Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the second quarter of fiscal year 2026 results conference call.

I would like to remind you that both audio and slideshow may be accessed through company's 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 that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks 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 Elsztain, CEO.

Thank you, Santi. Good afternoon, everybody.

We are beginning our second we are now going to introduce the results of the second quarter of 2026. We can see in page number 2 the main events that happened in this first half year.

The conditions on the weather were were okay, better than last year, in the two in owned and leased land. We have this year improved the size of hectares in the four countries.

Now, with lower margins because of the drop of prices, we were very active doing the owned and leased lands, and we are going to show you in the next page. Related to the prices, the prices were stable this year, no big jumps.

Some changes between US and South America, but finally, higher cost of inputs, lower margins comparing to last years, comparing to the COVID times. We are compensating that through size between the four countries.

In the only harvest we had in the beginning, that was the the the wheat mainly for the our winter crops, we have achieved a better yield comparing to what we expected, what we planned. It was like 10% higher comparing the time we we planted.

That was a combination of good yield and more use of fertilizer in Argentina. We began the yield related to to the all the agriculture for the for the company the first half in a positive way.

In the meantime, prices of the wheat were not so so good. We had better yields, but still now majority of that was not sold.

Now we're beginning to sell, and we are compensated through the prices now. We are having good results in the wheat, too.

In the rest, we are going to expect for the soybean and and the corn that they are coming for the second half. We are in good shape, but waiting for more rains for the future.

Related to BrasilAgro, we had lower production results, and that was explained mainly because of sugar cane. We had some cases of some things affecting the yields of sugar cane that mainly affect the first half of the year in Brazil.

The one the good very good part of the half of the year was the cattle activity. Here we had very sustained price, and we're going to show you the evolution on the prices related to this.

Argentina, with a very big stock and much more investments on on cattle, we had very good results in the first six months. We're improving our feedlots in south in El Tigre and in the north in Los Pozos farm.

Related to capital market, we issue local capital market bonds up to $117 million to repay the this year debt maturity. In the meantime, Cresud paid a very big dividend.

We paid up to 93,000 million pesos, close to $64 million; 70% was in cash, 30% in kind in IRSA shares. Plus of that, we did like almost 1% of Cresud shares paid dividends, too.

Very actively paying dividends in this year. Now we can move to page number 3, and we can see what it was the final planted area.

A little drop from the last presentation last quarter, we dropped like 6,000 hectares between the four countries, and that was done because we were very strict. The margins in some farms was not so big, and we were very strict on the window of planted time.

We preferred to plant a little less, but with the areas with enough rain and with very positive margins. That was the reason of small reduction area that stayed not planted, like 6,000 hectares.

We were presenting 332 before. This is the breakdown between the four countries, and the main one is still Argentina, second Brazil, Paraguay, and final Bolivia.

If we move to next page, we can see the evolution on the prices, the 10-year 10 two main products, soybean and corn, and where we have the two main activities in volume, plus the sugar cane, plus the cattle. These are the four main activities, plus the real estate, plus the service through FyO and Agrofy.

In here we see the evolution on the prices the last 14 years. We did the we wanted to show you how cheap is soybean and corn in real terms, nominal terms, but in real terms adjusted by inflation.

You see how cheap are our main products. With that, we are still making money in this region that is so benefit in in production, and still farmers of the region are making good, without subsidies, for sure, and in Argentina still with taxes on exports.

In the graph below, I wanted to show this days of changes because Donald Trump announcing China bubble or China realignment. Look at what is happening with Chicago Board of Trade of the price.

We see jumps, and the time that the jump comes to the price of Chicago, the premium to Brazil goes down, and exactly the opposite: where the price goes down, premium to Brazil goes up. Finally, South America is very balanced, and is not changing its price in dollars, and this is affecting mainly South American prices.

Some small changes because of the China and US relation, but finally not changing the very good shape that the sector is spending and the recovery of the stocks that we were looking at the last years. I wanted to share that, that the margins for farmers are decreasing because of the long-term trend of this.

A lot of new technology coming to the sector, improving the yields, and this is making small margins. We are having good margins, small margin.

This year we are expecting smaller, but in a bigger scale because of the expansion on the land. In the next page, we can see that the weather is in good condition.

We see the graph is in green or is in blue, saying accumulated good rains. Small very small areas without a good rain.

We are expecting a normal or almost normal crop for the four countries. Here we see the sowing progress: 100% of the corn and the soybean of Argentina, of Bolivia, Brazil.

Brazil, the corn is a little late. This is corn made of safrinha, second corn, and this is a little delay.

In Paraguay, too. We are not achieving up to now 100% of the corn.

We expect to arrive close to 100, but probably not to the 100 because of some lack of rain that affected mainly Brazil and Paraguay. Balanced weather conditions and controlling costs, normal operation year up to now after after up to end of January, understanding that majority of soybean and corn will come from Now in Brazil is beginning the harvest on Mato Grosso, but mainly in Argentina harvest of soybean will be April, May, and maybe majority of the corn will come in July, August, September.

We are in the middle of the good time of the summer crop that is the main more important for the for the company. We can move to next page, and we can see some good news.

The government is doing what it said in the past, decreasing the taxes on exports, small reduction. We saw during this quarter 26 to 24 in the soybean, 9.5 going to 8.5 in corn and sorghum, 9.5 to 7.5 in wheat and barley.

Some small drops going in the good direction, not expecting to go to zero mainly the soybean, that is the big revenue for the country, but in the good direction. Maybe we can see a surprise in the cereals going to zero, that won't cost so much.

We expect for next year maybe going to that direction and keep reducing the soybean for the future. That's what Milei announced at the beginning, and he's began from the 33, now he's in 24.

He's going in that direction. The other main achievement of the government in the right part of the graph, the big gap of the past between the two dollars, the official and unofficial.

Now the two the the blue and the orange going close to almost together. The farmer is decreasing taxes and receiving almost the official and the unofficial dollar at the same.

What is that affects? Now farmers are really receiving dollars and the taxes are decreasing.

This is affecting the liquidity for the agriculture and cattle areas. We are seeing more liquidity.

We didn't announce up to now six months any real estate operation, but we think we are going to close the year having transactions on the region. We keep that on mind, and we think we are going to achieve the normality.

In Argentina, more than normality, that Argentina was close to zero the last one, two years. Now we expect some transactions, too.

In Paraguay, but in Brazil, because the liquidity is still there. Apart of these two big news, taxes reducing and the gaps between the two dollars, there were two news: one is related to US, US, and one is European Union, and the third one is China.

Related to US, United States establish a new framework to bilateral to Argentina, Argentina is very close now in the relation with US, and that will improve access for beef and other markets, mainly for beef. They are expecting going from 20,000 tons to 100,000 tons.

Related to Mercosur, that will improve Hilton quota to South America, to Argentina, too, but this was not signed. Finally was delayed, was approved, but we need the the the agreement to the rest.

The regulatory and parliamentary is not approved still, we need to wait for that. The US is almost done.

China is the third, that China improved what was Argentina from 400,000 tons to more than 500,000 tons, improving 17% what we are now exporting to China, but reducing to other countries, to mainly to Australia, mainly to Brazil, and improving to Argentina, Uruguay, and United States. The three effects for beef are affecting, and probably on next page, we can see the evolution in the page number 7, evolution on the price of Argentina.

Argentina was very bad on prices in the past, was the lowest, but now recover. Today, between the four countries, Argentina, Uruguay, Brazil, and Paraguay, Argentina is in the highest because of the quality of Argentine beef.

We see that Cresud was preparing, and now we are improving our production. From the '23, we were 7 million 7 million kilograms, 7,000 tons of beef.

Now we are going to this year to 10.5 thousand tons, 10.5 million kilograms. With almost the same stock, what we are doing, we are rotating more the cattle, we are improving our facilities of pastures in the agriculture areas, and we are doing more feedlot.

We are rotating and producing more intensively, that is very profitable, and it's bringing very good results, as Matías will show you later in the balance sheet of Cresud. We see in the in the graph on the right that the stocks in Brazil were growing the last 20 years, but now beginning to decrease from 194 to 186 million heads.

In the rest, in US, Australia, and Argentina, decrease on the stock. The combination of decrease of the stock, decrease of the cows, and improving demand of cattle that the population is having is making that increasing price and benefiting our company in in cattle work, that And now you see the two feedlots that we are doing.

We are investing money in the two feedlots in Los Pozos and in El Tigre, and we're going to have like two two feedlots of 10,000 of of capacity, instantaneous instantaneous capacity each of them. That will mean like 50, 60,000 heads per year in in feedlots, apart of raising cattle and fattening in the middle.

We are probably one of the largest in this raising cattle with bulls and having the and and fattening in the middle, and feedlots later. We are benefit not having more the packing plant like in the past, but having big stock, making a lot of money in in in all the activity.

Saying that, the other state of Cresud that we always talk: production, one side; real estate, no news in the first half; the third is FyO. FyO evolution on the year, we are closing We closed last year with 7.6 million tons of traded tons on FyO, representing 6.5% of total Argentina crop harvest.

Through advisory, specialties, credits, capital, trading, and now BeyondG, that is our branch we are opening in Brazil, that this last year did 300,000 tons, small amount comparing to close to 8 millions of Argentina. In Brazil, a lot of room to grow.

Brazil, it's more than double Argentine crop size, we are expecting Beyond to replicate the story of Argentina. This company is making a very relevant EBITDA.

Here we see the last four years, in a $26 million EBITDA. Last year, with the official dollar, that is very close to the the blue chip.

In the past, the gap was here, but now with the 26 millions and $26 million. Here we see that this company recently issued two bonds at close to 8% cost.

Very relevant company, servicing farmers, not light light in assets, and doing this mission in South America, not only in Argentina. We expect this company to keep growing as they were doing BrasilAgro and Cresud.

Saying that, I will now give the word to Matías Gaivironsky.

Thank you, Alejandro. Good afternoon, everybody.

If we jump to page 9, we can see the main highlights of our investment in IRSA. Remember that today, after the payment of the dividend that we pay in shares of IRSA, our stake went to 51.6, and we are planning to exercise the warrants that Cresud has from IRSA, so that stake will recover to levels of 55% again after the exercise.

During the semester, we saw a positive result of 248.8 billion pesos, compared with a loss during the last year. This is mainly attributable for the gaining the fair value of the investment properties.

Then if we analyze the results from malls, offices, and hotels were positive compared with the previous year. We saw a recovery in revenues and EBITDA in shopping malls, 2% against last year; in offices, 15.5%; and in hotels, 44.8%, due to better margins and rates.

Also, IRSA signed two new transactions on Ramblas del Plata, we already signed 15 different transactions for 15 plots of lands in Ramblas. The progress of the commercialization is excellent.

Also IRSA tapped the international capital market again during December, we increased the size of the notes that we issued in March, we increased by $180 million that will expire between 2033 and 2035. Finally, IRSA finished the payment of the dividend that was 10% yield during November.

If we go to next page, we can see that during the semester, we have a real devaluation of the exchange rate. Remember that last year, there was an appreciation.

That generates two important effects on our balance sheet. First is the negative impact on our dollar-denominated debt that when we have to convert those dollars into pesos, that generate a loss.

On the other side, on the fair value of the investment properties, since we have much more assets in dollar than debt in dollar, that generate positive results in that line. Regarding the operational side, I already said what happened about IRSA.

About Cresud, we see a drop compared with the previous year. This is basically attributable to the farmland sales.

Last year, we had two transactions that generated gains for up to a 40.8 billion pesos, and this year, we haven't closed any transaction yet. That is the main difference.

If we see the different lines, remember that in the grain line is not so significant this semester. We will have the results going in the coming two quarters.

We see a positive evolution. This is basically a result from Argentina because of exchange rate and because of better prices, and lower results in Brazil, mainly driven by the cotton activity.

In sugar cane, as Alejandro mentioned, compared with the previous year, we have a drop in the results, with a negative result this semester, that we expect that to recover in the coming two quarters. That it was basically because of some climate conditions in Brazil that affect the production.

Regarding cattle, as Alejandro mentioned, we have positive numbers. We see here a drop compared with the previous year, but this is basically related to Brazil activity, since we have lower stock of cattle there, so that decreased the production, but very positive numbers in Argentina, where prices increased much higher than inflation and production was very positive.

Going to next page, with all those drivers about IRSA, Cresud, and FyO, we finished the semester, excluding the change in the fair value, with similar numbers than the previous year. The main effect of this semester came in the line of fair value of investment properties, basically from IRSA, that we can see a very negative numbers last year of almost 300 billion pesos, and a positive number this year, 140 184 billion pesos, that if we analyze the numbers this year in dollar terms, prices of our properties remained stable, but when we convert those dollars into pesos, that generate this important positive number.

About the other effect that came in the line of the net financial results in the first line of the table, we can see the net effects result that last year was a positive numbers of 48 billion pesos, this year turned a negative number of 45 billion pesos, and that is the main effect on this year, the second big effect we see here. With all these different numbers, we finished the semester with a net result of 183.9 billion pesos, attributable to our controlling shareholders 74.4 billion pesos.

About the debt, remember that this year we had some amortizations that basically are in March. For that reason, we went to the local capital market in December and January, and we raised almost $117 million in two series: one for a three-year tenor, and the other in one-year tenor.

One year was an interest rate of 5.75%, and the other, the three-year tenor, at $7.25 million. With that issuance, we already have all the proceeds that we need to cancel the debt this year.

Regarding dividends, as Alejandro mentioned, we finished the payment of dividend that we paid part in cash, part with IRSA shares, and part was a shares that we did a buyback in the past. Cresud paid around $63.7 million this year.

Something else to add is the warrants expiration. Remember that in 2021, Cresud did a capital increase that had warrants attached to those shares, and those warrants will expire next week.

The last window opportunity to exercise the warrants will go from the 17th of February to 25 of February. We expect the shareholders will exercise the warrants.

According to the shareholders' meeting, we included a cashless option for the warrants, the warrants are deep in the money, there was an option also to exercise in a cashless basis. Basically shareholders will receive the difference between price of the shares in the market and the exercise price of the warrant.

That will happen in the next 10 days, 15 days. With this, we finish the formal presentation.

Now we open the line to receive your questions.

Ok,

let's answer the first. I think Brazil is in a special moment.

Politically speaking, this year, now we are in '26, this October is election time, presidential election time. There is doubt if Lula or a center-right is going to come to government.

I think it's an opportunity. Brazil sounds like the capital market is expecting, and we can see that from the currency, the exchange rate of the real, how was at 6 and now it has 5.20.

Some expectations of the capital market in a good direction of Brazil. Yes, I think it's a good opportunity, Brazil market.

Shares of BrasilAgro, for sure, BrasilAgro always speaks about what's the amount of the value of the land that the company owns, some valuations that company gives. Apart of that, there is a big land lease that we never make this calculation.

The combination of owned land and leased land makes a big discount in the price of the share of BrasilAgro. Yes, for sure, Cresud owns 35% and is always thinking if to improve or not.

We have big stake, we began with 7%, we have today 35%, and we are optimistic on Brazil's situation.

Yes, Cresud will exercise the warrant definitely. The idea is Cresud will do it on a cashless basis because basically when we analyze liquidity at IRSA level, there was significant liquidity after the issuance of the bond.

IRSA has more than $300 million in cash, the idea is that Cresud will do it on a cashless basis. After that, Cresud will increase again to levels of 55% our stake in IRSA.

I think the main impact is in beef in the two directions, in the European. Probably the conditions of European Hilton quota and the American is less strict in the health conditions and the quality of raising the cattle.

The two are positive for Argentine farmers. Each farmer decides to which countries selling, to the packing plants that is selling to those countries.

The two are improving. The Hilton that was thinking doubling, in the case of US, five times the existing volume.

I think the two traits are benefiting cattle raisers in Argentina. Yes, and in the rest of the products, I'm not sure if it's going to impact a lot in the soybeans or corn, other two main products of Cresud.

This is very political question. This is mainly France and other farmers of Europe.

Logical would say, let's try to be better global and produce what is more logical and beneficial and more efficient, but political is political. I would not do that.

They approved a small portion, important, relevant, but the final portion was not approved. I think the American is close to be closed.

This is easier to be approved.

I think the Argentina is a very good place to learn how to survive in scarcity. Imagine farmers with these taxes on exports, with these gaps on the dollars, were receiving very small amount of dollar to survive.

What do you say with that? You have to be scarce with water and with the money, because you're receiving much less than the other farmers.

We learn how to rotate less the land, to cover crops, to improve the efficiency of the lack of water, and to be using lower inputs, sometimes not fertilizing the sufficient that the land needs. I think the next step will be, for Argentinian farmers, in the meantime that Brazilian farmers or American farmers with the $10 or $11 of soybeans are suffering, we, with 24, are making money.

The new thing that it's coming to the world to the producers, the farmers, is the variable use of the inputs that it's coming. What does it mean?

We are putting the machinery with some equipment that makes variable use of seeds, of herbicides, of pesticides, and fertilizers. With that, you are going to keep using the place that you need, not using in the 100% of the lot, deciding and using less variable cost.

Argentina is going very fast, and Cresud and BrasilAgro. We are now covering all of our farms, and Majority of the seed going to the corn is variable in Argentina, for sure.

In Brazil, it's beginning. There it's less use, but it's more use in the rest of the inputs, crop and insecticides and herbicides.

Variable costs are decreasing to compensate the lower margins because of this new prices. Starlink and other technologies coming to the region is allowing to use this variable cost of inputs.

I hope I was clear. If not, please ask me again.

Fertilizers affects more Brazil than Argentina, because in Argentina, the land is much more rich, we fertilize much less than what we do it in Brazil. Prices, and if war comes again, that will be affecting again, more probably to Brazil.

Again, it's part of the cost of farming, and if this goes up again, will affect for sure farmers of the world. We give 1, 2 seconds more for any additional question that you may have.

You can use the chat or raise your hand. There is no more questions.

I will now turn the call back to Mr. Alejandro Elsztain for his closing remarks.

We close the first half of the year. Now comes the main activity in all, because in cattle, too, cattle is majority of the kilograms done by the farm, not the feedlot, is very positive, too, the second half.

The rest is the summer crops for Brazil, for Argentina, for Bolivia, Paraguay. We are optimistic on that.

With this low prices, understanding, and the company is really getting low margins, no subsidies on the region, still taxes on Argentina. Liquidity is coming to Argentina because of this big changes on the market, and I'm optimistic that we're going to show in the second half some results related to real estate, too.

I'm optimistic on the balance sheet of Cresud and having the real estate results, too. We are in a good year.

Argentina is plugging to the world, and the world in the agriculture is suffering what, but we are in the more benefit region, very profitable and very good in yields, we are having very good time. Just to thank you very much, everyone, and let's see next quarter.

Thank you very much. Thank you.