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 | --- | --- | --- | --- | --- | --- | |--------------------------|--------------|-------------------|------------------------------------------------|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------- ...

IIQ 2020 Conference Call February 12, 2020 | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | Hosted by: Alejandro Elsztain, CEO Carlos Blousson, General Manager of Argentina & Bolivia Matías Gaivironsky, CFO | | | | | MAIN EVENTS FOR IIQ FY2020 | --- | --- | --- | --- | --- | --- | |--------------------------|-------|-------------------- ...

Cresud SACIF y A (NASDAQ:CRESY) Q2 2020 Earnings Conference Call February 12, 2020 10:00 AM ET Company Participants Alejandro Elsztain - CEO Carlos Blousson - CEO, International Operation and GM, Argentina & Bolivia Operations Conference Call Participants Operator Good afternoon, everyone, and welcome to Cresud's Second Quarter 2020 Results Conference Call. Today's live webcast, both audio and slide show, may be accessed through company's Investor Relations website at www.cresud.com.ar, by clicking on the b ...

Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria (NASDAQ:CRESY) Q1 2020 Earnings Conference Call November 12, 2019 10:00 AM ET Company Participants Alejandro Elsztain - CEO Carlos Blousson - GM of Argentina & Bolivia MatÃas Gaivironsky - CFO Conference Call Participants John Durso - Kahuna Capital Wesley Golby - Seven Canyons Operator Good afternoon, everyone. Thank you for standing by and welcome to Cresud's First Quarter 2020 Results Conference Call. Today's live webcast, both au ...

[Key Information](index=10&type=section&id=Item%203.%20Key%20Information) This section presents key financial data and outlines significant risks, especially those tied to Argentina's macroeconomic instability [Selected Consolidated Financial Data](index=10&type=section&id=A.%20SELECTED%20CONSOLIDATED%20FINANCIAL%20DATA) This section presents the company's selected consolidated financial data for fiscal years 2019, 2018, and 2017, prepared under IFRS - Effective July 1, 2018, Argentina's hyperinflationary status required IAS 29 application, restating financial statements to current measuring units[36](index=36&type=chunk) Consolidated Statement of Income Highlights (in millions of Ps.) | Indicator | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Revenues | 82,665 | 69,286 | 67,907 | | Gross profit | 31,058 | 27,111 | 25,203 | | (Loss) / Profit from operations | (9,807) | 29,451 | 4,147 | | (Loss) / Profit for the year | (28,497) | 19,185 | 3,622 | | Profit (loss) attributable to Equity holders | (18,749) | 4,272 | (624) | Consolidated Statement of Financial Position Highlights (in millions of Ps.) | Indicator | As of June 30, 2019 | As of June 30, 2018 | | :--- | :--- | :--- | | Total non-current assets | 354,930 | 398,201 | | Total current assets | 153,059 | 159,473 | | **TOTAL ASSETS** | **507,989** | **557,674** | | Total non-current liabilities | 329,387 | 345,261 | | Total current liabilities | 89,602 | 88,952 | | **TOTAL LIABILITIES** | **418,989** | **434,213** | | **TOTAL SHAREHOLDERS' EQUITY** | **89,000** | **123,461** | Consolidated Statement of Cash Flows Highlights (in millions of Ps.) | Indicator | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 17,874 | 16,897 | 16,547 | | Net cash generated from / (used in) investing activities | 7,383 | (22,077) | (4,634) | | Net cash (used in) / generated from financing activities | (18,006) | (2,805) | 4,244 | Key Financial Ratios | Ratio | 2019 | 2018 | | :--- | :--- | :--- | | Gross margin | 0.37 | 0.38 | | Operating margin | (0.12) | 0.42 | | Net margin | (0.34) | 0.27 | | Return on Equity (ROE) | (0.27) | 0.17 | [Risk Factors](index=15&type=section&id=D.%20RISK%20FACTORS) The company faces substantial risks, predominantly linked to Argentina's macroeconomic and political instability, and other emerging markets [Risks relating to Argentina](index=15&type=section&id=Risks%20relating%20to%20Argentina) The company's Argentine operations are heavily exposed to the country's volatile macroeconomic conditions, political uncertainty, and government interventions - Argentina's highly volatile economy, with **54.9% expected inflation** and **2.5% GDP contraction** for 2019, directly impacts the company's financials[47](index=47&type=chunk) - The Argentine Peso depreciated **51%** against the U.S. dollar (Oct 2018-Oct 2019), with reinstated foreign exchange controls limiting capital repatriation[49](index=49&type=chunk)[57](index=57&type=chunk)[84](index=84&type=chunk) - Argentina's cumulative three-year inflation exceeding **100%** led to its classification as a hyperinflationary economy from July 1, 2018, requiring IAS 29 application and impacting financial statement comparability[63](index=63&type=chunk)[64](index=64&type=chunk) - Argentine government intervention, including nationalizations and price controls, creates policy uncertainty, exacerbated by the 2019 national election outcome[75](index=75&type=chunk)[79](index=79&type=chunk) [Risks Relating to Brazil](index=41&type=section&id=Risks%20Relating%20to%20Brazil) Operations in Brazil are subject to significant government influence, political instability, economic slowdowns, and regulatory restrictions - Brazilian operations face risks from significant government economic influence, instability, inflation, exchange rate fluctuations, and political events like the 'Lava Jato' investigation[108](index=108&type=chunk)[110](index=110&type=chunk) - Brazilian Law No. 5,709/71 restricts agricultural land acquisition by foreign-controlled entities, potentially limiting Brasilagro's development and expansion[112](index=112&type=chunk)[114](index=114&type=chunk) - Extensive and stricter environmental regulations in Brazil could significantly increase expenses and lead to administrative fines or criminal sanctions[115](index=115&type=chunk) [Risks Relating to Our Agricultural Business](index=51&type=section&id=Risks%20Relating%20to%20Our%20Agricultural%20Business) The agricultural business is exposed to inherent risks including volatile commodity prices, unpredictable weather, diseases, government policies, and illiquid assets - Commodity prices for cereals and oilseeds are cyclical and highly sensitive to global supply, demand, and speculative trading, creating significant price risk[135](index=135&type=chunk) - Agricultural production is vulnerable to unpredictable weather, pest infestations, and cattle diseases, which can reduce yields and adversely impact financial results[135](index=135&type=chunk)[138](index=138&type=chunk) - The Argentine government could reinstate or increase export taxes on agricultural products, negatively impacting sales and operating results[139](index=139&type=chunk)[141](index=141&type=chunk) - A substantial portion of assets is illiquid farmland, making portfolio adjustments difficult in response to changing economic or regulatory conditions[152](index=152&type=chunk) [Risks relating to IRSA´s business in Argentina](index=59&type=section&id=Risks%20relating%20to%20IRSA%C2%B4s%20business%20in%20Argentina) IRSA's real estate business faces industry-specific risks, including property value decreases, operational challenges, market concentration, and regulatory restrictions - IRSA's shopping malls face risks from tenant defaults, declining rental prices, and increasing e-commerce competition, potentially affecting profitability[171](index=171&type=chunk)[208](index=208&type=chunk) - Most of IRSA's rental income is concentrated in the Buenos Aires metropolitan area, creating high susceptibility to local economic downturns[173](index=173&type=chunk) - Argentine law restricts leases with a two-year minimum term and prohibits automatic inflation-based rent adjustments, limiting flexibility and exposing the company to inflation risk[191](index=191&type=chunk) - Unrealized revaluation adjustments on investment properties can significantly fluctuate due to market and macroeconomic factors, causing material volatility in reported earnings[212](index=212&type=chunk) [Risks Relating to the Operations Center in Israel](index=79&type=section&id=Risks%20Relating%20to%20the%20Operations%20Center%20in%20Israel) Israeli operations face significant regulatory risks from the Concentration Law, regional political instability, and financial challenges within IDBD and its subsidiaries - The Israeli "Concentration Law" mandates a two-tier corporate structure, forcing IDBD/DIC to restructure and divest certain holdings by December 2019[242](index=242&type=chunk)[243](index=243&type=chunk)[630](index=630&type=chunk) - As of June 30, 2019, IDBD faced negative equity, negative operating cash flow, and a low credit rating, challenging debt commitments and risking insolvency claims[258](index=258&type=chunk)[260](index=260&type=chunk) - IDBD is under regulatory pressure to sell its controlling stake in Clal Insurance, potentially resulting in a lower sale consideration[265](index=265&type=chunk) - Subsidiaries face specific market risks: Cellcom in competitive telecom, PBC in real estate, and Shufersal in the supermarket sector[268](index=268&type=chunk)[280](index=280&type=chunk)[283](index=283&type=chunk) [Risks Related to the ADSs and the Common Shares](index=95&type=section&id=Risks%20Related%20to%20the%20ADSs%20and%20the%20Common%20Shares) Investors in Cresud's ADSs and common shares face risks including price volatility, dilution, limited SEC disclosure, enforcement difficulties, and restricted dividend repatriation - As a foreign private issuer, Cresud is exempt from certain SEC rules, including quarterly reporting, proxy solicitation, and insider trading reporting requirements[308](index=308&type=chunk) - Enforcing U.S. court judgments against the company or its directors in Argentina may be difficult, as Argentine courts may not enforce actions based solely on U.S. federal securities laws[310](index=310&type=chunk) - Shareholder rights under Argentine law are fewer and less defined, with a less developed legal framework for disputes like class actions[315](index=315&type=chunk) - Argentine government restrictions on capital movement and currency conversion may impair ADS holders' ability to receive dividends in U.S. dollars[316](index=316&type=chunk) [Information on the Company](index=99&type=section&id=Item%204.%20Information%20on%20the%20Company) This section details Cresud's history, business segments, organizational structure, and property, plant, and equipment [History and Development of the Company](index=99&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) This section outlines Cresud's evolution from its 1936 founding to its current status as a diversified agricultural and real estate company - Cresud's modern era began in **1994** with new control, followed by a **1997 NASDAQ listing** and acquisition of a controlling stake in IRSA for urban property investments[324](index=324&type=chunk) - The company expanded agricultural operations internationally, establishing Brasilagro in Brazil (**2005**) and acquiring land in Bolivia (**2008**) and Paraguay (**2008**)[324](index=324&type=chunk) Recent Farmland Sales Transactions | Farm | Location | Hectares Sold | Transaction Date | Sale Price | Gain (Ps. million) | | :--- | :--- | :--- | :--- | :--- | :--- | | La Esmeralda | Argentina | 9,352 | June 2018 | US$ 19 million | ~480 | | Jatobá (partial) | Brazil | 9,784 | June 2018 | 300,000 soybean bags | N/A | | Jatobá (partial) | Brazil | 3,124 | June 2019 | 285 soybean bags/ha | 401 | | La Suiza (partial) | Argentina | 10,000 | June 2018 | US$ 10 million | ~266 | - In June 2018, DIC sold a **16.56%** stake in Shufersal, losing control, followed by a further **7.5%** sale in November 2018, reducing its stake to **26.02%**[25](index=25&type=chunk)[345](index=345&type=chunk) Capital Expenditures (in millions of Ps.) | Category | FY 2019 | FY 2018 | | :--- | :--- | :--- | | **Total Capex** | **14,443** | **15,912** | | Agricultural Business | 1,320 | 2,573 | | Urban Properties & Investments | 13,123 | 13,339 | [Business Overview](index=111&type=section&id=B.%20BUSINESS%20OVERVIEW) Cresud operates through two primary business lines: Agricultural Business and Urban Properties & Investments, each with distinct strategies and portfolios - The company operates in two main segments: Agricultural Business and Urban Properties & Investments, the latter through its **62.35% stake in IRSA**[369](index=369&type=chunk) - The Agricultural business acquires under-utilized land, enhances value, and selectively sells properties for capital gains, owning **23 farms** totaling **599,615 hectares** as of June 30, 2019[369](index=369&type=chunk)[377](index=377&type=chunk)[380](index=380&type=chunk) - IRSA's Urban Properties business has two centers: Argentina, with **15 shopping malls**, premium offices, and luxury hotels; and Israel, with a diversified portfolio via IDBD and DIC[369](index=369&type=chunk)[383](index=383&type=chunk) Agricultural Production Volume (FY2019) | Product | Volume (tons) | | :--- | :--- | | Total Crops | 599,238 | | Sugarcane | 1,999,335 | | Cattle | 11,173 | IRSA Shopping Mall Portfolio Highlights (as of June 30, 2019) | Metric | Value | | :--- | :--- | | Number of Malls | 15 | | Total GLA (sqm) | 332,150 | | Average Occupancy Rate | 94.7% | | Total Tenant Sales (FY2019) | Ps. 66,075 million (-13.9% YoY) | [Organizational Structure](index=206&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) This section details Cresud's corporate structure as of June 30, 2019, including key direct subsidiaries and associated companies with their effective ownership percentages Key Subsidiaries and Ownership (as of June 30, 2019) | Company | Effective Ownership % | Main Activity | | :--- | :--- | :--- | | IRSA Inversiones y Representaciones S.A. | 62.35% | Real Estate Development & Management | | Brasilagro Companhia Brasileira de Propiedades Agrícolas | 43.29% | Agricultural Properties in Brazil | | Futuros y Opciones.Com S.A. | 50.10% | Agricultural Information & Brokerage | | Sociedad Anónima Carnes Pampeanas S.A. | 100% | Meat Packing Plant | - Israeli operations are held through a multi-layered structure, with Cresud controlling IRSA, which then controls IDBD and DIC via intermediate holding companies[535](index=535&type=chunk) [Property, Plants and Equipment](index=207&type=section&id=D.%20PROPERTY,%20PLANTS%20AND%20EQUIPMENT) This section provides a detailed overview of the company's tangible assets as of June 30, 2019, including agricultural farmlands and urban property portfolios Owned Agricultural Farmlands (as of June 30, 2019) | Country | Number of Farms | Total Hectares | Net Book Value (Ps. Millions) | | :--- | :--- | :--- | :--- | | Argentina | 13 | 401,713 | 4,219 | | Bolivia | 3 | 9,875 | 1,043 | | Paraguay | 1 | 17,566 | 1,823 | | Brazil | 6 | 167,580 | 4,027 | | **Total** | **23** | **599,615** | **10,679** | Urban Properties Portfolio - Argentina (as of June 30, 2019) | Property Type | Leasable/Saleable Area (sqm) / Rooms | Net Book Value (Ps. Millions) | Occupancy Rate | | :--- | :--- | :--- | :--- | | Shopping Malls | 332,150 sqm | 29,038 | 94.7% | | Offices | 115,378 sqm | 19,583 | 88.3% | | Hotels | 718 rooms | 1,394 | 66.5% | | Land Reserves | >1.2M sqm | 12,824 | N/A | Urban Properties Portfolio - Israel (as of June 30, 2019) | Property | Location | Use | Net Book Value (Ps. Millions) | | :--- | :--- | :--- | :--- | | HSBC Building | United States | Rental properties | 39,779 | | Matam park - Haifa | Israel | Rental properties | 21,504 | | Herzeliya North | Israel | Rental properties | 14,696 | | Tivoli | United States | Rental properties | 9,107 | [Operating and Financial Review and Prospects](index=212&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes consolidated operating results, highlighting hyperinflation accounting's impact and segment performance [Consolidated Operating Results](index=212&type=section&id=A.%20CONSOLIDATED%20OPERATING%20RESULTS) The company's operating results for fiscal year 2019 were significantly impacted by Argentina's hyperinflationary economy, requiring financial restatement under IAS 29 - IAS 29 hyperinflation accounting, applied from July 1, 2018, critically impacts results by restating financials to current currency values, affecting comparability[675](index=675&type=chunk)[687](index=687&type=chunk) Operating Results Summary by Business Line (FY2019 vs FY2018, in millions of Ps.) | Business Line | Revenues FY2019 | Revenues FY2018 | Segment Profit/(Loss) FY2019 | Segment Profit/(Loss) FY2018 | | :--- | :--- | :--- | :--- | :--- | | Agricultural Business | 13,249 | 10,681 | 2,199 | 3,270 | | Urban - Argentina | 10,534 | 9,706 | (26,716) | 16,183 | | Urban - Israel | 56,722 | 46,138 | 9,724 | 8,605 | | **Total (Segment Info)** | **80,505** | **66,525** | **(14,793)** | **28,058** | - Profitability significantly declined due to a swing in 'Net gain from fair value adjustment of investment properties' from a **Ps. 16,849 million gain** in FY2018 to a **Ps. 23,618 million loss** in FY2019, primarily in Argentine urban properties[718](index=718&type=chunk)[756](index=756&type=chunk) - Agricultural business revenues grew **24.0%** to **Ps. 13.2 billion** in FY2019, but segment profit fell **32.7%** to **Ps. 2.2 billion** due to lower farmland sales gains[737](index=737&type=chunk)[795](index=795&type=chunk) - Financial results improved from a **Ps. 33.8 billion net loss** in FY2018 to a **Ps. 12.4 billion net loss** in FY2019, driven by a positive net exchange difference as **56% inflation** outpaced **47% currency devaluation**[808](index=808&type=chunk)

Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria (NASDAQ:CRESY) Q4 2019 Results Earnings Conference Call September 10, 2019 10:00 AM ET Company Participants Alejandro Elsztain - Chief Executive Officer Carlos Blousson - General Manager of Argentina & Bolivia Matías Gaivironsky - Chief Financial Officer Conference Call Participants Operator Good morning everyone and welcome to the Cresud's fourth quarter 2019 results conference call. Today's live webcast, both audio and slide show, ...