6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2022

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	X	Form 40-F

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

Yes	No	X

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	X

TABLE OF CONTENTS

ITEM
99.1.	Press release dated August 11, 2022 related to the registrant’s results of operations for the six month period ended June 30, 2022.
99.2	Unaudited condensed consolidated interim financial statements of the registrant as of and for the six month period ended June 30, 2022.

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.

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

Date: August 11, 2022

Document

	Adecoagro reported Adjusted EBITDA in 2Q22 of 118 million, 16.7% higher year-over-year.
2Q22 Earning Release Conference Call
English Conference Call
August 12, 2022
11 a.m. (US EST)
12 p.m. (Buenos Aires and Sao Paulo time)
5 p.m. (Luxembourg)
Tel: +1 (412) 317-6366
Participants calling from other<br>countries outside the US
		2Q22	2Q21	Chg %	6M22	6M21	Chg %
Tel: +1 (844) 435-0324		382,339	285,580	33.9%	587,742	460,226	27.7%
Participants calling from the US		371,770	278,813	33.3%	573,050	449,082	27.6%
Investor Relations		19,995	32,445	(38.4)%	55,568	88,597	(37.3)%
Charlie Boero Hughes		104,358	73,586	41.8%	161,636	131,740	22.7%
CFO		(6,005)	(4,588)	30.9%	(12,385)	(9,753)	27.0%
Victoria Cabello		118,348	101,443	16.7%	204,819	210,584	(2.7)%
IR Manager		31.8%	36.4%	(12.5)%	35.7%	46.9%	(23.8)%
		18,111	15,666	15.6%	83,284	35,001	137.9%
		44,045	(13,715)	n.m.	58,740	40,782	44.0%
Email		291,843	262,122	11.3%	291,843	262,122	11.3%
[email protected]		188,560	183,043	3.0%	188,560	183,043	3.0%
		0.40	(0.12)	n.a.	0.53	0.35	50.8%
	• Net sales presented a year-over-year increase of 33.3% in 2Q22 and 27.6% in 6M22 on strong prices and a solid commercial strategy. • Adjusted net income reached 44.0 million in 2Q22 and 58.7 million in 6M22, presenting an outperformance compared to the same period of last year.
Website:
www.adecoagro.com
	(1) Net Sales are equal to Gross Sales minus sales taxes related to sugar, ethanol and energy. (2) Please see “Reconciliation of Non-IFRS measures” starting on page 32 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 of PP&E, and amortization of intangible assets, net gain from fair value adjustments of investment property land, bargain purchase gain, plus the gains or losses from disposals of non-controlling interests in subsidiaries, plus the net increase in value of sold farmland, which has been recognized in either revaluation surplus of retained earnings which is reflected in the Shareholders’ equity under the line item “Reverse of revaluation surplus derived from the disposals of assets" and net of the combined effect of the application of IAS 29 and IAS 21 from the Argentine operations included in profit from operations. Adjusted EBIT is defined as consolidated profit from operations before financing and taxation, net gain from fair value adjustments of investment property land, bargain purchase gain, plus the gains or losses from disposals of non-controlling interests in subsidiaries, plus the net increase in value of sold farmland, which has been recognized in either revaluation surplus of retained earnings which is reflected in the Shareholders’ equity under the line item “Reverse of revaluation surplus derived from the disposals of assets" and net of the combined effect of the application of IAS 29 and IAS 21 from the Argentine operations included in profit from operations. Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales. (3) Adjusted EBITDA margin excluding third party commercialization activities is defined as the consolidated Adjusted EBITDA net of the Adjusted EBITDA generated by the commercialization of third party sugar, grains and energy, divided by consolidated gross sales net of those generated by the commercialization of third party sugar, grains and energy. We net third party commercialization results to highlight the margin generated by our own production. (4) Please see “Reconciliation of Non-IFRS measures” starting on page 32 for a reconciliation of Adjusted Net Income. We define Adjusted Net Income as (i) Profit/(Loss) of the period year, plus (ii) any non cash finance costs resulting from foreign exchange losses for such period, which breakdown composed both Exchange Differences and Cash Flow Hedge Transfer from Equity, 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 relieved in our Shareholders Equity under the line item. "Reserve from the sale of non-controlling interests in subsidiaries plus (iv) the reversal of the aforementioned income tax effect, plus (v) the inflation accounting effects, plus (vi) the revaluation results from the hectares held as investment property, plus (vii) the bargain purchase gain.

All values are in US Dollars.

Sugar, Ethanol & Energy business

◦Adjusted EBITDA in our Sugar, Ethanol & Energy business reached $104.4 million in 2Q22 and $161.6 million in 6M22, marking a year-over-year increase of 41.8% and 22.7%, respectively. In 6M22, financial results were positively impacted by (i) our flexibility to divert 80% of TRS to ethanol production, the product offering the highest marginal contribution; (ii) our commercial decision to clear out our ethanol tanks in April when prices peaked, marking a record sale of 125 thousand m3 at an average price of 26.4 cts/lb sugar equivalent (6.7 cts/lb higher than the average price for sugar); (iii) our capacity to export ethanol, which provides an outlet when domestic prices are pressured, and allowed us to capture a price premium of 60-80 USD/m3; (iv) our hedging strategy which enabled us to secure sugar at 19.5 cts/lb; and (v) a gain in the mark-to-market of our unharvested cane as a consequence of higher expected yields and prices. In addition, year-to-date we sold $7.1 million worth of carbon credits (average gross price of 21 USD/CBio). These positive effects were partially offset by an increase in costs mostly driven by fertilizers, fuels and lubricants, coupled with a reduction in crushing volume. EBITDA per ton crushed amounted to 31.6 USD/Tn in 2Q22 and 45.3 USD/Tn in 6M22, 49.2% and 90.9% higher compared to the same period of last year, respectively.

◦In past releases, we shared our view on the potential implications of 2021's frost, in 2022's operational performance. We stated that:

▪Sugarcane availability would be limited by 2021 year-end and beginning of 2022, and would lead to a period of interharvest;

▪Productivity indicators would be below average during the first semester of 2022 but would return to normal levels towards the second semester, as there would no longer be sugarcane affected;

▪Crushing volume would be in line with 2021 but concentrated in the second semester.

◦In line with our expectations, we entered into an interharvest period from December 2021 to mid-March 2022 to allow our sugarcane to continue to recover from the impact of the frost. In terms of productivity, yields were impacted during 6M22 but presented a gradual recovery, from a year-over-year reduction of 40.9% in 1Q22 to 24.5% in 2Q22. Lastly, we have accelerated our crushing pace to make up for the slow start of the year. Indeed in July 2022 we marked a new monthly record of 1.5 million tons crushed in our cluster. Our operational forecast for the year was designed with these events in mind and, seeing as our view has so far materialized, our forecast remains unchanged.

Farming & Land Transformation business

◦Adjusted EBITDA in the Farming and Land Transformation business amounted to $20.0 million in 2Q22, marking a 38.4% or $12.5 million reduction compared to the same period of last year. The decline is fully explained by a lower contribution from our Crops and Rice businesses.

◦Focusing on our year-to-date results, which offer better insight than a standalone quarter, Adjusted EBITDA was $55.6 million, 37.3% lower than the previous year. Lower Adjusted EBITDA generation was driven by our Rice and Crops businesses, which fully offset the improved performance in our Dairy business. Results were mainly impacted by higher costs and a mixed performance of yields and 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 fertilizer, agrochemicals and diesel, as well as higher logistic costs, among others. In terms of yields, rice presented a 13% reduction (0.9 Tn/Ha) compared to the previous campaign as a consequence of La Niña weather effect, while peanut and corn second crop also performed below last year's average (4% and 11% lower, respectively). Regarding prices, while soybean, corn and wheat experienced a year-over-year increase, peanut and rice were 11% and 12% lower, respectively. In addition, rice prices at the time of harvest were 9% lower year-over-year which, together with the impact in yields, further contributed to a reduction in the mark-to-market of the biological asset.

Net Income & Adjusted Net Income

◦Net Income amounted to $18.1 million during 2Q22, marking a $2.4 million increase compared to the same period of last year. This was mostly explained by higher year-over-year EBITDA generation, coupled with income tax gains of $10.5 million versus expenses of $44.6 million in 2Q21, partially offset by the effect of foreign exchange on our dollar-denominated monetary assets and liabilities (nominal depreciation of the Brazilian Real of 10.6% compared to an appreciation of 12.2% during 2Q21; nominal depreciation of the Argentine Peso of 4.0% compared to 12.8% during 2Q22). Net income for the first six months of the year reached $83.3 million, $48.3 million or 137.9% higher compared to the previous year. This was driven by the above mentioned impact on taxes coupled with the effect of inflation accounting (higher exposure of our negative net monetary position to an inflation rate of 36.2% in 6M22 compared to 25.3% in 6M21).

◦Adjusted Net Income reached $44.0 million during 2Q22 and $58.7 million during the first semester, $57.8 million and $18.0 million higher than the previous year, respectively. We believe Adjusted Net Income is a more appropriate metric to reflect the Company's performance.

ADJUSTED NET INCOME (1)
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Net Income/(Loss)	18,111	15,666	15.6%	83,284	35,001	137.9%
Foreign exchange losses/(gains), net	29,165	(37,668)	n.m.	(25,019)	(16,828)	48.7%
Cash flow hedge - transfer from equity	17,769	12,729	39.6%	26,363	23,289	13.2%
Inflation accounting effects	(10,010)	(6,582)	52.1%	(17,276)	(3,637)	375.0%
Revaluation result - Investment property	1,375	2,140	(35.7)%	3,753	2,957	26.9%
Bargain purchase gain (2)	(12,365)	—	n.m.	(12,365)	—	n.m.
Adjusted Net Income / (Loss)	44,045	(13,715)	n.m.	58,740	40,782	44.0%

(1) Please see “Reconciliation of Non-IFRS measures” starting on page 32 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.

Remarks

Shareholder Distribution Policy Update

◦During the first seven months of the year, we repurchased 2.7 million shares at an average price of $7.96 per share, totaling $21.3 million. Going forward we expect to continue repurchasing shares, in line with our commitment to generate long term value for our shareholders.

◦On May 17th we made our first cash dividend payment of $17.5 million (approximately $0.1571 per share). The second installment shall be payable in or about November 2022 in an equal cash amount, resulting in an annual cash dividend of $35 million.

◦Share repurchases and dividend distribution are part of the company's distribution policy, which consists of a minimum distribution of 40% of the Adjusted Free Cash Flow from Operations (NCFO) generated during the previous year. In 2021, we generated $152.1 million of NCFO.

2021 Sustainability Report

◦On July 25th, we released our first Integrated Report, together with our audited 2021 Sustainability report. We prepared our reports following the Integrated Reporting Framework, GRI and SASB standards, and showing our contribution to the United Nation's 2030 Agenda.

◦Highlights include (i) over 650 thousand tons of carbon (CO2e) sequestered in 2021; (ii) over 90% of energy consumed is self-generated and renewable - plus energy exports to the local grid are enough to power a city of 1.1 million people; (iii) over 6,600 new jobs created since origin; (iv) 45% reduction in accident frequency rate 2021 vs. 2019; (v) creation of the ESG Committee to continue integrating ESG into the company's overall strategy and bring these topics to the forefront of our agenda.

◦Please visit our Sustainability micro website (https://sustainability.adecoagro.com/en) to access our reports and information on our sustainable business model.

Regulatory scenario in Brazil

◦The Brazilian government approved in June a package of measures (PLP 18) to reduce the tax burden on fuels until year-end. As gasoline has a heavier burden of PIS/COFINS and CIDE (federal taxes) and ICMS (state value added tax) compared to hydrous ethanol - its substitute at the pump - it became more attractive on relative terms. To restore ethanol’s attractiveness, two amendments (PEC 15 & 16) were voted by the Congress in July. They guarantee that (i) for the next 20 years, the ICMS tax differential previously enjoyed by hydrous ethanol will be preserved; and (ii) a BRL 3.8 billion compensation fund will be distributed among states based on consumption. Specific details on how they will be applied are yet to be defined.

◦We are in a solid position to face this scenario:

▪During April we sold all of our ethanol inventories and year-to-date production, achieving a record sale of 125 thousand m3 at an average price of 26.4 cts/lb sugar equivalent.

▪Our two mills in Mato Grosso do Sul can produce anhydrous ethanol. This product experienced an increase in demand, due to the 27% mandatory blend in gasoline, and now commands a 17%-18% price premium to hydrous ethanol. We have an installed capacity to produce an ethanol mix of up to 70% anhydrous ethanol (1,700 m3/day).

▪We are one of the few players in Brazil certified to export anhydrous ethanol and who can reach the level of purity required in Europe. This competitive advantage enables us to capture a price premium over domestic prices. So far we have exported 20% of our production to Europe, at a premium of 300-400 BRL/m3 (approximately 60-80 USD/m3) .

▪Our ethanol storage capacity amounts to 267 thousand m3, enough to carry-over our production until year-end when supply is limited and prices increase. This flexibility reduces our exposure to spot prices.

| Sugar, Ethanol & Energy Segment - Operational Performance | | --- || SUGAR, ETHANOL & ENERGY - SELECTED INFORMATION | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Operating Data | Metric | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Milling | | | | | | | | | Sugarcane Milled | tons | 3,301,556 | 3,473,558 | (5.0)% | 3,573,968 | 5,560,746 | (35.7)% | | Own Cane | tons | 3,238,347 | 3,367,855 | (3.8)% | 3,510,759 | 5,447,218 | (35.5)% | | Third Party Cane | tons | 63,209 | 105,704 | (40.2)% | 63,209 | 113,529 | (44.3)% | | Production | | | | | | | | | TRS Equivalent Produced | tons | 413,941 | 499,841 | (17.2)% | 440,043 | 745,973 | (41.0)% | | Sugar | tons | 83,719 | 196,218 | (57.3)% | 84,582 | 290,336 | (70.9)% | | Ethanol | M3 | 191,158 | 173,302 | 10.3% | 205,880 | 261,025 | (21.1)% | | Hydrous Ethanol | M3 | 108,664 | 114,998 | (5.5)% | 116,222 | 192,889 | (39.7)% | | Anhydrous Ethanol | M3 | 82,494 | 58,304 | 41.5% | 89,658 | 68,136 | 31.6% | | Sugar mix in production | % | 21% | 41% | (48.5)% | 20% | 41% | (50.6)% | | Ethanol mix in production | % | 79% | 59% | 33.7% | 80% | 59% | 34.7% | | Energy Exported (sold to grid) | MWh | 187,634 | 229,810 | (18.4)% | 205,688 | 308,699 | (33.4)% | | Cogen efficiency (KWh sold/ton crushed) | KWh/ton | 56.8 | 66.2 | (14.1)% | 57.6 | 55.5 | 3.7% | | Agricultural Metrics | | | | | | | | | Harvested own sugarcane | tons | 3,238,347 | 3,367,855 | (3.8)% | 3,510,759 | 5,447,218 | (35.5)% | | Harvested area | Hectares | 53,614 | 42,106 | 27.3% | 59,771 | 69,888 | (14.5)% | | Yield | tons/hectare | 60 | 80 | (24.5)% | 59 | 78 | (24.6)% | | TRS content | kg/ton | 119 | 135 | (11.8)% | 117 | 126 | (7.0)% | | TRS per hectare | kg/hectare | 7,177 | 10,770 | (33.4)% | 6,892 | 9,829 | (29.9)% | | Mechanized harvest | % | 99.6% | 99.4% | 0.2% | 99.7% | 99.7% | —% | | Area | | | | | | | | | Sugarcane Plantation | hectares | 188,560 | 183,043 | 3.0% | 188,560 | 183,043 | 3.0% | | Expansion & Renewal Area | hectares | 10,491 | 7,801 | 34.5% | 17,461 | 14,942 | 16.9% |

As mentioned in past releases, in July 2021 a cold front hit Brazil's key productive areas causing frost damage on sugarcane plantations in various regions including São Paulo and Paraná states, as well as Mato Grosso do Sul and Minas Gerais. At that moment, we communicated to the market what we believed would be the potential implications for our business:

•Sugarcane availability would be limited by 2021 year-end and beginning of 2022, leading to a short interharvest period;

•Productivity indicators would be below average during the first semester of 2022 but would return to normal levels towards the second half of the year as there would no longer be sugarcane impacted by the frost;

•Crushing volume would be in line with 2021 but concentrated towards the second half of the year.

So far results have been in line with our expectations. Despite normally operating based on a continuous harvest model (meaning that we can crush cane year-round), we entered into a short interharvest period from December 2021 to mid-March 2022. In terms of productivity, yields were impacted during 6M22 but presented a gradual recovery, from a year-over-year reduction of 40.9% during 1Q22 to 24.5% during 2Q22, pointing at a gradual recovery, in line with our view. Lastly, we accelerated our crushing pace and in July 2022 we marked a new monthly record of 1.5 million tons crushed in our cluster.

Our operational forecast for the year was designed with these events in mind and hence, seeing as our view has so far materialized, our forecast remains unchanged.

Going into the results of the quarter, during 2Q22 our crushing volume amounted to 3.3 million tons of sugarcane, compared to 3.5 million during the same period of last year. As stated above, sugarcane yields during the quarter were 24.5% lower compared to the same period of last year reaching 60 tons per hectare, while TRS content presented a 11.8% reduction reaching 119.0 kg/ton. These reductions - which resulted in a 33.4% drop in TRS production per hectare - were fully explained by the lagging impact of adverse weather conditions, as most of the harvested area was cane below its optimal growth stage. Despite lower productivity indicators, crushing volume was only 5.0% lower than last year due to a 27.3% increase in harvested area. The improvement in cane availability and the positive outlook in terms of productivity due to above average rainfalls during March and April, allowed us to increase our crushing pace and continue to take advantage of the constructive price scenario.

On a year-to-date basis crushing volume reached 3.6 million, 35.7% lower compared to the same period of last year. This was fully explained by the dynamics of the first quarter, namely the late start of crushing activities and the fact that harvesting activities were mostly concentrated on reform areas with limited growth potential. Sugarcane yields during 6M22 reached 59 tons per hectare while TRS content reached 117 kg/ton, marking an year-over-year reduction of 24.6% and 7.0% respectively. This strategy enabled us to (i) allow areas with greater potential to continue to grow; (ii) liberate area to plant new high-yielding cane available for next harvest season; and (iii) maximize ethanol and capture attractive prices.

In terms of mix, in line with our strategy to maximize production of the product with the highest marginal contribution, we diverted as much as 79% of our TRS to ethanol to profit from higher relative prices. During the quarter hydrous and anhydrous ethanol in Mato Grosso do Sul traded at 23.0 cts/lb and 25.2 cts/lb, 19.1% and 30.6% premium to sugar, respectively. To further take advantage of price premiums, 43% of our total ethanol production was anhydrous ethanol, compared to 34% during 2Q21. 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.

Year-to-date we diverted as much as 80% of our TRS to ethanol, the product trading at a price premium. Although production of both ethanol and sugar was lower as a consequence of the reduction in crushing volume, this was offset by higher average prices which we were able to capture thanks to our high inventories at the start of this year which were 56% higher than in 2021 in the case of ethanol and 75% in the case of sugar.

Exported energy during the quarter totaled 188 thousand MWh, 18.4% lower compared to the same period of 2021, as a consequence of (i) the reduction in crushing volume, and (ii) our commercial strategy to carry bagasse and postpone energy sales in the spot market, expecting prices to increase from current levels. Cogeneration efficiency ratio stood at 56.8 KWh/ton, 14.1% lower year-over-year, driven by the lower exported volume. Year-to-date exported energy amounted to 206 thousand, 33.4% lower year-over-year, fully explained by the reduction in crushing volume.

As of June 30, 2022, our sugarcane plantation consisted of 188,560 hectares, 3.0% higher compared to the same period of last year. Sugarcane planting continues to be a key strategy to supply our mills with quality raw material at low cost. During 2Q22, we planted a total of 10,491 hectares of sugarcane. Of this total planted area, 8% or 803 hectares were expansion areas planted to supply our growing crushing capacity and 92% or 9,688 hectares were areas planted to renew old plantations with newer and high-yielding sugarcane, thus allowing us to maintain the productivity of our plantation.

Sugar, Ethanol & Energy Segment - Financial Performance
SUGAR, ETHANOL & ENERGY - HIGHLIGHTS
---	---	---	---	---	---
thousands	2Q21	Chg %	6M22	6M21	Chg %
Net Sales (1)(2)	154,398	10.0%	242,740	229,102	6.0%
Margin on Manufacturing and Agricultural Act. Before Opex	59,231	22.2%	128,853	117,476	9.7%
Adjusted EBITDA	73,586	41.8%	161,636	131,740	22.7%
Adjusted EBITDA Margin (3)	47.7%	28.9%	66.6%	57.5%	15.8%
Adjusted EBIT	31,248	75.0%	97,412	67,359	44.6%
EBITDA per ton crushed (/Tn)	21.2	49.2%	45.2	23.7	90.9%
EBIT per ton crushed (/Tn)	9.0	84.1%	27.3	12.1	125.0%
(1) Net Sales are calculated as Gross Sales net of sales taxes. Please see “Reconciliation of Non-IFRS measures” starting on page 32 for a reconciliation of Adjusted EBITDA and Adjusted EBIT to Profit/Loss.
(2) Net Sales in 2Q22 include 5.8 million and in 2Q21 include 6.6 million corresponding to the sale of 9.8 thousand and 15.0 thousand tons of soybean, respectively. Net Sales in 6M22 include 10.5 million and in 6M21 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. Meiosis is based on planting 2 lines called “mother lines” for every 8 lines left unplanted. Once the sugarcane in the mother lines grow and the cut is made, it is used as muda for the remaining 8 lines. As 20% of the sugarcane is planted first, it is 1 year older than the 80% balance, allowing for cover crops to be planted in the meantime. Planting harvestable cover crops results in lower sugarcane production costs, greater planting efficiency and the potential to monetize additional sales.

All values are in US Dollars.

Net sales amounted to $169.8 million during 2Q22 and $242.7 million during 6M22, 10.0% and 6.0% higher year-over-year, respectively. In both cases, the increase was driven by (i) higher average selling prices of all the products we commercialize (measured both in BRL as well as in U.S. dollars), especially ethanol which presented an increase of over 40%; coupled with (ii) higher selling volumes of ethanol and carbon credits.

Year-to-date, despite the late start of harvesting activities and thus the lower production, we were able to benefit from the constructive price scenario, in particular to capture the hike in ethanol prices both domestically and in export markets, due to our commercial strategy to carry-over stock from 2021. During April we marked a monthly record of 125 thousand m3 of ethanol sold, at an average price of 26.4 cts/lb sugar equivalent.

Adjusted EBITDA during 2Q22 amounted to $104.4 million, 41.8% or $30.8 million higher year-over-year. This was driven by (i) the aforementioned increase in sales; (ii) a $10.4 million year-over-year gain in the mark-to-market of our unharvested cane led by higher expected yields and prices, coupled with an increase in Consecana prices which resulted in a gain in the mark-to-market of our harvested cane; (iii) a $9.2 million year-over-year gain in the mark-to-market of our commodity hedge position driven by a decrease in prices. Results were partially offset by an increase in costs mostly driven by fertilizers, fuels, lubricants, in addition to the slight reduction in volume. These same drivers explain the 22.7% year-over-year increase in Adjusted EBITDA during 6M22, which amounted to $161.6 million. EBITDA per ton crushed amounted to 31.6 $/Tn in 2Q22 and 45.2 $/Tn in 6M22, marking a 49.2% and 90.9% increase year-over-year, respectively. EBIT per ton crushed, in turn, presented a year-over-year increase of 84.1% in 2Q22 and 125.0% in 6M22.

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

SUGAR, ETHANOL & ENERGY - NET SALES BREAKDOWN (1)
	thousands			Units			(/unit)
	2Q22	Chg %	2Q22	2Q21	Chg %	2Q22	2Q21
Sugar (tons)	20,239	(71.7)%	45,849	198,071	(76.9)%	441	361
Ethanol (cubic meters)	129,037	98.8%	172,334	124,060	38.9%	749	523
Hydrous Ethanol (cubic meters)	65,008	105.3%	90,621	66,236	36.8%	717	478
Anhydrous Ethanol (cubic meters)	64,029	92.5%	81,713	57,824	41.3%	784	575
Energy (Mwh) (2)	9,544	(15.6)%	204,087	276,834	(26.3)%	47	41
CBios (4)	5,154	n.m.	252,557	10,000	n.m.	20	5
TOTAL (3)	163,974	10.9%
	thousands			Units			(/unit)
	6M22	Chg %	6M22	6M21	Chg %	6M22	6M21
Sugar (tons)	28,000	(71.1)%	62,992	260,459	(75.8)%	444	371
Ethanol (cubic meters)	185,880	71.7%	257,928	221,171	16.6%	721	490
Hydrous Ethanol (cubic meters)	80,876	48.2%	116,705	118,437	(1.5)%	693	461
Anhydrous Ethanol (cubic meters)	105,004	95.5%	141,223	102,733	37.5%	744	523
Energy (Mwh) (2)	11,236	(24.6)%	268,942	396,346	(32.1)%	42	38
CBios (4)	7,094	1,086.6%	386,780	112,096	245.0%	18	5
TOTAL (3)	232,210	5.6%
(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.
(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. For presentation and comparison purposes we are including 2Q21's & 6M21's figures in the sales line although they are not included in the actual calculation of sales during that year.

All values are in US Dollars.

At the beginning of 2Q22 prices for sugar and ethanol continued to be constructive as the market factored in (i) the late start of harvesting activities in Center-South Brazil due to the lagging impact of 2021's adverse weather; and (ii) strong international oil prices which drove ethanol prices and, in turn, sugar. Towards the end of 2Q22, prices experienced downward pressure caused by regulatory changes in Brazil (please refer to page 4 and page 29) and by funds unwinding their position. It is important to highlight that supply and demand fundamentals remain constructive for both sugar and ethanol. Our commercial flexibility to sell both into domestic and export market and to carry-over production, enabled us to continue securing solid prices. We believe we are in a good position to continue to capture attractive prices as we still have unhedged 60% of sugar and 83% of ethanol production related to the 22/23 campaign.

Sugar sales reached $20.2 million during 2Q22, marking a year-over-year reduction of 71.7%. This decrease was driven by a 76.9% decrease in selling volumes due to lower production and higher carry-over relative to sales, partially offset by a 22.1% increase in average prices which reached 20.0 ct/lb. Year-to-date sugar sales amounted to $28.0 million, 71.1% lower compared to 6M21, also driven by a 75.8% decrease in volume partially offset by a 19.7% increase in average selling prices.

Ethanol sales during 2Q22 amounted to $129.0 million, 98.8% higher year-over-year. This was explained by a 43.1% increase in average selling prices measured in U.S. dollars coupled with a 38.9% increase in average selling volume. Volume sold was mostly concentrated in April, when ethanol prices peaked driven by a delay in the beginning of harvesting activities in Brazil. We took advantage of this scenario and conducted a monthly record sale of 125 thousand m3, effectively clearing our tanks, at an average price of 26.4 cts/lb sugar equivalent. During June we began building inventory to be sold towards year-end at higher expected prices. In addition, to profit from higher prices abroad, during the quarter we exported 10.0 thousand m3 at an average price of 21.7 cts/lb, at a time when domestic prices traded at lower levels. 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.

During 2Q22 the average selling price of hydrous ethanol presented a 50.1% year-over-year increase while anhydrous ethanol increased by 36.2% (standing at 23.7 cts/lb and 26.1 cts/lb sugar equivalent, respectively - resulting in an average selling price of ethanol of 24.8 cts/lb). In terms of volume sold, anhydrous ethanol increased 41.3% year-over-year and accounted for 47% of volume, in line with 2Q21.

Year-to-date, ethanol sales amounted to $185.9 million, 71.7% higher compared to 6M21 driven by a 47.2% increase in average selling prices coupled with a 16.6% increase in selling volume. Exports amounted to 20.4 thousand m3 at an average price of 20.8 cts/lb, and we have already secured an additional 54.0 thousand m3 which will be registered until year-end.

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. During 2Q22 we sold $5.2 million worth of carbon credits at an average price of 114 BRL/CBio (23 $/CBio) - net price of 20 $/CBio-, 4x higher than during 2Q21.

Year-to-date we sold 386,780 CBios, amounting to $7.1 million. Following the end of the first semester, prices of carbon credits decreased in mid-July (please refer to page 29). However, prior to that, we cleared out our stock of CBios at an average price of 145 BRL/CBio (29 $/CBio), achieving prices as high as 200 BRL/CBio (40 $/CBio).

In the case of energy, net sales amounted to $9.5 million during 2Q22 and $11.2 million during 6M22, marking a year-over-year reduction of 15.6% and 24.6%, respectively. Higher average selling prices were fully offset by a decrease in selling volumes as a consequence of lower crushing and of our commercial decision to carry over bagasse in order to benefit from higher expected prices.

As shown in the table below, total production costs excluding depreciation and amortization reached 9.3 cents per pound year-to-date and 9.2 during the last twelve months of 2022. This marked a year-over-year increase of 88.9% and 92.5%, respectively. In both cases, the increase was driven by a lower dilution of fixed costs coupled with higher costs of inputs, fertilizers, diesel and salaries, among others. Year-to-date the reduction in crushing volume reached 2.0 million tons year-over-year, explained by the first quarter

dynamics, in addition to lower TRS content. On a last twelve month basis, the reduction in crushing volume was 3.5 million tons, as it captures the early start of interharvest period during 2021 and the late start of crushing activities in 2022, enhanced by weak agricultural productivity indicators. On a full year basis, we expect costs to increase in line with inflation vis a vis 2021.

SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS
	Total Cost ('000)		Total Cost per Pound (cts/lbs)
YEAR TO DATE	6M22	Chg %	6M2	6M21	Chg %
Industrial costs	33,181	15.6%	3.8	1.9	93.3%
Industrial costs	31,050	24.1%	3.5	1.7	107.4%
Cane from 3rd parties	2,130	(41.9)%	0.2	0.2	(2.9)%
Agricultural costs	112,894	4.4%	12.8	7.3	74.6%
Harvest costs	41,276	2.2%	4.7	2.7	70.9%
Cane depreciation	24,244	(10.7)%	2.7	1.8	49.4%
Agricultural Partnership Costs	20,394	30.8%	2.3	1.1	118.7%
Maintenance costs	26,980	7.9%	3.1	1.7	80.4%
Total Production Costs	146,075	6.8%	16.5	9.3	78.5%
Depreciation & Amortization PP&E	(64,225)	(0.3)%	(7.3)	(4.4)	66.8%
Total Production Costs (excl D&A)	81,850	13.0%	9.3	4.9	88.9%

All values are in US Dollars.

SUGAR, ETHANOL & ENERGY - PRODUCTION COSTS
	Total Cost ('000)		Total Cost per Pound (cts/lbs)
LAST TWELVE MONTHS	LTM 21/22	Chg %	LTM 21/22	LTM 20/21	Chg %
Industrial costs	84,515	15.5%	3.8	2.1	76.0%
Industrial costs	70,635	20.6%	3.1	1.7	83.8%
Cane from 3rd parties	13,880	(4.9)%	0.6	0.4	44.9%
Agricultural costs	265,601	16.6%	11.8	6.6	77.7%
Harvest costs	90,272	6.3%	4.0	2.5	62.1%
Cane depreciation	63,297	6.8%	2.8	1.7	62.8%
Agricultural Partnership Costs	47,171	53.5%	2.1	0.9	134.0%
Maintenance costs	64,861	22.5%	2.9	1.5	86.8%
Total Production Costs	350,116	16.3%	15.6	8.8	77.3%
Depreciation & Amortization PP&E	(143,834)	4.5%	(6.4)	(4.0)	59.3%
Total Production Costs (excl D&A)	206,282	26.3%	9.2	4.8	92.5%

All values are in US Dollars.

SUGAR, ETHANOL & ENERGY - CHANGES IN FAIR VALUE
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Sugarcane Valuation Model current period	96,683	52,577	83.9%	96,683	52,577	83.9%
Sugarcane Valuation Model previous period	123,486	78,203	57.9%	64,364	71,506	(10.0)%
Total Changes in Fair Value	(26,803)	(25,625)	4.6%	32,319	(18,929)	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) amounted to a loss of $26.8 million during 2Q22, in line with the same period of last year. During 2Q22 the loss was mostly explained by a strengthening of the Brazilian currency, while during 2Q21 it was mostly driven by a reduction in expected yields and sugarcane availability caused by adverse weather events.

On a year-to-date basis, Total Changes in Fair Value of Unharvested Biological Assets represented a gain of $32.3 million. Year-over-year it represented a gain of $51.2 million, mostly explained by (i) higher expected yields and TRS content, favored by a recovery of our sugarcane plantation following the impact of adverse weather during 2021; coupled with (ii) higher expected prices.

Farming - Operational Performance

2021/22 Harvest Year

FARMING PRODUCTION DATA
Planting & Production	Planted Area (hectares)			2021/22 Harvested Area			Yields (Tons per hectare)
	2021/22	2020/21	Chg %	Hectares	% Harvested	Production	2021/22	2020/21	Chg %
Soybean	43,515	36,975	17.7%	43,515	100.0%	128,619	3.0	2.8	5.5%
Soybean 2nd Crop	27,559	31,340	(12.1)%	27,559	100.0%	49,328	1.8	2.2	(19.2)%
Corn (1)	48,344	46,916	3.0%	36,855	76.2%	248,540	6.7	6.3	6.4%
Corn 2nd Crop	9,192	9,663	(4.9)%	3,221	35.0%	13,701	4.3	4.8	(11.3)%
Wheat (2)	46,509	44,392	4.8%	46,509	100.0%	137,731	3.0	2.8	7.5%
Sunflower	23,092	16,164	42.9%	23,092	100.0%	39,046	1.7	1.8	(3.9)%
Cotton	7,427	3,519	111.1%	4,277	57.6%	2,056	0.5	0.5	0.2%
Peanut	22,102	26,123	(15.4)%	22,102	100.0%	62,576	2.8	3.0	(4.4)%
Other (3)	3,246	2,747	18.2%	3,246	100.0%	5,238	1.6	0.9	86.6%
Total Crops	230,986	217,840	6.0%	210,375	91.1%	686,837
Rice (4)	60,857	44,282	37.4%	60,857	100.0%	416,735	6.9	7.8	(12.5)%
Total Farming	291,843	262,122	11.3%	271,233	92.9%	1,103,572
Owned Croppable Area	112,360	111,009	1.2%
Leased Area	142,732	109,190	30.7%
Second Crop Area	36,750	41,924	(12.3)%
Total Farming Area	291,843	262,122	11.3%
	Milking Cows <br>(Average Heads)			Milk Production <br>(MM liters)			Productivity <br>(Liters per cow per day)
Dairy	2Q22	2Q21	Chg %	2Q22	2Q21	Chg %	2Q22	2Q21	Chg %
Milk Production	14,485	12,880	12.5%	45.5	41.9	8.7%	34.5	35.7	(3.3)%

(1) Includes sorghum.

(2) Includes barley and peas.

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

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

As of end of July 2022, we harvested 271,233 hectares - 92.9% of total planted area - and produced 1,103,572 tons of grains. The remaining hectares are expected to be fully harvested during August. Regarding our Rice business, this quarter we included 11,813 hectares related to our recent acquisition of Viterra's rice operations, which had an average yield of 7.3 Tn/Ha and marginally increased this campaign's average yield from 6.8 to 6.9 Tn/Ha. As anticipated, geographical diversification will enable us to mitigate weather risk.

Crops Update

Soybean 1st crop: As of the end of July, we completed the harvest of 43,515 hectares of soybean obtaining an average yield of 3.0 Tn/Ha. Although rains in some regions were below historical average on account of La Niña weather event, other regions reported good rainfall that enabled us to reach yields almost 0.2 Tn/Ha above the previous campaign. The adoption of defensive strategies, including genetic selection and delaying planting dates, coupled with rains observed during mid-January and February allowed us to perform as expected.

Corn: We completed harvesting activities for early corn (19,577 hectares). During this campaign we observed different climate conditions throughout the regions where we operate. North of Buenos Aires province, Entre Ríos province and the center of Santa Fe province were exposed to dry weather during spring, thus achieving yields that were below our expectations. On the other hand, humidity conditions were good in the west, southeast and southwest of Buenos Aires province and the south of Santa Fe province; consequently reaching solid yields. As most of our surface area is based in these regions, we obtained an average yield of 7.7 Tn/Ha, 0.4 Tn/Ha above the prior campaign. Regarding late corn, we have so far harvested 54% of the 37,740 hectares, forecasting a yield of 5.5 Tn/Ha.

Peanut: As of the end of July, peanut harvest was completed with an average yield of 2.8 Tn/Ha, slightly below forecast. Yields observed throughout our productive areas were diverse. We reached outstanding yields in the regions where rainfalls were plenty, whereas other zones experienced lower amount of rains and frost events, performing below expectations.

Sunflower: We concluded harvesting activities for sunflower, reaching yields of 1.7 Tn/Ha, 0.1 Tn/Ha lower than the previous campaign. Higher temperatures registered during January, along with a later excess of rainfalls were the main drivers towards the slight decrease. Nevertheless, lower yields were offset by higher prices for sunflower oil and bakery, driven by the conflict in Europe (although not replicated for confectionary sunflower).

Winter Crops: We have almost concluded planting activities for our winter crops in the areas where humidity conditions were good. In the northern region of Argentina, however, dry weather did not allow us to perform planting activities. This will be compensated by planting summer crops in that area, later this year. We have planted 26,479 hectares of wheat, 6,000 hectares of barley, and we are starting planting activities for peas. In addition, we planted 60,000 hectares of cover crops. This strategy helps us to prevent water and wind erosion, to reduce the need for phytosanitary products, to provide roots that increase soil porosity, among other benefits.

| Farming & Land Transformation Financial Performance | | --- || FARMING & LAND TRANSFORMATION BUSINESS - FINANCIAL HIGHLIGHTS | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Gross Sales | | | | | | | | Farming | 201,963 | 124,415 | 62.3% | 330,310 | 219,980 | 50.2% | | Total Sales | 201,963 | 124,415 | 62.3% | 330,310 | 219,980 | 50.2% | | Adjusted EBITDA (1) | | | | | | | | Farming | 17,972 | 32,840 | (45.3)% | 52,386 | 83,866 | (37.5)% | | Land Transformation | 2,023 | (395) | n.a. | 3,182 | 4,731 | (32.7)% | | Total Adjusted EBITDA (1) | 19,995 | 32,445 | (38.4)% | 55,568 | 88,597 | (37.3)% | | Adjusted EBIT (1) | | | | | | | | Farming | 10,782 | 27,513 | (60.8)% | 38,915 | 73,465 | (47.0)% | | Land Transformation | 2,023 | (395) | n.a. | 3,182 | 4,731 | (32.7)% | | Total Adjusted EBIT (1) | 12,805 | 27,118 | (52.8)% | 42,097 | 78,196 | (46.2)% |

(1) Please see “Reconciliation of Non-IFRS measures” starting on page 32 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 $20.0 million in 2Q22, marking a 38.4% or $12.5 million reduction compared to the same period of last year. The decline is fully explained by a lower contribution from our Crops and Rice businesses into overall results. Higher costs driven by a global inflationary environment was the main reason towards the decrease, as well as lower yields. Thus, this lower Adjusted EBITDA generation fully offset a $2.0 million gain reported by Land Transformation, which represents the revaluation tied to the soybean prices of the receivables to collect from sales of previous years. Our Dairy business reported flattish year-over-year results.

On a year-to-date basis, Adjusted EBITDA was $55.6 million, 37.3% lower than the previous year. Despite a 17.6% year-over-year increase reported in our Dairy business, lower Adjusted EBITDA generation was driven by our Rice and Crops businesses. Results were mainly impacted by higher costs and a mixed performance of yields and prices.

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

| Crops Segment | | --- || CROPS | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Highlights | metric | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Gross Sales | $ thousands | 92,201 | 55,250 | 66.9% | 131,632 | 86,828 | 51.6% | | | tons | 244,136 | 165,062 | 47.9% | 321,672 | 248,764 | 29.3% | | | $ per ton | 378 | 335 | 12.8% | 409 | 349 | 17.2% | | Adjusted EBITDA | $ thousands | 5,948 | 16,263 | (63.4)% | 24,438 | 34,176 | (28.5)% | | Adjusted EBIT | $ thousands | 4,018 | 14,744 | (72.7)% | 20,698 | 31,212 | (33.7)% | | Planted Area | hectares | 230,986 | 217,840 | 6.0% | 230,986 | 217,840 | 6.0% |

In 2Q22, gross sales in our Crops segment reached $92.2 million, 66.9% or $37.0 million higher compared to 2Q21. Higher revenues were explained by a 47.9% increase in average selling volumes, coupled with a 12.8% increase in average selling prices. Commodity prices traded at high levels during most of the quarter as a result of (i) the conflict in Europe which continued to generate uncertainty regarding global supply of certain commodities, such as wheat and corn; coupled with (ii) a reduction in supply from South America's 2021/22 campaign impacted by "La Niña" event. Nevertheless, by beginning of June prices started to face downward pressure driven by a challenging global macro scenario, global inflation, a hike in interest rates, along with fear of a possible recession in the United States. Despite this, average selling prices for most of our crops increased year-over-year, ranging from 40 $/Mt in corn to 114 $/Mt in the case of wheat. Peanut, on the other hand, presented a 21.1% drop in prices.

Adjusted EBITDA amounted to $5.9 million in 2Q22, marking a 63.4% or $10.3 million reduction compared to the same period of last year. Results were mainly impacted by higher costs in U.S. dollar terms driven by a global inflationary environment pressuring margins. Consequently, we experienced an increase in agricultural input costs, such as fertilizers and diesel, coupled with higher logistics costs (freights costs were 48% higher in U.S. dollars compared to 2Q21). Moreover, we reported a year-over-year loss of $5.9 million in the mark-to-market of our forward contracts due to higher commodity prices. These impacts were partially offset by the aforementioned increase in gross sales, along with a year-over-year gain of $5.4 million in the mark-to-market of our biological assets on higher harvested area and better prices.

On a year-to-date basis, gross sales were $131.6 million, 51.6% higher than compared to 6M21, driven by a 29.3% year-over-year increase in average selling volumes, coupled with a 17.2% increase in average selling prices. Adjusted EBITDA for the first six months of the year was $24.4 million, marking a 28.5% or $9.7 million reduction compared to the previous year. Lower Adjusted EBITDA generation for the first semester is mostly explained by (i) higher costs in U.S. dollar terms driven by global inflation; (ii) a mixed performance in terms of yields, with peanut and corn second crop presenting a 4% and 11% reduction, respectively, compared to the previous campaign; and loss in the mark-to-market of our forward contracts.

CROPS - GROSS SALES BREAKDOWN
	Amount ( '000)	Volume		per unit
Crop	2Q22	Chg %	2Q22	2Q21	2Q22	2Q21	Chg %
Soybean	37,478	40.6%	92,578	79,978	405	333	21.4%
Corn (1)	27,853	103.9%	113,643	67,310	245	203	20.7%
Wheat (2)	3,053	315.9%	10,037	3,866	304	190	60.2%
Sunflower	7,598	53.9%	8,723	6,500	871	759	14.7%
Cotton Lint	386	n.m.	331	—	1,166	—	n.m.
Peanut	13,222	68.9%	14,262	6,657	927	1,176	(21.1)%
Others	2,611	82.4%	4,562	751
Total	92,201	66.9%	244,136	165,062

All values are in US Dollars.

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

CROPS - GROSS SALES BREAKDOWN
	Amount ( '000)	Volume		per unit
Crop	6M22	Chg %	6M22	6M21	6M22	6M21	Chg %
Soybean	39,867	32.1%	97,625	90,700	408	333	22.7%
Corn (1)	31,449	69.1%	123,700	91,632	254	203	25.3%
Wheat (2)	13,852	88.7%	51,872	35,990	267	204	30.9%
Sunflower	11,436	48.5%	13,427	11,721	852	657	29.7%
Cotton Lint	1,202	n.m.	1,138	—	1,056	—	n.m.
Peanut	29,217	43.2%	26,794	16,665	1,090	1,224	(10.9)%
Others	4,609	76.3%	7,116	2,056
Total	131,632	51.6%	321,672	248,764

All values are in US Dollars.

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

The table below shows the gains and losses from crop production generated during the first six months of 2022. A total of 231,448 hectares were planted in the 2021/22 crop season, out of which 196,807 hectares have already been harvested. As of June 30, 2022, total Changes in Fair Value, which reflect the margin of both the crops that have already been harvested and the expected margin of those that are still on the ground with significant biological growth, was $55.7 million, compared to $38.8 million generated during the same period of last year. The main driver for the increase in margins was the increase in commodity prices, especially wheat, corn and soybean, partially offset by higher costs due to a global inflationary environment which led to an increase in agricultural input costs.

CROPS - CHANGES IN FAIR VALUE BREAKDOWN - AS OF JUNE 30, 2022 (1)
6M22	metric	Soy	Soy 2nd Crop	Corn	Corn 2nd Crop	Wheat	Sunflower	Cotton	Peanut	Total
2021/22 Harvest Year
Total Planted Area	Hectares	49,217	27,559	48,233	9,192	44,160	23,092	7,427	22,569	231,448
Area planted in initial growth stages	Hectares	—	—	—	—	—	—	—	—	—
Area planted with significant biological growth	Hectares	614	338	17,809	8,570	—	—	4,684	2,628	34,643
Changes in Fair Value 6M22 from planted area 2021/22	$ thousands	428	(60)	2,660	2,531	—	—	566	(321)	5,803
Total Harvested area	Hectares	48,605	27,221	30,424	622	44,160	23,092	2,743	19,941	196,807
Area harvested in previous periods	Hectares	—	—	—	—	44,160	—	—	—	44,160
Area harvested in current period	Hectares	48,605	27,221	30,424	622	—	23,092	2,743	19,941	152,647
Changes in Fair Value 6M22 from harvested area 2021/22	$ thousands	15,847	8,904	19,230	392	—	2,192	(3)	3,368	49,930
Total Changes in Fair Value in 6M22	$ thousands	16,275	8,843	21,890	2,922	—	2,192	563	3,047	55,733

(1) Planted and harvested area figures as of June 30th, 2022. Soybean includes other crops such as beans, sesame, chia and sorghum.

Rice Segment
RICE
---	---	---	---	---	---	---	---	---	---	---	---
Highlights		metric	2Q22		2Q21		Chg %		6M22		6M21	Chg %
Gross Sales		thousands	46,287		31,392		47.4%		79,956		58,814	35.9%
Sales of white rice		84.4	48.5		74.2%		144		93		53.9%
	per ton			(13.5)%		480		542		(11.5)%
	thousands			50.6%		68,871		50,554		36.2%
Sales of By-products		5,783	4,494		28.7%		11,085		8,260		34.2%
Adjusted EBITDA		4,859	9,598		(49.4)%		13,109		37,935		(65.4)%
Adjusted EBIT		2,237	7,641		(70.7)%		8,353		34,174		(75.6)%
Area under production (2)		60,857	44,282		37.4%		60,857		44,282		37.4%
Rice Mills
Total Processed Rough Rice(1)		thousand tons	74		56		31.2%		134		108	23.9%
Ending stock - White Rice		63	47		34.2%		63		47		34.2%

All values are in US Dollars.

(1) Expressed in white rice equivalent.

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

Gross sales during 2Q22 reached $46.3 million, 47.4% or $14.9 million higher compared to 2Q21, whereas for the first semester sales amounted to $80.0 million, marking a 35.9% increase versus 6M21. In both cases, results were explained by an increase in selling volumes (74.2% and 53.9%, respectively) on higher exports. It is worth highlighting that volumes sold during 2Q22 include inventory related to our recent acquisition of Viterra’s rice operations, closed in May 2022. Higher sales were partially offset by a decrease in average selling prices driven by a change in mix, in addition to 2021's figures being positively impacted by a strong demand from Brazil at post pandemic prices.

Adjusted EBITDA was $4.9 million in 2Q22 and $13.1 million in 6M22, marking a 49.4% and 65.4% year-over-year reduction, respectively. Results were mainly impacted by lower yields and a 9% decline in prices at the moment of harvest. This resulted in a 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 of $3.2 million in 2Q22 and of $20.0 million in 6M22. Regarding yields, the decrease was caused by the impact of "La Niña" in some of our rice farms. It is worth highlighting that the 12.5% year-over-year decrease in yields to 6.9 Tn/Ha is also related to last year's record high. We are confident that the acquisition of Viterra’s rice operations will contribute to mitigate weather risk and increase our geographic diversification in the region. EBITDA generation was also negatively impacted by higher costs in U.S. dollar terms driven by a global inflationary environment. This generated an increase in agricultural input costs, along with higher logistics costs which pressured margins.

| Dairy Segment | | --- || DAIRY | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Highlights | | metric | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Gross Sales | | $ thousands (1) | 62,042 | 37,321 | 66.2% | 116,847 | 73,485 | 59.0% | | | | million liters (2) (3) | 96.8 | 81.7 | 18.5% | 196.4 | 174.8 | 12.3% | | Adjusted EBITDA | | $ thousands | 7,206 | 7,347 | (1.9)% | 14,205 | 12,076 | 17.6% | | Adjusted EBIT | $ thousands | 4,628 | 5,480 | (15.5)% | 9,346 | 8,464 | 10.4% | | Dairy - Farm | | | | | | | | | | Milking Cows | average heads | 14,485 | 12,880 | 12.5% | 14,409 | 12,413 | 16.1% | | Cow Productivity | | liter/cow/day | 34.5 | 35.7 | (3.3)% | 34.7 | 36.1 | (3.9)% | | Total Milk Produced | million liters | 45.5 | 41.9 | 8.7% | 90.5 | 81.2 | 11.5% | | Dairy - Industry | | | | | | | | | | Total Milk Processed | million liters | 85.9 | 80.6 | 6.6% | 176.1 | 156.3 | 12.7% | | (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. | | | | | | | | | (3) The difference between volume processed and volume sold is explained by the sale of raw milk to third parties. | | | | | | | |

In 2Q22, milk production at the farm level was 45.5 million liters, marking an 8.7% increase compared to the same period of last year. This was mainly explained by a 12.5% increase in our dairy cow herd, which reached an average of 14,485 milking cows during the quarter, effectively hitting full capacity in our four free-stalls. Cow productivity continued at high levels standing at 34.5 liters per cow per day, despite presenting a slight decrease versus 2Q21. On a year-to-date basis, total milk production was 90.5 million liters, 11.5% or 9.3 million liters higher than in 6M21, totally attributable to a 16.1% increase in our milking cows, which fully offset the 3.9% reduction in productivity.

At the industry level, we processed 85.9 millions liters of raw milk during 2Q22, reporting a 6.6% increase compared to 2Q21. Out of this volume, approximately 41% 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. During the semester, total processed milk amounted to 176.1 million liters of raw milk, 12.7% higher than the previous year. We continue working on product developments to cater both to the domestic and export market.

Adjusted EBITDA amounted to $7.2 million during 2Q22, flattish compared to 2Q21, whereas during 6M22 it amounted to $14.2 million, marking a year-over-year increase of 17.6%. In both cases, results were driven by (i) an increase in gross sales, on account of higher volume sold and higher average selling prices; (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) on account of higher commodity prices; (ii) higher costs related to health and reproduction; and (iii) higher logistics costs.

Adjusted EBIT amounted to $4.6 million and $9.3 million during 2Q22 and 6M22, respectively. However, once interest expense and the foreign exchange loss related to the financial debt are taken into account, the year-to-date result of the business decreases to negative $20.1 million.

| All Other Segments | | --- || ALL OTHER SEGMENTS | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Highlights | | metric | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Gross Sales | | $ thousands | 1,433 | 452 | 217.0% | 1,875 | 853 | 119.8% | | Adjusted EBITDA | | $ thousands | (41) | (368) | (88.9)% | 634 | (321) | n.a. | | Adjusted EBIT | $ thousands | (101) | (352) | (71.3)% | 518 | (385) | n.a. |

All Other Segments primarily encompass 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 2Q22 was negative $41 thousand, marking a improvement compared to the loss reported in 2Q21. Year-to-date, Adjusted EBITDA amounted to $634 thousand, compared to an accumulated loss of $321 thousand during the same period of last year.

| Land transformation business | | --- || LAND TRANSFORMATION | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Highlights | metric | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Adjusted EBITDA | $ thousands | 2,023 | (395) | n.a. | 3,182 | 4,731 | (32.7)% | | Adjusted EBIT | $ thousands | 2,023 | (395) | n.a. | 3,182 | 4,731 | (32.7)% | | Land sold | Hectares | — | — | n.a | — | — | n.a |

Although no farm sales were conducted during 6M22 nor during 6M21, adjusted EBITDA for our Land Transformation business amounted to $3.2 million and $4.7 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. Despite higher soybean prices, the 32.7% year-over-year reduction in Adjusted EBITDA is explained by the impact of the appreciation of the Brazilian currency (6.1% in 6M22 compared to 3.7% in 6M21).

Adjusted EBITDA in 2Q22, in turn, presented a year-over-year increase of $2.4 million driven by a nominal depreciation of the Brazilian currency which positively impacted results (depreciation of 10.6% in 2Q22 compared to an appreciation of 12.2% in 2Q21).

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

| Corporate Expenses | | --- || CORPORATE EXPENSES | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Corporate Expenses | (6,005) | (4,588) | 30.9% | (12,385) | (9,753) | 27.0% |

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 first six months of the year were $12.4 million, 27.0% higher than in 6M21 mainly explained by an increase in costs impacted by an inflation in U.S. dollar terms.

| Other Operating Income | | --- || OTHER OPERATING INCOME | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Gain / (Loss) from commodity derivative financial instruments | 3,982 | (3,076) | n.a. | (2,745) | (13,210) | (79.2)% | | (Loss) from forward contracts | 7,310 | — | n.m. | 2,019 | — | n.m. | | Gain from disposal of other property items | 1,186 | (318) | n.a | 1,115 | (84) | n.a. | | Net Gain from FV Adjustment in Investment Property | (1,288) | (2,053) | (37.3)% | (3,641) | (2,878) | 26.5% | | Other | 2,932 | (742) | n.a. | 4,275 | 4,195 | 1.9% | | Total | 14,122 | (6,189) | n.a. | 1,023 | (11,977) | n.a. |

Other Operating Income amounted to $14.1 million in 2Q22 and $1.0 million in 6M22, marking a year-over-year gain of $20.3 million and $13.0 million, respectively. Positive results are mainly attributable to the mark-to-market of our hedging position.

Commodity Hedging

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 June 30,2022
		Consolidated Hedge Position
Farming			Avg. FAS Price	CBOT FOB	Results Booked in FY2022
		Volume	USD/Ton	USD/Bu	$ thousand
2021/2022 Harvest season
Soybeans		107,189	397.0	1,450.0	(3,108)
Corn		195,700	224.0	615.0	615
2022/2023 Harvest season
Soybeans		20,800	355.0	1,413.0	231
Corn		—	n.a	n.a	—
		Consolidated Hedge Position
Sugar, Ethanol & Energy		Avg. FOB Price	ICE FOB	Results Booked in FY2022
		Volume	USD/Unit	Cents/Lb	$ thousand
2022/2023 Harvest season
Sugar (tons)		174,783	431.0	19.5	(666)
Ethanol (m3)		—	—	—	—
Energy (MW/h) (1)	548,885	54.5	n.a	—
2023/2024 Harvest season
Sugar (tons)		—	—	—	—
Ethanol (m3)		—	—	—	—
Energy (MW/h) (1)	505,812	53.4	n.a	—

(1) Energy prices 2022 and 2023 were converted to USD at an exchange rate of BRL/USD 5.23 and BRL/USD 5.49, respectively.

| Financial Results | | --- || FINANCIAL RESULTS | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Interest Expenses, net | (15,955) | (15,342) | 4.0% | (28,354) | (28,445) | (0.3)% | | Cash Flow Hedge - Transfer from Equity | (17,769) | (12,729) | 39.6% | (26,363) | (23,289) | 13.2% | | FX Gain / (Losses), net | (29,165) | 37,668 | (177.4)% | 25,019 | 16,828 | 48.7% | | Gain/loss from derivative financial Instruments | 373 | 1,515 | (75.4)% | 1,936 | 1,892 | 2.3% | | Taxes | (1,340) | (1,181) | 13.5% | (2,198) | (2,102) | 4.6% | | Finance Cost - Right-of-use Assets | (9,824) | (6,095) | 61.2% | (16,406) | (9,964) | 64.7% | | Inflation accounting effects | 10,010 | 6,582 | 52.1% | 17,276 | 3,637 | 375.0% | | Other Expenses, net | (1,518) | (4,897) | (69.0)% | (4,172) | (6,123) | (31.9)% | | Total Financial Results | (65,188) | 5,521 | n.m. | (33,262) | (47,566) | (30.1)% |

Net financial results totaled a loss of $65.2 million in 2Q22 and of $33.3 million in 6M22. The year-over-year loss of $70.7 million and gain of $14.3 million, respectively, are mostly explained by the effect of foreign exchange and inflation accounting.

The lines "Fx Net" and "Cash Flow Hedge - Transfer from Equity" reflect the impact of foreign exchange variations on our dollar-denominated monetary assets and liabilities. In 2Q22 it presented a year-over-year loss of $71.9 million explained by a nominal depreciation of the Brazilian Real of 10.6% during 2Q22 compared to an appreciation of 12.2% during 2Q21, and by an increase in the nominal depreciation of the Argentine Peso from 4.0% in 2Q21 to 12.8% during 2Q22. These results are non-cash in nature and do not affect the net worth of the Company in U.S. dollars.

This loss was partially offset by a $3.4 million year-over-year gain in inflation accounting effects, which 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 2Q22 we had a negative net monetary position (monetary liabilities were higher than monetary assets), so we registered a $10.0 million gain, 52.1% higher compared to 2Q21. The increase was primarily explained by a 17.3% inflation rate in 2Q22, compared to 11.0% in 2Q21.

| Indebtedness | | --- || NET DEBT BREAKDOWN | | | | | | | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 1Q22 | Chg % | 2Q21 | Chg % | | Farming | 293,158 | 199,378 | 47.0% | 214,774 | 36.5% | | Short term Debt | 229,959 | 135,304 | 70.0% | 145,639 | 57.9% | | Long term Debt | 63,199 | 64,074 | (1.4)% | 69,135 | (8.6)% | | Sugar, Ethanol & Energy | 725,147 | 731,500 | (0.9)% | 714,727 | 1.5% | | Short term Debt | 39,457 | 36,103 | 9.3% | 35,603 | 10.8% | | Long term Debt | 685,689 | 695,397 | (1.4)% | 679,124 | 1.0% | | Total Short term Debt | 269,418 | 171,407 | 57.2% | 181,242 | 48.7% | | Total Long term Debt | 748,888 | 759,471 | (1.4)% | 748,259 | 0.1% | | Gross Debt | 1,018,306 | 930,878 | 9.4% | 929,501 | 9.6% | | Cash & Equivalents | 188,351 | 142,920 | 31.8% | 185,165 | 1.7% | | Net Debt | 829,955 | 787,958 | 5.3% | 744,336 | 11.5% | | EOP Net Debt / Adj. EBITDA LTM | 1.9x | 1.9x | 1.2% | 1.8x | 6.0% |

As of June 30, 2022, Adecoagro's net debt position amounted to $830.0 million, $42.0 million or 5.3% higher compared to the previous quarter. This was explained by a 9.4% increase in our gross debt position, partially offset by a 31.8% increase in our cash balance. It is worth highlighting that cash generation is concentrated in the second semester of the year, whereas the first has the highest working capital requirements as our crops are planted and harvested. Thus, we expect to reduce our indebtedness as we finish with harvesting activities and start collecting sales throughout the next quarter.

On a year-over-year basis, net debt was 11.5% higher compared to the same period of last year, explained by the 9.6% increase in gross debt which fully offset the 1.7% increase in cash. The increase in our indebtedness was mainly driven by (i) the impact of adverse weather conditions in Brazil resulting in a year-over-year reduction of 3.5 million tons in our crushing volume, and negatively impacting our last twelve months results; and (ii) a higher working capital build-up mostly on account of higher input costs.

Our Net Debt ratio (Net Debt / EBITDA) as of 2Q22 was 1.9x, flattish versus the previous quarter but slightly above 2Q21, despite the increase in net debt, driven by an increase in our EBITDA generation in the last twelve months. 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-run debt.

The Company has full capacity to repay short term debt with its cash balances, as shown by our Liquidity ratio above 1.0x. As of June 30, 2022, our Liquidity ratio (Cash & Equivalents + Marketable Inventories / Short Term Debt) reached 1.31x.

| Capital Expenditures & Investments | | --- || CAPITAL EXPENDITURES | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | $ thousands | 2Q22 | 2Q21 | Chg % | 6M22 | 6M21 | Chg % | | Farming & Land Transformation | 9,161 | 7,521 | 21.8% | 23,289 | 18,707 | 24.5% | | Expansion | 4,378 | 4,542 | (3.6)% | 9,648 | 12,505 | (22.8)% | | Maintenance | 4,783 | 2,979 | 60.5% | 13,641 | 6,202 | 119.9% | | Sugar, Ethanol & Energy | 42,028 | 37,338 | 12.6% | 108,171 | 83,522 | 29.5% | | Maintenance | 34,357 | 24,579 | 39.8% | 90,152 | 63,192 | 42.7% | | Planting | 23,425 | 13,685 | 71.2% | 35,632 | 21,216 | 67.9% | | Industrial & Agricultural Machinery | 10,932 | 10,895 | 0.3% | 54,521 | 41,976 | 29.9% | | Expansion | 7,671 | 12,758 | (39.9)% | 18,019 | 20,330 | (11.4)% | | Planting | 2,772 | 10,059 | (72.4)% | 9,685 | 16,276 | (40.5)% | | Industrial & Agricultural Machinery | 4,899 | 2,700 | 81.5% | 8,334 | 4,054 | 105.6% | | Total | 51,189 | 44,859 | 14.1% | 131,460 | 102,229 | 28.6% |

Adecoagro's capital expenditures totaled $51.2 million in 2Q22, 14.1% higher compared to the same period of last year, while in 6M22 it amounted to $131.5 million, 28.6% higher year-over-year.

The Sugar, Ethanol and Energy business accounted for 82% or $42.0 million of total capex in 2Q22, marking a 12.6% increase compared to the same period of last year. Maintenance capex stood at $34.4 million, 39.8% higher versus 2Q21, mostly explained by (i) an increase in renewal planting area, coupled with an increase in planting costs driven by a global inflationary environment; and (ii) a higher concentration of industry maintenance activities this quarter compared to 2Q21. Expansion capex, in turn, was down 39.9% compared to the previous year, reaching $7.7 million. The reduction was fully related to a 77.5% decrease in expansion planting versus 2Q21, partially offset by investments to increase vinasse concentration, among others. Concentrated vinasse is used as a biofertilizer in our sugarcane plantation (replacing 100% of our potash fertilizer requirements and 48% of total fertilizer needs) and as input in our biodigestor to produce biogas which can in turn be used to generate energy and/or biomethane. Year-to-date, capital expenditures amounted to $108.2 million, 29.5% higher compared to the same period of last year. This was mostly driven by the first quarter dynamics, namely the higher capitalization of interharvest costs due to the late start of crushing activities and hence, longer interharvest period.

Farming & Land Transformation businesses accounted for 18%, or $9.2 million of total capex in 2Q22, presenting a year-over-year increase of 21.8% or $1.6 million. This increase was mainly explained by higher maintenance capex related to the replacement of vehicles and machinery. Year-to-date, capital expenditures were $23.3 million, 24.5% or $4.6 million higher than the same period of last year. The increase was mostly due to higher maintenance capex driven by the same dynamics as explained before, partially offset by a 22.8% reduction in expansion expenditures.

Inventories
END OF PERIOD INVENTORIES
---	---	---	---	---	---	---
		Volume			thousand
Product	Metric	2Q22	2Q21	% Chg	2Q22	% Chg
Soybean	tons	86,403	86,099	0.4%	27,514	3.8%
Corn (1)	tons	81,740	46,559	75.6%	14,654	54.9%
Wheat (2)	tons	23,613	48,709	(51.5)%	7,192	(18.0)%
Sunflower	tons	12,788	7,370	73.5%	7,039	181.0%
Cotton	tons	699	370	88.9%	1,278	299.4%
Rice (3)	tons	63,123	47,037	34.2%	18,373	49.7%
Peanut	tons	8,549	7,526	13.6%	8,275	44.7%
Organic Sugar	tons	3,039	3,320	(8.5)%	1,168	38.9%
Sugar	tons	44,061	40,488	8.8%	15,955	27.1%
Ethanol	m3	98,707	135,075	(26.9)%	51,396	(10.5)%
Hydrous Ethanol	m3	63,320	94,385	(32.9)%	32,018	(20.9)%
Anhydrous Ethanol	m3	35,387	40,690	(13.0)%	19,378	14.3%
Fluid Milk	Th Lts	6	4,512	(99.9)%	3,312	42.5%
Powder Milk	tons	1,305	2,344	(44.3)%	4,755	(33.0)%
Cheese	tons	251	—	n.m.	1,134	n.m.
Cbios (4)	units	21,697	167,375	(87.0)%	499	n.m.
Others	tons	3,735	2,022	84.8%	2,180	20.6%
Total		449,715	431,430	4.2%	164,723	11.6%

All values are in US Dollars.

(1) Includes sorghum

(2) Includes barley

(3) Expressed in white rice equivalent

(4) For presentation and comparison purposes we are including 2Q21's figures in the table although they are not included in the actual calculation.

Variations in inventory levels between 2Q22 and 2Q21 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.

2Q22 Market Highlights

◦Sugar price traded within a range of 18.3 cts/lb to 20.4 cts/lb during the quarter. By the end of June, prices decreased pressured by funds selling due to the following factors: (i) growing concerns about an economic recession; (ii) a reduction in oil prices due to lockdowns in China, along with demand concerns on higher prices; (iii) the impact of fuel tax changes in Brazil, together with a weaker real, thus lowering ethanol parity. Sugar price support came from stronger import demand in some destination countries, strong white premium and a slow recovery of the crop in Brazil. Prices in U.S. dollars were, on average, 5% higher than in 1Q22 and 26% higher than in 2Q21, according to ICE futures (Sugar #11). In the near term, sugar prices should be directly affected by (i) the current crop situation in Center-South Brazil; (ii) ethanol parity; (iii) India's export program; and (iv) funds inflows/outflows. As of the date of this report, sugar price is more attractive than ethanol and it will need to stay at a premium to ensure adequate supply.

◦Ethanol prices had a significant rally in April, influenced by the lack of supply from mills and stronger demand. The higher competitiveness of hydrous ethanol at the pump, the late start of the Center-South harvest, as well as low stocks were among the reasons behind the increase. After the spike, ethanol remained stable until the end of May. Nevertheless, prices started to fall since June (following its usual seasonality) and continued a downside trend due to the approval of regulatory measures which reduce tax burden on gasoline, aiming to contain inflation in Brazil. According to the ESALQ index, hydrous and anhydrous prices increased 8% and 9%, respectively, compared to the previous quarter. On a year-over-year basis, hydrous and anhydrous prices increased 19% and 21%, respectively, mainly driven by the rally experienced in April. Although tax measures have caused an overall negative effect in the short term, ethanol fundamentals are still supported by (i) growing concerns over cane recovery in the Center-South region, (ii) a higher sugar mix, and (iii) higher ethanol exports. As reported by UNICA (Brazil's sugarcane association), domestic ethanol sales in 2Q22 were 3% lower compared to same period of 2021 while accumulated exports rose 20% over 2021/22's levels.

◦Brazil's carbon credit market under the RenovaBio program presented a considerable increase in prices in 2Q22, reaching an average of 132.7 BRL/CBio (approximately 24.6 USD/CBio) compared to 30.0 BRL/CBio (5.4 USD/CBio) during the same period of last year. During April, May and June 2022, average prices stood at 98.8, 108.9 and 161.6 BRL/CBio, respectively (approximately 18.3, 20.2 and 29.9 USD/CBio). However, in July CBio prices experienced downward pressure, stabilizing at 100.0 BRL/CBio (approximately 18.5 USD/CBio) as the Brazilian government announced the postponement of 2022 acquisition targets until September 2023, in an effort to reduce the pressure on fuel costs.

◦In 2Q22, energy spot prices in the southeast region of Brazil were 76% lower than during the same period of last year. During April, May and June, energy prices were 55.7 BRL/MWh. In July, the PLD (Preço de Liquidaçao das Diferenças or settlement price for differences) was 66.32 BRL/MWh as a result of a small decrease on the level of water reservoirs. As of June 30th, 2022, consumption showed an increase of 2% when compared to last year, according to CCEE. The level of the southeast reservoirs was 66% by June, marking a 36% increase compared to the same period of last year.

◦During 2Q22, soybean remained flattish on CBOT compared to 1Q22, while corn was 10% lower. The bearish sentiment in prices was driven by (i) worldwide inflation, (ii) the fear of a possible recession; and (iii) a stronger U.S. dollar. Nevertheless, there are factors supporting commodity prices, such as (i) the conflict between Ukraine and Russia, (ii) the higher temperatures registered in Europe, (iii) uncertainty regarding US' final production volume, and (iv) a tight supply & demand balance with high dependency on South American production. Over this period, funds' reduced their net long position on corn and soybean. Prices at the local market traded 6% lower in the case of soybean and remained even on corn, compared to 1Q22. High prices of energy and oil supported crushers' margins around the world, but political and economic noise in Argentina prevented local crushers from benefiting from this situation.

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, including the expansion of our sugarcane cluster in Mato Grosso do Sul and other current projects; (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.

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

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

Our 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, bargain purchase gain, foreign exchange gains or losses, other net financial results; (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 non-controlling interests in subsidiaries whose main underlying asset is farmland, reflected under the line item: "Reserve from the sale of non-controlling 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 the Shareholders’ equity under the line item “Reverse of revaluation surplus derived from the disposals of assets; 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 before financing and taxation as per segment information for the year, as applicable, before depreciation of property, plant and equipment and amortization of intangible assets; and (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 non-controlling interests in subsidiaries whose main underlying asset is farmland, reflected under the line item: "Reserve from the sale of non-controlling 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 the Shareholders’ equity under the line item “Reverse of revaluation surplus derived from the disposals of assets;. 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.

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 36.

Net Debt & Net Debt to Adjusted EBITDA

Net debt is defined as the sum of long- and short-term debt less cash and cash equivalents. This measure is widely used by management and investment analysts and we believe it shows the financial strength of the Company

Management is consistently tracking our leverage position and our ability to repay and service our debt obligations over time. We have therefore set a leverage ratio target that is measured by net debt divided by Adjusted EBITDA.

We believe that this metric provides useful information to investors because management uses it to manage our debt-equity ratio in order to promote access to debt financing instruments in the capital markets and our ability to meet scheduled debt service obligations.

RECONCILIATION - NET DEBT
$ thousands	2Q22	1Q22	Chg %	2Q21	Chg %
Total Borrowings	1,018,306	930,878	9.4%	929,501	9.6%
Cash and Cash equivalents	188,351	142,920	31.8%	185,165	1.7%
Net Debt	829,955	787,958	5.3%	744,336	11.5%

Adjusted Net Income

We define Adjusted Net Income as (i) Profit/ (Loss) of the period/year before net gain from fair value adjustments of investment property land and bargain purchase gain; 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”, plus (iv) the reversal of the aforementioned income tax effect, plus (v) any inflation accounting effect; plus (vi) the net increase in value of sold farmland, which has been recognized in either Revaluation surplus or Retained earnings.

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 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
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Net Income/(Loss)	18,111	15,666	15.6%	83,284	35,001	137.9%
Foreign exchange losses/(gains), net	29,165	(37,668)	n.m.	(25,019)	(16,828)	48.7%
Cash flow hedge - transfer from equity	17,769	12,729	39.6%	26,363	23,289	13.2%
Inflation accounting effects	(10,010)	(6,582)	52.1%	(17,276)	(3,637)	375.0%
Revaluation result - Investment property	1,375	2,140	(35.7)%	3,753	2,957	26.9%
Bargain purchase gain	(12,365)	—	n.m.	(12,365)	—	n.m.
Adjusted Net Income	44,045	(13,715)	n.m.	58,740	40,782	44.0%
ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 2Q22
---	---	---	---	---	---	---	---	---	---
$ thousands	Crops	Rice	Dairy	Others	Farming	Sugar, Ethanol & Energy	Land Transformation	Corporate	Total
Sales of goods and services rendered	92,201	46,287	62,042	1,433	201,963	180,376	—	—	382,339
Cost of goods sold and services rendered	(93,162)	(38,858)	(54,445)	(1,231)	(187,696)	(118,253)	—	—	(305,949)
Initial recog. and changes in FV of BA and agricultural produce	26,371	4,516	6,304	(166)	37,025	10,467	—	—	47,492
Gain from changes in NRV of agricultural produce after harvest	(17,842)	(2)	—	—	(17,844)	(235)	—	—	(18,079)
Margin on Manufacturing and Agricultural Act. Before Opex	7,568	11,943	13,901	36	33,448	72,355	—	—	105,803
General and administrative expenses	(4,705)	(3,021)	(2,130)	(65)	(9,921)	(6,208)	—	(6,094)	(22,223)
Selling expenses	(7,371)	(7,394)	(7,148)	(72)	(21,985)	(15,790)	—	30	(37,745)
Other operating income, net	8,526	709	5	(1,288)	7,952	4,331	2,023	(184)	14,122
Bargain purchase gain	—	12,443	—	—	12,443	—	—	—	12,443
Profit from Operations Before Financing and Taxation	4,018	14,680	4,628	(1,389)	21,937	54,688	2,023	(6,248)	72,400
Net loss from Fair value adjustment of Investment property	—	—	—	1,288	1,288	—	—	—	1,288
(-) Bargain purchase gain	—	(12,443)	—	—	(12,443)	—	—	—	(12,443)
Adjusted EBIT	4,018	2,237	4,628	(101)	10,782	54,688	2,023	(6,248)	61,245
(-) Depreciation and Amortization	1,930	2,622	2,578	60	7,190	49,670	—	243	57,103
Adjusted EBITDA	5,948	4,859	7,206	(41)	17,972	104,358	2,023	(6,005)	118,348
Reconciliation to Profit/(Loss)
Adjusted EBITDA									118,348
(+) Depreciation and Amortization									(57,103)
(+) Financial result, net									(65,188)
(+) Revaluation Result - Investment Property									(1,288)
(+) Income Tax (Charge)/Benefit									10,513
(-) Bargain purchase gain									12,443
(+) Translation Effect (IAS 21)									386
Profit/(Loss) for the Period									18,111
ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 2Q21
---	---	---	---	---	---	---	---	---	---
$ thousands	Crops	Rice	Dairy	Others	Farming	Sugar, Ethanol & Energy	Land Transformation	Corporate	Total
Sales of goods and services rendered	55,250	31,392	37,321	452	124,415	161,165	—	—	285,580
Cost of goods sold and services rendered	(52,142)	(24,895)	(31,471)	(336)	(108,844)	(101,692)	—	—	(210,536)
Initial recog. and changes in FV of BA and agricultural produce	21,006	7,759	4,682	(451)	32,996	106	—	—	33,102
Gain from changes in NRV of agricultural produce after harvest	(4,534)	—	—	—	(4,534)	(348)	—	—	(4,882)
Margin on Manufacturing and Agricultural Act. Before Opex	19,580	14,256	10,532	(335)	44,033	59,231	—	—	103,264
General and administrative expenses	(2,034)	(2,108)	(1,192)	18	(5,316)	(5,649)	—	(4,570)	(15,535)
Selling expenses	(3,963)	(4,546)	(3,854)	(34)	(12,397)	(17,511)	—	(54)	(29,962)
Other operating income, net	1,161	39	(6)	(2,054)	(860)	(4,823)	(395)	(111)	(6,189)
Profit from Operations Before Financing and Taxation	14,744	7,641	5,480	(2,405)	25,460	31,248	(395)	(4,735)	51,578
Net gain from Fair value adjustment of Investment property	—	—	—	2,053	2,053	—	—	—	2,053
Adjusted EBIT	14,744	7,641	5,480	(352)	27,513	31,248	(395)	(4,735)	53,631
(-) Depreciation and Amortization	1,519	1,957	1,867	(16)	5,327	42,338	—	147	47,812
Adjusted EBITDA	16,263	9,598	7,347	(368)	32,840	73,586	(395)	(4,588)	101,443
Reconciliation to Profit/(Loss)
Adjusted EBITDA									101,443
(+) Depreciation and Amortization									(47,812)
(+) Financial result, net									5,521
(+) Revaluation Result - Investment Property									(2,053)
(+) Income Tax (Charge)/Benefit									(44,608)
(+) Translation Effect (IAS 21)									3,175
Profit/(Loss) for the Period									15,666
ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 6M22
---	---	---	---	---	---	---	---	---	---
$ thousands	Crops	Rice	Dairy	Others	Farming	Sugar, Ethanol & Energy	Land Transformation	Corporate	Total
Sales of goods and services rendered	131,632	79,956	116,847	1,875	330,310	257,432	—	—	587,742
Cost of goods sold and services rendered	(127,016)	(68,492)	(102,879)	(1,483)	(299,870)	(175,550)	—	—	(475,420)
Initial recog. and changes in FV of BA and agricultural produce	55,733	14,819	12,557	348	83,457	47,905	—	—	131,362
Gain from changes in NRV of agricultural produce after harvest	(18,037)	(2)	—	—	(18,039)	(934)	—	—	(18,973)
Margin on Manufacturing and Agricultural Act. Before Opex	42,312	26,281	26,525	740	95,858	128,853	—	—	224,711
General and administrative expenses	(8,118)	(5,509)	(3,753)	(120)	(17,500)	(10,505)	—	(12,775)	(40,780)
Selling expenses	(13,385)	(12,976)	(13,314)	(95)	(39,770)	(22,074)	—	(59)	(61,903)
Other operating income, net	(111)	557	(112)	(3,648)	(3,314)	1,138	3,182	17	1,023
Bargain purchase gain	—	12,443	—	—	12,443	—	—	—	12,443
Profit from Operations Before Financing and Taxation	20,698	20,796	9,346	(3,123)	47,717	97,412	3,182	(12,817)	135,494
Net gain from Fair value adjustment of Investment property	—	—	—	3,641	3,641	—	—	—	3,641
(-) Bargain purchase gain	—	(12,443)	—	—	(12,443)	—	—	—	(12,443)
Adjusted EBIT	20,698	8,353	9,346	518	38,915	97,412	3,182	(12,817)	126,692
(-) Depreciation and Amortization	3,740	4,756	4,859	116	13,471	64,224	—	432	78,127
Adjusted EBITDA	24,438	13,109	14,205	634	52,386	161,636	3,182	(12,385)	204,819
Reconciliation to Profit/(Loss)
Adjusted EBITDA									204,819
(+) Depreciation and Amortization									(78,127)
(+) Financial result, net									(33,262)
(+) Revaluation Result - Investment Property									(3,641)
(+) Income Tax (Charge)/Benefit									(19,031)
(-) Bargain purchase gain									12,443
(+) Translation Effect (IAS 21)									83
Profit/(Loss) for the Period									83,284
ADJUSTED EBITDA & ADJUSTED EBITDA RECONCILIATION TO PROFIT/LOSS - 6M21
---	---	---	---	---	---	---	---	---	---
$ thousands	Crops	Rice	Dairy	Others	Farming	Sugar, Ethanol & Energy	Land Transformation	Corporate	Total
Sales of goods and services rendered	86,828	58,814	73,485	853	219,980	240,246	—	—	460,226
Cost of goods sold and services rendered	(76,730)	(47,016)	(62,238)	(597)	(186,581)	(149,098)	—	—	(335,679)
Initial recog. and changes in FV of BA and agricultural produce	38,848	34,408	7,362	(408)	80,210	27,855	—	—	108,065
Gain from changes in NRV of agricultural produce after harvest	(7,015)	—	—	—	(7,015)	(1,527)	—	—	(8,542)
Margin on Manufacturing and Agricultural Act. Before Opex	41,931	46,206	18,609	(152)	106,594	117,476	—	—	224,070
General and administrative expenses	(3,926)	(4,077)	(2,479)	(60)	(10,542)	(9,962)	—	(9,739)	(30,243)
Selling expenses	(7,359)	(8,156)	(7,572)	(65)	(23,152)	(25,934)	—	(105)	(49,191)
Other operating income, net	566	201	(94)	(2,986)	(2,313)	(14,221)	4,731	(174)	(11,977)
Profit from Operations Before Financing and Taxation	31,212	34,174	8,464	(3,263)	70,587	67,359	4,731	(10,018)	132,659
Net gain from Fair value adjustment of Investment property	—	—	—	2,878	2,878	—	—	—	2,878
Adjusted EBIT	31,212	34,174	8,464	(385)	73,465	67,359	4,731	(10,018)	135,537
(-) Depreciation and Amortization	2,964	3,761	3,612	64	10,401	64,381	—	265	75,047
Adjusted EBITDA	34,176	37,935	12,076	(321)	83,866	131,740	4,731	(9,753)	210,584
Reconciliation to Profit/(Loss)
Adjusted EBITDA									210,584
(+) Depreciation and Amortization									(75,047)
(+) Financial result, net									(47,566)
(+) Revaluation Result - Investment Property									(2,878)
(+) Income Tax (Charge)/Benefit									(53,546)
(+) Translation Effect (IAS 21)									3,454
Profit/(Loss) for the Period									35,001
STATEMENT OF INCOME
---	---	---	---	---	---	---
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Sales of goods and services rendered	383,673	289,769	32.4%	590,037	464,561	27.0%
Cost of goods sold and services rendered	(307,077)	(213,619)	43.7%	(477,381)	(338,801)	40.9%
Initial recognition and changes in fair value of biological assets and agricultural produce	48,811	37,172	31.3%	132,864	112,450	18.2%
Changes in net realizable value of agricultural produce after harvest	(17,891)	(5,135)	248.4%	(18,716)	(8,806)	112.5%
Margin on manufacturing and agricultural activities before operating expenses	107,516	108,187	(0.6)%	226,804	229,404	(1.1)%
General and administrative expenses	(22,546)	(16,338)	38.0%	(41,281)	(31,095)	32.8%
Selling expenses	(38,137)	(30,730)	24.1%	(62,523)	(50,046)	24.9%
Other operating income, net	13,588	(6,366)	(313.4)%	212	(12,150)	(101.7)%
Bargain purchase gain	12,365	—	n.a	12,365	—	n.a
Profit from operations before financing and taxation	72,786	54,753	32.9%	135,577	136,113	(0.4)%
Finance income	(27,843)	22,363	(224.5)%	28,463	23,425	21.5%
Finance costs	(47,355)	(23,424)	102.2%	(79,001)	(74,628)	5.9%
Other financial results - Net gain of inflation effects on the monetary items	10,010	6,582	52.1%	17,276	3,637	375.0%
Financial results, net	(65,188)	5,521	(1,280.7)%	(33,262)	(47,566)	(30.1)%
Profit before income tax	7,598	60,274	(87.4)%	102,315	88,547	15.5%
Income tax expense	10,513	(44,608)	(123.6)%	(19,031)	(53,546)	(64.5)%
Profit for the period	18,111	15,666	15.6%	83,284	35,001	137.9%
Condensed Consolidated Statement of Cash Flow
---		STATEMENT OF CASHFLOWS
---	---	---	---	---	---	---
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Cash flows from operating activities:
(Loss) / Profit for the year	18,111	15,666	15.6%	83,284	35,001	137.9%
Adjustments for:
Income tax expense	(10,513)	44,608	(123.6)%	19,031	53,546	(64.5)%
Depreciation	56,791	47,855	18.7%	77,474	74,761	3.6%
Amortization	466	380	22.6%	927	735	26.1%
Depreciation of right of use assets	21,479	12,416	73.0%	28,562	22,980	24.3%
Loss / (gain) from the disposal of other property items	(1,182)	502	(335.5)%	(1,119)	268	(517.5)%
Bargain purchase gain	(12,365)	—	n.a	(12,365)	—	n.a
Net loss / (gain) from the Fair value adjustment of Investment properties	1,375	2,140	(35.7)%	3,753	2,957	26.9%
Equity settled share-based compensation granted	2,637	1,346	95.9%	4,251	2,732	55.6%
Loss / (gain) from derivative financial instruments	(11,034)	455	(2,525.1)%	(313)	10,080	(103.1)%
Interest, finance cost related to lease liabilities and other financial expense, net	27,578	25,897	6.5%	48,774	43,600	11.9%
Initial recognition and changes in fair value of non harvested biological assets (unrealized)	5,211	29,945	(82.6)%	(69,471)	(14,928)	365.4%
Changes in net realizable value of agricultural produce after harvest (unrealized)	(4,935)	363	(1,459.5)%	5,719	2,766	106.8%
Provision and allowances	(281)	438	n . a	158	933	(83.1)%
Net gain of inflation effects on the monetary items	(10,010)	(6,582)	52.1%	(17,276)	(3,637)	375.0%
Foreign exchange losses, net	29,165	(40,955)	(171.2)%	(25,019)	(20,115)	24.4%
Cash flow hedge – transfer from equity	17,769	16,015	11.0%	26,363	26,575	(0.8)%
Subtotal	130,262	150,489	(13.4)%	172,733	238,254	(27.5)%
Changes in operating assets and liabilities:
(Increase) in trade and other receivables	(11,616)	(9,068)	28.1%	(70,471)	(59,018)	19.4%
(Increase) in inventories	(57,227)	(90,899)	(37.0)%	(83,543)	(139,857)	(40.3)%
Decrease / (Increase) in biological assets	62,816	52,308	20.1%	111,475	90,338	23.4%
(Increase) / Decrease in other assets	(197)	5	(4,040.0)%	(674)	9	(7,588.9)%
Decrease / (Increase) in derivative financial instruments	(1,792)	(3,573)	(49.8)%	(5,003)	(24,029)	(79.2)%
Decrease in trade and other payables	(52,001)	96	(54,267.7)%	(74,379)	(28,220)	163.6%
Increase in payroll and social security liabilities	2,609	383	581%	414	(467)	(189)%
(Decrease) / Increase in provisions for other liabilities	(35)	246	(114.2)%	(279)	212	(231.6)%
Net cash generated from operating activities before taxes paid	72,819	99,987	(27.2)%	50,273	77,222	(34.9)%
Income tax paid	(1,899)	(530)	258.3%	(2,101)	(648)	224.2%
Net cash generated from operating activities (a)	70,920	99,457	(28.7)%	48,172	76,574	(37.1)%		Condensed Consolidated Statement of Cash Flow
---	---	---	---	---	---	---
STATEMENT OF CASHFLOWS
$ thousands	2Q22	2Q21	Chg %	6M22	6M21	Chg %
Cash flows from investing activities:
Acquisition of subsidiary, net of cash acquired	1,179	—	n . a	1,179	—	n . a
Purchases of property, plant and equipment	(51,760)	(44,841)	15.4%	(126,113)	(101,863)	23.8%
Purchase of cattle and non current biological assets	(3,347)	—	n . a	(7,321)	(2,284)	220.5%
Purchases of intangible assets	(911)	(397)	129.5%	(1,480)	(995)	48.7%
Interest received and others	824	449	83.5%	1,322	1,050	25.9%
Proceeds from sale of property, plant and equipment	273	1,261	(78.4)%	623	1,969	(68.4)%
Proceeds from sale of farmlands and other assets	9,879	8,089	22.1%	9,879	8,089	22.1%
Net cash used in investing activities (b)	(43,863)	(35,439)	23.8%	(121,911)	(94,034)	29.6%
Cash flows from financing activities:
Proceeds from equity settled share-based compensation exercise	2,124	—	n .a	2,124	—	n .a
Proceeds from long-term borrowings	15,826	—	n .a	37,150	—	n . a
Payments of long-term borrowings	(10,374)	(90,384)	(88.5)%	(13,464)	(92,792)	(85.5)%
Proceeds from short-term borrowings	107,678	106,028	1.6%	176,186	184,948	(4.7)%
Payments of short-term borrowings	(25,309)	(60,781)	(58.4)%	(29,082)	(139,611)	(79.2)%
Interest paid (c)	(4,582)	(5,156)	(11.1)%	(18,139)	(22,337)	(18.8)%
Prepayment related expenses	—	(3,068)	n . a	—	(3,068)	n . a
Proceeds from derivatives financial instruments	58	71	(18.3)%	58	359	(83.8)%
Lease Payments	(38,346)	(24,878)	54.1%	(55,517)	(36,541)	51.9%
Purchase of own shares	(3,412)	(10,741)	(68.2)%	(14,051)	(20,216)	(30.5)%
Dividends paid to non-controlling interest	—	—	n . a	—	(12)	(100.0)%
Dividends to shareholders	(17,500)	—	n . a	(17,500)	—	n . a
Net cash generated / (used) from financing activities (d)	26,163	(88,909)	(129.4)%	67,765	(129,270)	(152.4)%
Net increase / (decrease) in cash and cash equivalents	53,220	(24,891)	(313.8)%	(5,974)	(146,730)	(95.9)%
Cash and cash equivalents at beginning of period	142,920	208,584	(31.5)%	199,766	336,282	(40.6)%
Effect of exchange rate changes and inflation on cash and cash equivalents (e)	(7,789)	1,472	(629.1)%	(5,441)	(4,387)	24.0%
Cash and cash equivalents at end of year	188,351	185,165	1.7%	188,351	185,165	1.7%

(a) Includes (12,264) and (16,542) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(b) Includes (2,624) and 2,055 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(c) Includes 135 and 2620 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(d) Includes 16,636 and 17,885 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(e) Includes (1,748) and (3,398) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

| Condensed Consolidated Statement of Financial Position | | --- || STATEMENT OF FINANCIAL POSITION | | | | | --- | --- | --- | --- | | $ thousands | June 30, 2022 | December 31, 2021 | Chg % | | ASSETS | | | | | Non-Current Assets | | | | | Property, plant and equipment, net | 1,550,369 | 1,422,623 | 9.0% | | Right of use assets | 358,026 | 260,776 | 37.3% | | Investment property | 32,132 | 32,132 | —% | | Intangible assets, net | 35,083 | 31,337 | 12.0% | | Biological assets | 24,739 | 19,355 | 27.8% | | Deferred income tax assets | 8,659 | 10,321 | (16.1)% | | Trade and other receivables, net | 42,227 | 42,231 | —% | | Derivative financial instruments | 5,439 | 757 | 618.5% | | Other assets | 1,625 | 1,071 | 51.7% | | Total Non-Current Assets | 2,058,299 | 1,820,603 | 13.1% | | Current Assets | | | | | Biological assets | 150,585 | 175,823 | (14.4)% | | Inventories | 393,016 | 239,524 | 64.1% | | Trade and other receivables, net | 224,550 | 145,849 | 54.0% | | Derivative financial instruments | 195 | 828 | (76.4)% | | Other assets | — | 8 | (100.0)% | | Cash and cash equivalents | 188,351 | 199,766 | (5.7)% | | Total Current Assets | 956,697 | 761,798 | 25.6% | | TOTAL ASSETS | 3,014,996 | 2,582,401 | 16.8% | | SHAREHOLDERS EQUITY | | | | | Capital and reserves attributable to equity holders of the parent | | | | | Share capital | 167,073 | 183,573 | (9.0)% | | Share premium | 811,666 | 851,060 | (4.6)% | | Cumulative translation adjustment | (458,916) | (514,609) | (10.8)% | | Equity-settled compensation | 14,621 | 16,073 | (9.0)% | | Cash flow hedge | (48,107) | (60,932) | (21.0)% | | Other reserves | 119,114 | 106,172 | 12.2% | | Treasury shares | (455) | (16,909) | (97.3)% | | Revaluation surplus | 272,878 | 289,982 | (5.9)% | | Reserve from the sale of non-controlling interests in subsidiaries | 41,574 | 41,574 | —% | | Retained earnings | 184,318 | 115,735 | 59.3% | | Equity attributable to equity holders of the parent | 1,103,766 | 1,011,719 | 9.1% | | Non-controlling interest | 37,577 | 36,111 | 4.1% | | TOTAL SHAREHOLDERS EQUITY | 1,141,343 | 1,047,830 | 8.9% | | LIABILITIES | | | | | Non-Current Liabilities | | | | | Trade and other payables | 13,472 | 284 | 4,643.7% | | Borrowings | 748,888 | 705,487 | 6.2% | | Lease liabilities | 270,666 | 201,718 | 34.2% | | Deferred income tax liabilities | 286,590 | 265,848 | 7.8% | | Payroll and social liabilities | 1,057 | 1,243 | (15.0)% | | Derivatives financial instruments | 85 | — | —% | | Provisions for other liabilities | 2,846 | 2,565 | 11.0% | | Total Non-Current Liabilities | 1,323,604 | 1,177,145 | 12.4% | | Current Liabilities | | | | | Trade and other payables | 193,840 | 168,746 | 14.9% | | Current income tax liabilities | 3,085 | 1,625 | 89.8% | | Payroll and social liabilities | 25,844 | 25,051 | 3.2% | | Borrowings | 269,418 | 112,164 | 140.2% | | Lease liabilities | 56,595 | 45,136 | 25.4% | | Derivative financial instruments | 788 | 1,283 | (38.6)% | | Provisions for other liabilities | 479 | 3,421 | (86.0)% | | Total Current Liabilities | 550,049 | 357,426 | 53.9% | | TOTAL LIABILITIES | 1,873,653 | 1,534,571 | 22.1% | | TOTAL SHAREHOLDERS EQUITY AND LIABILITIES | 3,014,996 | 2,582,401 | 16.8% |

43

Document

Adecoagro S.A.

Condensed Consolidated Interim Financial Statements as of June 30, 2022 and for the six and three-month periods ended June 30, 2022 and 2021

Legal information

Denomination: 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 (Note 21)

Outstanding Capital Stock: 111,080,828 common shares

Treasury Shares: 300,987 common shares

F - 1

Adecoagro S.A.

Condensed Consolidated Interim Statements of Income

for the six-month and three-month periods ended June 30, 2022 and 2021

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

		Six-months ended June 30,		Three-months ended June 30,
	Note	2022	2021	2022	2021
		(unaudited)
Sales of goods and services rendered	4	590,037	464,561	383,673	289,769
Cost of goods sold and services rendered	5	(477,381)	(338,801)	(307,077)	(213,619)
Initial recognition and changes in fair value of biological assets and agricultural produce	15	132,864	112,450	48,811	37,172
Changes in net realizable value of agricultural produce after harvest		(18,716)	(8,806)	(17,891)	(5,135)
Margin on manufacturing and agricultural activities before operating expenses		226,804	229,404	107,516	108,187
General and administrative expenses	6	(41,281)	(31,095)	(22,546)	(16,338)
Selling expenses	6	(62,523)	(50,046)	(38,137)	(30,730)
Other operating income/(expense), net	8	212	(12,150)	13,588	(6,366)
Bargain purchase gain	20	12,365	—	12,365	—
Profit from operations		135,577	136,113	72,786	54,753
Finance income	9	28,463	23,425	(27,843)	22,363
Finance costs	9	(79,001)	(74,628)	(47,355)	(23,424)
Other financial results - Net gain / (loss) of inflation effects on the monetary items	9	17,276	3,637	10,010	6,582
Financial results, net	9	(33,262)	(47,566)	(65,188)	5,521
Profit before income tax		102,315	88,547	7,598	60,274
Income tax (expense) / benefit	10	(19,031)	(53,546)	10,513	(44,608)
Profit for the period		83,284	35,001	18,111	15,666
Attributable to:
Equity holders of the parent		82,344	35,079	19,087	16,865
Non-controlling interest		940	(78)	(976)	(1,199)
Earnings per share attributable to the equity holders of the parent during the period:
Basic earnings per share		0.744	0.300	0.169	0.144
Diluted earnings per share		0.741	0.299	0.168	0.143

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

F- 2

Adecoagro S.A.

Condensed Consolidated Interim Statements of Comprehensive Income

for the six-month and three-month periods ended June 30, 2022 and 2021

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

	Six-months ended June 30,		Three-months ended June 30,
	2022	2021	2022	2021
	(unaudited)
Profit for the Period	83,284	35,001	18,111	15,666
Other comprehensive loss:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	92,079	76,370	(12,245)	81,176
Cash flow hedge, net of tax (Note 2)	12,826	19,864	8,099	19,927
Items that will not be reclassified to profit or loss:
Revaluation surplus net of tax	(52,965)	(90,821)	(13,261)	(79,851)
Other comprehensive income / (loss)	51,940	5,413	(17,407)	21,252
Total comprehensive income for the period	135,224	40,414	704	36,918
Attributable to:
Equity holders of the parent	133,758	42,646	1,477	40,293
Non-controlling interest	1,466	(2,232)	(773)	(3,375)

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

F- 3

Adecoagro S.A.

Condensed Consolidated Interim Statements of Financial Position

as of June 30, 2022 and December 31, 2021

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

		June 30,	December 31,
	Note	2022	2021
		(unaudited)
ASSETS
Non-Current Assets
Property, plant and equipment	11	1,550,369	1,422,623
Right of use assets	12	358,026	260,776
Investment property	13	32,132	32,132
Intangible assets	14	35,083	31,337
Biological assets	15	24,739	19,355
Deferred income tax assets	10	8,659	10,321
Trade and other receivables, net	17	42,227	42,231
Derivative financial instruments	16	5,439	757
Other assets		1,625	1,071
Total Non-Current Assets		2,058,299	1,820,603
Current Assets
Biological assets	15	150,585	175,823
Inventories	18	393,016	239,524
Trade and other receivables, net	17	224,550	145,849
Derivative financial instruments	16	195	828
Other assets		—	8
Cash and cash equivalents	19	188,351	199,766
Total Current Assets		956,697	761,798
TOTAL ASSETS		3,014,996	2,582,401
SHAREHOLDERS EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital	21	167,073	183,573
Share premium	21	811,666	851,060
Cumulative translation adjustment		(458,916)	(514,609)
Equity-settled compensation		14,621	16,073
Cash flow hedge		(48,107)	(60,932)
Other reserves		119,114	106,172
Treasury shares		(455)	(16,909)
Revaluation surplus		272,878	289,982
Reserve from the sale of non-controlling interests in subsidiaries		41,574	41,574
Retained earnings		184,318	115,735
Equity attributable to equity holders of the parent		1,103,766	1,011,719
Non-controlling interest		37,577	36,111
TOTAL SHAREHOLDERS EQUITY		1,141,343	1,047,830
LIABILITIES
Non-Current Liabilities
Trade and other payables	23	13,472	284
Borrowings	24	748,888	705,487
Lease liabilities	25	270,666	201,718
Deferred income tax liabilities	10	286,590	265,848
Payroll and social security liabilities	26	1,057	1,243
Derivatives financial instruments	16	85	—
Provisions for other liabilities	27	2,846	2,565
Total Non-Current Liabilities		1,323,604	1,177,145
Current Liabilities
Trade and other payables	23	193,840	168,746
Current income tax liabilities		3,085	1,625
Payroll and social security liabilities	26	25,844	25,051
Borrowings	24	269,418	112,164
Lease liabilities	25	56,595	45,136
Derivative financial instruments	16	788	1,283
Provisions for other liabilities	27	479	3,421
Total Current Liabilities		550,049	357,426
TOTAL LIABILITIES		1,873,653	1,534,571
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES		3,014,996	2,582,401

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

F- 4

Adecoagro S.A.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

for the six-month periods ended June 30, 2022 and 2021

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

	Attributable to equity holders of the parent
	Share Capital (Note 21)	Share Premium	Cumulative Translation Adjustment	Equity-settled Compensation	Cash flow hedge	Other reserves	Treasury shares	Revaluation surplus	Reserve from the sale of non-controlling interests in subsidiaries	Retained Earnings	Subtotal	Non-Controlling Interest	Total Shareholders’ Equity
Balance at January 1, 2021	183,573	902,815	(555,044)	14,795	(90,689)	83,406	(7,630)	343,570	41,574	8,671	925,041	38,683		963,724
Loss for the period	—	—	—	—	—	—	—	—	—	35,079	35,079	(78)		35,001
Other comprehensive income:
- Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	—	—	39,203	—	—	—	—	33,295	—	—	72,498	3,872		76,370
Cash flow hedge (*)	—	—	—	—	19,863	—	—	—	—	—	19,863	1		19,864
Revaluation of surplus (**)	—	—	—	—	—	—	—	(84,794)	—	—	(84,794)	(6,027)		(90,821)
Other comprehensive income for the period	—	—	39,203	—	19,863	—	—	(51,499)	—	—	7,567	(2,154)		5,413
Total comprehensive income for the period	—	—	39,203	—	19,863	—	—	(51,499)	—	35,079	42,646	(2,232)		40,414
Reserves for the benefit of government grants (1)	—	—	—	—	—	10,500	—	—	—	(10,500)	—	—		—
- Restricted shares and restricted units (Note 21):
Value of employee services	—	—	—	3,069	—	—	—	—	—	—	3,069	—		3,069
Vested	—	3,594	—	(4,142)	—	734	262	—	—	—	448	—		448
Forfeited	—	—	—	—	—	2	(2)	—	—	—	—	—		—
Granted	—	—	—	—	—	(1,592)	1,592	—	—	—	—	—		—
-Purchase of own shares (Note 21)	—	(16,876)	—	—	—	—	(3,340)	—	—	—	(20,216)	—		(20,216)
Balance at June 30, 2021 (unaudited)	183,573	889,533	(515,841)	13,722	(70,826)	93,050	(9,118)	292,071	41,574	33,250	950,988	36,451		987,439

(*) Net of 2,667 of Income tax.

(**) Net of 25,922 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).

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

F- 5

Adecoagro S.A.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

for the six-month periods ended June 30, 2022 and 2021 (continued)

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

	Attributable to equity holders of the parent
	Share Capital (Note 21)	Share Premium	Cumulative Translation Adjustment	Equity-settled Compensation	Cash flow hedge	Other reserves	Treasury shares	Revaluation surplus	Reserve from the sale of non-controlling interests in subsidiaries	Retained Earnings	Subtotal	Non-Controlling Interest	Total Shareholders’ Equity
Balance at January 1, 2022	183,573	851,060	(514,609)	16,073	(60,932)	106,172	(16,909)	289,982	41,574	115,735	1,011,719	36,111	1,047,830
Profit for the period	—	—	—	—	—		—	—	—	82,344	82,344	940	83,284
Other comprehensive loss:
- Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	—	—	55,693	—	—	—	—	32,138	—	—	87,831	4,248	92,079
Cash flow hedge (*)	—	—	—	—	12,825	—	—	—	—	—	12,825	1	12,826
- Items that will not be reclassified to profit or loss:
Revaluation surplus (**)	—	—	—	—	—	—	—	(49,242)	—	—	(49,242)	(3,723)	(52,965)
Other comprehensive income for the period	—	—	55,693	—	12,825	—	—	(17,104)	—	—	51,414	526	51,940
Total comprehensive income for the period	—	—	55,693	—	12,825	—	—	(17,104)	—	82,344	133,758	1,466	135,224
- Reduction of issued share capital of the company (Note 21):	(16,500)	—	—	—	—	—	16,500	—	—	—	—	—	—
- Reserves for the benefit of government grants (1)	—	—	—	—	—	13,761	—	—	—	(13,761)	—	—	—
- Employee share options (Note 21):
Exercised	—	2,432	—	(778)	—	—	470	—	—	—	2,124	—	2,124
- Restricted shares and restricted units (Note 22):
Value of employee services	—	—	—	3,392	—	—	—	—	—	—	3,392	—	3,392
Vested	—	4,647	—	(4,066)	—	1,243	—	—	—	—	1,824	—	1,824
Forfeited	—	—	—	—	—	39	(39)	—	—	—	—	—	—
Granted	—	—	—	—	—	(2,101)	2,101	—	—	—	—	—	—
- Purchase of own shares (Note 21)	—	(11,473)	—	—	—	—	(2,578)	—	—	—	(14,051)	—	(14,051)
- Dividends to shareholders (Note 21)	—	(35,000)	—	—	—	—	—	—	—	—	(35,000)	—	(35,000)
Balance at June 30, 2022 (unaudited)	167,073	811,666	(458,916)	14,621	(48,107)	119,114	(455)	272,878	41,574	184,318	1,103,766	37,577	1,141,343

(*) Net of 9,407 of Income tax.

(**) Net of 28,003 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

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

F- 6

Adecoagro S.A.

Condensed Consolidated Interim Statements of Cash Flows

for the six-month periods ended June 30, 2022 and 2021

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

	Note	June 30,<br>2022	June 30,<br>2021
		(unaudited)
Cash flows from operating activities:
Profit for the period		83,284	35,001
Adjustments for:
Income tax expense	10	19,031	53,546
Depreciation of property, plant and equipment	11	77,474	74,761
Amortization of intangible assets	14	927	735
Depreciation of right of use assets	12	28,562	22,980
Loss / (gain) from disposal of other property items	8	(1,119)	268
Bargain purchase gain	20	(12,365)	—
Net loss from the Fair value adjustment of Investment properties	13	3,753	2,957
Equity settled share-based compensation granted	7	4,251	2,732
(Gain) / loss from derivative financial instruments	8, 9	(313)	10,080
Interest, finance cost related to lease liabilities and other financial expense, net	9	48,774	43,600
Initial recognition and changes in fair value of non harvested biological assets (unrealized)		(69,471)	(14,928)
Changes in net realizable value of agricultural produce after harvest (unrealized)		5,719	2,766
Provision and allowances		158	933
Net gain of inflation effects on the monetary items	9	(17,276)	(3,637)
Foreign exchange gains, net	9	(25,019)	(20,115)
Cash flow hedge – transfer from equity	9	26,363	26,575
Subtotal		172,733	238,254
Changes in operating assets and liabilities:
Increase in trade and other receivables		(70,471)	(59,018)
Increase in inventories		(83,543)	(139,857)
Decrease in biological assets		111,475	90,338
(Increase) / decrease in other assets		(674)	9
(Increase) in derivative financial instruments		(5,003)	(24,029)
Decrease in trade and other payables		(74,379)	(28,220)
Decrease / (increase) in payroll and social security liabilities		414	(467)
(Decrease) / increase in provisions for other liabilities		(279)	212
Net cash generated from operating activities before taxes paid		50,273	77,222
Income tax paid		(2,101)	(648)
Net cash generated from operating activities	(a)	48,172	76,574

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

F- 7

Adecoagro S.A.

Condensed Consolidated Interim Statements of Cash Flows

for the six-month periods ended June 30, 2022 and 2021 (continued)

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

	Note	June 30,<br>2022	June 30,<br>2021
		(unaudited)
Cash flows from investing activities:
Acquisition of a business, net of cash and cash equivalents acquired	20	1,179	—
Purchases of property, plant and equipment	11	(126,113)	(101,863)
Purchases of cattle and non-current biological assets		(7,321)	(2,284)
Purchases of intangible assets	14	(1,480)	(995)
Interest received and others		1,322	1,050
Proceeds from sale of property, plant and equipment		623	1,969
Proceeds from sale of farmlands and other assets	27	9,879	8,089
Net cash used in investing activities	(b)	(121,911)	(94,034)
Cash flows from financing activities:
Proceeds from equity settled share-based compensation exercise		2,124	—
Proceeds from long-term borrowings		37,150	—
Payments of long-term borrowings		(13,464)	(92,792)
Proceeds from short-term borrowings		176,186	184,948
Payment of short-term borrowings		(29,082)	(139,611)
Proceeds of derivatives financial instruments		58	359
Lease payments		(55,517)	(36,541)
Interest paid	(c)	(18,139)	(22,337)
Prepayment related expenses		—	(3,068)
Purchase of own shares		(14,051)	(20,216)
Dividends paid to non-controlling interest		—	(12)
Dividends to shareholders	21	(17,500)	—
Net cash used in financing activities	(d)	67,765	(129,270)
Net decrease in cash and cash equivalents		(5,974)	(146,730)
Cash and cash equivalents at beginning of period	19	199,766	336,282
Effect of exchange rate changes and inflation on cash and cash equivalents	(e)	(5,441)	(4,387)
Cash and cash equivalents at end of period	19	188,351	185,165

For non-cash transactions related to Acquisition of subsidiaries of Viterra in Argentina and Uruguay see Note 20

(a) Includes (12,264) and (16,542) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(b) Includes (2,624) and 2,055 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(c) Includes 135 and 2,620 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(d) Includes 16,636 and 17,885 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

(e) Includes (1,748) and (3,398) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for June 30, 2022 and 2021, respectively.

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

F- 8

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

1.    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". These activities are carried out through three major lines of business, namely, Farming; Sugar, Ethanol and Energy and Land Transformation. Farming is further comprised of three reportable segments, which are described in detail in Note 3 to these condensed consolidated interim financial statements.

Adecoagro is a public company listed in the New York Stock Exchange as a foreign registered company under the symbol of AGRO.

These condensed consolidated interim financial statements have been approved for issue by the Board of Directors on August 9, 2022.

2.    Financial risk management

Risk management principles and processes

The Group is exposed to several risks arising from financial instruments including price risk, exchange rate risk, interest rate risk, liquidity risk and credit risk. A thorough explanation of the Group´s risks and the Group´s approach to the identification, assessment and mitigation of risks is included in Note 2 to the annual financial statements. There have been no significant changes to the Group's exposure and risk management principles and processes since December 31, 2021 and refers readers to the annual financial statements for information.

However, the Group considers that the following tables below provide useful information to understand the Group´s interim results for the six month period ended June 30, 2022. These disclosures do not appear in any particular order of potential materiality or probability of occurrence.

In Argentina, past economic events forced the government to impose certain restrictions in the exchange markets, such as:

–Dividends payments to non residents.

–Set specific deadlines to enter and settle exports

–Prior authorization of the BCRA for the formation of external assets for companies

–Prior authorization of the BCRA for the payment of debts related to companies abroad

–Deferral of payment of certain public debt instruments.

–Fuel price control

–Some restrictions to exports

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

F- 9

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

2.    Financial risk management (continued)

•Exchange rate risk

The following tables show the Group’s net monetary position broken down by various currencies for each functional currency in which the Group operates at June 30, 2022. All amounts are shown in US dollars.

	June 30, 2022
	(unaudited)
	Functional currency
Net monetary position (Liability)/ Asset	Argentine <br>Peso	Brazilian <br>Reais	Uruguayan<br>Peso	US Dollar	Total
Argentine Peso	(141,253)	—	—	—	(141,253)
Brazilian Reais	—	(465,119)	—	—	(465,119)
US Dollar	(262,940)	(344,717)	31,802	(16,563)	(592,418)
Uruguayan Peso	—	—	(566)	—	(566)
Total	(404,193)	(809,836)	31,236	(16,563)	(1,199,356)

The Group’s analysis shown on the tables below is carried out based on the exposure of each functional currency subsidiary against the US dollar. The Group estimated that, other factors being constant, a 10% appreciation of the US dollar against the respective functional currencies for the period ended June 30, 2022 would have decreased the Group’s Profit before income tax for the period. A 10% depreciation of the US dollar against the functional currencies would have an equal and opposite effect on the income statement.

A portion of this effect would be 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 US dollars (see Hedge Accounting - Cash Flow Hedge below for details).

	June 30, 2022
	(unaudited)
	Functional currency
Net monetary position	Argentine <br>Peso	Brazilian <br>Reais	Uruguayan<br>Peso	Total
US Dollar	(26,294)	(34,472)	3,180	(59,242)
(Decrease) or increase in Profit before income tax	(26,294)	(34,472)	3,180	(59,242)

Hedge Accounting - Cash flow hedge

Effective July 1, 2013, the Group formally documented and designated cash flow hedging relationships to hedge the foreign exchange rate risk of a portion of its highly probable future sales in US dollars using a portion of its borrowings denominated in US dollars, currency forwards and foreign currency floating-to-fixed interest rate swaps.

The Group expects that the cash flows will occur and affect profit or loss between 2022 and 2024.

For the period ended June 30, 2022, a loss before income tax of US$ 7,042 was recognized in other comprehensive income and a loss of US$ 26,629 was reclassified from equity to profit or loss within “Financial results, net”.

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

F- 10

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

2.    Financial risk management (continued)

•Interest rate risk

The following table shows a breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary issuing the loans at June 30, 2022 (all amounts are shown in US dollars):

	June 30, 2022
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine <br>Peso	Brazilian <br>Reais	Uruguayan<br>Peso	US Dollar	Total
Fixed rate:
Argentine Peso	110,507	—	—	—	110,507
Brazilian Reais	—	8,858	—	—	8,858
US Dollar	191,659	384,140	21,002	89,609	686,410
Subtotal Fixed-rate borrowings	302,166	392,998	21,002	89,609	805,775
Variable rate:
Brazilian Reais	—	192,480	—	—	192,480
US Dollar	19,280	771	—	—	20,051
Subtotal Variable-rate borrowings	19,280	193,251	—	—	212,531
Total borrowings as per analysis	321,446	586,249	21,002	89,609	1,018,306

At June 30, 2022, if interest rates on floating-rate borrowings had been 1% higher (or lower) with all other variables held constant, Profit before income tax for the period would decrease as follows:

	June 30, 2022
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine <br>Peso	Brazilian <br>Reais	Total
Variable rate:
Brazilian Reais	—	(1,925)	(1,925)
US Dollar	(193)	(8)	(201)
Decrease in profit before income tax	(193)	(1,933)	(2,126)

•Credit risk

As of June 30, 2022, seven banks accounted for more than 80% of the total cash deposited (Credit Suisse, J.P. Morgan, Banco do Brasil, Banco Santander, Hsbc, Banco Bradesco and Itaú).

•Derivative financial instruments

The following table shows the outstanding positions for each type of derivative contract as of June 30, 2022:

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

F- 11

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

2.    Financial risk management (continued)

§    Futures / Options

	June 30, 2022
Type of	Quantities (thousands)<br>(**)		Notional		Market	Profit / (Loss)<br><br>(*)
derivative contract		amount		Value Asset/ (Liability)
					(unaudited)	(unaudited)
Futures:
Sale
Corn	(2)		(624)		(82)	82
Soybean	9		2,657		(231)	231
Wheat	17		4,994		114	(114)
Sugar	44		17,613		(475)	(567)
Total	68		24,640		(674)	(368)

(*) Included in line "Gain / (Loss) from commodity derivative financial instruments" Note 8.

(**) All quantities expressed in tons except otherwise indicated.

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

▪Other derivative financial instruments

Floating-to-fixed interest rate swaps

In April 2022 the Group's subsidiary in Brazil, Usina Monte Alegre entered into a R$ 20 million loan with Itaú BBA. The loan bears interest at a fixed rate of 13,23% p.a. At the same moment and with the same bank, the Company entered into a swap operation, with the intention to effectively convert the fixed interest rate into a variable interest rate denominated in CDI (an interbank floating interest rate in Reais), plus a fixed rate of 1,29% a.a. The swap matures according to the due date of the loan, in March 24, 2024 and resulted in a recognition of a loss of US$ 90 thousand in 2022.

As of June 30, 2022, the Group has foreign currency agreements.

During the period ended on June 30, 2022, the Group entered into several currency forward contracts in order to hedge the fluctuation of the U.S. Dollar against Euro for a total notional amount of US$ 0.85 million. The currency forward contracts maturity date is September 2022. The outstanding contracts resulted in the recognition of a gain amounting to US$ 0.02 million in 2022.

During the period ended on June 30, 2022, the Group entered into several currency forward contracts with Brazilian banks in order to hedge the fluctuation of the Brazilian Reais against US Dollar for a total notional amount of US$ 1.8 million. Those contracts entered in 2022 had maturity dates between July and August 2022. The outstanding contracts resulted in the recognition of a gain of US$ 0.06 million in the period ended June 30, 2022.

In December 2020 the Group's subsidiary in Brazil, Adecoagro Vale do Ivinhema entered into a interest rate swap operation with Itaú BBA in an aggregate amount of US$ 400 million. In these operation 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 expires semiannually until December, 2026. This swap expires semiannually until December, 2026. This contract resulted in a recognition of a gain of US$ 1.8 million in 2022 ( loss of US$ 280 thousand in 2021).

Gain and losses on currency forward contracts are included within “Financial results, net” in the statement of income.

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

F- 12

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information

IFRS 8 “Operating Segments” requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. 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 CODM evaluates the business based on the differences in the nature of its operations, products and services. The amount reported for each segment item is the measure reported to the CODM for these purposes.

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

•The Group’s ‘Farming’ line of business is further comprised of three reportable segments:

§    The Group’s ‘Crops’ Segment consists of planting, harvesting, sale and processing grains, oilseeds and fibers (including wheat, corn, soybeans, cotton, sunflowers and peanuts, among others), and to a lesser extent the provision of grain warehousing/conditioning, handling and drying services to third parties, and the purchase and sale of crops produced by third parties. Each underlying crop in the Crops 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.

§    The Group’s ‘Rice’ Segment consists of planting, harvesting, processing and marketing rice;

§    The Group’s ‘Dairy’ Segment consists of producing, processing and marketing raw milk and industrialized products, including UHT, cheese and powder milk among others;;

§    The Group’s ‘All Other Segments’ column consists of the aggregation of the remaining non-reportable operating segments, which do not meet the quantitative thresholds for disclosure and for which the Group's management does not consider them to be significance Coffee and Cattle.

•The Group’s ‘Sugar, Ethanol and Energy’ Segment consists of cultivating sugarcane which is processed in owned sugar mills, transformed into ethanol, sugar and electricity and marketed;

•The Group’s ‘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).

Certain other activities of a holding function nature not allocable to the segments are disclosed ‘Corporate’ segment.

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 %. Accordingly, Argentina has been classified as a hyperinflationary economy under the terms of IAS 29 from July 1, 2018.

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

F- 13

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information (continued)

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 this process, 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 revised 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. The segment results of the Argentinean 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. From January 1, 2018 through June 30, 2018, the Group’s segment results were still based on the IFRS measurement principles adopted until June 30, 2018.

In order to evaluate the economic performance of businesses on a monthly basis, results of operations in Argentina are based on monthly data that have been 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 company uses to translate results 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 accompanying notes are an integral part of these condensed consolidated interim financial statements

F- 14

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information (continued)

The following tables show a reconciliation of each reportable segment for the six-month period ended June 30, 2022 and 2021, as per the information reviewed by the CODM and the reportable segment measured in accordance with IAS 29 and IAS 21 as per the consolidated financial statements.

June 30, 2022	Crops			Rice			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	131,632	479	132,111	79,956	517	80,473	116,847	1,284	118,131
Cost of goods and services rendered	(127,016)	(308)	(127,324)	(68,492)	(620)	(69,112)	(102,879)	(1,026)	(103,905)
Initial recognition and changes in fair value of biological assets and agricultural produce	55,733	930	56,663	14,819	435	15,254	12,557	132	12,689
Gain from changes in net realizable value of agricultural produce after harvest	(18,037)	257	(17,780)	(2)	—	(2)	—	—	—
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	42,312	1,358	43,670	26,281	332	26,613	26,525	390	26,915
General and administrative expenses	(8,118)	(138)	(8,256)	(5,509)	(106)	(5,615)	(3,753)	(71)	(3,824)
Selling expenses	(13,385)	(166)	(13,551)	(12,976)	(162)	(13,138)	(13,314)	(284)	(13,598)
Other operating income, net	(111)	(707)	(818)	557	(13)	544	(112)	(1)	(113)
Bargain purchase gain	—	—	—	12,443	(78)	12,365	—	—	—
Profit from Operations Before Financing and Taxation	20,698	347	21,045	8,353	51	8,404	9,346	34	9,380
Depreciation of Property, plant and equipment and amortization of Intangible assets	(3,740)	(55)	(3,795)	(4,756)	(100)	(4,856)	(4,859)	(107)	(4,966)		June 30, 2022	All other segments			Corporate			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	1,875	15	1,890	—	—	—	587,742	2,295	590,037
Cost of goods and services rendered	(1,483)	(7)	(1,490)	—	—	—	(475,420)	(1,961)	(477,381)
Initial recognition and changes in fair value of biological assets and agricultural produce	348	5	353	—	—	—	131,362	1,502	132,864
Gain from changes in net realizable value of agricultural produce after harvest	—	—	—	—	—	—	(18,973)	257	(18,716)
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	740	13	753	—	—	—	224,711	2,093	226,804
General and administrative expenses	(120)	(2)	(122)	(12,775)	(178)	(12,953)	(40,780)	(501)	(41,281)
Selling expenses	(95)	(1)	(96)	(59)	(7)	(66)	(61,903)	(620)	(62,523)
Other operating income, net	(3,648)	(113)	(3,761)	17	17	34	1,023	(811)	212
Bargain purchase gain	—	—	—	—	—	—	12,443	(78)	12,365
Profit from Operations Before Financing and Taxation	(3,123)	(103)	(3,226)	(12,817)	(168)	(12,985)	135,494	83	135,577
Depreciation of Property, plant and equipment and amortization of Intangible assets	(116)	(3)	(119)	(432)	(9)	(441)	(78,127)	(274)	(78,401)
Net loss from Fair value adjustment of Investment property	(3,641)	(112)	(3,753)	—	—	—	(3,641)	(112)	(3,753)

Sugar, Ethanol and Energy and Land Transformation segments have not been reconciled due to the lack of differences.

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

F- 15

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information (continued)

June 30, 2021	Crops			Rice			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	86,828	1,774	88,602	58,814	816	59,630	73,485	1,714	75,199
Cost of goods and services rendered	(76,730)	(1,375)	(78,105)	(47,016)	(436)	(47,452)	(62,238)	(1,290)	(63,528)
Initial recognition and changes in fair value of biological assets and agricultural produce	38,848	2,094	40,942	34,408	2,077	36,485	7,362	211	7,573
Gain from changes in net realizable value of agricultural produce after harvest	(7,015)	(264)	(7,279)	—	—	—	—	—	—
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	41,931	2,229	44,160	46,206	2,457	48,663	18,609	635	19,244
General and administrative expenses	(3,926)	(152)	(4,078)	(4,077)	(164)	(4,241)	(2,479)	(105)	(2,584)
Selling expenses	(7,358)	(237)	(7,595)	(8,156)	(241)	(8,397)	(7,572)	(370)	(7,942)
Other operating income, net	566	(82)	484	201	13	214	(94)	(6)	(100)
Profit from Operations Before Financing and Taxation	31,213	1,758	32,971	34,174	2,065	36,239	8,464	154	8,618
Depreciation of Property, plant and equipment and amortization of Intangible assets	(2,964)	(127)	(3,091)	(3,761)	(157)	(3,918)	(3,612)	(151)	(3,763)		June 30, 2021	All other segments			Land transformation			Corporate			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	853	31	884	—	—	—	—	—	—	460,226	4,335	464,561
Cost of goods and services rendered	(597)	(21)	(618)	—	—	—	—	—	—	(335,679)	(3,122)	(338,801)
Initial recognition and changes in fair value of biological assets and agricultural produce	(408)	3	(405)	—	—	—	—	—	—	108,065	4,385	112,450
Gain from changes in net realizable value of agricultural produce after harvest	—	—	—	—	—	—	—	—	—	(8,542)	(264)	(8,806)
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	(152)	13	(139)	—	—	—	—	—	—	224,070	5,334	229,404
General and administrative expenses	(60)	(4)	(64)	—	—	—	(9,739)	(427)	(10,166)	(30,243)	(852)	(31,095)
Selling expenses	(65)	(3)	(68)	—	—	—	(105)	(4)	(109)	(49,191)	(855)	(50,046)
Other operating income, net	(2,986)	(86)	(3,072)	4,731	—	4,731	(174)	(12)	(186)	(11,977)	(173)	(12,150)
Profit from Operations Before Financing and Taxation	(3,263)	(80)	(3,343)	4,731	—	4,731	(10,018)	(443)	(10,461)	132,659	3,454	136,113
Depreciation of Property, plant and equipment and amortization of Intangible assets	(64)	(4)	(68)	—	—	—	(265)	(10)	(275)	(75,047)	(449)	(75,496)
Net gain from Fair value adjustment of Investment property	(2,878)	(79)	(2,957)	—	—	—	—	—	—	(2,878)	(79)	(2,957)

Sugar, Ethanol and Energy and Land Transformation segment have not been reconciled due to the lack of differences.

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

F- 16

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information (continued)

Segment analysis for the six-month period ended June 30, 2022 (unaudited)

	Farming					Sugar, Ethanol and Energy	Land Transformation	Corporate	Total
	Crops	Rice	Dairy	All Other Segments	Farming subtotal
Sales of goods and services rendered	131,632	79,956	116,847	1,875	330,310	257,432	—	—	587,742
Cost of goods sold and services rendered	(127,016)	(68,492)	(102,879)	(1,483)	(299,870)	(175,550)	—	—	(475,420)
Initial recognition and changes in fair value of biological assets and agricultural produce	55,733	14,819	12,557	348	83,457	47,905	—	—	131,362
Changes in net realizable value of agricultural produce after harvest	(18,037)	(2)	—	—	(18,039)	(934)	—	—	(18,973)
Margin on manufacturing and agricultural activities before operating expenses	42,312	26,281	26,525	740	95,858	128,853	—	—	224,711
General and administrative expenses	(8,118)	(5,509)	(3,753)	(120)	(17,500)	(10,505)	—	(12,775)	(40,780)
Selling expenses	(13,385)	(12,976)	(13,314)	(95)	(39,770)	(22,074)	—	(59)	(61,903)
Other operating income / (loss), net	(111)	557	(112)	(3,648)	(3,314)	1,138	3,182	17	1,023
Bargain purchase gain	—	12,443	—	—	12,443	—	—	—	12,443
Profit / (loss) from operations before financing and taxation	20,698	20,796	9,346	(3,123)	47,717	97,412	3,182	(12,817)	135,494
Depreciation of Property, plant and equipment and amortization of Intangible assets	(3,740)	(4,756)	(4,859)	(116)	(13,471)	(64,224)	—	(432)	(78,127)
Net loss from Fair value adjustment of Investment property	—	—	—	(3,641)	(3,641)	—	—	—	(3,641)
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)	30,742	9,100	(1,743)	551	38,650	30,821	—	—	69,471
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)	24,991	5,719	14,300	(203)	44,807	17,084	—	—	61,891
Changes in net realizable value of agricultural produce after harvest (unrealized)	(5,719)	—	—	—	(5,719)	—	—	—	(5,719)
Changes in net realizable value of agricultural produce after harvest (realized)	(12,318)	(2)	—	—	(12,320)	(934)	—	—	(13,254)
Farmlands and farmland improvements, net	447,696	147,969	2,285	56,288	654,238	73,369	—	—	727,607
Machinery, equipment, building and facilities, and other fixed assets, net	54,515	35,379	108,392	1,719	200,005	194,428	—	—	394,433
Bearer plants, net	1,017	—	—	—	1,017	333,661	—	—	334,678
Work in progress	4,813	50,563	15,254	1,908	72,538	21,113	—	—	93,651
Right of use asset	10,415	3,744	1,084	—	15,243	341,692	—	1,091	358,026
Investment property	—	—	—	32,132	32,132	—	—	—	32,132
Goodwill	7,900	1,094	5,204	—	14,198	4,169	—	—	18,367
Biological assets	32,766	11,231	24,454	10,190	78,641	96,683	—	—	175,324
Finished goods	67,828	18,664	9,230	—	95,722	69,001	—	—	164,723
Raw materials, Stocks held by third parties and others	83,889	77,200	25,059	2,472	188,620	39,673	—	—	228,293
Total segment assets	710,839	345,844	190,962	104,709	1,352,354	1,173,789	—	1,091	2,527,234
Borrowings	63,719	65,347	164,618	—	293,684	586,248	—	138,374	1,018,306
Lease liabilities	10,375	3,576	891	—	14,842	311,573	—	846	327,261
Total segment liabilities	74,094	68,923	165,509	—	308,526	897,821	—	139,220	1,345,567

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

F- 17

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

3.    Segment information (continued)

Segment analysis for the six-month period ended June 30, 2021 (unaudited)

	Farming					Sugar, Ethanol and Energy	Land Transformation	Corporate	Total
	Crops	Rice	Dairy	All Other Segments	Farming subtotal
Sales of goods and services rendered	86,828	58,814	73,485	853	219,980	240,246	—	—	460,226
Cost of goods sold and services rendered	(76,730)	(47,016)	(62,238)	(597)	(186,581)	(149,098)	—	—	(335,679)
Initial recognition and changes in fair value of biological assets and agricultural produce	38,848	34,408	7,362	(408)	80,210	27,855	—	—	108,065
Changes in net realizable value of agricultural produce after harvest	(7,015)	—	—	—	(7,015)	(1,527)	—	—	(8,542)
Margin on manufacturing and agricultural activities before operating expenses	41,931	46,206	18,609	(152)	106,594	117,476	—	—	224,070
General and administrative expenses	(3,926)	(4,077)	(2,479)	(60)	(10,542)	(9,962)	—	(9,739)	(30,243)
Selling expenses	(7,359)	(8,156)	(7,572)	(65)	(23,152)	(25,934)	—	(105)	(49,191)
Other operating income / (loss), net	566	201	(94)	(2,986)	(2,313)	(14,221)	4,731	(174)	(11,977)
Profit / (loss) from operations before financing and taxation	31,212	34,174	8,464	(3,263)	70,587	67,359	4,731	(10,018)	132,659
Depreciation of Property, plant and equipment and amortization of Intangible assets	(2,964)	(3,761)	(3,612)	(64)	(10,401)	(64,381)	—	(265)	(75,047)
Net gain from Fair value adjustment of Investment property	—	—	—	(2,878)	(2,878)	—	—	—	(2,878)
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)	19,520	22,186	(2,871)	442	39,277	(24,349)	—	—	14,928
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)	19,328	12,222	10,233	(850)	40,933	52,204	—	—	93,137
Changes in net realizable value of agricultural produce after harvest (unrealized)	(2,766)	—	—	—	(2,766)	—	—	—	(2,766)
Changes in net realizable value of agricultural produce after harvest (realized)	(4,249)	—	—	—	(4,249)	(1,527)	—	—	(5,776)
As of December 31, 2021:
Farmlands and farmland improvements, net	448,608	146,795	2,143	56,315	653,861	73,979	—	—	727,840
Machinery, equipment, building and facilities, and other fixed assets, net	47,122	29,543	81,516	1,641	159,822	158,611	—	—	318,433
Bearer plants, net	892	—	—	—	892	294,090	—	—	294,982
Work in progress	3,444	33,200	27,341	1,496	65,481	15,887	—	—	81,368
Right of use assets	13,005	3,361	930	—	17,296	243,469	—	11	260,776
Investment property	—	—	—	32,132	32,132	—	—	—	32,132
Goodwill	7,074	979	4,660	—	12,713	3,913	—	—	16,626
Biological assets	54,886	42,729	18,979	7,257	123,851	71,327	—	—	195,178
Finished goods	37,225	5,015	15,157	—	57,397	80,857	—	—	138,254
Raw materials, Stocks held by third parties and others	42,253	14,797	10,416	579	68,045	33,225	—	—	101,270
Total segment assets	654,509	276,419	161,142	99,420	1,191,490	975,358	—	11	2,166,859
Borrowings	31,755	34,230	62,061	—	128,046	524,461	—	165,144	817,651
Lease liabilities	14,106	4,157	924	—	19,187	227,585	—	82	246,854
Total segment liabilities	45,861	38,387	62,985	—	147,233	752,046	—	165,226	1,064,505

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

F- 18

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

4.    Sales

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Sales of manufactured products and services rendered:
Ethanol	197,702	117,204
Sugar (*)	28,296	97,064
Energy	13,639	17,609
Peanut	29,263	20,508
Sunflower	6,974	4,132
Rice	73,724	56,814
Fluid milk (UHT)	36,967	25,383
Powder milk	48,363	25,739
Other dairy products	17,755	12,031
Services	3,740	3,038
Rental income	423	284
Others	16,800	3,468
	473,646	383,274
Sales of agricultural produce and biological assets:
Soybean	50,387	40,249
Corn	31,363	18,857
Wheat	11,135	6,950
Rice	2,111	—
Sunflower	4,468	3,725
Barley	3,380	881
Milk	7,358	6,954
Cattle	1,490	618
Cattle for dairy	3,872	1,856
Others	827	1,197
	116,391	81,287
Total sales	590,037	464,561

(*) Includes sales tons of sugar, rice and powder milk produced by third parties for an amount of US$ 30.5 million, 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 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$ 79.3 million as of June 30, 2022 (June 30, 2021: US$ 103 million) comprised primarily of 7,043 lts of ethanol (US$ 5.73 million), 337,493 mwh of energy (US$ 18.94 million), 61,412 tons of sugar (US$ 25.03 million), 63 tons of soybean (US$ 5.69 million), 78 tons of corn (US$ 19.75 million) and 10 tons of wheat (US$ 2.54 million) which expire between July 2022 and December 2022.

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

F- 19

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

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

5.    Cost of goods sold and services rendered

As of June 30, 2022:

	June 30, 2022
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Finished goods at the beginning of 2022 (Note 18)	37,225	5,015	15,157	—	80,857	138,254
Cost of production of manufactured products (Note 6)	28,027	81,025	88,885	—	160,003	357,940
Purchases	17,023	77	2,078	—	752	19,930
Acquisition of subsidiaries	—	8,316	—	—	—	8,316
Agricultural produce	178,966	2,207	7,381	1,490	11,571	201,615
Transfer to raw material	(56,363)	(6,766)	—	—	—	(63,129)
Direct agricultural selling expenses	12,982	—	—	—	—	12,982
Tax recoveries (i)	—	—	—	—	(12,632)	(12,632)
Changes in net realizable value of agricultural produce after harvest	(17,780)	(2)	—	—	(934)	(18,716)
Finished goods as of June 30, 2022 (Note 18)	(67,828)	(18,664)	(9,230)	—	(69,001)	(164,723)
Exchange differences	(4,928)	(2,096)	(366)	—	4,934	(2,456)
Cost of goods sold and services rendered, and direct agricultural selling expenses period	127,324	69,112	103,905	1,490	175,550	477,381

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

As of June 30, 2021:

	June 30, 2021
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Finished goods at the beginning of 2021	30,267	5,970	6,489	—	34,315	77,041
Cost of production of manufactured products (Note 6)	19,577	62,332	60,597	—	181,115	323,621
Purchases	2,718	417	—	—	2,083	5,218
Agricultural produce	127,594	—	8,810	618	10,825	147,847
Transfer to raw material	(48,980)	(6,452)	—	—	—	(55,432)
Direct agricultural selling expenses	7,997	—	—	—	—	7,997
Tax recoveries (i)	—	—	—	—	(8,776)	(8,776)
Changes in net realizable value of agricultural produce after harvest	(7,279)	—	—	—	(1,527)	(8,806)
Finished goods as of June 30, 2021	(54,084)	(12,407)	(10,280)	—	(70,821)	(147,592)
Exchange differences	295	(2,408)	(2,088)	—	1,884	(2,317)
Cost of goods sold and services rendered, and direct agricultural selling expenses period	78,105	47,452	63,528	618	149,098	338,801

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

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

F- 20

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

6.    Expenses by nature

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 six-months period ended June 30, 2022:

	Cost of production of manufactured products (Note 5)						General and Administrative Expenses	Selling Expenses	Total
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Salaries, social security expenses and employee benefits	2,057	5,547	5,752	—	14,077	27,433	17,260	4,406	49,099
Raw materials and consumables	171	527	17,649	—	7,531	25,878	—	—	25,878
Depreciation and amortization	2,195	1,686	2,039	—	44,481	50,401	8,144	693	59,238
Depreciation of right-of-use assets	—	57	323	—	3,378	3,758	5,393	32	9,183
Fuel, lubricants and others	136	127	946	—	14,455	15,664	300	139	16,103
Maintenance and repairs	858	1,061	988	—	7,688	10,595	988	466	12,049
Freights	94	8,287	1,311	—	64	9,756	—	20,265	30,021
Export taxes / selling taxes	—	—	—	—	—	—	—	23,350	23,350
Export expenses	—	—	—	—	—	—	—	7,530	7,530
Contractors and services	592	692	301	—	2,310	3,895	—	—	3,895
Energy transmission	—	—	—	—	—	—	—	1,158	1,158
Energy power	834	1,722	1,603	—	394	4,553	177	48	4,778
Professional fees	22	41	62	—	274	399	4,288	235	4,922
Other taxes	15	60	56	—	234	365	762	42	1,169
Contingencies	—	—	—	—	—	—	411	—	411
Lease expense and similar arrangements	111	341	96	—	—	548	657	127	1,332
Third parties raw materials	1,727	7,573	33,453	—	2,131	44,884	—	—	44,884
Others	760	1,771	1,015	—	1,682	5,228	2,901	4,032	12,161
Subtotal	9,572	29,492	65,594	—	98,699	203,357	41,281	62,523	307,161
Own agricultural produce consumed	18,455	51,533	23,291	—	61,304	154,583	—	—	154,583
Total	28,027	81,025	88,885	—	160,003	357,940	41,281	62,523	461,744

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

F- 21

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

6.    Expenses by nature (continued)

Expenses by nature for six-month period ended June 30, 2021:

	Cost of production of manufactured products (Note 5)						General and Administrative Expenses	Selling Expenses	Total
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Salaries, social security expenses and employee benefits	1,451	3,051	3,990	—	12,890	21,382	13,812	3,202	38,396
Raw materials and consumables	245	161	8,185	—	4,784	13,375	—	—	13,375
Depreciation and amortization	1,734	1,123	1,584	—	47,161	51,602	6,852	604	59,058
Depreciation of right-of-use assets	—	46	277	—	2,493	2,816	2,651	23	5,490
Fuel, lubricants and others	164	41	598	—	11,551	12,354	349	108	12,811
Maintenance and repairs	544	782	677	—	7,435	9,438	770	377	10,585
Freights	136	8,059	954	—	234	9,383	—	17,560	26,943
Export taxes / selling taxes	—	—	—	—	—	—	—	17,530	17,530
Export expenses	—	—	—	—	—	—	—	4,470	4,470
Contractors and services	594	120	27	—	3,411	4,152	—	—	4,152
Energy transmission	—	—	—	—	—	—	—	1,122	1,122
Energy power	506	713	1,015	—	364	2,598	149	40	2,787
Professional fees	29	39	60	—	334	462	3,643	537	4,642
Other taxes	11	47	42	—	935	1,035	442	30	1,507
Contingencies	—	—	—	—	—	—	713	—	713
Lease expense and similar arrangements	61	116	103	—	—	280	538	95	913
Third parties raw materials	2,797	2,455	23,870	—	3,669	32,791	—	—	32,791
Tax recoveries	—	—	—	—	(650)	(650)	—	—	(650)
Others	347	2,101	1,112	—	1,619	5,179	1,176	4,348	10,703
Subtotal	8,619	18,854	42,494	—	96,230	166,197	31,095	50,046	247,338
Own agricultural produce consumed	10,958	43,478	18,103	—	84,885	157,424	—	—	157,424
Total	19,577	62,332	60,597	—	181,115	323,621	31,095	50,046	404,762

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

F- 22

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

7.    Salaries and social security expenses

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Wages and salaries	61,140	48,626
Social security costs	20,015	16,224
Equity-settled share-based compensation	4,251	2,732
	85,406	67,582

8.    Other operating income / (expense), net

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
(Loss) from commodity derivative financial instruments	(2,994)	(13,317)
Gain /(loss) from disposal of other property items	1,119	(268)
Net (loss) from fair value adjustment of Investment property	(3,753)	(2,957)
Others	5,840	4,392
	212	(12,150)

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

F- 23

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

9.    Financial results, net

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Finance income:
- Interest income	1,414	1,094
- Foreign exchange gain,net	25,019	20,115
- Gain from interest rate/foreign exchange rate derivative financial instruments	1,936	1,892
- Other income	94	324
Finance income	28,463	23,425
Finance costs:
- Interest expense	(29,768)	(29,539)
- Finance cost related to lease liabilities	(16,406)	(9,964)
- Cash flow hedge – transfer from equity	(26,363)	(26,575)
- Taxes	(2,198)	(2,102)
- Borrowings prepayment related expenses - Brazilian subsidiaries	—	(3,063)
- Other expenses	(4,266)	(3,385)
Finance costs	(79,001)	(74,628)
Other financial results - Net gain of inflation effects on the monetary items	17,276	3,637
Total financial results, net	(33,262)	(47,566)

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

F- 24

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

10.    Taxation

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Current income tax	(4,394)	(2,701)
Deferred income tax	(14,637)	(50,845)
Income tax (expense)	(19,031)	(53,546)

In June, 2021, the Argentine Government introduced new changes in the income tax, establishing increasing rates, which starts in 25% and reach 35% for income tax gains over Pesos 50 million (0.5 million USD). This new scheme is applicable for the year 2021 onwards.

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

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Beginning of period liability	(255,527)	(162,556)
Exchange differences	(28,061)	(19,322)
Effect of fair value valuation for farmlands	28,232	(25,922)
Acquisition of subsidiary (Note 20)	(1,818)	—
Tax charge relating to cash flow hedge (i)	(6,603)	2,667
Others	483	597
Income tax (expense)	(14,637)	(50,845)
End of period liability	(277,931)	(255,381)

(i)It relates to the amount reclassified of US$8,645 gain and US$740 gain from equity to profit and loss for the six-month period ended June 30, 2022 and 2021, respectively.

Tax Inflation Adjustment in Argentina

Laws 27,430, 27,468 and 27,541 introduced several amendments to the income tax inflation adjustments provided by the 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.

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.

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

F- 25

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

10.    Taxation (continued)

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$ 39.2 million.

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.

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Tax calculated at the tax rates applicable to profits in the respective countries	(32,209)	(28,883)
Non-deductible items	(537)	(850)
Effect of the changes in the statutory income tax rate in Argentina	(126)	(17,999)
Non-taxable income	10,876	6,421
Tax losses where no deferred tax asset was recognized	(41)	—
Effect of IAS 29 on Argentina´s Shareholder´s equity and deferred income tax.	(10,654)	(11,790)
Utilization of previously unrecognized tax	10,658	—
Others	3,002	(445)
Income tax (expense)	(19,031)	(53,546)

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

F- 26

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

11.    Property, plant and equipment

Changes in the Group’s property, plant and equipment for the six-month periods ended June 30, 2022 and 2021 were as follows:

	Farmlands	Farmland improvements	Buildings and facilities	Machinery, equipment, furniture and<br>Fittings	Bearer plants	Others	Work in progress	Total
Six-month period ended June 30, 2021
Opening net book amount.	694,166	21,585	177,604	95,905	304,829	6,463	57,740	1,358,292
Exchange differences	64,932	1,192	15,494	(22,863)	44,415	5,872	(1,430)	107,612
Additions	—	151	7,128	33,642	37,498	1,686	18,612	98,717
Revaluation surplus	(64,929)	—	—	—	—	—	—	(64,929)
Transfer from investment property	3,641	—	—	—	—	—	—	3,641
Transfers	—	151	2,782	1,642	—	7	(4,582)	—
Disposals	—	(7)	(3)	(2,034)	—	(35)	(42)	(2,121)
Reclassification to non-income tax credits (*)	—	—	—	(215)	—	—	—	(215)
Depreciation	—	(1,644)	(11,260)	(32,578)	(28,381)	(898)	—	(74,761)
Closing net book amount	697,810	21,428	191,745	73,499	358,361	13,095	70,298	1,426,236
At June 30, 2021 (unaudited)
Cost	697,810	45,765	405,067	753,616	758,429	32,719	70,298	2,763,704
Accumulated depreciation	—	(24,337)	(213,322)	(680,117)	(400,068)	(19,624)	—	(1,337,468)
Net book amount	697,810	21,428	191,745	73,499	358,361	13,095	70,298	1,426,236
Six-month period ended June 30, 2022
Opening net book amount	711,261	16,579	207,679	83,183	294,982	27,571	81,368	1,422,623
Exchange differences	80,313	1,370	27,883	(3,744)	15,797	8,713	8,140	138,472
Additions	—	—	9,243	42,269	49,951	942	24,667	127,072
Revaluation surplus	(81,195)	—	—	—	—	—	—	(81,195)
Acquisition of subsidiaries (Note 20)	481	—	21,026	—	—	—	—	21,507
Transfers	—	—	13,079	7,632	—	(187)	(20,524)	—
Disposals	—	—	(1)	(565)	—	(35)	—	(601)
Reclassification to non-income tax credits (*)	—	—	—	(35)	—	—	—	(35)
Depreciation	—	(1,202)	(13,617)	(35,412)	(26,052)	(1,191)	—	(77,474)
Closing net book amount	710,860	16,747	265,292	93,328	334,678	35,813	93,651	1,550,369
At June 30, 2022 (unaudited)
Cost	710,860	43,808	506,423	848,750	796,510	57,845	93,651	3,057,847
Accumulated depreciation	—	(27,061)	(241,131)	(755,422)	(461,832)	(22,032)	—	(1,507,478)
Net book amount	710,860	16,747	265,292	93,328	334,678	35,813	93,651	1,550,369

(*) Brazilian federal tax law allows entities to take a percentage of the total cost of the assets purchased as a tax credit. As of June 30, 2022, ICMS tax credits were reclassified to trade and other receivables.

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

F- 27

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

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

11.    Property, plant and equipment (continued)

For all Farmlands with a total valuation of US$ 710 million as of June 30, 2022, the valuation was determined using 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 premise being the price per hectare. (Level 3). The Group estimated that, other factors being constant, a 10% reduction on the Sales price for the period ended June 30, 2022 would have reduced the value of the Farmlands on US$ 71 million, which would impact, net of its tax effect on the "Revaluation surplus" item in the statement of Changes in Shareholders' Equity.

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 six-month periods ended June 30, 2022 and 2021.

As of June 30, 2022, borrowing costs of US$ 1,496 (June 30, 2021: US$ 1,165) were capitalized as components of the cost of acquisition or construction of 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$ 129,344 as of June 30, 2022 (June 30, 2021: U$S 456,959)

12.    Right of use assets

Changes in the Group’s right of use assets for the six-month periods ended June 30, 2022 and 2021 were as follows:

	Agricultural partnership (*)	Others	Total
	(unaudited)
Six-month period ended June 30, 2021
Opening net book amount	192,271	17,423	209,694
Exchange differences	14,947	1,586	16,533
Additions and re-measurement	55,225	1,027	56,252
Depreciation	(18,990)	(3,990)	(22,980)
Closing net book amount	243,453	16,046	259,499
Six-month period ended June 30, 2022
Opening net book amount	235,970	24,806	260,776
Exchange differences	11,845	1,805	13,650
Additions and re-measurement	106,785	5,377	112,162
Depreciation	(23,999)	(4,563)	(28,562)
Closing net book amount	330,601	27,425	358,026

(*) Agricultural partnership has an average of 6 years duration.

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

F- 28

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

13.    Investment property

Changes in the Group’s investment property for the six-month periods ended June 30, 2022 and 2021 were as follows:

	June 30,<br>2022	June 30,<br>2021
	(unaudited)
Beginning of the period	32,132	31,179
(Loss) from fair value adjustment (Note 8)	(3,753)	(2,957)
Reclassification to property, plant and equipment	—	(3,641)
Exchange differences	3,753	3,172
End of the period	32,132	27,753
Cost	32,132	27,753
Net book amount	32,132	27,753

For all Investment properties with a total valuation of US$ 32.1 million as of June 30, 2022, the valuation was determined using 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 premise being the price per hectare. (Level 3). The increase /decrease in the fair value is recognized in the Statement of income under the line item "Other operating income, net". There were no changes of the valuation techniques during June 30, 2022 and 2020. The Group estimated that, other factors being constant, a 10% reduction on the Sales price for the period ended June 30, 2022 would have reduced the value of the Investment properties on US$ 3.2 million, which would impact the line item "Net loss from fair value adjustment ".

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

F- 29

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

14.    Intangible assets

Changes in the Group’s intangible assets in the six-month periods ended June 30, 2022 and 2021 were as follows:

	Goodwill	Software	Trademarks	Others	Total
Six-month period ended June 30, 2021
Opening net book amount	14,482	5,264	7,150	34	26,930
Exchange differences	1,210	459	608	2	2,279
Additions	—	882	—	60	942
Amortization charge (i)	—	(543)	(163)	(29)	(735)
Closing net book amount	15,692	6,062	7,595	67	29,416
At June 30, 2021 (unaudited)
Cost	15,692	13,140	9,726	503	39,061
Accumulated amortization	—	(7,078)	(2,131)	(436)	(9,645)
Net book amount	15,692	6,062	7,595	67	29,416
Six-month period ended June 30, 2022
Opening net book amount	16,626	6,485	8,191	35	31,337
Exchange differences	1,741	678	820	3	3,242
Additions	—	725	—	706	1,431
Amortization charge (i)	—	(681)	(214)	(32)	(927)
Closing net book amount	18,367	7,207	8,797	712	35,083
At June 30, 2022 (unaudited)
Cost	18,367	15,620	11,345	1,219	46,551
Accumulated amortization	—	(8,413)	(2,548)	(507)	(11,468)
Net book amount	18,367	7,207	8,797	712	35,083

(i) Amortization charges are included in “General and administrative expenses” and “Selling expenses” for the period ended June 30, 2022 and 2021, respectively.

The Group conducts an impairment test annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. The last impairment test of goodwill was performed as of September 30, 2021.

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

F- 30

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

15.    Biological assets

Changes in the Group’s biological assets in the six-month periods ended June 30, 2022 and 2021 were as follows:

	June 30, 2022
	Crops (i)	Rice (i)	Dairy	All other segments	Sugarcane (i)	Total
Beginning of the year	54,886	42,729	18,979	7,257	71,327	195,178
Increase due to purchases	—	—	—	1,957	—	1,957
Acquisition of subsidiaries (Note 20)	—	1,676	—	—	—	1,676
Initial recognition and changes in fair value of biological assets	56,663	15,254	12,689	353	47,905	132,864
Decrease due to harvest / disposals	(178,966)	(79,002)	(39,002)	(1,985)	(76,559)	(375,514)
Costs incurred during the period	93,768	25,584	29,572	1,760	50,484	201,168
Exchange differences	6,415	4,990	2,216	848	3,526	17,995
End of the period (unaudited)	32,766	11,231	24,454	10,190	96,683	175,324
	June 30, 2021
---	---	---	---	---	---	---
	Crops (i)	Rice (i)	Dairy	All other segments	Sugarcane (i)	Total
Beginning of the year	43,787	29,062	12,933	4,703	75,208	165,693
Increase due to purchases	—	—	—	1,036	—	1,036
Initial recognition and changes in fair value of biological assets	40,942	36,485	7,573	(405)	27,855	112,450
Decrease due to harvest / disposals	(127,594)	(88,445)	(27,767)	(914)	(98,122)	(342,842)
Costs incurred during the period	63,284	26,593	21,421	727	44,233	156,258
Exchange differences	4,246	2,957	1,316	479	3,721	12,719
End of the period (unaudited)	24,665	6,652	15,476	5,626	52,895	105,314

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

The discounted cash flow valuation technique and the significant unobservable inputs used to calculate the fair value of these biological assets are consistent with those of the audited annual financial statements for the year ended December 31, 2021 described in Note 16. Please see Level 3 definition in Note 16 of these condensed consolidated interim financial statements.

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

F- 31

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

15.    Biological assets (continued)

Cost of production as of June 30, 2022:

	June 30, 2022
	(unaudited)
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Salaries, social security expenses and employee benefits	2,422	4,857	3,929	426	5,155	16,789
Depreciation and amortization	—	—	—	—	1,708	1,708
Depreciation of right-of-use assets	—	—	—	—	19,085	19,085
Fertilizers, agrochemicals and seeds	25,935	1,793	—	—	15,825	43,553
Fuel, lubricants and others	412	603	688	32	1,901	3,636
Maintenance and repairs	858	3,289	1,741	218	1,112	7,218
Freights	3,236	248	93	99	—	3,676
Contractors and services	25,443	11,677	—	2	4,881	42,003
Feeding expenses	—	—	11,567	281	—	11,848
Veterinary expenses	—	—	1,870	138	—	2,008
Energy power	18	2,111	666	4	—	2,799
Professional fees	95	160	75	2	225	557
Other taxes	661	76	8	54	92	891
Lease expense and similar arrangements	32,782	249	—	2	—	33,033
Others	1,906	521	329	49	500	3,305
Subtotal	93,768	25,584	20,966	1,307	50,484	192,109
Own agricultural produce consumed	—	—	8,606	453	—	9,059
Total	93,768	25,584	29,572	1,760	50,484	201,168

Cost of production as of June 30, 2021:

	June 30, 2021
	(unaudited)
	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
Salaries, social security expenses and employee benefits	1,630	3,935	2,570	299	4,533	12,967
Depreciation and amortization	—	—	—	—	1,686	1,686
Depreciation of right-of-use assets	—	—	—	—	15,941	15,941
Fertilizers, agrochemicals and seeds	15,920	764	—	—	15,990	32,674
Fuel, lubricants and others	291	687	442	23	1,237	2,680
Maintenance and repairs	465	3,387	1,235	157	863	6,107
Freights	2,410	443	66	29	—	2,948
Contractors and services	21,079	15,398	—	—	3,399	39,876
Feeding expenses	—	—	8,578	52	—	8,630
Veterinary expenses	—	—	1,608	117	—	1,725
Energy power	17	1,007	526	3	—	1,553
Professional fees	63	109	20	4	180	376
Other taxes	618	77	5	27	29	756
Lease expense and similar arrangements	19,969	84	—	—	—	20,053
Others	822	702	346	16	375	2,261
Subtotal	63,284	26,593	15,396	727	44,233	150,233
Own agricultural produce consumed	—	—	6,025	—	—	6,025
Total	63,284	26,593	21,421	727	44,233	156,258

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

F- 32

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

15.    Biological assets (continued)

Biological assets as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,<br>2022	December 31, 2021
	(unaudited)
Non-current
Cattle for dairy production	23,830	18,428
Breeding cattle	730	707
Other cattle	179	220
	24,739	19,355
Current
Breeding cattle	9,281	6,330
Other cattle	624	551
Sown land – crops	32,766	54,886
Sown land – rice	11,231	42,729
Sown land – sugarcane	96,683	71,327
	150,585	175,823
Total biological assets	175,324	195,178

16.    Financial instruments

As of June 30, 2022, 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. A market is deemed active if transactions take place with sufficient frequency and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market is the most reliable indicator of fair value, this should always be used if available. The financial instruments the Group has allocated to this level mainly comprise crop futures and options traded on the stock market. In the case of securities, the Group allocates them to this level when either a stock market price is available or prices are provided by a price quotation on the basis of actual market transactions.

Derivatives not traded on the stock market allocated to Level 2 are valued using models based on observable market data. For this, the Group uses inputs directly or indirectly observable in the market, other than quoted prices. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period. 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 inputs used reflect the Group’s assumptions regarding the factors, which market players would consider in their pricing. The Group uses the best available information for this, including internal company data. The Group does not have financial instruments allocated to this level for any of the periods presented.

There were no transfer between any levels during the period.

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

F- 33

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

16.    Financial instruments (continued)

The following tables present the Group’s financial assets and financial liabilities that are measured at fair value as of June 30, 2022 and their allocation to the fair value hierarchy:

	2022
	Level 1	Level 2	Total
Assets
Derivative financial instruments	173	5,461	5,634
Total assets	173	5,461	5,634
Liabilities
Derivative financial instruments	(788)	(85)	(873)
Total liabilities	(788)	(85)	(873)

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	(674)
NDF	Quoted price	Swap curve	Present value method	2	22
NDF	Quoted price	Money market interest-rate curve	Present value method	2	59
Interest-rate swaps	Theoretical price	Money market interest-rate curve.	Present value method	2	5,354
					4,761

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

F- 34

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

17.    Trade and other receivables, net

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Non current
Advances to suppliers	3,963	952
Income tax credits	7,208	6,862
Non-income tax credits (i)	17,361	19,156
Judicial deposits	1,772	1,674
Receivable from disposal of subsidiary	8,082	9,830
Other receivables	3,841	3,757
Non current portion	42,227	42,231
Current
Trade receivables	94,631	63,726
Less: Allowance for trade receivables	(4,698)	(3,023)
Trade receivables – net	89,933	60,703
Prepaid expenses	9,183	9,405
Advance to suppliers	52,196	19,074
Income tax credits	2,108	1,846
Non-income tax credits (i)	41,842	29,414
Receivable from disposal of subsidiary	14,298	17,259
Cash collateral	74	21
Other receivables	14,916	8,127
Subtotal	134,617	85,146
Current portion	224,550	145,849
Total trade and other receivables, net	266,777	188,080

(i) Includes US$ 35 for the six-month period ended June 30, 2022 reclassified from property, plant and equipment (for the year ended December 31, 2021: US$ 303).

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 accompanying notes are an integral part of these condensed consolidated interim financial statements

F- 35

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

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

17.    Trade and other receivables, net (continued)

The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies (expressed in US dollars):

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Currency
US Dollar	118,171	62,604
Argentine Peso	72,545	55,260
Uruguayan Peso	—	460
Brazilian Reais	76,061	69,756
	266,777	188,080

As of June 30, 2022 trade receivables of US$ 21,403 (December 31, 2021: US$ 11.224) were past due but not impaired. The ageing analysis of these receivables indicates that US$ 759 and US$ 717 are over 6 months in June 30, 2022 and December 31, 2021, respectively.

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 other classes within other receivables do not contain impaired assets.

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

18.    Inventories

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Raw materials	228,293	101,270
Finished goods (Note 5) (i)	164,723	138,254
	393,016	239,524

(i) Finished goods of Crops reportable segment are valued at fair value.

19.    Cash and cash equivalents

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Cash at bank and on hand	97,246	152,721
Short-term bank deposits	91,105	47,045
	188,351	199,766

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

F- 36

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

20.    Acquisition

Acquisition of subsidiaries of Viterra 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). Paso Dragón S.A. has a 12% equity investment in Galofer S.A. (Uruguay). The transaction also includes 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 Company paid the first installments of US$ 2.0 million and US$ 8 million of the assumed debt.

In addition, the agreement provides for a cash contingent payment of US$ 778 thousands, which will be payable only if certain conditions are met.

The Company has made a preliminary 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 preliminary estimated purchase price, including the contingent payment and the preliminary allocation of the estimated purchase price in these consolidated interim financial statements. The acquisition accounting is dependent upon certain valuations and other studies that have yet to progress to a stage where there is sufficient information for a definitive measurement. Therefore, these preliminary estimates and assumptions are subject to change during the measurement period as the Company finalizes the valuations of the net intangible and tangible assets. The final allocation may include changes to (1) the fair values of property, plant and equipment, (2) the recognized amounts of contingencies and liabilities and (3) assets and liabilities, as more information becomes available.

These final valuations may change significantly from the preliminary estimates. Differences between these preliminary estimates and the final acquisition accounting could have a material impact on these consolidated interim financial statements and the Company´s consolidated future results of operations and financial position. The Company expects to finalize the purchase price allocation during the third quarter ended September 30, 2022.

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” in the income statement for the six months ended June 30, 2022 reflecting the opportunity to acquire the rice operations in Argentina and Uruguay from an outgoing market player.

The following table summarizes the estimated preliminary purchase price:

Purchase consideration:
Amount paid in cash	1,993
Amounts to be paid in installments (*)	15,100
Total purchase consideration	17,093
Fair value of net assets acquired	29,536
Bargain purchase gain over the total purchase consideration	12,443

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

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

F- 37

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

20.    Acquisition (continued)

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

Cash and cash equivalents	3,172
Trade and other receivables	22,371
Inventories	51,318
Biological assets	1,675
Property, plant and equipment	21,478
Total Assets	100,014
Trade and other payables	(47,568)
Payroll and other liabilities	(908)
Borrowings	(20,257)
Deferred income tax liabilities	(1,745)
Total Liabilities	(70,478)
Fair value of Net Assets Acquired	29,536

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 gain”.

Acquisition-related costs of USD 193 thousands are included in General and administrative expenses in the Condensed Consolidated Interim 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 interim statements of income for the six-month and three-month periods ended June 30, 2022 as from the date of acquisition:

	Period from the date of acquisition to June 30, 2022
Sales of goods and service rendered	11,675
Profit from operations	585

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

F- 38

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

21.    Shareholder´s contribution

	Number of shares (thousands)	Share capital and share premium
At January 1, 2021	122,382	1,086,388
Restricted shares vested	—	3,594
Purchase of own shares	—	(16,876)
At June 30, 2021	122,382	1,073,106
At January 1, 2022	122,382	1,034,633
Reduction of issued share capital of the company	(11,000)	(16,500)
Employee share options exercised (Note 22)	—	2,432
Restricted share vested	—	4,647
Purchase of own shares	—	(11,473)
Dividends to shareholders	—	(35,000)
At June 30, 2022	111,382	978,739

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, our issued share capital amounts to $167,072,722.50, represented by 111,381,815 shares in issue (of which 300,987 are treasury shares) with a nominal value of $1.50 each.

Share Repurchase Program

On September 12, 2013, the Board of Directors of the Company authorized a share repurchase program for up to 5% of its outstanding shares. The repurchase program has been renewed by the Board of Directors after each 12-month period. On August 10, 2021, the Board of Directors approved the renewal of the Program and extension of the term for an additional twelve-month period ending on September 23, 2022.

Repurchases of shares under the program may be made from time to time (i) 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; and (ii) through privately negotiated transactions. 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. The size and the timing of repurchases will depend upon market conditions, applicable legal requirements and other factors.

As of June 30, 2022, the Company repurchased an aggregate of 19,084,538 shares under the program, of which 7,857,422 have been utilized to cover the exercise and granted of the Company’s employee stock option plan and restricted stock plan and 11 millions share were reduced from capital. During the six-month periods ended June 30, 2022 and 2021 the Company repurchased shares for an amount of 1,718,458 and 2,226,347 respectively. The outstanding treasury shares as of June 30, 2022 totaled 300,987.

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

F- 39

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

21.    Shareholder´s contribution (continued)

Dividend distribution

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

22.    Equity-settled share-based payments

The Group has set a “2004 Incentive Option Plan” (“Option Schemes”) under which the Group grants equity-settled options to senior managers and selected employees of the Group´s subsidiaries. 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 shares, or restricted stock units to senior and medium management and key employees of the Group’s subsidiaries.

(a)Option Schemes

No expense was accrued for both periods under the Options Schemes.

As of June 30, 2022, 313,582 options (June 30, 2021: nil) were exercised, and nil options (June 30, 2021: nil) were forfeited, and nil options were expired (June 30, 2021: nil).

(b)Restricted Share and Restricted Stock Unit Plan

As of June 30, 2022, the Group recognized compensation expense US$ 5.4 million related to the restricted shares granted under the Restricted Share Plan (June 30, 2021: US$ 2.9 million). For the six-month period ended June 30, 2022, 1,398,391 Restricted Shares were granted (June 30, 2021: 1,061,349), 828,690 were vested (June 30, 2021: 643,860), and 11,559 Restricted shares were forfeited (June 30, 2021: 1,286).

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

F- 40

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

23.    Trade and other payables

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Non-current
Trade payables	1,593	—
Payable from acquisition of subsidiary (Note 20)	11,564	—
Other payables	315	284
	13,472	284
Current
Trade payables	157,750	151,979
Advances from customers	2,375	8,705
Taxes payable	7,620	6,866
Dividends to shareholders (Note 21)	17,500	—
Payables from acquisition of subsidiaries (Note 20)	2,898	—
Other payables	5,697	1,196
	193,840	168,746
Total trade and other payables	207,312	169,030

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 amount, as the impact of discounting is not significant.

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

F- 41

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

24.    Borrowings

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Non-current
Senior Notes (*)	497,678	497,455
Bank borrowings (*)	251,210	208,032
	748,888	705,487
Current
Senior Notes (*)	8,250	8,250
Bank overdrafts	89,090	11,768
Bank borrowings (*)	172,078	92,146
	269,418	112,164
Total borrowings	1,018,306	817,651

(*) As of June 30, 2022, the Group was in compliance with the related financial covenants under the respective loan agreements.

As of June 30, 2022, total bank borrowings include collateralized liabilities of US$ 50,694 (December 31, 2021: US$ 70,221). These loans are mainly collateralized by property, plant and equipment, sugarcane plantations, sugar export contracts and shares of certain subsidiaries of the Group.

Notes 2027

On September 21, 2017, the Company issued senior notes (the “Notes”) for US$ 500 million, at an annual nominal 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$ 496.5 million.

The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of our current and future subsidiaries, currently: 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.

Loan with International Finance Corporation (IFC)

In June 2020, our Argentine subsidiaries, Adeco Agropecuaria , Pilaga 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.

The loan contains customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions.

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

F- 42

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

24.    Borrowings (continued)

The maturity of the Group's borrowings and the Group's exposure to fixed and variable interest rates is as follows:

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Fixed rate:
Less than 1 year	256,597	104,349
Between 1 and 2 years	38,454	12,503
Between 2 and 3 years	10,823	12,500
Between 3 and 4 years	2,223	—
More than 5 years	497,678	497,455
	805,775	626,807
Variable rate:
Less than 1 year	12,821	7,815
Between 1 and 2 years	3,627	5,075
Between 2 and 3 years	33,874	31,754
Between 3 and 4 years	32,611	29,255
Between 4 and 5 years	79,667	71,045
More than 5 years	49,931	45,900
	212,531	190,844
	1,018,306	817,651

The breakdown of the Group´s borrowing by currency is included in Note 2 - Interest rate risk.

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 senior notes equals US$ 459 million, 91.84% of the nominal amount.

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

F- 43

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

25.    Lease liabilities

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Lease liabilities
Non-current	270,666	201,718
Current	56,595	45,136
	327,261	246,854

The maturity of the Group's lease liabilities is as follows:

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Less than 1 year	56,595	45,136
Between 1 and 2 years	27,123	44,847
Between 2 and 3 years	53,343	38,745
Between 3 and 4 years	44,457	30,085
Between 4 and 5 years	36,183	24,072
More than 5 years	109,560	63,969
	327,261	246,854

26.    Payroll and social security liabilities

	June 30,<br>2022	December 31,<br>2021
	(unaudited)
Non-current
Social security payable	1,057	1,243
	1,057	1,243
Current
Salaries payable	6,894	2,617
Social security payable	4,057	3,499
Provision for vacations	8,624	8,136
Provision for bonuses	6,269	10,799
	25,844	25,051
Total payroll and social security liabilities	26,901	26,294

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

F- 44

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

27.    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. There have been no material changes to claimed amounts and current proceedings since December 31, 2021.

28.    Related-party transactions

The following is a summary of the balances and transactions with related parties:

Related party	Relationship		Description of transaction	Loss included in the statement of income		Balance payable
		June 30,<br>2022		June 30,<br>2021	June 30,<br>2022	December 31,<br>2021
				(unaudited)	(unaudited)	(unaudited)
Directors and senior management	Employment		Compensation selected employees	(5,679)	(3,753)	(14,746)	(16,198)

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

F- 45

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

29.    Basis of preparation and presentation

The information presented in the accompanying condensed consolidated interim financial statements (“interim financial statements”) as of June 30, 2022 and for the six-months ended June 30, 2022 and 2021 is unaudited and in the opinion of management reflect all adjustments necessary to present fairly the financial position of the Group as of June 30, 2022, results of operations and cash flows for the six-month periods ended June 30, 2022 and 2021. All such adjustments are of a normal recurring nature. In preparing these accompanying interim financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

These interim financial statements have been prepared in accordance with International Accounting Standard 34 (IAS 34), ‘Interim financial reporting’ as issued by the International Accounting Standards Board (IASB) and they should be read in conjunction with the annual financial statements for the year ended December 31, 2021, which have been prepared in accordance with IFRSs.

Certain new accounting standards and interpretations are mandatory since January 1, 2022. These standards did not have any material impact on the Company's consolidated financial statements.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021.

Business combinations — purchase price allocation

Complementing Note 32.a to our Consolidated Financial statements as of December 31, 2021 (Scope of consolidation – Subsidiaries), when describing the acquisition method for a business combination, it is necessary to state that: 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”.

Seasonality of operations

The Group’s business activities are inherently seasonal. The Group generally harvest and sell its grains (corn, soybean, rice and sunflower) between February and August, with the exception of wheat, which is harvested from December to January. Peanut is harvested from April to May, and sales are executed with higher intensity during the third quarter of the year. Cotton is a unique in that while it is typically harvested from June to August, it requires processing which takes about two to three months to complete. Sales in our Dairy business segment tend to be more stable. However, milk production is generally higher during the fourth quarter, when the weather is more suitable for production. Although our Sugar, Ethanol and Electricity cluster is currently operating under a "non-stop" or "continuous" harvest and without stopping during traditional off-season, the rest of the sector in Brazil is still primarily operating with large off-season periods from December/January to March/April. The result of large off-season periods is fluctuations in our sugar and ethanol sales and in our inventories, usually peaking in December to take advantage of higher prices during the traditional off-season period (i.e., January through April). As a result of the above factors, there may be significant variations in our financial results from one quarter to another. In addition, our quarterly results may vary as a result of the effects of fluctuations in commodities prices, production yields and costs on the determination of initial recognition and changes in fair value of biological assets and agricultural produce.

30.    Critical accounting estimates and judgments

The Group's critical accounting policies are also consistent with those of the audited annual financial statements for the year ended December 31, 2021 described in Note 32.

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

F- 46

Adecoagro S.A.

Notes to the Condensed Consolidated Interim Financial Statements

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

31.    Information related to COVID-19 pandemic

In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in China and started spreading to the rest of the world in early 2020. The COVID-19 virus has impacted economic activity worldwide and has posed the risk that Adecoagro or its employees, contractors, suppliers, customers and other business partners may be prevented from conducting certain business activities for an indefinite period of time, including due to shutdowns mandated by governmental authorities or otherwise adopted by companies as a preventive measure.

Both in Argentine and Brazil, governments adopted social distancing measures, and shutdowns, that affected economic activities. In our case, activities pursued by our Argentine subsidiaries, related to agricultural production, distribution and commercialization, were exempted from the Mandatory Isolation Regime for being considered “essential” activities. Also our activities in Brazil have no restrictions. Thus, the activity of the Company has not suffered any severe effect.

As of the date of this report, impulsed by the vaccination path, almost all restrictions were lifted.

The Company is closely monitoring the situation and taking all necessary measures at its disposal to preserve human life and its operation.

The Company has enacted prevention and action protocols tailored for each facility and activity, in addition to constituting crises committees to monitor the Company’s response to the pandemic.

Measures taken include but are not limited to: (i) body temperature controls at entrances of each facility and other critical check points, (ii) mandatory distancing in the workplace, (iii) maximum limit of people in the conferences rooms, lunch room and vehicles (iv) sanitary barriers, (v) special protective attire and masks, (vi) mandatory quarantines for those who have been in contact with travelers or with symptomatic persons, (vii) training programs and information about how to prevent the risks of transmission of COVID-19, (viii) hired an infectious disease specialist to further assess on site. Additionally, remote work has been guaranteed for the duration of the pandemic for employees based in central offices, and a rotation scheme has been implemented for administrative employees based in the farms or industrial facilities.

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

F- 47