CRESY

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud. 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 slide show 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 risk and uncertainties. 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.

Good afternoon, everybody. We are beginning the highlights of the first nine months of 2026, and we are progressing a very good campaign that it's a record planted area between owned and leased and with favorite conditions. We're 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 the price of commodities, but input costs, too. That is making margins not to be so profitable, but still very good for the year, and but the last two months, we began to see a bad context to fertilizers and fuel that is damaging farmer condition because of the cost of inputs. Related to Argentina, we had 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. We are surpassing the volumes of the past for all the history of Cresud 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 sugarcane of 2025 that was damaged because of frozen and drought, the combination of the two, that made to suffer the operational business of BrasilAgro mainly, that affected some yields in some regions of Brazil. Related to livestock, this year is a record for the history of Cresud, 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 not sales, but there was a subsequent sale in the fourth quarter for a small portion in Paraguay, 921 hectares, but usually, net hectares are 500 hectares for $1.5 million. Small fraction of sale in our Paraguay operation. Related to capital markets, we are very active during this quarter. The whole year, we did $181 million on notes issuance on Argentine capital market and lowering the cost of financing of Cresud and extending the tenure of the debt.

Saying that, we can move now to page number three. We can see the increasing surface of agriculture in the planted area evolution. We passed last year in 4% in size in hectares planted and the combination of the four countries. We can see the breakdown of 50% soybeans, 27% of corn, 9% of sugarcane. If we move to 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 Brazil, is close to zero. Really, there is not a big effect of increasing prices in South America. It's a Chicago and South America combination. It's all would say it's almost flat to farmers in the region.

The good part, it's mainly because of the yields that we are achieving, and we can move now to next page. We had very good conditions on climate. In the wheat, we had more than 10% surpassing our forecast, our budget, and we are expecting good yields in the soybean and corn. Soybeans in some countries is done. Brazil finished and was very close to budget, a 1% drop, so zero. In Argentina, we are almost the same. This year is good in yields and in prices, not big, there is in soybean is good, little less in other crops. We have a good combination. The operational combination on the region is really very good in the highest size of our history. We are going to see forecasting part of the balance sheet of the year.

We are going to see a very good operational business, mainly in Argentina. Here, we can see that we finished harvest in Brazil. We finished harvest in Bolivia. In Argentina, few weeks ago was at one, now we are advancing a lot. We are going to finish in 15, 30 days, we are going to finish Argentina crop in soybeans. The corn is the more delay that we'll need up to July, August to finish. The conditions are good, enough good, and good conditions for next campaign too. Now, in our autumn we are recovering a lot of water in Argentina, mainly Argentina, we are going to plant a lot of winter crops too. Operational business of agriculture, very positive. If we move to the forecast here, we see we are forecasting an increase comparing to last year of 22% in total crop production.

From the 829,000 tons, we are forecasting 1 million tons, our record in production in our history, in the combination of the region, Argentina and the region. In sugarcane too, here we are forecasting the sugarcane of 2026, comparing 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. We are much hard, high in crops and in sugarcane for the year. We can see when we compare corn, we went from 550 to 593. In the soybeans, 260 to close to 90. This is the combination of first soybean, second soybean of the whole region. In the combination of the region, we have a very important increase.

We see 13% in Argentina, 5% in Brazil, 65% in Bolivia and Paraguay, a big increase. We are going to normal, 2.58% in Paraguay, 178 comparing to bad year of last year in Paraguay. 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 region too. Highest in volume and in yield of the history. If we move now to 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.

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 is not. Still it's going down to a 51 million heads in Argentina, and the prices are flying, and with those prices and achieving very high productivity, 10.7 million kg. Big production having not so big stock, but very efficient. We are expecting a very, very profitable year. Here we're putting the production forecast, but the margins are really incredible, the highest of the history of cattle business in Argentina.

Here we are expanding our feedlot in Artigas, La Pampa, we are increasing the volume on the cattle business in Argentina because of the combination of very good price and low price of the inputs of the, mainly the grains, making a very profitable activity comparable to agriculture. Today, Cresud, and probably in the fourth quarter, we are going to show the expansion and the evolution of the cattle business that is making a much more comparable than in the past to the agriculture. Not even, but very comparable in margins. Saying that, we can move now to page number eight, and looking at what is happening in FyO, our company, service company and commercial company, where Cresud own 51%. We are expecting to keep growing.

The forecast was 7.60%, we think that Argentine crop will keep growing and FyO will keep growing from this number too. Representing a big portion of Argentine volume through the trading volume, no? This company is servicing farmers in advising them, helping in capital, in all kind of inputs and outputs for the farmers, and making an EBITDA of $35 million of last four years. We are expecting to have a comparable number this year. With that proceeds is not only doing the business in Argentina, inputs and outputs. We can here see the Biond is the Brazilian name, and this company is going to 0.5 million tons of volume in Brazil. It's expanding globally in the South American region.

These companies keep growing in a very fast pace. Saying that, I will now introduce to Matías Gaivironsky to explain us about the investment in IRSA that Cresud owns.

Thank you, Alejandro. Good afternoon, everybody. When we move to page nine about our investment in IRSA, remember that Cresud today control 53.44% of IRSA, but after the exercise of the warrants on a fully diluted basis, we will have 55%. IRSA during this nine-month period posted very good numbers with a net gain of ARS 239.7 billion, with all the lines growing in real terms against last year, shopping malls increase in revenues and EBITDA, the same in the office and the hotel portfolio. The hotel, 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, adjoining, just adjacent to the Mercado Libre, the Zetta building in Polo Dot.

IRSA already signed an agreement with Mercado Libre that they will rent most part of the building. Regarding Ramblas, the main project of IRSA, we continue with the development and the commercialization of the different plot of lands. During the quarter, we signed two additional lots. We already signed 15 lots, plus two lots that we sold in cash. As you can see in the graph, the evolution or the increase against last year on the rental segment was 3.5% in real terms. Going to the next page. To understand the results on our balance sheet, you have to understand the drivers on inflation and devaluation, what is impacting in our numbers.

As you know, we have to adjust our balance sheet by inflation, while our revenues in most part of the business line in the agriculture business is more related to dollars. In this nine-month period, we have an inflation that was 55% against the devaluation that was 15%. That generate a lot of distortions that I will try to explain. Many are related to that. If we probably post numbers or results in dollar terms will be completely different. Going to the next page, you can see that regarding the operational results on the agribusiness, 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 this year, we only sold small portions. We already signed one, but the result will be posted in the next quarter. 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 adjust all the costs via inflation and the income that we are estimating in part of the goods, we haven't finished the harvest. Also, we will see final results in the next quarter, but some are impacted by this effect on an estimation in prices and adjusting the cost by inflation.

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 not the are lower than the previous year, so we are not posting a loss because of that. Regarding the sugarcane, as Alejandro mentioned, during this period, we have an impact in yields because of weather conditions and also increasing costs of production. For that reason, we have this loss. About the cattle segment, as well, we have very good numbers in yields, very good numbers in price. All the drivers are very positive.

When we express the numbers in pesos term, we are not seeing the same results that 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 IRSA. IRSA has to value every quarter the investment properties, the shoppings, the offices, and land bank in fair value. Last year, because of the evolution of the inflation and devaluation, there was a drop during last year. This year, we see a positive number because we revaluated part of the malls 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 FX result that, since we have much lower devaluation than inflation, that generates a positive number. This year, ARS 146.1 billion. 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. In Cresud, it's stable, but last year, the composition was a little.

Of the debt in ARS term, we valued or we adjust that by inflation. You have to segregate inflation from the interest rates. For that reason appears to be lower than what really it is. With all these drivers, we finished the nine months period with a gain of ARS 231.3 billion attributable to our controlling shareholders was ARS 121.6 billion compared with last year, ARS 77.3 billion. If we move to next page about our debt, the net debts remain stable, but was a very active quarter regarding our financial activity. We took an advantage of market conditions. We decided to move forward refinancing most part of the upcoming amortizations for this year and almost the next year.

We issue $181.4 million in different transactions for four different tranches with interest rate that goes from 4.75% to 7.25%. With this, we extend the tenure of our debt and also reduce the interest payment for the future. Also during the quarter, finally, there was the expiration of the warrants that we issued in 2021. Almost all the warrants were exercised, and today the total shares outstanding are 709 million shares. We haven't any more warrants outstanding. 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 gonna take the questions in the order we receive them. Here we have the first question related to hectares that we own in Argentina excluding BrasilAgro, 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 agriculture of Argentina, we can see in page number three, Argentina is close to 150,000 hectares. From those it's almost half and half the owned and the leased. That would be a good breakdown of 50/50 in Argentina. In Brazil is a little bigger, the leased to the, I would say 60/40. In Bolivia it's almost all owned, Paraguay 100% owned. Talking about agriculture to total. In Argentina is close to a 50/50. From the 150/75, almost that.

Thank you, Alejandro. A question regarding, from BTG Pactual 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. 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 gap 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 on the price of the land. I would speak about a small decrease in the American U.S. prices, a bigger decrease in Brazilian, but a recovery in Argentina because of the disconnection of 2013. At the same time, the price of the land is decreasing at 5%, 10% or more in Brazil, that it's suffering a lot.

In Argentina, there is an increase, and if we talk about searches on the price of the land, they talk about the corn belt of Argentina moving from the 13,000, 14,000 dollars to the 50% increase, I would say, in the corn belt of Argentina. Transactions and liquidity is increasing. Many investors from abroad and from Argentina are deciding to go to the asset that is very discount. There were no transactions the first nine months. We expect the last quarter. There are some other transactions under discussion. I'm very optimistic on the liquidity on the real estate business of Cresud. Not having the first nine months, but I'm very optimistic. In Argentina and in Brazil, there are some regions that they are very, they are very big on the radar, mainly because of the irrigation projects.

A very big interest in Bahia region. I'm expecting for the next three quarters, many transactions on the real estate. We had very good nine months of the production. I think real estate is bringing back and some probably purchases in Brazil in some more areas that they were more damaged in prices that Cresud, BrasilAgro is going to buy.

Thank you. There are some questions regarding stakes and the different subsidiaries of Cresud. I will try to answer them, summarizing. There are questions regarding the warrants exercise of Cresud in IRSA. Currently, the stake is 53%, but after they fully exercise, in the last window that is coming in the next week, it's gonna go to levels of 55% stake. Regarding BrasilAgro, the current stake is 35%. Banco Hipotecario, that 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.

There is a question here related to the general outlook, the political situation and elections comings, and also the free trade agreements that Argentina is negotiating with the U.S. and Mercosur with the EU with Europe, if will help and will boost the sector.

Yes. I think macroeconomically speaking, Argentina is making a very good job. Between the taxes reduction that began, not was done, a promise of the government that we'll keep doing. We went from the 33% to the 24% in soybeans, a 20% decrease. The gaps on the dollars was dramatic. It's close to 0% or 1% or 2%, but it's coming from 100% or 170%, it's close to 0%. The sector is spending very good time with the promise of keep reducing taxes. The government, I think, carefully is not giving that before the raising the activity or raising the amount of taxes through other things. The farmers are waiting patiently without a problem.

From other side, the government signed with U.S. and signed with the European Union two trade agreements that help mainly in the cattle business, increasing from 20,000 tons-100,000 tons in the two cases, volumes increasing 80,000 tons of volumes with no taxes that will support a lot the activity for the cattle, and helping all the mission of agriculture for the country. This government understand the importance and is reducing on time. Yes, many good measures. China increased the volumes from Argentina from 400,000 tons, it's going to 500,000 tons. All of the measures and rules that are coming to farmers are good. 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 of 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 Cresud owns close to 17% of the shares, is 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. The company, it's very close to breakeven. After many reorganization, this company grew a lot through capital issues, but finally understood that 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.

This company is one of the survivors on the digitalization world of the agriculture. Still with a challenge. It's not positive as FyO is, making a $20 million-$25 million EBITDA, but Agrofy 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. If we survive and we keep organically using the AI, this company has a lot of AI applied. We expect this company to be one of the players helping farmers to reduce costs and comparing to other companies. We are optimistic that past the worst part of the wave, and it's close to breakeven. 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 in the very tough situation for many parts of the world in agriculture. Our company, having 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 farms in the case of Brazil. We are in a very good condition to take advantage of these opportunities that are appearing. 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.

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. First of all, 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 now going to introduce the results of the second quarter of 2026. We can see in page number two the main events that happened in this first half year. First of all, the conditions on the weather were okay, better than last year, 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. 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 U.S. and South America. Finally, higher cost of inputs, lower margins comparing to last year's, 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 wheat, mainly for our winter crops, we had achieved a better yield comparing to what we expected when we plant. It was like a 10% higher comparing the time we planted. That was a combination of good yield and more use of fertilizer in Argentina. We began the yield related to all the agriculture for the company, the first half in a positive way, but in the meantime, prices of the wheat were not so good.

We had better yields. Still now majority of that was not sold. Now we are beginning to sell. 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 the corn that they are coming for the second half. We are in good shape, waiting for more rains for the future. Related to BrasilAgro, we had lower production results and that was explained mainly because of sugarcane. We had some cases of some things affecting the yields of sugarcane that mainly affect the first half of the year in Brazil. 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 of the prices related to this. Argentina, with a very big stock and much more investments on cattle, we have very good results in the first six months. We are improving our feeders in south in 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 ARS 93 billion, close to $64 million. 70% was in cash, 30% in kind, in issue 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 three, and we can see what it was the final planting area. A little drop from the last presentation last quarter. We dropped, like, 6,000 hectares between the four countries. 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 planting 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 are presenting 333.4. 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 of the prices.

The 10 two main products, soybean and corn, where we have the two main activities in volume, plus the sugarcane, 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 of the prices. The last 14 years. 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 production and still farmers of the region are making good without subsidies for sure. In Argentina, still with taxes on exports.

In the graph below, I wanted to show this state of changes because Donald Trump announcing China battle or China realignment. Look at what is happening with Chicago Board of Trade of the price. We see jumps. The time that the jump comes to the price of Chicago, the premium to Brazil goes down. Exactly the opposite, when the price goes down, premium to Brazil goes up. Finally, South America is very balanced. It's not changing its price in dollars. This is affecting mainly South American prices. Some small changes because of the China and U.S. relation, but finally not changing the very good trade that the sector is spending and the recovery of the stocks that we are looking at the last years.

I wanted to share 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, this is making small margins, and we are having good margin, small margin. This year we are expecting smaller and in a bigger scale because of the expansion of the lands. In the next page, we can see that the weather is in a 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 and Brazil. Brazil, the corn is little late.

This is corn mainly of Safrinha, second corn, and this is a little delay, and 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 here up to now, up to end of January. Understanding that majority of soybean and corn will come from now in Brazil, it's 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 July, August, September. We are in the middle of the good time of the summer crop. That is the mainly more important for the company.

We can move to next page. 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 it's begun from 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 blue and the orange, going close to almost together. The farmer is decreasing taxes and receiving almost the official and the unofficial dollar are 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're 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 $2, there were two news. One is related to U.S., and one is European Union, and the third one is China. Related to U.S., United States established a new framework to bilateral to Argentina. Argentina is very close now in the relation with U.S., and that will re-improve access for beef and other markets. Mainly for beef, they are expecting going from 20,000 tonnes to 100,000 tonnes.

Related to Mercosur, that will improve shift of quota to South America, to Argentina too, but this was not signed. Finally was delayed, was approved, but we need the agreement to the rest, the regulatory and parliamentary is not approved still. We need to wait for that. U.S. 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 the United States. The three effects for beef are affecting and probably on next page, we can see the evolution in the page seven, evolution of the price of Argentina.

Argentina was very bad on prices in the past, was the lowest, but now recover and 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 33, we were 7 million, yeah, 7 million kg, 7,000 tons of beef. Now we are going to this year to 10.5 thousand tons, so 10.5 million kg. 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, so we are rotating and producing more intensively.

That is very profitable and it's bringing very good results, as Matthias will show you later, in the balance sheet of Cresud. We see 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 U.S., Australia, and Argentina, decrease on the stock. The combination of the decrease of the stock, decrease on the cows, and improving demand of cattle that the population is having, is making that increase in price and benefiting our company in our retail cattle group. Now you see the new feedlots that we are doing. We are investing money in the two feedlots in Los Pozos and in Deauville.

We are going to have, like, two feedlots of 10,000 of instantaneous capacity, each of them. That will mean, like, 50,000-60,000 heads per year 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 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 all the activity. Saying that, the other step of Cresud that we always talk, production one side, real estate, no news in the first half. The third is 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 Beyond, that is our branch we are opening in Brazil, that this last year did 300,000 tons. Small amount comparing to close to 8 million of Argentina. In Brazil, lot of room to grow. Brazil is more than double Argentine crop size. We are expecting Beyond to replicate the story of Argentina. This company is making a very relevant EBT. Here we see the last four years. It is $26 million EBT. Last year, with the official dollar, that is very close to the blue chip. In the past, the gap was here, but now the $26 million and $26 million.

Here we see that this company recently issued two bonds at close to 8% cost. Very relevant company servicing farmers, no 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 Matias Gaivironsky.

Thank you, Alejandro. Good afternoon, everybody. If we turn to page nine, 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 the stake will recover to levels of 55% again after the exercise. During the semester, we saw a positive result of ARS 248.8 million compared with the loss during the last year. This is mainly we are attributable to the gaining the fair value of the investment properties. 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%, in hotels, 44.8% due to better margins and rates. IRSA signed two new transactions on Ramblas del Plata. We already signed 15 different transactions for 15 plot of lands in Rambla. The progress of re-commercialization is excellent. 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 it will expire between 2033 and 2035. Finally, is finish the payment of the dividend that was 10% yield during November.

We go to next page, we can see that during the semester, we have a real devaluation of exchange rate. Remember the 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 dollars than debt in dollars, 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 farm and sales.

Last year, we had two transactions that generated gains for up to ARS 40.8 billion. This year, we haven't closed any transaction yet, that is the main difference. If we see the different lines, remember that in the green line is not so significant this semester. We will have the results in the coming 2 quarters. We see a positive evolution. This is basically results from Argentina because of exchange rate and because of better prices, and lower results in Brazil, mainly driven by the cotton activity. In sugarcane, as Alejandro mentioned, there was, compared with the previous year, we have a drop in the results with a negative result this semester, 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. This is basically related to Brazil activity since we have lower stock of cattle there, so that decreased the production. Very positive numbers in Argentina, where prices increased much higher than the 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 ARS 300 billion and a positive number this year, ARS 184 billion. That if we analyze the numbers this year in dollar terms, prices of our properties remain stable. When we convert those dollars into pesos, that generate this important positive number. About the other effect that comes in the line of the net financial results. In the first line of the table, you can see the net effects result that last year was positive numbers of ARS 48 billion. This year, generate a negative number of ARS 45 billion, and that is the main effect on this year.

The second main effect this year. Well, with all these different numbers, we finish the semester with a net result of ARS 183.9 billion, attributable to our controlling shareholder, ARS 74.4 billion. 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 tenure and the other in one-year tenure. One year was an interest rate of 5.75%, and the other, the three-year tenure, 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 shares that we did a buyback in the past.

We, Cresud pay 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 25th 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, so there was an option also to exercise the 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.

Now is the time for the Q&A session. If you have a question, please, click the button labeled Raise Hand or use the chat. We will take the questions in the order we receive them. I think we have some in the chat, at this point. The first one is related to our stake in BrasilAgro. What is your view on the rather depressed share price of BrasilAgro? Would you consider increasing your shareholding? This is the first one from this investor. The second one-

Uh, I will-

Okay. Let's answer the first.

I think Brazil is in a special moment, politically speaking. Now we are in 26. This October is election time, presidential election time. There is doubt if Lula or the 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 BRL 6, and now it's at BRL 5.20. Some expectations of the capital market in a good direction of Brazil. Yes, I think it's a good opportunity, Brazil market, and 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 the company gives. But apart of that, there is a big land lease that we never make this calculation. The combination of own land and leased land makes a big discount on the price of the share of BrasilAgro. Yes, for sure. Cresud owns 35% and is always thinking if to improve or not. We have a big stake. We began with 7%. We have today 35%, and we are optimistic of Brazil's situation.

Thank you. The second question is related to the warrants. Are you going to exercise your IRSA warrants or exchange them in the newly introduced cashless option? Are sufficient funds available to fully exercise the warrants?

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 the 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.

Thank you. Our next question comes from Gordon Lee from BTG. Are there any provisions or conditions in the trade agreement with the U.S., or the FTA with the European Union that have direct implications, positive or negative, for the products that you focus on?

I think the main impact is in beef, in the two directions, in the European. Probably the conditions of European, it's Hilton Quota, and the American it's less, 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, and it's selling to those countries. The two are improving. The Hilton, we're thinking like doubling. In the case of U.S., 5x the existing volume. I think the two trades are benefiting cattle raisers in Argentina. Yes, I think, I mean, the rest of the products, I'm not sure if it's going to impact a lot in soybeans or corn, are the two main products of Cresud.

Again, there's a question. I don't know if it is for us, but what is the chance of the Mercosur agreement with Europe being ratified, and when could that happen?

This is very political question. This is mainly French 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. It is easier to be approved.

Thank you. One more related to commodity prices. If commodity prices stay low, what step will you take to lower operating costs to be operationally profitable or more profitable?

I think Argentina is a very good place to learn how to survive in scarcity. Imagine farmers with these taxes on exports, with these caps 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 are 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 $10 or $11 of soybeans are suffering, we with $24 are making money.

The new thing that is coming to the world, to the producers, the farmers, is the variable use of the inputs that it's coming. What does it mean? Now we are equipping, 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 to using in the 100% of the lot. Deciding and using less variable cost. Argentina is going very fast, Cresud and BrasilAgro. Now we are now covering all of our farms and majority of our machineries that are working on our farms and using majority of the seed going to the corn is variable in Argentina for sure. In Brazil, it's beginning.

There is less use, but it's more used in the rest of the inputs, crop and insecticides and herbicides. Variable costs are decreasing to compensate the lower margins because of these new prices. The technology is allowing 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.

There is one related to fertilizer prices. How are affecting Cresud, up, down lately?

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. If this goes up again, will affect for sure farmers of the world. We give one or two seconds more for any additional question that you may have. You can use the chat or raise your hand. Okay, if 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 feedlots, so it's 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 these low prices, understanding and the company is really claiming low margins, no subsidies on the region, still taxes on Argentina. Liquidity is coming to Argentina because of these 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 plugged into the world, and the world in the agriculture is suffering.

We are in the more benefit region, very profitable and very good in yields, so 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.

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the third quarter of fiscal year 2025 results conference call. First of all, I would like to remind you that a replay of this webinar, the presentation and the earnings release will be available on our website at www.cresud.com.ar. After management remarks, there will be a question-and-answer session for analysts and investors. [Operator Instructions] 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 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.

Good afternoon, everybody. Let's begin in Page #2, the main events for the third quarter of this year. And we are in a good campaign, I would say, comparing to last year, it's a bigger campaign. It's bigger planted area comparing. And the main reason was the more listings on the region in Argentina and in Brazil, and we expect to keep growing in leasing for next year, too. Related to climate, there was an average good climate in the region. The only part that didn't receive good rain was mainly Argentina in the North and Paraguay. Paraguay, as Argentina suffered some drought on the summer, and that impacted the yields on the summer crops. In the rest were generally good weather conditions. Related to the commodity prices and the input costs, we are seeing a stable -- I would say, stable price time of the -- mainly in the soybean, some rebound in the corn, I will show you later. And the cost was stable, too, and we are expecting a reduce in the next campaign on costs. We have seen something that is very important to Argentina that is the removal of capital controls that is reducing the gap of the $2 that we had in the past, and we are going to see what important is the impact for the future for the Argentine results. Related to BrasilAgro, we are being in the middle of good productive results, mainly in sugarcane that has much better yield and prices of last year. And the rest of the crop, better in corn but worse mainly in soybeans and cotton. And related to real estate in the first 9 months, we are seeing only in the first quarter sales that there were small sales in Los Pozos and Alto Taquari in Brazil but recently, in the last quarter, we didn't reflect any sale. But we are expecting for the next quarter, next -- before the end of the year. We can move now to Page #3. And here, the evolution on planted area in the country's comparison, Argentina still seeing the biggest of the region. Brazil keep growing, mainly leasing, as I said, Bolivia and Paraguay and the breakdown of soybean 50%, 24% of corn, 9% of sugarcane. Sugarcane with this 27,000 hectares is really relevant in the time of the yields and the results and wheat and others. If you can move to the next page we can see in Page #4, the recovery on the commodities and the input recovery and cost correction. Here, we see in the evolution of soybean, prices of today are comparable to before COVID and adjusted by inflation are worse than before COVID. If you adjust prices of inflation, today, what is at 10, in the past was more than 11. So we are below that. But these days, we are seeing some beginning of the rebound on the price of the soybeans. And we can speak about what happened this weekend between China and U.S. and this is impacting the prices for commodities for sure. We are seeing because of 2 reasons. One is the tax reduction of the tariffs went to 10% of China. And this is going to make, again, Chicago more relevant. And we are seeing today that rebound and the bases are going to be affected too bases of South America that very, very high are decreasing these days because of the more important price of Chicago again, more trading for the future related to U.S. So -- but generally speaking, I think the impact of the weekend is going to affect oil and the oil is very, very correlated to the commodities and oil probably is affected because of there are not more recession expecting for world. The world was expecting a big reduction on sales on the oil trading and probably after this weekend is going normalizing the markets of the world and probably affecting commodity prices and probably what I expect is rebound on commodities but less paces on South America than they were. And in corn, there was a rebound through this year, and we are seeing a better yield and better margin to corn in South America because of this comp rebound of 28% of the last year. So generally speaking, a better environment for commodities for the campaign. We can now move to next page in Page #5. And here, we can see the evolution on capital controls and FX convergence. I think this is the more relevant move for Argentina. And if I would have to speak about taxes on exports and caps on the dollars, I think it's more important the second. And the government announced a few days ago, that there is -- for the future, it's close to 0 the gap, today is 2%, 3% but the official dollar is close to 0 to the blue chip in Argentina. At least for farmers and always is good example where at the price of $500 in the U.S., it was the soybean in the times of $17 per bushel, the price of the U.S. was $500, at the farmer at that time in the combination of the 33% taxes on exports and the gap of the dollars was collecting 170. Today, the farmer of Argentina is collecting 270 for next campaign, the price at 290. So we are adjusting to the prices of U.S. today, the gap is 36%. Taxes on networks are reflecting 36% and the gap is close to 0. So this is very relevant to the prices of the commodities in Argentina and to the prices of the land of Argentina. If we move to next page, Page #6, we see the climate conditions. The Argentina today is in a very good shape today for the winter, for next winter, we are going to plant everywhere because there was a big recovery in the humidity on the land in all the corn bed of Argentina but we suffered some droughts and distance of rates between the summertime in mainly the soybean and corn time, and we are seeing in some regions some losses that we have like more than 50% of the crop and that affected a lot the yields of Salta and Paraguay. We are now in the middle of the harvest time. Brazil finished but Argentina is in the 38, Bolivia 78 Paraguay just 12 but we see some damage, and we are forecasting that much mainly these 2 places, north of Argentina and Paraguay, affecting the 2 main crops, soybean and corn. So when we are forecasting, we are affecting yields on these 2. So the agriculture season is not the best as expected because these 2 effects. The rest is almost normal. So we are expecting a more normal agriculture year, very good in sugarcane, some good in corn but less good in soybeans and cotton. And in wheat that we finished, was good campaign but not so good at last year. And if we move to next page, you can see what I'm saying. We are expecting a growth year-to-year, a forecast of increasing 23% yields in the region between Argentina and the region. So a big impact. Remember, we were growing inside not so much. And the rest is because recovery of the yields more normal climate. And sugarcane too, an increase in the region in the yield and pricing sugarcane. So we see that the evolution -- operational evolution, there are some very good news related to sugarcane and the rest more mix between what I said. And we see the crop yields that we are expecting. Argentina is expecting a 2% increase, Brazil a 1% decrease in the soybeans, in Bolivia big decrease and Paraguay, a decrease too because last year was bad but this year is bad again. So Paraguay, it's close to 0. Last year was very negative. We are expecting close to 0 in agriculture in Paraguay. And in corn, some effect, too, we are seeing in Argentina, 14% increase in comparing to last year, 1% in Brazil. Bolivia is not raising in corn this year and 5 tons in Paraguay, very good result in Paraguay related to corn. So we see mixed results related to our agriculture in this year but increasing insight. Related to cattle, very good year, and this is very good news for Argentina. Mainly Argentina, the main -- in cattle, it's only Argentina we are close to 60,000 heads and we are seeing margins for the next 9 months of $7 million, close to 7 million kilograms of production. And this is part of the country that is expanding, and we were -- we can see the evolution of Argentina in the graph in the left that Argentina was at the lowest prices in the real dollar compared to the rest of the region. And today, we are in a comparable price to Uruguay in higher price than Brazil and Paraguay. So Argentina with higher volume, more efficiency, more figures, more productivity, increasing the margin in cattle business, mainly in Argentina and now following in Paraguay too. Related to FyO, our stake in services. Here, we see the evolution of FyO and we are forecasting more than 7 million tons for the year, 6.7% market share of Argentina, very big in EBITDA. This company is really in all the services that we are dealing in a [indiscernible] in credit, in advisory, in specialties. So the company's for sure, the largest broker of Argentina and the function of Brazil is beginning to see some fruits. The first half of the year, we surpassed last year numbers. We are more than doubling this year the numbers of last year. So this service company is not only confirming the size and the evolution in Argentina, but now making its new path in Brazil. So saying that, I gave you some picture of Argentina. I will now introduce Matias Gaivironsky to talk about IRSA investment, where Cresud owns 55% of the stake.

Thank you, Alejandro. Good afternoon, everybody. So if we see the results of IRSA during this 9-month period, we achieved a profit of ARS 35 billion compared with a loss last year. If you remember, during the first 6 months, IRSA posted losses. And in this quarter, we revert those losses into profits. Major news about our mall segment, where we can see for the first time in the year, an increase in tenant sales. We increased 13.4% of our tenant sales compared with the previous year, still below when we consider the accumulated 9 months, 4.6% below last year but with a trend that is a recovery. About the office portfolio, we maintained 100% occupancy and similar prices than last year. We saw a drop in the hotel segment because of the new macroeconomic situation of Argentina and prices. We are receiving less inflows of tourism to the country, and that has an impact on occupancy in our hotels. About [indiscernible], we are very happy with the progress of the commercialization. We already signed around 11 transactions and 2 are sales in cash and 9 are swaps agreements where IRSA will receive square meters in the future. And also IRSA has important news about the debt that tapped the international capital market issuing a new note that expiring in 2035. When we see the evolution of the rental adjusted EBITDA, we can see that are similar -- an increase to the previous year but an increase in the shopping mall segment. In fact, we have a record high for the last 10 years in the EBITDA in dollar terms for our mall segment. To the financial results of Cresud. First to stand the figures, it's tough when you compare figures that are the main driver is dollars like in Cresud, when you have to adjust that by inflation. So you have the pesos of last year adjusted by inflation, that really inflates the number of the last year. It's like we have a dollar, similar dollar of 100 -- sorry, 1,800 compared with the current 1,000. Now it's like when we convert the pesos, we are giving a 70% increase in pesos terms to the last year figures. Also, the evolution of the dollar and appreciation of the peso, both in the official exchange rate and the blue chip swap will have an impact when we value the investment properties at fair value. If we move to Page 13, we can see on the line of the operating results of Cresud, what happened, we have a drop, 83% drop. Part of that is explained on what I just said about the dollar and we're expressing pesos of last year, dollars of last year in pesos adjusted by inflation but part related to some drivers that I will mention. So regarding FyO that you can see a drop from ARS 29.8 billion to a loss of ARS 19.9 billion during this year. This is attributable to first of all, some seasonality. Last year, you remember that we have special dollars for farming. So farmers tend to sell in advanced production. So the brokerage activity of FyO that last year was more relevant for that will be compensated in the coming quarters. So the Alejandro mentioned, the forecast of FyO this year is positive. And if we see the net income line of FyO is also positive because part of the revenues or part of the results are recognized below the operating line. About the grains, we have a drop also from last year, ARS 21.6 billion to a loss of ARS 5.4 billion this year. Again, when Alejandro explained drivers on productivity will be positive when we compare with last year. Part of the results will be reverted. Here, we have some effects of valuing stock at the current numbers. Also, the projection at the beginning of the quarter were higher than what really was. So that generated a negative result during this quarter. About the sugarcane line, we see a positive evolution. We have higher prices, higher productivity that part are compensated with higher cost but very positive numbers. The same with cattle. We have a higher production of cattle during the this year compared with the previous year, a 24% increase, also higher prices, much higher than inflation. If we move to the next page, the fair value of our investment properties. This is mainly related to [indiscernible] year. Last year, we have a loss of ARS 588 billion. This year, we still have a loss lower than last year. This is a noncash effect that -- if we analyze values of the properties in dollar terms, we are maintaining the same dollars in offices and land bank and have a higher numbers in the shopping malls. But when we adjust by inflation and convert last year numbers into current numbers, that is why -- the reason why we are posting losses. Finally, the net financial line, we see a positive number, ARS 86.5 billion compared with ARS 145 billion last year, Part of that is related to the net FX result that since we have an appreciation of the peso, all the dollar-denominated debt when we convert into pesos that generated gains and also the fair value of our financial assets that also generate profits. With all these drivers we finished the 9-month period with a gain of ARS 57.9 million compared with the loss of ARS 39.9 billion last year. Well, finally, about the debt, there are no major news here. The net debt remains at [ $300 million ]. There is some mistake there. When you said gross debt, $349 million is net debt. $349.7 million and the debt amortization scale that we have somewhere for the debt that expire in the next years. There was some major news about the grade rating that was an upgrade to AAA for both Cresud and IRSA during February. So with this, we finish the formal presentation. Now we open the line for your questions.

Well, now is the time for the Q&A session. [Operator Instructions] Yes, we have the first question, here we have. Well, first question regarding dividends, if you are planning to distribute dividends this exercise.

The decision will be taken on October. So our shareholders' meeting will be in October, we have to submit the proposal around September. So it's not decided yet. So I can't comment any more about that.

Good. Here a question regarding the sub-transactions at IRSA, if we can give a little bit more color on how it works. And what is the motivation for doing swap instead of developing?

We entered in all the details about Ramblas in the webcast of IRSA. So we -- if you want to enter more deep analysis about that, there is recorded and is public in our website of IRSA. The motivation, just to comment to second, about the motivation is to give speed to the project. So we are giving land to the developers, the development will develop and pay us with square meters in the future. So it's a way for you to develop the project, give speed and became a relevant neighborhood in the city without investing our own money. So that is the main philosophy behind the strategy but you can answer much more details in the presentation of IRSA or contact Santi for more information.

Sure. Yes, there is a question regarding investment in IRSA and what is Cresud long-term intention with this ownership?

It's a controlling shareholder, and we are not imagining any big changes days. So -- but really I don't know what he has to say.

No. If you realize, we invested more money in IRSA when IRSA did the capital increase in 2021 and also, we did some acquisitions in the market. So we like the position that we have, and I think we have some complements between the agriculture activity and the activity of IRSA and there are some hedge between the 2.

These days, it's much better environment at the urban where the yield EBITDA and the farms are in tougher because drop of prices, the rebound probably is coming and maybe this is changing. We don't know, but really it's the biggest asset of Cresud in size, for sure. And so it's relevant for Cresud for sure. But we're not thinking of any big change in these days.

Here a question regarding FyO or the results of negative of FyO. We can explain a little bit more. And if we can expect a dividend policy for the coming years, I imagine Cresud now in general.

And related to the EBITDA of FyO is very good, and Matias will explain the operational and the financial part of the balance sheet. But the real budget control of the company, it's generating a very profitable EBITDA. To give you a gross number, it's a $15 million EBITDA for the year that the company is expecting. So really is very -- in a very good shape and surpassing 7 million tons, it's the largest of the country, for sure, like a broker. And the brokerage is not only outputs but in inputs in fertilizers, in herbicides, in consultancy. So the company intends to help farmers after production, not inside the farm but when the farming -- the output, it's ready, helps the farmer to close the futures in Argentina and abroad. So the company is helping the servicing farmers in a much bigger volume than Cresud, no? Cresud was big at the beginning but not today. It's not irrelevant, but close to the relevant the volume of Cresud. And in Brazil, is coping the model and not arriving to the 1 million tons still but we expect to pass that. So -- but in the balance sheet, the Matias is going to explain what affected, and it's the main difference of the year in the profit -- in the operational profit of the year.

Yes. Well, there's some effects. The first one is when we took the last year results, as I mentioned, if we have to reexpress an activity that is dollar-denominated into pesos and then those pesos adjusted by inflation, those pesos to the current numbers that give you like a sense that the number of last year is much higher than what really was. About this year and also there is some seasonality that last year because of the government gave special dollars for farmers trying to incentivize that they liquidate the grains and receive dollars. People tend to anticipate transactions and then generate more revenues at this moment of the year than in the current year. Also, when we analyze the balance sheet or the financial statement of FyO, the activity of FyO sometimes they acquire the products from the farmers and do derivatives transactions that the result of the derivative transaction is in the financial line. So sometimes you see the loss -- or less profit in the revenues or net of the operating results but that will be compensated by derivatives that are below the line. So at the end of the year, as Alejandro showed in the presentation, we are anticipating or projecting more volume for this year compared with the previous year, and prices are at higher prices than the previous year. So at the end of the year, in the next quarter, we should see positive numbers.

Good. Here, we have some questions regarding real estate, farming real estate, given the ongoing policy changes in Argentina and financial stabilization, Are You seeing any meaningful improvement in farmland prices? And do you intend to increase your pace of net investments in farmland in the country? And there is another one that is, do you plan to buy farmland in Argentina? Or do you see better investment opportunities through BrasilAgro in Brazil?

It's relevant what the government is doing related to agriculture. There are some critics that they didn't took -- they didn't take the taxes on exports still, they made a small reduction. Today, on the 30th of June, there is a maybe a threat of coming back to the price to the taxes they were before. So coming back from the 26% of soybean to 33%. But still, the government insists that it's going to reduce. And he still talks about finishing directly taxes and experts, understanding that damage a lot the agribusiness and it's true. But meantime, the announcement of the only $1 or close to $1 that I think this is the biggest macro now for Argentina. And I think -- that is going to explain why I'm so optimistic on the price of the land of Argentina. Argentina is connected to the price of the core belt of U.S. that is the big correlation. In 2012, 2013 and stayed almost at the same at the $12,000, $13,000, $14,000, $15,000, the hectare of the corn belt. These days, we see some rebound in Argentina. They are speaking about 10%, 20%, beginning to increase the price of the land. But regard to the price of the U.S. all to Brazil is huge. So there is a big chance of that to reduce in the future. So I think there is a drop or a small drop in the price of the land of U.S. and Brazil, comparing to an increase because of the Argentine measures. So I'm optimistic, and we think that we are going to buy some new pieces in Argentina. We have a big portion in Argentina. So the biggest portfolio of land that we have inside of Argentina, we expect that to reevaluate but we think we are going to be buying some assets in Argentina these days, to because of these macro situations. Related to Brazil, yes, we are looking for opportunities, mainly in debt situations, forced to sell but the price of the land went very much up. So the opportunities in Brazil needs to appear because of some crisis. In general, prices are high. So in these prices, you don't find -- you don't see any rebound as we see in Argentina that is probably more possible.

Two more on the financial front. If you sell farms, how would you use that? So capital allocation, would you buy back shares, you could invest into new farms paying dividends, if you can give a little bit of color on capital allocation at Cresud.

I know that [indiscernible] making the question for you, all of the rest. I think I'll complete it all of that rest. Depending on the situation, we are trying to swap funds that they are mature and to buy in advance that we think have a very big room to appreciate. And the shares, as always, the share that it's very cheap compared to net asset value we buy. And every time we plan, we launched a new plan and buy back shares or buying other shares. So reducing debt and increase in irrigation, we are thinking. In the case of cattle, we are trying to rotate more in the feedlot time that it's more profitable and reducing the raising cattle time that is more long and less profitable. So selling, maybe raising and doing more fattening at the end on farms or feedlots. So yes, rotating the land to make profitable basics in agriculture, you need to keep rotating. You have to give to the market what is really looking and to buy what everyone is hating and to put it in production again, and make, as we always look for a more than 10% yield in the combination of the real estate, operational and service as we are.

Good. I will go with the last one. How do you expect to deal with the $200 million maturity next year? Do you plan to tap the local capital market, the international capital markets?

What we have been doing in the last 6 months is taking advantage that there is more liquid in dollar terms in Argentina. There are new credit lines from banks refinancing of export that is for short term. So probably when you see -- why we have the short-term debt so high, we increased that part because it's efficient in terms of cost. But then, yes, typically, we finance our operations. And when you see the debt structure is a combination between the bank debt and the capital market. The international capital market, probably you need more size to go. What we learned from IRSA is that investors want at least $300 million size and Cresud, they don't need -- we don't need the $300 million. So probably it will be more in the local market than in the international capital market.

With this, I think we...

I'm sorry -- and also something important is the warrant. We have a warrant outstanding that expire in February last -- next year. No Cresud is February, next year. And Cresud will receive that warrant is steep in the money. So we -- it's very likely that we will receive proceeds from the warrant considering the warrant of Cresud and the warrant of IRSA that Cresud has, probably Cresud will receive around $27 million inflow in that moment.

Perfect. With this, we finish the presentation and the Q&A. Thank you for joining. I will now turn back to Alejandro for his final remarks.

We are waiting for the last quarter. There, we're going to close the same rains, soybean and corn, some cotton. And we have a very good position in the region in the 4 countries, and we are very optimistic on the sector. And after this news of this weekend, the trading normalization is really relevant. We need economies to keep growing and every growth goes to better food consumption to the population that's keeping growing. So we are optimistic on the basis for the next quarter and for the longer term. So thank you very much, and we see you on October -- September, October, closing the annual balance sheet. Thanks a lot.

Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the second quarter 2025 results conference call. First of all, I would like to remind you that a replay of this webinar, the presentation and the earnings release will be available on our website at www.cresud.com.ar. After management remarks, there will be a question and answer session for analysts and investor. [Operator Instructions] 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 Alejandro Elsztain, CEO. Please go ahead, sir.

Thank you very much, Santi. Good morning, everybody. We are beginning on Page #2, the main events for the second quarter 2025. We have this year 2025, a very big regional campaign. We increased comparing last year planted area, 9%. And we have our record in size in total agriculture between the combination of the 4 countries leased and owned. We have this year, good climate conditions in general in the region. There is slightly an increase in commodity price on the last quarter, mainly in Argentina because of some reasons in Argentina that I will explain later. And from other side, some input cost reductions, mainly in Brazil, because of the devaluation of the real. During the January, there was a small lag in the rain. But finally, now in February, we are receiving some rain, and we are expecting a normal campaign for our crops in Argentina too. Related to the crop taxes export reduction, there was a big measure done by the government and that decreased from 33 to 26, the soybeans and the corn and wheat to from 12 to 9.5. And this is more or less a 5% increase in the prices for farmers, depending what the margins the farmers are receiving because the exporters are taking part of that profit, too. But finally, it's a benefit that is mainly for Argentina. It's just for Argentina, but helping Argentinian farmers in the drop of prices that we have received last 12 months comparing to higher price that we had in the past. Related to Brasil Agro, we have very good productive results and the prospects for the campaign are very good. Soybean is beginning to harvest, and we are seeing very good yields. They are sustained price. The inputs are going down because of the devaluation. Related to real estate, we have accumulated up to now just [Audio Gap], but that was in the first quarter. In the second, there are not more sales. But we are seeing a moment and we are expecting for next half year, some more sales on the assets on the region. And related dividend distribution, we distributed MXN 45,000 million in November that represents close to 7% of dividend yield. We can move now to Page #3. And here, we see our evolution, that jump of 9% year-to-year, achieving more than 300,000 hectares in the combination of the 4 countries being Argentina and Brazil, the main, finally, the Paraguay and Bolivia smaller. And here, we see soybean representing half of total planted area, 23% corn, 9% sugarcane. Today, the main -- in Brazil, the main two are sugarcane and soybean and Argentina, the main two are soybean and corn -- main two products. And this is the breakdown for the region. And we can move now to next page. And now I will give the word to Mr. Diego Chillado.

Thanks, Alejandro. Good morning, everyone. In this page, we can see the evolution of commodity prices, as we show every quarter. Remember, we come from the 2024 campaign that was marked by the down pressure on the international commodity prices. And we have seen at the very beginning of 2025, the same trend, low prices level. But in the last quarter, we have seen a steady recovery, both in corn and in soybean prices in Chicago. Soybean are about 5% and corn 7%. So it's a good news. Regarding input costs, they continue to adjust as they were lagging behind prices. So Alejandro will back to talk about the taxes.

Here, we showed you in Page #5, the evolution on taxes on exports for the two main products of Argentina that we produce, they are soybean and corn. And we see that from the 1982 up to now, so more than 40 years, there were taxes on exports. I would say that the average was at the 30 something. But now there was an announced of decrease from 23 to 26, but that was announced up to the 30th of June of 2025. This is pushing farmers to sell some of what they retained from the crop. And in the case of corn from 12 to 9.5. So a big majority of the history of the last 40 years, we were touching our exports. And our President -- existing President Milei said he will decrease or make them disappear. But at the time, he will have always surpassing having a surplus on the spending on the government. So now he gave some, but he announced up to the 30th of June. The market is not showing an increase again. So the market is reflecting that there was an expectation that maybe can stay, that on the prices, and the government will try to stay. But up to now, they announced formally up to the 30th of June. So the 1st of July, they would rebound to the 33 -- from other side, the rest of the commodities and the specialties, rice, cotton and all the small dairy, all the small products of Argentina, they went to zero, and that was permanent. So they gave a good measure. Farmers are happy. That measure gave us some air, Diego said, like 5% to prices, and this is a good sample of what we are expecting from the government. We are not seeing the rebound on the prices, but we are seeing a country and a government intending to decrease taxes. And in the case of farmers, taxes on exports, that is the main taking from the revenue. So saying that, I will give you Diego again, the word about the climate of the region.

The climate condition and sowing progress. In this page, we can see the regional weather condition and sowing after 2024 campaign where we experienced lower yields and production, both in Argentina and Brazil, due to the lack of rain. In 2025, campaign is developing with the weather condition, the good weather condition -- is much better. For example, Brazil has any problem of rain in the first semester in the areas in the region where it operates. However, talking about Argentina, the lack of rain in January has been noted, which if it proceeds could impact the main crops yields. So we hope to see a good rainfall in the next weeks. Today, it's raining here in Buenos Aires and this month, we expect continued rain. Regarding the soybean progress, we have planted 100% the soybean in the area, in the region, the good level of rainfall at the beginning allow for fine and optional sowing of summer crops. Regarding crop corn, we have 80% with Brazil around 30%, [Audio Gap] for this time of the year. Taking about the harvest, the winter crops in wheat, we have completed the harvest in Argentina with it's almost double size than the last year. We sold and we harvest like 13,000 hectares of wheat. This is almost 95% increase compared to the previous campaign -- similar yields, a little lower. But in terms of the tons, the general production was 65% above the last year, reaching 45,000 tons. Ending in the Page #7, the cattle activity in Argentina regarding -- we have seen the very high prices sustained. The prices had a significant improvement in the last year. The trend that we experienced last year remained the same. We increased a little bit size of heads, reaching almost 50,000 heads in Argentina. The production is increasing. We are expecting to have a higher with similar margins. So back to Alejandro to talk about Piauí.

Related to Piauí, our service agriculture company, here, we see the evolution on tons the company is trading from the last 10 years from $3 million to $7 million surpassing this year. We're expecting to surpass the $7 million if the campaign stays as it is. And EBITDA evolution to $25 million per year. This company became very relevant in the market, not only in servicing outputs, but inputs. We sell through FyO fertilizers and herbicides and other inputs to farmers. And that company became very relevant with more than 400 employees working in Argentina, and now developing the main -- this main service in Brazil through beyond another company. So with the combination of two, that company is growing a lot, too. So we combine the three businesses, the real estate, the operational and the service company. Saying that, now I will introduce Matias Gaivironsky that will talk about our investment in IRSA, with Cresud owns 56% of the stake.

Thank you, Alejandro. Good morning, everybody. So to review the main events of IRSA during the quarter, well, first, we saw a loss of ARS 40.9 billion that is mainly related to a noncash effect about our -- the fair value of the investment properties that then I will explain a little deeper. We saw during the quarter higher occupancy and sales recovery in our malls activity. We saw a 21.4% increase on tenant sales against the previous quarter. Still below the last year, when we compare with the same quarter of the last year, we still see a decrease of 8.5%, but we expect during the next quarter to start showing positive numbers compared with the previous year. About the office portfolio, we reached 100% occupancy. So we are happy with that. About the hotels activity, we saw a drop during the quarter related to the decrease in revenues and occupancy, because of the new environment in Argentina and the new exchange rate, we are receiving less tourism than the previous year. About the malls as well, during the quarter, we finished the acquisition of a new mall [indiscernible] that is located in Greater Buenos Aires. So with this acquisition, we are increasing our mall portfolio in terms of GLA, gross leasable area of around 10%. Also during the quarter, we finished the first two plot sales in Rambla Hl Plata project. So this is a major milestone for the company after receiving the approval and after designing the master plan of the project, we started the commercialization, and we already sold two plots. So we signed the two agreements, and we are working in around 10 different barter agreements with different developers to sign in the coming months. About the dividend, [indiscernible] also distributed dividends in November of around -- was around 8% dividend yield and also 3.6% in treasury shares. When we see the EBITDA in dollar terms, the rental EBITDA, a good trend, just the decline this year compared with the previous year is related to the hotel activity. The malls and the offices remain stable. Going to next page. About the financial result, well, to compare with the previous year, first, we need to understand what happened with the FX and the inflation. You remember that during the last year, we have the big jump in the big devaluation of the peso from ARS 350 to ARS 800 that had an impact at the moment on our holding, and the stock of grains, and also was a negative impact about our debt that we will see in the coming slides. This year, the macroeconomic situation of Argentina is much more stable. Inflation went down from 107% last year to 21%. The devaluation was only 13%. So we have an appreciation of the Peso of 7%. And about the blue chip swap, the dollar MEP, we also see a big reduction in the gap between the parallel market and the official exchange rate. So going to the next page. to see the operational results first in the agribusiness and the farming activity. You know that this semester is not the most relevant semester of the campaign. We will have most of the results coming in the next 2 quarters. But, when we analyze what happened this semester, we see a drop in some of the numbers. So first, the positive numbers came from the farmland sales. As Alejandro mentioned, we haven't sold this quarter any properties, but we sold during the first quarter compared with the previous year, we are having better numbers. About FyO, here is not the best picture because we are comparing on the operational results and some of the results of FyO are recognized in the line of financial results. So here, we see a big drop from ARS 17 billion last year to negative numbers of ARS 16 billion. But when we see the final line in the net income, we see comparable numbers with the previous year. About the farming activity, we see here a drop in the grain activity. This is basically related to the holding results related to our stock. We have lower prices in grains compared with the previous year and also the evolution during the quarter of prices in peso terms was lower than inflation. So we are recognizing negative numbers because of our stock, and also the remaining results of the previous campaign that are bringing some negative numbers because of the drop in prices. About the wheat harvest, we have some reduction compared with the previous year related to reduction in yields and also in prices. About the sugarcane activity, that is mainly in Brazil. We have very positive numbers. We have basically better prices than previous year. The cattle activity also, we have an improvement, an improvement in kilograms produced and also in prices. So those are the main drivers of the drop on the farming activity. Going to next page. So here on the right side, we have the main explanation of why we are showing losses both in IRSA and at Cresud levels. Basically, we are having negative numbers in the devaluation of our investment properties. Last year, we can see here that was a big jump in devaluation because of the devaluation of the peso. So in pesos term, we recognized very positive numbers. And this year, since prices remain stable in dollar terms, and the blue chip swap reduced and also we have an appreciation of the peso, we are recognizing losses. When we see the numbers in dollar terms, both in offices and land bank remained stable. And in shopping malls, we saw -- we posted an improvement in valuations of around $120 million. Next page. So finally, regarding the net financial results, also in the left part, you can see that last year, we have negative numbers because -- mainly because of the devaluation that affected all our dollar-denominated debt. This year, we have an appreciation of the peso. So we are recognizing gains about that. And also, we have positive numbers on the fair value of our assets -- financial assets that are basically our liquidity. With all those drivers, we are finishing the net result of the semester with negative numbers of ARS 61.5 billion attributable to controlling interest is ARS 64.4 billion compared with a gain of ARS 266 billion last year. Well, about our debt, there was no major news during the quarter. The debt remained stable, $323 million during the -- at the end of December. There was a reduction in the debt compared with the previous quarter -- the previous year, sorry. And this is after paying the dividend of Cresud as well. So with this, we finish the formal presentation. Now we open the line for any questions that you can have.

[Operator Instructions] We have some questions in the chat. Would you be able to give shareholders any kind of guide for what the second half capital allocation will look like between acquisitions, CapEx, dividends and buybacks? I was surprised there wasn't another repurchase authorization in such a volatile market.

There was no, there was -- recently, we were repurchasing some shares of Cresud, close to a little less than 1% that was approved recently, a few months ago and was done before the end of the year. So yes, it was done a small repurchase. Related to purchases and sales and CapEx, the company [Audio Gap] Cresud, it's trying to find some purchases of land at the same time, selling some assets that are mature. So we are in the process of that. We are expecting to do some of that in the second semester of the company. Related to the CapEx of the company, we keep doing the normal CapEx of the company. That is normally, it's like $5 million, $6 million a year. So this is the normal size of by year.

We have other questions that are more macro. If you can walk us through the shifting regulatory environment regarding conversion of your land bank assets to productive land. I imagine this is related to the provinces that they are reviewing this regulatory laws, environmental law.

Yes. The -- mainly the province of Sarta is speaking about that, is changing regulation on the areas that can be developed. It sounds like the new government is intending to develop more land in Argentina than the opposite. And maybe that could be affecting our two projects in Anta and Los Pozos. Today, we are not so sure, because it's not finished, it's not done. Today, we are not in the process of developing land. But what the government is intending probably will increase the surface of Argentina, mainly for the northern areas of Argentina, northwest of Argentina.

Good. And here, a question regarding the upcoming harvest that is expected to be largest harvest and better. Do you expect numbers to be -- to join that direction to be more positive than pre campaign?

Yes, we expect that because the -- in general, what we do related to each year is we plant and we forecast related to price, related to cost, related to yield and related to hectares planted. And this year, I would say, it's very normal related to price, this is positive, because there is not a negative price to the beginning of the campaigns. It's a little positive because of Argentinian effect mainly related to cost is not affecting neither. The yield sounds, but it's too early to speak, because today in February, it's not done, but it sounds like it's a normal year to the region. And in hectares, we planted majority what we expected. So a big majority is close to -- there is a small, very small discount on the hectares planted. So yes, we are expecting a better, much better operational business that the last year, yes.

Let me add something about some accounting treatment that sometimes when we measure in our management presentations and internally, we tend to measure results in dollar terms. So when we show numbers on our financial statement, we have to do it in pesos. And in pesos terms, it's adjusted by inflation. So sometimes, we have positive numbers in dollar terms, but when you convert that in real pesos, sometimes turn to negative. For instance, our holding results that if you have a stock of grains and that grains didn't improve as much as the inflation, then you have to recognize a negative number. So sometimes our financials are not the best proxy or the best way to see the real performance.

Yes, we have some additional questions. How is the recently completed new free trade deal with with Europe going to affect your crops meat exports? And how is the new European Union tariff agreement going to affect you? If you can give Alejandro perhaps some color on how is this new trade with Europe -- this is United States or Europe, I imagine?

Europe. It is recently signed and it's going to affect -- in the case of beef, it's going to increase the quota of beef exports to Europe. So that will be a benefit for Argentinian and South American beef. And we'll bring some competition of European products to Argentina that will make us to prepare better products and more efficient industrial things in Argentina. But in general, it's a positive measure for Argentinian farmers what was finally signed between European Union and South America [indiscernible].

I think we have a question regarding Agro, if you can give some color how is the business performing?

Less taxes on many things like soybeans and other things. So it's going to benefit for farmers for sugar. It was fed by the farmers of Europe because it benefits South American farmers. What it was -- sorry?

Last question regarding Agrofy, if we can give some color on how is the business performing or the expectations for this year?

Agrofy is a company that is reducing a lot its number of employees. The company began spending much more money thinking that sales would be much higher, but the main companies still are not decided to show their products and prices on the web. So the marketplace is beginning to work mainly in machinery and all kind of supplementary things for the farmers, not still for the main inputs as seed, herbicides, fertilizers or crops. And that makes us to reduce our staff today, the staff is closer to breakeven. The company has cash on the pockets and now it's thinking how to achieve that to the breakeven, because now it's very close. The company was spending $10 million or $20 million per year. Now we're spending less than $2 million of burn rate, and have the money close to achieve that -- the positive. So the company is in a much better position than it was, understanding that the business, the industry is delaying as much as possible the marketplace for agriculture. But Agrofy's still the leader. And now with the sales of that input for farmers like tools or tractors or all kind of machinery that is not a commodity for the farmer, it's making much higher returns. So we are expecting to put the company in a year and some in a breakeven position.

Great. Last question, your view on the political side and the President Milei with the upcoming congressional elections, if you are positive on his -- on Milei winning and getting more power in the Congress.

Today, the situation and -- the people on favor of him is huge. Today, the majority of Argentina is liking what Milei is bringing. The kind of the -- first of all, the decrease on inflation was the main macro-economy is working. And so some good effects are coming to the country. So today, if the election will be today, I don't have any doubt. But this year, they are expecting a much better situation related to Congress. Today, they are running the country with a very small percentage of the Congress, very small in the two, Congress, the Senate and the [Audio Gap]. Today, we think that Milei is going to strengthen a lot during this year and it's going to keep doing what she was doing, more measures, deregulating, helping imports. And probably, I think it's going to unify the currencies and it's going to, I think, keep decreasing the cost of the capital of Argentina. We see the companies now are beginning to -- and Cresud and IRSA were using those tools, having bonds. And today, the market is opening for long-term debt for Argentina. So yes, we think he's going to have much more support on the Congress and much more measures on the government. If that is the last question, I will thank everybody because of the presentation. Half a year for [indiscernible] is not very relevant. The more are the third and the fourth, March and June, and we expect to keep having the three businesses very well run and very actively and I hope to show more sales and buys in the two main countries that are Argentina and Brazil. And related to the farming, the summer is our main activity where soybean and corn, they are coming. So I'm very optimistic on the year. So just to thank you, everybody, and have a very good day. Thanks a lot.

Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the first quarter 2025 results conference call. First of all, I would like to remind you that a replay of this webinar, the presentation and the earnings release will be available on our website at www.cresud.com.ar. After management remarks, there will be a question-and-answer session for analysts and investors. [Operator Instructions] 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.

Good morning, everybody. We are beginning our first quarter 2025 results. This year, the regional campaign is showing us an increase in planted area comparing last year numbers. And the one that is mainly explaining that is Argentina in the growing leasing areas in the country. We are beginning the campaign. The conditions are good. The good -- not so good in the case of the winter crops in Argentina, but the rest -- yes, for the rest, mainly summer crops, soybean, corn and with the March more stable commodity prices comparing last year's where there was a big drop and some slight input cost reduction that we are seeing, so recovering some of the margins of the activity. Related to wheat, the wheat was 100% planted, and now we are close to be harvested in November, December and with some drought areas in Argentina decreasing some of the result, but still early to speak. In the case of soybean in Brazil, 45% is being sold, so planted in Brazil. So it's a normal campaign, a little delayed 2 weeks later in Brazil. But after the rain, the conditions are recovering. There were 2 transactions related to real estate in the quarter. One is in ?Los Pozos farm undeveloped land and other one is in Alto Taquari in Brazil, I will show you later. We received many dividends from the companies and the total dividend we received in Cresud was close to $53 million. BrasilAgro gave us close to $10 million IRSA $43. With the 2, we're distributing dividends these days for investors, close to 7% dividend yield. And so the company is in a very good shape today and doing this activity in the first quarter. Saying that, I will now introduce Diego Chillado.

Thanks, Alejandro. Good morning, everyone. On this page, we can see the planted area evolution. Cresud this year is increasing the number of hectares and sowing under planted area. We are expecting to plant 303,000 hectares in the 4 countries where we operate in Argentina, Brazil, Bolivia and Paraguay. So this is a 9% increase comparing to the last year to the previous campaign. Mainly we are expanding our surface in leased farms in Argentina, but also some in owned farms. Regarding our breakdown, we keep having a diversified mix of crops, but mainly soybean and corn, and we do some sugarcane in Brazil and Bolivia as well. Next page, #4. Here, where the commodity prices and the cost. In this page, we can see the evolution of the commodity prices. The 2024 campaign was marked by the down pressure on international commodity prices, as Alejandro said, and the beginning of this new campaign maintained the low price level, part of the peak reached after the pandemic and the war in Ukraine and Russia. Regarding input costs, they are adjusting a little bit, but are still high levels compared with -- to the commodity prices, affecting, of course, part of the regular margins. The good part of that is the inputs are starting to correct a little bit. Next page, #5. In this page, we can see the regional weather condition in the region and the soybean progress. After 2024 campaign, we experienced the lower yields in Argentina and Brazil both due to the lack of rains. This 2023 campaign is present with the weather -- the good weather condition, La Ni�a Phenomenon that was packed at the beginning of the season has bad in the last weeks, we received a good rains, mainly in Argentina. With that, regarding the soybean progress, we have planting as Alejandro said, 100% of the wheat in Argentina and the rest of the crops. The total region in -- for soybean is 27% for soybean and 10% for corn. Now, Alejandro?

Talking about our real estate activity, we closed this quarter the second portion, second fraction sold. Here we see on the map. Last year, we sold the first fraction. And this year, we are selling the second. This second is 3,600 hectares, undeveloped, totally undeveloped. The sale price of this fraction was $2.2 million, $614 per hectare comparing to the acquisition and the CapEx invested in the last 30 years, close to 30 years, that was $15. So a profit of 41x the price acquisition. The accounting gain is almost all $2.1 million, and we have still a remaining surface of 231,000 hectares (sic) [ 231,700 hectares ] in the farm. So this shows the big gain the company is having in the developed and in the undeveloped regions of the farms we bought a long time ago. The other big fraction sold in the quarter was done in next page in Brazil, Alto Taquari that was mentioned before, but was implemented this quarter. This was 3,700 hectares sold area, and this is of 2,700 total sold area -- hectares, but this smaller fraction was done this quarter was 1,100 hectares. So the remaining part selling price of BRL 190 million, a big gain, close to BRL 100 million gain. So this in an developed area where we did a lot of sugarcane and the big transaction in internal rate of return, we bought that for $4,000 -- $5,000 and we were selling later for $25,000 or more in Brazil in the Mato Grosso area. So saying that, we had the first quarter, some activity in undeveloped and developed area. And so we expect to have this in the next quarters the same. Saying that, we can move now to Page #8 and see the evolution of our service company, agricultural commercial service company called FyO. FyO, that began 25 years ago. And this last week, we had the party for 25 years, became the biggest broker of the country in inputs, outputs, commercial services. And here, we see the evolution of volume of tons. So we achieved last year 6.83 million tons, representing close to 6.1% of the market share of Argentine grain total market. So this is a very strong evolution. And the ABT or EBITDA, we are seeing $25 million or $30 million last year, so showing a very strong company, just pure servicing farmers using the volume of Cresud, but not only Cresud represents today close to 4% of the volume of FyO and became not only very relevant in Argentina, now launching the story in Brazil through [indiscernible]. So this service company is expanding its operation in the rest of Latin American region. Saying that, I will now introduce Matias Gaivironsky.

With all those effects, we finished the quarter with a negative number on the net income of ARS 72.3 billion attributable to our controlling interest, ARS 39.5 billion, and the rest is the noncontrolling interest. About our debt, we see a reduction in our net debt evolution from $421 million in fiscal year '21 to $310 million currently. The net amortization schedule, we see some amortizations during this fiscal year that we announced last week that we will issue a new bond to pay down and to refinance that amortization. So we are in the market issuing a new bond for 4 years with maturity in 2028. So we will close that next Wednesday. As Alejandro mentioned, the dividends, we paid a dividend yield of 7% that we already distributed that in Argentina for our ADR holders will happen in the next probably 15 days, the payment or 20 days, and we don't anticipate any further delay like other years. If we see the evolution, we have been paying good dividends for the last 3 years. And this year will be at the blue-chip swap around $38.8 million. And finally, about the repurchase of shares, we announced a new buyback program for ARS 6.5 billion with a maximum amount of $12 per ADR or ARS 1,500 per share. So we haven't started yet the acquisitions of shares. So we will start executing this program in the coming days. So with this, we finish the formal presentation. Now we open the line for the Q&A session.

Well, we start with the Q&A session. [Operator Instructions]. We have the first question. Given the administration's push for deregulation, particularly in the agricultural sector, do you see any specific opportunities emerging for Cresud? Could you discuss how the liberalization of agricultural export controls, land permitting and elimination of export taxes might benefit Cresud operations?

For sure, this government is speaking from the very beginning about how to support the very relevant agricultural sector. The President went to the [indiscernible] that is fear, I think, exposition. I don't remember the name in English, but where he was speaking to the farmers and ask him for some patience. He said that, first of all, the reduction of the gap between the $2 would benefit dramatically. And I agree with him that, that main gap of the 100% or more than in the past comparing to today or 10% or 15% to the blend that the farmers are receiving is the bigger benefit for the farmers for sure. The second will be coming from taxes on exports that the government still didn't do almost nothing. He did some small percentage in some categories in cattle, but really nothing relevant. But the government is waiting for the recovery on the taxes before giving taxes to farmers. And the farming industry, the farmers are waiting for that with patience, I think, because the show -- everything that the government is showing is in favor of farmers for Argentina. For example, reducing the taxes for imports that is affecting the input costs. So the combination of factors is -- and something that the government is speaking about the foreigners buying more land than they were permitted that it's coming, too. So all these thing is bringing liquidity to the land and that liquidity to the land brings a big opportunity to farmers because Argentina was close to be disconnected to prices of the world at times that in U.S., when the prices were going to the $17 or $18, the farms of U.S., Brazil and all developed countries were going to peaks, but Argentina was not receiving that benefit. Today, after the relation that the government and the official activities of the government are going to farmers, this is probably to be reduce the gap of price of the land that Argentina was disconnected. So it's going to bring more liquidity to farm, new players to buy new farms because they are going to allow in bigger size, it's reducing the gap and the reduction of gap brings you more dollars in your pocket before you were doing a lot of official dollars. But when you make the calculation of what they were in blue chips, really was half or less. So farmers are benefit and are going to be more benefit with the new measures that we are not waiting for the short term. But I would say, in a year period, I would expect some of that coming to the agriculture industry.

Thank you, Alejandro. I have another question regarding capital allocation. How do -- which is the optimal allocation between buybacks and dividends? And how do you current -- how do current market conditions influence this analysis regarding buybacks and dividend payments?

What we did in the last years was to give priority to payments in cash, so dividends instead of buybacks. Although we did -- in terms of size, we did buybacks in the last 3 years for both for IRSA and for Cresud, will be more priority for the cash payments. There is some restrictions from the CMB. It's not we can't use all the money to buy back shares because there is certain restriction that we can buy up to 25% of the volume of the shares. So that in a certain way, limits the size of the buyback programs in our case. So we prefer to give the money to our shareholders and they can buy back shares as well if they believe that the shares are cheap, that we do. We think that there is a very good opportunity to keep buying shares. And if we have the liquidity, we will keep doing that.

Thank you, Matias. I have another question here regarding our stake in BrasilAgro. What is the advantage, disadvantage of owning this stake in BrasilAgro versus the whole company?

As you probably know, we did this company in the Bovespa market and the Bovespa that is probably the more regulated and advanced market in Brazil, give us authorization to buy up to 42%, no more than that. Today, Cresud only 35%, it is close to that. So we are not thinking of owning 100%. This is a story that was done from the very beginning, and that was a blind check. We did that company through raising capital without having any employee, any farm, any notebook. So that was a public company from the origin and Cresud began with 7% and went to 40% in some moments. Today, we have in the 35% level, and we are happy with that strategy and land the company in BrasilAgro, it's in the mission. And as you probably know, the last 3, 4 years, BrasilAgro was benefiting through the selling of the assets we were buying 10 or 15 years before that they had a very important appreciation. So we had sales of more than $350 million in the last 3.5 years, benefiting with that and having a positive cash flow, this company has a net debt positive because of a lot of sales done in installments. And today, that company is intending to buy again when the opportunities are going to come, and we are expecting that some companies forced to sell because of the interest rate going higher in Brazil. So that company is waiting for that moment. But related to Cresud, this ownership is enough good for us.

Another question regarding Brazil that there is reporting a major drought in Northern Brazil, we had some impact-to-date?

As I know, the only impact was the delay on planting comparing to last year, and that will affect some of the second crop, probably we'll have some less safrinha of corn for the plantations in Brazil. So this drought that delayed all Brazil made probably the soybean plantation to be later. And when you have like that, you will have less corn of second crop in that region of Brazil. But really nothing very material for our results. We are expecting a much better result in BrasilAgro this year, sugarcane is in a much better position. There are not decreases on the price of the soybean and the corn related to our budget. The costs were lower to last year. So we are expecting better-than-last-year results related to the operation, plus the real estate that the first quarter, we showed a sale, and we are expecting for the next 3 quarters, some more sales for the company.

Okay. We'll give some minutes more for any additional questions that you may have. Please use the chat. If there are no more questions, we conclude the presentation and the Q&A, and I will turn back to Alejandro Elsztain for his closing remarks.

As you know, first quarter is not so relevant for us. It's just the beginning of the plantation. But having sold 2 farms, 1 in Argentina, 1 in Brazil and expecting 1 in the quarters plus the operational being normalized for climate and the higher size that we are achieving. I mean the beef cattle too, producing -- we are expecting to be in a very high production in beef in Argentina. So we are optimistic in the operational and real estate and the service for the year. So we are optimistic in this business and mainly to Cresud that can be taking the opportunities where majority is not. So we are very optimistic of the year. So just to thank you very much, and have a very good day.

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud, and I welcome you to the Third Quarter of Fiscal Year 2024 Results Conference Call. First of all, I would like to remind you that a replay of this webinar, the presentation and the earnings release will be available on our website at www.cresud.com.ar. 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.

Good afternoon, everybody. We are beginning our conference of the third quarter of 2024. And we can begin in Page #2, looking at the regional campaign progress. We had a little lower than what we expected at the beginning campaign because of some bad conditions on climate and prices. The 2 effects made us to have a little lower total planted area, so -- comparable to last year but a little lower than expected. And we delayed because of climate and not enough water on plantation, and sometimes because of the bad prices with very small margins, so there was a small decrease of hectares comparing year-to-year. Related to climate, Argentina, and mainly humid part of Argentina, received normal or good rainfall comparing last year that we lost almost half of Argentine campaign. So we are going to see a big rebound. We are going to see the numbers. So the agriculture for Argentina mainly was very well affected this year. Related to Brazil and Brasilagro, they are lower productive results because of mainly climate and lower prices. The lower prices, one that was really very affected was sugarcane, affecting a lot the price of the -- of our plantations on sugarcane, mainly Brazil, and some climate in soybeans and other products made very lower results operational comparing to last year numbers. Related to real estate, we show in the first month only 2 transactions in Argentina, 2 small transactions, and they are bringing some gain. But there is a big transaction coming on the fourth quarter related to Chaparral farm in Brazil that is bringing a sale of BRL 365 million, that will be recognized in the fourth quarter, so next quarter ending on 30th of June. We achieved, with all what I said, an accounting loss of ARS 25 billion and a gain of ARS 22 billion for controlling shareholders. And the main explanation of this effect, it's because Cresud consolidates it's balance sheet. That brings a negative number. So when you discount the minority that you don't own, you go to a positive number, mainly explained by good results related to Argentina and our service company called FyO. So meantime, in May of this year, we approved a new dividend for ARS 30 billion that it's going to be distributed these days, the 14th of May. Saying that, we can move to next page. Here, we can see the maps of Argentina and Brazil -- and we see the expected for 2024 campaign. Argentina -- now you see not a drought normal or more than normal related to rains in the south of Argentina in the humid Pampa. They all convert. And with Brazil with lack of rains, mainly the one that was more affected was Mato Grosso, where in that region, there are some places that really fails a lot in their harvest. So when we speak about the total deal -- we -- now we are harvesting in soybeans. Argentina, is in 30%, in 11% in corn. So it's the beginning of the summer campaign. Bolivia is almost done. Brazil, in the case of soybean is almost done, but in corn due to begin. Paraguay is close to 0. it's not beginning still. So in the total region, soybeans were 62% and in the corn 9%. Related to winter, to wheat, that was done in December, it's all done. It was a very positive number, and we are going to a good number on that when Matias will explain balance sheet is related to with results that were very good too. What we see in next page, in Page #4, the planted area is what I said at the beginning, a small drop, 2%, comparing year-to-year, 293,000 hectares to 278,000 hectares. We expect it to grow this year, but because of that lack of rain in some places, mainly north of Argentina, mainly in Paraguay and in some regions in Brazil, and not planting corn in regions that the breakeven was very close because of the price decrease of the corn, we decided not to increase but to a small decrease. And that's why, and we can move in the next page, combining with the lower international prices, we saw last year a big decrease in the 2 -- in the 2 main asks, soybean and corn, but in the sugarcane too. So in the 3 main products of Cresud and Brasilagro, we saw a big decrease on prices, and a very small rebound in the last 2 weeks. We began to see some increase in the prices in the corn, soybean related to weather, market weather now is beginning the plantation in U.S. We are finishing our harvest in South America. We are suffering some flooding in some part of Brazil, but this is in the corn, in the north of Argentina, affecting the corn, but it's really a big effect in the market. It's really, it's beginning to be nervous because of that effect on the yield of Argentina and Paraguay and some Brazil. So there is some climate conditions on the harvest and the weather market looking at U.S. planting for next campaign. But really, comparing year-to-year, this was a much lower operational, but Argentina that recovered a lot from the dusts of last year, and the prices really are very affected because of market conditions. And if we come to -- go to next page, in Page #6, there is something very material for Argentina, that, after the election of the new government, there was a big devaluation. And here we see the effect to the official went from ARS 366 per dollar to ARS 800 in a day. So that was a big gap at that time between the 2 dollars, the blue chip swap to the formal was 2 or 3x higher. So the farmers were really, the Brazilian, very low to the regular dollar. But now after this new measures, farmers are in a gap of 20%, something like that, plus the blend the farmers received less than 20% gap. So really, farmers are in a much better shape. And this is benefiting a lot to the farmers of our country. And if we move to next page, in the Page #6, we see a little deeper the crop production. We have like a stable size in the region, the crop production is 1,000 tonnes. It's close to these 800,000 tonnes, combining Argentina and the rest. We see the evolution of sugarcane to stable this year, better than last year in yields, 2.1 million kilograms -- 2.1 million tonnnes of sugarcane in the region, mainly Brazil, but some in Bolivia. Crop yields a little better when we compare it to last year, very affected to the humid part of Argentina. This year, not but some climate conditions, we see a 7% better in soybean yield, a 2% in corn yields. So it's more stable year related to yields, but lower prices, as I said before. There is one effect affecting our balance sheet, and we brought the page to show it, Argentine beef, the cattle price evolution. The blue -- in the Page #8, we see the blue is Argentina. And when we make the price of Argentina in the real dollar, not in the official dollar, in the blue chip swap, here we see that the dollar, there was a big rebound on the cattle price. And this year, we are having a very good margin in cattle, in 9 months, this is not a year. Last year's our numbers for the whole year. But last year, 9 months were $3 million. This year, for 9 months, we are at $6 million in the cattle activity in Argentina. Argentina represents 6,100 heads, the rest 24% is in Brazil and Paraguay. So good year, helping the balance sheet for cattle business in Argentina. And talking about the real estate, the 2 transactions that were explained before, the small portion in Los Pozos, the small portion in Le Tigre. There thy are the 2 sales, but there is a big transaction coming in the fourth quarter, and we brought a little more information. We sold 12,000 hectares from those [indiscernible] land, 8,800 hectares, and we have still 25,000 hectares on that farm. So this is a small sell for that farm. We sold for BRL 365 million. From those, BRL 53 million were collected. And they are going -- when we give position to the owners, we are going to present that on the balance sheet in the fourth quarter of this year, that made an 8% internal rate of return in dollars, and the gain will be recognized more than BRL 200 million on the fourth quarter. Saying that, we can move to the next page. In FyO numbers, FyO our agricultural commercial service, remembering that Cresud makes the activity in 3 steps. One is the operational, just rains, sugarcane, cattle, one is the real estate, and the third, the service part. And here, we see the evolution of our company called FyO that is recovering -- last year had a drop because Argentine suffered and went to almost half, but FyO didn't suffer so much and made a very good year in the 5.5 million tonnes. This year, we are planning to have more than 7 million tonnes. And this company is making a huge EBITDA. So we are going to see on the balance sheet, the proportion of this bringing, it's like another big step for our strategy. And here, Cresud owns 51% of the company. This is not only volume of selling, trading, commercial services, service inputs, advising to farmers, not only in Argentina going to the region. So this is a new step that is becoming relevant and more relevant every quarter. Saying that, I will now introduce Matias to talk about some of our investment in IRSA.

Thank you, Alejandro. Good afternoon, everybody. So about our investment in IRSA, remember that we control IRSA with almost 55% of the shares. We have mixed results during the quarter. On the 9-month period, we posted a loss of ARS 111 billion. That was mainly explained by the fair value of our investment properties. Remember that we value shoppings, offices and land bank at fair value. And when we have to give impact to the devaluation and inflation over those properties that remain stable in dollar terms, that generate a loss in pesos term. If we see the 9 months adjusted EBITDA, we posted a gain of ARS 112 billion. That is 9% above the same figures than previous year. But when we open a little more that number between the first 6 months and the last 3 months, we will see that there is a decrease in our EBITDA in the last 3 months that is related to the normalization of the macroeconomic situation of Argentina. After the evaluation and the acceleration of inflation, our tenant sales have been decreasing in real terms, and that is the effect that we see also in the EBITDA. Regarding the tenant sales, as I mentioned, there is an dis-acceleration of consumption in the last months in Argentina. There is some -- real wages were affected, and there is some reduction in consumption. About the occupancy, in all the segments, most offices and hotels remain at very high levels. On the financial side, IRSA concluded buyback programs that acquire around 1.7% of the shares in the market, and also approved a dividend of ARS 55 billion that Cresud already collected our part. About the -- on the right side, the rental EBITDA in dollar terms, we can see that numbers remain stable, $161 million of last 12 months EBITDA, that is 23% above the pre-pandemic levels and slightly decreased against the figures in fiscal year '23. Going to the next page. To understand the financial results of Cresud, first, we need to understand what happened on the macroeconomic side. There was a devaluation in December, and then the FX -- the official FX was stable with an evolution of only 6%. And the inflation in that period accelerated to levels of 52% during the quarter. So with this, we can see on the bottom left that the official FX in real terms only increased by 7% during the quarter or during the fiscal year, against an appreciation last year of 4%. And in the blue chip swap, also we can see that the dollar remained stable compared with December. And in real terms, that is a strong appreciation of the peso in that period. So moving to the next page. We can see on the [indiscernible] business side that our operating results are much better than the previous year. Remember that the previous year we have a strong drought in Argentina, so there is -- and now this year is much better in terms of weather conditions. So we will have positive numbers. Somehow compensated by lower prices. Prices are, in grains, around 20% below previous year, that somehow compensate the increase on the production. When you see the farming sales, as Alejandro mentioned, during this year, we have only the 2 transactions that we did in Argentina. The next quarter, we will have the big impact on the transaction on Brazil. So we expect to see an important number there. FyO, our agricultural service company, are showing better results. And when we opened the farming activity, we see much better results in grains that is related mainly to Argentina that we have better yields, similar surface, and lower prices compared with the previous year. And in Brazil, that is -- the production was very affected by prices. The sugarcane is the same. We see a strong decrease in prices, and that generated that loss. Sometimes when we convert numbers of pesos -- or dollars into pesos, we have the impact of the inflation. So we have here to give impact on real terms of the pesos that sometimes generate distortions in the numbers. If we see the production maybe in the case of the cattle, Alejandro showed, good results. But when we give impact to the inflation adjustment, part of the increase is allocated to the inflation. Going to the next page. So leaving aside the change in the fair value, we see an operating income increasing by 122%. And then regarding the fair value of investment properties here is mainly related to IRSA. All the properties remain stable in dollar terms, but when we express those dollars into real pesos, we see this loss of almost ARS 377 billion, that really affect the net income line. About the consolidated financial results, the net financial results, we see a gain of ARS 93.6 billion, mainly explaining the first line of fair value of financial assets. This is to all the liquidity, mainly of IRSA and FyO that was exposed to dollars. And with the devaluation, we generate a positive result. The net income, there is a reduction that also Cresud was exposed having pesos debt that in real terms generate gains, and then the inflation adjustment that generated a loss of ARS 15.6 billion, and the net FX results also in the devaluation of ARS 12.3 billion compared with a gain last year that was an appreciation of the peso. About the dividend, we decided to distribute dividend in advance of our shareholders' meeting of October. So the amount was decided was ARS 30 billion. That was a dividend yield of around 4.5% that we will start to pay since tomorrow here in Argentina. And regarding our ADR holders, we expect the payment to happen in the next 20 days. And finally, on Page 18, we have the evolution of our net debt that we can see a reduction -- $303 million that is distributed in the coming years. So no concentrations of amortizations in the short term. During the quarter and after -- during April, we issued 2 new series of debt in Argentina. So we raised $74.4 million. Part we did in pesos term and part in dollars at a coupon of 6%. So there is still availability of financing in Argentina at good rates, and Cresud is taking advantage of that. So with this, we finish the formal presentation. Now we open the line to receive your questions.

Thank you. Well, now it's the time for the Q&A session. [Operator Instructions] Yes, there is the first question. If you could speak to how management thinks about the best path forward continue to harvest the discount to value, we are seeing across IRSA and Cresud in the market. Is there a preference between repurchasing shares, dividends and/or continuing mix of both? And if there is a healthy appetite to do so in the future. I don't know, Matt, if it's clear, but I think it's related to the arbitrage between IRSA and Cresud in the last days.

Yes. We always think our own capital structure and try to be active on that. And we have been doing in the last years, we decided not to be so aggressive on the CapEx side because we saw good opportunities to keep buying back shares or paying dividends, thinking that, that could help in reducing our discount. We are trying with an important discount against our NAV. Preference between shares and dividends. We will do -- always the way that we decide is to analyze liquidity, level of debt and CapEx plan. So it's tough in Argentina to fix a policy because the volatility of Argentina. So sometimes appears opportunity that we try to take advantage. So it's tough to say something that will be fixed in the future. But if we see our behavior in the last years, we pay dividend every time that we could. We buy back shares with the limitations of the regulation, now it's not easy, or that we have to fulfill the regulation and there is a certain amount of shares that we can buy because that is limited by the CMB, the local SEC, about the volume that we can do per day. So it's a little limited by the liquidity that we have in our shares. But it's something that we like and we will keep doing if we see this gap and discount on our shares.

Yes, there is a question related to the amounts of the warrants of Cresud. If we are going to update it after the dividend, the strike price of the warrant.

Yes, that, according to the warrant agreement, every time that we approve dividends, we have to give impact to the strike price and the conversion ratio, to give impact of the dividend. Now the idea is that the warrant holders will have the same rights than the shareholders. So if we distribute a dividend, then we have to reduce the price of the strike, so that will happen after tomorrow that we will distribute the dividend.

And additional question on that same question, which is the dollar that you take into account to exercise the option?

The dollar is implicit exchange rate between the ADR and the local shares. It's the [indiscernible] exchange rate now, but we are using our own shares to calculate that amount. The idea was always our shares trade with that gap of the blue chip swap. So the idea was not to put -- we did it at the beginning, now not to use the official exchange rate. So to use the exchange rate that is implicit in our shares.

Waiting some minutes more if there is any additional questions. Can use the chat. Okay. If there are no more questions, we conclude the presentation and the Q&A session. And now we'll turn back to Alejandro Elsztain, CEO, for his closing remarks.

We are finishing the next quarter of the year. We are planning a good campaign for next. We are finishing this one, understanding that the margin in the operational won't be as good as expected because of drop of prices. And expecting the yields are going to keep as they are. And we are finishing, and this is going to be finished with majority before the 30th of June. Some minority will remain up to July with the corn. And we are beginning now to budget and to plan next year. And so we -- the combination of these 3 strategies, the operational and increasing, we are thinking on increasing again for next year the size in plantation in the combination of the real estate. Every time the farm is ready, sell it and buying in another region. And the service, the 3 are the same. We are very optimistic on the future of Cresud. So let's see how we finish next year in the 30th of June. We are going to present those numbers in September. But we are optimistic on that. And in the case of IRSA, IRSA is bringing very good numbers, the same. So very good recovery in the financial situation. So all the assets of Cresud are really in a very, very good shape. And a big decrease on the debt that we saw comparing year-to-year. So we are optimistic on the strategy of Cresud. Just to thank you, everybody, for this time. And in the next quarter, we see you then. Bye. Thank you.