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

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the third quarter of 2026 Results Conference Call.

First of all, I would like to remind you that 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 are also available for download on the company website. After management remarks, there will be a question and answer session for analysts and investors. If you want to make a question, please use the chat.

Before we begin, I would like to remind you that this call is being recorded and the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risk and uncertainties, and actual results may differ materially. Please refer to the detailed note in the company's earnings release regarding forward-looking statements. I will now turn the call over to Mr. Alejandro Elstein, CEO. Good afternoon, everybody. We are beginning the highlights of the first nine months of 26, and we are progressing a very good campaign that is a record-planted area between on and leave, and with favorable conditions, and we are going to see later how the yields are good. in general, so we are surpassing our volumes of the past. Related to the prices of the commodities, there was some raising in the price of commodities, but input costs too. So that is making margins not to be so profitable, but still very good for the year. And the last two months, we began to see a bad context of fertilizers and fuel that is damaging farmer condition because of the cost of input. Related to the Argentina, we have very good winter crop. We were very good in yields on wheat mainly, but in summer crops, soybean and corn, we are good enough too. So we are surpassing the volumes of the past for all the history of Crescent this year in the combination of the north, central, and south region of Argentina. In case of Brasilagro, the production was lower. The main explanation in the balance sheet is because the shulking of 2035 that was covered because of frozen and drought, the combination of the two. So that made to suffer the operational business of Brasilagro mainly. That affected some yields in some regions of Brasil. And related to livestock, this year is a record of the history of Cresur, record in prices, in margins, in production, and we are improving our activity, mainly in Argentina, and some in Paraguay. The cattle business is spending a very good time, and I will explain later. Related to the real estate, up to the 31st of March, there were no sales, but there was a subsequent sale in the fourth quarter for a small portion in Paraguay, 921 hectares, but net hectares are 500 hectares for $1.5 million. So small fraction of sales in our Paraguay operation. And related to capital markets, we are very active during this quarter, during the whole year. We did $181 million on notes, each one on Argentine capital markets, and lowering the cost of financing of Cresur, and extending the general budget. Saying that, we can move from now to page number three, and we can see the increasing service of agriculture in the planted area evolution, we passed last year in 4% in size in grain, hectares plunged, and the combination of the four countries, and we can see the breakdown of 50% soybeans, 27% of corn, 9% of sugarcane, and if we move to the next page, the page number four, we see the evolution of the price. The price was In the year, there was a little recovery in the soybean, but the net recovery of the soybean combining basis and exchange rate mainly in Brazil is close to zero. So really, there is not a big effect of increasing prices in South America. It's a Chicago and South America combination. It's almost flat to farmers in the region. And so the good part is mainly because of the yields. that we are achieving, and we can go now to the next page. We have very good conditions on climate. In the Greek, we had more than 10% surpassing our budget, and we are expecting good yields in the soybean and corn. Soybeans in some countries is done, but I feel finished, and was very close to budget. A 1% drop, so zero. And in Argentina, we are almost the same. So this year is good in yields. And in private, not big, in soybean is good, little less in other crops. So we have a good combination, the operational combination of the region is really very good in the highest size of our history. So we are going to see, forecasting part of the balances of the year, we are going to see a very good operational business, mainly in Argentina. and here we can see that we finished harvest in Brazil, we finished harvest in Bolivia, in Argentina few weeks ago was at 7, now we are advancing a lot, we are going to finish in 15-30 days, we are going to finish Argentina crop in soybeans, and the corn is the more delay that will lead up to July-August to finish. But the conditions are good, enough good and good conditions for next campaign too. Now in our autumn, we are recovering a lot of water on our, in Argentina, maybe Argentina, so we are going to plant a lot of winter crops too. So operational business of agriculture are very positive. If we move to the forecast here we see, we are forecasting an increase compared to last year of 22% in total crop production. So from the 839,000 tons, we are, forecasting a million tons, our record in production in our history, in the combination of the region, Argentina and the region. So, and in sugarcane too, here we are forecasting the sugarcane of 26. So, compared to last year, that we have the damage that is showing on the balance sheet, and we are expecting a recovery of 12% in yields. So, we are much higher in crops and in sugarcane for the year. And we can see when we compare corn, we went from 550 to 593. In the soybeans, 260 to close to 290. This is the combination of first soybean, second soybean of the whole region. So in the combination of the region, we have a very important increase. And we see 13% in Argentina, 5% in Brazil, 65% in Bolivia and Paraguay. big increase. We are going to normal, 2.58 in Paraguay, 178 compared to last year in Paraguay. And in the corn, 8% combined in the three countries. Here we see 11% in Argentina, 4% in Brazil, 36% in Paraguay. So, more normalized in the northern part of Argentina and in Paraguay and Britain too. So, highest in volume and yields of the history. If we move now to the next page, we can see the livestock activity in Argentina, the recovery of prices of Argentina that was at the bottom and went to the very high prices for the kilogram of beef. And we, in Argentina, in the graph on the right part, we see there is not still a recovery on the inventory of the livestock of the country. With these prices still, We'll be expecting a recovery, but still it's not. So still, it's going down to 51 million heads in Argentina. And the prices are flying. And with those prices, I'm achieving very high productivity, 10.7 million kilograms. So big production, having not so big stock, but very efficient. We are expecting a very, very profitable year. Here we're putting the the production forecast, but the margins are really incredible, the highest of the history of cattle business in Argentina. So here we are expanding our pig lot in El Tigre, La Pampa. So we are increasing the volume of the cattle business in Argentina because of the combination of very good price and low price of the inputs of it, mainly the grain, making a very profitable activity. Are comparable to agriculture, so today, probably in the first quarter, we are going to show the expansion and the evolution of the cattle business that is making a lot more comparable than in the past to the agriculture. So, not even, but very comparable in margins. So, saying that, we can move now to page number eight, and looking at what is happening in FIO, our company, service company, commercial company, was pursued on 51%. We are expecting to keep growing. The forecast was 7.60, but we think that Argentine crop will keep growing, and FIO will keep growing from this number two. So, representing the big portion of Argentine volume through the trading volume. This company is servicing farmers in advising them, helping in capital, in all kind of inputs and outputs for the farmers and making an official $35 million of last four years. We are expecting to have a comparable number this year. So this company issues some notes during the period, $28 million and with that proceeds It's not only doing the business in Argentina, inputs and outputs. We can here see the Biondi is the Brazilian name. And this company is going to half a million tons of volume in Brazil. So it's expanding globally in the South American region. So this company keeps growing in a very fast pace. Saying that, I will now introduce to Matias Bajeroski to explain us about the investment in IRSA that Kresut owns.

Thank you, Alejandro. Good afternoon, everybody. So when we move to page 9 about our investment in IRSA, remember that Kresut today controls 53.44% of IRSA, but after the exercise of the warrants on a fully diluted basis, we will have 55%. So, IRSA during this nine-month period posted very good numbers with a net gain of 239.7 billion pesos with all the lines growing in real terms against last year. Shopping malls increasing revenues and EBITDA, the same in the office and the hotel portfolio. The office portfolio is running at 100% occupancy. And the hotels also, we saw an improvement in rates and occupancy and in margins. Also, IRSA announced a new development of a new office building, assigned just to the Mercado Libre, the Zeta building in Polo Dot. So, IRSA already signed an agreement with Mercado Libre that they will rent most part of the building. And regarding Ramblas, the main project of IRSA, we continue with the development and the commercialization of the different plots of land. During the quarter, we signed two additional lots, so we already signed 15 lots plus two lots that we sold in cash. As you can see in the graph, the devolution or the increase against last year on the rental segment was 3.5% in real terms. Going to the next page. So to understand the results on our balance sheet, you have to understand the drivers on inflation and devaluation, what What is impacting in our numbers, as you know, we have to adjust our balance sheet by inflation, while our revenues in most parts of the business line, in the agriculture business, is more related to dollars. And in this nine-month period, we have an inflation that was 50%. five percent against the evaluation that was 15 that generates a lot of distortions that i would try to to explain uh but many are related to that if we probably post numbers or results in dollar terms will be completely different so going to the next page uh you can see that regarding the the operational results on the early business we we see a drop basically are two drivers the first one is related to farmland sales that as alejandro mentioned during the last year we sold significant assets and and this this year uh we we only sold small portions and and then and we already signed one but will the result will be posted in the next quarter And then regarding the farming activity, we see a drop in grains. We have negative numbers in the balance sheet. Part is related, as I mentioned, we have to assess all the costs for inflation. The income that we are estimating in part of the goods, we haven't finished the harvest, so we will see final results in the next quarter. but some are impacted by this effect on estimation in prices and adjusting the cost by inflation. So when we split this result in between Brazil and Argentina, in Argentina we have better results. In Brazil, although we have very good numbers in terms of yield, prices are lower than the previous year, so we are not... or posting a loss because of that. Regarding the sugar cane, as Alejandro mentioned, during this period, we have an impact. It yields because of weather conditions and also increasing costs of production. So for that reason, we have this loss. And about the cattle segment, as well, we have very good numbers in yields, very good numbers in price. So all the drivers are very positive. But when we express the numbers in pesos term, we are not seeing the same results as if we see these numbers in dollar terms. Going to the next page, also an important driver when you analyze this nine-month period for Cresud is the change in the fair value of investment properties. Almost all of the results came from our investment in ILSA. ILSA has to value every quarter the investment properties, the shoppings, the offices, and the land bank. in fair value. And last year, because of the evolution of the inflation and the valuation, there was a drop during last year. And this year, we see a positive number because we've revaluated part of the mall portfolio in dollar terms. About the other important number comes in the net financial results that we still see a positive number. It's basically related to the net effects result that since we have much lower devaluation than inflation, that generates a positive number. This year, 146.1%. About the net interest, we see an increase here compared with the previous year. We have a little more debt at IRSA level, at Brasilagro level. An increase is stable, but last year the composition was a little, we have some problems. of the debt in pesos term, and we value, we assess that by inflation. You have to segregate inflation from the interest rate, so for that reason, appears to be lower than what really is So, with all these drivers, we finished the nine-month period with a gain of 231.3 billion pesos attributable to our controlling shareholders was 121.6 billion pesos compared with last year's 77.3 billion pesos. If we look to the next page of our debt, the net debt remained stable, but was a very active quarter regarding our financial activity. to get advantage of market conditions, we decided to move forward and refinancing most part of the upcoming amortizations for this year and almost the next year. So we issue $181.4 million in different transactions for four different branches with interest rate that goes from $475 to $700 So with this, we extend the tenor of our debt and also reduce the interest payment for the future. And also during the quarter, finally, there was the expiration of the warrants that we issued in 2021. So almost all the warrants were exercised. And today, the total shares of tandings uh 709 million shares and and we haven't any more warrants outstanding so with this we finish the formal presentation now i like to open the line for any question that you may have

We begin the Q&A session. If you have a question, please use the chat. We are going to take the questions in the order we receive them. Here we have the first question related to hectares that we own in Argentina, excluding Brasiladro, and just the owned land, not under concession.

We have a farm in the north of Argentina that accounts for 132,000 hectares under concession, and then we have some lease activity. I think the question is just for the owned land in Argentina, and how is the mix between crops and cattle? From the own, from the agriculture of Argentina, we can see in page number three, Argentina is close to 150,000 hectares, and from those it's almost half and half, the own and the leaves, so that would be a good breakdown of 50-50 in Argentina. In Brazil, it's a little bigger, the leaves, a little more, I would say 60-40, and in Bolivia and almost all owned, and Paraguay 100% owned, talking about agriculture to total. So in Argentina, it's close to 50-50. From 150, 75-75, almost that.

Thank you, Alejandro.

A question from BTG regarding land values. In Argentina, you mentioned recovering land values in the country and a stronger interest in your assets. Can you give us a sense of the pipeline of land sales? heading into the fourth quarter or next fiscal year. In general, we don't speak about the things that are not ready and not done, but in Argentina, there is a big increase on the land. You know that it's from 2013, Argentina disconnected to the world, mainly because of the two big effects, taxes on exports and a drop on the dollars. In the combination of the two, A recovery of the price of the land of the world came, but not to Argentina. Now, in the world, there is an adjustment of the price of the land. I would speak about a small decrease in the American United States prices, a bigger decrease in Brazilian, but a recovery in Argentina because of the disconnection of 2013. So, at the same time, the price of the land is decreasing a 5, 10 or More in Brazil that it's happening a lot. In Argentina, there is an increase. And if we talk about surges on the price of the land, they talk about the current rate of Argentina moving from the $13,000, $14,000 to the 50% increase, I would say, in the current rate of Argentina. And transactions and liquidity is increasing. Many investors from abroad and from Argentina are deciding to go to the asset that has very discount. So there were no transactions the first nine months. We expect the last quarter and there are some other transactions under discussion. So I'm very optimistic on the liquidity on the real estate business of Crescent. not having the first nine months but i'm very optimistic in argentina and in brazil there are some regions that they are very uh now that they are very big on the radar mainly because of the irrigation projects so a very big interest in bahia region so i'm expecting for the next three quarters, many transactions on the real estate. So, we have very good nine months of the production. Now, I think real estate is bringing back and some probably purchased in Brazil in some more area that they were more damaged in prices that Cresus Brasileiro is going to buy. Thank you. There are some questions regarding stakes and the different subsidiaries of Cresus. I will try to answer them summarizing There are questions regarding the warrants exercise of Cresur in IRSA. Currently, the stake is 53%.

But after the fully exercise in the last window that is coming in the next week, it's going to go to levels of 55% stake.

And then regarding Brasilagro, the current stake is 35%. And Hipotecario, there is another question, is under IRSA. And IRSA owns 29% of the bank.

I think I answered different questions related to the stake of Cresud in different subsidiaries.

And there is a question here related to the general outlook, the political situation and elections coming, and also the free trade agreements that Argentina is negotiating with the U.S.

and Mercosur with the way Europe, it will help and will boost the sector.

Yes, I think macroeconomically speaking, Argentina is making a very good job. Between the tax reduction that began, not was done, and a promise of the government that will keep doing it, We went from the 33% to the 24% in soybeans, a 20% decrease. But the gaps of dollars was dramatic. It's close to zero, 1% or 2%, but it's coming from 100% or 170%. It's close to zero. So the sector is spending very good time with the promise of keep reducing taxes. And the government, I think... carefully is not giving that before the raising the activity or raising the amount of statutes through other things. So I think, and the farmers are waiting patiently without a problem. So from other side, the government signed with US and signed with the European Union to trade agreements that help mainly in the cattle business, increasing from 20,000 to 100,000 in the two cases, volumes, increasing 80,000 tons of volumes with low taxes that will support a lot the activity for the cattle, and helping all the mission of agriculture for the country. So, this government understands the importance and it's reducing on time. So yes, many good measures and China increased the volumes of Argentina from 400,000 is going to 500,000 tons. So all of the measures and rules that come into farmers are good. So yes, I think Argentina is connecting to the normal. volume of the world and the normalization of the activity to the rest of the players, like United States, Brazil, Australia, or other exporters in agriculture.

There is, I think, one more here related to Agrofy, if you can give some color on the performance of the company.

Agrofy is a company that preserves close to 17% of the shares, not the controller. It's a company that began through many investors, big investors of the world. And it's a marketplace for agriculture. This company was made in many rounds. Finally, a year and a half ago, did the last round of $2.4 million. Now we are putting the last $400,000 of this round. And the company is very close to breakeven. After many reorganizations, this company grew a lot through capital issues, but finally understood that it needs to be at a smaller size of headcount. Today it's a company of 35 employees. very close to breakeven. We are now spending $100,000 per month, and we expect in three months to be breakeven. So this company is one of the survivors on the digitalization world of the agriculture, still with a challenge. It's not positive, as FIO is, making a $20, $25 million a year, but AgroPhi is surviving, and the investors are supporting the strategy, and the company is doing a very good job in this environment that they are not selling as much as we expected in the past, but if we survive and we keep organically using the AI, this company has a lot of AI applied, so we expect this company to be one of the players helping farmers to reduce costs and comparing to other companies. So we are optimistic that past the worst part of the wave and it's close to breakeven. And after breakeven will be much different story.

I think we cover all the questions. Give you one second more for any additional question that you may have. Okay, if there are no more questions, we can conclude the presentation, the Q&A, and I turn back to Alejandro just for his final notes.

We have only one quarter left on the balance sheet. We have a good combination of factors for, in the very tough situation for many parts of the world in agriculture, our company adding the three legs of real estate operation and servicing. It's a very well position, not big in debt, and rotating the portfolio, receivables of funds in the case of Brazil. So we are in a very good condition to take advantage of these opportunities that are appearing. So just to thank you, and let's finish our next quarter, the balance sheet of the year. Thank you very much, and have a very good day. Thank you.