Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (NASDAQ:CRESY) Q3 2022 Earnings Conference Call May 16, 2022 10:00 AM ET Company Representatives Alejandro Elsztain - Chief Executive Officer MatÃas Gaivironsky - Chief Administrative and Financial Officer Santiago Donato - Investor Relations Conference Call Participants Santiago Donato Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the third quarter of fiscal year 2022 result ...

Financial Data and Key Metrics Changes - The company reported a significant gain of ARS 38 billion for the semester, compared to a loss of ARS 4.9 billion in the previous year [40] - Adjusted EBITDA for the agribusiness segment reached ARS 12.1 billion, up from ARS 2.4 billion last year, indicating a strong improvement across all lines [43] - The net financial results generated a gain of ARS 8.3 billion, compared to a loss of ARS 1.4 billion in the previous year [49] Business Line Data and Key Metrics Changes - The agribusiness segment achieved record numbers in EBITDA, driven by improved margins from grains, sugarcane, and farm sales [6][43] - The company sold two farms in Brazil, generating significant gains, reflecting the evolution of farm prices in the region [43][21] - FyO, the agricultural service company, became the largest broker in Argentina, closing the last campaign at 6.4 million tons and forecasting 7 million tons for the next campaign [22][24] Market Data and Key Metrics Changes - Real sales in shopping malls increased by 7.6% compared to pre-pandemic levels, marking the first real sales increase in three years [35] - The office segment experienced mixed results, with a decrease in occupancy due to the pandemic and a shift to higher-quality buildings [37] - The hotel segment continued to be affected by pandemic-related restrictions, particularly in Buenos Aires [39] Company Strategy and Development Direction - The company is focused on expanding its agribusiness operations across four countries, with plans to increase sugarcane plantations in Bolivia [13] - The approval of the Costa Urbana project is expected to drive growth for the next decade, allowing for the development of 900,000 square meters of various uses [32] - The merger between IRSA and IRSA Commercial Properties is anticipated to enhance operational efficiency and market presence [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the agricultural environment, expecting good margins and increased activity in both Argentina and Brazil [55] - The company is preparing for a positive campaign, with expectations of good yields and margins from upcoming harvests [54] - Management highlighted the importance of the Costa Urbana project and the gradual development process expected over the next ten years [61] Other Important Information - The company reduced its debt to $400 million and is working on extending the tenure of part of its debt [50] - The company issued its first bond for FyO, raising $12.3 million at a 0% interest rate, indicating strong market confidence [26] Q&A Session Summary Question: Will the company continue selling farms in Argentina, Brazil, or the rest of the region? - Management indicated that there is increasing interest in farm purchases in Argentina and confirmed strong liquidity in Brazil, expecting active real estate movement in the second semester [52][53] Question: How is the company affected by Central Bank capital restrictions on issued bonds? - Management clarified that there are no complications for bond payments due in 2023, as they do not need to refinance any debt this year [56][57] Question: What is the timing for the Costa Urbana development project? - Management noted that the project is significant and will take more than 10 years to fully develop, with no major capital expenditures expected in the next two years [60][61]

Cresud SACIF y A (NASDAQ:CRESY) Q1 2022 Earnings Conference Call November 15, 2021 9:00 AM ET Company Participants Santiago Donato - IR Officer Alejandro Elsztain - Second Vice Chairman, CEO, & GM Carlos Blousson - CEO, International Operation and GM, Argentina & Bolivia Operations Matias Gaivironsky - Chief Financial & Administrative Officer Conference Call Participants Santiago Donato Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the first quarter ...

[Part I](index=5&type=section&id=Part%20I) [Key Information](index=5&type=section&id=Item%203.%20Key%20Information) The company's operations are exposed to significant risks from Argentine and Brazilian macroeconomic conditions, including inflation, currency controls, and commodity price volatility [Local Exchange Market and Exchange Rates](index=5&type=section&id=A.1.%20Local%20Exchange%20Market%20and%20Exchange%20Rates) - The Argentine government has implemented significant exchange control measures, restricting access to the foreign exchange market (MULC) and requiring prior Central Bank approval for certain transactions[24](index=24&type=chunk) ARS to USD Exchange Rates (Source: Banco de la Nación Argentina) | Period | Maximum | Minimum | Average | At closing | | :--- | :--- | :--- | :--- | :--- | | **Fiscal year ended:** | | | | | | June 30, 2019 | 45.8700 | 27.1600 | 37.8373 | 42.3630 | | June 30, 2020 | 70.3600 | 41.5000 | 59.5343 | 70.3600 | | June 30, 2021 | 95.6200 | 70.4200 | 83.8081 | 95.6200 | | **Month ended:** | | | | | | October, 2021 (through Oct 26) | 99.4600 | 98.6900 | 99.0675 | 99.4600 | [Risk Factors](index=5&type=section&id=D.%20RISK%20FACTORS) - The company's business is significantly impacted by the **COVID-19 pandemic** and government responses, which have included closures of non-essential businesses like shopping malls, leading to lower rental revenue[43](index=43&type=chunk) - Operations are heavily dependent on the volatile macroeconomic and political conditions in Argentina, characterized by periods of **negative growth, high inflation, and currency depreciation**[45](index=45&type=chunk) - High inflation in Argentina remains a major challenge, with the **CPI increasing 53.8% in 2019 and 36.1% in 2020**, which could increase operating costs and negatively affect business results[46](index=46&type=chunk)[47](index=47&type=chunk) - Argentina's limited access to international capital markets and ongoing debt restructuring negotiations with the IMF may impair the company's ability to finance its operations[49](index=49&type=chunk)[50](index=50&type=chunk) - Significant fluctuations in the ARS/USD exchange rate pose a major risk, as the **Peso depreciated approximately 59% in 2019 and 40% in 2020** against the U.S. dollar[50](index=50&type=chunk) - The agricultural business is exposed to commodity price fluctuations, unpredictable weather, and potential new export taxes, which could adversely affect financial results[26](index=26&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - IRSA's real estate business faces risks from disease outbreaks like COVID-19 reducing shopping mall traffic, loss of tenants, and increased competition[26](index=26&type=chunk)[120](index=120&type=chunk) [Information on the Company](index=51&type=section&id=Item%204.%20Information%20on%20the%20Company) The company operates as a leading Latin American agricultural firm and holds a controlling interest in IRSA, a major Argentine real estate company [History and Development of the Company](index=51&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) - Cresud was incorporated in 1936 and as of June 30, 2021, holds a **62.1% equity interest in its principal subsidiary, IRSA**[196](index=196&type=chunk) - The company expanded internationally by co-founding Brasilagro in 2005, holding a **39.4% stake** as of June 30, 2021[196](index=196&type=chunk) - In fiscal year 2021, significant transactions included the sale of Carnes Pampeanas S.A. for **USD 10 million**, generating a result of ARS 732 million, and the sale of a portion of the "San Pedro" farm for **USD 8.6 million**[198](index=198&type=chunk) - The urban properties business, through IRSA CP, completed major sales in FY2021, including the entire "Bouchard 710" building for **ARS 8,791 million**[201](index=201&type=chunk) - In September 2020, the company **lost control of its Israeli subsidiary IDB Development Corporation Ltd. (IDBD)** following a court-ordered liquidation, leading to its deconsolidation[203](index=203&type=chunk)[204](index=204&type=chunk) - Subsequent to the fiscal year-end, IRSA's Board approved initiating a merger process where **IRSA will absorb its subsidiary IRSA CP** at a proposed exchange ratio of 1.40 IRSA shares for each IRSA CP share[215](index=215&type=chunk) Capital Expenditures (in millions of ARS) | Fiscal Year Ended June 30 | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Total Capital Expenditures** | **4,487** | **18,567** | **31,005** | | Urban Properties and Investments | 2,692 | 16,718 | 28,170 | | Agricultural Business | 1,795 | 1,849 | 2,835 | [Business Overview](index=61&type=section&id=B.%20BUSINESS%20OVERVIEW) - Cresud operates through two primary business segments: **Agricultural Business** and **Urban Properties and Investments** (via its 62.1% stake in IRSA)[219](index=219&type=chunk)[221](index=221&type=chunk) - The Agricultural business owned **26 farms totaling 625,629 hectares** across Argentina, Brazil, Bolivia, and Paraguay as of June 30, 2021[222](index=222&type=chunk)[226](index=226&type=chunk) - The Urban Properties and Investments business, operated through IRSA, includes segments for Shopping Malls, Offices, Sales and Developments, Hotels, and International investments[224](index=224&type=chunk) - IRSA's office portfolio as of June 30, 2021, comprised **113,291 sqm of GLA** with an overall occupancy rate of **74.7%**[332](index=332&type=chunk) Consolidated Financial Highlights (in millions of ARS) | Metric | FY 2021 | FY 2020 | | :--- | :--- | :--- | | **Revenues** | 42,411 | 51,068 | | **Gain from Operation** | 9,924 | 66,743 | | **Total Assets** | 339,172 | 1,031,784 | | **Shareholders' Equity** | 105,893 | 183,475 | Agricultural Land Use (Hectares) - Fiscal Year 2021 | Activity | Hectares | | :--- | :--- | | Crops | 224,184 | | Cattle | 80,835 | | Sheep | 85,000 | | Land Reserves | 466,421 | | Own farmlands leased to third parties | 25,908 | | **Total** | **882,349** | IRSA Shopping Mall Portfolio Highlights (as of June 30, 2021) | Metric | Value | | :--- | :--- | | Number of Malls | 15 | | Total GLA (sqm) | 334,826 | | Total Tenant Sales (FY2021) | ARS 75,795 million | | Average Occupancy Rate | 89.9% | [Organizational Structure](index=111&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) Key Subsidiaries and Ownership (as of June 30, 2021) | Subsidiary | Business | Effective Ownership | | :--- | :--- | :--- | | **IRSA Inversiones y Representaciones S.A.** | Real Estate Development & Management | 62.22% | | **Brasilagro Companhia Brasileira de Propriedades Agrícolas** | Agriculture (Brazil) | 39.44% | | **Futuros y Opciones.Com S.A.** | Agricultural Information & Brokerage | 50.10% | | **IRSA Propiedades Comerciales S.A.** | Shopping Malls, Offices | 3.36% (Direct) | [Property, Plants and Equipment](index=112&type=section&id=D.%20PROPERTY,%20PLANTS%20AND%20EQUIPMENT) - As of June 30, 2021, the company and its subsidiaries owned **26 farmlands** with a total surface area of **636,043 hectares** and a net book value of **ARS 29,977 million**[376](index=376&type=chunk)[377](index=377&type=chunk) - The company's subsidiary, Brasilagro, owned **12 farmlands** with a total area of **223,551 hectares** as of June 30, 2021, with a net book value of **ARS 22,715 million**[378](index=378&type=chunk) - The urban property portfolio, held through IRSA, includes a diverse range of assets such as office buildings, shopping malls, hotels, and significant land reserves for future development[380](index=380&type=chunk) [Operating and Financial Review and Prospects](index=115&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) Financial performance was impacted by the pandemic and hyperinflation, with decreased revenue and operating profit, while liquidity is managed through asset sales and debt [Consolidated Operating Results](index=115&type=section&id=A.%20CONSOLIDATED%20OPERATING%20RESULTS) - The company's financial statements are prepared in accordance with IFRS and are adjusted for hyperinflation as per **IAS 29**, affecting the comparability of financial data[386](index=386&type=chunk) - The **COVID-19 pandemic severely impacted urban properties** in FY2021, with shopping malls and hotels closed for most of the year, while agricultural activities continued normally[386](index=386&type=chunk)[408](index=408&type=chunk) - **Total revenues decreased by 17.0%** in FY2021 vs. FY2020, driven by a significant drop in the Urban Properties and Investment Business[434](index=434&type=chunk) - **Operating profit decreased by 85.1%** in FY2021, from ARS 66,743 million to ARS 9,924 million, primarily due to a swing from a large gain to a loss on fair value adjustments of investment properties[450](index=450&type=chunk)[469](index=469&type=chunk) - Net financial results improved significantly from a loss of ARS 30,733 million in FY2020 to a **profit of ARS 6,232 million in FY2021**, driven by gains on foreign exchange differences[478](index=478&type=chunk) Selected Consolidated Financial Data (in millions of ARS) | For the fiscal year ended June 30, | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenues** | 42,411 | 51,068 | 47,529 | | **Gross profit** | 22,456 | 22,257 | 23,982 | | **Profit/(loss) from operations** | 9,924 | 66,743 | (41,710) | | **(Loss)/profit for the year** | (24,502) | 30,042 | (61,177) | | **Total comprehensive (loss)/income** | (35,876) | 47,190 | (62,385) | [Liquidity and Capital Resources](index=174&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - The company's primary sources of liquidity are cash from operations, asset sales, and debt issuance; as of June 30, 2021, the company had a **negative working capital of ARS 446 million**[554](index=554&type=chunk)[555](index=555&type=chunk) - As of June 30, 2021, **total borrowings amounted to ARS 118,668 million**, with ARS 43,275 million due within one year[570](index=570&type=chunk) - The company is subject to Argentine Central Bank regulations that **restrict access to the foreign exchange market for debt repayment**, requiring companies to refinance at least 60% of principal maturities[593](index=593&type=chunk)[601](index=601&type=chunk) Consolidated Cash Flow Summary (in millions of ARS) | For the fiscal year ended June 30, | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 8,886 | 53,672 | 38,368 | | Net cash generated from investing activities | 73,657 | 60,547 | 15,849 | | Net cash used in financing activities | (54,165) | (109,082) | (38,654) | | **Net increase in cash and cash equivalents** | **28,378** | **5,137** | **15,563** | [Trend Information](index=191&type=section&id=D.%20TREND%20INFORMATION) - The global economic outlook is a two-track recovery, with **global GDP projected to grow 6.0% in 2021 and 4.9% in 2022**[606](index=606&type=chunk) - In Argentina, the economic context remains challenging, but **shopping mall sales showed a significant recovery in June 2021**, increasing 448.8% compared to June 2020[608](index=608&type=chunk) - The Argentine agricultural sector outlook is influenced by government policies like export taxes, with the **2021/22 corn planting projected at a record 7.1 million hectares**[611](index=611&type=chunk) - The Buenos Aires office market has seen **increased vacancy (15.7% for Class A)** and lower rental values due to the shift to remote work[612](index=612&type=chunk) [Critical Accounting Estimates](index=194&type=section&id=E.%20Critical%20Accounting%20Estimates) - The company makes significant accounting estimates that affect reported financial figures, with key areas of judgment including asset valuations[613](index=613&type=chunk) - **Valuation of investment properties at fair value** relies on external appraisers and is sensitive to assumptions about future revenues and discount rates[614](index=614&type=chunk)[615](index=615&type=chunk) - **Assessment of recoverable amounts for cash-generating units and goodwill** involves estimating future cash flows and appropriate discount rates[614](index=614&type=chunk) - **Valuation of biological assets** depends on assumptions about yields, production costs, sales prices, and discount rates[615](index=615&type=chunk) [Directors, Senior Management and Employees](index=197&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) The company's governance is led by Chairman Eduardo S. Elsztain, with details on board composition, executive compensation, and employee statistics [Directors and Senior Management](index=197&type=section&id=A.%20DIRECTORS%20AND%20SENIOR%20MANAGEMENT) - The Board of Directors is composed of ten regular and seven alternate directors, with key figures including **Eduardo S. Elsztain (Chairman)** and **Alejandro G. Elsztain (CEO)**[622](index=622&type=chunk) - **Significant family relationships exist among board members**, with the Chairman, his wife, two sons, brother, and cousin all holding director or alternate director positions[624](index=624&type=chunk) - The company's day-to-day business is managed by an **Executive Committee** composed of Eduardo S. Elsztain, Saúl Zang, Alejandro Elsztain, and Fernando A. Elsztain[632](index=632&type=chunk) [Compensation](index=203&type=section&id=B.%20COMPENSATION) - The company has a defined contribution capitalization plan for its management team, with a company contribution expense of **ARS 44 million for FY2021**[639](index=639&type=chunk) - A long-term incentive plan based on shares was approved in 2019 for directors, management, and employees, allowing for a capital increase of up to **1% of capital stock**, though it has not been executed[646](index=646&type=chunk) Compensation for Fiscal Year 2021 (in millions of ARS) | Group | Approved Compensation | | :--- | :--- | | Board of Directors | 93.1 | | Supervisory Committee | 2.4 | | Senior Management | 31.0 | [Employees](index=207&type=section&id=D.%20EMPLOYEES) Number of Employees by Year | As of June 30, | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Total Employees** | **2,544** | **3,197** | **3,377** | | Agricultural Business | 964 | 1,397 | 1,360 | | Urban Business (Sales, Malls, Hotels) | 1,281 | 1,508 | 1,716 | [Share Ownership](index=208&type=section&id=E.%20SHARE%20OWNERSHIP) - As of August 31, 2021, Chairman **Eduardo S. Elsztain was the beneficial owner of 36.51%** of the company's shares[654](index=654&type=chunk)[657](index=657&type=chunk) [Major Shareholders and Related Party Transactions](index=209&type=section&id=Item%207.%20Major%20shareholders%20and%20related%20party%20transactions) Chairman Eduardo S. Elsztain holds significant control with 36.51% beneficial ownership, and the company engages in numerous related party transactions [Major Shareholders](index=209&type=section&id=A.%20MAJOR%20SHAREHOLDERS) - As of June 30, 2021, **82.07% of the company's outstanding shares were held in the United States** in the form of Global Depositary Shares (GDSs)[689](index=689&type=chunk) Major Shareholder Ownership (as of August 31, 2021) | Shareholder | Share Percentage | Fully Diluted Percentage | | :--- | :--- | :--- | | Eduardo Sergio Elsztain | 36.51% | 36.84% | | ANSES | 3.95% | 3.96% | | Directors and officers (group) | 3.72% | 4.03% | [Related Party Transactions](index=211&type=section&id=B.%20RELATED%20PARTY%20TRANSACTIONS) - The company engages in numerous transactions with related parties, including leasing office space from its subsidiary IRSA CP and leasing mall stores to affiliates[658](index=658&type=chunk)[659](index=659&type=chunk) - A **Master Agreement for the Exchange of Corporate Services** exists between Cresud, IRSA, and IRSA CP to optimize operational efficiencies[660](index=660&type=chunk) - Cresud has a consulting agreement with **Consultores Asset Management**, a firm controlled by the Chairman and Vice-Chairman, with a fee equal to **10% of Cresud's after-tax net income**[670](index=670&type=chunk) - In December 2020, Cresud agreed to sell its Bolivian subsidiaries to its controlled company **Brasilagro for approximately USD 30 million**[667](index=667&type=chunk) [Financial Information](index=215&type=section&id=Item%208.%20Financial%20Information) The company faces several significant legal proceedings and adheres to a dividend policy governed by Argentine law and shareholder approval [Audited Consolidated Statements and Other Financial Information](index=215&type=section&id=A.%20AUDITED%20CONSOLIDATED%20STATEMENTS%20AND%20OTHER%20FINANCIAL%20INFORMATION) - A notable legal case involves a lawsuit from Exagrind S.A. for damages from a fire, where a court has ordered Cresud to pay damages of an undetermined amount[674](index=674&type=chunk)[675](index=675&type=chunk) - Cresud is in a dispute with the Province of Salta over fees, leading to seizures of the company's bank accounts totaling over **ARS 126 million**, with an estimated contingency of **ARS 221 million**[676](index=676&type=chunk) - IRSA's subsidiary, Puerto Retiro S.A., is involved in litigation where a court ordered the confiscation of its main property, leading to a **100% impairment** on the property's book value[677](index=677&type=chunk)[678](index=678&type=chunk)[679](index=679&type=chunk) - The company's dividend policy allows payments from net realized profits, subject to shareholder approval and allocation to a **legal reserve of 5% of net profits**[687](index=687&type=chunk)[711](index=711&type=chunk) [The Offer and Listing](index=222&type=section&id=Item%209.%20The%20Offer%20and%20Listing) The company's securities trade on ByMA (CRES) and NASDAQ (CRESY), with a recent public offering raising USD 42.5 million - In February-March 2021, the company conducted a public offering of 90 million shares and 90 million warrants, **raising USD 42.5 million**[688](index=688&type=chunk) - The company's common shares are listed on the **Bolsas y Mercados Argentinos (ByMA)** under the symbol "CRES", and its ADRs are listed on the **NASDAQ Global Market** under "CRESY"[689](index=689&type=chunk)[690](index=690&type=chunk) - The Argentine securities market is regulated by the Comisión Nacional de Valores (CNV) and is noted to have **substantially more volatility** than markets in the United States[691](index=691&type=chunk)[699](index=699&type=chunk) [Additional Information](index=226&type=section&id=Item%2010.%20Additional%20Information) Corporate governance is defined by company bylaws and Argentine law, covering shareholder rights, capital increases, and public takeover bid regulations - The company's purpose includes commercial, real estate, financial, and agricultural activities, with shareholder liability limited to their equity interest[702](index=702&type=chunk)[703](index=703&type=chunk) - In a capital increase, existing shareholders have **preemptive rights** to subscribe to new shares in proportion to their holdings[707](index=707&type=chunk) - Argentine law requires a **mandatory public acquisition offer (takeover bid)** when an individual or group acquires a controlling stake of 50% or more of voting rights[718](index=718&type=chunk) - A **voluntary withdrawal from the public offering regime** requires the company to launch a public offer to acquire all its outstanding shares[720](index=720&type=chunk)

1 CRESUD IQ 2021 Conference Call November 20, 2020 Hosted by: • Alejandro Elsztain, CEO • Carlos Blousson, General Manager of Argentina & Bolivia • Matias Gaivironsky, CFO MAIN EVENTS FOR IQ 2021 | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------|------------------------------------------------|------------|------------------------------------------------|------------|----------|-------|---------------------------------------------------------------------------------------------------- ...

Cresud SACIF y A (NASDAQ:CRESY) Q1 2021 Earnings Conference Call November 20, 2020 2:00 PM ET Company Participants Santiago Donato - Investor Relations Alejandro Elsztain - CEO Carlos Blousson - General Manager of Argentina & Bolivia Matias Gaivironsky - CFO Santiago Donato Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the First Quarter of Fiscal Year 2021 Results Conference Call. First of all, I would like to remind you that both audio and a slide ...

Part I [Key Information](index=16&type=section&id=Item%203.%20Key%20Information) This section presents Cresud's selected financial data, highlights exchange rate volatility, and details significant risk factors including macroeconomic instability and the insolvency of its Israeli subsidiary [Selected Consolidated Financial Data](index=16&type=section&id=A.%20SELECTED%20CONSOLIDATED%20FINANCIAL%20DATA) Cresud's financial data for fiscal years 2017-2020, restated for hyperinflation under IAS 29, shows a significant turnaround to a net profit of ARS 20,003 million in FY2020 Consolidated Statement of Income Highlights (in millions of ARS) | Fiscal Year Ended June 30, | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenues** | 121,256 | 110,741 | 93,266 | | **Profit / (loss) from operations** | 44,073 | (24,489) | 31,857 | | **Profit / (loss) for the fiscal year** | 20,003 | (40,729) | 27,420 | | **Total comprehensive income / (loss)** | 31,420 | (41,533) | 44,112 | Consolidated Statement of Financial Position Highlights (in millions of ARS) | As of June 30, | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Total Assets** | 686,940 | 726,034 | 797,044 | | **Total Liabilities** | 564,787 | 598,833 | 620,590 | | **Total Shareholders' Equity** | 122,153 | 127,201 | 176,454 | Consolidated Statement of Cash Flows Highlights (in millions of ARS) | Fiscal Year Ended June 30, | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net cash generated from operating activities** | 35,734 | 25,546 | 24,150 | | **Net cash generated from / (used in) investing activities** | 40,311 | 10,552 | (31,553) | | **Net cash used in financing activities** | (72,624) | (25,735) | (4,009) | | **Cash and cash equivalents at end of year** | 100,926 | 89,304 | 85,938 | - Financial statements for periods ending on or after July 1, 2018, have been restated pursuant to IAS 29 to reflect the effects of hyperinflation in Argentina[50](index=50&type=chunk)[71](index=71&type=chunk) [Local Exchange Market and Exchange Rates](index=20&type=section&id=A.1.%20Local%20exchange%20market%20and%20exchange%20rates) The Argentine government implemented significant exchange controls, leading to substantial depreciation of the Argentine Peso against the U.S. Dollar, while the New Israeli Shekel remained more stable - As of September 1, 2019, the Argentine government and Central Bank implemented new exchange controls and restrictions, limiting access to the foreign exchange market (MULC) for individuals and legal entities[55](index=55&type=chunk) ARS to USD Exchange Rates (Source: Banco de la Nación Argentina) | Period Ended | Maximum | Minimum | Average | At closing | | :--- | :--- | :--- | :--- | :--- | | June 30, 2019 | 45.8700 | 27.1600 | 37.8373 | 42.3630 | | June 30, 2020 | 70.3600 | 41.5000 | 59.5343 | 70.3600 | NIS to USD Exchange Rates (Source: Bloomberg) | Period Ended | Maximum | Minimum | Average | At closing | | :--- | :--- | :--- | :--- | :--- | | June 30, 2019 | 3.7767 | 3.5597 | 3.6443 | 3.5700 | | June 30, 2020 | 3.8224 | 3.4166 | 3.5072 | 3.4643 | [Risk Factors](index=21&type=section&id=D.%20RISK%20FACTORS) The company faces significant risks from macroeconomic volatility, high inflation, currency controls, and political instability in its operating markets, compounded by the COVID-19 pandemic and the insolvency of its Israeli subsidiary - The ongoing COVID-19 pandemic and associated government measures, such as mandatory lockdowns and the shutdown of non-essential businesses like shopping malls, have adversely affected the company's business and results of operations, particularly in Argentina[60](index=60&type=chunk)[62](index=62&type=chunk) - Argentina's high inflation rates (**53.8% in 2019**) and significant currency depreciation (Peso depreciated **59% against the USD in 2019**) pose substantial risks to the company's financial condition and operating results[68](index=68&type=chunk)[77](index=77&type=chunk) - On September 25, 2020, the company's Israeli subsidiary, IDB Development Corporation Ltd. (IDBD), was declared insolvent and is undergoing liquidation proceedings, posing a significant risk to the value of this investment and potentially affecting the company's reputation[220](index=220&type=chunk)[39](index=39&type=chunk) - The Argentine Central Bank's Communication "A" 7,106 requires companies with foreign currency debt maturities between October 2020 and March 2021 to refinance at least **60% of the principal**, restricting access to foreign currency and impacting the company's ability to service its debt[86](index=86&type=chunk) [Information on the Company](index=81&type=section&id=Item%204.%20Information%20on%20the%20Company) This section details Cresud's history, business structure, and extensive property portfolio, encompassing agricultural assets across Latin America and urban real estate primarily in Argentina and Israel [History and Development of the Company](index=81&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Cresud, incorporated in 1936, expanded from agriculture into urban real estate via IRSA and internationally through Brasilagro, with recent developments including the insolvency of its Israeli subsidiary IDBD - Cresud was incorporated in 1936 and became a publicly listed company on the Buenos Aires Stock Exchange in 1960, significantly expanding its business scope by acquiring a controlling interest in IRSA in 2009, which as of June 30, 2020, stood at **61.95%**[246](index=246&type=chunk) - The company expanded its agricultural business model internationally by participating in the creation of Brasilagro in Brazil in 2005, holding a **33.55%** interest as of June 30, 2020[246](index=246&type=chunk) - A critical recent event was the declaration of insolvency and initiation of liquidation proceedings for its Israeli subsidiary, IDB Development Corporation Ltd. (IDBD), by an Israeli court on September 25, 2020[268](index=268&type=chunk)[317](index=317&type=chunk) - In fiscal year 2020, BrasilAgro merged with Agrifirma Holding, and Cresud adjusted its stake in BrasilAgro through market sales and purchases, resulting in a final ownership of **33.55%**[253](index=253&type=chunk)[254](index=254&type=chunk)[259](index=259&type=chunk) [Business Overview](index=107&type=section&id=B.%20BUSINESS%20OVERVIEW) Cresud operates two main business lines: Agricultural Business, managing 629,794 hectares across Latin America, and Urban Properties & Investments, primarily through IRSA in Argentina and Israel, though its Israeli operations face liquidation - The company's operations are structured into two primary business lines: Agricultural Business and Urban Properties and Investments, with the latter geographically divided into an Operations Center in Argentina and an Operations Center in Israel[336](index=336&type=chunk) - As of June 30, 2020, the Agricultural Business owned **26 farms** with approximately **629,794 hectares** across Argentina, Brazil, Bolivia, and Paraguay, including **91,575 hectares** for crop production, **72,160 hectares** for cattle, and **359,965 hectares** held as land reserves[348](index=348&type=chunk)[378](index=378&type=chunk) - Through its subsidiary IRSA CP, the company owned and operated a portfolio of **15 shopping malls** in Argentina with a total Gross Leasable Area (GLA) of **333,062 square meters** as of June 30, 2020[425](index=425&type=chunk) - The Operations Center in Israel, held through IDBD and DIC, includes significant investments in real estate (PBC), telecommunications (Cellcom), and insurance (Clal), but IDBD was declared insolvent and is under liquidation on September 25, 2020[490](index=490&type=chunk)[491](index=491&type=chunk) [Organizational Structure](index=184&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) Cresud's organizational structure is centered around key subsidiaries, including a **61.95%** stake in IRSA for urban real estate and significant interests in Brasilagro and Futuros y Opciones.Com S.A. for agricultural operations Key Subsidiaries and Ownership (as of June 30, 2020) | Subsidiary | Effective Ownership and Voting Power (%) | | :--- | :--- | | IRSA Inversiones y Representaciones S.A. | 61.95% | | Brasilagro Companhia Brasileira de Propriedades Agrícolas | 33.55% | | Futuros y Opciones.Com S.A. | 50.10% | | Sociedad Anónima Carnes Pampeanas S.A. | 100% | | Agro-Uranga S.A | 35.72% | [Property, Plants and Equipment](index=184&type=section&id=D.%20PROPERTY,%20PLANTS%20AND%20EQUIPMENT) As of June 30, 2020, Cresud's extensive property portfolio includes **26 agricultural farms** totaling **629,794 hectares** with a net book value of **ARS 17,640 million**, alongside significant urban properties in Argentina and international real estate holdings - The company's agricultural property portfolio as of June 30, 2020, consists of **26 farms** with a total area of **629,794 hectares** and a combined net book value of **ARS 17,640 million**[542](index=542&type=chunk) - The urban property portfolio in Argentina includes major assets such as the República Building (**19,885 sqm GLA**), Bankboston Tower (**14,865 sqm GLA**), Abasto Shopping (**36,760 sqm GLA**), and Alto Palermo Shopping (**18,655 sqm GLA**)[548](index=548&type=chunk) - The Israeli operations hold significant international real estate, including the HSBC Building in New York (approx. **80,000 sqm**) and the Tivoli project in Las Vegas (approx. **62,000 sqm**)[495](index=495&type=chunk) [Operating and Financial Review and Prospects](index=188&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes Cresud's financial performance for fiscal years 2018-2020, highlighting a significant turnaround to net profit in FY2020 driven by fair value gains and improved agricultural performance, alongside discussions on liquidity and the impact of the IDBD insolvency [Consolidated Operating Results](index=188&type=section&id=A.%20CONSOLIDATED%20OPERATING%20RESULTS) Cresud's FY2020 consolidated revenues increased by **9.5%** to **ARS 121,256 million**, resulting in a net profit of **ARS 20,003 million**, primarily driven by fair value gains on investment properties and improved agricultural performance - The company's financial statements as of July 1, 2018, are adjusted for hyperinflation in Argentina according to IAS 29, which significantly affects the comparability of financial figures[557](index=557&type=chunk) Segment Profit / (Loss) (in millions of ARS) | Segment | FY 2020 | FY 2019 | | :--- | :--- | :--- | | **Agricultural business** | 6,634 | 3,141 | | **Urban Properties - Argentina** | 45,464 | (38,217) | | **Urban Properties - Israel** | 1,000 | 3,372 | | **Total Segment Profit / (Loss)** | 53,098 | (31,704) | - The significant turnaround in profitability in FY2020 was largely due to a **ARS 30,992 million** net gain from fair value adjustment of investment properties, compared to a loss of **ARS 37,746 million** in FY2019, primarily driven by the revaluation of Argentine office buildings and land reserves due to the Peso's depreciation[575](index=575&type=chunk)[640](index=640&type=chunk)[643](index=643&type=chunk) - Revenues from the Agricultural Business increased by **37.8%** in FY2020, driven by higher sales volumes for crops and cattle, and better prices for sugarcane[614](index=614&type=chunk) - Revenues from the Shopping Malls segment in Argentina decreased by **30.5%** in FY2020, mainly due to closures and reduced activity resulting from the COVID-19 pandemic[618](index=618&type=chunk) [Liquidity and Capital Resources](index=257&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Cresud's liquidity is primarily driven by cash from operations and asset sales, with a positive working capital of **ARS 58,162 million** as of June 30, 2020, though the insolvency of its Israeli subsidiary IDBD poses a significant challenge - Main sources of liquidity include cash from operations, issuance of debt and equity, and proceeds from asset sales, with key uses for acquisitions, capital expenditures, debt service, and dividends[788](index=788&type=chunk)[789](index=789&type=chunk) Cash Flow Summary (in millions of ARS) | Fiscal Year Ended June 30, | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | 35,734 | 25,546 | 24,150 | | **Net cash from investing activities** | 40,311 | 10,552 | (31,553) | | **Net cash from financing activities** | (72,624) | (25,735) | (4,009) | - As of June 30, 2020, the company had a positive working capital of **ARS 58,162 million** and cash and cash equivalents totaling **ARS 100,926 million**[791](index=791&type=chunk) - The Israeli subsidiary IDBD's financial condition is critical, with negative equity and negative operating cash flows, leading to its insolvency and liquidation proceedings initiated on September 17, 2020, which poses a significant risk to the company's capital resources[793](index=793&type=chunk)

Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) Q4 2020 Results Conference Call September 30, 2020 1:00 PM ET Company Participants Santiago Donato - IR Alejandro Elsztain - CEO Carlos Blousson - General Manager of Argentina and Bolivia Matias Gaivironsky - Chief Administrative and Financial Officer Conference Call Participants Santiago Donato Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the Fiscal Year 2020 Results Conference Call. First of all, I would lik ...

Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) Q3 2020 Results Conference Call June 10, 2020 1:00 PM ET Company Participants Alejandro Elsztain - Chief Executive Officer Carlos Blousson - General Manager of Argentina and Bolivia Matias Gaivironsky - Chief Administrative and Financial Officer Unidentified Company Representative Good afternoon, everyone. IÂ'm [indiscernible], Investor Relations officer of Cresud. And I welcome you to the Third Quarter 2020 Results Conference Call. As you know, todayÂ's live webcast wi ...

1 CRESUD IIIQ 2020 Conference Call June 10, 2020 Hosted by: • Alejandro Elsztain, CEO • Carlos Blousson, General Manager of Argentina & Bolivia • Matias Gaivironsky, CFO MAIN EVENTS FOR 9M FY2020 | --- | --- | --- | --- | --- | --- | |--------------------------|--------------|-------------------|------------------------------------------------|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------- ...