Cresud SA Q1 FY2021 earnings call

• Agriculture: Commodity prices have strongly recovered at the beginning of the quarter. There was a big change in the market in the last 90 days. Planting is recovering to almost normal after the start of rain. There is much interest for farmers mainly in Brazil due to currency devaluation and price increases. - Urban business: On September 20, 2021, the Court decreed the insolvency and liquidation of IDBD, so the group lost control of the Israel investment and stopped consolidating its financial statements. Shopping malls in Argentina have reopened recently. Offices had a slight decrease in stock, stable occupancy at almost 92%, and average rent slightly decreased. Hotels were closed but some operations started. - Financials: Successfully exchanged bonds that matured this year.

In the first quarter of Fiscal Year 2021, Cresud's adjusted EBITDA was ARS5.8 billion, which is 63% higher than the previous year. In the urban business, the urban business increased by 155% year - on - year, while the rental segment dropped by 96% due to malls being closed for most of the last six months. However, sales of some office buildings brought ARS5 billion in the urban business. The net result for the first quarter was an ARS7.5 billion gain, and the attributed to the controlling company was ARS2.9 billion, compared to a loss of ARS3.2 billion last year. In the agribusiness, 262,000 hectares were planted, and there were no farm sales in the first quarter.

• Agriculture: Optimistic about the operation of the year with 262,000 hectares planted and a good start to the planting season. - Urban business: Hope for better results in the future as malls, hotels, etc., recover, and support for tenants is expected to help them survive the crisis and be ready for recovery.

• Central Bank regulations affected bond exchange as companies had to refinance debt. - Malls being closed for six months led to rent reduction costs. - Uncertainty in Argentina's macroeconomic situation due to the government's deal with the IMF.

Q: What expectations do you have about the future of the business in Argentina, taking in account the program that the government has to sign with the IMF and the consequences that this will have for the future of the country?

A: Related to agribusiness, there is a lot of optimism on the market. The increase in soybean prices has changed the market feeling and will profit the farming industry. For the financial side and the IMF, hope the government will close an agreement with the IMF. The real estate side will be better than this year as malls and hotels were closed for almost six months this year, and the platform is in conditions to make attractive business again by supporting tenants