Adecoagro S.A.

Condensed Consolidated Interim Financial Statements as of March 31, 2022 and for the three-month periods ended March 31, 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: 122,381,815 common shares (Note 21)

Outstanding Capital Stock: 109,744,637 common shares

Treasury Shares: 12,637,178 common shares

F - 1

Adecoagro S.A.

Condensed Consolidated Interim Statements of Income

for the three-month periods ended March 31, 2022 and 2021

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

		Three-months ended March 31,
	Note	2022	2021
		(unaudited)
Sales of goods and services rendered	4	206,364	174,792
Cost of goods sold and services rendered	5	(170,304)	(125,182)
Initial recognition and changes in fair value of biological assets and agricultural produce	15	84,053	75,278
Changes in net realizable value of agricultural produce after harvest		(825)	(3,671)
Margin on manufacturing and agricultural activities before operating expenses		119,288	121,217
General and administrative expenses	6	(18,735)	(14,757)
Selling expenses	6	(24,386)	(19,316)
Other operating (loss), net	8	(13,376)	(5,784)
Profit from operations		62,791	81,360
Finance income	9	56,306	1,062
Finance costs	9	(31,646)	(51,204)
Other financial results - Net gain / (loss) of inflation effects on the monetary items	9	7,266	(2,945)
Financial results, net	9	31,926	(53,087)
Profit before income tax		94,717	28,273
Income tax (expense)	10	(29,544)	(8,938)
Profit for the period		65,173	19,335
Attributable to:
Equity holders of the parent		63,257	18,214
Non-controlling interest		1,916	1,121
Earnings per share from operations attributable to the equity holders of the parent during the period:
Basic earnings per share		0.575	0.156
Diluted earnings per share		0.573	0.156

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 three-month periods ended March 31, 2022 and 2021

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

	Three-months ended March 31,
	2022	2021
	(unaudited)
Profit for the Period	65,173	19,335
Other comprehensive loss:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	104,324	(4,806)
Cash flow hedge, net of tax (Note 2)	4,727	(63)
Items that will not be reclassified to profit or loss:
Revaluation surplus net of tax	(39,704)	(10,970)
Other comprehensive income / (loss) for the period	69,347	(15,839)
Total comprehensive income for the period	134,520	3,496
Attributable to:
Equity holders of the parent	132,281	2,353
Non-controlling interest	2,239	1,143

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 March 31, 2022 and December 31, 2021

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

		March 31,	December 31,
	Note	2022	2021
		(unaudited)
ASSETS
Non-Current Assets
Property, plant and equipment	11	1,579,592	1,422,623
Right of use assets	12	388,106	260,776
Investment property	13	32,132	32,132
Intangible assets	14	34,379	31,337
Biological assets	15	22,339	19,355
Deferred income tax assets	10	22,775	10,321
Trade and other receivables, net	17	51,086	42,231
Derivative financial instruments	16	2,472	757
Other assets		1,655	1,071
Total Non-Current Assets		2,134,536	1,820,603
Current Assets
Biological assets	15	226,936	175,823
Inventories	18	282,580	239,524
Trade and other receivables, net	17	208,661	145,849
Derivative financial instruments	16	248	828
Other assets		2	8
Cash and cash equivalents	19	142,920	199,766
Total Current Assets		861,347	761,798
TOTAL ASSETS		2,995,883	2,582,401
SHAREHOLDERS EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital	21	183,573	183,573
Share premium	21	842,969	851,060
Cumulative translation adjustment		(438,137)	(514,609)
Equity-settled compensation		17,012	16,073
Cash flow hedge		(56,205)	(60,932)
Other reserves		109,587	106,172
Treasury shares		(18,960)	(16,909)
Revaluation surplus		277,807	289,982
Reserve from the sale of non-controlling interests in subsidiaries		41,574	41,574
Retained earnings		175,633	115,735
Equity attributable to equity holders of the parent		1,134,853	1,011,719
Non-controlling interest		38,350	36,111
TOTAL SHAREHOLDERS EQUITY		1,173,203	1,047,830
LIABILITIES
Non-Current Liabilities
Trade and other payables	23	354	284
Borrowings	24	759,471	705,487
Lease liabilities	25	306,335	201,718
Deferred income tax liabilities	10	310,273	265,848
Payroll and social security liabilities	26	1,361	1,243
Provisions for other liabilities	27	3,096	2,565
Total Non-Current Liabilities		1,380,890	1,177,145
Current Liabilities
Trade and other payables	23	173,471	168,746
Current income tax liabilities		2,263	1,625
Payroll and social security liabilities	26	24,805	25,051
Borrowings	24	171,407	112,164
Lease liabilities	25	57,753	45,136
Derivative financial instruments	16	4,060	1,283
Provisions for other liabilities	27	8,031	3,421
Total Current Liabilities		441,790	357,426
TOTAL LIABILITIES		1,822,680	1,534,571
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES		2,995,883	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 three-month periods ended March 31, 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	—	—	—	—	—	—	—	—	—	18,214	18,214	1,121	19,335
Other comprehensive income:
- Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	—	—	(13,957)	—	—	—	—	7,889	—	—	(6,068)	1,262	(4,806)
Cash flow hedge (*)	—	—	—	—	(63)	—	—	—	—	—	(63)	—	(63)
Revaluation of surplus (**)	—	—	—	—	—	—	—	(9,730)	—	—	(9,730)	(1,240)	(10,970)
Other comprehensive income for the period	—	—	(13,957)	—	(63)	—	—	(1,841)	—	—	(15,861)	22	(15,839)
Total comprehensive income for the period	—	—	(13,957)	—	(63)	—	—	(1,841)	—	18,214	2,353	1,143	3,496
Reserves for the benefit of government grants (1)	—	—	—	—	—	4,424	—	—	—	(4,424)	—	—	—
- Restricted shares and restricted units (Note 21):
Value of employee services	—	—	—	986	—	—	—	—	—	—	986	—	986
-Purchase of own shares (Note 21)	—	(7,685)	—	—	—	—	(1,791)	—	—	—	(9,476)	—	(9,476)
Balance at March 31, 2021 (unaudited)	183,573	895,130	(569,001)	15,781	(90,752)	87,830	(9,421)	341,729	41,574	22,461	918,904	39,826	958,730

(*) Net of 684 of Income tax.

(**) Net of (2,804) 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 three-month periods ended March 31, 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	—	—	—	—	—		—	—	—	63,257	63,257	1,916	65,173
Other comprehensive loss:
- Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations	—	—	76,472	—	—	—	—	25,170	—	—	101,642	2,682	104,324
Cash flow hedge (*)	—	—	—	—	4,727	—	—	—	—	—	4,727	—	4,727
- Items that will not be reclassified to profit or loss:
Revaluation surplus (**)	—	—	—	—	—	—	—	(37,345)	—	—	(37,345)	(2,359)	(39,704)
Other comprehensive income for the period	—	—	76,472	—	4,727	—	—	(12,175)	—	—	69,024	323	69,347
Total comprehensive income for the period	—	—	76,472	—	4,727	—	—	(12,175)	—	63,257	132,281	2,239	134,520
- Reserves for the benefit of government grants (1)	—	—	—	—	—	3,359	—	—	—	(3,359)	—	—	—
- Employee share options (Note 21):
Exercised	—	394	—	(125)	—	—	71	—	—	—	340	—	340
- Restricted shares and restricted units (Note 22):
Value of employee services	—	—	—	1,152	—	—	—	—	—	—	1,152	—	1,152
Vested	—	69	—	(88)	—	19	—	—	—	—	—	—	—
Forfeited	—	—	—	—	—	39	(39)	—	—	—	—	—	—
Granted	—	—	—	—	—	(2)	2	—	—	—	—	—	—
- Purchase of own shares (Note 21)	—	(8,554)	—	—	—	—	(2,085)	—	—	—	(10,639)	—	(10,639)
Balance at March 31, 2022 (unaudited)	183,573	842,969	(438,137)	17,012	(56,205)	109,587	(18,960)	277,807	41,574	175,633	1,134,853	38,350	1,173,203

(*) Net of 2,446 of Income tax.

(**) Net of 21,784 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 three-month periods ended March 31, 2022 and 2021

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

	Note	March 31, 2022	March 31, 2021
		(unaudited)
Cash flows from operating activities:
Profit for the period		65,173	19,335
Adjustments for:
Income tax expense	10	29,544	8,938
Depreciation of property, plant and equipment	11	20,683	26,906
Amortization of intangible assets	14	461	355
Depreciation of right of use assets	12	7,083	10,564
Loss / (gain) from disposal of other property items	8	63	(234)
Net loss from the Fair value adjustment of Investment properties	13	2,378	817
Equity settled share-based compensation granted	7	1,614	1,386
Loss from derivative financial instruments	8, 9	10,721	9,625
Interest, finance cost related to lease liabilities and other financial expense, net	9	21,196	17,703
Initial recognition and changes in fair value of non harvested biological assets (unrealized)		(74,682)	(44,873)
Changes in net realizable value of agricultural produce after harvest (unrealized)		10,654	2,403
Provision and allowances		439	495
Net (gain) / loss of inflation effects on the monetary items	9	(7,266)	2,945
Foreign exchange (gains)/losses, net	9	(54,184)	20,840
Cash flow hedge – transfer from equity	9	8,594	10,560
Subtotal		42,471	87,765
Changes in operating assets and liabilities:
Increase in trade and other receivables		(58,855)	(49,950)
Increase in inventories		(26,316)	(48,958)
Decrease in biological assets		48,659	38,030
(Increase) / decrease in other assets		(477)	4
(Increase) in derivative financial instruments		(3,211)	(20,456)
Decrease in trade and other payables		(22,378)	(28,316)
Decrease in payroll and social security liabilities		(2,195)	(850)
(Decrease) in provisions for other liabilities		(244)	(34)
Net cash generated from operating activities before taxes paid		(22,546)	(22,765)
Income tax paid		(202)	(118)
Net cash generated from operating activities	(a)	(22,748)	(22,883)

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 three-month periods ended March 31, 2022 and 2021 (continued)

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

	Note	March 31, 2022	March 31, 2021
		(unaudited)
Cash flows from investing activities:
Purchases of property, plant and equipment	11	(74,353)	(57,022)
Purchases of cattle and non current biological assets		(3,974)	(2,284)
Purchases of intangible assets	14	(569)	(598)
Interest received and others		498	601
Proceeds from sale of property, plant and equipment		350	708
Net cash used in investing activities	(b)	(78,048)	(58,595)
Cash flows from financing activities:
Proceeds from long-term borrowings		21,324	—
Payments of long-term borrowings		(3,090)	(2,408)
Proceeds from short-term borrowings		68,508	78,920
Payment of short-term borrowings		(3,773)	(78,830)
Proceeds of derivatives financial instruments		—	288
Lease payments		(17,171)	(11,663)
Interest paid	(c)	(13,557)	(17,181)
Purchase of own shares		(10,639)	(9,475)
Dividends paid to non-controlling interest		—	(12)
Net cash used in financing activities	(d)	41,602	(40,361)
Net decrease in cash and cash equivalents		(59,194)	(121,839)
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)	2,348	(5,859)
Cash and cash equivalents at end of period	19	142,920	208,584

(a) Includes (4,299) and (11,805) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for March 31, 2022 and 2021, respectively.

(b) Includes (418) and (315) of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for March 31, 2022 and 2021, respectively.

(c) Includes (16) and 124 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for March 31, 2022 and 2021, respectively.

(d) Includes 4,602 and 12,051 of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for March 31, 2022 and 2021, respectively.

(e) Includes 115 and 69of the combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries for March 31, 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 May 10, 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 three month period ended March 31, 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 March 31, 2022. All amounts are shown in US dollars.

	March 31, 2022
	(unaudited)
	Functional currency
Net monetary position (Liability)/ Asset	Argentine Peso	Brazilian Reais	Uruguayan Peso	US Dollar	Total
Argentine Peso	(66,608)	—	—	—	(66,608)
Brazilian Reais	—	(558,609)	—	—	(558,609)
US Dollar	(285,759)	(325,183)	26,160	43,664	(541,118)
Uruguayan Peso	—	—	(96)	—	(96)
Total	(352,367)	(883,792)	26,064	43,664	(1,166,431)

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 March 31, 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).

	March 31, 2022
	(unaudited)
	Functional currency
Net monetary position	Argentine Peso	Brazilian Reais	Uruguayan Peso	US Dollar	Total
US Dollar	(28,576)	(32,518)	2,616	4,389	(54,089)
(Decrease) or increase in Profit before income tax	(28,576)	(32,518)	2,616	4,389	(54,089)

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 March 31, 2022, a loss before income tax of US$ 1,472 was recognized in other comprehensive income and a gain of US$ 8,645 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 March 31, 2022 (all amounts are shown in US dollars):

	March 31, 2022
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine Peso	Brazilian Reais	Uruguayan Peso	US Dollar	Total
Fixed rate:
Argentine Peso	40,668	—	—	—	40,668
Brazilian Reais	—	8,726	—	—	8,726
US Dollar	119,043	369,690	19,324	143,656	651,713
Subtotal Fixed-rate borrowings	159,711	378,416	19,324	143,656	701,107
Variable rate:
Brazilian Reais	—	208,334	—	—	208,334
US Dollar	20,346	1,091	—	—	21,437
Subtotal Variable-rate borrowings	20,346	209,425	—	—	229,771
Total borrowings as per analysis	180,057	587,841	19,324	143,656	930,878

At March 31, 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:

	March 31, 2022
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine Peso	Brazilian Reais	Total
Variable rate:
Brazilian Reais	—	(2,083)	(2,083)
US Dollar	(203)	(11)	(214)
Decrease in profit before income tax	(203)	(2,094)	(2,297)

•Credit risk

As of March 31, 2022, four banks accounted for more than 81% of the total cash deposited (Credit Suisse, J.P. Morgan, FCI Option Securities and Banco Itaú).

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)

•Derivative financial instruments

The following table shows the outstanding positions for each type of derivative contract as of March 31, 2022:

§Futures / Options

	March 31, 2022
Type of	Quantities (thousands) (**)	Notional	Market	Profit / (Loss) (*)
derivative contract		amount	Value Asset/ (Liability)
			(unaudited)	(unaudited)
Futures:
Sale
Corn	(16)	(3,329)	221	221
Soybean	38	13,241	(1,703)	(1,264)
Wheat	7	1,950	(74)	(74)
Sugar	116	47,487	(1,969)	(2,821)
Options:
Buy put
Sugar	10	193	(314)	(319)
Total	155	59,542	(3,839)	(4,257)

(*)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

As of March 31, 2022, the Group has foreign currency agreements.

During the period ended on March 31, 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$ 0.9 millions. The currency forward contracts maturity date is August 2022. The outstanding contracts resulted in the recognition of a gain amounting to US$ 0.03 million in 2022.

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

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 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 (continued)

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.

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”.

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)

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 three-month period ended March 31, 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.

	March 31, 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	39,431	305	39,736	33,669	171	33,840	54,805	473	55,278
Cost of goods and services rendered	(33,854)	(258)	(34,112)	(29,634)	(225)	(29,859)	(48,434)	(341)	(48,775)
Initial recognition and changes in fair value of biological assets and agricultural produce	29,362	154	29,516	10,303	55	10,358	6,253	(18)	6,235
Gain from changes in net realizable value of agricultural produce after harvest	(195)	69	(126)	—	—	—	—	—	—
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	34,744	270	35,014	14,338	1	14,339	12,624	114	12,738
General and administrative expenses	(3,413)	(58)	(3,471)	(2,488)	(39)	(2,527)	(1,623)	(27)	(1,650)
Selling expenses	(6,014)	(64)	(6,078)	(5,582)	(45)	(5,627)	(6,166)	(118)	(6,284)
Other operating income, net	(8,637)	(258)	(8,895)	(152)	(3)	(155)	(117)	4	(113)
Profit from Operations Before Financing and Taxation	16,680	(110)	16,570	6,116	(86)	6,030	4,718	(27)	4,691
Depreciation of Property, plant and equipment and amortization of Intangible assets	(1,810)	(32)	(1,842)	(2,134)	(38)	(2,172)	(2,281)	(40)	(2,321)

	March 31, 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	442	12	454	—	—	—	205,403	961	206,364
Cost of goods and services rendered	(252)	(9)	(261)	—	—	—	(169,471)	(833)	(170,304)
Initial recognition and changes in fair value of biological assets and agricultural produce	514	(8)	506	—	—	—	83,870	183	84,053
Gain from changes in net realizable value of agricultural produce after harvest	—	—	—	—	—	—	(894)	69	(825)
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	704	(5)	699	—	—	—	118,908	380	119,288
General and administrative expenses	(55)	(1)	(56)	(6,681)	(53)	(6,734)	(18,557)	(178)	(18,735)
Selling expenses	(23)	(1)	(24)	(89)	—	(89)	(24,158)	(228)	(24,386)
Other operating income, net	(2,360)	(26)	(2,386)	201	6	207	(13,099)	(277)	(13,376)
Profit from Operations Before Financing and Taxation	(1,734)	(33)	(1,767)	(6,569)	(47)	(6,616)	63,094	(303)	62,791
Depreciation of Property, plant and equipment and amortization of Intangible assets	(56)	(1)	(57)	(189)	(9)	(198)	(21,024)	(120)	(21,144)
Net loss from Fair value adjustment of Investment property	(2,353)	(25)	(2,378)	—	—	—	(2,353)	(25)	(2,378)

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)

	March 31, 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	31,578	67	31,645	27,422	28	27,450	36,164	50	36,214
Cost of goods and services rendered	(24,588)	(55)	(24,643)	(22,121)	(20)	(22,141)	(30,767)	37	(30,730)
Initial recognition and changes in fair value of biological assets and agricultural produce	17,842	238	18,080	26,649	75	26,724	2,680	2	2,682
Gain from changes in net realizable value of agricultural produce after harvest	(2,481)	(11)	(2,492)	—	—	—	—	—	—
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	22,351	239	22,590	31,950	83	32,033	8,077	89	8,166
General and administrative expenses	(1,892)	(6)	(1,898)	(1,969)	(8)	(1,977)	(1,287)	(5)	(1,292)
Selling expenses	(3,395)	(5)	(3,400)	(3,610)	5	(3,605)	(3,718)	(87)	(3,805)
Other operating income, net	(595)	(2)	(597)	162	2	164	(88)	—	(88)
Profit from Operations Before Financing and Taxation	16,469	226	16,695	26,533	82	26,615	2,984	(3)	2,981
Depreciation of Property, plant and equipment and amortization of Intangible assets	(1,444)	(8)	(1,452)	(1,804)	(10)	(1,814)	(1,745)	(8)	(1,753)

	March 31, 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	401	1	402	—	—	—	—	—	—	174,646	146	174,792
Cost of goods and services rendered	(261)	(1)	(262)	—	—	—	—	—	—	(125,143)	(39)	(125,182)
Initial recognition and changes in fair value of biological assets and agricultural produce	43	—	43	—	—	—	—	—	—	74,963	315	75,278
Gain from changes in net realizable value of agricultural produce after harvest	—	—	—	—	—	—	—	—	—	(3,660)	(11)	(3,671)
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	183	—	183	—	—	—	—	—	—	120,806	411	121,217
General and administrative expenses	(78)	—	(78)	—	—	—	(5,169)	(30)	(5,199)	(14,708)	(49)	(14,757)
Selling expenses	(31)	—	(31)	—	—	—	(51)	—	(51)	(19,229)	(87)	(19,316)
Other operating income, net	(932)	6	(926)	5,126	—	5,126	(63)	(2)	(65)	(5,788)	4	(5,784)
Profit from Operations Before Financing and Taxation	(858)	6	(852)	5,126	—	5,126	(5,283)	(32)	(5,315)	81,081	279	81,360
Depreciation of Property, plant and equipment and amortization of Intangible assets	(80)	—	(80)	—	—	—	(118)	—	(118)	(27,235)	(26)	(27,261)
Net gain from Fair value adjustment of Investment property	(825)	8	(817)	—	—	—	—	—	—	(825)	8	(817)

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 three-month period ended March 31, 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	39,431	33,669	54,805	442	128,347	77,056	—	—	205,403
Cost of goods sold and services rendered	(33,854)	(29,634)	(48,434)	(252)	(112,174)	(57,297)	—	—	(169,471)
Initial recognition and changes in fair value of biological assets and agricultural produce	29,362	10,303	6,253	514	46,432	37,438	—	—	83,870
Changes in net realizable value of agricultural produce after harvest	(195)	—	—	—	(195)	(699)	—	—	(894)
Margin on manufacturing and agricultural activities before operating expenses	34,744	14,338	12,624	704	62,410	56,498	—	—	118,908
General and administrative expenses	(3,413)	(2,488)	(1,623)	(55)	(7,579)	(4,297)	—	(6,681)	(18,557)
Selling expenses	(6,014)	(5,582)	(6,166)	(23)	(17,785)	(6,284)	—	(89)	(24,158)
Other operating income / (loss), net	(8,637)	(152)	(117)	(2,360)	(11,266)	(3,193)	1,159	201	(13,099)
Profit / (loss) from operations before financing and taxation	16,680	6,116	4,718	(1,734)	25,780	42,724	1,159	(6,569)	63,094
Depreciation of Property, plant and equipment and amortization of Intangible assets	(1,810)	(2,134)	(2,281)	(56)	(6,281)	(14,554)	—	(189)	(21,024)
Net loss from Fair value adjustment of Investment property	—	—	—	(2,353)	(2,353)	—	—	—	(2,353)
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)	28,335	9,536	(310)	833	38,394	36,288	—	—	74,682
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)	1,027	767	6,563	(319)	8,038	1,150	—	—	9,188
Changes in net realizable value of agricultural produce after harvest (unrealized)	(10,654)	—	—	—	(10,654)	—	—	—	(10,654)
Changes in net realizable value of agricultural produce after harvest (realized)	10,459	—	—	—	10,459	(699)	—	—	9,760
Farmlands and farmland improvements, net	448,167	147,492	2,249	56,298	654,206	73,369	—	—	727,575
Machinery, equipment, building and facilities, and other fixed assets, net	49,445	29,685	85,283	1,704	166,117	277,013	—	—	443,130
Bearer plants, net	973	—	—	—	973	308,723	—	—	309,696
Work in progress	4,487	37,056	32,424	1,629	75,596	23,595	—	—	99,191
Right of use asset	11,977	3,430	1,172	—	16,579	371,527	—	—	388,106
Investment property	—	—	—	32,132	32,132	—	—	—	32,132
Goodwill	7,597	1,052	5,005	—	13,654	4,609	—	—	18,263
Biological assets	83,979	8,457	22,356	9,828	124,620	124,655	—	—	249,275
Finished goods	48,517	3,889	10,670	—	63,076	55,614	—	—	118,690
Raw materials, Stocks held by third parties and others	43,059	67,017	9,223	1,072	120,371	43,519	—	—	163,890
Total segment assets	698,201	298,078	168,382	102,663	1,267,324	1,282,624	—	—	2,549,948
Borrowings	43,336	44,386	111,959	—	199,681	587,838	—	143,359	930,878
Lease liabilities	15,326	3,631	801	—	19,758	344,312	—	18	364,088
Total segment liabilities	58,662	48,017	112,760	—	219,439	932,150	—	143,377	1,294,966

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 three-month period ended March 31, 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	31,578	27,422	36,164	401	95,565	79,081	—	—	174,646
Cost of goods sold and services rendered	(24,588)	(22,121)	(30,767)	(261)	(77,737)	(47,406)	—	—	(125,143)
Initial recognition and changes in fair value of biological assets and agricultural produce	17,842	26,649	2,680	43	47,214	27,749	—	—	74,963
Changes in net realizable value of agricultural produce after harvest	(2,481)	—	—	—	(2,481)	(1,179)	—	—	(3,660)
Margin on manufacturing and agricultural activities before operating expenses	22,351	31,950	8,077	183	62,561	58,245	—	—	120,806
General and administrative expenses	(1,892)	(1,969)	(1,287)	(78)	(5,226)	(4,313)	—	(5,169)	(14,708)
Selling expenses	(3,396)	(3,610)	(3,718)	(31)	(10,755)	(8,423)	—	(51)	(19,229)
Other operating income / (loss), net	(595)	162	(88)	(932)	(1,453)	(9,398)	5,126	(63)	(5,788)
Profit / (loss) from operations before financing and taxation	16,468	26,533	2,984	(858)	45,127	36,111	5,126	(5,283)	81,081
Depreciation of Property, plant and equipment and amortization of Intangible assets	(1,445)	(1,804)	(1,745)	(80)	(5,074)	(22,043)	—	(118)	(27,235)
Net gain from Fair value adjustment of Investment property	—	—	—	(825)	(825)	—	—	—	(825)
Reverse of revaluation surplus derived from the disposals of assets before taxes	—	—	—	—	—	—	—	—	—
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)	13,448	22,584	(1,715)	85	34,402	10,471	—	—	44,873
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)	4,394	4,065	4,395	(42)	12,812	17,278	—	—	30,090
Changes in net realizable value of agricultural produce after harvest (unrealized)	(2,403)	—	—	—	(2,403)	—	—	—	(2,403)
Changes in net realizable value of agricultural produce after harvest (realized)	(78)	—	—	—	(78)	(1,179)	—	—	(1,257)
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

	March 31, 2022	March 31, 2021
	(unaudited)
Sales of manufactured products and services rendered:
Ethanol	60,344	47,094
Sugar (*)	7,866	25,335
Energy	2,396	4,596
Peanut	16,014	12,298
Sunflower	2,583	1,367
Rice	31,603	26,115
Fluid milk (UHT)	15,653	9,139
Powder milk	26,038	15,950
Other dairy products	7,559