Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) Earnings

Management highlights

### Overall Operational Progress - The 2026 campaign has achieved a record planted area across operating regions, with generally favorable climate conditions that have supported above-trend yields, leading to record forecast production volumes that exceed all prior years. Soybean prices saw limited net recovery in South America when combining basis and exchange rate impacts, leaving prices nearly flat year-over-year for regional farmers, so volume and yield gains are the primary driver of improved performance. Input costs (fertilizer, fuel) have risen in recent months, squeezing margins, but overall results for the year remain very strong. ### Regional Agriculture Updates - **Argentina**: The winter wheat crop delivered very strong yields, and summer soybeans and corn are also performing well. Total production is on track to surpass all prior historical volumes, combining production across the country's north, central, and southern regions. Soybean harvest is nearly complete, with corn harvest extending into July-August. Good soil moisture recharge has set up strong conditions for the next season's winter crop planting. Production is up 13% year-over-year. - **Brasilagro (Brazil Operations)**: Production was lower year-over-year due to combined frost and drought weather impacts that reduced yields in key regions. Yields for the current cycle are still solid overall, but lower prices year-over-year have led to reported losses for Brazilian agriculture operations. There is strong investor interest in irrigated land in Brazil's Bahia region, and management expects increased transaction activity in coming quarters. - **Bolivia and Paraguay**: Both regions are on track for a 65% combined production increase year-over-year, bringing output back to normalized levels. All agricultural land in both countries is 100% owned by Cresud. ### Livestock Segment Expansion - Argentine cattle prices have recovered sharply from historic lows, while national cattle inventory continues to decline, supporting continued high prices. Cresud has achieved high production efficiency, hitting 10.7 million kilograms of production with a smaller herd, and margins are the highest in the company's history. Low grain input costs have made cattle margins nearly comparable to agriculture margins, leading the company to expand cattle operations at its El Tigre, La Pampa facility. ### Real Estate Development - IRSA has begun development of the new Zeta office building at Polo Dot, with a pre-leasing agreement in place for Mercado Libre to rent most of the building. Progress continues on the Ramblas development project: two additional land lots were sold in the quarter, bringing total signed lot sales to 17. Rental revenue grew 3.5% in real terms year-over-year. ### Financial and Capital Markets Activity - Cresud was active in capital markets during the quarter, issuing $181 million in notes on the Argentine market, which allowed the company to extend debt tenors and reduce overall financing costs, refinancing most upcoming amortizations for 2026 and nearly all for 2027. Nearly all outstanding 2021-issued warrants have been exercised, leaving no warrants outstanding and resulting in a total of 709 million outstanding shares. Net financial results were positive, driven by the gap between 50% inflation and 15% devaluation in the period.

Guidance

- Total regional crop production is forecast to increase 22% year-over-year to 1 million tons, which will be a new company record. Sugarcane yield is forecast to recover 12% year-over-year after 2025's weather-related damage. - Management expects increased farmland sales transaction activity in Q4 2026 and the following three quarters, with growing liquidity and transaction volume in Argentina, and strong interest for irrigated assets in Brazil's Bahia region. - Agrofy, the agricultural digital marketplace in which Cresud holds a 17% stake, is forecast to reach breakeven within three months after organizational restructuring that reduced headcount to 35 employees, with current monthly cash burn of $100,000. - FIO, the 51% owned agribusiness trading and services firm, is forecast to deliver full-year net income comparable to its prior four-year result of approximately $35 million, while expanding to 500,000 tons of annual trading volume in Brazil.

Segment performance

1. Agriculture (Grain & Sugarcane): - Planted area increased 4% year-over-year across the four operating countries, with a crop mix of 50% soybeans, 27% corn, and 9% sugarcane. Total crop production is forecast to hit 1 million tons, a 22% increase from last year's 839,000 tons, which is a company record. Soybean production is forecast to rise from 260,000 tons to ~290,000 tons, while corn production is forecast to increase from 550,000 tons to 593,000 tons. Sugarcane yield is forecast to recover 12% year-over-year after last year's weather-related damage. - Production increases by region: +13% in Argentina, +5% in Brazil, +65% in Bolivia and Paraguay combined. Yields overall are near or slightly above budget, with Argentina posting near-budget results, and Brazil facing yield impacts from a combination of frost and drought that reduced total production year-over-year. Reported results show a drop in grain earnings, driven by inflation accounting adjustments, lower Brazilian prices, and uncompleted harvest; positive results will be reflected in the next quarter once harvest is finalized. Sugarcane posted a loss in the period due to prior weather-related yield impacts and rising production costs. 2. Livestock: - 2026 is on track to set company records for production volume, prices, and margins, with activity growing primarily in Argentina and secondarily in Paraguay. The segment has achieved 10.7 million kilograms of production, supported by high beef prices, strong productivity, and low grain input costs. Margins are now nearly comparable to the agriculture segment. Reported peso-denominated results understate the segment's strong performance, which is much more positive when measured in dollar terms. 3. Real Estate & Farmland Sales: - No farmland or property sales were closed in the first nine months ending March 31, 2026. A subsequent small sale of 500 net hectares in Paraguay closed in Q4 2026 for $1.5 million. Compared to the prior year, which had large significant asset sales, lower farmland sales volumes are a key driver of lower reported operational results in the current period. 4. FIO (Cresud's 51% owned agribusiness service and trading company): - FIO is continuing rapid growth across the South American region. It is forecasting comparable net income of ~$35 million this year, matching the prior four-year result, with growing grain trading volume in Argentina supported by the strong domestic crop. FIO issued $28 million in new notes during the period to fund expansion, and is on track to hit 500,000 tons of trading volume in Brazil. 5. IRSA (53.44% controlled subsidiary, moving to 55% fully diluted after warrant exercises): - IRSA posted a net gain of 239.7 billion pesos for the nine-month period, with all core lines growing in real terms year-over-year. Shopping mall, office, and hotel all posted increasing revenue and EBITDA. The office portfolio holds 100% occupancy, and hotels have improved rates, occupancy, and margins. A positive fair value revaluation of IRSA's investment property portfolio (shopping malls, offices, land bank) drove positive results for Cresud, compared to a fair value drop in the prior year. 6. Consolidated Financial Results: - The nine-month period delivered a total gain of 231.3 billion pesos, with 121.6 billion pesos attributable to controlling shareholders, up from 77.3 billion pesos in the prior year. Net debt remained stable overall, after an active period of refinancing.

Risks & headwinds

- Rising input costs for fertilizers and fuel over the past two months have increased farmer production costs and squeezed agricultural margins, even as overall full-year results remain strong. - Inflation and exchange rate distortions in Argentina create accounting mismatches: balance sheets require inflation adjustment, while most agriculture revenue is dollar-linked, leading to understatement of actual operating performance in reported peso-denominated results. The gap between high inflation and lower devaluation creates accounting distortions that complicate year-over-year performance comparisons. - Uncompleted harvest for Argentine corn means full agricultural results for the period will not be finalized until the next quarter, leading to negative interim estimates in current reported results.

Analyst Q&A

• Q: What is the breakdown of owned versus leased agricultural land, and the crop versus cattle mix for owned land in Argentina, excluding Brasilagro?

  A: Total agricultural land in Argentina is approximately 150,000 hectares, split evenly 50-50 between owned and leased. In Brazil, the split is 60% leased / 40% owned. All agricultural land in Bolivia is almost entirely owned, and Paraguay is 100% owned. For owned land in Argentina, the split between crop and cattle use is also near 50-50. -

• Q: What is the current pipeline of land sales in Argentina and Brazil, given recovering Argentine land values?

  A: Global land price trends show a small 5-10%+ decrease in U.S. land prices, a larger decrease in Brazil, but strong recovery in Argentina after years of disconnection from global markets driven by export taxes and currency distortions. Argentine land prices have increased roughly 50% in current terms, and transaction liquidity has risen sharply, with interest from both domestic and international investors drawn to discounted assets. While no sales closed in the first nine months, management expects transactions in Q4 and has multiple deals under discussion, and is optimistic about future real estate liquidity. In Brazil, irrigated land in the Bahia region is seeing strong investor interest, and management expects multiple transactions over the next three quarters. Brasilagro may also purchase additional land in regions that have seen larger price corrections. -

• Q: What are the current ownership stakes in key subsidiaries after recent warrant exercises?

  A: Cresud's current stake in IRSA is 53%, which will increase to 55% after the final warrant exercise window closing in the next week. Cresud's current stake in Brasilagro is 35%. IRSA owns a 29% stake in Hipotecario Bank. -

• Q: What is the impact of Argentina's upcoming elections, current macro policy, and new free trade agreements on the agricultural sector?

  A: Argentina has made strong macro progress: soybean export taxes have been cut from 33% to 24%, and the government has promised further cuts. The currency gap between official and parallel exchange rates has fallen dramatically from 100-170% to near 1-2%, creating a much better operating environment for the sector. Farmers are patient with the gradual pace of tax cuts. New trade agreements with the U.S. and European Union will expand zero/low tariff beef export volumes from 20,000 tons to 100,000 tons total, providing major support for the cattle sector. China also increased Argentina's beef import quota from 400,000 tons to 500,000 tons. All recent policy changes are positive for agriculture, and Argentina is reconnecting to global agricultural markets, normalizing its position alongside other major exporters like the U.S., Brazil, and Australia. -

• Q: What is the current performance and outlook for Agrofy?

  A: Cresud holds a 17% non-controlling stake in Agrofy, an agricultural digital marketplace. After a 2024/2025 funding round of $2.4 million, with the final $400,000 disbursed recently, the company restructured, cutting headcount to 35 employees. It is currently burning $100,000 per month and is very close to breakeven, which management expects to reach within three months. Agrofy is one of the few surviving agricultural digital startups, has integrated significant AI tools to help farmers reduce costs, and investors continue to support its strategy. Management is optimistic that after passing the most challenging period, the company will deliver positive results going forward.