg/hectare | 10873 | 7877 | 38.0% | 8692 | 8766 | (0.8)% |
| Mechanized harvest | % | 100% | 100% | —% | 100% | 99% | 0.2% |
| **Area** |  |  |  |  |  |  |  |
| Sugarcane Plantation | hectares | 192987 | 185806 | 3.9% | 192987 | 185806 | 3.9% |
| Expansion & Renewal Area | hectares | 5786 | 8900 | (35.0)% | 31405 | 29311 | 7.1% |

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(1) In 4Q22 we produced 28,430 cubic meters of anhydrous ethanol by dehydrating our hydrous ethanol stocks. On an annual basis, this figure increases to 63,777 cubic meters of extra anhydrous ethanol production.

As mentioned in past releases, in mid-2021 a cold front hit Brazil's key productive areas causing frost damage on sugarcane plantations and a reduction in sugarcane availability towards the end of 2021 and beginning of 2022. Despite normally operating based on a continuous harvest model (meaning that we can crush cane year-round), we entered into an inter-harvest period from December 2021 to mid-March 2022 to allow our sugarcane to recover. Productivity indicators throughout the first semester of 2022 were below average due to the lagging impact of the adverse weather. However, they presented a significant recovery towards the second semester, as there was no longer sugarcane affected by the frost and due to the favorable impact of rains on yield.

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![cover4q22.jpg](cover4q22.jpg)<br>

Thus, the year-over-year comparison for the fourth quarter reflects the impact of the adverse weather on 4Q21 and a significant recovery in our operational indicators in 4Q22. Crushing volume, for instance, amounted to 3.2 million tons during 4Q22, 1.9 million tons higher compared to the same period of last year. Sugarcane yields during the quarter were 23.7% higher year-over-year reaching 81 tons per hectare, while TRS content presented a 11.6% improvement amounting to 134 kg/ton.

On a full year basis, crushing volume reached 10.5 million, 4.2% lower compared to the same period of last year. This was mostly explained by the first quarter dynamics as it captures the late start of crushing activities in 2022, enhanced by weaker agricultural productivity indicators. In terms of yields, these presented a gradual improvement throughout the quarters of 2022 until reaching normal levels in 4Q, as we expected, whereas TRS content reached 131 kg/ton, marking a 2.2% year-over-year increase.

It is important to highlight that we have entered 2023 with good sugarcane availability which enabled us to resume our continuous harvest model. In other words, we are currently undergoing crushing activities and supplying new products to the market. Moreover, the cane that is being crushed presents high productivity levels while we continue to maximize sugar, the product offering a premium. Going forward, and assuming weather evolving normal, we expect our crushing volumes to be around 15% higher than in 2022 on account of (i) higher sugarcane availability thanks to the expansion planting activities conducted throughout the last years to supply our growing crushing capacity; coupled with (ii) a better productivity outlook.

In terms of mix, during 4Q22 our maximization strategy constantly switched in order to always produce the product offering the highest marginal contribution. These changes were driven by the following impacts such as (i) the regulatory measures taken by the Brazilian government which caused a reduction in the price of both hydrous ethanol and gasoline throughout the second half of 2022; (ii) the stronger demand for anhydrous ethanol due to the 27% mandatory blend with gasoline; and (iii) the international demand for Brazilian sugar as the country was the only active supplier at that moment. On average, anhydrous ethanol in Mato Grosso do Sul traded at 19.6 cts/lb, 1.6% premium to sugar whereas hydrous ethanol traded at 17.9 cts/lb, 7.1% discount to sugar. As a result, we diverted as much as 56% of our TRS to ethanol. To further take advantage of price premiums, 93% of our total ethanol production was anhydrous ethanol, compared to 64% during 4Q21, out of which we have been able to export a portion to Europe at attractive prices (as we have the necessary certifications and industrial capacity to meet product specifications). This high degree in flexibility constitutes one of our most important competitive advantages, since it allows us to make a more efficient use of our fixed assets and profit from higher relative prices.

On an annual basis, production mix favored ethanol, the product trading at a price premium, to which we diverted 65% of total TRS, compared to 62% in 2021. We started the year maximizing ethanol production in order to profit from attractive prices, which peaked in April, and continued to do so until mid-third quarter when the regulatory measures in the tax scheme of fuels got approved. As always, our production strategy constantly switched to produce at all times the product that offered a premium, whether that be sugar or ethanol, proving the high degree of flexibility of our fixed assets.

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![cover4q22.jpg](cover4q22.jpg)<br>

Exported energy during the quarter totaled 170 thousand MWh, 6.5% higher compared to the same period of 2021. Despite the 152.0% year-over-year increase in crushing volume, exported energy did not grow in the same percentage due to low spot prices, driven by the high level of water in the reservoirs. Consequently, rather than using our bagasse to produce energy, we used it as fuel in the ethanol dehydration process, enabling us to produce more anhydrous ethanol, demanded both domestically and in export markets. Due to this, our cogeneration efficiency ratio during 4Q22 stood at 53.8 KWh/ton, 57.7% lower year-over-year. In 2022, exported energy amounted to 609 thousand MWh, 16.7% lower year-over-year, fully explained by the lower crushing volume and by our commercial strategy to use bagasse to dehydrate ethanol and capture attractive prices.

As of December 31, 2022, our sugarcane plantation consisted of 192,987 hectares, 3.9% higher compared to 2021. Sugarcane planting continues to be a key strategy to supply our mills with quality raw material at low cost. During 2022, we planted a total of 31,405 hectares of sugarcane. Of this total planted area, 23% or 7,181 hectares were expansion areas planted to supply our growing crushing capacity and 77% or 24,224 hectares were areas planted to renew old plantations with newer and high-yielding sugarcane, thus allowing us to maintain the productivity of our plantation.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Sugar, Ethanol & Energy Segment - Financial Performance</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - HIGHLIGHTS**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Net Sales (1)(2) | 197793 | 156609 | 26.3% | 603530 | 534440 | 12.9% |
| Margin on Manufacturing and Agricultural Act. Before Opex | 76871 | 61882 | 24.2% | 282051 | 280673 | 0.5% |
| **Adjusted EBITDA** | **101132** | **65026** | **55.5%** | **373770** | **334854** | **11.6%** |
| *Adjusted EBITDA Margin (3)* | *51.1%* | *41.5%* | *23.1%* | *61.9%* | *62.7%* | *(1.2)%* |
| **Adjusted EBIT** | **55163** | **41962** | **31.5%** | **212850** | **190873** | **11.5%** |
| EBITDA per ton crushed ($/Tn) | 32.0 | 51.9 | (38.3)% | 35.6 | 30.6 | 16.5% |
| EBIT per ton crushed ($/Tn) | 17.5 | 33.5 | (47.8)% | 20.3 | 17.4 | 16.4% |
| (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. | (1) Net Sales are calculated as Gross Sales net of sales taxes. <br>Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss. |
| (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. | (2) Net Sales in 12M22 include $10.5 million and in 12M21 $9.2 million corresponding to the sale of 18.9 thousand and 23.3 thousand tons of soybean, respectively, planted as cover crop during the implementation of the agricultural technique known as meiosis. |

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Net sales amounted to $197.8 million during 4Q22, 26.3% higher year-over-year. This increase was driven by higher selling volume and higher average selling price of sugar, coupled with higher selling volume of anhydrous ethanol which fully offset the year-over-year decrease in its average selling price.

On a full year basis, net sales reached $603.5 million, 12.9% higher year-over-year. This was explained by the higher average selling prices of sugar and ethanol (both hydrous and anhydrous) coupled with the higher selling volume of anhydrous ethanol. Despite the late start of harvesting activities with the consequent lower production, we benefited from the constructive price scenario during the first semester, in particular capturing the hike in ethanol prices both domestically and in export markets, thanks to our commercial strategy to carry-over stock from 2021. Indeed, we cleared out our ethanol storage tanks at the peak of prices (monthly record sale of 125 thousand m3 during April, at an average price of 26.4 cts/lb sugar equivalent). Moreover, we exported 123 thousand m3 of anhydrous ethanol at an average price of 20.8 cts/lb (762 $/m3) to profit from higher prices abroad during 2022.

Adjusted EBITDA during 4Q22 amounted to $101.1 million, 55.5% higher year-over-year. This was explained by (i) the aforementioned $42.2 million increase in sales and by (ii) a $12.8 million year-over-year increase in the mark-to-market of our harvested cane on higher crushing volume. Results were partially offset by (i) higher costs due to the increase in production volume coupled with higher costs of inputs, such as fuels, lubricants and salaries; and by (ii) a $2.4 million increase in selling expenses due to higher freight costs on higher sugar sales.

On a full year basis, Adjusted EBITDA totaled $373.8 million, marking a 11.6% increase compared to 2021. This was driven by (i) higher net sales; (ii) a $19.4 million year-over-year gain in the mark-to-market of our cane, mainly related to better productivity outlook of our unharvested cane; and (iii) a $20.3 million year-over-year gain in our commodity hedge position explained by the loss in our derivative position generated in 2021. Results were partially offset by the aforementioned increase in costs. EBITDA per ton crushed amounted to 35.6 $/Tn in 12M22, marking a 16.5% increase year-over-year while EBIT per ton crushed increased by 16.4% year-over-year.

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![cover4q22.jpg](cover4q22.jpg)<br>

The table below reflects the breakdown of net sales for the Sugar, Ethanol & Energy business.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - NET SALES BREAKDOWN** <sup>(1)</sup>  | **SUGAR, ETHANOL & ENERGY - NET SALES BREAKDOWN** <sup>(1)</sup>  | **SUGAR, ETHANOL & ENERGY - NET SALES BREAKDOWN** <sup>(1)</sup>  | **SUGAR, ETHANOL & ENERGY - NET SALES BREAKDOWN** <sup>(1)</sup>  | | | | | | |
| | **$ thousands** | **$ thousands** | **$ thousands** | |<br>**Units** | | |<br>**($/unit)** | |
| | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** |
| Sugar (tons) | 86579 | 63479 | 36.4% | 206425 | 154131 | 33.9% | 419 | 412 | 1.8% |
| Ethanol (cubic meters) | 102378 | 79840 | 28.2% | 166980 | 119321 | 39.9% | 613 | 669 | (8.4)% |
| &nbsp;&nbsp;*Hydrous Ethanol (cubic meters)* | *16412* | *22378* | *(26.7)%* | *33277* | *37611* | *(11.5)%* | *493* | *595* | *(17.1)%* |
| &nbsp;&nbsp;*Anhydrous Ethanol (cubic meters)* | *85966* | *57462* | *49.6%* | *133703* | *81711* | *63.6%* | *643* | *703* | *(8.6)%* |
| Energy (Mwh) (2) | 7394 | 9520 | (22.3)% | 186173 | 216113 | (13.9)% | 40 | 44 | (9.8)% |
| CBios (4) | 1442 | 3670 | (60.7)% | 93933 | 503501 | (81.3)% | 15 | 7 | 110.6% |
| **TOTAL (3)** | **197793** | **156509** | **26.4%** |  |  |  |  |  |  |
|  | **$ thousands** | **$ thousands** | **$ thousands** |  | **Units** |  |  | **($/unit)** |  |
|  | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| Sugar (tons) | 181891 | 206540 | (11.9)% | 430623 | 537502 | (19.9)% | 422 | 384 | 9.9% |
| Ethanol (cubic meters) | 371722 | 271543 | 36.9% | 552171 | 473570 | 16.6% | 673 | 573 | 17.4% |
| &nbsp;&nbsp;*Hydrous Ethanol (cubic meters)* | *104418* | *109994* | *(5.1)%* | *162313* | *212695* | *(23.7)%* | *643* | *517* | *24.4%* |
| &nbsp;&nbsp;*Anhydrous Ethanol (cubic meters)* | *267304* | *161549* | *65.5%* | *389858* | *260875* | *49.4%* | *686* | *619* | *10.7%* |
| Energy (Mwh) (2) | 29681 | 43212 | (31.3)% | 706632 | 931126 | (24.1)% | 42 | 46 | (9.5)% |
| CBios | 9706 | 3670 | 164.5% | 550796 | 503501 | 9.4% | 18 | 7 | 141.8% |
| **TOTAL (3)** | **593000** | **524965** | **13.0%** |  |  |  |  |  |  |
| (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. | (1) Net Sales are calculated as Gross Sales net of ICMS, PIS COFINS, INSS and IPI taxes. |
| (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. | (2) Includes commercialization of energy from third parties. |
| (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. | (3) Total Net Sales does not include the results generated from the sale of soybean planted as cover crop during the implementation of meiosis. |
| (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. | (4) During 2021 CBios were booked under the Other Operating Income line until 4Q21 when they were reversed to be included within our revenues line. Consequently, 4Q results are not comparable. |

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During 4Q22, hydrous ethanol prices in Brazil continued to experience the downward pressure caused by (i) the regulatory changes approved in the tax scheme of fuels; and by (ii) a reduction in international oil prices, which correlate with ethanol. Although anhydrous ethanol in the domestic market also experienced the decrease in prices, demand remained stronger due to the 27% mandatory blend with gasoline. On the other hand, the export market, in particular Europe, became an attractive outlet for players like us with the necessary certifications and the ability to meet product specification to help compensate the lower domestic prices. Last but not least, sugar continued to trade at stable levels throughout end of year even though Brazilian mills were maximizing the production of this product. This was so because Brazil was the only origin at the time with available sugar to meet global demand.

In this line, our commercial strategy remained unchanged throughout the last quarter as it continued to be focused on the commercialization of sugar and the export of anhydrous ethanol, while we built inventory of hydrous ethanol. The latter can either be sold at higher expected prices at a later stage or be converted into anhydrous ethanol.

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![cover4q22.jpg](cover4q22.jpg)<br>

Sugar sales reached $86.6 million during 4Q22, marking a year-over-year increase of 36.4%. This was driven by a 33.9% increase in selling volumes, partially due to higher production, coupled with a 1.8% increase in average prices which reached 19.0 ct/lb. Year-to-date sugar sales amounted to $181.9 million, 11.9% lower compared to 2021, driven by a 19.9% decrease in volume, partially offset by a 9.9% increase in average selling prices.

Ethanol sales during 4Q22 amounted to $102.4 million, marking a 28.2% year-over-year increase. The mix between hydrous and anhydrous ethanol, and domestic and export market, varied compared to 4Q21. Hydrous ethanol sales presented a 26.7% year-over-year reduction, explained by lower selling volumes as we reduced our production mix and built inventories, which latter can be dehydrated and sold at higher prices. On the other hand, anhydrous ethanol sales presented a 49.6% year-over-year increase, driven by a 63.6% increase in volume. Although average selling price showed a reduction compared to the same period of last year, it reflects a mix of higher exports which partially mitigated the lower domestic prices. Indeed, to profit from higher prices abroad, during the quarter we exported 41 thousand m<sup>3</sup> at an average price of 20.4 cts/lb (751 $/m3). This represents a competitive advantage as we are one of the few players in Brazil certified to export ethanol and who can reach the level of purity required in Europe.

Year-to-date, ethanol sales amounted to $371.7 million, 36.9% higher compared to 2021 driven by a 17.4% increase in average selling prices coupled with a 16.6% increase in selling volume. Exports amounted to 123.1 thousand m3 at an average price of 20.8 cts/lb (762 $/m3).

Due to the efficiency and sustainability in our operations, ranked among the highest in the industry, we have the right to issue carbon credits (CBio) every time we sell ethanol. We do not speculate on CBio's prices but rather sell our credits as we generate them. During the quarter, we sold $1.4 million worth of CBios at an average price of 76 BRL/CBio (15 $/CBio). It is worth highlighting that the decrease in the amount of carbon credits sold during the quarter was driven by (i) the reduction in hydrous ethanol sales, and (ii) the growing volume of exports of anhydrous ethanol, which do not benefit from the right to issue CBios.

On an annual basis, we sold 551 thousand CBios, amounting to $9.7 million, 1.7x higher year-over-year. CBio prices were volatile throughout the year, impacted by regulatory changes in the underlying product. Prices reached peaks of 200 BRL/CBio (40 $/CBio), which we were able to capture.

In the case of energy, net sales amounted to $7.4 million during 4Q22 and $29.7 million in 2022, marking a year-over-year reduction of 22.3% and 31.3%, respectively. This was explained by a decrease in selling volumes mostly driven by our commercial decision to use our bagasse to dehydrate ethanol rather than to produce energy and sell it at low spot prices.

As shown in the table below, total production costs excluding depreciation and amortization reached 7.4 cts/lb in 4Q22, representing a 56.6% decrease compared to the same period of last year. Despite a genuine increase in costs due to a global inflationary environment, the year-over-year reduction in production costs was fully driven by the increase in crushing volume which enabled us to better dilute our fixed costs, especially agricultural costs which represent roughly 80% of our cost structure. On the other hand, during

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![cover4q22.jpg](cover4q22.jpg)<br>

2022 total production cost amounted to 8.1 cts/lb, marking a year-over-year increase of 21.3% on account of lower dilution of fixed costs due to the lower crushing volume (0.5 million tons less) coupled with higher costs of inputs, diesel and salaries, among others. It is worth highlighting that due to the fact that we used concentrated vinasse and filter cake to replace 100% of our potash fertilizer requirements and 48% of total agricultural inputs needs, we were able to mitigate the increase in fertilizer cost observed in 2022.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS** | **SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS** | | | | | |
| | **Total Cost ($'000)** | **Total Cost ($'000)** | **Total Cost ($'000)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** |
| | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** |
| ***Industrial costs*** | **22502** | **14476** | **55.4%** | **2.5** | **4.6** | **(44.7)%** |
| *Industrial costs* | *21047* | *14476* | *45.4%* | *2.4* | *4.6* | *(48.3)%* |
| *Cane from 3rd parties* | *1455* | *—* | *n.a.* | *0.2* | *—* | *n.a.* |
| ***Agricultural costs*** | **89621** | **62833** | **42.6%** | **10.0** | **19.8** | **(49.3)%** |
| *Harvest costs* | *31164* | *11638* | *167.8%* | *3.5* | *3.7* | *(4.8)%* |
| *Cane depreciation* | *18662* | *13452* | *38.7%* | *2.1* | *4.2* | *(50.7)%* |
| *Agricultural Partnership Costs* | *12910* | *15165* | *(14.9)%* | *1.4* | *4.8* | *(69.7)%* |
| *Maintenance costs* | *26886* | *22578* | *19.1%* | *3.0* | *7.1* | *(57.7)%* |
| **Total Production Costs** | **112123** | **77309** | **45.0%** | **12.5** | **24.3** | **(48.4)%** |
| Depreciation & Amortization PP&E | (45969) | (23064) | 99.3% | (5.1) | (7.3) | (29.1)% |
| **Total Production Costs (excl D&A)** | **66153** | **54245** | **22.0%** | **7.4** | **17.1** | **(56.6)%** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS** | **SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS** | | | | | |
| | **Total Cost ($'000)** | **Total Cost ($'000)** | **Total Cost ($'000)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** |
| | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| ***Industrial costs*** | **91937** | **80033** | **14.9%** | **3.2** | **2.7** | **17.3%** |
| *Industrial costs* | *78244* | *64614* | *21.1%* | *2.7* | *2.2* | *23.6%* |
| *Cane from 3rd parties* | *13693* | *15419* | *(11.2)%* | *0.5* | *0.5* | *(9.3)%* |
| ***Agricultural costs*** | **302905** | **260832** | **16.1%** | **10.5** | **8.8** | **18.5%** |
| *Harvest costs* | *112908* | *89388* | *26.3%* | *3.9* | *3.0* | *28.9%* |
| *Cane depreciation* | *67030* | *66192* | *1.3%* | *2.3* | *2.2* | *3.4%* |
| *Agricultural Partnership Costs* | *50570* | *42368* | *19.4%* | *1.8* | *1.4* | *21.8%* |
| *Maintenance costs* | *72397* | *62884* | *15.1%* | *2.5* | *2.1* | *17.5%* |
| **Total Production Costs** | **394842** | **340865** | **15.8%** | **13.7** | **11.6** | **18.2%** |
| Depreciation & Amortization PP&E | (160920) | (143981) | 11.8% | (5.6) | (4.9) | 14.1% |
| **Total Production Costs (excl D&A)** | **233922** | **196884** | **18.8%** | **8.1** | **6.7** | **21.3%** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sugar, Ethanol & Energy - Total Cost of Production** | **Sugar, Ethanol & Energy - Total Cost of Production** | | | | | |
| | **Total Cost (´000)** | **Total Cost (´000)** | **Total Cost (´000)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** | **Total Cost per Pound (cts/lbs)** |
| | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| Total Production Costs (excl. D&A) | 233922 | 196884 | *18.8%* | 8.1 | 6.7 | *21.3%* |
| Maintenance Capex | 140664 | 127909 | *10.0%* | 4.9 | 4.3 | *12.3%* |
| SG&A | 50395 | 45186 | *11.5%* | 1.7 | 1.5 | *13.8%* |
| Cogeneration | (27236) | (36597) | *(25.6)%* | (0.9) | (1.2) | *(24.0)%* |
| Tax Recovery | (19780) | (23367) | *(15.4)%* | (0.7) | (0.8) | *(13.6)%* |
| **Total Cash Cost** | **377966** | **310014** | ***21.9%*** | **13.1** | **10.5** | ***24.5%*** |

---

Total cash cost reflects, on a cash basis, how much it costs us to produce one pound of sugar and ethanol (in sugar equivalent). Maintenance capex is included in the calculation since it is a recurring investment, necessary to maintain the productivity of the sugarcane plantation. As we are calculating sugar and ethanol costs, energy is deemed a by-product and thus deducted from total costs. As for the tax recovery line item, it includes the ICMS tax incentive that the state of Mato Grosso do Sul granted us until 2032.

As shown in the table above, on a yearly basis, total cash cost on a per pound basis reached 13.1 cts/lb, 24.5% higher compared to 2021. This increase is explained by: (i) the aforementioned 21.3% increase in total production cost; (ii) 12.3% higher maintenance capex driven by higher renewal area, coupled with an increase in inputs for renewal planting costs, such as salaries, diesel, among others; (iii) 24.0% lower energy cogeneration as we used our bagasse to dehydrate our hydrous stocks rather than to produce energy; and (iv) a 13.6% reduction in tax recovery due to lower ethanol sales into the domestic market. All of our efforts are devoted to further enhance efficiencies to continue reducing total cash cost. As we continue ramping up operations in our cluster, cash cost will continue its downward trend as more fixed costs will be diluted.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SUGAR, ETHANOL & ENERGY - CHANGES IN FAIR VALUE** | **SUGAR, ETHANOL & ENERGY - CHANGES IN FAIR VALUE** | **SUGAR, ETHANOL & ENERGY - CHANGES IN FAIR VALUE** | **SUGAR, ETHANOL & ENERGY - CHANGES IN FAIR VALUE** | | | |
| ***$ thousands*** | **4Q22** | **4Q21** | **Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Sugarcane Valuation Model current period | 104586 | 64364 | 62.5% | 104586 | 64364 | 62.5% |
| Sugarcane Valuation Model previous period | 91145 | 38226 | 138.4% | 64364 | 71506 | (10.0)% |
| **Total Changes in Fair Value** | **13441** | **26139** | **(48.6)%** | **40222** | **(7142)** | **n.a** |

---

Total Changes in Fair Value of Unharvested Biological Assets (what is currently growing on the fields and will be harvested during the next 12 months) presented a year-over-year loss of $12.7 million in 4Q22. Although 4Q22 and 4Q21 both reflect an improvement in the productivity outlook of our sugarcane plantation, it is greater between 3Q21 and 4Q21 due to its recovery following the impact of the adverse weather. On the other hand, during 2022 Total Changes in Fair Value of Unharvested Biological Assets reported gains of $47.4 million mostly explained by higher expected yields, favored by the rainfalls received; coupled with higher expected prices.

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![cover4q22.jpg](cover4q22.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;

<u>Farming - Operational Performance</u>

2021/22 Harvest Year

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **FARMING PRODUCTION DATA** | **FARMING PRODUCTION DATA** | **FARMING PRODUCTION DATA** | **FARMING PRODUCTION DATA** | | | | | | |
| **Planting & Production** | **Planted Area (hectares)** | **Planted Area (hectares)** | **Planted Area (hectares)** | **2021/22 Harvested Area** | **2021/22 Harvested Area** | **2021/22 Harvested Area** | **Yields (Tons per hectare)** | **Yields (Tons per hectare)** | **Yields (Tons per hectare)** |
| | **2021/22** | **2020/21** | **Chg %** | **Hectares** | **% Harvested** | **Production** | **2021/22** | **2020/21** | **Chg %** |
| Soybean | 43515 | 36975 | 17.7% | 43515 | 100.0% | 128621 | 3.0 | 2.8 | 5.6% |
| Soybean 2nd Crop | 27559 | 31340 | (12.1)% | 27559 | 100.0% | 49342 | 1.8 | 2.2 | (19.2)% |
| Corn <sup>(1)</sup> | 48344 | 46904 | 3.1% | 48344 | 100.0% | 297419 | 6.2 | 5.9 | 4.3% |
| Corn 2nd Crop | 9192 | 9663 | (4.9)% | 9192 | 100.0% | 45202 | 4.9 | 5.2 | (6.0)% |
| Wheat <sup>(2)</sup> | 46509 | 44392 | 4.8% | 46509 | 100.0% | 137953 | 3.0 | 2.8 | 7.3% |
| Sunflower | 23092 | 16164 | 42.9% | 23092 | 100.0% | 39054 | 1.7 | 1.8 | (3.9)% |
| Cotton | 7427 | 3519 | 111.1% | 7427 | 100.0% | 4262 | 0.6 | 0.5 | 14.0% |
| Peanut | 22102 | 26123 | (15.4)% | 22102 | 100.0% | 62433 | 2.8 | 3.0 | (5.3)% |
| Other <sup>(3)</sup> | 3246 | 2747 | 18.2% | 3246 | 100.0% | 5238 | 1.6 | 0.9 | 88.3% |
| **Total Crops** | **230986** | **217828** | **6.0%** | **230986** | **100.0%** | **769524** |  |  |  |
| Rice <sup>(4)</sup> | 60857 | 44282 | 37.4% | 60857 | 100.0% | 416735 | 6.8 | 7.8 | (12.5)% |
| **Total Farming** | **291843** | **262110** | **11.3%** | **291843** | **100.0%** | **1186259** |  |  |  |
| Owned Croppable Area | 112361 | 111009 | 1.2% |  |  |  |  |  |  |
| Leased Area | 142732 | 109178 | 30.7% |  |  |  |  |  |  |
| Second Crop Area | 36750 | 41924 | (12.3)% |  |  |  |  |  |  |
| **Total Farming Area** | **291843** | **262110** | **11.3%** |  |  |  |  |  |  |
|  | **Milking Cows <br>(Average Heads)** | **Milking Cows <br>(Average Heads)** | **Milking Cows <br>(Average Heads)** | **Milk Production <br>(MM liters)** | **Milk Production <br>(MM liters)** | **Milk Production <br>(MM liters)** | **Productivity <br>(Liters per cow per day)** | **Productivity <br>(Liters per cow per day)** | **Productivity <br>(Liters per cow per day)** |
| **Dairy** | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** |
| Milk Production | 14406 | 13597 | 6.0% | 47.6 | 46.7 | 2.0% | 35.9 | 37.3 | (3.7)% |

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(1) Includes sorghum.

(2) Includes barley and peas.

(3) Includes chia, sesame, potatoes and beans.

(4) 21/22 campaign includes rice planted and harvested related to our recent acquisition of Viterra's rice operations.

We successfully completed our 2021/22 campaign with a total harvested area of 291,843 hectares and a production of over one million tons of aggregate grains.

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![cover4q22.jpg](cover4q22.jpg)<br>

2022/23 Planting Plan

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Planting Plan**<br>**Planting & Production** | **Planting Plan (hectares)** | **Planting Plan (hectares)** | **Planting Plan (hectares)** | **2022/23 Planting Progress** | **2022/23 Planting Progress** |
| | **2022/2023** | **2021/2022** | **Chg %** | **Hectares** | **% Planted** |
| Soybean | 52298 | 44364 | 17.9% | 52298 | 100.0% |
| Soybean 2nd Crop | 29879 | 27954 | 6.9% | 29879 | 100.0% |
| Corn <sup>(1)</sup> | 38640 | 48952 | (21.1)% | 38638 | 100.0% |
| Corn 2nd Crop | 3872 | 9287 | (58.3)% | 3872 | 100.0% |
| Wheat <sup>(2)</sup> | 35774 | 46509 | (23.1)% | 35774 | 100.0% |
| Sunflower | 18108 | 23173 | (21.9)% | 18108 | 100.0% |
| Cotton | 10265 | 7427 | 38.2% | 10265 | 100.0% |
| Peanut | 19888 | 23664 | (16.0)% | 19888 | 100.0% |
| Other <sup>(3)</sup> | 2289 | 2920 | (21.6)% | 2104 | 91.9% |
| **Total Crops** | **211012** | **234249** | **(9.9)%** | **210825** | **99.9%** |
| Rice <sup>(4)</sup> | 55629 | 49040 | 13.4% | 55629 | 100.0% |
| **Total Farming** | **266641** | **283289** | **(5.9)%** | **266454** | **99.9%** |
| Owned Croppable Area | 102208 | 111460 | (8.3)% |  |  |
| Leased Area | 130682 | 131862 | (0.9)% |  |  |
| Second Crop Area | 33750 | 39967 | (15.6)% |  |  |
| **Total Farming Area** | **266641** | **283289** | **(5.9)%** |  |  |

---

(1) Includes sorghum.

(2) Includes barley and peas.

(3) Includes chia, sesame, potatoes and beans.

(4) For comparison purposes, the planted area for Rice related to the 2021/2022 campaign does not include Viterra's acquisition which took place in 2Q22 and thus will be included in 2Q23's earnings release.

During the second half of 2022, we began our planting activities for the 2022/23 season, which continued throughout early 2023. Our planting consists of 266,641 hectares, which represents a 5.9% reduction in area compared to the previous season. As of the date of this report, 99.9% of the area has already been seeded.

Owned croppable area reported a slight decline compared to the previous campaign to 102,208 hectares while second crop area showed a 15.6% reduction to 33,750 hectares. This is explained by a reduction in wheat planting in the Northern region of Argentina due to dry weather, which in turn resulted in a reduction in second crop area since those hectares were planned for two crops cycles, but ended up with just one. Leased area, which varies in size on the basis of expected return on invested capital, was flat year-over-year, reaching 130,682 hectares.

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![cover4q22.jpg](cover4q22.jpg)<br>

Planting Plan Update

In 2022 South America entered into a third consecutive year of drier weather, commonly known as a La Niña year. In Argentina and Uruguay, where our Farming operations are based, rain distribution varied according to the region but was mostly dry during spring and summertime. Limited precipitations, coupled with high temperatures and low soil moisture following two consecutive events of "La Niña", impacted the development of some of our crops, such as wheat. We received the necessary amount of precipitations to complete planting activities, and by mid-January we registered adequate rainfalls in all our productive regions. Nevertheless, some regions continued to experience high temperatures and low precipitations during February, consequently impacting crop development. The evolution of weather in the upcoming weeks will be key as most of our crops are undergoing its yield definition phase. Despite the challenges presented, it is worth highlighting that our geographic and product diversification aids in mitigating weather risk and enables us to adopt defensive strategies including delaying the planting window and/or switching to other crops which are either more resilient to dry weather or that develop at a later stage.

**Soybean 1st crop**: We successfully planted 52,298 hectares, marking a 17.9% year-over-year increase compared to the 2021/22 planting plan. This increase was driven by soybean being a crop that is more resilient to drier weather, in addition to having its yield definition stage during February-March, period when we usually receive stable rainfalls. While some regions received below average rains, consequently impacting crop development, there are other regions where soybean development remains at early stages. We forecast yields to be lower than the previous campaign due to lower rainfalls, coupled with high temperatures during the yield definition stage.

**Corn**: 38,640 hectares of corn have been successfully planted. In an effort to diversify our crop risk and minimize our water requirements, we reduced our planted area of early corn due to the impact of "La Niña" weather event during its development stage and in turn, we increased our late corn seeded area. Thus, we planted almost 12,000 hectares of early corn and over 26,000 hectares of late corn. Having the flexibility to switch our production mix in order to favor crops with a later planting window is an important competitive advantage. We forecast below average yields for early corn due to the dry weather experienced until mid-January, while late corn is showing a mixed performance, with some regions developing better due to good soil humidity. We are entering into the critical period of yield definition for our late corn, reason why rains will be necessary in the upcoming weeks.

**Peanut**: We have completed planting activities for all 19,888 hectares planned. Peanut production is fully concentrated in regions that have received good rainfalls throughout summer. However, due to high temperatures and low precipitation registered during February, we are forecasting yields to be lower than the previous harvest season .

**Sunflower**: We concluded planting activities for sunflower, which represents 18,108 hectares of our total planting plan. Despite the dry weather, we are still forecasting yields to be in line with historical average.

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![cover4q22.jpg](cover4q22.jpg)<br>

**Wheat:** Planting activities for wheat are carried out during the South American winter and harvesting activities are completed during the summertime. In this line, 35,774 hectares of wheat, which also includes other winter crops such as barley and peas, have been planted and harvested. It is worth highlighting that wheat production in Argentina registered a 50% cut (from an average volume of 22 million tons to 11 million tons) as a result of the dry weather observed during Winter and Spring 2022. Adecoagro's harvested volume showed a 40% declined compared to the previous campaign, less pronounced than the reduction at a national level, explained by our geographic diversification and defensive strategies, including delaying planting dates, among others.

**Rice**: All 55,629 hectares of the 2022/23 campaign have been seeded. Although high temperatures and sunny weather are good for rice development, the low precipitation registered during summertime led to water shortage in some of our rice farms, impacting yield definition. Consequently, we are forecasting yields to be in line with historical average.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Farming & Land Transformation Financial Performance</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS** | **FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS** | **FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS** | **FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS** | **FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS** | | |
| ***$ thousands*** | **4Q22** | **4Q21** | **Chg %** | **12M22** |<br>**12M21** |<br>**Chg %** |
| **Gross Sales** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Farming | 175442 | 156153 | 12.4% | 720947 | 535713 | 34.6% |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total Sales** | **175442** | **156153** | **12.4%** | **720947** | **535713** | **34.6%** |
| **Adjusted EBITDA** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Farming | 9934 | 9453 | 5.1% | 79212 | 117221 | (32.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Land Transformation | 354 | 1021 | (65.3)% | 3699 | 6613 | (44.1)% |
| **&nbsp;&nbsp;&nbsp;&nbsp; Total Adjusted EBITDA** <sup>(1)</sup> | **10288** | **10474** | **(1.8)%** | **82911** | **123834** | **(33.0)%** |
| **Adjusted EBIT** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Farming | 536 | 3672 | (85.4)% | 48905 | 95321 | (48.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Land Transformation | 354 | 1021 | (65.3)% | 3699 | 6613 | (44.1)% |
| <sup>&nbsp;&nbsp;&nbsp;&nbsp;</sup> **Total Adjusted EBIT** <sup>(1)</sup> | **890** | **4693** | **(81.0)%** | **52604** | **101934** | **(48.4)%** |

---

(1) Please see "Reconciliation of Non-IFRS measures" starting on page 35 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.

Adjusted EBITDA in the Farming and Land Transformation business amounted to $10.3 million in 4Q22, in line with the same period of last year. The higher results from our Rice and Dairy businesses were offset by a $7.4 million year-over-year reduction in Crops driven by (i) lower sales; (ii) higher costs due to a global inflationary environment; and (iii) an uneven performance of yields. Our Land Transformation segment reported an Adjusted EBITDA reduction of $0.7 million compared to 4Q21 due to FX effects on our account receivable related to the latest sale of farms in Brazil, which tracks the evolution of soybean prices (3.5% appreciation of the Brazilian real in 4Q22 compared to a depreciation of 2.6% in 4Q21).

On a year-to-date basis, Adjusted EBITDA was $82.9 million, 33.0% lower than the previous year. Despite a 37.4% year-over-year increase reported in our Dairy business driven by volume and better mix of higher valued added products, lower Adjusted EBITDA generation was driven by our Rice and Crops businesses. Results were mainly impacted by higher costs, a mixed performance of yields and lower rice prices.

For a more detailed explanation, please refer to the performance description of each business line starting next page.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Crops Segment</u>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **CROPS**<br>Highlights |<br>**metric** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Gross Sales | $ thousands | 54207 | 65921 | (17.8)% | 275200 | 228894 | 20.2% |
|  | tons | 95791 | 168663 | (43.2)% | 641184 | 649926 | (1.3)% |
|  | $ per ton | 566 | 391 | 44.8% | 429 | 352 | 21.9% |
| **Adjusted EBITDA** | **$ thousands** | **(3257)** | **4180** | **n.m.** | **26999** | **52052** | **(48.1)%** |
| Adjusted EBIT | $ thousands | (5396) | 2274 | n.m. | 19091 | 45551 | (58.1)% |
| Planted Area | hectares | 230986 | 217828 | 6.0% | 230986 | 217828 | 6.0% |

---

In 4Q22, gross sales in our Crops segment amounted to $54.2 million, marking a 17.8% year-over-year reduction driven by a 43.2% decrease in selling volumes which fully offset the 44.8% increase in average selling prices. Lower selling volume was mainly explained by soybean sales, as we sold most of our production during 3Q22. This was so in order to profit from a 20% preferential exchange rate announced by the Argentine government to convert soybean earnings into local currency (also known as "soybean dollar"), which was valid during the month of September. Hence, soybean availability during 4Q22 was limited. Moreover, selling volumes were also impacted by lower wheat sales as production at a national level was c by dry weather. However, we were able to partially mitigate the negative operational results by booking 38.2% higher wheat prices compared to 4Q21, also driven by lower supply. As of December 31 2022, 100% of our wheat production was hedge at a 16% higher price than the previous campaign.

During 2022 gross sales amounted to $275.2 million, 20.2% higher than in 2021. Results were explained by a 21.9% increase in average selling prices, whereas volumes sold remained flat. It is worth highlighting that commodity prices have been trading at higher levels compared to 2021 due to (i) the ongoing conflict in Europe; coupled with (ii) a reduction in production in South America due to "La Niña" weather event.

Adjusted EBITDA during 4Q22 amounted to negative $3.3 million, marking a $7.4 million reduction compared to 4Q21. In addition to lower net sales, results were negatively impacted by a $10.6 million year-over-year loss in the mark-to-market of our biological assets and in the net realizable value of our agricultural produce after harvest given the aforementioned impact of dry weather on our wheat production. Further contributing to the lower results were higher costs in U.S. dollar terms driven by a global inflationary environment pressuring margins, consequently leading to an increase in agricultural input costs, such as diesel among others. Results were partially offset by a $2.2 million year-over-year gain in the mark-to-market of our forward contracts, coupled with a $1.7 million year-over-year reduction in general and administrative expenses.

On an annual basis, Adjusted EBITDA amounted to $27.0 million, marking a 48.1% or $25.1 million reduction compared to the previous year. As mentioned in past releases, lower Adjusted EBITDA generation was mostly explained by (i) higher costs in U.S. dollar terms driven by global inflation; (ii) an uneven performance in yields; (iii) an $11.3 million year-over-year loss in the mark-to-market of our forward contracts; and (iv) a $9.7 million increase in selling expenses due to higher freight costs.

------

![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **CROPS - GROSS SALES BREAKDOWN** | **CROPS - GROSS SALES BREAKDOWN** | | | | | | | | |
| | **Amount ($'000)** | **Amount ($'000)** | **Amount ($'000)** | **Volume** | **Volume** | **Volume** | **$ per unit** | **$ per unit** | **$ per unit** |
| ***Crop*** | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** | **4Q22** | **4Q21** | **Chg %** |
| Soybean | 6200 | 11619 | (46.6)% | 13198 | 32599 | (59.5)% | 470 | 356 | 31.8% |
| Corn (1) | 11800 | 9883 | 19.4% | 39635 | 46973 | (15.6)% | 298 | 210 | 41.5% |
| Wheat (2) | 5452 | 14232 | (61.7)% | 17004 | 61331 | (72.3)% | 321 | 232 | 38.2% |
| Sunflower | 6207 | 3782 | 64.1% | 8845 | 4988 | 77.3% | 702 | 758 | (7.4)% |
| Cotton Lint | 1937 | 2469 | (21.5)% | 807 | 2004 | (59.8)% | 2401 | 1232 | 94.9 |
| Peanut | 18588 | 20721 | (10.3)% | 13113 | 17225 | (23.9)% | 1418 | 1203 | 17.8% |
| Others | 4023 | 3215 | 25.1% | 3189 | 3542 | (10.0)% |  |  |  |
| **Total** | **54207** | **65921** | **(17.8)%** | **95791** | **168663** | **(43.2)%** |  |  |  |

---

(1) Includes sorghum. (2) Includes barley.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **CROPS - GROSS SALES BREAKDOWN** | **CROPS - GROSS SALES BREAKDOWN** | | | | | | | | |
| | **Amount ($'000)** | **Amount ($'000)** | **Amount ($'000)** | **Volume** | **Volume** | **Volume** | **$ per unit** | **$ per unit** | **$ per unit** |
| ***Crop*** | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| Soybean | 72323 | 56997 | 26.9% | 167881 | 167927 | —% | 431 | 339 | 26.9% |
| Corn (1) | 72427 | 57504 | 26.0% | 295299 | 277828 | 6.3% | 245 | 207 | 18.5% |
| Wheat (2) | 23603 | 27267 | (13.4)% | 81971 | 123224 | (33.5)% | 288 | 221 | 30.1% |
| Sunflower | 25076 | 16618 | 50.9% | 32747 | 23111 | 41.7% | 766 | 719 | 6.5% |
| Cotton Lint | 6805 | 2469 | 175.6% | 4428 | 2004 | 120.9% | 1537 | 1232 | 24.7% |
| Peanut | 63087 | 60422 | 4.4% | 50419 | 49509 | 1.8% | 1251 | 1220 | 2.5% |
| Others | 11879 | 7617 | 56.0% | 8439 | 6322 | 33.5% |  |  |  |
| **Total** | **275200** | **228894** | **20.2%** | **641184** | **649926** | **(1.3)%** |  |  |  |

---

(1) Includes sorghum. (2) Includes barley.

The table below shows the gains and losses from crop production generated in 2022. Our crop operations related to the 2021/22 season, which we harvested between January and June 2022, generated Changes in Fair Value of $66.6 million. As of December 31, 2022, 35,293 hectares of the 2022/23 harvest (mainly corn, sunflower and peanut) had attained significant biological growth, generating initial recognition and Changes in Fair Value of biological assets of $2.0 million. In addition, 34,833 hectares of 2022/23 winter crops (mainly wheat and barley) had been harvested, generating Changed in Fair Value and Agricultural Produce in 2022 of $4.4 million. As a result, total Changes in Fair Value of Biological Assets and Agricultural Produce during 2022 reached $64.1 million, compared to $65.7 million generated in 2021. The main driver for the decrease in margins is the loss reported in our winter crops caused by the impact of dry weather, which was partially offset by the increase in harvested area during the previous campaign.

------

![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | **CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF DECEMBER 31, 2022 (1)** | | | | |
| **12M22** | metric | Soy | Soy 2nd Crop | Corn | Corn 2nd Crop | Wheat | Sunflower | Cotton | Peanut | Total |
| **2021/22 Harvest Year** |  |  |  |  |  |  |  |  |  |  |
| **Total Harvested Area** | **Hectares** | **49217** | **27559** | **48233** | **9192** | **44160** | **23092** | **7427** | **22569** | **231448** |
| Area harvested in previous periods | Hectares |  |  |  |  | 44160 |  |  |  | 44160 |
| Area harvested in current period | Hectares | 49217 | 27559 | 48233 | 9192 |  | 23092 | 7427 | 22569 | 187288 |
| **Changes in Fair Value 12M22 from harvested area 2021/22** | **$ thousands** | **18858** | **9114** | **26574** | 4926 | **—** | **1493** | **2705** | **2920** | **66590** |
| **2022/23 Harvest Year** |  |  |  |  |  |  |  |  |  |  |
| **Total Planted area** | **Hectares** | **40752** | **23297** | **25481** | **924** | **35773** | **17041** | **9364** | **18147** | **170778** |
| Area planted in initial growth stages | Hectares | 40692 | 23297 | 18561 | 924 |  | 1793 | 8408 | 6978 | 100653 |
| Area planted with significant biological growth | Hectares | 60 |  | 6920 |  | 941 | 15248 | 956 | 11169 | 35293 |
| Area harvested in current period | Hectares |  |  |  |  | 34833 |  |  |  | 34833 |
| **Changes in Fair Value 12M22 from planted area 2022/23** | **$ thousands** | **14** | **—** | **998** | **—** | **(178)** | **886** | **313** | **(66)** | **1966** |
| **Changes in Fair Value 12M22 from harvested area 2022/23** | **$ thousands** | **—** | **—** | **—** | **—** | **(4424)** | **—** | **—** | **—** | **(4424)** |
| **Total Changes in Fair Value in 12M22** | **$ thousands** | **18872** | **9114** | **27573** | **4926** | **(4602)** | **2378** | **3018** | **2854** | **64133** |

---

(1) Planted and harvested area figures as of December 31th, 2022. Soybean includes other crops such as beans, sesame, chia and sorghum.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Rice Segment</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **RICE**<br>Highlights |<br>**metric** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Gross Sales | *$ thousands* | 64712 | 40025 | 61.7% | 203686 | 130526 | 56.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of white rice | *thousand tons* | 93 | 60 | 55.8% | 336 | 205 | 64.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of white rice | *$ per ton* | 564 | 518 | 8.7% | 513 | 530 | (3.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of white rice | *$ thousands* | 52516 | 30998 | 69.4% | 172562 | 108613 | 58.9% |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of By-products | *$ thousands* | 12196 | 9027 | 35.1% | 31124 | 21913 | 42.0% |
| **Adjusted EBITDA** | ***$ thousands*** | **5452** | **14** | **n.m** | **20705** | **40746** | **(49.2)%** |
| Adjusted EBIT | *$ thousands* | 810 | (2270) | n.a | 8593 | 32666 | (73.7)% |
| Area under production (2) | *hectares* | 60857 | 44282 | 37.4% | 60857 | 44282 | 37.4% |
| **Rice Mills** |  |  |  |  |  |  |  |
| Total Processed Rough Rice<sup>(1)</sup> | *thousand tons* | 83 | 38 | 115.3% | 251 | 200 | 25.6% |
| Ending stock - White Rice | *thousand tons* | 34 | 17 | 100.8% | 34 | 17 | 100.8% |

---

(1) Expressed in white rice equivalent.

(2) Includes rice planted and harvested related to our recent acquisition of Viterra's rice operations.

Gross sales amounted to $64.7 million in 4Q22, marking a 61.7% increase compared to the same period of last year. This was explained by a 55.8% year-over-year increase in selling volumes, coupled with an increase in average selling prices to $564/ton (vs. $518/ton in 4Q21). As we anticipated in past releases, the increase in selling prices was driven by a stronger demand, coupled with adverse weather conditions in key producing countries, such as India and China. On a full year basis, gross sales amounted to $203.7 million, 56.1% higher compared to 2021, driven by a 64.1% increase in selling volumes, which include inventory related to our recent acquisition of Viterra's rice operations (closed in May 2022). It is worth highlighting that despite the year-over-year decrease in average selling prices, these have significantly increased from the levels reported at the beginning of the year and continue to be supportive as we enter into 2023. Thus, we expect to capitalize on this trend in the short to mid term.

Adjusted EBITDA was $5.5 million in 4Q22, $5.4 million higher than in 4Q21. This was fully explained by the aforementioned increase in net sales, although partially offset by higher costs in U.S. dollar terms and by a $6.7 million year-over-year increase in selling expenses due to higher logistic and fobbing costs. Adjusted EBITDA in 2022 amounted to $20.7 million, 49.2% lower than in 2021. As we have previously reported, results were mainly impacted by a reduction of 1 Tn/Ha in yields due to the impact of "La Niña" in some of our farms, which contributed to a $22.3 million year-over-year loss in the mark-to-market of our biological asset and in the net realizable value of our agricultural produce after harvest. Moreover, results were negatively impacted by the aforementioned increase in costs in U.S. dollar terms due to the global inflationary environment, which impacted agricultural input costs, such as diesel; along with higher logistics costs which pressured margins.

------

![cover4q22.jpg](cover4q22.jpg)<br>

<u>Dairy Segment</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **DAIRY**<br>Highlights |<br>**metric** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Gross Sales | *$ thousands* <sup>(1)</sup> | 54718 | 48168 | 13.6% | 236222 | 172803 | 36.7% |
|  | *million liters* <sup>(2) (3)</sup> | 105.7 | 100.5 | 5.2% | 411.6 | 380.6 | 8.2% |
| **Adjusted EBITDA** | ***$ thousands*** | **7861** | **3577** | **119.8%** | **31460** | **22901** | **37.4%** |
| Adjusted EBIT | *$ thousands* | 5280 | 2066 | 155.6% | 21385 | 15757 | 35.7% |
| **Dairy - Farm** |  |  |  |  |  |  |  |
| Milking Cows | *average heads* | 14406 | 13597 | 6.0% | 14415 | 12942 | 11.4% |
| Cow Productivity | *liter/cow/day* | 35.9 | 37.3 | (3.7)% | 35.3 | 36.7 | (3.8)% |
| Total Milk Produced | million liters | 47.6 | 46.7 | 2.0% | 185.6 | 173.1 | 7.2% |
| **Dairy - Industry** |  |  |  |  |  |  |  |
| Total Milk Processed | million liters | 91.1 | 98.2 | (7.2)% | 359.4 | 352.5 | 2.0% |
| (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. | (1) Includes sales of raw milk, processed dairy products, electricity and culled cows. |  |
| (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. | (2) Includes sales of raw milk, fluid milk, powder milk and cheese, among others. |  |
| (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. |  |

---

In 4Q22, milk production at the farm level was 47.6 million liters, 2.0% higher compared to the same period of last year. This was mainly explained by a 6.0% increase in our dairy cow herd, marking an average of 14,406 milking cows during the quarter. Cow productivity continued at high levels standing at 35.9 liters per cow per day, despite presenting a slight decrease versus 4Q21. On a full year basis, total milk production was 185.6 million liters, 7.2% or 12.4 million liters higher than in 2021, totally attributable to an 11.4% increase in our milking cows, which fully offset the 3.8% reduction in productivity.

At the industry level, we processed 91.1 million liters of raw milk during 4Q22, marking a 7.2% decrease compared to the same period of last year. On an annual basis, we processed 359.4 million liters, presenting a year-over-year increase of 2.0%. Out of this volume, approximately 36% came from our dairy farm operations whereas the balance was sourced from local producers in nearby areas or supplied by partners to whom we provide tolling services. We continue working on product developments to cater both to the domestic and export market.

Adjusted EBITDA amounted to $7.9 million during 4Q22 and $31.5 million in 2022, marking a 119.8% and 37.4% year-over-year increase, respectively. In both cases, results were driven by (i) an increase in gross sales, on account of higher volume sold and higher average selling prices, as we increase the mix of higher value added products; (ii) our continuous focus on achieving efficiencies in our vertically integrated operations and increasing our productivity levels in every stage of the value chain; and (iii) our flexibility to divert milk to the production of a variety of dairy products, as well as to shift sales across markets. Results were partially offset by higher costs in U.S. dollar terms driven by a global inflationary environment. The main cost contributors were (i) higher cost of feed (corn silage and soy pellets) and (ii) higher costs related to health and reproduction.

Adjusted EBIT amounted to $5.3 million and $21.4 million during 4Q22 and 2022, respectively. However, once interest expense and the foreign exchange loss related to the financial debt are taken into account, the full year result of the business decreases to negative $65.5 million.

------

![cover4q22.jpg](cover4q22.jpg)<br>

<u>All Other Segments</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **ALL OTHER SEGMENTS**<br>Highlights |<br>**metric** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Gross Sales | *$ thousands* | 1805 | 2039 | (11.5)% | 5839 | 3490 | 67.3% |
| **Adjusted EBITDA** | ***$ thousands*** | **(122)** | **1682** | **n.a.** | **48** | **1522** | **(96.8)%** |
| Adjusted EBIT | *$ thousands* | (158) | 1602 | n.a. | (164) | 1347 | n.a. |

---

All Other Segments primarily encompasses our cattle business. Our cattle segment consists of pasture land that is not suitable for crop production due to soil quality and is leased to third parties for cattle grazing activities. Adjusted EBITDA for All Other Segments during 4Q22 was negative $122 thousand versus positive $1.7 million reported in 4Q21. Year-to-date, Adjusted EBITDA amounted to $48 thousand, compared to $1.5 million during the same period of last year.

<u>Land transformation business</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **LAND TRANSFORMATION**<br>Highlights |<br>**metric** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| **Adjusted EBITDA** | ***$ thousands*** | **354** | **1021** | **(65.3)%** | **3699** | **6613** | **(44.1)%** |
| Adjusted EBIT | *$ thousands* | 354 | 1021 | (65.3)% | 3699 | 6613 | (44.1)% |
| Land sold | *Hectares* |  |  | n.a |  |  | n.a |

---

Although no farm sales were conducted during 2022 nor during 2021, Adjusted EBITDA for our Land Transformation business amounted to $3.7 million and $6.6 million, respectively. This is so as it reflects a gain in the mark-to-market of an account receivable corresponding to the latest sale of farms in Brazil, which tracks the evolution of soybean prices. The 44.1% year-over-year reduction in Adjusted EBITDA is mostly explained by a reduction in the number of installments to be received, coupled with the impact of the appreciation of the Brazilian currency (6.5% in 2022 compared to a depreciation of 7.4% in 2021), which fully offset the increase in the price of soybean.

Adjusted EBITDA in 4Q22 presented a year-over-year reduction of $0.7 million, explained by the appreciation of the Brazilian real (3.5% in 4Q22 compared to a depreciation of 2.6% in 4Q21), which fully offset the increase in the price of soybean.

From an accounting perspective, these figures are captured in Other Operating Income line of the Land Transformation segment.

------

![cover4q22.jpg](cover4q22.jpg)<br>

<u>Corporate Expenses</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CORPORATE EXPENSES**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Corporate Expenses | (5636) | (5975) | (5.7)% | (23828) | (21584) | 10.4% |

---

Adecoagro's corporate expenses include items that have not been allocated to a specific business segment, such as the remuneration of executive officers and headquarters staff, certain professional fees, office lease expenses, among others. As shown in the table above, corporate expenses for the full year of 2022 were $23.8 million, 10.4% higher than in 2021 mainly explained by an increase in costs impacted by an inflation in U.S. dollar terms.

<u>Other Operating Income</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **OTHER OPERATING INCOME**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Gain / (Loss) from commodity derivative financial instruments | (4300) | (1026) | 319.1% | (6652) | (15611) | (57.4)% |
| (Loss) from forward contracts | (120) | (1970) | (93.9)% | 1731 | (1970) | n.a. |
| Gain from disposal of other property items | 787 | (2568) | n.a | 3726 | (223) | n.a |
| Net Gain from FV Adjustment in Investment Property | 851 | (1870) | n.a | (2764) | (3884) | (28.8)% |
| Other | 962 | 720 | 33.6% | 6652 | 3555 | 87.1% |
| **Total** | **(1820)** | **(6714)** | **(72.9)%** | **2693** | **(18118)** | **n.a** |

---

Other Operating Income amounted to $2.7 million in 2022, marking a year-over-year gain of $20.8 million. This was mostly explained by 2021's results, namely the loss generated in the mark-to-market of our commodity hedge position as a consequence of an increase in commodity prices.

------

![cover4q22.jpg](cover4q22.jpg)<br>

<u>Commodity Hedging</u>

Adecoagro's financial performance is affected by the volatile price environment inherent in agricultural commodities. The company uses forward and derivative markets to mitigate swings in commodity prices by locking-in margins and stabilizing cash flows.

The table below shows the average selling price 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 December 31, 2022** | **COMMODITY HEDGE POSITION - As of December 31, 2022** | **COMMODITY HEDGE POSITION - As of December 31, 2022** | **COMMODITY HEDGE POSITION - As of December 31, 2022** | **COMMODITY HEDGE POSITION - As of December 31, 2022** |
| | **Consolidated Hedge Position** | **Consolidated Hedge Position** | **Consolidated Hedge Position** | **Consolidated Hedge Position** |
| **Farming** | | **Avg. FAS Price** | **CBOT FOB** | |
| | **Volume** | **USD/Ton** | **USD/Bu** | **Hedge (%)** |
| **2021/2022 Harvest season** | | | | |
| Soybeans | 162452 | 418.4 | 1553.0 | 100% |
| Corn | 270293 | 230.5 | 634.5 | 100% |
| Wheat | 92126 | 258.2 | 827.4 | 100% |
| **2022/2023 Harvest season** |  |  |  |  |
| Soybeans | 43290 | 417.3 | 1514.0 | 22% |
| Corn | 31700 | 235.5 | 648.8 | 16% |
| Wheat | 53375 | 300.7 | 958.5 | 100% |
|  | **Consolidated Hedge Position** | **Consolidated Hedge Position** | **Consolidated Hedge Position** | **Consolidated Hedge Position** |
| **Sugar, Ethanol & Energy** |  | **Avg. FOB Price** | **ICE FOB** |  |
|  | **Volume** | **USD/Unit** | **Cents/Lb** | **Hedge (%)** |
| **2022/2023 Harvest season** |  |  |  |  |
| Sugar (tons) | 446123 | 431.5 | 19.6 | 100% |
| Ethanol (m3) |  |  |  | —% |
| Energy (MW/h) <sup>(1)</sup> | 575786 | 52.8 | n.a | 100% |
| **2023/2024 Harvest season** |  |  |  |  |
| Sugar (tons) | 144780 | 389.9 | 18.4 | 26% |
| Ethanol (m3) |  |  |  | —% |
| Energy (MW/h) <sup>(1)</sup> | 513060 | 53.4 | n.a | 83% |

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<sup>(1)</sup> Energy prices in 2022 and 2023 were converted to USD at an exchange rate of BRL/USD 5.25 and BRL/USD 5.49, respectively.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Financial Results</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **FINANCIAL RESULTS**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Interest Expenses, net | (16248) | (15153) | 7.2% | (44256) | (58455) | (24.3)% |
| Cash Flow Hedge - Transfer from Equity | (4620) | (8943) | (48.3)% | (40195) | (52650) | (23.7)% |
| FX Gain / (Losses), net | 6636 | 9328 | (28.9)% | 19278 | 18939 | 1.8% |
| Gain/loss from derivative financial Instruments | (1192) | (130) | 816.9% | (2384) | 512 | n.m. |
| Taxes | (1230) | (1520) | (19.1)% | (4862) | (7073) | (31.3)% |
| Finance Cost - Right-of-use Assets | (8456) | (3130) | 170.2% | (31113) | (16502) | 88.5% |
| Inflation accounting effects | (16821) | 3322 | n.m. | (2144) | 11541 | n.m. |
| Other Expenses, net | (2804) | 7335 | n.m. | (8760) | 218 | n.m. |
| **Total Financial Results** | **(44735)** | **(8891)** | **403.1%** | **(114436)** | **(103470)** | **10.6%** |

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Net financial results totaled a loss of $44.7 million in 4Q22 and of $114.4 million in 2022. The year-over-year loss of $35.8 million and $11.0 million, respectively, is mostly explained by inflation accounting effects and other expenses.

The line "Inflation accounting effects" reflects the results derived from the exposure of our net monetary position to inflation in Argentina. Monetary assets generate a loss when exposed to inflation while monetary liabilities generate a gain every time inflation reduces the owed balance, in real terms. During 4Q22 and 2022, we registered a loss of $16.8 million and $2.1 million, respectively, amounting to a year-over-year loss of $20.1 million and $13.7 million, respectively. The negative results are primarily explained by the impact of inflation in our accounts receivable. In 4Q22 inflation rate stood at 17.3% compared to 10.2% in 4Q21, while during 2022 it amounted to 94.8% compared to 50.9% in 2021. The "Interest Expense" line is already net of the positive impact of inflation on our financial liabilities in Argentine Pesos. These results are non-cash in nature and do not impact the net worth of the Company, in U.S. dollars.

Further contributing to the loss in net financial results is the $10.1 million and $9.0 million year-over-year loss in "Other expenses, net" reported during 4Q22 and 2022, respectively. The lower year-over-year results are mostly explained by a high base of comparison, as during 2021 we generated gains by implementing a financial strategy that enabled us to take advantage of market opportunities and capitalize on the gap between Argentina's official and blue chip rate.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Net Income & Adjusted Net Income</u>

Net Income amounted to $2.7 million during 4Q22, marking a $56.0 million reduction compared to the same period of last year. This was mostly explained by a $35.8 million year-over-year decrease in net financial results mostly driven by the exposure of our monetary assets and liabilities to inflation in Argentina (non-cash results). Moreover, we reported a decrease in income tax expense to negative $2.9 million versus benefits of $25.0 million in 4Q21. Net income in 2022 reached $108.6 million, $22.1 million or 16.9% lower compared to the previous year. This was mainly explained by an increase in our depreciation & amortization figure, mostly driven by our Sugar, Ethanol & Energy business on higher capitalization of inter-harvest costs.

Adjusted Net Income reached $18.6 million during 4Q22, $38.5 million lower than in 4Q21, whereas on an annual basis it amounted to $124.5 million, presenting a 20.8% decrease compared to the previous year. We believe Adjusted Net Income is a more appropriate metric to reflect the Company's performance.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED NET INCOME** <sup>(1)</sup><br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Profit for the period | 2732 | 58753 | (95.4)% | 108606 | 130717 | (16.9)% |
| Foreign exchange losses/(gains), net | (6636) | (9328) | (28.9)% | (19278) | (18939) | 1.8% |
| Cash flow hedge - transfer from equity | 4620 | 8943 | (48.3)% | 40195 | 52650 | (23.7)% |
| Inflation accounting effects | 16821 | (3322) | n.a | 2144 | (11541) | n.a |
| Net results from Fair Value adjustment of Investment Property | (917) | 2028 | (145.2)% | 2961 | 4331 | (31.6)% |
| Bargain purchase gain on acquisition <sup>(2)</sup> | 1948 |  | n.m. | (10107) |  | n.m. |
| **Adjusted Net Income** | **18568** | **57074** | **(67.5)%** | **124521** | **157218** | **(20.8)%** |

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(1) Please see "Reconciliation of Non-IFRS measures" starting on page 35 for a reconciliation of Adjusted Net Income.

(2) Non-cash item related to our recent acquisition of Viterra's rice operations, representing the difference between acquisition cost and fair value of net assets acquired.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Indebtedness</u>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **NET DEBT BREAKDOWN**<br>***$ thousands*** |<br>**4Q22** |<br>**3Q22** |<br>**Chg %** |<br>**4Q21** |<br>**Chg %** |
| **Farming** | **291861** | **349921** | **(16.6)%** | **128019** | **128.0%** |
| Short term Debt | 251422 | 285868 | (12.0)% | 86263 | 191.5% |
| Long term Debt | 40439 | 64053 | (36.9)% | 41756 | (3.2)% |
| **Sugar, Ethanol & Energy** | **715891** | **704828** | **1.6%** | **689632** | **3.8%** |
| Short term Debt | 28347 | 26244 | 8.0% | 25901 | 9.4% |
| Long term Debt | 687544 | 678584 | 1.3% | 663731 | 3.6% |
| **Total Short term Debt** | **279769** | **312112** | **(10.4)%** | **112164** | **149.4%** |
| **Total Long term Debt** | **727983** | **742637** | **(2.0)%** | **705487** | **3.2%** |
| **Gross Debt** | **1007752** | **1054749** | **(4.5)%** | **817651** | **23.2%** |
| Cash & Equivalents | 230653 | 159362 | 44.7% | 199766 | 15.5% |
| Restricted Short-Term Investments | 98571 | 79365 | 24.2% |  | n.a |
| **Net Debt** | **678528** | **816022** | **(16.8)%** | **617885** | **9.8%** |
| **EOP Net Debt / Adj. EBITDA LTM** | **1.6x** | **2.1x** | **(23.8)%** | **1.4x** | **10.9%** |

---

As of December 31, 2022, Adecoagro's net debt amounted to $678.5 million, $137.5 million or 16.8% lower compared to the previous quarter. The decrease in net debt is fully explained by a $90.5 million increase in our cash position (Cash & Equivalents + Short-term investments), coupled with a 4.5% reduction in our gross debt position. It is worth highlighting that cash levels increased throughout the fourth quarter on positive free cash flow generation thanks to our strategy to carry over inventory during the year in order to profit from better prices by year-end.

On a year-over-year basis, net debt was 9.8% higher compared to the same period of last year due to a 23.2% increase in our gross debt position, which partially offset the 64.8% increase in our cash position. The increase in debt was mainly driven by (i) the financing of our working capital needs to secure our supply chain as we are undertaking our planting activities related to the 2022/23 harvest season, along with higher costs of inputs; coupled with (ii) the financing of our growth capex, mostly related to the expansion of the size of our sugarcane plantation. These working capital requirements are being financed by short term borrowings in our Farming division at attractive rates. Thus, short-term debt was 149.4% higher compared to the same period of last year. As of December 31, 2022, our Liquidity ratio (Cash & Equivalents + Marketable Inventories / Short Term Debt) reached 1.72x, showing the Company's full capacity to repay short term debt with its cash balances.

Our Net Debt ratio (Net Debt/EBITDA) as of 4Q22 was 1.6x, 23.8% lower than the previous quarter and 10.9% up compared to 4Q21, in line with the increase in net debt. Nevertheless, we believe that our balance sheet is in a healthy position based not only on the adequate overall debt levels but also on the terms of our indebtedness, most of which is long-term debt.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Capital Expenditures & Investments</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CAPITAL EXPENDITURES**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| **Farming & Land Transformation** | **10265** | **10824** | **(5.2)%** | **42281** | **48187** | **(12.3)%** |
| Expansion | 10265 | 4789 | 114.3% | 24563 | 28962 | (15.2)% |
| Maintenance |  | 6035 | (100.0)% | 17719 | 19225 | (7.8)% |
| **Sugar, Ethanol & Energy** | **38674** | **27374** | **41.3%** | **186783** | **156977** | **19.0%** |
| Maintenance | 16628 | 25242 | (34.1)% | 140560 | 127909 | 9.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Planting | 12229 | 18693 | (34.6)% | 72916 | 55728 | 30.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial & Agricultural Machinery | 4399 | 6549 | (32.8)% | 67645 | 72180 | (6.3)% |
| Expansion | 22046 | 2132 | 934.2% | 46223 | 29068 | 59.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Planting | 16667 | 234 | n.m | 30259 | 22819 | 32.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial & Agricultural Machinery | 5379 | 1897 | 183.5% | 15964 | 6249 | 155.5% |
| **Total** | **48939** | **38198** | **28.1%** | **229065** | **205164** | **11.6%** |
| &nbsp;&nbsp;*Total Maintenance Capex* | *16628* | *31278* | *(46.8)%* | *158279* | *147134* | *7.6%* |
| &nbsp;&nbsp;*Total Expansion Capex* | *32311* | *6921* | *366.9%* | *70786* | *58030* | *22.0%* |

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Adecoagro's capital expenditures totaled $48.9 million in 4Q22, 28.1% higher compared to the same period of last year, while in 2022 it amounted to $229.1 million, 11.6% higher year-over-year.

The Sugar, Ethanol and Energy business accounted for 79% or $38.7 million of total capex in 4Q22, marking a 41.3% increase compared to the same period of last year. Maintenance capex amounted to $16.6 million, 34.1% lower than in 4Q21 driven by a 34.6% decline in renewal planting on lower area (4,755 hectares less than in 4Q21), coupled with a 32.8% decrease in Industrial & Agricultural Machinery, partially explained by the actions taken during 4Q21 to mitigate the impact of 2021's frost in our sugarcane plantation. Expansion capex, in turn, increased by $19.9 million compared to the previous year, reaching $22.0 million. Investments on this front are related to (i) expansion planting as we continue to increase the size of our sugarcane plantation with the aim of reaching full capacity in our mills; as well as to (ii) small projects including increasing our capacity to concentrate vinasse. Year-to-date, capital expenditures amounted to $186.8 million, 19.0% higher compared to the same period of last year. This was mostly driven by the first quarter dynamics, namely the higher capitalization of inter-harvest costs due to the late start of crushing activities and hence, longer inter-harvest period.

Farming & Land Transformation businesses accounted for 21%, or $10.3 million of total capex in 4Q22, presenting a year-over-year decrease of 5.2%. This decline is fully explained by all the maintenance capex being conducted during the first nine months of the year. On the hand, the $5.5 million increase in expansion capex was driven by the construction of our second biodigestor in our Dairy business (to generate renewable energy from cow manure), coupled with the upgrade of our cheese equipment to enhance our product portfolio offering. On a full year basis, capital expenditures were $42.3 million, 12.3% or $5.9 million lower than the same period of last year.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>Inventories</u>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Volume** | **Volume** | **Volume** | **thousand $** | **thousand $** | **thousand $** |
| **END OF PERIOD INVENTORIES**<br>**Product** |<br>***Metric*** | **4Q22** | **4Q21** | **% Chg** | **4Q22** | **4Q21** | **% Chg** |
| Soybean | *tons* | 6403 | 7382 | (13.3)% | 2670 | 2553 | 4.6% |
| Corn <sup>(1)</sup> | *tons* | 18533 | 24972 | (25.8)% | 3749 | 4665 | (19.7)% |
| Wheat <sup>(2)</sup> | *tons* | 56377 | 75184 | (25.0)% | 16957 | 16605 | 2.1% |
| Sunflower | *tons* | 952 | 1907 | (50.1)% | 1493 | 969 | 54.1% |
| Cotton | *tons* | 1854 | 442 | 319.0% | 2784 | 782 | 256.0% |
| Rice <sup>(3)</sup> | *tons* | 33983 | 16926 | 100.8% | 13367 | 4872 | 174.4% |
| Peanut | *tons* | 7601 | 8842 | (14.0)% | 6907 | 8121 | (14.9)% |
| Organic Sugar | *tons* | 2730 | 4284 | (36.3)% | 1192 | 1541 | (22.7)% |
| Sugar | *tons* | 72421 | 18866 | 283.9% | 22539 | 5812 | 287.8% |
| Ethanol | *m3* | 134690 | 152858 | (11.9)% | 63785 | 72496 | (12.0)% |
| &nbsp;&nbsp;*Hydrous Ethanol* | *m3* | *109563* | *60591* | *80.8%* | *51346* | *28771* | *78.5%* |
| &nbsp;&nbsp;*Anhydrous Ethanol* | *m3* | *25127* | *92267* | *(72.8)%* | *12439* | *43725* | *(71.6)%* |
| Fluid Milk | *Th Lts* | 5607 | 8943 | (37.3)% | 3199 | 4750 | (32.7)% |
| Powder Milk | *tons* | 1802 | 3059 | (41.1)% | 7799 | 9547 | (18.3)% |
| Cheese | *tons* | 174 | 205 | (14.8)% | 794 | 860 | (7.7)% |
| Butter | *tons* | 241 |  | n.a. | 1033 |  | n.a. |
| Cbios | *units* | 78160 | 128817 | (39.3)% | 1177 | 1006 | 17.0% |
| Others | *tons* | 4307 | 8347 | (48.4)% | 3272 | 3674 | (10.9)% |
| **Total** |  | **425835** | **461036** | **(7.6)%** | **152716** | **138254** | **10.5%** |

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(1) Includes sorghum

(2) Includes barley

(3) Expressed in white rice equivalent

Variations in inventory levels between 4Q22 and 4Q21 are attributable to changes in (i) production volumes resulting from changes in planted area, (ii) production mix between different crops and in yields obtained; (iii) different percentage of area harvested during the period; and (iv) commercial strategy or selling pace for each product.

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![cover4q22.jpg](cover4q22.jpg)<br>

<u>4Q22 Market Highlights</u>

◦ Sugar price traded within a range of 17.4 cts/lb to 21.0 cts/lb during 4Q22. The main source of volatility has been speculative fund activity. Prices in U.S. dollars were, on average, 6% higher than in 3Q22 and 1% lower than in 4Q21, according to ICE futures (Sugar #11). Supply & demand for raw sugar is expected to remain tight if demand for imports continues to be solid and Indian exports remain uncertain. In 1Q23 sugar prices are being supported by a perceived low stock in Brazil, and a low export pace from India. Prices are expected to remain supported throughout the year on account of (i) reliance on an early crop start in Brazil, and (ii) constraints in export capacity. In addition, sugar prices need to stay at a premium to ethanol parity, as the world needs maximum sugar production from Brazil. Thus, any further supply disruption could significantly affect the world's S&D and thus prices.

◦ In October 2022, ethanol prices recovered due to the following combination of factors: (i) rainfalls in Center-South Brazil causing disruptions in harvesting activities; (ii) higher than expected fuel consumption; (iii) low inventories from fuel distributors; (iv) a more optimistic sentiment about federal taxes returning in 2023; and (v) strong ethanol exports. After a month of November when prices were stable, they started to decline in December due to a reduction in gasoline price made by Petrobras, coupled with a 60-day extension of the regulatory measures on fuels and biofuels. According to ESALQ index, hydrous and anhydrous prices decreased in average 20% on a year-over-year basis. As reported by UNICA (Brazil's sugarcane association), total ethanol sales in 4Q22 were 18% higher compared to the previous quarter, whereas accumulated exports were 63% higher compared to 2021/22's levels. Looking ahead to 2023/24 season, the outlook for oil remains positive, combined with a recovery in sugarcane and the need to maximize sugar production due to tight global sugar S&D. Thus, all these factors together should provide firm support to ethanol prices. Moreover, there is a strong signaling that the Brazilian government will re-instate fuel taxes in March 2023.

◦ Brazil's carbon credit market under the RenovaBio program presented a 25% decrease in prices in 4Q22, reaching an average price of 93 BRL/CBio (approximately 20 USD/CBio), but still significantly up from the 51 BRL/CBio (approximately 10 USD/CBio) registered during the same period of last year. During October, November and December 2022, average prices stood at 91, 101 and 87 BRL/CBio (approximately 17, 19 and 17 USD/CBio, respectively).

◦ In 4Q22, energy spot prices in the southeast region of Brazil were 59% lower than during the same period of last year. During October, November and December, average energy prices were 55.7 BRL/MWh. The main reason behind the drop continues to be the level of water at the southeast reservoirs (65%), marking a 27% increase compared to the same period of last year. In January 2023, the PLD (Preço de Liquidação das Diferenças or settlement price for differences) closed at 69.0 BRL/MWh, 10% higher compared to last year. As of December 31st, 2022, consumption showed a decrease of 1.6% versus the same period of last year, according to ONS (Electrical System Operator).

◦ During 4Q22, soybean was 10% higher on CBOT compared to 3Q22, while corn was 1% lower. The bearish sentiment in prices was driven by (i) renovated Ukraine and Russia agreement on Black Sea, (ii)

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![cover4q22.jpg](cover4q22.jpg)<br>

a stable macro scenario despite worldwide inflation, (iii) recession; and (iv) a stronger U.S. dollar. Nevertheless, there are factors supporting commodity prices such as (i) "La Niña" weather event in January, February and March but shifting to "Neutral" for the rest of 2023, and (ii) a tight S&D balance on corn and soybean with high dependency on South American production. During 4Q22, funds reduced their net long position on soybean and increased their position on corn. Prices at the local market traded 15% higher on soybean and 6% higher on corn, compared to 3Q22. Pricer were supported by (i) a delay in soybean and corn planting activities due to "La Niña" coupled with a decrease in production estimates, and (ii) slower farmer selling on soybean due to the expectation of a new "soybean dollar" (preferential exchange rate for soybean farmers to convert their earnings to local currency).

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![cover4q22.jpg](cover4q22.jpg)<br>

**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, including our expectations for crushing and other volumes; (ii) the impact of 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; (v) our plans relating to acquisitions, joint ventures, strategic alliances or divestitures; (vi) the implementation of our financing strategy, capital expenditure plan and distribution policy; (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.

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.

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![cover4q22.jpg](cover4q22.jpg)<br>

**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

• Adjusted Net Income

• Adjusted Free Cash Flow

• Adjusted Free Cash Flow from Operations

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 believe these non-GAAP 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 allow for greater transparency with respect to key metrics used by management for financial and operational decision making and as a means to evaluate period-to-period.

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 and exchange differences generated by the net liability monetary position in USD in the countries where the functional currency is the local currency, 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**

Adjusted Consolidated EBITDA equals the sum of our Adjusted Segment EBITDA for each of our operating segments. We define "Adjusted Consolidated EBITDA" as (i) consolidated net profit (loss) for the year, as applicable, before interest expense, income taxes, depreciation of property, plant and equipment and amortization of intangible assets, net gain from fair value adjustments of investment property land foreign exchange gains or losses, other net financial results; and (ii) adjusted by profit or loss from discontinued operations; (iii) adjusted by those items, that do not impact profit and loss, but are recorded directly in shareholders' equity, including (a) the gains or losses from disposals of noncontrolling interests in subsidiaries whose main underlying asset is farmland, reflected under the line item: "Reserve from the sale of noncontrolling interests in subsidiaries" and (b) the net increase in value of sold farmland, which has

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been recognized in either revaluation surplus of retained earnings; and (iv) net of the combined effect of the application of IAS 29 and IAS 21 from the Argentine operations included in profit from operations. . (See Item 5. "Operating and Financial Review and Prospects - A. Operating Results - Critical Accounting Policies and Estimates" in our Annual Report on Form 20-F for the year ended December 31, 2021)

We define "Adjusted Segment EBITDA" for each of our operating segments as (i) the segment's share of consolidated profit (loss) from operations aper segment information for the year, as applicable, before depreciation of property, plant and equipment and amortization of intangible assets (ii) adjusted by those items, that do not impact profit and loss, but are recorded directly in shareholders' equity, including (a) the gains or losses from disposals of noncontrolling interests in subsidiaries whose main underlying asset is farmland, reflected under the line item: "Reserve from the sale of noncontrolling interests in subsidiaries" and (b) the net increase in value of sold farmland, which has been recognized in either revaluation surplus of retained earnings, which is reflected in shareholder equity under the line item "Reverse of revaluation surplus derived from disposals of assets; and (iii) net of the combined effect of the application of IAS 29 and IAS 21 from the Argentine operations included in profit from operations

We believe that Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are important measures of operating performance for our company and each operating segment, respectively, because they allow investors and others to evaluate and compare our consolidated operating results and to evaluate and compare the operating performance of our segments, respectively, including our return on capital and operating efficiencies, from period to period by removing the impact of our capital structure (interest expense from our outstanding debt), asset base (depreciation of property plan and equipment and amortization of intangible assets), tax consequences (income taxes), bargain purchases gains, foreign exchange gains or losses and other financial results. In addition, by including the gains or losses from disposals of non-controlling interests in subsidiaries whose main underlying asset is farmland, investors can also evaluate the full value and returns generated by our land transformation activities. Other companies may calculate Adjusted Consolidated EBITDA and Adjusted Segment EBITDA differently, and therefore our Adjusted Consolidated EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures used by other companies. Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are not measures of financial performance under IFRS, and should not be considered in isolation or as an alternative to consolidated net profit (loss), cash flows from operating activities, segment's profit from operations before financing and taxation and other measures determined in accordance with IFRS. Items excluded from Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are significant and necessary components to the operations of our business, and, therefore, Adjusted Consolidated EBITDA and Adjusted Segment EBITDA should only be used as a supplemental measure of our company's operating performance, and of each of our operating segments, respectively. We also believe Adjusted Consolidated EBITDA and Adjusted Segment EBITDA are useful for securities analysts, investors and others to evaluate the financial performance of our company and other companies in the agricultural industry. These non-IFRS measures should be considered in addition to, but not as a substitute for or superior to, the information contained in either our statements of income or segment information.

Reconciliation of both Adjusted EBITDA and Adjusted EBIT starts on page 41.

**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 and restricted short-term investments (namely US T-Bills use as collateral of short-term borrowings). This measure is

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![cover4q22.jpg](cover4q22.jpg)<br>

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.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **RECONCILIATION - NET DEBT**<br>***$ thousands*** |<br>**4Q22** |<br>**3Q22** |<br>**Chg %** |<br>**4Q21** |<br>**Chg %** |
| Total Borrowings | 1007752 | 1054749 | (4.5)% | 817651 | 23.2% |
| Cash and Cash equivalents | 230653 | 159362 | 44.7% | 199766 | 15.5% |
| Restricted short-term investments | 98571 | 79365 | 24.2% |  | n.a |
| **Net Debt** | **678528** | **816022** | **(16.8)%** | **617885** | **9.8%** |

---

**Adjusted Net Income**

We define Adjusted Net Income as (i) Profit / (Loss) of the period/year before net gain / (losses) from fair value adjustments of investment property land and bargain purchase gain on acquisition; plus (ii) any non-cash finance costs resulting from foreign exchange gain/losses for such period, which are composed by both Exchange Differences and Cash Flow Hedge Transfer from Equity, included in Financial Results, net, in our statement of income; net of the related income tax effects, plus (iii) 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 non-controlling interests in subsidiaries" if any, plus (iv) the reversal of the aforementioned income tax effect, plus (v) inflation accounting effect; plus (vi) the net increase in value of sold farmland, which has been recognized in either Revaluation surplus or Retained earnings, if any.

We believe that Adjusted Net Income is an important measure of performance for our company allowing investors to properly assess the impact of the results of our operations in our Equity. In effect, results arising from the revaluation effect of our net monetary position held in foreign currency in the countries where our functional currency is the local currency do not affect the Equity of the Company, when measured in foreign / reporting currency. Conversely, the tax effect resulting from the aforementioned revaluation effect does impact the Equity of the Company, since it reduces/increases the income tax to be paid in each country; which is why we decided to add back the income tax effect to the Adjusted Net Income considering this tax effect.

In addition, by including the gains or losses from disposals of non-controlling interests in subsidiaries whose main underlying asset is farmland, investors can also include the full value and returns generated by our land transformation activities.

Other companies may calculate Adjusted Net Income differently, and therefore our Adjusted Net Income may not be comparable to similarly titled measures used by other companies. Adjusted Net Income is not a measures of financial performance under IFRS, and should not be considered in isolation or as an

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![cover4q22.jpg](cover4q22.jpg)<br>

alternative to consolidated net profit (loss). This non-IFRS measure should be considered in addition to, but not as a substitute for or superior to, the information contained in our financial statements.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED NET INCOME**<br>***$ thousands*** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Profit for the period | 2732 | 58753 | (95.4)% | 108606 | 130717 | (16.9)% |
| Foreign exchange losses/(gains), net | (6636) | (9328) | (28.9)% | (19278) | (18939) | 1.8% |
| Cash flow hedge - transfer from equity | 4620 | 8943 | (48.3)% | 40195 | 52650 | (23.7)% |
| Inflation accounting effects | 16821 | (3322) | n.a | 2144 | (11541) | n.a |
| Net results from Fair Value adjustment of Investment Property | (917) | 2028 | (145.2)% | 2961 | 4331 | (31.6)% |
| Bargain purchase gain on acquisition | 1948 |  | n.m. | (10107) |  | n.m. |
| **Adjusted Net Income** | **18568** | **57074** | **(67.5)%** | **124521** | **157218** | **(20.8)%** |

---

**Adjusted Free Cash Flow and Adjusted Free Cash Flow from Operations**

We believe that the measures of Adjusted Free Cash Flow and Adjusted Free Cash Flow from Operations are important measures of liquidity that enable investors to draw important comparisons year to year of the amount of cash generated by the Company's principal business and financing activities, which includes the cash generated from our land transformation activities, after paying for recurrent items, including interest, taxes and maintenance capital expenditures.

We define Adjusted Free Cash Flow as the aggregate of (i) net cash generated from operating activities net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, (ii) net cash used in investing activities net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, less (iii) interest paid net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, plus (iv) proceeds from the sale of non-controlling interest in farming subsidiaries; less (v) lease payments and; less (vi) dividends paid to noncontrolling interest, plus (vii) the net of acquisition/disposal of restricted short-term investment (namely US T-Bills use as collateral of short-term borrowings). We define Adjusted Free Cash Flow from Operations as the aggregate of (i) net cash generated from operating activities net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, (ii) net cash used in investing activities net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, less (iii) interest paid net of the combined effect of the application of IAS 29 and IAS 21 to the Argentine operations, plus (iv) proceeds from the sale of noncontrolling interest in subsidiaries; less (v) lease payments; less (vi) dividends paid to noncontrolling interest, plus (vii) the net acquisition/disposal of restricted short-term investment (namely US T-Bills use as collateral of short-term borrowings), plus (viii) expansion capital expenditures.

Expansion capex is defined as the required investment to expand current production capacity including organic growth, joint ventures and acquisitions. We define maintenance capital expenditures ("maintenance capex") as the necessary investments in order to maintain the current level of productivity both at an agricultural and at an industrial level. Proceeds from the sale of non-controlling interest in farming subsidiaries is a measure of the cash generated from our land transformation business that is included under cash from financing activities pursuant to IFRS.

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![cover4q22.jpg](cover4q22.jpg)<br>

We believe Adjusted Free Cash Flow is an important liquidity measure for the Company because it allows investors and others to evaluate and compare the amount of cash generated by the Company business and financing activities to undertake growth investments, to fund acquisitions, to reduce outstanding financial debt. and to provide a return to shareholders in the form of dividends and/or share repurchases, among other things.

We believe Adjusted Free Cash Flow from Operations is an additional important liquidity metric for the Company because it allows investors and others to evaluate and compare the total amount of cash generated by the Company's business and financing activities after paying for recurrent items including interest, taxes and maintenance capex. We believed this metric is relevant in evaluating the overall performance of our business.

Other companies may calculate Adjusted Free Cash Flow and Adjusted Free Cash Flow from Operations differently, and therefore our formulation may not be comparable to similarly titled measures used by other companies. Adjusted Free Cash Flow and Adjusted 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 cash flows from operating activities, net increase (decrease) in cash and cash equivalents and other measures determined in accordance with IFRS.

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| | | | |
|:---|:---|:---|:---|
| **Adjusted Free Cash Flow Summary**<br>***$ thousands*** | **2022** | **2021** |<br>**Chg %** |
| Net cash generated from operating activities <sup>(1)</sup> | 408069 | 379328 | 7.6% |
| Net cash used in investing activities <sup>(1)</sup> | (299181) | (170527) | 75.4% |
| Interest paid <sup>(1)</sup> | (44865) | (52478) | (14.5)% |
| Expansion Capex reversal | 70786 | 58030 | 22.0% |
| Lease Payments | (91175) | (62273) | 46.4% |
| Dividends paid to non-controlling interest | (358) | (311) | 15.1% |
| Restricted short-term investments | 98010 |  | n.a. |
| **Adjusted Free Cash Flow from Operations (NCFO)** <sup>(2)</sup> | **141286** | **151769** <sup>(3)</sup> | **(6.9)%** |
| Expansion Capex | (70786) | (58030) | 22.0% |
| **Adjusted Free Cash Flow** <sup>(2)</sup> | **70500** | **93739** <sup>(3)</sup> | **(24.8)%** |

---

(1) Net of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries.

(2) Please refer to "Reconciliation of Non-IFRS measures" starting on page 35 for a definition of Adjusted Free Cash Flow from Operations and Adjusted Free Cash Flow.

(3) As reported in our 2021 Annual report.

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![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | |
|:---|:---|:---|
| **Reconciliation - Adjusted Free Cash Flow**<br>***$ thousands*** | **2022** | **2021** |
| Net Increase / (decrease) in cash and cash equivalents | 47189 | (129692) |
| Interest Paid | (44788) | (53587) |
| Lease payments | (91175) | (62273) |
| Dividends paid to non-controlling interest | (358) | (311) |
| Restricted short-term investments | 98010 |  |
| Cash Flow from Financing Activities | 23573 | 303133 |
| IAS 29 & IAS 21 Effect for Investing Activities | 83 | 4694 |
| IAS 29 & IAS 21 Effect for Operating Activities | 38043 | 30666 |
| IAS 29 & IAS 21 Effect for Interest paid | (77) | 1109 |
| **Adjusted Free Cash Flow** | **70500** | **93739** |

---

x

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| | | |
|:---|:---|:---|
| **Reconciliation - Adjusted Free Cash Flow from Operations**<br>***$ thousands*** | **2022** | **2021** |
| Net Increase / (decrease) in cash and cash equivalents | 47189 | (129692) |
| Expansion Capex | 70786 | 58030 |
| Interest Paid | (44788) | (53587) |
| Lease payments | (91175) | (62273) |
| Dividends paid to non-controlling interest | (358) | (311) |
| Restricted short-term investments | 98010 |  |
| Cash Flow from Financing Activities | 23573 | 303133 |
| IAS 29 & IAS 21 Effect for Investing Activities | 83 | 4694 |
| IAS 29 & IAS 21 Effect for Operating Activities | 38043 | 30666 |
| IAS 29 & IAS 21 Effect for Interest paid | (77) | 1109 |
| **Adjusted Free Cash Flow from Operations** | **141286** | **151769** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q22** | | | | | |
| ***$ thousands*** | Crops | Rice | Dairy | Others | **Farming** | **Sugar, Ethanol & Energy** | **Land Transformation** | **Corporate** | **Total** |
| Sales of goods and services rendered | 54207 | 64712 | 54718 | 1805 | 175442 | 206574 |  |  | 382016 |
| Cost of goods sold and services rendered | (47651) | (45906) | (48714) | (1659) | (143930) | (160052) |  |  | (303982) |
| Initial recog. and changes in FV of BA and agricultural produce | (815) | (150) | 7889 | (214) | 6710 | 30349 |  |  | 37059 |
| Gain from changes in NRV of agricultural produce after harvest | 1011 |  |  |  | 1011 |  |  |  | 1011 |
| **Margin on Manufacturing and Agricultural Act. Before Opex** | **6752** | **18656** | **13893** | **(68)** | **39233** | **76871** | **—** | **—** | **116104** |
| General and administrative expenses | (2075) | (5964) | (2392) | (36) | (10467) | (5783) |  | (4694) | (20944) |
| Selling expenses | (8415) | (11312) | (6323) | (47) | (26097) | (15134) |  | (142) | (41373) |
| Other operating income, net | (1658) | (570) | 102 | 844 | (1282) | (791) | 354 | (101) | (1820) |
| Bargain purchase gain |  | (1906) |  |  | (1906) |  |  |  | (1906) |
| **Profit from Operations Before Financing and Taxation** | **(5396)** | **(1096)** | **5280** | **693** | **(519)** | **55163** | **354** | **(4937)** | **50061** |
| Net results from Fair value adjustment of Investment property |  |  |  | (851) | (851) |  |  |  | (851) |
| (-) Bargain purchase gain on acquisition |  | 1906 |  |  | 1906 |  |  |  | 1906 |
| **Adjusted EBIT** | **(5396)** | **810** | **5280** | **(158)** | **536** | **55163** | **354** | **(4937)** | **51116** |
| (-) Depreciation and Amortization | 2139 | 4642 | 2581 | 36 | 9398 | 45969 |  | (699) | 54668 |
| **Adjusted EBITDA** | **(3257)** | **5452** | **7861** | **(122)** | **9934** | **101132** | **354** | **(5636)** | **105784** |
| **Reconciliation to Profit/(Loss)** |  |  |  |  |  |  |  |  |  |
| Adjusted EBITDA |  |  |  |  |  |  |  |  | 105784 |
| (+) Depreciation and Amortization |  |  |  |  |  |  |  |  | (54668) |
| (+) Financial result, net |  |  |  |  |  |  |  |  | (44735) |
| (+) Net results from Fair value adjustment of Investment property |  |  |  |  |  |  |  |  | 851 |
| (+) Income Tax (Charge)/Benefit |  |  |  |  |  |  |  |  | (2893) |
| (-) Bargain purchase gain on acquisition |  |  |  |  |  |  |  |  | (1906) |
| (+) Translation Effect (IAS 21) |  |  |  |  |  |  |  |  | 299 |
| **Profit/(Loss) for the Period** |  |  |  |  |  |  |  |  | **2732** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 4Q21** | | | | | |
| ***$ thousands*** | Crops | Rice | Dairy | Others | **Farming** | **Sugar, Ethanol & Energy** | **Land Transformation** | **Corporate** | **Total** |
| Sales of goods and services rendered | 65921 | 40025 | 48168 | 2039 | 156153 | 164392 |  |  | 320545 |
| Cost of goods sold and services rendered | (59009) | (35796) | (43737) | (1901) | (140443) | (120055) |  |  | (260498) |
| Initial recog. and changes in FV of BA and agricultural produce | 12904 | 791 | 5274 | 1665 | 20634 | 17511 |  |  | 38145 |
| Gain from changes in NRV of agricultural produce after harvest | (2073) |  |  |  | (2073) | 34 |  |  | (2039) |
| **Margin on Manufacturing and Agricultural Act. Before Opex** | **17743** | **5020** | **9705** | **1803** | **34271** | **61882** | **—** | **—** | **96153** |
| General and administrative expenses | (3730) | (2593) | (827) | (82) | (7232) | (4974) |  | (6327) | (18533) |
| Selling expenses | (7930) | (4641) | (6779) | (116) | (19466) | (12780) |  | (155) | (32401) |
| Other operating income, net | (3809) | (56) | (33) | (1873) | (5771) | (2166) | 1021 | 202 | (6714) |
| **Profit from Operations Before Financing and Taxation** | **2274** | **(2270)** | **2066** | **(268)** | **1802** | **41962** | **1021** | **(6280)** | **38505** |
| Net results from Fair value adjustment of Investment property |  |  |  | 1870 | 1870 |  |  |  | 1870 |
| **Adjusted EBIT** | **2274** | **(2270)** | **2066** | **1602** | **3672** | **41962** | **1021** | **(6280)** | **40375** |
| (-) Depreciation and Amortization | 1906 | 2284 | 1511 | 80 | 5781 | 23064 |  | 305 | 29150 |
| **Adjusted EBITDA** | **4180** | **14** | **3577** | **1682** | **9453** | **65026** | **1021** | **(5975)** | **69525** |
| **Reconciliation to Profit/(Loss)** |  |  |  |  |  |  |  |  |  |
| Adjusted EBITDA |  |  |  |  |  |  |  |  | 69525 |
| (+) Depreciation and Amortization |  |  |  |  |  |  |  |  | (29150) |
| (+) Financial result, net |  |  |  |  |  |  |  |  | (8891) |
| (+) Net results from Fair value adjustment of Investment property |  |  |  |  |  |  |  |  | (1870) |
| (+) Income Tax (Charge)/Benefit |  |  |  |  |  |  |  |  | 24974 |
| (+) Translation Effect (IAS 21) |  |  |  |  |  |  |  |  | 4165 |
| **Profit/(Loss) for the Period** |  |  |  |  |  |  |  |  | **58753** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M22** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M22** | | | | | |
| ***$ thousands*** | Crops | Rice | Dairy | Others | **Farming** | **Sugar, Ethanol & Energy** | **Land Transformation** | **Corporate** | **Total** |
| Sales of goods and services rendered | 275200 | 203686 | 236222 | 5839 | 720947 | 630760 |  |  | 1351707 |
| Cost of goods sold and services rendered | (252879) | (159940) | (204924) | (5153) | (622896) | (455841) |  |  | (1078737) |
| Initial recog. and changes in FV of BA and agricultural produce | 64133 | 14802 | 27523 | (336) | 106122 | 108066 |  |  | 214188 |
| Gain from changes in NRV of agricultural produce after harvest | (21495) |  |  |  | (21495) | (934) |  |  | (22429) |
| **Margin on Manufacturing and Agricultural Act. Before Opex** | **64959** | **58548** | **58821** | **350** | **182678** | **282051** | **—** | **—** | **464729** |
| General and administrative expenses | (13175) | (15404) | (10378) | (220) | (39177) | (21917) |  | (23413) | (84507) |
| Selling expenses | (31672) | (34630) | (27050) | (257) | (93609) | (50165) |  | (257) | (144031) |
| Other operating income, net | (1021) | 79 | (8) | (2801) | (3751) | 2881 | 3699 | (136) | 2693 |
| Bargain purchase gain |  | 10070 |  |  | 10070 |  |  |  | 10070 |
| **Profit from Operations Before Financing and Taxation** | **19091** | **18663** | **21385** | **(2928)** | **56211** | **212850** | **3699** | **(23806)** | **248954** |
| Net results from Fair value adjustment of Investment property |  |  |  | 2764 | 2764 |  |  |  | 2764 |
| (-) Bargain purchase gain |  | (10070) |  |  | (10070) |  |  |  | (10070) |
| **Adjusted EBIT** | **19091** | **8593** | **21385** | **(164)** | **48905** | **212850** | **3699** | **(23806)** | **241648** |
| (-) Depreciation and Amortization | 7908 | 12112 | 10075 | 212 | 30307 | 160920 |  | (22) | 191205 |
| **Adjusted EBITDA** | **26999** | **20705** | **31460** | **48** | **79212** | **373770** | **3699** | **(23828)** | **432853** |
| **Reconciliation to Profit/(Loss)** |  |  |  |  |  |  |  |  |  |
| Adjusted EBITDA |  |  |  |  |  |  |  |  | 432853 |
| (+) Depreciation and Amortization |  |  |  |  |  |  |  |  | (191205) |
| (+) Financial result, net |  |  |  |  |  |  |  |  | (114436) |
| (+) Net results from Fair value adjustment of Investment property |  |  |  |  |  |  |  |  | (2764) |
| (+) Income Tax (Charge)/Benefit |  |  |  |  |  |  |  |  | (26758) |
| (-) Bargain purchase gain on acquisition |  |  |  |  |  |  |  |  | 10070 |
| (+) Translation Effect (IAS 21) |  |  |  |  |  |  |  |  | 846 |
| **Profit/(Loss) for the Period** |  |  |  |  |  |  |  |  | **108606** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M21** | **ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 12M21** | | | | | |
| ***$ thousands*** | Crops | Rice | Dairy | Others | **Farming** | **Sugar, Ethanol & Energy** | **Land Transformation** | **Corporate** | **Total** |
| Sales of goods and services rendered | 228894 | 130526 | 172803 | 3490 | 535713 | 562010 |  |  | 1097723 |
| Cost of goods sold and services rendered | (203148) | (109709) | (149738) | (2966) | (465561) | (368501) |  |  | (834062) |
| Initial recog. and changes in FV of BA and agricultural produce | 65704 | 37119 | 18336 | 1380 | 122539 | 88659 |  |  | 211198 |
| Gain from changes in NRV of agricultural produce after harvest | (10163) |  |  |  | (10163) | (1495) |  |  | (11658) |
| **Margin on Manufacturing and Agricultural Act. Before Opex** | **81287** | **57936** | **41401** | **1904** | **182528** | **280673** | **—** | **—** | **463201** |
| General and administrative expenses | (10273) | (8891) | (4715) | (173) | (24052) | (19464) |  | (22119) | (65635) |
| Selling expenses | (21925) | (16618) | (20779) | (273) | (59595) | (52946) |  | (306) | (112847) |
| Other operating income, net | (3538) | 239 | (150) | (3995) | (7444) | (17390) | 6613 | 103 | (18118) |
| **Profit from Operations Before Financing and Taxation** | **45551** | **32666** | **15757** | **(2537)** | **91437** | **190873** | **6613** | **(22322)** | **266601** |
| Net results from Fair value adjustment of Investment property |  |  |  | 3884 | 3884 |  |  |  | 3884 |
| **Adjusted EBIT** | **45551** | **32666** | **15757** | **1347** | **95321** | **190873** | **6613** | **(22322)** | **270485** |
| (-) Depreciation and Amortization | 6501 | 8080 | 7144 | 175 | 21900 | 143981 |  | 738 | 166619 |
| **Adjusted EBITDA** | **52052** | **40746** | **22901** | **1522** | **117221** | **334854** | **6613** | **(21584)** | **437104** |
| **Reconciliation to Profit/(Loss)** |  |  |  |  |  |  |  |  |  |
| Adjusted EBITDA |  |  |  |  |  |  |  |  | 437104 |
| (+) Depreciation and Amortization |  |  |  |  |  |  |  |  | (166619) |
| (+) Financial result, net |  |  |  |  |  |  |  |  | (103470) |
| (+) Net results from Fair value adjustment of Investment property |  |  |  |  |  |  |  |  | (3884) |
| (+) Income Tax (Charge)/Benefit |  |  |  |  |  |  |  |  | (43837) |
| (+) Translation Effect (IAS 21) |  |  |  |  |  |  |  |  | 11423 |
| **Profit/(Loss) for the Period** |  |  |  |  |  |  |  |  | **130717** |

---

------

![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **STATEMENT OF INCOME**<br>**$ thousands** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| Sales of goods and services rendered | 371624 | 334175 | 11.2% | 1347724 | 1124352 | 19.9% |
| Cost of goods sold and services rendered | (294869) | (271458) | 8.6% | (1075747) | (854965) | 25.8% |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 34574 | 44855 | (22.9)% | 215941 | 227740 | (5.2)% |
| Changes in net realizable value of agricultural produce after harvest | 1498 | (2566) | (158.4)% | (22293) | (12879) | 73.1% |
| **Margin on manufacturing and agricultural activities before operating expenses** | **112827** | **105006** | **7.4%** | **465625** | **484248** | **(3.8)%** |
| General and administrative expenses | (19306) | (20578) | (6.2)% | (84287) | (69794) | 20.8% |
| Selling expenses | (39546) | (34841) | 13.5% | (143515) | (117662) | 22.0% |
| Other operating income, net | (1667) | (6917) | (75.9)% | 1870 | (18768) | (110.0)% |
| Bargain purchase gain | (1948) | **—** | n.a | 10107 | **—** | n.a |
| **Profit from operations before financing and taxation** | **50360** | **42670** | **18.0%** | **249800** | **278024** | **(10.2)%** |
| Finance income | 8141 | 22767 | (64.2)% | 25308 | 36670 | (31.0)% |
| Finance costs | (36055) | (34980) | 3.1% | (137600) | (151681) | (9.3)% |
| Other financial results - Net gain of inflation effects on the monetary items | (16821) | 3322 | **(606.4)%** | (2144) | 11541 | **(118.6)%** |
| Financial results, net | (44735) | (8891) | 403.1% | (114436) | (103470) | 10.6% |
| **Profit before income tax** | **5625** | **33779** | **(83.3)%** | **135364** | **174554** | **(22.5)%** |
| Income tax expense | (2893) | 24974 | (111.6)% | (26758) | (43837) | (39.0)% |
| **Profit for the period** | **2732** | **58753** | **(95.4)%** | **108606** | **130717** | **(16.9)%** |

---

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![cover4q22.jpg](cover4q22.jpg)<br>

**Condensed Consolidated Statement of Cash Flow**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **STATEMENT OF CASHFLOWS**<br>**$ thousands** |<br>**4Q22** |<br>**4Q21** |<br>**Chg %** |<br>**12M22** |<br>**12M21** |<br>**Chg %** |
| **Cash flows from operating activities:** | | | | | | |
| **(Loss) / Profit for the year** | **2732** | **58753** | **(95.4)%** | **108606** | **130717** | **(16.9)%** |
| *Adjustments for:* |  |  |  |  |  |  |
| Income tax expense | 2893 | (24974) | (111.6)% | 26758 | 43837 | (39.0)% |
| Depreciation | 53034 | 29802 | 78.0% | 188775 | 167297 | 12.8% |
| Amortization | 804 | 454 | 77.1% | 2265 | 1631 | 38.9% |
| Depreciation of right of use assets | 15472 | 13476 | 14.8% | 63339 | 49199 | 28.7% |
| Loss / (gain) from the disposal of other property items | (756) | 2561 | (129.5)% | (3718) | 397 | n.a |
| (Gain) / loss from the sale of subsidiary |  | (10) | n.a |  | (10) | n.a |
| Bargain purchase gain | 1948 |  | n.a | (10107) |  | n.a |
| Net loss / (gain) from the Fair value adjustment of Investment properties | (917) | 2028 | n.a | 2961 | 4331 | (31.6)% |
| Equity settled share-based compensation granted | 2805 | 1861 | 50.7% | 10227 | 6406 | 59.6% |
| Loss / (gain) from derivative financial instruments | 7502 | 3982 | 88.4% | 13685 | 17276 | (20.8)% |
| Interest, finance cost related to lease liabilities and other financial expense, net | 26791 | 10725 | 149.8% | 83130 | 75610 | 9.9% |
| Initial recognition and changes in fair value of non harvested biological assets (unrealized) | 11951 | (7429) | n.a | (44935) | (11310) | 297.3% |
| Changes in net realizable value of agricultural produce after harvest (unrealized) | (3644) | 1614 | n.a | (72) | 4001 | n.a |
| Provision and allowances | 717 | 223 | 221.5% | 999 | 1146 | (12.8)% |
| Net gain of inflation effects on the monetary items | 16821 | (3322) | (606.4)% | 2144 | (11541) | n.a |
| Foreign exchange losses, net | (6636) | (9328) | (28.9)% | (19278) | (18939) | 1.8% |
| Cash flow hedge – transfer from equity | 4620 | 8943 | (48.3)% | 40195 | 52650 | (23.7)% |
| **Subtotal** | **136137** | **89359** | **52.3%** | **464974** | **512698** | **(9.3)%** |
| **Changes in operating assets and liabilities:** |  |  |  |  |  |  |
| Decrease / (Increase) in trade and other receivables | 42382 | 26331 | 61.0% | (60753) | (40449) | 50.2% |
| Decrease / (Increase) in inventories | 104543 | 87550 | 19.4% | 45437 | (102815) | n.a |
| (Increase) / decrease in biological assets | (90934) | (78540) | 15.8% | (3686) | 7597 | n.a |
| (Increase) in other assets | (191) | (315) | (39.4)% | (1056) | (303) | 248.5% |
| (Increase) in derivative financial instruments | (274) | (3919) | (93.0)% | (9661) | (29319) | (67.0)% |
| Increase / (decrease) in trade and other payables | 45445 | 13133 | 246.0% | (64502) | (1499) | 4,203.0% |
| (Decrease) / increase in payroll and social security liabilities | (572) | 430 | n.a | 7681 | 4874 | 58% |
| (Decrease) / increase in provisions for other liabilities | (115) | 277 | n.a | (290) | 74 | n.a |
| **Net cash generated from operating activities before taxes paid** | **236421** | **134306** | **76.0%** | **378144** | **350858** | **7.8%** |
| Income tax paid | (2571) | (387) | 564.3% | (8118) | (2196) | 269.7% |
| **Net cash generated from operating activities (a)** | **233850** | **133919** | **74.6%** | **370026** | **348662** | **6.1%** |

---

------

![cover4q22.jpg](cover4q22.jpg)<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** | **Condensed Consolidated Statement of Cash Flow** |
| **$ thousands** | **4Q22** | **4Q21** | **Chg %** | **12M22** | **12M21** | **Chg %** |
| **Cash flows from investing activities:** | | | | | | |
| Acquisition of business, net of cash and cash equivalents acquired | (483) |  | n . a | 1120 |  | n . a |
| Purchases of property, plant and equipment | (44247) | (35671) | 24.0% | (217776) | (199295) | 9.3% |
| Purchase of cattle and non current biological assets | (882) | (3011) | n . a | (9096) | (11776) | (22.8)% |
| Purchases of intangible assets | (1316) | (374) | 251.9% | (3350) | (1934) | 73.2% |
| Interest received and others | 856 | 13538 | (93.7)% | 5199 | 16729 | (68.9)% |
| Proceeds from sale of property, plant and equipment | 1667 | 149 | 1,018.8% | 2770 | 2946 | (6.0)% |
| Proceeds from sale of farmlands and other assets | (5000) |  | n . a | 9879 | 8099 | 22.0% |
| Proceeds from sale of subsidiary | 10000 | 10010 | (0.1)% | 10000 | 10010 | (0.1)% |
| Acquisition of short-term investment | (18645) |  | n . a | (98010) |  | n . a |
| **Net cash used in investing activities (b)** | **(58050)** | **(15359)** | **278.0%** | **(299264)** | **(175221)** | **70.8%** |
| **Cash flows from financing activities:** |  |  |  |  |  |  |
| Proceeds from equity settled share-based compensation exercise |  |  | n .a | 2124 |  | n .a |
| Proceeds from long-term borrowings | (1446) | 26672 | n .a | 41082 | 30972 | 32.6% |
| Payments of long-term borrowings | 352 | (4440) | (107.9)% | (14012) | (108425) | (87.1)% |
| Proceeds from short-term borrowings | 37867 | 68526 | (44.7)% | 347928 | 286115 | 21.6% |
| Payments of short-term borrowings | (75204) | (165762) | (54.6)% | (192648) | (328463) | (41.3)% |
| Interest paid **(c)** | (15806) | (8637) | 83.0% | (44788) | (53587) | (16.4)% |
| Prepayment related expenses |  |  | n . a |  | (3068) | n . a |
| Collections / (Payments) of derivatives financial instruments | 3 | 113 | (97.3)% | 118 | 2370 | (95.0)% |
| Lease Payments | (19094) | (10956) | 74.3% | (91175) | (62273) | 46.4% |
| Purchase of own shares | (10034) | (12414) | (19.2)% | (36844) | (66462) | (44.6)% |
| Dividends paid to non-controlling interest | (358) | (299) | 19.7% | (358) | (311) | 15.1% |
| Dividends to shareholders | (17500) |  | n . a | (35000) |  | n . a |
| **Net cash generated / (used) from financing activities (d)** | **(101220)** | **(107197)** | **(5.6)%** | **(23573)** | **(303132)** | **(92.2)%** |
| **Net increase / (decrease) in cash and cash equivalents** | **74580** | **11363** | **556.3%** | **47189** | **(129691)** | **(136.4)%** |
| Cash and cash equivalents at beginning of period | 159362 | 189703 | (16.0)% | 199766 | 336282 | (40.6)% |
| Effect of exchange rate changes and inflation on cash and cash equivalents **(e)** | (3289) | (1300) | 153.0% | (16302) | (6825) | 138.9% |
| **Cash and cash equivalents at end of year** | **230653** | **199766** | **15.5%** | **230653** | **199766** | **15.5%** |

---

(a) Includes (38,043) and (30,666) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for December 31, 2022 and 2021, respectively.

(b) Includes (83) and (4,694)of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for December 31, 2022 and 2021, respectively.

(c) Includes 77 and (1,109) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for December 31, 2022 and 2021, respectively.

(d) Includes 45,359 and 41,238 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for December 31, 2022 and 2021, respectively.

(e) Includes (7,233) and (5,878) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for December 31, 2022 and 2021, respectively.

------

![cover4q22.jpg](cover4q22.jpg)<br>

**Condensed Consolidated Statement of Financial Position**

---

| | | | |
|:---|:---|:---|:---|
| **STATEMENT OF FINANCIAL POSITION**<br>**$ thousands** |<br>**December 31, 2022** |<br>**December 31, 2021** |<br>**Chg %** |
| **ASSETS** | | | |
| **Non-Current Assets** | | | |
| Property, plant and equipment, net | 1565355 | 1422623 | 10.0% |
| Right of use assets | 360181 | 260776 | 38.1% |
| Investment property | 33330 | 32132 | 3.7% |
| Intangible assets, net | 36120 | 31337 | 15.3% |
| Biological assets | 30622 | 19355 | 58.2% |
| Deferred income tax assets | 8758 | 10321 | (15.1)% |
| Trade and other receivables, net | 44558 | 42231 | 5.5% |
| Derivative financial instruments | 5208 | 757 | 588.0% |
| Other assets | 1701 | 1071 | 58.8% |
| **Total Non-Current Assets** | **2085833** | **1820603** | **14.6%** |
| **Current Assets** |  |  |  |
| Biological assets | 235822 | 175823 | 34.1% |
| Inventories | 274022 | 239524 | 14.4% |
| Trade and other receivables, net | 183820 | 145849 | 26.0% |
| Derivative financial instruments | 134 | 828 | (83.8)% |
| Other assets |  | 8 | (100.0)% |
| Restricted short-term investments | 98571 |  | n . a |
| Cash and cash equivalents | 230653 | 199766 | 15.5% |
| **Total Current Assets** | **1023022** | **761798** | **34.3%** |
| **TOTAL ASSETS** | **3108855** | **2582401** | **20.4%** |
| **SHAREHOLDERS EQUITY** |  |  |  |
| **Capital and reserves attributable to equity holders of the parent** |  |  |  |
| Share capital | 167073 | 183573 | (9.0)% |
| Share premium | 793169 | 851060 | (6.8)% |
| Cumulative translation adjustment | (456029) | (514609) | (11.4)% |
| Equity-settled compensation | 18792 | 16073 | 16.9% |
| Cash flow hedge | (44872) | (60932) | (26.4)% |
| Other reserves | 126925 | 106172 | 19.5% |
| Treasury shares | (4792) | (16909) | (71.7)% |
| Revaluation surplus | 281909 | 289982 | (2.8)% |
| Reserve from the sale of non-controlling interests in subsidiaries | 41574 | 41574 | —% |
| Retained earnings | 202342 | 115735 | 74.8% |
| **Equity attributable to equity holders of the parent** | **1126091** | **1011719** | **11.3%** |
| Non-controlling interest | 37552 | 36111 | **4.0%** |
| **TOTAL SHAREHOLDERS EQUITY** | **1163643** | **1047830** | **11.1%** |
| **LIABILITIES** |  |  |  |
| **Non-Current Liabilities** |  |  |  |
| Trade and other payables | 17210 | 284 | 5,959.9% |
| Borrowings | 727983 | 705487 | 3.2% |
| Lease liabilities | 283549 | 201718 | 40.6% |
| Deferred income tax liabilities | 301414 | 265848 | 13.4% |
| Payroll and social liabilities | 1581 | 1243 | 27.2% |
| Derivatives financial instruments | 96 |  | —% |
| Provisions for other liabilities | 2526 | 2565 | (1.5)% |
| **Total Non-Current Liabilities** | **1334359** | **1177145** | **13.4%** |
| **Current Liabilities** |  |  |  |
| Trade and other payables | 242397 | 168746 | 43.6% |
| Current income tax liabilities | 422 | 1625 | (74.0)% |
| Payroll and social liabilities | 29964 | 25051 | 19.6% |
| Borrowings | 279769 | 112164 | 149.4% |
| Lease liabilities | 54431 | 45136 | 20.6% |
| Derivative financial instruments | 2961 | 1283 | 130.8% |
| Provisions for other liabilities | 909 | 3421 | (73.4)% |
| **Total Current Liabilities** | **610853** | **357426** | **70.9%** |
| **TOTAL LIABILITIES** | **1945212** | **1534571** | **26.8%** |
| **TOTAL SHAREHOLDERS EQUITY AND LIABILITIES** | **3108855** | **2582401** | **20.4%** |

---

## Exhibit 99.2

**Adecoagro S.A.**

**Consolidated Financial Statements as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020** 

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![logopwc.jpg](logopwc.jpg)

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Shareholders of Adecoagro S.A.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated statements of financial position of Adecoagro S.A. and its subsidiaries (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

***Critical Audit Matters***

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Valuation of Level 3 Biological Assets*

As described in Notes 16, 32 (b) and 33.11 to the consolidated financial statements, the total aggregated fair value of the Company's level 3 biological assets related to sown land – crops, sown land – rice and sown land – sugarcane was US$228 million as of December 31, 2022. The fair value of these level 3 biological assets is determined by management using a discounted cash flow model which requires the input of highly subjective assumptions including significant unobservable inputs. The discounted cash flow model included significant

Price Waterhouse & Co. S.R.L., Bouchard 557, 8th floor, C1106ABG - City of Buenos Aires

T: +(54.11) 4850.0000, www.pwc.com/ar

<br>© 2023 Price Waterhouse & Co. S.R.L. All rights reserved. Price Waterhouse & Co. S.R.L. is a member firm of the global network of PricewaterhouseCoopers International Limited (PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm.

------

![logopwc.jpg](logopwc.jpg)

judgements and assumptions relating to management's cash flow projections including future market prices, estimated yields at the point of harvest, estimated production cycle, future costs of harvesting and other costs and estimated discount rate.

The principal considerations for our determination that performing procedures relating to the valuation of the level 3 biological assets related to sown land – crops, sown land – rice and sown land – sugarcane is a critical audit matter are (i) the significant judgment by management when developing the fair value measurement; (ii) a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating management's cash flow projections and significant assumptions related to future market prices, estimated yields at the point of harvest, estimated production cycle, future costs of harvesting and other costs and estimated discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of the level 3 biological assets related to sown land – crops, sown land – rice and sown land – sugarcane. These procedures also included, among others evaluating the significant assumptions and methods used by management in developing the fair value measurement including future market prices, estimated yields at the point of harvest, estimated production cycle, future costs of harvesting and other costs and estimated discount rate. Evaluating management's assumptions involved evaluating whether these assumptions were reasonable considering the consistency with external information and past records and testing management's sensitivity analysis of certain significant assumptions. Professionals with specialized skill and knowledge were used to assist in the evaluation of certain significant assumptions, including estimated yields at the point of harvest and estimated production cycle.

*Property, Plant and Equipment and Goodwill Impairment Assessment- Cash Generating Units with Allocated Goodwill in Brazil*

As described in Notes 12, 15, 32 (a) and 33.10 to the consolidated financial statements, the Company's total consolidated property, plant and equipment and goodwill balances as of December 31, 2022 were US$1,565.3 million and US$18.5 million, respectively. The total property, plant and equipment and goodwill balances allocated to the cash generating units with allocated goodwill in Brazil were US$534 million and US$4.2 million, respectively. The Company conducts an impairment test as of September 30 of each year, or more frequently if events or changes in circumstances indicate that the carrying value of the asset or cash generating unit may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the asset or cash generating unit exceeds its recoverable amount. The recoverable amounts are estimated for individual assets or, where an individual asset does not generate cash flows independently, the recoverable amount is estimated for the cash generating unit to which the asset belongs. The recoverable amount of the asset or the cash generating unit is the higher of the fair value less costs to sell and value in use. The recoverable amount of cash generating units with allocated goodwill in Brazil was determined based on value in use calculations. The determination of the value in use calculation required the use of significant estimates and assumptions related to management's cash flow projections, including yield average growth rates, future pricing increases, future cost decreases, discount rates and perpetuity growth rate.

The principal considerations for our determination that performing procedures relating to the impairment assessment of property, plant and equipment and goodwill associated with the cash generating units with allocated goodwill in Brazil is a critical audit matter are (i) the significant judgment by management when developing the value in use calculation of these cash generating units; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's cash flow projections and significant assumptions related to yield average growth rates, future pricing increases, future cost decrease, discount rates and perpetuity growth rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of

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![logopwc.jpg](logopwc.jpg)

controls relating to management's impairment assessment of property, plant and equipment and goodwill associated with the cash generating units with allocated goodwill in Brazil, including controls over the valuation of the Company's cash generating units. These procedures also included, among others (i) testing management's process for developing the estimate; (ii) evaluating the appropriateness of the discounted cash flow model; (iii) testing the completeness and accuracy of underlying data used in the model; and (iv) evaluating the reasonableness of the significant assumptions used by management related to yield average growth rates, future pricing increases, future cost decrease, discount rates and perpetuity growth rate. Evaluating management's assumptions related to yield average growth rates, future pricing increases, future cost decrease, discount rates and perpetuity growth rate involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the cash generating units; (ii) the consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the Company's discounted cash flow model and the discount rate assumptions.

/s/ PRICE WATERHOUSE & CO. S.R.L.

/s/ <u>Eduardo Alfredo Loiácono</u> <u>(Partner)</u>

Eduardo Alfredo Loiácono

Buenos Aires, Argentina.

March 7, 2023.

We have served as the Company's auditor since 2008.

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**Legal information**

**Name as specified in charter:** Adecoagro S.A.

**Legal address:** Vertigo Naos Building, 6, Rue Eugène Ruppert, L-2453, Luxembourg

**Company activity:** Agricultural and agro-industrial

**Date of registration:** June 11, 2010

**Expiration of company charter:** No term defined

**Number of register (RCS Luxembourg):** B153.681

**Issued Capital Stock**: 111,381,815 common shares

**Outstanding Capital stock:** 108,191,218 common shares

**Treasury shares:** 3,190,597 common shares

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**Adecoagro S.A.**

**Consolidated Statements of Income**

**for the years ended December 31, 2022, 2021 and 2020** 

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Note | **2022** | **2021** | **2020** |
| Sales of goods and services rendered | 4 | 1347724 | 1124352 | 817764 |
| Cost of goods sold and services rendered | 5 | (1075747) | (854965) | (611946) |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 16 | 215941 | 227740 | 122729 |
| Changes in net realizable value of agricultural produce after harvest |  | (22293) | (12879) | 7005 |
| **Margin on manufacturing and agricultural activities before operating expenses** |  | **465625** | **484248** | **335552** |
| General and administrative expenses | 6 | (84287) | (69794) | (53428) |
| Selling expenses | 6 | (143515) | (117662) | (95058) |
| Other operating income / (expense), net | 8 | 1870 | (18768) | 1987 |
| Bargain purchase gain on acquisition | 21 | 10107 |  |  |
| **Profit from operations** |  | **249800** | **278024** | **189053** |
| Finance income | 9 | 25308 | 36670 | 26054 |
| Finance costs | 9 | (137600) | (151681) | (213776) |
| Other financial results - Net (loss) / gain of inflation effects on monetary items | 9 | (2144) | 11541 | 12064 |
| Financial results, net | 9 | **(114436)** | **(103470)** | **(175658)** |
| **Profit before income tax** |  | **135364** | **174554** | **13395** |
| Income tax (expense) | 10 | (26758) | (43837) | (12325) |
| **Profit for the year** |  | **108606** | **130717** | **1070** |
| **Attributable to:** |  |  |  |  |
| Equity holders of the parent |  | 108138 | 130669 | 412 |
| Non-controlling interest |  | 468 | 48 | 658 |
| **Earnings per share attributable to the equity holders of the parent during the year:** |  |  |  |  |
| Basic earnings per share | 11 | 0.982 | 1.135 | 0.003 |
| Diluted earnings per share | 11 | 0.979 | 1.130 | 0.003 |

---

The accompanying notes are an integral part of these consolidated financial statements.

F- 6

------

**Adecoagro S.A.**

**Consolidated Statements of Comprehensive Income**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Profit for the year | 108606 | 130717 | 1070 |
| **Other comprehensive income:** |  |  |  |
| **- Items that may be reclassified subsequently to profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Exchange differences on translation of foreign operations | 98741 | 121146 | (78961) |
| &nbsp;&nbsp;&nbsp;Cash flow hedge, net of income tax | 16060 | 29758 | (14386) |
| **- Items that will not be reclassified to profit or loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Revaluation surplus net of income tax (Note 12) | (46903) | (136622) | 29453 |
| **Other comprehensive income / (loss) for the year** | 67898 | 14282 | (63894) |
| **Total comprehensive income / (loss) for the year** | **176504** | **144999** | **(62824)** |
| **Attributable to:** |  |  |  |
| Equity holders of the parent | 174705 | 147273 | (63353) |
| Non-controlling interest | 1799 | (2274) | 529 |

---

The accompanying notes are an integral part of these consolidated financial statements.

F- 7

------

**Adecoagro S.A.**

**Consolidated Statements of Financial Position**

**as of December 31, 2022 and 2021** 

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | |
|:---|:---|:---|:---|
| | Note | **2022** | **2021** |
| **ASSETS** |  |  |  |
| **Non-Current Assets** |  |  |  |
| Property, plant and equipment, net | 12 | 1565355 | 1422623 |
| Right of use assets | 13 | 360181 | 260776 |
| Investment property | 14 | 33330 | 32132 |
| Intangible assets, net | 15 | 36120 | 31337 |
| Biological assets | 16 | 30622 | 19355 |
| Deferred income tax assets | 10 | 8758 | 10321 |
| Trade and other receivables, net | 18 | 44558 | 42231 |
| Derivative financial instruments | 17 | 5208 | 757 |
| Other assets |  | 1701 | 1071 |
| **Total Non-Current Assets** |  | **2085833** | **1820603** |
| **Current Assets** |  |  |  |
| Biological assets | 16 | 235822 | 175823 |
| Inventories | 19 | 274022 | 239524 |
| Trade and other receivables, net | 18 | 183820 | 145849 |
| Derivative financial instruments | 17 | 134 | 828 |
| Other assets |  |  | 8 |
| Restricted short-term investment | 17 | 98571 |  |
| Cash and cash equivalents | 20 | 230653 | 199766 |
| **Total Current Assets** |  | **1023022** | **761798** |
| **TOTAL ASSETS** |  | **3108855** | **2582401** |
| **SHAREHOLDERS EQUITY** |  |  |  |
| **Capital and reserves attributable to equity holders of the parent** |  |  |  |
| Share capital | 22 | 167073 | 183573 |
| Share premium | 22 | 793169 | 851060 |
| Cumulative translation adjustment |  | (456029) | (514609) |
| Equity-settled compensation |  | 18792 | 16073 |
| Cash flow hedge | 2 | (44872) | (60932) |
| Other reserves |  | 126925 | 106172 |
| Treasury shares |  | (4792) | (16909) |
| Revaluation surplus |  | 281909 | 289982 |
| Reserve from the sale of non-controlling interests in subsidiaries |  | 41574 | 41574 |
| Retained earnings |  | 202342 | 115735 |
| **Equity attributable to equity holders of the parent** |  | **1126091** | **1011719** |
| Non-controlling interest |  | 37552 | 36111 |
| **TOTAL SHAREHOLDERS EQUITY** |  | **1163643** | **1047830** |
| **LIABILITIES** |  |  |  |
| **Non-Current Liabilities** |  |  |  |
| Trade and other payables | 25 | 17210 | 284 |
| Borrowings | 26 | 727983 | 705487 |
| Lease liabilities | 27 | 283549 | 201718 |
| Deferred income tax liabilities | 10 | 301414 | 265848 |
| Payroll and social security liabilities | 28 | 1581 | 1243 |
| Derivatives financial instruments | 18 | 96 |  |
| Provisions for other liabilities | 29 | 2526 | 2565 |
| **Total Non-Current Liabilities** |  | **1334359** | **1177145** |
| **Current Liabilities** |  |  |  |
| Trade and other payables | 25 | 242397 | 168746 |
| Current income tax liabilities |  | 422 | 1625 |
| Payroll and social security liabilities | 28 | 29964 | 25051 |
| Borrowings | 26 | 279769 | 112164 |
| Lease liabilities | 27 | 54431 | 45136 |
| Derivative financial instruments | 17 | 2961 | 1283 |
| Provisions for other liabilities | 29 | 909 | 3421 |
| **Total Current Liabilities** |  | **610853** | **357426** |
| **TOTAL LIABILITIES** |  | **1945212** | **1534571** |
| **TOTAL SHAREHOLDERS EQUITY AND LIABILITIES** |  | **3108855** | **2582401** |

---

The accompanying notes are an integral part of these consolidated financial statements.

F- 8

------

**Adecoagro S.A.**

**Consolidated Statements of Changes in Shareholders' Equity**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | | |
| | **Share capital<br>(Note 22)** | **Share<br>premium<br>(Note 22)** | **Cumulative<br>translation<br>adjustment** | **Equity-settled<br>compensation** | **Cash flow hedge** | **Other Reserves** | **Treasury<br>shares** | **Revaluation surplus** | **Reserve from the sale of non-controlling<br>interests in subsidiaries** | **Retained<br>earnings** | **Subtotal** |<br>**Non-<br>controlling<br>interest** |<br>**Total<br>shareholders'<br>equity** |
| Balance at January 1, 2020 | 183573 | 901739 | (492374) | 15354 | (76303) | 66047 | (7946) | 337877 | 41574 | 18728 | 988269 | 40614 | 1028883 |
| Profit for the year |  |  |  |  |  |  |  |  |  | 412 | 412 | 658 | 1070 |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| –Items that may be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translating foreign operations |  |  | (62670) |  |  |  |  | (15173) |  |  | (77843) | (1118) | (78961) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge (\*) |  |  |  |  | (14386) |  |  |  |  |  | (14386) |  | (14386) |
| –Items that will not be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revaluation surplus (\*\*) |  |  |  |  |  |  |  | 28464 |  |  | 28464 | 989 | 29453 |
| Reserve of the revaluation surplus derived from the disposals of assets (\*\*\*) |  |  |  |  |  |  |  | (7598) |  | 7598 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income for the year |  |  | (62670) |  | (14386) |  |  | 5693 |  | 7598 | (63765) | (129) | (63894) |
| Total comprehensive income for the year |  |  | (62670) |  | (14386) |  |  | 5693 |  | 8010 | (63353) | 529 | (62824) |
| Reserves for the benefit of government grants (1) |  |  |  |  |  | 18067 |  |  |  | (18067) |  |  |  |
| Employee share options (Note 23) |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Exercised |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Forfeited |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Restricted shares (Note 23): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Value of employee services |  |  |  | 3266 |  |  |  |  |  |  | 3266 |  | 3266 |
| - Vested |  | 4182 |  | (3825) |  | 383 | 484 |  |  |  | 1224 |  | 1224 |
| - Forfeited |  |  |  |  |  | 36 | (36) |  |  |  |  |  |  |
| - Granted (\*\*\*) |  |  |  |  |  | (1127) | 1127 |  |  |  |  |  |  |
| Purchase of own shares (Note 22) |  | (3106) |  |  |  |  | (1259) |  |  |  | (4365) |  | (4365) |
| Dividends to non-controlling interest |  |  |  |  |  |  |  |  |  |  |  | (2460) | (2460) |
| **Balance at December 31, 2020** | **183573** | **902815** | **(555044)** | **14795** | **(90689)** | **83406** | **(7630)** | **343570** | **41574** | **8671** | **925041** | **38683** | **963724** |

---

(\*) Net of 5,729 of income tax.

(\*\*) Net of 11,790 of Income tax.

(\*\*\*) Net of 3,458 of Income tax

(1) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values in our Sugar, ethanol and energy business. (please see Note 24).

The accompanying notes are an integral part of these consolidated financial statements.

F- 9

------

**Adecoagro S.A.**

**Consolidated Statements of Changes in Shareholders' Equity**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | | |
| | **Share capital<br>(Note 22)** | **Share<br>premium<br>(Note 22)** | **Cumulative<br>translation<br>adjustment** | **Equity-settled<br>compensation** | **Cash flow<br>hedge** | **Other Reserves** | **Treasury<br>shares** | **Revaluation surplus** | **Reserve from the sale of non-controlling interests in subsidiaries** | **Retained<br>earnings** | **Subtotal** |<br>**Non-<br>controlling<br>interest** |<br>**Total<br>shareholders'<br>equity** |
| Balance at January 1, 2021 | 183573 | 902815 | (555044) | 14795 | (90689) | 83406 | (7630) | 343570 | 41574 | 8671 | 925041 | 38683 | 963724 |
| Profit for the year |  |  |  |  |  |  |  |  |  | 130669 | 130669 | 48 | 130717 |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| *–Items that may be reclassified subsequently to profit or loss:* |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translating foreign operations |  |  | 40435 |  |  |  |  | 71731 |  |  | 112166 | 8980 | 121146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge (\*) |  |  |  |  | 29757 |  |  |  |  |  | 29757 | 1 | 29758 |
| *–Items that will not be reclassified subsequently to profit or loss:* |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revaluation surplus (\*\*) |  |  |  |  |  |  |  | (125319) |  |  | (125319) | (11303) | (136622) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserve of the revaluation surplus derived from the disposals of assets (\*\*\*) |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive (loss) / income for the year |  |  | 40435 |  | 29757 |  |  | (53588) |  |  | 16604 | (2322) | 14282 |
| Total comprehensive income for the year |  |  | 40435 |  | 29757 |  |  | (53588) |  | 130669 | 147273 | (2274) | 144999 |
| Reserves for the benefit of government grants (1) |  |  |  |  |  | 23605 |  |  |  | (23605) |  |  |  |
| Employee share options (Note 23): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Forfeited |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Restricted shares and restricted units (Note 23): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Value of employee services |  |  |  | 5420 |  |  |  |  |  |  | 5420 |  | 5420 |
| - Vested |  | 3594 |  | (4142) |  | 734 | 262 |  |  |  | 448 |  | 448 |
| - Forfeited |  |  |  |  |  | 27 | (27) |  |  |  |  |  |  |
| - Granted |  |  |  |  |  | (1600) | 1600 |  |  |  |  |  |  |
| Purchase of own shares (Note 22) |  | (55349) |  |  |  |  | (11114) |  |  |  | (66463) |  | (66463) |
| Dividends to non-controlling interest |  |  |  |  |  |  |  |  |  |  |  | (298) | (298) |
| **Balance at December 31, 2021** | **183573** | **851060** | **(514609)** | **16073** | **(60932)** | **106172** | **(16909)** | **289982** | **41574** | **115735** | **1011719** | **36111** | **1047830** |

---

(\*) Net of 2,526 of Income tax.

(\*\*) Net of 9,953 of Income tax.

(1) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values in our Sugar, ethanol and energy business. (please see Note 24).

The accompanying notes are an integral part of these consolidated financial statements.

F- 10

------

**Adecoagro S.A.**

**Consolidated Statements of Changes in Shareholders' Equity**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | **Attributable to equity holders of the parent** | | |
| | **Share capital<br>(Note 22)** | **Share<br>premium<br>(Note 22)** | **Cumulative<br>translation<br>adjustment** | **Equity-settled<br>compensation** | **Cash flow<br>hedge** | **Other reserves** | **Treasury<br>shares** | **Revaluation surplus** | **Reserve from the sale of non-controlling interests in subsidiaries** | **Retained<br>earnings** | **Subtotal** |<br>**Non-<br>controlling<br>interest** |<br>**Total<br>shareholders'<br>equity** |
| Balance at January 1, 2022 | **183573** | **851060** | **(514609)** | **16073** | **(60932)** | **106172** | **(16909)** | **289982** | **41574** | **115735** | **1011719** | **36111** | **1047830** |
| Profit for the year |  |  |  |  |  |  |  |  |  | 108138 | 108138 | 468 | 108606 |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| -&nbsp;&nbsp;&nbsp;&nbsp;Items that may be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange differences on translating foreign operations |  |  | 58580 |  |  |  |  | 35367 |  |  | 93947 | 4794 | 98741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge (\*) |  |  |  |  | 16060 |  |  |  |  |  | 16060 |  | 16060 |
| -&nbsp;&nbsp;&nbsp;&nbsp;Items will not be reclassified to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revaluation surplus (\*\*) |  |  |  |  |  |  |  | (43440) |  |  | (43440) | (3463) | (46903) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income/ (loss) for the year |  |  | 58580 |  | 16060 |  |  | (8073) |  |  | 66567 | 1331 | 67898 |
| Total comprehensive income/ (loss) for the year |  |  | 58580 |  | 16060 |  |  | (8073) |  | 108138 | 174705 | 1799 | 176504 |
| Reduction of issued share capital of the company (Note 22): | (16500) |  |  |  |  |  | 16500 |  |  |  |  |  |  |
| Reserves for the benefit of government grants (1) |  |  |  |  |  | 21531 |  |  |  | (21531) |  |  |  |
| Employee share options (Note 23): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Exercised |  | 2432 |  | (778) |  |  | 470 |  |  |  | 2124 |  | 2124 |
| Restricted shares (Note 23): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| - Value of employee services |  |  |  | 7563 |  |  |  |  |  |  | 7563 |  | 7563 |
| - Vested |  | 4647 |  | (4066) |  | 1243 |  |  |  |  | 1824 |  | 1824 |
| - Forfeited |  |  |  |  |  | 85 | (85) |  |  |  |  |  |  |
| - Granted |  |  |  |  |  | (2106) | 2106 |  |  |  |  |  |  |
| Purchase of own shares (Note 22) |  | (29970) |  |  |  |  | (6874) |  |  |  | (36844) |  | (36844) |
| Dividends to shareholders (Note 22) |  | (35000) |  |  |  |  |  |  |  |  | (35000) |  | (35000) |
| Dividends to non-controlling interest |  |  |  |  |  |  |  |  |  |  |  | (358) | (358) |
| **Balance at December 31, 2022** | **167073** | **793169** | **(456029)** | **18792** | **(44872)** | **126925** | **(4792)** | **281909** | **41574** | **202342** | **1126091** | **37552** | **1163643** |

---

(\*) Net of 2,526 of Income tax.

(\*\*) Net of 25,307 of Income tax.

(1) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values in our Sugar, ethanol and energy business. (please see Note 24).

The accompanying notes are an integral part of these consolidated financial statements.

F- 11

------

**Adecoagro S.A.**

**Consolidated Statements of Cash Flows**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Note | **2022** | **2021** | **2020** |
| **Cash flows from operating activities:** |  |  |  |  |
| **Profit for the year** |  | 108606 | 130717 | 1070 |
| *Adjustments for:* |  |  |  |  |
| Income tax expense | 10 | 26758 | 43837 | 12325 |
| Depreciation | 12 | 188775 | 167297 | 140579 |
| Amortization | 15 | 2265 | 1631 | 1293 |
| Depreciation of right of use assets | 13 | 63339 | 49199 | 40820 |
| (Gain) / loss from the disposal of other property items | 8 | (3718) | 397 | (2198) |
| Gain from the sale of farmland and other assets | 8 |  |  | (2064) |
| (Gain) / loss from the sale of subsidiary |  |  | (10) | 554 |
| Bargain purchase gain on acquisition |  | (10107) |  |  |
| Net loss/(gain)from the fair value adjustment of Investment properties | 8 | 2961 | 4331 | (1077) |
| Equity settled share-based compensation granted | 7 | 10227 | 6406 | 4316 |
| Loss from derivative financial instruments and forwards | 8, 9 | 13685 | 17276 | 10058 |
| Interest, finance cost related to lease liabilities and other financial expense, net | 9 | 83130 | 75610 | 47686 |
| Initial recognition and changes in fair value of non-harvested biological assets (unrealized) |  | (44935) | (11310) | (32975) |
| Changes in net realizable value of agricultural produce after harvest (unrealized) |  | (72) | 4001 | 481 |
| Provision and allowances |  | 999 | 1146 | 1940 |
| Net loss / (gain) of inflation effects on the monetary items | 9 | 2144 | (11541) | (12064) |
| Foreign exchange (gains)/ losses, net | 9 | (19278) | (18939) | 109266 |
| Cash flow hedge – transfer from equity | 9 | 40195 | 52650 | 24363 |
| Subtotal |  | 464974 | 512698 | 344373 |
| **Changes in operating assets and liabilities:** |  |  |  |  |
| Increase in trade and other receivables |  | (60753) | (40449) | (55233) |
| Decrease / (increase) in inventories |  | 45437 | (102815) | (30165) |
| (Increase) / decrease in biological assets |  | (3686) | 7597 | (10290) |
| Increase in other assets |  | (1056) | (303) | (35) |
| (Increase) / Decrease in derivative financial instruments |  | (9661) | (29319) | 5234 |
| (Decrease) / Increase in trade and other payables |  | (64502) | (1499) | 828 |
| Increase in payroll and social security liabilities |  | 7681 | 4874 | 4120 |
| (Decrease) / increase in provisions for other liabilities |  | (290) | 74 | 380 |
| Net cash generated from operating activities before taxes paid |  | **378144** | **350858** | **259212** |
| Income tax paid |  | (8118) | (2196) | (2087) |
| **Net cash generated from operating activities** | **(a)** | **370026** | **348662** | **257125** |

---

The accompanying notes are an integral part of these consolidated financial statements.

F- 12

------

**Adecoagro S.A.**

**Consolidated Statements of Cash Flows (Continued)**

**for the years ended December 31, 2022, 2021 and 2020**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Note | **2022** | **2021** | **2020** |
| **Cash flows from investing activities:** |  |  |  |  |
| Acquisition of business, net of cash and cash equivalents acquired | 21 | 1120 |  |  |
| Purchases of property, plant and equipment | 12 | (217776) | (199295) | (168529) |
| Purchase of cattle and non-current biological assets | 16 | (9096) | (11776) | (7339) |
| Purchases of intangible assets | 15 | (3350) | (1934) | (1122) |
| Interest received and others | 9 | 5199 | 16729 | 25421 |
| Proceeds from disposal of other property items |  | 2770 | 2946 | 3482 |
| Proceeds from the sale of farmland and other assets | 21 | 9879 | 8099 | 16022 |
| Proceeds from the sale of subsidiary | 21 | 10000 | 10010 | 10149 |
| Acquisition of short-term investment | 17 | (98010) |  |  |
| **Net cash used in investing activities** | **(b)** | **(299264)** | **(175221)** | **(121916)** |
| **Cash flows from financing activities:** |  |  |  |  |
| Proceeds from long-term borrowings | 26 | 41082 | 30972 | 116015 |
| Payments of long-term borrowings | 26 | (14012) | (108425) | (34750) |
| Proceeds from short-term borrowings | 26 | 347928 | 286115 | 207217 |
| Payments of short-term borrowings | 26 | (192648) | (328463) | (233540) |
| Interest paid | **(c)** | (44788) | (53587) | (60026) |
| Borrowings prepayment related expenses |  |  | (3068) |  |
| Proceeds from exercise of employee share options |  | 2124 |  |  |
| Collections / (Payments) of derivatives financial instruments |  | 118 | 2370 | (1687) |
| Lease payments |  | (91175) | (62273) | (40336) |
| Purchase of own shares |  | (36844) | (66462) | (4365) |
| Dividends paid to non-controlling interest |  | (358) | (311) | (2447) |
| Dividends paid to shareholders |  | (35000) |  |  |
| **Net cash used from financing activities** | **(d)** | **(23573)** | **(303132)** | **(53919)** |
| **Net increase / (decrease) in cash and cash equivalents** |  | **47189** | **(129691)** | **81290** |
| Cash and cash equivalents at beginning of year | 20 | 199766 | 336282 | 290276 |
| Effect of exchange rate changes and inflation on cash and cash equivalents | **(e)** | (16302) | (6825) | (35284) |
| **Cash and cash equivalents at end of year** | 20 | **230653** | **199766** | **336282** |

---

(a) Includes (38,043), (30,666) and (14,956) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2022, 2021 and 2020, respectively.

(b) Includes (83), (4,694) and (429) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2022, 2021 and 2020, respectively.

(c) Includes 77, (1,109) and (1,639) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2022, 2021 and 2020, respectively.

(d) Includes 45,359, 41,238 and 15,694 of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2022, 2021 and 2020, respectively.

(e) Includes (7,233), (5,878) and (309) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2022, 2021 and 2020, respectively.

For non-cash transactions, see Note 13 for Right of Use Assets and related to acquisition of subsidiaries, see Note 21.

The accompanying notes are an integral part of these consolidated financial statements.

F- 13

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**1.&nbsp;&nbsp;&nbsp;&nbsp;General information**

Adecoagro S.A. (the "Company" or "Adecoagro") is the Group's ultimate parent company and is a société anonyme (stock corporation) organized under the laws of the Grand Duchy of Luxembourg. Adecoagro is a holding company primarily engaged through its operating subsidiaries in agricultural and agro-industrial activities. The Company and its operating subsidiaries are collectively referred to hereinafter as the "Group." The Group's activities are carried out through three major lines of business, namely, Farming; Sugar, Ethanol and Energy and Land Transformation. The Farming line of business is further comprised of three reportable segments, which are described in detail in Note 3 to these Consolidated Financial Statements.

Adecoagro is a Public Company listed in the New York Stock Exchange (NYSE) as a foreign registered company under the ticker symbol of AGRO.

These Consolidated Financial Statements have been approved for issue by the Board of Directors on March 7, 2023.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management**

**Risk management principles and processes**

The Group's activities are exposed to a variety of financial risks. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize the Group's capital costs by using suitable means of financing and to manage and control the Group's financial risks effectively. The Group uses financial instruments to hedge certain risk exposures.

The Group's approach to the identification, assessment and mitigation of risk is carried out by a Risk and Commercial Committee, which focuses on timely and appropriate risk management.

The principal financial risks are related to raw material price, end-product price, exchange rate, interest rate, liquidity and credit risk. This section provides a description of the principal risks and uncertainties that could have a material adverse effect on the Group's strategy, performance, results of operations and financial condition. These risks do not appear in any particular order of materiality or probability of occurrence.

*Argentina status:*

Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the U.S. dollars, to make payments abroad, either for foreign debt or the importation of goods or services, dividend payments and others, without prior authorization. Other restrictions also comprise the deferral of payment of certain public debt instruments and fuel price controls. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government's perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce is the official exchange rate, which as of December 31, 2022 was Pesos 177 per dollar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Exchange rate risk**

The Group's cash flows, statement of income and statement of financial position are presented in U.S. Dollars and may be affected by fluctuations in exchange rates. Currency risks, as defined by IFRS 7, arise on account of monetary assets and liabilities being denominated in a currency that is not the functional currency.

A significant majority of the Group's business activities is conducted in the functional currencies of the respective subsidiaries (primarily the Brazilian Reais and the Argentine Peso). However, the Group may transact in currencies other than the respective functional currencies, mainly the U.S. Dollar. As such, these subsidiaries may hold U.S. Dollar denominated monetary balances at each year-end as indicated in the tables below.

F- 14

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

The Group's net financial position exposure to the U.S. Dollar is managed on a case-by-case basis, partly by hedging certain expected cash flows with foreign exchange derivative contracts.

The following tables show the net monetary position of the respective subsidiaries within the Group categorized by functional currency. Non-U.S. Dollar amounts are presented in U.S. Dollars for purpose of these tables.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Net monetary position<br>(Liability)/ Asset** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| Argentine Peso | (217659) |  |  |  | **(217659)** |
| Brazilian Reais |  | (481232) |  |  | **(481232)** |
| U.S. Dollar | (179319) | (290366) | 22810 | 26745 | **(420130)** |
| Uruguayan Peso |  |  | (2167) |  | **(2167)** |
| **Total** | **(396978)** | **(771598)** | **20643** | **26745** | **(1121188)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Net monetary position<br>(Liability)/ Asset** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| Argentine Peso | (33002) |  |  |  | **(33002)** |
| Brazilian Reais |  | (396288) |  |  | **(396288)** |
| U.S. Dollar | (267448) | (270213) | 21773 | 30490 | **(485398)** |
| Uruguayan Peso |  |  | (1837) |  | **(1837)** |
| **Total** | **(300450)** | **(666501)** | **19936** | **30490** | **(916525)** |

---

The Group's analysis shown on the tables below is carried out based on the exposure of each functional currency subsidiary against the U.S. Dollar. The Group estimated that, other factors being constant, a hypothetical 10% appreciation/(depreciation) of the U.S. Dollar against the respective functional currencies for the years ended December 31, 2022 and 2021 would have (decreased)/increased the Group's **Profit before income tax** for the year. A portion of this effect would have been recognized as other comprehensive income since a portion of the Company's borrowings was used as cash flow hedge of the foreign exchange rate risk of a portion of its highly probable future sales in U.S. Dollars (see Hedge Accounting - Cash Flow Hedge below for details).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Functional currency** | **Functional currency** | **Functional currency** | **Functional currency** |
| **Net monetary position** | **Net monetary position** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **Total** |
| 2022 | U.S. Dollar | (17932) | (29037) | 2281 | **(44688)** |
| 2021 | U.S. Dollar | (26745) | (27021) | 2177 | **(51589)** |

---

The tables above only consider the effect of a hypothetical appreciation / depreciation of the U.S. Dollars on the Group's net financial position. A hypothetical appreciation / depreciation of the U.S. Dollar against the functional currencies of the Group's subsidiaries has historically had a positive / negative effect, respectively, on the fair value of the Group's biological assets and the end prices of the Group's agriculture produce, both of which are generally linked to the U.S. Dollar.

F- 15

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

**Hedge Accounting Cash Flow Hedge**

The Group formally documents and designates cash flow hedging relationships to hedge the foreign exchange rate risk of a portion of its highly probable future sales in U.S. Dollars using a portion of its borrowings denominated in U.S. Dollars, currency forwards and foreign currency floating-to-fixed interest rate swaps, as needed.

Generally, the principal amounts of long-term borrowings (non-derivative financial instruments) and notional values of foreign currency forward contracts (derivative financial instruments) are designated as hedging instruments. These instruments are exposed to foreign currency risks, mainly Brazilian Reais/ U.S. Dollar related to operations in Brazil and Argentine Peso/U.S. Dollar in Argentina related to operations in Argentina. As of December 31, 2022, and 2021, approximately 10% of projected sales within those countries qualify as highly probable forecast transactions for hedge accounting purposes and are designated as hedged items.

The Group prepares formal documentation to support hedge designation, including an explanation of how the designation of the hedging relationship is aligned with the Group's Risk Management Policy, identification of the hedging instrument, the hedged transactions, the nature of the risk being hedged and an analysis which demonstrates that the hedge is expected to be highly effective. The Group reassesses the prospective and retrospective effectiveness of the hedge on an ongoing basis comparing the foreign currency component of the carrying amount of the hedging instruments and of the highly probable future sales.

Under cash flow hedge accounting, the effect of changes in foreign currency exchange rates on derivative and non-derivative hedging instruments are not immediately recognized in profit or loss but are reclassified from equity to profit or loss in the periods when the future sales occur, thus allowing for a more appropriate presentation of the results for the period reflecting the strategy in the Group's Risk Management Policy.

Currently, based on the Group's plans, it is expected that the cash flows will occur and affect profit or loss between 2023 and 2027.

For the year ended December 31, 2022, a pre-tax loss of US$15,621 (US$10,565 pre-tax loss in 2021 and US$46,145 loss in 2020) was recognized in other comprehensive income and an amount of US$41,371 loss (US$54,650 loss in 2021 and US$26,031 loss in 2020) was reclassified from equity to profit or loss within "Financial results, net".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Raw material price risk**

Inflation in the costs of raw materials and goods and services from industry suppliers and manufacturers presents risks to project economics. A significant portion of the Group's cost structure includes the cost of raw materials primarily seeds, fertilizers and agrochemicals, among others. Prices for these raw materials may vary significantly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• End-product price risk**

Prices for commodity products have historically been cyclical, reflecting overall economic conditions and changes in capacity within the industry, which affect the profitability of entities engaged in the agribusiness industry. The Group combines different actions to minimize price risk. A percentage of crops are to be sold during and post-harvest period. The Group manages minimum and maximum prices for each commodity as well as gross margin per each crop as to decide when and how to sell. End-product price risks are hedged if economically viable and possible by entering into forward contracts with major trading houses or by using derivative financial instruments, consisting mainly of crops and sugar future contracts, but also includes occasionally put and call options. A movement in end-product futures prices would result in a change in the fair value of the end product hedging contracts. These fair value changes, after taxes, are recorded in the consolidated statement of income.

F- 16

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

Contract positions are designed to ensure that the Group would receive a defined minimum price for certain quantities of its production. The counterparties to these instruments generally are major financial institutions. In entering into these contracts, the Group has assumed the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The Group does not expect any material losses as a result of counterparty defaults. The Group is also obliged to pay margin deposits and premiums for these instruments. These estimates represent only the sensitivity of the financial instruments to market risk and not the Group exposure to end product price risks as a whole, since the crops and cattle products sales are not financial instruments within the scope of IFRS 7 disclosure requirements.

**Liquidity risk**

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature, and that borrowing facilities are not available to meet cash requirements. Failure to manage liquidity risks could have a material impact on the Group's cash flow and statement of financial position.

Prudent liquidity risk management includes managing the profile of debt maturities and funding sources close oversight of cash flows projections, maintaining sufficient cash, and ensuring the availability of funding from an adequate amount of committed credit facilities and the ability to close out market positions. The Group's ability to fund its existing and prospective debt requirements is managed by maintaining diversified funding sources with adequate available funding lines from high quality lenders; and reaching to have long-term financial facilities.

As of December 31, 2022, cash and cash equivalents of the Group totaled US$230.7 million, which are available for use.

The tables below analyzes the Group's non-derivative financial liabilities and derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows and as a result they do not reconcile to the amounts disclosed on the statement of financial position except for short-term payables where discounting is not applied.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At December 31, 2022** | **Less than<br>1 year** | **Between<br>1 and 2 years** | **Between 2<br>and 5 years** | **Over<br>5 Years** | **Total** |
| Trade and other payables | 197780 | 16843 | 31 | 336 | 214990 |
| Borrowings | 322923 | 103844 | 772634 | 383 | 1199784 |
| Leases Liabilities | 67181 | 80986 | 168565 | 185910 | 502642 |
| Derivative financial instruments | 2961 | 96 |  |  | 3057 |
| **Total** | **590845** | **201769** | **941230** | **186629** | **1920473** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At December 31, 2021** | **Less than<br>1 year** | **Between<br>1 and 2 years** | **Between 2<br>and 5 years** | **Over<br>5 Years** | **Total** |
| Trade and other payables | 153175 | 15 | 22 | 247 | 153459 |
| Borrowings | 153311 | 57849 | 245538 | 577178 | 1033876 |
| Leases Liabilities | 53384 | 53172 | 122625 | 123180 | 352361 |
| Derivative financial instruments | 1283 |  |  |  | 1283 |
| **Total** | **361153** | **111036** | **368185** | **700605** | **1540979** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Interest rate risk**

The Group's interest rate risk arises from long-term borrowings at floating rates, which expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The interest rate profile of the Group's borrowings is set out in Note 26.

F- 17

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

The Group occasionally manages its cash flow interest rate risk exposure by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates.

The following tables show a breakdown of the Group's fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary debt holder. These analyses are performed after giving effect to interest rate swaps.

The analysis for the year ended December 31, 2022 and 2021 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Rate per currency denomination** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| **Fixed rate:** |  |  |  |  |  |
| Argentine Peso | 195982 |  |  |  | 195982 |
| Brazilian Reais |  | 4476 |  |  | 4476 |
| U.S. Dollar | 62051 | 388350 |  | 149884 | 600285 |
| **Subtotal fixed-rate borrowings** | **258033** | **392826** | **—** | **149884** | **800743** |
| **Variable rate:** |  |  |  |  |  |
| Brazilian Reais |  | 188801 |  |  | 188801 |
| U.S. Dollar | 18096 | 112 |  |  | 18208 |
| **Subtotal variable-rate borrowings** | **18096** | **188913** | **—** | **—** | **207009** |
| **Total borrowings as per statement of financial position** | **276129** | **581739** | **—** | **149884** | **1007752** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Rate per currency denomination** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| **Fixed rate:** |  |  |  |  |  |
| Argentine Peso | 11769 |  |  |  | 11769 |
| Brazilian Reais |  | 10887 |  |  | 10887 |
| U.S. Dollar | 96456 | 342522 |  | 165173 | 604151 |
| **Subtotal fixed-rate borrowings** | **108225** | **353409** | **—** | **165173** | **626807** |
| **Variable rate:** |  |  |  |  |  |
| Brazilian Reais |  | 169597 |  |  | 169597 |
| U.S. Dollar | 19793 | 1454 |  |  | 21247 |
| **Subtotal variable-rate borrowings** | **19793** | **171051** | **—** | **—** | **190844** |
| **Total borrowings as per statement of financial position** | **128018** | **524460** | **—** | **165173** | **817651** |

---

For the years ended December 31, 2022 and 2021, if interest rates on floating-rate borrowings had been 1% higher with all other variables held constant, the Group's **Profit before income tax** for the years would have decreased as shown below. A 1% decrease in interest rates would have an equal and opposite effect on the income statement.

F- 18

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Rate per currency denomination** | **Argentine<br>Peso** | **Brazilian<br>Reais** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| **Variable rate:** |  |  |  |  |  |
| Brazilian Reais |  | (1888) |  |  | (1888) |
| U.S. Dollar | (181) | (1) |  |  | (182) |
| **Total effects on profit before income tax** | **(181)** | **(1889)** | **—** | **—** | **(2070)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** | **Subsidiaries' functional currency** |
|<br>**Rate per currency denomination** | **Argentine<br>Peso** | **Brazilian<br>Reias** | **Uruguayan<br>Peso** | **U.S. Dollar** | **Total** |
| **Variable rate:** |  |  |  |  |  |
| Brazilian Reais |  | (1696) |  |  | (1696) |
| U.S. Dollar | (198) | (15) |  |  | (213) |
| **Total effects on profit before income tax** | **(198)** | **(1711)** | **—** | **—** | **(1909)** |

---

The sensitivity analysis has been determined assuming that the change in interest rates had occurred at the date of the statement of financial position and had been applied to the exposure to interest rate risk for financial instruments in existence at that date. The 100 basis point increase or decrease represents management's assessment of a reasonable possible change in those interest rates, which have the most impact on the Group, specifically the United States and Brazilian rates over the period until the next annual statement of financial position date.

The London Interbank Offered Rate (LIBOR) was the most widely used interest rate benchmark in the world. It was announced in March 2021 that the permanent cessation of LIBOR publication for all currencies would be finalized. Specifically, it was made public that U.S. dollar (USD) LIBOR, the most widely used LIBOR, would be ceased at the end of June 2023.

The Group has exposure only to one existing legacy LIBOR-based contracts in the amount of US$18.6 million.

The Group is currently negotiating with its contractual counterparts a replacement of the LIBOR-related contracts. Although the negotiations are not finalized yet, the Group expects that it will obtain similar interest rates as replacements. However, there can be no assurance that all negotiations will be favorable to the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Credit risk**

The Group's exposure to credit risk mainly arise from the potential non-performance of contractual obligations by the parties, in relation to amounts owed for physical product sales, the use of derivative instruments, and the investment of surplus cash balances. The Group is also exposed to political and economic risk events, which may cause non-payment of foreign currency obligations to the Group.

The Group's policy is to manage credit exposure to trading counterparties within defined trading limits. All of the Group's significant counterparties are assigned internal credit limits.

The Group regularly sells to a large base of customers. The type and class of customers may differ depending on the Group's business segments. For the years ended December 31, 2022 and 2021, more than 71% and 73%, respectively, of the Group's sales of crops were sold to 34 and 27 well-known customers (both multinational and local) with a good credit history with the Group. In the rice segment 74% and 68% of sales were sold to 79 and 28 well-known customers for the years ended December 31, 2022 and 2021, respectively. In the Sugar, Ethanol and Energy segment, sales of ethanol were concentrated in 66

F- 19

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

and 39 customers, which represented 100% of total sales of ethanol for the years ended December 31, 2022 and 2021, respectively. Approximately 100% and 86% of the Group's sales of sugar were concentrated in 158 and 124 well-known traders for the years ended December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021, 94% and 95% of energy sales were concentrated in 59 and 72 major customers, respectively. In the dairy segment, 62% and 67% of the sales were concentrated in 53 and 18 well-known customers for the years ended December 31, 2022 and 2021, respectively.

No credit limits were exceeded during the reporting periods and management does not expect any losses from non-performance by these counterparties. If any of the Group's customers are independently rated, these ratings are used. Otherwise, the Group assesses the credit quality of the customer taking into account its financial position, past experience and other factors (see Note 17 for details). The Group may seek cash collateral, letter of credit or parent company guarantees, as considered appropriate. Sales to customers are primarily made by credit with customary payment terms. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position after deducting any impairment allowance. The Group's exposure of credit risk arising from trade receivables is set out in Note 18.

The Group is exposed to counterparty credit risk on cash and cash equivalent balances. The Group holds cash on deposit with a number of financial institutions. The Group manages its credit risk exposure by limiting individual deposits to clearly defined limits. The Group only deposits with high quality banks and financial institutions. As of December 31, 2022 and 2021, the total amount of cash and cash equivalents mainly comprise cash in banks and short-term bank deposits. The Group is authorized to transact with banks rated "BBB+" or higher. As of both December 31, 2022 and 2021, 4 banks (primarily JP Morgan, Banco do Brasil, Credit Agricole and Banco Itaú) accounted for more than 86% and 81%, respectively, of the total cash deposited. The remaining amount of cash and cash equivalents relates to cash in hand. Additionally, during the year ended December 31, 2022, the Group invested in fixed-term bank deposits with mainly two banks (FCI and ING), treasury bills and also entered into derivative contracts (currency forward). The Group's exposure of credit risk arising from cash and cash equivalents is set out in Note 20.

The Group's primary objective for holding derivative financial instruments is to manage currency exchange rate risk, interest rate risk and commodity price risk. The Group generally enters into derivative transactions with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to any one counterparty based on an analysis of that counterparty's relative credit standing. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which counterparty's obligations exceed the obligations with that counterparty.

The Group also entered into crop commodity futures traded in the established trading markets of Argentina and Brazil through well-rated brokers. Management does not expect any counterparty to fail to meet its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Capital risk management**

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, it may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or buy own shares or sell assets to reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as total debt (including current and non-current borrowings as shown in the consolidated statement of financial position, if applicable) divided by total capital. Total capital is calculated as equity, as shown in the consolidated statement of financial position, plus total borrowings. During the year ended December 31, 2022, the strategy was to maintain the gearing ratio within 0.40 to 0.60, as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Total borrowings | 1007752 | 817651 |
| Total equity | 1163643 | 1047830 |
| Total capital | 2171395 | 1865481 |
| **Gearing ratio** | **0.46** | **0.44** |

---

F- 20

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Derivative financial instruments**

As part of its business operations, the Group may uses a variety of derivative financial instruments to manage its exposure to the financial risks discussed above. As part of its strategy, the Group may enter into derivatives of (i) interest rate to manage the composition of floating and fixed rate debt; (ii) currency to manage exchange rate risk, and (iii) crop (future contracts and put and call options) to manage its exposure to price volatility stemming from its integrated crop production activities. The Group's policy is not to use derivatives for speculative purposes.

Derivative financial instruments involve, to a varying degree, elements of market and credit risk not recognized in the financial statements. The market risk associated with these instruments resulting from price movements is expected to offset the market risk of the underlying transactions, assets and liabilities, being hedged. The counterparties to the agreements relating to the Group's contracts generally are large institutions with credit ratings equal to or higher than BBB+. The Group continually monitors the credit rating of such counterparties and seeks to limit its financial exposure to any one financial institution. While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of the Group's exposure to credit risk. The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties' obligations under the contracts exceed the Group's obligations to the counterparties.

The following tables show the outstanding positions for each type of derivative contract as of the date of each statement of financial position:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Futures / options**

As of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** |
|<br>**Type of<br>derivative contract** | **Quantities<br>(thousands)<br>(\*\*)** | **Notional<br>amount** | **Fair<br>Value Asset/<br>(Liability)** | **(Loss)/Gain<br>(\*)** |
| **Futures:** |  |  |  |  |
| ***Sale*** |  |  |  |  |
| Corn | 5 | 992 | (193) | (193) |
| Soybean | 34 | 12696 | (1081) | (1085) |
| Wheat | 9 | 2956 | 111 | 115 |
| Sugar | 99 | 3437 | (1526) | (1778) |
| **Total** | **147** | **20081** | **(2689)** | **(2941)** |

---

As of December 31, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** |
|<br>**Type of<br>derivative contract** | **Quantities<br>(thousands)<br>(\*\*)** | **Notional<br>amount** | **Fair<br>Value Asset/<br>(Liability)** | **(Loss)/Gain<br>(\*)** |
| **Futures:** |  |  |  |  |
| ***Sale*** |  |  |  |  |
| Corn | 6 | 935 | 157 | 157 |
| Soybean | 55 | 17782 | (1283) | (1283) |
| Sugar | 87 | 35922 | 671 | 292 |
| **Total** | **148** | **54639** | **(455)** | **(834)** |

---

(\*) Included in the line item "(loss) / gain from commodity derivative financial instruments" of Note 8.

(\*\*) All quantities expressed either in tons or cubic meters, as applicable.

Commodity future contract fair values are computed with reference to quoted market prices on future exchanges.

F- 21

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**2.&nbsp;&nbsp;&nbsp;&nbsp;Financial risk management (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**▪ Floating-to-fixed interest rate swaps**

In April 2022, one of the Group's subsidiaries in Brazil, Usina Monte Alegre ("UMA") entered into a R$20 million loan with Itaú BBA. The loan bears interest at a fixed rate of 13,23% p.a. Concurrently, UMA entered into a swap agreement, to effectively convert the fixed-interest-rate loan into a variable-interest-rate loan denominated in CDI (an interbank floating interest rate in Reais), plus a fixed rate of 1,29%. The swap matures on March 24, 2024, mirroring the loan's maturity date, and resulted in a recognition of a loss of US$90 thousand in 2022.

In December 2020, one of the Group's subsidiaries in Brazil, Adecoagro Vale do Ivinhema entered into an interest rate swap agreement with Itaú BBA for an aggregate amount of US$400 million. Pursuant to this agreement, Adecoagro Vale do Ivinhema receives IPCA (Extended National Consumer Price Index) plus 4.24% per year and pays CDI (an interbank floating interest rate in Reais) plus 1.85% per year. This swap agreement expires semiannually until December, 2026. This agreement resulted in a recognition of a loss of US$2.2 million in 2022 and a gain of US$2.1 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ **Currency forward**

During the year ended December 31, 2022 the Group entered into several currency forward contracts with Brazilian banks, in order to hedge the fluctuation of the Brazilian Reais against the U.S. Dollar, for a total aggregate amount of US$4 million. It resulted in the recognition of non-significant gain or losses in 2022.

Also, the Group entered into several currency forward contracts to hedge the fluctuation of the U.S. Dollar against the Euro for a total notional amount of US$2.2 million. The currency forward contracts maturity date is March 2023. The outstanding contracts resulted in the recognition of a loss amounting to US$0.16 million in 2022. (2021:nil)

Gains and losses on currency forward contracts are included within "Financial results, net" in the statement of income.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information**

According to IFRS 8, operating segments are identified based on the 'management approach'. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The Group's CODM is the Management Committee. IFRS 8 stipulates external segment reporting based on the Group's internal organizational and management structure and on internal financial reporting to the chief operating decision maker.

The Group operates in three major lines of business, namely, Farming; Sugar, Ethanol and Energy; and Land Transformation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The 'Farming' is further comprised of three reportable segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Crops' Segment which consists of planting, harvesting and sale of grains, oilseeds and fibers (including wheat, corn, soybeans, peanuts, cotton and sunflowers, among others), and to a lesser extent the provision of grain warehousing/conditioning and handling and drying services to third parties. Each underlying crop in this segment does not represent a separate operating segment. Management seeks to maximize the use of the land through the cultivation of one or more type of crops. Types and surface amount of crops cultivated may vary from harvest year to harvest year depending on several factors, some of them out of the Group's control. Management is focused on the long-term performance of the productive land, and to that extent, the performance is assessed considering the aggregated combination, if any, of crops planted in the land. A single manager is responsible for the management of operating activity of all crops rather than for each individual crop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Rice' Segment which consists of planting, harvesting, processing and marketing of rice.

F- 22

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Dairy' Segment which consists of the production and sale of raw milk and industrialized products, including UHT, cheese and powder milk among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'All Other Segments' which consists of the aggregation of the remaining non-reportable operating segments, which do not meet the quantitative thresholds for disclosure, namely, Coffee and Cattle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Sugar, Ethanol and Energy' Segment which consists of cultivating sugarcane which is processed in owned sugar mills, transformed into ethanol, sugar and electricity and then marketed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Land Transformation' Segment comprises the (i) identification and acquisition of underdeveloped and undermanaged farmland businesses; and (ii) realization of value through the strategic disposition of assets (generating profits).

Total segment assets and liabilities are measured in a manner consistent with that of the Consolidated Financial Statements. These assets and liabilities are allocated based on the operations of the segment and the physical location of the asset.

Effective July 1, 2018, the Group applied IAS 29 "Financial Reporting in Hyperinflationary Economies" ("IAS 29") to its operations in Argentina. IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of entities whose functional currency is that of a hyperinflationary economy be adjusted for the effects of changes in the general price index and be expressed in terms of the current unit of measurement at the closing date of the reporting period ("inflation accounting"). In order to determine whether an economy is classified as hyperinflationary, IAS 29 sets forth a series of factors to be considered, including whether the amount of cumulative inflation nears or exceeds a threshold of 100 % accumulated in three years. Argentina has been classified as a hyperinflationary economy under the terms of IAS 29 from July 1, 2018. (Please see Note 33 - Basis of preparation and presentations).

According to IAS 29, all Argentine Peso-denominated non-monetary items in the statement of financial position are adjusted by applying a general price index from the date they were initially recognized to the end of the reporting period. Likewise, all Argentine Peso-denominated items in the statement of income should be expressed in terms of the measuring unit current at the end of the reporting period, consequently, income statement items are adjusted by applying a general price index on a monthly basis from the dates they were initially recognized in the financial statements to the end of the reporting period. This process is called "re-measurement".

Once the re-measurement process is completed, all Argentine Peso denominated accounts are translated into U.S. Dollars, the Group's reporting currency, applying the guidelines in IAS 21 "The Effects of Changes in Foreign Exchange Rates"("IAS 21"). IAS 21 requires that amounts be translated at the closing rate at the date of the most recent statement of financial position. This process is called "translation".

The re-measurement and translation processes are applied on a monthly basis until year-end. Due to these processes, the re-measured and translated results of operations for a given month are subject to change until year-end, affecting comparison and analysis.

Following the adoption of IAS 29 to the Argentine operations of the Group, management changed the information reviewed by the CODM. Accordingly, as from July 1, 2018, (commencement of hyper-inflation accounting in Argentina), the information provided to the CODM departs from the application of IAS 29 and IAS 21 re-measurement and translation processes as follows. For segment reporting purposes, the segment results of the Argentine operations for each reporting period were adjusted for inflation and translated into the Group's reporting currency using the reporting period average exchange rate. The translated amounts were not subsequently re-measured and translated in accordance with the IAS 29 and IAS 21 procedures outlined above.

In order to evaluate the segment's performance on a monthly basis, results of operations in Argentina are based on monthly data adjusted for inflation and converted into the average exchange rate of the U.S. Dollar each month. These already converted figures are subsequently not readjusted and reconverted as described above under IAS 29 and IAS 21. It should be noted that this translation methodology for evaluating segment information is the same that the Group uses to translate results

F- 23

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

of operation from its other subsidiaries from other countries that have not been designated hyperinflationary economies because it allows for a more accurate analysis of the economic performance of its business as a whole.

The Group's CODM believes that the exclusion of the re-measurement and translation processes from the segment reporting structure allows for a more useful presentation and facilitates period-to-period comparison and performance analysis.

The following tables show a reconciliation of the reportable segments where the information reviewed by the CODM differs from the reportable segment information measured in accordance with IAS 29 and IAS 21 as per the Consolidated Financial Statements for all years presented. These tables do not include information for the Sugar, Ethanol and Energy reportable segment since this information is not affected by the application of IAS 29 and therefore there is no difference between the information reviewed by the CODM and the information included in the Consolidated Financial Statements:

F- 24

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Segment reconciliation for the year ended December 31, 2022:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Crops** | **Crops** | **Crops** | **Rice** | **Rice** | **Rice** | **Dairy** | **Dairy** | **Dairy** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 275200 | (2463) | 272737 | 203686 | (197) | 203489 | 236222 | (1210) | 235012 |
| Cost of goods and services rendered | (252879) | 2217 | (250662) | (159940) | (380) | (160320) | (204924) | 1039 | (203885) |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 64133 | 1441 | 65574 | 14802 | 521 | 15323 | 27523 | (266) | 27257 |
| Gain from changes in net realizable value of agricultural produce after harvest | (21495) | 136 | (21359) |  |  |  |  |  |  |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **64959** | **1331** | **66290** | **58548** | **(56)** | **58492** | **58821** | **(437)** | **58384** |
| General and administrative expenses | (13175) | 5 | (13170) | (15404) | 169 | (15235) | (10378) | 181 | (10197) |
| Selling expenses | (31672) | 208 | (31464) | (34630) | 229 | (34401) | (27050) | 76 | (26974) |
| Other operating income, net | (1021) | (653) | (1674) | 79 | 1 | 80 | (8) | (3) | (11) |
| Bargain purchase gain on acquisition |  |  |  | 10070 | 37 | 10107 |  |  |  |
| **Profit from Operations Before Financing and Taxation** | **19091** | **891** | **19982** | **18663** | **380** | **19043** | **21385** | **(183)** | **21202** |
| Depreciation and amortization | (7908) | 40 | (7868) | (12112) | 97 | (12015) | (10075) | 57 | (10018) |
| Net (loss) / gain from Fair value adjustment of investment property |  |  |  |  |  |  |  |  |  |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **All other segments** | **All other segments** | **All other segments** | **Land transformation** | **Land transformation** | **Land transformation** | **Corporate** | **Corporate** | **Corporate** | **Total** | **Total** | **Total** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 5839 | (113) | 5726 |  |  |  |  |  |  | **1351707** | (3983) | **1347724** |
| Cost of goods and services rendered | (5153) | 114 | (5039) |  |  |  |  |  |  | **(1078737)** | 2990 | **(1075747)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | (336) | 57 | (279) |  |  |  |  |  |  | **214188** | 1753 | **215941** |
| Gain from changes in net realizable value of agricultural produce after harvest |  |  |  |  |  |  |  |  |  | **(22429)** | 136 | **(22293)** |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **350** | **58** | **408** | **—** | **—** | **—** | **—** | **—** | **—** | **464729** | **896** | **465625** |
| General and administrative expenses | (220) | 1 | (219) |  |  |  | (23413) | (136) | (23549) | **(84507)** | 220 | **(84287)** |
| Selling expenses | (257) | 4 | (253) |  |  |  | (257) | (1) | (258) | **(144031)** | 516 | **(143515)** |
| Other operating income, net | (2801) | (195) | (2996) | 3699 | 6 | 3705 | (136) | 21 | (115) | **2693** | (823) | **1870** |
| Bargain purchase gain on acquisition |  |  |  |  |  |  |  |  |  | **10070** | 37 | **10107** |
| **Profit from Operations Before Financing and Taxation** | **(2928)** | **(132)** | **(3060)** | **3699** | **6** | **3705** | **(23806)** | **(116)** | **(23922)** | **248954** | **846** | **249800** |
| Depreciation and amortization | (212) |  | (212) |  |  |  | 22 | (29) | (7) | **(191205)** | 165 | **(191040)** |
| Net (loss) / gain from Fair value adjustment of investment property | (2764) | (197) | (2961) |  |  |  |  |  |  | **(2764)** | (197) | **(2961)** |

---

F- 25

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Segment reconciliation for the year ended December 31, 2021:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Crops** | **Crops** | **Crops** | **Rice** | **Rice** | **Rice** | **Dairy** | **Dairy** | **Dairy** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 228894 | 11836 | 240730 | 130526 | 4343 | 134869 | 172803 | 10251 | 183054 |
| Cost of goods and services rendered | (203148) | (10083) | (213231) | (109709) | (2336) | (112045) | (149738) | (8339) | (158077) |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 65704 | 8286 | 73990 | 37119 | 6715 | 43834 | 18336 | 1559 | 19895 |
| Gain from changes in net realizable value of agricultural produce after harvest | (10163) | (1221) | (11384) |  |  |  |  |  |  |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **81287** | **8818** | **90105** | **57936** | **8722** | **66658** | **41401** | **3471** | **44872** |
| General and administrative expenses | (10273) | (827) | (11100) | (8891) | (869) | (9760) | (4715) | (541) | (5256) |
| Selling expenses | (21925) | (1494) | (23419) | (16618) | (1490) | (18108) | (20779) | (1793) | (22572) |
| Other operating income, net | (3538) | (185) | (3723) | 239 | 46 | 285 | (150) | (20) | (170) |
| **Profit from Operations Before Financing and Taxation** | **45551** | **6312** | **51863** | **32666** | **6409** | **39075** | **15757** | **1117** | **16874** |
| Depreciation and amortization | (6501) | (634) | (7135) | (8080) | (814) | (8894) | (7144) | (797) | (7941) |
| Net (loss) / gain from Fair value adjustment of investment property |  |  |  |  |  |  |  |  |  |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **All other segments** | **All other segments** | **All other segments** | **Land transformation** | **Land transformation** | **Land transformation** | **Corporate** | **Corporate** | **Corporate** | **Total** | **Total** | **Total** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 3490 | 199 | 3689 |  |  |  |  |  |  | **1097723** | 26629 | **1124352** |
| Cost of goods and services rendered | (2966) | (145) | (3111) |  |  |  |  |  |  | **(834062)** | (20903) | **(854965)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 1380 | (18) | 1362 |  |  |  |  |  |  | **211198** | 16542 | **227740** |
| Gain from changes in net realizable value of agricultural produce after harvest |  |  |  |  |  |  |  |  |  | **(11658)** | (1221) | **(12879)** |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **1904** | **36** | **1940** | **—** | **—** | **—** | **—** | **—** | **—** | **463201** | **21047** | **484248** |
| General and administrative expenses | (173) | (14) | (187) |  |  |  | (22119) | (1908) | (24027) | **(65635)** | (4159) | **(69794)** |
| Selling expenses | (273) | (17) | (290) |  |  |  | (306) | (21) | (327) | **(112847)** | (4815) | **(117662)** |
| Other operating income, net | (3995) | (470) | (4465) | 6613 |  | 6613 | 103 | (21) | 82 | **(18118)** | (650) | **(18768)** |
| **Profit from Operations Before Financing and Taxation** | **(2537)** | **(465)** | **(3002)** | **6613** | **—** | **6613** | **(22322)** | **(1950)** | **(24272)** | **266601** | **11423** | **278024** |
| Depreciation and amortization | (175) | (15) | (190) |  |  |  | (738) | (49) | (787) | (166619) | (2309) | (168928) |
| Net (loss) / gain from Fair value adjustment of investment property | (3884) | (447) | (4331) |  |  |  |  |  |  | (3884) | (447) | (4331) |

---

F- 26

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Segment reconciliation for the year ended December 31, 2020:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** |
| | **Crops** | **Crops** | **Crops** | **Rice** | **Rice** | **Rice** | **Dairy** | **Dairy** | **Dairy** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 170114 | (1653) | 168461 | 102886 | (1024) | 101862 | 135471 | (1997) | 133474 |
| Cost of goods and services rendered | (150745) | 1495 | (149250) | (74395) | 565 | (73830) | (117754) | 1747 | (116007) |
| &nbsp;&nbsp;&nbsp;Initial recognition and changes in fair value of biological assets and agricultural produce | 41777 | (934) | 40843 | 19449 | (772) | 18677 | 12638 | (294) | 12344 |
| Gain from changes in net realizable value of agricultural produce after harvest | 7078 | (71) | 7007 |  |  |  | (2) |  | (2) |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **68224** | **(1163)** | **67061** | **47940** | **(1231)** | **46709** | **30353** | **(544)** | **29809** |
| General and administrative expenses | (6816) | 122 | (6694) | (7045) | 146 | (6899) | (4896) | 108 | (4788) |
| Selling expenses | (18265) | 267 | (17998) | (14170) | 247 | (13923) | (13824) | 284 | (13540) |
| Other operating income, net | (12846) | (7) | (12853) | 731 | (18) | 713 | (189) | 3 | (186) |
| **Profit from Operations Before Financing and Taxation** | **30297** | **(781)** | **29516** | **27456** | **(856)** | **26600** | **11444** | **(149)** | **11295** |
| Depreciation and amortization | (5397) | 111 | (5286) | (6652) | 147 | (6505) | (6709) | 141 | (6568) |
| Net (loss) / gain from Fair value adjustment of investment property |  |  |  |  |  |  |  |  |  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** |
| | **All other segments** | **All other segments** | **All other segments** | **Corporate** | **Corporate** | **Corporate** | **Total** | **Total** | **Total** |
| | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** | **Total segment reporting** | **Adjustment** | **Total as per statement of income** |
| Sales of goods sold and services rendered | 2545 | (37) | 2508 |  |  |  | **822475** | (4711) | **817764** |
| Cost of goods and services rendered | (1984) | 22 | (1962) |  |  |  | **(615775)** | 3829 | **(611946)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 1269 | (13) | 1256 |  |  |  | **124742** | (2013) | **122729** |
| Gain from changes in net realizable value of agricultural produce after harvest |  |  |  |  |  |  | **7076** | (71) | **7005** |
| **Margin on Manufacturing and Agricultural Activities Before Operating Expenses** | **1830** | **(28)** | **1802** | **—** | **—** | **—** | **338518** | **(2966)** | **335552** |
| General and administrative expenses | (120) | 2 | (118) | (19319) | 336 | (18983) | **(54138)** | 710 | **(53428)** |
| Selling expenses | (217) | 3 | (214) | (202) | 7 | (195) | **(95866)** | 808 | **(95058)** |
| Other operating income, net | 1069 | (2) | 1067 | (161) | (8) | (169) | **2033** | (46) | **1987** |
| **Profit from Operations Before Financing and Taxation** | **2562** | **(25)** | **2537** | **(19682)** | **335** | **(19347)** | **190547** | **(1494)** | **189053** |
| Depreciation and amortization | (138) | 3 | (135) | (876) | 14 | (862) | **(142288)** | 416 | **(141872)** |
| Net (loss) / gain from Fair value adjustment of investment property | 1080 | (3) | 1077 |  |  |  | **1080** | (3) | **1077** |

---

F- 27

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

The following table presents information with respect to the Group's reportable segments. Certain other activities of a holding function nature not allocable to the segments are disclosed in the column **'Corporate'**.

Segment analysis for the year ended December 31, 2022:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | ***Farming<br>subtotal*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| Sales of goods and services rendered | 275200 | 203686 | 236222 | 5839 | **720947** | **630760** | **—** | **—** | **1351707** |
| Cost of goods sold and services rendered | (252879) | (159940) | (204924) | (5153) | **(622896)** | **(455841)** | **—** | **—** | **(1078737)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 64133 | 14802 | 27523 | (336) | **106122** | **108066** | **—** | **—** | **214188** |
| Changes in net realizable value of agricultural produce after harvest | (21495) |  |  |  | **(21495)** | **(934)** | **—** | **—** | **(22429)** |
| **Margin on manufacturing and agricultural activities before operating expenses** | **64959** | **58548** | **58821** | **350** | **182678** | **282051** | **—** | **—** | **464729** |
| General and administrative expenses | (13175) | (15404) | (10378) | (220) | **(39177)** | **(21917)** | **—** | **(23413)** | **(84507)** |
| Selling expenses | (31672) | (34630) | (27050) | (257) | **(93609)** | **(50165)** | **—** | **(257)** | **(144031)** |
| Other operating income, net | (1021) | 79 | (8) | (2801) | **(3751)** | **2881** | **3699** | **(136)** | **2693** |
| Bargain purchase gain on acquisition |  | 10070 |  |  | **10070** |  |  |  | **10070** |
| **Profit / (loss) from operations before financing and taxation** | **19091** | **18663** | **21385** | **(2928)** | **56211** | **212850** | **3699** | **(23806)** | **248954** |
| Depreciation and amortization | (7908) | (12112) | (10075) | (212) | **(30307)** | (160920) | **—** | 22 | **(191205)** |
| Net (loss) / gain from Fair value adjustment of investment property |  |  |  | (2764) | **(2764)** | **—** | **—** | **—** | **(2764)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized) | 3929 | 3701 | (2276) | (2231) | **3123** | 35232 | **—** | **—** | **38355** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (realized) | 60204 | 11101 | 29799 | 1895 | **102999** | 72834 | **—** | **—** | **175833** |
| Changes in net realizable value of agricultural produce after harvest (unrealized) | 72 |  |  |  | **72** | **—** | **—** | **—** | **72** |
| Changes in net realizable value of agricultural produce after harvest (realized) | (21567) |  |  |  | **(21567)** | (934) | **—** | **—** | **(22501)** |
| Farmlands and farmland improvements, net | 457286 | 149251 | 2221 | 56928 | **665686** | 78647 |  |  | **744333** |
| Machinery, equipment and other fixed assets, net | 48691 | 58827 | 108589 | 1792 | **217899** | 171307 | **—** |  | **389206** |
| Bearer plants, net | 1057 |  |  |  | **1057** | 351670 | **—** | **—** | **352727** |
| Work in progress | 7021 | 29061 | 22325 | 2399 | **60806** | 18283 | **—** | **—** | **79089** |
| Right of use assest | 18952 | 8594 | 711 |  | **28257** | 330681 |  | 1243 | **360181** |
| Investment property |  |  |  | 33330 | **33330** |  | **—** |  | **33330** |
| Goodwill | 7990 | 1106 | 5263 |  | **14359** | 4185 | **—** | **—** | **18544** |
| Biological assets | 66002 | 52752 | 30045 | 8214 | **157013** | 109431 | **—** | **—** | **266444** |
| Finished goods | 37539 | 13659 | 12825 |  | **64023** | 88693 | **—** | **—** | **152716** |
| Raw materials, stocks held by third parties and others | 62911 | 22129 | 8700 | 291 | **94031** | 27275 | **—** | **—** | **121306** |
| **Total segment assets** | **707449** | **335379** | **190679** | **102954** | **1336461** | **1180172** | **—** | **1243** | **2517876** |
| Borrowings | 41493 | 113133 | 138241 |  | **292867** | 587865 | **—** | 127020 | **1007752** |
| Lease liabilities | 18234 | 8281 | 623 |  | **27138** | 310162 |  | 680 | **337980** |
| **Total segment liabilities** | **59727** | **121414** | **138864** | **—** | **320005** | **898027** | **—** | **127700** | **1345732** |

---

F- 28

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Segment analysis for the year ended December 31, 2021

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | ***Farming<br>subtotal*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| Sales of goods and services rendered | 228894 | 130526 | 172803 | 3490 | **535713** | **562010** |  |  | **1097723** |
| Cost of goods sold and services rendered | (203148) | (109709) | (149738) | (2966) | **(465561)** | **(368501)** |  |  | **(834062)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 65704 | 37119 | 18336 | 1380 | **122539** | **88659** |  |  | **211198** |
| Changes in net realizable value of agricultural produce after harvest | (10163) |  |  |  | **(10163)** | **(1495)** |  |  | **(11658)** |
| **Margin on manufacturing and agricultural activities before operating expenses** | **81287** | **57936** | **41401** | **1904** | **182528** | **280673** | **—** | **—** | **463201** |
| General and administrative expenses | (10273) | (8891) | (4715) | (173) | **(24052)** | **(19464)** |  | (22119) | **(65635)** |
| Selling expenses | (21925) | (16618) | (20779) | (273) | **(59595)** | **(52946)** |  | (306) | **(112847)** |
| Other operating income, net | (3538) | 239 | (150) | (3995) | **(7444)** | **(17390)** | 6613 | 103 | **(18118)** |
| **Profit / (loss) from operations before financing and taxation** | **45551** | **32666** | **15757** | **(2537)** | **91437** | **190873** | **6613** | **(22322)** | **266601** |
| Depreciation and amortization | (6501) | (8080) | (7144) | (175) | **(21900)** | (143981) |  | (738) | **(166619)** |
| Net (loss) / gain from Fair value adjustment of investment property | **—** | **—** | **—** | (3884) | **(3884)** | **—** | **—** | **—** | **(3884)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized) | 14399 | 4117 | (6271) | 8904 | **21149** | (16294) |  |  | **4855** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (realized) | 51305 | 33002 | 24607 | (7524) | **101390** | 104953 |  |  | **206343** |
| Changes in net realizable value of agricultural produce after harvest (unrealized) | (4001) |  |  |  | **(4001)** |  |  |  | **(4001)** |
| Changes in net realizable value of agricultural produce after harvest (realized) | (6162) |  |  |  | **(6162)** | (1495) |  |  | **(7657)** |
| Farmlands and farmland improvements, net | 448608 | 146795 | 2143 | 56315 | **653861** | 73979 |  |  | **727840** |
| Machinery, equipment and other fixed assets, net | 47122 | 29543 | 81516 | 1641 | **159822** | 158611 |  |  | **318433** |
| Bearer plants, net | 892 |  |  |  | **892** | 294090 |  |  | **294982** |
| Work in progress | 3444 | 33200 | 27341 | 1496 | **65481** | 15887 |  |  | **81368** |
| Right of use assets | 13005 | 3361 | 930 |  | **17296** | 243469 |  | 11 | **260776** |
| Investment property |  |  |  | 32132 | **32132** |  |  |  | **32132** |
| Goodwill | 7074 | 979 | 4660 |  | **12713** | 3913 |  |  | **16626** |
| Biological assets | 54886 | 42729 | 18979 | 7257 | **123851** | 71327 |  |  | **195178** |
| Finished goods | 37225 | 5015 | 15157 |  | **57397** | 80857 |  |  | **138254** |
| Raw materials, stocks held by third parties and others | 42253 | 14797 | 10416 | 579 | **68045** | 33225 |  |  | **101270** |
| **Total segment assets** | **654509** | **276419** | **161142** | **99420** | **1191490** | **975358** | **—** | **11** | **2166859** |
| Borrowings | 31755 | 34230 | 62061 |  | **128046** | 524461 |  | 165144 | **817651** |
| Lease liabilities | 14106 | 4157 | 924 |  | **19187** | 227585 |  | 82 | **246854** |
| **Total segment liabilities** | **45861** | **38387** | **62985** | **—** | **147233** | **752046** | **—** | **165226** | **1064505** |

---

F- 29

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Segment analysis for the year ended December 31, 2020

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Farming*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | ***Farming<br>subtotal*** | ***Sugar,<br>Ethanol and Energy*** | ***Land Transformation*** | ***Corporate*** | ***Total*** |
| Sales of goods and services rendered | 170114 | 102886 | 135471 | 2545 | **411016** | 411459 |  |  | **822475** |
| Cost of goods sold and services rendered | (150745) | (74395) | (117754) | (1984) | **(344878)** | (270897) |  |  | **(615775)** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 41777 | 19449 | 12638 | 1269 | **75133** | 49609 |  |  | **124742** |
| Changes in net realizable value of agricultural produce after harvest | 7078 |  | (2) |  | **7076** |  |  |  | **7076** |
| **Margin on manufacturing and agricultural activities before operating expenses** | **68224** | **47940** | **30353** | **1830** | **148347** | **190171** | **—** | **—** | **338518** |
| General and administrative expenses | (6816) | (7045) | (4896) | (120) | **(18877)** | (15942) |  | (19319) | **(54138)** |
| Selling expenses | (18265) | (14170) | (13824) | (217) | **(46476)** | (49188) |  | (202) | **(95866)** |
| Other operating income, net | (12846) | 731 | (189) | 1069 | **(11235)** | 5495 | 7934 | (161) | **2033** |
| **Profit / (loss) from operations before financing and taxation** | **30297** | **27456** | **11444** | **2562** | **71759** | **130536** | **7934** | **(19682)** | **190547** |
| Depreciation and amortization | (5397) | (6652) | (6709) | (138) | **(18896)** | **(122516)** |  | (876) | **(142288)** |
| Net (loss) / gain from Fair value adjustment of investment property |  |  |  | 1080 | **1080** | **—** |  |  | **1080** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized) | 12211 | 3975 | (5151) | 2258 | **13293** | **19682** |  |  | **32975** |
| Initial recognition and changes in fair value of biological assets and agricultural produce (realized) | 29566 | 15474 | 17789 | (989) | **61840** | **29927** |  |  | **91767** |
| Changes in net realizable value of agricultural produce after harvest (unrealized) | (481) |  |  |  | **(481)** | **—** |  |  | **(481)** |
| Changes in net realizable value of agricultural produce after harvest (realized) | 7559 |  | (2) |  | **7557** | **—** |  |  | **7557** |

---

Total segment assets and liabilities are measured in a manner consistent with that of the Consolidated Financial Statements. These assets and liabilities are allocated based on the operations of the segment and the physical location of the asset.

F- 30

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

Total reportable segments' assets and liabilities are reconciled to total assets as per the statement of financial position as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Total reportable assets as per segment information** | **2517876** | **2166859** |
| Intangible assets (excluding goodwill) | 17576 | 14711 |
| Deferred income tax assets | 8758 | 10321 |
| Trade and other receivables | 228378 | 188080 |
| Other assets | 1701 | 1079 |
| Derivative financial instruments | 5342 | 1585 |
| Restricted short-term investment | 98571 |  |
| Cash and cash equivalents | 230653 | 199766 |
| **Total assets as per the statement of financial position** | **3108855** | **2582401** |

---

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Total reportable liabilities as per segment information** | **1345732** | **1064505** |
| Trade and other payables | 259607 | 169030 |
| Deferred income tax liabilities | 301414 | 265848 |
| Payroll and social liabilities | 31545 | 26294 |
| Provisions for other liabilities | 3435 | 5986 |
| Current income tax liabilities | 422 | 1625 |
| Derivative financial instruments | 3057 | 1283 |
| **Total liabilities as per the statement of financial position** | **1945212** | **1534571** |

---

Non-current assets and revenues and fair value gains and losses are shown by geographic region. These are the regions in which the Group is active: Argentina, Brazil, Uruguay and others.

As of and for the year ended December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Argentina** | **Brazil** | **Uruguay** | **Others (\*)** | **Total** |
| Property, plant and equipment | 914444 | 620065 | 30846 | **—** | **1565355** |
| Investment property | 33330 |  |  | **—** | **33330** |
| Goodwill | 14359 | 4185 |  | **—** | **18544** |
| Non-current portion of biological assets | 30622 |  |  | **—** | **30622** |
|  |  |  |  |  | **—** |
| Sales of goods and services rendered | 373746 | 494215 | 472538 | 11208 | **1351707** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 102656 | 108066 | 3466 | **—** | **214188** |
| Changes in net realizable value of agricultural produce after harvest | (21482) | (934) | (13) | **—** | **(22429)** |

---

F- 31

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**3.&nbsp;&nbsp;&nbsp;&nbsp;Segment information (continued)**

As of and for the year ended December 31, 2021:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Argentina** | **Brazil** | **Uruguay** | **Others (\*)** | **Total** |
| Property, plant and equipment | 868527 | 542710 | 11386 | **—** | **1422623** |
| Investment property | 32132 |  |  | **—** | **32132** |
| Goodwill | 12713 | 3913 |  | **—** | **16626** |
| Non-current portion of biological assets | 19355 |  |  | **—** | **19355** |
| Sales of goods and services rendered | 284026 | 385959 | 427661 | 77 | **1097723** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 120255 | 88659 | 2284 | **—** | **211198** |
| Changes in net realizable value of agricultural produce after harvest | (9679) | (1496) | (483) | **—** | **(11658)** |

---

(\*) It includes the initial operations in Chile which are not disclosed separately on materiality grounds.

As of and for the year ended December 31, 2020:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Argentina** | **Brazil** | **Uruguay** | **Total** |
| Sales of goods and services rendered | 389018 | 411779 | 21678 | **822475** |
| Initial recognition and changes in fair value of biological assets and agricultural produce | 72391 | 50348 | 2003 | **124742** |
| Changes in net realizable value of agricultural produce after harvest | 6770 | (88) | 394 | **7076** |

---

F- 32

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**4.&nbsp;&nbsp;&nbsp;&nbsp;Sales**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **Manufactured products and services rendered:** |  |  |  |
| Ethanol | 387124 | 291883 | 199062 |
| Sugar | 188769 | 208365 | 171102 |
| Energy (\*) | 34919 | 50321 | 42756 |
| Peanut | 63041 | 60939 | 46708 |
| Sunflower | 14948 | 11282 | 10433 |
| Cotton | 6780 | 2540 | 1969 |
| Rice (\*) | 188263 | 127272 | 96397 |
| Fluid milk (UHT) | 76596 | 62875 | 54380 |
| Powder milk (\*) | 84257 | 62728 | 40500 |
| Other diary products | 37648 | 28834 | 17205 |
| Services | 10987 | 7309 | 4774 |
| Rental income | 841 | 615 | 584 |
| Others | 24199 | 13069 | 5623 |
|  | **1118372** | **928032** | **691493** |
| **Agricultural produce and biological assets:** |  |  |  |
| Soybean | 81757 | 71687 | 44271 |
| Corn | 71188 | 59803 | 44475 |
| Wheat | 19915 | 27349 | 14457 |
| Rice | 3994 |  |  |
| Sunflower | 9885 | 6167 | 633 |
| Barley | 4175 | 1684 | 275 |
| Seeds | 1940 | 1559 | 1732 |
| Raw milk | 21623 | 16468 | 12817 |
| Cattle | 5039 | 3111 | 1959 |
| Cattle for dairy | 7543 | 4994 | 2729 |
| Others | 2293 | 3498 | 2923 |
|  | **229352** | **196320** | **126271** |
| **Total sales** | **1347724** | **1124352** | **817764** |

---

(\*) Includes sales of energy, rice and powder milk produced by third parties for an amount of US$4.5 million. (sales of rice, energy and butter for an amount of US$11.5 million and US$13.9 million for the years 2021 and 2020 respectively).

***Commitments to sell commodities at a future date***

The Group entered into contracts to sell non-financial instruments, mainly sugar, soybean and corn through sales forward contracts. Those contracts are held for purposes of delivery of the non-financial instrument in accordance with the Group's expected sales. Accordingly, as the own use exception criteria are met, those contracts are not recorded as derivatives.

The notional amount of these contracts is US$89.9 million as of December 31, 2022 (2021: US$75.9 million; 2020: US$42.2 million) and comprised primarily of 34,879 thousand tons of sugar (US$26.1 million), 34,905 thousand m3 of ethanol (US$21.5 million), 543,795 thousand mwh of energy (US$28.8 million), 5,498 thousand tons of soybean (US$2.0 million), 15,051 thousand tons of wheat (US$5.1 million), and 16,112 thousand tons of corn (US$3.5 million) which expire between January and December 2023.

F- 33

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**5.&nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold and services rendered**

For the year ended December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |
| **Finished goods at the beginning of year (Note 19)** | 37225 | 5015 | 15157 |  | 80857 | 138254 |
| Cost of production of manufactured products (Note 6) | 68510 | 165330 | 180723 |  | 455336 | 869899 |
| Purchases | 10528 | 1866 | 1285 |  | 856 | 14535 |
| Acquisition of subsidiaries |  | 8413 |  |  |  | 8413 |
| Agricultural produce | 240469 |  | 21647 | 5039 | 11571 | 278726 |
| Transfer to raw material | (75158) | (6549) |  |  |  | (81707) |
| Direct agricultural selling expenses | 25623 |  |  |  |  | 25623 |
| Tax recoveries (i) |  |  |  |  | (17800) | (17800) |
| Changes in net realizable value of agricultural produce after harvest | (21359) |  |  |  | (934) | (22293) |
| Loss of idle capacity |  |  |  |  | 7507 | 7507 |
| Finished goods at the end of the year (Note 19) | (37539) | (13659) | (12825) |  | (88693) | (152716) |
| Exchange differences | 2363 | (96) | (2102) |  | 7141 | 7306 |
| **Cost of goods sold and services rendered** | **250662** | **160320** | **203885** | **5039** | **455841** | **1075747** |

---

(i) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values.

For the year ended December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |
| **Finished goods at the beginning of year** | 30267 | 5970 | 6489 |  | 34315 | 77041 |
| Cost of production of manufactured products (Note 6) | 59590 | 124304 | 158083 |  | 415408 | 757385 |
| Purchases | 26880 | 569 |  |  | 4860 | 32309 |
| Agricultural produce | 224788 |  | 16468 | 3111 | 10944 | 255311 |
| Transfer to raw material | (73068) | (7240) |  |  |  | (80308) |
| Direct agricultural selling expenses | 22642 |  |  |  |  | 22642 |
| Tax recoveries (i) |  |  |  |  | (19423) | (19423) |
| Changes in net realizable value of agricultural produce after harvest | (11384) |  |  |  | (1495) | (12879) |
| Loss of idle capacity |  |  |  |  | 14270 | 14270 |
| Finished goods at the end of the year (Note 19) | (37225) | (5015) | (15157) |  | (80857) | (138254) |
| Exchange differences | (29259) | (6543) | (7806) |  | (9521) | (53129) |
| **Cost of goods sold and services rendered** | **213231** | **112045** | **158077** | **3111** | **368501** | **854965** |

---

(i) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values.

F- 34

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**5.&nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold and services rendered (continued)**

For the year ended December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2020** | **2020** | **2020** | **2020** | **2020** | **2020** |
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |
| **Finished goods at the beginning of year** | 17830 | 5805 | 4779 |  | 36864 | 65278 |
| Cost of production of manufactured products (Note 6) | 44074 | 79507 | 102933 |  | 285627 | 512141 |
| Purchases | 3648 |  |  |  | 6088 | 9736 |
| Agricultural produce | 137204 |  | 15546 | 1962 |  | 154712 |
| Transfer to raw material | (46192) | (4256) |  |  |  | (50448) |
| Direct agricultural selling expenses | 16467 |  |  |  |  | 16467 |
| Tax recoveries (i) |  |  |  |  | (21765) | (21765) |
| Changes in net realizable value of agricultural produce after harvest | 7007 |  | (2) |  |  | 7005 |
| Finished goods at the end of the year (Note 19) | (30267) | (5970) | (6489) |  | (34315) | (77041) |
| Exchange differences | (521) | (1256) | (760) |  | (1602) | (4139) |
| **Cost of goods sold and services rendered** | **149250** | **73830** | **116007** | **1962** | **270897** | **611946** |

---

(i) Correspond to the presumed credit of ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) over the sale values.

F- 35

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**6.&nbsp;&nbsp;&nbsp;&nbsp;Expenses by nature**

The statement of income is presented under the function of expense method. Under this method, expenses are classified according to their function as "cost of goods sold and services rendered," "general and administrative expenses" and "selling expenses".

The following table provides the additional disclosure required on the nature of expenses and their relationship to the function within the Group:

Expenses by nature for the year ended December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **General and<br>Administrative<br>Expenses** | **Selling<br>Expenses** | **Total** |
| | **Crops** | **Rice** | **Dairy** | **Sugar,<br>Ethanol and<br>Energy** | **Total** | **General and<br>Administrative<br>Expenses** | **Selling<br>Expenses** | **Total** |
| Salaries, social security expenses and employee benefits | 4216 | 12362 | 11627 | 35890 | **64095** | 39347 | 9472 | **112914** |
| Raw materials and consumables | 367 | 367 | 29317 | 14094 | **44145** |  |  | **44145** |
| Depreciation and amortization | 4463 | 3814 | 4007 | 123960 | **136244** | 18109 | 1408 | **155761** |
| Depreciation of right of use assets |  | 115 | 971 | 7475 | **8561** | 7702 | 99 | **16362** |
| Fuel, lubricants and others | 239 | 249 | 1886 | 38813 | **41187** | 712 | 340 | **42239** |
| Maintenance and repairs | 1264 | 3320 | 1856 | 22674 | **29114** | 1718 | 741 | **31573** |
| Freights | 519 | 9319 | 2862 | 75 | **12775** |  | 57913 | **70688** |
| Export taxes / selling taxes |  |  |  |  | **—** |  | 39202 | **39202** |
| Export expenses |  |  |  |  | **—** |  | 17963 | **17963** |
| Contractors and services | 2218 | 720 | 569 | 7044 | **10551** |  |  | **10551** |
| Energy transmission |  |  |  |  | **—** |  | 3053 | **3053** |
| Energy power | 1577 | 3172 | 3189 | 733 | **8671** | 373 | 89 | **9133** |
| Professional fees | 59 | 86 | 110 | 837 | **1092** | 8337 | 802 | **10231** |
| Other taxes | 25 | 117 | 110 | 2775 | **3027** | 852 | 63 | **3942** |
| Contingencies |  |  |  |  | **—** | 568 |  | **568** |
| Lease expense and similar arrangements | 178 | 682 | 197 |  | **1057** | 1153 | 271 | **2481** |
| Third parties raw materials | 8270 | 23934 | 75674 | 13693 | **121571** |  |  | **121571** |
| Tax recoveries |  |  |  | (556) | **(556)** |  |  | **(556)** |
| Others | 1335 | 2736 | 1269 | 4322 | **9662** | 5416 | 12099 | **27177** |
| **Subtotal** | **24730** | **60993** | **133644** | **271829** | **491196** | **84287** | **143515** | **718998** |
| Own agricultural produce consumed | 43780 | 104337 | 47079 | 183507 | **378703** |  |  | **378703** |
| **Total** | **68510** | **165330** | **180723** | **455336** | **869899** | **84287** | **143515** | **1097701** |

---

F- 36

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**6.&nbsp;&nbsp;&nbsp;&nbsp;Expenses by nature (continued)**

Expenses by nature for the year ended December 31, 2021:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **General and<br>Administrative<br>Expenses** | **Selling<br>Expenses** | **Total** |
| | **Crops** | **Rice** | **Dairy** | **Sugar,<br>Ethanol and<br>Energy** | **Total** | **General and<br>Administrative<br>Expenses** | **Selling<br>Expenses** | **Total** |
| Salaries, social security expenses and employee benefits | 3651 | 6841 | 9268 | 27072 | **46832** | 30727 | 7221 | **84780** |
| Raw materials and consumables | 578 | 373 | 24755 | 13036 | **38742** |  |  | **38742** |
| Depreciation and amortization | 3930 | 2692 | 3590 | 108709 | **118921** | 14280 | 1304 | **134505** |
| Depreciation of right of use assets |  | 102 | 602 | 5700 | **6404** | 7173 | 49 | **13626** |
| Fuel, lubricants and others | 336 | 89 | 1730 | 24747 | **26902** | 854 | 279 | **28035** |
| Maintenance and repairs | 1341 | 1851 | 1779 | 16797 | **21768** | 1956 | 800 | **24524** |
| Freights | 644 | 8154 | 2377 | 607 | **11782** |  | 38970 | **50752** |
| Export taxes / selling taxes |  |  |  |  | **—** |  | 43509 | **43509** |
| Export expenses |  |  |  |  | **—** |  | 11745 | **11745** |
| Contractors and services | 2587 | 235 | 260 | 6758 | **9840** |  |  | **9840** |
| Energy transmission |  |  |  |  | **—** |  | 2347 | **2347** |
| Energy power | 1276 | 1501 | 2544 | 839 | **6160** | 335 | 85 | **6580** |
| Professional fees | 78 | 84 | 140 | 692 | **994** | 7600 | 815 | **9409** |
| Other taxes | 23 | 92 | 118 | 3049 | **3282** | 582 | 62 | **3926** |
| Contingencies |  |  |  |  | **—** | 855 |  | **855** |
| Lease expense and similar arrangements | 162 | 319 | 257 |  | **738** | 1863 | 251 | **2852** |
| Third parties raw materials | 2804 | 2852 | 62737 | 15240 | **83633** |  |  | **83633** |
| Tax recoveries |  |  |  | (1546) | **(1546)** |  |  | **(1546)** |
| Others | 962 | 5273 | 2166 | 2636 | **11037** | 3569 | 10225 | **24831** |
| **Subtotal** | **18372** | **30458** | **112323** | **224336** | **385489** | **69794** | **117662** | **572945** |
| Own agricultural produce consumed | 41218 | 93846 | 45760 | 191072 | **371896** |  |  | **371896** |
| **Total** | **59590** | **124304** | **158083** | **415408** | **757385** | **69794** | **117662** | **944841** |

---

F- 37

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**6.&nbsp;&nbsp;&nbsp;&nbsp;Expenses by nature (continued)**

Expenses by nature for the year ended December 31, 2020:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | **Cost of production of manufactured products (Note 5)** | | | |
| | **Crops** | **Rice** | **Dairy** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |<br>**General and<br>Administrative<br>Expenses** |<br>**Selling<br>Expenses** |<br>**Total** |
| Salaries, social security expenses and employee benefits | 2348 | 4466 | 7452 | 26341 | **40607** | 25519 | 5206 | **71332** |
| Raw materials and consumables | 448 | 3072 | 14486 | 8743 | **26749** |  |  | **26749** |
| Depreciation and amortization | 2929 | 2016 | 2812 | 93211 | **100968** | 12490 | 985 | **114443** |
| Depreciation right-of-use and other leases |  | 19 | 461 | 6208 | **6688** | 3557 | 24 | **10269** |
| Fuel, lubricants and others | 131 | 68 | 2030 | 16543 | **18772** | 428 | 187 | **19387** |
| Maintenance and repairs | 639 | 1492 | 1141 | 12581 | **15853** | 954 | 476 | **17283** |
| Freights | 172 | 4617 | 1708 | 649 | **7146** |  | 33111 | **40257** |
| Export taxes / selling taxes |  |  |  |  | **—** |  | 35966 | **35966** |
| Export expenses |  |  |  |  | **—** |  | 8801 | **8801** |
| Contractors and services | 1358 | 116 | 54 | 5086 | **6614** |  |  | **6614** |
| Energy transmission |  |  |  |  | **—** |  | 2231 | **2231** |
| Energy power | 803 | 1015 | 1879 | 764 | **4461** | 137 | 114 | **4712** |
| Professional fees | 32 | 35 | 103 | 447 | **617** | 6261 | 1060 | **7938** |
| Other taxes | 20 | 76 | 97 | 2312 | **2505** | 376 | 21 | **2902** |
| Contingencies |  |  |  |  | **—** | 703 |  | **703** |
| Lease expense and similar arrangements | 111 | 182 | 137 |  | **430** | 283 | 226 | **939** |
| Third parties raw materials | 3257 | 6578 | 42051 | 13547 | **65433** |  |  | **65433** |
| Tax recoveries |  |  |  | (1087) | **(1087)** |  |  | **(1087)** |
| Others | 524 | 1219 | 1975 | 1613 | **5331** | 2720 | 6650 | **14701** |
| **Subtotal** | **12772** | **24971** | **76386** | **186958** | **301087** | **53428** | **95058** | **449573** |
| Own agricultural produce consumed | 31302 | 54536 | 26547 | 98669 | **211054** |  |  | **211054** |
| **Total** | **44074** | **79507** | **102933** | **285627** | **512141** | **53428** | **95058** | **660627** |

---

**7.&nbsp;&nbsp;&nbsp;&nbsp;Salaries and social security expenses**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Wages and salaries (i) | 132010 | 101818 | 89662 |
| Social security costs | 36932 | 30296 | 27430 |
| Equity-settled share-based compensation | 10227 | 6406 | 4316 |
|  | **179169** | **138520** | **121408** |

---

(i)Includes US$30,014, US$25,105 and US$32,714, capitalized in Property, Plant and Equipment for the years 2022, 2021 and 2020, respectively.

F- 38

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**8.&nbsp;&nbsp;&nbsp;&nbsp;Other operating (expense) / income, net**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Loss from commodity derivative financial instrument | (6842) | (15990) | (8320) |
| Gain / (loss) from disposal of other property items | 3718 | (397) | 2198 |
| Net (loss) / gain from fair value adjustment of investment property | (2961) | (4331) | 1077 |
| Gain from disposal of farmland and other assets (Note 21) |  |  | 2064 |
| Gain / (loss) from the sale of subsidiaries (Note 21) |  | 10 | (554) |
| Others | 7955 | 1940 | 5522 |
|  | **1870** | **(18768)** | **1987** |

---

**9.&nbsp;&nbsp;&nbsp;&nbsp;Financial results, net**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Finance income: |  |  |  |
| - Interest income | 5781 | 4081 | 4084 |
| -Foreign exchange gains, net | 19278 | 18939 |  |
| - Gain from interest rate/foreign exchange rate derivative financial instruments |  | 512 | 92 |
| - Other income | 249 | 13138 | 21878 |
| **Finance income** | **25308** | **36670** | **26054** |
| Finance costs: |  |  |  |
| - Interest expense | (50037) | (62536) | (58282) |
| - Finance cost related to lease liabilities | (31113) | (16502) | (12532) |
| - Cash flow hedge – transfer from equity (Note 2) | (40195) | (52650) | (24363) |
| - Foreign exchange losses, net |  |  | (109266) |
| - Taxes | (4862) | (7073) | (4559) |
| - Loss from interest rate/foreign exchange rate derivative financial instruments | (2384) |  |  |
| - Borrowings prepayment related expenses (Brazilian subsidiaries) |  | (3068) |  |
| -Finance discount |  | (3741) |  |
| - Other expenses | (9009) | (6111) | (4774) |
| **Finance costs** | **(137600)** | **(151681)** | **(213776)** |
| **Other financial results - Net (loss) / gain of inflation effects on monetary items** | **(2144)** | **11541** | **12064** |
| **Total financial results, net** | **(114436)** | **(103470)** | **(175658)** |

---

**10.&nbsp;&nbsp;&nbsp;&nbsp;Taxation**

Adecoagro is subject to the applicable general tax regulations in Luxembourg.

The Group's income tax has been calculated on the estimated assessable taxable results for the year at the rates prevailing in the respective foreign tax jurisdictions. The subsidiaries of the Group are required to calculate their income taxes on a separate basis according to the rules and regulations of the jurisdictions where they operate. Therefore, the Group is not legally permitted to compensate subsidiaries' losses against subsidiaries' income. The details of the provision for the Group's consolidated income tax are as follows:

F- 39

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**10.&nbsp;&nbsp;&nbsp;&nbsp;Taxation (continued)**

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Current income tax | (4655) | (4338) | (2840) |
| Deferred income tax | (22103) | (39499) | (9485) |
| **Income tax expense** | **(26758)** | **(43837)** | **(12325)** |

---

The statutory tax rate in the countries where the Group operates for all of the years presented are:

---

| | |
|:---|:---|
| **Tax Jurisdiction** | **Income Tax Rate** |
| Argentina (i) | 35% |
| Brazil | 34% |
| Uruguay | 25% |
| Spain | 25% |
| Luxembourg | 24.94% |
| Chile | 27% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In June 2021, the Argentine Government introduced changes to the income tax laws whereby it established an increasing rate scheme starting at 25% up to 35% for income tax gains over Pesos 76 million (0.4 million US$). The revised scheme was effective as from fiscal year 2021. It also established a 7% withholding tax for dividends.

Deferred tax assets and liabilities of the Group as of December 31, 2022 and 2021, without taking into consideration the offsetting of balances within the same tax jurisdiction, will be recovered or settled as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Deferred income tax asset to be recovered after more than 12 months | 127878 | 107552 |
| Deferred income tax asset to be recovered within 12 months | 17862 | 21976 |
| **Deferred income tax assets** | **145740** | **129528** |
| Deferred income tax liability to be settled after more than 12 months | (371047) | (367292) |
| Deferred income tax liability to be settled within 12 months | (67349) | (17763) |
| **Deferred income tax liability** | **(438396)** | **(385055)** |
| **Deferred income tax liability, net** | **(292656)** | **(255527)** |

---

The gross movement on the deferred income tax account is as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Beginning of year | (255527) | (162556) |
| Exchange differences | (30187) | (40644) |
| Changes of fair value valuation for farmlands | 25307 | (9953) |
| Acquisition of subsidiary (Note 21) | (1562) |  |
| Others | (1247) | (349) |
| Tax credit relating to cash flow hedge (i) | (7337) | (2526) |
| Income tax expense | (22103) | (39499) |
| **End of year** | **(292656)** | **(255527)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Relates to the gain or loss before income tax of cash flow hedge recognized in other comprehensive income amounting to US$15,621 for the year ended December 31, 2022 (2021: US$46,145; 2020: US$75,822); net of the reclassification from Equity to the Income Statement of US$40,388 for the year ended December 31, 2022 (2021: US$26,031; 2020: US$32,305).

F- 40

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**10.&nbsp;&nbsp;&nbsp;&nbsp;Taxation (continued)**

The movement in the deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Deferred income tax<br>liabilities** | **Property,<br>plant and<br>equipment** | **Investment property** | **Biological<br>assets** | **Others** | **Total** |
| **At January 1, 2021** | **268252** | **9878** | **10217** | **8555** | **296902** |
| Charged / (credited) to the statement of income | 43270 | (817) | (755) | (1811) | 39887 |
| Farmlands revaluation | 11469 | (1516) |  |  | 9953 |
| Exchange differences | 32167 | 2336 | 1797 | 2013 | 38313 |
| **At December 31, 2021** | **355158** | **9881** | **11259** | **8757** | **385055** |
| Charged / (credited) to the statement of income | 19318 | (1145) | 18105 | 232 | 36510 |
| Farmlands revaluation | (24271) | (1036) |  |  | (25307) |
| Acquisition of subsidiaries | 1562 |  |  |  | 1562 |
| Exchange differences | 37379 | 1279 | 1097 | 821 | 40576 |
| **At December 31, 2022** | **389146** | **8979** | **30461** | **9810** | **438396** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Deferred income tax<br>assets** | **Provisions** | **Tax loss<br>carry<br>forwards** | **Equity-settled<br>share-based<br>compensation** | **Borrowings** | **Biological<br>assets** | **Others** | **Total** |
| **At January 1, 2021** | **7281** | **67817** | **5171** | **51338** | **—** | **2739** | **134346** |
| Charged / (credited) to the statement of income | 1978 | 13108 |  | (13589) | 452 | (1561) | 388 |
| Tax charge relating to cash flow hedge |  | (2526) |  |  |  |  | (2526) |
| Exchange differences | 20 | 3158 |  | (2952) | (386) | (2171) | (2331) |
| Others |  |  | (349) |  |  |  | (349) |
| **At December 31, 2021** | **9279** | **81557** | **4822** | **34797** | **66** | **(993)** | **129528** |
| (Credited) / charged to the statement of income | (3900) | 29087 |  | (11115) | (66) | 401 | 14407 |
| Tax charge relating to cash flow hedge |  | (7337) |  |  |  |  | (7337) |
| Exchange differences | 1243 | 6888 |  | 2250 |  | 8 | 10389 |
| Others |  |  | (1247) |  |  |  | (1247) |
| **At December 31, 2022** | **6622** | **110195** | **3575** | **25932** | **—** | **(584)** | **145740** |

---

Tax loss carry forwards in Argentina and Uruguay generally expire within 5 years. Tax loss carry forwards in Brazil and Luxembourg do not expire. However, in Brazil, the taxable profit for each year can only be reduced by tax loss carry forward up to a maximum of 30%.

In order to fully realize the deferred tax asset, the Group will need to generate future taxable income in the countries where the tax loss carry forward were incurred. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible

.

F- 41

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**10.&nbsp;&nbsp;&nbsp;&nbsp;Taxation (continued)**

As of December 31, 2022, the Group's tax loss carry forwards and their corresponding jurisdictions are as follows:

---

| | | |
|:---|:---|:---|
| **Jurisdiction** | **Tax loss carry forward** | **Expiration period** |
| Argentina (1) | 175658 | 5 years |
| Brazil | 127838 | No expiration date. |
| Uruguay | 1546 | 5 years |
| Luxembourg | 23677 | No expiration date. |

---

(1) As of December 31, 2022, the aging of the determination tax loss carry forward in Argentina is as follows:

---

| | |
|:---|:---|
| **Year of generation** | **Amount** |
| 2018 | 26,606 |
| 2019 | 72,768 |
| 2020 | 15,288 |
| 2021 | 113 |
| 2022 | 60,883 |

---

The tax on the Group's profit before income tax differs from the theoretical amount that would arise using the tax rates applicable to profits in the respective countries as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Tax calculated at the tax rates applicable to profits in the respective countries | (43827) | (54291) | (4184) |
| Non-deductible items | (1921) | (3459) | (7642) |
| Effect of the changes in the statutory income tax rate in Argentina | (2237) | (31962) | 6324 |
| Unused tax losses |  | 482 | (710) |
| Tax losses where no deferred tax asset was recognized | (107) |  |  |
| Non-taxable income | 16879 | 13604 | 11060 |
| Previously unrecognized tax losses now recouped to reduce tax expenses <sup>(1)</sup> | 19419 | 38121 | 1529 |
| Effect of IAS 29 and tax adjustment per inflation in Argentina | (18195) | (6402) | (19239) |
| Others | 3231 | 70 | 537 |
| **Income tax expense** | **(26758)** | **(43837)** | **(12325)** |

---

<sup>(1)</sup> 2022 includes 16,044 of adjustment by inflation of tax loss carryforwards in Argentina (37,175 in 2021).

***Tax Inflation Adjustment in Argentina***

Laws 27,430, 27,468 and 27,541 introduced several amendments to the income tax inflation adjustments provided by t.he Income Tax Law. According to these provisions, and effective as from fiscal years beginning on or after January 1, 2018, the inflation adjustment procedure set out in Title VI of the Income Tax Law shall be applicable in fiscal years in which the variation of IPC price index, accumulated in the 36 months immediately preceding the end of the relevant fiscal year, is higher than 100%. As from its effectiveness, this procedure is applicable because the variation of the IPC reached the prescribed limits.

However, Section 39 of Law No. 24,073 suspended the application of the provisions of Title VI of the Income Tax Law relating to the income tax inflation adjustment since April 1, 1992 to certain items, such as, fixed assets, inventory, and tax loss carryforwards, among others.

F- 42

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**10.&nbsp;&nbsp;&nbsp;&nbsp;Taxation (continued)**

After the economic crisis of 2002, many taxpayers began to question the legality of the provisions suspending the income tax inflation adjustment. Also, the Argentine Supreme Court of Justice issued its verdict in the "Candy" case July 3, 2009 in which it stated that particularly for fiscal year 2002 and considering the serious state of disturbance of that year, the taxpayer could demonstrate that not applying the income tax inflation adjustment resulted in confiscatory income tax rates.

More recently, the Argentine Supreme Court of Justice applied a similar criterion to the 2010, 2011, 2012 and 2014 fiscal years in the cases brought by "Distribuidora Gas del Centro" (10/14/14, 06/02/15, 10/04/16 and 06/25/19), among others, enabling the application of income tax inflation adjustment for periods not affected by a severe economic crisis such as 2002.

The Company believes that the lack of application of the income tax inflation adjustment is confiscatory. Accordingly, based on the precedents and the opinion of external and internal tax advisors, the Company has adjusted all items for inflation including those suspended by Section 39 of Law 24, 073 as described above. The net effect of the inflation adjustment resulted in a deferred tax asset of US$53.2 million as of December 31, 2022.

The application of local tax laws require interpretation, and accordingly involves the application of judgement and is open to challenge by the relevant tax authorities. This gives rise to a level of uncertainty. Provisions for uncertain tax positions are established in accordance with IFRIC 23 based on an assessment of the range of likely tax outcomes in open years and reflecting the strength of technical arguments. Amounts are provided for individual tax uncertainties based on management's assessment of whether the most likely amount or an expected amount based on a probability weighted methodology is the more appropriate predicter of amounts that the Company is ultimately expected to settle. When making this assessment, the Company utilizes specialist in-house tax knowledge and experience and takes into consideration specialist tax advice from third party advisers on specific items. The Company has not provided any amount in this case based on its belief that it has solid arguments to support its position.

F- 43

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**11.&nbsp;&nbsp;&nbsp;&nbsp;Earnings per share**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Basic***

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of shares in issue during the period excluding ordinary shares held as treasury shares (Note 23).

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Profit from operations attributable to equity holders of the Group | 108138 | 130669 | 412 |
| Weighted average number of shares in issue (thousands) | 110079 | 115148 | 117453 |
| **Basic earnings per share** | **0.982** | **1.135** | **0.003** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Diluted***

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive potential shares. The Group has two categories of dilutive potential shares: equity-settled share options and restricted units. For these instruments, a calculation is done to determine the number of shares that could have been acquired at fair value, based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the equity-settled share options. During 2022, the share options outstanding average were 361 thousands (2021: 466 thousands; 2020: 261 thousands) share options outstanding.

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| Profit from operations attributable to equity holders of the Group | 108138 | 130669 | 412 |
| Weighted average number of shares in issue (thousands) | 110079 | 115148 | 117453 |
| Adjustments for: |  |  |  |
| - Employee share options and restricted units (thousands) | 361 | 466 | 261 |
| Weighted average number of shares for diluted earnings per share (thousands) | 110440 | 115614 | 117714 |
| **Diluted earnings per share** | **0.979** | **1.130** | **0.003** |

---

F- 44

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**12.&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net**

Changes in the Group's property, plant and equipment, net in 2022 and 2021 were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Farmlands** | **Farmland<br>improvements** | **Buildings and <br>facilities** | **Machinery, <br>equipment, <br>furniture and<br>fittings** | **Bearer plants** | **Others** | **Work in <br>progress** | **Total** |
| **At January 1, 2021** | | | | | | | | |
| Fair value for farmlands / Cost | 694166 | 44278 | 379666 | 743444 | 676516 | 25189 | 57740 | 2620999 |
| Accumulated depreciation |  | (22693) | (202062) | (647539) | (371687) | (18726) |  | (1262707) |
| Net book amount | **694166** | **21585** | **177604** | **95905** | **304829** | **6463** | **57740** | **1358292** |
| **At December 31, 2021** |  |  |  |  |  |  |  |  |
| Opening net book amount | 694166 | 21585 | 177604 | 95905 | 304829 | 6463 | 57740 | 1358292 |
| Exchange differences | 142390 | 2772 | 20923 | (4804) | (34433) | 20567 | 9299 | 156714 |
| Additions |  | 169 | 11681 | 55463 | 88530 | 2615 | 46371 | 204829 |
| Revaluation surplus | (126675) |  |  |  |  |  |  | (126675) |
| Reclassification from investment property | 1380 |  |  |  |  |  |  | 1380 |
| Transfers |  | (4773) | 23049 | 13471 | 149 | 104 | (32000) |  |
| Disposals |  | (8) | (126) | (4078) |  | (63) | (42) | (4317) |
| Reclassification to non-income tax credits (\*) |  |  |  | (303) |  |  |  | (303) |
| Depreciation |  | (3166) | (25452) | (72471) | (64093) | (2115) |  | (167297) |
| **Closing net book amount** | **711261** | **16579** | **207679** | **83183** | **294982** | **27571** | **81368** | **1422623** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Farmlands** | **Farmland<br>improvements** | **Buildings and<br>facilities** | **Machinery,<br>equipment,<br>furniture and<br>fittings** | **Bearer plants** | **Others** | **Work in<br>progress** | **Total** |
| **At December 31, 2021** | | | | | | | | |
| Fair value for farmlands / Cost | 711261 | 42438 | 435193 | 803193 | 730762 | 48412 | 81368 | 2852627 |
| Accumulated depreciation |  | (25859) | (227514) | (720010) | (435780) | (20841) |  | (1430004) |
| Net book amount | **711261** | **16579** | **207679** | **83183** | **294982** | **27571** | **81368** | **1422623** |
| **Year ended December 31, 2022** |  |  |  |  |  |  |  |  |
| Opening net book amount | 711261 | 16579 | 207679 | 83183 | 294982 | 27571 | 81368 | 1422623 |
| Exchange differences | 88546 | 1518 | 16237 | 19580 | 15447 | 1389 | 9149 | 151866 |
| Additions |  |  | 13489 | 62637 | 112614 | 3318 | 41960 | 234018 |
| Revaluation surplus | (72216) |  |  |  |  |  |  | (72216) |
| Acquisition of subsidiaries |  |  | 21331 |  |  |  |  | 21331 |
| Transfers |  | 2192 | 41167 | 10198 |  | (169) | (53388) |  |
| Disposals |  |  | (953) | (2278) |  | (103) |  | (3334) |
| Reclassification to non-income tax credits (\*) |  |  |  | (158) |  |  |  | (158) |
| Depreciation |  | (3547) | (30570) | (81950) | (70316) | (2392) |  | (188775) |
| **Closing net book amount** | **727591** | **16742** | **268380** | **91212** | **352727** | **29614** | **79089** | **1565355** |
| **At December 31, 2022** |  |  |  |  |  |  |  |  |
| Fair value for farmlands / Cost | 727591 | 46148 | 526464 | 893172 | 858823 | 52846 | 79089 | 3184133 |
| Accumulated depreciation |  | (29406) | (258084) | (801960) | (506096) | (23232) |  | (1618778) |
| **Net book amount** | **727591** | **16742** | **268380** | **91212** | **352727** | **29614** | **79089** | **1565355** |

---

(\*) Brazilian federal tax law allows entities to take a percentage of the total cost of the assets purchased as a tax credit. As of December 31, 2022 and 2021, ICMS (Imposto sobre Circulação de Mercadorias e Prestação de Serviços) tax credits were reclassified to trade and other receivables.

F- 45

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**12.&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net (continued)**

Depreciation is calculated using the straight-line method to allocate their cost over the estimated useful lives. Farmlands are not depreciated.

---

| | |
|:---|:---|
| Farmland improvements | 5-25 years |
| Buildings and facilities | 20 years |
| Furniture and fittings | 10 years |
| Computer equipment | 3-5 years |
| Machinery and equipment | 4-10 years |
| Vehicles | 4-5 years |
| Bearer plants | 6 years - based on productivity |

---

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date. Farmlands are measured at fair value using a sales comparison approach. prepared by an independent expert. Sale prices of comparable properties are adjusted considering the specific aspects of each property, the most relevant assumption being the price per hectare (Level 3). The Group estimated that, other factors being constant, a 10% reduction on the sales price for the year ended December 31, 2022 would have reduced the value of the farmlands on US$72.8 million (2021: US$71 million), which would impact, net of its tax effect on the "Revaluation surplus" item in the statement of Changes in Shareholders' Equity. Should farmlands be carried at historical cost, the net book value as of December 31, 2022 would have been US$294,8 million.

Depreciation charges are included in "Cost of production of Biological Assets," "Cost of production of manufactures products,""General and administrative expenses,""Selling expenses" and capitalized in "Property, plant and equipment" for the years ended December 31, 2022, 2021 and 2020.

During the year ended December 31, 2022, borrowing costs of US$3.3 million (2021:US$2.8 million) were capitalized as components of the cost of acquisition or construction for qualifying assets.

Certain of the Group's assets have been pledged as collateral to secure the Group's borrowings and other payables. The net book value of the pledged assets amounts to US$129.3 million as of December 31, 2022 (2021: US$124.6 million).

F- 46

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**13.&nbsp;&nbsp;&nbsp;&nbsp;Right of use assets, net**

&nbsp;&nbsp;&nbsp;&nbsp;Changes in the Group's right of use assets, net in 2022 and 2021 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Agricultural partnerships (\*)** | **Others** | **Total** |
| **At January 1, 2021** | | | |
| Opening net book amount | 192270 | 17424 | 209694 |
| Exchange differences | (10191) | (55) | (10246) |
| Additions and re-measurements | 95030 | 15497 | 110527 |
| Depreciation | (41138) | (8061) | (49199) |
| **Closing net book amount** | **235971** | **24805** | **260776** |
| **At December 31, 2022** |  |  |  |
| Opening net book amount | 235971 | 24805 | 260776 |
| Exchange differences | 13223 | 1593 | 14816 |
| Additions and re-measurements | 140724 | 7204 | 147928 |
| Depreciation | (56356) | (6983) | (63339) |
| **Closing net book amount** | **333562** | **26619** | **360181** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(\*)** Agricultural partnership has an average term of 6 years.

Depreciation charges are included in "Cost of production of Biological Assets,""Cost of production of manufactures products,""General and administrative expenses,""Selling expenses" and capitalized in "Property, plant and equipment" for the year ended December 31, 2022, 2021 and 2020.

**14.&nbsp;&nbsp;&nbsp;&nbsp;Investment property**

Changes in the Group's investment property in 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Beginning of the year | 32132 | 31179 |
| Net loss from fair value adjustment (Note 8) | (2961) | (4331) |
| Reclassification to property, plant and equipment (i) |  | (1380) |
| Exchange difference | 4159 | 6664 |
| **End of the year** | **33330** | **32132** |
| Fair value | 33330 | 32132 |
| Net book amount | **33330** | **32132** |

---

(i) Relates with the expiration of contracts with third parties.

Investment properties are measured at fair value using a sales comparison approach prepared by an independent expert. Sale prices of comparable properties are adjusted considering the specific aspects of each property, the most relevant assumption being the price per hectare (Level 3). The increase /decrease in the fair value of investment property is recognized in the Statement of income under the line item "Other operating income, net". The Group estimated that, other factors being constant, a 10% reduction on the sales price for the period ended December 31, 2022 and 2021 would have caused a reduction of US$3.3 million and US$3.2 million respectively in the value of the investment properties, which would impact the line item "Net gain from fair value adjustment

F- 47

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**15.&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net**

Changes in the Group's intangible assets, net in 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Goodwill** | **Software** | **Trademarks** | **Others** | **Total** |
| **At January 1, 2021** | | | | | |
| Cost | 14482 | 11799 | 9118 | 441 | 35840 |
| Accumulated amortization |  | (6535) | (1968) | (407) | (8910) |
| Net book amount | **14482** | **5264** | **7150** | **34** | **26930** |
| **Year ended December 31, 2021** |  |  |  |  |  |
| Opening net book amount | 14482 | 5264 | 7150 | 34 | 26930 |
| Exchange differences | 2144 | 595 | 1407 | (4) | 4142 |
| Additions |  | 1823 |  | 73 | 1896 |
| Amortization charge (i) |  | (1197) | (366) | (68) | (1631) |
| **Closing net book amount** | **16626** | **6485** | **8191** | **35** | **31337** |
| **At December 31, 2021** |  |  |  |  |  |
| Cost | 16626 | 14217 | 10525 | 510 | 41878 |
| Accumulated amortization |  | (7732) | (2334) | (475) | (10541) |
| Net book amount | **16626** | **6485** | **8191** | **35** | **31337** |
| **Year ended December 31, 2022** |  |  |  |  |  |
| Opening net book amount | 16626 | 6485 | 8191 | 35 | 31337 |
| Exchange differences | 1918 | 732 | 900 | 1 | 3551 |
| Additions |  | 2306 | 423 | 768 | 3497 |
| Amortization charge (i) |  | (1781) | (413) | (71) | (2265) |
| **Closing net book amount** | **18544** | **7742** | **9101** | **733** | **36120** |
| **At December 31, 2022** |  |  |  |  |  |
| Cost | 18544 | 17255 | 11848 | 1279 | 48926 |
| Accumulated amortization |  | (9513) | (2747) | (546) | (12806) |
| Net book amount | **18544** | **7742** | **9101** | **733** | **36120** |

---

(i)Amortization charges are included in "General and administrative expenses" and "Selling expenses" for the years ended December 31, 2022 and 2021, respectively. There were no impairment charges for any of the years presented (see Note 32 (a)).

The accompanying notes are an integral part of these consolidated financial statements.

F- 48

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**16.&nbsp;&nbsp;&nbsp;&nbsp;Biological assets**

Changes in the Group's biological assets in 2022 and 2021 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| | **Crops<br>(ii)** | **Rice<br>(ii)** | **Dairy** | **All other<br>segments** | **Sugarcane<br>(ii)** | **Total** |
| **Beginning of the year** | **54886** | **42729** | **18979** | **7257** | **71327** | **195178** |
| Increase due to purchases |  |  |  | 3732 |  | 3732 |
| Acquisition of subsidiaries (Note 21) |  | 1676 |  |  |  | 1676 |
| Initial recognition and changes in fair value of biological assets (i) | 65574 | 15323 | 27257 | (279) | 108066 | 215941 |
| Decrease due to harvest / disposals | (240469) | (80127) | (79474) | (6487) | (202298) | (608855) |
| Costs incurred during the year | 178922 | 67621 | 60826 | 3052 | 128308 | 438729 |
| Exchange differences | 7089 | 5530 | 2457 | 939 | 4028 | 20043 |
| **End of the year** | **66002** | **52752** | **30045** | **8214** | **109431** | **266444** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2021** | **2021** | **2021** | **2021** | **2021** | **2021** |
| | **Crops<br>(ii)** | **Rice<br>(ii)** | **Dairy** | **All other<br>segments** | **Sugarcane<br>(ii)** | **Total** |
| **Beginning of the year** | **43787** | **29062** | **12933** | **4703** | **75208** | **165693** |
| Increase due to purchases |  |  |  | 1559 |  | 1559 |
| Initial recognition and changes in fair value of biological assets (i) | 73990 | 43834 | 19895 | 1362 | 88659 | 227740 |
| Decrease due to harvest / disposals | (224788) | (99517) | (67230) | (4322) | (208175) | (604032) |
| Costs incurred during the year | 151971 | 62477 | 50323 | 2842 | 116252 | 383865 |
| Exchange differences | 9926 | 6873 | 3058 | 1113 | (617) | 20353 |
| **End of the year** | **54886** | **42729** | **18979** | **7257** | **71327** | **195178** |

---

(i) Biological asset with a production cycle of more than one year (that is dairy and cattle) generated "Initial recognition and changes in fair value of biological assets" amounting to US$26,978 for the year ended December 31, 2022 (2021: US$21,527). In 2022, an amount of US$4,653 (2021: US$1,824) was attributable to price changes, and an amount of US$22,325 (2021: US$19,433) was attributable to physical changes.

(ii) Biological assets that are measured at fair value within level 3 of the hierarchy.

F- 49

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**16.&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

Cost of production for the year ended December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |
| Salaries, social security expenses and employee benefits | 5098 | 11132 | 7592 | 624 | 11795 | **36241** |
| Depreciation and amortization |  |  |  |  | 5024 | **5024** |
| Depreciation of right of use assets |  |  |  |  | 42166 | **42166** |
| Fertilizers, agrochemicals and seeds | 68963 | 17220 |  | 9 | 46020 | **132212** |
| Fuel, lubricants and others | 1043 | 1452 | 1419 | 51 | 4636 | **8601** |
| Maintenance and repairs | 1678 | 6585 | 3979 | 342 | 3172 | **15756** |
| Freights | 4085 | 546 | 202 | 223 |  | **5056** |
| Contractors and services | 49521 | 22317 |  | 17 | 8620 | **80475** |
| Feeding expenses |  |  | 24940 | 372 |  | **25312** |
| Veterinary expenses |  |  | 3715 | 301 |  | **4016** |
| Energy power | 39 | 5447 | 1286 | 8 |  | **6780** |
| Professional fees | 551 | 403 | 309 | 2 | 489 | **1754** |
| Other taxes | 1270 | 184 | 14 | 69 | 128 | **1665** |
| Lease expense and similar arrangements | 45790 | 967 |  | 5 | 4978 | **51740** |
| Others | 884 | 1368 | 386 | 64 | 1280 | **3982** |
| **Subtotal** | **178922** | **67621** | **43842** | **2087** | **128308** | **420780** |
| Own agricultural produce consumed |  |  | 16984 | 965 |  | **17949** |
| **Total** | **178922** | **67621** | **60826** | **3052** | **128308** | **438729** |

---

F- 50

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**16.&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

Cost of production for the year ended December 31, 2021:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Crops** | **Rice** | **Dairy** | **All other<br>segments** | **Sugar,<br>Ethanol and<br>Energy** | **Total** |
| Salaries, social security expenses and employee benefits | 3622 | 8554 | 5978 | 800 | 9681 | **28635** |
| Depreciation and amortization |  |  |  |  | 4288 | **4288** |
| Depreciation of right of use assets |  |  |  |  | 34312 | **34312** |
| Fertilizers, agrochemicals and seeds | 55223 | 15549 |  |  | 45053 | **115825** |
| Fuel, lubricants and others | 691 | 745 | 1061 | 60 | 3298 | **5855** |
| Maintenance and repairs | 1021 | 7489 | 3106 | 345 | 2287 | **14248** |
| Freights | 3752 | 950 | 179 | 76 |  | **4957** |
| Contractors and services | 49213 | 23602 |  | 10 | 7072 | **79897** |
| Feeding expenses |  |  | 20534 | 373 |  | **20907** |
| Veterinary expenses |  |  | 3485 | 217 |  | **3702** |
| Energy power | 36 | 3666 | 1092 | 6 |  | **4800** |
| Professional fees | 430 | 187 | 104 | 6 | 408 | **1135** |
| Other taxes | 1339 | 118 | 10 | 97 | 53 | **1617** |
| Lease expense and similar arrangements | 34122 |  | 1 | 2 | 9024 | **43149** |
| Others | 2522 | 1617 | 762 | 29 | 776 | **5706** |
| **Subtotal** | **151971** | **62477** | **36312** | **2021** | **116252** | **369033** |
| Own agricultural produce consumed |  |  | 14011 | 821 |  | 14832 |
| **Total** | **151971** | **62477** | **50323** | **2842** | **116252** | **383865** |

---

Biological assets in December 31, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Non-current** |  |  |
| Cattle for dairy production (i) | 29483 | 18428 |
| Breeding cattle (ii) | 821 | 707 |
| Other cattle (ii) | 318 | 220 |
|  | **30622** | **19355** |
| **Current** |  |  |
| Breeding cattle (iii) | 7075 | 6330 |
| Other cattle (iii) | 562 | 551 |
| Sown land – crops (ii) | 66002 | 54886 |
| Sown land – rice (ii) | 52752 | 42729 |
| Sown land – sugarcane (ii) (iv) | 109431 | 71327 |
|  | **235822** | **175823** |
| **Total biological assets** | **266444** | **195178** |

---

(i)Classified as bearer and mature biological assets.

(ii)Classified as consumable and immature biological assets.

(iii)Classified as consumable and mature biological assets.

(iv)It includes 4,849 and 6,969 of crops planted in sugarcane farms.

F- 51

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**16.&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

The fair value less estimated point of sale costs of agricultural produce at the point of harvest amounted to US$522,894 for the year ended December 31, 2022 (2021: US$532,480).

The following table presents the Group's biological assets that are measured at fair value at December 31, 2022 and 2021 (See Note 17 for a the description of each fair value level):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Cattle for dairy production |  | 29483 |  | 29483 |  | 18428 |  | 18428 |
| Breeding cattle | 7896 |  |  | 7896 | 7037 |  |  | 7037 |
| Other cattle |  | 880 |  | 880 |  | 771 |  | 771 |
| Sown land – sugarcane |  |  | 109431 | 109431 |  |  | 71327 | 71327 |
| Sown land – crops |  |  | 66002 | 66002 |  |  | 54886 | 54886 |
| Sown land – rice |  |  | 52752 | 52752 |  |  | 42729 | 42729 |

---

There were no transfers between any levels during the year.

The following significant unobservable inputs were used to measure the Group's biological assets using the discounted cash flow valuation technique:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Unobservable<br>inputs** | **Range of unobservable inputs** | **Range of unobservable inputs** | **Relationship of unobservable<br>inputs to fair value** |
|  |  | **2022** | **2021** |  |
| Sown land – sugarcane | Sugarcane yield – tonnes per hectare; Sugarcane TRS (kg of sugar per ton of cane) Production Costs – US$ per hectare. (Include maintenance, harvest and leasing costs) | '-Sugarcane yield: 50-100 tonnes/ha - Sugarcane TRS: 120-140 kg of sugar/tonnes of cane - Maintenance costs: 500-800 US$/ha - Harvest costs: 6.0-12.0 US$/tonnes of cane - Leasing costs: 12.0-14.4 tonnes/ha | '-Sugarcane yield: 50-100 tonnes/ha - Sugarcane TRS: 120-140kg of sugar/tonnes of cane - Maintenance costs: 500-800 US$/ha - Harvest costs: 6.0-12.0 US$/ tonnes of cane - Leasing costs: 12.0-14.4 tonnes/ha | The higher the sugarcane yield, the higher the fair value. The higher the maintenance, harvest and leasing costs per hectare, the lower the fair value. The higher the TRS of sugarcane, the higher the fair value. |
| Sown land – crops | Crops yield – tonnes per hectare; Commercial Costs – US$ per hectare;<br>Production Costs – US$ per hectare. | '- Crops yield: 1.00 – 5.6 tonnes/ha for Wheat, 1.6 – 13 tonnes/ha for Corn, 0.4 - 5.0 tonnes/ha for Soybean, 0.9 - 2.2 for Sunflower and 1.8 - 5.1 tonnes/ha for Peanut - Commercial Costs: 13-45 US$/tonnes for Wheat, 16-65 US$/tonnes for Corn, 21-65 US$/tonnes for Soybean, 17-36 US$/tonnes for Sunflower and 28-46 US$/ha for Peanut - Production Costs: 200-840 US$/ha for Wheat, 325-1500 US$/ha for Corn, 260-1100 US$/ha for Soybean, 280-890 US$/ha for Sunflower and 756-2000 US$/ha for Peanut | '- Crops yield: 0.85 – 5.6 tonnes/ha for Wheat, 3.0 – 10 tonnes/ha for Corn, 1.1 - 4.0 tonnes/ha for Soybean, 1.7-2.5 for Sunflower and 2.5 - 3.6 tonnes/ha for Peanut<br>- Commercial Costs: 17-54 US$/ha for Wheat, 14-62 US$/ha for Corn, 19-65 US$/ha for Soybean, 18-49 US$/ha for Sunflower and 36.0 - 69.0 US$/ha for Peanut<br>- Production Costs: 166-899 US$/ha for Wheat, 334-1449 US$/ha for Corn, 214-1096 US$/ha for Soybean, 308-1005 US$/ha for Sunflower and 802.0 - 2,060.0 US$/ha for Peanut | The higher the crops yield, the higher the fair value. The higher the commercial and direct costs per hectare, the lower the fair value. |
| Sown land – rice | Rice yield – tonnes per hectare;<br>Commercial Costs – US$ per hectare;<br>Production Costs – US$ per hectare. | '-Rice yield: 1.4 -9.2 tonnes/ha - Commercial Costs: 3-23 US$/ha - Production Costs: 760-1250 US$/ha | '-Rice yield: 3.2 -10.1 tonnes/ha<br>-Commercial Costs: 8-25 US$/ha<br>-Production Costs: 810-1300 US$/ha | The higher the rice yield, the higher the fair value. The higher the commercial and direct costs per hectare, the lower the fair value. |

---

F- 52

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**16.&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

As of December 31, 2022, the impact of a reasonable 10% increase (decrease) in estimated costs, with all other variables held constant, would result in a decrease (increase) in the fair value of the Group's biological asset less cost to sell of US$18.5 million for sugarcane, US$3.8 million for crops and US$6.0 million for rice.

As of December 31, 2021, the impact of a reasonable 10% increase (decrease) in estimated costs, with all other variables held constant, would result in a decrease (increase) in the fair value of the Group's biological asse less cost to sell of US$14.8 million for sugarcane, US$5.4 million for crops and US$4.9 million for rice.

**17.&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments by category**

The Group classified its financial assets in the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Financial assets at fair value through profit or loss***

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as held for trading unless they are designated as hedges. For all years presented, the Group's financial assets at fair value through profit or loss comprise mainly short-term investment and derivative financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Financial assets at amortized cost.***

Financial assets at amortized cost, namely loans and receivables, are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables comprise "trade and other receivables" and "cash and cash equivalents" in the statement of financial position.

The following tables show the carrying amounts of financial assets and financial liabilities by category of financial instrument and reconciliation to the corresponding line item in the statements of financial position, as appropriate. Since the line items "Trade and other receivables, net" and "Trade and other payables" contain both financial instruments and non-financial assets or liabilities (such as other tax receivables or advance payments for services to be received in the future), the reconciliation is shown in the columns headed "Non-financial assets" and "Non-financial liabilities".

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Financial assets at amortized cost** | **Financial assets at fair<br>value through<br>profit or loss** | **Subtotal<br>financial<br>assets** | **Non-<br>financial<br>assets** | **Total** |
| **December 31, 2022** | | | | | |
| **Assets as per statement of financial position** | | | | | |
| Trade and other receivables | 108025 |  | 108025 | 120353 | 228378 |
| Derivative financial instruments |  | 5342 | 5342 |  | 5342 |
| Restricted short term investment |  | 98571 | 98571 |  | 98571 |
| Cash and cash equivalents | 230653 |  | 230653 |  | 230653 |
| **Total** | **338678** | **103913** | **442591** | **120353** | **562944** |

---

F- 53

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**17.&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments by category (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Financial<br>liabilities at<br>amortized cost** | **Liabilities at<br>fair value<br>through profit<br>or loss** | **Subtotal<br>financial<br>liabilities** | **Non-<br>financial<br>liabilities** | **Total** |
| **Liabilities as per statement of financial position** | | | | | |
| Trade and other payables | 214990 |  | 214990 | 44617 | 259607 |
| Borrowings (i) | 1007752 |  | 1007752 |  | 1007752 |
| Leases Liabilities | 337980 |  | 337980 |  | 337980 |
| Derivative financial instruments (i) |  | 3057 | 3057 |  | 3057 |
| **Total** | **1560722** | **3057** | **1563779** | **44617** | **1608396** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Financial assets at amortized cost** | **Financial assets at fair<br>value through<br>profit or loss** | **Subtotal<br>financial<br>assets** | **Non-<br>financial<br>assets** | **Total** |
| **December 31, 2021** | | | | | |
| **Assets as per statement of financial position** | | | | | |
| Trade and other receivables | 101371 |  | 101371 | 86709 | 188080 |
| Derivative financial instruments |  | 1585 | 1585 |  | 1585 |
| Cash and cash equivalents | 199766 |  | 199766 |  | 199766 |
| **Total** | **301137** | **1585** | **302722** | **86709** | **389431** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Financial<br>liabilities at<br>amortized cost** | **Liabilities at<br>fair value<br>through profit<br>or loss** | **Subtotal<br>financial<br>liabilities** | **Non-<br>financial<br>liabilities** | **Total** |
| **Liabilities as per statement of financial position** | | | | | |
| Trade and other payables | 153459 |  | 153459 | 15571 | 169030 |
| Borrowings (i) | 817651 |  | 817651 |  | 817651 |
| Leases Liabilities | 246854 |  | 246854 |  | 246854 |
| Derivative financial instruments (i) |  | 1283 | 1283 |  | 1283 |
| **Total** | **1217964** | **1283** | **1219247** | **15571** | **1234818** |

---

(i) The Group formally documents and designates cash flow hedging relationships to hedge the foreign exchange rate risk of a portion of its highly probable future sales in U.S. Dollars using a portion of its borrowings denominated in U.S. Dollars, currency forwards and foreign currency floating-to-fixed interest rate swaps (See Note 2 for details).

Because of the short maturities of most trade accounts receivable and payable, other receivables and liabilities, and cash and cash equivalents, their carrying amounts at the closing date do not differ significantly from their respective fair values. The fair value of long-term borrowings is disclosed in Note 26.

F- 54

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**17.&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments by category (continued)**

Income, expense, gains and losses on financial instruments can be assigned to the following categories:

---

| | | | |
|:---|:---|:---|:---|
| | **Financial asset / liabilities at amortized cost** | **Assets/ liabilities<br>at fair value<br>through profit or<br>loss** | **Total** |
| **December 31, 2022** | | | |
| Interest income (i) | 5117 | 664 | **5781** |
| Interest expense (i) | (50037) |  | **(50037)** |
| Foreign exchange gain (i) | 19278 |  | **19278** |
| Loss from derivative financial instruments (ii) | (4472) | (4754) | **(9226)** |
| Finance cost related to lease liabilities | (31113) |  | **(31113)** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Financial assets / liabilities at amortized cost** | **Assets/ liabilities<br>at fair value<br>through profit or<br>loss** | **Total** |
| **December 31, 2021** | | | |
| Interest income (i) | 4081 |  | **4081** |
| Interest expense (i) | (62536) |  | **(62536)** |
| Foreign exchange gains losses (i) | 18939 |  | **18939** |
| Loss from derivative financial instruments (ii) |  | (15478) | **(15478)** |
| Finance cost related to lease liabilities | (16502) |  | **(16502)** |

---

(i)Included in "Financial Results, net" in the consolidated statement of income.

(ii)Included in "Other operating income, net" and "Financial Results, net" in the consolidated statement of income.

***Determining fair values***

IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 13. This valuation hierarchy provides for three levels. The allocation reflects which of the fair values derive from transactions in the market and where valuation is based on models because market transactions are lacking. The level in the fair value hierarchy is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

As of December 31, 2022 and 2021, the financial instruments recognized at fair value on the statement of financial position comprise derivative financial instruments.

In the case of Level 1, valuation is based on unadjusted quoted prices in active markets for identical financial assets that the Group can refer to at the date of the statement of financial position. The financial instruments the Group has allocated to this level mainly comprise crop futures and options traded on the stock market.

Derivatives not traded on the stock market allocated to Level 2 are valued using models based on observable market data. The financial instruments the Group has allocated to this level mainly comprise interest-rate swaps and foreign-currency interest-rate swaps.

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no observable market data are available. The Group does not have financial instruments allocated to this level for any of the years presented.

F- 55

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**17.&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments by category (continued)**

The following tables present the Group's financial assets and financial liabilities that are measured at fair value as of December 31, 2022 and 2021 and their allocation to the fair value hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Level 1** | **Level 2** | **Total** |
| **Assets** | | | | |
| Derivative financial instruments | 2022 | 134 | 5208 | **5342** |
| Restricted short-term investment <sup>(1)</sup> | 2022 | 98571 |  | **98571** |
| Derivative financial instruments | 2021 | 828 | 757 | **1585** |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments | 2022 | (2800) | (257) | **(3057)** |
| Derivative financial instruments | 2021 | (1283) |  | **(1283)** |

---

<sup>(1)</sup> US-Treasury Bills with maturity from the date of acquisition longer than 90 days used as collateral for short-term borrowings. These investments are not available for use by other entities of the Group. See Note 26.

There were no transfers within level 1 and 2 during the years ended December 31, 2022 and 2021.

When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Group uses a range of valuation models for this purpose, details of which may be obtained from the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Class** | **Pricing Method** | **Parameters** | **Pricing Model** | **Level** | **Total** |
| Futures | Quoted price |  |  | 1 | (2689) |
| Non derivable future ("NDF") | Quoted price | Swap curve | Present value method | 2 | (160) |
| NDF | Quoted price | Foreign-exchange curve | Present value method | 1 | 23 |
| Interest-rate swaps | Theoretical price | Money market interest-rate curve | Present value method | 2 | 5111 |
| US-Treasury Bills | Quoted price |  |  | 1 | 98571 |

---

F- 56

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**18.&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables, net**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Non-current** |  |  |
| Advances to suppliers | 3680 | 952 |
| Income tax credits | 9119 | 6862 |
| Non-income tax credits (i) | 18688 | 19156 |
| Judicial deposits | 1831 | 1674 |
| Receivable from disposal of subsidiary (Note 21) | 8478 | 9830 |
| Other receivables | 2762 | 3757 |
| **Non-current portion** | **44558** | **42231** |
| **Current** |  |  |
| Trade receivables | 81707 | 63726 |
| Less: Allowance for trade receivables | (4266) | (3023) |
| **Trade receivables – net** | **77441** | **60703** |
| Prepaid expenses | 6875 | 9405 |
| Advances to suppliers | 42966 | 19074 |
| Income tax credits | 1089 | 1846 |
| Non-income tax credits (i) | 37936 | 29414 |
| Receivable from disposal of subsidiary (Note 21) | 4664 | 17259 |
| Cash collateral | 1365 | 21 |
| Other receivables | 11484 | 8127 |
| **Subtotal** | **106379** | **85146** |
| **Current portion** | **183820** | **145849** |
| **Total trade and other receivables, net** | **228378** | **188080** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Includes US$158 (2021: US$303) reclassified from property, plant and equipment.

The fair values of current trade and other receivables approximate their respective carrying amounts due to their short-term nature. The fair values of non-current trade and other receivables approximate their carrying amount, as the impact of discounting is not significant.

The carrying amounts of the Group's trade and other receivables are denominated in the following currencies (expressed in U.S. Dollars):

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Currency** | | |
| U.S. Dollar | 89,760 | 62,604 |
| Argentine Peso | 54,801 | 55,260 |
| Uruguayan Peso | 2,229 | 460 |
| Brazilian Reais | 81,588 | 69,756 |
| | **228,378** | **188,080** |

---

As of December 31, 2022 trade receivables of US$22,933 (2021: US$11,224) were past due but not impaired. The aging analysis of these receivables indicates that US$741 and US$717 are over 6 months in December 31, 2022 and 2021, respectively.

F- 57

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**18.&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables, net (continued)**

Effective January 1, 2018, for trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Delinquency in payments is an indicator that a receivable may be impaired. However, management considers all available evidence in determining when a receivable is impaired. Generally, trade receivables, which are more than 180 days past due are fully provided for. However, certain receivables 180+ days overdue are not provided for based on a case-by-case analysis of credit quality analysis. Furthermore, receivables, which are not 180+ days overdue, may be provided for if specific analysis indicates a potential impairment.

Movements on the Group's allowance for trade receivables are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2022** | **2021** | **2020** |
| **At January 1** | **3023** | **3965** | **3773** |
| Charge of the year | 3570 | 2022 | 2192 |
| Unused amounts reversed | (661) | (970) | (769) |
| Used during the year | (100) | (1456) | (446) |
| Exchange differences | (1566) | (538) | (785) |
| **At December 31** | **4266** | **3023** | **3965** |

---

The creation and release of allowance for trade receivables have been included in "Selling expenses" in the statement of income. Amounts charged to the allowance account are generally written off, when there is no expectation of recovering additional cash.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.

As of December 31, 2022, approximately 72% (2021: 53%) of the outstanding unimpaired trade receivables (neither past due not impaired) relate to sales to 20 well-known multinational companies with good credit quality standing, including but not limited to CDA Alimentos S.A., Intersnack Procurement BV, YPF S.A., Taurus Distribuidora de Petroleo Ltda., Cargill S.A.C.I., Schettino hermanos S.R.L., among others. Most of these entities or their parent companies are externally credit-rated. The Group reviews these external ratings from credit agencies.

The remaining percentage as of December 31, 2022 and 2021 of the outstanding unimpaired trade receivables (neither past due nor impaired) relate to sales to a dispersed large quantity of customers for which external credit ratings may not be available. However, the total base of customers without an external credit rating is relatively stable.

New customers with less than six months of history with the Group are closely monitored. The Group has not experienced credit problems with these new customers to date. The majority of the customers for which an external credit rating is not available are existing customers with more than six months of history with the Group and with no defaults in the past. A minor percentage of customers may have experienced some non-significant defaults in the past but fully recovered.

**19.&nbsp;&nbsp;&nbsp;&nbsp;Inventories**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Raw materials | 121,306 | 101,270 |
| Finished goods (Note 5) | 152,716 | 138,254 |
| | **274,022** | **239,524** |

---

F- 58

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**20.&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Cash at bank and on hand | 146,242 | 152,721 |
| Short-term bank deposits | 84,411 | 47,045 |
| | **230,653** | **199,766** |

---

**21.&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions and disposals**

**Acquisitions**

*Acquisition of subsidiaries of Viterra Group in Argentina and Uruguay*

On May 3, 2022, (the "Closing Date") the Group, through certain subsidiaries consummated the acquisition of the rice operations in Uruguay and Argentina of the Viterra Group, comprising a 100% ownership of Molinos Libres S.A. (Argentina), Viterra Uruguay S.A. (Uruguay) and Paso Dragón S.A. (Uruguay). The transaction also included the acquisition of certain leasing agreements. All of the acquired subsidiaries form part of the Rice Business Segment.

The terms and conditions of the agreement contemplate the payment, subject to adjustments, of a purchase price of approximately US$17.7 million payable in three annual installments and the assumption of the existing financial debt for an amount of US$17.9 million. At Closing Date, the Group paid the first installments of US$2 million and US$8 million of the assumed debt.

In addition, the agreement provides for a cash contingent payment of US$1,215, which will be payable only if certain conditions are met.

The Company has made an allocation of the estimated purchase price to the identifiable assets acquired and liabilities assumed based on their fair values at acquisition date. The Company has made significant assumptions and estimates in determining the purchase price, including the contingent payment and the allocation of the estimated purchase price in these consolidated financial statements.

As the fair value of the identifiable net assets acquired was greater than the total consideration paid, negative goodwill arises on the acquisition. The negative goodwill is recognized as "Bargain purchase gain on acquisition" in the income statement for the year end December 31, 2022 reflecting the opportunity to acquire the rice operations in Argentina and Uruguay from an outgoing market player.

The following table summarizes the purchase price:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Purchase consideration:** | |
| &nbsp;&nbsp;Amount paid in cash | 1512 |
| &nbsp;&nbsp;Amounts to be paid in installments (\*) | 16242 |
| &nbsp;&nbsp;**Total purchase consideration** | **17754** |
| Fair value of net assets acquired | 27507 |
| &nbsp;&nbsp;**Bargain purchase on acquisition over the total purchase consideration** | **9753** |

---

During 2022, an amount of US$634 of the installments was paid.

(\*) Amounts to be paid in installments were discounted at present value as of the date of acquisition at a 6.5% discount rate.

F- 59

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**21.&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions and disposals (continued)**

The assets and liabilities at the date of acquisition are as follows:

---

| | |
|:---|:---|
| Cash and cash equivalents | 3266 |
| Trade and other receivables | 21068 |
| Inventories | 50891 |
| Biological assets | 1676 |
| Property, plant and equipment | 21479 |
| **Total Assets** | **98380** |
| Trade and other payables | (50062) |
| Payroll and other liabilities | (961) |
| Borrowings | (17738) |
| Deferred income tax liabilities | (1812) |
| Provision for other liabilities | (300) |
| **Total Liabilities** | **(70873)** |
| **Fair value of Net Assets Acquired** | **27507** |

---

The Company used a replacement cost method or a market approach, as appropriate, to measure the fair value of property, plant and equipment.

All other net tangible assets were valued at their respective carrying amounts, as the Company believes that these amounts approximate their current fair values.

A decrease in the fair value of assets acquired, or an increase in the fair value of liabilities assumed, from those preliminary valuations would result in a dollar-for-dollar corresponding decrease in the "Bargain purchase on acquisition".

Acquisition-related costs of US$193 are included in General and administrative expenses in the Consolidated Statement of Income.

The following table summarizes the sales of goods and services rendered and profit from operations of the subsidiaries acquired included in the consolidated financial statements of income for the year end December 31, 2022 as from the date of acquisition:

---

| | |
|:---|:---|
| | **Period from the date of acquisition to December 31 2022** |
| &nbsp;&nbsp;Sales of goods and services rendered | 61,363 |
| &nbsp;&nbsp;Profit from operations  | 6,131 |

---

If the acquisition had occurred on January 1, 2022 consolidated pro-forma sales of goods and services rendered, profit from operations and profit for the year, for the year ended 31 December 2022 would have been US$1,369,462, US$249,462 and US$106,950.

**Disposals**

In December 2020, the Group completed the sale of its wholly owned subsidiaries Global Seward S.L.U. and Peak City S.L.U., which main underlying asset was the Huelen Farm at a sale price of US$30.1 million. The balance was fully collected by the end of 2022. This transaction resulted in a loss before tax of US$0.6 million included in the line item "Other operating income", and also in the reclassification of Revaluation surplus to retained earnings of US$2.2 million.

F- 60

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**21.&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions and disposals (continued)**

In June 2020, the Company collected US$12.1 million in consideration of the sale of 811.70 hectares farm in the Province of Santa Fe, Argentina. This transaction resulted in a gain before tax of US$2.1 million included in the line item "Other operating income" and also in the reclassification of Revaluation surplus to retained earnings before income tax of US$8.0 million reflected in the Statements of changes in shareholders equity.

**22.&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' contributions**

The share capital of the Group is represented by common shares with a nominal value of US$1.5 per share and one vote each.

---

| | | |
|:---|:---|:---|
| | **Number of shares** | **Share capital and<br>share premium** |
| **At January 1, 2020** | **122382** | **1085312** |
| Restricted shares granted and units vested (Note 23) |  | 4182 |
| Purchase of own shares |  | (3106) |
| **At December 31, 2020** | **122382** | **1086388** |
| Restricted shares granted and units vested (Note 23) |  | 3594 |
| Purchase of own shares |  | (55349) |
| **At December 31, 2021** | **122382** | **1034633** |
| Reduction of issued share capital of the company | (11000) | (16500) |
| Employee share options exercised (Note 22) (1) |  | 2432 |
| Restricted shares granted (Note 23) |  | 4647 |
| Purchase of own shares |  | (29970) |
| Dividends paid to shareholders |  | (35000) |
| **At December 31, 2022** | **111382** | **960242** |

---

(1)Treasury shares were used to settle these options, units and grants.

**Decision of the Extraordinary General Shareholders' meeting**

On April 20, 2022 the extraordinary general meeting of the shareholders of the Company resolved to reduce the issued share capital of the Company by an amount of $16,500,000 by the cancellation of 11,000,000 shares with a nominal value of $1.50 each held in treasury by the Company so that, as from April 20, 2022, the issued share capital amounts to $167,072,722.50, represented by 111,381,815 shares in issue (of which 52,254 are treasury shares) with a nominal value of $1.50 each.

**Share Repurchase Program**

On September 24, 2013, the Board of Directors of the Company has authorized a share repurchase program for up to 5% of its outstanding shares. The repurchase program has commenced on September 24, 2013 and is reviewed by the Board of Directors after each 12-month period. On August 9, 2022, the Board of Directors approved the extension of the program for an additional twelve-month period, ending September 23, 2023.

Repurchases of shares under the program are made from time to time in open market transactions in compliance with the trading conditions of Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, and applicable rules and regulations. The share repurchase program does not require Adecoagro to acquire any specific number or amount of shares and may be modified, suspended, reinstated or terminated at any time in the Company's discretion and without prior notice.

F- 61

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**22.&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' contributions (continued)**

As of December 31, 2022, the Company repurchased 21,948,707 shares under this program, of which 7,862,922 have been applied to some exercise of the Company's stock option plan and restricted stock units and the grant of restricted shares. In 2022, 2021 and 2020 the Company repurchased shares for an amount of US$36.8 million; US$66.5 million and US$4.4 million respectively. The outstanding treasury shares as of December 31, 2022 totaled 3,190,597 common shares.

**Dividend distribution**

On April 20, 2022 the general meeting of the shareholders of the Company resolved the payment of an annual dividend of US$35 million to be paid to outstanding shares in two installments in May and November. The first payment, of US$17.5 million (0.1572 per share) was made on May 17, 2022 and the second also US$17.5 million (0.1602 per share) installment was made on November 17, 2022.

**Annual Dividend Proposal**

On March 7, 2023 the Company's Board of Directors proposed, for the approval of the Annual General Shareholders' meeting to be held on April 19, 2023, the payment of an annual dividend of $35 million to be paid to outstanding shares in two installments in May and November of 2023. These Consolidated Financial Statements do not reflect this dividend payable.

F- 62

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**23.&nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based payments**

The Group has set a "2004 Incentive Option Plan" (collectively referred to as "Option Schemes") under which the Group granted equity-settled options to senior managers and selected employees of the Group's subsidiaries with a term of ten years. Additionally, in 2010 the Group has set a "Adecoagro Restricted Share and Restricted Stock Unit Plan" (referred to as "Restricted Share Plan") under which the Group grants restricted stock units and restricted shares to senior and medium management and key employees of the Group's subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Option Schemes**

The fair value of the options under the Option Schemes was measured at the date of grant using the Black-Scholes valuation technique.

As of the date of these financial statements all options has already been vested and expensed.

*The Adecoagro/ IFH 2004 Stock Incentive Option Plan* was effectively established in 2004 and is administered by the Compensation Committee of the Company. Options are exercisable over a ten-year period. In May 2014 this period was extended for another ten year-period.

Movements in the number of equity-settled options outstanding and their related weighted average exercise prices under the Adecoagro/ IFH 2004 Stock Incentive Option Plan are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **Average<br>exercise<br>price per<br>share** | **Options<br>(thousands)** | **Average<br>exercise<br>price per <br>Share** | **Options<br>(thousands)** | **Average<br>exercise<br>price per <br>Share** | **Options<br>(thousands)** |
| At January 1 | 6.66 | 1634 | 6.66 | 1634 | 6.66 | 1634 |
| Exercised | 6.77 | (313) |  |  |  |  |
| **At December 31** | **6.66** | **1321** | **6.66** | **1634** | **6.66** | **1634** |

---

Options outstanding at year end under this Plan have the following expiry date and exercise prices:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Exercise<br>price per share** | **Shares (in thousands)** | **Shares (in thousands)** | **Shares (in thousands)** |
| Expiry date (i): | **Exercise<br>price per share** | **2022** | **2021** | **2020** |
| May 1, 2024 | 5.83 | 400 | 496 | 496 |
| May 1, 2025 | 5.83 | 369 | 452 | 452 |
| January 1, 2026 | 5.83 | 124 | 142 | 142 |
| February 16, 2026 | 7.11 | 84 | 103 | 103 |
| October 1, 2026 | 8.62 | 344 | 441 | 441 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On May 2014, the Board of Directors decided to extend the expired date of the Plan.

F- 63

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**23.&nbsp;&nbsp;&nbsp;&nbsp;Equity-settled unit-based payments (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Restricted Share / Restricted Stock Unit Plan**

The Restricted Share and Restricted Stock Unit Plan was effectively established in 2010 and amended in November 2011. It is administered by the Compensation Committee of the Company. Restricted shares or units under these Plan vest over a 3-year period from the date of grant at 33% on each anniversary of the grant date. Participants are entitled to receive one common share of the Company for each restricted share or restricted unit granted. There are no performance requirements for the delivery of common shares, except that a participant's employment with the Group must not have been terminated prior to the relevant vesting date. If the participant ceases to be an employee for any reason, any unvested restricted share or unit shall not be converted into common shares. The maximum number of ordinary shares with respect to which awards may be made under the Plan is 8,115,495, of which 7,889,063 have already been vested. The maximum numbers of ordinary shares are revised annually.

At December 31, 2022, the Group recognized compensation expense US$10.9 million related to the restricted stock units granted under the Restricted Share Plan (2021: US$6.6 million and 2020: US$4.4 million).

The restricted shares under the Restricted Share Plan were measured at fair value at the date of grant.

Key grant-date fair value and other assumptions under the Restricted Share Plan are detailed below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Grant Date** | **Apr 1,<br>2020** | **May 12,<br>2020** | **Apr 1,<br>2021** | **May 13,<br>2021** | **Apr 1,<br>2022** | **Apr 20,<br>2022** |
| Fair value | 5.65 | 7.45 | 7.84 | 9.54 | 10.87 | 12.60 |

---

Movements in the number of restricted shares outstanding under the Restricted Share Plan are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Restricted shares (thousand)** | **Restricted shares (thousand)** | **Restricted shares (thousand)** | **Restricted stock units (thousands)** | **Restricted stock units (thousands)** |
| | **2022** | **2021** | **2020** | **2021** | **2020** |
| At January 1 | 1766 | 1222 | 750 | 174 | 508 |
| Granted (1) | 1406 | 1067 | 751 |  |  |
| Forfeited | (43) | (32) | (24) |  | (10) |
| Vested | (828) | (491) | (255) | (174) | (324) |
| **At December 31** | **2301** | **1766** | **1222** | **—** | **174** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Approved by the Board of Directors of March 11, 2022 and the Shareholders Meeting of April 20, 2022.

**24.&nbsp;&nbsp;&nbsp;&nbsp;Legal and other reserves**

According to the laws of certain of the countries in which the Group operates, a portion of the profit of the year (5%) is separated to constitute legal reserves until they reach legal capped amounts. These legal reserves are not available for dividend distribution and can only be released to absorb losses. The legal limit of these reserves has not been met.

Legal and other reserves amount to US$22,187 as of December 31, 2022 (2021: US$14,643) and are included within the balance of retained earnings in the statement of changes in shareholders' equity.

The Company may make distributions in the form of dividends or otherwise to the extent that it has distributable retained earnings or available distributable reserves (including share premium) that result from the Stand Alone Financial Statements prepared in accordance with Luxembourg GAAP. No distributable retained earning result from the Stand Alone Financial Statements of the Company as of December 31, 2022, but the Company has distributable reserves in excess of US$824,114.

F- 64

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**24.&nbsp;&nbsp;&nbsp;&nbsp;Legal and other reserves (continued)**

In the other reserves line, it is included the benefit that the Company has regarding ICMS conceded by the government of the Estate of Mato Grosso do Sul. In accordance with the Complementary Law 160/17, grants related to ICMS, conceded by any Estate of Brazil, were considered as Investments Grants. This investment grants will not be computed to calculate income tax, since they were accounted as an Equity Reserve. This reserve cannot be distributed, unless income tax is paid on the reserve.

**25.&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Non-current** |  |  |
| Trade payables | 4175 |  |
| Payable from acquisition of subsidiary (Note 21) | 12646 |  |
| Other payables | 389 | 284 |
|  | **17210** | **284** |
| **Current** |  |  |
| Trade payables | 193127 | 151979 |
| Advances from customers | 35749 | 8705 |
| Taxes payable | 8868 | 6866 |
| Payable from acquisition of subsidiary (Note 20) | 3575 |  |
| Other payables | 1078 | 1196 |
|  | **242397** | **168746** |
| **Total trade and other payables** | **259607** | **169030** |

---

The fair values of current trade and other payables approximate their respective carrying amounts due to their short-term nature. The fair values of non-current trade and other payables approximate their carrying amounts, as the impact of discounting is not significant.

**26.&nbsp;&nbsp;&nbsp;&nbsp;Borrowings**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Non-current** |  |  |
| Senior Notes | 497901 | 497455 |
| Bank borrowings | 230082 | 208032 |
|  | **727983** | **705487** |
| **Current** |  |  |
| Senior Notes | 8250 | 8250 |
| Bank overdrafts | 48058 | 11768 |
| Bank borrowings | 223461 | 92146 |
|  | **279769** | **112164** |
| **Total borrowings** | **1007752** | **817651** |

---

As of December 31, 2022, total bank borrowings include collateralized liabilities of US$188,058 (2021: US$70,221). These loans are mainly collateralized by property, plant and equipment, sugarcane plantations, sugar export contracts, shares of certain subsidiaries of the Group and US Treasury Bills.

F- 65

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**26.&nbsp;&nbsp;&nbsp;&nbsp;Borrowings (continued)**

**Notes 2027**

On September 21, 2017, the Company issued senior notes (the "Notes") for a total amount of US$500 million, at an annual fixed rate of 6%. The Notes will mature on September 21, 2027. Interest on the Notes are payable semi-annually in arrears on March 21 and September 21 of each year. The total proceeds nets of expenses was US$495.7 million.

The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of our current and future subsidiaries. As of December 31, 2022, Adeco Agropecuaria S.A., Adecoagro Brasil Participações S.A., Adecoagro Vale do Ivinhema S.A., Pilagá S.A. and Usina Monte Alegre Ltda. are the only Subsidiary Guarantors.

The Notes contain customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions. As of December 31, 2022 and 2021 the Group was in compliance with these financial covenants.

**Debt maturity breakdown**

The maturity of the Group's borrowings and the Group's exposure to fixed and variable interest rates is as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Fixed rate:** |  |  |
| Less than 1 year | 272900 | 104349 |
| Between 1 and 2 years | 27720 | 12503 |
| Between 2 and 3 years | 2222 | 12500 |
| Between 3 and 4 years |  |  |
| More than 5 years | 497901 | 497455 |
|  | **800743** | **626807** |
| **Variable rate:** |  |  |
| Less than 1 year | 6869 | 7815 |
| Between 1 and 2 years | 35355 | 5075 |
| Between 2 and 3 years | 32851 | 31754 |
| Between 3 and 4 years | 80115 | 29255 |
| Between 4 and 5 years | 50211 | 71045 |
| More than 5 years | 1608 | 45900 |
|  | **207009** | **190844** |
|  | **1007752** | **817651** |

---

Borrowings incurred by the Group's subsidiaries in Brazil are repayable at various dates between January 2023 and November 2027 and bear either fixed interest rates ranging from 2.00% to 13.23% per annum or variable rates based on base-rates plus spreads ranging from 8.54% to 16.29% per annum. As of December 31, 2022 and 2021 there are no borrowings subject to LIBOR (six months).

Borrowings incurred by the Group's subsidiaries in Argentina are repayable at various dates between December 2022 and June 2028 and bear either fixed interest rates ranging from 0.0% and 9.2% per annum or variable rates based on LIBOR or other specific base-rates plus spreads of 4.0% for those borrowings denominated in U.S. Dollar, and a fixed interest rates ranging from 64.0% to 71.15% per annum for those borrowings denominated in Argentine pesos.

F- 66

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**26.&nbsp;&nbsp;&nbsp;&nbsp;Borrowings (continued)**

**Brazilian Subsidiaries**

**The main loans of the Group's Brazilian Subsidiaries are:**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Bank** | **Grant date** | **Nominal** <br>**amount** | **Nominal** <br>**amount** | **Capital outstanding as of December 31** | **Capital outstanding as of December 31** | **Capital outstanding as of December 31** | **Capital outstanding as of December 31** | **Maturity date** | **Annual interest rate** |
| **Bank** | **Grant date** | **Nominal** <br>**amount** | **Nominal** <br>**amount** | **2022** | **2022** | **2022** | **2021** | **Maturity date** | **Annual interest rate** |
| **Bank** | **Grant date** | **(In millions)** | **(In millions)** | **Millions of<br>Reais** | **Millions of<br>Reais** | **Millions of** <br>**equivalent**<br>**Dollars** | **Millions of<br>equivalent<br>Dollars** | **Maturity date** | **Annual interest rate** |
| Banco do Brasil / Itaú BBA (FINEM) (1) | September 2013 | R$ | 273.0 | R$ | 273.0 | 52.32 | 4.75 | January 2023 | 4.68% |
| Certificados Recebíveis do Agronegócio (CRA) | December 2019 | R$ | 400.0 | R$ | 400.0 | 76.66 | 83.68 | November 2027 | 3,80% + IPCA |
| Debênture | December 2020 | R$ | 400.0 | R$ | 400.0 | 76.66 | 80.10 | December 2026 | 4,24% + IPCA |
| Banco do Brasil (CCB) | December 2020 | R$ | 30.0 | R$ | 30.0 | 5.75 | 5.48 | January 2024 | CDI + 2,32% |
| Banco Itaú BBA (NCR) | April 2022 | R$ | 20.0 | R$ | 20.0 | 3.83 |  | March 2024 | 13.23% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Collateralized by (i) liens over the Ivinhema mill and equipment; and (ii) power sales contracts.

In December 2019, Adecoagro Vale do Ivinhema placed R$400.0 million in Certificados de Recebíveis do Agronegócio (CRA) adjustable by the IPCA (Brazilian official inflation rate), maturing in November 2027 and bearing an interest 3.80% per annum. This debt was issued with no guarantee.

The above mentioned loans, except the CRA, contain certain customary financial covenants and restrictions which require the Brazilian subsidiaries to meet pre-defined financial ratios, among other restrictions, as well as restrictions on the payment of dividends. These financial ratios are measured considering the statutory financial statements of the Brazilian Subsidiaries.

As of December 31, 2022 and 2021 the Group was in compliance with all financial covenants.

**Argentinian Subsidiaries**

**The main loans of the Group's Argentinian Subsidiaries are:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Bank** | **Grant date** | **Nominal<br>amount** | **Capital outstanding as of<br>December 31** | **Capital outstanding as of<br>December 31** | **Maturity date** | **Annual interest rate** |
| **Bank** | **Grant date** | **Nominal<br>amount** | **2022** | **2021** | **Maturity date** | **Annual interest rate** |
| **Bank** | **Grant date** | **(In millions)** | **(In millions)** | **(In millions)** | **Maturity date** | **Annual interest rate** |
| Rabobank (1) | 2018 | US$50.0 | 25.00 | 37.50 | June, 2024 | 6.17% |
| IFC Tranche A (2) | 2020 | US$12.6 | 10.66 | 12.35 | June, 2028 | 4% plus LIBOR |
| IFC Tranche B (2) | 2020 | US$9.4 | 7.96 | 9.22 | June, 2028 | 4% plus LIBOR |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Collateralized by the pledged of the shares of Dinaluca S.A., Compañía Agroforestal S.M.S.A. and Girasoles del Plata S.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Collateralized by a US$241.8 million mortgage over Carmen, Abolengo, San Carlos, Las Horquetas, and La Rosa farms, which are property of Adeco Agropecuaria S.A. A US$35.7 million mortgage over El Meridiano farm, which is property of Pilaga S.A. and a US$44.3 million mortgage over Santa Lucia farm, which is property of Bañados del Salado S.A.

F- 67

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**26.&nbsp;&nbsp;&nbsp;&nbsp;Borrowings (continued)**

**Loan with International Finance Corporation (IFC)**

In June 2020, our Argentine subsidiaries, Adeco Agropecuaria S.A., Pilagá S.A. and L3N S.A. entered into a US$100 million loan agreement with International Finance Corporation (IFC), member of the World Bank Group. The loan's tenor is eight years, including a two-year grace period, with a rate of LIBOR + 4%. In October 2020, US$22 million has been received. In December 2021, we entered into an amendment reducing the total amount to US$60 million, that the group could request the withdrawal until June, 2022. If the Company withdraw the full amount, the rate would be reduced to LIBOR + 3%

The loan contains customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions.

The above mentioned loans contain certain customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions, as well as restrictions on the payment of dividends. These financial ratios are measured considering the statutory financial statements of the Argentinian Subsidiaries.

As of December 31, 2022 and 2021 the Group was in compliance with all financial covenants.

The carrying amount of short-term borrowings is approximate its fair value due to the short-term maturity. Long term borrowings subject to variable rate approximate their fair value.The fair value of long-term subject to fix rate do not significant differ from their fair value. The fair value (level 2) of the notes as of December 31, 2022 and 2021 equals US$474.3 million and US$517.5 million, 94.86% and 103.49% of the nominal amount, respectively.

The breakdown of the Group's borrowing by currency is included in Note 2 - Interest rate risk.

Evolution of the Group's borrowings as December 31, 2022 and 2021 is as follow:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Amount at the beginning of the year** | 817651 | 971090 |
| Proceeds from long term borrowings | 41082 | 30972 |
| Payments of long term borrowings | (14012) | (108425) |
| Proceeds from short term borrowings | 347928 | 286115 |
| Payments of short term borrowings | (192648) | (328463) |
| Payments of interest (1) | (33189) | (49592) |
| Accrued interest | 51596 | 48791 |
| Acquisition of subsidiaries (Note 21) | 17738 |  |
| Exchange differences, inflation and translation, net | (30489) | (52693) |
| Others | 2095 | 19856 |
| **Amount at the end of the year** | **1007752** | **817651** |

---

(1) Excludes payment of interest related to trade and other payables.

**27. &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Lease liabilities** | | |
| Non-current | 283,549 | 201,718 |
| Current | 54,431 | 45,136 |
| | **337,980** | **246,854** |

---

F- 68

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**27.&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities (continued)**

The maturity of the Group's lease liabilities is as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Less than 1 year | 54431 | 45136 |
| Between 1 and 2 years | 61931 | 44847 |
| Between 2 and 3 years | 50839 | 38745 |
| Between 3 and 4 years | 41781 | 30085 |
| Between 4 and 5 years | 31231 | 24072 |
| More than 5 years | 97767 | 63969 |
|  | **337980** | **246854** |

---

Changes in the Group's lease liabilities, net in 2022 and 2021 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Agricultural "partnerships"** | **Others** | **Total** |
| **Amount at the beginning of the year 2021** | 178423 | 17349 | **195772** |
| Exchange differences | (11698) | 50 | **(11648)** |
| Additions and re-measurement | 93091 | 15409 | **108500** |
| Payments | (53206) | (9067) | **(62273)** |
| Finance cost related to lease liabilities | 15403 | 1100 | **16503** |
| **Closing net book amount** | **222013** | **24841** | **246854** |
| **Amount at the beginning of the year 2022** | 222013 | 24841 | **246854** |
| Exchange differences | 10230 | 4433 | **14663** |
| Additions and re-measurement | 145002 | 9521 | **154523** |
| Disposal | (3277) | (2644) | **(5921)** |
| Payments | (90897) | (12773) | **(103670)** |
| Finance cost related to lease liabilities | 29372 | 2159 | **31531** |
| **Closing net book amount** | **312443** | **25537** | **337980** |

---

**28.&nbsp;&nbsp;&nbsp;&nbsp;Payroll and social security liabilities**

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **Non-current** |  |  |
| Social security payable | 1581 | 1243 |
|  | **1581** | **1243** |
| **Current** |  |  |
| Salaries payable | 4050 | 2617 |
| Social security payable | 4693 | 3499 |
| Provision for vacations | 11487 | 8136 |
| Provision for bonuses | 9734 | 10799 |
|  | **29964** | **25051** |
| **Total payroll and social security liabilities** | **31545** | **26294** |

---

F- 69

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**29.&nbsp;&nbsp;&nbsp;&nbsp;Provisions for other liabilities**

The Group is subject to several laws, regulations and business practices of the countries where it operates. In the ordinary course of business, the Group is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving tax, labor and social security, administrative and civil and other matters. The Group accrues liabilities when it is probable that future costs will be incurred and it can reasonably estimate them. The Group bases its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material effect on its results of operations and financial condition or liquidity.

The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:

---

| | | | |
|:---|:---|:---|:---|
| | **Labor, legal and<br>other claims** | **Others** | **Total** |
| **At January 1, 2021** | **2864** | **1495** | **4359** |
| Additions | 917 | 3475 | 4392 |
| Used during year | (1028) | (1455) | (2483) |
| Exchange differences | (226) | (56) | (282) |
| **At December 31, 2021** | **2527** | **3459** | **5986** |
| Additions | (270) | 1816 | 1546 |
| Acquisition of subsidiaries | 300 |  | 300 |
| Used during year | (1237) | (3210) | (4447) |
| Exchange differences | 87 | (37) | 50 |
| **At December 31, 2022** | **1407** | **2028** | **3435** |

---

Analysis of total provisions:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Non current | 2,526 | 2,565 |
| Current | 909 | 3,421 |
| | **3,435** | **5,986** |

---

The Group is engaged in several legal proceedings, including tax, labor, civil, administrative and other proceedings in Brazil, which qualified as contingent liabilities for an aggregate claimed nominal amount of US$78.5 million and US$72.1 million as of December 31, 2022 and 2021, respectively. These amounts refers to a claim of the tax authorities in Brazil of the exclusion of the calculation base of Income Tax of the accelerated depreciation of rural activity as provided for in article 6 of Provisional Measure 2,159-70 / 01 and in Article 325 of the Income Tax Regulation / 18.

F- 70

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**30.&nbsp;&nbsp;&nbsp;&nbsp;Group companies**

The following table details the subsidiaries that comprised the Group as of December 31, 2022 and 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **2022** | **2021** |
| |<br>**Activities** |<br>**Country of<br>incorporation<br>and operation** | **Ownership<br>percentage<br>held if not<br>100%** | **Ownership<br>percentage<br>held if not<br>100%** |
| **Details of principal subsidiary undertakings:** |  |  |  |  |
| **Operating companies (unless otherwise stated):** |  |  |  |  |
| Adeco Agropecuaria S.A. | (a) | Argentina |  |  |
| Pilagá S.A. | (a) | Argentina | 99.94% | 99.94% |
| Cavok S.A. | (a) | Argentina | 51% | 51% |
| Establecimientos El Orden S.A. | (a) | Argentina | 51% | 51% |
| Bañado del Salado S.A. | (a) | Argentina |  |  |
| Agro Invest S.A. | (a) | Argentina | 51% | 51% |
| Forsalta S.A. | (a) | Argentina | 51% | 51% |
| Dinaluca S.A. | (a) | Argentina |  |  |
| Compañía Agroforestal S.M.S.A. | (a) | Argentina |  |  |
| Energía Agro S.A.U. | (a) | Argentina |  |  |
| L3N S.A. | (d) | Argentina |  |  |
| Maní del Plata S.A. | (a) | Argentina |  |  |
| Girasoles del Plata S.A. | (a) | Argentina |  |  |
| Molinos Libres S.A.U. | (a) | Argentina |  |  |
| Arroz del NEA S.A.U. | (a) | Argentina |  |  |
| Adeco Agropecuaria Brasil S.A. | (b) | Brazil |  |  |
| Adecoagro Vale do Ivinhema S.A. ("AVI") | (b) | Brazil |  |  |
| Usina Monte Alegre Ltda. ("UMA") | (b) | Brazil |  |  |
| Adecoagro GD LTDA. | (b) | Brazil |  |  |
| Monte Alegre Combustiveis Ltda. | (b) | Brazil |  |  |
| Adecoagro Energia Ltda. | (b) | Brazil |  |  |
| Adecoagro Agricultura e Participação Ltda. | (b) | Brazil |  |  |
| Methanum Engenharia Ambiental S.A. | (b) | Brazil |  |  |
| Angelica Energia Ltda. | (b) | Brazil |  |  |
| Ivinhema Energia Ltda. | (b) | Brazil |  |  |
| Kelizer S.A. | (a) | Uruguay |  |  |
| Adecoagro Uruguay S.A. | (a) | Uruguay |  |  |
| Arroz del Plata S.A. (ex Viterra Uruguay S.A.) | (a) | Uruguay |  |  |
| Paso Dragón S.A. | (a) | Uruguay |  |  |
| Adecoagro Chile S.P.A | (a) | Chile |  |  |
| **Holdings companies:** |  |  |  |  |
| Adeco Brasil Participações S.A. |  | Brazil |  |  |
| Adecoagro LP S.C.S. |  | Luxembourg |  |  |
| Adecoagro GP S.a.r.l. |  | Luxembourg |  |  |
| Ladelux S.C.A. |  | Uruguay |  |  |
| Spain Holding Companies | (c) | Spain |  |  |

---

(a) Mainly crops, rice, cattle and others.

(b) Mainly sugarcane, ethanol and energy.

(c) Comprised by (1) wholly owned subsidiaries: Kadesh Hispania S.L.U.; Leterton España S.L.U.; Global Asterion S.L.U.; Global Acasto S.L.U.; Global Laertes S.L.U.; Global Pindaro S.L.U.; Global Pileo S.L.U.; Peak Texas S.L.U.; Global Neimoidia S.L.U. and 51% controlled subsidiaries; Global Acamante S.L.U.; Global Carelio S.L.U.; Global Calidon S.L.U.; Global Mirabilis S.L.U. Global Anceo S.L.U.Global Hisingen S.L.U.

F- 71

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**30.&nbsp;&nbsp;&nbsp;&nbsp;Group companies (continued)**

(d) Mainly dairy.

The percentage voting right for each principal subsidiary is the same as the percentage of capital stock held. Issued share capital represents only ordinary shares/ quotas, units or their equivalent. There are no preference shares or units issued in any subsidiary undertaking.

According to the laws of certain of the countries in which the Group operates, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution and can only be released to absorb losses.

**31.&nbsp;&nbsp;&nbsp;&nbsp;Related-party transactions**

The following is a summary of the balances and transactions with related parties:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Related party** | **Relationship** | **Description of transaction** | **Income (loss) included in the<br>statement of income** | **Income (loss) included in the<br>statement of income** | **Income (loss) included in the<br>statement of income** | **Balance receivable<br>(payable)/(equity)** | **Balance receivable<br>(payable)/(equity)** |
| **Related party** | **Relationship** | **Description of transaction** | **2022** | **2021** | **2020** | **2022** | **2021** |
| Management and selected employees | Employment | Compensation selected employees | (11497) | (7883) | (5232) | (18917) | (16198) |

---

**32.&nbsp;&nbsp;&nbsp;&nbsp;Critical accounting estimates and judgments**

Critical accounting policies are those that are most important to the portrayal of the Group's financial condition, results of operations and cash flows, and require management to make difficult, subjective or complex judgments and estimates about matters that are inherently uncertain. Management bases its estimates on historical experience and other assumptions that it believes are reasonable. The Group's critical accounting policies are discussed below.

Actual results could differ from estimates used in employing the critical accounting policies and these could have a material impact on the Group's results of operations. The Group also has other policies that are considered key accounting policies, such as the policy for revenue recognition. However, these other policies, which are discussed in the notes to the Group's financial statements, do not meet the definition of critical accounting estimates, because they do not generally require estimates to be made or judgments that are difficult or subjective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Impairment of non-financial assets***

&nbsp;&nbsp;&nbsp;&nbsp;At the date of each statement of financial position, the Group reviews the carrying amounts of its property, plant and equipment and finite lived intangible assets to determine whether there is any indication that those assets could have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The Group's property, plant and equipment items generally do not generate independent cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;In the case of goodwill, any goodwill acquired is allocated to the cash-generating unit ('CGU') expected to benefit from the business combination. CGU to which goodwill is allocated is tested for impairment annually (every September), or more frequently if events or changes in circumstances indicate that the carrying amount of the CGU may be impaired. The carrying amount of the CGU is compared to its recoverable amount, which is the higher of fair value less costs to sell and the value in use. An impairment loss is recognized for the amount by which the carrying amount exceeds its recoverable amount. The impairment review requires management to undertake certain significant judgments, including estimating the recoverable value of the CGU to which goodwill is allocated, based on either fair value less costs-to-sell or the value-in-use, as appropriate, in order to reach a conclusion on whether it deems the goodwill is impaired or not.

&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the impairment testing, each CGU represents the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or group of assets.

F- 72

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**32.&nbsp;&nbsp;&nbsp;&nbsp;Critical accounting estimates and judgments (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;Farmlands may be used for different activities that may generate independent cash flows. For those farmlands that are used for more than one segment activity (i.e. crops and cattle or rental income), the farmland is further subdivided into two or more CGUs, as appropriate, for purposes of impairment testing. For its properties in Brazil, management identified a farmland together with its related mill as separate CGUs. Most of the farmlands in Argentina and Uruguay are treated as single CGUs.

&nbsp;&nbsp;&nbsp;&nbsp;Based on these criteria, management identified a total amount of 42 CGUs as of September 30, 2022 and 39 CGUs as of September 30, 2021.

As of September 30, 2022 and 2021, due to the fact that there were no impairment indicators, the Group only tested those CGUs with allocated goodwill in Argentina and Brazil.

**&nbsp;&nbsp;&nbsp;&nbsp;CGUs tested based on a fair-value-less-costs-to-sell model at September 30, 2022 and 2021: &nbsp;&nbsp;&nbsp;&nbsp;**

&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2022, the Group identified 10 CGUs in Argentina (2021: 10 CGUs) to be tested based on this model (all CGUs with allocated goodwill). Estimating the fair value less costs-to-sell is based on the best information available, and refers to the amount at which the CGU could be bought or sold in a current transaction between willing parties. Management may be assisted by the work of independent experts. When using this model, the Group applies the "sales comparison approach" as its method of valuing most properties, which relies on results of sales of similar agricultural properties to estimate the value of the CGU. This approach is based on the theory that the fair value of a property is directly related to the selling prices of similar properties.

&nbsp;&nbsp;&nbsp;&nbsp;Fair values are determined by extensive analysis which includes current and potential soil productivity of the land (the ability to produce crops and maintain livestock) projected margins derived from soil use, rental value obtained for soil use, if applicable, and other factors such as climate and location. Farmland ratings are established by considering such factors as soil texture and quality, yields, topography, drainage and rain levels. Farmland may contain farm outbuildings. A farm outbuilding is any improvement or structure that is used for farming operations. Outbuildings are valued based on their size, age and design.

&nbsp;&nbsp;&nbsp;&nbsp;Based on the factors described above, each farm property is assigned different soil classifications for the purposes of establishing a value, Soil classifications quantify the factors that contribute to the agricultural capability of the soil. Soil classifications range from the most productive to the least productive.

&nbsp;&nbsp;&nbsp;&nbsp;The first step to establishing an assessment for a farm property is a sales investigation that identifies the valid farm sales in the area where the farm is located. A price per hectare is assigned for each soil class within each farm property. This price per hectare is determined based on the quantitative and qualitative analysis mainly described above.

&nbsp;&nbsp;&nbsp;&nbsp;The results are then tested against actual sales, if any, and current market conditions to ensure the values produced are accurate, consistent and fair.

&nbsp;&nbsp;&nbsp;&nbsp;The following table shows only the 10 CGUs (2021: 10 CGUs) where goodwill was allocated at each period end and the corresponding amount of goodwill allocated to each one:

F- 73

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**32.&nbsp;&nbsp;&nbsp;&nbsp;Critical accounting estimates and judgments (continued)**

---

| | | |
|:---|:---|:---|
| **CGU / Operating segment / Country** | **September 30, 2022** | **September 30, 2021** |
| La Carolina / Crops / Argentina | 242 | 197 |
| La Carolina / Cattle / Argentina | 39 | 32 |
| El Orden / Crops / Argentina | 260 | 212 |
| El Orden / Cattle / Argentina | 9 | 8 |
| La Guarida / Crops / Argentina | 1726 | 1407 |
| La Guarida / Cattle / Argentina | 889 | 725 |
| Los Guayacanes / Crops / Argentina | 3196 | 2606 |
| Doña Marina / Rice / Argentina | 5565 | 4536 |
| El Colorado / Crops / Argentina | 2768 | 2256 |
| El Colorado / Cattle / Argentina | 27 | 22 |
| **Closing net book value of goodwill allocated to CGUs tested (Note 15)** | **14721** | **12001** |
| Closing net book value of PPE items allocated to CGUs tested | 143585 | 143064 |
| **Total assets allocated to CGUs tested** | **158306** | **155065** |

---

&nbsp;&nbsp;&nbsp;&nbsp;

Based on the testing above, the Group determined that none of the CGUs, with allocated goodwill, were impaired at September 30, 2022 and 2021.

&nbsp;&nbsp;&nbsp;&nbsp;**CGUs tested based on a value-in-use model at September 30, 2022 and 2021:**

As of September 30, 2022, the Group identified 2 CGUs (2021: 2 CGUs) in Brazil to be tested based on this model (all CGUs with allocated goodwill). The determination of the value-in-use calculation required the use of significant estimates and assumptions related to management's cash flow projections. In performing the value-in-use calculation, the Group applied pre-tax rates to discount the future pre-tax cash flows. In each case, these key assumptions have been made by management reflecting past experience and are consistent with relevant external sources of information, such as appropriate market data. In calculating value-in-use, management may be assisted by the work of external advisors.

The key assumptions used by management in the value-in-use calculations which are considered to be most sensitive to the calculation are:

---

| | | |
|:---|:---|:---|
| **Key Assumptions** | **September 30, 2022** | **September 30, 2021** |
| Financial projections | Covers 5 years for UMA (\*) | Covers 5 years for UMA (\*) |
|  | Covers 5 years for AVI (\*\*) | Covers 5 years for AVI (\*\*) |
| Yield average growth rates | 0-1% | 0-1% |
| Future pricing increases | 1.21% per annum | 1.76% per annum |
| Future cost decrease | 0.25% per annum | 0.33% per annum |
| Discount rates | 5% | 4% |
| Perpetuity growth rate | 1% | 1% |

---

&nbsp;&nbsp;&nbsp;&nbsp;

(\*) UMA stands for Usina Monte Alegre LTDA.

&nbsp;&nbsp;&nbsp;&nbsp;(\*\*) AVI stands for Adecoagro Vale Do Ivinhema S.A.

&nbsp;&nbsp;&nbsp;&nbsp;Discount rates are based on the risk-free rate for U. S. government bonds, adjusted for a risk premium to reflect the increased risk of investing in South America and Brazil in particular. The risk premium adjustment is assessed for factors specific to the respective CGUs and reflects the countries that the CGUs operate in.

F- 74

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**32.&nbsp;&nbsp;&nbsp;&nbsp;Critical accounting estimates and judgments (continued)**

The following table shows only the 2 CGUs where goodwill was allocated at each period end and the corresponding amount of goodwill allocated to each one:

---

| | | |
|:---|:---|:---|
| **CGU/ Operating segment** | **September 30, 2022** | **September 30, 2021** |
| AVI / Sugar, Ethanol and Energy | 2937 | 2919 |
| UMA / Sugar, Ethanol and Energy | 1102 | 1095 |
| **Closing net book value of goodwill allocated to CGUs tested (Note 15)** | **4039** | **4014** |
| **Closing net book value of PPE items allocated to CGUs tested** | **518814** | **469434** |
| **Total assets allocated to 2 CGUs tested** | **522853** | **473448** |

---

&nbsp;&nbsp;&nbsp;&nbsp;

Based on the testing above, the Group determined that none of the CGUs, with allocated goodwill, were impaired at September 30, 2022 and 2021.

Management views these assumptions are conservative and does not believe that any reasonable change in the assumptions would cause the carrying value of these CGU's to exceed the recoverable amount.

The Group's goodwill and property, plant and equipment balances allocated to the cash generating units with allocated goodwill in Argentina were US$14.3 million and US$143.9 million, respectively, and goodwill and property, plant and equipment allocated to the cash generating units with allocated goodwill in Brazil were US$4.2 million and U$S 534 million, respectively as of December 31, 2022.

As of December 31, 2022, the Group determined that there are no indicators of impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***(b) Biological assets***

The nature of the Group's biological assets and the basis of determination of their fair value are explained under Note 33.11. The discounted cash flow model requires the input of highly subjective assumptions including observable and unobservable data. Generally the estimation of the fair value of biological assets is based on models or inputs that are not observable in the market and the use of such unobservable inputs is significant to the overall valuation of the assets. These inputs are determined based on the best information available, for example by reference to historical information of past practices and results, statistical and agronomic information, and other analytical techniques. The discounted cash flow model includes significant assumptions relating to the cash flow projections including future market prices, estimated yields at the point of harvest, estimated production cycle, future costs of harvesting and other costs, and estimated discount rate.

Market prices are generally determined by reference to observable data in the principal market for the agricultural produce. Harvesting costs and other costs are estimated based on historical and statistical data. Yields are estimated based on several factors including the location of the farmland and soil type, environmental conditions, infrastructure and other restrictions and growth at the time of measurement. Yields are subject to a high degree of uncertainty and may be affected by several factors out of the Group's control including but not limited to extreme or unusual weather conditions, plagues and other crop diseases, among other factors.

The significant assumptions discussed above are highly sensitive. Reasonable shifts in assumptions including but not limited to increases or decreases in prices, costs and discount factors used would result in a significant increase or decrease to the fair value of biological assets. In addition, cash flows are projected over a number of years and based on estimated production. Estimates of production in themselves are dependent on various assumptions, in addition to those described above, including but not limited to several factors such as location, environmental conditions and other restrictions. Changes in these estimates could materially impact on estimated production, and could therefore affect estimates of future cash flows used in the assessment of fair value (see Note 16).

F- 75

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**32.&nbsp;&nbsp;&nbsp;&nbsp;Critical accounting estimates and judgments (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) Income taxes***

The Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

Deferred tax assets are reviewed each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be settled. Deferred tax assets and liabilities are not discounted. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment (see Note 10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d) Fair value for farmlands and investment property***

**Property, plant and equipment**

Farmlands are recognized at fair value based on periodic, but at least annual, valuations prepared by an external independent expert. A revaluation reserve is credited in shareholders' equity. The valuation is determined using sales comparison approach. Sale prices of comparable properties are adjusted considering the specific aspects of each property, the most relevant premise being the price per hectare (Level 3) (see Note 12).

**Investment property**

Investment property consists of farmland for rental or for capital appreciation and not used in production or for sale in the ordinary course of business, and it is measured at fair value. The changes in the fair value, which is based on an independent external expert, impacts the profit and loss of the period, in the line item Other operating income, net (see Note 14).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e) Purchase price allocation***

The acquisition method of accounting is used to account for all acquisitions. Under this method, assets acquired and liabilities assumed of the Company are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company estimates the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted) amount.

Management applied judgement in estimating the fair value of certain identifiable assets acquired, which involved the use of estimates and assumptions, including the timing and amounts of cash flow projections and discount rates, as applicable.

F- 76

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.&nbsp;&nbsp;&nbsp;&nbsp;Summary of significant accounting policies** 

The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

***Financial reporting in a hyperinflation economy***

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of entities whose functional currency is that of a hyperinflationary economy to be adjusted for the effects of changes in a suitable general price index and to be expressed in terms of the current unit of measurement at the closing date of the reporting period. Accordingly, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be computed in the non-monetary items.

In order to conclude on whether an economy is categorized as hyperinflationary under the terms of IAS 29, the Standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceeds 100 %.

Since 2018, when cumulative inflation rate in three years exceeded the 100% threshold, Argentina's operations are considered to be under hyperinflationary economy for accounting purposes under the terms of IAS 29 and since then, it has been applied IAS 29 in the financial reporting of its subsidiaries and associates with Argentine peso as functional currency.

Financial statements of a foreign entity with a functional currency of a country that has a highly inflationary economy, are restated to reflect changes in the general price level or index in that country before translation into U.S. Dollars. In adjusting for hyperinflation, a general price index is applied to all non-monetary items in the financial statements (including equity) and the resulting gain or loss, which is the gain or loss on the entity's net monetary position, is recognized in the income statement. Monetary items in the closing statement of financial position are not adjusted. The Group treated all Argentine subsidiaries as a hyperinflationary economy as all of them have argentine peso as functional currency. The results and financial position of all foreign entities with a functional currency of a country that has a highly inflationary economy are translated at closing rates after the restatement for changes in the general purchasing power argentine peso.

The inflation adjustment on the years 2022, 2021 and 2020 was calculated by means of conversion factor derived from the Argentine price indexes published by the National Institute of Statistics and the year-over-year change in the index was 1.9479; 1.509 and 1.361, respectively.

The main procedures for the above-mentioned adjustment are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Monetary assets and liabilities which are carried at amounts current at the balance sheet date are not restated because they are already expressed in terms of the monetary unit current at the balance sheet date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-monetary assets and liabilities which are not carried at amounts current at the balance sheet date, and components of shareholders' equity are adjusted by applying the relevant conversion factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All items in the income statement are restated by applying the relevant conversion factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The effect of inflation on the Company's net monetary position is included in the income statement, in "Other financial results" (Note 9).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ongoing application of the re-translation of comparative amounts to closing exchanges rates under IAS 21 and the hyperinflation adjustments required by IAS 29 will lead to a difference in addition to the difference arising on the application of hyperinflation accounting.

The comparative figures in these Consolidated Financial Statements presented in a stable currency are not adjusted for subsequent changes in the price level or exchange rates. This resulted in a difference between the closing equity of the previous year and the opening equity of the current year. The Company recognized this initial difference directly in equity.

F- 77

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.1&nbsp;&nbsp;&nbsp;&nbsp;Basis of preparation and presentation**

The Consolidated Financial Statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC). All IFRS issued by the IASB, effective at the time of preparing these Consolidated Financial Statements have been applied.

The Consolidated Financial Statements have been prepared under the historical cost convention as modified by financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, biological assets and agricultural produce at the point of harvest and farmlands measured at fair value.

The preparation of Consolidated Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the Consolidated Financial Statements are disclosed in Note 33.

**New standards and interpretations not yet adopted**

Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2021 reporting periods and have not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

**33.2&nbsp;&nbsp;&nbsp;&nbsp;Scope of consolidation**

The Consolidated Financial Statements include the results of the Company and all of its subsidiaries from the date that control commences to the date that control ceases. They also include the Group's share of the net income of its jointly-controlled entities on an equity-accounted basis from the point at which joint control commences, to the date that it ceases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Subsidiaries**

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control commences and deconsolidated from the date that control ceases.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. The excess of consideration over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the statement of income under the line item "Bargain purchase gain on acquisition".

Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

F- 78

------

**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.2&nbsp;&nbsp;&nbsp;&nbsp;Scope of consolidation (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Disposal of subsidiaries**

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amount previously recognized in other comprehensive income in respect of that entity is accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss, except for the related revaluation surplus which is reclassified to retained earnings.

**33.3&nbsp;&nbsp;&nbsp;&nbsp;Segment reporting**

According to IFRS 8, operating segments are identified based on the 'management approach'. This approach stipulates external segment reporting based on the Group's internal organizational and management structure and on internal financial reporting to the chief operating decision maker (the Management Committee in the case of the Company)

**33.4&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Functional and presentation currency***

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The Consolidated Financial Statements are presented in US dollars, which is the Group's presentation currency.

*Argentine currency status* 

Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the U.S. dollars, to make payments abroad, either for foreign debt or the importation of goods or services, dividend payments and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government's perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce is the official exchange rate, which as of December 31, 2022 was Pesos 177 per dollar.

We use Argentina's official exchange rate to record the accounts of Argentine subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Transactions and balances***

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income, in the line Item "Finance income" or "Finance cost,"as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) Group companies***

The results and financial position of Group entities (except those that has the currency of a hyper-inflationary economy - Argentine subsidiaries) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.4&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• income and expenses for each statement of income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all resulting exchange differences are recognized as a separate component of equity.

When a foreign operation is sold, exchange differences that were recorded in equity are recognized in the statement of income as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

**33.5&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment**

Farmlands are initially recorded at fair value and subsequently under the revaluation model based on periodic, but at least annual, valuations prepared by an external independent expert. A revaluation reserve is credited in shareholders' equity. All other property, plant and equipment is recorded at cost, less accumulated depreciation and impairment losses, if any. Historical cost comprises the purchase price and any costs directly attributable to the acquisition. Under the definition of Property plant and equipment is included the bearer plants, such as sugarcane and coffee trees.

Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of income when they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within "Other operating income, net" in the consolidated statement of income.

**33.6&nbsp;&nbsp;&nbsp;&nbsp;Investment property**

Investment property consists of farmland for rental or for capital appreciation and not used in production or for sale in the ordinary course of business, and it is measured at fair value. Changes of the fair value, which is based on an independent external expert, impacts the profit and loss of the period, in the line item Other operating income, net.

**33.7&nbsp;&nbsp;&nbsp;&nbsp;Leases**

Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

In determining the lease term, the Company considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

&nbsp;&nbsp;&nbsp;&nbsp;Short term leases are recognized on a straight line basis as an expense in the income statement.

The accompanying notes are an integral part of these consolidated financial statements.

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.7 Leases (continued)**

*Accounting as lessee*

The Company recognizes a right-of-use asset and a lease liability at the commencement date of each lease contract that grants the right to control the use of an identified asset during a period of time. The commencement date is the date in which the lessor makes an underlying asset available for use by the lessee. The Company applied exemptions for leases with a duration lower than 12 months, with a value lower than thirty thousand dollars and/or with clauses related to variable payments. These leases have been considered as short-term leases and, accordingly, no right-of-use asset or lease liability have been recognized.

At initial recognition, the right-of-use asset is measured considering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The value of the initial measurement of the lease liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any lease payments made at or before the commencement date, less any lease incentives; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any initial direct costs incurred by the lessee; and

After initial recognition, the right-of-use assets are measured at cost, less any accumulated depreciation and/or impairment losses, and adjusted for any re-measurement of the lease liability.

Depreciation of the right-of-use asset is calculated using the straight-line method over the estimated duration of the lease contract.

&nbsp;&nbsp;&nbsp;&nbsp;The lease liability is initially measured at the present value of the lease payments that are not paid at such date, including the following concepts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable lease payments that depend on an index or rate, initially measured using the index or rate as of the commencement date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amounts expected to be payable by the lessee under residual value guarantees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed payments, less any lease incentives receivable;

After the commencement date, the Company measures the lease liability by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increasing the carrying amount to reflect interest on the lease liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reducing the carrying amount to reflect lease payments made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Re-measuring the carrying amount to reflect any reassessment or lease modifications.

&nbsp;&nbsp;&nbsp;&nbsp;The above mentioned inputs for the valuation of the right of use assets and lease liabilities including the determination of the contracts within the scope of the standard, the contract term ant interest rate used in the discounted cash flow involved a high degree of management's estimations.

**33.8&nbsp;&nbsp;&nbsp;&nbsp;Goodwill**

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill on acquisition is initially measured at cost. being the excess of the consideration over the fair value of the Group's share of net assets of the acquired subsidiary undertaking at the acquisition date. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. It is allocated to those cash generating units expected to benefit from the acquisition for the purpose of impairment testing. Goodwill ais included within "Intangible assets" on the statement of financial position. Goodwill arising on the acquisition of foreign entities is treated as an asset of the foreign entity denominated in the local currency and translated at the closing rate.

Goodwill is not amortized but tested for impairment on an annual basis, or more frequently if there is an indication of impairment (see Note 33 (a)). Gains and losses on the disposal of a Group entity include any goodwill relating to the entity sold (see Note 33.10).

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.9&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets**

Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated amortization and impairment losses, if any. These intangible assets comprise mainly trademarks and computer software and are amortized in the statement of income on a straight-line basis over their estimated useful lives estimated to be 10 to 20 years and 3 to 5 years, respectively.

**33.10 Impairment of assets** 

**Goodwill**

The Company conducts an impairment test annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount exceeds its recoverable amount. For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, known as cash-generating units. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash generating unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset may in the unit. Impairment losses recognized for goodwill cannot be reversed in a subsequent period. Recoverable amount is the higher of the fair value less costs to sell and value in use. In determining the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted (see Note 33 (a) for details).

**Property, plant and equipment and finite lived intangible assets**

At each statement of financial position date, the Group reviews the carrying amounts of its property, plant and equipment and other intangible assets which have finite lives to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, that carrying amount is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of income.

Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, not to exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in the statement of income.

**33.11&nbsp;&nbsp;&nbsp;&nbsp;Biological assets**

Biological assets comprise growing crops (mainly corn, wheat, soybeans, sunflower peanuts and rice), sugarcane, coffee and livestock (growing herd and cattle for dairy production).

The Group distinguishes between consumable and bearer biological assets, and between mature and immature biological assets. "Consumable" biological assets are those assets that may be harvested as agriculture produce or sold as biological assets, for example livestock intended for dairy production. "Bearer" biological assets are those assets capable of producing more than one harvest, for example sugarcane or livestock from which raw milk is produced. "Mature" biological assets are those that have attained harvestable specifications (for consumable biological assets) or are able to sustain regular harvests (for bearer biological assets). "Immature" biological assets are those assets other than mature biological assets.

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.11&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

Costs are capitalized as biological assets if, and only if, (a) it is probable that future economic benefits will flow to the entity, and (b) the cost can be measured reliably. The Group capitalizes costs such as: planting, harvesting, weeding, seedlings, irrigation, agrochemicals, fertilizers and a systematic allocation of fixed and variable production overheads that are directly attributable to the management of biological assets, among others. Costs that are expensed as incurred include administration and other general overhead and unallocated production overhead, among others.

Biological assets, both at initial recognition and at each subsequent reporting date, are measured at fair value less costs to sell, except where fair value cannot be reliably measured. Cost approximates fair value when little biological transformation has taken place since the costs were originally incurred or the impact of biological transformation on price is not expected to be material.

Gains and losses that arise on measuring biological assets at fair value less costs to sell and measuring agricultural produce at the point of harvest at fair value less costs to sell are recognized in the statement of income in the period in which they arise in the line item "Initial recognition and changes in fair value of biological assets and agricultural produce".

Where there is an active market for a biological asset or agricultural produce, quoted market prices in the most relevant market are used as a basis to determine the fair value. Otherwise, when there is no active market or market-determined prices are not available, fair value of biological assets is determined through the use of valuation techniques.

Therefore, the fair value of biological assets is generally derived from the expected discounted cash flows of the related agricultural produce. The fair value of the agricultural produce at the point of harvest is generally derived from market determined prices.

A general description of the determination of fair values based on the Company's business segments follow:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Growing crops including rice:*

Growing crops, for which biological growth is not significant, are measured at cost, which approximates fair value. Expenditure on growing crops includes land preparation expenses and other direct expenses incurred during the sowing period including labor, seedlings, agrochemicals and fertilizers among others.

Otherwise, biological assets are measured at fair value less estimated point-of-sale costs at initial recognition and at any subsequent period. Point-of-sale costs include all costs that would be necessary to sell the assets

The fair value of growing crops including rice is measured based on a formula, which takes into consideration the estimate of crop yields, estimated market prices and costs, and discount rates. Estimated yields are determined based on several factors including location of farmland, environmental conditions and other restrictions and growth at the time of measurement. Yields are multiplied by sown hectares to determine the estimated tons of crops including rice to be obtained. The tons are then multiplied by a net cash flow determined at the future crop prices less the direct costs to be incurred. This amount is discounted at a discount rate, which reflects current market assessments of the assets involved and the time value of money.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Growing herd and cattle:*

Livestock are measured at fair value less estimated point-of-sale costs, with any changes therein recognized in the statement of income, on initial recognition as well as subsequently at each reporting period. The fair value of livestock is determined based on the actual selling prices less estimated point-of-sale costs in the markets where the Group operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Sugarcane:*

Sugarcane planting costs form part of Property plant and equipment. The agricultural produce growing on sugarcane is classified as biological assets and are measured at fair value less cost to sell. The fair value of agricultural produce growing on sugarcane depends on the variety, location and maturity of the plantation.

Agricultural produce growing in the Sugarcane, for which biological growth is not significant, is valued at cost, which approximates fair value. Expenditure on the agricultural produce growing in the sugarcane consists mainly of labor,

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.11&nbsp;&nbsp;&nbsp;&nbsp;Biological assets (continued)**

agrochemicals and fertilizers among others. When it has attained significant biological growth, it is measured at fair value through a discounted cash flow model. Estimated revenues are based on estimated yearly production volume (which will be destined to sugar, ethanol, energy and raw cane production) and the price is calculated as the average of daily prices for sugar future contracts (Sugar #11 ICE-NY contracts) for a six months period. Projected costs include maintenance and land leasing among others. These estimates are discounted at an appropriate discount rate.

**33.12&nbsp;&nbsp;&nbsp;&nbsp;Inventories**

Inventories comprise of raw materials, finished goods (including harvested agricultural produce and manufactured goods) and others.

Harvested agricultural produce (except for rice and milk) are measured at net realizable value until the point of sale because there is an active market in the produce, there is a negligible risk that the produce will not be sold and there is a well-established practice in the industry carrying the inventories at net realizable value. Changes in net realizable value are recognized in the statement of income in the period in which they arise under the line item "Changes in net realizable value of agricultural produce after harvest".

All other inventories (including rice and milk) are measured at the lower of cost and net realizable value. Cost is determined using the weighted average method.

**33.13&nbsp;&nbsp;&nbsp;&nbsp;Financial assets**

Financial assets are classified in the following categories: at fair value through profit or loss and at amortized cost, namely loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition (see Note 17).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Recognition and measurement**

Regular purchases and sales of financial assets are recognized on the trade-date – the date on which the Group commits to purchase or sell the asset. Financial assets not carried at fair value through profit or loss are initially recognized at fair value plus transaction costs. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the statement of income. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortized cost using the effective interest method.

Gains or losses arising from changes in the fair value of the "financial assets at fair value through profit or loss" category are presented in the statement of income within "Other operating income, net" in the period in which they arise.

If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs.

The Group assesses at each statement of financial position date whether there is objective evidence that a financial asset or a group of financial assets is impaired. Impairment testing of trade receivables is described in Note 33.15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Offsetting financial instruments**

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. This right must not be contingent on future events and must be enforceable in any case.

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.14&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments and hedging activities**

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Commodity future contract fair values are computed with reference to quoted market prices on future exchanges markets. The fair values of commodity options are calculated using year-end market rates together with common option pricing models. The fair value of interest rate swaps has been calculated using a discounted cash flow analysis.

The Group manages exposures to financial and commodity risks using hedging instruments that provide the appropriate economic outcome. The principal hedging instruments used may include commodity future contracts, put and call options, foreign exchange forward contracts and interest rate swaps. The Group does not use derivative financial instruments for speculative purposes.

The Group's policy is to apply hedge accounting to hedging relationships where it is both permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9. Any derivatives that the Group holds to hedge these exposures are classified as "held for trading" and are shown in a separate line on the face of the statement of financial position. The method of recognizing gains or losses on derivatives depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Gains and losses on commodity derivatives are classified within "Other operating income, net". Gains and losses on interest rate and foreign exchange rate derivatives are classified within 'Financial results, net'. The Group designates certain derivatives as hedges of the foreign currency risk associated with highly probable forecast transactions (cash flow hedge).

The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the instruments that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of hedged items.

*Cash flow hedge*

The effective portion of the gain or loss on the instruments that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the statement of income within "Finance income" or "Finance cost,"as appropriate.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion is recognized in the statement of income within "Finance income" or "Finance cost", as appropriate.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the statement of income. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the statement of income.

**33.15&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables and trade and other payables**

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. In the case of receivables, less allowance for trade receivables.

The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

**33.16&nbsp;&nbsp;&nbsp;&nbsp;Short-term investment**

Financial assets at fair value through profit or loss are valued at the initial recognition and subsequently at fair value and recognizing the variation in the Statement of income in the line Financial results.

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.17&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents**

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. In the statements of cash flows, interest paid is presented within financing cash flows and interest received is presented within investing activities.

**33.18&nbsp;&nbsp;&nbsp;&nbsp;Borrowings**

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost using the effective interest method. Borrowing costs are capitalized during the period of time that is required to complete and prepare the asset for its intended use.

**33.19&nbsp;&nbsp;&nbsp;&nbsp;Provisions**

Provisions are recognized when (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

**33.20&nbsp;&nbsp;&nbsp;&nbsp;Onerous contracts**

The Group enters into contracts, which require the Group to sell commodities in accordance with the Group's expected sales. These contracts do not qualify as derivatives. These contracts are not recognized until at least one of the parties has performed under the agreement. However, when the contracts are onerous, the Group recognizes the present obligation under the contracts as a provision included within "Provision and other liabilities" in the statement of financial position. Losses under these onerous contracts are recognized within "Other operating income, net" in the statement of income.

**33.21&nbsp;&nbsp;&nbsp;&nbsp;Current and deferred income tax**

The Group's tax benefit or expense for each year comprises the charge for current tax payable and deferred taxation attributable to the Group's operating subsidiaries. Tax is recognized in the statement of income, except to the extent that it relates to items recognized directly in equity. In this case, the tax is also recognized in equity.

The current income tax charge is calculated on the basis of the tax laws enacted at the date of the statement of financial position in the countries where the Group's subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) effective in the countries where the Group's subsidiaries operate and generate taxable income.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

&nbsp;&nbsp;&nbsp;&nbsp;**33.21&nbsp;&nbsp;&nbsp;&nbsp;Current and deferred income tax (continued)**

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

The Group is able to control the timing of dividends from its subsidiaries and hence does not expect to remit overseas earnings in the foreseeable future in a way that would result in a charge to taxable profit. Hence deferred tax is recognized in respect of the retained earnings of overseas subsidiaries only to the extent that, at the date of the statement of financial position, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future has been entered into by the subsidiary.

**33.22&nbsp;&nbsp;&nbsp;&nbsp;Revenue Recognition**

The Group's primary activities comprise agricultural and agro-industrial activities.

The Group's agricultural activities comprise growing and selling agricultural produce. In accordance with IAS 41 "Agriculture", cattle are measured at fair value with changes therein recognized in the statement of income as they arise. Agricultural produce is measured at net realizable value with changes therein recognized in the statement of income as they arise. Therefore, sales of agricultural produce and cattle generally do not generate any separate gains or losses in the statement of income.

The Group's agro-industrial activities comprise the selling of manufactured products (i.e. industrialized rice, milk-related products, ethanol, sugar, energy, among others). These sales are measured at the fair value of the consideration received or receivable, net of returns and allowances, trade and other discounts, and sales taxes, as applicable.

Revenue is recognized when the full control have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods. Transfers of control vary depending on the individual terms of the contract of sale. Revenues are recognised when control of the products has transferred, being when the products are delivered to the customer, having this full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products.

The Group also provides certain agricultural-related services such as grain warehousing/conditioning and other services, e.g. handling and drying services. Revenue from services is recognized as services are provided.

The Group leases owned farmland property to third parties under operating lease agreements. Rental income is recognized on a straight-line basis over the period of the lease.

The Group is a party to a 25-year power agreement for the sale of electricity which expires in 2042. The delivery period starts in April and ends in November of each year. The Group is also a party to two 15-year power agreements which delivery period starts in March and ends in December of each year, these two agreements will expire in 2024 and 2025, respectively. Prices under all the agreements are adjusted annually for inflation. Revenue related to the sale of electricity under these two agreements is recorded based upon output delivered.

**33.23&nbsp;&nbsp;&nbsp;&nbsp;Farmlands sales**

The Group's strategy is to profit from land appreciation value generated through the transformation of its productive capabilities. Therefore, the Group may seek to realize value from the sale of farmland assets and businesses.

Farmland sales are not recognized until (i) the sale is completed, (ii) the Group has determined that it is probable the buyer will pay, (iii) the amount of revenue can be measured reliably, and (iv) the Group has transferred to the buyer the risk of ownership, and does not have a continuing involvement. Gains from "farmland sales" are included in the statement of income under the line item "Other operating income, net".

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**Adecoagro S.A.**

**Notes to the Consolidated Financial Statements (Continued)**

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)

**33.24&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale and discontinued operations**

When the Group intends to dispose of, or classify as held for sale, a business component that represents a separate major line of business or geographical area of operations, or a subsidiary acquired exclusively with a view to resale, it classifies such operations as discontinued. The post tax profit or loss of the discontinued operations is shown as a single amount on the face of the statement of income, separate from the other results of the Group. Assets and liabilities classified as held for sale are measured at the lower of carrying value and fair value less costs to sell.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a disposal rather than through continuing use. This condition is regarded as met only when management is committed to the sale (disposal), the sale (disposal) is highly probable and expected to be completed within one year from classification and the asset is available for immediate sale (disposal) in its present condition. The statements of income for the comparative periods are represented to show the discontinued operations separate from the continuing operations.

**33.25&nbsp;&nbsp;&nbsp;&nbsp;Earnings per share**

Basic earnings per share is calculated by dividing the net income for the year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted net earnings per share is computed by dividing the net income for the period by the weighted average number of ordinary shares outstanding, and when dilutive, adjusted for the effect of all potentially dilutive shares, including share options, on an as-if converted basis.

**33.26&nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based payments**

The Group issues equity settled share-based payments to certain directors, senior management and employees. Options under the awards were measured at fair value at the date of grant. An expense is recognized to spread the fair value of each award over the vesting period on a straight-line basis, after allowing for an estimate of the awards that will eventually vest. The estimate of the level of vesting is reviewed at least annually, with any impact on the cumulative charge being recognized immediately.

**33.27&nbsp;&nbsp;&nbsp;&nbsp;Research and development**

Research phase expenditure is expensed as incurred. Development expenditure is capitalized as an internally generated intangible asset only if it meets strict criteria, relating in particular to technical feasibility and generation of future economic benefits. Research expenses have been immaterial to date. The Group has not capitalized any development expenses to date.

**34.&nbsp;&nbsp;&nbsp;&nbsp; Information related to COVID-19 pandemic**

In response to the outbreak of COVID-19 and subsequent new variants of the virus (the "COVID-19 pandemic"), governments and businesses around the world have implemented a variety of restrictive measures to reduce the spread of COVID-19 . These measures have had a significant adverse effect on economic activities worldwide. The Company put in place several measures to preserve the safety of its employees and the communities where it operates, while maintaining its business operations running. The Company's activities in Argentina, Uruguay and Brazil were considered essential activities by the respective governments and consequently the Company was allowed to continue operating its businesses normally. Thus, the COVID-19 pandemic did not have a significant adverse impact on the business. However, the spread of new variants of COVID-19 pandemic has caused uncertainty as to when restrictions will be finally lifted, if additional restrictions may be initiated or reimposed, if there will be permanent changes to consumer behavior patterns, and the timing of distribution and administration of COVID-19 vaccines and other medical interventions globally. The Company cannot predict the long-term effects of the COVID-19 pandemic on its business and will continue monitoring the situation until the COVID-19 pandemic is over.

F- 88

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