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

Good afternoon, everyone, and welcome to Cresud's second quarter 2020 results conference call. Today's live webcast, both audio and slideshow, may be accessed through companies' 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 website. Managing Director of S.A.C.I.F. Thank you very much. Good morning, everybody. We are beginning our first six months of 2020. We can begin in page number two.

to see the main events of the sixth month. We see that the adjusted EBITDA for the period made in the agribusiness segment a 2.6 million pesos, that it's a little drop comparing to last year numbers, mainly explained because of less real estate transactions in the first semester and expected to have in the second. In the case of the urban of Argentina, there is a small drop of 6.6 comparing to last year. It's 3.4 billion pesos. And this is mainly explained because of the adjustment of the inflation results. In the case of the shopping centers, the sales were a little below this adjustment, and it's bringing a negative. And later we are going to see some positives coming from the office buildings, but the shopping centers are a little more negative, making a small negative. and a positive, adjusted a bit in the case of Israel, explained mainly because of the good results on PBC and SELCOM, a change in the IFRS of SELCOM. The net result for the six months gives us a positive of 1.7 billion pesos, comparing to a negative of last year, and if we see the net result attributable to controlling company, it is a negative of 4.7 billion pesos, comparing to 6 billion pesos of last year. We have a record planted area in the region. We are achieving almost 270,000 hectares. It is a growth of 9% comparing to last year numbers. In the case of cells, I said that this year we are below last year numbers. We have only cases in Brazil through Brasilagro, 28.2 billion reality cells, and this is only small portions of and we are expecting more sales for the second semester and in this semester we distributed shares up to the 2.6% of the capital of Cresud and subsequently we did two or three things more Cresud sold in the market 6% of the stake of Brasilagro for $15.6 million this was an auction in a day and from other side Brasilagro merged Agrifirma It's an agricultural company based in Brazil, and we did that through issuing shares, not paying cash, through issuing new shares of Brasilagro, and including almost 29,000 hectares of land to the Brasilagro portfolio. And finally, after setting the 6% and the dilution of Agrifirma, Crisut reduced his stake to 13.6%. We can move to next page and we can speak about this merge that we are doing. Meantime, we are selling some farms in Bahia and we were reducing last years mainly through the sale of Chateau Bas and we had the chance of including this stake of a company that was unimportant on the past but failed in its operation and finally decided to receive the payment on shares and give us a scale and synergies we are not almost hiring no one it's in the same region of our farms and we are doing through issuing new shares this transaction it's a issuance of almost 9.5% of the company new shares. This is not finalized still. It's going to finalize very soon. And this is here an evolution of what is after this. The portfolio factor of Grafilagro grows from 185,000 hectares to 214,000 hectares. And they accepted the two were done at fair value of each of the companies. That was a very good and interesting transaction for us. This is the first time in the history of the company that we are able to acquire through the issuance of no shares. If we go to the next page, we can see the portfolio of the planted area. We are arriving to our record of 269,000 between the four countries and 9% growth compared to last year's numbers. Here we see that the soybeans represent 51, corn 24, sugar cane is 12, and the others are 13. And this is a combination of owned and leased land between the four countries. The two countries that they are doing that are Argentina and Brazil. The other two are doing only, and in Bolivia we have a small leasing too. Related to farmland sales, we see the evolution of the last 10 years. We can see that this year up to now, the first, Thank you very much. Good morning everybody, thank you Alejandro.

Let's go to page number six about farming, commodity prices, and global stocks. We can see in the graph the prices were kept at the low levels. The reasons are the following. Considering the supply, the condition of the crops in South America are foreseen as good. Let's now overlook the fact that the stock of the United States, especially soybean, are still high because they delayed in exports due to the tardiness in the agreement with China. Regarding the demand, despite the agreement phase one has been signed last January between the United States and China, exports are delayed. And we need to wait for the impact of coronavirus in the China's economy and on the demand. So far, prices are on hold. Regarding soybean stock consumption ratio, We can see in the graph a decrease in the world ratio, except from the United States, due to the reason mentioned before. Talking about corn, we see that the corn stock consumption has gradually decreased in the world's ratio, except from the United States, because of delays in export, since Brazil and the rest of South America was more competitive. The reason is that China is charging a surplus import tax to American crops, and not to Brazilian and Latin American ones. As you may see on the top of the right graph, we appreciate that the FOB soybean prices in Brazil and Argentina were more competitive than in the United States, the reason being the delay in the agreement with United States-China, not reaching an agreement on the import tax reductions. Current regional hedge campaign, 2019-2020, the current hedge level is 73% in soybean.