Alejandro Elsztain - CEO Carlos Blousson - General Manager of Argentina and Bolivia Matias Gaivironsky - CFO

Good afternoon everyone, and welcome to Cresud's Full Year 2015 Results Conference Call. Today's live webcast, both audio and slide show may be accessed through the company's Investor Relations website at www.cresud.com.ar/ir, by clicking on the banner Teleconference. The following presentation and the earnings release issued last week are also available for download on the company website. After managements' remarks, there will be a question-and-answer session for analysts and investors. At that time, further instruction will be given. [Operator Instructions]. You will also have the possibility of sending a question via webcast by clicking on the question to host tool. Before we begin, I would like to remind you that this call is being recorded and that the information discussed may include forward-looking statements regarding the company's financial and operating results. 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, Chief Executive Officer. Please go ahead, sir. Hello?

Good afternoon, everybody. We are beginning our results of fiscal year 2015 and we will be beginning with Page number 2 about the highlights for the whole year. We can see that our revenues grew 23% from during the last year achieving Ps. 5.6 billion. Our operating income almost Ps. 2.8 billion, it's 135% comparing to last year’s numbers. The net income for the company for the year was a gain of Ps. 750 million comparing to a loss of Ps. 1.4 billion last year in 2014. If we talk about the Cresud shareholder, the gain for the Cresud shareholder was Ps. 114 million comparing to a loss of almost Ps. 1 billion last year. If we talk about Agro-Uranga [ph] farming industry, we experienced a good year. We had a good year in harvest almost in the whole region. We planted 211,000 hectares and we had very good growth in fields in majority of our farms. But the prices of the world were very bad and that affected us a lot in the farming industry, so the effect of [indiscernible] was not compensated because of the drop in the prices and we had lower results in the farming that we are going show you later. In the other side, we had very good results on the development and in the sales of farms. We had a record of farm sales and we had a gain of Ps. 551 million that compensated that gain through the sales of last year -- that we didn’t have last year, so the full results in target is lower in comparing to last year, was more than compensated because of that gain in the farmlands sales. Development dropped comparing to last year, but still 11,000 [indiscernible] on the basis of development for that year.…

Thank you, Alejandro. Good evening everyone. I’ll continue with Page 8. As expected the weather conditions were positive in the region, with good rains in quantity and also well in [indiscernible] in the area. Temperatures were normal for this season. [Indiscernible] generated good production accomplishments. As we see at the [indiscernible] results, in general global good yield in [indiscernible]. However [indiscernible] were normal in the last quarter are remained stable throughout the period. Grains in Bolivia and Paraguay also present normal value. Production, a forecast production in Bolivia of all the [indiscernible] from Argentina, soybean production for this campaign [ph] increased 12% reaching about 51 million tonnes, this is a record in soybean production. With regard to corn, it's stagnant at 26 million tonnes for this campaign. Remember it has a bit similar for the last three years, with the direct consequence of the high production cost and the lower price, making this crop unattractive to the farmers. Soybean production in the field continues its upward trend and it reached a 9% rise to the entire million tonnes. Corn production increased 5% reaching 54 million tonnes due to the positive weather conditions. Regarding the 2015-16 campaign in the [indiscernible] the soybean planting area is expected to increase slightly compared to corn because of the better soybean price. Both soybean and corn in the United States continue their higher production levels with the slight decrease in corn because all of corn replaced by soybean reaching a 130 million tonnes on [indiscernible] tonnes respectively. This positive increase in production will improve the relationship between supply and demand, thus continuing to affect commodity price. Moving to the next -- moving to Page 9, I’ve always talk on [indiscernible] of corn and soybean which is large soybean evolution and we start construction very soon…

Thank you Carlos. Good evening everybody. Going to Page 13. Here we include the description of our investment in IRSA, remember that we control 64.8% of IRSA and here we include different results from IRSA segment, so in shopping center we increased by 29%, reaching Ps. 1.8 billion in shopping sales and Ps. 1.327 billion in EBITDA of shopping center, that is a 31% increase. The rest of the segment we have very good results. In offices, an increase of 23% in revenues and 18% in EBITDA. In hotel 20% in revenues and 13% in EBITDA and important increase in sales and development IRSA disposed some investment properties and also building in Manhattan, Madison building. So we increased significantly result from the sales and development business line. EBITDA margin of shopping centers 74.6% against 73.1% in the previous year and the offices on a consolidated basis 71.4% against 69.6. So shopping center is still the most important segment for IRSA which amounted 50% of their consolidated results of IRSA and excluding the site and development 75%. Going to Page 14, the main explanation of our operating income on a consolidated basis at grass root level [ph], we have this year a very important increase in results from farmland sales as Alexandro explained this year was a record in our story of this [indiscernible] farms mainly in Brazil and in Bolivia and some in Paraguay so the results increased from Ps. 78 million in the previous fiscal year to Ps. 551 million in this fiscal year. We sold last year 2,000 hectares and this year 54,000 hectare, that is the main explanation of this increase. In the farming segment here we divide between Newcastle grains and sugarcane and we have lower results from Ps. 131.1 million of loss in the previous…

Perfect. So closing the year, we closed a very good year at the real estate level, real estate and agriculture, very good on farm and productivity. We expect normal conditions for the climate, the conditions of the farm are good today. We are expecting a good campaign, somethings are changing on the environment, in micro on the region, Brazil had a lot of changes during this period and so we expect to have normal conditions for next year and keep doing our job of developing and selling [indiscernible]. So thank you very much and have a very good day.

Thank you. This does conclude today’s presentation. You may disconnect your line at this time and have a nice day.