Cresud S.A. Warrant 2021-08.03.26 on Cresud Q3 FY2024 earnings call

• Regional campaign: Planted area was slightly lower than expected due to climate, price issues, and water problems; Argentina's humid region had better rainfall than the previous year, while Brazil and Brasilagro had lower results because of climate and prices.
• Agriculture specifics: Soybean and corn prices declined, with sugarcane price severely affected in Brazil; soybean yield increased by 7% and corn yield by 2% year-to-year.
• Real estate: There were 2 small transactions in Argentina in the first month, and a major transaction in Brazil's Chaparral farm in the fourth quarter with a BRL 365 million sale.
• FyO: Recovering, planning to exceed 7 million tonnes this year with strong EBITDA.
• IRSA: Mixed results, with a 9-month loss attributable to the fair value of investment properties, but adjusted EBITDA up, and tenant sales impacted by Argentina's macroeconomic situation.

Cresud's segments: In agriculture, Argentina's agriculture was affected by climate and prices, with a slightly lower planted area year-to-year; Brazil and Brasilagro had lower productive results due to climate and prices, especially sugarcane in Brazil. For real estate, Argentina had 2 small transactions in the first month, while a big transaction in Brazil's Chaparral farm in the fourth quarter is set to bring BRL 365 million. FyO, the agricultural service company, is planning to have more than 7 million tonnes this year and is generating significant EBITDA. IRSA investment showed mixed results: a 9-month loss of ARS 111 billion mainly due to the fair value of investment properties, but an adjusted EBITDA gain of ARS 112 billion, with tenant sales affected by Argentina's macroeconomic conditions.

• Planning to increase the planted area next year.
• Budgeting and making plans for the next year.
• Optimistic about Cresud's future, expecting good results in the presentation of the next quarter's numbers.

• Climate conditions can affect harvests.
• Price fluctuations in agricultural products.
• Macroeconomic uncertainties in Argentina that can impact the business.

Q: How does management consider the best way to capture the discount to value across IRSA and Cresud, and the preference between share repurchases, dividends, or a combination of both?

A: Always consider the capital structure and have been active in buying back shares or paying dividends when feasible. Limited by regulations but will continue if there is a gap.

Q: Will the warrants of Cresud be updated after the dividend, and what about the strike price?

A: According to the warrant agreement, every time a dividend is approved, the strike price and conversion ratio need to be adjusted to reflect the dividend, and this will occur after the dividend distribution tomorrow.

Q: What dollar is taken into account for exercising the option?

A: It is the implicit exchange rate between the ADR and the local shares, using the implicit exchange rate in our own shares.