Cresud S.A.C.I.F. y A.

Good afternoon, everyone. Thank you for standing by and welcome to Cresud's first quarter 2020 results conference call. Today's live webcast, both audio and slideshow, may be accessed through the company's investor relations website at www.cresud.com.ar by clicking on the banner webcast link. The following presentation and the earnings release issued yesterday are also available for download on the company's website. After management's remarks, there will be a question and answer session for analysts and investors. At that time, further instructions will be given. Should any participant need assistance during the call, please press star zero to reach the operator. Before we begin, I would like to remind you that this call is being recorded and that the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties, and actual results may differ materially. Please refer to the detailed note in the company's earnings release regarding the forward-looking statements. I will now turn the call over to Mr. Alejandro Elsztain, CEO. Please go ahead.

Good morning, everybody. We are beginning our first quarter 2020 fiscal year, and we can begin in page number two. We can see that we are achieving a gain of 6.8 billion pesos and adjusted a bid that is at 7.6% better than last year numbers. When we divide between agribusiness and urban and Israel, we have a 20-80% breakdown. When we divide between Argentina, urban and agriculture, we have almost half and half. We are achieving a gain of 6.8%. Thank you very much. We are recording again and increasing from last year. That was our record in size of plantation. This year, we are increasing more, like 10% more. We are planting 268,000 hectares between the four countries. And we are developing 7,400 hectares between the countries. And from the other side, we began the real estate in the first quarter through sales in Brasilagro that we are going to explain later. Related to a plan of repurchase shares, we launched a new one in August for 300 million pesos. Up to now, we didn't buy from that repurchase plan. And a few days ago, we had an assembly. And in the assembly, we had approved a distribution of shares. We are distributing to shareholders what we bought last year. That was a 2.6% of the capital stock that is going to be delivered to the shareholders in November 14 of this year. From other side, we are collecting dividends from Brasilagro. Cresud is receiving soon $5 million because of the approval of Brasilagro. And IRSA approved a dividend in kind for IRSA shares. We are receiving a 1.2% of IRSA's commercial properties, almost $5.5 million through shares. If we move to next page, to page number three, we can see the evolution of planted area. Now we are talking about the 268,000 hectares. The 14,000 in orange are hectares that we are not planting from our stock, but we are giving to third parties to plant in our farms. And the rest we are planting. And so we are growing again year to year, passing again to a record year of planting between the countries, having own land and leased land in each of the countries. mainly, not in all, because we are not doing that in Bolivia, not in Paraguay, we are doing that just in Brazil and in Argentina. And so we see how big are the two, Argentina 140,000 hectares and Brazil 104,000 hectares. The rest is between Bolivia and Paraguay and the listing of our farms. Related to the farm sales, we can see that up to the first quarter, we just and we are selling at levels of 300 bucks per hectare and it's a nominal sale of 22 million reais that gives us an internal rate of return of 14 or 15 in reais or 7% in dollars because of the valuation in Brazil. Later, after the 30th of September, we had the recent sell smaller. It's a 65 productive area, but in here we are selling at 1,100 bags per hectare. This is in Alto Taquari, in an area that we bought like 3,600 hectares. So selling small, very small, we are having huge gains that are going to be reflected in the second quarter of 2020. So every year, every country intends to sell, and the first quarter up to now, the first two quarters, there are two in Brazil.

We go to page number five, and we are going to introduce Mr. Carlos Bluson. Please, Carlos. Thank you, Alejandro. Good morning, everybody. Let's go to page number five, farming, commodity price, and global stocks. We can see the graph that the world's price The Soviet price increase of 4% due to different factors. One factor is because the harvest in the United States is delayed due to the planting was delayed. The yield forecast is not encouraging. Normally, under these circumstances, prices should go up even more, but it's not so, because of the ongoing commercial war between the United States and China. The other factor is we see that the soybean price will be defined from now by the end of the United States harvest campaign. The soybean stock consumption ratio that will reduce in the United States by 10% and the evolution of the swine fever in China related to the demand. And the last one, the planting in South America in these periods. When we see the corn price, the prices are maintained low Thank you very much. The current regional hedge level is 40% in soybean and in the budget price. In case of corn, the regional level is 41%. We mean 6% over the budget. Let's go to the next phase, the good prospects for farming activity in fiscal year 20. As you can see on the left of the slide, the evolution of the weather in South America is normal. to continue at the same pace for the next 60 days so we can keep up with the planting. The other point is the competitive exchange rate in Argentina and Brazil. The devaluation rate has been increasing in the last three months. We can see 8% in Brazil and 36% in Argentina. The end of the regional planting progress. Notable to the regional soybean planting is of 24%, which is usual at these times of the year. If we pay attention to each country, the development is between the positive margin in all cases. In relation to corn, the regional corn planting is of 40%. Everything is happening as expected. Lastly, the case of wheat. We only produce wheat in Argentina, and we have started the harvest. Prospects were very encouraging. Let's go to the slide number seven. Investment in Agro5. Agro5, our e-commerce agribusiness company, which is a pioneer in the sectors, made a capital increase of $12.9 million in October 19, from which Cresud subscribed $2 million and Brasilagro $1 million. Today, the company's net worth is off $42.9 million and Cresud owns a 27.4% and Brasilagro 2.3%. We can see on the right of the slide the developed plan that Agrofire intends to implement in Latin America in the next three years. We plan to start operating in nine different countries. from Argentina to Mexico. Below of the slide, you can see the same, you can see same indicator that show that's agroforestry growing in the last year. Matias, continue with the presentation.