CRESY 6-K, filed Jan 5, 2021, 0001654954-21-000137

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of January 2021.

Commission File Number 001-29190

Cresud Sociedad Anónima Comercial Inmobiliaria

Financiera y Agropecuaria

(Exact name of registrant as specified in its charter)

Cresud Inc.

(Translation of registrant’s name into English)

Carlos Della Paolera 261

(C1001ADA) Ciudad Autónoma de Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached Form 6-K to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

TABLE OF CONTENTS

Page

Explanatory Note	1
Disclaimer Regarding Forward-Looking Statements	2
Available Information	2
Presentation of Financial and Certain Other<br>Information	3
Selected Consolidated Financial Data	5
Local Exchange Market and Exchange Rates	12
Information on the Company	13
Operating and Financial Review and Prospects	47
Directors, Senior Management and Employees	95
Major Shareholders and Related Party Transactions	96
Controls and Procedures	97
Signatures	99

EXPLANATORY NOTE

Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria (“Cresud,” the “Company,” “we,” “our” or “us”) is filing this report on Form 6-K (this “Form 6-K”) pursuant to SEC Financial Reporting Manual, Topic 13 – Effects of Subsequent Events on Financial Statements Required in Filings, which requires retrospective revision of audited financial statements that are incorporated by reference in a registration statement to reflect a subsequent change in accounting principle (or consistent with staff practice, discontinued operations and changes in segment presentation) if the registration statement also incorporates by reference post-event interim financial statements. Exhibit 99.1 to this Form 6-K includes Cresud’s audited consolidated financial statements as of June 30, 2020 and 2019 and for the fiscal years ended June 30, 2020, 2019 and 2018, which have been recast to: (a) present the audited consolidated financial statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements were included in this Form 6-K); and (b) reflect IRSA Inversiones y Representaciones S.A.’s loss of control of IDB Development Corporation, Ltd. (“IDBD”) and Discount Investment Corporation, Ltd. (“DIC”) on September 25, 2020 and, consequently, the deconsolidation of such investees since that date. See “Presentation of Financial and Certain Other Information.” Our Audited Consolidated Financial Statements included as Exhibit 99.1 to this Form 6-K amend and replace in their entirety the audited consolidated financial statements of Cresud included in Cresud’s annual report on Form 20-F for the fiscal year ended June 30, 2020 (our “2020 Form 20-F”) originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 16, 2020, and the other information in this Form 6-K amends and replaces information set forth in our 2020 Form 20-F to the extent the information contained in our 2020 Form 20-F conflicts with the information contained herein. Exhibit 99.2 to this Form 6-K includes Cresud’s unaudited condensed interim consolidated financial statements as of September 30, 2020 and for the three-month periods ended September 30, 2020 and 2019. This Form 6-K should be read in conjunction with our 2020 Form 20-F.

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

This Form 6-K includes forward-looking statements, principally under “Risk Factors,” “Information on the Company” and “Operating and Financial Review and Prospects.” We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors, in addition to those discussed elsewhere in this Form 6-K, could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things:

Factors that could cause actual results to differ materially and adversely include but are not limited to:

●

changes in general economic, financial, business, political, legal, social or other conditions in Argentina, Brazil and Latin America or changes in developed markets or emerging markets or both;

●

changes in capital markets in general that may affect policies or attitudes toward lending to or investing in Argentina or Argentine companies, including volatility in domestic and international financial markets;

●

inflation and deflation;

●

ongoing economic impacts of the COVID-19 pandemic on the Argentine economy;

●

measures adopted by the Argentine Government in response to the COVID-19 pandemic;

●

impact on our business of the COVID-19 pandemic;

●

economic consequences of the pandemic and the related impact on our business and financial condition;

●

fluctuations in the exchanges rates of the peso and in the prevailing interest rates;

●

increases in financing costs or our inability to obtain additional financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities;

●

current and future government regulation and changes in law or in the interpretation by Argentine courts;

●

price fluctuations in the agricultural and real estate market;

●

political, civil and armed conflicts;

●

adverse legal or regulatory disputes or proceedings;

●

fluctuations and declines in the aggregate principal amount of Argentine public debt outstanding, default of sovereign debt;

●

government intervention in the private sector and in the economy, including through nationalization, expropriation, labor regulation or other actions;

●

restrictions on transfer of foreign currencies and other exchange controls;

●

increased competition in the shopping mall sector, office or other commercial properties and related industries;

●

potential loss of significant tenants at our shopping malls, offices or other commercial properties;

●

our ability to take advantage of opportunities in the real estate market on a timely basis;

●

restrictions on energy supply or fluctuations in prices of utilities in the Argentine market;

●

our ability to meet our debt obligations;

●

shifts in consumer purchasing habits and trends;

●

technological changes and our potential inability to implement new technologies;

●

deterioration in regional, national or global businesses and economic conditions;

●

changes on the applicable regulations to currency exchange or transfers;

●

incidents of government corruption that adversely impact the development of our real estate projects;

●

fluctuations and declines in the exchange rate of the peso, the U.S. dollar against other currencies; and

●

the risk factors discussed under “Risk Factors” in our 2020 Form 20-F.

You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” “anticipates,” “could,” “target,” “projects,” “contemplates,” “potential,” “continue” or similar expressions. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we furnish this Form 6-K because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this Form 6-K might not occur and are not guarantees of future performance.

You should not place undue reliance on such statements which speak only as of the date that they were made. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we might issue in the future.

AVAILABLE INFORMATION

We file annual and current reports and other information with the SEC. You may obtain any report, information or other document we file electronically with the SEC at the SEC’s website (http://www.sec.gov) or at our website (http://www.cresud.com.ar). The information contained in our website is not incorporated by reference herein and does not form part of this Form 6-K.

PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION

In this Form 6-K, references to “Cresud,” the “Company,” “we,” “us” and “our” means Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria and its consolidated subsidiaries, unless the context otherwise requires, or where we make clear that such term refers only to Cresud and not to its subsidiaries.

The terms “Argentine government” and “government” refer to the federal government of Argentina, the term “Central Bank” refers to the Banco Central de la República Argentina (the Argentine Central Bank), the terms “CNV” and “CNV Rules” refer to the Comisión Nacional de Valores (the Argentine National Securities Commission) and the rules issued by the CNV, respectively. In this Form 6-K, when we refer to “peso,” “pesos” or “ARS” we mean Argentine pesos, the legal currency of Argentina, and when we refer to “U.S. dollar,” “U.S. dollars” or “USD” we mean United States dollars, the legal currency of the United States.

References to “ADSs” are to the American Depositary Shares, each representing 10 shares of our common stock, issued pursuant to the deposit agreement, dated as of March 18, 1997 (the “deposit agreement”), between us, The Bank of New York, as depositary (the “ADS Depositary”), and the owners and holders of the ADSs issued from time to time thereunder, and references to “ADRs” are to the American Depositary Receipts, which represent the ADSs.

Financial Statements

We prepare and maintain our financial books and records in pesos and in conformity with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), and the CNV Rules. Our fiscal year begins on July 1 and ends on June 30 of each year.

The following have been filed as exhibits to this Form 6-K:

●

our audited consolidated financial statements as of June 30, 2020 and 2019 and for our fiscal years ended June 30, 2020, 2019 and 2018 (our “Audited Consolidated Financial Statements”), which have been recast to: (a) present the Audited Consolidated Financial Statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements are included in this Form 6-K); and (b) reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date; and

●

our unaudited condensed interim consolidated financial statements as of September 30, 2020 and for the three-month periods ended September 30, 2020 and 2019 (our “Unaudited Condensed Interim Consolidated Financial Statements” and, together with our Audited Consolidated Financial Statements, our “Financial Statements”).

Our Audited Consolidated Financial Statements have been approved by our Board of Directors on January 5, 2021 and have been audited by Price Waterhouse & Co S.R.L., Argentina, member of PriceWaterhouseCoopers International Limited, an independent registered public accounting firm whose report is included herein.

Deconsolidation of IDBD and DIC

Prior to September 25, 2020, we managed our business and operations in Israel through our subsidiaries IDBD and DIC. On September 25, 2020, the District Court in Tel Aviv-Jaffa (the “Court”), in response to a petition from IDBD’s creditors, declared the insolvency of IDBD and initiated liquidation proceedings (the “Liquidation Proceedings”). The Court appointed a trustee for IDBD’s shares and receivers for DIC’s and Clal’s shares.

Under IFRS 10 “Consolidated Financial Statements” (“IFRS 10”), an investor controls an investee if and only if the investor has all the following: (a) power over the investee; (b) exposure, or rights, to variable returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of the investor’s returns. Based on the facts and circumstances outlined above, our management believes that, as from September 25, 2020, IRSA lost control over IDBD and DIC (as this term is defined by IFRS 10). Accordingly, (a) our investment in IDBD and DIC has been deconsolidated in our Unaudited Interim Financial Statements, and (b) our Audited Consolidated Financial Statements have been restated to reflect the deconsolidation of IDBD and DIC.

Functional and Presentation Currency; Adjustment for Inflation

Our functional and presentation currency is the peso, and our Financial Statements filed as exhibits to this Form 6-K are presented in pesos.

IAS 29, Financial Reporting in Hyperinflationary Economies (“IAS 29”) requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be measured in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. This requirement also includes the comparative information of the financial statements.

In order to conclude that an economy is “hyperinflationary,” IAS 29 outlines a series of factors, including the existence of an accumulated inflation rate in three years that is approximately or exceeds 100%. As of July 1, 2018, Argentina reported a cumulative three-year inflation rate greater than 100% and therefore financial information published as from that date should be adjusted for inflation in accordance with IAS 29. Therefore, our Financial Statements and the financial information included in this Form 6-K have been presented in terms of the measuring unit current at the end of the reporting period as of September 30, 2020. For more information, see “—Financial Statements” and Note 2.1 to our Audited Consolidated Financial Statements.

Effective July 1, 2018, we adopted IFRS 15, Revenues from contracts with customers (“IFRS 15”) and IFRS 9, Financial instruments (“IFRS 9”) using the modified retrospective approach, so that the cumulative impact of the adoption was recognized in the retained earnings at the beginning of the fiscal year starting on July 1, 2018, and the comparative figures were consequently not modified. Accordingly, certain comparisons between periods may be affected. See Note 2.2 to our Audited Consolidated Financial Statements and “Operating Review and Prospects—New Accounting Pronouncements” for a more comprehensive discussion of the effects of the adoption of these new standards.

Organizational Structure

As of September 30, 2020, we had two business lines to manage our global business, which we refer to in this Form 6-K as “Agricultural Business” and “Urban Properties and Investments Business” derived from our subsidiary IRSA, which is in turn had two operations centers to manage its global business, which we refer to in this Form 6-K as the “Operations Center in Argentina” and the “Operations Center in Israel.” Following the loss of control of IDBD and DIC on September 25, 2020, and starting on October 1, 2020, we will manage our global business from our Operations Center in Argentina. See above “—Deconsolidation of IDBD and DIC.”

Currency Translations

We have translated some of the peso amounts contained in this Form 6-K into U.S. dollars for convenience purposes only. Unless otherwise specified or the context otherwise requires, the rate used to convert peso amounts to U.S. dollars is the seller exchange rate quoted by Banco de la Nación Argentina of ARS 76.18 per USD 1.00 for information provided as of September 30, 2020. The U.S. dollar equivalent information presented in this Form 6-K is provided solely for the convenience of the reader and should not be construed as implying that the peso amounts represent, or could have been or could be converted into, U.S. dollars at such rates or at any other rate. The seller exchange rate quoted by Banco de la Nación Argentina was ARS 84.70 per USD 1.00 as of January 4, 2021. See “Local Exchange Market and Exchange Rates” and “Risk Factors—Risks relating to Argentina—Continuing inflation may have an adverse effect on the economy and our business, financial condition and the results of our operations” in our 2020 Form 20-F.

Market Share Data

Information regarding market share in a specified region or area is based on data compiled by us from internal sources and from publications such as Bloomberg, the International Council of Shopping Centers, the Argentine Chamber of Shopping Centers (Cámara Argentina de Shopping Centers), and the INDEC.

Certain Measurements

In Argentina the standard measure of area in the real estate market is the square meter (m2), while in the United States and certain other jurisdictions the standard measure of area is the square foot (sq. ft.). All units of area shown in this annual report (e.g., gross leasable area of buildings (“GLA” or “gross leasable area”), and size of undeveloped land) are expressed in terms of square meters (“sqm” and “m2”). One square meter is equal to approximately 10.8 square feet. One hectare is equal to approximately 10,000 square meters and to approximately 2.47 acres.

In Argentina the standard measure of weight are the tons (“Tons,” “tons” or “Tns”) and kilograms (“kg” or “kgs”), while in the United States and certain other jurisdictions the standard measure of weight are the pound or the bushel. A metric ton is equal to 1,000 kilograms. A kilogram is equal to approximately 2.2 pounds. A metric ton of wheat is equal to approximately 36.74 bushels. A metric ton of corn is equal to approximately 39.37 bushels. A metric ton of soybean is equal to approximately 36.74 bushels. One kilogram of live weight cattle is equal to approximately 0.5 to 0.6 kilogram of carcass (meat and bones).

As used herein, GLA in the case of shopping malls refers to the total leasable area of the property, regardless of our ownership interest in such property (excluding common areas and parking and space occupied by supermarkets, hypermarkets, gas stations and co-owners, except where specifically stated).

Rounding Adjustments

Certain numbers and percentages included in this Form 6-K have been subject to rounding adjustments. Accordingly, figures shown for the same category presented in various tables or other sections of this Form 6-K may vary slightly, and figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them.

SELECTED CONSOLIDATED FINANCIAL DATA

The following table presents our selected financial data as of June 30, 2020, 2019 and 2018 and for the fiscal years ended June 30, 2020, 2019, 2018 and 2017. The selected consolidated statement of income and other comprehensive income data and the selected consolidated statement of cash flow data for the fiscal years ended June 30, 2020, 2019 and 2018 and the selected consolidated statement of financial position data as of June 30, 2020 and 2019 have been prepared in accordance with IFRS, as issued by the IASB, and CNV Rules, and have been derived from our Audited Consolidated Financial Statements included as an exhibit to this Form 6-K, which have been recast to: (a) present the Audited Consolidated Financial Statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements were included in this Form 6-K); and (b) reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date. The selected consolidated statement of income and other comprehensive income data and the selected consolidated statement of cash flow data for the fiscal year ended June 30, 2017 and the selected consolidated statement of financial position data as of June 30, 2018 have been prepared in accordance with IFRS, as issued by the IASB, and CNV Rules, and have been derived from our audited consolidated financial statements as of June 30, 2019 and 2018 and for the years ended June 30, 2019, 2018 and 2017 filed as an exhibit to our Annual Report on Form 20-F filed with the SEC on October 31, 2019, recast to present such financial information in the measuring unit current as of September 30, 2020 and reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date. The summary financial data as of June 30, 2017 and 2016 and for the fiscal year ended June 30, 2016 have not been presented as these cannot be provided on a restated basis without unreasonable effort or expense. See “Presentation of Financial and Other Information—Functional and Presentation Currency,” “Operating and Financial Review and Prospects—Results of Operations— Effects of Changes in Inflation,” “Risk Factors—Risk Related to Argentina—If the high levels of inflation continue, the Argentine economy and our results of operations could be adversely affected in our 2020 Form 20-F,” and Note 2 to our Audited Consolidated Financial Statements.

The following table also presents our selected financial data as of September 30, 2020 and 2019 and for the three-month periods ended September 30, 2020 and 2019. The selected interim consolidated statement of income and comprehensive income data and the selected interim consolidated statement of cash flow data for the three-month periods ended September 30, 2020 and 2019 and the selected interim consolidated statement of financial position data as of September 30, 2020 have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the IASB and have been derived from our Unaudited Condensed Interim Consolidated Financial Statements included as an exhibit to this Form 6-K. The results of our operations for the three-month period ended September 30, 2020 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2021.

You should read the information below in conjunction with our Financial Statements, including the notes thereto.

Summarized Consolidated Financial and Other Information

Summary of consolidated accounting and other information of the Company according to IFRS:

	For<br>the period ended September 30,
	2020 (i)<br>(ii)	2020	2019
Consolidated Statements of Income and Other Comprehensive<br>Income	in millions of USD	in millions of ARS (except per share data)
Revenues	127	9,676	13,082
Costs	(105)	(7,984)	(9,090)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	9	679	511
Changes<br>in the net realizable value of agricultural products after<br>harvest	7	528	531
Gross profit	38	2,899	5,034
Net<br>gain from fair value adjustment of investment<br>properties	311	23,676	12,121
Gain<br>from disposal of farmlands	1	81	290
General<br>and administrative expenses	(13)	(979)	(1,032)
Selling<br>expenses	(16)	(1,213)	(1,091)
Other<br>operating results, net	4	275	383
Management fees	(6)	(470)	-
Profit from operations	319	24,269	15,705
Share<br>of profit of associates and joint ventures	2	134	870
Profit before financial results and income tax	321	24,403	16,575
Finance<br>income	3	216	99
Finance<br>cost	(38)	(2,887)	(2,908)
Other<br>financial results	-	(10)	(15,027)
Inflation<br>adjustment	2	177	(415)
Financial results, net	(33)	(2,504)	(18,251)
Profit / (Loss) before income tax	288	21,899	(1,676)
Income<br>tax	(105)	(7,977)	(2,719)
Profit / (Loss) for the period from continuing<br>operations	183	13,922	(4,395)
Profit<br>for the period from discontinued operations	(84)	(6,396)	13,887
Profit for the period	99	7,526	9,492
Other<br>comprehensive (loss) / income:
Items that may be reclassified subsequently to profit or<br>loss:
Currency<br>translation adjustment and other comprehensive (loss) / income from<br>subsidiaries	(52)	(3,932)	4,487
Items that may not be reclassified subsequently to profit or<br>loss:
Revaluation<br>of fixed assets transferred to investment properties	5	353	-
Actuarial<br>loss from defined benefit plans	-	-	(11)
Other comprehensive income for the year from continuing<br>operations	(47)	(3,579)	4,476
Other<br>comprehensive income for the year from discontinued<br>operations	(63)	(4,794)	14,057
Total other comprehensive income for the year	(110)	(8,373)	18,533
Total comprehensive income for the year	(11)	(847)	28,025
Total<br>comprehensive income from continuing operations	136	10,343	156
Total<br>comprehensive income from discontinued operations	(147)	(11,190)	27,869
Total comprehensive income for the year	(11)	(847)	28,025
Profit of the year attributable to:
Equity<br>holders of the parent	38	2,893	(3,193)
Non-controlling<br>interest	61	4,633	12,685
Profit / (Loss) from continuing operations attributable<br>to:
Equity<br>holders of the parent	79	6,047	(5,856)
Non-controlling<br>interest	104	7,875	1,461
Total comprehensive income attributable to:
Equity<br>holders of the parent	9	692	(2,363)
Non-controlling<br>interest	(20)	(1,539)	30,388

	Period ended September 30, 2020 (i)(ii)	Period ended September 30, 2020	For the fiscal year ended June 30, 2020
Consolidated Statements of Financial Position	in millions of USD	in millions of ARS (except per share data)
ASSETS
Non-current<br>assets
Investment<br>properties	2,222	169,290	247,786
Property, plant and<br>equipment	346	26,331	64,546
Trading<br>properties	17	1,329	5,228
Intangible<br>assets	21	1,622	30,350
Right-of-use<br>assets	44	3,379	23,607
Biological<br>assets	26	1,981	1,894
Investments in<br>associates and joint ventures	177	13,449	80,879
Deferred income tax<br>assets	12	949	998
Income tax and MPIT<br>credits	1	64	66
Restricted<br>assets	1	69	2,084
Trade and other<br>receivables	96	7,323	29,418
Investment in<br>financial assets	7	508	3,784
Financial assets<br>held for sale	-	-	-
Derivative<br>financial instruments	-	10	177
Total<br>non-current assets	2,970	226,304	490,817
Current<br>assets
Trading<br>properties	3	218	2,493
Right-of-use<br>assets	-	-	-
Biological<br>assets	32	2,434	2,985
Inventories	59	4,514	9,764
Restricted<br>assets	-	8	6,684
Income tax and MPIT<br>credits	1	104	329
Groups of assets<br>held for sale	26	1,984	47,170
Trade and other<br>receivables	198	15,091	47,064
Investment in<br>financial assets	39	2,947	19,585
Financial assets<br>held for sale	-	-	3,636
Derivative<br>financial instruments	1	67	346
Cash and cash<br>equivalents	174	13,223	108,652
Total current<br>assets	533	40,590	248,708
TOTAL<br>ASSETS	3,506	266,894	739,525
SHAREHOLDERS’<br>EQUITY
Share<br>capital	7	499	499
Treasury<br>shares	-	3	3
Inflation<br>adjustment of share capital and treasury shares	139	10,572	10,572
Share<br>premium	150	11,403	11,403
Additional paid-in<br>capital from treasury shares	1	97	97
Legal<br>reserve	5	402	402
Special<br>reserve	11	829	829
Other<br>reserves	34	2,580	1,084
Retained<br>earnings	67	5,090	2,197
Equity attributable<br>to equity holders of the parent	414	31,475	27,086
Non-controlling<br>interest	804	61,207	104,419
TOTAL<br>SHAREHOLDERS’ EQUITY	1,218	92,682	131,505
LIABILITIES
Non-current<br>liabilities
Borrowings	686	52,255	344,946
Deferred income tax<br>liabilities	638	48,510	53,256
Trade and other<br>payables	34	2,759	3,215
Provisions	2	175	3,328
Employee<br>benefits	-	-	480
Income tax and<br>minimum presumed income tax liabilities	-	3	-
Derivative<br>financial instruments	2	156	80
Lease<br>liabilities	38	2,908	16,357
Payroll and social<br>security liabilities	1	84	266
Total non-current<br>liabilities	1,403	106,850	421,928
Current<br>liabilities
Trade and other<br>payables	179	13,720	38,565
Borrowings	624	47,535	105,921
Provisions	1	111	2,630
Group of<br>liabilities held for sale	21	1,584	25,459
Payroll and social<br>security liabilities	10	763	5,043
Income tax and MPIT<br>liabilities	3	248	887
Lease<br>liabilities	17	1,324	6,094
Derivative<br>financial instruments	27	2,077	1,493
Total<br>Current liabilities	882	67,362	186,092
TOTAL<br>LIABILITIES	2,285	174,212	608,020
TOTAL<br>SHAREHOLDERS’ EQUITY AND LIABILITIES	3,503	266,894	739,525

	For<br>the period ended September 30,
	2020 (i)(ii)	2020	2019
Consolidated Statements of Cash Flows	in millions of USD	in millions of ARS (except per share data)
Net<br>cash generated from operating activities	57	4,337	11,901
Net<br>cash generated from investing<br>activities	532	40,540	3,262
Net<br>cash used in financing<br>activities	(397)	(30,240)	(35,960)
	2020 (i)(ii)	2020	2019
---	---	---	---
Other Financial Data	in millions of USD	in millions of ARS(except per share data)
Basic net income<br>per share (1)	0.076	5.793	(6.565)
Diluted net income<br>per share (2)	0.074	5.621	(6.565)
Basic net income<br>per ADS (1)(3)	0.760	57.930	(65.650)
Diluted net income<br>per ADS (2)(3)	0.738	56.210	(65.650)
Capital<br>stock	7	502	502
Number of common<br>shares	501,642,804	501,642,804	501,642,804
Weighted –<br>average number of common shares outstanding	491,955,676	491,955,676	5,351,167
Diluted weighted<br>– average number of common shares	512,502,321	512,502,321	5,565,477
Dividends<br>paid	-	-	-
Dividends per<br>share	-	-	-
Dividends per<br>ADS	-	-	-
Depreciation and<br>amortization	9	701	519
Capital<br>expenditure	20	1,491	3,788
Working<br>Capital	(351)	(26,772)	62,616
Gross<br>margin	0.28	0.28	0.37
Operating<br>margin	2.34	2.34	1.16
Net<br>margin	0.73	0.73	0.70
Ratio of current<br>assets to current<br>liabilities	0.60	0.60	1.34
Ratio of<br>shareholders’ equity to total<br>liabilities	0.53	0.53	0.22
Ratio of non<br>current assets to total<br>assets	0.85	0.85	0.66
Ratio of<br>“Return on Equity” –<br>ROE	0.07	0.07	N/A.
(i)	Totals<br>may not sum due to rounding.
---	---
(ii)	Solely<br>for the convenience of the reader we have translated peso amounts<br>into U.S. dollars at the seller exchange rate quoted by Banco de la<br>Nación Argentina as of September 30, 2020, which was ARS 76.18<br>per USD 1.00. We make no representation that the peso or U.S.<br>dollar amounts actually represent, could have been or could be<br>converted into U.S. dollars at the rates indicated, at any<br>particular rate or at all. See “Local Exchange Market and<br>Exchange Rates.” Totals may not sum due to<br>rounding.
(1)	Basic<br>net income per share is computed by dividing the net income<br>available to common shareholders for the period by the weighted<br>average common shares outstanding during the period,
(2)	Diluted<br>net income per share is computed by dividing the net income for the<br>period by the weighted average number of common shares assuming the<br>total conversion of outstanding notes and exercise of outstanding<br>options, Due to the loss for the year 2019, there is no diluted<br>effect on this result,
(3)	Determined<br>by multiplying per share amounts by ten (one ADS equals ten common<br>shares),

Summary of consolidated accounting and other information of the Company according to IFRS:

	For<br>the fiscal year ended June 30,
	2020 (i)(ii)	2020	2019	2018	2017
Consolidated Statements of Income and Other Comprehensive<br>Income	in millions of USD	in millions of ARS<br><br><br>(except per share data)
Revenues	560	42,653	40,052	35,754	32,534
Costs	(391)	(29,792)	(24,714)	(21,685)	(19,489)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	40	3,043	2,482	1,802	272
Changes<br>in the net realizable value of agricultural products after<br>harvest	9	707	(46)	572	(388)
Gross<br>profit	218	16,611	17,774	16,443	12,929
Net<br>gain from fair value adjustment of investment<br>properties	480	36,582	(41,596)	20,423	(5,612)
Gain from disposal of<br>farmlands	12	902	715	1,783	679
General and administrative<br>expenses	(51)	(3,870)	(4,553)	(4,003)	(3,805)
Selling<br>expenses	(54)	(4,096)	(2,998)	(3,067)	(2,873)
Impairment of<br>associates	−	−	−	−	−
Other operating results,<br>net	23	1,769	386	1,639	(444)
Management<br>fees	(3)	(227)	−	(1,568)	(666)
Profit from<br>operations	625	47,671	(30,272)	31,650	208
Share<br>of profit of associates and joint ventures	104	7,928	(7,727)	(3,261)	(1,288)
Profit before financial results and income tax	729	55,599	(37,999)	28,389	(1,080)
Finance<br>income	4	332	234	988	1,179
Finance<br>cost	(147)	(11,170)	(7,652)	(6,151)	(5,072)
Other financial<br>results	(149)	(11,322)	4,339	(19,329)	6,653
Inflation<br>adjustment	2	189	(492)	(346)	(3,713)
Financial results,<br>net	(290)	(21,971)	(3,571)	(24,838)	(953)
(Loss) / Profit before income<br>tax	439	33,628	(41,570)	3,551	(2,033)
Income<br>tax	(112)	(8,548)	(571)	10,195	(1,658)
(Loss) / Profit for the fiscal year from continuing<br>operations	327	25,080	(42,141)	13,746	(3,691)
Profit<br>for the period from discontinued operations	(47)	(3,546)	(1,704)	15,773	9,264
Profit for the fiscal<br>year	280	21,534	(43,845)	29,519	5,573
Other<br>comprehensive (loss) / income:
Items that may be reclassified subsequently to profit or<br>loss:
Currency translation<br>adjustment	(250)	(19,037)	402	3,294	(154)
Share<br>of other comprehensive income / (loss) of associates and joint<br>ventures	−	−	−	−	−
Revaluation<br>surplus	3	228	1,196	340	−
Change<br>in the fair value of hedging instruments net of income<br>taxes	−	−	20	(43)	443
Items that may not be reclassified subsequently to profit or<br>loss:
Revaluation<br>of fixed assets transferred to investment properties	−	−	−	−	−
Actuarial loss from defined benefit<br>plans	−	−	−	−	−
Other comprehensive income for the year from continuing<br>operations	(247)	(18,809)	1,618	3,591	289
Other<br>comprehensive income for the year from discontinued<br>operations	408	31,100	(2,486)	14,379	5,941
Total other comprehensive income for the year	161	12,291	(868)	17,970	6,230
Total comprehensive income for the year	441	33,825	(44,713)	47,489	11,803
Total<br>comprehensive income from continuing operations	106	8,101	(42,136)	(2,571)	(12,963)
Total<br>comprehensive income from discontinued operations	335	25,724	(2,577)	50,060	24,766
Total comprehensive income for the year	441	33,825	(44,713)	47,489	11,803
Profit of the year attributable to:
Equity holders of the<br>parent	56	4,230	(28,848)	6,573	(960)
Non-controlling<br>interest	224	17,304	(14,997)	22,946	6,533
Profit / (Loss) from continuing operations attributable<br>to:
Equity holders of the<br>parent	111	8,420	(26,092)	2,460	(2,603)
Non-controlling<br>interest	216	16,660	(16,049)	11,286	(1,088)
Total comprehensive income attributable to:
Equity holders of the<br>parent	34	2,607	(29,151)	6,217	1,546
Non-controlling<br>interest	407	31,218	(15,562)	41,272	10,257

	Fiscal year ended June 30, 2020 (i)<br>(ii)	Fiscal year ended June 30, 2020	Fiscal year ended June 30, 2019	Fiscal year ended June 30, 2018
Consolidated Statements of Financial Position	in millions of<br><br><br>USD	in millions of ARS<br><br><br>(except per share data)
ASSETS
Non-current assets
Investment<br>properties	3,253	247,786	360,662	391,514
Property, plant and<br>equipment	847	64,545	58,248	56,060
Trading<br>properties	69	5,228	8,456	15,934
Intangible<br>assets	398	30,350	28,009	30,139
Right-of-use<br>assets	310	23,607	−	−
Biological<br>assets	25	1,893	1,943	2,166
Other<br>assets	−	−	34	449
Investments<br>in associates and joint ventures	1,062	80,879	48,305	62,646
Deferred income tax<br>assets	13	998	832	2,810
Income tax and MPIT<br>credits	1	68	292	1,081
Restricted<br>assets	27	2,084	4,894	5,213
Trade and other<br>receivables	386	29,418	23,393	21,852
Investment in financial<br>assets	50	3,784	4,446	4,108
Financial assets held for<br>sale	-	-	6,428	18,643
Derivative financial<br>instruments	2	177	165	71
Total non-current<br>assets	6,443	490,817	546,107	612,686
Current assets
Trading<br>properties	33	2,493	563	7,842
Right-of-use<br>assets	−	−	−	−
Biological<br>assets	49	2,986	4,085	2,185
Inventories	128	9,763	6,893	5,651
Restricted<br>assets	88	6,684	6,741	10,169
Income tax and MPIT<br>credits	4	329	602	957
Groups of assets held for<br>sale	619	47,170	12,378	12,428
Trade and other<br>receivables	618	47,063	41,395	41,200
Investment in financial<br>assets	257	19,585	48,589	61,361
Financial assets held for<br>sale	48	3,636	17,942	10,690
Derivative financial<br>instruments	5	346	174	371
Cash and cash<br>equivalents	1,426	108,652	96,140	92,517
Total current<br>assets	3,256	248,707	235,502	245,371
TOTAL<br>ASSETS	9,708	739,524	781,609	858,057
SHAREHOLDERS’ EQUITY
Share<br>capital	7	499	486	482
Treasury<br>shares	-	3	16	20
Inflation<br>adjustment of share capital and treasury shares	139	10,574	10,574	10,574
Share<br>premium	150	11,403	11,403	11,403
Additional<br>paid-in capital from treasury shares	1	97	98	98
Legal<br>reserve	5	400	400	400
Special<br>reserve	11	828	5,575	5,575
Other<br>reserves	14	1,082	39,214	6,592
Retained<br>earnings	29	2,195	(41,888)	22,166
Equity<br>attributable to equity holders of the parent	356	27,081	25,878	57,310
Non-controlling<br>interest	1,371	104,420	111,058	132,651
TOTAL SHAREHOLDERS’ EQUITY	1,727	131,501	136,936	189,961
LIABILITIES
Non-current liabilities
Borrowings	4,528	344,946	427,836	448,728
Deferred income tax<br>liabilities	699	53,256	61,571	64,553
Trade and other<br>payables	44	3,215	3,046	8,872
Provisions	44	3,328	12,357	8,538
Employee<br>benefits	6	481	203	263
Income<br>tax and minimum presumed income tax liabilities	−	−	−	−
Derivative financial<br>instruments	215	16,357	−	−
Lease<br>liabilities	1	80	1,583	95
Payroll and social security<br>liabilities	3	266	212	182
Total non-current<br>liabilities	5,540	421,929	506,808	531,231
Current liabilities
Trade and other<br>payables	504	38,565	34,772	43,123
Borrowings	1,390	105,921	86,538	76,796
Provisions	35	2,630	2,666	2,536
Group of liabilities held for<br>sale	334	25,459	8,759	7,762
Payroll and social security<br>liabilities	66	5,044	4,093	4,471
Income tax and MPIT<br>liabilities	12	887	752	1,425
Lease<br>liabilities	80	6,095	−	−
Derivative financial<br>instruments	20	1,493	285	752
Total Current<br>liabilities	2,441	186,094	137,865	136,865
TOTAL<br>LIABILITIES	7,981	608,023	644,673	668,096
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES	9,708	739,524	781,609	858,057

	For<br>the fiscal year ended June 30,
	2020 (i)<br>(ii)	2020	2019	2018	2017
Consolidated Statements of Cash Flows	in millions of USD	in millions of ARS (except per share data)
Net cash generated<br>from operating activities	505	38,469	27,502	25,998	25,460
Net cash generated<br>from / (used in) investing activities	570	43,396	11,360	(33,968)	(7,130)
Net cash used in<br>financing<br>activities	(1,026)	(78,184)	(27,705)	(4,316)	6,530
Net increase /<br>(decrease) in cash and cash equivalents	48	3,681	11,157	(12,286)	24,860
Cash and cash<br>equivalents at beginning of the year	1,262	96,140	92,517	78,601	51,855
Cash and cash<br>equivalents at the end of the year	1,426	108,652	96,140	92,517	78,601
	For<br>the fiscal year ended June 30,
---	---	---	---	---
	2020 (i)<br>(ii)	2020	2019	2018
Other Financial Data	in millions of USD	in millions of ARS (except per share data)
Basic net income<br>per share (2)	(0.111)	(8.469)	(58.990)	13.230
Diluted net income<br>per share (3)	(0.108)	(8.218)	(58.990)	12.730
Basic net income<br>per ADS (2)(4)	(1.112)	(84.692)	(589.900)	132.300
Diluted net income<br>per ADS (3)(4)	(1.079)	(82.184)	(589.900)	127.300
Capital<br>stock	7	502	502	502
Number of common<br>shares	501,642,804	501,642,804	501,642,804	501,642,804
Weighted –<br>average number of common shares outstanding	493,808,696	493,808,696	489,067,648	496,687,276
Diluted weighted<br>– average number of common shares (5)	513,044,949	513,044,949	508,783,905	516,403,816
Dividends paid<br>(6)	(18)	(1,355)	(717)	(2,775)
Dividends per<br>share	(0.04)	(2.74)	(1.47)	(5.59)
Dividends per ADS<br>(4)	(0.36)	(27.44)	(14.66)	(55.87)
Depreciation and<br>amortization	28	2,164	1,187	983
Capital<br>expenditure	174	13,220	22,222	24,483
Working<br>Capital	882	62,613	97,637	108,506
Gross margin<br>(7)	0.36	0.36	0.42	0.44
Operating margin<br>(8)	1.03	1.03	(0.71)	0.83
Net margin<br>(9)	0.47	0.47	(1.03)	0.79
Ratio of current<br>assets to current liabilities (10)	1.34	1.34	1.71	1.79
Ratio of<br>shareholders’ equity to total liabilities (11)	0.22	0.22	0.21	0.28
Ratio of non<br>current assets to total assets (12)	0.66	0.66	0.70	0.71
Ratio of<br>“Return on Equity” – ROE (13)	0.16	0.16	(0.27)	N/A.
(i)	Totals<br>may not sum due to rounding.
---	---
(ii)	Solely<br>for the convenience of the reader we have translated peso amounts<br>into U.S. dollars at the seller exchange rate quoted by Banco de la<br>Nación Argentina as of September 30, 2020, which was ARS 76.18<br>per USD 1.00. We make no representation that the peso or U.S.<br>dollar amounts actually represent, could have been or could be<br>converted into U.S. dollars at the rates indicated, at any<br>particular rate or at all. See “Local Exchange Market and<br>Exchange Rates.” Totals may not sum due to<br>rounding.
(1)	Basic<br>net income per share is computed by dividing the net income<br>available to common shareholders for the period by the weighted<br>average common shares outstanding during the period,
(2)	Diluted<br>net income per share is computed by dividing the net income for the<br>period by the weighted average number of common shares assuming the<br>total conversion of outstanding notes and exercise of outstanding<br>options, Due to the loss for the year 2019, there is no diluted<br>effect on this result,
(3)	Determined<br>by multiplying per share amounts by ten (one ADS equals ten common<br>shares),

LOCAL EXCHANGE MARKET AND EXCHANGE RATES

The Argentine government has established a series of exchange control measures that restrict the free disposition of funds and the transfer of funds abroad. These measures significantly curtail access to the foreign exchange market Mercado Único y Libre de Cambios (“MULC”) by both individuals and private sector entities. This makes it necessary, among other things, to obtain prior approval from the Banco Central de la República Argentina (the “Central Bank”) to enter into certain foreign exchange transactions such as payments relating to royalties, services or fees payable to related parties of Argentine companies outside Argentina. For more information about exchange controls see, “Item 10. Additional Information—D. Exchange Controls” in our 2020 Form 20-F.

The following table shows the maximum, minimum, average and closing exchange rates for each applicable period to purchases of U.S. dollars.

	Maximum(1)(2)	Minimum(1)(3)	Average(1)(4)	At<br>closing(1)
Fiscal<br>year ended:
June 30,<br>2018	28.8000	16.7500	19.4388	28.8000
June 30,<br>2019	45.8700	27.1600	37.8373	42.3630
June 30,<br>2020	70.3600	41.5000	59.5343	70.3600
Month<br>ended:
July 31,<br>2020	72.2200	70.4200	71.3795	72.2200
August 31,<br>2020	74.0800	72.4200	73.1980	74.0800
September 30,<br>2020	76.0800	74.1500	75.1036	76.0800
October 30,<br>2020	78.2200	76.1500	77.4843	78.2200
November 30,<br>2020	81.2100	78.5900	79.0814	81.2100
December<br>2020	84.0500	81.3300	82.5383	84.0500
January 2021<br>(through January 4, 2021)	84.6000	84.6000	84.6000	84.6000
---	---	---	---	---

Source: Banco de la Nación Argentina

(1)

Average between the offer exchange rate and the bid exchange rate according to Banco de la Nación Argentina’s foreign currency exchange rate.

(2)

The maximum exchange rate appearing in the table was the highest end-of-month exchange rate in the year or shorter period, as indicated.

(3)

The minimum exchange rate appearing in the table was the lowest end-of-month exchange rate in the year or shorter period, as indicated.

(4)

Average exchange rates at the end of the month.

INFORMATION ON THE COMPANY

History and Development of the Company

General Information

Our legal name is Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, and our commercial name is “Cresud.” We were incorporated and organized on December 31, 1936 under Argentine law as a stock corporation (sociedad anónima) and were registered with the Public Registry of Commerce of the City of Buenos Aires (Inspección General de Justicia), on February 19, 1937 under number 26, on page 2, book 45 of National By-laws Volume. Pursuant to our bylaws, our term of duration expires on July 6, 2082. Our headquarters are located at Moreno 877, 23rd Floor (C1091AAQ), Ciudad Autónoma de Buenos Aires, Argentina. Our telephone is +54 (11) 4814-7800, and our website is www.cresud.com.ar.

All references in this annual report to this or other internet sites are inactive textual references to these URLs, or “uniform resource locators” and are for your information reference only. We assume no responsibility for the information contained on these sites. Our depositary agent for the ADSs in the United States is The Bank of New York Mellon whose address is 240 Greenwich Street, New York, NY 10286, and whose telephone numbers are +1-888-BNY-ADRS (+1-888-269-2377) for U. S. calls and +1-201-680-6825 for calls outside U.S.

History

We were incorporated in 1936 as a subsidiary of Credit Foncier, a Belgian company engaged in the business of providing rural and urban loans in Argentina. We were incorporated to manage real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, our shares were distributed to Credit Foncier’s shareholders and in 1960 were listed on the Buenos Aires Stock Exchange (“BASE”). During the 1960s and 1970s, our business shifted to exclusively agricultural activities.

In 1993 and 1994, Consultores Asset Management acquired, on behalf of certain investors, approximately 22% of our shares on the BASE. In late 1994, an investor group led by Consultores Asset Management (including Dolphin Fund plc.) acquired additional shares increasing their aggregate shareholding to approximately 51.4% of our outstanding shares. In 1997, we increased our capital through a rights offering and global public offering of ADRs representing our common shares and listed such ADRs on the NASDAQ. We started our agricultural activities with seven farmlands and 20,000 hectares under management.

In 2002, we acquired a 19.85% interest in IRSA, a real estate company related to certain shareholders of Cresud, and 2009, we increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s directly principal subsidiary. As of June 30, 2020, we had a 61.95% equity interest in IRSA (without considering treasury shares) and a majority of our directors are also directors of IRSA. IRSA is one of Argentina’s largest real estate companies and is engaged in a range of diversified real estate activities including residential properties, office buildings, shopping malls and luxury hotels, as well as the sales and development residential properties, it has a 29.9% interest in Banco Hipotecario, one of the main financial institutions in the country, and selected investments outside of Argentina. Also, IRSA has international investments, both in the United States in relation to the lease of office buildings (Lipstick Building) and hotels, through “Condor” a hotel REIT in that country, and in Israel, through IDBD and DIC, one of the largest and most diversified investment groups of Israel, which, participates in numerous markets and industry sectors, including real estate, retail, agroindustry, insurance, telecommunications, among others.

In March 2008 we launched and offered to sell up to which 180 million shares. In the local and international markets, which were fully subscribed. In addition, each shareholder received, without additional cost, one warrant for each share subscribed. The proceeds allowed us to expand our international operations to Paraguay and Bolivia.

As of June 30, 2020, we owned, directly and through our subsidiaries, 26 farms, with a total area of 629,794 hectares distributed in Argentina, Brazil, Bolivia and Paraguay. In addition, we have the rights to hold approximately 132,000 hectares of land under concession for a 35-year period that can be extended for another 29 years.

In line with our international expansion strategy, in September of 2005 we participated in the creation of Brasilagro with the purpose of replicating our business model in Brazil. We created BrasilAgro together with our partners, Cape Town Llc, Tarpon Investimentos S.A., Tarpon Agro LLC, Agro Investments S.A. and Agro Managers S.A. On May 2, 2006, BrasilAgro’s shares were listed on the Novo Mercado of the Brazilian Stock Exchange (“BOVESPA”) with the symbol AGRO3 and on November 8, 2012, Brasilagro’s ADRs became listed on the NYSE, under the ticker LND. As of June 30, 2020, we held a 33.55% interest in Brasilagro’s stock capital, which, as of June 30, 2020 has 10 farmland properties and 215,330 hectares under management Brazil and Paraguay. On July 15, 2020, the Company, through its subsidiary Brasilagro, entered into an agreement for the sale of of 1,875 hectares (1,500 are production hectares) of the Jatobá Establishment. For more information see: “Cresud’s Recent Developments - Jatobá sale”

Significant acquisitions, dispositions and development of business

Agricultural Business

Sale of Bananal Farm

BrasilAgro concluded the sale of 2,160 hectares (1,714 useful hectares) of Bananal Farm (Magalhães municipality - BA). The farm was included in the Group of assets held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the purchase agreement were fully met on July 31, 2020 after receipt of BRL 5.5 million (equivalent to ARS 85 million). The face value of the sale is BRL 28 million (equivalent to ARS 396 million), of which the Company has already received BRL 7.5 million (equivalent to ARS 113 million). For this operation, the company will not recognize results since the asset was recorded at its fair value.

Urban properties and investments business

Operations Center Argentina

Sale of floors in the Boston Tower

On July 15, 2020, IRSA CP entered into a preliminary sales agreement (with delivery of possession) with respect to a medium-height floor in the Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 1,063 sq. meters and 5 parking lots located in the building. The price of the transaction was ARS 477.7 million (USD 6.7 million), which has been paid in full.

On August 25, 2020, IRSA CP executed a preliminary sales agreement (with delivery of possession) with respect to 5 floors in the Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 6,235 sq. meters and 25 parking lots located in the building. The price of the transaction was ARS 2,562 million (USD 34.7 million), which has been paid in full.

Bouchard sale

On July 30, 2020, IRSA CP sold the entire “Bouchard 710” building, located in the Plaza Roma district of the City of Buenos Aires. The tower has a gross leasable area of 15,014 sq. meters divided into 12 floors for office use and 116 parking lots. The price of the transaction was approximately ARS 6,300 million (USD 87 million), which has been paid in full.

Lipstick Building, New York, United States

On August 7, 2020, Metropolitan signed an agreement with the owner of the Ground Lease in which it terminated the relationship, leaving the administration of the building. For this reason, Metropolitan stops recognizing the liabilities that it had associated with the ground lease, as well as stops recognizing all the assets and liabilities associated with the building and the administration of the building; and an agreement with the owner of the Ground Lease that states that Metropolitan is completely released liability, except for (i) claims for liabilities prior to June 1, 2020 from people who have performed work or provided services in the Building or to Metropolitan and (ii) claims from people who have had an accident on the property dated after August 7, 2020. This situation had an impact on the consolidated Financial Statements as of June 30, 2020.

Condor Merger Agreement

On July 19, 2019, Condor entered into a merger agreement with Nextponint Hospitality Trust. In accordance with the contractual terms, each Condor common share, with a par value of USD 0.01 per share, was canceled prior to the merger and became the right to receive a cash amount equivalent to USD 11.10 per share. ordinary action. Additionally, in accordance with the terms and conditions of the merger agreement, each Class E convertible share was automatically canceled and became the right to receive a cash amount equivalent to USD 10.00 per share.

The closing of the transaction, scheduled for March 23, 2020, did not occur.

On October 14, 2020, Condor entered into an agreement with Nextponint Hospitality Trust and some of its affiliates (“NHT Parties”) to resolve any and all claims between them related to the aforementioned merger agreement.

Under the agreement with NHT, the Parties will make three payments to Condor in three installments, ending the last payment on December 30, 2020 and for a total of USD 7.0 million.

As of the date of presentation of these financial statements, the Company has 2,245,100 ordinary shares and 325,752 Series E shares.

Operations Center Israel

Loss of control of IDBD

As described in Note 1. to these financial statements, at the end of September 2020, the Group has lost control of IDBD, deconsolidating the related assets and liabilities and reclassifying the operations of this operations center to discontinued operations.

The following table details the net assets disposed:

	09.30.2020
ASSETS	(In<br>million of ARS)
Investment<br>properties	84,251
Property,<br>plant and equipment	34,396
Trading<br>properties	5,512
Intangible<br>assets	26,194
Right-of-use<br>assets	18,530
Investments<br>in associates and joint ventures	34,721
Deferred<br>income tax assets	407
Income<br>tax credit	305
Restricted<br>assets	6,021
Trade<br>and other receivables	50,669
Investments<br>in financial assets	22,680
Derivative<br>financial instruments	264
Inventories	3,377
Group<br>of assets held for sale	39,441
Cash<br>and cash equivalents	104,164
TOTAL ASSETS	430,932
Borrowings	305,434
Lease<br>liabilities	16,984
Deferred<br>income tax liabilities	11,655
Trade<br>and other payables	22,782
	(In million of ARS)
Income<br>tax liabilities	427
Provisions	5,085
Employee<br>benefits	447
Derivative<br>financial instruments	447
Salaries<br>and social security liabilities	3,173
Group<br>of liabilities held for sale	20,646
TOTAL LIABILITIES	387,080
TOTAL NET ASSETS	44,580
Non-controlling<br>interest	(44,810)
Result for loss of control	230
Translation<br>difference reset and other reservations	(2,026)
Total result for loss of control (*)	(1,795)

(*)

Included within discontinued operations.

Recent Developments:

Cresud’s Recent Developments

Sale agreement Brasilagro

On December 23, 2020, Cresud reported that its controlled company Brasilagro has reached an agreement for the sale, subject to certain conditions, of 100% of the shares of its indirectly controlled subsidiaries Agropecuaria Acres del Sud S.A., Ombu Agropecuaria S.A., Yatay Agropecuaria S.A. and Yuchan Agropecuaria S.A., owners of approximately 9,900 agricultural hectares in the corn belt of Bolivia. The transaction would amount to approximately USD 30 million (approx. USD 3,300 / ha).

With this sale, the Company continues to promote its regional expansion and consolidation strategy through BrasilAgro, keeping the ownership of its farmlands in Argentina.

Change of Company’s corporate headquarters

On December 9 2020, Cresud reported that the Company has moved its offices from Moreno 877, 23 Floor, City of Buenos Aires, to Carlos Della Paolera 261, 9 Floor, City of Buenos Aires.

IRSA’s Recent Developments

Sale of Manibil

On December 22, 2020, IRSA reported that it had sold and transferred 217,332,873 ordinary Class B shares, nominative not endorsable, with a nominal value of ARS 1 and entitled to one vote per share owned by IRSA, representing 49% of the stock capital of Manibil S.A., a company dedicated to real estate developments. The price for the sale of the shares amounts to ARS 576,974,387.50. After this transaction, IRSA is no longer a shareholder of Manibil S.A. As a repayment of the sale price of the shares, IRSA received rights to acquire future real estate assets from Manibil.

Change of Company’s corporate headquarters

On December 21 2020, IRSA reported that the Company has moved its offices from Bolívar 108, 1 Floor, City of Buenos Aires, to Carlos Della Paolera 261, 9 Floor, City of Buenos Aires.

Termination of Contract with SP

IRSA reported that on November 25, 2020, they requested the termination of the rating services provided by Standard & Poor’s (“Standard & Poor’s”) to IRSA on a global scale and on a national scale for Argentina, given the repayment and cancellation of all of the Company’s New York-law governed debt securities. The Company had no disagreements with respect to the methodology used by Standard & Poor’s. The rating of the Company’s debt securities on a national scale undertaken by Fix SCR S.A. continues to be in force. Fix SCR S.A. is affiliated with Fitch Ratings.

Change of Company’s corporate headquarters –IRSA CP

On December 9, 2020, IRSA CP reported that the Company has moved its offices from Moreno 877, 22 Floor, City of Buenos Aires, to Carlos Della Paolera 261, 8 Floor, City of Buenos Aires.

Shareholders’ Meeting– IRSA CP

On December 9, 2020, IRSA CP’s informs that the Shareholders’ Meeting has resolved to move its corporate headquarters from Moreno 877 to Carlos Della Paolera 261.

Business Overview

General

We are a leading Latin American agricultural company engaged in the production of basic agricultural commodities with a growing presence in the agricultural sector of Brazil, through our investment in Brasilagro, as well as in other Latin American countries. We are currently involved in several farming activities including grains and sugarcane production and cattle raising. Our business model focuses on the acquisition, development and exploitation of agricultural properties having attractive prospects for agricultural production and/or value appreciation and the selective sale of such properties where appreciation has been realized. In addition, we lease land to third parties and perform agency and agro-industrial services, including a meat packing plant. Our shares are listed on ByMA and the NASDAQ.

We are also directly and indirectly engaged in the real estate business through our subsidiary IRSA and its subsidiaries and joint ventures, one of Argentina’s leading real estate companies. IRSA is engaged in the development, acquisition and operation of shopping malls, premium offices, and luxury hotels in Argentina, and owns selective investments outside Argentina, mainly through IDBD and DIC, two of the largest and most diversified investment groups of Israel. IRSA’s shares are listed on the ByMA and the NYSE. We own 62.35% of the outstanding common shares of IRSA.

During the period ended September 30, 2020 and 2019, we had consolidated revenues of ARS 9,676 million, and ARS 13,082 million, and consolidated gain from operation, before financing and taxation, of ARS 24,403 million and ARS 16,575 million, respectively. During the period ended September 30, 2020 and September 30, 2019, our total consolidated assets decreased 177.09% from ARS 739,525 million to ARS 266,894 million, and our consolidated shareholders’ equity decreased 41.89% from ARS 131,505 million to ARS 92,682 million.

Segment information is analyzed based on products and services: (i) agricultural business and (ii) urban properties and investment business. In addition, within this last segment, operating segments are analyzed by geography: Operations Center Argentina and Operations Center Israel. Within each operations center, the Group considers separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks. Management believes the operating segment clustering in each operations center reflects similar economic characteristics in each region, as well as similar products and services offered, types of clients and regulatory environments.

As from fiscal year 2018 the Chief Operating Decision Maker (“CODM”) reviews the operating income/loss of each operating segment excluding the amounts related to management fees, being such amount reviewed at an aggregate level outside each business. Additionally, the CODM reviews certain corporate expenses associated with each business in an aggregate manner and separately from each of the segments, such expenses have been disclosed in the “Corporate” segment of each operation center.

Agricultural Business

Our Agricultural business is further comprised of four reportable segments:

●

The “Agricultural production” segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; breeding, purchasing and/or fattening of free-range cattle for sale to slaughterhouses and local livestock auction markets; leasing of the Company’s farms to third parties; and planting, harvesting and sale of sugarcane. Our Agricultural production segment had assets of ARS 34,284 million and ARS 34,663 million as of September 30, 2020 and 2019, respectively, representing 87.24% and 88.45% respectively of our agricultural business assets at both dates. Our Agricultural production segment generated income from operations of ARS 164 million and ARS 1,124 million for periods ended September 30, 2020, and 2019, respectively, representing 9.66% and 58.18%, of our consolidated profit from operations, from Agricultural Business for such years, respectively.

The segment “agricultural production” aggregate the crops, cattle, sugarcane and agricultural rental and services activities:

●

Our “Crops” activity consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton, and sunflowers. The Company is focused on the long-term performance of the land and seeks to maximize the use of the land through crop rotation; the use of technology and techniques. In this way, the type and quantity of harvested crops change in each agricultural campaign. Our Crops activity had assets of ARS 15,745 million and ARS 15,052 million as of September 30, 2020 and 2019, respectively, representing 40.06% and 38.41% of our Agricultural Business assets at such dates, respectively. Our Crops activity generated loss from operations of ARS 403 million and profit from operations of ARS 584 million for periods ended September 30, 2020 and 2019, respectively, representing (23.73%) and 30.23%, of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Cattle” activity consists of breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets. Our Cattle activity had assets of ARS 5,334 million and ARS 5,844 million as of September 30, 2020 and 2019, respectively, representing 13.57% and 14.91% of our agricultural business assets at such dates, respectively. Our Cattle activity generated income from operations of ARS 48 for period ended September 30, 2020 and losses from operations ARS 90 million for period ended September 30, 2019, representing 2.83% and (4.66%), of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Sugarcane” activity consists of planting, harvesting and sale of sugarcane. Our Sugarcane activity had assets of ARS 8,032 million and ARS 10,508 million as of September 30, 2020 and 2019, respectively, representing 20.44% and 26.81% of our agricultural business assets at such dates, respectively. Our Sugarcane activity generated profit from operations of ARS 554 million and ARS 622 million for periods ended September 30, 2020, and 2019, representing 32.63% and 32.19%, of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Agricultural rentals and Services” activity consists of agricultural services (for example: irrigation) and leasing of the Company’s farms to third parties. Our Agricultural Rentals and Services activity had assets of ARS 5,173 million and ARS 3,259 million as of September 30, 2020 and 2019, respectively, representing 13.16% and 8.32% of our agricultural business assets at such dates, respectively. Our Agricultural Rentals and Services activity generated loss from operations of ARS 35 million and profit from operations of ARS 8 million for periods ended September 30, 2020, and 2019, respectively, representing (2.06%) and 0.41% of our profit from operations from Agricultural Business for such years.

●

Our “Land transformation and Sales” segment comprises gains from the disposal and development of farmlands activities. Our Land Transformation and Sales segment had assets of ARS 192 million and ARS 185 million as of September 30, 2020 and 2019, respectively, representing 0.49% and 0.47% of our agricultural business assets at such dates, respectively. Our Land Transformation and Sales segment generated profit from operations of ARS 1,438 million and ARS 518 million for periods ended September 30, 2020, and 2019, respectively, representing 84.69% and 26.81% of our profit from operations from Agricultural Business for such years.

●

Our “Other segments” includes, principally, feedlot farming, slaughtering and processing in the meat refrigeration plant; among others. Our Others segment had assets of ARS 4,823 million and ARS 4,340 million as of September 30, 2020 and 2019, respectively, representing 12.27% and 11.07% of our agricultural business assets at such dates, respectively. Our Others activity generated profit from operations of ARS 153 million and ARS 341 million for periods ended September 30, 2020, and 2019, representing 9.01% and 17.65% of our consolidated operating income from Agricultural Business for such years, respectively. The segment “Other segments” aggregate the activities Agro-industrial and Others:

●

Our “Agro-industrial” activity consists of feedlot farming and the slaughtering and processing in the meat refrigerating plant. Feedlot farming is distinctive and requires specific care and diets which differ from those provided to free-range cattle. This activity represents a separate operating activity due to the distinctive characteristics of the cattle feedlot system and the industrialized meat processing in the packing plant. Our Agro-industrial activity had assets of ARS 1,985 million and ARS 1,226 million as of September 30, 2020 and 2019, respectively, representing 5.05% and 3.13% of our agricultural business assets at such dates, respectively. Our Agro-Industrial activity generated loss from operations of ARS 37 for period ended September 30, 2020 and profit from operations of ARS 31 million for period ended September 30, 2019, representing (2.18%) and 1.60% of our consolidated operating income from Agricultural Business for such years, respectively.

●

Our “Others” activity consists of the aggregation of the remaining operating segments, which do not meet the quantitative thresholds for disclosure. This activity includes the brokerage and sale of inputs activities. Our Others activity had assets of ARS 2,838 million and ARS 3,114 million as of September 30, 2020 and 2019, respectively, representing 7.22% and 7.95% of our agricultural business assets at such dates, respectively. Our Others activity generated profit from operations of ARS 190 million and ARS 310 million for periods ended September 30, 2020, and 2019, representing 11.19% and 16.05% of our consolidated operating income from Agricultural Business for such years, respectively.

●

The “Corporate” segment includes, principally, the corporative expenses related to the agricultural business. Our Corporate segment and corporate activity generated operating losses of ARS 57 million and ARS 51 million for periods ended September 30, 2020, and 2019, representing (3.36%) and (2.64%) of our consolidated profit from operations from Agricultural Business for such years, respectively.

Operation Center in Argentina

We operate our business in Argentina through seven reportable segments, namely “Shopping Malls,” “Offices,” “Sales and Developments,” “Hotels,” “International,” “Corporate” and “Others” as further described below:

●

Our “Shopping Malls” segment includes the operating results from our portfolio of shopping malls principally comprised of lease and service revenue from tenants. Our Shopping Malls segment had assets of ARS 54,471 million and ARS 55,344 million as of September 30, 2020 and 2019, respectively, representing 29.40% and 41.72% of our operating assets for the Operations Center in Argentina at such dates, respectively. Our Shopping Malls segment generated operating profit of ARS 986 million and ARS 2,084 million for the periods ended September 30, 2020 and 2019.

●

Our “Offices” segment includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities. Our Offices segment had assets of ARS 72,330 million and ARS 40,569 million as of September 30, 2020 and 2019, respectively, representing and 39.03% and 30.58% of our operating assets for the Operations Center in Argentina at such dates, respectively. Our Offices segment generated an operating income of ARS 13,022 million and ARS 7,163 million for the periods ended September 30, 2020 and 2019, respectively.

●

Our “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included. Our Sales and Developments segment had assets of ARS 45,273 million and ARS 36,373 million as of September 30, 2020 and 2019, respectively, representing 24.43% and 27.42% of our operating assets for the Operations Center in Argentina for both years. Our Sales and Developments segment generated an operating income of ARS 9,661 million and ARS 5,045 million for the financial years ended September 30, 2020 and 2019, respectively.

●

Our “Hotels” segment includes the operating results of our hotels mainly comprised of room, catering and restaurant revenues. Our Hotels segment had assets of ARS 2,096 million and ARS 2,286 million as of September 30, 2020 and 2019, respectively, representing 1.13% and 1.72% of our operating assets for the Operations Center in Argentina, respectively. Our Hotels segment generated an operating loss of ARS 190 million and an operating income of ARS 83 million for the periods ended September 30, 2020 and 2019, respectively,

●

Our “International” segment includes investments that mainly operate in the United States in relation to the lease of office buildings and hotels in that country. We intend to continue evaluating investment opportunities outside Argentina as long as they are attractive investment and development options. Our International segment had net assets of ARS 1,884 million and net liabilities of ARS 9,269 million as of September 30, 2020 and 2019, respectively. Our International segment generated operating income of ARS 11 million and operating losses of ARS 43 million for the periods ended September 30, 2020 and 2019, respectively.

●

“Corporate”. Since fiscal year 2018, we have decided to disclose certain corporate expenses related to the holding structure in a separate “Corporate” segment. This segment generated a loss of ARS 74 million and ARS 88 million for the periods ended September 30, 2020 and 2019, respectively.

●

Our “Others” primarily includes the entertainment activities through La Arena and La Rural S.A., and the financial activities carried out by Banco Hipotecario for both years and Tarshop S.A. (“Tarshop”) just for 2018. Our Others segment had assets of ARS 9,242 million and ARS 7,357 million as of September 30, 2020 and 2019, respectively, representing 4.99% and 5.55% of our operating assets for the Operations Center in Argentina, respectively. Our Others segment generated a profit of ARS 491 million and ARS 257 million for the periods ended September 30, 2020 and 2019.

Operation Center in Israel

We operate our business in Israel through six reportable segments, namely “Real Estate,” “Supermarkets,” “Telecommunications,” “Insurances,” “Corporate” and “Others” as further described below:

●

Our “Real Estate” segment had operating assets of ARS 204,587 million as of September 30, 2019, representing 38% of our net operating assets for the Operations Center in Israel at such year.

●

Our “Supermarkets” segment had operating assets of ARS 34,536 million (corresponds to the value of the associate) as of September 30, 2019, representing 6% of our operating assets for the Operations Center in Israel at such year.

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Our “Telecommunications” segment had operating assets of ARS 159,317 million as of September 30, 2019, representing 29% of our net operating assets for the Operations Center in Israel at such year.

●

Our “Insurance” segment had operating assets of ARS 20,065 million as of September 30, 2019, representing 4% of our operating assets for the Operations Center in Israel at such year.

●

Our “Corporate” segment includes the assets and operating results providing from the activities vinculated with the holding companies of the Operating Center in Israel. Our Corporate segment had operating assets of ARS 1,399 million and ARS 74,195 million as of September 30, 2020 and 2019. Our Corporate segment generated operating loss of ARS 5 million and ARS 28 million for the periods ended September 30, 2020 and 2019, respectively, representing 100% of our consolidated operating income for the Operations Center in Israel for both years.

●

Our “Others” segment had operating assets of ARS 50,003 million as of September 30, 2019, representing 9% of our operating assets for the Operations Center in Israel at such year.

During the fiscal year ended June 30, 2020 and 2019, we had consolidated revenues of ARS 42,653 million, and ARS 40,052 million, and consolidated gain / (loss) from operation, before financing and taxation, of ARS 55,599 million and ARS (37,999) million, respectively. During the fiscal year ended June 30, 2020 and 2019, our total consolidated assets decreased 5.69% from ARS 781,609 million to ARS 739,524 million, and our consolidated shareholders’ equity decreased 4.13% from ARS 136,936 million to ARS 131,501 million.

Agricultural Business

Our Agricultural business is further comprised of four reportable segments:

●

The “Agricultural production” segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; breeding, purchasing and/or fattening of free-range cattle for sale to slaughterhouses and local livestock auction markets; leasing of the Company’s farms to third parties; and planting, harvesting and sale of sugarcane. Our Agricultural production segment had assets of ARS 39,907 million and ARS 37,244 million as of June 30, 2020 and 2019, respectively, representing 88.26% and 91.67% respectively of our agricultural business assets at both dates. Our Agricultural production segment generated income from operations of ARS 3,791 million and ARS 2,282 million for fiscal years ended June 30, 2020, and 2019, respectively, representing 53.08% and 67.49%, of our consolidated profit from operations, from Agricultural Business for such years, respectively.

The segment “agricultural production” aggregate the crops, cattle, sugarcane and agricultural rental and services activities:

●

Our “Crops” activity consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton, and sunflowers. The Company is focused on the long-term performance of the land and seeks to maximize the use of the land through crop rotation, the use of technology and techniques. In this way, the type and quantity of harvested crops change in each agricultural campaign. Our Crops activity had assets of ARS 17,036 million and ARS 15,909 million as of June 30, 2020 and 2019, respectively, representing 42.69% and 42.71% of our Agricultural Business assets at such dates, respectively. Our Crops activity generated profit from operations of ARS 2,054 million and ARS 1,544 million for fiscal years ended June 30, 2020 and 2019, respectively, representing 28.76% and 45.67%, of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Cattle” activity consists of breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets. Our Cattle activity had assets of ARS 5,401 million and ARS 5,750 million as of June 30, 2020 and 2019, respectively, representing 13.53% and 15.44% of our agricultural business assets at such dates, respectively. Our Cattle activity generated income from operations of ARS 251 for fiscal year ended June 30, 2020 and losses from operations ARS 109 million for fiscal year ended June 30, 2019, representing 3.51% and (3.22%), of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Sugarcane” activity consists of planting, harvesting and sale of sugarcane. Our Sugarcane activity had assets of ARS 8,060 million and ARS 9,370 million as of June 30, 2020 and 2019, respectively, representing 20.20% and 25.16% of our agricultural business assets at such dates, respectively. Our Sugarcane activity generated profit from operations of ARS 1,151 million and ARS 559 million for fiscal years ended June 30, 2020, and 2019, representing 16.11% and 16.53%, of our consolidated profit from operations from Agricultural Business for such years, respectively.

●

Our “Agricultural rentals and Services” activity consists of agricultural services (for example: irrigation) and leasing of the Company’s farms to third parties. Our Agricultural Rentals and Services activity had assets of ARS 4,724 million and ARS 3,114 million as of June 30, 2020 and 2019, respectively, representing 11.84% and 8.36% of our agricultural business assets at such dates, respectively. Our Agricultural Rentals and Services activity generated profit from operations of ARS 335 million and ARS 288 million for fiscal years ended June 30, 2020, and 2019, respectively, representing 4.69% and 8.52% of our profit from operations from Agricultural Business for such years.

●

Our “Land transformation and Sales” segment comprises gains from the disposal and development of farmlands activities. Our Land Transformation and Sales segment had assets of ARS 549 million and ARS 160 million as of June 30, 2020 and 2019, respectively, representing 1.38% and 0.43% of our agricultural business assets at such dates, respectively. Our Land Transformation and Sales segment generated profit from operations of ARS 2,746 million and ARS 948 million for fiscal years ended June 30, 2020, and 2019, respectively, representing 38.45% and 28.04% of our profit from operations from Agricultural Business for such years.

●

Our “Other segments” includes, principally, feedlot farming, slaughtering and processing in the meat refrigeration plant, among others. Our Others segment had assets of ARS 4,137 million and ARS 2,941 million as of June 30, 2020 and 2019, respectively, representing 10.37% and 7.90% of our agricultural business assets at such dates, respectively. Our Others activity generated profit from operations of ARS 796 million and ARS 446 million for fiscal years ended June 30, 2020, and 2019, representing 11.15% and 13.19% of our consolidated operating income from Agricultural Business for such years, respectively. The segment “Other segments” aggregate the activities Agro-industrial and Others:

●

Our “Agro-industrial” activity consists of feedlot farming and the slaughtering and processing in the meat refrigerating plant. Feedlot farming is distinctive and requires specific care and diets which differ from those provided to free-range cattle. This activity represents a separate operating activity due to the distinctive characteristics of the cattle feedlot system and the industrialized meat processing in the packing plant. Our Agro-industrial activity had assets of ARS 1,945 million and ARS 1,139 million as of June 30, 2020 and 2019, respectively, representing 4.87% and 3.06% of our agricultural business assets at such dates, respectively. Our Agro-Industrial activity generated losses from operations of ARS 57 million and ARS 208 million for fiscal years ended June 30, 2020 and 2019, representing (0.80%) and (6.15%) of our consolidated operating income from Agricultural Business for such years respectively.

●

Our “Others” activity consists of the aggregation of the remaining operating segments, which do not meet the quantitative thresholds for disclosure. This activity includes the brokerage and sale of inputs activities. Our Others activity had assets of ARS 2,192 million and ARS 1,802 million as of June 30, 2020 and 2019, respectively, representing 5.49% and 4.84% of our agricultural business assets at such dates, respectively. Our Others activity generated profit from operations of ARS 853 million and ARS 654 million for fiscal years ended June 30, 2020, and 2019, representing 11.94% and 19.34% of our consolidated operating income from Agricultural Business for such years, respectively.

●

The “Corporate” segment includes, principally, the corporative expenses related to the agricultural business. Our Corporate segment and corporate activity generated operating losses of ARS 191 million and ARS 295 million for fiscal years ended June 30, 2020, and 2019, representing (2.67%) and (8.73%) of our consolidated profit from operations from Agricultural Business for such years, respectively.

Operation Center in Argentina

●

Our “Shopping Malls” segment includes the operating results from our portfolio of shopping malls principally comprised of lease and service revenue from tenants. Our Shopping Malls segment had assets of ARS 53,229 million and ARS 54,341 million as of June 30, 2020 and 2019, respectively, representing 31.30% and 45.18% of our operating assets for the Operations Center in Argentina at such dates, respectively. Our Shopping Malls segment generated operating profit of ARS 1,817 for the fiscal year ended June 30, 2020 and operating loss of ARS 37,033 for the fiscal year ended June 30, 2019.

●

Our “Offices” segment includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities. Our Offices segment had assets of ARS 67,324 million and ARS 34,116 million as of June 30, 2020 and 2019, respectively, representing 39.58% and 28.37% of our operating assets for the Operations Center in Argentina at such dates, respectively. Our Offices segment generated an operating income of ARS 26,521 million and operating income of ARS 2,673 million for the fiscal year ended June 30, 2020 and 2019, respectively.

●

Our “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included. Our Sales and Developments segment had assets of ARS 36,017 million and ARS 30,579 million as of June 30, 2020 and 2019, respectively, representing 21.18% and 25.43% of our operating assets for the Operations Center in Argentina for both years. Our Sales and Developments segment generated an operating income of ARS 12,673 million and ARS 678 million for the fiscal years ended June 30, 2020 and 2019, respectively.

●

Our “Hotels” segment includes the operating results of our hotels mainly comprised of room, catering and restaurant revenues. Our Hotels segment had assets of ARS 2,120 million and ARS 2,207 million as of June 30, 2020 and 2019, respectively, representing 1.25% and 1.84% of our operating assets for the Operations Center in Argentina, respectively. Our Hotels segment generated an operating income of ARS 174 million and ARS 724 million for the fiscal year ended June 30, 2020 and 2019, respectively,

●

Our “International” segment includes investments that mainly operate in the United States in relation to the lease of office buildings and hotels in that country. We intend to continue evaluating investment opportunities outside Argentina as long as they are attractive investment and development options. Our International segment had assets of ARS 2,488 million and liabilities of ARS 7,484 million as of June 30, 2020 and 2019, respectively. Our International segment generated operating losses of ARS 119 million and operating losses of ARS 129 million for the periods ended June 30, 2020 and 2019, respectively.

●

“Corporate”. Since fiscal year 2018, we have decided to disclose certain corporate expenses related to the holding structure in a separate “Corporate” segment. This segment generated a loss of ARS 304 million and ARS 559 million for the fiscal years ended June 30, 2020 and 2019, respectively.

●

Our “Others” primarily includes the entertainment activities through La Arena and La Rural S.A., and the financial activities carried out by Banco Hipotecario for both years. Our Others segment had assets of ARS 8,903 million and ARS 6,510 million as of June 30, 2020 and 2019, respectively, representing 5.23% and 5.41% of our operating assets for the Operations Center in Argentina, respectively. Our Others segment generated a profit of ARS 596 million for the fiscal year ended June 30, 2020 and an operating loss of ARS 844 million for the fiscal year ended June 30, 2019.

Operation Center in Israel

The operation Center in Israel generated 100% of the discontinued operations due loss of control in September 2020 and reclassification to discontinued operations.

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Our “Real Estate” segment mainly includes assets and operating income derived from business related to the subsidiary PBC. PBC is engaged, independently and through its subsidiaries and associate companies, some of which are public companies, in various areas of the real estate industry in Israel and abroad. The main operating segments of PBC include the revenue-generating properties segment - its core activity - and the residential construction segment. PBC is also engaged in the agriculture segment, through its investment in an associate (Mehadrim). Our Real Estate segment had net operating assets of ARS 164,649 million and ARS 326,652 million as of June 30, 2020 and 2019, representing 33.89% and 56.7% of our net operating assets for the Operations Center in Israel at such years, respectively.

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Our “Supermarkets” segment includes assets and operating income derived from the business related to the former subsidiary (due to the loss of control in June 2018) Shufersal was reclassified to discontinued operations. Shufersal operates both directly and through its investee corporations and owns the largest supermarket chain in Israel in terms of sales volume. Our Supermarkets segment had operating assets of ARS 30,240 million and ARS 24,775 million (corresponds to the value of the associate) as of June 30, 2020 and 2019, representing 6.2% and 4.3% of our operating assets for the Operations Center in Israel at such years, respectively.

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Our “Telecommunications” segment includes assets and operating income derived from the business related to our subsidiary Cellcom. Cellcom is a provider of communication services, which offers to its customers primarily mobile communication services, landline telephone services, international telephone services, internet connectivity services and associated services, and beginning in December 2014, also television over internet services. Our Telecommunications segment had net operating assets of ARS 150,744 million and ARS 117,753 million as of June 30, 2020 and 2019, representing 31% and 20.4% of our net operating assets for the Operations Center in Israel at such years, respectively.

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Our “Insurance” segment includes the investment in Clal. Clal is a holding company which is primarily engaged in the insurance, pension and provident funds segments, and in the holding of assets and real and other related businesses (such as insurance agencies), and which constitutes one of the largest insurance groups in Israel. Our Insurance segment had operating assets of ARS 3,636 million and ARS 24,370 million as of June 30, 2020 and 2019, representing 0.7% and 4.2% of our operating assets for the Operations Center in Israel at such years, respectively.

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Our “Corporate” segment includes the assets and operating results providing from the activities vinculated with the holding companies of the Operating Center in Israel, IDBD and DIC. Our Corporate segment had net operating assets of ARS 19,282 million and ARS 44,716 million as of June 30, 2020 and 2019.

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Our “Others” segment includes the assets and income derived from other diverse business activities, such as technological developments, oil and gas assets, electronics, and others. Our Others segment had net operating assets of ARS 117,261 million and ARS 38,295 million as of June 30, 2020 and 2019.

Agricultural Business

As of September 30, 2020, we owned 26 farms with approximately 629,794 hectares distributed in Argentina, Brazil, Bolivia and Paraguay. During the fiscal year 2020 we used 91,575 hectares of the land we own for crop production, approximately 72,160 hectares are for cattle production, 85,000 hectares are for sheep production and approximately 23,205 hectares are leased to third parties for crop and cattle production. The remaining 359,965 hectares of land reserves are primarily natural woodlands. In addition, we have the rights to hold approximately 132,000 hectares of land under concession for a 35-year period that can be extended for another 29 years. Out of this total, we have assigned 26,409 hectares for crop production and 2,993 hectares for cattle production. Also, during fiscal year 2020 ended on June 30, 2020, we leased 111,086 hectares to third parties for crop production and 12,365 hectares for cattle production.

The following table sets forth, at the dates indicated, the amount of land used for each production activity (including owned and leased land, and land under concession):

	As<br>of September 30,		For<br>the Fiscal Year
	2020(1)	2019(1)	2020(1)	2019(1)	2018(1)<br>(5)
Crops (2)	226,015	225,925	229,070	220,170	194,281
Cattle (3)	80,718	87,689	87,788	95,247	102,113
Milk/Dairy	-	-	-	-	-
Sheep	85,000	85,000	85,000	85,000	85,000
Land Reserves<br>(4)	467,224	441,674	463,372	450,882	461,795
Own farmlands<br>leased to third parties	24,585	15,561	23,655	16,100	9,603
Total	883,542	855,849	888,885	867,399	852,792

(1)

Includes 35.72% of approximately 8,299 hectares owned by Agro-Uranga S.A., an affiliated Argentine company in which we own a non-controlling 35.72% interest.

(2)

Includes wheat, corn, sunflower, soybean, sorghum and others.

(3)

Breeding and fattening.

(4)

We use part of our land reserves to produce charcoal, rods and fence posts.

(5)

Includes farms owned by Brasilagro and Cresud sold in 2014, 2015 and 2018.

Our Principal Business Activities

During the period ended on September 30, 2020, we conducted our operations on 26 owned farms and 89 leased farms.

The following charts show, for the period ended on September 30, 2020, the surface area in operation for each line of business, as well as the hectares held as land reserves:

The following chart illustrates, for the period ended on September 30, 2020, the surface area in operation and the hectares held as land reserves, classified into own, under lease or under concession:

Agricultural Business

Land Transformation and Sales

Land Acquisitions

We seek to increase our lands portfolio, through the acquisition of large areas of land with high potential for appreciation. We also aim to increase the productivity of the land by applying state-of-the-art technology to improve agricultural yields.

Several important intermediaries, with whom we usually work, bring farmlands available for sale to our attention. The decision to acquire farmlands is based on the assessment of a large number of factors. In addition to the land’s location, we normally carry out an analysis of soil and water, including the quality of the soil and its suitability for our intended use (crops, cattle, or milk production), classify the various sectors of the lot and the prior use of the farmland; analyze the improvements in the property, any easements, rights of way or other variables in relation to the property title; examine satellite photographs of the property (useful in the survey of soil drainage characteristics during the different rain cycles) and detailed comparative data regarding neighboring farms (generally covering a 50-km area). Based on the foregoing factors, we assess the farmland in terms of the sales price compared against the production potential of the land and capital appreciation potential. We consider that competition for the acquisition of farmlands is, in general, limited to small farmers for the acquisition of smaller lots, and that there is scarce competition for the acquisition of bigger lots.

During fiscal year 2020, our subsidiary BrasilAgro acquired the Serra Grande field of 4,500 hectares (2,900 hectacres of productive potential) in Piauí, Brazil. The purchase price is BRL 25 million, of which BRL 11 million was paid at closing. The balance of the purchase price will be paid in three equal annual installments

Land Sales

We periodically sell properties that have reached a considerable appraisal to reinvest in new farms with higher appreciation potential. We analyze the possibility of selling based on a number of factors, including the expected future yield of the farmland for continued agricultural and livestock exploitation, the availability of other investment opportunities and cyclical factors that have a bearing on the global values of farmlands.

Our subsidiary BrasilAgro sold 3 fractions of farms during fiscal year 2020 for an aggregate amount of BRL 84.2 million (approximately USD 20 million). In the first quarter it sold a fraction of 1,134 hectares of the “Jatobá” farm located in Jaborandi, State of Bahia, for an amount of BRL 22.7 million (BRL / ha 20,018). The farm was valued at BRL 1.7 million and the internal rate of return in dollars reached 7.0%. In the second quarter of the year, it completed the sale of a fraction of 85 hectares of the “Alto Taquarí” farm located in the state of Mato Grosso for BRL 5.5 million. The farm was valued in the books at BRL 1.2 million and the internal rate of return in dollars reached 13.0%. During the fourth quarter, BrasilAgro made an additional partial sale of 105 hectares of “Alto Taquarí” for the sum of BRL 11.0 million which had a book value of BRL 1.7 million and the internal rate of return in dollars reached 14.4% and another fraction of 1,875 hectarse of “Jatobá” farm was sold for BRL 45 million, which had a book value of BRL 3.5 million and the internal rate of return in dollars reached 5.0%. For more information see “Cresud’s Recent Developments

Jatobá sale”

Land productivity potential

We believe that our agricultural lands have significant productivity potential and, through the implementation of best agricultural practices and application of our accumulated knowledge and experience, we are able to enhance the value of our agricultural lands.

As of September 30, 2020, we owned land reserves in the region extending over more than 358,536 hectares of own farmlands that were purchased at very attractive prices. In addition, we have a concession 117,226 hectares reserved for future development We believe that there are technological tools available to improve productivity in these farms and, therefore, achieve appreciation in the long term. However, current or future environmental regulations could prevent us from fully developing our land reserves by requiring that we maintain part of this land as natural woodlands not to be used for production purposes.

During fiscal year 2020, we developed 12,705 hectares in the region: 5,774 hectares in Argentina; 2,354 hectares in Paraguay and 4,577 hectares in Brasil.

Newly<br>Developed Area	2019/2020	2018/2019
	(hectares)
Argentina	5,774	2,486
Brazil	4,577	6,190
Paraguay	2,354	2,008
Total	12,705(1)	10,684

(1)

9,829 completed and 2,876 pending completion.

Results

The following table shows this segment’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to the preceding fiscal year:

	Sep 30, 2020	Sep 30, 2019	Var%	FY 2020	FY 2019	FY 2018
	(in<br>millions of ARS)
Revenues
Costs	(8)	(7)	14.3	(27)	(26)	(38)
Gross<br>profit	(8)	(7)	14.3	(27)	(26)	(38)
Net<br>result for changes in fair value of investment<br>properties	46	25	84.0	839	-	232
Gain from disposition of<br>farmlands	81	290	(72.1)	902	715	1,783
General<br>and administrative expenses	(1)	(1)	-	(3)	(3)	(2)
Selling<br>expenses	-	-	-	(1)	(2)	-
Other operating results,<br>net	1.320	211	525.6	1,038	263	1,568
Profit from<br>operations	1,438	518	177.61	2,748	947	3,543
Segment<br>profit	1,438	518	177.61	2,748	947	3,543

Agricultural Production

Production

The following table shows, for the fiscal years indicated, our production volumes measured in tons:

Production<br>Volume(1)	Sep<br>2020	Sep<br>2019	FY2020	FY2019	FY2018
Corn	187,328	285,831	433,910	194,352	381,443
Soybean	1,386	1,270	359,055	355,670	225,916
Wheat	72	(164)	43,862	37,378	32,297
Sorghum	-	-	4,371	1,721	4,131
Sunflower	783	3,229	5,895	6,428	6,221
Cotton	-	(1)	2,573	1,586	-
Other	6,723	3,237	3,519	2,103	2,103
Total<br>Crops (tons)	293,600	105,917	857,490	599,238	652,111
Sugarcane<br>(tons)	1,168,915	957,663	2,360,965	1,999,335	924,776
Cattle<br>herd	13,238	9,116	11,783	11,173	10,566
Milking<br>cows	-	-	-	-	185
Cattle<br>(tons)	11,138	10,842	11,783	11,173	10,751
Milk<br>(liters)	-	-	-	-	3,891

(1)

Includes Brasilagro, 50% of CRESCA, Acres del Sud, Ombú, Yatay and Yuchán. Agro-Uranga S.A. is not included.

The segment “agricultural production” aggregate the crops, cattle, dairy, sugarcane and agricultural rental and services activities.

Crops and Sugarcane

Our crop production is mainly based on crops and oilseeds and sugarcane. Our main crops include soybean, wheat, corn, and sunflower. Other crops, such as sorghum and peanut, are sown occasionally and represent only a small percentage of total sown land.

Below is the geographical distribution of our agricultural production for the last four fiscal years and September 30, 2020:

Three<br>month period ended September 30, 2019	Argentina	Brazil	Bolivia	Paraguay	Total
	(in<br>tons)
Corn	124,642	57,431	5,097	158	187,328
Soybean	1,386	-	-	-	1,386
Wheat	72	-	-	-	72
Sorghum	503	-	-	-	503
Sunflower	-	-	-	-	-
Cotton	-	280		-	280
Other	1	448	-	-	449
Total Crops and Other	126,604	64,882	5,097	158	190,018
Sugarcane	-	1,062,692	79,474	-	1,142,166
2020<br>Season	Argentina	Brazil	Bolivia	Paraguay	Total
---	---	---	---	---	---
	(in<br>tons)
Corn	334,821	89,900	4,264	4,925	433,910
Soybean	179,023	157,949	19,608	2,475	359,055
Wheat	43,862	-	-	-	43,862
Sorghum	-	4,371	-	-	4,371
Sunflower	5,895	-	-	-	5,895
Cotton	2,573	-	-	-	2,573
Other	-	3,519	-	-	3,519
Total Crops and Other	570,307	255,911	23,872	7,400	857,490
Sugarcane	-	2,217,714	143,251	-	2,360,965
2019<br>Season	Argentina	Brazil	Bolivia	Paraguay	Total
---	---	---	---	---	---
	(in<br>tons)
Corn	157,079	29,903	6,143	1,227	194,352
Soybean	177,503	138,506	21,174	18,486	355,670
Wheat	37,378	-	-	-	37,378
Sorghum	1,364	-	357	-	1,721
Sunflower	6,428	-	-	-	6,428
Cotton	-	1,586	-	-	1,586
Other	2,103	-	-	-	2,103
Total Crops and Other	381,855	169,995	27,675	19,713	599,238
Sugarcane	-	1,932,235	67,100	-	1,999,335
2018<br>Season	Argentina	Brazil	Bolivia	Paraguay	Total
---	---	---	---	---	---
	(in<br>tons)
Corn	344,713	18,913	6,690	11,127	381,443
Soybean	99,840	94,031	14,953	17,092	225,916
Wheat	32,297	-	-	-	32,297
Sorghum	2,836	-	1,295	-	4,131
Sunflower	6,221	-	-	-	6,221
Other	2,103	-	-	-	2,103
Total Crops and Other	488,010	112,944	22,938	28,219	652,111
Sugarcane	-	901,274	23,502	-	924,776
2017<br>Season	Argentina	Brazil	Bolivia	Paraguay	Total
---	---	---	---	---	---
	(in<br>tons)
Corn	253,164	31,969	9,410	7,970	302,513
Soybean	127,532	53,837	13,178	8,979	203,526
Wheat	29,905	-	-	-	29,905
Sorghum	44	-	4,879	-	4,923
Sunflower	3,853	-	-	-	3,853
Other	3,690	-	-	-	3,690
Total Crops and Other	418,188	85,806	27,467	16,949	548,410
Sugarcane	-	1,015,303	47,557	-	1,062,860

Sales

Below is the total volume sold broken down into geographical areas, measured in tons:

Volume<br>of Sales(3)	30<br>de septiembre 2020			30<br>de septiembre 2019			FY2020			FY2019			FY2018
	M.L.(1)	M.E.(2)	Total	M.L.(1)	M.E.(2)	Total	D.M.(1)	F.M.(2)	Total	D.M.(1)	F.M.(2)	Total	D.M.(1)	F.M.(2)	Total
Corn	152.5	18.1	170.6	65.3	-	65.3	325.4	64.1	389.5	191.4	0.2	191.6	290.7	6.0	296.7
Soybean	67.5	38.4	105.9	14.3	29.2	43.5	308.8	110.2	419.0	166.4	101.9	268.3	172.0	23.4	195.4
Wheat	1.5	-	1.5	4.4	-	4.4	43.8	-	43.8	40.5	-	40.5	44.6	-	44.6
Sorghum	-	-	-	-	-	-	1.4	-	1.4	0.4	-	0.4	1.1	-	1.1
Sunflower	4.3	-	4.3	2.0	-	2.0	0.8	-	0.8	2.4	-	2.4	4.6	-	4.6
Other	0.3	-	0.3	-	-	-	9.3	-	9.3	1.2	-	1.2	1.6	-	1.6
Total<br><br><br>Grains<br>(tons)	226.1	56.5	282.6	86.0	29.2	115.2	696.9	176.4	873.3	402.3	102.1	504.4	514.6	29.4	544.0
Sugarcane<br>(tons)	1,056.6	-	1,056.6	890.9	-	890.9	2,226.2	-	2,226.2	1.965,4	-	1.965,4	1,723.0	-	1,723.0
Cattle<br>herd	4.7	-	4.7	1.7	-	1.7	19.3	-	19.3	9.4	-	9.4	13.3	-	13.3
Milking<br>cows	-	-	-	-	-	-	-	-	-	-	-	-	1.5	-	1.5
Cattle<br>(tons)	4.7	-	4.7	1.7	-	1.7	19.3	-	19.3	9.4	-	9.4	14.8	-	14.8
Milk<br>(in th of liters)	-	-	-	-	-	-	-	-	-	-	-	-	3.9	-	3.9

(1)

Domestic Market.

(2)

Foreign Market.

(3)

Includes Brasilagro, 50% of CRESCA, Acres del Sud, Ombú, Yatay and Yuchán. Excludes Agro-Uranga.

The following table shows the sown surface area assigned to crop production, classified into own, under lease, under concession and leased to third parties for the fiscal years indicated below, measured in hectares:

	As of September 30,
	2020	2019	FY 2020(1)	FY<br>2019(1)	FY<br>2018(1)
Own	113,091	103,580	105,799	94,062	102,448
Under<br>lease	132,898	138,969	138,867	135,955	72,688
Under<br>concession	22,346	25,609	26,409	18,638	24,244
Leased to third<br>parties	22,810	13,786	13,837	14,325	9,533
Total	291,145	281,945	284,912	262,980	208,913

(1) Includes double crops, all farms in Argentina, Bolivia, Paraguay and Brazil, and Agro-Uranga (Associated – 35.72%).

	As<br>of September 30,		Season
Stock	2020	2019	2020	2019	Variation
	(in<br>tons)				%
Corn	161,599	111,500	60,294	77,216	(21.9)
Soybean	73,003	62,728	108,171	174,575	(38.0)
Sunflower	1,843	167	87	6,187	(98.6)
Sorghum	308	236	527	443	19.0
Bean	-	-	2,535	-	-
Wheat	387	1,363	1,076	2,516	(57.2)
Sugarcane	10,038	-	5,865	485	1.109.3
Cotton	2,138	-	1,130	1,586	(28.8)
Other	3,366	4,073	1,230	3,704	(66.8)
Total	252,682	180,068	180,915	266,712	(32.2)

We seek to diversify our mix of products and the geographic location of our farmlands to achieve an adequate balance between the two principal risks associated with our activities: weather conditions and the fluctuations in the prices of commodities. In order to reduce such risks, we own and lease land in several areas of Argentina with different climate conditions that allow us to sow a diversified range of products. Our leased land for crops is mostly located in the Pampas region, a favorable area for crop production. The leased farms are previously studied by technicians who analyze future production expectations based on the historic use of the land. The initial duration of lease agreements is typically one or three seasons. Leases of farms for production of crops generally consist of lease agreements with payments based on a fixed amount of Pesos per hectare or sharecropping agreements with payments in kind based on a percentage of the crops obtained or a fixed amount of tons of crops obtained or their equivalent value in Pesos. The principal advantage of leasing farms is that leases do not require us to commit large amounts of capital to the acquisition of lands but allow us to increase our scale in the short term and reduce the risk of inclement weather. The disadvantage of this strategy is that the cost of leasing can increase over time, in part, because increased demand for leased land increases the price of leased land.

In order to increase our production yields, we use, besides state-of-the-art technology, labor control methods which imply the supervision of the seeding’s quality (density, fertilization, distribution, and depth), crop monitoring (determination of natural losses and losses caused by harvester) and verification of bagged crop quality. In this way, we work jointly with our suppliers to achieve the best management of inputs, water and soil.

Wheat seeding takes place from June to August, and harvesting takes place from December to January. Corn, soybean and sunflower are sown from September to December and are harvested from February to August. Crops are available to be sold as commodities after the harvest from December to June and we usually store part of our production until prices recover after the drop that normally takes place during the harvesting season. A major part of production, especially soybean, wheat, corn and sorghum, is sold and delivered to buyers pursuant to agreements in which price conditions are fixed by reference to the market price at a specific time in the future that we determine. The rest of the production is either sold at current market prices or delivered to cover any futures contract that we may have entered into.

Agro-Uranga S.A.

We have a 35.72% interest in AgroUranga S.A.. This company optimizes production processes with special emphasis in soil conservation, the application of rational techniques and care of the environment.

At present, with the assistance of its foreign trade team it is seeking to develop new products so as to significantly increase export volumes, encouraged by the world’s growing demand.

Lease of Farmlands

We conduct our business on owned and leased land. Rental payments increase our production costs, as the amounts paid as rent are accounted for as operating expenses. As a result, production costs per hectare of leased land are higher than for the land owned by us.

Our land leasing policy is designed to supplement our expansion strategy, using our liquidity to make production investments in our principal agricultural activities. On the other hand, our leasing strategy provides us with an added level of flexibility in the share of each of our products in total production, providing for greater diversification.

The initial duration of lease agreements is typically one crop season and sugarcane. Leases of farms for production of crops consist in lease agreements with payments based on a fixed amount of Pesos per hectare or sharecropping agreements with payments in kind based on a percentage of the crops obtained or a fixed amount of tons of crops obtained or their equivalent value in Pesos. Leases of farmlands for cattle breeding consist in lease agreements with fixed payments based on a fixed amount of Pesos per hectare or steer kilograms or capitalization agreements with payments in kind or in cash based on the weight gain in kilograms. Leases of farms for production of sugarcane consist in a percentage lease agreements and have a term of 15 years.

As of September 30 2020, we leased to third parties a total of 89 farmlands, covering 121,748 hectares, including 50,747 hectares in Brazil. Out of the total leased area 106,533 hectares were assigned to agricultural production including double crops, and 12,635 hectares to cattle raising. The properties for agricultural production were leased, primarily, for a fixed price prior to harvest and only a small percentage consisted of sharecropping agreements.

The following table shows a breakdown of the number of hectares of leased land used for each of our principal production activities:

	As<br>of September 30, 2020	2020	2019	2018	2017
Crops (1)	106,533	111,001	117,397	66,333	71,481
Cattle	12,635	12,635	14,135	12,635	12,635

(1) Includes BrasilAgro.

Due to the rise in the price of land, we adopted a policy of not validating excessive prices and applying strict criteria upon adopting the decision to lease, selecting those lands with values that would ensure appropriate margins.

Results

The following table shows the Company’s results for fiscal year 2020 and three month period ended September 30, 2020 for Crops and Sugarcane activities, compared to the preceding fiscal year:

Crops

	Sep 30, 2020	Sep 30, 2019	YoY var2020 vs. 2019%	FY 2020	FY 2019	FY 2018
	(in<br>millions of ARS)
Revenues	3,624	3,955	(8.4)	12,341	7,513	5,965
Costs	(3,055)	(3,294)	(7.3)	(10,535)	(6,634)	(4,746)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce	148	(139)	-	1,265	1,616	1,354
Changes<br>in the net realizable value of agricultural produce	528	531	(0.6)	707	(46)	572
Gross<br>profit	1,245	1,053	18.2	3,778	2,449	3,145
General<br>and administrative expenses	(127	(122)	4.1	(588)	(511)	(490)
Selling<br>expenses	(435)	(528)	(17.6)	(1,671)	(924)	(1,168)
Other operating results,<br>net	(1,078)	165	-	479	471	-
Profit (loss) from<br>operations	(395)	568	-	1,998	1,485	1,487
Share<br>of profit of associates and joint ventures	(7)	17	-	59	61	42
Activity profit /<br>(loss)	(402)	585	64	2,057	1,546	1,529

Sugarcane

	Sep 30, 2020	Sep 30, 2019	YoY var<br><br><br><br><br><br>2020 vs. 2019%	FY 2020	FY 2019	FY 2018
	(in<br>millions of ARS)
Revenues	1,454	1,742	(16.5)	3,420	2,854	2,205
Costs	(1,306)	(1,715)	(23.8)	(3,222)	(2,488)	(2,097)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce	519	684	(24.1)	1,338	594	673
Gross<br>profit	667	711	6.2	1,536	960	781
General and administrative<br>expenses	(43)	(78)	(44.9)	(270)	(318)	(278)
Selling<br>expenses	(56)	(15)	273.3	(122)	(77)	(98)
Other operating results,<br>net	(14)	4	-	6	(6)	-
Profit (loss) from<br>operations	554	622	(10.9)	1,150	559	405
Activity profit /<br>(loss)	554	622	(10.9)	1,150	559	405

Cattle

Our cattle production involves the breeding and fattening of our own animals. In some cases, if market conditions are favorable, we also purchase and fatten cattle which we sell to slaughterhouses and supermarkets. As of September 2020, our cattle aggregated 90,539 heads, and we had a total surface area of 80,718 hectares of own and leased lands devoted to this business activity. In addition, we have leased to third parties 1,775 hectares assigned to these activities.

As of September 30, 2020, our production was 2,211 tons, a 5.4% year-on-year decrease. The following table sets forth, for the fiscal years indicated below, the cattle production volumes measured in tons:

	Sep<br>30, 2020	Sep<br>30, 2019	2020	2019	2018
Cattle<br>production(1)	2,211	2,338	11,783	11,173	10,751

(1) Production measured in tons of live weight. Production is the sum of the net increases (or decreases) during a given period in live weight of each head of cattle owned by us.

Our cattle breeding activities are carried out with breeding cows and bulls and our fattening activities apply to steer, heifers and calves. Breeding cows calve approximately once a year and their productive lifespan is from six to seven years. Six months after birth, calves are weaned and transferred to fattening pastures. Acquired cattle are directly submitted to the fattening process. Upon starting this process, cattle have been grazing for approximately one year to one and a half year in order to be fattened for sale. Steer and heifers are sold when they have achieved a weight of 380–430 kg and 280–295 kg, respectively, depending on the breed.

Pregnancy levels, which have been improving over the years, showed satisfactory levels of efficiency notwithstanding the adverse weather conditions. Genetics and herd management are expected to further improve pregnancy levels in the coming years. Reproductive indicators improved thanks to the implementation of technologies, which have included handling techniques and females’ artificial insemination with cattle genetics especially selected for the stock which is purchased from specialized companies in quality semen elaboration for meat production. We use veterinarian products manufactured by leading national and international laboratories. It is important to emphasize the work of a veterinarian advising committee, who is external to us and visits each establishment monthly to control and agree tasks.

Currently, the cattle raising farms are officially registered as export farmlands pursuant to the identification and traceability rules in force in Argentina. Animals are individually identified, thus allowing for the development of special businesses in this area.

Our cattle stock is organized into breeding and fattening activities. The following table shows, for the fiscal years indicated, the number of heads of cattle for each activity:

	Sep<br>30, 2020	Sep<br>30, 2019	2020	2019	2018
Breeding<br>stock	77,301	84,183	63,073	85,118	83,151
Winter grazing<br>stock	13,238	9,116	10,539	13,993	10,440
Total Stock<br>(heads)	90,539	93,299	73,612	99,111	93,591

We seek to improve cattle production and quality in order to obtain a higher price through advanced breeding techniques. We cross breed our stock of Indicus, British (Angus and Hereford) and Continental breeds to obtain herds with characteristics better suited to the pastures in which they graze. To enhance the quality of our herds even further, we plan to continue improving our pastures through permanent investment in seeds and fertilizers, an increase in the watering troughs available in pastures, and the acquisition of round bailers to cut and roll grass for storage purposes.

Our emphasis on improving the quality of our herd also includes the use of animal health-related technologies. We comply with national animal health standards that include laboratory analyses and vaccination aimed at controlling and preventing disease in our herd, particularly FMD.

Direct costs of beef production consist primarily of crops for feeding and dietary supplementation purposes, animal health and payroll costs, among others.

Results

The following table shows this activity’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to the preceding fiscal years:

	Sep 30,2020	Sep 30,2019	YoY var2020 vs.2019%	FY2020	FY2019	FY2018
	(in<br>millions of ARS)
Revenues	611	451	35.5	2,009	882	924
Costs	(499)	(390)	(94.6)	(1,746)	(780)	(807)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce	(5)	(292)	-	209	(25)	(309)
Gross profit<br>(loss)	107	(31)	-	472	77	(192)
General and administrative<br>expenses	(24)	(27)	(11.1)	(99)	(112)	(132)
Selling<br>expenses	(33)	(35)	(5.7)	(124)	(72)	(103)
Other operating results,<br>net	(2)	3	-	2	(2)	(22)
Profit (loss) from<br>operations	48	(90)	-	251	(109)	(449)
Activity profit /<br>(loss)	48	(90)	-	251	(109)	(449)

Leases and Agricultural Services

We lease own farms to third parties for agriculture, cattle breeding and seed production, mainly in two types of farms. On the one hand, we lease our farms under irrigation in the Province of San Luis (Santa Bárbara and La Gramilla) to seed producers or enter into production agreements whereby we render production services to seed companies. These farms are ideal for obtaining steady production levels, given the quality of their soil and the weather conditions of the area, along with the even humidity provided by irrigation.

On the other hand, when market conditions are favorable, we lease farms recently put into production after agricultural development. In this way, we manage to reduce our production risk, ensuring fixed rental income until the new farms reach stable productivity levels.

In addition, in this segment we include the irrigation service we provide to our own farms leased to third parties.

Results

The following table shows this activity’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to the preceding fiscal years:

	Sep 30,2020	Sep 30,2019	YoY var2020 vs.2019%	FY2020	FY2019	FY2018
	(in<br>millions of ARS)
Revenues	52	74	(29.7)	733	703	443
Costs	(63)	(32)	96.9	(295)	(289)	(120)
Gross profit<br>(loss)	(11)	42	-	438	414	323
General and administrative<br>expenses	(12)	(32)	45.5	(68)	(91)	(41)
Selling<br>expenses	(10)	(15)	23.1	(37)	(31)	(31)
Other operating results,<br>net	(3)	(2)	-	1	(3)	-
Profit (loss) from<br>operations	(36)	7	-	334	289	251
Activity profit /<br>(loss)	(36)	7	-	334	289	251

Other segments

This segment includes, principally, feedlot farming, slaughtering and processing in the meat refrigeration plant; among others. The segment “Other segments” aggregate the activities Agro-industrial and Others:

Agro-industrial Activities

This activity consists in the slaughtering and processing of beef in meat packing plants.

Through our subsidiary Sociedad Anónima Carnes Pampeanas S.A. (“Carnes Pampeanas”) we own a meat packing plant in Santa Rosa, Province of La Pampa, with capacity to slaughter and process approximately 12,500 cattle heads per month.

During the last years, the smaller supply of cattle has adversely affected the value chain by reducing cold-storage plant utilization. This has left several plants struggling to remain operational in view of the poor returns and shortage of raw materials. Our investment in Carnes Pampeanas has not escaped unscathed of this situation.

Results

The following table shows this activity’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to preceding fiscal year:

	Sep 30,2020	Sep 30,2019	YoY var2020 vs.2019%	FY2020	FY2019	FY2018
	(in<br>millions of ARS)
Revenues	1,722	1,812	(2.2)	6,705	6,205	5,190
Costs	(1,596)	(1,611)	(0.9)	(6,058)	(5,764)	(5,041)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural produce	-	13	(100.0)	11	6	(10)
Gross profit<br>(loss)	176	214	(17.8)	658	447	139
General and administrative<br>expenses	(42)	(52)	(19.2)	(181)	(188)	(160)
Selling<br>expenses	(181)	(141)	27.5	(619)	(502)	(304)
Other operating results,<br>net	10	11	(9.1)	85	34	65
Profit (loss) from<br>operations	(37)	31	(219.4)	(57)	(209)	(260)
Activity profit /<br>(loss)	(37)	31	(219.4)	(57)	(209)	(260)

Others

This activity includes part of our investment in Futuros y Opciones (FyO), as crop trading is reflected in the Crops activity.

Results

The following table shows this activity’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to preceding fiscal year:

	Sep 30,2020	Sep 30,2019	YoY var2020 vs.2019%	FY2020	FY2019	FY2018
	(in<br>millions of ARS)
Revenues	842	743	13.3	3.063	2,365	1,587
Costs	(614)	(471)	30.4	(2.104)	(1,421)	(1,065)
Gross<br>profit	228	272	16.2	959	944	522
General and administrative<br>expenses	(30)	(23)	30.4	(127)	(123)	(137)
Selling<br>expenses	(58)	(72)	(19.4)	(236)	(241)	(160)
Other operating results,<br>net	55	42	31.0	180	124	47
Profit (loss) from<br>operations	195	219	(11.0)	776	704	272
Share<br>of profit of associates and joint ventures	(5)	91	(105.5)	78	(49)	(2)
Activity profit /<br>(loss)	190	310	(38.7)	854	655	270

Corporate

This segment includes, principally, the corporative expenses related to the agricultural business.

Results

The following table shows the “Corporate” segment’s results for fiscal year 2020 and three month period ended September 30, 2020, compared to preceding fiscal years:

	Sep 30,2020	Sep 30,2019	YoY var2020 vs.2019%	FY2020	FY2019	FY2018
	(in<br>millions of ARS)
Revenues	-	-	-	-	-	-
Costs	-	-	-	-	-	-
Gross<br>profit	-	-	-	-	-	-
General and administrative<br>expenses	(57)	(51)	11.8	(191)	(295)	(242)
Selling<br>expenses	-	-	-	-	-	-
Other operating results,<br>net	-	-	-	-	-	-
Profit (loss) from<br>operations	(57)	(51)	11.8	(191)	(295)	(242)
Activity profit /<br>(loss)	(57)	(51)	11.8	(191)	(295)	(242)

Futuros y Opciones.Com S.A. (FyO)

Futuros y Opciones.com’s main business is crop trading (crop brokerage, futures and options, consulting and logistic and financial services) and sale and distribution of own inputs and third-party products.

As concerns the Crops business, revenues grew thanks to the increase in invoiced volumes and prices compared to the previous fiscal year. As well as the inputs business grew by 50% compared to the previous year, due to the consolidation of the nutritional specialties business.

During fiscal year 2020, increased efforts were made in the company’s cash flow analysis, generating financial income from the investments made. The financial services provided to our clients were also increased, allowing them access to capital market tools. Net financial income also increased favorably compared to the previous year due to the effect of the devaluation.

Concerning the goals for next year, the Crops business is expected to keep growing at the same pace as in the past years, aspiring to lead the crop trading business and differentiating ourselves in the services offered to clients. As concerns inputs, FyO’s goals include consolidating its suite of products, increasing sales, improving margins and focusing business on the sale of nutritional specialties for the soil. Other objectives include becoming a leading company in the knowledge of the crop’s markets, being digital innovators and expanding the company’s reach into the region.

AGROFY S.A.U.

Agrofy S.A.U. continued to position itself in 2020 as the leading online platform for agriculture in Argentina, Brazil, and Uruguay, doubling the flow of annual visits and contacts per month when compared to the previous year. During this fiscal year, Agrofy raised USD 23 million of new equity capital, incorporating two new strategic investors while Cresud reduced its shareholding to 22.2% and BrasilAgro was incorporated as a shareholder with 1.9% of the capital stock. During the next fiscal year we will seek to continue and consolidate Agrody’s regional expansion strategy.

Farmland Portfolio

As of September 30, 2020, we owned, together with our subsidiaries, 26 farms, with a total surface area of 629,794 hectares.

The following table sets forth our farm portfolio as of September 30, 2020:

	Use of farms owned and under concession as of June 30,<br>2020
	Locality	Province	Date of Acquisition	Surface Area (has)	Main Business	Cattle (has)	Sheep (has)	Agriculture (has)	Cattle(2)<br>(Head)
El<br>Recreo	Recreo	Catamarca	May<br>‘95	12,395	Natural<br>woodlands
Los<br>Pozos	JV<br>González	Salta	May<br>‘95	239,639	Cattle/<br>Agriculture/ Natural woodlands	37,491		18,151	32,509
San Nicolás (1)	Rosario	Santa<br>Fe	May<br>‘97	1,431	Agriculture	100		957
Las Playas (1)	Idiazabal	Cordoba	May<br>‘97	1,534	Agriculture			1,056
La<br>Gramilla/ Santa Bárbara	Merlo	San<br>Luis	Nov<br>‘97	7,072	Agriculture<br>Under irrigation			4,985
La<br>Suiza	Villa<br>Angela	Chaco	Jun<br>‘98	26,371	Agriculture/<br>Cattle	17,419		2,432	13,903
El<br>Tigre	Trenel	La<br>Pampa	Apr<br>‘03	8,360	Agriculture	240		6,552	3,189
San<br>Pedro	Concepción<br>de Uruguay	Entre<br>Rios	Sep<br>‘05	6,022	Agriculture			3,906
8<br>De Julio/ Estancia Carmen	Puerto<br>Deseado	Santa<br>Cruz	May<br>‘07/ Sep ‘08	100,911	Sheep		85,000
Cactus<br>Argentina	Villa<br>Mercedes	San<br>Luis	Dec<br>‘97	171	Natural<br>woodlands	101
Las<br>Londras	Santa<br>Cruz	Bolivia	Nov<br>‘08	4,566	Agriculture			4,367
San<br>Rafael	Santa<br>Cruz	Bolivia	Nov<br>‘08	2,969	Agriculture			2,824
La<br>Primavera	Santa<br>Cruz	Bolivia	Jun<br>‘11	2,340	Agriculture			1,666
Marangatu/Udra	Mariscal<br>Estigarribia	Paraguay	Feb<br>‘09	59,585	Agriculture/<br>Natural woodlands	2,488		10,912	2,676
Finca<br>Mendoza	Lujan<br>de Cuyo	Mendoza	Mar<br>‘11	674	Natural<br>woodlands
Establecimiento<br>Mendoza	Finca<br>Lavalle	Mendoza	Nov’03	9	Natural<br>woodlands
Jatoba	Jaborandi/BA	Brazil		14,930	Agriculture	2,813		0	73
Alto<br>Taquari	Alto<br>Taquari/MT	Brazil		5,103	Agriculture			3,206
Araucaria	Mineiros/GO	Brazil		5,534	Agriculture			3,912
Chaparral	Correntina/BA	Brazil		37,182	Agriculture	0		16,461
Nova<br>Buriti	Januária/MG	Brazil		24,212	Forestry
Preferência	Barreiras/BA	Brazil		17,799	Agriculture<br>/ Natural woodlands	7,148		0	7,497
São<br>José	São<br>Raimundo das Mangabeiras/MA	Brazil		17,566	Agriculture			9,506
Arrojadinho	Jaborandi/BA	Brazil		16,642	Agriculture			3,996
Rio<br>do Meio	Correntina/BA	Brazil		12,288	Agriculture
Serra<br>Grande	Baixa<br>Grande do Ribeiro/PI	Brazil		4,489	Agriculture
Subtotal Owned				629,794		67,799	85,000	94,890	59,847
Agropecuaria<br>Anta SA	Las<br>Lajitas	Salta		132,000		3,097		22,346	2,054-
Subtotal Under Concession				132,000		3,097		22,346	2,054
Total				761,794		70,896	85,000	117,236	61,901

(1)

Hectares in proportion to our 35.72% interest in Agro-Uranga S.A.

(2)

Does not include sheep or cattle in sold or rented fields.

Additional information about our Farmlands

Argentina

El Recreo

“El Recreo” farm, located 970 kilometers northwest of Buenos Aires, in the Province of Catamarca, was acquired in May 1995. It has semi-arid climate and annual rainfall not in excess of 400 mm. This farm is maintained as a productive reserve.

Los Pozos

“Los Pozos” farm located 1,600 kilometers northwest of Buenos Aires, in the Province of Salta, was acquired in May 1995. This property is located in a semi-arid area with average annual rainfall of 500 mm. The area is naturally suited to cattle raising and forestry activities (poles and fence posts), and it has agricultural potential for summer crops such as soybean, sorghum and corn, among others. As of September 30, 2020, we used 18,151 hectares in agricultural production. As of September 30, 2020, there were 32,509 heads of cattle in this farm.

San Nicolás

“San Nicolás” is a 4,005 hectares farm owned by Agro-Uranga S.A., and is located in the Province of Santa Fe, approximately 45 kilometers from the Port of Rosario. As of September 30, 2020, 5,313 hectares were planted for agricultural production, including double crops. The farm has two plants of silos with a storage capacity of 14,950 tons.

Las Playas

“Las Playas” farm has a surface area of 4,294 hectares and is owned by Agro-Uranga S.A. It is located in the Province of Córdoba, and it is used for agricultural purposes. As of September 30, 2020, the farm had a sown surface area, including double crops, of 6,507 hectares for crop production.

La Gramilla and Santa Bárbara

These farms have a surface area of 7,072 hectares in Valle de Conlara, in the Province of San Luis. Unlike other areas in the Province of San Luis, this valley has a high-quality underground aquifer which makes these farms well suited for agricultural production after investments were made in the development of lands, wells and irrigation equipment. In the course of the 2019/2020 crop season, a total of 5,983 hectares were sown. We leased, in turn, 8 hectares to third parties. The remaining hectares are kept as land reserves.

La Suiza

“La Suiza” farm has, at the end of the fiscal year, a surface area of 26,380 hectares and is located in Villa Ángela in the Province of Chaco. It is used for raising cattle. As of September 30, 2020, “La Suiza” had a stock of approximately 13,903 heads of cattle. During the 2020/21 season, we used 2,432 hectares for agricultural production.

El Tigre

“El Tigre” farm was acquired on April 30, 2003 and has a surface area of 8,360 hectares. It is located in Trenel in the Province of La Pampa. As of September 30, 2020, 8,407 hectares were assigned to crop production, including double crops.

San Pedro

“San Pedro” farm was purchased on September 1, 2005. It has a surface area of 6,022 hectares and is located in Concepción del Uruguay, Province of Entre Ríos, which is 305 kilometers north of Buenos Aires. In the course of the 2020/2021 crop season, 4,718 hectares were used for agricultural production, including double crops.

8 de Julio and Estancia Carmen

“8 de Julio” farm was acquired on May 15, 2007 and has a surface area of 90,000 hectares. It is in the Department of Deseado in the Province of Santa Cruz. Due to its large surface area, this farm offers excellent potential for sheep production. In addition, we believe the land has potential for future tourism and recreational activities, as the southeast border of the farm stretches over 20 kilometers of coast. “Estancia Carmen” was acquired on September 5, 2008 and has a surface area of 10,911 hectares. It is in the Province of Santa Cruz, next to our “8 de Julio” farm.

Cactus

The feedlot has a surface area of 171 hectares. It is located in Villa Mercedes, Province of San Luis. Given its degree of urban development and closeness to the city, we decided to discontinue fattening activities in this facility.

Finca Mendoza

On March 2, 2011, the Company purchased, jointly with Zander Express S.A., a rural property composed of thirteen plots of land located in the District of Perdriel, Luján de Cuyo Department, in the Province of Mendoza. As a result of this acquisition, Cresud has become owner of a 40% undivided estate in all and each of the properties, while Zander Express S.A. holds the remaining 60%. The total agreed price for this transaction was USD 4.0 million; therefore, the amount of USD 1.6 million was payable by Cresud.

On June 8, 2017, a title deed for the sale of 262 ha was signed. The total price was USD 2.2 million. The Company has recognized a gain of ARS 11.8 million as a result of this transaction.

On April 17, 2019, we have purchased to Zander Express S.A. the 60% of the property, and the total price was USD 1.25 million. As a result of this acquisition, we have become owner of a 100% of the property.

Establecimiento Mendoza

The establishment is located north of the city of Mendoza, in the department of Lavalle. It is composed of 9 Ha, which are currently not in use and are considered land reserves.

Bolivia

Las Londras

On January 22, 2009, the bill of purchase for “Las Londras” farm was cast into public deed; it has a surface area of 4,566 hectares, and is located in the Province of Guarayos, Republic of Bolivia. During the 2020/2021 crop season, it was used for crop production and sugarcane.

San Rafael

On November 19, 2008, the bill of purchase for “San Rafael” farm was cast into public deed. This farm is located in the Province of Guarayos, Republic of Bolivia, and has a surface area of 2,969 hectares, which were used for crop production during the 2020/2021 crop season.

La Primavera

On June 7, 2011, we acquired “La Primavera” farm, with a surface area of approximately 2,340 hectares. During the 2020/2021 season, this farm was used for crop production and sugarcane.

Brazil (through our subsidiary Brasilagro)

Jatobá

Jatobá is a farm in the northeastern region of Brazil, with a total surface area of 14,930 hectares. Jatobá was acquired in March 2007 for BRL 33 million. We consider that this farm is in a very advantageous location for the movement of crops, as it is close to the Candeias Port, in the State of Bahia. During the 2019/2020 season, 2,813 hectares were used for cattle production.

On June 13, 2018, the Company, through its subsidiary Brasilagro, signed a purchase contract for a total area of 9,784 hectares (7,485 are agricultural hectares) of the Establishment.

On July 31, 2018, the buyer made the payment of the first installment for BRL 225 million in accordance with the conditions set forth in the contract, obtaining the transfer of possession and enabling the recognition of the income by the Company. The remaining balance will be paid in six annual installments.

In June 2019, the Company entered into a commitment to sell 3,124 hectares of the Jatobá field. The sale price is BRL 543 million. The buyer made an initial payment of BRL 58 million and made on July 31, 2019 the cancellation of the first installment equivalent to BRL 58 million; and the balance equivalent to 563,844 soybeans bags, will be paid in six annual installments. The delivery of the possession and the result of the operation will be recognized on June 30, 2019, which represents a gain of BRL 422 million.

On July 15, 2020 BrasilAgro entered into an agreement fore the sale of 1,875 hectacres (1,500 are production acres) of the Jatobá Establishment, a rural property located in the Municipality of Jaborandi, for a purchase price of 300 bags of soybeans, equivalent to BRL 45 million. At the time of slae, the buyer made an initial payment, equivalent to BRL 5 million. In August 2020, the buyer made a second payment, equivalent to an additional BRL 3.5 million. The remaining balance of the purchase price will be paid by the purchaser in six annual installments. The book value of the Jatobá field parcel that was sold is BRL 3.7 million (acquisition cost plus investments made).

Araucária

Araucária is a farm located in the municipal district of Mineiros, in the State of Goiás, and it has a total surface area of 5,534 hectares, 3,831 of which are used for agriculture. Araucaria was acquired in 2007 for BRL 70.4 million. Before we purchased it, Araucária had been used for crop planting. The farm was transformed, and at present it is planted with sugarcane.

In May 2013, an area of 394 hectares (310 of which are used for agriculture) was sold. The sale price was BRL 10.3 million. In May 2014, the sale of 1,164 hectares was agreed for a total amount of BRL 41.3 million.

In March 2017, an area of 274 hectares was sold, of which 196 are developed and productive hectares. The price of the sale is 1,000 bags of soybeans per hectare. The Company has recognized a gain of ARS 29.9 million as a result of this transaction.

In May 2017, an area of 1,360 hectares was sold, of which 918 are developed and productive hectares. The sale price is 280 bags of soybeans per hectare. The Company has recognized a gain of ARS 37.4 million as a result of this transaction. On May 3, 2018, has been subscribed a purchase-sale ticket for the sale of a fraction of 956 hectares (660 productive) at a price of 1,208 bags of soybeans per hectare or BRL 61.6 million (BRL / ha 93,356).

Alto Taquarí

Alto Taquarí is located in the municipal district of Alto Taquarí, State of Mato Grosso, and it has a total surface area of 5,103 hectares, 3,206 of which are used for agriculture. The farm was acquired in August 2007 for BRL 33.2 million. Before we purchased it, the farm had been used for agriculture and cattle raising. Following its transformation, it is being used for sugarcane production.

On November 21, 2018, the Company, through its subsidiary Brasilagro, entered into a commitment to sell 103 hectares of the Alto Taquari field. The sale price is 1,100 bags of soybeans bags per hectare equivalent to BRL 63.4 million. The buyer made the initial payment of 22,656 soybean bags equivalent to BRL 17 million; and the balance will be paid in eight semiannual installments. The result of the operation recognized in this period was BRL 64 million.

On October 29, 2019, the Company, through its subsidiary BrasilAgro, entered into a commitment to sell 85 hectares (65 productive hectares) of the Alto Taquari Establishment, a rural property located in the municipality of Alto Taquari, for a purchase price of equivalent to BRL 5.5 million. On the closing date, the buyer made an initial payment of 14,300 bags of soybeans, equivalent to BRL 1 million. The remaining balance will be paid in four annual installments. The result of the operation recognized in this period was BRL 4 million.

On May 29, 2020, the Company, through its subsidiary BrasilAgro, entered into a commitment to sell 105 productive hectares of the Alto Taquarí field. The purchase price was 115,478 bags of soybeans, equivalent to BRL 11 million. On the closing date, the buyer made an initial payment of equivalent to BRL 1.8 million. The remaining balance will be paid in five annual installments. The result of the operation recognized in this period was BRL 8 million.

Chaparral

Chaparral is a 37,182-hectare farm, with 18,948 hectares used for agriculture. It is located in the municipal district of Correntina, State of Bahia. The farm was acquired in November 2007 for BRL 47.9 million.

Nova Buriti

Located in the municipal district of Januária, State of Minas Gerais, Nova Buriti has a surface area of 24,212 hectares. Nova Buriti was acquired in December 2007 for BRL 21.6 million. It is located in the southeastern region of Brazil and it is close to the large iron industries. At present, it is undergoing proceedings for obtaining the environmental licenses required for starting operations.

Preferencia

Preferência is located in the municipal district of Barreiras, in the State of Bahia. It has a total surface area of 17,799 hectares, 6,344 of which are used for agricultural activities. It was acquired for BRL 9.6 million in September 2008. The farm is being transformed into a pasturing area and will be later developed for agricultural purposes.

Sao José

Located in São Raimundo das Mangabeiras, in the state of Maranhão. With a total area of 17,566 hectares, of which 10,137 are destined to agricultural activity. It was acquired for a value of BRL 100 million in February 2017.

Arrojadinho

Located in Jaborandi, in the state of Bahia. With a total area of 16,642 hectares, of which 8,043 were rented for livestock activities. It was acquired in January 2020.

Rio do Meio

Located in Correntina, in the state of Bahia. With a total area of 12,288 hectares, of which 2,900 are used for agricultural activities. It was acquired in January 2020.

Serra Grande

Located in Baixa Grande do Ribeiro, in the state of Piauí. With a total area of 4,489 hectares, of which 2,904 are agricultural hectares. It was acquired in May 2020.

Paraguay (through our subsidiary Brasilagro)

Marangatú / Udra

We own, through BrasilAgro, the “Marangatú/UDRA” farms, located in Mariscal José Félix Estigarribia, Department of Boquerón, Paraguayan Chaco, Republic of Paraguay, totaling 59,585 hectares, out of which 10,174 hectares have been allocated to agricultural production, 3,064 hectares to cattle production and 1,612 hectares were leased to thir parties.

Land Management

In contrast to traditional Argentine farms, run by families, we centralize policy making in an Executive Committee that meets on a weekly basis in Buenos Aires. Individual farm management is delegated to farm managers who are responsible for farm operations. The Executive Committee lays down commercial and production rules based on sales, market expectations and risk allocation.

We rotate the use of our pasture lands between agricultural production and cattle feeding and the frequency depends on the location and characteristics of the farmland. The use of preservation techniques (including exploitation by no till sowing) frequently allows us to improve farm performance.

Subsequent to the acquisition of the properties, we make investments in technology in order to improve productivity and increase the value of the property. It may be the case that upon acquisition, a given extension of the property is under-utilized or the infrastructure may be in need of improvement. We have invested in traditional fencing and in electrical fencing, watering troughs for cattle herds, irrigation equipment and machinery, among other things.

Principal Markets

Crops

Our crop production is mostly sold in the domestic market. The prices of our crops are based on the market prices quoted in Argentine grains exchanges such as the Buenos Aires Grains Exchange (Bolsa de Cereales de Buenos Aires) and the cereal exchanges in each country, which take as reference the prices in international grains markets. The largest part of this production is sold to exporters who offer and ship this production to the international market. Prices are quoted in relation to the month of delivery and the port in which the product is to be delivered. Different conditions in price, such as terms of storage and shipment, are negotiated between the end buyer and ourselves.

Cattle

Our cattle production is sold in the local market. The main buyers are slaughterhouses and supermarkets.

Prices in the cattle market in Argentina are basically fixed by local supply and demand. The Liniers Market (on the outskirts of the Province of Buenos Aires) provides a standard in price formation for the rest of the domestic market. In this market live animals are sold by auction on a daily basis. At Liniers Market, prices are negotiated by kilogram of live weight and are mainly determined by local supply and demand. Prices tend to be lower than in industrialized countries. Some supermarkets and meat packers establish their prices by kilogram of processed meat; in these cases, the final price is influenced by processing yields.

Customers

For the fiscal year 2020, our sales from the agribusiness segment (excluding sales of farms) were made to approximately 300 customers. Sales to our ten largest customers represented approximately 45% to 50% of our net sales. Some of these customers included Cargill, FASA, Bunge Alimentos S.A. and GLENCORE. We have signed non-binding letters of intent with some of our largest customers that allow us to estimate the volume of the demand for certain products and to plan production accordingly. We generally enter into short-term agreements with a term of less than a year.

Marketing Channels and Sales Methods

Crops

We normally work with grains brokers and other intermediaries to trade in the exchanges. We sell part of our production in advance through futures contracts and buy and sell options to hedge against a drop in prices. Approximately 87% of the futures and options contracts are closed through the Buenos Aires Grains Exchange and 13% in the Chicago Board of Trade for hedging purposes.

Our storage capabilities allow us to condition and store crops with no third-party involvement and thus to capitalize the fluctuations in the price of commodities. In addition, we store crops in silo bags. On the other hand, in Brazil we have a total storage capacity of 10,279 tons.

Cattle

We have several marketing channels. We sell directly to local meat processors and supermarkets, as well as in markets and auctions. Our customers include Carnes Pampeanas, Frigorífico Bermejo, Arre Beef S.A., Sáenz Valiente Bullrich, and Colombo y Magliano S.A. Prices are based on the price at Liniers Market.

We are usually responsible for the costs of the freight to the market and, in general, we pay commissions on our transactions.

Inputs

The current direct cost of our production of crops varies in relation to each crop and normally includes the following costs: tillage, seeds, agrochemicals and fertilizers. We buy in bulk and store seeds, agrochemicals and fertilizers to benefit from discounts offered during off-season sales.

Competition

The agricultural and livestock sector is highly competitive, with a huge number of producers. We are one of the leading producers in Argentina and the region. However, if we compare the percentage of our production to the country’s total figures, our production would appear as extremely low, since the agricultural market is highly atomized. Our leading position improves our bargaining power with suppliers and customers. In general, we obtain discounts in the region in the acquisition of raw materials and an excess price in our sales.

Historically, there have been few companies competing for the acquisition and leases of farmlands for the purpose of benefiting from land appreciation and optimization of yields in the different commercial activities. However, we anticipate the possibility that new companies, some of them international, may become active players in the acquisition of farmlands and the leases of sown land, which would add players to the market in coming years.

Seasonality

As is the case with any company in the agro-industrial sector, our business activities are inherently seasonal. Harvest and sales of crops (corn, soybean and sunflower) in general take place from February to June. Wheat is harvested from December to January. With respect to our international market, in Bolivia climate conditions allow a double season of soybean, corn and sorghum production and, accordingly, these crops are harvested in April and October, while wheat and sunflower are harvested during August and September, respectively. Other segments of our activities, such as our sales of cattle and our forestry activities tend to be more of a successive character than of a seasonal character. However, the production of beef is generally higher during the second quarter, when pasture conditions are more favorable. In consequence, there may be significant variations in results from one quarter to the other.

Regulation and Governmental Supervision of our Agricultural Business

Farming and Animal Husbandry Agreements

According to Law No. 13,246, as amended by Law No. 22,298, all lease agreements related to rural properties and land are required to have a minimum duration of 3 years, except in the case of those designated as “accidental agreements” pursuant to Section 39, subsection a), Law No. 13,246. Upon death of the tenant farmer, the agreement may continue with his successors. Upon misuse of the land by the tenant farmer or default in payment of the rent, the land owner may initiate an eviction proceeding.

Law No. 13,246, amended by Law No. 22,298, also regulates sharecropping agreements pursuant to which one of the parties furnishes the other with animals or land for the purpose of sharing benefits between the parties. These agreements are required to have a minimum term of duration of 3 years, although the rule of Section 39 of Law No. 13,246 on accidental agreements for smaller terms also applies in this case. The agreement is not assignable under any circumstance whatsoever, unless expressly agreed by the parties. Upon death, disability of the tenant farmer or other impossibility, the agreement may be terminated.

Quality control of Crops and Cattle

The quality of the crops and the health measures applied on the cattle are regulated and controlled by the Servicio Nacional de Sanidad y Calidad Agroalimentaria (“SENASA”), which is an entity within the Agro-industry Ministry that oversees farming and animal sanitary activities.

Argentine law establishes that the brands should be registered with each provincial registry and that there cannot be brands alike within the same province.

Sale and Transportation of Cattle

Even though the sale of cattle is not specifically regulated, general contract provisions are applicable. Further, every province has its own rural code regulating the sale of cattle.

Argentine law establishes that the transportation of cattle is lawful only when it is done with the respective certificate that specifies the relevant information about the cattle. The required information for the certificate is established by the different provincial regulations, the inter-provinces treaties and the regulations issued by the SENASA.

Export Restriction of Beef

In addition, the Secretary of Agriculture, Livestock, Fishing and Food Products, within the orbit of the Ministry of Economy and Public Finance, oversees the farming and animal sanitary activities.

The Secretary of Agriculture, Livestock, Fishing and Food Products is in charge of distributing the annual regular quota of top quality chilled beef without bones, the “Cuota Hilton.” The destination of the Cuota Hilton is the European Union.

The Secretary of Agriculture, Livestock, Fishing and Food Products granted to our subsidiary Sociedad Anónima Carnes Pampeanas up to 1,420 tons to export beef under the Cuota Hilton for the July 2019-June 2020 period.

Environment

The development of our agribusiness activities depends on a number of federal, provincial and municipal laws and regulations related to environmental protection.

We may be subject to criminal and administrative penalties, including taking action to reverse the adverse impact of our activities on the environment and to reimburse third parties for damages resulting from contraventions of environmental laws and regulations. Under the Argentine Criminal Code, persons (including directors, officers and managers of corporations) who commit crimes against public health, such as poisoning or dangerously altering water, food or medicine used for public consumption and selling products that are dangerous to health, without the necessary warnings, may be subject to fines, imprisonment or both. Some courts have enforced these provisions in the Argentine Criminal Code to sanction the discharge of substances which are hazardous to human health. At the administrative level, the penalties vary from warnings and fines to the full or partial suspension of the activities, which may include the revocation or annulment of tax benefits, cancellation or interruption of credit lines granted by state banks and a prohibition against entering into contracts with public entities.

The Forestry Legislation of Argentina prohibits the devastation of forests and forested lands, as well as the irrational use of forest products. Landowners, tenants and holders of natural forests require an authorization from the Forestry Competent Authority for the cultivation of forest land. The legislation also promotes the formation and conservation of natural forests in properties used for agriculture and farming purposes.

In accordance with legislative requirements, we have applied for approval to develop certain parts of our land reserves and were authorized to develop them partially and to maintain other areas as land reserves. We cannot assure you that current or future development applications will be approved, and if so, to what extent we will be allowed to develop our land reserves. We intend to use genetically modified organisms in our agricultural activities. In Argentina, the development of genetically modified organisms is subject to special laws and regulations and special permits.

On November 28, 2007, the Argentine Congress passed a law known as the Forest Law which sets minimum standards for the conservation of native forests and incorporates minimum provincial expenditures to promote the protection, restoration, conservation and sustainable use of native forests. The Forest Law prevents landowners, including owners of native forests, from deforesting or converting forested areas into non-forested land for other commercial uses without prior permission from each local government that gives the permit and requires the preparation, assessment and approval of an environmental impact report. The Forest Law also provides that each province should adopt its own legislation and regional regulation map within a term of one year. Until such provincial implementation is carried into effect, no new areas may be deforested. In addition, the Forest Law also establishes a national policy for sustainable use of native forests and includes the recognition of native communities and aims to provide preferential use rights to indigenous communities living and farming near the forest. In case a project affects such communities, the relevant provincial authority may not issue permits without formal public hearings and written consent of the communities.

Besides, the Rules issued by the CNV provide that publicly traded companies whose corporate purpose includes environmentally hazardous activities should report to their shareholders, investors and the general public their compliance with the applicable environmental laws and risks inherent to such activities, so as to be able to reasonably assess such hazards.

Our activities are subject to a number of national, provincial and municipal environmental regulations. Section 41 of the Argentine Constitution, as amended in 1994, provides that all Argentine inhabitants have the right to a healthy and balanced environment fit for human development and have the duty to preserve it. Environmental damage shall bring about primarily the obligation to redress it as provided by applicable law. The authorities shall protect this right, the rational use of natural resources, the preservation of the natural and cultural heritage and of biodiversity, and shall also provide for environmental information and education. The National Government shall establish minimum standards for environmental protection and Provincial and Municipal Governments shall determine specific standards and issue the applicable regulations.

On November 6, 2009, the Argentine Congress passed Law No. 25,675. This law regulates the minimum standards for the achievement of a sustainable environment and the preservation and protection of biodiversity and sets environmental policy goals. Moreover, Law No. 25,675 establishes the activities that will be subject to an environmental impact assessment procedure and certain requirements applicable thereto. In addition, the Law sets forth the duties and obligations that will be triggered by any damage to the environment and imposes the obligation to restore it to its former condition or, if that is not technically feasible, to pay a compensation in lieu thereof. The Law also fosters environmental education and provides for certain minimum obligations to be fulfilled by natural and artificial persons.

Leases

Laws and regulations governing the acquisition and transfer of real estate, as well as municipal zoning ordinances, are applicable to the development and operation of the Company’s properties.

Currently, Argentine law does not specifically regulate shopping mall lease agreements. Since our shopping mall leases generally differ from ordinary commercial leases, we have created provisions which govern the relationship with our shopping mall tenants.

Argentine law imposes certain restrictions on property owners, including:

●

a prohibition to include price indexation clauses based on inflation increases in lease agreements; and

●

a two-year minimum lease term is established for all purposes, except in particular cases such as embassy, consulate or international organization venues, room with furniture for touristic purposes for less than three months, custody and bailment of goods, exhibition or offering of goods in fairs or in cases where they are entered into for a specific purpose expressly stated in the agreement that is usually fulfilled within an agreed shorter term.

Rent Increase

In addition, there are at present contradictory court rulings with respect to whether the rent price can or cannot be increased during the term of the lease agreement. Most of our lease agreements have incremental rent increase clauses that are not based on any official index. As of the date of this document, no tenant has filed any legal action against us challenging incremental rent increases, but we cannot assure that such actions will not be filed in the future and, if any such actions were successful, that they will not have an adverse effect on our company.

Limits on lease terms

Under the Argentine Civil and Commercial Code lease terms may not exceed fifty years, irrespective of the intended use of the property (save in case of residential use, where the maximum term is twenty years). Generally, terms in its lease agreements go from 3 to 10 years.

Early termination rights

The Argentine Civil and Commercial Code provides that tenants of properties may declare the early termination of lease agreements after the first six months of the effective date. Such termination is subject to penalties which range from one to one and a half months of rent. If the tenant terminates the agreement during the first year of the lease, the penalty is one and a half month’s rent and, if the termination occurs after the first year of lease, the penalty is one month’s rent.

It should be noted that the Argentine Civil and Commercial Code became effective on August 1, 2015 and that, among other rules, it repealed the Urban Lease Law (No. 23,091), which provided for a rule similar to the one described above, but (i) it established the obligation to give at least 60 days’ prior notice of exercise of the early termination right by the tenant; and (ii) it set forth in its Section 29 that its provisions were mandatory. There are no court rulings yet with respect to the new regulations related to: (i) unilateral right to termination by tenant; i.e. whether the parties may waive the tenant’s right to terminate the agreement unilaterally; or in relation to (ii) the possibility of establishing a penalty different from the penalty described above in the event of unilateral termination by the lessee.

Other

Most of our leases provide that the tenants pay all costs and taxes related to the property in proportion to their respective leasable areas. In the event of a significant increase in the amount of such costs and taxes, the Argentine government may respond to political pressure to intervene by regulating this practice, thereby adversely affecting our rental income. The Argentine Civil and Commercial Procedural Code enables the lessor to pursue collection of outstanding rental payments through an “executory proceeding” upon lessee’s payment default. In executory proceedings debtors have fewer defenses available to prevent foreclosure, making these proceedings substantially shorter than ordinary ones. In executory proceedings, the origin of the debt is not under discussion; the trial focuses on the formalities of debt instrument itself. The Procedural Code also permits special eviction proceedings, which are carried out in the same way as ordinary proceedings. The Argentine Civil and Commercial Code requires that a notice be given to the tenant demanding payment of the amounts due in the event of breach prior to eviction, of no less than ten days for leases for residential purposes, and establishes no limitation or minimum notice for leases for other purposes. However, historically, large court dockets and numerous procedural hurdles have resulted in significant delays to eviction proceedings, which generally last from six months to two years from the date of filing of the suit to the time of actual eviction.

Development and Use of the Land

Buenos Aires Urban Planning Code. Our real estate activities are subject to several municipal zoning, building, occupation and environmental regulations. In the City of Buenos Aires, where the vast majority of the real estate properties are located, the Buenos Aires Urban Planning Code (Código de Planeamiento Urbano de la Ciudad de Buenos Aires) generally restricts the density and use of property and controls physical features of improvements on property, such as height, design, set-back and overhang, consistent with the city’s urban landscape policy. The administrative agency in charge of the Urban Planning Code is the Secretary of Urban Planning of the City of Buenos Aires.

Buenos Aires Building Code. The Buenos Aires Building Code (Código de Edificación de la Ciudad de Buenos Aires) supplements the Buenos Aires Urban Planning Code and regulates the structural use and development of property in the City of Buenos Aires. The Buenos Aires Building Code requires builders and developers to file applications for building permits, including the submission to the Secretary of Work and Public Services (Secretaría de Obras y Servicios Públicos) of architectural plans for review, to assure compliance therewith.

We believe that all of our real estate properties are in material compliance with all relevant laws, ordinances and regulations.

Sales and Ownership

Buildings Law. Buildings Law No. 19,724 (Ley de Pre horizontalidad) was repealed by the new Argentine Civil and Commercial Code which became effective on August 1, 2015. The new regulations provide that for purposes of execution of agreements with respect to built units or units to be built under this regime, the owner is required to purchase insurance in favor of prospective purchasers against the risk of frustration of the operation pursuant to the agreement for any reason. A breach of this obligation prevents the owner from exercising any right against the purchaser – such as demanding payment of any outstanding installments due – unless he/she fully complies with his/her obligations, but does not prevent the purchaser from exercising its rights against seller.

Protection for the Disabled Law. The Protection for the Disabled Law No. 22,431, enacted on March 20, 1981, as amended, provides that in connection with the construction and renovation of buildings, obstructions to access must be eliminated in order to enable access by handicapped individuals. In the construction of public buildings, entrances, transit pathways and adequate facilities for mobility-impaired individuals must be provided for.

Buildings constructed before the enforcement of the Protection for the Disabled Law must be adapted to provide accesses, transit pathways and adequate facilities for mobility-impaired individuals.

Those pre-existing buildings, which due to their architectural design may not be adapted to the use by mobility-impaired individuals, are exempted from the fulfillment of these requirements.

The Protection for the Disabled Law provides that residential buildings must ensure access by mobility-impaired individuals to elevators and aisles. Architectural requirements refer to pathways, stairs, ramps and parking.

Real Estate Installment Sales Law. The Real Estate Installment Sales Law No. 14,005, as amended by Law No. 23,266 and Decree No. 2015/85, imposes a series of requirements on contracts for the sale of subdivided real estate property regarding, for example, the sale price which is paid in installments and the deed, which is not conveyed until final payment of such price. The provisions of this law require, among other things:

The registration of the intention to sell the property in subdivided plots with the Real Estate Registry (Registro de la Propiedad Inmueble) corresponding to the jurisdiction of the property. Registration will only be possible with regard to unencumbered property. Mortgaged property may only be registered where creditors agree to divide the debt in accordance with the subdivided plots. However, creditors may be judicially compelled to agree to the division.

The preliminary registration with the Real Estate Registry of the purchase instrument within 30 days of execution of the agreements.

Once the property is registered, the installment sale may not occur in a manner inconsistent with the Real Estate Installment Sales Law, unless seller registers its decision to desist from the sale in installments with the Real Estate Registry. In the event of a dispute over the title between the purchaser and third-party creditors of the seller, the installment purchaser who has duly registered the purchase instrument with the Real Estate Registry will obtain the deed to the plot. Further, the purchaser can demand conveyance of title after at least 25% of the purchase price has been paid, although the seller may demand a mortgage to secure payment of the balance of the purchase price.

After payment of 25% of the purchase price or the construction of improvements on the property equal to at least 50% of the property value, the Real Estate Installment Sales Law prohibits the termination of the sales contract for failure by the purchaser to pay the balance of the purchase price. However, in such event, the seller may take action under any mortgage on the property.

Other Regulations

Consumer Relationship. Consumer or End User Protection. The Argentine Constitution expressly establishes in Section 42 that consumers and users of goods and services have a right to protection of health, safety and economic interests in a consumer relationship. Consumer Protection Law No. 24,240, as amended, regulates several issues concerning the protection of consumers and end users in a consumer relationship, in the arrangement and execution of contracts.

The Consumer Protection Law, and the applicable sections of the Argentine Civil and Commercial Code are intended to regulate the constitutional right conferred under the Constitution on the weakest party of the consumer relationship and prevent potential abuses deriving from the stronger bargaining position of vendors of goods and services in a mass-market economy where standard form contracts are widespread.

As a result, the Consumer Protection Law and the Argentine Civil and Commercial Code deem void and unenforceable certain contractual provisions included in consumer contracts entered into with consumers or end users, including those which:

●

deprive obligations of their nature or limit liability for damages;

●

imply a waiver or restriction of consumer rights and an extension of seller rights; and

●

impose the shifting of the burden of proof against consumers.

In addition, the Consumer Protection Law imposes penalties ranging from warnings to fines from ARS 100 to ARS 5,000,000, the seizure of merchandise, closing down of establishments for a term of up to thirty (30) days, suspension of up to 5 years in the State suppliers register, the forfeiture of concession rights, privileges, tax regimes or special credits to which the sanctioned party was entitled. These penalties may be imposed separately or jointly.

The Consumer Protection Law and the Argentine Civil and Commercial Code define consumers or end users as the individuals or legal entities that acquire or use goods or services free of charge or for a price for their own final use or benefit or that of their family or social group. In addition, both laws provide that those who though not being parties to a consumer relationship as a result thereof acquire or use goods or services, for consideration or for non-consideration, for their own final use or that of their family or social group are entitled to such protection rights in a manner comparable to those engaged in a consumer relationship.

In addition, the Consumer Protection Law defines the suppliers of goods and services as the individuals or legal entities, either public or private, that in a professional way, even occasionally, produce, import, distribute or commercialize goods or supply services to consumers or users.

The Argentine Civil and Commercial Code defines a consumer agreement as such agreement that is entered into between a consumer or end user and an individual or legal entity that acts professionally or occasionally or a private or public company that manufactures goods or provides services, for the purpose of acquisition, use or enjoyment of goods or services by consumers or users for private, family or social use.

It is important to point out that the protection under the laws afforded to consumers and end users encompasses the entire consumer relationship process (from the offering of the product or service) and it is not only based on a contract, including the consequences thereof.

In addition, the Consumer Protection Law establishes a joint and several liability system under which for any damages caused to consumers, if resulting from a defect or risk inherent in the thing or the provision of a service, the producer, manufacturer, importer, distributor, supplier, seller and anyone who has placed its trademark on the thing or service shall be liable.

The Consumer Protection Law excludes the services supplied by professionals that require a college degree and registration in officially recognized professional organizations or by a governmental authority. However, this law regulates the advertisements that promote the services of such professionals.

The Consumer Protection Law determines that the information contained in the offer addressed to undetermined prospective consumers, binds the offeror during the period in which the offer takes place and until its public revocation. Further, it determines that specifications included in advertisements, announcements, prospectuses, circulars or other media bind the offeror and are considered part of the contract entered into by the consumer.

Pursuant to Resolution No. 104/05 issued by the Secretariat of Technical Coordination reporting to the Argentine Ministry of Economy, the Consumer Protection Law adopted Resolution No. 21/2004 issued by the Mercosur’s Common Market Group which requires that those who engage in commerce over the Internet (E-Business) shall disclose in a precise and clear manner the characteristics of the products and/or services offered and the sale terms. Failure to comply with the terms of the offer is deemed an unjustified denial to sell and gives rise to sanctions.

On September 17, 2014, a new Consumer Protection Law was enacted by the Argentine Congress –Law No. 26,993–. This law, known as “System for Conflict Resolution in Consumer Relationships,” provided for the creation of new administrative and judicial procedures for this field of Law. It created a two-instance administrative system: the Preliminary Conciliation Service for Consumer Relationships (Servicio de Conciliación Previa en las Relaciones de Consumo, COPREC) and the Consumer Relationship Audit, and a number of courts assigned to resolution of conflicts between consumers and producers of goods and services (Fuero Judicial Nacional de Consumo). In order to file a claim, the amount so claimed should not exceed a fixed amount equivalent to 55 adjustable minimum living wages, which are determined by the Ministry of Labor, Employment and Social Security. The claim is required to be filed with the administrative agency. If an agreement is not reached between the parties, the claimant may file the claim in court. The administrative system known as Preliminary Conciliation Service for Consumer Relationships (COPREC) is currently in full force and effect. However, the court system (fuero judicial nacional de consumo) is not in force yet, therefore, any court claims should be currently filed with the existing applicable courts. A considerable volume of claims filed against us are expected to be settled pursuant to the system referred to above, without disregarding the full force and effect of different instances for administrative claims existing in the provincial sphere and the City of Buenos Aires, which remain in full force and effect, where potential claims related to this matter could also be filed.

Antitrust Law

Law No. 27,442, as amended, or the “Antitrust Law,” prevents collusive practices by market participants and requires administrative approval for transactions that according to the Antitrust Law constitute an economic concentration. According to this law, mergers, transfers of goodwill, acquisitions of property or rights over shares, capital or other convertible securities, or similar transactions by which the acquirer controls or substantially influences a company, are considered as an economic concentration. Whenever an economic concentration involves a company or companies and the aggregate volume of business in Argentina of the companies concerned exceeds 100 million mobile units, the respective concentration must be submitted for approval to the CNDC. The request for approval may be filed, either prior to the transaction or the implementing of the control take.

For the purpose of determining the volume of the business mentioned on the paragraph before, the CNDC will annually inform the amount in legal currency that will apply during the corresponding year. For that purpose, the CNDC will consider the mobile unit value current at the last business day of the previous year. When a request for approval is filed, the CNDC may (i) authorize the transaction, (ii) subordinate the transaction to the accomplishment of certain conditions or (iii) reject the authorization.

The Antitrust Law provides that economic concentrations in which the transaction amount and the value of the assets subject to acquisition or disposition do not exceed 20 million mobile units each do not require approval. When the amount of the transactions consummated in the preceding 12 months exceeds in aggregate 20 million mobile units or 60 million mobile units in the preceding 36 months, these transactions require CNDC approval.

As our consolidated annual sales volume and our parent’s consolidated annual sales volume exceed ARS 812,000,000, we are required to notice to the CNDC of any concentration provided for by the Antitrust Law; provided that no exception to the notice requirement under the Antitrust Law is applicable.

Taxes on the Transfer of Property and Sale of Meat and Grains

Value Added Tax (VAT). VAT is a federal tax that applies mainly to the (i) sale of goods located in Argentina; (ii) provision of services within Argentina; (iii) final import of goods and services (services rendered outside Argentina to persons registered as domestic VAT taxpayers that are economically used or exploited inside the country); and (iv) digital services provided by a foreign company or individuals that are economically used or exploited inside the country. Services rendered inside Argentina deemed to be used or exploited outside the country are not subject to VAT (export of services) and exports are exempted to pay VAT.

VAT is paid at each stage of the chain of production or distribution of goods or services. The general tax rate is 21%.

The value added tax law imposes a reduced rate, equal to 10.5% on the sale price of on the sale price of live animals (including cattle, sheep, camels and goats, among others) as well as their meat and edible remains, fruits and vegetables, all of which whether fresh, chilled, or frozen, which have not undergone any cooking or manufacturing process turning them into a manufactured product. This 10.5% reduced rate is also applicable to the sale of grains (cereals and oilseeds, excluding rice), and dry pulses (beans, peas, and lentils). In the case of milk, the sale is subject to a 21% rate (except for sales to final consumers, the federal government, the provinces, municipalities or the City of Buenos Aires or any subordinate agencies, school or university kitchens, health funds or entities under the scope of paragraphs e), f), g) and m) of Section 20 of the Income Tax Law, which are exempt).

The sale of land and immovable property is not subject to this tax.

Gross Income Tax. This is a local tax (collected by the provinces and the City of Buenos Aires) that levies onerous activities (habitually activities) carried out within a province or the City of Buenos Aires. The taxable base is the gross income derived from said activities.

When the same business is developed in more than one jurisdiction, the tax is applicable pursuant to the regulations set forth in the Multilateral Agreement, which distributes taxable base among the different jurisdictions, in accordance with certain parameters (usually, attribution of income or expenses to each jurisdiction), which is relevant for taxpayers that carry out activities in several jurisdictions, and is applicable in order to avoid double taxation.

In the City of Buenos Aires, gross income derived from livestock raising and milk production are subject to this tax at a general rate of 0.75%. In certain provinces, the sale of primary goods is not taxable.

Stamp Tax. This is a local tax that 23 provinces and the City of Buenos Aires collect based on similar rules regarding subject matter, tax base and rates. In general, this tax is levied on instrumented acts, i.e. executed and delivered by means of documents (e.g. acts related to the constitution, transmission, or expiration of rights, contracts, contracts for sales of stock and company shares, public deeds relating to real property, etc.).

In the City of Buenos Aires (federal district) the stamp tax rate applicable to the transfer by public deed of real property is 3.6% and 2% in the Province of Buenos Aires. The purchase and sale of real property through public deed, however, is not taxable in the province and the City of Buenos Aires –up to a certain value of the property- if the real estate is used for permanent dwelling purposes, and provided that it is the only property owned by the purchaser.

Operations Center in Argentina

Shopping Malls

As of September 30, 2020, IRSA CP owned a majority interest in and operated, a portfolio of 15 shopping malls in Argentina, six of which are located in the City of Buenos Aires (Abasto, Alcorta Shopping, Alto Palermo Shopping, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two are located in the greater Buenos Aires area (Alto Avellaneda and Soleil Premium Outlet), and the rest are located in different provinces of Argentina (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera and Patio Olmos (operated by a third party) in the City of Córdoba, La Ribera Shopping in Santa Fe (through a joint venture) and Alto Comahue in the City of Neuquén).

The shopping malls we operate comprise a total of 333,345 sqm of GLA (excluding certain spaces occupied by hypermarkets which are not our tenants). Total tenant sales in our shopping malls, as reported by retailers, were ARS 75,321 million for fiscal year 2020 and ARS 101,665 million for fiscal year 2019, a decrease of 25.9% in real terms (+6.7% in nominal terms). The greatest impact of this drop was evidenced in the first quarter of the year because of the closure of operations due to the lockdown decreed in Argentina on March 20, 2020 as a consequence of COVID19. Tenant sales at our shopping malls are relevant to our revenues and profitability because it is an important factor in determining rent our tenants pay. Sales also affect tenant’s overall occupancy costs as a percentage of that tenant’s sales.

The following table shows certain information about IRSA CP’s shopping malls as of September 30, 2020:

Shopping<br>malls	Date<br>of acquisition/development	Location	GLA<br>(sqm)(1)	Number<br>of stores	Occupancy<br>rate(2)	Our<br>ownership interest(3)	Rental<br>revenue
					(%)	(%)	(in<br>million of ARS )
Alto<br>Palermo	Dec-97	City of Buenos<br>Aires	18,655	136	94.5	100	69
Abasto<br>Shopping(4)	Nov-99	City of Buenos<br>Aires	36,761	163	94.6	100	28
Alto<br>Avellaneda	Dec-97	Buenos Aires<br>Province	38,801	126	96.2	100	8
Alcorta<br>Shopping	Jun-97	City of Buenos<br>Aires	15,725	114	97.4	100	24
Patio<br>Bullrich	Oct-98	City of Buenos<br>Aires	11,396	89	89.7	100	(7)
Dot Baires<br>Shopping	May-09	City of Buenos<br>Aires	48,805	164	71.7	80	10
Soleil Premium<br>Outlet	Jul-10	Buenos Aires<br>Province	15,156	79	95.9	100	16
Distrito<br>Arcos	Dec-14	City of Buenos<br>Aires	14,335	65	100.0	90	26
Alto Noa<br>Shopping	Mar-95	City of<br>Salta	19,313	85	96.6	100	31
Alto Rosario<br>Shopping(4)	Nov-04	City of<br>Rosario	33,682	140	98.3	100	83
Mendoza Plaza<br>Shopping	Dec-94	City of<br>Mendoza	43,123	127	96.0	100	39
Córdoba<br>Shopping	Dec-06	City of<br>Córdoba	15,361	104	98.1	100	29
La Ribera<br>Shopping	Aug-11	City of Santa<br>Fé	10,530	70	97.4	50	2
Alto<br>Comahue	Mar-15	City of<br>Neuquén	11,702	95	93.9	99.95	67
Patio<br>Olmos(5)	Sep-07	City of<br>Córdoba	—	—	—	—	—
Total			333,345	1,557	92.8		425

(1)

Corresponds to gross leasable area in each property. Excludes common areas and parking spaces.

(2)

Calculated dividing occupied sqm by leasable area as of the last day of the fiscal year.

(3)

Company’s effective interest in each of its business units.

(4)

Excludes Museo de los Niños (which represents 3,732 sqm in Abasto and 1,261 sqm in Alto Rosario).

(6)

IRSA CP owns the historic building of the Patio Olmos shopping mall in the Province of Córdoba, operated by a third party and does not include the rental revenues of Patio Olmos, for more details see “Accumulated rental income”.

The following table shows information about IRSA CP’s future expansions on current assets as of September 30, 2020:

Expansions	Ownership<br>interest	Surface	Locations
	(%)	(sqm)
Alto Palermo<br>Adjoining<br>Plot	100	3,900	City of Buenos<br>Aires
Subtotal<br>current<br>expansions		3,900
Other future<br>expansions(1)		98,055
Subtotal<br>future<br>expansions		98,055
Total<br>Shopping<br>Malls		101,955
Patio Bullrich -<br>Offices /<br>Hotel	100	10,000	City of Buenos<br>Aires
Philips<br>Building	100	20,000	City of Buenos<br>Aires
Subtotal<br>future<br>expansions		30,000
Total<br>offices		30,000
Total<br>expansions		131,955

(1)

Includes Alto Palermo, Paseo Alcorta, Alto Avellaneda, Soleil, Alto Noa, Alto Rosario, Mendoza, Córdoba y La Ribera Shopping

Rental income

The following table sets forth total rental income for each of IRSA CP’s shopping malls for the fiscal years indicated:

	As<br>of September 30,		For<br>the fiscal years ended June 30,(1)
	2020	2019	2020	2019	2018
	(in<br>millions of ARS)
Alto<br>Palermo	69	340	1,073	1,516	1,631
Abasto<br>Shopping	28	312	919	1,412	2,196
Alto<br>Avellaneda	8	213	646	1,015	1,140
Alcorta<br>Shopping	24	171	573	746	791
Patio<br>Bullrich	(7)	101	332	434	458
Dot Baires<br>Shopping	10	230	703	1,196	1,170
Soleil Premium<br>Outlet	16	95	267	395	414
Distrito<br>Arcos	26	174	494	680	667
Alto Noa<br>Shopping	31	70	199	267	300
Alto Rosario<br>Shopping	83	168	560	735	788
Mendoza Plaza<br>Shopping	39	101	318	441	483
Córdoba<br>Shopping Villa Cabrera	29	63	191	265	293
La Ribera<br>Shopping(2)	2	21	64	94	99
Alto<br>Comahue	67	108	406	451	389
Subtotal	425	2,167	6,742	9,646	10,823
Patio<br>Olmos(3)	2	3	8	11	11
Adjustments and<br>eliminations(4)	(58)	(83)	(362	(463)	(337)
Total	369	2,087	6,389	9,195	10,496

(1)

Includes base rent, percentage rent, admission rights, fees, parking, commissions, revenue from non-traditional advertising and others. Does not include Patio Olmos.

(2)

Through our joint venture Nuevo Puerto Santa Fé S.A.

(3)

IRSA CP owns the historic building where the Patio Olmos shopping mall is located in the province of Cordoba. The property is managed by a third party.

(4)

Includes indirect incomes and eliminations between segments. In 2019 and 2018, revenue from Buenos Aires Design are included. End of concession December 5, 2018.

The following table sets forth IRSA CP’s revenue from cumulative leases by revenue category for the fiscal years presented:

	As<br>of September 30,		For<br>the fiscal year ended June 30,
	2020	2019	2020	2019	2018
	(in<br>millions of ARS)
Base<br>rent	123	1,128	3,367	5,146	6,053
Percentage<br>rent	63	499	1,584	1,915	2,006
Total<br>rent	186	1,627	4,951	7,061	8,059
Non-traditional<br>advertising	33	56	198	239	264
Revenues from<br>admission rights	146	263	972	1,131	1,251
Fees	25	29	113	127	149
Parking	3	122	319	509	615
Commissions	29	56	167	346	462
Other	3	15	23	233	24
Subtotal(1)	425	2,168	6,742	9,646	10,823
Patio<br>Olmos	2	2	8	11	11
Adjustments and<br>eliminations(2)	(58)	(83)	(362)	(463)	(337)
Total	369	2,087	6,389	9,195	10,496

(1)

Does not include Patio Olmos

(2)

Includes indirect incomes and eliminations between segments. In 2019 and 2018, revenues from Buenos Aires Design are included. End of concession December 5, 2018.

Tenant retail sales

For the 2020 fiscal year, IRSA CP’s shopping mall tenants’ sales reached ARS 75,321 million, a decrease of 25.9% in real terms compared to the previous fiscal year (+6,7% in nominal terms).

Tenant sales at the shopping malls located in the City of Buenos Aires and Greater Buenos Aires recorded year-on-year decreases of 26.9% in real terms (+5.0% in nominal terms), up from ARS 70,411 million to ARS 51,464 million during fiscal year 2020, whereas shopping malls in the interior of Argentina decreased approximately 23.7% in real terms (+10.4% in nominal terms) in comparison with the previous fiscal year, from ARS 31,254 million to ARS 23,856 million during fiscal year 2020.

The following table sets forth the total retail sales of IRSA CP’s shopping mall tenants for the fiscal years indicated:

	As<br>of September 30,(1)		For<br>the fiscal years ended June 30,(1)
	2020	2019	2020	2019	2018
	(in<br>millions of ARS)
Alto<br>Palermo	127	3,116	9,191	12,472	13,783
Abasto<br>Shopping	94	3,231	9,346	13,228	15,546
Alto<br>Avellaneda	92	2,829	8,258	11,862	14,955
Alcorta<br>Shopping	17	1,765	5,480	7,035	7,535
Patio<br>Bullrich	168	1,193	3,728	4,622	4,177
Buenos Aires<br>Design(1)	—	—	—	605	1,922
Dot Baires<br>Shopping	83	2,390	7,341	10,137	12,863
Soleil Premium<br>Outlet	184	1,377	3,814	5,443	6,098
Distrito<br>Arcos	500	1,491	4,307	5,007	5,026
Alto Noa<br>Shopping	653	1,099	3,739	4,491	5,425
Alto Rosario<br>Shopping	1,230	2,509	7,783	9,997	11,152
Mendoza Plaza<br>Shopping	1,226	1,971	6,075	7,969	9,412
Córdoba<br>Shopping Villa Cabrera	506	771	2,396	3,261	3,856
La Ribera<br>Shopping(2)	142	572	1,589	2,333	2,824
Alto<br>Comahue	152	799	2,274	3,204	3,510
Total	5,174	25,113	75,321	101,665	118,083

(1)

Retail sales based upon information provided to us by retailers and prior owners. The amounts shown reflect 100% of the retail sales of each shopping mall, although in certain cases we own less than 100% of such shopping malls. Includes sales from stands and excludes spaces used for special exhibitions.

(2)

End of concession term was December 5, 2018

(3)

Owned by Nuevo Puerto Santa Fé S.A., in which we are a joint venture partner.

Total sales by type of business

The following table sets forth the retail sales of IRSA CP’s shopping mall tenants by type of business for the fiscal years indicated:

	As<br>of September 30,(1)		For<br>the fiscal years ended June 30,(1)
	2020	2019	2020	2019	2018
	(in<br>millions of ARS )
Department<br>Store	381	1,327	4,009	5,502	6,771
Clothes and<br>footwear	2,477	13,575	41,203	56,492	61,600
Entertainment	—	1,047	2,311	3,408	3,665
Home and<br>decoration	143	493	1,541	2,258	3,306
Home<br>Appliances	452	3,065	8,494	11,387	13,020
Restaurants	939	3,140	10,764	12,744	13,947
Miscellaneous	23	296	866	1,213	1,274
Services	759	2,170	6,133	8,661	14,501
Total	5,174	25,113	75,321	101,665	118,083

(1)

Includes sales from stands and excludes spaces used for special exhibitions.

Occupancy rate

The following table sets forth the occupancy rate of IRSA CP’s shopping malls expressed as a percentage of gross leasable area of each shopping mall for the fiscal years indicated:

	As<br>of September 30,(1)		As<br>of June 30,(1)
	2020	2019	2020	2019	2018
	(%)
Alto<br>Palermo	94.5	98.1	91.9	99.1	99.5
Abasto<br>Shopping	94.6	97.7	94.9	98.7	99.1
Alto<br>Avellaneda	96.2	99.1	97.4	98.6	98.9
Alcorta<br>Shopping	97.4	98.1	97.3	97.9	99.8
Patio<br>Bullrich	89.7	94.7	91.4	93.5	97.1
Dot Baires<br>Shopping	71.7	75.6	74.6	74.5	99.5
Soleil Premium<br>Outlet	95.9	98.9	97.1	99.0	97.7
Distrito<br>Arcos	100.0	94.5	93.8	99.4	99.7
Alto Noa<br>Shopping	99.6	97.2	99.0	99.5	96.8
Alto Rosario<br>Shopping	98.3	99.8	97.2	99.6	99.5
Mendoza Plaza<br>Shopping	96.0	95.0	97.8	97.3	98.3
Córdoba<br>Shopping Villa Cabrera	98.1	99.9	95.4	99.3	100.0
La Ribera<br>Shopping	97.4	95.7	99.0	94.6	94.9
Alto<br>Comahue	93.9	96.9	96.2	96.2	94.4
Total<br>(1)	92.8	94.3	93.2	94.7	98.5

(1)

As of September 30, 2020, the occupancy rate decreased mainly due to 12,600 sqm vacancy generated by Walmart in Dot Baires Shopping. Excluding this effect, the occupancy would have been 96.4%.

Rental price

The following table shows the annual average rental price per square meter of our shopping malls for the fiscal years indicated:

	As<br>of September 30,(1)		As<br>of June 30,(1)
	2020	2019	2020	2019	2018
	(en<br>ARS)
Alto<br>Palermo	1,570	12,722	38,255	55,615	62,034
Abasto<br>Shopping	(82)	6,230	17,412	27,113	36,409
Alto<br>Avellaneda	(477)	4,477	12,464	20,817	24,609
Alcorta<br>Shopping	353	7,576	24,507	32,923	35,654
Patio<br>Bullrich	(1,482)	5,823	19,220	25,229	26,674
Dot Baires<br>Shopping	(188)	3,258	9,663	14,328	16,280
Soleil Premium<br>Outlet	487	5,096	13,674	21,277	23,379
Distrito<br>Arcos	1,450	10,203	26,975	39,130	39,393
Alto Noa<br>Shopping	1,266	3,224	8,766	11,703	13,785
Alto Rosario<br>Shopping	1,779	4,036	12,940	17,686	19,629
Mendoza Plaza<br>Shopping	663	2,013	5,953	8,486	9,814
Córdoba<br>Shopping Villa Cabrera	1,501	3,293	9,751	14,071	9,814
La Ribera<br>Shopping	39	1,766	4,869	7,336	8,199
Alto<br>Comahue	5,392	8,510	32,979	31,830	38,722

(1)

Corresponds to consolidated annual accumulated rental prices according to the IFRS divided by gross leaseable sqm. Does not include revenues from Patio Olmos.

Lease expirations(1)(2)

Includes information as of June 30, 2020 due to the fact that, during the first quarter of the 2021 fiscal period ended on September 30, 2020, a large part of the shopping centers were unable to open to the public or with activity restricted by the sanitary measures provided by DNU 297/2020 and subsequent extensions, which made it impossible to renew expired rental contracts and/or to sign new contracts.

The following table sets forth the schedule of estimated lease expirations for our shopping malls for leases in effect as of June 30, 2020, assuming that none of our tenants exercises its option to renew or terminate its lease prior to expiration:

	As<br>of June 30, 2020
Agreements’<br>Expiration	Number<br>of agreements(1)	Sqm<br>to expire	Due<br>to expire (%)	Total<br>lease payments (in millions of ARS)(3)	Agreements<br>(%)
Vacant<br>Stores	113	22,684	6.8
Expired<br>in-force	246	53,600	16.1	486	18.4
As of June 30,<br>2021	424	68,355	20.5	763	28.9
As of June 30,<br>2022	383	48,719	14.6	589	22.3
As of June 30,<br>2023	278	38,916	11.7	418	15.8
As of June 30, 2024<br>and subsequent years	118	100,788	30.3	383	14.5
Total	1,562	333,062	100.0	2,639	100.0

(1)

Includes vacant stores as of June 30, 2020. A lease may be associated with one or more stores.

(2)

Does not reflect our ownership interest in each property.

(3)

The amount expresses the annual base rent as of June 30, 2020 of agreements due to expire.

Five largest tenants of the portfolio

The five largest tenants of the portfolio (in terms of sales) account for approximately 16.6% of their gross leasable area as of June 30, 2020 and represent approximately 9.8% of the annual basic rent for the fiscal year ending on that date.

The following table describes our portfolio’s five largest tenants:

Tenant	Type<br>of Business	Sales	Gross<br>Leaseable Area	Gross<br>Leaseable Area
		(%)	(sqm)	(%)
Zara	Clothes and<br>footwear	7.5	10,771	3.2
Falabella	Department<br>store	5.4	28,892	8.7
Nike	Clothes and<br>footwear	4.0	7,610	2.3
Fravega	Home<br>appliances	3.2	3,524	1.1
Mc<br>Donald’s	Restaurant	2.5	4,400	1.3
Total		22.5	55,197	16.6

New leases and renewals

The following table shows certain information about IRSA CP’s leases agreement as of June 30, 2020:

	Number<br>of agreements renewed	Annual<br>base rent (in millions of ARS)	Annual<br>admission rights (in millions of ARS)	Average<br>annual base rent<br><br><br><br><br><br>per<br>sqm (ARS)		Number<br>of non-renewed agreements(1)	Non-renewed<br>agreements(1) annual base rent<br>amount (in millions of ARS)
Type<br>of business				New<br>and renewed	Former<br>agreements
Clothing and<br>footwear	268	478	95	12,781	10,103	578	1,122
Restaurant	72	107	15	13,466	11,877	130	226
Miscellaneous(2)	56	112	26	6,741	25,798	147	318
Home	32	61	8	8,484	9,762	54	128
Services	28	47	4	8,636	10,927	12	59
Entertainment	11	19	0	1,224	1,455	14	73
Supermarket	1	5	0	1,222	2,950	1	9
Total	468	829	148	7,057	8,123	936	1,935

(1)

Includes vacant stores as of June 30, 2020. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

(2)

Miscellaneous includes anchor store.

Principal Terms of our Leases

Under the Civil and Commercial Code of Argentina, the term of our leases cannot exceed twenty years for the residential destination and fifty years for the other destinations.

Leasable space in our shopping malls is marketed through an exclusive arrangement with our wholly owned subsidiary and real estate broker Fibesa S.A., or “Fibesa.” We use a standard lease agreement for most tenants at our shopping malls, the terms and conditions of which are described below. However, our largest or “anchor” tenants generally negotiate better terms for their respective leases. No assurance can be given that lease terms will be as set forth in the standard lease agreement.

Rent amount specified in our leases generally is the higher of (i) a monthly Base Rent and (ii) a specified percentage of the tenant’s monthly gross sales in the store, which generally ranges between 3% and 12% of tenant’s gross sales. In addition, pursuant to the rent escalation clause in most of our leases, a tenant’s Base Rent generally increases between 18% and 28% on a semi-annually and cumulative basis from the thirteenth (13th) month of effectiveness of the lease. Although many of our lease agreements contain price adjustment provisions, these are not based on an official index nor do they reflect the inflation index. In the event of litigation, there can be no assurance that we will be able to enforce such clauses contained in our lease agreements. These terms and conditions have not been applied during a period when the shopping malls remained closed due to the Social, Preventive and Mandatory Isolation decreed by the government of Argentina as a result of the novel COVID-19 virus since IRSA CP decided to defer the billing and collection of the Base Rent until September 30, 2020, with some exceptions and IRSA CP alsos suspended collection of the collective promotion fund during the same period, prioritizing the long-term relationship with its tenants.

In addition to rent, we charge most of our tenants an admission right, which must be paid upon execution of the lease agreement and upon its renewal. The admission right is normally paid as a lump sum or in a small number of monthly installments. If the tenants pay this fee in installments, the tenants are responsible for paying the balance of any such unpaid amount if they terminate the lease prior to its expiration. In the event of unilateral termination and/or resolution for breach by the tenants, tenants will not be refunded their admission payment without our consent. We lease our stores, kiosks and spaces in our shopping malls through our wholly-owned subsidiary Fibesa. We charge our tenants a fee for the brokerage services, which usually amounts to approximately three months of the Base Rent plus the admission right.

We are responsible, except in the mall Distrito Arcos, for providing each unit within our shopping malls with electricity, a main telephone switchboard, central air conditioning and a connection to a general fire detection system. We also provide the food court tenants with sanitation and with gas systems connections. In Distrito Arcos, the connections are managed by the tenants. Each tenant is responsible for completing all necessary installations within its rental unit, in addition to paying direct related expenses, including electricity, water, gas, telephone and air conditioning. Tenants must also pay for a percentage of total expenses and general taxes related to common areas. We determine this percentage based on different factors. The common area expenses include, among others, administration, security, operations, maintenance, cleaning and taxes.

We carry out promotional and marketing activities to draw consumer traffic to our shopping malls. These activities are paid for with the tenants’ contributions to the Collective Promotion Fund, or “CPF,” which is administered by us. Tenants are required to contribute 15% of their rent (Base Rent plus Percentage Rent) to the CPF. We may increase the percentage tenants must contribute to the CPF with up to 25% of the original amount set forth in the corresponding lease agreement for the contributions to the CPF. We may also require tenants to make extraordinary contributions to the CPF to fund special promotional and marketing campaigns or to cover the costs of special promotional events that benefit all tenants. We may require tenants to make these extraordinary contributions up to four times a year provided that each extraordinary contribution may not exceed 25% of the tenant’s preceding monthly lease payment.

Each tenant leases its rental unit as a shell without any fixtures and is responsible for the interior design of its rental unit. Any modifications and additions to the rental units must be pre-approved by us. We have the option to charge the tenant for all costs incurred in remodeling the rental units and for removing any additions made to the rental unit when the lease expires. Furthermore, tenants are responsible for obtaining adequate insurance for their rental units, which must cover, among other things, damage caused by fire, glass breakage, theft, flood, civil liability and workers’ compensation.

Insurance

We and our subsidiary IRSA CP carry all-risk insurance for the shopping malls and other buildings covering property damage caused by fire, terrorist acts, explosion, gas leak, hail, storms and wind, earthquakes, vandalism, theft and business interruption. In addition, we carry liability insurance covering any potential damage to third parties or property caused by the conduct of our business throughout Argentina. We and our subsidiary IRSA CP are in compliance with all legal requirements related to mandatory insurance, including insurance required by the Occupational Risk Law (Ley de Riesgos del Trabajo), life insurance required under collective bargaining agreements and other insurance required by laws and executive orders. IRSA CP’s and our history of damages is limited to one single claim resulting from a fire in Alto Avellaneda Shopping in March 2006, which loss was substantially recovered from our insurers. These insurance policies contain specifications, limits and deductibles which we believe are adequate to the risks to which we are exposed in our daily operations. We and our subsidiary IRSA CP also maintain liability insurance covering the liability of our directors and corporate officers.

Control Systems

IRSA CP has computer systems equipped to monitor tenants’ sales (except stands) in all of its shopping malls. IRSA CP also conduct regular audits of our tenants’ accounting sales records in all of our shopping malls. Almost every store in its shopping malls has a point of sale that is linked to our main server. IRSA CP uses the information generated from the computer monitoring system to prepare statistical data regarding, among other things, total sales, average sales and peak sale hours for marketing purposes and as a reference for the internal audit. Most of its shopping mall lease agreements require the tenant to have its point of sale system linked to our server. During this fiscal year, we signed an agreement to renew our payment terminals with contactless technology (Clover).

Competition

We are the largest owner and operator of shopping malls, offices and other commercial properties in Argentina in terms of gross leasable area and number of rental properties. Given that most of our shopping malls are located in highly populated areas, there are competing shopping malls within, or in close proximity to, our targeted areas, as well as stores located on avenues or streets. The number of shopping malls in a particular area could have a material effect on our ability to lease space in our shopping malls and on the amount of rent that we are able to charge. We believe that due to the limited availability of large plots of land and zoning restrictions in the City of Buenos Aires, it is difficult for other companies to compete with us in areas through the development of new shopping malls. Our principal competitor is Cencosud S.A. which owns and operates Unicenter Shopping and the Jumbo hypermarket chain, among others.

The following table shows certain information concerning the most significant owners and operators of shopping malls in Argentina, as of June 30, 2020.

Entity	Shopping<br>malls	Location	GLA	Marketshare(1)
				(%)
IRSA<br>CP	Alto<br>Palermo	City of Buenos<br>Aires	18,655	1.44
Abasto<br>Shopping(2)		City of Buenos<br>Aires	36,761	2.83
Alto<br>Avellaneda		Province of Buenos<br>Aires	38,801	2.99
Alcorta<br>Shopping		City of Buenos<br>Aires	15,725	1.21
Patio<br>Bullrich		City of Buenos<br>Aires	11,396	0.88
Dot Baires<br>Shopping(4)		City of Buenos<br>Aires	48,805	3.75
Soleil		Province of Buenos<br>Aires	15,156	1.17
Distrito<br>Arcos		City of Buenos<br>Aires	14,335	1.10
Alto<br>Noa(2)		City of<br>Salta	19,313	1.49
Alto<br>Rosario(3)		City of<br>Rosario	33,682	2.59
Mendoza<br>Plaza		City of<br>Mendoza	43,123	3.32
Córdoba<br>Shopping		City of<br>Córdoba	15,361	1.18
La Ribera<br>Shopping		City of Santa<br>Fe	10,530	0.81
Alto<br>Comahue		City of<br>Neuquén	11,702	0.90
Subtotal			333,345	25.64
Cencosud<br>S.A.			277,203	21.33
Other<br>operators			689,304	53.05
Total			1,299,852	100.00

(1)

Corresponding to gross leasable area in respect of total gross leaseable area. Market share is calculated dividing sqm over total sqm.

(2)

Does not include Museo de los Niños (3,732 sqm).

(3)

Does not include Museo de los Niños (1,261 sqm).

(4)

Our interest in PAMSA is 80%:

Source: Argentine Chamber of Shopping Centers.

Seasonality

IRSA CP’s business is directly related with seasonality, affecting the level of our tenants’ sales. During summer holidays (January and February) our tenants’ sales reach their minimum level, whereas during winter holidays (July) and in December (Christmas) they reach their maximum level. Clothing stores generally change their collections in spring and autumn, positively affecting our shopping malls’ sales. Sales at discount prices at the end of each season are also one of the main sources of impact on our business.

Offices

According to Colliers International, as of September 30, 2020, the A+ and A office inventory is 1,827,742 sqm. The vacancy rate was steady at approximately 14.2% during the third quarter of 2020. These values indicate that the market is healthy in terms of its operations, allowing an optimum level of supply with robust values.

Compared to the previous quarter, the Premium Offices prices increased in the order of USD 25.5 per square meter compared to the previous quarter. The prices for A+ properties were USD 30.0 per square meter for the second quarter of 2020. In this context, Catalinas presents as the zone with higher prices per square meter, reaching an average of USD 29.2. Likewise, the industry reported a USD/m2 1.2 decreased in rental prices for A+ properties compared to the second quarter of 2020.

Management of office buildings

We generally act as the manager of the office properties in which we own an interest. We typically own the entire building or a substantial number of floors in the building. The buildings in which we own floors are generally managed pursuant to the terms of a condominium agreement that typically provides for control by a simple majority of the interests based on owned area. As building manager, we handle services such as security, maintenance and housekeeping, which are generally outsourced. The cost of the services is passed through to, and paid for by, the tenants, except in the case of our units that have not been leased, if any, for which we bear the cost. We market our leasable area through commissioned brokers or directly by us.

Leases

We usually lease our offices by using contracts with an average term between three to ten years. Contracts for the rental of office buildings and other commercial properties are generally stated in U.S. dollars. Rental rates for renewed periods are negotiated at market value.

Properties

The following table sets forth certain information regarding IRSA CP’s office buildings, as of September 30, 2020:

	Date<br>of acquisition/<br><br><br><br><br><br>development	GLA<br>(sqm)(1)	Occupancy<br>rate(2)	Ownership<br>interest	Total<br>rental income as of September 30, 2020
			(%)	(%)	(in<br>thousands of ARS)
Offices
AAA<br>& A buildings
República<br>Building	Dec-14	19,885	86.9	100	115,706
Bankboston<br>Tower(5)	Dec-14	7,383	85.6	100	71,721
Intercontinental<br>Plaza(3)	Dec-14	2,979	100.0	100	31,654
Bouchard<br>710(6)	Dec-14	-	-	100	31,066
Dot<br>Building	Nov-06	11,242	84.9	80	55,714
Zetta	Jun-19	32,173	97.5	80	188,072
Total<br>AAA & A<br>buildings		73,662	91.6		493,933
B<br>buildings
Philips	Jun-17	8,017	85.8	100	8,574
Suipacha<br>652/64	Dec-14	11,465	31.2	100	27,684
Total<br>B<br>buildings		19,482	53.6		36,258
Total<br>Offices		93,144	83.7		530,191
Other<br>rental properties(4)					10,150
Total<br>Offices and<br>Others					540,341

(1)

Corresponds to the gross leasable area of each property as of September 30, 2020. Excludes common areas and parking spaces.

(2)

Calculated by dividing occupied sqm by leasable area as of September 30, 2020.

(3)

We own 13.2% of the building that has 22,535 sqm of gross leasable area.

(4)

Includes rental income from all those properties that are not buildings intended for rent, but that are partially or fully rented (Philips Deposit, Anchorena 665 and San Martin Plot)

(5)

On November 5, 2020, our subsidiary IRSA CP sold four floors and fifteen parking spaces and on November 12, 2020, it sold three floors and fifteen parking spaces. For more information, see “Recent Developments – Boston Tower Floor’s sale.

(6)

On July 30, 2020, IRSA CP sold the entire building. For more information see: “Recent Developments – Bouchard 710 Building sale”.

Occupancy rate

The following table shows our offices occupancy percentage(1) as of the end of the fiscal year 2020 and three month period ended September 30, 2020, compared to the preceding fiscal year and period:

	Occupancy<br>rate (1)
	As<br>of September 30,		As<br>of June 30,
	2020	2019	2020	2019	2018
			(%)
Offices:
República<br>Building	86.9	92.6	86.9	95.2	98.4
Bankboston Tower<br>(2)	85.6	93.5	96.4	93.5	85.6
Intercontinental<br>Plaza	100.0	100.0	100.0	100.0	100.0
Bouchard<br>710(3)	—	100.0	92.5	100.0	100.0
Suipacha<br>652/64	31.2	31.2	31.2	44.6	86.2
DOT<br>Building	84.9	100.0	84.9	100.0	100.0
Philips<br>Building	85.8	67.6	82.7	45.7	69.8
Zetta<br>Building	97.5	97.5	97.5	97.5	—
Total	83.7	88.1	86.1	88.3	92.3

(1)

Leased sqm pursuant to lease agreements in effect as of June 30, 2020, 2019 and 2018 over gross leasable area of offices for the same fiscal years.

(2)

(3)

On July 30, 2020, our subsidiary IRSA CP sold the entire building. For more information see: “Recent Developments – Bouchard 710 Building sale”.

Annual average income per surface area as of June 30, 2020, 2019 and 2018(1):

	Income<br>per square meter(1)
	As<br>of September 30,		As<br>of June 30,
	2020	2019	2020	2019	2018
	(ARS/sqm)
República<br>Building	6,692	6,354	26,992	25,260	17,650
Bankboston<br>Tower(2)	11,354	6,434	24,353	25,914	18,522
Intercontinental<br>Plaza	10,626	2,127	14,607	16,578	18,438
Bouchard<br>710(3)	—	6,769	28,823	26,375	21,985
Suipacha<br>652/64	2,398	3,741	11,740	24,038	9,341
Dot<br>Building	5,840	6,169	26,221	21,522	15,542
Philips<br>Building	4,026	2,799	12,044	27,766	7,738
Zetta<br>Building	5,998	8,270	26,114	17,144	—

(1)

Calculated by dividing annual rental income by the gross leasable area of offices based on our interest in each building as of June 30 for each fiscal period.

(2)

On November 5, 2020, our subsidiary IRSA CP sold one four floors and fifteen parking spaces and on November 12, 2020, it sold three floors and fifteen parking spaces. For more information, see “Recent Developments – Boston Tower Floor’s sale.

(3)

On July 30, 2020, our subsidiary IRSA CP sold the entire building. For more information see: “Recent Developments - Bouchard 710 Building sale”

New agreements and renewals

Includes information as of June 30, 2020 due to the fact that, during the first quarter of the 2021 fiscal period ended on September 30, 2020, a large part of the offices were unable to open to the public or with activity restricted by the sanitary measures provided by DNU 297/2020 and subsequent extensions, which made it impossible to renew expired rental contracts and / or to sign new contracts.

The following table sets forth certain Information on lease agreements as of June 30, 2020:

Building	Number<br>of lease agreements(1)(5)	Annual<br>rental price (In million of ARS) (2)	Rental<br>price per new and renewed sqm(3)	Rental<br>price per previous sqm (ARS)(3)	Number<br>of lease agreements not renewed	Lease<br>agreements not renewed Annual rental price (In million of ARS<br>)(4)
Bouchard<br>710(6)	—	—	—	—	1	14
Bankboston<br>Tower(7)	2	34	1,891	1,933	—	—
Republica<br>Building	3	133	1,703	1,777	2	25
DOT<br>Building	1	17	882	851	—	—
Philips<br>Building	3	35	896	—	—	—
Suipacha<br>664	1	25	1,046	1,046	—	—
Total<br>Offices	10	244	1,369	1,206	3	39

(1)

Includes new and renewed lease agreements executed in FY 2019.

(2)

Lease agreements in U.S. dollars converted to Pesos at the exchange rate prevailing in the first effective month of the agreement, multiplied by 12 months.

(3)

Monthly value.

(4)

Lease agreements in U.S. dollars converted to Pesos at the exchange rate prevailing in the last effective month of the agreement, multiplied by 12 months.

(5)

It does not include lease agreements over parking spaces, antennas or terrace area.

(6)

On July 30, 2020, our subsidiary IRSA CP sold the entire building. For more information see: “Recent Developments – Bouchard 710 Building sale”

(7)

On July 15, 2020, our subsidiary IRSA CP sold one floor and five parking spaces and on August 26, 2020, our subsidiary IRSA CP sold five floors and twenty five parking spaces, on November 5, 2020, it sold four floor and fifteen parking spaces and on November 12, 2020, it sold four floors and fifteen parking spaces. For more information, see “Recent Developments – Boston Tower Floor’s sale - Signature of a Purchase ticket regarding Boston Tower floor with possession”.

The following table sets forth the schedule of estimated lease expirations for our offices and other properties for leases in effect as of June 30, 2020. This data is presented assuming that none of our tenants exercises its option to renew or terminate its lease prior to expiration (most leases have renewal clauses):

Expiration<br>year	Number<br>of leases due to expire(1)	Sqm<br>of leases due to expire (sqm)(3)	Square<br>meter of leases due to expire (%)	Annual<br>rental income amount of leases due to expire (in million of<br>ARS)(2)	Annual<br>rental income amount of leases to expire (%)
As of September 30,<br>2020	4	9,454	13	57	3
As of June 30,<br>2021	22	24,983	23	679	33
As of June 30, 2022<br>and thereafter	33	65,149	64	1,345	65
Total	59	99,586	100	2,081	100

(1)

Includes offices with leases that have not been renewed as of June 30, 2020.

(2)

It does not include sqm used by IRSA CP.

(3)

It does not include sqm or revenues from parking spaces.

Hotels

According to the Hotel Vacancy Survey (EOH) prepared by INDEC, at September 2020, overnight stays at hotel and parahotel establishments were estimated at 140 thousand, 96.3% shorter than the same month the previous year. Overnight stays by resident and nonresident travelers decreased by 95.4% and 99.4%, respectively. Total travelers who stayed at hotels during June were 47 thousand, a 97.2% decrease compared to the same month the previous year. The number of resident and nonresident travelers decreased by 96.5% and 99.7%, respectively. The Room Occupancy Rate in September was 80.9%, showing a sharp decrease compared to the same month the previous year. Moreover, the Bed Occupancy Rate for the same period was 95.1%, which represents a sharp decrease compared to September 2019.

Hotels segment has also been affected by the social, preventive, and mandatory isolation decreed by the Argentine government as of March 20, 2020, together with the closure of borders and the arrival of tourism. The Libertador hotel in the city of Buenos Aires and Llao Llao hotal in the province of Río Negro have been temporarily closed since that date and there is no certainty about their reopening and the reactivation of the sector; in turn, the Intercontinental Hotel in the City of Buenos Aires is working only under a contingency and emergency plan.

At the moment, there are no certainties about the opening of the social, preventive and mandatory isolation that motivates the reactivation of the sector. The perspectives of slow normalization and reopening place us at the end of the year or the beginning of next year.

Future confirmations on the relaxation of social isolation, the opening of airports for national and international flights, land borders and normal interprovincial traffic will contribute to the slow normalization. With the reopening, an initial occupancy is expected, oscillating between 5% and 15%, growing gradually.

The crisis in the sector has motivated palliative measures by national and provincial authorities, necessary measures that partially contribute to sustainability. In a complementary way, the management of each one of the hotels makes its best efforts to adapt operationally to the context.

As of September 2020, we kept our 76.34% interest in Intercontinental hotel, 100% interest in Libertador hotel and 50.00% interest in Llao Llao.

The following chart shows certain information regarding our luxury hotels:

Hotels	Date<br>of Acquisition	IRSA’s<br>Interest	Number<br>of rooms	Occupancy<br>(%)(1)	Average<br>Price per Room ARS(2)	As<br>of September 30,		Fiscal<br>Year Sales as of June 30
						2020	2019	2020	2019	2018
						(in<br>millions of ARS)
Intercontinental(3)	11/01/1997	76.34%	313	1.4	7,072	5	92	776	1,129	591
Libertador(4)	03/01/1998	100%	200	0	N/A	1	261	271	636	349
Llao<br>Llao(5)	06/01/1997	50.00%	205	0	N/A	0	348	1,129	1,413	753
Total			718	0.6	7,088	6	702	2,176	3,179	1,692

(1)

Accumulated average in the twelve-month period.

(2)

Accumulated average in the twelve-month period.

(3)

Through Nuevas Fronteras S.A.

(4)

Through Hoteles Argentinos S.A.U.

(5)

Through Llao Llao Resorts S.A.

Hotel Llao Llao, San Carlos de Bariloche, Province of Rio Negro

In June 1997 we acquired the Hotel Llao Llao from Llao Llao Holding S.A. Fifty percent is currently owned by the Sutton Group. The Hotel Llao Llao is located on the Llao Llao peninsula, 25 kilometers from the City of San Carlos de Bariloche, and it is one of the most important tourist hotels in Argentina. Surrounded by mountains and lakes, this hotel was designed and built by the famous architect Bustillo in a traditional alpine style and first opened in 1938. The hotel was renovated between 1990 and 1993 and has a total constructed surface area of 15,000 sqm and 158 original rooms. The hotel-resort also includes an 18-hole golf course, tennis courts, fitness facility, spa, game room and swimming pool. The hotel is a member of The Leading Hotels of the World, Ltd., a prestigious luxury hospitality organization representing 430 of the world’s finest hotels, resorts and spas. The Hotel Llao Llao is currently being managed by Compañía de Servicios Hoteleros S.A., operator, among others, of the Alvear Palace Hotel, a luxury hotel located in the Recoleta neighborhood of Buenos Aires. During 2007, the hotel was subject to an expansion and the number of suites in the hotel rose to 205 rooms.

Hotel Intercontinental, City of Buenos Aires

In November 1997, we acquired 76.34% of the Hotel Intercontinental. The Hotel Intercontinental is located in the downtown City of Buenos Aires neighborhood of Montserrat, near the Intercontinental Plaza office building. Intercontinental Hotels Corporation, a United States corporation, currently owns 23.66% of the Hotel Intercontinental. The hotel’s meeting facilities include eight meeting rooms, a convention center and a divisible 588 sqm ballroom. Other amenities include a restaurant, a business center, a sauna and a fitness facility with swimming pool. The hotel was completed in December 1994 and has 313 rooms.

Hotel Libertador, City of Buenos Aires

In March 1998 we acquired 100% of the Sheraton Libertador Hotel from Citicorp Equity Investment for an aggregate purchase price of USD 23 million. In March 1999, we sold a 20% interest in the Sheraton Libertador Hotel for USD 4.7 million to Hoteles Sheraton de Argentina.

During the fiscal year 2019, we acquired 20% of the shares of Hoteles Argentinos S.A.U. (“HASAU”), reaching 100% of the capital stock of HASAU and beginning to operate the hotel directly under the name “Libertador”. The hotel is located in downtown Buenos Aires. The hotel contains 193 rooms and 7 suites, eight meeting rooms, a restaurant, a business center, a spa and fitness facilities with a swimming pool.

Bariloche Plot, “El Rancho,” San Carlos de Bariloche, Province of Río Negro

On December 14, 2006, through our hotel operator subsidiary, Llao Llao Resorts S.A., we acquired a land covering 129,533 sqm of surface area in the City of San Carlos de Bariloche in the Province of Río Negro. The total price of the transaction was USD 7 million, of which USD 4.2 million were paid in cash and the balance of USD 2.8 million was financed by means of a mortgage to be paid in 36 monthly, equal and consecutive installments of USD 0.086 million each. The land is in the border of the Lago Gutiérrez, close to the Llao Llao Hotel in an outstanding natural environment and it has a large cottage covering 1,000 sqm of surface area designed by the architect Ezequiel Bustillo.

Sale and Development of Properties and Land Reserves

Residential Development Properties

The acquisition and development of residential apartment complexes and residential communities for sale is one of our core activities. Our development of residential apartment complexes consists of the new construction of high-rise towers or the conversion and renovation of existing structures such as factories or warehouses. In connection with our development of residential communities, we frequently acquire vacant land, develop infrastructure such as roads, utilities and common areas, and sell plots of land for construction of single-family homes. We may also develop or sell portions of land for others to develop complementary facilities such as shopping areas within residential developments.

In fiscal year ended June 30, 2020, revenues from the development and sale of properties from the Operations Center in Argentina in Argentina segment amounted to ARS 783 million, compared to ARS 210 million posted in the fiscal year ended June 30, 2019.

Construction and renovation works on our residential development properties are performed, under our supervision, by independent Argentine construction companies that are selected through a bidding process. We enter into turnkey contracts with the selected company for the construction of residential development properties pursuant to which the selected company agrees to build and deliver the development for a fixed price and at a fixed date. We are generally not responsible for any additional costs based upon the turnkey contract. All other aspects of the construction, including architectural design, are performed by third parties.

Another modality for the development of residential undertakings is the exchange of land for constructed sqm. In this way, we deliver undeveloped pieces of land and another firm is in charge of building the project. In this case, we receive finished sqm for commercialization, without taking part in the construction works.

The following table shows information about IRSACP’s land reserves as of September 30, 2020:

	Ownership<br>Interest (%)	Date<br>of acquisition	Land<br>Surface (sqm)	Buildable<br>surface (sqm)	GLA<br>(sqm)	Salable<br>Surface (sqm)	Book<br>Value (in millions of ARS)
RESIDENTIAL<br>- BARTER AGREEMENTS
CONIL - Güemes<br>836 – Mz. 99 & Güemes 902 – Mz. 95 &<br>Commercial stores - Buenos Aires(6)	100	Jul-96	—	—	—	1,461	70
Total<br>Intangibles (Residential)			—	—	—	1,461	70
LAND<br>RESERVES:
Catalinas - City of<br>Buenos Aires(4)(5)	100	May-10	3,648	58,100	28,051	—	—
Subtotal<br>offices			3,648	58,100	28,051	—	—
Total<br>under Development			3,648	58,100	28,051	—	—
UOM Luján -<br>Buenos Aires	100	May-08	1,160,000	464,000	—	—	1,326
San Martin Plot (Ex<br>Nobleza Piccardo) - Buenos Aires	50	May-11	159,996	500,000	—	—	3,797
La Plata - Greater<br>Buenos Aires	100	Mar-18	78,614	116,552	—	—	1,293
Caballito plot -<br>City of Buenos Aires	100	Jan-99	23,791	86,387	10,518	75,869	4,353
Subtotal<br>Mixed-uses			1,422,401	1,166,940	10,518	75,869	10,769
Coto Abasto air<br>space - City of Buenos Aires(2)	100	Sep-97	—	21,536	—	16,385	37
Córdoba<br>Shopping Adjoining plots - Córdoba(2)	100	Jun-15	8,000	13,500	—	2,160	36
Neuquén -<br>Residential plot - Neuquén(2)	100	Jun-99	13,000	18,000	—	18,000	86
Subtotal<br>residential			21,000	53,036	—	36,545	159
Polo Dot commercial<br>expansion – City of Buenos Aires	80	Nov-06	—	—	15,940	—	1,888
Paraná plot -<br>Entre Ríos(3)	100	Aug-10	10,022	5,000	5,000	—	—
Subtotal<br>retail			10,022	5,000	20,940	—	1,888
Polo Dot - Offices<br>2 & 3 - City of Buenos Aires	80	Nov-06	12,800	—	38,400	—	3,627
Intercontinental<br>Plaza II - City of Buenos Aires	100	Feb-98	6,135	—	19,598	—	1,484
Córdoba<br>Shopping adjoining plots - Córdoba(2)	100	Jun-15	2,800	5,000	5,000	—	27
Subtotal<br>offices			21,735	5,000	62,998	—	5,138
Total<br>future developments			1,475,158	1,229,976	94,456	112,414	17,954
Other<br>land reserves(1)			1,899	—	7,297	262	1,880
Total<br>land reserves			1,477,057	1,229,976	101,753	112,676	19,834

(1)

Includes Zelaya 3102-3103, Chanta IV, Anchorena 665, Condominios del Alto II, Ocampo parking spaces, DOT adjoining plot and Mendoza shopping adjoining plot.

(2)

These land reserves are classified as Trading Properties, therefore, their value is maintained at historical cost. The rest of the land reserves are classified as Investment Property, valued at market value.

(3)

Sign of the deeds pending subject to certain conditions.

(4)

The sale agreements for 86.93% of the property under development have been signed between IRSA and IRSA CP and the remaining units have been sold to Globant, also through an agreement. The deed of sale with both entities has not yet been signed. The aforementioned fair value corresponds only to the land.

(5)

On June 10, 2020, IRSA CP informed with an unrelated third party the assignment and transfer of the right to deed with delivery of possession of two floors of medium height of the tower under construction “200 Della Paolera” located in the Catalinas district of the Autonomous City of Buenos Aires for a total area of approximately 2,430 m2 and 16 parking units located in the building.

(6)

Classified as Intangible Assets, therefore, their value is kept at historical cost.

The following chart shows information about IRSA’s land reserves as of September 30, 2020:

	IRSA’s<br>Interest	Date<br>of acquisition	Land<br>surface (sqm)	Buildable<br>surface (sqm)	Saleable<br>surface (sqm)	Book<br>Value (ARS millions)
LAND<br>RESERVES
La Adela - Buenos<br>Aires(3)	100%	8/1/2014	9,868,500	3,951,227	—	1,887
Puerto Retiro - BA<br>City(1)	50%	5/18/1997	82,051	246,153	—	-
Solares Santa<br>María - BA City(3)	100%	7/10/1997	716,058	716,058	—	27,580
Subtotal<br>Mixed-uses			10,666,609	4,913,438	—	29,467
Caballito Block 35<br>-BA City(4)	100%	10/22/1998	9,879	57,192	30,064	424
Zetol –<br>Uruguay(4)	90%	6/1/2009	—	—	64,080	334
Vista al Muelle<br>– Uruguay(4)	90%	6/1/2009	—	—	60,360	285
Subtotal Residential			9,879	57,192	154,504	1,043
Total Future Developments			10,676,488	4,970,630	154,504	30,510
Another Land Reserves(2)(3)(4)			5,249,941	—	4,713	618
Total Land Reserves			15,926,429	4,970,630	159,217	31,128

(1)

This landplot is under judicial litigation and it is fully allowanced.

(2)

Includes Pilar R8 Km 53, Pontevedra, Mariano Acosta, Merlo and San Luis plot, and Llao Llao plot.

(3)

These properties (La Adela, Solares Santa María, Pilar R.8 Km 53, Pontevedra, Mariano Acosta, Merlo and San Luis) are valuated as Fair Value.

(4)

These properties (Caballito Block 35, Zetol, Vista al Muelle and Llao Llao plot) are valuated as Cost adjusted for inflation.

Residential Properties (available for sale)

In the residential market, we acquire undeveloped properties strategically located in densely populated areas of the City of Buenos Aires, particularly properties located near shopping malls and hypermarkets or those to be constructed. We then develop multi-building high-rise complexes targeting the middle- and high- income market. These are equipped with modern comforts and services, such as open “green areas,” swimming pools, sports and recreation facilities and 24-hour security.

Condominios del Alto II – City of Rosario, Province of Santa Fe (IRSA CP)

The Condominios del Alto II project will be composed of two opposite building blocks, commercially divided into 10 sub-blocks. The project consists of a total of 189 apartments distributed in 6 stories and 195 parking spaces located in two basements. The amenities include a swimming pool with solarium, a multiple use room, sauna, a gym with dressrooms and a laundry. As of the date of this Form 6-K, the works in parcel H have been completed and all the units subject to the barter have been received, with six parking spaces available for sale.

Horizons, Vicente López, Olivos, Province of Buenos Aires.

The IRSA-CYRELA Project, developed over two adjacent blocks, was launched in March 2008 under the name Horizons. Horizons is one of the most significant developments in Greater Buenos Aires, featuring a new concept in residential complexes given its emphasis on the use of common spaces. This project includes two complexes with a total of six buildings: one complex faces the river and consists of three 14-floor buildings, the “Río” complex, and the other one, facing Libertador Avenue, consists of three 17-floor buildings, it is known as the “Parque” complex, thus totaling 59,000 sqm built of saleable area distributed in 467 units (excluding the units to be delivered as consideration for the purchase of the lands). Horizons is a unique and style-innovating residential complex offering 32 amenities, including a meeting room, work zone, heated swimming pools, mansion with spa, sauna, gym, children room, teen room, thematically landscaped areas, and aerobic trail. The showroom was opened to the public in March 2008 with great success. As of June 30, 2020, all the units were sold and the stock available for sale consisted of 1 parking space and 19 storage spaces.

Pereiraola (Greenville), Hudson – Province of Buenos Aires

In April de 2010 we sold Pereiraola S.A., a company owner of certain lands adjacent to Abril Club de Campo that comprised 130 hectares, for USD 11.7 million. The purchaser would develop a project that includes the fractioning into lots, a condo-hotel, two polo fields, and apartment buildings. The delivery to the Company of 39,634 sqm of lots amounting to approximately USD 3 million was included in the sale price. As of September 30, 2020, 10 lots had been transferred and 46 remain to be traded.

Intangibles – Units to be received under barter agreements

Conil – Avellaneda, Province of Buenos Aires (IRSA CP)

These plots of land we own, through IRSA CP, face Alto Avellaneda shopping mall, totaling 2,398 sqm distributed in two opposite corners and, according to urban planning standards, around 6,000 sqm may be built. Its intended use, either through our own development or sale to a third party, is residential with the possibility of a retail space as well. In November 2014, a barter deed was executed to carry out a residential development, in consideration of which IRSA CP will receive 1,389 sqm of retail stores located on the ground floors of blocks 99 and 95 at Güemes 836 and Güemes 902, respectively. The barter was valued at USD 0.7 million. Considerations for block 95 and 99 were estipulated to be delivered in January 2018 and September 2018, respectively. In June 2018 an extension to the barter agreement was signed. In consideration for the delay and as compensation, IRSA CP will receive an additional apartment (55.5 sqm) and one parking lot (14 sqm).

Zetol S.A. and Vista al Muelle S.A. – District of Canelones – Uruguay

In the course of fiscal year 2009 we acquired a 100% ownership interest in Liveck S.A., a company organized under the laws of Uruguay. In June 2009, Liveck had acquired a 90% stake in the capital stock of Vista al Muelle S.A. and Zetol S.A., two companies incorporated under the laws of Uruguay, for USD 7.8 million. The remaining 10% ownership interest in both companies is in the hands of Banzey S.A. These companies have undeveloped lands in Canelones, Uruguay, close to the capital city of Uruguay, Montevideo.

We intend to develop in these 13 plots, with a construction capacity of 182,000 sqm, an urban project that consists of the development and comercialization of 1,860 apartments. Such project has the “urban feasibility” status for the construction of approximately 200,000 sqm for a term of 10 years, which was granted by the Mayor’s Office of the Canelones department and by its Local Legislature. Zetol S.A. and Vista al Muelle S.A. agreed to carry out the infrastructure works for USD 8 million as well as minimum amount of sqm of properties. The satisfaction of this commitment under the terms and conditions agreed upon will grant an additional 10-year effective term to the urban feasibility status.

The total purchase price for Zetol S.A. was USD 7 million; of which USD 2 million were paid. Sellers may opt to receive the balance in cash or through the delivery of units in the buildings to be constructed in the land owned by Zetol S.A. equivalent to 12% of the total marketable meters to be constructed.

Besides, Vista al Muelle S.A. owned since September 2008 a plot of land purchased for USD 0.83 million. Then, in February 2010, plots of land were acquired for USD 1 million. In December 2010, Vista al Muelle S.A. executed the title deed of other plots for a total amount of USD 2.66 million, of which USD 0.3 million were paid. The balance will be repaid by delivering 2,334 sqm of units and/or retail stores to be constructed or in cash.

On June 30, 2009, the Company sold a 50% stake in Liveck S.A. to Cyrela Brazil Realty S.A. for USD 1.3 million. On December 17, 2010, together with Cyrela Brazil Realty S.A. we executed a stock purchase agreement pursuant to which we repurchased from Cyrela Brazil Realty S.A. a 50% shareholding in Liveck S.A. for USD 2.7 million. Accordingly, as of June 30, 2016, our stake, through Tyrus, in Liveck is 100%.

As a result of the plot barter agreements executed in due time between the IMC, Zetol S.A. and Vista al Muelle S.A. in March 2014, the parcel redistribution dealing was concluded. This milestone, as set forth in the amendment to the Master Agreement executed in 2013, initiates the 10-year term for the investment in infrastructure and construction of the buildings mentioned above. Construction capacity of the 13 plots is 182,000 sqm.

On November 15, 2018, the translation deed of sale of the first plot where the first Tower of Departments, Villas and single and double parking spaces is currently being built has been signed, the total exchange price was USD 7,298,705, equivalent to 16% of all of the marketable built meters in the first Tower. 12% of it has been used to cancel part of the price balance maintained to date with the sellers of the plots acquired by Zetol S.A in June 2009. The estimated delivery date of the units is January 2022.

Canteras Natal Crespo, La Calera – Province of Córdoba

On June 26, 2013, we sold 100% of our interest in Canteras Natal Crespo S.A. representing 50% of its capital stock, to Euromayor S.A. de Inversiones for USD 4,215,000 according to the following payment schedule: USD 3,815,000 in cash and USD 400,000 through the transfer of almost 40,000 sqm for business purposes within the project to be developed in the site known as Laguna Azul. Delivery of the non-monetary consideration, which consist in 30,000 sqm, is pending. In December 2019, an agreement was reached with the counterpart that allowed the resale of the non-monetary consideration to an unrelated third party for a total value of USD 450,000.

Projects under Development

Alto Palermo Expansion (IRSA CP)

We keep working on the expansion of Alto Palermo shopping mall, the shopping mall with the highest sales per square meter in our portfolio, that will add a gross leasable area of approximately 3,900 sqm and will consist in moving the food court to a third level by using the area of an adjacent building acquired in 2015. Work progress as of June 30 2020 was 64% and construction works are expected to be finished by June 2021.

200 Della Paolera - Catalinas building (IRSA CP)

The building under construction will have 35,000 sqm of GLA consisting of 30 office floors and 316 parking spaces and will be located in the “Catalinas” area in the City of Buenos Aires, one of the most sought-after spots for Premium office development in Argentina. The Company owns 30,832 sqm consisting of 26 floors and 272 parking spaces in the building. As of September 30, 2020, work progress was 98%.

Mixed uses

Ex UOM – Luján, Province of Buenos Aires (IRSA CP)

This 116-hectare plot of land is located in the 62 Km of the West Highway, in the intersection with Route 5 and was originally purchased by IRSA from Birafriends S.A. for USD 3 million on May 31, 2008. In May 2012, the Company acquired the property through a purchase and sale agreement entered into between related parties, thus becoming the current owner. Our intention is to carry out a mixed-use project, taking advantage of the environment consolidation and the strategic location of the plot. At present, dealings are being carried out so as to change the zoning parameters, thus enabling the consummation of the project.

Ex Nobleza Piccardo Plant – San Martín, Province of Buenos Aires (IRSA CP)

This plot of land is owned by Quality Invest. On May 31, 2011, Quality Invest S.A. and Nobleza Picardo S.A.I.C. y F. (Nobleza) executed the title deed for the purchase of a plot of land extending over 160,000 sqm located in the District of San Martín, Province of Buenos Aires, currently intended for industrial purposes and suitable in terms of characteristics and scales for mixed-use developments.

The Master Plan, by which it is projected to develop a large-scale integral urbanization (residential, commercial, etc.), which includes the construction of approximately 540,000 m2, was endorsed by the Municipality of San Martin through Decree 1589/19 and registered before the General Directorate of Urbanism and Directorate of Urban Planning of the Municipality. Likewise, the subdivision plan in accordance with the urban indicators was presented to the Directorate of Cadastre of the Province of Bs. As.

Additionally, during this fiscal year, the pre-feasibility requirements began to be processed with public bodies. The one corresponding to the Hydraulic Directorate of the Province is in the process of approval, and in the next fiscal year, we will begin the rest of the presentations before the service companies, to obtain the pre-feasibilities of electric power, gas, water and overturning. of effluents.

Córdoba Shopping Mall Project (IRSA CP)

The Company owns a few plots adjacent to Córdoba Shopping Mall with a construction capacity of approximately 17,300 sqm in the center of the City of Córdoba.

In May 2016, a preliminary barter agreement was signed for 13,500 sqm out of the total construction capacity, subject to certain conditions, for a term of one year, at the end of which the deed will be signed. It will be a mixed residential and office project and, as part of the consideration, the Company will receive 2,160 sqm in apartments, parking spaces, shopping space, plus IRSA CP will assume the management of permits, unifications and subdivisions in 3 plots. The consideration will be delivered by May 2022 for Torre I and by July 2024 for Torre II. The value of the barter was USD 4 million.

La Plata Plot of land (IRSA CP)

On March 22, 2018 the Company has acquired, directly and indirectly, 100% of a plot of land of 78,614 sqm located in the city of La Plata, Province of Buenos Aires. The price of the transaction was USD 7.5 million, which have been fully paid.

The price of the operation was set at the amount of USD 7.5 million which have been fully paid. The purpose of this acquisition is the future development of a mixed-use project, given that the property has characteristics for a commercial development in a high potential district.

On January 21, 2019, Ordinance No. 11767, approved by the Honorable Deliberative Council of La Plata on December 26, 2018, has been promulgated. With said promulgation, the uses and indicators requested to develop a project of 116,553 sqm are formally confirmed by said Ordinance.

On September 24, 2020, the agreement that validates Ordinance No. 11767 was signed between the Mayor Dr. Julio Garro and the Director of the Real Estate Business, Dr. Daniel Elsztain, where the uses within the property are fixed, they may be: Shopping and entertainment center, Offices, Hotels, Housing, Medical Assistance Center and any other use authorized by the Planning Code of the City of La Plata.

The Master plan was consolidated with 16 lots, which are already in process to obtain the corresponding subdivision, by Geodesia in the Province of Buenos Aires.

Caballito Plot – City of Buenos Aires

On December 23, 2019, the Company transferred Parcel 1 of the land reserve located at Av. Avellaneda and Olegario Andrade 367 in the Caballito neighborhood of the City of Buenos Aires to an unrelated third party.

Plot 1 has an estimated surface of 3,221 sqm where a 10 floors residential building will be developed for a total area of 11,400 sqm, together with a commercial ground floor of 1,216 sqm and a basement of 138 parking spaces (“Building 1”).

The amount of the operation was set at USD 5.5 million to be paid in future functional units of Building 1, which represent the equivalent of 23.53% of the owned sqm, with a minimum guaranteed of 2,735 sqm composed for 1,215.62 commercial sqm, 1,519.68 residential sqm and a certain number of parking spaces that represent 22.50% of the own sqm with that destination and never less than 31 units.

The consideration is guaranteed by a mortgage on Plot 1 and Building 1 and the buyer has an Option to acquire Plot 2 of the same property until August 31, 2020 and Plots 3 and 4 until March 31, 2021, subject to certain suspensive conditions.

On July 20, 2020, IRSA CP was notified of the filing of a protection action (amparo) that is processed before the Administrative and Tax Litigation Jurisdiction of the City of Buenos Aires, where the plaintiff has requested the nullity of: 1) Administrative act that grants the certificate of environmental aptitude and 2) Administrative act that registered the plans. On October 1, 2020, the Chamber confirmed the precautionary measure. The Government of the City of Buenos Aires appealed the measure by filing an Appeal of Unconstitutionality. For more information, see “ITEM 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal or Arbitration Proceedings—Caballito” in our 2020 Form 20-F.

La Adela – Buenos Aires

During 2015 the company acquired the “La Adela” land reserve with an area of approximately 1,058 hectares, located in the District of Luján, Province of Buenos Aires, that was previously owned by Cresud for a total amount of ARS 210 million. Given its degree of development and closeness to the City of Buenos Aires, we intend to develop a new real estate project.

Puerto Retiro – City of Buenos Aires

At present, this 8.3 hectare plot of land, which is located in one of the most privileged areas of the city, near Catalinas, Puerto Madero and Retiro and is the only privately owned waterfront property facing directly to Río de la Plata, is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.

During fiscal year 1998, the Company initiated negotiations with the authorities of the Government of the City of Buenos Aires in order to obtain a rezoning permit for the property, allowing a change in the use of the property and setting forth new regulations for its development.

In turn, Tandanor filed a civil action against Puerto Retiro S.A. and the other defendants in the criminal case for violation of Section 174 (5) based on Section 173 (7) of the Criminal Code. Such action seeks -on the basis of the nullity of the decree that approved the bidding process involving the Dársena Norte property- the restitution of the property and a reimbursement in favor of Tandanor for all such amounts it has allegedly lost as a result of a suspected fraudulent transaction involving the sale of the property. Puerto Retiro has presented the allegation on the merit of the evidence, highlighting that the current shareholders of Puerto Retiro did not participate in any of the suspected acts in the criminal case since they acquired the shares for consideration and in good faith several years after the facts told in the process. Likewise, it was emphasized that the company Puerto Retiro is foreign - beyond its founders - to the bidding / privatization carried out for the sale of Tandanor shares. The pronouncement of the sentence is pending.

On September 7, 2018, the Oral Federal Criminal Court No. 5 rendered a decision. According to the sentence read by the President of the Court, Puerto Retiro won the preliminary objection of limitation filed in the civil action. However, in the criminal case, where Puerto Retiro is not a party, it was ordered, among other issues, the confiscation (decomiso) of the property owned by Puerto Retiro known as Planta I. The grounds of the Court’s judgement will be read on November 30, 2018. From that moment, all the parties might file the appeals.

On December 27, 2018, an action for annulment was filed against the judgment that ordered the confiscation of the property named “Planta 1”. On March 1, 2019 we were notified of the “in limine” rejection of the action for annulment filed. Subsequently, on March 8, 2019, a motion for restitution was filed against said resolution. On March 19, 2019, we were notified of the Court’s decision that rejected the replacement and declared the appeal filed in a subsidiary inadmissible. On March 22, 2019, a complaint was filed for appeal denied (before the Federal Criminal Cassation Chamber), the caul was granted, which is why the appeal filed is currently pending. In that sense, in April the appeal was maintained and subsequently, its foundations were expanded.

On 21 February 2020, an electronic document was received from the Federal Court of Criminal notifying the decision rejecting the appeals brought by Puerto Retiro against the verdict of the Federal Oral Court 5 that provided for the confiscation of the property Plant I and the distribution of costs in the order caused as regards the exception for the limitation of civil action brought by Puerto Retiro to which the Oral Court took place. Against that decision of appeal, Puerto Retiro was brought in a timely and form of Federal Extraordinary Appeal. In addition, Federal Criminal Cassation Chamber upheld the above limitation period by rejecting, to that effect, the appeal brought by the National State and Tandanor.

In the face of the evolution of the legal cases affecting it and based on the reports of its legal advisors, the Management of Puerto Retiro has decided to record a impairment equivalent to 100% of the book value of its investment property, without prejudice to the reversal of the same in the event that a favorable judgment is obtained in the actions brought.

Solares de Santa María – City of Buenos Aires

Solares de Santa María is a 70-hectare property facing the Río de la Plata in the south of Puerto Madero, 10 minutes from downtown Buenos Aires. We are owners of this property in which we intend to develop an entrepreneurship for mixed purposes, i.e. our development project involves residential complexes as well as offices, stores, hotels, sports and sailing clubs, services areas with schools, supermarkets and parking lots, and we would need to obtain all the necessary permits and authorizations

On October 30, 2012 a new agreement was executed with the Government of the City of Buenos Aires, replacing all prior agreements, and such has been submitted to the Legislature for its consideration. The agreement provided that if by February 28, 2014 the agreement was not approved would become invalidated.

During 2016, a new Agreement was executed with the Executive Branch of the City of Buenos Aires, including a new Bill of Law. The new Bill of Law was submitted to the Legislative Branch of the City of Buenos Aires for consideration and was approved by the relevant commissions, yet, during legislative year 2018 it was reserved and remained without legislative treatment. As a consequence, at the end of the 2018 legislative session, the lack of treatment triggered the automatically invalidity of the above mentioned and executed Agreement with the Executive Branch of the City of Buenos Aires, which include such Bill of Law.

As of the date of this Form 6-K, efforts are still being made both in the CABA with the Goverment as well as in the CABA Legislature in order that the project Law may be treated on the premises, for its treatment and subsequent legislative approval.

Residential

Coto Residential Project (IRSA CP)

The Company owns the right to construct above the premises of the Coto hypermarket that is close to Abasto Shopping in the heart of the City of Buenos Aires which we acquired in September 24, 1997. We estimate it has a construction capacity of 23,000 square feet (it also includes the right to receive certain parking units). The premises are located within the area between Agüero, Lavalle, Guardia Vieja and Gallo streets, in the Abasto neighborhood.

On October 25, 2019, IRSA CP transferred to a non-related third party the rights to develop a residential building (“Tower 1”) on Coto Supermarket airspace located in Abasto neighborhood in the City of Buenos Aires. Tower 1 will have 22 floors of 1 to 3 rooms apartments, totaling an area of 8,400 sqm.

The amount of the operation was set at USD 4.5 million: USD 1 million in cash and the balance in at least 35 apartment units, which represent the equivalent of 24.20% of the owned sqm, with a minimum guaranteed of 1,982 sqm.

In a 30 month-period since the signature, when certain conditions have been met, IRSA CP must transfer to the same unrelated third party the rights to build a second apartment building.

Neuquén Residential Plot– Neuquén, Province of Neuquén (IRSA CP)

Through Shopping Neuquén S.A., we own a plot of 13,000 sqm with construction capacity of 18,000 sqm of residential properties in an area with significant growth potential. This area is located close to the shopping mall Alto Comahue, the hypermarket currently in operation and a hotel to be constructed.

Caballito Plot – City of Buenos Aires

On June 29, 2011, we and TGLT, a residential developer, entered into an agreement to barter for the development of a plot of land located at Méndez de Andes street in the neighborhood of Caballito in the City of Buenos AiresA neighborhood association named Asociación Civil y Vecinal SOS Caballito secured a preliminary injunction which suspended the works to be carried out by TGLT in the above-mentioned property. On April 2018 TGLT and us terminated the barter agreement and we recovered the land. In July 2018, the Supreme Court of Justice issued a favorable final decision allowing the construction of 57,192 sqm of apartments on the plot.

Offices

Polo Dot 2nd and 3rd Stages – City of Buenos Aires (IRSA CP)

These two parcels of 6,400 sqm with a construction capacity of 33,485 sqm each, are located adjoining to where the extension of Dot Baires Shopping is planned. In April 2018, both plots were unified into a single one of 12,800 sqm.

Intercontinental Plaza II Plot - City of Buenos Aires (IRSA CP)

In the heart of the neighborhood of Monserrat, just a few meters from the most trafficked avenue in the city and the financial center, is the Intercontinental Plaza complex consisting of an office tower and the exclusive Intercontinental Hotel. In the current plot of 6,135 sqm a second office tower of 19,600 sqm and 25 stories could be built to supplement the tower currently located in the intersection of Moreno and Tacuarí streets.

Other Land Reserves

Other Land Reserves – Pilar, Pontevedra, Mariano Acosta, Merlo, San Luis Plot, Llao Llao Plot and Casona Abril remaining surface

We grouped here those plots of land with a significant surface area the development of which is not feasible in the short term either due to their current urban and zoning parameters, their legal status or the lack of consolidation of their immediate environment. This group totals around 7 million sqm.

Isla Sirgadero

On September 3, 2015, the entire property of 10,083,270 sqm was sold to several companies for USD 3.9 million, payable in 16 quarterly installments, plus an installment in kind, land resulting from the final blueprint, equivalent to 10% of the surface area. Delivery of the non-monetary consideration, consisting in 1,083,327 sqm, is pending.

International

Lipstick Building, New York, United States

The Lipstick Building is a landmark building in the City of New York, located at Third Avenue and 53th Street in Midtown Manhattan, New York. It was designed by architects John Burgee and Philip Johnson (Glass House and Seagram Building, among other renowned works) and it is named after its elliptical shape and red façade. Its gross leaseable area is approximately 58,000 sqm and consists of 34 floors.

On August 7, 2020, as a consequence of negotiations conducted in the context of an increased lease price effective as of May 2020, Metropolitan signed an agreement with the owner of the Ground Lease to terminate the commercial relationship, leaving the administration of the building. For this reason, as of June 30, 2020, Metropolitan no longer recognizes the liability associated with the ground lease, as well as all the assets and liabilities associated with the building and the operation of the administration. For more information see “Recent Developments – Lipstick Building”.

Investment in Condor Hospitality Trust

We maintain our investment in the Condor Hospitality Trust Hotel REIT (NYSE: CDOR) mainly through our subsidiary Real Estate Investment Group VII (“REIG VII”), in which we hold a 100% interest. Condor is a REIT listed in NYSE focused on medium-class hotels located in various states of the United States of America, managed by various operators and franchises.

Condor’s investment strategy is to build a branded premium, select service hotels portfolio within the top 100 Metropolitan Statistical Areas (“MSA”) with a particular focus on the range of MSA 20 to 60. Since the beginning of the reconversion of the hotel portfolio in 2015, Condor has acquired 14 high quality select service hotels in its target markets for a total purchase price of approximately USD 277 million. In addition, during this time, it has sold 53 legacy assets for a total value of approximately USD 161 million.

On July 19, 2019, Condor signed an agreement and merger plan with a company not related to the group. As agreed, each Condor ordinary share, whose nominal value is USD 0.01 per share will be canceled before the merger and will become the right to receive a cash amount equivalent to USD 11.10 per ordinary share. Additionally, in accordance with the terms and conditions of the merger agreement, each Series E convertible share will be automatically canceled and its holders will become entitled to receive a cash amount equal to USD 10.00 per share. The closing of the acquisition, scheduled for March 23, 2020, did not occur.

On October 12, 2020, Condor executed an agreement with Nextponint Hospitality Trust and some of its affiliates (“NHT Parties”) to resolve and settle any and all claims between them related to the merger agreement mentioned hereinabove.

According to the agreement with NHT Parties shall make three payments to Condor in three instalments ending the last payment on December 30, 2020 and totalling USD 7.0 million.

As of the date of presentation of these financial statements, the Company has 2,197,023 common shares and 325,752 Series E shares.

Others

Our interest in Banco Hipotecario

As of September 30, 2020, we held a 29.91% interest in Banco Hipotecario. Established in 1886 by the argentine government and privatized in 1999, Banco Hipotecario has historically been Argentina’s leading mortgage lender, provider of mortgage-related insurance and mortgage loan services. All of its operations are located in Argentina where it operates a nationwide network of 63 branches in the 23 Argentine provinces and the City of Buenos Aires, and 12 additional sales offices throughout Argentina.

Banco Hipotecario is an inclusive commercial bank that provides universal banking services, offering a wide variety of banking products and activities, including a wide range of individual and corporate loans, deposits, credit and debit cards and related financial services to individuals, small-and medium-sized companies and large corporations. As of September 30, 2020, Banco Hipotecario ranked thirteenth in the Argentine financial system in terms of totals assets and twelfth in terms of loans. As of September 30, 2020, Banco Hipotecario’s shareholders’ equity was ARS 15,141.5 million, its consolidated assets were ARS 150,789.5 million, and its net income for the nine-month period ended September 30, 2020 was ARS 291.8 million. Since 1999, Banco Hipotecario’s shares have been listed on the Buenos Aires Stock Exchange in Argentina, and since 2006 it has had a Level I ADR program.

Banco Hipotecario continues its business strategy of diversifying its loan portfolio. As a result, non-mortgage loans were ARS 36,944.8 million as of September 30, 2020. Total non-mortgage loans granted by the bank to the non-financial private sector were ARS 36,939.7 million as of September 30, 2020. Non-performing loans represented 16.9% of its total portfolio as of September 30, 2020.

In recent years, Banco Hipotecario has diversified its funding base and has become one of the most frequent issuers of corporate debt in Argentina based on the percentage of its total funding, by developing presence in the domestic and international capital markets, and it has also increased its deposit base. Its financial indebtedness as a percentage of its total funding was 36.2% as of June 30, 2020.

Its subsidiaries include BACS Banco de Crédito y Securitización S.A., a bank specialized in investment banking, asset securitization and asset management; BACS Administradora de Activos S.A.S.G.F.C.I., a mutual investment fund management company; BHN Sociedad de Inversión S.A., which controls BHN Vida S.A., a life insurance company; and BHN Seguros Generales S.A., a property insurance company.

By virtue of communications “A” 6939 and “7035” of the BCRA, the distribution of dividends is suspended until December 31, 2020.

Other Assets

La Rural (Exhibition and Convention Center)

LRSA holds usufruct rights for the commercial operation of the emblematic Predio Ferial de Palermo (Palermo exhibition center) in the City of Buenos Aires. We own 35% of the equity of LRSA.

In July 2016, we acquired from FEG Entretenimientos S.A. 25% of the shares of EHSA, in which we already held 50% of the share. We also acquired a 1.25% interest in ENUSA from Mr. Marcelo Figoli. The aggregate acquisition price for such acquisitions was ARS 66.5 million. Immediately after this acquisition, we sold 5% of the shares of EHSA to Mr. Diego Finkelstein, who already owned a 25% equity interest. The sale amount was agreed at ARS 13.5 million. As a result, we now hold 70% of the shares of EHSA and Mr. Diego Finkelstein holds the remaining 30%.

EHSA holds, directly and indirectly, 100% of the shares of OASA and 95% of the shares of ENUSA. OASA holds 50% of the voting stock of LRSA and SRA holds the remaining 50%. In addition, OASA manages LRSA pursuant to agreements entered into with SRA that include the right to appoint the chairman of the board of LRSA—with deciding vote on certain key governance matters—and the chief executive of LRSA. ENUSA is mainly engaged in organizing entertainment events for trade fairs.

On August 4, 2017, a 15-year concession for the Exhibition and Convention Center of the City of Buenos Aires was executed by the joint venture La Rural S.A., OFC S.R.L., Ogden Argentina S.A. and Entretenimiento Universal S.A. - Union Transitoria, which was granted pursuant a public bidding process. The members of the joint venture hold the following interests: (a) LRSA 5%; (b) OFC SRL 20%; (c) OASA 55%; and (d) EUSA 20%.

The shareholders of LRSA are Sociedad Rural Argentina and OASA, each of which owns 50% equity interest. OASA and EUSA are controlled by EHSA. Consequently, we indirectly hold a 50.00% interest in the joint venture.

The Exhibition and Convention Center has a surface area of approximately 22,800 sqm and may accommodate approximately 5,000 attendees. It has a main exhibit hall and an ancillary hall, offices and meetings rooms, arranged in three underground levels that were designed to blend into the landscape extending from the School of Law of the University of Buenos Aires to Parque Thays.

Also, La Rural S.A. continues to work on the consolidation of the commercial development of the “Convention Center of Punta del Este”, through its equity participation in the company that holds the concession until 2041.

As a result of the measures adopted by Argentina’s national Government in response to the COVID-19 pandemic, La Rural, the Buenos Aires and Punta del Este Convention Centers have been closed since March 20, 2020, the date on which social, preventive, and mandatory isolation was decreed by the government of Argentina to combat the impact of the COVID-19. All the planned congresses are suspended, a large part of the fairs and conventions were postponed, while the shows scheduled at the DirecTV Arena were mostly canceled. The reopening date of these establishments is uncertain, as well as the future agenda of fairs, conventions and shows.

TGLT (real estate)

TGLT is a real estate company listed on the BYMA which is mainly engaged in residential development projects in Argentina and Uruguay. We hold a 30.2% interest in TGLT.

On August 1, 2017, we exercised our preemptive subscription and accretion rights and purchased 22,225,000 Subordinated Notes Convertible into Newly Issued Shares of TGLT for an aggregate amount of USD 22,225,000 (USD 1.00 par value) due 2027.

On August 8, 2019 has executed with TGLT certain contracts tending to collaborate in the process of financial restructuring of said company through its recapitalization. On December 11, 2019, and in compliance with the contracts signed with TGLT on August 8, 2019, IRSA CP made the exchange of all the Convertible Notes it had of TGLT. Likewise, it subscribed preferred shares making a contribution in kind of the 100% of the shares of the company La Maltería S.A., owner of the property known as Maltería Hudson, for a value of USD 24 million.

As a result of the aforementioned exchange and capitalization, IRSA Commercial Properties obtained 21,600,000 Class A preferred shares and 24,948,798 Class B preferred shares that are added to its holding of 3,003,990 ordinary shares.

On February 10, 2020, the TGLT Board of Directors determined the mandatory conversion of its Convertible Negotiable Obligations and preferred shares with immediate effect, this is how IRSA CP converted its Class A and B preferred shares of TGLT into ordinary shares of the company. As a consequence of this transaction, IRSA CP owns as of March 31, the amount of 279,502,813 ordinary shares of TGLT, representing 30.2% of its capital stock.

DirecTV Arena

DirecTV Arena is an indoor stadium with unique features designed to host top-level international events, including sporting events and concerts. The price set for the transaction was USD 4.2 million. Through these types of investments, our equity stake in LRSA and through the new Convention Center of the City of Buenos Aires, we continue to expand our exposure to conventions, sporting events and entertainment, which could generate synergies with our core shopping mall business.

As is publicly known, the DirecTV Arena stadium has been closed since March 20, the date on which social, preventive, and mandatory isolation was decreed in Argentina due to COVID-19. All the planned congresses are suspended, a large part of the fairs and conventions were postponed, while the shows scheduled at the DirecTV Arena were mostly canceled. The reopening date of these establishments is uncertain, as well as the future agenda of fairs, conventions and shows.

Pareto

On October 8, 2018, the company Pareto S.A. was incorporated, with the social purpose of design, programming and development of software, mobile and web applications.

As of September 30, 2020, IRSA CP’s participation in PARETO S.A. It was 69.96% and after the closing it increased its stake to 91.96%.

Pareto is a 100% digital customer loyalty system that promotes benefits and discounts in all our shopping mall.

Appa, Pareto’s app is a 100% digital customer loyalty system that promotes benefits and discounts across all our shopping malls. The app is also used to pay Parking lots giving customers the most convenient and fast check out available. The plan is to extend this frictionless payments method in gastronomic and apparel stores too.

Operations Center in Israel

On 25 September 2020, the District Court in Tel-Aviv-Yafo decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares and a custodian on the shares of DIC and Clal. For more information see “Recent Events – Operation Center in Argentina- Corporate Information: IDBD”.

Legal Framework

Regulation and Government Supervision

The laws and regulations governing the acquisition and transfer of real estate, as well as municipal zoning ordinances, apply to the development and operation of our properties. Currently, Argentine law does not specifically regulate shopping mall leases. Since our shopping mall leases generally diverge from ordinary commercial leases, we have developed contractual provisions which are tailored to the commercial relationship with our shopping mall tenants.

Leases

Argentine law imposes certain restrictions on property owners, including:

a minimum lease term of three years for all purposes, except in particular cases such as embassy, consulate or international organization venues, room with furniture for touristic purposes for less than three months, custody and bailment of goods, exhibition or offering of goods in fairs or in cases where due to the circumstances, the subject matter of the lease requires a shorter term.

Lease term limits

Under the Argentine Civil and Commercial Code lease terms may not exceed 20 years (for residential purpose) or fifty years (all other purposes). Generally, terms in our leases range from three to ten years.

Rescission rights

The Argentine Civil and Commercial Code provides that tenants may terminate leases with other destiny than home destiny, early after the first six months of the effective date. Such termination is subject to penalties which range from one to one and a half months of rent. If the tenant terminates the agreement during the first year of the lease, the penalty is one and a half month’s rent and if termination occurs after the first year of lease, the penalty is one month’s rent.

Other

The Argentine Civil and Commercial Code, among other rules, repealed the Urban Lease Law No. 23,091, which set forth a rule similar to the one described above, but established the obligation to give at least 60 days’ prior notice of exercise of the tenant’s unilateral termination right. There are no court rulings to date with respect to the new regulations related to: (i) the tenant’s unilateral termination right; or (ii) the possibility of agreeing a penalty different from that described above upon such termination.

While current policy discourages government regulation of leases, there can be no assurance that additional regulations will not be imposed in the future by Congress, including regulations similar to those previously in place. Furthermore, most of our leases provide that the tenants pay all costs and taxes related to the property in proportion to their respective leasable areas. In the event of a significant increase in such costs and taxes, the government may respond to political pressure to intervene by regulating this practice, thereby adversely affecting our rental income.

The Argentine Civil and Commercial Code enables landlords to pursue what is known as an “executory proceeding” if a tenant fails to pay rent when due. In executory proceedings, debtors have fewer defenses available to prevent foreclosure, making these proceedings substantially shorter, as the origin of the debt is not in question and the trial should focus on the formalities of the contract. The Argentine Civil and Commercial Code also permits special eviction proceedings, which are carried out in the same way as ordinary proceedings. The Argentine Civil and Commercial Code also requires that a residential tenant receive at least 10 days’ prior notice when a landlord demands payment of rent due if a breach prior to eviction occurs but does not impose any such requirement for other leases. However, court cases pending resolution and numerous procedural hurdles have resulted in significant delays to eviction proceedings in the commercial context, which generally last from six months to two years from the date of filing of the suit for eviction.

Development and use of the land

In the City of Buenos Aires, where the vast majority of our properties are located, we are subject to the following regulations:

Buenos Aires Urban Planning Code

The Buenos Aires Urban Planning Code (Código de Planeamiento Urbano de la Ciudad de Buenos Aires) generally restricts the density and use of property and regulates physical features of improvements to property, such as height, design, set back and overhang, consistent with the city’s urban planning policy. The Secretary of Urban Planning of the City of Buenos Aires (Secretaría de Planeamiento Urbano) is responsible for implementing and enforcing the Buenos Aires Urban Planning Code.

Buenos Aires Building Code

The Buenos Aires Building Code (Código de Edificación de la Ciudad de Buenos Aires) complements the Buenos Aires Urban Planning Code regulating the use and development of property in the City of Buenos Aires. The Building Code requires developers to obtain building permits, including submitting architectural plans for review of the Secretary of Work and Public Services, to monitor regulatory compliance.

Buenos Aires Authorizations and Licenses Code

The Authorizations and Licenses Code (Código de Habilitaciones de la Ciudad de Buenos Aires) sets forth the conditions under which authorizations or licenses to operate may be granted. The General Bureau of Authorizations and Licenses is responsible for implementing and enforcing the Authorizations and Licenses Code. Outside the city of Buenos Aires, our real estate activities are subject to similar municipal zoning, building, occupation and environmental regulations, which must also comply with national standards. In some jurisdictions we may also be subject to regulation of large commercial areas, which require approval of the location of these areas. We believe that all of our real estate properties are in material compliance with relevant laws, ordinances and regulations.

Sales and ownership

Real Estate Installment Sales Law

The Real Estate Installment Sales Law No. 14,005, as amended by Law No. 23,266 and Decree No. 2015/85, or “Real Estate Installment Sales Act,” imposes a series of requirements on contracts for the sale of subdivided real estate property including, for example, that the purchase price for a property is payable in installments. The law requires, among other things:

Registration of intent to sell the property in subdivided plots with the Real Estate Registry in the jurisdiction where the property is located. Registration is only permitted for unencumbered property. Mortgaged property may only be registered if creditors agree to divide the debt in accordance with subdivided plots. Creditors may be judicially compelled to agree to the partition.

Preliminary registration with the Real Estate Registry of the purchase instrument within 30 days after its execution.

Once the property is registered, the installment sale must be completed in a manner consistent with the Real Estate Installment Sales Act. If a dispute arises over the title between the purchaser and third party creditors of the seller, the installment purchaser who has duly registered the purchase instrument will have title to the plot. The purchaser can demand conveyance of title after at least 25% of the purchase price has been paid, although the seller may record a mortgage over the subject property to secure payment of the balance of the purchase price.

After paying of 25% of the purchase price or advancing of at least 50% of construction, the Real Estate Installment Sales Act prohibits termination of the sales contract for failure by the purchaser to pay the balance of the purchase price but gives the seller the right to enforce under any mortgage on the property.

Buildings Law

Buildings Law No. 19,724 (Ley de Pre horizontalidad) was repealed by the Argentine Civil and Commercial Code which provides that for purposes of execution of sales agreements for units under construction, the owner or developer must purchase insurance in favor of prospective purchasers against the risk of frustration of the development pursuant to the agreement for any reason. A breach of this obligation precludes the owner from exercising any right against the purchaser—such as demanding payment of any outstanding installments due—unless he/she fully complies with their obligations, but does not prevent the purchaser from exercising its rights against the seller.

Protection of the Disabled

The Law for Protection of the Disabled No. 22,431, enacted on March 16, 1981, as amended, provides that properties under construction or that are being remodeled must provide access for handicapped persons. Public spaces, entrances, hallways, elevators and common use facilities must be designed to provide mobility for impaired individuals. Buildings developed before enactment of the Protection for the Disabled Law must be reformatted to provide requisite access. Buildings that, because of their architectural design, may not be adapted to the use by the physically impaired, are exempted from these requirements.

Other regulations

Consumer relations, consumer or end user protection

Article 42 of the Argentine Constitution establishes that consumers and users of goods and services have a right to protection of health, safety and economic interests in a consumer relationship. Consumer Protection Law No. 24,240, as amended, regulates several issues concerning the protection of consumers and end users in a consumer relationship, in the arrangement and execution of contracts. The Consumer Protection Law, and the applicable sections of the Argentine Civil and Commercial Code are intended to regulate the constitutional right conferred under the Constitution on the weakest party to the consumer relationship and prevent potential abuses deriving from the stronger bargaining position of vendors of goods and services in a market economy where standard form contracts are widespread.

These laws deem void and unenforceable contractual provisions included in consumer contracts, that:

●

deprive obligations of their nature or limit liability for damages;

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imply a waiver or restriction of consumer rights and an extension of seller rights; and

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impose the shifting of the burden of proof from the consumer to the seller in order to protect the consumers.

In addition, the Consumer Protection Law imposes penalties ranging from warnings to the forfeiture of concession rights, privileges, tax regimes or special credits to which the sanctioned party may be entitled, including closing down establishments for a term of up to 30 days.

The Consumer Protection Law and the Argentine Civil and Commercial Code define consumers or end users as the individuals or legal entities that acquire or use goods or services, free of charge or for a price for their own final use or benefit or that of their family or social group. The protection under the laws afforded to consumers and end users encompasses the entire consumer relationship, from the offering of the product or service, to cover more than just those relationships established by means of a contract. Providers of goods and services include those who produce, import, distribute or commercialize goods or supply services to consumers or users (but excludes professionals whose services require a college degree or higher who are required to register in officially recognized professional organizations).

The Argentine Civil and Commercial Code defines a consumer agreement as one that is entered into between a consumer or end user and an individual or entity that manufactures goods or provides services to consumers for private, family or social use. The Consumer Protection Law imposes a range of penalties for violation of its provisions, from warnings to the forfeiture of concession rights, and establishes joint and several liability of each participant in the chain of distribution or whose trademark on the thing or service for damages caused to consumers derived from a defect or risk inherent in the thing or the provision of a service.

The Consumer Protection Law determines that the information contained in the offer addressed to undetermined prospective consumers binds the offeror during the period when the offer is made until its public revocation. Further, it determines that specifications included in advertisements, announcements, prospectuses, circulars or other media bind the offeror and are considered part of the contract entered into by the consumer.

Pursuant to Resolution No. 104/2005 issued by the Secretariat of Technical Coordination reporting to the Argentine Ministry of Treasury, Consumer Protection Law adopted Resolution No. 21/2004 issued by the Mercosur’s Common Market Group, persons engaged in internet commerce must disclose precisely the characteristics of the products and/or services offered and the sale terms. Failure to comply with the terms of the offer is deemed an unjustified denial to sell and may give rise to sanctions.

On September 17, 2014, the Argentine Congress enacted Law No. 26,993 called “Conflict Resolution in Consumer Relationships System” law that provides for creation of new administrative and judicial procedures. The law created a bicameral administrative system: the Preliminary Conciliation Service for Consumer Relations (Servicio de Conciliación Previa en las Relaciones de Consumo), or “COPREC,” and the Consumer Relations Audit, and a number of courts assigned to the resolution of conflicts between consumers and providers (Fuero Judicial Nacional de Consumo). The amount of any filed claim may not exceed a fixed amount equivalent to 55 adjustable minimum wages, as determined by the Ministry of Labor, Employment and Social Security. The claim must be filed with the administrative agency. If an agreement is not reached, the claimant may file the claim in court. While COPREC is currently in full force and effect, the court system (Fuero Judicial Nacional de Consumo) is still pending. Therefore, any current claim must be filed with existing courts. A considerable number of claims pending against us are expected to be settled within the framework of this system.

Antitrust Law

As our consolidated annual sales volume and our parent’s consolidated annual sales volume exceed ARS 200.0 million, we must give notice to the CNDC of any concentration provided for under the Antitrust Law.

Money laundering

For more information about money laundering see, “Item 10. Additional Information—E. Money Laundering” in our 2020 Form 20-F.

Environmental Law

Our activities are subject to several national, provincial and municipal environmental provisions.

Article 41 of the Argentine Constitution, as amended in 1994, provides that all Argentine inhabitants have the right to a healthy and balanced environment fit for human development and have the duty to preserve it. Environmental damage shall bring about primarily the obligation to restore it as provided by applicable law. The authorities shall control the protection of this right, the rational use of natural resources, the preservation of the natural and cultural heritage and of biodiversity and shall also provide for environmental information and education. The National Government shall establish minimum standards for environmental protection whereas Provincial and Municipal Governments shall fix specific standards and regulatory provisions.

On November 6, 2009, the Argentine Congress passed Law No. 25,675. Such law regulates the minimum standards for the achievement of a sustainable environment and the preservation and protection of biodiversity and fixes environmental policy goals.

Law No. 25,675 establishes the activities that will be subject to an environmental impact assessment procedure and certain requirements applicable thereto. In addition, such Law sets forth the duties and obligations that will be triggered by any damage to the environment and mainly provides for restoration of the environment to its former condition or, if that is not technically feasible, for payment of compensation in lieu thereof. Such Law also fosters environmental education and provides for certain minimum reporting obligations to be fulfilled by natural and legal entities.

In addition, the CNV Rules require the obligation to report to the CNV any events of any nature and fortuitous acts that seriously hinder or could potentially hinder performance of our activities, including any events that generate or may generate significant impacts on the environment, providing details on the consequences thereof.

The new Argentine Civil and Commercial Code has introduced as a novel feature the acknowledgement of collective rights, including the right to a healthy and balanced environment. Accordingly, the Argentine Civil and Commercial Code expressly sets forth that the law does not protect an abusive exercise of individual rights if such exercise could have an adverse impact on the environment and the rights with a collective impact in general.

Environmental matters

We consistently strive to act responsibly regarding protection of the environment in the management of our operating activities by preventing and minimizing the potential adverse environmental impacts of our activities. We have adopted an environmental impact policy, which is used as a reference for the realization of our investments. We are subject to environmental legislation under a series of laws, ordinances, norms, and national, provincial and municipal regulations of Argentina. Environmental obligations vary depending on the project site, the site’s environmental conditions, current and prior uses, and the activity proposed to be developed. Compliance with environmental laws may result in project delays or impose additional requirements that may result in substantial additional costs that may adversely affect our commercial activities. Before purchasing land or carrying out an investment on a plot of land, we carry out an environmental assessment of the parcel to identify possible environmental contingencies and analyze the possible environmental impact of the investment or the development to be carried out. Historically, our operations have not been negatively affected by the existence or potential existence of pollutants, nor by the failure to obtain environmental approvals or permits.

We intend to continue implementing plans that enhance our monitoring activities, in line with our commitment to and respect for the environment, our compliance obligations and with existing regulations, while seeking to optimize the use of resources.

Organizational Structure

The following table presents information relating to our ownership interest and the percentage of our consolidated total net revenues represented by our subsidiaries as of June 30, 2020:

Subsidiaries and associated companies

The following table includes a description of our subsidiaries and associated companies as of September 30, 2020:

Subsidiaries	Effective<br>Ownership and Voting Power Percentage	Property/Activity
Agro-Uranga<br>S.A	35.72%	Agro-Uranga S.A. is<br>an agricultural company which owns 2 farmlands (Las Playas and San<br>Nicolás) that have 8.299 hectares on the state of Santa Fe and<br>Córdoba.
Uranga Trading<br>S.A	35.72%	Uranga Trading S.A.<br>is committed to facilitate and optimally manage the trade of grains<br>of the highest quality, locally and internationally.
Brasilagro<br>Companhia Brasileira de Propiedades Agrícolas	33.55%(1)(3)	Brasilagro is<br>mainly involved in four areas: sugar cane, crops and cotton,<br>forestry activities, and livestock.
Agropecuaria Santa<br>Cruz S.A. (formerly known as Doneldon S.A.)	100%	Agropecuaria Santa<br>Cruz S.A. is involved in investments in entities organized in<br>Uruguay or abroad through the purchase and sale of bonds, shares,<br>debentures and any kind of securities and commercial paper under<br>any of the systems or forms created or to be created, and in the<br>management and administration of the capital stock it owns on<br>companies controlled by it.
Futuros y<br>Opciones.Com S.A.	50.10%	A leading<br>agricultural web site which provides information about markets and<br>services of economic and financial consulting through the Internet.<br>The company has begun to expand the range of commercial services<br>offered to the agricultural sector by developing direct sales of<br>supplies, crops brokerage services and cattle<br>operations.
Amauta Agro S.A.<br>(formerly known as FyO Trading S.A.)	50.48%(2)	Amauta Agro<br>S.A.’s purpose is to engage, in its own name or on behalf of<br>or associated with third parties, in activities related to the<br>production of agricultural products and raw materials, export and<br>import of agricultural products and national and international<br>purchases and sales of agricultural products and raw<br>materials.
FyO Acopio S.A.<br>(formerly known as Granos Olavarria S.A.)	50.48%(2)	FyO Acopio S.A. is<br>principally engaged to the warehousing of cereals and brokering of<br>grains.
Helmir<br>S.A.	100%	Helmir S.A. is<br>involved in investments in entities organized in Uruguay or abroad<br>through the purchase and sale of bonds, shares, debentures and any<br>kind of securities and commercial paper under any of the systems or<br>forms created or to be created, and to the management and<br>administration of the capital stock it owns on companies controlled<br>by it.
IRSA Inversiones y<br>Representaciones Sociedad Anónima	62.29%(1)(3)	It is a leading<br>Argentine company devoted to the development and management of real<br>estate.
IRSA Propiedades<br>Comerciales S.A.	2.62%	It is one of the<br>largest owners, developers and operators of shopping malls, offices<br>and other commercial properties in Argentina in terms of gross<br>leasable area and number of rental properties.
Sociedad<br>Anónima Carnes Pampeanas S.A.	100%(3)	Sociedad<br>Anónima Carnes Pampeanas, a company that owns a cold storage<br>plant in Santa Rosa, Province of La Pampa, with capacity to<br>slaughter and process approximately 9,500 cattle head per<br>month.

(1)

Excludes effect of treasury stock.

(2)

Includes Futuros y Opciones.Com S.A.’s interest.

(3)

Includes Helmir’s interest.

Property, Plant and Equipment

Overview of Agricultural Properties

As of September 30, 2020, we owned, together with our subsidiaries, 25 farmlands, which have a total surface area of 629,794 hectares.

The following table sets forth our properties’ size (in hectares), primary current use and book value. The market value of farmland is generally higher the closer a farmland is located to Buenos Aires:

	Facility	Province	Country	Gross<br>Size<br><br><br><br><br><br>(in<br>hectares)	Date<br>of Acquisition	Primary<br>Current Use	Net<br>Book Value (ARS Millions) (1)
1	El<br>Recreo	Catamarca	Argentina	12,395	May<br>95	Natural<br>woodlands	10
2	Los<br>Pozos	Salta	Argentina	239,639	May<br>‘95	Cattle/<br>Agriculture/ Natural woodlands	2,135
3	San<br>Nicolás/Las Playas (2)	Santa<br>Fe/Córdoba	Argentina	2,965	May<br>‘97	Agriculture/<br>Dairy	272
4	La Gramilla/ Santa<br>Bárbara	San<br>Luis	Argentina	7,072	Nov<br>‘97	Agriculture Under<br>irrigation	976
5	La<br>Suiza	Chaco	Argentina	26,371	Jun<br>‘98	Agriculture/<br>Cattle	666
6	El<br>Tigre	La<br>Pampa	Argentina	8,360	Apr<br>‘03	Agriculture/<br>Dairy	647
7	San<br>Pedro	Entre<br>Rios	Argentina	6,022	Sep<br>‘05	Agriculture	1,034
8	8 De Julio/<br>Estancia Carmen	Santa<br>Cruz	Argentina	100,911	May<br>‘07/ Sep ‘08	Sheep	158
9	Administración<br>Cactus	San<br>Luis	Argentina	171	Dec<br>‘97	Natural<br>woodlands	24
10	Las<br>Vertientes	Cordoba	Argentina	-	-	Silo	2
11/12/13	Las Londras/San<br>Rafael/ La Primavera	Santa<br>Cruz	Bolivia	9,875	Nov-08/Jan-11	Agriculture	1,873
14	Finca<br>Mendoza	Mendoza	Argentina	674	Mar<br>‘11	Natural<br>woodlands	15
15	Establecimiento<br>Mendoza	Mendoza	Argentina	9	Nov’03	Natural<br>woodlands	78
16	Marangatú/Udra<br>(3)	Mariscal<br>Estigarribia	Paraguay	59,585	Feb-09	Agriculture<br>/Natural Woodlands	3,282
17/26	Brasilagro(3)		Brazil	155,745		Agriculture/<br>Forestry/Cattle	8,126
Subtotal				629,794			19,298

(1)

Acquisition costs plus improvements and furniture necessary for the production, less depreciation.

(2)

Hectares and carrying amount in proportion to our 35.72% interest in Agro-Uranga S.A.

(3)

See the section “Overview of Brasilagro’s Properties”.

Overview of Brasilagro’s Properties

As of September 30, 2020, we owned, together with our subsidiaries, 11 farmlands, which have a total surface area of 215,330 hectares, acquired at a highly convenient value compared to the average of the region, all of them with a great appreciation potential.

		Total<br>area	Net<br>Book value
Properties	Place	(ha)	(ARS<br>Millions)
Jatobá	Jaborandi/BA	14,930	433
Alto<br>Taquari	Alto<br>Taquari/MT	5,103	455
Araucária	Mineiros/GO	5,534	623
Chaparral	Correntina/BA	37,182	1,231
Nova<br>Buriti	Januária/MG	24,212	321
Preferência	Barreiras/BA	17,799	367
São<br>José	Maranhão/MA	17,566	1,522
Marangatú/Udra	Boqueron<br>Paraguay	59,585	3,282
Arrojadinho	Barreiras/BA	16,642	1,162
Rio do<br>Meio	Correntina/MA	12,288	1,655
Serra<br>Grande	Correntina/BA	4,489	357
Total		215,330	11,408

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

The following management’s discussion and analysis of our financial condition and results of operations should be read together with “Selected Consolidated Financial Data” and Our Audited Consolidated Financial Statements and related notes appearing elsewhere in this Form 6-K. This discussion and analysis of our financial condition and results of operations contains forward-looking statements that involve risks, uncertainties and assumptions. These forward-looking statements include such words as, “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ materially and adversely from those anticipated in these forward-looking statements as a result of many factors, including without limitation those set forth elsewhere in this Form 6-K. See Item 3 “Key Information – D. Risk Factors” in our 2020 Form 20-F for a more complete discussion of the economic and industry-wide factors relevant to us.

General

We prepare our Audited Consolidated Financial Statements in pesos and in accordance with IFRS, as issued by the IASB, and with CNV Rules.

Historically, we measured the value of our portfolio of investment properties at cost. Our board of directors resolved to change our accounting policy for measuring the value of our investment properties from the cost model to the fair value model, as permitted under IAS 40. Accordingly, we retroactively recast our previously issued audited consolidated financial statements as of June 30, 2016 and 2015 and for the fiscal years ended June 30, 2016, 2015 and 2014 as required by IAS 40 and IAS 8. We have furnished to the SEC such consolidated financial statements as recast in a report on Form 6-K filed on May 26, 2017.

Our Audited Consolidated Financial Statements and the financial information included elsewhere in this Form 6-K have been prepared in accordance with IFRS. We have determined that, as of July 1, 2018, the Argentine economy qualifies as a hyperinflationary economy according to the guidelines of IAS 29 since the total cumulative inflation in Argentina in the 36 months prior to July 1, 2018 exceeded 100%. IAS 29 requires that the financial information recorded in a hyperinflationary currency be adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) current at the end of the reporting period. Therefore, our Audited Consolidated Financial Statements included in this Form 6-K have been adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) current at the end of the reporting period (June 30, 2020). See “Risk Factors—Risks Relating to Argentina—A high level of uncertainty with regard to these economic variables, and a general lack of stability in terms of inflation, could have a negative impact on economic activity and adversely affect our financial condition

Revenue Recognition

We identify contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.

Revenue from satisfaction of performance obligations at a given time is recognized when the client obtains control of the committed asset or service considering whether there is a right to collection, if the client has the physical possession, if the client has the legal right and if they have the transferred the risks and benefits.

Additionally and in accordance with IFRS 15, we recognize revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Group has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed (see detail in Note 2.2).

Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Group uses the cost method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.

Revenue are recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.

Agricultural and agricultural-related activities:

Revenue from our agricultural activities comes primarily from sales of agricultural produce and biological assets, from provision of services related to the activity and from leases of farmlands.

We recognize revenue on product sales when the agricultural produce or biological assets are delivered and the customers take ownership and assume risk of loss, which is when the products are received by the customer at its or a designated location or collected directly by the customer, collection is reasonably assured and the selling price is fixed or determinable. Net sales of products represent the invoiced value of goods, net of trade discounts and allowances, if any.

We also provides agricultural-related (including but not limited to watering and feedlot services) and brokerage services to third parties. Revenue from services are recognized when services are effective rendered.

We also leases land to third parties under operating lease agreements. Lease income is recognized on a straight-line basis over the period of the lease.

Urban properties and investments activities:

Rental and services - Shopping malls portfolio

Revenues derived from business activities developed in the Company’s shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to the Group’s lessees.

Rental income from shopping mall, admission rights and commissions, are recognized in the Statements of Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, i.e. lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent reviews are recognized when such reviews have been agreed with tenants.

The Company’s lease contracts also provide that common area maintenance charges and collective promotion funds of the Group’s shopping malls are borne by the corresponding lessees, generally on a proportionally basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. We make the original payment for such expenses, which are then reimbursed by the lessees. We consider that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Rental and services - Offices and other rental properties

Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.

Rental income from offices and other rental properties is recognized in the Statements of Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

A substantial portion of the Company’s leases requires the tenant to reimburse the Company for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. We manage its own rental properties. We make the original payment for these expenses, which are then reimbursed by the lessees. We consider that it acts as a principal in these cases. We accrue reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Revenue from communication services and sale of communication equipment

Revenue derived from the use of the Company’s communication networks, including mobile phones, Internet services, international calls, fixed line calls, interconnection rates and roaming service rates and television, are recognized when the service is provided, proportionally to the extent the transaction has been realized, and provided all other criteria have been met for revenue recognition.

Revenue from the sale of mobile phone cards is initially recognized as deferred revenue and then recognized as revenue as they are used or upon expiration, whichever takes place earlier.

A transaction involving the sale of equipment to a final user normally also involves a service sale transaction. In general, this type of sale is performed without a contractual obligation by the client to consume telephone services for a minimum amount over a predetermined period. As a result, the Company records the sale of equipment separately of the performance obligations and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services is recognized and accounted for as they are provided over time. When the client is bound to make a minimum consumption of services during a predefined period, the contract formalizes a transaction of several elements and, therefore, revenue from the sale of equipment is recorded at an amount that should not exceed its fair value, and is recognized upon delivery of the equipment to the client and provided the criteria for recognition are met. The Company ascertains the fair value of individual elements, based on the price at which it is normally sold, after taking into account the relevant discounts.

Revenue derived from long-term contracts is recognized at the present value of future cash flows, discounted at market rates prevailing on the transaction date. Any difference between the original credit and its net present value is accounted for as interest income over the credit term.

Revenues from supermarkets

Revenue from the sale of goods in the ordinary course of business is recognized at the fair value of the consideration collected or receivable, net of returns and discounts. When the credit term is short and financing is that typical in the industry, consideration is not discounted. When the credit term is longer than the industry’s average, in accounting for the consideration, the Company discounts it to its net present value by using the client’s risk premium or the market rate. The difference between the fair value and the nominal amount is accounted for under financial income. If discounts are granted and their amount can be measured reliably, the discount is recognized as a reduction of revenue.

Revenues from supermarkets have been recognized in discontinued operations.

Effects of the global macroeconomic factors

Most of our assets are located in Argentina, where we conduct our operations, and in Israel. Therefore, our financial condition and the results of our operations are significantly dependent upon economic conditions prevailing in both countries.

The table below shows Argentina’s GDP, inflation rates, dollar exchange rates, the appreciation (depreciation) of the Peso against the U.S. dollar, and the appreciation (depreciation) of the NIS against the U.S. dollar for the indicated periods (inter-annual information—which is the 12 month period preceding the dates presented—is presented to conform to our fiscal year periods).

	As<br>of September 30,	Fiscal<br>year ended June 30,
	2020	2020	2019	2018
	Quarter<br>data	(inter-annual<br>data)
GDP (1)	(10.2)%	(19.1)%	(3.7)%	2.0%
Inflation<br>(IPIM)(2)	11.7%	39.7%	60.8%	44.1%
Inflation<br>(CPI)	7.6%	42.8%	55.8%	29.5%
Depreciation of the<br>Peso against the U.S. dollar	(8.2)%	(66.1)%	(47.1)%	(73.7)%
Average exchange<br>rate per USD1.00(3)	ARS<br>76.1800	ARS<br>70.3600	ARS<br>42.3630	ARS<br>28.8000
Appreciation/<br>(depreciation) of the NIS against the U.S. Dollar		3.0%	2.4%	(4.8)%

(1)

Represents inter-annual growth of the last twelve months GDP average at constant prices (2004).

(2)

IPIM (Índice de Precios Internos al por Mayor) is the wholesale price index as measured by the Argentine Ministry of Treasury.

(3)

Represents average of the selling and buying exchange rate quoted by Banco de la Nación Argentina as of June 30, 2020. As of December 22, 2020, the exchange rate was 83.2500 per U.S. Dollar.

Source: INDEC and Banco de la Nación Argentina.

Argentine GDP contracted 10.2% during our 2021 first fiscal year, compared to a contraction of 1.8% in the first fiscal year of 2019. Nationally, shopping mall sales decreased 82.2% in the fiscal 2020 compared to fiscal 2019. As of June 30, 2020, the unemployment rate was at 13.1% of the country’s economically active population compared to 10.6% as of June 30, 2019. The monthly estimate of economic activity (“EMAE”) as of June 30, 2020, contracted by 12.3% compared to the same month in 2019. In the second quarter of 2020, the activity rate was 38.4%, the employment rate was 33.4% and the unemployment rate was 13.1%.

In the context of the health emergency related to the COVID-19 pandemic, the main impact on the labor market was verified in the dynamics of the employment rate (TE), which measures the proportion of employed persons in relation to the total population. The second quarter of 2020 showed a drop of 8.8 percentage points (p.p.) compared to the first quarter of the year and of 9.2 p.p. compared to the second quarter of 2019, driven by the lower proportion of people who were able to report to work. Due to COVID-19 pandemic, total sales at current prices in the month of June 2020 relevant to the survey reached a total of ARS 2,841.6 million, which represents a decrease of 82.2% compared to the month of June 2019.

Changes in short- and long-term interest rates, unemployment and inflation rates may reduce the availability of consumer credit and the purchasing power of individuals who frequent shopping malls. These factors, combined with low GDP growth, may reduce general consumption rates at our shopping malls. Since most of the lease agreements at our shopping malls, our main source of revenue, require tenants to pay a percentage of their total sales as rent, a general reduction in consumption may reduce our revenue. A reduction in the number of shoppers at our shopping malls and, consequently, in the demand for parking, may also reduce our revenues from services rendered.

Regarding Israel’s economy, and based on information published by OECD, despite a decline in residential investment, activity remained solid at the beginning of 2018, with strong public consumption and good export performance, particularly of services. After picking up to 3.3% in 2017, growth is projected to be around 3.7% in 2018 and 3.6% in 2019. Rising wage pressures are projected to lead to a steady increase in inflation.

Effects of inflation

The following are annual inflation rates during the fiscal years indicated, based on information published by the INDEC, an entity dependent of the Argentine Ministry of Treasury.

	Consumer<br>price index	Wholesale<br>price index
	(inter-annual<br>data)
Fiscal<br>Year ended June 30,
2018	29.5%	44.1%
2019	55.8%	60.8%
2020	42.8%	39.7%
Three months as of<br>September 30, 2020	7.6%	11.7%

The current structure of IRSA CP’s leases contracts for shopping mall tenant generally include provisions that provide for payment of variable rent, which is a percentage of the IRSA CP’s shopping mall tenant’s sales. Therefore, the projected cash flows for these shopping malls generally are highly correlated with GDP growth and consumption power.

For the leases of spaces at our shopping malls we use for most tenants a standard lease agreement, the terms and conditions of which are described below. However, our largest tenants generally negotiate better terms for their respective leases. No assurance can be given that lease terms will be as set forth in the standard lease agreement.

The rent specified in our leases generally is the higher of (i) a monthly Base Rent and (ii) a specified percentage of the store’s monthly gross sales, which generally ranges between 2% and 10% of such sales. In addition, pursuant to the rent escalation clause in most of our leases, a tenant’s Base Rent generally increases between 10% and 15% on a semi-annual and cumulative basis from the seventh (7th) month following effectiveness of the lease. Although many of our lease agreements contain price adjustment provisions, these are not based on an official index nor do they reflect the inflation index. In the event of litigation regarding these adjustment provisions, there can be no assurance that we may be able to enforce such clauses contained in our lease agreements. See “Information of the Company—Business Overview—Our Shopping Malls—Principal Terms of our Leases.”

Continuing increases in the rate of inflation are likely to have an adverse effect on our operations. Although higher inflation rates in Argentina may increase minimum lease payments, given that tenants tend to pass on any increases in their expenses to consumers, higher inflation may lead to an increase in the prices our tenants charge consumers for their products and services, which may ultimately reduce their sales volumes and consequently the portion of rent we receive based on our tenants’ gross sales.

In addition, we measure the fair market value of our shopping malls based upon the estimated cash flows generated by such assets which, as discussed in previous paragraphs, is directly related to consumer spending since a significant component of the rent payment received from our tenants is tied to the sales realized by such tenants (i.e. is a percentage of the sales of our tenants). Therefore, macroeconomic conditions in Argentina have an impact in the fair market value of our shopping malls as measured in pesos. Specifically, since our tenants’ products have been adjusted (increased) to account for inflation of the peso, our expected cash flows from our shopping malls have similarly increased in nominal terms since rent is largely dependent on sales of our tenants in pesos.

Seasonality

Our business is directly affected by seasonality, influencing the level of our tenants’ sales. During Argentine summer holidays (January and February) our tenants’ sales typically reach their lowest level, whereas during winter holidays (July) and in Christmas (December) they reach their maximum level. Clothing retailers generally change their collections in spring and autumn, positively affecting our shopping malls’ sales. Discount sales at the end of each season are also one of the main seasonal factors affecting our business.

In Israel, the retail segment business’s results are subject to seasonal fluctuations as a result of the consumption behavior of the population proximate to the Passover holidays (March and/or April) and Rosh Hashanah and Sukkoth holidays (September and/or October). This also affects the balance sheet values of inventory, customers and suppliers. Revenues from cellular services are usually affected by seasonality with the third quarter of the year characterized by higher roaming revenues due to increased incoming and outgoing tourism.

Effects of interest rate fluctuations

Most of our U.S. dollar-denominated debt accrues interest at a fixed rate. An increase in interest rates will result in a significant increase in our financing costs and may materially affect our financial condition or our results of operations.

In addition, a significant increase of interest rates could deteriorate the terms and conditions in which our tenants obtain financing from banks and financial institutions in the market. As a consequence of that, if they suffer liquidity problems the collection of our lease contracts could be affected by an increase in the level of delinquency.

Effects of foreign currency fluctuations

A significant portion of our financial debt is denominated in U.S. dollars. Therefore, a devaluation or depreciation of the peso against the U.S. dollar would increase our indebtedness measured in pesos and materially affect our results of operations. Foreign currency exchange restrictions imposed by the Argentine government could prevent or restrict our access to U.S. dollars, affecting our ability to service our U.S. dollar denominated- liabilities.

In addition, contracts for the rental of office buildings are generally stated in U.S. dollars, so a devaluation or depreciation of the peso against the U.S. dollar would increase the risk of delinquency on our lease receivables.

As discussed above, we calculate the fair market value of our office properties based on comparable sales transactions. Typically real estate transactions in Argentina are transacted in U.S. dollars. Therefore, a devaluation or depreciation of the peso against the U.S. dollar would increase the value of our real estate properties measured in pesos and an appreciation of the peso would have the opposite effect. In addition, foreign currency exchange restrictions imposed by Argentine government could prevent or restrict the access to U.S. dollars for the acquisition of real estate properties, which are denominated and transacted in U.S dollars in Argentina, that could affect our ability to sell or acquire real estate properties and could have an adverse impact in real estate prices.

For more information about the evolution of the U.S dollar / Peso exchange rate, see “Exchange Rate and Exchange Controls”.

Fluctuations in the market value of our investment properties as a result of revaluations

Currently, our interests in investment properties are revalued quarterly. Any increase or decrease in the fair value of our investment properties, based on appraisal reports prepared by appraisers, is recorded in our consolidated statement of comprehensive income for the fiscal year during which the revaluation occurs. The revaluation of our properties may therefore result in significant fluctuations in the results of our operations.

Property values are affected by, among other factors, a) shopping malls, which are mainly impacted by the discount rate used (WACC), the projected GDP growth and the projected inflation and devaluation for future periods and b) office buildings, which are mostly impacted by the supply and demand of comparable properties and the U.S. dollar / peso exchange rate at the reporting period, as office buildings fair value is generally established in U.S. dollars For example:

●

during the 2018 fiscal year there was a 73.5% depreciation of the peso from ARS 16.63 to USD1.00 as of June 30, 2017 to ARS 28.85 to USD1.00 as of June 30, 2018.

●

during the 2019 fiscal year, there was a 47.1% depreciation of the peso from ARS 28.85 to USD1.00 as of June 30, 2018 to ARS 42.363 to USD1.00 as of June 30, 2019.

●

during the 2020 fiscal year, there was a 66.1% depreciation of the peso from ARS 42.363 to USD1.00 as of June 30, 2019 to ARS 70.36 to USD1.00 as of June 30, 2020.

●

during the first quarter of the 2021 fiscal year, there was a 8.2% depreciation of the peso from ARS 70.36 to USD1.00 as of June 30, 2020 to ARS 76.18 to USD1.00 as of September 30, 2020.

The value of the Company investment properties is determined in U.S. dollar pursuant to the methodologies further described in “Critical Accounting Policies and estimates” and then determined in pesos (the Company functional and presentation currency).

In the past, purchases and sales of office buildings were usually settled in US dollars, However, as a consequence of the restrictions imposed by the BCRA on foreign exchange transactions, purchase and sales of office buildings are now usually settled in Argentine pesos, using an implicit exchange rate that is higher than the official one (as it was the case in the operations carried out by IRSA CP in the past few months). Therefore, IRSA CP has valued its office buildings and undeveloped parcels of land in Argentine pesos at the end of the year, considering the situation described above, which results in a gain with respect to the valuespreviously recorded.

Factors Affecting Comparability of our Results

Comparability of information

Operations Center in Argentina

Office buildings

On June 30, 2019, IRSA CP’s Office portfolio consisted of 115,378 sqm of GLA after incorporating the recently inaugurated Zetta building. Additionally, we acquired the Maltería Hudson plot that has a surface area of 147,895 sqm and approximately 40,000 GLA at the intersection of Route 2 and Buenos Aires - La Plata highway.

On June 30, 2020, IRSA CP has acquired as an investment property the building “200 Della Paolera” located in Catalinas District in Buenos Aires. It consists of 35,208 sqm of gross leasable area over 30 office floors and includes 316 parking lots in 4 basements.

Shopping malls

During the fiscal years ended June 30, 2020 and 2019, we maintained the same portfolio of operating shopping malls. During the fiscal year ended June 30, 2019, the surface area of our Shopping Malls segment was reduced by 11,875 square meter due to the return of Buenos Aires Design, whose concession terminated in November 2018.

Critical Accounting Policies and Estimates

Our Audited Consolidated Financial Statements are prepared in accordance with IFRS as issued by the IASB, and the accounting policies employed are set out in our Accounting Policies section in the financial statements. In applying these policies, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. The actual outcome could differ from those estimates. Some of these policies require a high level of judgment because the areas are especially subjective or complex.

The discussion below should also be read in conjunction with our disclosure of significant IFRS accounting policies, which is provided in Note 2 to our Audited Consolidated Financial Statements, “Summary of significant accounting policies”.

The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Audited Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications
Business<br>combination - Allocation of acquisition prices	Assumptions<br>regarding timing, amount of future revenues and expenses, revenue<br>growth, expected rate of return, economic conditions, and discount<br>rate, among other.	Should<br>the assumptions made be inaccurate, the recognized combination may<br>not be correct.
Recoverable<br>amounts of cash-generating units (even those including goodwill),<br>associates and assets.	The<br>discount rate and the expected growth rate before taxes in<br>connection with cash-generating units.<br><br><br>The<br>discount rate and the expected growth rate after taxes in<br>connection with associates.<br><br><br>Cash<br>flows are determined based on past experiences with the asset or<br>with similar assets and in accordance with the Group’s best<br>factual assumption relative to the economic conditions expected to<br>prevail.<br><br><br>Business<br>continuity of cash-generating units.<br><br><br>Appraisals<br>made by external appraisers and valuators with relation to the<br>assets’ fair value, net of realization costs (including real<br>estate assets).	Should<br>any of the assumptions made be inaccurate; this could lead to<br>differences in the recoverable values of cash-generating<br>units.
Control,<br>joint control or significant influence	Judgment<br>relative to the determination that the Group holds an interest in<br>the shares of investees (considering the existence and influence of<br>significant potential voting rights), its right to designate<br>members in the executive management of such companies (usually the<br>Board of directors) based on the investees’ bylaws; the<br>composition and the rights of other shareholders of such investees<br>and their capacity to establish operating and financial policies<br>for investees or to take part in the establishment<br>thereof.	Accounting<br>treatment of investments as subsidiaries (consolidation) or<br>associates (equity method)
Estimated<br>useful life of intangible assets and property, plant and<br>equipment	Estimated<br>useful life of assets based on their conditions.	Recognition<br>of accelerated or decelerated depreciation by comparison against<br>final actual earnings (losses).
Fair<br>value valuation of investment properties	Fair<br>value valuation made by external appraisers and valuators. See Note<br>9 to our Audited Consolidated Financial Statements.	Incorrect<br>valuation of investment property values
Income<br>tax	The<br>Group estimates the income tax amount payable for transactions<br>where the Treasury’s Claim cannot be clearly<br>determined.<br><br><br>Additionally,<br>the Group evaluates the recoverability of assets due to deferred<br>taxes considering whether some or all of the assets will not be<br>recoverable.	Upon<br>the improper determination of the provision for income tax, the<br>Group will be bound to pay additional taxes, including fines and<br>compensatory and punitive interest.
Allowance<br>for doubtful accounts	A<br>periodic review is conducted of receivables risks in the<br>Group’s clients’ portfolios. Bad debts based on the<br>expiration of account receivables and account receivables’<br>specific conditions.	Improper<br>recognition of charges / reimbursements of the allowance for bad<br>debt.
Level 2<br>and 3 financial instruments	Main<br>assumptions used by the Group are:<br><br><br>● Discounted<br>projected income by interest rate<br><br><br>● Values determined<br>in accordance with the shares in equity funds on the basis of its<br>Financial Statements, based on fair value or investment<br>assessments.<br><br><br>● Comparable market<br>multiple (EV/GMV ratio).<br><br><br>● Underlying asset<br>price (Market price); share price volatility (historical) and<br>market interest rate (Libor rate curve).	Incorrect<br>recognition of a charge to income / (loss).
Probability<br>estimate of contingent liabilities.	Whether<br>more economic resources may be spent in relation to litigation<br>against the Group, such estimate is based on legal advisors’<br>opinions.	Charge<br>/ reversal of provision in relation to a claim.
Qualitative<br>considerations for determining whether or not the replacement of<br>the debt instrument involves significantly different<br>terms	The<br>entire set of characteristics of the exchanged debt instruments,<br>and the economic parameters represented therein:<br><br><br>Average<br>lifetime of the exchanged liabilities; Extent of effects of the<br>debt terms (linkage to index; foreign currency; variable interest)<br>on the cash flows from the instruments.	Classification<br>of a debt instrument in a manner whereby it will not reflect the<br>change in the debt terms, which will affect the method of<br>accounting recording.
Biological<br>assets	Main<br>assumptions used in valuation are yields, production costs, selling<br>expenses, forwards of sales prices, discount rates.	Wrong<br>recognition/valuation of biological assets. See sensitivities<br>modeled on these parameters in Note 14 to our Audited Consolidated<br>Financial Statements.

Business Segment Reporting

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by our chief executive officer, Mr. Eduardo S. Elsztain. In addition, and due to the acquisition of IDBD, two responsibility levels have been established for resource allocation and assessment of results of the two operations centers, through executive committees in Argentina and Israel.

Segment information is analyzed by the CODM from two perspectives: by geography (Argentina and Israel) and by products and services. In each operations center, the Company considers separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks. Management believes the operating segment clustering in each operations center reflects similar economic characteristics in each region, as well as similar products and services offered, types of clients and regulatory environments.

As of fiscal year 2018, the CODM reviews certain corporate expenses associated with each operations center in an aggregate manner and separately from each of the segments, and such expenses have been disclosed in the “Corporate” segment of each operation center. Additionally, as of fiscal year 2018, the “Offices” business is being monitored as a separate segment, while the entertainment business is now being monitored within the “Others” segment. Segment information for the year 2017 has been consequently recast for purposes of comparability with the present year.

The “Agricultural production” segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; the sale of grain derivatives, such as flour and oil, breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets; agricultural services; leasing of the Group’s farms to third parties; and planting, harvesting and sale of sugarcane.

In the third quarter of the fiscal year 2018, we have changed the presentation of the agricultural business segment which is monitored regularly by the CODM for a better alignment with the current business structure. The former four operating segments (crops, cattle, dairy and sugarcane) have been aggregated into a single operating segment named “Agricultural production”. Management considered for the aggregation the nature of the production processes (growing of biological assets), the methods used to distribute their products and the nature of the regulatory environment (agricultural business). Therefore this quarter four segments are considered:

Agricultural business:

In the third quarter of the fiscal year 2018, we have changed the presentation of the agricultural business segments which are reviewed by the CODM for a better alignment with the current business vision and the metrics used to such end. Four operating segments (crops, cattle, dairy and sugarcane) have been aggregated into a single operating segment named “Agricultural production”. Management consider for the aggregation the nature of the production processes (growing of biological assets), the methods used to distribute their products and the nature of the regulatory environment (agricultural business). Therefore this quarter three segments are considered:

The “Land transformation and sales” segment comprises gains from the disposal and development of farmlands activities

The “Other” segment includes, principally, slaughtering and processing in the meat refrigeration plant; and brokerage activities, among others.

The “Corporate” segment includes corporate expenses related to agricultural business.

Urban properties and investments business:

Operations Center in Argentina:

Within this operations center, IRSA operates in the following segments:

●

The “Shopping Malls” segment includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Group.

●

The “Offices” segment includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities.

●

The “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included.

●

The “Hotels” segment includes the operating results mainly comprised of room, catering and restaurant revenues.

●

The “International” segment includes assets and operating profit or loss from business related to associates Condor (hotels) and New Lipstick (offices).

●

The “Others” segment primarily includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. and TGLT, and the financial activities carried out by BHSA.

●

The “Corporate” segment includes the expenses related to the corporate activities of the Operations Center in Argentina.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments of this operations center based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of joint ventures and associates. The valuation criteria used in preparing this information are consistent with IFRS standards used for the preparation of the Consolidated Financial Statements, except for the following:

Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method the profit/loss generated and assets are reported in the Statement of Income line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.

Operating results from Shopping Malls and Offices segments do not include the amounts pertaining to building administration expenses and collective promotion funds (“FPC”, as per its Spanish acronym) as well as total recovered costs, whether by way of expenses or other concepts included under financial results (for example default interest and other concepts). The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and FPC and recoverable expenses).

The assets’ categories examined by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, right to receive future units under barter agreements, investment in associates and goodwill. The sum of these assets, classified by business segment, is reported under “assets by segment”. Assets are allocated to each segment based on the operations and/or their physical location.

Within the Operations Center in Argentina, most revenue from its operating segments is derived from, and their assets are located in, Argentina, except for the share of profit / (loss) of associates included in the “International” segment located in USA.

Revenues for each reporting segments derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.

Operations Center in Israel: Within this operations center, as of June 30, 2020, the Company operated in the following segments:

●

The “Real Estate” segment in which, through PBC, the Group operates rental properties and residential properties in Israel, USA and other parts of the world and carries out commercial projects in Las Vegas, USA. In this fiscal year, the Company lost control over Gav-Yam. Income was reclassified to discontinued operations and no longer forms part of this segment in this fiscal year. The comparative information has been adjusted accordingly. As of September 2019, Gav-Yam started to be accounted for as an associate.

●

The “Supermarkets” segment in which, through Shufersal, the Group operated a supermarket chain in Israel. Upon the loss of control in 2018 this segment was reclassified to discontinued operations and presented as an associate since 2019. Due to the loss of control, it was reclassified to discontinued operations and no longer represents a segment for fiscal year 2018.

●

The “Telecommunications” segment includes Cellcom whose main activities include the provision of mobile phone services, fixed line phone services, data, Internet and television, among others.

●

The “Insurance” segment includes the investment in Clal, insurance company which main activities includes pension and social security insurance, among others. As stated in Note 14, the Group does not have control over Clal; therefore, the business is reported in a single line as a financial asset held for sale and valued at fair value.

●

The “Others” segment includes other diverse business activities, such as technological developments, tourism, oil and gas assets, electronics, agricultural activities and others.

●

The “Corporate” segment includes the expenses related with the activities of the holding companies.

Goods and services exchanged between segments are calculated on the basis of established prices. Intercompany transactions between segments, if any, are eliminated.

Results of Operations for the Year ended June 30, 2020 compared to the Year ended June 30, 2019

The following table shows a summary of the business lines and a reconciliation between the total profit/(loss) from operations based on segment information profit/(loss) from operations based on the income statement for the fiscal years ended June 30, 2020 and 2019.

	Agricultural business			Urban Properties and Investment business									Total segment information			Joint ventures			Adjustments			Elimination of inter-segment transactions and non-reportable assets<br>/ liabilities (iv)			Total Statement of Income / Financial Position
				Operations Center in Argentina			Operations Center in Israel			Subtotal
	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.
In million of<br>ARS
Revenues	28,271	20,522	7,749	11,991	16,207	(4,216)	-	-	-	11,991	16,207	(4,216)	40,262	36,729	3,533	(65)	(100)	35	3,337	3,990	(653)	(881)	(567)	(314)	42,653	40,052	2,601
Costs	(23,987)	(17,402)	(6,585)	(2,966)	(3,445)	479	-	-	-	(2,966)	(3,445)	479	(26,953)	(20,847)	(6,106)	57	72	(15)	(3,477)	(4,150)	673	581	211	370	(29,792)	(24,714)	(5,078)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,823	2,191	632	-	-	-	-	-	-	-	-	-	2,823	2,191	632	-	-	-	-	-	-	220	291	(71)	3,043	2,482	561
Changes in the<br>net realizable value of agricultural products after<br>harvest	707	(46)	753	-	-	-	-	-	-	-	-	-	707	(46)	753	-	-	-	-	-	-	-	-	-	707	(46)	753
Gross profit / (loss)	7,814	5,265	2,549	9,025	12,762	(3,737)	-	-	-	9,025	12,762	(3,737)	16,839	18,027	(1,188)	(8)	(28)	20	(140)	(160)	20	(80)	(65)	(15)	16,611	17,774	(1,163)
Net gain from<br>fair value adjustment of investment properties	839	-	839	36,026	(42,499)	78,525	-	-	-	36,026	(42,499)	78,525	36,865	(42,499)	79,364	(283)	903	(1,186)	-	-	-	-	-	-	36,582	(41,596)	78,178
Gain from<br>disposal of farmlands	902	715	187	-	-	-	-	-	-	-	-	-	902	715	187	-	-	-	-	-	-	-	-	-	902	715	187
General and<br>administrative expenses	(1,527)	(1,641)	114	(2,315)	(2,874)	559	(99)	(115)	16	(2,414)	(2,989)	575	(3,941)	(4,630)	689	16	17	(1)	-	-	-	55	60	(5)	(3,870)	(4,553)	683
Selling<br>expenses	(2,810)	(1,849)	(961)	(1,326)	(1,169)	(157)	-	-	-	(1,326)	(1,169)	(157)	(4,136)	(3,018)	(1,118)	20	8	12	-	-	-	20	12	8	(4,096)	(2,998)	(1,098)
Other<br>operating results, net	1,791	881	910	(52)	(710)	658	-	-	-	(52)	(710)	658	1,739	171	1,568	19	208	(189)	18	18	-	(7)	(11)	4	1,769	386	1,383
Management<br>fees	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(227)	-	(227)	-	-	-	(227)	-	(227)
Profit / (Loss) from operations	7,009	3,371	3,638	41,358	(34,490)	75,848	(99)	(115)	16	41,259	(34,605)	75,864	48,268	(31,234)	79,502	(236)	1,108	(1,344)	(349)	(1420)	(207)	(12)	(4)	(8)	47,671	(30,272)	77,943
Share of<br>(loss) / profit of associates and joint<br>ventures	137	12	125	7,586	(6,656)	14,242	-	-	-	7,586	(6,656)	14,242	7,723	(6,644)	14,367	182	(1,083)	1,265	-	-	-	22	-	22	7,927	(7,727)	15,654
Segment profit / (loss)	7,146	3,383	3,763	48,944	(41,146)	90,090	(99)	(115)	16	48,845	(41,261)	90,106	55,991	(37,878)	93,869	(54)	25	(79)	(349)	(1420)	(207)	10	(4)	14	55,598	(37,999)	93,597

(I)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(II)

Includes gross profit/ (loss) of ARS (130) million and ARS (149) million corresponding to Building Administration Expenses and Collective Promotion Fund (FPC), as of June 30, 2020 and 2019, respectively.

Agricultural Business

The following table shows a summary of the Agricultural Business lines for the fiscal years ended June 30, 2020 and 2019.

	Agricultural<br>production			Land<br>transformation and sales			Corporate			Others			Total
	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.
	In million of ARS
Revenues	18,503	11,952	6,551	-	-	-	-	-	-	9,768	8,570	1,198	28,271	20,522	7,749
Costs	(15,798)	(10,191)	(5,607)	(27)	(26)	(1)	-	-	-	(8,162)	(7,185)	(977)	(23,987)	(17,402)	(6,585)
Initial recognition and changes in<br>the fair value of biological assets and agricultural products at<br>the point of harvest	2,812	2,185	627	-	-	-	-	-	-	11	6	5	2,823	2,191	632
Changes in the net realizable value<br>of agricultural products after harvest	707	(46)	753	-	-	-	-	-	-	-	-	-	707	(46)	753
Gross profit /<br>(loss)	6,224	3,900	2,324	(27)	(26)	(1)	-	-	-	1,617	1,391	226	7,814	5,265	2,549
Net gain from fair value adjustment<br>of investment properties	-	-	-	839		839	-	-	-	-	-	-	839		839
Gain from disposal of<br>farmlands	-	-	-	902	715	187	-	-	-	-	-	-	902	715	187
General and administrative<br>expenses	(1,025)	(1,032)	7	(3)	(3)	-	(191)	(295)	104	(308)	(311)	3	(1,527)	(1,641)	114
Selling<br>expenses	(1,954)	(1,104)	(850)	(1)	(2)	1	-	-	-	(855)	(743)	(112)	(2,810)	(1,849)	(961)
Other operating results,<br>net	488	460	28	1,038	263	775	-	-	-	265	158	107	1,791	881	910
Profit / (Loss)<br>from operations	3,733	2,224	1,509	2,748	947	1,801	(191)	(295)	104	719	495	224	7,009	3,371	3,638
Share of profit of associates and<br>joint ventures	59	61	(2)	-	-	-	-	-	-	78	(49)	127	137	12	125
Segment profit /<br>(loss)	3,792	2,285	1,507	2,748	947	1,801	(191)	(295)	104	797	446	351	7,146	3,383	3,763

Urban Properties and Investment Business

Operations Center in Argentina

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Argentina for the fiscal years ended June 30, 2020 and 2019.

	Shopping<br>Malls			Offices			Sales and<br>developments			Hotels			Internacional			Corporate			Others			Total
	(in millions of ARS)
	06.30.2	06.30.1	Var.	06.30.2	06.30.1	Var.	06.30.2	06.30.1	Var.	06.30.2	06.30.1	Var.	06.30.2	06.30.1	Var.	06.30.2	06.30.19	Var.	06.30.2	06.30.1	Var.	06.30.2	06.30.1	Var.
Revenues	6,389	9,195	(2,806)	2,539	2,408	131	791	1,205	(414)	2,176	3,179	(1,003)	12	15	(3)	-	-	-	84	205	(121)	11,991	16,207	(4,216)
Costs	(610)	(835)	225	(155)	(164)	9	(743)	(568)	(175)	(1,339)	(1,709)	370	(13)	(6)	(7)	-	-	-	(106)	(163)	57	(2,966)	(3,445)	479
Gross profit /<br>(loss)	5,779	8,360	(2,581)	2,384	2,244	140	48	637	(589)	837	1,470	(633)	(1)	9	(10)	-	-	-	(22)	42	(64)	9,025	12,762	(3,737)
Net gain from fair value adjustment<br>of investment properties	(2,266)	(43,688)	41,422	24,498	804	23,694	13,111	782	12,329	-	-	-	-	6	(6)	-	-	-	683	(403)	1,086	36,026	(42,499)	78,525
General and administrative<br>expenses	(892)	(1,017)	125	(238)	(224)	(14)	(245)	(305)	60	(393)	(529)	136	(118)	(118)	-	(304)	(559)	255	(125)	(122)	(3)	(2,315)	(2,874)	559
Selling<br>expenses	(763)	(571)	(192)	(91)	(107)	16	(212)	(128)	(84)	(248)	(340)	92	-	-	-	-	-	-	(12)	(23)	11	(1,326)	(1,169)	(157)
Other operating results,<br>net	(41)	(117)	76	(32)	(44)	12	(29)	(308)	279	(22)	123	(145)	-	(26)	26	-	-	-	72	(338)	410	(52)	(710)	658
Profit / (Loss)<br>from operations	1,817	(37,033)	38,850	26,521	2,673	23,848	12,673	678	11,995	174	724	(550)	(119)	(129)	10	(304)	(559)	255	596	(844)	1,440	41,358	(34,490)	75,848
Share of profit of associates and<br>joint ventures	-	-	-	-	-	-	-	(40)	40	-	-	-	7,942	(3,960)	11,902	-	-	-	(356)	(2,656)	2,300	7,586	(6,656)	14,242
Segment profit /<br>(loss)	1,817	(37,033)	38,850	26,521	2,673	23,848	12,673	638	12,035	174	724	(550)	7,823	(4,089)	11,912	(304)	(559)	255	240	(3,500)	3,740	48,944	(41,146)	90,090

Operations Center in Israel

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Israel for the fiscal years ended June 30, 2020 and 2019.

	Real Estate			Supermarkets			Telecommunications			Corporate			Others			Total
	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.	06.30.20	06.30.19	Var.
In million of<br>ARS
Revenues	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Gross profit / (loss)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net gain from<br>fair value adjustment of investment properties	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	-	-	-	-	-	(99)	(115)	16	-	-	-	(99)	(115)	16
Selling<br>expenses	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	-	-	-	-	-	(99)	(115)	16	-	-	-	(99)	(115)	16
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	-	-	-	-	-	(99)	(115)	16	-	-	-	(99)	(115)	16

Results of operations for the fiscal years ended June 30, 2020 and 2019.

Revenues 2020 vs. 2019

Total revenues, according to the income statement, increased by ARS $2,601 million (6.5%), from ARS 40,052 million in the fiscal year ended June 30, 2019 to ARS 42,653 million in the fiscal year ended June 30, 2020. Such increase was mainly due to a ARS 7.448 million increase in the Agricultural Business, which went from ARS 19,997 million in the fiscal year ended June 30, 2019 to ARS 27,445 million in the fiscal year ended June 30, 2020, and a ARS 4,847 million increase in the Urban Properties and Investment Business.

Revenues from our joint ventures increased by ARS 35 million (35%), from a loss of ARS 100 million in the fiscal year ended June 30, 2019 (out of which ARS 81 million are allocated to the Shopping Malls segment; ARS 18 million to the Offices segment, and ARS 1 million to the Sales and Developments segment of the Operations Center in Argentina) to a loss of ARS 65 million in the fiscal year ended June 30, 2020 (out of which ARS 56 million are allocated to the Shopping Malls segment and ARS 9 million to the Offices segment of the Operations Center in Argentina).

In turn, total revenues on account of building administration expenses and promotion fund decreased by ARS 653 million (16.4%), from ARS 3,990 million in the fiscal year ended June 30, 2019 to ARS 3,337 million in the fiscal year ended June 30, 2020.

Revenues from inter-segment transactions varied by ARS 314 million (55.4%), from ARS 567 million in the fiscal year ended June 30, 2019 to ARS 881 million in the fiscal year ended June 30, 2020.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total revenues increased by ARS 7,749 million (37.8%), from ARS 20,522 million in the fiscal year ended June 30, 2019 to ARS 28,271 million in the fiscal year ended June 30, 2020.

Agricultural Production. Revenues from the Agricultural Production segment rose by 54.8% from ARS 11,952 million during the fiscal year ended June 30, 2019 to ARS 18,503 million during the fiscal year ended June 30, 2020. Such increase is mainly attributable to:

●

An ARS 4,828 million increase in revenues from crop sales, resulting from a 5.1% decrease in the average price of crops sold, from ARS 14,890 per ton in fiscal year ended June 30, 2019 to ARS 14,130 per ton in fiscal year ended June 30, 2020, offset by an increase of 368,865 tons in the volume of crops sold in fiscal year ended June 30, 2020 as compared to the previous fiscal year.

●

An ARS 566 million rise in revenues from sugarcane sales, resulting from an increase of 260,753 tons (13%) in the volume of sugarcane sold in the fiscal year ended June 30, 2020 compared to the previous fiscal year, coupled with a 6% rise in the average price of sugarcane sold, from ARS 1,452 per ton in fiscal year ended June 30, 2019 to ARS 1,536 per ton in fiscal year ended June 30, 2020, as a result of an improvement in sugarcane quality (higher TRS, i.e., total recoverable sugar);

●

An ARS 1,127 million increase in revenues from cattle sales, primarily attributable to a 45% rise in tons of cattle sold in the fiscal year ended June 30, 2020 compared to the previous fiscal year, coupled with a 57% rise in the average price of cattle; and

●

An ARS 30 million increase in revenues from leases and services attributable to: (i) an increase of ARS 271 million (70%) in revenues from seed production mainly caused by an increase in the hectares leased to third parties in Brazil plus the collection of an additional amount on account of productivity over the yields, offset by a decrease in the sales price of the corn and soybean seed service in Argentina; and (ii) a ARS 72 million decrease in revenues from feedlot services and pastures.

Others. Revenues from the Others segment increased by 14.0% from ARS 8,570 million during the fiscal year ended June 30, 2019 to ARS 9,768 million during the fiscal year ended June 30, 2020. Such increase is mainly attributable to:

●

An ARS 500 million increase in revenues from agro-industrial activities, due to the fact that, although the volume remained stable, in this fiscal year the share of sales to the external market increased over total sales, generating a double impact on gain (loss) by the effect of the increase in the exchange rate. The volume of domestic sales decreased, but prices remained in line with the inflation for the fiscal year.

●

An ARS 698 million increase in revenues from sales on consignment, brokerage fees and others, due to a higher volume of crop trading transactions and sales of supplies in the current year, boosted by the effect of devaluation.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total revenues decreased by ARS 4,216 million (26%), from ARS 16,207 million in the fiscal year ended June 30, to ARS 11,991 million in the fiscal year ended June 30.

Operations Center in Argentina

Shopping Malls. Revenues from the Shopping Malls segment decreased by 30.5% from ARS 9,195 million during the fiscal year ended June 30, 2019 to ARS 6,389 million during the fiscal year ended June 30, 2020. Such fall is mainly attributable to: (i) a ARS 2,056 million decrease in revenues from permanent and variable leases (total sales of our lessees dropped from ARS 101,665 million during the fiscal year ended June 30, 2019 to ARS 75,321 million during the fiscal year ended June 30, 2020; (ii) an ARS 211 million decrease in Other revenues mainly attributable to the termination of the Walmart agreement; (iii) an ARS 200 million decrease in revenues from parking fees; and (iv) an ARS 163 million decrease in revenues from admission fees.

Offices. Revenues from the Offices segment increased by 5.4% from ARS 2,408 million during the fiscal year ended June 30, 2019 to ARS 2,539 million during the fiscal year ended June 30, 2020. The variation is mainly attributable to a 6% increase in revenues from leases from ARS 2,365 million during the fiscal year ended June 30, 2020 to ARS 2,508 million during the fiscal year ended June 30, 2020, mainly as a result of an increase in the rental of the PH Office Park and Zeta Buildings and the effect of the exchange rate variation.

Sales and Developments. Revenues from the Sales and Developments segment recorded a 34.3% decrease, from ARS 1,205 million during the fiscal year ended June 30, 2019 to ARS 791 million during the fiscal year ended June 30, 2020. This segment often varies significantly from fiscal year to fiscal year due to the non-recurrence of different sales transactions carried out by the Group over time.

Hotels. Revenues from our Hotels segment decreased by 31.6% from ARS 3,179 million during the fiscal year ended June 30, 2019 to ARS 2,176 million during the fiscal year ended June 30, 2020, mainly due to a decrease in revenues from Hoteles Argentino S.A.U. as a result of the deflagging process and due to the fact that revenues were significantly affected by a decline in the activity since March due to the outbreak of the COVID-19 pandemic.

International. Revenues from our International segment decreased by 20% to ARS 15 million during the fiscal year ended June 30, 2020 due to an ARS 12 million decrease in revenues from leases.

Corporate. Revenues associated with our Corporate segment showed no variations for the reported fiscal years.

Others. Revenues from the Others segment decreased by 59% from ARS 205 million during the fiscal year ended June 30, 2019 to ARS 84 million during the fiscal year ended June 30, 2020, mainly due to a decrease in revenues from La Arena and LA RURAL S.A. – OFC S.R.L. – OGDEN S.A. – ENTRETENIMIENTO UNIVERSAL S.A. – Unión Transitoria – (administrator of the Centro de Convenciones y Exposiciones de la Ciudad de Buenos Aires).

Costs 2020 vs. 2019

Total costs, according to the income statement, increased by ARS 5,078 million (20.5%), from ARS 24,714 million in the fiscal year ended June 30, 2019 to ARS 29,792 million in the fiscal year ended June 30, 2020. This was mainly due to a ARS 6,215 million increase in the Agricultural Business, from ARS 17,191 million in the fiscal year ended June 30, 2019 to ARS 23,406 million in the fiscal year ended June 30, 2020, and a ARS 1,137 million increase in the Urban Properties and Investment Business.

Costs from our joint ventures decreased by ARS 15 million (20.8%), from a profit of ARS 72 million in the fiscal year ended June 30, 2019 (out of which ARS 17 million are allocated to the Shopping Malls segment; ARS 45 million to the Offices segment and ARS 9 million to the Sales and Developments segment of the Operations Center in Argentina) to a profit of ARS 57 million in the fiscal year ended June 30, 2020 (out of which ARS 7 million are allocated to the Shopping Malls segment; ARS 43 million to the Offices segment and ARS 7 million to the Sales and Developments segment of the Operations Center in Argentina).

In turn, total costs on account of building administration expenses and promotion fund decreased by ARS 673 million (16.2%), from ARS 4,150 million in the fiscal year ended June 30, 2019 to ARS 3,477 million in the fiscal year ended June 30, 2020.

Costs from inter-segment transactions varied by ARS 370 million (175.4%), from ARS 211 million in the fiscal year ended June 30, 2019 to ARS 581 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account profit / (loss) from operations from our joint businesses and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total costs increased by ARS 6,106 million (29.3%), from ARS 20,847 million in the fiscal year ended June 30, 2019 to ARS 26,953 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 6,585 million increase in the Agricultural Business and a ARS 479 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs increased by ARS 6,585 million (37.8%), from ARS 17,402 million in the fiscal year ended June 30, 2019 to ARS 23,987 million in the fiscal year ended June 30, 2020. The costs of the Agricultural Business, measured as a percentage of revenues from this segment, stayed constant at 84.8% during the fiscal year ended June 30, 2019 and 2020.

Agricultural Production. The costs of the Agricultural Production segment increased by 55.0% from ARS 10,191 million during the fiscal year ended June 30, 2019 to ARS 15,798 million during the fiscal year ended June 30, 2020, primarily as a consequence of:

●

An ARS 3,901 million increase in costs of crop sales, mainly resulting from an 8% decrease in the average cost per ton of crops sold in the fiscal year ended June 30, 2020, from ARS 17,253 million in the fiscal year ended June 30, 2019 to ARS 15,637 million in the fiscal year ended June 30, 2020; offset by an increase of 368,865 tons in the volume of crops sold in the fiscal year ended June 30, 2020 as compared to the previous fiscal year.

●

An ARS 734 million increase in the costs of sugarcane sales, mainly as a result of an increase of 260,753 tons (13%) in the volume of sugarcane sold in the fiscal year ended June 30, 2020 compared to the previous fiscal year, coupled with a 14% rise in the average cost of sugarcane per ton sold in the fiscal year, from ARS 1,266 per ton in the fiscal year ended June 30, 2019 to ARS 1,447 per ton in the fiscal year ended June 30, 2020;

●

An ARS 966 million increase in the costs of cattle and milk sales, mainly as a result of the additional 4,220 tons of cattle sold in the fiscal year ended June 30, 2020 compared to the previous fiscal year, coupled with a 54% rise in the average cost of cattle sold; and

●

An ARS 6 million increase in costs of leases and services, mainly attributable to an ARS 113 million increase in the Feedlot service cost and an ARS 74 million drop in lease costs and seed production.

Costs of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 85.3% during the fiscal year ended June 30, 2019 to 85.4% during the fiscal year ended June 30, 2020.

Land transformation and sales. The costs of the Land transformation and sales segment increased by 4.2% from ARS 26 million during the fiscal year ended June 30, 2019 to ARS 27 million during the fiscal year ended June 30, 2020.

Others. The costs of the Others segment increased by 13.6% from ARS 7,185 million during the fiscal year ended June 30, 2019 to ARS 8,162 million during the fiscal year ended June 30, 2020, mainly as a result of:

●

An ARS 294 million increase in agro-industrial costs, mostly driven by a rise in acquisition costs of all of its components.

●

An ARS 693 million increase in other segments, mainly triggered by the sale of supplies.

The costs of the Others segment, measured as a percentage of revenues from this segment, decreased from 83.8% during the fiscal year ended June 30, 2019 to 83.6% during the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs decreased by ARS 479 million (13.9%), from ARS 3,445 million in the fiscal year ended June 30, to ARS 2,966 million in the fiscal year ended June 30, 2020. Costs, according to information by segments, decreased by 13.9%. Likewise, total costs, measured as a percentage of total revenues, according to information by segments, increased from 21.1% during the fiscal year ended June 30, 2019 to 24.5% during the fiscal year ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Costs associated with the Shopping Malls segment decreased by 26.9%, from ARS 835 million during the fiscal year ended June 30, 2019 to ARS 610 million during the fiscal year ended June 30, 2020, mainly due to: (i) a decrease in leases and building administration expenses of ARS 140 million (mainly caused by the absorption of the building administration expenses deficit during the previous fiscal year); and (ii) a decrease in salaries, social security and other personnel expenses of ARS 84 million. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, increased from 9.1% during the fiscal year ended June 30, 2019 to 9.6% during the fiscal year ended June 30, 2020.

Offices. Costs associated with the Offices segment decreased by 5.7%, from ARS 164 million during the fiscal year ended June 30, 2019 to ARS 155 million during the fiscal year ended June 30, 2020, mainly due to (i) an increase in leases and building administration expenses of ARS 37 million, offset by (ii) a decrease in maintenance expenses of ARS 14 million; and (iii) a decrease in amortization and depreciation of ARS 12 million. Costs associated with the Offices segment, measured as a percentage the revenues from this segment, decreased from 6.8% during the fiscal year ended June 30, 2019 to 6.1% during the fiscal year ended June 30, 2020.

Sales and Developments. Costs associated with our Sales and Developments segment recorded a 30.8% increase from ARS 568 million during the fiscal year ended June 30, 2019 to ARS 743 million during the fiscal year ended June 30, 2020, mainly due to (i) the barter of the Coto air space, thus triggering costs in the nature of fees and compensation for services of ARS 57 million and an increase in the cost of goods and services sold of ARS 19 million and (ii) higher costs of goods and services sold related to Catalinas of ARS 52 million. Costs associated with the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 47.1% during the fiscal year ended June 30, 2019 to 93.9% during the fiscal year ended June 30, 2020.

Hotels. Costs associated with the Hotels segment decreased by 21.7%, from ARS 1,709 million during the fiscal year ended June 30, 2019 to ARS 1,339 million during the fiscal year ended June 30, 2020, mainly as a result of (i) a ARS 203 million decrease in the costs of salaries, social security and other personnel expenses; and (ii) a ARS 73 million decrease in maintenance, repairs and services; (iii)a ARS 41 million decrease in food, beverages and other hotel expenses, and (iv) a ARS 35 million increase in fees and compensation for services. Costs associated with the Hotels segment, measured as a percentage of revenues from this segment, increased from 53.8% during the fiscal year ended June 30, 2019 to 61.6% during the fiscal year ended June 30, 2020.

International. Costs associated with the International segment increased 116.7%, amounting to ARS 13 million during the fiscal year ended June 30, 2020 and ARS 6 million during the fiscal year ended June 30, 2019, mainly due to (i) an ARS 5 million increase in maintenance, repairs and services; (ii) an ARS 1 million increase in fees and compensation for services; and (iii) an ARS 1 million increase in taxes, fees and contributions. Costs associated with the International segment, measured as a percentage of revenues from this segment, increased from 40% during the fiscal year ended June 30, 2019 to 108.3% during the fiscal year ended June 30, 2020.

Corporate. Costs associated with the Corporate segment did not vary in the reported fiscal years.

Others. Costs associated with the Others segment decreased by 35.0%, from ARS 163 million during the fiscal year ended June 30, 2019 to ARS 106 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) an ARS 37 million decrease in leases and building administration expenses; (ii) an ARS 32 million decrease in taxes, fees and contributions; and (iii) an ARS 23 million decrease in fees and compensation for services; partially offset by (iv) an ARS 39 million increase in depreciation and amortization.

Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2020 vs. 2019

The profit from the total initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest, according to the income statement, increased by ARS 561 million (22.6%), from ARS 2,482 million in the fiscal year ended June 30, 2019 to ARS 3,043 million in the fiscal year ended June 30, 2020.

There is no profit / (loss) from our joint ventures in relation to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest.

There is no profit / (loss) on account of building administration expenses and promotion fund in relation to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest.

The profit/ (loss) related to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest from inter-segment transactions varied by ARS 71 million (24.4%), from ARS 291 million in the fiscal year ended June 30, 2019 to ARS 220 million in the fiscal year ended June 30, 2020.

Such variation was mainly as a result of:

●

Profits from cattle production of ARS 171 million, mainly generated by Argentina, due the fact that cattle prices during this fiscal year had a better performance vis-à-vis inflation, thus generating a positive variation both in holding profit / (loss) and in profit / (loss) from sales, also favored by an increase in head of cattle sold compared to the previous fiscal year (170%);

●

A decrease in profits from crop production of ARS 324 million, mainly due to a decrease in profits from soybean production as a result of a greater planted area;

●

An increase in profits from sugarcane production of ARS 691 million, mainly in Brazil, as a result of better yields, prices and an increase in total recoverable sugar (TRS) during this fiscal year; and

●

An increase in profits from the agro-industrial activity of ARS 4 million

Changes in the net realizable value of agricultural produce after harvest 2020 vs. 2019

Profits /(losses) from total changes in the net realizable value of agricultural produce after harvest, according to the income statement, increased by ARS 753 million (1,637%), from a loss of ARS 46 million in the fiscal year ended June 30, 2019 to a profit of ARS 707 million in the fiscal year ended June 30, 2020.

Such variation is mainly generated by Argentina, due to the increase in prices as a result of the Peso depreciation, boosted by a bigger grain stock obtained during the 19-20 crop year.

Gross profit 2020 vs. 2019

As a result of the above mentioned factors, total gross profit, according to the income statement, decreased by ARS 1,163 million (6.5%), from ARS 17,774 million in the fiscal year ended June 30, 2019 to ARS 16,611 million in the fiscal year ended June 30, 2020. This was mainly due to the ARS 2,547 million increase in the Agricultural Business, from ARS 5,242 million in the fiscal year ended June 30, 2019 to ARS 7,789 million in the fiscal year ended June 30, 2020, and a ARS 3,710 million decrease in the Urban Properties and Investment Business.

Gross (profit) / loss from our joint ventures increased by ARS 20 million (71.4%), from a loss of ARS 28 million in the fiscal year ended June 30, 2019 to a loss of ARS 8 million in the fiscal year ended June 30, 2020.

In turn, total gross (profit) / loss on account of building administration expenses and promotion fund increased by ARS 20 million (12.5%), from a loss of ARS 160 million in the fiscal year ended June 30, 2019 (out of which a loss of ARS 155 million derives from the Shopping Malls segment and a loss of ARS 6 million derives from the Offices segment) to a loss of ARS 140 million in the fiscal year ended June 30, 2020 (out of which a loss of ARS 126 million derives from the Shopping Malls segment and another loss of ARS 12 million derives from the Offices segment).

Gross profit / (loss) generated by inter-segment transactions varied by ARS 15 million (23.3%), from ARS 65 million in the fiscal year ended June 30, 2019 to ARS 80 million in the fiscal year ended June 30, 2020.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit rose by ARS 2,549 million (48.4%), from ARS 5,265 million in the fiscal year ended June 30, 2019 to ARS 7,814 million in the fiscal year ended June 30, 2020. Gross profit from the Agricultural Business, measured as a percentage of revenues from this segment, increased from 25.7% during the fiscal year ended June 30, 2019 to 27.6% during the fiscal year ended June 30, 2020.

Agricultural Production. Gross profit from this segment increased by 59.7% from ARS 3,900 million in the fiscal year ended June 30, 2019 to ARS 6,224 million in the fiscal year ended June 30, 2020.

Land Transformation and Sales. Gross profit from this segment decreased by 3.8% from ARS 26 million in the fiscal year ended June 30, 2019 to ARS 27 million in the fiscal year ended June 30, 2020.

Others. Gross profit from this segment increased by 16.2% from ARS 1,391 million in the fiscal year ended June 30, 2019 to ARS 1,617 million in the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit increased by ARS 3,737 million (29.3%), from ARS 12,762 million in the fiscal year ended June 30, 2019 to ARS 9,025 million in the fiscal year ended June 30, 2020. The total gross profit, measured as a percentage of total revenues, according to information by segments, decreased from 78.7% during the fiscal year ended June 30, 2019 to 75.3% during the fiscal year ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Gross profit from the Shopping Malls segment decreased by 30.9%, from ARS 8,360 million during fiscal year ended June 30, 2019 to ARS 5,779 million during fiscal year ended June 30, 2020, mainly as a result of a decrease in total sales of our lessees in real terms, thus resulting in lower percentage rentals under our lease agreements. Gross profit from the Shopping Malls segment as a percentage of the segment revenues, slightly decreased from 90.9% during fiscal year ended June 30, 2019 to 90.5% during fiscal year ended June 30, 2020.

Offices. Gross profit from the Offices segment increased by 6.2% from ARS 2,244 million during fiscal year ended June 30, 2019 to ARS 2,384 million during fiscal year ended June 30, 2020. Gross profit from the Offices segment, measured as percentage of revenues from this segment, remained stable at 93.2% during fiscal years ended June 30, 2019 and 2020.

Sales and developments. Gross profit from the Sales and Developments segment decreased by 92.5%, from ARS 637 million during the fiscal year ended June 30, 2019 to ARS 48 million during the fiscal year ended June 30, 2020. Gross profit from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 52.9% during the fiscal year ended June 30, 2019 to 6.1% during the fiscal year ended June 30, 2020.

Hotels. Gross profit from the Hotels segment decreased by 43.1% from ARS 1,470 million during the fiscal year ended June 30, 2019 to ARS 837 million during the fiscal year ended June 30, 2020. Gross profit from the Hotels segment, measured as a percentage of revenues from this segment, decreased from 46.2% during the fiscal year ended June 30, 2019 to 38.4% during the fiscal year ended June 30, 2020.

International. Gross profit from the International segment decreased by 111.1%, recording a gross profit of ARS 9 million during the fiscal year ended June 30, 2019 and a gross loss of ARS 1 million during the fiscal year ended June 30, 2020. Gross (profit) / loss from the International segment, measured as a percentage of revenues from this segment, decreased from a 60% profit during the fiscal year ended June 30, 2019 to a negative 8.3% loss during the fiscal year ended June 30, 2020.

Corporate. Gross profit from the Corporate segment did not show any variations during the reported fiscal years.

Others. Gross profit from the Others segment decreased by 152.4% from a profit of ARS 42 million during the fiscal year ended June 30, 2019 to a loss of ARS 22 million during the fiscal year ended June 30, 2020. Gross profit from the Others segment, measured as a percentage of revenues from this segment, decreased from a 20.5% profit during the fiscal year ended June 30, 2019 to a negative 26.2% loss during the fiscal year ended June 30, 2020.

Net gain (loss) from changes in the fair value of investment properties 2020 vs. 2019

Total gain (loss) from changes in the fair value of investment properties, according to the income statement, increased by ARS 78,178 million (187.9%), from a loss of ARS 41,596 million in the fiscal year ended June 30, 2019 to a gain of ARS 36,582 million in the fiscal year ended June 30, 2020. This was mainly due to a ARS 839 million increase in the Agricultural Business, from a loss of ARS 0 million in the fiscal year ended June 30, 2019 to a gain of ARS 839 million in the fiscal year ended June 30, 2020, and a ARS 77,339 million increase in the Urban Properties and Investment Business.

The gain (loss) from changes in the fair value of investment properties from our joint ventures decreased by ARS 1,186 million (131.3%), from a gain of ARS 903 million in the fiscal year ended June 30, 2019 to a loss of ARS 283 million in the fiscal year ended June 30, 2020.

There is no gain / (loss) from building administration expenses and promotion fund in relation to the changes in the fair value of investment properties.

There is no gain / (loss) from inter-segment transactions in relation to the changes in the fair value of investment properties.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), the total net gain/(loss) from changes in the fair value of investment properties increased by ARS 79,364 million (186.7%), from a loss of ARS 42,499 million in the fiscal year ended June 30, 2019 to a gain of ARS 36,865 million in the fiscal year ended June 30, 2020. Such variation was mainly due to an ARS 839 million increase in the Agricultural Business and an ARS 78,525 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total net gain /(loss) from changes in the fair value of investment properties increased by ARS 839 million (100%), from ARS 0 million in the fiscal year ended June 30, 2019 to ARS 839 million in the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total net gain / (loss) from changes in the fair value of investment properties increased by ARS 78,525 million (184.8%), from a loss of ARS 42,499 million in the fiscal year ended June 30, 2019 to ARS 36,026 million in the fiscal year ended June 30, 2020. Excluding the changes in the fair value of investment properties from the Operations Center in Israel, changes in the fair value of investment properties, according to information by segments, decreased by 184.8%.

Operations Center in Argentina

The net impact of prices in pesos of our properties was primarily a consequence of the changes in the macroeconomic conditions: (i) a decrease in the estimated GDP growth rate in Argentina for 2020 from 2.2% to -11%, (ii) between June 2019 and June 2020, the Argentine Peso depreciated 66% against the U.S. Dollar (from ARS 42.26 per USD1 to ARS 70.26 per USD1), which mainly generated a reduction in the estimated cash flow in U.S. Dollars from our Shopping Malls segment; and (iii) an increase of 8 basis points in the discount rate in dollars used to discount the estimated cash flow from the Shopping Malls segment.

The Argentine office market is a liquid market, in which a significant number of counterparties participate and frequently carry out purchase and sale transactions. This situation shows sales prices that are relevant and representative in the market. In addition, lease agreements are denominated in dollars for an average 3-year term, thus generating a stable dollar-denominated cash flow from this business. In this sense, the “market approach” method (value of comparable assets in the market) is used to assess the fair value of the Offices and Others segments, the value per square meter being the most representative metrics.

Since September 2019, the real estate market started to show certain changes in its operations as a result of the implementation of regulations in the foreign exchange market. Consequently, the most probable scenario is that any sale of office buildings / land reserves be paid in pesos at an implied exchange rate higher than the official rate, which is shown in the transactions carried out by the Company before and after the end of these financial statements. Therefore, the Company has valued its offices buildings and land reservations in pesos at the end of the year on the basis of the above-described situation, which derives in a gain compared to previously booked values.

Gain from disposal of farmlands 2020 vs. 2019

The total gain from disposal of farmlands, according to the income statement, increased by ARS 187 million (26.0%), from ARS 715 million in the fiscal year ended June 30, 2019 to ARS 902 million in the fiscal year ended June 30, 2020.

Based on the information by segment (taking into account all our joint ventures and inter-segment eliminations), the total gain from disposal of farmlands increased by ARS 187 million (26.0%), from ARS 715 million in the fiscal year ended June 30, 2019 to ARS 902 million in the fiscal year ended June 30, 2020.

Fiscal year ended June 30, 2020

●

On June 30, 2020, BrasilAgro entered into an agreement for the sale of 1,875 hectares (1,500 arable hectares) of the Jatobá land. The sales value was ARS 610 million, out of which ARS 68 million have already been collected. The balance will be paid in six annual installments. The Group recognized a gain of ARS 445 million as a result of this transaction.

●

On May 29, 2020, BrasilAgro entered into an agreement for the sale of 105 arable hectares in the Alto Taquarí land. The sales value was ARS 150 million. The buyer made a down payment of ARS 24 million. The balance will be paid in five annual installments. The Group recognized a gain of ARS 108 million as a result of this transaction.

●

On October 29, 2019, the Company entered into an agreement for the sale of a total area of 85 hectares (65 arable hectares) of the Alto Taquarí establishment, a rural property located in the Alto Taquarí municipality, in the aggregate amount of ARS 104 million. On that same date, the buyer paid the first installment of 14,300 soybean bags in the amount of ARS 19 million. The balance will be paid in four annual installments. The Group recognized a gain of ARS 73 million for this transaction.

●

On July 2019, the Group, through its subsidiary BrasilAgro, entered into a purchase-sale agreement for 1,134 hectares (893 arable hectares) of the Jatobá Establishment, a rural property located in the city of Jaborandi – BA. The sales price was 302 soybean bags per arable hectare or ARS 394 million. On September 2, 2019, the buyer paid the first installment consisting in 38,000 soybean bags in the amount of ARS 48 million. The balance will be paid in six annual installments. Delivery of possession and the gain of the transaction was recognized on September 30, 2019, amounting to approximately ARS 293 million.

Fiscal year ended June 30, 2019

●

In June 2019, the Group, through its subsidiary BrasilAgro, entered into an agreement for the sale of 3,124 hectares of the Jatobá land. The sales price was 285 soybean bags per hectare or ARS 835 million. The buyer made a down payment of ARS 89 million and will complete payment of the first installment (ARS 89 million) by July 31, 2019. The balance, i.e. 563,844 soybean bags, will be paid in six annual installments. Delivery of possession and the gain of the transaction will be recognized on June 30, 2020, amounting to ARS 617 million.

●

On November 21, 2018, the Group, through its subsidiary BrasilAgro, entered into an agreement for the sale of 103 hectares of the Alto Taquarí land. The sales price was 1,100 soybean bags per arable hectare equivalent to ARS 123 million. The buyer made a down payment of 22,656 soybean bags equivalent to ARS 18 million; the balance will be paid in eight semi-annual installments. The Group has recognized a gain of ARS 98 million as a result of this transaction in this fiscal year.

General and administrative expenses 2020 vs. 2019

Total general and administrative expenses, according to the income statement, decreased by ARS 683 million (15%), from ARS 4,553 million in the fiscal year ended June 30, 2019 to ARS 3,870 million in the fiscal year ended June 30, 2020. This was mainly due to a ARS 120 million decrease in the Agricultural Business, from ARS 1,629 million in the fiscal year ended June 30, 2019 to ARS 1,509 million in the fiscal year ended June 30, 2020, and a ARS 563 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an increase in the Operations Center in Israel of ARS 16 million, offset by a decrease in the Operations Center in Argentina of ARS 547 million.

General and administrative expenses from our joint ventures decreased by ARS 1 million (5.9%), from ARS 17 million in the fiscal year ended June 30, 2019 to ARS 16 million in the fiscal year ended June 30, 2020.

There are no profits / (losses) on account of building administration expenses and promotion fund associated with general and administrative expenses.

General and administrative expenses from inter-segment transactions decreased by ARS 5 million (8.3%), from ARS 60 million in the fiscal year ended June 30, 2019 to ARS 55 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those relating to building administration expenses and collective promotion fund and business inter-segment transactions), total general and administrative expenses decreased by ARS 689 million (14.9%), from ARS 4,630 million in the fiscal year ended June 30, 2019 to ARS 3,941 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 114 million decrease in the Agricultural Business and an ARS 575 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 16 million, and a decrease in the Operations Center in Argentina of ARS 575 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total general and administrative expenses decreased by ARS 114 million (7.0%), from ARS 1,641 million in the fiscal year ended June 30, 2019 to ARS 1,527 million in the fiscal year ended June 30, 2020. General and administrative expenses from the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 8.0% during the fiscal year ended June 30, 2019 to 5.4% during the fiscal year ended June 30, 2020.

Agricultural Production. General and administrative expenses associated with the Agricultural Production segment decreased by 0.7%, from ARS 1,032 million in the fiscal year ended June 30, 2019 to ARS 1,025 million in the fiscal year ended June 30, 2020, mainly due to a ARS 77 million increase in expenses associated with crop operations; a ARS 48 million decrease in expenses associated with sugarcane operations: a ARS 13 million decrease in expenses associated with cattle activities; a ARS 23 million decrease in expenses associated with the agricultural lease and services business. General and administrative expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 8.6% during the fiscal year ended June 30, 2019 to 5.5% during the fiscal year ended June 30, 2020.

Land Transformation and Sales. General and administrative expenses associated with the Land Transformation and Sales segment remained stable at ARS 3 million in the fiscal years ended June 30, 2019 and 2020.

Corporate. General and administrative expenses associated with the Corporate segment decreased by 35.4%, from ARS 295 million during the fiscal year ended June 30, 2019 to ARS 191 million during the fiscal year ended June 30, 2020.

Others. General and administrative expenses associated with the Others segment decreased by 1.0%, from ARS 311 million during the fiscal year ended June 30, 2019 to ARS 308 million during the fiscal year ended June 30, 2020. General and administrative expenses of the Others segment, measured as a percentage of revenues from this segment, decreased from 3.6% during the fiscal year ended June 30, 2019 to 3.2% during the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total general and administrative expenses decreased by ARS 575 million (19.2%), from ARS 2,989 million in the fiscal year ended June 30, 2019 (out of which ARS 115 million derive from the Operations Center in Israel and ARS 2,874 million from the Operations Center in Argentina) to ARS 2,414 million in the fiscal year ended June 30, 2020 (out of which ARS 99 million derive from the Operations Center in Israel and ARS 2,315 million from the Operations Center in Argentina). Excluding general and administrative expenses from the Operations Center in Israel, general and administrative expenses, according to information by segments, decreased by 19.4%. In addition, total general and administrative expenses, measured as a percentage of total revenues, according to information by segments, increased from 18.4% during the fiscal year ended June 30, 2019 to 20.1% during the fiscal year ended June 30, 2020, mainly deriving from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total general and administrative expenses, measured as a percentage of total revenues, increased from 17.7% during the fiscal year ended June 30, 2019 to 19.3% during the fiscal year ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Administrative expenses of Shopping Malls decreased by 12.3%, from ARS 1,017 million during the fiscal year ended June 30, 2019 to ARS 892 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) a decrease in salaries, social security and other personnel expenses of ARS 92 million; (ii) a decrease in fees payable to directors of ARS 58 million, partially offset by: (iii) an ARS 20 million increase in amortization and depreciation; and (iv) an ARS 11 million increase in fees and compensation for services. Administrative expenses of the Shopping Malls segment, as a percentage of revenues of this segment, increased from 11.1% during the fiscal year ended June 30, 2019 to 14% during the fiscal year ended June 30, 2020.

Offices. General and administrative expenses of our Offices segment increased 6.3%, from ARS 224 million during the fiscal year ended June 30, 2019 to ARS 238 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) an ARS 7 million increase in fees and consideration for services; and (ii) an ARS 2 million increase in taxes, fees and contributions. General and administrative expenses of the Offices segment, measured as a percentage of revenues from this segment, increased from 9.3% during the fiscal year ended June 30, 2019 to 9.37% during the fiscal year ended June 30, 2020.

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 19.7%, from ARS 305 million during the fiscal year ended June 30, 2019 to ARS 245 million during the fiscal year ended June 30, 2020, mainly as a result of (i) an ARS 28 million decrease in salaries, social security and other personnel expenses; (ii) an ARS 14 million decrease in advertising and other commercial expenses; (iii) an ARS 6 million decrease in leases and building administration expenses; and (iv) an ARS 5 million decrease in fees and compensation for services. General and administrative expenses of the Sales and Developments segment, measured as a percentage of revenues from this segment, increased slightly from 25.3% during the fiscal year ended June 30, 2019 to 31% during the fiscal year ended June 30, 2020.

Hotels. General and administrative expenses associated with our Hotels segment decreased by 25.7% from ARS 529 million during the fiscal year ended June 30, 2019 to ARS 393 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) an ARS 60 million decrease in fees and compensation for services; (ii) an ARS 54 million decrease in salaries, social security and other personnel expenses; (iii) an ARS 16 million decrease in maintenance, security, cleaning, repairs and related expenses, and (iv) an ARS 8 million decrease in taxes, fees and contributions. General and administrative expenses of the Hotels segment, measured as a percentage of revenues from this segment, increased from 16.7% during the fiscal year ended June 30, 2019 to 18.1% during the fiscal year ended June 30, 2020.

International. General and administrative expenses associated with our International segment showed no variations and remained stable at ARS 118 million during the fiscal years ended June 30, 2019 and 2020.

Corporate. General and administrative expenses associated with our Corporate segment decreased by 45.6%, from ARS 559 million during the fiscal year ended June 30, 2019 to ARS 304 million during the fiscal year ended June 30, 2020, mainly as a result of (i) an ARS 215 million decrease in fees payable to directors; and (ii) an ARS 43 million decrease in salaries, social security and other personnel expenses.

Others. General and administrative expenses associated with our Others segment increased by 2.5% from ARS 122 million during the fiscal year ended June 30, 2019 to ARS 125 million during the fiscal year ended June 30, 2020, mainly due to: (i) an ARS 9 million increase in maintenance, repairs and services; partially offset by (ii) an ARS 5 million decrease in taxes, fees and contributions.

Operations Center in Israel

Corporate. General and administrative expenses associated with the Corporate segment decreased from ARS 115 million during the fiscal year ended June 30, 2019 to ARS 99 million during the fiscal year ended June 30, 2020. Such variation was due to an actual depreciation of approximately 13%, offset by a decrease in legal advisors’ fees.

Selling expenses 2020 vs 2019

Total selling expenses, according to the income statement, increased by ARS 1,098 million (36.6%), from ARS 2,998 million in the fiscal year ended June 30, 2019 to ARS 4,096 million in the fiscal year ended June 30, 2020. This was primarily due to an ARS 953 million increase in the Agricultural Business, from ARS 1,837 million in the fiscal year ended June 30, 2019 to ARS 2,790 million in the fiscal year ended June 30, 2020, and an ARS 145 million increase in the Urban Properties and Investment Business.

Selling expenses from our joint ventures increased by ARS 12 million (150.0%), from ARS 8 million in the fiscal year ended June 30, 2019 to ARS 20 million in the fiscal year ended June 30, 2020.

Selling expenses generated by inter-segment transactions increased by ARS 8 million (67%), from ARS 12 million in the fiscal year ended June 30, 2019 to ARS 20 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total selling expenses increased by ARS 1,118 million (37.1%), from ARS 3,018 million in the fiscal year ended June 30, 2019 to ARS 4,136 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 961 million increase in the Agricultural Business and an ARS 157 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses increased by ARS 961 million (52.0%), from ARS 1,849 million in the fiscal year ended June 30, 2019 to ARS 2,810 million in the fiscal year ended June 30, 2020. Selling expenses of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 9.0% during the fiscal year ended June 30, 2019 to 9.9% during the fiscal year ended June 30, 2020.

Agricultural Production. Selling expenses from the Agricultural Production segment increased by 77% from ARS 1,104 million in the fiscal year ended June 30, 2019 to ARS 1,954 million in the fiscal year ended June 30, 2020, mainly as a result of an ARS 747 million increase in selling expenses related to grain trading, an ARS 45 million increase in expenses for sugarcane operations, an ARS 52 million increase in selling expenses for cattle and an ARS 6 million increase in selling expenses associated with leases and agricultural services. Selling expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 9.2% during the fiscal year ended June 30, 2019 to 10.6% during the fiscal year ended June 30, 2020.

Land Transformation and Sales. Selling expenses from the Land Transformation and Sales segment decreased from a loss of ARS 2 million in the fiscal year ended June 30, 2019 to a loss of ARS 1 million in the fiscal year ended June 30, 2020.

Others. Selling expenses from the Others segment increased by 15.1% from ARS 743 million in the fiscal year ended June 30, 2019 to ARS 855 million in the fiscal year ended June 30, 2020, mainly as a consequence of an ARS 117 million increase in selling expenses associated with the agro-industrial business and an ARS 5 million decrease in the selling expenses related to other segments. Selling expenses from the Others segment, measured as a percentage of revenues from this segment, increased from 8.7% during the fiscal year ended June 30, 2019 to 8.8% during the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses increased by ARS 157 million (13.4%), from ARS 1,169 million in the fiscal year ended June 30, 2019 to ARS 1,326 million in the fiscal year ended June 30, 2020. Total selling expenses, measured as a percentage of total revenues, according to information by segments, increased from 7.2% during the period ended June 30, 2019 to 11.1% during the period ended June 30, 2020. Total selling expenses, measured as a percentage of total revenues, increased from 7.2% during the fiscal year ended June 30, 2019 to 11.1% during the period ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Selling expenses of the Shopping Malls segment increased by 33.6%, from ARS 571 million during the fiscal year ended June 30, 2019 to ARS 763 million during the fiscal year ended 2020, mainly as a result of: (i) an increase in the charge of doubtful accounts of ARS 235 million, partially offset by (ii) a decrease in the charge of taxes, rates and contributions of ARS 24 million; (iii) a decrease in the charge of publicity, advertising and other commercial expenses of ARS 11 million; and (iv) a decrease in salaries, social security and other personnel administrative expenses of ARS 4 million. Selling expenses, measured as a percentage of revenues from the Shopping Malls segment, increased from 6.2% during the fiscal year ended June 30, 2019 to 11.9% during the fiscal year ended June 30, 2020.

Offices. Selling expenses associated with our Offices segment decreased by 15% from ARS 107 million during the fiscal year ended June 30, 2019 to ARS 91 million during the fiscal year ended June 30, 2020. Such variation was mainly generated as a result of: (i) an ARS 10 million decrease in publicity, advertising, and other commercial expenses; and (ii) an ARS 10 million decrease in the charge of doubtful accounts. Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, decreased from 4.4% during the fiscal year ended June 30, 2019 to 3.6% during the fiscal year ended June 30, 2020.

Sales and Developments. Selling expenses associated with our Sales and Developments segment increased by 65.5% from ARS 128 million during fiscal year ended June 30, 2019 to ARS 212 million during the fiscal year ended June 30, 2020. Such variation was mainly generated as a result of : (i) an ARS 85 million increase in taxes, rates and contributions; (ii) an ARS 12 million increase in publicity, advertising and other commercial expenses, offset by: (iii) an ARS 8 million decrease in the charge of doubtful accounts; (iv) an ARS 2 million decrease in salaries, social security and other personnel administrative expenses; and (v) an ARS 2 million decrease in fees and compensation for services. Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 10.6% during the fiscal year ended June 30, 2019 to 26.8% during the fiscal year ended June 30, 2020.

Hotels. Selling expenses associated with our Hotels segment decreased by 27.1% from ARS 340 million during the fiscal year ended June 30, 2019 to ARS 248 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) an ARS 47 million decrease in the charge of taxes, rates and contributions; (ii) an ARS 21 million decrease in publicity, advertising and other commercial expenses; (iii) an ARS 12 million decrease in fees and compensation for services; and (iv) an ARS 10 million decrease in salaries, social security and other personnel administrative expenses. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, slightly increased from 10.7% during the fiscal year ended June 30, 2019 to 11.4% during the fiscal year ended June 30, 2020.

International. Selling expenses associated with the International segment remained unchanged in both fiscal years.

Corporate. Selling expenses associated with the Corporate segment remained unchanged in both fiscal years.

Others. Selling expenses associated with our Others segment decreased by 47.8%, from ARS 23 million during the fiscal year ended June 30, 2019 to ARS 12 million during the fiscal year ended June 30, 2020, mainly due to: (i) an ARS 5 million decrease in the charge of doubtful accounts; and (ii) an ARS 4 million decrease in taxes, rates and contributions. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, increased from 11.2% during the fiscal year ended June 30, 2019 to 14.3% during the fiscal year ended June 30, 2020.

Other operating results, net 2020 vs 2019

Total other operating results, net, according to the income statement, increased by ARS 1,383 million (358.3%), from a gain of ARS 386 million in the fiscal year ended June 30, 2019 to a gain of ARS 1,769 million in the fiscal year ended June 30, 2020. This is mainly due to an ARS 902 million decrease in the Agricultural Business, from a gain of ARS 892 million in the fiscal year ended June 30, 2019 to a gain of ARS 1,794 million in the fiscal year ended December June 30, 2020, and an ARS 481 million decrease in the Urban Properties and Investment Business.

Other operating results, net, from our joint ventures decreased by ARS 189 million (90.7%), from a gain of ARS 208 million in the fiscal year ended June 30, 2019 to a gain of ARS 19 million in the fiscal year ended June 30, 2020.

In turn, total other operating results, net, on account of building administration expenses and promotion fund remained unchanged.

Other operating results, net, generated by inter-segment transactions recorded a variation of ARS 4 million (36.4%) from ARS 11 million in the fiscal year ended June 30, 2019 to ARS 7 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total other operating results, net, increased by ARS 1,568 million (917.0%), from ARS 171 million in the fiscal year ended June 30, 2019 to ARS 1,739 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 910 million increase in the Agricultural Business and an ARS 658 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net, increased by ARS 910 million (103.3%), from ARS 881 million in the fiscal year ended June 30, 2019 to ARS 1,791 million in the fiscal year ended June 30, 2020. Other operating results, net, from the Agricultural Business, measured as a percentage of revenues from this segment, increased from 4.3% during the fiscal year ended June 30, 2019 to 6.3% during the fiscal year ended June 30, 2020.

Agricultural Production. Other operating results, net, associated with our Agricultural Production segment increased by ARS 28 million, from a gain of ARS 460 million in the fiscal year ended June 30, 2019 to a gain of ARS 488 million in the fiscal year ended 2020.

Land Transformation and Sales. Other operating results, net, from this segment increased by ARS 775 million from a gain of ARS 263 million in the fiscal year ended June 30, 2019 to a gain of ARS 1,038 million in the fiscal year ended June 30, 2020.

Others. Other operating results, net, associated with the Others segment increased by ARS 107 million, from a gain of ARS 158 million in the fiscal year ended June 30, 2019 to a gain of ARS 265 million in the fiscal year ended June 30, 2020, primarily in connection with the operations of our subsidiary FYO.

Urban Properties and Investment Business

According to the information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net, increased by ARS 658 million (92.7 %), from a net loss of ARS 710 million during the fiscal year ended June 30, 2019 to a net loss of ARS 52 million in the fiscal year ended June 30, 2020. Excluding other operating results, net, from the Operations Center in Israel, other operating results, net, according to information by segments, increased by 92.7%. Total other operating results, net, measured as a percentage of total revenues, decreased from 4.4% during the fiscal year ended June 30, 2019 to 0.4% during the fiscal year ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Other operating results, net, from the Shopping Malls segment increased by 65.1%, from a net loss of ARS 117 million during the fiscal year ended June 30, 2019 to a net loss of ARS 41 million during the fiscal year ended June 30, 2020, mainly as a result of: (i) a lower charge of donations of ARS 58 million; and (ii) an increase in Others of ARS 27 million, mainly due to a loss for indemnification payment recognized in 2019, partially offset by: (iii) an ARS 13 million decrease in interest earned on operating assets. Other operating results, net, from this segment, as a percentage of revenues from this segment, decreased from 1.3% negative during the fiscal year ended June 30, 2019 to 0.6% negative during the fiscal year ended June 30, 2020.

Offices. Other operating results, net, associated with our Offices segment decreased by 27.3%, from a net loss of ARS 44 million during the fiscal year ended June 30, 2019 to a net loss of ARS 32 million during the fiscal year ended June 30, 2020, mainly as a result of an ARS 17 million decrease in the charge for donations, among other items. Other operating results, net, from the Offices segment, measured as a percentage of revenues from this segment, decreased from (1.8%) during the fiscal year ended June 30, 2019 to (1.3%) during the fiscal year ended June 30, 2020.

Sales and Developments. Other operating results, net associated with our Sales and Developments segment increased by 90.6%, from a net loss of ARS 308 million during the fiscal year ended June 30, 2019 to a net loss of ARS 29 million during the fiscal year ended June 30, 2020, mainly due to a lower provision charge for Puerto Retiro writeoff and a reduction in donations, among other items. Other operating results, net, from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from (25.6%) during the fiscal year ended June 30, 2019 to (3.7%) during the fiscal year ended June 30, 2020.

Hotels. Other operating results, net, associated with the Hotels segment decreased by 117.5%, from a net gain of ARS 123 million during the fiscal year ended June 30, 2019 to a net loss of ARS 22 million during the fiscal year ended June 30, 2020, mainly due to a recovery related to a boiler claim during fiscal year 2019. Other operating results, net, from the Hotels segment, measured as a percentage of revenues from this segment, decreased from 3.9% during the fiscal year ended June 30, 2019 to (1%) during the fiscal year ended June 30, 2020.

International. Other operating results, net, from this segment went from a net loss of ARS 26 million during the fiscal year ended June 30, 2019 to ARS 0 to the fiscal year ended June 30, 2020, mainly due to a decrease in donations.

Corporate. Other operating results, net, associated with the Corporate segment showed no variations in the reported fiscal years.

Others. Other operating results, net, from this segment increased by 121.3%, from a net loss of ARS 338 million during the fiscal year ended June 30, 2019 to a net gain of ARS 72 million during the fiscal year ended June 30, 2020, mainly derived from a loss derived from the sale of Tarshop S.A. and to the impairment of goodwill of La Arena for the comparative fiscal year. Other operating results, net, from the Others segment, measured as a percentage of revenues from this segment, decreased from (164.9%) during the fiscal year ended June 30, 2019 to 85.7% during the fiscal year ended June 30, 2020.

Management fees 2020 vs 2019

The company entered into a management agreement with Consultores Asset Management S.A., which provides for payment of fees equivalent to 10% of our profits for advisory services in relation to any matters related to business and investments, such as farming, real estate, finance, hotel, etc. Management fees amounted to ARS 227 million during fiscal year 2020. During fiscal year 2019 no results were recognized on this account.

Operating results 2020 vs 2019

As a result of the factors described above, total operating results, according to the income statement, increased by ARS 77,943 million (257.5%), from a loss of ARS 30,272 million in the fiscal year ended June 30, 2019 to a gain of ARS 47,671 million in the fiscal year ended June 30, 2020. Such variation was mainly due to an ARS 3,415 million increase in the Agricultural Business, from a profit of ARS 3,383 million in the fiscal year ended June 30, 2019 to a profit of ARS 6,798 million in the fiscal year ended June 30, 2020, and an ARS 74,528 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 16 million and an increase in the Operations Center in Argentina of ARS 74,512 million.

Operating results from our joint ventures decreased by ARS 1,344 million (121.3%), from a profit of ARS 1,008 million in the fiscal year ended June 30, 2019 to a loss of ARS 236 million in the fiscal year ended June 30, 2020.

In turn, total operating results on account of building administration expenses and collective promotion fund decreased by ARS 207 million (145.8%), from ARS 142 million in the fiscal year ended June 30, 2019 to ARS 349 million in the fiscal year ended June 30, 2020.

Operating results from inter-segment transactions varied by ARS 8 million (200.0%), from ARS 4 million in the fiscal year ended June 30, 2019 to ARS 12 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total operating results increased by ARS 79,502 million (254.5%), from ARS 31,234 million in the fiscal year ended June 30, 2019 to ARS 48,268 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 3,638 million increase in the Agricultural Business and an ARS 75,864 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 16 million, and an increase in the Operations Center in Argentina of ARS 75,848 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total operating results increased by ARS 3,638 million (107.9%), from ARS 3,371 million in the fiscal year ended June 30, 2019 to ARS 7,009 million in the fiscal year ended June 30, 2020. Operating results of the Agricultural Business, measured as a percentage of revenues from this segment, increased from 16.4% during the period ended June 30, 2019 to 24.8% during the period ended June 30, 2020.

Agricultural Production. Operating results of the Agricultural Production segment increased by ARS 1,509 million, from a profit of ARS 2,224 million in the fiscal year ended June 30, 2019 to a profit of ARS 3,733 million in the fiscal year ended June 30, 2020.

Land Transformation and Sales. Operating results of the Land Transformation and Sales segment increased by ARS 1,801 million, from a profit of ARS 947 million in the fiscal year ended June 30, 2019 to a profit of ARS 2,748 million in the fiscal year ended June 30, 2020.

Corporate. Operating results of this Corporate segment increased by ARS 104 million from a loss of ARS 295 million in the fiscal year ended June 30, 2019 to a loss of ARS 191 million in the fiscal year ended June 30, 2020.

Others. Operating results of the Others segment increased by ARS 224 million from a profit of ARS 495 million in the fiscal year ended June 30, 2019 to ARS 719 million in the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total operating results increased by ARS 75.864 million (219.2%), from a loss of ARS 34,605 million in the fiscal year ended June 30, 2019 (out of which ARS 115 million derive from the Operations Center in Israel and ARS 34,490 million from the Operations Center in Argentina) to a profit of ARS 41,259 million in the fiscal year ended June 30, 2020 (out of which ARS 99 million derive from the Operations Center in Israel and ARS 41,358 million from the Operations Center in Argentina). Excluding the operating results from the Operations Center in Israel, operating results, according to information by segments, decreased by 219.9%. In addition, operating results, measured as a percentage of total revenues, according to information by segments, increased from 213.5% during the fiscal year ended June 30, 2019 to 344.1% during the fiscal year ended June 30, 2020, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total operating results, measured as a percentage of total revenues, increased from 212.8% during the fiscal year ended June 30, 2019 to 344.9% during the fiscal year ended June 30, 2020.

Operations Center in Argentina

Shopping Malls. Operating results of the Shopping Malls segment increased from a loss of ARS 37,033 million during the fiscal year ended June 30, 2019 to a profit of ARS 1,817 million during the fiscal year ended June 30, 2020.

Offices. Operating results associated with our Offices segment increased by 892.2%, from a net profit of ARS 2,673 million during the fiscal year ended June 30, 2019 to a net profit of ARS 26,521 million during the fiscal year ended June 30, 2020. Such variation was mainly due to an increase of ARS 24,404 million in profit/(loss) from fair value adjustments of investment properties. Operating results from the Offices segment, measured as a percentage of revenues from this segment, increased from 111.1% during the fiscal year ended June 30, 2019 to 1,044.7% during the fiscal year ended June 30, 2020.

Sales and Developments. Operating results associated with our Sales and Developments segment increased by 1,769.2%, from a net profit of ARS 678 million during the fiscal year ended June 30, 2019 to a net profit of ARS 12,673 million during the fiscal year ended June 30, 2020. Such increase is mainly associated with the result of changes in the fair value of investment properties. Operating results of the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 56.3% during the fiscal year ended June 30, 2019 to 1,601.6% during the fiscal year ended June 30, 2020.

Hotels. Operating results associated with the Hotels segment decreased by 75.9%, from a net profit of ARS 724 million during the fiscal year ended June 30, 2019 to a net profit of ARS 174 million during the fiscal year ended June 30, 2020. Such decrease is mainly due to Hoteles Argentinos S.A.U. deflag process and the impact generated by a drop in the activities since March, attributable to the COVID-19 pandemic. Operating results associated with the Hotels segment, measured as a percentage of revenues from this segment, decreased from 22.7% during the fiscal year ended June 30, 2019 to 8% during the fiscal year ended June 30, 2020.

International. Operating results associated with our International segment recorded a 7.8% variation from a net loss of ARS 129 million during the fiscal year ended June 30, 2019 to a net loss of ARS 119 million during the fiscal year ended June 30, 2020. Such variation was due to a decrease in donation charges.

Corporate. Operating results associated with our Corporate segment increased by 45.6% from a loss of ARS 559 million during the fiscal year ended June 3, 2019 to a loss of ARS 304 million during the fiscal year ended June 30, 2020 mainly affected by overhead and administrative expenses.

Others. Operating results associated with our Others segment increased from a net loss of ARS 844 million during the fiscal year ended June 30, 2019 to a net profit of ARS 596 million during the fiscal year ended June 30, 2020. The variation is mainly due to a loss derived from the sale of Tarshop, the impairment of goodwill of La Arena during the fiscal year ended June 30, 2019 and a lower negative result associated with interests in associates and joint ventures. Operating results of the Others segment, measured as a percentage of the revenues from this segment, increased from a loss of 411.7% during the fiscal year ended June 30, 2019 to a profit of 709.5% during the fiscal year ended June 30, 2020.

Operations Center in Israel

Corporate. Operating results of the Corporate segment went from a net loss of ARS 115 million during the fiscal year ended June 30, 2019 to a net loss of ARS 99 million during the fiscal year ended June 30, 2020, mainly attributable to profits in the previous fiscal year generated by the sale of an associate.

Share of profit/ (loss) of associates and joint ventures 2020 vs 2019

The total share of profit/(loss) of associates and joint ventures, according to the income statement, increased by ARS 15,654 million (202.6%), from a loss of ARS 7,727 million in the fiscal year ended June 30, 2019 to a profit of ARS 7.927 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 125 million increase in the Agricultural Business, from a gain of ARS 32 million in the fiscal year ended June 30, 2019 to a profit of ARS 157 million in the fiscal year ended June 30, 2020, and an ARS 15,529 million increase in the Urban Properties and Investment Business.

Our share of profit/(loss) of associates and joint ventures, primarily from Cresca (Agricultural Business), Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment), Cyrsa S.A., Puerto Retiro S.A. and Baicom Networks S.A. (Sales and Developments segment), increased by ARS 1,265 million (116.8%), from a loss of ARS 1,083 million in the fiscal year ended June 30, 2019 to a profit of ARS 182 million in the fiscal year ended June 30, 2020.

There are no results on account of building administration expenses and promotion fund corresponding to share of profit/(loss) of associates and joint ventures.

Share of profit/(loss) of associates and joint ventures resulting from inter-segment transactions increased by ARS 22 million (100.0%), from ARS 0 million in the fiscal year ended June 30, 2019 to ARS 22 million in the fiscal year ended June 30, 2020.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), the total share of profit/(loss) of associates and joint ventures increased by ARS 14,242 million (214%), from ARS 6,656 million in the fiscal year ended June 30, 2019 to ARS 7,586 million in the fiscal year ended June 30, 2020. This was mainly due to an ARS 125 million increase in the Agricultural Business and an ARS 14,242 million increase in the Urban Properties and Investment Business.

Agricultural Business

Agricultural Production. The share of profit/(loss) of associates and joint ventures in the Agricultural Production segment decreased by 3.3% from a profit of ARS 61 million in the fiscal year ended June 30, 2019 to a profit of ARS 59 million in the fiscal year ended June 30, 2020.

Others. The operating results in the Others segment rose by 259.2% from a loss of ARS 49 million in the fiscal year ended June 30, 2019 to a profit of ARS 78 million in the fiscal year ended June 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of profit/(loss) of associates and joint ventures increased by ARS 14,242 million (214%), from ARS 6,656 million in the fiscal year ended June 30, 2019 to ARS 7,586 million in the fiscal year ended June 30, 2020. The share of profit/(loss) of associates and joint ventures, according to information by segments, decreased by 214.0%.

Operations Center in Argentina

Shopping Malls. In the information by segments, the share of profit / (loss) of joint venture Nuevo Puerto Santa Fe S.A. is exposed consolidated, line by line in this segment.

Offices. In the information by segments, the share of profit / (loss) of joint venture Quality S.A. is exposed consolidated, line by line in this segment.

Sales and Developments. The share of profit / (loss) of joint ventures Cyrsa S.A. and Puerto Retiro S.A. are exposed consolidated line by line. The share of profit/(loss) of our associate Manibil S.A., which is disclosed in this line, increased by ARS 40 million during the fiscal year ended June 30, 2020.

Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

International. The share of profit / (loss) of associates of this segment increased by 300.6%, from a net loss of ARS 3,960 million during the fiscal year ended June 30, 2019 to a net profit of ARS 7,942 million during the fiscal year ended June 30, 2020, mainly generated by a positive result from our investment in New Lipstick LLC of ARS 8,044 million, offset by a negative result from our investment in Condor Hospitality of ARS 110 million.

Others. The share of profit / (loss) of associates from the Others segment increased by 86.6%, from a net loss of ARS 2,656 million during the fiscal year ended June 30, 2019 to a net loss of ARS 356 million during the fiscal year ended June 30, 2020, mainly as a result of a loss from our investments in Banco Hipotecario S.A. in the amount of ARS 410 million.

Financial results, net 2020 vs 2019

The Group financial results, net recorded a variation of ARS 18,400 million, from a loss of ARS 3,571 million in the fiscal year ended June 30, 2019 to a loss of ARS 21,971 million in the fiscal year ended June 30, 2020. This was mainly due to: (i) an increase in interest expense in the Agricultural Business mainly attributable to the Notes, which increased from 6.33% to 7.96%. Furthermore, indebtedness in dollars increased by USD 348 million due to the issuance of Notes XXV, XXVII, XXVII and XXIX. This was offset by the repayment of the Notes XVIII and XXII in the amount of USD 54 million. In turn, Note XXVI was issued in Pesos in an amount of ARS 1,179 million at Badlar variable interest rate, currently set at 36%. Other impact on interest was due to an increase in ER, as well as interest under IFRS 16 that are not recognized for comparative purposes because same are charged on a prospective basis. As concerns the Real Estate business segment, interest on Notes increased by 61% from ARS 1,314 million to ARS 2,119 million. Increase of overdraft interest mainly derives from an increase in the range of interest rate, from 36% to 150% for fiscal year 2020, whereas in fiscal year 2019 such increase was in the range of 39% to 106%; (ii) Increased loss for exchange difference in the Agricultural Business and the Real Estate segment in the Operations Center in Argentina of approximately ARS 13,824 million, because the exchange difference of the 4th quarter in fiscal year 2020 was the consequence of a Peso depreciation of approximately 66% whereas the inflation of the fiscal year was lower, reaching 43% unlike 4th quarter in 2019 where Peso depreciation and inflation rates were more similar, as Peso depreciation reached 48% whereas the inflation rate ultimately reached 56%. As a result of these variables, the net exchange difference of the inflation effect was considerably higher in this fiscal year; (iii) the main loss in profit/(loss) for derivative financial instruments, in the Agricultural Business segment, is mainly attributed to the BrasilAgro transactions, where transactions in US dollars recorded a significant loss due to the US dollar fluctuation, with an ER that increased from 3.80 to 5.50, together with variations in soybean prices; and (iv) a higher loss of approximately ARS 13,521 million in Profit/(loss) for assessment at fair value of financial assets and liabilities, mainly from the Real Estate Business segment of the Operations Center in Israel, due to changes in the assessment at fair value of CLAL shares. The share price changed from NIS 60.80 to NIS 28.86. As of June 30, 2020, 8.5% of shares are directly held whereas 2.1% are held through swaps.

Income Tax 2020 vs 2019

The Company adopts the deferred tax method to calculate the income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year went from a loss of ARS 571 million during the fiscal year ended June 30, 2019, to a loss of ARS 8,548 million during the fiscal year ended June 30, 2020, out of which a loss of ARS 1,496 million derives from the agricultural business and a loss of ARS 7,052 million derives from the Operations Center in Argentina.

Net profit/(loss) 2020 vs 2019

As a result of the factors described above, our net profit/(loss) for the year, including the effect of discontinued operations, increased by ARS 65,379 million from a net loss of ARS 43,845 million in the fiscal year ended on June 30, 2019 to a net profit of ARS 21,534 million in the fiscal year ended June 30, 2020, out of which a loss of ARS 3,092 million derives from the agricultural business, a profit of ARS 28,249 million derives from the Operations Center in Argentina and a loss of ARS 3,623 million derives from the Operations Center in Israel.

Results of Operations for the Year ended June 30, 2019 compared to the Year ended June 30, 2018

The following table shows a summary of the business lines and a reconciliation between the total profit/(loss) from operations based on segment information and profit/(loss) from operations based on the income statement for the periods ended June 30, 2019 and 2018.

				Urban Properties and Investment business
	Operations Center in Argentina			Operations Center in Israel			Agricultural business			Subtotal			Total segment information			Joint ventures			Adjustments			Elimination of inter-segment transactions and non-reportable assets<br>/ liabilities (iv)			Total Statement of Income / Financial Position
	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.
In<br>million of ARS
Revenues	20,522	16,570	3,952	16,207	14,938	1,269	-	-	-	16,207	14,938	1,269	36,729	31,508	5,221	(100)	(120)	20	3,990	4,723	(733)	(567)	(357)	(210)	40,052	35,754	4,298
Costs	(17,402)	(14,098)	(3,304)	(3,445)	(3,039)	(406)	-	-	-	(3,445)	(3,039)	(406)	(20,847)	(17,137)	(3,710)	72	74	(2)	(4,150)	(4,785)	635	211	163	48	(24,714)	(21,685)	(3,029)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,191	1,646	545	-	-	-	-	-	-	-	-	-	2,191	1,646	545	-	5	(5)	-	-	-	291	151	140	2,482	1,802	680
Changes<br>in the net realizable value of agricultural products after<br>harvest	(46)	572	(618)	-	-	-	-	-	-	-	-	-	(46)	572	(618)	-	-	-	-	-	-	-	-	-	(46)	572	(618)
Gross profit / (loss)	5,265	4,690	575	12,762	11,899	863	-	-	-	12,762	11,899	863	18,027	16,589	1,438	(28)	(41)	13	(160)	(62)	(98)	(65)	(43)	(22)	17,774	16,443	1,331
Net<br>gain from fair value adjustment of investment<br>properties	-	232	(232)	(42,499)	21,326	(63,825)	-	-	-	(42,499)	21,326	(63,825)	(42,499)	21,558	(64,057)	903	(1,135)	2,038	-	-	-	-	-	-	(41,596)	20,423	(62,019)
Gain<br>from disposal of farmlands	715	1,783	(1,068)	-	-	-	-	-	-	-	-	-	715	1,783	(1,068)	-	-	-	-	-	-	-	-	-	715	1,783	(1,068)
General<br>and administrative expenses	(1,641)	(1,487)	(154)	(2,874)	(2,511)	(363)	(115)	(84)	(31)	(2,989)	(2,595)	(394)	(4,630)	(4,082)	(548)	17	43	(26)	-	-	-	60	36	24	(4,553)	(4,003)	(550)
Selling<br>expenses	(1,849)	(1,886)	37	(1,169)	(1,212)	43	-	-	-	(1,169)	(1,212)	43	(3,018)	(3,098)	80	8	17	(9)	-	-	-	12	14	(2)	(2,998)	(3,067)	69
Other<br>operating results, net	881	1,658	(777)	(710)	(59)	(651)	-	-	-	(710)	(59)	(651)	171	1,599	(1,428)	208	46	162	18	(2)	20	(11)	(4)	(7)	386	1,639	(1,253)
Management<br>fees	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(1,568)	1,568	-	-	-	-	(1,568)	1,568
Profit / (Loss) from operations	3,371	4,990	(1,619)	(34,490)	29,443	(63,933)	(115)	(84)	(31)	(34,605)	29,359	(63,964)	(31,234)	34,349	(65,583)	1,108	(1,070)	2,178	(142)	(1,632)	1,490	(4)	3	(7)	(30,272)	31,650	(61,922)
Share<br>of (loss) / profit of associates and joint ventures	12	40	(28)	(6,656)	(4,550)	(2,106)	-	-	-	(6,656)	(4,550)	(2,106)	(6,644)	(4,510)	(2,134)	(1,083)	1,249	(2,332)	-	-	-	-	-	-	(7,727)	(3,261)	(4,466)
Segment profit / (loss)	3,383	5,030	(1,647)	(41,146)	24,893	(66,039)	(115)	(84)	(31)	(41,261)	24,809	(66,070)	(37,878)	29,839	(67,717)	25	179	(154)	(142)	(1,632)	1,490	(4)	3	(7)	(37,999)	28,389	(66,388)

(I)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(II)

Includes gross profit/ (loss) of ARS (130) million and ARS (51) million corresponding to Expenses and Collective Promotion Fund (FPC), as of June 30, 2019 and 2018, respectively.

Agricultural Business

The following table shows a summary of the Agricultural Business lines for the periods ended June 30, 2019 and 2018.

	Agricultural production			Land transformation and sales			Corporate			Others			Total
	06.30.19	06.30.18	Var.	06.30.18	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.
In million of<br>ARS
Revenues	11,952	9,793	2,159	-	-	-	-	-	-	8,570	6,777	1,793	20,522	16,570	3,952
Costs	(10,191)	(7,954)	(2,237)	(26)	(38)	12	-	-	-	(7,185)	(6,106)	(1,079)	(17,402)	(14,098)	(3,304)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,185	1,656	529	-	-	-	-	-	-	6	(10)	16	2,191	1,646	545
Changes in the<br>net realizable value of agricultural products after<br>harvest	(46)	572	(618)	-	-	-	-	-	-	-	-	-	(46)	572	(618)
Gross profit / (loss)	3,900	4,067	(167)	(26)	(38)	12	-	-	-	1,391	661	730	5,265	4,690	575
Net gain from<br>fair value adjustment of investment properties	-	-	-	-	232	(232)	-	-	-	-	-	-	-	232	(232)
Gain from<br>disposal of farmlands	-	-	-	715	1,783	(1,068)	-	-	-	-	-	-	715	1,783	(1,068)
General and<br>administrative expenses	(1,032)	(946)	(86)	(3)	(2)	(1)	(295)	(242)	(53)	(311)	(297)	(14)	(1,641)	(1,487)	(154)
Selling<br>expenses	(1,104)	(1,422)	318	(2)	-	(2)	-	-	-	(743)	(464)	(279)	(1,849)	(1,886)	37
Other<br>operating results, net	460	(22)	482	263	1,568	(1,305)	-	-	-	158	112	46	881	1,658	(777)
Profit / (Loss) from operations	2,224	1,677	547	947	3,543	(2,596)	(295)	(242)	(53)	495	12	483	3,371	4,990	(1,619)
Share of<br>profit of associates and joint ventures	61	42	19	-	-	-	-	-	-	(49)	(2)	(47)	12	40	(28)
Segment profit / (loss)	2,285	1,719	566	947	3,543	(2,596)	(295)	(242)	(53)	446	10	436	3,383	5,030	(1,647)

Urban Properties and Investment Business

Operations Center in Argentina

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Argentina for the periods ended June 30, 2019 and 2018.

	Shopping Malls			Offices			Sales and developments			Hotels			Internacional			Corporate			Others			Total
	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.
In million of<br>ARS
Revenues	9,195	10,496	(1,301)	2,408	1,436	972	1,205	323	882	3,179	2,633	546	15	-	15	-	-	-	205	50	155	16,207	14,938	1,269
Costs	(835)	(893)	58	(164)	(133)	(31)	(568)	(160)	(408)	(1,709)	(1,800)	91	(6)	-	(6)	-	-	-	(163)	(53)	(110)	(3,445)	(3,039)	(406)
Gross profit / (loss)	8,360	9,603	(1,243)	2,244	1,303	941	637	163	474	1,470	833	637	9	-	9	-	-	-	42	(3)	45	12,762	11,899	863
Net gain from<br>fair value adjustment of investment properties	(43,688)	6,745	(50,433)	804	6,292	(5,488)	782	7,899	(7,117)	-	-	-	6	-	6	-	-	-	(403)	390	(793)	(42,499)	21,326	(63,825)
General and<br>administrative expenses	(1,017)	(919)	(98)	(224)	(232)	8	(305)	(213)	(92)	(529)	(524)	(5)	(118)	(127)	9	(559)	(414)	(145)	(122)	(82)	(40)	(2,874)	(2,511)	(363)
Selling<br>expenses	(571)	(653)	82	(107)	(155)	48	(128)	(62)	(66)	(340)	(335)	(5)	-	-	-	-	-	-	(23)	(7)	(16)	(1,169)	(1,212)	43
Other<br>operating results, net	(117)	(113)	(4)	(44)	(25)	(19)	(308)	148	(456)	123	(43)	166	(26)	(62)	36	-	-	-	(338)	36	(374)	(710)	(59)	(651)
Profit / (Loss) from operations	(37,033)	14,663	(51,696)	2,673	7,183	(4,510)	678	7,935	(7,257)	724	(69)	793	(129)	(189)	60	(559)	(414)	(145)	(844)	334	(1,178)	(34,490)	29,443	(63,933)
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	(40)	5	(45)	-	-	-	(3,960)	(4,763)	803	-	-	-	(2,656)	208	(2,864)	(6,656)	(4,550)	(2,106)
Segment profit / (loss)	(37,033)	14,663	(51,696)	2,673	7,183	(4,510)	638	7,940	(7,302)	724	(69)	793	(4,089)	(4,952)	863	(559)	(414)	(145)	(3,500)	542	(4,042)	(41,146)	24,893	(66,039)

Operations Center in Israel

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Israel for the periods ended June 30, 2019 and 2018.

	Real Estate			Supermarkets			Telecommunications			Corporate			Others			Total
	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.	06.30.19	06.30.18	Var.
In million of<br>ARS
Revenues	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Gross profit / (loss)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net gain from<br>fair value adjustment of investment properties	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	-	-	-	-	-	(115)	(84)	(31)	-	-	-	(115)	(84)	(31)
Selling<br>expenses	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	-	-	-	-	-	(115)	(84)	(31)	-	-	-	(115)	(84)	(31)
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	-	-	-	-	-	(115)	(84)	(31)	-	-	-	(115)	(84)	(31)

Results of operations for the fiscal years ended June 30, 2019 and 2018.

Revenues 2019 vs 2018

Total revenues, according to the income statement, increased by ARS 4,298 million (12%), from ARS 35,754 million in the fiscal year ended June 30, 2018 to ARS 40,052 million in the fiscal year ended June 30, 2019. Such increase was mainly due to a ARS 3,765 million increase in the Agricultural Business, which went from ARS 16,232 million in the fiscal year ended June 30, 2018 to ARS 19,997 million in the fiscal year ended June 30, 2019, and a ARS 533 million increase in the Urban Properties and Investment Business.

In turn, total revenues on account of expenses and promotion fund decreased by ARS 733 million (16%), from ARS 4,723 million in the fiscal year ended June 30, 2018 to ARS 3,990 million in the fiscal year ended June 30, 2019.

Revenues from inter-segment transactions varied by ARS 210 million (59%), from a loss of ARS 357 million in the fiscal year ended June 30, 2018 to a loss of ARS 567 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those from expenses and collective promotion fund or inter-segment transactions), total revenues increased by ARS 5,221 million (17%), from ARS 31,508 million in the fiscal year ended June 30, 2018 to ARS 36,729 million in the fiscal year ended June 30, 2019. Such increase was mainly due to a ARS 3,952 million increase in the Agricultural Business and a ARS 1,269 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures, and inter-segment eliminations), total revenues increased by ARS 3,952 million (24%), from ARS 16,570 million in the fiscal year ended June 30, 2018 to ARS 20,522 million in the fiscal year ended June 30, 2019.

Agricultural Production. Total revenues from the Agricultural Production segment rose by 22% from ARS 9,793 million during the fiscal year ended June 30, 2018 to ARS 11,952 million during the fiscal year ended June 30, 2019. Such increase is mainly attributable to:

●

A ARS 1,548 million increase in revenues from crop sales, resulting from a 36% increase in the average price of crops sold, from ARS 10,862 per ton in fiscal year 2018 to ARS 14,771 per ton in fiscal year 2019, offset by a decrease of 39,676 tons in the volume of crops sold in fiscal year 2019 as compared to the previous fiscal year.

●

A ARS 649 million rise in revenues from sugarcane sales, resulting from an increase of 242,460 tons (14%) in the volume of sugarcane sold fiscal year 2019 compared to the previous fiscal year, coupled with a 15% rise in the average price of sugarcane sold, from ARS 1,247 per ton in fiscal year 2018 to ARS 1,431 per ton in fiscal year 2019, as a result of an improvement in sugarcane quality (higher TRS, i.e., total recoverable sugar);

●

A ARS 42 million decrease in revenues from cattle sales, primarily attributable to a decrease of 5,557 tons in the volume of cattle sold in fiscal year 2019 compared to the previous fiscal year, partially offset by a 25% rise in the average price of cattle, as well as a decrease in the sale of milk caused by the discontinuation of the activity in the previous fiscal year; and

●

A ARS 260 million increase in revenues from rentals and services attributable to: (i) an increase of ARS 160 million (42%) in revenues from seed production mainly caused by an increase in the sale price of the corn and soybean seed service in Argentina; and an increase in the hectares leased to third parties in Brazil added to the collection of an additional amount for productivity on the yields; and (ii) a ARS 107 million increase in revenues from Feed Lot services and pastures.

Others. Revenues from the Others segment increased by 26.5% from ARS 6,777 million during fiscal year 2018 to ARS 8,570 million during fiscal year 2019. Such increase is attributable to:

●

A ARS 1,015 million increase in revenues from agro-industrial activities, due to the fact that, although the volume remained stable, in this fiscal year the share of sales to the external market increase over total sales, from 31% in fiscal year 2018 to 43% in fiscal year 2019, generating a double impact on gain (loss) by the effect of the increase in the exchange rate. The volume of domestic sales decreased, but prices remained in line with the inflation for the year;

●

A ARS 778 million increase in revenues from sales on consignment, brokerage fees and others, due to a higher volume of crop Trading transactions and sales of supplies in the current year, boosted by the effect of devaluation.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total revenues increased by ARS 1,269 million (8%), from ARS 14,938 million in the fiscal year ended June 30, 2018 to ARS 16,207 million in the fiscal year ended June 30, 2019. Excluding the revenues from the Operations Center in Israel, revenues, according to information by segments, increased by 8%.

Operations Center in Argentina

Shopping Malls. Revenues from the Shopping Malls segment decreased by 12.4% from ARS 10,496 million during fiscal year 2018 to ARS 9,195 million during fiscal year 2019. Such fall is mainly attributable to: (i) a ARS 1,051 million decrease in revenues from permanent and variable leases as a result of a 13.9% decrease in total sales of our lessees, which went from ARS 118,083 million during fiscal year 2018 to ARS 101,665 million during fiscal year 2019; (ii) a ARS 151 million decrease in commissions; (iii) a ARS 131 million decrease in revenues from admission rights; (iv) a ARS 129 million decrease in revenues from parking fees; (v) a ARS 18 million decrease in revenues from flattening and administration and management services; (vi) partially offset by an increase in leverage of graduated leases in Other revenues of ARS 207 million, mainly attributable to the termination of the Walmart agreement.

Offices. Revenues from the Offices segment increased by 67.7% from ARS 1,436 million during the fiscal year ended June 30, 2018 to ARS 2,408 million during the fiscal year ended June 30, 2019. The variation is mainly explained by a significant increase in revenues from leases of different buildings, mainly PH Office Park and Zeta Buildings, and by the effect of the exchange rate variation.

Sales and Developments. Revenues from the Sales and Developments segment recorded a 273% increase, from ARS 323 million during the fiscal year ended June 30, 2018 to ARS 1,205 million during the fiscal year ended June 30, 2019. This segment often varies significantly from fiscal year to fiscal year to the non-recurrence of different sales transactions carried out by the Group over time.

Hotels. Revenues from our Hotels segment increased by 20.7% from ARS 2,633 million during the fiscal year ended June 30, 2018 to ARS 3,179 million during the fiscal year ended June 30, 2019, mainly due to an increase in the average room rate of our hotel portfolio (measured in Pesos).

International. Revenues from our International segment increased by 100%, to ARS 15 million during the fiscal year ended June 30, 2019 due to the lease of properties by our subsidiary Real Estate Strategies LLC.

Corporate. Revenues associated with our Corporate segment showed no variations for the reported fiscal years.

Others. Revenues from the Others segment increased by 310% from ARS 50 million during the fiscal year ended June 30, 2018 to ARS 205 million during the fiscal year ended June 30, 2019, mainly due to the increase in revenues from La Arena S.A. y LA RURAL S.A. – OFC S.R.L. – OGDEN S.A – ENTRETENIMIENTO UNIVERSAL S.A. – Unión transitoria – (administradora del Centro de Convenciones y Exposiciones de la Ciudad de Buenos Aires).

Costs 2019 vs 2018

Total costs, according to the income statement, increased by ARS 3,029 million (14%), from ARS 21,685 million in the fiscal year ended June 30, 2018 to ARS 24,714 million in the fiscal year ended June 30, 2019. Such increase was mainly due to a ARS 3,256 million increase in the Agricultural Business, from ARS 13,935 million in the fiscal year ended June 30, 2018 to ARS 17,191 million in the fiscal year ended June 30, 2019, and a ARS 227 million increase in the Urban Properties and Investment Business.

Costs from our joint ventures decreased by ARS 2 million (3%), from a profit of ARS 74 million in the fiscal year ended June 30, 2018 (out of which ARS 10 million to the Shopping Mall segment; ARS 52 million to the Offices segment and ARS 12 million to the Sales and Developments segment of the Operations Center in Argentina) to a profit of ARS 72 million in the fiscal year ended June 30, 2019 (out of which ARS 17 million are allocated to the Shopping Malls segment; ARS 45 million to the Offices segment and ARS 10 million to the Sales and Developments segment of the Operations Center in Argentina).

In turn, total costs on account of expenses and promotion fund decreased by ARS 635 million (13%), from ARS 4,785 million in the fiscal year ended June 30, 2018 to ARS 4,150 million in the fiscal year ended June 30, 2019.

Costs from inter-segment transactions varied by ARS 48 million (29%), from ARS 163 million in the fiscal year ended June 30, 2018 to ARS 211 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account profit / (loss) from operations from our joint businesses and excluding those corresponding to expenses and collective promotion fund or business inter-segment transactions), total costs increased by ARS 3,710 million (22%), from ARS 17,137 million in the fiscal year ended June 30, 2018 to ARS 20,847 million in the fiscal year ended June 30, 2019. Such increase was mainly due to a ARS 3,304 million decrease in the Agricultural Business and a ARS 406 million decrease in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs increased by ARS 3,304 million (23%), from ARS 14,098 million in the fiscal year ended June 30, 2018 to ARS 17,402 million in the fiscal year ended June 30, 2019. The costs of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 85.1% during the fiscal year ended June 30, 2018 to 84.8% during the fiscal year ended June 30, 2019.

Agricultural Production. The costs of the Agricultural Production segment increased by 28.1% from ARS 7,954 million during fiscal year 2018 to ARS 10,191 million during fiscal year 2019, primarily as a consequence of:

●

A ARS 1,888 million increase in costs of crop sales, mainly resulting from a 51% increase in the average cost per ton of crops sold in fiscal year 2019, from 8708 million in fiscal year 2018 to 13,140 million in fiscal year 2019; offset by a decrease of 39,676 tons in the volume of tons sold in fiscal year 2019 as compared to the previous fiscal year.

●

A ARS 391 million increase in the costs of sugarcane sales, mainly as a result of an increase of 242,460 tons (14%) in the volume of sugarcane sold in fiscal year 2019 compared to the previous fiscal year, coupled with a 4% rise in the average cost of sugarcane per ton sold in fiscal year 2019, from ARS 1,215 per ton in fiscal year 2018 to ARS 1,262 per ton in fiscal year 2019;

●

A ARS 27 million decrease in the costs of cattle and milk sales, mainly as a result of a decrease of 5,557 tons of cattle sold in fiscal year 2019 compared to the previous fiscal year, partially offset by a 34% rise in the average cost of cattle sold, as well as by the decrease in the sale of milk caused by the discontinuation of the activity in the prior fiscal year; and

●

A ARS 169 million increase in costs of rentals and services, mainly attributable to a ARS 117 million increase in the Feedlot service cost and an increase in ARS 53 million in lease costs and seed production.

Costs of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 81.2% during fiscal year 2018 to 85.3% during fiscal year 2019.

Land transformation and sales. The costs of the Land transformation and sales segment decreased by 31.6% from ARS 38 million during fiscal year 2018 to ARS 26 million during fiscal year 2019.

Others. The costs of the Others segment increased by 17.7% from ARS 6,106 million during fiscal year 2018 to ARS 7,185 million during fiscal year 2019, mainly as a result of:

●

A ARS 723 million increase in agro-industrial costs, mostly driven by a rise in acquisition costs of all of its components.

●

A ARS 356 million increase in other segments, mainly triggered by the sale of supplies.

The costs of the Others segment, measured as a percentage of revenues from this segment, decreased from 90.1% during fiscal year 2018 to 83.8% during fiscal year 2019.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs increased by ARS 406 million (13%), from ARS 3,039 million in the fiscal year ended June 30, 2018 to ARS 3,445 million in the fiscal year ended June 30, 2019. Excluding the costs from the Operations Center in Israel, costs, according to information by segments, decreased by 13%. Likewise, total costs, measured as a percentage of total revenues, according to information by segments, increased from 20% during fiscal year ended June 30, 2018 to 21% during the fiscal year ended June 30, 2019. Excluding the effect from the Operations Center in Israel, total costs, measured as a percentage of total revenues, increased from 20% during the fiscal year ended June 30, 2018 to 21% during the fiscal year ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Costs associated with the Shopping Malls segment decreased by 6.5%, from ARS 893 million during fiscal year 2018 to ARS 835 million during fiscal year 2019, mainly due to: (i) a decrease in salaries, social security and other personnel administrative expenses of ARS 47 million; (ii) a decrease in amortization and depreciation of ARS 22 million; and (iii) a decrease in maintenance, security, cleaning, repairs and related expenses of ARS 10 million; partially offset by (iv) an increase in leases and expenses of ARS 26 million (generated by leases denominated in dollars). Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, increased from 8.5% during the fiscal year ended June 30, 2018 to 9.1% during the fiscal year ended June 30, 2019.

Offices. Costs associated with the Offices segment increased by 23.3%, from ARS 133 million during the fiscal year ended June 30, 2018 to ARS 164 million during the fiscal year ended June 30, 2019, mainly due to (i) an increase in amortization and depreciation of ARS 57 million; offset by: (i) a decrease in leases and expenses of ARS 14 million; (ii) a decrease in maintenance, repairs and services expenses of ARS 9 million; (iii) a decrease in fees and compensation for services of ARS 5 million and (iv) a decrease in taxes, fees and contributions of ARS 3 million. Costs associated with the Offices segment, measured as a percentage the revenues from this segment, decreased from 9.3% during the fiscal year ended June 30, 2018 to 6.8% during the fiscal year ended June 30, 2019.

Sales and Developments. Costs associated with our Sales and Developments segment recorded a 255% increase from ARS 160 million during the fiscal year ended June 30, 2018 to ARS 568 million during the fiscal year ended June 30, 2019 mainly due to the cost of the sale of Catalinas Norte. Costs in the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 49.5% during the fiscal year ended June 30, 2018 to 47.1% during the fiscal year ended June 30, 2019.

Hotels. Costs in the Hotels segment decreased by 5.1%, from ARS 1,800 million during the fiscal year ended June 30, 2018 to ARS 1,709 million during the fiscal year ended June 30, 2019, mainly as a result of (i) a ARS 115 million decrease in the costs of salaries, social security and other personnel expenses; and (ii) a ARS 9 million decrease in food, beverages and other hotel expenses, offset by (iii) an increase in fees and compensation services of ARS 31 million. Costs in the Hotels segment, measured as a percentage of revenues from this segment, decreased from 68.4% during the fiscal year ended June 30, 2018 to 53.8% during the fiscal year ended June 30, 2019.

International. Costs in the International segment increased 100%, amounting to ARS 6 million during the fiscal year ended June 30, 2019, associated with the cost of lease of properties by our subsidiary Real Estate Strategies LLC.

Corporate. Costs in the Corporate segment did not vary in the reported fiscal years.

Others. Costs in the Others segment increased by 207.5%, from ARS 53 million during the fiscal year ended June 30, 2018 to ARS 163 million during the fiscal year ended June 30, 2019, mainly as a result of: (i) a ARS 31 million increase in taxes, fees and contributions; (ii) a ARS 21 million increase in leases and expenses; (iii) a ARS 18 million increase in fees and compensation for services; (iv) a ARS 15 million increase in depreciation and amortization; (v) a ARS 13 million increase in maintenance, repairs and services; and (vi) a ARS 10 million increase in salaries, social security and other personnel expenses.

Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2019 vs 2018

The profit from the total initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest, according to the income statement, increased by ARS 680 million (38%), from ARS 1,802 million in the fiscal year ended June 30, 2018 to ARS 2,482 million in the fiscal year ended June 30, 2019.

The profit / (loss) from our joint ventures in relation to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest decreased by ARS 5 million in the fiscal year ended June 30, 2018 to ARS 0 in the fiscal year ended June 30, 2019.

There is no profit / (loss) on account of expenses and promotion fund in relation to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest.

The profit/ (loss) related to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest from inter-segment transactions varied by ARS 140 million (93%), from ARS 151 million in the fiscal year ended June 30, 2018 to ARS 291 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to expenses and collective promotion fund and business inter-segment transactions), the profit / (loss) from the total initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest increased by ARS 545 million (33.0%), from ARS 1,646 million in the fiscal year ended June 30, 2018 to ARS 2,191 million in fiscal year ended June 30, 2019.

Such variation was mainly a result of:

●

A lesser loss in profits from cattle production of ARS 284 million, mainly generated by Argentina, derived, on the one hand, from beef cattle, since the increase in prices in fiscal year 2019 was higher than in the prior fiscal year; furthermore, during such fiscal year cattle was lot-fed to mitigate the draught effects generating more kilograms produced, but also higher feeding costs; and on the other hand, from the income obtained during this fiscal year derived from the wool production, due an increase in the prices; and

●

An increase in profits from crop production of ARS 262 million, mainly generated in Argentina as a result of a higher planted area and better corn and soybean yields; and better wheat prices and yields during this fiscal year; and in Bolivia as a result of a significant improvement in soybean yields (64%) and a cost reduction; while Brazil registered a negative variation originated by soybean due to lower prices and yields as well as increased costs; offset by;

●

A decrease in the result of sugarcane production of ARS 79 million, mainly in Brazil due to an increase in production costs derived from the fact that during the current fiscal year cultural and irrigation works were carried out in the San José farmland, as compared to the previous fiscal year when this farmland had been incorporated with the cane already planted; and, additionally, the cutting, hauling and transportation costs also grew up as a result of the increase in fuels. This was partially offset by the improvement in the Bolivian production results, as a result of an increase in the cultivated area during this fiscal year.

●

A decrease in the result of agro-industrial activity of ARS 16 million

Changes in the net realizable value of agricultural produce after harvest 2019 vs 2018

Profits /(loss) from total changes in the net realizable value of agricultural produce after harvest, according to the income statement, decreased by ARS 618 million (108%), from a gain ARS 572 million in the fiscal year ended June 30, 2018 to a loss ARS 46 million in the fiscal year ended June 30, 2019. Such variation is mainly generated by Argentina, particularly by the soybean, due to the fact that in the previous fiscal year the prices had an upward trend while during the current fiscal year the trend was downward as a consequence of the trade war between China and USA; in addition, although corn and wheat prices raised in both fiscal years, they were not in line with inflation, particularly in the current fiscal year.

Gross profit 2019 vs 2018

As a result of the above mentioned factors, total gross profit, according to the income statement, increased by ARS 1,331 million (8%), from ARS 16,443 million in the fiscal year ended June 30, 2018 to ARS 17,774 million in the fiscal year ended June 30, 2019. This was mainly due to the ARS 571 million increase in the Agricultural Business, from ARS 4,671 million in the fiscal year ended June 30, 2018 to ARS 5,242 million in the fiscal year ended June 30, 2019, and a ARS 760 million increase in the Urban Properties and Investment Business.

Gross profit / (loss) from our joint ventures increased by ARS 13 million (32%), from a loss of ARS 41 million in the fiscal year ended June 30, 2018 to a loss of ARS 28 million in the fiscal year ended June 30, 2019.

In turn, total gross profit on account of expenses and promotion fund decreased by ARS 98 million (158%), from a loss of ARS 62 million in the fiscal year ended June 30, 2018 (out of which a gain of ARS 95 million derives from the Shopping Malls segment and a loss of ARS 34 million derives from the Offices segment) to a loss of ARS 160 million in the fiscal year ended June 30, 2019 (out of which a gain of ARS 155 million derives from the Shopping Malls segment and a gain of ARS 5 million derives from the Offices segment).

Gross profit generated by inter-segment transactions varied by ARS 22 million (51%), from ARS 43 million in the fiscal year ended June 30, 2018 to ARS 65 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and without considering those related to expenses and collective promotion fund and inter-segment business transactions), total gross profit increased by ARS 1,438 million (9%), from ARS 16,589 million in the fiscal year ended June 30, 2018 to ARS 18,027 million in the fiscal year ended June 30, 2019. This was mainly due to an increase of ARS 575 million in the Agricultural Business and an increase of ARS 863 million in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit rose by ARS 575 million (12%), from ARS 4,690 million in the fiscal year ended June 30, 2018 to ARS 5,265 million in the fiscal year ended June 30, 2019. Gross profit from the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 28% during the fiscal year ended June 30, 2018 to 26% during the fiscal year ended June 30, 2019.

Agricultural Production. Gross profit from this segment decreased by 4.1% from ARS 4,067 million in fiscal year 2018 to ARS 3,900 million in fiscal year 2019.

Land Transformation and Sales. Gross profit from this segment decreased by 31.6% from ARS 38 million in fiscal year 2018 to ARS 26 million in fiscal year 2019.

Others. Gross profit from this segment increased by 110.4% from ARS 661 million in fiscal year 2018 to ARS 1,391 million in fiscal year 2019.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit increased by ARS 863 million (7%), from ARS 11,899 million in the fiscal year ended June 30, 2018 to ARS 12,762 million in the fiscal year ended June 30, 2019. Excluding gross profit from the Operations Center in Israel, gross profit, according to information by segments, decreased by 7%. In addition, total gross profit, measured as a percentage of total revenues, according to information by segments, decreased from 80% during the fiscal year ended June 30, 2018 to 79% during the fiscal year ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Gross profit from the Shopping Malls segment decreased 12.9%, from ARS 9,603 million during fiscal year 2018 to ARS 8,360 million for fiscal year 2019, mainly as a result of a decrease in total sales of our tenants, giving rise to lower rental percentages under our lease agreements. Gross profit from our Shopping Malls segment as a percentage of revenues for the segment decreased from 91.5% during fiscal year 2018 to 90.9% during fiscal year 2019.

Offices. Gross profit of the Offices segment increased by 72.2%, from ARS 1,303 million for the year ended June 30, 2018 to ARS 2,244 million during the year ended June 30, 2019. The gross profit of the Offices segment, measured as a percentage of revenues of this segment, increased from 90.7% during the year ended June 30, 2018 to 93.2% during the year ended June 30, 2019.

Sales and developments. Gross profit of the Sales and Developments segment increased by 290.8%, from ARS 163 million during the year ended June 30, 2018 to ARS 637 million during the year ended June 30, 2019, mainly as a result of higher sales recorded during the year ended June 30, 2019. The gross profit of the Sales and Developments segment, measured as a percentage of this segment's revenues, increased from 50.5 % during the year ended June 30, 2018 to 52.9% during the year ended June 30, 2019.

Hotels. Gross profit for the Hotels segment increased by 76.5% from ARS 833 million during the fiscal year ended June 30, 2018 to ARS 1,470 million during the year ended June 30, 2019. The gross profit of the Hotels segment, measured as a percentage of revenues of this segment, increased from 31.6% during the year ended June 30, 2018 to 46.2% during the year ended June 30, 2019.

International. Gross profit of the International segment increased 100%, with a gross profit of ARS 9 million during the year ended June 30, 2019.

Corporate. Gross profit of the Corporate segment did not present variations during the reported years.

Others. Gross profit from the Others segment increased 1,500%, from a loss of ARS 3 million during the year ended June 30, 2018 to a profit of ARS 42 million during the year ended June 30, 2019. The gross profit of the Others segment, measured as a percentage of revenues of this segment, increased from 6% negative during the year ended June 30, 2018 to 20.5% during the year ended June 30, 2019.

Net gain (loss) from changes in the fair value of investment properties 2019 vs 2018

Total gain (loss) from changes in the fair value of investment properties, according to the income statement, decreased by ARS 62,019 million (304%), from a gain of ARS 20,423 million in the fiscal year ended June 30, 2018 to a loss of ARS 41,596 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 232 million decrease in the Agricultural Business, from a gain of ARS 232 million in the fiscal year ended June 30, 2018 to a loss of ARS 0 million in the fiscal year ended June 30, 2019, and a ARS 61,787 million decrease in the Urban Properties and Investment Business.

The gain (loss) from changes in the fair value of investment properties from our joint ventures increased by ARS 2,038 million (179.6%), from a loss of ARS 1,135 million in the fiscal year ended June 30, 2018 to a gain of ARS 903 million in the fiscal year ended June 30, 2019.

There is no profit / (loss) on account of expenses and promotion fund in relation to net gain (loss) from changes in the fair value of investment properties.

There is no profit / (loss) from our inter-segment transactions in relation to the net gain (loss) from changes in the fair value of investment properties.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to expenses and collective promotion fund or inter-segment transactions), the total net gain/(loss) from changes in the fair value of investment properties decreased by ARS 64,057 million (297%), from a gain of ARS 21,558 million in the fiscal year ended June 30, 2018 to a loss of ARS 42,499 million in the fiscal year ended June 30, 2019. Such change was mainly due to a ARS 232 million decrease in the Agricultural Business and a ARS 63,825 million decrease in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total net gain (loss) from changes in the fair value of investment properties decreased by ARS 232 million (100.0%), from ARS 232 million in the fiscal year ended June 30, 2018 to ARS 0 million in the fiscal year ended June 30, 2019.

The decrease in net gain (loss) is mainly attributable to Brasilagro as a result of a lower number of hectares leased to third parties in Jatobá farmland.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total net gain (loss) from changes in the fair value of investment properties decreased by ARS 63,825 million (299%), from a gain ARS 21,326 million in the fiscal year ended June 30, 2018 to ARS 42,499 million in the fiscal year ended June 30, 2019. Excluding the changes in the fair value of investment properties from the Operations Center in Israel, changes in the fair value of investment properties, according to information by segments, increased by 299%.

Operations Center in Argentina

Shopping Malls

The shopping -Malls portfolio decreased between the fiscal year ended June 30, 2019 and 2018, as the end of the concession we had for Buenos Aires Design took place.

The net impact in the peso values of our properties was primarily a consequence of macroeconomic changes: (i) from june 2018 to june 2019, the Argentinian peso depreciated 47% against US Dolar (from ARS 28.75 per dolar to ARS 42.26 per dolar), which had a direct impact in a less projected cash flows in US Dolar from our Shopping Malls segment; and (ii) an increase of 234 basis points on the discount rate in US dolar, which it is used to discount the projected cash flow from Shopping Malls segment.

Offices, Sales and Developments, International and Others

Net gain/(loss) from actual fair value adjustment of investment properties included in these segments decreased by 91,8% during the year ended June 30, 2019.

The Argentine office market is a liquid market, in which a significant volume of counterparties participates and frequently carries out purchase and sale transactions. This allows to observe sale prices that are relevant and representative in the market. Furthermore, lease agreements are denominated in dollars for an average term of 3 years, with the current business thus generating a stable cash flow in dollars, In this sense, the “Market approach” technique is used (market comparable values) for the determination of the fair value of these segments, with the value per square meter being the most representative metric.

Changes in fair value from our Shopping Malls segment differ from our offices segment because the nature of each business is different and prices depend on factors that may not have similarly over time. As we mentioned before, the office property market is dominated by investors and owners that seek medium- to long-term leases and perceive real estate as a safe dollar-denominated investment option. In contrast, the shopping mall segment is a relatively new industry in Argentina where the first shopping mall opened in 1990, compared to markets such as the United States and Brazil where the industry began in the 1950’s and 1960’s, respectively. Additionally, unlike the office properties segment, the financial performance of shopping mall properties is highly correlated with the volatile economic activity in Argentina since the cash flow generated by shopping malls are closely related to the purchasing power of customers.

Gain from disposal of farmlands 2019 vs 2018

The total gain from disposal of farmlands, according to the income statement, decreased by ARS 1,068 million (60%), from ARS 1,783 million in the fiscal year ended June 30, 2018 to ARS 715 million in the fiscal year ended June 30, 2019.

Based on the information by segment (taking into account all our joint ventures and inter-segment eliminations), the total gain from disposal of farmlands decreased by ARS 1,068 million (60%), from ARS 1,783 million in the fiscal year ended June 30, 2018 to ARS 715 million in the fiscal year ended June 30, 2019.

Fiscal year ended June 30, 2019

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In June 2019, the Group, through its subsidiary BrasilAgro, entered into an agreement for the sale of 3,124 hectares of the Jatobá land. The sales price was 307 soybean bags per hectare or ARS 835 million. The buyer made a down payment of ARS 89 million and will complete payment of the first installment (ARS 89 million) by July 31, 2019. The balance, i.e. 563,844 soybean bags, will be paid in six annual installments. Delivery of possession and the gain of the transaction will be recognized on June 30, 2020, amounting to ARS 617 million.

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Fiscal year ended June 30, 2018

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On June 29, 2018, Cresud signed a deed with a non-related third party for the sale of a fraction of 10,000 hectares of livestock activity of "La Suiza". The total amount of the transaction was set at USD 10 million, of which USD 3 million have been already paid. The remaining balance of USD 7 million, guaranteed by a mortgage on the property, will be collected in 10 installments of the same amount ending on June 2023, which will accrue an annual interest of 4.5% on the remaining balances. The gain of the transaction amounts approximately to ARS 409 million.

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On July 20, 2017, the Company executed a purchase-sale agreement for all of “La Esmeralda” establishment consisting of 9,352 hectares devoted to agricultural and cattle raising activities in the 9 de Julio district, Province of Santa Fe, Argentina. On June 25, 2018, the Company has made effective with the sign of the deed and delivery of the property, the sale of "La Esmeralda" farm. The amount of the transaction was set at USD 19 million, of which USD 7 million have been already paid. The balance, guaranteed with a mortgage on the property, will be collected in 4 installments of the same amount ending in April 2022, which will accrue an annual interest of 4% on the remaining balances. The gain from the sale amounts approximately to ARS 739 million.

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On May 3, 2018, the Company through its subsidiary BrasilAgro, has entered into a purchase-sale agreement for the partial sale of 956 hectares (660 arable hectares) of Araucaria Farm, located in Mineiros, Brazil, for an amount of 1,208 soybean bags per arable hectare or Rs.66.2 million (Rs./ha. 93,356). The Group has recognized gains of ARS 635 million as result of this transaction.

General and administrative expenses 2019 vs 2018

Total general and administrative expenses, according to the income statement, increased by ARS 550 million (14%), from ARS 4,003 million in the fiscal year ended June 30, 2018 to ARS 4,553 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 144 million increase in the Agricultural Business, from ARS 1,485 million in the fiscal year ended June 30, 2018 to ARS 1,629 million in the fiscal year ended June 30, 2019, and a ARS 406 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an increase in the Operations Center in Israel of ARS 31 million offset by an increase in the Operations Center in Argentina of ARS 375 million.

General and administrative expenses from our joint ventures decreased by ARS 26 million (60%), from ARS 43 million in the fiscal year ended June 30, 2018 to ARS 17 million in the fiscal year ended June 30, 2019.

There are no results on account of expenses and promotion fund corresponding to general and administrative expenses.

General and administrative expenses from inter-segment transactions varied by ARS 24 million (67%), from ARS 36 million in the fiscal year ended June 30, 2018 to ARS 60 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those relating to expenses and collective promotion fund or business inter-segment transactions), total general and administrative expenses increased by ARS 548 million (13%), from ARS 4,082 million in the fiscal year ended June 30, 2018 to ARS 4,630 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 154 million increase in the Agricultural Business and a ARS 394 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a increase in the Operations Center in Israel of ARS 31 million, and a increase in the Operations Center in Argentina of ARS 363 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total general and administrative expenses increased by ARS 154 million (10%), from ARS 1,487 million in the fiscal year ended June 30, 2018 to ARS 1,641 million in the fiscal year ended June 30, 2019. General and administrative expenses from the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 9.0% during the fiscal year ended June 30, 2018 to 8% during the fiscal year ended June 30, 2019.

Agricultural Production. General and administrative expenses associated with our Agricultural Production segment increased by 9.1%, from ARS 946 million during fiscal year 2018 to ARS 1,032 million during fiscal year 2019, mainly due to: the ARS 21 million increase in general and administrative expenses attributable to crop operations; a ARS 40 million increase in expenses related to sugarcane operations and a ARS 50 million increase in expenses associated with the Agricultural Rental and Services business. General and administrative expenses, measured as a percentage of revenues from this segment, decreased from 9.7% during fiscal year 2018 to 8.6% during fiscal year 2019.

Land Transformation and Sales General and administrative expenses associated with our Land Transformation and Sales segment increased by 50.0%, from ARS 2 million during fiscal year 2018 to ARS 3 million during fiscal year 2019.

Corporate. General and administrative expenses associated with our Corporate segment increased by 21.9%, from ARS 242 million during fiscal year 2018 to ARS 295 million during fiscal year 2019, mainly as a result of an increase in expenses due to inflation, offset by extraordinary severance payments in fiscal year 2018 and an increase in directors’ fees below the inflation standard.

Others. General and administrative expenses associated with our Others segment increased by 4.7%, from ARS 297 million during fiscal year 2018 to ARS 311 million during fiscal year 2019. General and administrative expenses, measured as a percentage of revenues from this segment, decreased slightly from 4.4% for fiscal year 2018 to 3.6% for fiscal year 2019.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total general and administrative expenses increased by ARS 394 million (15%), from ARS 2,595 million in the fiscal year ended June 30, 2018 (out of which ARS 84 million derive from the Operations Center in Israel and ARS 2,511 million from the Operations Center in Argentina) to ARS 2,989 million in the fiscal year ended June 30, 2019 (out of which ARS 115 million derive from the Operations Center in Israel and ARS 2,874 million from the Operations Center in Argentina). Excluding general and administrative expenses from the Operations Center in Israel, general and administrative expenses, according to information by segments, increased by 14%. In addition, total general and administrative expenses, measured as a percentage of total revenues, according to information by segments, increased from 17% during the period ended June 30, 2018 to 18% during the period ended June 30, 2019. Excluding the effect from the Operations Center in Israel, total general and administrative expenses, measured as a percentage of total revenues, increased from 17% during the period ended June 30, 2018 to 18% during the period ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Administrative expenses of Shopping Malls increased by 10.7%, from ARS 919 million during fiscal year 2018 to ARS 1,017 million during fiscal year 2019, mainly as a result of: (i) an increase in salaries, social security and other personnel administrative expenses of ARS 141 million; (ii) an increase in maintenance, repairs and services, traveling and transportation expenses of ARS 32 million; partially offset by (iii) a decrease in fees payable to directors of ARS 37 million; (iv) a decrease in banking expenses of ARS 22 million; and (v) a decrease in fees and compensation for services of ARS 13 million. General and administrative expenses of the Shopping Malls segment, measured as a percentage of revenues of this segment, increased from 8.8% during the fiscal year ended June 30, 2018 to 11.1% during the fiscal year ended June 30, 2019.

Offices. General and administrative expenses of our Offices segment decreased 3.4%, from ARS 232 million during the fiscal year ended June 30, 2018 to ARS 224 million during the fiscal year ended June 30, 2019, mainly as a result of: (i) a decrease of ARS 13 million in salaries, social security and other personnel expenses; (ii) a decrease of ARS 8 million in fees and compensation for services and (iii) a decrease of ARS 8 million in advertising and other commercial expenses, partially offset by: (i) an increase of ARS 23 million in fees payable to directors. General and administrative expenses of the Offices segment, measured as a percentage of revenues from this segment, decreased from 16.2% during the fiscal year ended June 30, 2018 to 9.3% during the fiscal year ended June 30, 2019.

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment increased by 43.2%, from ARS 213 million during the fiscal year ended June 30, 2018 to ARS 305 million during the fiscal year ended June 30, 2019, mainly as a result of an increase in salaries, social security and other personnel expenses of ARS 75 million, among other items. General and administrative expenses of the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 66% during the fiscal year ended June 30, 2018 to 25.3% during the fiscal year ended June 30, 2019.

Hotels. General and administrative expenses associated with our Hotels segment increased by 1% from ARS 524 million during the fiscal year ended June 30, 2018 to ARS 529 million during the fiscal year ended June 30, 2019, mainly as a result of: (i) a ARS 34 million increase in fees and compensation for services, offset by (ii) a ARS 18 million decrease in salaries, social security and other personnel expenses and (iii) a ARS 7 million decrease in taxes, fees and contributions. General and administrative expenses of the Hotels segment measured as a percentage of revenues from this segment decreased from 19.9% during the fiscal year ended June 30, 2018 to 16.6% during the fiscal year ended June 30, 2019.

International. General and administrative expenses associated with our International segment decreased by 7.1%, from ARS 127 million during the fiscal year ended June 30, 2018 to ARS 118 million during the fiscal year ended June 30, 2019, mainly as a result of: (i) a ARS 28 million increase in fees and compensation for services; (ii) a ARS 12 million increase in salaries, social security and other personnel expenses; (iii) a ARS 6 million increase in maintenance, repairs and services and (iv) a ARS 3 million increase in amortization and depreciation, partially offset by: (v) a lower tax expense, since Imadison taxes were paid in the previous fiscal year.

Corporate. General and administrative expenses associated with our Corporate segment increased by 35%, from ARS 414 million during the fiscal year ended June 30, 2018 to ARS 559 million during the fiscal year ended June 30, 2019, mainly as a result of an increase in fees payable to directors of ARS 187 million; offset by a ARS 40 million decrease in fees and compensation for services, among other items.

Others. General and administrative expenses associated with our Others segment increased by 48% from ARS 82 million during the fiscal year ended June 30, 2018 to ARS 122 million during the fiscal year ended June 30, 2019, mainly due to: (i) a ARS 16 million increase in administrative expenses; (ii) a ARS 7 million increase in maintenance, repairs and services; (iii) a ARS 4 million increase in fees and compensation for services; and (iv) a ARS 7 million increase in salaries, social security and other personnel expenses, among other items.

Operations Center in Israel

Corporate. General and administrative expenses associated with the Corporate segment increased from ARS 84 million during the period ended June 30, 2018 to ARS 115 million during the period ended June 30, 2019. This variation was due to a real revaluation of the NIS against the Argentine peso of approximately 22%, offset by a decrease in the personnel and the structure expenses of DIC and IDBD, also accompanied by a reduction in Dolphin's legal fees.

Selling expenses 2019 vs 2018

Total selling expenses, according to the income statement, decreased by ARS 69 million (2%), from ARS 3,067 million in the fiscal year ended June 30, 2018 to ARS 2,998 million in the fiscal year ended June 30, 2019. This was primarily due to a ARS 35 million decrease in the Agricultural Business, from ARS 1,872 million in the fiscal year ended June 30, 2018 to ARS 1,837 million in the fiscal year ended June 30, 2019, and a ARS 34 million decrease in the Urban Properties and Investment Business.

Selling expenses from our joint ventures decreased by ARS 9 million (53%), from ARS 17 million in the fiscal year ended June 30, 2018 to ARS 8 million in the fiscal year ended June 30, 2019.

Selling expenses generated by inter-segment transactions decreased ARS 2 million (14%), from ARS 14 million in the fiscal year ended June 30, 2018 to ARS 12 million in the fiscal year ended June 30, 2019.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses decreased by ARS 37 million (2%), from ARS 1,886 million in the fiscal year ended June 30, 2018 to ARS 1,849 million in the fiscal year ended June 30, 2019. Selling expenses of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 11% during the period ended June 30, 2018 to 9% during the fiscal year ended June 30, 2019.

Agricultural Production. Selling expenses from the Agricultural Production segment decreased 22.4%, from ARS 1,422 million during fiscal year 2018 to ARS 1,104 million in fiscal year 2019, mainly as a result of a ARS 244 million decrease in selling expenses for crops and ARS 31 million in selling expenses for cattle. Selling expenses, measured as a percentage of revenues from the Agricultural Production segment, decreased from 14.5 % during fiscal year 2018 to 9.2% during fiscal year 2019.

Land Transformation and Sales. Selling expenses from the Land Transformation and Sales segment increased by ARS 2 million, and no expenses were recorded in fiscal year 2018.

Others. Selling expenses from the Others segment increased 60.1%, from ARS 464 million during fiscal year 2018 to ARS 743 million in fiscal year, 2019, as a consequence of a ARS 198 million increase in selling expenses related to the agro-industrial business and the ARS 81 million increase in commercial expenses related to other segments. Selling expenses, measured as a percentage of revenues from the Others segment, increased from 6.8% during fiscal year 2018 to 8.7% during fiscal year 2019.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses decreased by ARS 43 million (4%), from ARS 1,212 million in the fiscal year ended June 30, 2018 to ARS 1,169 million in the fiscal year ended June 30, 2019. Without considering selling expenses from the Operations Center in Israel, selling expenses, according to information by segments, decreased by 4%. In addition, total selling expenses, measured as a percentage of total revenues, according to information by segments, decreased from 8% during the period ended June 30, 2018 to 7% during the period ended June 30, 2019, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total selling expenses, measured as a percentage of total revenues, decreased from 8% during the period ended June 30, 2018 to 7% during the period ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Selling expenses of the Shopping Malls segment decreased by 12.6%, from ARS 653 million during fiscal year 2018 to ARS 571 million during fiscal year 2019, mainly as a result of: (i) a decrease in advertising and other commercial expenses of ARS 36 million; (ii) a decrease in the charge of taxes, fees and contributions of ARS 33 million; and (iii) a decrease of ARS 15 million in doubtful accounts; partially offset by (iv) an increase in salaries, social security and other personnel selling expenses of ARS 3 million. Selling expenses of the Shopping Malls segment, measured as a percentage of revenues from this segment, remained constant at 6.2% during the fiscal years ended June 30, 2018 and 2019.

Offices. Selling expenses associated with our Offices segment decreased by 31% from ARS 155 million during the fiscal year ended June 30, 2018 to ARS 107 million during the fiscal year ended June 30, 2019. Such variation was mainly generated as a result of a ARS 74 million decrease in the charge of doubtful accounts, offset by: (i) a ARS 14 million increase in taxes, fees and contributions and (ii) a ARS 12 million increase in advertising and other commercial expenses. Selling expenses associated with the Offices segment, measured as a percentage of revenues from this segment, decreased from 10.8% during the fiscal year ended June 30, 2018 to 4.4% during the fiscal year ended June 30, 2019.

Sales and Developments. Selling expenses associated with our Sales and Developments segment increased by 106.5% from ARS 62 million during fiscal year ended June 30, 2018 to ARS 128 million during the fiscal year ended June 30, 2019. Such variation was mainly generated by a ARS 70 million increase in taxes, fees and contributions. Selling expenses associated with the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 19.2% during the fiscal year ended June 30, 2018 to 10.6% during the fiscal year ended June 30, 2019.

Hotels. Selling expenses associated with our Hotels segment increased by 1.5% from ARS 335 million during the fiscal year ended June 30, 2018 to ARS 340 million during the fiscal year ended June 30, 2019, mainly as a result of a ARS 28 million increase in taxes, fees and contributions offset by; (i) a ARS 14 million decrease in fees and compensation for services, and (ii) a ARS 12 million decrease in salaries, social security and other personnel expenses. Selling expenses associated with the Hotels segment, measured as a percentage of revenues from this segment, decreased from 12.7% during the fiscal year ended June 30, 2018 to 10.7% during the fiscal year ended June 30, 2019.

International. Selling expenses associated with the International segment remained unchanged in both fiscal years.

Corporate. Selling expenses associated with the Corporate segment remained unchanged in both fiscal years.

Others. Selling expenses associated with our Others segment increased 228.6% from ARS 7 million during the fiscal year ended June 30, 2018 to ARS 23 million during the fiscal year ended June 30, 2019, mainly due to: (i) a ARS 8 million increase in taxes, fees and contributions; (ii) a ARS 6 million increase in advertising and other commercial expenses; and (iii) a ARS 6 million increase in doubtful accounts. Selling expenses associated with the Others segment, measured as a percentage of revenues from this segment, significantly decreased from 17% during the fiscal year ended June 30, 2018 to 11.2% during the fiscal year ended June 30, 2019.

Other operating results, net 2019 vs 2018

Total other operating results, net, according to the income statement, decreased by ARS 1,253 million (76%), from a gain of ARS 1,639 million in the fiscal year ended June 30, 2018 to a gain of ARS 386 million in the fiscal year ended June 30, 2019. This is mainly due to a ARS 774 million increase in the Agricultural Business, from a gain of ARS 1,666 million in the fiscal year ended June 30, 2018 to a gain of ARS 892 million in the fiscal year ended December June 30, 2019, and a ARS 479 million increase in the Urban Properties and Investment Business.

Other operating results, net from our joint ventures increased by ARS 162 million (352%), from a gain of ARS 46 million in the fiscal year ended June 30, 2018 to a gain of ARS 208 million in the fiscal year ended June 30, 2019.

In turn, total other operating results, net on account of expenses and promotion fund increased by ARS 20 million (1,000%), from a loss of ARS 2 million in the fiscal year ended June 30, 2018 to a gain of ARS 18 million in the fiscal year ended June 30, 2019.

Other operating results, net generated by inter-segment transactions decrease by ARS 7 million (175%), from ARS 4 million in the fiscal year ended June 30, 2018 to ARS 11 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to expenses and collective promotion fund or business inter-segment transactions), total other operating results, net decreased by ARS 1,428 million (89%), from ARS 1,599 million in the fiscal year ended June 30, 2018 to ARS 171 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 777 million decrease in the Agricultural Business and a ARS 651 million decrease in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net decreased by ARS 777 million (47%), from ARS 1,658 million in the fiscal year ended June 30, 2018 to ARS 881 million in the fiscal year ended June 30, 2019. Other operating results, net from the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 10.0% during the period ended June 30, 2018 to 4% during the period ended June 30, 2019.

Agricultural Production. Other operating results, net associated with our Agricultural Production segment increased by ARS 482 million, from a loss of ARS 22 million during fiscal year 2018 to a gain of ARS 460 million during fiscal year 2019, mainly as a result of Brasilagro’s and Cresud’s commodity derivatives.

Land Transformation and Sales. Other operating results, net from this segment decreased by ARS 1,305 million from a gain of ARS 1,568 million during fiscal year 2018 to a gain of ARS 263 million during fiscal year 2019.

Others. Other Operating results, net associated with the Others segment rose ARS 46 million, from a gain of ARS 112 million during fiscal year 2018 to a gain of ARS 158 million during fiscal year 2019, primarily in connection with the operations of our subsidiary FYO.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net increased by ARS 651 million (1,103%), from ARS 59 million in the fiscal year ended June 30, 2018 to ARS 710 million in the fiscal year ended June 30, 2019. Excluding Other operating results, net from the Operations Center in Israel, Other operating results, net, according to information by segments, increased by 1,103%. In addition, total other operating results, net, measured as a percentage of total revenues, according to information by segments, decreased from 0% during the period ended June 30, 2018 to 4% during the period ended June 30, 2019, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total other operating results, net, measured as a percentage of total revenues, increased from 0% during the period ended June 30, 2018 to 4% during the period ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Other operating results, net from the Shopping Malls segment decreased by 3.5%, from a net loss of ARS 113 million during fiscal year 2018 to a net loss of ARS 117 million during fiscal year 2019, mainly as a result of: (i) an increase in charity charges of ARS 46 millions; partially offset by: (ii) a recovery of litigation costs of ARS 25 million and (iii) an increase in the interest for late payment that is charged to our customers of ARS 34 million. Other operating results, net from this segment as a percentage of the revenues from this segment slightly increased from 1.1% negative during the year ended June 30, 2018 to 1.3% negative during the year ended June 30, 2019.

Offices. Other operating results, net, associated with our Offices segment increased by 76%, from a net loss of ARS 25 million during the year ended June 30, 2018 to a net loss of ARS 44 million during the year ended June 30, 2019, mainly as a consequence of an increase in donations, among other items. Other operating results, net, of this segment, as a percentage of this segment’s revenues, increased from 1.7% negative during the year ended June 30, 2018 to 1.8% negative during the year ended June 30, 2019.

Sales and developments. Other operating results, net, associated with our Sales and Developments segment decreased by 308.1%, from a net profit of ARS 148 million during the year ended June 30, 2018 to a net loss of ARS 308 million during the year ended June 30, 2019, mainly as a result of a provision set up for the plot of land owned by Puerto Retiro S.A., thus generating a negative result of ARS 304 million, compared to the previous year in which a positive result was obtained due to the sale of floors of Intercontinental Building by IRSA Propiedades Comerciales. Other operating results, net, of this segment, as a percentage of this segment's revenues, decreased from 45.8% positive during the year ended June 30, 2018 to 25.6% negative during the year ended June 30, 2019.

Hotels. Other operating results, net, associated with the Hotels segment increased 386%, from a net loss of ARS 43 million during the year ended June 30, 2018 to a net profit of ARS 123 million during the year ended June 30, 2019, mainly due to an insurance recovery associated with a boiler-related loss. Other operating results, net, of this segment, as a percentage of this segment's revenues increased from 1.6% negative during the year ended June 30, 2018 to 3.9% positive during the year ended June 30, 2019.

International. Other operating results, net, of this segment increased by 58.1%, from a net loss of ARS 62 million during the year ended June 30, 2018 to a net loss of ARS 26 million during the year ended June 30, 2019, mainly due to lower donations and tax charges.

Corporate. Other operating results, net, associated with the Corporate segment did not show variations during the reported fiscal years.

Others. Other operating results, net, associated with the Others segment decreased by 1,038.9%, from a net profit of ARS 36 million during the year ended June 30, 2018 to a net loss of Ps 338 million during the year ended June 30, 2019, mainly due to a negative result generated by the sale of TARS hop S.A. and lower results from Entertainment Holdings S.A. Other net operating results, of this segment, as a percentage of this segment's revenues decreased from 72% positive during the year ended June 30, 2018 to 164.9% negative during the year ended June 30, 2019.

Management fees 2019 vs 2018

We entered into a management agreement with Consultores Asset Management S.A., which provides for payment of fees equivalent to 10% of our profits for advisory services in relation to any matters related to business and investments, such as farming, real estate, finance, hotel, etc. Management fees amounted to ARS 1,568 million during fiscal year 2018. During fiscal year 2019 no results were recognized on this account.

Profit/ (loss) from operations 2019 vs 2018

As a result of the factors described above, total profit / (loss) from operations, according to the income statement, decreased by ARS 61,922 million (196%), from a profit of ARS 31,650 million in the fiscal year ended June 30, 2018 to a loss of ARS 30,272 million in the fiscal year ended June 30, 2019. Such variation was mainly due to a ARS 44 million decrease in the Agricultural Business, from a profit of ARS 3,427 million in the fiscal year ended June 30, 2018 to a profit of ARS 3,383 million in the fiscal year ended June 30, 2019, and a ARS 61,878 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an increase in the Operations Center in Israel of ARS 31 million offset by a decrease in the Operations Center in Argentina of ARS 61,847 million.

Profit / (loss) from operations from our joint ventures increased by ARS 2,178 million (204%), from a loss of ARS 1,070 million in the fiscal year ended June 30, 2018 to a profit of ARS 1,108 million in the fiscal year ended June 30, 2019.

In turn, total profit / (loss) from operations on account of expenses and promotion fund increased by ARS 1,490 million (91%), from a loss of ARS 1,632 million in the fiscal year ended June 30, 2018 to a gain of ARS 142 million in the fiscal year ended June 30, 2019.

Profit / (loss) from operations generated by inter-segment transactions varied by ARS 7 million (233%), from a gain ARS 3 million in the fiscal year ended June 30, 2018 to a loss ARS 4 million in the fiscal year ended June 30, 2019.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to expenses and collective promotion fund or business inter-segment transactions), total profit/ (loss) from operations decreased by ARS 65,583 million (191%), from ARS 34,349 million in the fiscal year ended June 30, 2018 to a loss ARS 31,234 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 1,619 million decrease in the Agricultural Business and a ARS 63,964 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 31 million, and a decrease in the Operations Center in Argentina of ARS 63,933 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total profit / (loss) from operations decreased by ARS 1,619 million (32%), from ARS 4,990 million in the fiscal year ended June 30, 2018 to ARS 3,371 million in the fiscal year ended June 30, 2019. The Profit / (loss) from operations of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 30% during the period ended June 30, 2018 to 16% during the period ended June 30, 2019.

Agricultural Production. Profit / (loss) from operations of this segment increased by ARS 547 million, from a profit of ARS 1,677 million in fiscal year 2018 to a profit of ARS 2,224 million in fiscal year 2019.

Land Transformation and Sales. Profit / (loss) from operations of this segment decreased by ARS 2,596 million, from a profit of ARS 3,543 million in fiscal year 2018 to a loss of ARS 947 million in fiscal year 2019.

Corporate. Profit / (loss) from operations of this segment decreased by ARS 53 million from a loss of ARS 242 million in fiscal year 2018 to a loss of ARS 295 million in fiscal year 2019.

Others. Profit / (loss) from operations of this segment increased by ARS 483 million from a profit of ARS 12 million in fiscal year 2018 to a profit of ARS 495 million in fiscal year 2019.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total profit / (loss) from operations decreased by ARS 63,933 million (217%), from ARS 29,443 million in the fiscal year ended June 30, 2018 (out of which ARS 84 million derive from the Operations Center in Israel and ARS 29,443 million from the Operations Center in Argentina) to ARS 34,490 million in the fiscal year ended June 30, 2019 (out of which ARS 115 million derive from the Operations Center in Israel and ARS 34,490 million from the Operations Center in Argentina). Excluding the profit / (loss) from operations of the Operations Center in Israel, profit / (loss) from operations, according to information by segments, decreased by 217%. In addition, total profit / (loss) from operations, measured as a percentage of total revenues, according to information by segments, decreased from 197% during the period ended June 30, 2018 to 214% during the period ended June 30, 2019, mainly as a result of the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total profit / (loss) from operations , measured as a percentage of total revenues, increased from 197% during the period ended June 30, 2018 to 214% during the period ended June 30, 2019.

Operations Center in Argentina

Shopping Malls. Operating income from the Shopping Malls segment decreased, from a profit of ARS 14,663 million during fiscal year 2018, to a loss of ARS 37,033 million during fiscal year 2019.

Offices. Profit from operations associated with our Offices segment, decreased by 62.8%, from a profit of ARS 7,183 million during the year ended June 30, 2018 to a profit of ARS 2,673 million during the year ended June 30, 2019. The variation is mainly due to a decrease of ARS 6,047 million from the net gain from fair value adjustment of investment properties. Profit from operations of the Offices segment as a percentage of this segment's revenues decreased from 500.2% during the year ended June 30, 2018 to 111% during the year ended June 30, 2019.

Sales and developments. Profit from operations associated with our Sales and Developments segment decreased by 91.5%, from an ARS 7,935 million profit during the year ended June 30, 2018 to an ARS 678 million profit during the year ended June 30, 2019. This decrease is mainly due to a decrease of ARS 7,136 million in the net gain from fair value adjustment of investment properties. Profit from operations of the Sales and Developments segment as a percentage of this segment's revenues decreased from 2,456% during the year ended June 30, 2018 to 56.3% during the year ended June 30, 2019.

Hotels. Profit from operations associated with the Hotels segment showed an increase of 1,149.3%, from a loss of ARS 69 million during the year ended June 30, 2018 to a profit of ARS 724 million during the year ended June 30, 2019. This increase is mainly due to the increase in the average rate per room of our hotel portfolio (measured in pesos), thus generating an increase in revenues, and to the insurance recovery associated with the boiler-related loss in Intercontinental Hotel. Profit from operations of the Hotels segment as a percentage of this segment's revenues increased from 2.6% during the year ended June 30, 2018 to 22.8% during the year ended June 30, 2019.

International. Profit from operations associated with our International segment changed by 31.7%, from a loss of ARS 189 million during the year ended June 30, 2018 to a loss of ARS 129 million during the year ended June 30, 2019. This variation is due to lower donations and tax charges.

Corporate. Profit from operations associated with our Corporate segment decreased by 35%, from a loss of ARS 414 million during the year ended June 30, 2018 to a loss of ARS 559 million during the year ended June 30, 2019, mainly affected by general and administrative expenses.

Others. Profit from operations associated with our Others segment decreased, from a net profit of ARS 334 million during the year ended June 30, 2018 to a net loss of ARS 844 million during the year ended June 30, 2019. This variation is mainly due to an ARS 793 million decrease in the net gain from fair value adjustment of investment properties. Profit from operations of the Others segment as a percentage of this segment's revenues decreased from 668% profit during the year ended June 30, 2018 to 411.7% loss during the year ended June 30, 2019.

Operations Center in Israel

Corporate. Profit from operations of the Corporate segment went from a net loss of ARS 84 million during the period ended June 30, 2018 to a net loss of ARS 115 million during the year ended June 30, 2019. This variation was due to (i) a real revaluation of the NIS against the Argentine peso of approximately 22%, and (ii) the positive outcome of Ma'ariv's trial during the previous period.

Share of profit/ (loss) of associates and joint ventures 2019 vs 2018

The total share of profit/(loss) of associates and joints ventures, according to the income statement, decreased by ARS 4,466 million 137%), from a loss of ARS 3,261 million in the fiscal year ended June 30, 2018 to a loss of ARS 7,727 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 259 million decrease in the Agricultural Business, from a gain of ARS 291 million in the fiscal year ended June 30, 2018 to a profit of ARS 32 million in the fiscal year ended June 30, 2019, and a ARS 4,207 million decrease in the Urban Properties and Investment Business.

Our share of profit/(loss) of associates and joints ventures, primarily from Cresca (Agricultural Business), Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment) and; Cyrsa S.A., Puerto Retiro S.A. and Baicom Networks S.A. (Sales and developments segment), decreased by ARS 2,332 million (187%), from a profit of ARS 1,249 million in the fiscal year ended June 30, 2018 to a loss of ARS 1,083 million in the fiscal year ended June 30, 2019.

There are no results on account of expenses and promotion fund corresponding to share of profit/(loss) of associates and joints ventures.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to expenses and collective promotion fund or business inter-segment transactions), the total share of profit/(loss) of associates and joints ventures decreased by ARS 2,134 million (47%), from ARS 4,510 million in the fiscal year ended June 30, 2018 to ARS 6,644 million in the fiscal year ended June 30, 2019. This was mainly due to a ARS 28 million decrease in the Agricultural Business and a ARS 2,106 million decrease in the Urban Properties and Investment Business.

Agricultural Business

Agricultural Production. The profit from our interests in associates in this segment rose by 45.2% from a profit of ARS 42 million in fiscal year 2018 to a profit of ARS 61 million in fiscal year 2019, due to the profit from the investment in Agro-Uranga S.A.

Others. The loss from our interests in associates in this segment decrease by 2,350% from a loss of ARS 2 million in fiscal year 2018 to a loss of ARS 49 million in fiscal year 2019, due to the profit/(loss) from the investment in Agrofy Global.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of profit/(loss) of associates and joints ventures decreased by ARS 2,106 million (46%), from ARS 4,550 million in the fiscal year ended June 30, 2018 to ARS 6,656 million in the fiscal year ended June 30, 2019. Excluding the share of profit/(loss) of associates and joints ventures from the Operations Center in Israel, the share of profit/(loss) of associates and joints ventures, according to information by segments, decreased by 46%.

Operations Center in Argentina

Shopping Malls. In the information by segments, the share of profit / (loss) of associates and joint ventures Nuevo Puerto Santa Fe S.A. is exposed consolidated, line by line in this segment.

Offices. In the information by segments, the share of profit / (loss) of associates and joint ventures Quality S.A. is exposed consolidated, line by line in this segment.

Sales and Developments. The share of profit / (loss) of associates and joint ventures Cyrsa S.A., Puerto Retiro S.A. and Baicom Networks S.A. are exposed consolidated line by line. The result from our participation in our associate Manibil S.A., which is disclosed in this line, decreased by ARS 45 million, from a profit of ARS 5 million during the fiscal year ended June 30, 2018 to a loss of ARS 40 million during the fiscal year ended June 30, 2019.

Hotels. This segment does not show results from the net share of profit / (loss) of associates and joint ventures.

International. The net share of profit / (loss) of associates of this segment increased by 16.9%, from a loss of ARS 4,763 million during the fiscal year ended June 30, 2018 to a loss of ARS 3,960 million during the fiscal year ended June 30, 2019, mainly generated by a negative result from our investment in New Lipstick LLC of ARS 4,007 million.

Others. The net share of profit / (loss) of associates from the Others segment decreased by ARS 1,376.9%, from a profit of ARS 208 million during the fiscal year ended June 30, 2018 to a loss of ARS 2,656 million during the fiscal year ended June 30, 2019, mainly as a result of a loss from our investments in Banco Hipotecario S.A. in the amount of ARS 2,597 million.

Financial results, net 2019 vs 2018

The Group financial results, net increased by ARS 21,267 million, from a loss of ARS 24,838 million for fiscal year 2018 to a loss of ARS 3,571 million for fiscal year 2019. This was mainly due to: (i) a positive variation of the net exchange difference that went from a loss of ARS 21,086 million during the fiscal year ended June 30, 2018 to a profit of ARS 2,835 million during the fiscal year ended June 30, 2019. This variation lies in the fact that in fiscal year 2019 inflation was higher than devaluation (47% vs. 56%, respectively); (ii) a loss of ARS 6,360 in Israel pertaining to the debt exchange in fiscal year 2018; partially offset by an increase in net interest expense that went from a loss of ARS 21,062 million during the fiscal year ended June 30, 2018 to a loss of ARS 23,569 million during the fiscal year ended June 30, 2019.

Income tax 2019 vs 2018

The Company applies the deferred tax method to calculate the income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year went from a profit of ARS 10,195 million during fiscal year 2018, to a loss of ARS 571 million during fiscal year 2019 ARS 2,656 million during the fiscal year ended June 30, 2019, mainly as a result of a loss from our investments in Banco Hipotecario S.A. in the amount of out of which a loss of ARS 5,384 million derives from the Agricultural Business and a profit of ARS 4,813 million derives from the Operation Center in Argentina.

Profit for the fiscal year ended June 30, 2019 vs 2018

As a result of the factors described above, our net profit for the year, including the effect of discontinued operations, decreased by ARS 74,932 million from a net profit of ARS 31,087 million in fiscal year 2018 to a net loss of ARS 43,845 million in fiscal year 2019, out of which a loss of ARS 2,281 million derives from the Agricultural Business, a loss of ARS 39,647 million derives from the Operation Center in Argentina and a loss of ARS 1,817 million derives from the Operation Center in Israel.

Results of Operations for the Three Months ended September 30, 2020 compared to the Three Months ended September 30, 2019

				Urban Properties and Investment business
	Agricultural business			Operations Center in Argentina			Operations Center in Israel			Subtotal			Total segment information			Joint ventures			Adjustments			Total Statement of Income / Financial Position			Elimination of inter-segment transactions and non-reportable assets<br>/ liabilities (iv)
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	8,355	8,777	(422)	1,219	3,613	(2,394)	-	-	-	1,219	3,613	(2,394)	9,574	12,390	(2,816)	(8)	(26)	18	405	909	(504)	(295)	(191)	(104)	9,676	13,082	(3,406)
Costs	(7,141)	(7,520)	379	(651)	(744)	93	-	-	-	(651)	(744)	93	(7,792)	(8,264)	472	14	11	3	(460)	(956)	496	254	119	135	(7,984)	(9,090)	1,106
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	662	466	196	-	-	-	-	-	-	-	-	-	662	466	196	-	-	-	-	-	-	17	45	(28)	679	511	168
Changes in the<br>net realizable value of agricultural products after<br>harvest	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)
Gross profit / (loss)	2,404	2,254	150	568	2,869	(2,301)	-	-	-	568	2,869	(2,301)	2,972	5,123	(2,151)	6	(15)	21	(55)	(47)	(8)	(24)	(27)	3	2,899	5,034	(2,135)
Net gain from<br>fair value adjustment of investment properties	46	25	21	24,467	12,644	11,823	-	-	-	24,467	12,644	11,823	24,513	12,669	11,844	(837)	(548)	(289)	-	-	-	-	-	-	23,676	12,121	11,555
Gain from<br>disposal of farmlands	81	290	(209)	-	-	-	-	-	-	-	-	-	81	290	(209)	-	-	-	-	-	-	-	-	-	81	290	(209)
General and<br>administrative expenses	(336)	(376)	40	(651)	(648)	(3)	(5)	(28)	23	(656)	(676)	20	(992)	(1,052)	60	1	5	(4)	-	-	-	12	15	(3)	(979)	(1,032)	53
Selling<br>expenses	(773)	(805)	32	(452)	(301)	(151)	-	-	-	(452)	(301)	(151)	(1,225)	(1,106)	(119)	2	5	(3)	-	-	-	10	10	-	(1,213)	(1,091)	(122)
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	288	436	(148)	(25)	(63)	38	-	-	-	(25)	(63)	38	263	373	(110)	1	-	1	9	12	(3)	2	(2)	4	275	383	(108)
Management<br>fees	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(470)	-	(470)	-	-	-	(470)	-	(470)
Profit / (Loss) from operations	1,710	1,824	(114)	23,907	14,501	9,406	(5)	(28)	23	23,902	14,473	9,429	25,612	16,297	9,315	(827)	(553)	(274)	(516)	(35)	(481)	-	(4)	4	24,269	15,705	8,564
Share of<br>(loss) / profit of associates and joint<br>ventures	(12)	108	(120)	(472)	346	(818)	-	-	-	(472)	346	(818)	(484)	454	(938)	618	416	202	-	-	-	-	-	-	134	870	(736)
Segment profit / (loss)	1,698	1,932	(234)	23,435	14,847	8,588	(5)	(28)	23	23,430	14,819	8,611	25,128	16,751	8,377	(209)	(137)	(72)	(516)	(35)	(481)	-	(4)	4	24,403	16,575	7,828

(I)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(II)

Includes gross profit/ (loss) of ARS (55) and ARS (47) corresponding to Building Administration Expenses and Collective Promotion Fund (FPC), as of September 30, 2020 and 2019, respectively.

Agricultural Business

The following table shows a summary of the Agricultural Business lines for the three-month period ended September 30, 2020 and 2019.

	Agricultural production			Land transformation and sales			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.19	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	5,741	6,222	(481)	-	-	-	-	-	-	2,614	2,555	59	8,355	8,777	(422)
Costs	(4,923)	(5,431)	508	(8)	(7)	(1)	-	-	-	(2,210)	(2,082)	(128)	(7,141)	(7,520)	379
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	662	453	209	-	-	-	-	-	-	-	13	(13)	662	466	196
Changes in the<br>net realizable value of agricultural products after<br>harvest	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)
Gross profit / (loss)	2,008	1,775	233	(8)	(7)	(1)	-	-	-	404	486	(82)	2,404	2,254	150
Net gain from<br>fair value adjustment of investment properties	-	-	-	46	25	21	-	-	-	-	-	-	46	25	21
Gain from<br>disposal of farmlands	-	-	-	81	290	(209)	-	-	-	-	-	-	81	290	(209)
General and<br>administrative expenses	(206)	(249)	43	(1)	(1)	-	(57)	(51)	(6)	(72)	(75)	3	(336)	(376)	40
Selling<br>expenses	(534)	(591)	57	-	-	-	-	-	-	(239)	(214)	(25)	(773)	(805)	32
Other<br>operating results, net	(1,097)	172	(1,269)	1,320	211	1,109	-	-	-	65	53	12	288	436	(148)
Profit / (Loss) from operations	171	1,107	(936)	1,438	518	920	(57)	(51)	(6)	158	250	(92)	1,710	1,824	(114)
Share of<br>profit of associates and joint ventures	(7)	17	(24)	-	-	-	-	-	-	(5)	91	(96)	(12)	108	(120)
Segment profit / (loss)	164	1,124	(960)	1,438	518	920	(57)	(51)	(6)	153	341	(188)	1,698	1,932	(234)

Urban Properties and Investment Business

Operations Center in Argentina

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Argentina for the three-month period ended September 30, 2020 and 2019.

	Shopping Malls			Offices			Sales and developments			Hotels			Internacional			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	367	2,086	(1,719)	542	698	(156)	39	84	(45)	6	702	(696)	263	3	260	-	-	-	2	40	(38)	1,219	3,613	(2,394)
Costs	(134)	(180)	46	(46)	(38)	(8)	(97)	(57)	(40)	(128)	(431)	303	(221)	(4)	(217)	-	-	-	(25)	(34)	9	(651)	(744)	93
Gross profit / (loss)	233	1,906	(1,673)	496	660	(164)	(58)	27	(85)	(122)	271	(393)	42	(1)	43	-	-	-	(23)	6	(29)	568	2,869	(2,301)
Net gain from<br>fair value adjustment of investment properties	1,178	602	576	12,653	6,591	6,062	10,096	5,153	4,943	-	-	-	2	-	2	-	-	-	538	298	240	24,467	12,644	11,823
General and<br>administrative expenses	(328)	(256)	(72)	(88)	(54)	(34)	(66)	(66)	-	(57)	(107)	50	(17)	(41)	24	(74)	(88)	14	(21)	(36)	15	(651)	(648)	(3)
Selling<br>expenses	(73)	(141)	68	(38)	(29)	(9)	(305)	(53)	(252)	(19)	(77)	58	(16)	-	(16)	-	-	-	(1)	(1)	-	(452)	(301)	(151)
Other<br>operating results, net	(24)	(27)	3	(1)	(5)	4	(6)	(16)	10	8	(4)	12	-	(1)	1	-	-	-	(2)	(10)	8	(25)	(63)	38
Profit / (Loss) from operations	986	2,084	(1,098)	13,022	7,163	5,859	9,661	5,045	4,616	(190)	83	(273)	11	(43)	54	(74)	(88)	14	491	257	234	23,907	14,501	9,406
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	(7)	1	(8)	-	-	-	(387)	(228)	(159)	-	-	-	(78)	573	(651)	(472)	346	(818)
Segment profit / (loss)	986	2,084	(1,098)	13,022	7,163	5,859	9,654	5,046	4,608	(190)	83	(273)	(376)	(271)	(105)	(74)	(88)	14	413	830	(417)	23,435	14,847	8,588

Operations Center in Israel

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Israel for the three-month period ended September 30, 2020 and 2019.

	Real Estate			Supermarkets			Telecommunications			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Gross profit / (loss)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net gain from<br>fair value adjustment of investment properties	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23
Selling<br>expenses	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23

Results of operations for the three-month period ended September 30, 2020 and 2019.

Revenues 2020 vs. 2019

Total revenues, according to the income statement, increased by ARS 3,406 million (26.0%), from ARS 13,082 million in the three-month period ended September 30, 2019 to ARS 9,676 million in the three-month period ended September 30, 2020. Such decrease was mainly due to a ARS 532 million decrease in the Agricultural Business, which went from ARS 8,601 million in the three-month period ended September 30, 2019 to ARS 8,069 million in the three-month period ended September 30, 2020, and a ARS 2,874 million decrease in the Urban Properties and Investment Business.

Total revenues from joint ventures increased by ARS 18 million (69.2%), from a loss of ARS 26 million in the three-month period ended September 30, 2019 to a loss of ARS 8 million in the three-month period ended September 30, 2020.

In turn, total revenues on account of building administration expenses and promotion fund decreased by ARS 504 million (55.4%), from ARS 909 million in the three-month period ended September 30, 2019 to ARS 405 million in the three-month period ended September 30, 2020.

Revenues from inter-segment transactions varied by ARS 104 million (54.5%), from ARS 191 million in the three-month period ended September 30, 2019 to ARS 295 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total revenues decreased by ARS 2,816 million (22.7%), from ARS 12,390 million in the three-month period ended September 30, 2019 to ARS 9,574 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 422 million decrease in the Agricultural Business and a ARS 2,394 million decrease in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total revenues decreased by ARS 422 million (4.8%), from ARS 8,777 million in the three-month period ended September 30, 2019 to ARS 8,355 million in the three-month period ended September 30, 2020.

Agricultural Production. Revenues from the Agricultural Production segment decrease by 7.7% from ARS 6,222 million during the three-month period ended September 30, 2019 to ARS 5,741 million during the three-month period ended September 30, 2020. Such increase is mainly attributable to:

●

An ARS 333 million decrease in revenues from crop sales, resulting from a 10.2% decrease in the average price of crops sold, from ARS 13,986 per ton in period ended September 30, 2019 to ARS 12,557 per ton in period ended September 30, 2020, offset by an increase of 5,896 tons in the volume of crops sold in period ended September 30, 2020 as compared to the previous period.

●

An ARS 288 million decrease in revenues from sugarcane sales, resulting from an increase of 18,266 tons (2%) in the volume of sugarcane sold in the three-month period ended September 30, 2020 compared to the previous period, coupled with a 15% decrease in the average price of sugarcane sold, from ARS 1,649 per ton in period ended September 30, 2019 to ARS 1,401 per ton in period ended September 30, 2020, as a result of an improvement in sugarcane quality (higher TRS, i.e., total recoverable sugar);

●

An ARS 160 million increase in revenues from cattle sales, primarily attributable to a 21% rise in tons of cattle sold in the three-month period ended September 30, 2020 compared to the previous period, coupled with a 11% decrease in the average price of cattle; and

●

An ARS 20 million decrease in revenues from leases and services attributable to: (i) an increase of ARS 2 million (6%) in revenues from leases mainly caused by an increase in the hectares leased to third parties in Brazil and their value (due to the increase in the price of soybeans); and (ii) a ARS 22 million decrease in revenues from feedlot services and pastures.

Others. Revenues from the Others segment increased by 2.3% from ARS 2,555 million during the three-month period ended September 30, 2019 to ARS 2,614 million during the three-month period ended September 30, 2020. Such increase is mainly attributable to:

●

An ARS 40 million decrease in revenues from agro-industrial activities, due to a lower volume sold in the local market, and their lower average sales prices, which is partially offset by an increase in the volume of sales to the foreign market (approx. a rise of 18%), but a lower average prices compared to the previous period, due to the low values of the Chinese market, and the lower Hilton and Kosher volume operated.

●

An ARS 99 million increase in revenues from sales on consignment, brokerage fees and others, due to a higher volume of crop trading transactions, partially offset by lower price differences obtained in consignment sales in the current period (an extraordinary result was generated in the previous period due the high volatility of the exchange rate).

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total revenues decreased by ARS 2,394 million (66.3%), from ARS 3,613 million in the three-month period ended September 30, 2019 to ARS 1,219 million in the three-month period ended September 30, 2020.

Operations Center in Argentina

Shopping Malls. Revenues from the Shopping Malls segment decreased by 82.4% from ARS 2,086 million during the three-month period ended September 30, 2019 to ARS 367 million during the three-month period ended September 30, 2020. Such fall is mainly attributable to: (i) a ARS 926 million decrease in revenues from permanent and variable leases as a result of a decrease of 79.4% in total sales of our lessees, which increased from ARS 25,113 million during the period 2019 to S $ 5,174 million during 2020. With respect to the immediately preceding quarter, an increase of 207% is observed in real terms due to the reopening of some of the company’s shopping malls that were operating as of September 30, 2020; (ii) a decrease in revenues from contingent rent of ARS 437 million; (iii) a decrease of ARS 118 million in revenues from parking fees; (iv) a decrease of ARS 114 million in income from admission fees; and (v) a decrease of ARS 72 million in averaging of scheduled rent escalation.

Offices. Revenues from the Offices segment decreased by 22.3% from ARS 698 million during the three-month period ended September 30, 2019 to ARS 542 million during the three-month period ended September 30, 2020. The variation is mainly attributable to a 22.6% increase in revenues from leases from ARS 691 million during the three-month period ended September 30, 2020 to ARS 535 million during the three-month period ended September 30, 2020, mainly as a result of due to the sale of the Bouchard building and the sale of the apartments in the Boston Tower building during the quarter ended September 30, 2020.

Sales and Developments. Revenues from the Sales and Developments segment recorded a 53.6% decrease, from ARS 84 million during the three-month period ended September 30, 2019 to ARS 39 million during the three-month period ended September 30, 2020. This segment often varies significantly from period to period due to the non-recurrence of different sales transactions carried out by the Group over time.

Hotels. Revenues from our Hotels segment decreased by 99.1% from ARS 702 million during the three-month period ended September 30, 2019 to ARS 6 million during the three-month period ended September 30, 2020, mainly due to the fact that revenues were significantly affected by a decline in the activity due to the outbreak of the COVID-19 pandemic.

International. Revenues from our International segment increased by ARS 260 million, from ARS 3 million during the three-month period ended September 30, 2019 to ARS 263 million during the three-month period ended September 30, 2020, due to the sale of the Stowe house at price of USD 3.45 million, generating a profit of USD 0.3 million.

Corporate. Revenues associated with our Corporate segment showed no variations for the reported fiscal years.

Others. Revenues from the Others segment decreased by 95.0% from ARS 40 million during the three-month period ended September 30, 2019 to ARS 2 million during the three-month period ended September 30, 2020, mainly due to a decrease in revenues from La Arena and LA RURAL S.A. – OFC S.R.L. – OGDEN S.A. – ENTRETENIMIENTO UNIVERSAL S.A. – Unión Transitoria – (administrator of the Centro de Convenciones y Exposiciones de la Ciudad de Buenos Aires), as a consequence of the COVID-19 pandemic.

Costs 2020 vs. 2019

Total costs, according to the income statement, decreased by ARS 1,106 million (12.2%), from ARS 9,090 million in the three-month period ended September 30, 2019 to ARS 7,984 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 514 million decrease in the Agricultural Business, from ARS 7,401 million in the three-month period ended September 30, 2019 to ARS 6,887 million in the three-month period ended September 30, 2020, and a ARS 592 million decrease in the Urban Properties and Investment Business.

Costs from our joint ventures increased by ARS 3 million (27.3%), from a profit of ARS 11 million in the three-month period ended September 30, 2019 to a profit of ARS 14 million in the three-month period ended September 30, 2020.

In turn, total costs on account of building administration expenses and promotion fund decreased by ARS 496 million (51.9%), from ARS 956 million in the three-month period ended September 30, 2019 to ARS 460 million in the three-month period ended September 30, 2020.

Costs from inter-segment transactions varied by ARS 135 million (113.4%), from ARS 119 million in the three-month period ended September 30, 2019 to ARS 254 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account profit / (loss) from operations from our joint businesses and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total costs decreased by ARS 472 million (5.7%), from ARS 8,264 million in the three-month period ended September 30, 2019 to ARS 7,792 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 379 million decrease in the Agricultural Business and a ARS 93 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs decreased by ARS 379 million (5.0%), from ARS 7,520 million in the three-month period ended September 30, 2019 to ARS 7,141 million in the three-month period ended September 30, 2020. The costs of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 85.7% during the three-month period ended September 30, 2019 to 85.5% during the three-month period ended September 30, 2020.

Agricultural Production. The costs of the Agricultural Production segment decreased by 9.4% from ARS 5,431 million during the three-month period ended September 30, 2019 to ARS 4,923 million during the three-month period ended September 30, 2020, primarily as a consequence of:

●

An ARS 241 million decrease in costs of crop sales, mainly resulting from an 9% decrease in the average cost per ton of crops sold in the three-month period ended September 30, 2020, from ARS 11,662 million in the three-month period ended September 30, 2019 to ARS 10,590 million in the three-month period ended September 30, 2020; offset by an increase of 5,896 tons in the volume of crops sold in the three-month period ended September 30, 2020 as compared to the previous period.

●

An ARS 409 million decrease in the costs of sugarcane sales, mainly as a result of an decrease of 18,266 tons (2%) in the volume of sugarcane sold in the three-month period ended September 30, 2020 compared to the previous period, coupled with a 23% decrease in the average cost of sugarcane per ton sold in the period, from ARS 1,623 per ton in the three-month period ended September 30, 2019 to ARS 1,258 per ton in the three-month period ended September 30, 2020;

●

An ARS 109 million increase in the costs of cattle sales, mainly as a result of the additional 987 tons of cattle sold in the three-month period ended September 30, 2020 compared to the previous period, coupled with a 6% rise in the average cost of cattle sold; and

●

An ARS 33 million increase in costs of leases and services, mainly attributable to an ARS 19 million increase in the Feedlot service cost and an ARS 52 million drop in lease costs and seed production.

Costs of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 87.3% during the three-month period ended September 30, 2019 to 85.8% during the three-month period ended September 30, 2020.

Land transformation and sales. The costs of the Land transformation and sales segment increased by 14.3% from ARS 7 million during the three-month period ended September 30, 2019 to ARS 8 million during the three-month period ended September 30, 2020.

Others. The costs of the Others segment increased by 6.1% from ARS 2,082 million during the three-month period ended September 30, 2019 to ARS 2,210 million during the three-month period ended September 30, 2020, mainly as a result of:

●

An ARS 15 million decrease in agro-industrial costs, mostly driven by a drop in the cuttle volume.

●

An ARS 143 million increase in other segments, mainly triggered by the sale of supplies and the highest volume of tons traded in grain exchange operations.

The costs of the Others segment, measured as a percentage of revenues from this segment, increased from 81.5% during the three-month period ended September 30, 2019 to 84.5% during the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total costs decreased by ARS 93 million (12.5%), from ARS 744 million in the three-month period ended September 30, 2019 to ARS 651 million in the three-month period ended September 30, 2020. Likewise, total costs, measured as a percentage of total revenues, according to information by segments, increased from 20.6% during the three-month period ended September 30, 2019 to 53.4% during the three-month period ended September 30, 2020.

Operations Center in Argentina

Shopping Malls. Costs associated with the Shopping Malls segment decreased by 25.6%, from ARS 180 million during the three-month period ended September 30, 2019 to ARS 134 million during the three-month period ended September 30, 2020, mainly due to: (i) a decrease in leases and building administration expenses of ARS 36 million; and (ii) a decrease rent and expenses of ARS 13 and (iii) a decrease in fees and compensation for services of ARS 4 million, partially offset by (iv) an increase of ARS 7 million in salaries, social security costs and other personnel. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, increased from 8.6% during the three-month period ended September 30, 2019 to 36.5% during the three-month period ended September 30, 2020.

Offices. Costs associated with the Offices segment increased by 21.1%, from ARS 38 million during the three-month period ended September 30, 2019 to ARS 46 million during the three-month period ended September 30, 2020, mainly due to (i) an increase of ARS 7 million in salaries, social security costs and other personnel (ii) an increase in amortization and depreciation of ARS 3 million; and (iii) a decrease in maintenance expenses of ARS 3 million, offset by (iv) a decrease in leases and building administration expenses of ARS 7 million. Costs associated with the Offices segment, measured as a percentage the revenues from this segment, increased from 5.4% during the three-month period ended September 30, 2019 to 8.5% during the three-month period ended September 30, 2020.

Sales and Developments. Costs associated with our Sales and Developments segment recorded a 70.2% increase from ARS 57 million during the three-month period ended September 30, 2019 to ARS 97 million during the three-month period ended September 30, 2020, mainly due to higher costs of goods and services sold related to Catalinas of ARS 43 million. Costs associated with the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 67.9% during the three-month period ended September 30, 2019 to 248.7% during the three-month period ended September 30, 2020.

Hotels. Costs associated with the Hotels segment decreased by 70.3%, from ARS 431 million during the three-month period ended September 30, 2019 to ARS 128 million during the three-month period ended September 30, 2020, mainly as a result of (i) a ARS 136 million decrease in the costs of salaries, social security and other personnel expenses; (ii) a ARS 81 million decrease in maintenance, repairs and services; (iii) a ARS 41 million decrease in food, beverages and other hotel expenses, and (iv) a ARS 20 million decrease in fees and compensation for services. Costs associated with the Hotels segment, measured as a percentage of revenues from this segment, increased from 61.4% during the three-month period ended September 30, 2019 to 2,133.3% during the three-month period ended September 30, 2020.

International. Costs associated with the International segment increased 5,425%, amounting to ARS 221 million during the three-month period ended September 30, 2020 and ARS 4 million during the three-month period ended September 30, 2019, mainly due to an increase in the cost of sales of properties of ARS 219 million related to the sale of the Stowe house. Costs associated with the International segment, measured as a percentage of revenues from this segment, decreased from 133.3% during the three-month period ended September 30, 2019 to 84.0% during the three-month period ended September 30, 2020.

Corporate. Costs associated with the Corporate segment did not vary in the reported periods.

Others. Costs associated with the Others segment decreased by 26.5%, from ARS 34 million during the three-month period ended September 30, 2019 to ARS 25 million during the three-month period ended September 30, 2020, mainly as a result of: (i) a ARS 5 million decrease in the costs of salaries, social security and other personnel expenses and, (ii) a ARS 4 million decrease in maintenance charges.

Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2020 vs. 2019

The profit/ (loss) from the total initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest, according to the income statement, increased by ARS 168 million (32.9%), from ARS 511 million in the three-month period ended September 30, 2019 to ARS 679 million in the three-month period ended September 30, 2020.

The profit/ (loss) related to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest from inter-segment transactions varied by ARS 28 million (62.2%), from ARS 45 million in the three-month period ended September 30, 2019 to ARS 17 million in the three-month period ended September 30, 2020.

Such variation was mainly as a result of:

●

Profits from cattle production of ARS 87 million, mainly generated by Brazil due the fact that cattle prices rise during this period, and in Argentina due the fact that prices of the present period had a better performance against inflation, thus generating a positive variation both in holding profit / (loss) which was partially offset by the 10% decrease in production in the current period compared to the previous one due to the reduction in the stock in the present period;

●

An increase in profit/(loss) from crop production of ARS 287 million, mainly in Brazil, due to corn, due to a larger planted area, better yields and prices;

●

A decrease in profit/ (loss) from sugarcane production of ARS 166 million, mainly in Brazil, as a result of to higher production costs and less planted area, due to better yields and prices; and

●

A decrease in profits from the agro-industrial activity of ARS 12 million due to not maintaining stock in the present period.

Changes in the net realizable value of agricultural produce after harvest 2020 vs. 2019

Profits /(losses) from total changes in the net realizable value of agricultural produce after harvest, according to the income statement, decreased by ARS 3 million (0.6%), from ARS 531 million in the three-month period ended September 30, 2019 to a profit of ARS 528 million in the three-month period ended September 30, 2020.

This variation is mainly originated in Brazil, due to better prices in the present period, in corn and soybeans, offset by a lower profit in Argentina, generated by soybeans, due to the higher stock that the previous period showed (18-19 season), which is partially offset by a gain in corn, due to the fact that the price performance exceeded inflation in the current period.

Gross profit 2020 vs. 2019

As a result of the above mentioned factors, total gross profit, according to the income statement, decreased by ARS 2,135 million (42.4%), from ARS 5,034 million in the three-month period ended September 30, 2019 to ARS 2,899 million in the three-month period ended September 30, 2020. This was mainly due to the ARS 147 million increase in the Agricultural Business, from ARS 2,242 million in the three-month period ended September 30, 2019 to ARS 2,389 million in the three-month period ended September 30, 2020, and a ARS 2,282 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation is due to a decrease in the Operations Center in Argentina of ARS 2,282 million.

Gross (profit) / loss from our joint ventures increased by ARS 21 million (140.0%), from a loss of ARS 15 million in the three-month period ended September 30, 2019 to a gain of ARS 6 million in the three-month period ended September 30, 2020.

In turn, total gross (profit) / loss on account of building administration expenses and promotion fund decreased by ARS 8 million (17.0%), from a loss of ARS 47 million in the three-month period ended September 30, 2019 to a loss of ARS 55 million in the three-month period ended September 30, 2020.

Gross profit / (loss) generated by inter-segment transactions varied by ARS 3 million (11.1%), from ARS 27 million in the three-month period ended September 30, 2019 to ARS 24 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total gross profits decreased by ARS 2,151 million (42.0%), from ARS 5,123 million in the three-month period ended September 30, 2019 to ARS 2,972 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 150 million increase in the Agricultural Business and a ARS 2,301 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation was generated by a decrease in the Operations Center in Argentina of ARS 2,301 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit rise by ARS 150 million (6.7%), from ARS 2,254 million in the three-month period ended September 30, 2019 to ARS 2,404 million in the three-month period ended September 30, 2020. Gross profit from the Agricultural Business, measured as a percentage of revenues from this segment, increased from 25.7% during the three-month period ended September 30, 2019 to 28.8% during the three-month period ended September 30, 2020.

Agricultural Production. Gross profit from this segment increased by 13.1% from ARS 1,775 million in the three-month period ended September 30, 2019 to ARS 2,008 million in the three-month period ended September 30, 2020.

Land Transformation and Sales. Gross profit from this segment decreased by 14.3% from ARS 7 million in the three-month period ended September 30, 2019 to ARS 8 million in the three-month period ended September 30, 2020.

Others. Gross profit from this segment decreased by 16.9% from ARS 486 million in the three-month period ended September 30, 2019 to ARS 404 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

Shopping Malls. Gross profit from the Shopping Malls segment decreased by 87.8%, from ARS 1,906 million during the three-month period ended September 30, 2019 to ARS 233 million during the three-month period ended September 30, 2020, mainly as a result of a decrease in total sales of our lessees in real terms, thus resulting in lower percentage rentals under our lease agreements. Gross profit from the Shopping Malls segment, measured as a percentage of revenues from this segment, decreased from 91.4% during the three-month period ended September 30, 2019 to 63.5% during the three-month period ended September 30, 2020.

Offices. Gross profit from the Offices segment decreased by 24.8%, from ARS 660 million during the three-month period ended September 30, 2019 to ARS 496 million during the three-month period ended September 30, 2020. Gross profit from the Offices segment, measured as a percentage of revenues from this segment, decreased from 94.6% during the three-month period ended September 30, 2019 to 91.5% during the three-month period ended September 30, 2020.

Sales and developments. Gross profit from the Sales and Developments segment decreased by 314.8%, from ARS 27 million during the three-month period ended September 30, 2019 to ARS 58 million during the three-month period ended September 30, 2020. Gross profit from the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 32.1% during the three-month period ended September 30, 2019 to (148.7%) during the three-month period ended September 30, 2020.

Hotels. Gross profit from the Hotels segment decreased by 145.0% from ARS 271 million during the three-month period ended September 30, 2019 to ARS 122 million during the three-month period ended September 30, 2020. Gross profit from the Hotels segment, measured as a percentage of revenues from this segment, increased from 38.6% during the three-month period ended September 30, 2019 to (2,033.3%) during the three-month period ended September 30, 2020.

International. Gross profit from the International segment increased by 4,300.0%, recording a gross loss of ARS 1 million during the three-month period ended September 30, 2019 and a gross profit of ARS 42 million during the three-month period ended September 30, 2020. Gross (profit) / loss from the International segment, measured as a percentage of revenues from this segment, decreased from a (33.3%) profit during the three-month period ended September 30, 2019 to a 16.0% loss during the three-month period ended September 30, 2020.

Corporate. Gross profit from the Corporate segment did not show any variations during the reported fiscal years.

Others. Gross profit from the Others segment decreased by 483.3% from a profit of ARS 6 million during the three-month period ended September 30, 2019 to a loss of ARS 23 million during the three-month period ended September 30, 2020. Gross profit from the Others segment, measured as a percentage of revenues from this segment, increased from a 15.0% profit during the three-month period ended September 30, 2019 to a (1,150.0%) loss during the three-month period ended September 30, 2020.

Net gain (loss) from changes in the fair value of investment properties 2020 vs. 2019

Total gain (loss) from changes in the fair value of investment properties, according to the income statement, increased by ARS 11,555 million (95.3%), from a gain of ARS 12,121 million in the three-month period ended September 30, 2019 to a gain of ARS 23,676 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 21 million increase in the Agricultural Business, from a gain of ARS 25 million in the three-month period ended September 30, 2019 to a gain of ARS 46 million in the three-month period ended September 30, 2020, and a ARS 11,534 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an ARS 11,534 million increase in the Operations Center in Argentina.

The gain (loss) from changes in the fair value of investment properties from our joint ventures decreased by ARS 289 million (52.7%), from a gain of ARS 548 million in the three-month period ended September 30, 2019 to a loss of ARS 837 million in the three-month period ended September 30, 2020.

There is no gain / (loss) from building administration expenses and promotion fund in relation to the changes in the fair value of investment properties.

There is no gain / (loss) from inter-segment transactions in relation to the changes in the fair value of investment properties.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), the total net gain/(loss) from changes in the fair value of investment properties increased by ARS 11,844 million (93.5%), from a gain of ARS 12,669 million in the three-month period ended September 30, 2019 to a gain of ARS 24,513 million in the three-month period ended September 30, 2020. Such variation was mainly due to an ARS 21 million increase in the Agricultural Business and an ARS 11,823 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation derives from an increase in the Operations Center in Argentina of ARS 11,823 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total net gain /(loss) from changes in the fair value of investment properties increased by ARS 21 million (84.0%), from ARS 25 million in the three-month period ended September 30, 2019 to ARS 46 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

The net result from changes in fair value of investment properties for the period ended September 30, 2020, according to information by segment, was a gain of ARS 24,467 million (a gain of ARS 1,178 million from our segment Shopping Malls; a gain of ARS 12,653 million from the Offices segment; a gain of ARS 10,096 million from the Sales and Developments segment; a gain of ARS 2 million from the International segment and a gain of ARS 538 million from the Others segment).

The net impact of prices in pesos of our properties was primarily a consequence of the changes in the macroeconomic conditions: (i) a decrease in the estimated GDP growth rate in Argentina for 2020 remained in order of -11.5%, (ii) between June 2019 and June 2020, the Argentine Peso depreciated 8% against the U.S. Dollar (from ARS 70.26 per USD1 to ARS 75.98 per USD1), which mainly generated a reduction in the estimated cash flow in U.S. Dollars from our Shopping Malls segment.

Gain from disposal of farmlands 2020 vs. 2019

The total gain from disposal of farmlands, according to the income statement, decreased by ARS 209 million (72.1%), from ARS 290 million in the three-month period ended September 30, 2019 to ARS 81 million in the three-month period ended September 30, 2020.

Based on the information by segment (taking into account all our joint ventures and inter-segment eliminations), the total gain from disposal of farmlands decreased by ARS 209 million (72.1%), from ARS 290 million in the three-month period ended September 30, 2019 to ARS 81 million in the three-month period ended September 30, 2020.

Period ended September 30, 2020

●

The Group, through its subsidiary Brasilagro, concluded the sale of 2,160 hectares (1,714 useful hectares) of the Bananal Establishment (Magalhães municipality - BA). The establishment was in Asset Groups held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the Purchase Agreement were fully met on July 31, 2020 after receipt of BRL 5.5 million (equivalent to ARS 85 million). The nominal value of the sale is BRL 28 million (equivalent to ARS 396 million), of which the Company has already received BRL 7.5 million (equivalent to ARS 113 million). For this operation, they will not recognize results since the asset was recorded at its fair value.

Period ended September 30, 2019

●

The Group, through its subsidiary BrasilAgro, entered into a purchase-sale agreement for 2,160 hectares (1,714 arable hectares) of the Jatobá Establishment, a rural property located in the city of Jaborandi – BA. The sales price was 302 soybean bags per arable hectare or ARS 394 million. On September 2, 2019, the buyer paid the first installment consisting in 38,000 soybean bags in the amount of ARS 45 million. The balance will be paid in six annual installments. Delivery of possession and the gain of the transaction was recognized on September 30, 2019, amounting to approximately ARS 272 million.

General and administrative expenses 2020 vs. 2019

Total general and administrative expenses, according to the income statement, decreased by ARS 53 million (5.1%), from ARS 1,032 million in the three-month period ended September 30, 2019 to ARS 979 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 38 million decrease in the Agricultural Business, from ARS 371 million in the three-month period ended September 30, 2019 to ARS 333 million in the three-month period ended September 30, 2020, and a ARS 15 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an decrease in the Operations Center in Israel of ARS 23 million, offset by a increase in the Operations Center in Argentina of ARS 8 million.

General and administrative expenses from our joint ventures decreased by ARS 4 million (80.0%), from ARS 5 million in the three-month period ended September 30, 2019 to ARS 1 million in the three-month period ended September 30, 2020.

There are no profits / (losses) on account of building administration expenses and promotion fund associated with general and administrative expenses.

General and administrative expenses from inter-segment transactions decreased by ARS 3 million (20.0%), from ARS 15 million in the three-month period ended September 30, 2019 to ARS 12 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those relating to building administration expenses and collective promotion fund and business inter-segment transactions), total general and administrative expenses decreased by ARS 60 million (5.7%), from ARS 1,052 million in the three-month period ended September 30, 2019 to ARS 992 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 40 million decrease in the Agricultural Business and an ARS 20 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 23 million, offset by a decrease in the Operations Center in Argentina of ARS 3 million.

Agricultural Business

Agricultural Production. General and administrative expenses associated with the Agricultural Production segment decreased by 17.3%, from ARS 249 million in the three-month period ended September 30, 2019 to ARS 206 million in the three-month period ended September 30, 2020, mainly caused by the increase of ARS 5 million in expenses related to grain operations; the decrease of ARS 35 million in expenses related to the sugarcane operation; the decrease of ARS 3 million in expenses related to the finance operations; and the decrease of ARS 10 million in expenses associated with the activity of rentals and agricultural services. General and administrative expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 4.0% during the three-month period ended September 30, 2019 to 3.6% during the three-month period ended September 30, 2020.

Land Transformation and Sales. General and administrative expenses associated with the Land Transformation and Sales segment remained stable at ARS 1 million in the fiscal years ended June 30, 2019 and 2020.

Corporate. General and administrative expenses associated with the Corporate segment increased by 11.8%, from ARS 51 million during the three-month period ended September 30, 2019 to ARS 57 million during the three-month period ended September 30, 2020.

Others. General and administrative expenses associated with the Others segment decreased by 4.0%, from ARS 75 million during the three-month period ended September 30, 2019 to ARS 72 million during the three-month period ended September 30, 2020. General and administrative expenses of the Others segment, measured as a percentage of revenues from this segment, decreased from 2.9% during the three-month period ended September 30, 2019 to 2.8% during the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

Shopping Malls. Administrative expenses of Shopping Malls increased by 28.1%, from ARS 256 million during the three-month period ended September 30, 2019 to ARS 328 million during the three-month period ended September 30, 2020, mainly as a result of: (i) an increase in fees payable to directors of ARS 110 million, (ii) an ARS 3 million increase in amortization and depreciation; and (iii) an ARS 10 million decrease in , and (iv) a decrease in bank expenses. Administrative expenses of the Shopping Malls segment, as a percentage of revenues of this segment, increased from 12.3% during the three-month period ended September 30, 2019 to 89.4% during the three-month period ended September 30, 2020.

Offices. General and administrative expenses of our Offices segment increased 63.0%, from ARS 54 million during the three-month period ended September 30, 2019 to ARS 88 million during the three-month period ended September 30, 2020, mainly as a result of: (i) a ARS 7 million increase in directors fees; (ii) an ARS 5 million increase in salaries, social security costs and other personnel administrative expenses. General and administrative expenses of the Offices segment, measured as a percentage of revenues from this segment, increased from 7.7% during the three-month period ended September 30, 2019 to 16.2% during the three-month period ended September 30, 2020.

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment remaining at ARS 66 million during the three-month period ended September 30, 2019 and during the three-month period ended September 30, 2020. General and administrative expenses of the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 78.6% during the three-month period ended September 30, 2019 to 169.2% during the three-month period ended September 30, 2020.

Hotels. General and administrative expenses associated with our Hotels segment decreased by 46.7%, from ARS 107 million during the three-month period ended September 30, 2019, to ARS 57 million during the three-month period ended September 30 September 2020, mainly as a result of: (i) a decrease of ARS 26 million in salaries, social security contributions and other personnel expenses; (ii) a decrease of ARS 10 million in maintenance, security, cleaning and repairs and the like; (iii) a decrease of ARS 8 million in fees and compensation for services; and (iv) a decrease of ARS 5 million in taxes, fees and contributions. General and administrative expenses associated with the Hotels segment measured as a percentage of this segment’s revenues increased from 15.2% during the three-month period ended September 30, 2019, to 950.0% during the three-month period. months ended September 30, 2020.

International. General and administrative expenses associated with our International segment decreased by 58.5% from ARS 41 million during the three-month period ended September 30, 2019, to ARS 17 million during the three-month period ended September 30 September 2020, mainly as a result of a lower charge in salaries, social charges and other personnel expenses of ARS 25 million.

Corporate. General and administrative expenses associated with our Corporate segment decreased by 15.9%, from ARS 88 million during the three-month period ended September 30, 2019 to ARS 74 million during the three-month period ended September 30, 2020, mainly as a result of (i) a decrease in salaries, social charges and other personnel expenses of ARS 10 million; and (ii) a lower charge in traveling, transportation and stationery of ARS 6 million.

Others. General and administrative expenses associated with our Others segment decreased by41.7% from ARS 36 million during the three-month period ended September 30, 2019 to ARS 21 million during the three-month period ended September 30, 2020, mainly due to: (i) a decrease of ARS 12 million in maintenance, repairs and services; and (ii) a decrease of ARS 5 million in fees and compensation for services.

Operations Center in Israel

Corporate. General and administrative expenses associated with the Corporate segment decreased from ARS 28 million during the three-month period ended September 30, 2019 to ARS 5 million during the three-month period ended September 30, 2020. Such variation was due to a decrease in fees and compensation for services.

Selling expenses 2020 vs 2019

Total selling expenses, according to the income statement, increased by ARS 122 million (11.2%), from ARS 1,091 million in the three-month period ended September 30, 2019 to ARS 1,213 million in the three-month period ended September 30, 2020. This was primarily due to an ARS 32 million decrease in the Agricultural Business, from ARS 795 million in the three-month period ended September 30, 2019 to ARS 763 million in the three-month period ended September 30, 2020, and an ARS 154 million increase in the Urban Properties and Investment Business.

Selling expenses from our joint ventures decreased by ARS 3 million (60.0%), from ARS 5 million in the three-month period ended September 30, 2019 to ARS 2 million in the three-month period ended September 30, 2020.

Selling expenses generated by inter-segment transactions remained the same at ARS 10 million in the three-month period ended September 30, 2020 and 2019.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total selling expenses increased by ARS 119 million (10.8%), from ARS 1,106 million in the three-month period ended September 30, 2019 to ARS 1,225 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 32 million decrease in the Agricultural Business and an ARS 151 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses decreased by ARS 32 million (4.0%), from ARS 805 million in the three-month period ended September 30, 2019 to ARS 773 million in the three-month period ended September 30, 2020. Selling expenses of the Agricultural Business, measured as a percentage of revenues from this segment, increased from 9.2% during the three-month period ended September 30, 2019 to 9.3% during the three-month period ended September 30, 2020.

Agricultural Production. Selling expenses from the Agricultural Production segment decreased by 9.6% from ARS 591 million in the three-month period ended September 30, 2019 to ARS 534 million in the three-month period ended September 30, 2020, mainly as a result of an ARS 93 million decrease in selling expenses related to grain trading, an ARS 41 million increase in expenses for sugarcane operations, an ARS 2 million decrease in selling expenses for cattle and an ARS 3 million decrease in selling expenses associated with leases and agricultural services. Selling expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 9.5% during the three-month period ended September 30, 2019 to 9.3% during the three-month period ended September 30, 2020.

Others. Selling expenses from the Others segment increased by 11.7% from ARS 214 million in the three-month period ended September 30, 2019 to ARS 239 million in the three-month period ended September 30, 2020, mainly as a consequence of an ARS 39 million increase in selling expenses associated with the agro-industrial business and an ARS 14 million decrease in the selling expenses related to other segments. Selling expenses from the Others segment, measured as a percentage of revenues from this segment, increased from 8.4% during the three-month period ended September 30, 2019 to 9.1% during the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

Shopping Malls. Selling expenses of the Shopping Malls segment decreased by 48.2%, from ARS 141 million during the three-month period ended September 30, 2019 to ARS 73 million during the fiscal year ended 2020, mainly as a result of: (i) an increase in the charge for taxes, rates and levies of ARS 53 million; (ii) a decrease in the charge for publicity, advertising and other commercial expenses of ARS 7 million; and (iii) a decrease in fees and compensation for services of ARS 4 million. Selling expenses, measured as a percentage of revenues from this Shopping Malls segment, increased from 6.8% during period ended September 30, 2019 to 19.9% during period ended September 30, 2020.

Offices. Selling expenses associated with our Offices segment increased by 31.0% from ARS 29 million during the three-month period ended September 30, 2019 to ARS 38 million during the three-month period ended September 30, 2020. Such variation was mainly generated as a result of: (i) an increase in the charge for taxes, rates and levies of ARS 12 million (ii) an ARS 3 million decrease in the charge for doubtful accounts. Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, increased from 4.2% during the three-month period ended September 30, 2019 to 7.0% during the three-month period ended September 30, 2020.

Sales and Developments. Selling expenses associated with our Sales and Developments segment increased by 475.5% from ARS 53 million during period ended September 30, 2019 to ARS 305 million during the three-month period ended September 30, 2020. Such variation was mainly generated as a result of (i) an ARS 139 million increase in taxes, rates and levies; (ii) an ARS 115 million increase in fees and compensation for services, offset by: (iii) an ARS 8 million decrease in the charge for publicity, advertising and other commercial expenses. Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 63.1% during the three-month period ended September 30, 2019 to 782.1% during the three-month period ended September 30, 2020.

Hotels. Selling expenses associated with our Hotels segment decreased by 75.3% from ARS 77 million during the three-month period ended September 30, 2019 to ARS 19 million during the three-month period ended September 30, 2020, mainly as a result of: (i) an ARS 31 million decrease in the charge for taxes, rates and levies; (ii) an ARS 8 million decrease in publicity, advertising and other commercial expenses. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, increased from 11.0% during the three-month period ended September 30, 2019 to 316.7% during the three-month period ended September 30, 2020.

International. Selling expenses associated with the International segment increased by 100.0%, from ARS 0 million during the three-month period ended September 30, 2019 to ARS 16 million during the three-month period ended September 30, 2020 in concept of fees and compensation for services.

Corporate. Selling expenses associated with the Corporate segment remained unchanged in both periods.

Others. Selling expenses associated with our Others segment remained unchanged in both periods. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, increased from 2.5% during the three-month period ended September 30, 2019 to 50.0% during the three-month period ended September 30, 2020.

Other operating results, net 2020 vs 2019

Total other operating results, net, according to the income statement, decreased by ARS 108 million (28.2%), from a gain of ARS 383 million in the three-month period ended September 30, 2019 to a gain of ARS 275 million in the three-month period ended September 30, 2020. This is mainly due to an ARS 144 million increase in the Agricultural Business, from a gain of ARS 437 million in the three-month period ended September 30, 2019 to a gain of ARS 293 million in the period ended September 30, 2020, and an ARS 36 million decrease in the Urban Properties and Investment Business.

Other operating results, net, from our joint ventures increased by ARS 1 million (100.0%), from no other operating results in the three-month period ended September 30, 2019 to a gain of ARS 1 million in the three-month period ended September 30, 2020.

In turn, total other operating results, net, on account of building administration expenses and promotion fund decreased by ARS 3 million (25.0%), from a gain of ARS 12 million in the three-month period ended September 30, 2019 to a gain of ARS 9 million in the three-month period ended September 30, 2020.

Other operating results, net, generated by inter-segment transactions recorded a variation of ARS 4 million (200.0%) from ARS 2 million in the three-month period ended September 30, 2019 to ARS 2 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total other operating results, net, decreased by ARS 110 million (29.5%), from ARS 373 million in the three-month period ended September 30, 2019 to ARS 263 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 148 million decrease in the Agricultural Business and an ARS 38 million increase in the Urban Properties and Investment Business.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net, decreased by ARS 148 million (33.9%), from ARS 436 million in the three-month period ended September 30, 2019 to ARS 288 million in the three-month period ended September 30, 2020. Other operating results, net, from the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 5.0% during the three-month period ended September 30, 2019 to 3.4% during the three-month period ended September 30, 2020.

Agricultural Production. Other operating results, net, associated with our Agricultural Production segment decreased by ARS 1,269 million, from a gain of ARS 172 million in the three-month period ended September 30, 2019 to a loss of ARS 1,097 million in the fiscal year ended 2020.

Land Transformation and Sales. Other operating results, net, from this segment increased by ARS 1,109 million from a gain of ARS 211 million in the three-month period ended September 30, 2019 to a gain of ARS 1,320 million in the three-month period ended September 30, 2020.

Others. Other operating results, net, associated with the Others segment increased by ARS 12 million, from a gain of ARS 53 million in the three-month period ended September 30, 2019 to a gain of ARS 65 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

Shopping Malls. Other operating results, net, from the Shopping Malls segment decreased by 11.1%, from a net loss of ARS 27 million during the three-month period ended September 30, 2019 to a net loss of ARS 24 million during the three-month period ended September 30, 2020, mainly as a result of: (i) a lower charge for donations of ARS 7 million; and (ii) a lower contingency charge of ARS 3 million, partially offset by; (iii) a decrease in interest earned on operating assets. The other operating results, net, of this segment, measured as a percentage of revenues from this segment, went from (1.3%) during the three-month period ended September 30, 2019 to (6.5%) during the three-month period ended September 30, 2020.

Offices. Other operating results, net, associated with our Offices segment increased by 80.0%, from a net loss of ARS 5 million during the three-month period ended September 30, 2019 to a net loss of ARS 1 million during the three-month period ended September 30, 2020, mainly as a result of an ARS 6 million decrease in the charge for donations, among other items. Other operating results, net, from the Offices segment, measured as a percentage of revenues from this segment, decreased from (0.7%) during the three-month period ended September 30, 2019 to (0.2%) during the three-month period ended September 30, 2020.

Sales and Developments. Other operating results, net associated with our Sales and Developments segment increased by 62.5%, from a net loss of ARS 16 million during the three-month period ended September 30, 2019 to a net loss of ARS 6 million during the three-month period ended September 30, 2020, mainly due to a lower charge for personal property tax of ARS 6 million and a reduction in donations of ARS 5 million, among other items. Other operating results, net, from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from (19.0%) during the three-month period ended September 30, 2019 to (15.4%) during the three-month period ended September 30, 2020.

Hotels. Other operating results, net, associated with the Hotels segment increased by 300.0%, from a net loss of ARS 4 million during the three-month period ended September 30, 2019 to a net gain of ARS 8 million during the three-month period ended September 30, 2020, mainly due to a recovery related to mainly due to the revenue from the sale of property, plant and equipment for ARS 14 million. Other operating results, net, from the Hotels segment, measured as a percentage of revenues from this segment, increased from (0.6%) during the three-month period ended September 30, 2019 to 133.3% during the three-month period ended September 30, 2020.

International. Other operating results, net, from this segment went from a net loss of ARS 1 million during the three-month period ended September 30, 2019 to no charges to the three-month period ended September 30, 2020, mainly due to a decrease in donations.

Corporate. Other operating results, net, associated with the Corporate segment showed no variations in the reported fiscal years.

Others. Other operating results, net, from this segment decreased by 80.0%, from a net loss of ARS 10 million during the three-month period ended September 30, 2019 to a net loss of ARS 2 million during the three-month period ended September 30, 2020, mainly derived from a loss derived from the sale of Tarshop S.A. Other operating results, net, from the Others segment, measured as a percentage of revenues from this segment, decreased from (25.0%) during the three-month period ended September 30, 2019 to (100.0%) during the three-month period ended September 30, 2020.

Management fees 2020 vs 2019

The company entered into a management agreement with Consultores Asset Management S.A., which provides for payment of fees equivalent to 10% of our profits for advisory services in relation to any matters related to business and investments, such as farming, real estate, finance, hotel, etc. Management fees amounted to ARS 470 million during the three-month period ended September 30, 2020. During fiscal year 2019 no results were recognized on this account.

Operating results 2020 vs 2019

As a result of the factors described above, total operating results, according to the income statement, increased by ARS 8,564 million (54.5%), from a gain of ARS 15,705 million in the three-month period ended September 30, 2019 to a gain of ARS 24,269 million in the three-month period ended September 30, 2020. Such variation was mainly due to an ARS 585 million decrease in the Agricultural Business, from a profit of ARS 1,828 million in the three-month period ended September 30, 2019 to a profit of ARS 1,243 million in the three-month period ended September 30, 2020, and an ARS 9,149 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a increase in the Operations Center in Israel of ARS 23 million and an increase in the Operations Center in Argentina of ARS 9,126 million.

Operating results from our joint ventures decreased by ARS 274 million (49.5%), from a loss of ARS 553 million in the three-month period ended September 30, 2019 to a loss of ARS 827 million in the three-month period ended September 30, 2020.

In turn, total operating results on account of building administration expenses and collective promotion fund decreased by ARS 481 million (1374.3%), from ARS 35 million in the three-month period ended September 30, 2019 to ARS 516 million in the three-month period ended September 30, 2020.

Operating results from inter-segment transactions varied by ARS 4 million (100.0%), from ARS 4 million in the three-month period ended September 30, 2019 to ARS 0 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total operating results increased by ARS 9,315 million (57.2%), from ARS 16,297 million in the three-month period ended September 30, 2019 to ARS 25,612 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 114 million increase in the Agricultural Business and an ARS 9,429 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 23 million, and an increase in the Operations Center in Argentina of ARS 9,406 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total operating results decreased by ARS 114 million (6.3%), from ARS 1,824 million in the three-month period ended September 30, 2019 to ARS 1,710 million in the three-month period ended September 30, 2020. Operating results of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 20.8% during the period ended June 30, 2019 to 20.5% during the period ended June 30, 2020.

Agricultural Production. Operating results of the Agricultural Production segment decreased by ARS 936 million, from a profit of ARS 1,107 million in the three-month period ended September 30, 2019 to a profit of ARS 171 million in the three-month period ended September 30, 2020.

Land Transformation and Sales. Operating results of the Land Transformation and Sales segment increased by ARS 920 million, from a profit of ARS 518 million in the three-month period ended September 30, 2019 to a profit of ARS 1,438 million in the three-month period ended September 30, 2020.

Corporate. Operating results of this Corporate segment decreased by ARS 6 million from a loss of ARS 51 million in the three-month period ended September 30, 2019 to a loss of ARS 57 million in the three-month period ended September 30, 2020.

Others. Operating results of the Others segment decreased by ARS 92 million from a profit of ARS 250 million in the three-month period ended September 30, 2019 to ARS 158 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

Operations Center in Argentina

Shopping Malls. Operating results of the Shopping Malls segment decreased by 52.7%, from a profit of ARS 2,084 million during the three-month period ended September 30, 2019 to a profit of ARS 986 million during the three-month period ended September 30, 2020.

Offices. Operating results associated with our Offices segment increased by 81.8%, from a net profit of ARS 7,163 million during the three-month period ended September 30, 2019 to a net profit of ARS 13,022 million during the three-month period ended September 30, 2020. Such variation was mainly due to an increase of ARS 6,062 million in profit/(loss) from fair value adjustments of investment properties. Operating results from the Offices segment, measured as a percentage of revenues from this segment, increased from 1,026.2% during the three-month period ended September 30, 2019 to 2,402.6% during the three-month period ended September 30, 2020.

Sales and Developments. Operating results associated with our Sales and Developments segment increased by 91.5%, from a net profit of ARS 5,045 million during the three-month period ended September 30, 2019 to a net profit of ARS 9,661 million during the three-month period ended September 30, 2020. Such increase is mainly associated with the result of changes in the fair value of investment properties. Operating results of the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 6,006.0% during the three-month period ended September 30, 2019 to 24,771.8% during the three-month period ended September 30, 2020.

Hotels. Operating results associated with the Hotels segment decreased by 328.9%, from a net profit of ARS 83 million during the three-month period ended September 30, 2019 to a net loss of ARS 190 million during the three-month period ended September 30, 2020. This decrease is mainly due to the fact that revenues were strongly affected by the drop in activity in the current period, due to COVID 19. Operating results associated with the Hotels segment, measured as a percentage of revenues from this segment, increased from 11.8% during the three-month period ended September 30, 2019 to 3,166.7% during the three-month period ended September 30, 2020.

International. Operating results associated with our International segment recorded a 125.6% variation from a net loss of ARS 43 million during the three-month period ended September 30, 2019 to a net loss of ARS 11 million during the three-month period ended September 30, 2020. This variation is due to the revenue generated by the sale of the Stowe home.

Corporate. Operating results associated with our Corporate segment increased by 15.9% from a loss of ARS 88 million during the fiscal year ended June 3, 2019 to a loss of ARS 74 million during the three-month period ended September 30, 2020 mainly affected by overhead and administrative expenses.

Others. Operating results associated with our Others segment increased from a net profit of ARS 257 million during the three-month period ended September 30, 2019 to a net profit of ARS 491 million during the three-month period ended September 30, 2020. This increase is mainly due to the result from changes in the fair value of investment properties.

Operations Center in Israel

Corporate. Operating results of the Corporate segment went from a net loss of ARS 28 million during the three-month period ended September 30, 2019 to a net loss of ARS 5 million during the three-month period ended September 30, 2020, mainly attributable to a decrease in fees and remuneration for services.

Share of profit/ (loss) of associates and joint ventures 2020 vs 2019

The total share of profit/(loss) of associates and joint ventures, according to the income statement, decreased by ARS 736 million (84.6%), from a profit of ARS 870 million in the three-month period ended September 30, 2019 to a profit of ARS 134 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 121 million decrease in the Agricultural Business, from a gain of ARS 108 million in the three-month period ended September 30, 2019 to a loss of ARS 13 million in the three-month period ended September 30, 2020, and an ARS 615 million decrease in the Urban Properties and Investment Business.

Our share of profit/(loss) of associates and joint ventures, primarily from Cresca (Agricultural Business), Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment), Cyrsa S.A., Puerto Retiro S.A. and Baicom Networks S.A. (Sales and Developments segment), increased by ARS 202 million (48.6%), from a profit of ARS 416 million in the three-month period ended September 30, 2019 to a profit of ARS 618 million in the three-month period ended September 30, 2020.

There are no results on account of building administration expenses and promotion fund corresponding to share of profit/(loss) of associates and joint ventures.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), the total share of profit/(loss) of associates and joint ventures decreased by ARS 938 million (206.6%), from ARS 454 million in the three-month period ended September 30, 2019 to ARS 484 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 120 million decrease in the Agricultural Business and an ARS 818 million increase in the Urban Properties and Investment Business.

Agricultural Business

Agricultural Production. The share of profit/(loss) of associates and joint ventures in the Agricultural Production segment decreased by 141.2% from a profit of ARS 17 million in the three-month period ended September 30, 2019 to a loss of ARS 7 million in the three-month period ended September 30, 2020.

Others. The operating results in the Others segment decrease by 105.5% from a profit of ARS 91 million in the three-month period ended September 30, 2019 to a loss of ARS 5 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of profit/(loss) of associates and joint ventures decreased by ARS 818 million (236.4%), from ARS 346 million in the three-month period ended September 30, 2019 to ARS 472 million in the three-month period ended September 30, 2020. The share of profit/(loss) of associates and joint ventures, according to information by segments, decreased by 236.4%.

Operations Center in Argentina

Shopping Malls. In the information by segments, the share of profit / (loss) of joint venture Nuevo Puerto Santa Fe S.A. is exposed consolidated, line by line in this segment.

Offices. In the information by segments, the share of profit / (loss) of joint venture Quality S.A. is exposed consolidated, line by line in this segment.

Sales and Developments. The share of profit / (loss) of joint ventures Cyrsa S.A. and Puerto Retiro S.A. are exposed consolidated line by line. The share of profit/(loss) of our associate Manibil S.A., which is disclosed in this line, decreased by ARS 8 million during the three-month period ended September 30, 2020.

Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

International. The share of profit / (loss) of associates of this segment decreased by 69.7%, from a net loss of ARS 228 million during the three-month period ended September 30, 2019 to a net loss of ARS 387 million during the three-month period ended September 30, 2020, mainly generated by a positive result from our investment in New Lipstick LLC of ARS 334 million, offset by a negative result from our investment in Condor Hospitality of ARS 53 million.

Others. The share of profit / (loss) of associates from this segment decrease by 113.6%, went from a net profit of ARS 573 million during the three-month period ended September 30, 2019 to a loss of ARS 78 million in the three-month period ended September 30, 2020, mainly as a consequence of a loss from our investments in Banco Hipotecario S.A. for ARS 57 million.

Financial results, net 2020 vs 2019

The Group financial results, net recorded a variation of ARS 15,747 million, from a loss of ARS 18,251 million in the three-month period ended September 30, 2019 to a loss of ARS 2,504 million in the three-month period ended September 30, 2020. This was mainly due to: (i) an increase in interest expense in the Agricultural Business mainly due to the Notes, due to an increase in the debt of USD 141,237, due to the issuance of Notes XXV, XXVII, XXVIII, XXIX and XXX for USD 59,561, USD 5,747, USD 27,462, USD 83,025 and USD 25,003 respectively. The mentioned increase is offset by a decrease in the average rate, which went from 7.8523% to 6.6172%. Likewise, the increase in exchange rate (24%) also had an impact on interest; (ii) in the Real Estate Business, the variation in interest on Notes is due to a decrease in the debt in dollars, for USD 22 million, offset with the issuance of Class 3 and Class 6 Notes in pesos, by ARS 689 million. (iii) for bank loans in USD, due to the increase in the average rate from 3.12% to 5.61% between September 2019 and September 2020; with a 24% increase in the exchange rate with respect to the same period of the 2020 period. Said effects are mitigated by the decrease in debt by USD 138,057 and the increase in the exchange rate with respect to the previous period. This is offset by the decrease in overdraft interest, mainly due to the decrease in the range of interest rates, which were from 21% to 75% for the 2021 period, while for 2020 they were in the range of 59% to 130%; (iv) The decrease in the foreign exchange net of ARS 14,654 million is caused by the decrease due to the devaluation and the decrease in debt in foreign currency. The difference between devaluation and inflation tends to zero, while as of September 30, 2019 the difference between devaluation and inflation is 23%. This added to the fact that within the Group the loans in dollars were canceled through a loan in pesos in Galicia Bank of 230 million and Santander Rio through the transformation of the USD 6,0 million loan into a bank overdraft of $ 388 million; (v) The main loss in the results for derivative financial instruments, in the Agricultural Business is mainly due to the fact that in the current period there were more purchases than sales contracts and the average price between the price of the NDF versus the spot price was USD (1.176). While, in September 2019, the average difference between the price of NDFs versus spot is USD 0.406.

Income Tax 2020 vs 2019

The Company adopts the deferred tax method to calculate the income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year went from a loss of ARS 2,719 million during the three-month period ended September 30, 2019, to a loss of ARS 7,977 million during the three-month period ended September 30, 2020, out of which a loss of ARS 133 million derives from the agricultural business, and loss of ARS 7,844 million derives from the Operations Center in Argentina.

Net profit/(loss) 2020 vs 2019

As a result of the factors described above, our net profit/(loss) for the year, including the effect of discontinued operations, decreased by ARS 1,966 million from a net profit of ARS 9,492 million in the three-month period ended September 30, 2019 to a net profit of ARS 7,526 million in the three-month period ended September 30, 2020, israel which a profit of ARS 124 million derives from the agricultural business, a profit of ARS 14,138 million derives from the Operations Center in Argentina and a loss of ARS 470 million derives from management fees.

				Urban Properties and Investment business
	Agricultural business			Operations Center in Argentina			Operations Center in Israel			Subtotal			Total segment information			Joint ventures			Adjustments			Total Statement of Income / Financial Position			Elimination of inter-segment transactions and non-reportable assets<br>/ liabilities (iv)
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
	In million of<br>ARS
Revenues	8,355	8,777	(422)	1,219	3,613	(2,394)	-	-	-	1,219	3,613	(2,394)	9,574	12,390	(2,816)	(8)	(26)	18	405	909	(504)	(295)	(191)	(104)	9,676	13,082	(3,406)
Costs	(7,141)	(7,520)	379	(651)	(744)	93	-	-	-	(651)	(744)	93	(7,792)	(8,264)	472	14	11	3	(460)	(956)	496	254	119	135	(7,984)	(9,090)	1,106
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	662	466	196	-	-	-	-	-	-	-	-	-	662	466	196	-	-	-	-	-	-	17	45	(28)	679	511	168
Changes in the<br>net realizable value of agricultural products after<br>harvest	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)
Gross profit / (loss)	2,404	2,254	150	568	2,869	(2,301)	-	-	-	568	2,869	(2,301)	2,972	5,123	(2,151)	6	(15)	21	(55)	(47)	(8)	(24)	(27)	3	2,899	5,034	(2,135)
Net gain from<br>fair value adjustment of investment properties	46	25	21	24,467	12,644	11,823	-	-	-	24,467	12,644	11,823	24,513	12,669	11,844	(837)	(548)	(289)	-	-	-	-	-	-	23,676	12,121	11,555
Gain from<br>disposal of farmlands	81	290	(209)	-	-	-	-	-	-	-	-	-	81	290	(209)	-	-	-	-	-	-	-	-	-	81	290	(209)
General and<br>administrative expenses	(336)	(376)	40	(651)	(648)	(3)	(5)	(28)	23	(656)	(676)	20	(992)	(1,052)	60	1	5	(4)	-	-	-	12	15	(3)	(979)	(1,032)	53
Selling<br>expenses	(773)	(805)	32	(452)	(301)	(151)	-	-	-	(452)	(301)	(151)	(1,225)	(1,106)	(119)	2	5	(3)	-	-	-	10	10	-	(1,213)	(1,091)	(122)
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	288	436	(148)	(25)	(63)	38	-	-	-	(25)	(63)	38	263	373	(110)	1	-	1	9	12	(3)	2	(2)	4	275	383	(108)
Management<br>fees	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(470)	-	(470)	-	-	-	(470)	-	(470)
Profit / (Loss) from operations	1,710	1,824	(114)	23,907	14,501	9,406	(5)	(28)	23	23,902	14,473	9,429	25,612	16,297	9,315	(827)	(553)	(274)	(516)	(35)	(481)	-	(4)	4	24,269	15,705	8,564
Share of<br>(loss) / profit of associates and joint<br>ventures	(12)	108	(120)	(472)	346	(818)	-	-	-	(472)	346	(818)	(484)	454	(938)	618	416	202	-	-	-	-	-	-	134	870	(736)
Segment profit / (loss)	1,698	1,932	(234)	23,435	14,847	8,588	(5)	(28)	23	23,430	14,819	8,611	25,128	16,751	8,377	(209)	(137)	(72)	(516)	(35)	(481)	-	(4)	4	24,403	16,575	7,828

(I)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(II)

Includes gross profit/ (loss) of ARS (55) and ARS (47) corresponding to Building Administration Expenses and Collective Promotion Fund (FPC), as of September 30, 2020 and 2019, respectively.

Agricultural Business

The following table shows a summary of the Agricultural Business lines for the three-month period ended September 30, 2020 and 2019.

	Agricultural production			Land transformation and Sales			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.19	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	5,741	6,222	(481)	-	-	-	-	-	-	2,614	2,555	59	8,355	8,777	(422)
Costs	(4,923)	(5,431)	508	(8)	(7)	(1)	-	-	-	(2,210)	(2,082)	(128)	(7,141)	(7,520)	379
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	662	453	209	-	-	-	-	-	-	-	13	(13)	662	466	196
Changes in the<br>net realizable value of agricultural products after<br>harvest	528	531	(3)	-	-	-	-	-	-	-	-	-	528	531	(3)
Gross profit / (loss)	2,008	1,775	233	(8)	(7)	(1)	-	-	-	404	486	(82)	2,404	2,254	150
Net gain from<br>fair value adjustment of investment properties	-	-	-	46	290	(244)	-	-	-	-	-	-	46	290	(244)
Gain from<br>disposal of farmlands	-	-	-	81	25	56	-	-	-	-	-	-	81	25	56
General and<br>administrative expenses	(206)	(249)	43	(1)	(1)	-	(57)	(51)	(6)	(72)	(75)	3	(336)	(376)	40
Selling<br>expenses	(534)	(591)	57	-	-	-	-	-	-	(239)	(214)	(25)	(773)	(805)	32
Other<br>operating results, net	(1,097)	172	(1,269)	1,320	211	1,109	-	-	-	65	53	12	288	436	(148)
Profit / (Loss) from operations	171	1,107	(936)	1,438	518	920	(57)	(51)	(6)	158	250	(92)	1,710	1,824	(114)
Share of<br>profit of associates and joint ventures	(7)	17	(24)	-	-	-	-	-	-	(5)	91	(96)	(12)	108	(120)
Segment profit / (loss)	164	1,124	(960)	1,438	518	920	(57)	(51)	(6)	153	341	(188)	1,698	1,932	(234)

Urban Properties and Investment Business

Operations Center in Argentina

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Argentina for the three-month period years ended September 30, 2020 and 2019.

	Shopping Malls			Offices			Sales and development			Hotels			International			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	367	2,086	(1,719)	542	698	(156)	39	84	(45)	6	702	(696)	263	3	260	-	-	-	2	40	(38)	1,219	3,613	(2,394)
Costs	(134)	(180)	46	(46)	(38)	(8)	(97)	(57)	(40)	(128)	(431)	303	(221)	(4)	(217)	-	-	-	(25)	(34)	9	(651)	(744)	93
Gross profit / (loss)	233	1,906	(1,673)	496	660	(164)	(58)	27	(85)	(122)	271	(393)	42	(1)	43	-	-	-	(23)	6	(29)	568	2,869	(2,301)
Net gain from<br>fair value adjustment of investment properties	1,178	602	576	12,653	6,591	6,062	10,096	5,153	4,943	-	-	-	2	-	2	-	-	-	538	298	240	24,467	12,644	11,823
General and<br>administrative expenses	(328)	(256)	(72)	(88)	(54)	(34)	(66)	(66)	-	(57)	(107)	50	(17)	(41)	24	(74)	(88)	14	(21)	(36)	15	(651)	(648)	(3)
Selling<br>expenses	(73)	(141)	68	(38)	(29)	(9)	(305)	(53)	(252)	(19)	(77)	58	(16)	-	(16)	-	-	-	(1)	(1)	-	(452)	(301)	(151)
Other<br>operating results, net	(24)	(27)	3	(1)	(5)	4	(6)	(16)	10	8	(4)	12	-	(1)	1	-	-	-	(2)	(10)	8	(25)	(63)	38
Profit / (Loss) from operations	986	2,084	(1,098)	13,022	7,163	5,859	9,661	5,045	4,616	(190)	83	(273)	11	(43)	54	(74)	(88)	14	491	257	234	23,907	14,501	9,406
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	(7)	1	(8)	-	-	-	(387)	(228)	(159)	-	-	-	(78)	573	(651)	(472)	346	(818)
Segment profit / (loss)	986	2,084	(1,098)	13,022	7,163	5,859	9,654	5,046	4,608	(190)	83	(273)	(376)	(271)	(105)	(74)	(88)	14	413	830	(417)	23,435	14,847	8,588

Operations Center in Israel

The following table shows a summary of the Urban Properties and Investment Business lines of the Operations Center in Israel for the three-month period ended September 30, 2020 and 2019.

	Real Estate			Supermarkets			Telecommunications			Corporate			Others			Total
	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.	30.09.20	30.09.19	Var.
Revenues	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Gross profit / (loss)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net gain from<br>fair value adjustment of investment properties	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23
Selling<br>expenses	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23
Share of<br>profit of associates and joint ventures	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	-	-	-	-	-	(5)	(28)	23	-	-	-	(5)	(28)	23

Results of operations for the three-month period ended September 30, 2020 and 2019.

Revenues 2020 vs. 2019

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total revenues decreased by ARS 2,816 million (22.7%), from ARS 12,390 million in the three-month period ended September 30, 2019 to ARS 9,574 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 422 million decrease in the Agricultural Business and a ARS 2,394 million decrease in the Urban Properties and Investment Business.

Agricultural Business

●

Urban Properties and Investment Business

Operations Center in Argentina

Corporate. Revenues associated with our Corporate segment showed no variations for the reported fiscal years.

Costs 2020 vs. 2019

Total costs, according to the income statement, increased by ARS 1,106 million (12.2%), from ARS 9,090 million in the three-month period ended September 30, 2019 to ARS 7,984 million in the three-month period ended September 30, 2020. This was mainly due to a ARS 514 million decrease in the Agricultural Business, from ARS 7,401 million in the three-month period ended September 30, 2019 to ARS 6,887 million in the three-month period ended September 30, 2020, and a ARS 592 million decrease in the Urban Properties and Investment Business.

Therefore, according to information by segments (taking into account profit / (loss) from operations from our joint businesses and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total costs decreased by ARS 472 million (5.7%), from ARS 8,264 million in the three-month period ended September 30, 2019 to ARS 7,792 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 379 million decrease in the Agricultural Business and a ARS 93 million increase in the Urban Properties and Investment Business.

Agricultural Business

●

An ARS 15 million decrease in agro-industrial costs, mostly driven by a drop in the cuttle volume.

●

An ARS 143 million increase in other segments, mainly triggered by the sale of supplies and the highest volume of tons traded in grain exchange operations.

Urban Properties and Investment Business

Operations Center in Argentina

Corporate. Costs associated with the Corporate segment did not vary in the reported periods.

Others. Costs associated with the Others segment decreased by 34%, from ARS 34 million during the three-month period ended September 30, 2019 to ARS 25 million during the three-month period ended September 30, 2020, mainly as a result of: (i) a ARS 5 million decrease in the costs of salaries, social security and other personnel expenses and, (ii) a ARS 4 million decrease in maintenance charges.

Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2020 vs. 2019

The profit/ (loss) related to the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest from inter-segment transactions varied by ARS 28 million (62.2%), from ARS 45 million in the three-month period ended September 30, 2019 to ARS 17 million in the three-month period ended September 30, 2020.

Such variation was mainly as a result of:

●

An increase in profit/(loss) from crop production of ARS 287 million, mainly in Brazil, due to corn, due to a larger planted area, better yields and prices;

●

A decrease in profit/ (loss) from sugarcane production of ARS 166 million, mainly in Brazil, as a result of to higher production costs and less planted area, due to better yields and prices; and

●

A decrease in profits from the agro-industrial activity of ARS 12 million due to not maintaining stock in the present period.

Changes in the net realizable value of agricultural produce after harvest 2020 vs. 2019

Gross profit 2020 vs. 2019

In turn, total gross (profit) / loss on account of building administration expenses and promotion fund decreased by ARS 8 million (17.0%), from a loss of ARS 47 million in the three-month period ended September 30, 2019 to a loss of ARS 30 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), total gross profits decreased by ARS 2,151 million (42.0%), from ARS 5,123 million in the three-month period ended September 30, 2019 to ARS 2,972 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 150 million increase in the Agricultural Business and a ARS 2,301 million decrease in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation was generated by a decrease in the Operations Center in Argentina of ARS 2,301 million.

Agricultural Business

Land Transformation and Sales. Gross profit from this segment increased by 14.3% from ARS 7 million in the three-month period ended September 30, 2019 to ARS 1 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total gross profit decreased by ARS 2,301 million (80.2%), from ARS 2,869 million in the three-month period ended September 30, 2019 (out of which ARS 2,869 million derive from Operations Center in Argentina) to ARS 568 million in the three-month period ended September 30, 2020 (out of which ARS 568 million derive from the Operations Center in Argentina). Excluding gross profit from the Operations Center in Israel, gross profit, according to information by segments, decreased by 80.2%. In addition, total gross profit, measured as a percentage of total revenues, according to information by segments, decreased from 79.4% during the three-month period ended September 30, 2019 to 46.6% during the three-month period ended September 30, 2020, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total gross profit, measured as a percentage of total revenues, decreased from 79.4% during the three-month period ended September 30, 2019 to 46.6% during the three-month period ended September 30, 2020.

Operations Center in Argentina

International. Gross profit from the International segment increased by 4,300.0%, recording a gross profit of ARS 1 million during the three-month period ended September 30, 2019 and a gross loss of ARS 42 million during the three-month period ended September 30, 2020. Gross (profit) / loss from the International segment, measured as a percentage of revenues from this segment, decreased from a (33.3%) profit during the three-month period ended September 30, 2019 to a 16.0% loss during the three-month period ended September 30, 2020.

Corporate. Gross profit from the Corporate segment did not show any variations during the reported fiscal years.

Others. Gross profit from the Others segment increased by 483.3% from a profit of ARS 6 million during the three-month period ended September 30, 2019 to a loss of ARS 23 million during the three-month period ended September 30, 2020. Gross profit from the Others segment, measured as a percentage of revenues from this segment, increased from a 15.0% profit during the three-month period ended September 30, 2019 to a (1,150.0%)% loss during the three-month period ended September 30, 2020.

Net gain (loss) from changes in the fair value of investment properties 2020 vs. 2019

There is no gain / (loss) from building administration expenses and promotion fund in relation to the changes in the fair value of investment properties.

There is no gain / (loss) from inter-segment transactions in relation to the changes in the fair value of investment properties.

Therefore, according to information by segments (taking into account the profit / (loss) from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), the total net gain/(loss) from changes in the fair value of investment properties increased by ARS 11,844 million (93.5%), from a gain of ARS 12,669 million in the three-month period ended September 30, 2019 to a gain of ARS 24,513 million in the three-month period ended September 30, 2020. Such variation was mainly due to an ARS 21 million increase in the Agricultural Business and an ARS 11,823 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation derives from an increase in the Operations Center in Argentina of ARS 11,823 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total net gain /(loss) from changes in the fair value of investment properties increased by ARS 21 million (84.0%), from ARS 25 million in the three-month period ended September 30, 2019 to ARS 46 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total net gain / (loss) from changes in the fair value of investment properties varies in ARS 11,823 million (93.5%), from ARS 12,644 million in the three-month period ended September 30, 2019 (out of which ARS 12,644 million derive from the Operations Center in Argentina) to ARS 24,467 million in the three-month period ended September 30, 2020 (out of which ARS 24,467 million derive from the Operations Center in Argentina). Excluding the changes in the fair value of investment properties from the Operations Center in Israel, changes in the fair value of investment properties, according to information by segments, decreased by 93.5%.

Operations Center in Argentina

The net impact of prices in pesos of our properties was primarily a consequence of the changes in the macroeconomic conditions: (i) a decrease in the estimated GDP growth rate in Argentina for 2020 remained in order of -11.5%, (ii) between June 2019 and June 2020, the Argentine Peso depreciated 8% against the U.S. Dollar (from ARS 70.26 per USD1 to ARS 75.98 per USD1), which mainly generated a reduction in the estimated cash flow in U.S. Dollars from our Shopping Malls segment.

Gain from disposal of farmlands 2020 vs. 2019

Period ended September 30, 2020

●

The Group, through its subsidiary Brasilagro, concluded the sale of 2,160 hectares (1,714 useful hectares) of the Bananal Establishment (Magalhães municipality - BA). The establishment was in Asset Groups held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the Purchase Agreement were fully met on July 31, 2020 after receipt of BRL 5.5 million (equivalent to ARS 85 million). The nominal value of the sale is BRL 28 (equivalent to ARS 396), of which the Company has already received BRL 7.5 million (equivalent to ARS 113 million). For this operation, they will not recognize results since the asset was recorded at its fair value.

Period ended September 30, 2019

●

General and administrative expenses 2020 vs. 2019

There are no profits / (losses) on account of building administration expenses and promotion fund associated with general and administrative expenses.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and excluding those relating to building administration expenses and collective promotion fund and business inter-segment transactions), total general and administrative expenses decreased by ARS 60 million (5.7%), from ARS 1,052 million in the three-month period ended September 30, 2019 to ARS 992 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 40 million decrease in the Agricultural Business and an ARS 20 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 23 million, offset by a decrease in the Operations Center in Argentina of ARS 3 million.

Agricultural Business

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total general and administrative expenses decreased by ARS 20 million (3.0%), from ARS 676 million in the three-month period ended September 30, 2019 (out of which ARS 28 million derive from the Operations Center in Israel and ARS 648 million from the Operations Center in Argentina) to ARS 656 million in the three-month period ended September 30, 2020 (out of which ARS 5 million derive from the Operations Center in Israel and ARS 651 million from the Operations Center in Argentina). Excluding general and administrative expenses from the Operations Center in Israel, general and administrative expenses, according to information by segments, increased by 0.5%. In addition, total general and administrative expenses, measured as a percentage of total revenues, according to information by segments, increased from 18.7% during the three-month period ended September 30, 2019 to 53.8% during the three-month period ended September 30, 2020, mainly deriving from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total general and administrative expenses, measured as a percentage of total revenues, increased from 17.9% during the three-month period ended September 30, 2019 to 53.4% during the three-month period ended September 30, 2020.

Operations Center in Argentina

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 19.4%, from ARS 283 million during the three-month period ended September 30, 2019 to ARS 228 million during the three-month period ended September 30, 2020, mainly as a result of (i) an ARS 25 million decrease in salaries, social security and other personnel expenses; (ii) an ARS 13 million decrease in advertising and other commercial expenses; (iii) an ARS 6 million decrease in leases and building administration expenses; and (iv) an ARS 5 million decrease in fees and compensation for services. General and administrative expenses of the Sales and Developments segment, measured as a percentage of revenues from this segment, increased slightly from 25.3% during the three-month period ended September 30, 2019 to 31% during the three-month period ended September 30, 2020.

Hotels. General and administrative expenses associated with our Hotels segment remaining at ARS 66 million during the three-month period ended September 30, 2019 and during the three-month period ended September 30, 2020. General and administrative expenses of the Hotels segment, measured as a percentage of revenues from this segment, increased from 78.6% during the three-month period ended September 30, 2019 to 169.2% during the three-month period ended September 30, 2020.

Operations Center in Israel

Selling expenses 2020 vs 2019

Selling expenses generated by inter-segment transactions increased by ARS 0 million (0,0%), from ARS 10 million in the three-month period ended September 30, 2019 to ARS 10 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total selling expenses increased by ARS 119 million (10.8%), from ARS 1,106 million in the three-month period ended September 30, 2019 to ARS 1,225 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 32 million decrease in the Agricultural Business and an ARS 151 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 0 million, and an increase in the Operations Center in Argentina of ARS 151 million.

Agricultural Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses decreased by ARS 32 million (4.0%), from ARS 805 million in the three-month period ended September 30, 2019 to ARS 773 million in the three-month period ended September 30, 2020. Selling expenses of the Agricultural Business, measured as a percentage of revenues from this segment, decreased from 9.2% during the three-month period ended September 30, 2019 to 9.3% during the three-month period ended September 30, 2020.

Agricultural Production. Selling expenses from the Agricultural Production segment decreased by 9.6% from ARS 591 million in the three-month period ended September 30, 2019 to ARS 534 million in the three-month period ended September 30, 2020, mainly as a result of an ARS 93 million decrease in selling expenses related to grain trading, an ARS 41 million increase in expenses for sugarcane operations, an ARS 2 million decrease in selling expenses for cattle and an ARS 3 million decrease in selling expenses associated with leases and agricultural services. Selling expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 9.5% during the three-month period ended September 30, 2019 to 9.2% during the three-month period ended September 30, 2020.

Land Transformation and Sales. Selling expenses from the Land Transformation and Sales segment increased by 100.0% from ARS 0 million in the three-month period ended September 30, 2019 to ARS 0 million in the three-month period ended September 30, 2020,.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total selling expenses increased by ARS 151 million (50.2%), from ARS 301 million in the three-month period ended September 30, 2019 (out of which ARS 0 million derive from the Operations Center in Israel and ARS 301 million from the Operations Center in Argentina) to ARS 452 million in the three-month period ended September 30, 2020 (out of which ARS 0 million derive from the Operations Center in Israel and ARS 452 million from the Operations Center in Argentina). Excluding the selling expenses from the Operations Center in Israel, selling expenses, according to information by segments, decreased by 50.2%. In addition, total selling expenses, measured as a percentage of total revenues, according to information by segments, decreased from 8.3% during the period ended June 30, 2019 to 37.1% during the period ended June 30, 2020, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total selling expenses, measured as a percentage of total revenues, decreased from 8.3% during the three-month period ended September 30, 2019 to 37.1% during the period ended June 30, 2020.

Operations Center in Argentina

Corporate. Selling expenses associated with the Corporate segment remained unchanged in both periods.

Other operating results, net 2020 vs 2019

Other operating results, net, from our joint ventures increased by ARS 1 million (0.0%), from a loss of ARS 0 million in the three-month period ended September 30, 2019 to a gain of ARS 1 million in the three-month period ended September 30, 2020.

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total other operating results, net, decreased by ARS 110 million (29.5%), from ARS 373 million in the three-month period ended September 30, 2019 to ARS 263 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 148 million decrease in the Agricultural Business and an ARS 38 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to an increase in the Operations Center in Israel of ARS 0 million, and an increase in the Operations Center in Argentina of ARS 38 million.

Agricultural Business

Urban Properties and Investment Business

According to the information by segments (taking into account all our joint ventures and inter-segment eliminations), total other operating results, net, increased by ARS 38 million (60.3 %), from ARS 63 million during the three-month period ended September 30, 2019 (out of which ARS 0 million derive from the Operations Center in Israel and ARS 63 million from the Operations Center in Argentina) to ARS 25 million in the three-month period ended September 30, 2020 (out of which ARS 0 million derive from the Operations Center in Israel and ARS 25 million from the Operations Center in Argentina). In addition, total other operating results, net, measured as a percentage of total revenues, according to information by segments, increased from 1.7% during the three-month period ended September 30, 2019 to 2.1% during the fiscal year June 30, 2020, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total other operating results, net, measured as a percentage of total revenues, increased from 1.7% during the three-month period ended September 30, 2019 to 2.1% during the three-month period ended September 30, 2020.

Operations Center in Argentina

Offices. Other operating results, net, associated with our Offices segment decreased by 80.0%, from a net loss of ARS 5 million during the three-month period ended September 30, 2019 to a net loss of ARS 1 million during the three-month period ended September 30, 2020, mainly as a result of an ARS 6 million decrease in the charge for donations, among other items. Other operating results, net, from the Offices segment, measured as a percentage of revenues from this segment, decreased from (0.7%) during the three-month period ended September 30, 2019 to (0.2%) during the three-month period ended September 30, 2020.

Sales and Developments. Other operating results, net associated with our Sales and Developments segment decreased by 62.5%, from a net loss of ARS 16 million during the three-month period ended September 30, 2019 to a net loss of ARS 6 million during the three-month period ended September 30, 2020, mainly due to a lower charge for personal property tax of ARS 6 million and a reduction in donations of ARS 5 million, among other items. Other operating results, net, from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from (19.0%) during the three-month period ended September 30, 2019 to (15.4%) during the three-month period ended September 30, 2020.

Corporate. Other operating results, net, associated with the Corporate segment showed no variations in the reported fiscal years.

Management fees 2020 vs 2019

The company entered into a management agreement with Consultores Asset Management S.A., which provides for payment of fees equivalent to 10% of our profits for advisory services in relation to any matters related to business and investments, such as farming, real estate, finance, hotel, etc. Management fees amounted to ARS 470 million during the three-month period ended September 30, 2020. During fiscal year 2019 no results were recognized on this account.

Operating results 2020 vs 2019

Therefore, according to information by segments (taking into account the operating results from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), total operating results increased by ARS 9,315 million (57.2%), from ARS 16,297 million in the three-month period ended September 30, 2019 to ARS 25,612 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 114 million increase in the Agricultural Business and an ARS 9,429 million increase in the Urban Properties and Investment Business. Within the Urban Properties and Investment Business, the variation relates to a decrease in the Operations Center in Israel of ARS 23 million, and an increase in the Operations Center in Argentina of ARS 9,406 million.

Agricultural Business

Land Transformation and Sales. Operating results of the Land Transformation and Sales segment increased by ARS 920 million, from a loss of ARS 518 million in the three-month period ended September 30, 2019 to a loss of ARS 1,438 million in the three-month period ended September 30, 2020.

Others. Operating results of the Others segment decreased by ARS 92 million from a profit of ARS 250 million in the three-month period ended September 30, 2019 to ARS 1458 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), total operating results increased by ARS 9,429 million (65.1%), from ARS 14,473 million in the three-month period ended September 30, 2019 (out of which ARS 28 million derive from the Operations Center in Israel and ARS 14,501 million from the Operations Center in Argentina) to ARS 23,902 million in the three-month period ended September 30, 2020 (out of which ARS 5 million derive from the Operations Center in Israel and ARS 23,907 million from the Operations Center in Argentina). Excluding the operating results from the Operations Center in Israel, operating results, according to information by segments, decreased by 64.9%. In addition, operating results, measured as a percentage of total revenues, according to information by segments, decreased from 400.6% during the three-month period ended September 30, 2019 to 1960.8% during the three-month period ended September 30, 2020, mainly from the Operations Center in Israel. Excluding the effect from the Operations Center in Israel, total operating results, measured as a percentage of total revenues, decreased from 401.4% during the three-month period ended September 30, 2019 to 1961.2% during the three-month period ended September 30, 2020.

Operations Center in Argentina

Corporate. Operating results associated with our Corporate segment decreased by 15.9% from a loss of ARS 88 million during the fiscal year ended June 3, 2019 to a loss of ARS 74 million during the three-month period ended September 30, 2020 mainly affected by overhead and administrative expenses.

Operations Center in Israel

Share of profit/ (loss) of associates and joint ventures 2020 vs 2019

Our share of profit/(loss) of associates and joint ventures, primarily from Cresca (Agricultural Business), Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment), Cyrsa S.A., Puerto Retiro S.A. and Baicom Networks S.A. (Sales and Developments segment), increased by ARS 202 million (48.6%), from a profit of ARS 416 million in the three-month period ended September 30, 2019 to a profit of ARS 618 million in the three-month period ended September 30, 2020.

There are no results on account of building administration expenses and promotion fund corresponding to share of profit/(loss) of associates and joint ventures.

Therefore, according to information by segments (taking into account the profit/ (loss) from operations from our joint ventures and without considering those relating to building administration expenses and collective promotion fund or business inter-segment transactions), the total share of profit/(loss) of associates and joint ventures decreased by ARS 938 million (206.6%), from ARS 454 million in the three-month period ended September 30, 2019 to ARS 484 million in the three-month period ended September 30, 2020. This was mainly due to an ARS 120 million decrease in the Agricultural Business and an ARS 818 million increase in the Urban Properties and Investment Business.

Agricultural Business

Agricultural Production. The share of profit/(loss) of associates and joint ventures in the Agricultural Production segment decreased by 141.2% from a profit of ARS 17 million in the three-month period ended September 30, 2019 to a profit of ARS 7 million in the three-month period ended September 30, 2020.

Urban Properties and Investment Business

According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of profit/(loss) of associates and joint ventures decreased by ARS 818 million (236.4%), from ARS 346 million in the three-month period ended September 30, 2019 to ARS 472 million in the three-month period ended September 30, 2020. Excluding the share of profit/(loss) of associates and joint ventures from the Operations Center in Israel, the share of profit/(loss) of associates and joint ventures, according to information by segments, decreased by 236.4%.

Operations Center in Argentina

Shopping Malls. In the information by segments, the share of profit / (loss) of joint venture Nuevo Puerto Santa Fe S.A. is exposed consolidated, line by line in this segment.

Offices. In the information by segments, the share of profit / (loss) of joint venture Quality S.A. is exposed consolidated, line by line in this segment.

Sales and Developments. The share of profit / (loss) of joint ventures Cyrsa S.A. and Puerto Retiro S.A. are exposed consolidated line by line. The share of profit/(loss) of our associate Manibil S.A., which is disclosed in this line, decreased by ARS 8 million during the three-month period ended September 30, 2020.

Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

International. The share of profit / (loss) of associates of this segment increased by 69.7%, from a net loss of ARS 228 million during the three-month period ended September 30, 2019 to a net loss of ARS 387 million during the three-month period ended September 30, 2020, mainly generated by a positive result from our investment in New Lipstick LLC of ARS 334 million, offset by a negative result from our investment in Condor Hospitality of ARS 53 million.

Financial results, net 2020 vs 2019

The Group financial results, net recorded a variation of ARS 15,739 million, from a loss of ARS 18,251 million in the three-month period ended September 30, 2019 to a loss of ARS 2,512 million in the three-month period ended September 30, 2020. This was mainly due to: (i) an increase in interest expense in the Agricultural Business mainly due to the Notes, due to an increase in the debt of USD 141,237, due to the issuance of Notes XXV, XXVII, XXVIII, XXIX and XXX for USD 59,561, USD 5,747, USD 27,462, USD 83,025 and USD 25,003 respectively. The mentioned increase is offset by a decrease in the average rate, which went from 7.8523% to 6.6172%. Likewise, the increase in exchange rate (24%) also had an impact on interest; (ii) in the Real Estate Business, the variation in interest on Notes is due to a decrease in the debt in dollars, for USD 22 million, offset with the issuance of Class 3 and Class 6 Notes in pesos, by ARS 689 million. (iii) for bank loans in USD, due to the increase in the average rate from 3.12% to 5.61% between September 2019 and September 2020; with a 24% increase in the exchange rate with respect to the same period of the 2020 period. Said effects are mitigated by the decrease in debt by USD 138,057 and the increase in the exchange rate with respect to the previous period. This is offset by the decrease in overdraft interest, mainly due to the decrease in the range of interest rates, which were from 21% to 75% for the 2021 period, while for 2020 they were in the range of 59% to 130%; (iv) The decrease in the foreign exchange net of ARS 14,654 million is caused by the decrease due to the devaluation and the decrease in debt in foreign currency. The difference between devaluation and inflation tends to zero, while as of September 30, 2019 the difference between devaluation and inflation is 23%. This added to the fact that within the Group the loans in dollars were canceled through a loan in pesos in Galicia Bank of 230 million and Santander Rio through the transformation of the USD 6,0 million loan into a bank overdraft of $ 388 million; (v) The main loss in the results for derivative financial instruments, in the Agricultural Business is mainly due to the fact that in the current period there were more purchases than sales contracts and the average price between the price of the NDF versus the spot price was USD (1.176). While, in September 2019, the average difference between the price of NDFs versus spot is USD 0.406.

Income Tax 2020 vs 2019

The Company adopts the deferred tax method to calculate the income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year went from a loss of ARS 2,719 million during the three-month period ended September 30, 2019, to a loss of ARS 7,977 million during the three-month period ended September 30, 2020, out of which a loss of ARS 133 million derives from the agricultural business, and loss of ARS 7,844 million derives from the Operations Center in Argentina.

Net profit/(loss) 2020 vs 2019

As a result of the factors described above, our net profit/(loss) for the year, including the effect of discontinued operations, decreased by ARS 1,966 million from a net profit of ARS 9,492 million in the three-month period ended September 30, 2019 to a net profit of ARS 7,526 million in the three-month period ended September 30, 2020, out of which a profit of ARS 124 million derives from the agricultural business, a profit of ARS 14,138 million derives from the Operations Center in Argentina and a loss of ARS 470 million derives from management fees.

B. LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our main sources of liquidity have historically been:

●

cash generated by operations;

●

cash generated by our issuance of common shares and non-convertible notes;

●

cash proceeds from borrowings (including cash from bank loans and overdrafts) and financing arrangements (including cash from the exercise of warrants); and

●

cash proceeds from sale of investment and trading properties and property, plant and equipment (including cash proceeds from the sale of farmlands).

Our main cash requirements or uses (other than in connection with our operating activities) have historically been:

●

acquisition of subsidiaries and non-controlling interest in subsidiaries;

●

acquisition of interest in associates and joint ventures;

●

capital contributions to associates and joint ventures;

●

capital expenditures in property, plant and equipment (including acquisitions of farmlands) and investment and trading properties;

●

payments of short-term and long-term debt and payment of the related interest expense; and payment of dividends.

Our liquidity and capital resources include our cash and cash equivalents, proceeds from operating activities, sales of investment properties, trading properties and farms, obtained bank borrowings, long-term debts incurred and capital funding.

Cash Flows

The table below shows our cash flow for the fiscal year ended June 30, 2020 and 2019:

	(in<br>million of ARS)
	06.30.20	06.30.19	06.30.18
Net cash generated<br>from operating<br>activities	38,469	27,502	25,999
Net cash generated<br>from (used in) investing activities	43,397	11,360	(33,968)
Net cash used in<br>financing<br>activities	(78,183)	(27,705)	(4,316)
Net<br>increase / (decrease) in cash and cash equivalents	3,683	11,157	(12,285)

As of June 30, 2020, we had positive working capital of ARS 62,614 million (calculated as current assets less current liabilities as of such date).

As of June 30, 2020, in our Agricultural Business, we had negative working capital of ARS 4,489 million (calculated as current assets less current liabilities as of such date).

As of June 30, 2020, in our Urban Properties and Investments Business, our Operation Center in Argentina had negative working capital of ARS 26,225 million and our Operations Center in Israel had positive working capital of ARS 93,328 million, resulting in a consolidated positive working capital of ARS 62,614 million (calculated as current assets less current liabilities as of such date).

At the same date, our Agricultural Business had cash and cash equivalents of ARS 11,376 million while our Operations Center in Argentina had cash and cash equivalents of ARS 7,780 million while our Operations Center in Israel had cash and cash equivalents of ARS 89,496 million, totaling consolidated cash and cash equivalents for ARS 108,652 million.

As described in “Presentation of Financial and Certain Other Information,” we lost control of IDBD and DIC on September 25, 2020. Accordingly, assets and liabilities corresponding to the Operations Center in Israel have been deconsolidated as from that date.

The commitments and other restrictions resulting from the indebtedness of IDBD and DIC have no effect on IRSA since said indebtedness has no recourse against IRSA, nor has IRSA guaranteed it with its assets. Therefore, IRSA’s financial risk with respect to the Israeli business center is limited to the values indicated in the preceding paragraph.

On September 13, 2020, IDBD filed a claim against Dolphin Netherlands B.V. and against IRSA in which it sought to require them, together and separately, to pay it a total of NIS 70 million plus linkage differences and interest in accordance with the law. In addition, in tandem with the submission of the lawsuit, IDBD submitted an urgent petition for placing temporary attachments (in the presence of one party) on Dolphin Netherlands B.V and IRSA, which was not accepted by the Court in the presence of one party and which has been passed on for the respondents to respond to the petition.

Operating activities

Fiscal year ended June 30, 2020

Our operating activities for the fiscal year ended June 30, 2020 generated net cash inflows of ARS 38,469 million, mainly due to operating income of ARS 27,952 million, a decrease in trading properties of ARS 1,001 million, a decrease in inventory of ARS 777 million, a decrease in trades and other receivables of ARS 11,655 million and decrease in biological assets of ARS 5,585 million partially offset by a decreased and a decrease in trades and other payables charges of ARS 6,633 million, and ARS 700 million related to income tax paid.

Fiscal year ended June 30, 2019

Our operating activities for the fiscal year ended June 30, 2019 generated net cash inflows of ARS 28,287 million, mainly due to operating income of ARS 21,073 million, a decrease in trades and other receivables of ARS 2,662 million, partially offset by a decrease in trade and other payables charges of ARS 3,835 million and ARS 786 million related to income tax paid.

Fiscal year ended June 30, 2018

Our operating activities for the fiscal year ended June 30, 2018 generated net cash inflows of ARS 27,814 million, mainly due to operating income of ARS 9,741 million, a increase in trade and other payables charges of ARS 1,305 million, partially offset by a decrease in inventory of ARS 1,103 million and ARS 1,815 million related to income tax paid.

Investment activities

Fiscal year ended June 30, 2020

Our investing activities resulted in net cash inflows of ARS 43,397 million for the fiscal year ended June 30, 2020, mainly due to (i) ARS 39,422 million in investments in financial assets, (ii) ARS 14,428 million derived from income from sales of investment properties, (iii) ARS 6,991 million generated by a decrease in restricted deposits, net, and (iv) ARS 3,641 million derived from income from sales of property, plant and equipment and (v) ARS 5,435 corresponding to receipts from sale of participation in associates and joint ventures, partially offset by, (vi) ARS 13.820 million used in the acquisition of investments in financial assets (vii) ARS 993 million corresponding to loans granted, (viii) ARS 6,584 million used in the acquisition and improvement in property, plant and equipment , (ix) ARS 4,352 used in the acquisition of intangible assets, and (x) ARS 4,725 million used in the acquisition and improvements of investment properties.

Fiscal year ended June 30, 2019

Our investing activities resulted in net cash inflows of ARS 11,360 million for the fiscal year ended June 30, 2019, mainly due to (i) ARS 84,794 million derived from the proceeds of making investments in financial assets, and (ii) ARS 9,018 million corresponding to charges for the sale of participation in associates and joint ventures; partially offset by (iii) ARS 62,436 used in the acquisition of investments in financial assets; (iv) ARS 7,471 million used in the acquisition and improvement of property, plant and equipment; (v) ARS 6,922 million used in the acquisition and improvement of investment properties; and (vi) ARS 4,330 million used in the acquisition of intangible assets.

Fiscal year ended June 30, 2018

Our investing activities resulted in net cash outflows of ARS 33,968 million for the fiscal year ended June 30, 2018, mainly due to (i) ARS 79,422 million derived from the proceeds of making investments in financial assets, and (ii) ARS 955 million derived from investment property sales income; partially offset by (iii) ARS 84,502 used in the acquisition of investments in financial assets; (iv) ARS 7,059 million used in the acquisition and improvement of property, plant and equipment; (v) ARS 5,091 million used in the acquisition and improvement of investment properties; (vi) ARS 1,796 million used in the acquisition of intangible assets, and (vii) ARS 7,779 for an increase in restricted deposits.

Financing activities

Fiscal year ended June 30, 2020

Our financing activities for the fiscal year ended June 30, 2020 resulted in net cash outflows of ARS 78,183 million, mainly due to (i) the payment of loans and principal on notes of ARS 78,147 million, (ii) ARS 14,688 million due to repurchase of non-convertible notes, and (iii) the payment of interest on short-term and long-term debt of ARS 23,586 million and (iv) ARS 2,647 corresponding to the net cancellation of short-term loans, and partially offset by (v) borrowings and issuance of non-convertible notes for ARS 51,434 million.

Fiscal year ended June 30, 2019

Our financing activities for the fiscal year ended June 30, 2019 resulted in net cash outflows of ARS 27,705 million, mainly due to (i) the payment of loans and principal on notes of ARS 58,429 million, (ii) the payment of interest on short-term and long-term debt of ARS 21,595 million, (iii) ARS 8,926 million due to repurchase of non-convertible notes, (iv) acquisition of third parties in non-controlling interest of subsidiaries for ARS 7,751, partially offset by (v) borrowings and issuance of non-convertible notes for ARS 59,972 million, and (vi) ARS 2,420 million corresponding to the net obtaining of short-term loans.

Fiscal year ended June 30, 2018

Our financing activities for the fiscal year ended June 30, 2018 resulted in net cash outflows of ARS 4,316 million, mainly due to (i) the payment of loans and principal on notes of ARS 48,696 million, (ii) the payment of interest on short-term and long-term debt of ARS 15,358 million, (iii) ARS 1,431 million due to repurchase of non-convertible notes, partially offset by (iv) borrowings and issuance of non-convertible notes for ARS 50.623 million, (v) ARS 1,788 million corresponding to the net obtaining of short-term loans, and (vi) collection for the sale of non-controlling interest in subsidiaries for ARS 7,464 million.

The table below shows our cash flow for the three-month periods ended September 30, 2020 and 2019:

	(in<br>millions of ARS)
	09.30.20	09.30.19
Net cash generated<br>from operating<br>activities	4,337	11,901
Net cash generated<br>from investing<br>activities	40,540	3,262
Net cash used in<br>financing<br>activities	(30,240)	(35,960)
Net<br>increase / (decrease) in cash and cash<br>equivalents	14,637	(20,797)

As of September 30, 2020, we had negative working capital of ARS 26,772 million (calculated as current assets less current liabilities as of such date).

As of September 30, 2020, in our Agricultural Business, we had negative working capital of ARS 9,907 million (calculated as current assets less current liabilities as of such date).

As of September 30, 2020, in our Urban Properties and Investments Business, our Operation Center in Argentina had negative working capital of ARS 16,865 million.

At the same date, our Agricultural Business had cash and cash equivalents of ARS 8,826 million while our Operations Center in Argentina had cash and cash equivalents of ARS 4,397 million, totaling consolidated cash and cash equivalents for ARS 13,223 million.

Operating activities

Three-month period ended September 30, 2020

Our operating activities for the three-month period ended September 30, 2020 generated net cash inflows of ARS 4,337 million, of which ARS 2,227 million are originated in discontinued operations and ARS 2,110 million are from continuing operations, mainly due to a decrease in biological assets of ARS 1,869 million, a decrease in restricted assets of ARS 1,157 million and an increase in lease liabilities of ARS 510 million, partially offset by an operating loss of ARS 4,186 million, an increase in trade and other receivables of ARS 1,344 million, a decrease in rights of use assets of ARS 767 million and ARS 3 million related to income tax paid.

Three-month period ended September 30, 2019

Our operating activities for the three-month period ended September 30, 2019 generated net cash inflows of ARS 11,901 million, of which ARS 7,738 million are originated in discontinued operations and ARS 4,163 million are from continuing operations, mainly due to operating income of ARS 2,426 million, a decrease in biological assets of ARS 2,732 million and a decrease in trade and other receivables of ARS 1,507 million, partially offset by a decrease in trades and other payables charges of ARS 1,511 million, and ARS 197 million related to income tax paid.

Investment activities

Three-month period ended September 30, 2020

Our investing activities resulted in net cash inflows of ARS 40,540 million, of which ARS 31,830 million are originated in discontinued operations and ARS 8,710 are from continuing operations for the three-month period ended September 30, 2020, mainly due to (i) ARS 5,909 million derived from the proceeds of investments in financial assets; and (ii) ARS 9,682 million derived from income from sales of investment properties; partially offset by (iii) ARS 5,934 million used in the acquisition of investments in financial assets; (iv) ARS 331 million used in the acquisition and improvements in property, plant and equipment; and (v) ARS 719 million used in the acquisition and improvements of investment properties.

Three-month period ended September 30, 2019

Our investing activities resulted in net cash inflows of ARS 3,262 million, corresponding to an inflow of funds from discontinued activities of ARS 1,500 million and an inflow of funds from continued activities of ARS 1,762 million for the three-month period ended September 30, 2019, mainly due to (i) ARS 15,034 million derived from the proceeds of investments in financial assets; partially offset by (ii) ARS 11,398 million used in the acquisition of investments in financial assets; (iii) ARS 362 million used in the acquisition and improvements of property, plant and equipment; (iv) ARS 639 million corresponding to loans granted; and (v) ARS 829 million used in the acquisition and improvements of investment properties.

Financing activities

Three-month period ended September 30, 2020

Our financing activities for the three-month period ended September 30, 2020 resulted in net cash outflows of ARS 30,240 million, corresponding ARS 13,019 million to discontinued activities, and ARS 17,221 million to continued activities, mainly due to (i) the payment of loans and principal on notes of ARS 21,423 million; and (ii) the payment of interest on short and long-term debt of ARS 3,606 million; partially offset by (iii) borrowing and issuance of non-convertible notes for ARS 5,455 million; and (iv) ARS 2,073 million corresponding to the net obtaining of short-term loans.

Three-month period ended September 30, 2019

Our financing activities for the three-month period ended September 30, 2019 resulted in net cash outflows of ARS 35,960 million, corresponding to an outflow of funds from discontinued activities of ARS 31,325 million, and an outflow of funds from continued activities of ARS 4,635, mainly due to (i) the payment of loans and principal on notes of ARS 18,702 million; (ii) the payment of interest on short and long-term debt of ARS 2,908 million; (iii) ARS 2,588 million due to the repurchase of non-convertible notes; partially offset by (iv) ) borrowings and issuance of non-convertible notes for ARS 18,860 million.

Capital expenditures

Our capital expenditures were ARS 13,220 million, ARS 22,222 and ARS 24,483 million for the fiscal year ended June 30, 2020, 2019 and 2018, respectively, including other goods and equipment acquired in business combinations.

Our capital expenditures consisted of the purchase of real estate and farms, acquisition and improvement of productive agricultural assets, communication networks, completion of the construction of a shopping center, construction of real estate and acquisition of land reserves.

Fiscal year ended June 30, 2020

During the fiscal year ended June 30, 2020, we invested ARS 11,897 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 6,107 million, primarily i) ARS 357 million in buildings and facilities, ii) ARS 3,679 million in communication networks, iii) ARS 1,903 million in machinery and equipment and others, iv) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 15 million, ARS 66 million and ARS 48 million, respectively) and v) ARS 39 million in agricultural establishments; (b) improvements in our rental properties for ARS 2,907 million, out of which ARS 2,052 million derive from our Operations Center in Argentina and ARS 855 million derive from the Operations Center in Israel; (c) the development of properties for ARS 2,883 million.

During the fiscal year ended June 30, 2020, we invested in the Agricultural Business ARS 1,323 million mainly due (a) acquisition and development of owner occupied farmland for ARS 780 million (ARS 638 million of subsidiary Brasilagro); (b) ARS 336 million in bearer plant; (c) ARS 60 million in other building and facilities; (d) ARS 62 million machinery and equipment; (e) ARS 29 million in vehicles; (f) ARS 5 million in furniture and supplies; and (g) ARS 51 million destined to suppliers advances for proprieties acquisitions.

Fiscal year ended June 30, 2019

During the fiscal year ended June 30, 2019, we invested ARS 20,192 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 7,692 million, primarily i) ARS 118 million in buildings and facilities, ii) ARS 4,951 million in communication networks, iii) ARS 2,553 million in machinery and equipment and others iv) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 31 million, ARS 16 million and ARS 23 million, respectively); (b) improvements in our rental properties of ARS 2,104 million, primarily in our Operations Center in Israel; (c) the development of properties for ARS 9,759 million, mainly in our Operations Center in Israel; and (d) ARS 637 million related to the acquisition of land reserves.

During the fiscal year ended June 30, 2019, we invested ARS 2,030 million mainly due (a) acquisition and development of owner occupied farmland for ARS 854 million (ARS 642 million of subsidiary Brasilagro); (b) ARS 626 million in bearer plant; (c) ARS 86 million machinery and equipment; (d) ARS 43 million in vehicles; (e) ARS 9 million in furniture and supplies; (f) ARS 403 million in other building and facilities and (g) ARS 9 million destined to suppliers advances for proprieties acquisitions.

Fiscal year ended June 30, 2018

During the fiscal year ended June 30, 2018, we invested ARS 20,523 million (including ARS 5,091 million from Shufersal, whose assets were deconsolidated due to the loss of control and ARS 804 million from business combination), as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 11,369 million, primarily i) ARS 2,934 million in buildings and facilities, mainly in supermarkets in Israel through Shufersal, ii) ARS 2,691 million in communication networks, iii) ARS 5,181 million in machinery and equipment and others, iv) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 11 million, ARS 20 million and ARS 12 million, respectively), and v) ARS 520 million related with business combinations (mainly from the acquisition of New Pharm); (b) improvements in our rental properties of ARS 2,064 million, primarily in our Operations Center in Israel; (c) the development of properties for ARS 3,756 million, mainly in our Operations Center in Israel; (d) ARS 3,050 million related to the acquisition of land reserves, and (e) ARS 284 million related to business combination.

During the fiscal year ended June 30, 2018, we invested in the Agricultural Business ARS 3,960 million mainly due (a) acquisition and development of owner occupied farmland for ARS 3,155 million (ARS 2,865 million of subsidiary Brasilagro); (b) ARS 627 million in bearer plant; (c) ARS 122 million machinery and equipment; (d) ARS 34 million in vehicles; (e) ARS 10 million in furniture and supplies; and (f) ARS 12 million destined to suppliers advances for proprieties acquisitions.

Our capital expenditures were ARS 1,491 million and ARS 3,788 million for the periods ended September 30, 2020 and 2019, respectively, including other goods and equipment acquired in business combinations.

Period ended September 30, 2020

During the period ended September 30, 2020, in our Urban Properties and Investments Business we incurred capital expenditures of ARS 1,202 million as follows: (a) acquisition and improvements of property, plant and equipment for ARS 1,056 million, mainly related to: i) ARS 40 million in buildings and facilities, ii) ARS 417 million in communication networks, iii) ARS 536 million in machinery, equipment and others, and iv) improvements in our Sheraton Libertador, Llao Llao and Intercontinental hotels (ARS 22 million and ARS 2 million, respectively); (b) improvements in our rental properties for ARS 146 million, of which ARS 106 million correspond to our Argentina Operations Center and ARS 40 to the Israel Operations Center.

During the period ended September 30, 2020, we invested in the Agricultural Business ARS 289 million mainly due (a) acquisition and development of owner occupied farmland for ARS 158 million (ARS 153 million of subsidiary Brasilagro); (b) ARS 11 million in bearer plant; (c) ARS 19 million in other building and facilities; (d) ARS 80 million machinery and equipment; (e) ARS 9 million in vehicles; (f) ARS 9 million in furniture and supplies; and (g) ARS 3 million destined to suppliers advances for proprieties acquisitions.

Period ended September 30, 2019

During the period ended September 30, 2019, in our Urban Properties and Investments Business we incurred capital expenditures of ARS 3,459 million as follows: (a) acquisition and improvements of property, plant and equipment for ARS 1,732 million, mainly related to: i) ARS 105 million in buildings and facilities, ii) ARS 1,021 million in communication networks, iii) ARS 595 million in machinery, equipment and others, and iv) improvements in our Sheraton Libertador, Llao Llao and Intercontinental hotels (ARS 4 million, ARS 6 million and ARS 1 million, respectively); (b) improvements in our rental properties for ARS 478 million, of which ARS 249 million correspond to our Argentina Operations Center and ARS 229 to the Israel Operations Center; (c) the development of properties for ARS 1,249 million.

During the period ended September 30, 2019, we invested ARS 329 million mainly due (a) acquisition and development of owner occupied farmland for ARS 168 million (ARS 75 million of subsidiary Brasilagro); (b) ARS 86 million in bearer plant; (c) ARS 21 million in other building and facilities; (d) ARS 41 million machinery and equipment; (e) ARS 5 million in vehicles; (f) ARS 1 million in furniture and supplies; and (g) ARS 7 million destined to suppliers advances for proprieties acquisitions.

Indebtedness

The breakdown of the Company’s borrowings as of September 30, 2020 was as follows:

	Book<br>value
	09.30.20
(million of ARS)
Non-convertible<br>Notes	74,826
Bank<br>loans	14,758
Bank<br>overdrafts	9,045
Other<br>borrowings	1,161
Total<br>borrowings	99,790
Non-current	52,255
Current	47,535
Total	99,790
Agricultural business	Currency	Annual Average Interest Rate	Nominal Value	Book value (in million ARS)
---	---	---	---	---
Cresud’s Series XXIII<br>Notes	USD	6.50%	113	8,038
Cresud’s Series XXIV Notes<br>(1)	USD	9.00%	74	4,482
Cresud’s Series XXV<br>Notes	USD	9.00%	60	4,615
Cresud’s Series XXVI<br>Notes	ARS	Badlar<br>+ 650 bps	1,095	1,044
Cresud’s Series XXVII<br>Notes	USD	7.45%	6	441
Cresud’s Series XXVIII<br>Notes	USD	9.00%	27	2,114
Cresud’s Series XXIX<br>Notes	USD	3.50%	83	6,310
Cresud’s Series XXX<br>Notes	USD	2.00%	25	1,890
Brasilagro’s Notes	BRL	106.5%<br>e 110% of CDI	140	1,355
Bank<br>loans	USD	5.75%	18	1,354
Bank<br>loans	USD	5.60%	9	717
Bank<br>loans	USD	Libor<br>6M + 300 bps. and 6% annual	4	294
Bank<br>loans	ARS	38.00%	1,560	1,609
Bank<br>loans	ARS	46.50%	1,270	1,584
Bank<br>loans	ARS	41.05%	660	713
Bank<br>loans	BRL	3.24% a<br>6.34% + CDI at 100%	170	2,405
Bank<br>loans	BRL	3.50%	30	139
Bank<br>loans	BRL	10.50%	77	1,055
Bank<br>loans	BRL	6.14% to 6.76%	71	791
Bank<br>loans	USD	7.00% to 8.50%	12	493
Others	ARS	17% to 150%	-	1,934
				43,377

(1)

On October 23, 2020, we announced Notes to be issued by exchange for the Existing Notes, Series XXIV Notes, for more information see “Recent Developments – Exchange Offer- Issuance of Series XXXI and XXXII Notes.”

Urban Properties and Investments Business	Currency	Annual Average Interest Rate	Nominal value	Book value (in million of ARS)
IRSA<br>Commercial Properties’ 2023 Notes	USD	8.75%	360	27,359
IRSA’s 2020 Notes – Series<br>I(1)	USD	10.00%	181	9,885
IRSA’s 2021 Notes – Series<br>III	ARS	Badlar<br>+ 600 bps	353	366
IRSA’s 2021 Notes – Series<br>IV	USD	7.00%	51	3,852
IRSA’s 2022 Notes – Series<br>V	USD	9.00%	9	529
IRSA’s 2021 Notes – Series<br>VI	ARS	Badlar<br>+ 400 bps	335	354
IRSA’s 2022 Notes – Series<br>VII	USD	4.00%	33	2,193
Related<br>Party	ARS	Badlar	1	29
Related<br>Party	USD	From<br>5.97% to 14.0%	65	406
Bank<br>loans	USD	5.95%	18	1,311
Bank<br>loans	USD	Libor +<br>1.9%	30	2,106
AABE<br>Debt	ARS	Libor	120	192
Seller<br>financing	USD	N/A	2	178
Others	USD	Libor 1m+2% /<br>3.5%	7	543
Bank<br>overdrafts	ARS	from<br>39.00% to 109.00%	-	7,110
Total(5)				56,413

(1)

On October 22, 2020, we announced Notes to be issued by exchange for the Existing Notes, Series I Notes, or through the Cash Subscription, for more information see “Recent Developments – Exchange Offer- Issuance of Series VIII and IX Notes.”

(2)

The credit line between IRSA CP and IRSA for an amount of USD 104.5 million is not shown due because it is eliminated in consolidation.

Agricultural business

Series XXIII Notes

On February 16, 2018, we issued the Series XXIII Notes, for USD 113.2, bearing a fixed interest rate of 6.5% payable semiannually, which matures on February 16, 2023.

Series XXIV Notes

On November 8, 2018, we issued the Series XXIV Notes, for USD 73.6 million, bearing a fixed rate of 9.0% with an issuance price of 100%, which matures on November 14, 2020. On September 15, 2020, Communication “A” 7,106 established that companies must refinance maturities of financial debt capital in the period from October 15, 2020 to March 31, 2021. In this sense, the Central Bank will give access to companies for up to 40% of maturities and companies must refinance the rest within at least two years. For more information see. “Item 10. Additional Information—D. Exchange Controls” in our 2020 Form 20-F, if Communication “A” 7,106 is extended after March 31, 2021, the capital outstanding maturity of this Note would be affected by such measure.

As a consequence of the new restrictions on access to the Foreign Exchange Market, on October 23, 2020, CRESUD launched an exchange offer on its Series XXIV Notes due on November 14, 2020.

The exchange offer consisted on two options for the bondholders: i) a cash consideration of USD 0.95741755 for each USD 1 of existing notes presented to the Exchange and the remaining amount until completing USD 1 for each USD 1 of existing notes presented to the Exchange, in notes Series XXXI, and ii) a par for par exchange of notes Series XXXII for each Existing Notes presented to the Exchange.

The Exchange Offer expired on November 10, 2020 and the Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series) was USD 65,075,746, which represents 88.41% acceptance.

In relation to the Exchange Offer ended on November 10, 2020, and as a result of the settlement of said Exchange, on November 16, 2020, the Company made a partial cancelation for a Nominal Value of USD 65,075,746 of Series XXIV Notes, after the cancellation the Nominal Value under circulation was USD 8,529,654, which was fully cancelled on November 16, 2020.

For more information see: “Recent Developments - Exchange Offer - Issuance of Series XXXI and XXXII Notes.”

Series XXV Notes

On July 3, 2019, we issued the Series XXV Notes, for USD 59.6, bearing a fixed interest rate of 9.0% payable semiannually, which matures on July 11, 2021.

Series XXVI, XXVII and XXVIII Notes

On January 30, 2020, the Company issued notes an aggregate principal amount of USD 51.4 million, as follows:

●

Series XXVI: denominated and payable in ARS in an aggregate principal amount of ARS 1,095 million (equivalent to USD 18.2 million) at a variable rate (private BADLAR + 6.5%) with quarterly payments and principal expiring on January 30, 2021.

●

Series XXVII: denominated in USD and payable in ARS at the applicable exchange rate in an aggregate principal amount of USD 5.7 million at a fixed rate of 7.45%, with quarterly payments and principal expiring on July 30, 2021

●

Series XXVIII: denominated and payable in USD in an aggregate principal amount of USD 27.5 million at a fixed rate of 9.0%, with quarterly payments and principal expiring on April 30, 2021.

Series XXIX Notes

On June 9, 2020, the sixteenth Series of Notes public tender was carried out, within the framework of the Program approved by the Shareholders Meeting, for up to USD 500 million, being the liquidation date on June 9, 2020. The main characteristics of the issuance are detailed bellow:

●

Series XXIX: denominated in USD and payable in ARS at the applicable exchange rate, as defined in the issuance documents, with a nominal value of USD 83.0 million at a fixed rate of 3.5%, maturing on December 9, 2021 with quarterly payments and principal expiring at maturity. The issue price was 100%.

Series XXX Notes

On August 31, 2020, we issued the:

●

Series XXX Notes, denominated in dollars and payable in pesos at the applicable exchange rate, as defined in the issuance documents, with a nominal value of USD 25.0 million at a fixed rate of 2.0%, maturing 36 months from the date of issuance with quarterly payments and principal expiring at maturity. The issue price was 100

Operations Center in Argentina

Series II (Issued by IRSA)

IRSA’s Notes Serie II at 11.50% maturing in 2020 for a total amount of USD71.4 million, were fully repaid on July 20, 2020.

Series II Notes (Issued by IRSA CP)

On March 23, 2016, IRSA CP issued Notes in an aggregate principal amount of USD360 million under its Global Notes Program. Series II Notes accrue interest semi-annually, at an annual fixed rate of 8.75% and mature on March 23, 2023.

IRSA CP’s Notes due 2023 are subject to certain covenants, events of default and limitations, such as the limitation on incurrence of additional indebtedness, limitation on restricted payments, limitation on transactions with affiliates, and limitation on merger, consolidation and sale of all or substantially all assets.

To incur additional indebtedness, IRSA CP is required to meet a minimum 2.00 to 1.00 Consolidated Interest Coverage Ratio. The Consolidated Interest Coverage Ratio is defined as Consolidated EBITDA divided by consolidated net interest expense. Consolidated EBITDA is defined as operating income plus depreciation and amortization and other consolidated non-cash charges.

The Series II Notes contain financial covenants limiting IRSA CP’s ability to declare or pay dividends in cash or in kind, unless the following conditions are met at the time of payment:

no Event of Default shall have occurred and be continuing;

IRSA CP may incur at least USD1.00 worth of additional debt pursuant to the “Restriction on Additional Indebtedness”;

and the aggregate amount of such dividend exceeds the sum of:

100% of cumulative EBITDA for the period (treated as one accounting period) from July 1, 2015 through the last day of the last fiscal quarter ended prior to the date of such Restricted Payment minus an amount equal to 150% of consolidated interest expense for such period; and

ii.

any reductions of Indebtedness of IRSA on a consolidated basis after the Issue Date any reductions of Indebtedness of after the Issue Date exchanged for to Capital Stock of the IRSA or its Subsidiaries.

For more information see. “Item 10. Additional Information—D. Exchange Controls” in our 2020 Form 20-F, if Communication “A” 7,106 is extended after March 31, 2021, the capital outstanding maturity of this Note would be affected by such measure.

Series I and II Notes

On May 15, 2019, IRSA issued the Note Series I under Argentine law for an amount of USD 96.3 million due on November 15, 2020, at a fixed rate of 10%. The proceeds were mainly used to repay preexisting debt.

On August 6, 2019, IRSA reopened the Note Series I under Argentine law for an amount of USD 85.2 million, at a price of 103.77%, which resulted in an internal annual rate of return of 8.75% nominal. Also, on the same date, the Notes Series II denominated in Chilean pesos, under writable and payable in dollars, for an amount of CLP 31,502.6 million (equivalent to USD 45 million) at a fixed rate of 10.5% per within 12 months.

On August 6, 2020, Class II denominated in Chilean pesos was fully repaid.

On September 15, 2020, Communication “A” 7,106 established that companies must refinance maturities of financial debt capital in the period from October 15, 2020 to March 31, 2021. In this sense, the Central Bank will give access to companies for up to 40% of maturities and companies must refinance the rest within at least two years. For more information see “Item 10. Additional Information—D. Exchange Controls” in our 2020 Form 20-F, if Communication “A” 7,106 is extended after March 31, 2021, the capital outstanding maturity of this Note would be affected by such measure.

As a consequence of the new restrictions on access to the Foreign Exchange Market, on October 22, 2020, IRSA launched an exchange offer on its Series I Notes due on November 15, 2020.

The exchange offer consisted on two options for the bondholders: i) a cash consideration of USD 0.69622593 for each USD 1 of existing notes presented to the Exchange and the remaining amount until completing USD 1 for each USD 1 of existing notes presented to the Exchange, in notes Series VIII, and ii) a par for par exchange of notes Series IX for each Existing Notes presented to the Exchange.

The Exchange Offer expired on November 10, 2020 and the Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series) was USD 178,458,188, which represents 98.31% acceptance. Considering that consent has been obtained for an amount greater than 90% of the capital of the existing notes, IRSA made the Non-Essential Proposed Modifications and / or the Essential Proposed Modifications, by means of which the terms and conditions of the existing notes will be modified and replaced.

In relation to the Exchange Offer ended on November 10, 2020, on November 12, 2020, IRSA made a partial repayment of Series I Notes for a Nominal Value of USD 178,458,188, after the partial repayment the Nominal Value under circulation was USD 3,060,519.

For more information see: “Recent Developments - Exchange Offer- Issuance of Series VIII and IX Notes.”

Series III, IV and V (issued by IRSA)

On May 21, 2020, IRSA issued in the local market a total amount of USD 65.8 million through the following Notes:

●

Series III: denominated and payable in pesos for ARS 354 million (equivalent at the time of issuance to USD 5.2 million) at a variable rate (private BADLAR + 6.0%) with quarterly payments. The principal will be paid in two installments: the first for an amount equivalent to 30% of the nominal value payable 6 (six) months from the Issue and Settlement Date, and the second for an amount equivalent to 70% of the nominal value payable on the due date, February 21, 2021. Price of issuance was 100.0% of the nominal value.

●

Series IV: denominated in USD and payable in ARS at the applicable exchange rate for USD 51.4 million at a fixed rate of 7.0%, with quarterly payments and principal expiring on May 21, 2021. Price of issuance was 102.0% of the nominal value (IRR 5.03%).

●

Series V: denominated in USD and payable in ARS at the applicable exchange rate for USD 9.2 million at a fixed rate of 9.0%, with quarterly payments and principal expiring on May 21, 2022. Price of issuance was 103.0% of the nominal value (IRR 7.56%).

Series VI and VII (issued by IRSA)

On July 21, 2020, IRSA issued in the local market a total amount of USD 38.4 million through the following Notes:

●

Series VI: denominated and payable in pesos for ARS 335.2 million (equivalent at the time of issuance to USD 4.7 million) at a variable rate (private BADLAR + 4.0%) with quarterly payments. The principal will be paid in two installments: the first for an amount equivalent to 30% of the nominal value payable 9 (nine) months from the Issue and Settlement Date, and the second for an amount equivalent to 70% of the nominal value payable on the due date, July 21, 2021. Price of issuance was 100.0% of the nominal value.

●

Series VII: denominated in dollars and payable in pesos at the applicable exchange rate for USD 33.7 million at a fixed rate of 4.0%, with quarterly payments and principal expiring on January 21, 2022. Price of issuance was 100.0% of the nominal value.

The funds have been used to refinance short-term liabilities.

Series IV Notes (Issued by IRSA CP)

On September 12, 2017, IRSA CP issued, under Argentine law, the Series IV Notes, for USD140 million, bearing a fixed interest rate of 5.0%, maturing on September 14, 2020.

On September 14, 2020, Class IV was fully repaid.

Communication “A” 7,106

On September 15, 2020, Communication “A” 7,106 established that companies must refinance maturities of financial debt capital in the period from October 15, 2020 to March 31, 2021. In this sense, the Central Bank will give access to companies for up to 40% of maturities and companies must refinance the rest within at least two years. For more information see. “Item 10. Additional Information—D. Exchange Controls” in our 2020 Form 20-F.

Operations Center in Israel

It should be noted that the financial position of IDBD and DIC and their subsidiaries in the Operations Center in Israel does not adversely affect IRSA’s cash flows to satisfy the debts of IRSA.

Moreover, the commitments and other restrictions resulting from IDBD’s indebtedness have no effects on IRSA, as it qualifies as non-recourse debt against IRSA, and IRSA has not given its assets as collateral for such debt either.

C. RESEARCH AND DEVELOPMENTS, PATENTS AND LICENSES

Insurance

Agricultural Business

We carry insurance policies with insurance companies that we consider to be financially sound. We employ multi-risk insurance for our farming facilities and industrial properties, which covers property damage, negligence liability, fire, falls, collapse, lightning and gas explosion, electrical and water damages, theft, and business interruption. Such insurance policies have specifications, limits and deductibles which we believe are customary. Nevertheless, they do not cover damages to our crops. We carry directors and officer’s insurance covering management’s civil liability, as well as legally mandated insurance, including employee personal injury. We also provide life or disability insurance for our employees as benefits.

We believe our insurance policies are adequate to protect us against the risks for which we are covered. Nevertheless, some potential losses are not covered by insurance and certain kinds of insurance coverage may become prohibitively expensive.

The types of insurance used by us are the following:

Insured<br>Property	Risk<br>Covered	Amount<br>Insured<br><br><br><br><br><br>(in<br>Millions of ARS)	Book<br>Value<br><br><br><br><br><br>(in<br>Millions of ARS)
Buildings,<br>machinery, silos, installation and furniture and<br>equipment	Theft, fire and<br>technical insurance	2,911	6,406
Vehicles	Theft, fire and<br>civil and third parties liability	130	52

D. TREND INFORMATION

International Macroeconomic Outlook

As reported in the IMF’s “World Economic Outlook,” world GDP is expected to de reduced (4.9)% in 2020 and recover 5.4% in 2021. As with the April 2020 WEO projections, there is a higher-than-usual degree of uncertainty around this forecast. The baseline projection rests on key assumptions about the fallout from the pandemic. In economies with declining infection rates, the slower recovery path in the updated forecast reflects persistent social distancing into the second half of 2020; greater scarring (damage to supply potential) from the larger-than-anticipated hit to activity during the lockdown in the first and second quarters of 2020; and a hit to productivity as surviving businesses ramp up necessary workplace safety and hygiene practices. For economies struggling to control infection rates, a lengthier lockdown will inflict an additional toll on activity. Moreover, the forecast assumes that financial conditions—which have eased following the release of the April 2020 WEO — will remain broadly at current levels. Alternative outcomes to those in the baseline are clearly possible, and not just because of how the pandemic is evolving.

All countries including those that have seemingly passed peaks in infections—should ensure that their health care systems are adequately resourced. The international community must vastly step up its support of national initiatives, including through financial assistance to countries with limited health care capacity and channeling of funding for vaccine production as trials advance, so that adequate, affordable doses are quickly available to all countries. Where lockdowns are required, economic policy should continue to cushion household income losses with sizable, well-targeted measures as well as provide support to firms suffering the consequences of mandated restrictions on activity. Where economies are reopening, targeted support should be gradually unwound as the recovery gets underway, and policies should provide stimulus to lift demand and ease and incentivize the reallocation of resources away from sectors likely to emerge persistently smaller after the pandemic.

Strong multilateral cooperation remains essential on multiple fronts. Liquidity assistance is urgently needed for countries confronting health crises and external funding shortfalls, including through debt relief and financing through the global financial safety net. Beyond the pandemic, policymakers must cooperate to resolve trade and technology tensions that endanger an eventual recovery from the COVID-19 crisis. Furthermore, building on the record drop in greenhouse gas emissions during the pandemic, policymakers should both implement their climate change mitigation commitments and work together to scale up equitably designed carbon taxation or equivalent schemes. The global community must act now to avoid a repeat of this catastrophe by building global stockpiles of essential supplies and protective equipment, funding research and supporting public health systems, and putting in place effective modalities for delivering relief to the neediest.

Argentine macroeconomic context

At the end of 2019, the economy faced a severe balance of payments crisis and public debt. Faced with this scenario, the National Government adopted a set of measures designed to face the most immediate manifestations of the crisis and to stabilize the macroeconomy. Regarding monetary policy, the Central Bank of Argentina defined a series of guidelines, highlighting the referring to interest rates and exchange rate management. Foreign exchange regulations and the moderation in prices linked to the limited volatility of the exchange rate allowed a marked reduction of the LELIQ rate from 68% to 38% nominal annually. The progress made the financial system better prepared to face the emergency caused by COVID-19.

Shopping malls sales reached a total ARS 3,758.5 million in September 2020, which represents a 71.4% decrease as compared to fiscal 2019.

The INDEC reported that, for the ten months ended October 31, 2020, industrial activity in Argentina contracted by 9.9% compared to the same period in 2019. The textile industry accumulated a 32.2% contraction during the first ten months of 2020 as compared to the same period last year. Moreover, the monthly estimation of economic activity (“EMAE”) as of September 30, 2020, contracted by 6.9% compared to the same month in 2019.

Regarding the balance of payments, in the second quarter of 2020 the current account superavit reached USD 2,824 million, with USD 4,971 million allocated to the goods and services trade balance, and USD 2,484 million to the net primary deficit, and a surplus of USD 337 million to net secondary income.

During the second quarter of 2020, the financial account showed net outflow of USD 2,514 million, explained by the net acquisition of financial assets for USD 893 million, and net cancellation of liabilities of USD 1,621 million. The sectors that have explained these outflows have been Other sectors for USD 2,433 million and the Government for USD 1,324 million, partially offsetting by the net income of the Central Bank for USD 1,293 million. The international reserves decreased by USD 793 million during the second quarter of 2020.

As of December 18, 2020, the Private Badlar rate in Pesos peaked at 34.31%. As of December 22, 2020, the seller exchange rate quoted by Banco de la Nación Argentina was of ARS 83.25 pesos per USD1.00. As of December 18, 2020, Argentina’s country risk reduced by 466 basis points in year-on-year terms. The debt premium paid by Argentina was at 1,363 basis points as of December 22, 2020, compared to 263 basis points paid by Brazil and 205 basis points paid by Mexico as of that same date.

Likewise, in the national and international framework described above, the Company periodically analyzes alternatives to appreciate its shares value. In that sense, the Board of Directors of the Company will continue in the evaluation of financial, economic and / or corporate tools that allow the Company to improve its position in the market in which it operates and have the necessary liquidity to meet its obligations. Within the framework of this analysis, the indicated tools may be linked to corporate reorganization processes (merger, spin-off or a combination of both), disposal of assets in public and / or private form that may include real estate as well as negotiable securities owned by the Company, incorporation of shareholders through capital increases through the public offering of shares to attract new capital, repurchase of shares and instruments similar to those described that are useful to the proposed objectives.

Agriculture and Cattle Raising Sector in Argentina

Agriculture

Argentina has positioned itself over the years as one of the world’s leading food producers and exporters. It is the second largest country in South America after Brazil and has particularly favorable natural conditions for diversified agricultural production: vast extensions of fertile land and varied soil and weather patterns.

During the decade of the nineties, the Argentine agriculture and cattle raising industry experienced sweeping changes, such as a significant increase in production and yield (thanks to a sustained agricultural modernization process), relocation of production (crops vs. livestock) and a significant restructuring process within the industry, as well as increased land concentration. Taking advantage of a favorable international context, the agriculture and cattle raising sector has been one of the major drivers of the Argentine recovery after the economic and financial crisis of 2002.

According to the World Agricultural Supply and Demand Estimates Repro published by the United States Department of Agriculture on September 11, 2020, world soybean production for the season 2020/2021 is expected to be about 369,74 million tons, an increase of 9.5% as compared to the season 2019/2020.

World corn production is expected to about 1,162.4 million tons for season 2020/2021, 4.5% higher than in the previous season.

The policies implemented by the new government ever since taking office have led to better projections for the agricultural industry. Mainly, the strong devaluation of the peso and tax reductions on exports have improved the situation of agricultural growers. Withholding taxes on corn and wheat have been reinstated at 10%, whereas withholding taxes on soybean have been modified to 18% export tax over the FOB prices plus ARS 4 per dollar.

In addition, on October 2, 2020, a temporary reduction on certain export duty rates was established for a series of soybean products and by-products. This is a temporary reduction and will be applied from October 2020 until January 2021, at which time export duties will be gradually taxed again at the same rate they were before the decree came in force.

Cattle

As reported by SENASA, with an aggregate stock of 54,460,799 heads as of March 31, 2020, the cattle stock has decreased slightly by 1.00% as compared to the same period of the previous year. For the decade in a row, the cattle stock surpassed 48 million heads.

As reported by the Argentine Chamber of Beef Commerce and Industry (Cámara de la Industria y Comercio de Carnes y Derivados de la República Argentina, “Ciccra”), consumption of cattle beef per capita was 50.5 kilograms per year on average for September 2020, accounting for a year-on-year decrease of 2.7%. Domestic consumption accounts for 72.8% of production, representing a year-on-year decrease of 2.1%.

Urban Properties and Investment Business

Operations Center in Argentina

Evolution of Shopping Malls in Argentina

In September 2020, the Consumer Confidence Index (CCI) showed a 2.4% decline compared to August 2020, and a 4.2% decrease compared to September 2019. Shopping mall sales decrease 82.2% in the fiscal 2020 compared to fiscal 2019.

Evolution of Office Properties in Argentina

Evolution of the Hotel industry in Argentina

E. OFF-BALANCE SHEET ARRANGEMENTS

Agricultural Business

In the ordinary course of business, FyO guarantees certain brokerage transactions. Under the agreement, FyO guarantees the performance of the producer in case it does not comply with the physical delivery. We have recourse against the non-performing party. As of September 30, 2020, the value of transacted merchandise for which guarantees were granted amounted to ARS 347 million. As of the date of this document, there were non-performing parties under the agreements for which we had to respond as guarantor. As of the date of this report, the value of transacted merchandise for which guarantees were granted amounted to ARS 327 million.

Agricultural Business

Urban Properties and Investment Business

As of September 30, 2020, IRSA did not have any off-balance sheet transactions, arrangements or obligations with unconsolidated entities or others that are reasonably likely to have a material effect on our financial condition, results of operations or liquidity.

F. SAFE HARBOR

See the discussion at the beginning of this chapter and “Disclosure regarding forward looking statements” in the introduction of this annual report, for forward-looking statement safe harbor provisions.

For information about Production and Sales, please see “—Consolidated Operating Results” Above.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Directors

The table below shows information about our regular directors and alternate directors as from October 26, 2020

Directors (1)	Date of Birth	Position in Cresud	Term Expires (2)	Date appointed	Current Position Held Since
Eduardo<br>S. Elsztain	01/26/1960	Chairman	06/30/23	10/26/20	1994
Saúl<br>Zang	12/30/1945	First<br>Vice-Chairman	06/30/23	10/31/20	1994
Alejandro<br>G. Elsztain	03/31/1966	Second<br>Vice-Chairman and CEO	06/30/22	10/31/16	1994
Gabriel<br>A.G. Reznik	11/18/1958	Regular<br>Director	06/30/21(2)	10/29/18	2003
Jorge<br>O. Fernández	01/08/1939	Regular<br>Director	06/30/21(2)	10/29/18	2003
Fernando<br>A. Elsztain	01/04/1961	Regular<br>Director	06/30/22	10/31/16	2004
Pedro<br>D. Labaqui Palacio	02/22/1943	Regular<br>Director	06/30/21(2)	10/29/18	2006
Alejandro<br>G. Casaretto	10/15/1952	Regular<br>Director	06/30/23	10/26/20	2008
Liliana<br>Glikin	29/03/1953	Regular<br>Director	06/30/22	10/30/19	2019
Alejandro<br>Bartolome	09/12/1954	Regular<br>Director	06/30/22	10/30/19	2019
Gabriela<br>Macagni	13/01/1964	Regular<br>Director	06/30/22	03/11/20	2020
Mariana<br>R. Carmona	02/11/1961	Regular<br>Director	06/30/23	10/26/20	2020
Gastón<br>A. Lernoud	06/04/1968	Alternate<br>Director	06/30/20	10/31/17	1999
Enrique<br>Antonini	03/16/1950	Alternate<br>Director	06/30/22	10/31/16	2007
Eduardo<br>Kalpakian	03/03/1964	Alternate<br>Director	06/30/22	10/31/16	2007
Iair<br>Elsztain	05/03/1995	Alternate<br>Director	06/30/22	03/11/20	2020
Ilan<br>Elsztain	01/08/1992	Alternate<br>Director	06/30/22	03/11/20	2020

(1) The business address of our management is Carlos Della Paolera 261, 9th Floor, (C1091AAQ) Buenos Aires, Argentina.

(2) Term expires at the annual ordinary shareholders’ meeting.

Liliana Glikin, Alejandro Bartolome, Graciela Macagni, Enrique Antonini and Eduardo Kalpakian, qualify as independent, in accordance with the CNV Rules.

Employees

Operations Center in Argentina

As of September 30, 2020, we had 3,107 employees.

As of such date, we had 1,044 employees in our Agricultural Business in Argentina, including our employees, FyO and SACPSA but not those of Agro-Uranga S.A. Approximately 64% are under collective labor agreements.

We employ 395 people in our International Agricultural businesses, composed of 346 employees of Brasilagro, 28 employees in the companies located in Paraguay, 21 employees in the companies located in Bolivia.

Our Development and Sale of Properties and Other Non-Shopping Mall Businesses segment had 10 employees, The Shopping Mall segment had 667 employees including 304 under collective labor agreements. Our Hotels segment had 696 employees with 555 represented by the Tourism, Hotels and Gastronomy Union from the Argentine Republic (Unión de Trabajadores del Turismo, Hoteleros y Gastronómicos de la República Argentina) (UTHGRA).

The following table shows the number of employees in the Company’s various businesses as of the dates mentioned below:

		Urban Business
	Agricultural Business(1)	Sales and Developments(2)	Shopping Mall(3)	Hotels(4)	Shared Service Center(3)	Corporate Areas	Total
June 30,<br>2018	1,304	31	928	812	191	115	3,381
June 30,<br>2019	1,360	12	865	832	194	107	3,370
June 30,<br>2020	1,397	11	784	701	188	104	3,185
As of September 30,<br>2020	1,439	10	667	696	199	96	3,107

(1)

Agricultural Business includes CRESUD, FyO, SACPSA, and from this fiscal year we also include in this disclosure the employees of BrasilAgro, Cresca and Palmeira S.A.

(2)

As of March 2019, we were no longer administrators of Consorcio Libertador S.A. and Consorcio Maipu 1300 S.A

(3)

On December 2018, the concession of the Buenos Aires Design shopping mall ended.

(4)

Includes Hotel Intercontinental, Libertador Hotel and Llao Llao.

Share Ownership

The following table sets forth the amount and percentage of our shares beneficially owned by our directors, Supervisory Committee, and senior management as of September 30, 2020:

		Share<br>ownership
Name	Position	Number<br>of Shares	Percentage
Directors
Eduardo Sergio<br>Elsztain (1)	Chairman	177,186,493	35.32%
Saúl<br>Zang	First<br>vice-chairman	5,513,462	1.10%
Alejandro Gustavo<br>Elsztain	Second vice-<br>chairman / Chief Executive Officer	10,012,430	2.00%
Gabriel A. G.<br>Reznik	Director	-	-
Jorge Oscar<br>Fernández	Director	273,883	0.05%
Fernando<br>Adrián<br>Elsztain	Director	-	-
Pedro Damaso<br>Labaqui Palacio	Director	-	-
Mariana<br>Carmona	Director	-	-
Alejandro Gustavo<br>Casaretto	Director/Regional<br>manager of Agricultural Real Estate	141,334	0.03%
Alejandro Mario<br>Bartolome	Director	-	-
Gabriela<br>Macagni	Director	-	-
Liliana Rene<br>Glikin	Director	-	-
Gastón Armando<br>Lernoud	Alternate<br>Director	10,136	0.00%
Enrique<br>Antonini	Alternate<br>Director	-	-
Ilan<br>Elsztain	Alternate<br>Director	7,103	0.00%
Iair<br>Elsztain	Alternate<br>Director	602	0.00%
Senior<br>Management
Matias<br>Gaivironsky	Chief Financial and<br>Administrative Officer	83,723	0.02%
Carlos<br>Blousson	Chief Executive<br>Officer of the International Operation	-	-
Supervisory<br>Committee
José Daniel<br>Abelovich	Member	-	-
Marcelo Héctor<br>Fuxman	Member	-	-
Noemí Ivonne<br>Cohn	Member	-	-
Roberto Daniel<br>Murmis	Alternate<br>member	-	-
Paula<br>Sotelo	Alternate<br>member	-	-
Cynthia<br>Deokmelian	Alternate<br>member	-	-
Executive<br>Committee
Eduardo Sergio<br>Elsztain	Member	177,186,493	35.32%
Saúl<br>Zang	Member	5,513,462	1.10%
Alejandro Gustavo<br>Elsztain	Member	10,012,430	2.00%

(1)

Includes (i) 73,897,991 shares beneficially owned by IFISA, for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, (ii) 940 common shares owned by Consultores Venture Capital Uruguay S.A. for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, iii) 103,087,210 common shares owned by Agroninvestment S.A. for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, and iv) 200,352 common shares directly owned by Mr. Eduardo S. Elsztain. Furthermore, IFISA retains voting power and right of first refusal over an equivalent of 8,669,890 common shares (1.73% of the outstanding) until 02/18/2021.

Option Ownership

No options to purchase shares have been granted to our Directors, Senior Managers, members of the Supervisory Committee, or Audit Committee.

Employees’ Participation in our share Capital

There are no arrangements for involving our employees in our capital stock or related to the issuance of options, common shares or securities other than those described under the following sections: (i) “Item 6 - Directors, Senior Management and Employees – B. Compensation – Capitalization Program for our executive staff” and (ii) “Item 6 - Directors, Senior Management and Employees – B. Compensation – Long Term Incentive Program” in our 2020 Form 20-F.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Information about Major Shareholders

Share Ownership

The following table sets forth information regarding ownership of our capital stock by each person known to us to own beneficially at least 5% of our common shares, ANSES (The Argentine Social Security National Agency) and all our directors and officers as a group.

	Share<br>Ownership as of September 30, 2020
Shareholder	Number<br>of Shares	Percentage
Eduardo Sergio<br>Elsztain (1)(2)	177,186,493	35.32%
Directors and<br>officers(3)	16,041,743	3.20%
ANSES	19,273,045	3.84%
Total	212,501,281	42.36%

(1)

Eduardo S. Elsztain is the Chairman of the board of directors of IFIS Limited, a corporation organized under the laws of Bermuda and Inversiones Financieras del Sur S.A., a corporation organized under the laws of Uruguay. Mr. Elsztain holds (through companies controlled by him and proxies) most of the voting power in IFIS Ltd., which owns 100% of IFISA.

(2)

As a result, Mr. Elsztain may be deemed beneficial owner of 35.32% of our total shares, which includes (i) 73,897,991 shares beneficially owned by IFISA, for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, (ii) 940 common shares owned by Consultores Venture Capital Uruguay S.A. for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, iii) 103,087,210 common shares owned by Agroninvestment S.A. for which Mr. Eduardo S. Elsztain may be deemed beneficial owner, and iv) 200,352 common shares directly owned by Mr. Eduardo S. Elsztain. Furthermore, IFISA retains voting power and right of first refusal over an equivalent of 8,669,890 common shares (1.73% of the outstanding) until 02/18/2021.

(3)

Includes only direct ownership of our Directors and Senior Management, other than Mr. Eduardo S. Elsztain.

	As<br>of September 30,	As<br>of June 30,
	2020	2020	2019	2018	2017	2016
Eduardo S.<br>Elsztain(1)(2)	35.32%	36.93%	36.38%	34.74%	30.8%	30.9%
Newfoundland<br>Capital Management(3)	0.00%	0.82%	10.97%	9.0%	—	—
Macquarie<br>Investment Management(3)	4.66%	4.83%	5.0%	—	—	—
Senvest Management<br>LLC(3)	0.00%	0.00%	0.0%	0.7%	3.3%	4.8%
Directors and<br>officers(4)	3.20%	3.20%	3.0%	2.8%	2.8%	2.9%
ANSES	3.84%	3.84%	3.7%	3.6%	3.6%	3.6%

(1)

(2)

(3)

According to the Form filed with the SEC.

(4)

Includes only direct ownership of our Directors and Senior Management, other than Mr. Eduardo S. Elsztain.

Difference in Voting Rights

Our major shareholders do not have different voting rights.

Arrangements for change in control

There are no arrangements that may at a subsequent date in a change in control.

Securities held in the host country

As of September 30, 2020, our total issued and outstanding capital stock outstanding consisted of 501,642,804 common shares. As of September 30, 2020, there were approximately 39,993,750 Global Depositary Shares (representing 399,937,500 of our common shares, or 79.72% of all of our outstanding shares held) in the United States by approximately 39 registered holders of Global Depositary Shares.

As of September 30, 2020, our directors and senior officers controlled, directly or indirectly, approximately 38.5% of our common shares. As a result, these shareholders have, and will continue to have, significant influence on the election of our directors and the outcome of any action requiring shareholder approval.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial and Administrative Officer, to allow our management to make timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective. In connection with the preparation of this on Form 6-K, we carried out an evaluation under the supervision and with the participation of members of our management team, including our Chief Executive Officer and Chief Financial and Administrative Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2020, taking into account the recast of our audited consolidated financial statements as of such date to: (a) present the Audited Consolidated Financial Statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements are included in this Form 6-K); and (b) reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date. Based upon this evaluation our Chief Executive Officer and Chief Financial and Administrative Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Form 6-K were effective at the reasonable assurance level.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate Internal Control over Financial Reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our Internal Control over Financial Reporting includes a series of procedures designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external purposes, in accordance with International Financial Reporting Standards and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated Financial Statements in accordance with International Financial Reporting Standards and that a company’s receipts and expenditures are being made only in accordance with authorizations of our management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our Consolidated Financial Statements.

Because of its inherent limitations, Internal Control over Financial Reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

Management assessed the effectiveness of our Internal Control over Financial Reporting as of June 30, 2020, taking into account the recast of our audited consolidated financial statements as of such date to: (a) present the Audited Consolidated Financial Statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements are included in this Form 6-K); and (b) reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control–Integrated Framework (2013). Based on this evaluation, mangement concluded that our Internal Control over Financial Reporting was effective as of June 30, 2020.

Attestation Report of the Registered Public Accounting Firm

The effectiveness of the Company’s internal control over financial reporting as of June 30, 2020, taking into account the recast of our audited consolidated financial statements as of such date to: (a) present the Audited Consolidated Financial Statements in the measuring unit current at the end of the reporting period as of September 30, 2020 (the most recent period for which financial statements are included in this Form 6-K); and (b) reflect IRSA’s loss of control in IDBD and DIC on September 25, 2020 and, consequently, the deconsolidation of such investees since that date, has been audited by Price Waterhouse & Co S.R.L, Buenos Aires Argentina- member firm of Pricewaterhouse Coopers International Limited, an independent registered public accounting firm, as stated in their report which appears herein.

Changes in Internal Control Over Financial Reporting

During the fiscal year ended June 30, 2019, we implemented the Consolidation module of the BPC (Business Planning and Consolidation) application by SAP and accordingly we have updated our internal controls over financial reporting, as necessary, to accommodate modifications to our accounting and financial reporting processes and to take advantage of enhanced automated controls provided by this new system.

There have been no changes in our internal control over financial reporting during the fiscal year ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Audit Committee Financial Expert

In our annual ordinary shareholders’ meeting held on October 31, 2003, the audit committee was unanimously approved. Pursuant to this plan, the board of directors had to appoint the members of the audit committee who hold expertise in corporate administration, finance and accounting.

Our board of directors established an audit committee which would assist the Board in exercising its duty of care on disclosure requirements, the enforcement of accounting policies, management of our business risks, the management of our internal control systems, ethical conduct of our businesses, monitoring the sufficiency of our financial statements, our compliance with laws, independence and capacity of independent auditors and performance of our internal audit and our external auditors. Also, according to the applicable regulations, we may request to our audit committee to render its opinion in certain transactions, and its conditions, as is the case of related party transactions, as may be reasonably considered adequate according to normal market conditions.

As of March 11, 2020 our board of directors appointed Liliana Glikin, María Gabriela Macagni and Alejandro Mario Bartolome, all of them independent members, as members of the audit committee. The board of directors named María Gabriela Macagni as the financial expert in accordance with the relevant SEC rules. We have a fully independent audit committee as per the standards provided in Rule 10(A)-3(b)(1).

Code of Ethics

We have adopted a code of ethics that applies to our directors, officers and employees. Our code of ethics is posted in our website www.cresud.com.ar. On July 25, 2005, our Code of Ethics was amended by our Board of Directors. The amendment was reported in a report on Form 6-K on August 1, 2005.

If we make any substantive amendment to the code of ethics or grant any waivers, including any implicit waiver to any of its provision, we will disclose the nature of such amendment or waiver in a report on Form 6-K or in our next annual report on Form 20-F and we will post it in our website.

Note to Draft: Inclusion/content of this section (or portions of it) to be discussed. Subject to review by STB.

INDEX OF EXHIBITS

Exhibit No.	Description of Exhibit
99.1	Audited<br>Consolidated Financial Statements as of June 30, 2020 and 2019 and<br>for the fiscal years ended June 30, 2020, 2019 and 2018
99.2	Unaudited<br>Condensed Interim Consolidated Financial Statements as of September<br>30, 2020 and for the three-month period ended September 30, 2020<br>and 2019.
99.3	Summary<br>of investment properties by type as of June 30, 2020 (in accordance<br>with Regulation S-X 12-28 (1)).
99.4	List of<br>Subsidiaries.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y<br>Agropecuaria
Date<br>January 5, 2021	By: <br>/s/ Matías I. Gaivironsky
	Name: Matías<br>I. Gaivironsky<br><br><br>Title: Chief<br>Financial and Administrative<br>Officer

cresudrecast

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS

Report<br>of Independent Registered Public<br>Accounting Firm	F-1
Glossary<br>of terms	F-2
Consolidated<br>Statements of Financial Position	F-4
Consolidated<br>Statements of Income and Other Comprehensive Income	F-5
Consolidated<br>Statements of Changes in Shareholders’ Equity	F-6
Consolidated<br>Statements of Cash Flows	F-9
Notes<br>to Consolidated Financial Statements:
Note 1<br>- The Group's business and general information	F-10
Note 2<br>- Summary of significant accounting policies	F-14
Note 3<br>- Significant judgments, key assumptions and estimates	F-34
Note 4<br>- Acquisitions and disposals	F-35
Note 5<br>- Financial risk management and fair<br>value estimates	F-45
Note 6<br>- Segment information	F-55
Note 7<br>- Information about the main subsidiaries	F-65
Note 8<br>- Investments in associates and joint<br>ventures	F-66
Note 9<br>- Investment properties	F-69
Note 10<br>- Property, plant and equipment	F-73
Note 11<br>- Trading properties	F-73
Note 12<br>- Intangible assets	F-74
Note 13 - Rights of use of assets	F-75
Note 14<br>- Biological assets	F-76
Note 15<br>- Inventories	F-78
Note 16<br>- Financial instruments by category	F-78
Note 17<br>- Trade and other<br>receivables	F-82
Note 18<br>- Cash flow information	F-83
Note 19<br>- Shareholders’ Equity	F-85
Note 20<br>- Trade and other<br>payables	F-86
Note 21<br>- Provisions	F-86
Note 22<br>- Borrowings	F-89
Note 23<br>- Income tax	F-91
Note 24<br>- Leases	F-94
Note 25<br>- Revenues	F-95
Note 26<br>- Costs	F-96
Note 27<br>- Expenses by nature	F-96
Note 28<br>- Other operating results, net	F-97
Note 29<br>- Financial results, net	F-97
Note 30<br>- Earnings per share	F-98
Note 31<br>- Employee benefits and share-based<br>payments	F-98
Note 32<br>- Related party transactions	F-100
Note 33<br>- Cost of sales and services provided	F-105
Note 34<br>- Foreign currency assets and liabilities	F-106
Note 35<br>- Groups of assets and liabilities<br>held for sale	F-106
Note 36<br>- Results from discontinued operations	F-107
Note<br>37 - Economic framework of the Group's business	F-107
Note<br>38 - Subsequent events	F-110
Schedule<br>I

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria and its subsidiaries (the “Company”) as of June 30, 2020 and 2019, and the related consolidated statements of income and other comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended June 30, 2020, including the related notes and the summary of investment properties by type as of June 30, 2020 listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of June 30, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2020 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting appearing in the accompanying Form 6-K. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Emphasis of Matter

As discussed in Note 1, these consolidated financial statements have been recast to (i) restate all amounts into the current unit of measurement as of September 30, 2020, and (ii) reflect the loss of control of the Company’s subsidiary IDBD.

As discussed in Note 37 to the consolidated financial statements, there are significant uncertainties related to the impact of the current economic context and COVID-19. Management’s evaluation of the events and conditions and management’s plans to mitigate these matters are also described in Note 37.

F-1

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PRICE WATERHOUSE & Co. S.R.L

(Partner)

/s/ Walter Rafael Zablocky

Buenos Aires, Argentina

January 5, 2021

We have served as the Company’s auditor since 1995.

F-2

Glossary of terms

The following are not technical definitions, but help the reader to understand certain terms used in the wording of the notes to the Group´s Consolidated Financial Statements.

Terms	Definitions
Acres	Agropecuaria Acres del Sud S.A.
Adama	Adama Agricultural Solutions Ltd.
Agropecuarias SC	Agropecuarias Santa Cruz de la Sierra S.A.
BACS	Banco de Crédito y Securitización S.A.
Baicom	Baicom Networks S.A.
Bartan	Bartan Holdings and Investments Ltd.
BYMA	Buenos Aires Stock Exchange
BASE	Buenos Aires Stock Exchange
BCRA	Central Bank of the Argentine Republic
BHSA	Banco Hipotecario S.A.
BMBY	Buy Me Buy You
BNSA	Boulevard Norte S.A.
Brasilagro	Brasilagro-Companhia Brasileira de Propriedades<br>Agrícolas
CAMSA	Consultores Assets Management S.A.
Carnes Pampeanas	Sociedad Anónima Carnes Pampeanas S.A.
Cellcom	Cellcom Israel Ltd.
IFRIC	International Financial Reporting Standards Interpretation<br>Committee
Clal	Clal Holdings Insurance Enterprises Ltd.
CNV	National Securities Commission
CODM	Chief Operating Decision Maker
Condor	Condor Hospitality Trust Inc.
Cresud, “the Company”, “us”	Cresud S.A.C.I.F. y A.
Cyrsa	Cyrsa S.A.
DFL	Dolphin Fund Ltd.
DIL	Dolphin IL Investment Ltd.
DIC	Discount Investment Corporation Ltd.
DN B.V.	Dolphin Netherlands B.V.
Dolphin	Dolphin Fund Ltd. and Dolphin Netherlands B.V.
ECLSA	E-Commerce Latina S.A.
USA	United States of America
Efanur	Efanur S.A.
EHSA	Entertainment Holdings S.A.
Electra	Electra Consumer Products Ltd.
ENUSA	Entretenimiento Universal S.A.
ERSA	Emprendimiento Recoleta S.A.
Financial Statements	Unaudited Condensed Interim Consolidated Financial<br>Statements
Annual Financial Statements	Consolidated Financial Statements as of June 30, 2019
ETH	C.A.A. Extra Holdings Ltd.
CPF	Collective Promotion Funds
Gav-Yam	Gav-Yam, Bayside Land Corporation Ltd
Gav-Yam	Gav-Yam Bayside Land Corporation Ltd.
GCBA	Autonomous City of Buenos Aires Government
Golan	Golan Telecom Ltd.
HASAU	Hoteles Argentinos S.A.U.
IASB	International Accounting Standards Board
IDBT	IDB Tourism (2009) Ltd.
IDBD	IDB Development Corporation Ltd.
IDBG	IDB Group Investment Inc.
IDBH	IDB Holdings Corporation Ltd.
IFISA	Inversiones Financieras del Sur S.A.
CPI	Consumer Price Index
IRSA	IRSA Inversiones y Representaciones S.A.
ISPRO	ISPRO the Israel properties rental Corp. Ltd.
IRSA CP	IRSA Propiedades Comerciales S.A.
ISPRO	Ispro The Israeli Properties Rental Corporation Ltd.
Israir	Israir Airlines & Tourism Ltd.
Lipstick	Lipstick Management LLC
LRSA	La Rural S.A.
Metropolitan	Metropolitan 885 Third Avenue Leasehold LLC
NASDAQ	National Association of Securities Dealers Automated<br>Quotation
New Lipstick	New Lipstick LLC
IAS	International Accounting Standards
IFRS	International Financial Reporting Standards
MPIT	Minimum Presumed Income Tax
NCN	Non-convertible notes
NIS	New Israeli Shekel
NFSA	Nuevas Fronteras S.A.
NPSF	Nuevo Puerto Santa Fe S.A.
NYSE	New York Stock Exchange
OASA	Ogden Argentina S.A.
Ombú	Ombú Agropecuaria S.A.
PAMSA	Panamerican Mall S.A.
PBC	Property & Building Corporation Ltd.
PBEL	PBEL Real Estate Ltd.
Puerto Retiro	Puerto Retiro S.A.
Quality	Quality Invest S.A.
Rock Real	Rock Real Estate Partners Limited
Shufersal	Shufersal Ltd.
SRA	Sociedad Rural Argentina
Tarshop	Tarshop S.A.
TASE	Tel Aviv Stock Exchange
Tender offers	Share repurchase commitment
TGLT	TGLT S.A.
Tyrus	Tyrus S.A.

F-3

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Financial Position

as of June 30, 2020 and 2019

(All amounts in millions, except otherwise indicated)

	Note	06.30.20	06.30.19
ASSETS
Non-current<br>assets
Investment<br>properties	9	247,786	360,662
Property, plant and<br>equipment	10	64,545	58,248
Trading<br>properties	11	5,228	8,456
Intangible<br>assets	12	30,350	28,009
Right-of-use<br>assets	13	23,607	-
Biological<br>assets	14	1,893	1,943
Other<br>assets		-	34
Investments in<br>associates and joint<br>ventures	8	80,879	48,305
Deferred income tax<br>assets	23	998	832
Income tax and MPIT<br>credits		68	292
Restricted<br>assets	16	2,084	4,894
Trade and<br>other receivables	17	29,418	23,393
Investment in<br>financial assets	16	3,784	4,446
Financial assets at<br>fair value through profit or<br>loss	16	-	6,428
Derivative<br>financial instruments	16	177	165
Total<br>non-current assets		490,817	546,107
Current<br>assets
Trading<br>properties	11	2,493	563
Biological<br>assets	14	2,986	4,085
Inventories	15	9,763	6,893
Restricted<br>assets	16	6,684	6,741
Income tax and<br>MPIT credits		329	602
Groups of assets<br>held for sale	35	47,170	12,378
Trade and other<br>receivables	17	47,063	41,395
Investment in<br>financial assets	16	19,585	48,589
Financial assets at<br>fair value through profit or<br>loss	16	3,636	17,942
Derivative<br>financial instruments	16	346	174
Cash and cash<br>equivalents	16	108,652	96,140
Total<br>current assets		248,707	235,502
TOTAL<br>ASSETS		739,524	781,609
SHAREHOLDERS’<br>EQUITY
Shareholders'<br>equity (according to corresponding statement)		27,081	25,878
Non-controlling<br>interest		104,420	111,058
TOTAL<br>SHAREHOLDERS' EQUITY		131,501	136,936
LIABILITIES
Non-current<br>liabilities
Borrowings	22	344,946	427,836
Deferred income tax<br>liabilities	23	53,256	61,571
Trade and other<br>payables	20	3,215	3,046
Provisions	21	3,328	12,357
Employee<br>benefits		481	203
Lease<br>liabilities		16,357	-
Derivative<br>financial instruments	16	80	1,583
Payroll and social<br>security liabilities		266	212
Total<br>non-current liabilities		421,929	506,808
Current<br>liabilities
Trade and other<br>payables	20	38,565	34,772
Borrowings	22	105,921	86,538
Provisions	21	2,630	2,666
Group of liabilities held for sale	35	25,459	8,759
Payroll and social<br>security liabilities		5,044	4,093
Income tax and MPIT<br>liabilities		887	752
Lease<br>liabilities		6,095	-
Derivative<br>financial instruments	16	1,493	285
Total<br>Current liabilities		186,094	137,865
TOTAL<br>LIABILITIES		608,023	644,673
TOTAL<br>SHAREHOLDERS' EQUITY AND LIABILITIES		739,524	781,609

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-4

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Income and Other Comprehensive Income

for the fiscal years ended June 30, 2020, 2019 and 2018

(All amounts in millions, except otherwise indicated)

	Note	06.30.20	06.30.19	06.30.18
Revenues	25	42,653	40,052	35,754
Costs	26	(29,792)	(24,714)	(21,685)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest		3,043	2,482	1,802
Changes<br>in the net realizable value of agricultural products after<br>harvest		707	(46)	572
Gross profit		16,611	17,774	16,443
Net<br>gain / (loss) from fair value adjustment of investment<br>properties		36,582	(41,596)	20,423
Gain<br>from disposal of farmlands		902	715	1,783
General<br>and administrative expenses	27	(3,870)	(4,553)	(4,003)
Selling<br>expenses	27	(4,096)	(2,998)	(3,067)
Impairment<br>of associates		-	-	-
Other<br>operating results, net	28	1,769	386	1,639
Management<br>fees		(227)	-	(1,568)
Profit / (Loss) from operations		47,671	(30,272)	31,650
Share<br>of profit / (loss) of associates and joint ventures	8	7,928	(7,727)	(3,261)
Profit / (Loss) from operations before financing and<br>taxation		55,599	(37,999)	28,389
Finance<br>income	29	332	234	988
Finance<br>cost	29	(11,170)	(7,652)	(6,151)
Other<br>financial results	29	(11,322)	4,339	(19,329)
Inflation<br>adjustment	29	189	(492)	(346)
Financial results, net	29	(21,971)	(3,571)	(24,838)
Profit / (Loss) before income tax		33,628	(41,570)	3,551
Income<br>tax	23	(8,548)	(571)	10,195
Profit / (Loss) for the year from continuing<br>operations		25,080	(42,141)	13,746
Profit<br>from discontinued operations after income tax	36	(3,546)	(1,704)	15,773
Profit / (Loss) for the year		21,534	(43,845)	29,519
Other<br>comprehensive income / (loss):
Items that may be reclassified subsequently to profit or<br>loss:
Currency<br>translation adjustment		(19,037)	402	3,294
Revaluation<br>surplus		228	1,196	340
Change<br>in the fair value of hedging instruments net of income<br>taxes		-	20	(43)
Items that may not be reclassified subsequently to profit or<br>loss:
Actuarial<br>loss from defined benefit plans		-	-	-
Other comprehensive income / (loss) for the year from continuing<br>operations		(18,809)	1,618	3,591
Other<br>comprehensive income for the year from discontinued<br>operations		31,100	(2,486)	14,379
Total other comprehensive income / (loss) for the year		12,291	(868)	17,970
Total comprehensive income /<br>(loss) for the<br>year		33,825	(44,713)	47,489
Total<br>comprehensive income / (loss) from continuing<br>operations		8,101	(42,136)	(2,571)
Total<br>comprehensive income from discontinued operations		25,724	(2,577)	50,060
Total comprehensive income / (loss) for the<br>year		33,825	(44,713)	47,489
Profit / (Loss) for the year attributable to:
Equity<br>holders of the parent		4,230	(28,848)	6,573
Non-controlling<br>interest		17,304	(14,997)	22,946
Profit / (Loss) from continuing operations attributable<br>to:
Equity<br>holders of the parent		8,420	(26,092)	2,460
Non-controlling<br>interest		16,660	(16,049)	11,286
Total comprehensive income / (loss) attributable to:
Equity<br>holders of the parent		2,607	(29,151)	6,217
Non-controlling<br>interest		31,218	(15,562)	41,272
Profit / (Loss) per share attributable to equity holders of the<br>parent:
Basic		(8.469)	(58.990)	13.230
Diluted		(8.218)	(58.990)	12.730
Profit per share from continuing operations attributable to equity<br>holders of the parent:
Basic		(5.181)	(53.350)	4.950
Diluted		(5.181)	(53.350)	4.950

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-5

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2020, 2019 and 2018

(All amounts in millions, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital	Treasury shares	Inflation adjustment of share capital and treasury shares<br>(i)	Share premium	Additional paid-in capital from treasury shares	Legal reserve	Special<br>reserve Resolution CNV 609/12 (ii)	Other reserves (iii)	Retained earnings	Subtotal	Non-controlling interest	Total Shareholders' equity
Balance as of June 30, 2018	486	16	10,574	11,403	98	400	5,575	39,214	(41,888)	25,878	111,058	136,936
Adjustments<br>previous years (IFRS 9 and 15) (Note 2,2)	-	-	-	-	-	-	-	-	(876)	(876)	(1,455)	(2,331)
Restated balance as of June 30, 2018	486	16	10,574	11,403	98	400	5,575	39,214	(42,764)	25,002	109,603	134,605
Profit<br>for the year	-	-	-	-	-	-	-	-	4,230	4,230	17,304	21,534
Other<br>comprehensive (loss) / income for the year	-	-	-	-	-	-	-	(1,623)	-	(1,623)	13,914	12,291
Total comprehensive income for the year	-	-	-	-	-	-	-	(1,623)	4,230	2,607	31,218	33,825
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 29, 2018
- Treasury shares distribution	13	(13)	-	-	-	-	-	1,628	(1,628)	-	-	-
Reserve<br>for share-based payments	-	-	-	-	(1)	-	-	(3)	-	(4)	(8)	(12)
Loss<br>absorption	-	-	-	-	-	-	(4,747)	(37,676)	42,423	-	-	-
Irrevocable<br>contributions	-	-	-	-	-	-	-	-	(66)	(66)	227	161
Changes<br>in non-controlling interest	-	-	-	-	-	-	-	(458)	-	(458)	5,184	4,726
Reversal<br>by sale of investment properties	-	-	-	-	-	-	-	-	-	-	33	33
Incorporation<br>by business combination	-	-	-	-	-	-	-	-	-	-	8,012	8,012
Decrease<br>due to loss of control	-	-	-	-	-	-	-	-	-	-	(46,616)	(46,616)
Dividends<br>distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	(3,233)	(3,233)
Balance as of June 30, 2019	499	3	10,574	11,403	97	400	828	1,082	2,195	27,081	104,420	131,501

(i) Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of June 30, 2020 and 2019, respectively.

(ii) Related to CNV General Resolution N° 609/12. See Note 19.

(iii) Group’s other reserves for the year ended June 30, 2020 were as follows:

	Cost of treasury shares	Changes in non-controlling interest	Reserve for currency translation adjustment	Reserve shared-based compensation	Revaluation surplus	Special reserve	Reserve for the acquisition of securities issued by the<br>Company	Other comprehensive income from subsidiaries	Other reserves from subsidiaries	Total other reserves
Balance as of June 30, 2018	(1,791)	(2,988)	1,032	4,896	519	37,676	(233)	93	10	39,214
Other<br>comprehensive (loss) / income for the year	-	-	354	(1,685)	-	-	(292)	-	-	(1,623)
Total comprehensive income for the year	-	-	354	(1,685)	-	-	(292)	-	-	(1,623)
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 29, 2018
Treasury<br>shares distribution	1,628	-	-	-	-	-	-	-	-	1,628
Reserve<br>for share-based payments	2	-	-	-	(5)	-	-	-	-	(3)
Loss<br>absorption	-	-	-	-	-	(37,676)	-	-	-	(37,676)
Other<br>changes in equity	-	(100)	-	-	18	-	20	-	62	-
Changes<br>in non-controlling interest	-	(458)	-	-	-	-	-	-	-	(458)
Balance as of June 30, 2019	(161)	(3,546)	1,386	3,211	532	-	(505)	93	72	1,082

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-6

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2020, 2019 and 2018

(All amounts in millions, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital	Treasury shares	Inflation adjustment of share capital and treasury shares<br>(i)	Share premium	Additional paid-in capital from treasury shares	Legal reserve	Special<br>reserve Resolution CNV 609/12 (ii)	Other reserves (iii)	Retained earnings	Subtotal	Non-controlling interest	Total Shareholders' equity
Balance as of June 30, 2018	482	20	10,574	11,403	98	400	5,575	6,592	22,166	57,310	132,651	189,961
Adjustments<br>previous years (IFRS 9 and 15) (Note 2,2)	-	-	-	-	-	-	-	-	(219)	(219)	(143)	(362)
Restated balance as of June 30, 2018	482	20	10,574	11,403	98	400	5,575	6,592	21,947	57,091	132,508	189,599
Loss<br>for the year	-	-	-	-	-	-	-	-	(28,848)	(28,848)	(14,997)	(43,845)
Other<br>comprehensive loss for the year	-	-	-	-	-	-	-	(303)	-	(303)	(565)	(868)
Total comprehensive income for the year	-	-	-	-	-	-	-	(303)	(28,848)	(29,151)	(15,562)	(44,713)
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 29, 2018
- Results distribution	-	-	-	-	-	-	-	35,021	(35,021)	-	-	-
Purchase<br>own shares in portfolio	(17)	17	-	-	-	-	-	(1,322)	-	(1,322)	-	(1,322)
Distribution<br>of dividends in shares	21	(21)	-	-	-	-	-	-	-	-	(575)	(575)
Reserve<br>for share-based payments	-	-	-	-	-	-	-	17	-	17	84	101
Changes<br>in non-controlling interest	-	-	-	-	-	-	-	(757)	-	(757)	(834)	(1,591)
Reversal<br>by sale of investment properties	-	-	-	-	-	-	-	(34)	34	-	-	-
Dividends<br>distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	(4,571)	(4,571)
Irrevocable<br>contributions	-	-	-	-	-	-	-	-	-	-	8	8
Balance as of June 30, 2019	486	16	10,574	11,403	98	400	5,575	39,214	(41,888)	25,878	111,058	136,936

(i) Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of June 30, 2019 and 2018, respectively.

(ii) Related to CNV General Resolution N° 609/12. See Note 19.

(iii) Group’s other reserves for the year ended June 30, 2019 were as follows:

	Cost of treasury shares	Changes in non-controlling interest	Reserve for currency translation adjustment	Reserve shared-based compensation	Revaluation surplus	Special reserve	Reserve for the acquisition of securities issued by the<br>Company	Other comprehensive income from subsidiaries	Other reserves from subsidiaries	Total other reserves
Balance as of June 30, 2018	(2,063)	(2,231)	5,876	502	211	4,249	93	(55)	10	6,592
Other<br>comprehensive (loss) / income for the year	-	-	(980)	-	855	-	-	(178)	-	(303)
Total comprehensive income for the year	-	-	(980)	-	855	-	-	(178)	-	(303)
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 29, 2018
- Results distribution	-	-	-	-	-	35,021	-	-	-	35,021
Purchase<br>own shares in portfolio	(1,322)	-	-	-	-	-	-	-	-	(1,322)
Distribution<br>of dividends in shares	1,594	-	-	-	-	(1,594)	-	-	-	-
Reserve<br>for share-based payments	-	-	-	17	-	-	-	-	-	17
Changes<br>in non-controlling interest	-	(757)	-	-	-	-	-	-	-	(757)
Reversal<br>by sale of investment properties	-	-	-	-	(34)	-	-	-	-	(34)
Balance as of June 30, 2019	(1,791)	(2,988)	4,896	519	1,032	37,676	93	(233)	10	39,214

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-7

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2020, 2019 and 2018

(All amounts in millions, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital	Treasury shares	Inflation adjustment of share capital and treasury shares<br>(i)	Share premium	Additional paid-in capital from treasury shares	Legal reserve	Special<br>reserve Resolution CNV 609/12 (ii)	Other reserves (iii)	Retained earnings	Subtotal	Non-controlling interest	Total Shareholders' equity
Balance as of June 30, 2017	499	3	10,574	11,403	96	307	5,575	7,657	20,969	57,083	105,351	162,434
Profit<br>for the year	-	-	-	-	-	-	-	-	6,573	6,573	22,946	29,519
Other<br>comprehensive (loss) / income for the year	-	-	-	-	-	-	-	(356)	-	(356)	18,326	17,970
Total comprehensive income for the year	-	-	-	-	-	-	-	(356)	6,573	6,217	41,272	47,489
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 31, 2017
- Legal reserve	-	-	-	-	-	93	-	-	(93)	-	-	-
- Cash dividends	-	-	-	-	-	-	-	-	(1,147)	(1,147)	-	(1,147)
- Reserve for new developments	-	-	-	-	-	-	-	4,249	(4,249)	-	-	-
Purchase<br>own shares in portfolio	(17)	17	-	-	-	-	-	(1,915)	-	(1,915)	-	(1,915)
Changes<br>of interest in subsidiaries	-	-	-	-	-	-	-	-	-	-	18	18
Share<br>of changes in subsidiaries' equity	-	-	-	-	-	-	-	(3,050)	113	(2,937)	-	(2,937)
Reserve<br>for share-based payments	-	-	-	-	-	-	-	7	-	7	122	129
Equity<br>incentive plan granted	-	-	-	-	2	-	-	-	-	2	-	2
Loss<br>of control in subsidiary	-	-	-	-	-	-	-	-	-	-	(18,048)	(18,048)
Changes<br>in non-controlling interest	-	-	-	-	-	-	-	-	-	-	9,689	9,689
Dividends<br>distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	(5,782)	(5,782)
Capitalized<br>contributions	-	-	-	-	-	-	-	-	-	-	18	18
Issuance<br>of capital	-	-	-	-	-	-	-	-	-	-	8	8
Acquisition<br>of non-controlling interest	-	-	-	-	-	-	-	-	-	-	3	3
Balance as of June 30, 2018	482	20	10,574	11,403	98	400	5,575	6,592	22,166	57,310	132,651	189,961

(i) Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of June 30, 2018 and 2017, respectively.

(ii) Related to CNV General Resolution N° 609/12. See Note 19.

(iii) Group’s other reserves for the year ended June 30, 2018 were as follows:

	Cost of treasury shares	Changes in non-controlling interest	Reserve for currency translation adjustment	Reserve shared-based compensation	Revaluation surplus	Special reserve	Reserve for the acquisition of securities issued by the<br>Company	Other comprehensive income from subsidiaries	Other reserves from subsidiaries	Total other reserves
Balance as of June 30, 2017	(148)	819	6,295	495	-	-	93	10	93	7,657
Other<br>comprehensive (loss) / income for the year	-	-	(419)	-	211	-	-	-	(148)	(356)
Total comprehensive income for the year	-	-	(419)	-	211	-	-	-	(148)	(356)
As resolved by Ordinary and Extraordinary Shareholders' Meeting<br>held on October 31, 2017	-	-	-	-	-	-	-	-	-	-
- Reserve for new developments	-	-	-	-	-	4,249	-	-	-	4,249
Purchase<br>own shares in portfolio	(1,915)	-	-	-	-	-	-	-	-	(1,915)
Share<br>of changes in subsidiaries' equity	-	(3,050)	-	-	-	-	-	-	-	(3,050)
Reserve<br>for share-based payments	-	-	-	7	-	-	-	-	-	7
Balance as of June 30, 2018	(2,063)	(2,231)	5,876	502	211	4,249	93	10	(55)	6,592

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-8

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Consolidated Statements of Cash Flows

for the fiscal years ended June 30, 2020, 2019 and 2018

(All amounts in millions, except otherwise indicated)

	Note	06.30.20	06.30.19	06.30.18
Operating activities:
Net<br>cash generated from operating activities before income tax<br>paid	17	12,019	4,704	(1,266)
Income<br>tax paid		(326)	(361)	(1,594)
Net cash generated from continuing operating<br>activities		11,693	4,343	(2,860)
Net cash generated from discontinued operating<br>activities		26,776	23,159	28,858
Net cash generated from operating activities		38,469	27,502	25,998
Investing activities:
Increase<br>of interest in associates and joint ventures		-	(1,586)	(1,223)
Acquisition<br>of subsidiaries, net of funds acquire		1,018	1,474	1,792
Decrease<br>in cash due to deconsolidation of subsidiaries		-	100	(371)
Capital<br>contributions to associates and joint ventures		(3,070)	(34)	-
Acquisition,<br>improvements and advance payments for the development of investment<br>properties		(3,960)	(4,707)	(3,834)
Proceeds<br>from sales of investment properties		420	522	443
Acquisitions<br>and improvements of property, plant and equipment		(1,545)	(2,181)	(2,205)
Advance<br>payments		(85)	(9)	(55)
Acquisition<br>of intangible assets		(78)	(226)	(180)
Proceeds<br>from sales of property, plant and equipment		12	17	41
Net<br>decrease / (increase) of restricted assets, net		(225)	7	101
Proceeds<br>from sales of interest held in associates and joint<br>ventures		-	6	(519)
Proceeds<br>from loans granted		-	223	147
Acquisition<br>of investment in financial assets		(13,820)	(42,733)	(48,864)
Proceeds<br>from disposal of investments in financial assets		20,051	46,152	41,587
Interest<br>collected from financial assets		(42)	-	-
Dividends		(13)	561	1,021
Proceeds<br>/ (Payments) from other assets acquisition		-	102	1
Loans<br>granted to related parties		(178)	(6)	(1,146)
Loans<br>granted		1,938	-	(39)
Advanced<br>proceeds from sales of farmlands		-	222	323
Farmlands<br>sale advance		-	-	225
Proceeds<br>from liquidation of associate		-	-	31
Cash<br>incorporated by business combination, net of cash paid		17	-	-
Net cash generated from / (used in) continuing investing<br>activities		(445)	(2,096)	(12,724)
Net<br>cash (used in) / generated from discontinued investing<br>activities		43,841	13,456	(21,244)
Net cash generated from / (used in) investing<br>activities		43,396	11,360	(33,968)
Financing activities:
Borrowings<br>and issuance of non-convertible notes		42,193	15,604	20,027
Payment<br>of borrowings and non-convertible notes		(33,687)	(10,285)	(8,383)
Obtaining<br>/ (Payment) of short term loans, net		2,958	2,420	1,788
Interest<br>paid		(8,777)	(6,846)	(2,171)
Repurchase<br>of own shares		-	(1,322)	(1,920)
Repurchase<br>of non-convertible notes		(2,804)	(2,638)	(1,431)
Capital<br>contributions from non-controlling interest in<br>subsidiaries		-	-	13
Acquisition<br>of non-controlling interest in subsidiaries		(648)	(1,057)	(2,678)
Capital<br>distribution to subsidiaries non-controlling interest		-	-	(95)
Proceeds<br>from sales of non-controlling interest in subsidiaries		-	-	7,258
Loans<br>received from associates and joint ventures, net		-	-	154
Issuance<br>of capital in subsidiaries		-	-	-
Dividends<br>paid		(320)	2,502	444
Proceeds<br>from derivative financial instruments, net		(279)	581	(5)
Payment<br>from derivative financial instruments		-	-	103
Charge<br>for issue of shares and other equity instrument in<br>subsidiaries		-	-	43
Payment<br>of seller financing		-	(5)	(243)
Net cash (used in) /generated from continuing financing<br>activities		(2,399)	(4,265)	9,685
Net<br>cash generated from / (used in) discontinued financing<br>activities		(75,785)	(23,440)	(14,001)
Net cash (used in) / generated from financing<br>activities		(78,184)	(27,705)	(4,316)
Net<br>(decrease) / increase in cash and cash equivalents from continuing<br>activities		8,849	(2,018)	(5,899)
Net<br>increase in cash and cash equivalents from discontinued<br>activities		(5,168)	13,175	(6,387)
Net (decrease) / increase in cash and cash equivalents		3,681	11,157	(12,286)
Cash<br>and cash equivalents at beginning of the year	17	96,140	92,517	78,601
Cash<br>and cash equivalents reclassified as held-for-sale		(484)	(260)	(922)
Foreign<br>exchange gain / (loss) and inflation adjustment on cash and changes<br>in fair value of cash equivalents		9,315	(7,274)	27,124
Cash and cash equivalents at the end of the year		108,652	96,140	92,517

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	José Daniel Abelovich<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

F-9

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to Consolidated Financial Statements

(Amounts in millions, except otherwise indicated)

The Group’s business and general information

Purpose of these consolidated financial statements.

These financial statements were prepared to comply with the provisions of the Securities and Exchange Commission (SEC), which require retrospective revision of audited financial statements that are incorporated by reference in a registration statement to reflect a subsequent change in accounting principle (or consistent with staff practice, discontinued operations and changes in segment presentation) if the registration statement also incorporates by reference post-event interim financial statements. The changes incorporated to these consolidated financial statements, as compared to those included in the Company’s Form 20-F for the year ended June 30, 2020 filed with the SEC on November 16, 2020, are the following:



All the amounts in Argentine Pesos included in these consolidated financial statements were restated to the current unit of measurement as of September 30, 2020, by applying the general price index.



Loss of control and deconsolidation of DIC and IDBD:

On September 25, 2020, the Group lost control over IDBD and DIC. These consolidated financial statements have been recast to reflect the deconsolidation of DIC and IDBD for all periods presented. See Note 36.



Update of the economic framework of the Group’s business until the date of issuance of these financial statements (see Note 37)



Update of subsequent events between June 30, 2020 and the date of issuance of these financial statements (see Note 38).

General Infomation

Cresud was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.

In 2002, Cresud acquired a 19.85% interest in IRSA, a real estate company related to certain shareholders of Cresud. In 2009, Cresud increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s direct principal subsidiary.

Cresud and its subsidiaries are collectively referred to hereinafter as the Group.

Main shareholders of the Company are jointly Inversiones Financieras del Sur S.A. and Agroinvestment S.A. Both entities are companies incorporated in Uruguay and belong to the same controlling group and ultimate beneficiary.

The Board of Directors has approved these Financial Statements for issuance on January 5, 2021.

As of June 30, 2020, the Group operates in two major lines of business: (i) agricultural business and (ii) urban properties and investments business, which is divided into two operations centers: (a) Operations Center in Argentina and (b) Operations Center in Israel. They are developed through several operating companies and the main ones are listed below (Note 7):

F-10

(i)

See Note 4 for more information about the change within the Operations Center in Israel.

Agricultural Business

Within the agricultural business, the Group, through Cresud, engaged in the operation of crop production, cattle feeding, raising, fattening and slaughtering, milk production, sugarcane production, brokerage activities and sale of supplies. The Group currently has agricultural operations and investments in Argentina, Brazil, Uruguay, Paraguay and Bolivia.

Cresud's shares are listed on the BYMA (BYMA: CRES) and in NASDAQ (NASDAQ: CRESY). The shares of our subsidiary Brasilagro are listed and traded on both the Novo Mercado del BOVESPA (SAO: AGRO3) and the NYSE (NYSE: LND).

Urban Properties and Investments Business

Operations Center in Argentina

The activities of the Operations Center in Argentina are mainly developed through IRSA and its principal subsidiary, IRSA CP. Through IRSA and IRSA CP, the Group owns, manages and develops 14 shopping malls across Argentina, a portfolio of offices and other rental properties in the Autonomous City of Buenos Aires, and it entered the United States of America (“USA”) real estate market in 2009, mainly through the acquisition of non-controlling interests in office buildings and hotels. Through IRSA or IRSA CP, the Group also develops residential properties for sale. The Group, through IRSA, is also involved in the operation of branded hotels. The Group uses the term “real estate” indistinctively in these Consolidated Financial Statements to denote investment, development and/or trading properties activities. IRSA CP's shares are listed and traded on both the BYMA (BYMA: IRCP) and the NASDAQ (NASDAQ: IRCP). IRSA's shares are listed on the BYMA (BYMA: IRSA) and the NYSE (NYSE: IRSA).

The activities of the Group’s “Others” segment is carried out mainly through BHSA, where IRSA holds, directly or indirectly, a 29.91% interest. BHSA is a commercial bank offering a wide variety of banking activities and related financial services to individuals, small and medium-sized companies and large corporations, including the provision of mortgaged loans. BHSA's shares are listed on the BYMA (BYMA: BHIP).

F-11

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Operations Center in Israel

The activities of the Operations Center in Israel were mainly developed through the subsidiaries, IDBD and DIC, whose activities correspond to one of the Israeli largest and most diversified conglomerates, which are involved, through its subsidiaries and other investments, in several markets and industries, including real estate, supermarkets, insurance, telecommunications, and others.; controlling or holding an equity interest in companies such as Clal (Insurance), Cellcom (Telecommunications), Shufersal (Supermarkets), PBC (Real Estate), among others. IDBD is listed in the TASE as a “Debentures Company” in accordance with Israeli law, since some series of bonds are traded in that Exchange. DIC shares are listed in the TASE.

IDBD and DIC have certain restrictions and financial agreements in relation to their financial debt, including their bonds and loans with banks and financial institutions. Regarding IDBD's financial position, its cash flow and its ability to meet its financial debt commitments, the following should be considered:

As of June 30, 2020, IDBD had a deficit in shareholders’ equity, ongoing negative cash flows from continuing operating activities and a low credit rating, which circumstance may cast significant doubt about IDBD´s ability to continue operating as a going concern. IDBD´s cash flow required to meet its liabilities, including short-term liabilities was based on the realization of assets for which the realization date was not under IDBD´s control. These assets included the current price of Clal’s shares and the impact thereof on swap transaction deposits and the fact that IDBD shall receive, among others, the proceeds from the sale of private investments which were directly owned by IDBD.

As of June 30, 2020, the aggregate principal amount of the (i) IDBD Series 9 Bonds was NIS 901 million (“Series 9”), (ii) IDBD Series 14 Bonds was NIS 889 million, collateralized by DIC shares owned directly or indirectly by IDBD representing 70% of the share capital of DIC (“Series 14”), and (iii) IDBD Series 15 Bonds was NIS 238 million, collateralized by shares of Clal representing 5% of the share capital of Clal (“Series 15”).

In July 2019 and in June 2020, each of debenture holders (Series 9 and Series 14) and debenture holders (Series 15), respectively, decided to appoint a representative and legal and economic advisor, inter alia, in order to maintain contact with IDBD and / or third parties and to examine proposals that would be presented to the bondholders in connection with the repayment of IDBD's obligations towards the bondholders and to evaluate IDBD’s financial position and the remedies which may be available to the debenture holders.

In June 2020, general meetings of the holders of IDBD's debentures were convened (all of the series, each series separately), where the resolution was not to convene a general meeting wich includes in the agenda the decision of making immediately repayable the debentures. The meetings of the debenture holders (Series 9 and Series 15), each decided to pass the said resolution; The meeting of the debenture holders (Series 14), decided not to pass the said resolution, and at a later stage instruct the trustee for debenture holders (Series 14) to postpone the date of the said meeting to September 17, 2020;

In July 2020, Dolphin Netherlands and the controlling interest therein, Mr. Eduardo Elsztain committed vis-à-vis the generality of the debenture holders in IDBD, that subject to defined terms and conditions, during a certain period of time, some transactions would not be executed and/or initiated and/or promoted, and that subject to the provisions of the law, the power of control in corporations that are controlled by the controlling interest in IDBD would not be operated in order to promote any of those actions, unless notification has been delivered in writing to the trustees for debenture holders (Series 9, 14 and 15), at least 14 business days in advance.

On August 31, 2019, IDBD 's Audit Committee and the Board of Directors approved the acceptance of an irrevocable commitment by Dolphin Netherlands B.V. (“Dolphin Netherlands”), the controlling interest in IDBD, to make capital injections into IDBD in an overall amount of NIS 210 million, in three equal annual payments on September 2 in each of the years 2019 to 2021, which would be made in consideration for shares in IDBD or as a subordinated loan on similar terms to the subordinated loans that had been provided by the controlling interest.

In August 2020, IDBD received a letter from Dolphin Netherlands stating, inter alia, that given the fact that some of IDBD's bondholders are expected to include in their agenda for the bondholders' meetings, a proposal to make the outstanding balances of their bonds immediately due and payable, in preparation for the additional inflow of NIS 70 million scheduled for September 2, 2020, Dolphin Netherlands would examine its undertaking towards IDBD, taking into account the questions that arise from IDBD’s bondholders conducts and intentions. To the said Dolphin Netherlands' letter was attached a letter from IRSA to Dolphin Netherlands, according to which, among other things, IRSA would consider the validity of its undertaking to Dolphin Netherlands to transfer to it (in accordance with Dolphin Netherlands’ request) the amounts required for Dolphin Netherlands to meet its commitment to carry out the capital injections into IDBD on September 2, 2020, as aforementioned.

F-12

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

IDBD responded to Dolphin Netherlands’ and IRSA’s letters, noting that, among other things, Dolphin Netherlands' commitment (dated August 29, 2019) towards IDBD is binding and irrevocable, and that there is no basis for not making the capital injections into IDBD, due to other events related to IDBD’s bondholders, which do not fall within the scope of the events listed in the wording of the commitment as expropriating the validity of Dolphin Netherlands' commitment. In addition, it was also mentioned in IDBD’s response letter, that failure to make the payments into IDBD is not acceptable and would leave IDBD with no other choice than to use all its power and rights according to the law to enforce Dolphin Netherlands' commitment as well as IRSA’s undertaking.

Following the above mentioned, on September 13, 2020, IDBD submitted a statement of claim against Dolphin Netherlands and against IRSA, in which it has sought to require them to pay it an amount of NIS 70 million (with the addition of linkage differentials and interest in accordance with the law). In tandem with the submission of the lawsuit, as aforesaid, IDBD submitted an urgent petition for placing temporary attachments (in the presence of one party) on Dolphin Netherlands and IRSA (which was not accepted by the Court in the presence of one party and which has been passed on for the respondents to respond to the petition).

On June 2, 2020, IDBD received a draft proposal from Dolphin IL for IDBD and for the trustees for IDBD’s debentures (Series 9, 14 and 15) for the strengthening of IDBD 's capital structure, by way of an arrangement between Dolphin, IDBD and the debenture holders, based on an economic contribution to IDBD on Dolphin IL's part, together with a full or partial (as the case may be) redemption of the generality of IDBD's debentures. On June 21, 2020, IDBD received an updated proposal in relation to the abovementioned proposal and on June 28, 2020, Dolphin IL approached each of the trustees for the debentures with a request to put said proposal, with slight amendments, on the agenda of meetings of the debenture holders.

On July 6, 2020, the Meeting of debenture holders (Series 9) decided to order the trustee for debenture holders (Series 9) not to accept Dolphin IL's offe.; On July 7, 2020, the Meeting of the debenture holders (Series 14) decided to negotiate for a fixed period of one month in connection with Dolphin IL's proposal, and on July 8, 2020, the Meeting of debenture holders (Series 15) made a similar decision.

On September 2, 2020 IDBD received an updated offer from Dolphin IL which was addressed to it and to IDBD’s debenture holders (Series 9, 14 and 15). On September 9, 2020, Dolphin IL updated the commercial terms of its proposal for debenture holders (Series 9), and on September 16, 2020, IDBD received binding offers to debenture holders (Series 14) and debenture holders (Series 15), for the purchase of DIC shares pledged in favor of debenture holders (Series 14) of IDBD, as part of an agreed realization process.

As no agreement has been reached, on September 17, 2020, the Series 9 trustee submitted to the District Court in Tel-Aviv-Jaffa (the "Court") a petition to grant an order for the opening of proceedings for IDBD pursuant to the Insolvency and Economic Rehabilitation Law, 5778 – 2018 and to instruct the appointment of a trustee for IDBD pursuant to Section 43 and to grant the trustee any and all authority over the decision making of IDBD (the “Petition”).

On September 21, 2020, the Series 14 bondholders approved the immediate fully payment of the remaining balances of such series.

On September 22, 2020, IDBD and Dolphin Netherlands submitted an initial response to the Petition, arguing that it is in the best interest of IDBD and its creditors to exhaust the negotiations among the controlling shareholder and its creditors during a short period with the aim to maximize the value of its assets, avoid costs and additional negative effects.

In addition, responses by the Series 14 trustee and the Series 15 trustee were filed requesting the enforcement of liens and the appointment of a receiver as well as an urgent hearing, which was scheduled for September 24, 2020.

On September 25, 2020, the Court resolved that IDBD is insolvent and therefore it resolved to grant all three orders requested and accordingly, issued an order for the initiation of proceedings and liquidation of IDBD, and has appointed a liquidator to IDBD and interim receivers over the pledged DIC and Clal Shares.

Under IFRS 10 “Consolidated Financial Statements” (“IFRS 10”), an investor controls an investee if and only if the investor has all the following: a) power over the investee; b) exposure, or rights, to variable returns from its involvement with the investee; and c) the ability to use its power over the investee to affect the amount of the investor’s returns. Based on the facts and circumstances outlined above, management believe that, as from September 25, 2020, IRSA lost control over IDBD and DIC (as this term is defined by IFRS 10). Accordingly, the Group’s investment in IDBD and DIC has been deconsolidated in its consolidated financial statements as of and for the three-month period ended September 30, 2020.

As further described in Note 1.A), these financial statements have been recast to reflect the loss of control over IDBD and DIC. Accordingly, activities from the Israel Operations Center have been presented in separate line items under “discontinued operations” in the consolidated statements of Income and Comprehensive Income and of Cash Flows for the years ended June 30, 2020, 2019 y 2018. Assets and liabilities from the Israel Operations Center have been presented on a consolidated basis in the Consolidated Statements of Financial Position as of June 30, 2020 and 2019, totaling net assets of Ps. 2,160. (amount attributable to the controlling shareholder) as of June 30, 2020, from which the currency translation adjustment reserve associated of $ 1.657 should be deducted.

The assets and liabilities consolidated in this financial statement are as follow:

F-13

Current assets: Ps.203,058

Non-current assets: Ps.275,451

Current liabilities: Ps.109,729

Non-current liabilities: Ps.322,050

Total equity: Ps.46,730

Equity Attributable to equity holders of the parent: Ps.2,160

Summary of significant accounting policies

2.1. Basis of preparation of the Consolidated Financial Statement

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB and interpretations issued by the IFRIC. All IFRS applicable as of the date of these Consolidated Financial Statements have been applied.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude on whether an economy is categorized as hyper-inflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that is approximate or exceeds 100%. Accumulated inflation in Argentina in the last three years is over 100%. It is for this reason that, in accordance with IAS 29, Argentina must be considered a country with high inflation economy starting July 1, 2018.

In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the measuring unit current at the end of the reporting period set forth in IAS 29 in their annual, interim and special financial statements closed on or after December 31, 2018. Thus, these financial statements have been reported in terms of the measuring unit current as of June 30, 2020 accordingly to IAS 29.

Pursuant to IAS 29, the financial statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the reporting date of the financial statements. All the amounts included in the statement of financial position which are not stated in terms of the measuring unit current as of the date of the financial statements should be restated applying the general price index. All items in the statement of income should be stated in terms of the measuring unit current as of the date of the financial statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the financial statements.

Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the FACPCE based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).

F-14

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The principal inflation adjustment procedures are the following:

Monetary assets and liabilities that are already recorded at the measuring unites of the balance sheet’s closing date are not restated because they are already stated in terms of the measuring unit current as of the date of the financial statements.

Non-monetary assets, and liabilities and equity component are recorded at restated cost as of the balance sheet date.

All items in the statement of income are restated applying the relevant conversion factors.

The effect of inflation in the Company’s net monetary position is included in the statement of income under Financial results, net, in the item “Inflation adjustment”.

Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.

Upon initially applying inflation adjustment, the equity accounts were restated as follows:

Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later.

The resulting amount was included in the “Comprehensive Inflation adjustment of share capital and treasury shares adjustment” account.

Other comprehensive income / (loss) was restated as from each accounting allocation.

The other reserves in the statement of income were restated from the initial application date, i.e., June 30, 2016.

In relation to the inflation index to be used and in accordance with the FACPCE Resolution No. 539/18, it will be determined based on the Wholesale Price Index (IPIM) until 2016, considering for the months of November and December 2015 the average variation of Consumer Price indices (CPI) of the Autonomous City of Buenos Aires, because during those two months there were no national IPIM measurements. Then, from January 2017, the National Consumer Price Index (National CPI) will be considered. The tables below show the evolution of these indices in the last two fiscal years and as of June 30, 2020 according to official statistics (INDEC) following the guidelines described in Resolution 539/18:

Price<br>variation	June<br>30, 2018	June<br>30, 2019	June<br>30, 2020	Cumulative<br>as of June 30,2020 (3 years)
Annual	29%	56%	43%	128%

As a consequence of the aforementioned, these financial statements as of June 30, 2020 were restated in accordance with IAS 29.

IDBD and DIC report their quarterly and annual results following the Israeli regulations, whose legal deadlines are after the deadlines in Argentina and since IDBD and DIC fiscal years end differently from IRSA, the results of operations from IDBD and DIC are consolidated with a lag of three months and adjusted for the effects of significant transactions taking place in such period. For these reasons, it is possible to obtain the quarterly results of IDBD and DIC in time so that they can be consolidated by IRSA and reported to the CNV in its consolidated financial statements within the legal deadlines set in Argentina. This way, the Group's consolidated comprehensive income for the year ended June 30, 2019 includes the results of IDBD and DIC for the 12-month period from April 1, 2019 to March 31, 2020, adjusted for the significant transactions that occurred between April 1, 2020 and June 30, 2020.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its Statement of Financial Position according to the operating cycle of each activity. Current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax liabilities) are presented separately from each other and from other assets and liabilities. Deferred tax assets and liabilities are in all cases presented as non-current while the rest is classified as current or non-current.

F-15

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Consolidated Financial Statements are presented in millions of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to ‘Peso amounts’ or ‘Ps.’, are millions of Argentine Pesos, references to ‘US$’ or ‘US Dollars’ are millions of US Dollars, references to ‘Rs.’ are millions of Brazilian Reals and references to "NIS" are millions of New Israeli Shekel. As of June 30, 2020 and 2019, the exchange rate between the Argentine Peso and the NIS was Ps. 20.34 and Ps. 11.93 per NIS respectively.

(d) Fiscal year-end

The fiscal year begins on July 1st and ends on June 30 of each year.

(e) Accounting criteria

See Notes 2.2 through 2.31 with the accounting policies of each item.

(f) Reporting cash flows

The Group reports operating activities cash flows using the indirect method. Interest paid is presented within financing activities. Interest received is presented within investing activities. The acquisitions and disposals of investment properties are disclosed within investing activities as this most appropriately reflects the Group’s business activities. Cash flows in respect to trading properties are disclosed within operating activities because these items are sold in the ordinary course of business.

(g) Use of estimates

The preparation of Financial Statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the year. Actual results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimations and significant judgments are described in Note 3.

2.2 New accounting standards and amendments

The following standards and amendments have been issued by the IASB. Below we outline the standards and amendments that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group

Standards<br>and amendments	Description	Date<br>of mandatory adoption for the Group in the year ended<br>on
IFRS 16<br>"Leases".	Lessees are<br>required to account for all leases under one single model in the<br>balance sheet that is similar to the one used to account for<br>financial leases under IAS 17, including two exceptions for the<br>recognition of leases; low-cost asset leases and short-term leases.<br>Accounting by the lessor has no significant changes.	06-30- 2020
Amendment to<br>IAS 28 “Investment in associates and joint<br>ventures”	Requires the<br>adoption of IFRS 9 regarding long-term investments that are<br>essentially part of the net investment of an entity in an associate<br>or joint venture.	06-30- 2020
Definition of<br>Material - Amendments to IAS 1 and IAS 8	The IASB has<br>made modifications to IAS 1 “Presentation of Financial<br>Statements” and IAS 8“Accounting policies, changes in<br>accounting estimates and errors” and which requires that the<br>assessment of materiality be consistent for the application of<br>IFRS.	06-30-2020
Defining a business<br>- Amendments to IFRS 3	The new business<br>definition requires that a business combination contribute<br>significantly to creating products or services.	06-30-2020
Amendments to IAS<br>19- Plan amendment, curtailment or settlement.	. Clarifies the<br>accounting for defined benefit plan amendments, curtailments or<br>settlements. The amendments require an entity to: (i) determine<br>current service cost and net interest for the remainder of the<br>period after a plan amendment, curtailment or settlement, using<br>updated assumptions at the time of the amendment; (ii) recognize<br>any reduction in a surplus immediately in gains or losses, as part<br>of past service cost or a gain or loss on settlement. In other<br>words, any surplus reduction must be recognized, even if that<br>surplus was not previously recognized because of the impact of the<br>asset ceiling; and (iii) separately recognize any change in the<br>asset ceiling through other comprehensive income.	06-30-2019

F-16

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The adoption of these standards and amendments have not had a material impact for the Group, except for the following:

●

IFRS 16: Leases

The standard establishes the criteria for recognition and valuation of leases for lessees and lessors. The changes incorporated mainly impact the tenant's accounting. IFRS 16 provides that the lessee recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of lease agreements according to IFRS 16. In accordance with the standard, a lease agreement is one that provides the right to control the use of an identified asset for a specific period. In order for a company to have control over the use of an identified asset: a) it must have the right to obtain substantially all the economic benefits of the identified asset and b) it must have the right to direct the use of the identified asset.

The standard allows excluding the short-term contracts (under 12 months) and those in which the underlying asset has low value, such option has been adopted by the Group. Likewise, the Group has opted to recognize as consideration for the right of use, the amount of Ps. 18,083 as lease liabilities. The commitments under operating leases reported in our consolidated financial statements as of June 30, 2019, amounted to Ps. 19,803 (such difference mainly corresponds to the effect of the discount from future payments and the excluded short-term contracts).

●

Modification to IAS 28 “Investment in associates and joint ventures”

In accordance with the amendment to IAS 28, an entity shall implement the provisions of IFRS 9 to Long-term Investments that are essentially part of the entity's net investment in the associate or in the joint venture according to the definitions of said standard. The provisions of IFRS 9 shall apply to such investments with respect to the participation in the losses of an associate or a joint venture, as well as with respect to the recognition of the impairment of an investment in an associate or joint venture. In addition, when applying IFRS 9 to such long-term investments, the entity will make it prior to the adjustments made to the carrying amount of the investment in accordance with IAS 28.

The Group opted for an accounting policy where the currency translation adjustments arising from these loans are recorded as part of other comprehensive income.

The effect on retained earnings as of July 1, 2019 arising from the initial adoption of IFRS 16 and IAS 28 is as follows:

	IFRS 16 impact	IAS 28 impact	Total
ASSETS
Non-current assets
Investment<br>properties	459	-	459
Right-of-use<br>assets	17,627	-	17,627
Investments<br>in associates and joint ventures	-	(2,130)	(2,130)
Trade<br>and other receivables	87	-	87
Total non-current assets	18,173	(2,130)	16,043
Income<br>tax and MPIT credit	18	-	18
Trade<br>and other receivables	3,360	-	3,360
Group<br>of assets held for sale	(182)	-	(182)
Total current assets	3,196	-	3,196
TOTAL ASSETS	21,370	(2,130)	19,240
SHAREHOLDERS’ EQUITY
Shareholders' equity attributable to equity holders of the<br>parent
Retained<br>earnings	(126)	(750)	(876)
Non-controlling<br>interest	(75)	(1,380)	(1,455)
TOTAL SHAREHOLDERS’ EQUITY	(201)	(2,130)	(2,331)
LIABILITIES
Non-current liabilities
Lease<br>liabilities	13,157	-	13,157
Total non-current liabilities	13,157	-	13,157
Current liabilities
Lease<br>liabilities	4,924	-	4,924
Trade<br>and other payables	(73)	-	(73)
Group<br>of liabilities held for sale	3,563	-	3,563
Total current liabilities	8,414	-	8,414
TOTAL LIABILITIES	21,571	-	21,571
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES	21,370	(2,130)	19,240

The Group applied the cumulative effect approach, therefore, accumulated impact was recognized in retained earnings as of July 1, 2018. Comparative figures were not restated.

F-17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Standards and amendments not yet adopted by the Group

Standards<br>and amendments	Description	Date<br>of mandatory adoption for the Group in the year ended<br>on
Covid-19- related lease concessions – Amendments to IFRS<br>16	As a result of the<br>COVID-19 pandemic, lessees have been granted lease concessions.<br>Such concessions may take a variety of forms, including forgiveness<br>or deferral of rental payments. In May 2020, the IASB amended IFRS<br>16 – Leases, whereby lessees are permitted to account for the<br>rent concessions as if they were not lease modifications. In<br>several cases, this will result in such concessions being accounted<br>for as variable rent payments within the term same period in which<br>they are granted.	06-30- 2021
Property, Plant and Equipment: Proceeds before Intended Use<br>– Amendments to IAS 16	Amendment to IAS 16<br>– Property, Plant and Equipment (PP&E) prohibits<br>deducting from the cost of an item of property, plant and equipment<br>any proceeds from selling items produced while the entity is<br>preparing the asset for its intended use. It also specifies that an<br>entity is “testing whether an item of PPE is functioning<br>properly” when it assesses its technical and physical<br>performance. The financial performance of the asset is not relevant<br>for such assessment.	06-30- 2023
Reference to the Conceptual Framework – Amendments to IFRS<br>3	Some minor<br>amendments were made to IFRS 3 Business combinations to update<br>references to the Conceptual Framework for financial information<br>and add an exception to the recognition principles for liabilities<br>and contingent liabilities within the scope of IAS 37, Provisions,<br>Contingent liabilities and contingent assets and interpretation 21<br>Levies. The amendments also confirm that contingent assets should<br>not be recognized on the acquisition date.	06-30-2023
Annual Improvements to IFRS 2018-2020	The following<br>improvements were issued in May 2020:<br><br><br>IFRS 9 Financial<br>instruments. The amendment clarifies which fees an entity includes<br>when it applies the ‘10 per cent’ test in assessing<br>whether to derecognize a financial liability.<br><br><br>IFRS 16 Leases. The<br>amendment to Illustrative Example 13 removes from the example the<br>illustration of the reimbursement of leasehold improvements by the<br>lessor in order to resolve any potential confusion regarding the<br>treatment of lease incentives that might arise.<br><br><br>IFRS 1 First-time<br>adoption of International Financial Reporting Standards: Entities<br>that have measured their assets and liabilities at the carrying<br>amounts in their parents´ books are also allowed to measure<br>cumulative translation differences using the amounts reported by<br>their parents. This amendment will also apply to associated and<br>joint ventures that have also taken the IFRS 1<br>exemption.<br><br><br>IAS 41: This<br>amendment removes the requirement for entities to exclude taxation<br>cash flows when measuring the fair value pursuant to IAS 41. This<br>amendment is intended to align with the requirement in the standard<br>to discount cash flows on a post-tax basis.	06-30-2023

The future adoption of these standards and amendments will not have a significant impact to the Group.

At the date of issuance of these consolidated financial statements, there are no other standards or modifications issued by the IASB that are not yet effective and are expected to have a significant effect on the Group.

2.3 Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity, but does have capacity to define its relevant activities because of de-facto control.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on a case-by-case base.

The excess of the sum of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the Statement of Income as “Bargain purchase gains”.

F-18

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group conducts its business through several operating and investment companies, the principal are listed below:

Agricultural Business

			% of ownership interest held by the Group
Name of the entity	Country	Principal activity	06.30.20	06.30.19	06.30.18
Cresud's direct equity interest in:
Brasilagro-CompanhIa<br>Brasileira de Propriedades Agrícolas (1) (2)	Brazil	Agricultural	33,55%	43,29%	43,29%
Sociedad<br>Anónima Carnes Pampeanas S.A. (2)	Argentina	Agro-industrial	100,00%	100,00%	100,00%
Futuros<br>y Opciones.Com S.A.	Argentina	Brokerage	50,10%	50,10%	50,10%
Helmir<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
IRSA<br>Inversiones y Representaciones Sociedad Anónima<br>(2)	Argentina	Real<br>estate	61,95%	62,35%	63,74%
Agropecuaria<br>Santa Cruz S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Brasilagro's direct equity interest in:
Araucária<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Cajueiro<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Ceibo<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Cremaq<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Engenho<br>de Maracajú Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Flamboyant<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Jaborandi<br>Agrícola Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Jaborandi<br>Propriedades Agrícolas S.A.	Brazil	Agricultural	99,99%	99,99%	99,99%
Mogno<br>Ltda.	Brazil	Agricultural	99,99%	99,99%	99,99%
Palmeiras<br>S.A.	Paraguay	Agricultural	99,99%	99,99%	99,99%
Agropecuaria<br>Morotí S.A.	Paraguay	Agricultural	99,99%	99,99%	99,99%
Agrifirma<br>S.A.	Brazil	Agricultural	99,99%	-	-
Futuros y Opciones.Com. S.A.'s direct equity interest<br>in:
Amauta<br>Agro S.A. (3)	Argentina	Brokerage	98,57%	98,57%	98,57%
FyO<br>Acopio S.A. (3)	Argentina	Warehousing<br>and brokerage	98,57%	98,57%	98,57%
FyO<br>Chile SPA	Chile	Brokerage	100,00%	100,00%	100,00%
Agropecuaria Santa Cruz S.A.'s direct equity interest<br>in:
Agropecuaria<br>Acres del Sud S.A. (2)	Bolivia	Agricultural	100,00%	100,00%	100,00%
Ombú<br>Agropecuaria S.A.	Bolivia	Agricultural	100,00%	100,00%	100,00%
Yatay<br>Agropecuaria S.A.	Bolivia	Agricultural	100,00%	100,00%	100,00%
Yuchán<br>Agropecuaria S.A. (2)	Bolivia	Agricultural	100,00%	100,00%	100,00%
Sedelor<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Codalis<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Alafox<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%

(1)

The Group exercises “de facto control” over Brasilagro as a result of (i) the percentage and concentration of voting rights of the Group, as well as the potential voting rights of the warrants held by the Group, and the absence of other shareholders with significant voting rights, (ii) the absence of a voting agreement among the other shareholders to vote together as a group, (iii) the record of attendance to Shareholders’ Meetings and the record of votes casted by the other shareholders; and (iv) the effective control exercised by the Group to direct Brasilagro’s relevant activities through its seat in the Board of Directors. See Note 7 for further information regarding to Brasilagro.

(2)

Includes interest indirectly held through Helmir.

(3)

Includes interest directly held through Cresud.

Urban Properties and Investments Business

			% of ownership interest held by the Group
Name of the entity	Country	Principal activity	06.30.20	06.30.19	06.30.18
IRSA's direct equity interest:
IRSA<br>CP (1)	Argentina	Real<br>estate	80,65%	83,80%	86,34%
E-Commerce<br>Latina S.A.	Argentina	Investment	100,00%	100,00%	100,00%
Efanur<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Hoteles<br>Argentinos S.A.U.	Argentina	Hotel	100,00%	100,00%	80,00%
Inversora<br>Bolívar S.A.	Argentina	Investment	100,00%	100,00%	100,00%
Llao<br>Llao Resorts S.A. (2)	Argentina	Hotel	50,00%	50,00%	50,00%
Nuevas<br>Fronteras S.A.	Argentina	Hotel	76,34%	76,34%	76,34%
Palermo<br>Invest S.A.	Argentina	Investment	100,00%	100,00%	100,00%
Ritelco<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Tyrus<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
UT<br>IRSA y Galerías Pacífico S.A. (2)	Argentina	Investment	50,00%	50,00%	50,00%
IRSA CP's direct equity interest in:
Arcos<br>del Gourmet S.A.	Argentina	Real<br>estate	90,00%	90,00%	90,00%
Emprendimiento<br>Recoleta S.A.	Argentina	Real<br>estate	53,68%	53,68%	53,68%
Fibesa<br>S.A. (3)	Argentina	Real<br>estate	100,00%	100,00%	100,00%
Panamerican<br>Mall S.A.	Argentina	Real<br>estate	80,00%	80,00%	80,00%
Shopping<br>Neuquén S.A.	Argentina	Real<br>estate	99,95%	99,95%	99,92%
Torodur<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
EHSA	Argentina	Investment	70,00%	70,00%	70,00%
Centro<br>de Entretenimiento La Plata	Argentina	Real<br>estate	100,00%	100,00%	100,00%
Pareto<br>S.A.	Argentina	Design<br>and software development	69,69%	69,69%	-
La<br>Malteria	Argentina	Real<br>estate	-	100,00%	-
Tyrus S.A.'s direct equity interest in:
DFL<br>and DN BV	Bermudas	Investment	97,04%	96,46%	91,57%
IRSA<br>International LLC	United<br>States	Investment	100,00%	100,00%	100,00%
Jiwin<br>S.A.	Uruguay	Investment	100,00%	100,00%	100,00%
Liveck<br>S.A. (7)	Uruguay	Investment	100,00%	100,00%	100,00%
Real<br>Estate Investment Group V LP (REIG V)	Bermudas	Investment	-	100,00%	100,00%
Real<br>Estate Strategies LLC	United<br>States	Investment	100,00%	100,00%	100,00%

F-19

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

			% of ownership interest held by the Group
Name of the entity	Country	Principal activity	06.30.20	06.30.19	06.30.18
Efanur S.A.'s direct equity interest in:
Real<br>Estate Investment Group VII LP (REIG VII)	Bermudas	Investment	100,00%	100,00%	100,00%
DFL's direct equity interest in:
IDB<br>Development Corporation Ltd.	Israel	Investment	100,00%	100,00%	100,00%
Dolphin<br>IL Investment Ltd.	Israel	Investment	100,00%	100,00%	100,00%
DIL's direct equity interest in:
Discount<br>Investment Corporation Ltd. (4)	Israel	Investment	83,72%	83,77%	76,57%
IDBD's direct equity interest in:
IDB<br>Tourism (2009) Ltd.	Israel	Tourism<br>services	100,00%	100,00%	100,00%
IDB<br>Group Investment Inc	Israel	Investment	100,00%	100,00%	100,00%
DIC's direct equity interest in:
Property<br>& Building Corporation Ltd.	Israel	Real<br>estate	72,40%	68,80%	64,40%
Cellcom<br>Israel Ltd. (5)	Israel	Telecommunications	46,20%	-	-
Elron<br>Electronic Industries Ltd.	Israel	Investment	61,06%	44,10%	43,14%
Bartan<br>Holdings and Investments Ltd.	Israel	Investment	55,68%	61,06%	50,30%
Epsilon<br>Investment House Ltd.	Israel	Investment	68,75%	55,68%	55,68%
Mehadrin<br>Ltd. (8)	Israel	Agricultural	43,75%	68,75%	68,75%
PBC's direct equity interest in:
Gav-Yam<br>Bayside Land Corporation Ltd. (6)	Israel	Real<br>estate	-	51,70%	51,70%
Ispro<br>The Israeli Properties Rental Corporation Ltd.	Israel	Real<br>estate	100,00%	100,00%	100,00%
Matam<br>- Scientific Industries Center Haifa Ltd.	Israel	Real<br>estate	50,10%	50,10%	50,10%
Hadarim<br>Properties Ltd.	Israel	Real<br>estate	100,00%	100,00%	100,00%
Property<br>& Building (Commercial Centers) Ltd.	Israel	Real<br>estate	100,00%	100,00%	100,00%
PBC<br>USA Investments Inc	United<br>States	Real<br>estate	100,00%	100,00%	100,00%

(1)

Includes interest held through E-Commerce Latina S.A. and Tyrus S.A.

(2)

The Group has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers it majority of votes in the decision making process.

(3)

Includes interest held through Ritelco S.A. and Torodur S.A.

(4)

Includes Tyrus' equity interest.

(5)

DIC considers it exercises effective control over Cellcom because DIC is the group with the higher percentage of votes (47.2%) vis-à-vis other shareholders, also taking into account the historic voting performance in the Shareholders’ Meetings, as well as the evaluation of the holdings of the remaining shareholders, which are highly atomized.

(6)

Control was lost in September 30, 2018 (see Note 4.(k)).

(7)

Includes Tyrus’ and IRSA S.A.’s equity interests.

(8)

DIC considers that it exercises control because DIC is the group with the higher percentage of votes (43.75%) vis-à-vis other shareholders that are highly atomized.

Except for the aforementioned items, the percentage of votes does not differ from the stake.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – i.e., as transactions with the owners in their capacity as owners. The recorded value corresponds to the difference between the fair value of the consideration paid and/or received and the relevant share acquired and/or transferred of the carrying value of the net assets of the subsidiary.

When the Group ceases to have control over a subsidiary, any retained interest in the entity is re-measured at its fair value at the date when control is lost, with changes in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, usually representing an interest between 20% and at least 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, except as otherwise indicated as explained below. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

As of each year-end or upon the existence of evidence of impairment, a determination is made, as to whether there is any objective indication of impairment in the value of the investments in associates. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the Associates and its carrying value and recognizes the amount adjacent to "Share of profit / (loss) of associates and joint ventures " in the Statement of Income and Other Comprehensive Income.

Profit and losses resulting from transactions between the Group and the associate are recognized in the Group's financial statements only to the extent of the interests in the associates of the unrelated investor. Unrealized losses are eliminated unless the transaction reflects signs of impairment of the value of the asset transferred. The accounting policies of associates are modified to ensure uniformity within Group policies.

F-20

Note 8 includes summary financial information and other information of the Group's associates.

The Group takes into account quantitative and qualitative aspects to determine which investments in associates are considered significant.

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized in the Consolidated Statements of Financial Position at cost and adjusted thereafter to recognize the Group’s share of post-acquisition profits or losses and other comprehensive income in the Statements of Income and Other Comprehensive Income.

The Group determines at each reporting date whether there is any objective evidence that the investment in joint ventures is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes such difference in "Share of profit / (loss) of associates and joint ventures" in the Statements of Income.

2.4 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (“CODM”), responsible for allocating resources and assessing performance. The operating segments are described in Note 6.

2.5 Foreign currency translation

(a) Functional and presentation currency

Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities nominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the Statement of Income within other financial income, as appropriate, unless they have been capitalized.

F-21

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i)

assets, liabilities and goodwill for each Statement of Financial Position presented are translated at the closing rate at the date of that financial position;

(ii)

income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and

(iii)

all resulting exchange differences are recognized in the Statement of Comprehensive Income.

The accounting policy of the Group consists in accounting for the translation difference of its subsidiaries by the “step-by-step” method according to IAS 21.

2.6 Investment properties

Investment properties are those properties owned either by the Group that are held to earn long-term rental income or for capital appreciation, or both and that are not occupied by the Group for its own operations. Investment property also includes property that is being constructed or developed for future use as investment property. The Group also classifies as investment properties land whose future use has not been determined yet. The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and undeveloped land.

Where a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment properties under IAS 40 “Investment Properties”.

Investment properties are measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in condition to start operating.

Direct expenses related to lease contract negotiation (such as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. Capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only where activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. On the other hand, properties under construction for which the fair value cannot be determined reliably, but for which the Group expects it to be determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

F-22

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of owner occupied farmland, office buildings and land reserves is based on active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections.

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations.

Fair value of office building in the Operations Center in Israel is based on discounted cash flow projections.

As required by CNV 576/10 Resolution, valuations are performed as of the financial position date by accredited externals appraisers who have recognized professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the Consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditures are capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the Statement of Income under the line item “Net gain or (loss) from fair value adjustment of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The value of the transfer is the one that the property had at the time of the transfer and subsequently is valued in accordance with the accounting policy related to the item.

The Group may sell its investment property when it considers that such property no longer forms part of the lease business. The carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the Statement of Income and other comprehensive income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposals. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are accounted for when title to property passes to the buyer and the buyer intends to make the respective payment. In the case of conditional agreements, disposal are accounted for when the conditions he agreements is subject to has been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value. The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "Other operating results, net" in the Statement of Income at the time they are incurred.

2.7 Property, plant and equipment

This category primarily comprises, buildings or portions of a building used for administrative purposes, machines, computers, and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

The Group has also several hotel properties. Based on the respective contractual arrangements with hotel managers and / or given their direct operators nature, the Group considers it retains significant exposure to the variations in the cash flows of the hotel operations, and accordingly, hotels are treated as owner-occupied properties and classified under "Property, plant and equipment".

F-23

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

All property, plant and equipment (“PPE”) is stated at acquisition cost less accumulated depreciation and impairment, if any. The acquisition cost includes expenditures, which are directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and the property is in conditions to start operating.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized. The carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged as incurred in the Statement of Income. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

The remaining useful life as of June 30, 2020 is as follows:

Buildings and facilities	Between 5 and 50 years
Machinery and equipment	Between 3 and 24 years
Communication networks	Between 4 and 20 years
Others	Between 3 and 25 years

As of each fiscal year-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each fiscal year-end, the residual useful life of assets is estimated and adjusted, if necessary. The book amount of an asset is reduced to its recoverable value if the book value is greater than its estimated recoverable value.

Gains from the sale of these assets are recognized when the significant risks and rewards have transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied.

Gains and losses on disposals are determined by comparing the proceeds, with the carrying amount. Gains and losses from the disposal of farmlands are disclosed within “Gains from disposal of farmlands” in the Statements of Income. All other gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the Statement of Comprehensive Income.

When assets of property, plant and equipment are transferred to investment property, the difference between the value at cost transferred and the fair value of the investment property is allocated to a reserve within equity.

Group's sugarcane fields are recognized as bearer plants under the definition included in IAS 41. For this reason, they are accounted as property, plant and equipment and are valued at amortized cost.

2.8 Leases

Leases are recorded pursuant to IFRS 16. The Group recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of lease agreements according to IFRS 16. For the prior periods’ leases were classified at their inception as either operating or finance leases based on the economic substance of the agreement.

A Group company is the lessor

Properties leased out to tenants under operating leases are included in “Investment properties” in the Statement of Financial Position. See Note 2.25 for the recognition of rental income.

A Group company is the lessee

The Group has entered into some operating lease agreements, mainly related to agribusiness activities. By virtue of these contracts, the Group leases land open for agricultural exploitation during one or more crop season. The lease price is generally set at a fixed amount in dollars or at a certain number of quintals of soybeans (or equivalent measurement unit) during the entire lease term. Lease payments can be made in installments or in advance at the beginning of the lease. The lease costs are recognized in the Statements of Income in relation to the degree of ripeness of the harvest since the Group considers that this systematic base is more representative of the time pattern of the leases’ benefits.

Additionally, the Group maintains other operating leases not related to agricultural activity, mainly associated with the leasing of offices. Payments, including prepayments, made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Income on a straight-line basis over the period of the lease.

F-24

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group acquires certain specific assets (especially machinery, computer equipment and real property exploitation concessions) under leases pursuant to IFRS 16. Assets so acquired are recorded as an asset at the present value of the minimum future lease payments. Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Leases falling within the IFRS 16 exemption, where the Group acts as lessee are charged to results at the time they accrue. They mainly include contracts for less than one year and/or for non-material items.

2.9 Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

Goodwill is not amortized but tested for impairment at each fiscal year-end, or more frequently if there is an indication of impairment.

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units (“CGU”). In order to determine whether any impairment loss should be recognized, the book value of CGU or CGU groups is compared against its recoverable value. Net book value of CGU and CGU groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are not reversed in a subsequent period.

The recoverable amount of a CGU is the higher of the fair value less costs-to-sell and the value-in-use. The fair value is the amount at which a CGU may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from CGU or CGU groups.

Goodwill is assigned to the Group's cash generating units on the basis of operating segments. The recoverable amount of a cash-generating unit is determined based on fair value calculations. These calculations use the price of the CGU assets, they are compared with the book values, plus the goodwill assigned to each cash-generating unit.

No material impairment was recorded as a result of the analysis performed (Note 12).

(b) Computer software

Acquired computer software licenses are capitalized based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives of three years. Costs associated with maintaining computer software programs are recognized as an expense as incurred.

This relates to the fair value of brands and client relationships arising at the time of the business combination with IDBD. They are subsequently valued at cost, less the accumulated amortization or impairment. Client relationships have an average twelve-year useful life, while one of the brands have an indefinite useful life and the other ten-year useful life.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where it normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and are not adjusted later, unless there is any sign of impairment.

F-25

At each year-end, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any of such signs exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. For intangible assets with indefinite useful lives, the Group annually reviews the existence of an impairment, or more frequently if signs of impairment are identified.

2.10 Trading properties

Trading properties comprises those properties intended either for sale or in the process of construction for subsequent sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

2.11 Inventories

Inventories include assets held for sale in the ordinary course of the Group’s business activities, assets in production or construction process for sale purposes, and materials, supplies or other assets held for consumption in the process of producing sales and/or services.

Supplies used in the Group's agricultural activities comprise fertilizers, agrochemicals, vaccines, seeds, feed for livestock and other items. Harvested agricultural produce comprise harvested crops, and raw meat.

For the Group’s operations in Argentina and Brazil, harvested crops are perpetually measured at net realizable value until the point of sale because there is an active market for such products, there is a negligible risk that the produce will not be sold and there is a well-established practice in the industry of measuring the inventories at net realizable value. Changes in net realizable value are recognized in the Statements of Income in the year in which they arise under the line item “Changes in net realizable value of agricultural produce after harvest”.

Net realizable value is the estimated selling price in the ordinary course of business less selling expenses. It is determined on an ongoing basis, taking into account the product type and aging, based on the accumulated prior experience with the useful life of the product. The Group periodically reviews the inventory and its aging and books an allowance for impairment, as necessary.

The cost of consumable supplies, materials and other assets is determined using the weighted average cost method, the cost of inventories of mobile phones, related accessories and spare parts is priced under the moving average method, and the cost of the remaining inventories is priced under the first in, first out (FIFO) method.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories are recorded at the cash cost and the difference between that and the actual amount paid is treated as finance cost.

Inventories are measured at the lower of cost or net realizable value.

2.12 Biological assets and agriculture produce at the point of harvest

Biological assets comprise unharvested crops (mainly corn, wheat, soybeans and sunflower), sugarcane, livestock (breeding and dairy cattle and cattle held for sale or meat production) and other less significant biological assets such as sheep and tree plantations.

The Group distinguishes between consumable and bearer biological assets. Consumable biological assets are those assets that may be harvested as agricultural produce or sold as biological assets, for example livestock intended for the production of meat and/or livestock held for sale. Bearer biological assets are those assets capable of producing more than one harvest, for example sugarcane, dairy cattle and breeding cattle. Consumable biological assets are generally classified as current while bearer biological assets are generally classified as non-current.

Expenses relating to the agricultural activity include items as planting, harvesting, irrigation, agrochemicals, fertilizers, veterinary services and others. The Group elect to capitalize all costs as part of the biological assets.

The line item “Cost of sales of biological assets and agricultural produce” within “Costs” in the Statements of Income represents the recognition as an expense of agricultural produce held in inventory, valued at either cost or net realizable value, as applicable, or biological assets valued at fair value less costs to sell.

F-26

Either the fair value of a biological asset in its present location and condition is determined based on the present value of expected net cash flows from the biological asset discounted at a current market-determined pre-tax rate or the current quoted market price in the most relevant market.

Biological assets are measured at fair value less costs to sell on initial recognition and at each Statement of Financial Position date, except where fair value cannot be reliably measured. Cost approximates fair value when little or no biological transformation has taken place since the costs were originally incurred or the impact of biological transformation on price is not expected to be material. Costs to sell include all incremental costs directly attributable to the sale of the biological assets, excluding finance costs and income taxes.

Additionally, the Group’s costs of planting the sugarcane are accounted for as property, plant and equipment and are valued at amortized cost. The growing agricultural product of sugarcane is classified as a biological asset and valued at fair value less costs to sell.

The gain or loss arising from initial recognition of a) agricultural produce and b) biological assets at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset is recognized in profit or loss in the year in which occur within the line item “Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest”.

2.13 Financial instruments

The Group classifies financial assets in the following categories: those to be measured subsequently at fair value, and those to be measured at amortized cost. This classification depends on whether the financial asset is an equity investment or a debt investment.

Debt investments

A debt investment is classified at amortized cost only if both of the following criteria are met: (i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt investment are considered in determining whether the cash derives solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria mentioned in the previous paragraph is not met, the debt instrument is classified at fair value through profit or loss. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the Statement of Income.

Equity investments

All equity investments, which are neither subsidiaries nor associate companies nor joint venture of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity investments through changes in profit or loss.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value though profit or loss are expensed in the Statement of Income.

In general, the Group uses the transaction price to ascertain the fair value of a financial instrument on initial recognition. In the other cases, the Group records a gain or loss on initial recognition only if the fair value of the financial instrument can be supported by other comparable transactions observable in the market for the same type of instrument or if based on a technical valuation that only inputs observable market data. Unrecognized gains or losses on initial recognition of a financial asset are recognized later on, only to the extent they arise from a change in factors (including time) that market participants would consider upon setting the price.

Gains/losses on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized, and during the amortization process under the effective interest method. The Group is required to reclassify all affected debt investments when and only when its business model for managing those assets changes.

F-27

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets measured at amortized cost is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

2.14 Derivative financial instruments and hedging activities and options

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide coverage. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used put and call options, foreign currency future and forward contracts and interest rate swaps, as appropriate.

The Group’s policy is to apply hedge accounting where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9.

Trading derivatives are classified as a current asset or liability on the Statement of Financial Position. Gains and losses on derivatives are classified according to their nature. Gains and losses on commodity derivatives are classified within the line item “Other operating income, net”. Gain and losses on all other derivatives are classified in the Statements of Income where the results of the items covered are recognized.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end as each reporting year.

2.15 Groups of assets and liabilities held for sale

Groups of assets and liabilities are classified as held for sale when the Group is expected to recover their value by means of a sale transaction (rather than through use) and where such sale is highly probable. Groups of assets and liabilities held for sale are valued at the lower of their net book value and fair value less selling costs.

2.16 Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

An allowance for doubtful accounts is recorded based on the expected loss of the receivables portfolio. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

In the case of larger non-homogeneous receivables, the impairment provision is calculated on an individual basis.

The Group collectively evaluates smaller-balance homogeneous receivables for impairment. For that purpose, they are grouped on the basis of similar risk characteristics, and account asset type, collateral type, past-due status and other relevant factors are taken into account.

The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of a separate account, and the amount of the loss is recognized in the Statements of Income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the Statements of Income.

F-28

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

2.17 Other assets

Other assets are recognized initially at cost and subsequently measured at the acquisition cost or the net realizable value, the lower.

2.18 Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

2.19 Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

2.20 Provisions

Provisions are recognized when: (i) the Group has a present (legal or constructive) obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The Group bases its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel´s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized in the Statements of Income.

2.21 Irrevocable right of use of the capacity of underwater communication lines

Transactions carried out to acquire an irrevocable right of use of the capacity of underwater communication lines are accounted for as service contracts. The amount paid for the rights of use of the communication lines is recognized as “Prepaid expenses” under trade and other receivables, and is amortized over a straight-line basis during the period set forth in the contract (including the option term), which is the estimated useful life of such capacity.

2.22 Employee benefits

(a) Defined contribution plans

The Group operates a defined contribution plan, which is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current year or prior periods. The contributions are recognized as employee benefit expense in the Statements of Income in the fiscal year they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or as a result of an offer made to encourage voluntary termination as a result of redundancy.

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

F-29

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(d) Defined benefit plans

The Group’s net obligation concerning defined benefit plans are calculated on an individual basis for each plan, estimating the future benefits employees have gained in exchange for their services in the current and prior periods. The benefit is disclosed at its present value, net of the fair value of the plan assets. Calculations are made on an annual basis by a qualified actuary.

(e) Share-based payments

The fair value of share-based payments is measured at the date of grant. The Group measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioral considerations.

The fair value of the share-based payment is expensed and charged to income under the straight-line method over the vesting period in which the right to the equity instrument becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of equity instruments expected to vest. Such estimate is revised if subsequent information available indicates that the number of equity instruments expected to vest differs from original estimates.

(f) Other long-term benefits

The net obligations of IDBD, DIC and its subsidiaries concerning employee long-term benefits, other than retirement plans, is the amount of the minimum future benefits employees have gained in exchange for their services in the current and prior periods. These benefits are discounted at their present values.

2.23 Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred income. Income tax is recognized in the statements of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax expense is calculated on the basis of the tax laws enacted or substantially enacted at the date of the Statements of Financial Position in the countries where the Company and its subsidiaries operate and generate taxable income. The Group periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Income tax is recognized, using the deferred tax liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the Statements of Financial Position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available, against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence, deferred tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Statements of Financial Position, dividends have been accrued as receivable a binding agreement to distribute past earnings in future has been entered into by the subsidiary or there are sale plans in the foreseeable future.

F-30

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Entities in Argentina are subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. The MPIT provision is calculated on an individual entity basis at the statutory asset tax rate of 1% and is based upon the taxable assets of each company as of the end of the year, as defined by Argentine law. Any excess of the MPIT over the income tax may be carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, recognizes the MPIT as a current or non-current receivable, as applicable, within “Trade and other receivables” in the Statements of Financial Position.

The minimum presumed income tax was repealed by Law N ° 27,260 in its article 76 for the periods that begin as of January 1, 2019.

Regarding the above mentioned, considering the Instruction No. 2 of the Federal Administration of Public Revenues (AFIP), it is not appropriate to record the provision of the above mention tax, in the event that accounting and tax losses occur.

2.24 Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term liquid investments with original maturities of three months or less. Bank overdrafts are not included.

2.25 Revenue recognition

The group identifies contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.

Additionally and in accordance with IFRS 15, the Group recognizes revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Group has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed.

Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Group uses the resourced method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.

The Group's revenue is recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.

Agricultural activities

Revenue from Group’s agricultural activities comes primarily from sales of agricultural produce and biological assets, from provision of services related to the activity and from leases of farmlands.

The Group also provides agricultural-related (including but not limited to watering and feedlot services) and brokerage services to third parties. Revenue from services are recognized when services are effective rendered.

The Group also leases land to third parties under operating lease agreements. Lease income is recognized on a straight-line basis over the period of the lease.

Urban properties and investments activities

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Rental and services

Shopping malls portfolio

Revenues derived from business activities developed in the Group’s shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to the Group’s lessees.

F-31

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group’s lease contracts also provide that common area maintenance charges and collective promotion funds of the Group’s shopping malls are borne by the corresponding lessees, generally on a proportionally basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

●

Rental and services

Offices and other rental properties

Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.

A substantial portion of the Group’s leases requires the tenant to reimburse the Group for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. The Group manages its own rental properties. The Group makes the original payment for these expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. The Group accrues reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

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Revenue from communication services and sale of communication equipment (presented within discontinued operations)

Revenue derived from the use of the Group’s communication networks, including mobile phones, Internet services, international calls, fixed line calls, interconnection rates and roaming service rates and television, are recognized when the service is provided, proportionally to the extent the transaction has been realized, and provided all other criteria have been met for revenue recognition.

Revenue from the sale of mobile phone cards is initially recognized as deferred revenue and then recognized as revenue as they are used or upon expiration, whichever takes place earlier.

A transaction involving the sale of equipment to a final user normally also involves a service sale transaction. In general, this type of sale is performed without a contractual obligation by the client to consume telephone services for a minimum amount over a predetermined period. As a result, the Group records the sale of equipment separately of the performance obligations and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services is recognized and accounted for as they are provided over time. When the client is bound to make a minimum consumption of services during a predefined period, the contract formalizes a transaction of several elements and, therefore, revenue from the sale of equipment is recorded at an amount that should not exceed its fair value, and is recognized upon delivery of the equipment to the client and provided the criteria for recognition are met. The Group ascertains the fair value of individual elements, based on the price at which it is normally sold, after taking into account the relevant discounts.

●

Revenue from agricultural products

Revenue from agricultural products is recognized when the product is delivered and at the time all other criterias for revenue recognition have been met.

F-32

●

Revenue from supermarkets

Revenue from the sale of goods in the ordinary course of business is recognized at the fair value of the consideration collected or receivable, net of returns and discounts. When the credit term is short and financing is that typical in the industry, consideration is not discounted. When the credit term is longer than the industry’s average, in accounting for the consideration, the Group discounts it to its net present value by using the client’s risk premium or the market rate. The difference between the fair value and the nominal amount is accounted for under financial income. If discounts are granted and their amount can be measured reliably, the discount is recognized as a reduction of revenue.

Revenues from supermarkets have been recognized in discontinued operations (see Note 4.(p)).

2.26 Cost of sales

The cost of sales, includes the acquisition costs and the operational and management costs for shopping malls held by the Group as part of its real estate investments. The Group’s cost of sales in relation to the supply of communication services (which is presented within discontinued operations in these financial statements) mainly includes the costs to purchase equipment, salaries and related expenses, service costs, royalties, ongoing license dues, interconnection and roaming expenses, cell tower lease costs, depreciation and amortization expenses and maintenance expenses directly related to the services provided.

The cost of sales of supermarkets (which is presented within discontinued operations in these financial statements), includes the acquisition costs for the products less discounts granted by suppliers, as well as all expenses associated with storing and handling inventories and is classified as discontinued operations.

2.27 Cost of borrowings and capitalization

The costs for general and specific loans that are directly attributable to the acquisition, construction or production of suitable assets for which a prolonged period is required to place them in the conditions required for their use or sale, are capitalized as part of the cost of those assets until the assets are substantially ready for use or sale. The general loan costs are capitalized according to the average debt rate of the Group. Foreign exchange differences for loans in foreign currency are capitalized if they are considered an adjustment to interest costs. The interest earned on the temporary investments of a specific loan for the acquisition of qualifying assets are deducted from the eligible costs to be capitalized. The rest of the costs from loans are recognized as expenses in the period in which they are incurred.

2.28 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any Group’s subsidiary purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

2.29 Comparability of information

The balances as of June 30, 2019 and 2018 that are disclosed for comparative purposes were restated in accordance with IAS 29, see Note 2.1. Certain items from prior fiscal years have been reclassified for consistency purposes. See Note 4. d. for the loss of control of Shufersal and Note 4.c for the loss of control of Gay-Yam.

During the years ended June 30, 2020, 2019 and 2018, the Argentine Peso suffered a decrease in its value compared to the US dollar and other currencies close to 66%, 45% and 73%, respectively, which has an impact on the comparability of the figures exposed in the financial statements, mainly due to the exposure to the exchange rate of our Income and costs of “offices” segment, and our assets and liabilities, nominated in foreign currency of the Argentine operations center, the aforementioned devaluation also had an effect on the total balances of the Israel operations center.

F-33

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Significant judgments, key assumptions and estimates

Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Business<br>combination - Allocation of acquisition prices	Assumptions<br>regarding timing, amount of future revenues and expenses, revenue<br>growth, expected rate of return, economic conditions, and discount<br>rate, among other.	Should<br>the assumptions made be inaccurate, the recognized combination may<br>not be correct.	Note 4<br>– Acquisitions and dispositions
Recoverable<br>amounts of cash-generating units (even those including goodwill),<br>associates and assets.	The<br>discount rate and the expected growth rate before taxes in<br>connection with cash-generating units.<br><br><br>The<br>discount rate and the expected growth rate after taxes in<br>connection with associates.<br><br><br>Cash<br>flows are determined based on past experiences with the asset or<br>with similar assets and in accordance with the Group’s best<br>factual assumption relative to the economic conditions expected to<br>prevail.<br><br><br>Business<br>continuity of cash-generating units.<br><br><br>Appraisals<br>made by external appraisers and valuators with relation to the<br>assets’ fair value, net of realization costs (including real<br>estate assets).	Should<br>any of the assumptions made be inaccurate; this could lead to<br>differences in the recoverable values of cash-generating<br>units.	Note 10<br>– Property, plant and equipment<br><br><br>Note 12<br>– Intangible assets
Control,<br>joint control or significant influence	Judgment<br>relative to the determination that the Group holds an interest in<br>the shares of investees (considering the existence and influence of<br>significant potential voting rights), its right to designate<br>members in the executive management of such companies (usually the<br>Board of directors) based on the investees’ bylaws; the<br>composition and the rights of other shareholders of such investees<br>and their capacity to establish operating and financial policies<br>for investees or to take part in the establishment<br>thereof.	Accounting<br>treatment of investments as subsidiaries (consolidation) or<br>associates (equity method)	Note<br>2.3 – Scope of consolidation
Estimated<br>useful life of intangible assets and property, plant and<br>equipment	Estimated<br>useful life of assets based on their conditions.	Recognition<br>of accelerated or decelerated depreciation by comparison against<br>final actual earnings (losses).	Note 10<br>– Property, plant and equipment<br><br><br>Note 12<br>– Intangible assets
Fair<br>value valuation of investment properties	Fair<br>value valuation made by external appraisers and valuators. See Note<br>10.	Incorrect<br>valuation of investment property values	Note 9<br>– Investment properties
Income<br>tax	The<br>Group estimates the income tax amount payable for transactions<br>where the Treasury’s Claim cannot be clearly<br>determined.<br><br><br>Additionally,<br>the Group evaluates the recoverability of assets due to deferred<br>taxes considering whether some or all of the assets will not be<br>recoverable.	Upon<br>the improper determination of the provision for income tax, the<br>Group will be bound to pay additional taxes, including fines and<br>compensatory and punitive interest.	Note 23<br>– Taxes
Allowance<br>for doubtful accounts	A<br>periodic review is conducted of receivables risks in the<br>Group’s clients’ portfolios. Bad debts based on the<br>expiration of account receivables and account receivables’<br>specific conditions.	Improper<br>recognition of charges / reimbursements of the allowance for bad<br>debt.	Note 16<br>– Trade and other receivables
Level 2<br>and 3 financial instruments	Main<br>assumptions used by the Group are:<br><br><br>● Discounted<br>projected income by interest rate<br><br><br>● Values determined<br>in accordance with the shares in equity funds on the basis of its<br>Financial Statements, based on fair value or investment<br>assessments.<br><br><br>● Comparable market<br>multiple (EV/GMV ratio).<br><br><br>● Underlying<br>asset price (Market price); share price volatility (historical) and<br>market interest rate (Libor rate curve).	Incorrect<br>recognition of a charge to income / (loss).	Note 16<br>– Financial instruments by category
Probability<br>estimate of contingent liabilities.	Whether<br>more economic resources may be spent in relation to litigation<br>against the Group, such estimate is based on legal advisors’<br>opinions.	Charge<br>/ reversal of provision in relation to a claim.	Note 21<br>– Provisions
Qualitative<br>considerations for determining whether or not the replacement of<br>the debt instrument involves significantly different<br>terms	The<br>entire set of characteristics of the exchanged debt instruments,<br>and the economic parameters represented therein:<br><br><br>Average<br>lifetime of the exchanged liabilities; Extent of effects of the<br>debt terms (linkage to index; foreign currency; variable interest)<br>on the cash flows from the instruments.	Classification<br>of a debt instrument in a manner whereby it will not reflect the<br>change in the debt terms, which will affect the method of<br>accounting recording.	Note 16<br>– Financial instruments by category<br><br><br>(Financial<br>liabilities)
Biological<br>assets	Main<br>assumptions used in valuation are yields, production costs, selling<br>expenses, forwards of sales prices, discount rates.	Wrong<br>recognition/valuation of biological assets. See sensitivities<br>modeled on these parameters in Note 13.	Note 13<br>– Biological assets

F-34

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Acquisitions and disposals

Agricultural business

(a)

Sale and purchase of Farmlands

Acquisition of Serra Grande Farmland

On May 18, 2020, the Group through its subsidiary BrasilAgro purchased a farm in Baixa Grande do Ribeiro, Piauí of 4,500 hectares (of which 2,900 can be developed for crop production). The amount of the acquisition was set at BRL 25 million (equivalent ARS 340 million), with an initial payment of BRL 8 million (equivalent ARS 109 million). The balance will be cancelled in three annual installments.

Sale of Alto Taquari Farmland

On May 29, 2020, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 105 hectares of Alto Taquari farm. The total amount of the sale was 115,478 soybean bags per arable hectare equivalent BRL 11 million (equivalent ARS 150 million). The buyer made the initial payment of BRL 1,8 million (equivalent ARS 24 million). The remaining balance will be paid in five annual installments. The Company has recognized gains of BRL 8 million (equivalent ARS 108 million) as result of this transaction.

On October 29, 2019, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 85 hectares (65 are production hectares) of Alto Taquari farm, a rural property located in the municipality of Alto Taquari, for a total amount of BRL 5.5 (equivalent ARS 101 million). The same date, the buyer made the initial payment of 14,300 soybean bags per arable hectare equivalent BRL 1 million (equivalent ARS 19 million). The remaining balance will be paid in four annual installments. The Company has recognized gains of BRL 4 million (equivalent ARS 73 million) as result of this transaction.

On November 21, 2018, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 103 hectares of Alto Taquari farm. The total amount of the sale was 1,100 soybean bags per arable hectare equivalent to R$ 7 (equivalent to Ps. 123). The buyer made the initial payment of 22,656 soybeans bags equivalent to equivalent to R$ 1.5 (equivalent to Ps. 18); and the remaining balance will be paid in eight biannual installments. The Company has recognized gains of R$ 5 (equivalent to Ps. 98) as result of this transaction.

Jatobá

On June 30, 2020, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 1,875 hectares (1,500 are production hectares) of Jatobá farm. The total amount of BRL 45 million (equivalent ARS 610 million), of which BRL 5 million (equivalent ARS 68 million) were already collected. The remaining balance will be paid in six annual installments. The Company has recognized gains of BRL 32.8 million (equivalent ARS 445 million) as result of this transaction.

On July 11, 2019, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 1,134 hectares (893 are production hectares) of Jatobá Farmland, a rural property located in the municipality of Jaborandi – BA. The total amount of sale was 302 soybean bags per arable hectare equivalent or BRL 23 million (equivalent ARS 424 million). The buyer, on September 2, 2019 made the initial payment of 38,000 soybean bags per arable hectare equivalent BRL 3 million (equivalent ARS 48 million). The remaining balance will be paid in six annual installments. Handover of possession and gains as result of this transaction has recognized on September 30, 2019, approximately, BRL 17 million (equivalent ARS 293 million).

On June 2019, the Group through its subsidiary BrasilAgro has entered into a purchase-sale agreement for an area of 3,124 hectares of Jatobá Farm. The total amount of the sale was 285 soybean bags per arable hectare or R$ 47 (equivalent to Ps. 835). The buyer already made an initial payment of R$ 5 (equivalent to Ps. 89) and on July 31, 2019 had pay R$ 5 (equivalent to Ps. 89) more; and the remaining balance, equivalent to 563,844 soybeans bags, will be paid in six equal annual installments. This sale was accounted on June 30, 2019, the gain of this transaction amount R$ 36.5 (equivalent to Ps. 617).

On June 13, 2018, the Group, through its subsidiary BrasilAgro, entered into a sales agreement for a total area of 9,784 hectares (7,485 are production hectares) of the Jatobá Establishment, a rural property located in the Municipality of Jaborandi . On July 31, 2018, the buyer made the payment of the first installment of 300,000 bags of soybeans, equivalent to an amount of R$ 21 (equivalent to Ps. 240) according to the conditions set in the agreement, obtaining the transfer of the possession and thus recognizing the disposal of the farmland , for the value of 285 bags per useful hectare, equivalent R$ 123 (equivalent to $ 1,409).. The remaining balance will be paid in six annual installments. The group did not recognize the result of this operation since almost all of the hectares sold corresponded to the Investment Property, and therefore were valued at fair value.

F-35

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

La Suiza

On June 29, 2018 Cresud signed a deed with a non-related third party for the sale of a fraction of 10,000 hectares of livestock activity of "La Suiza". The total amount of the transaction was set at US$ 10, of which US$ 3 have been already paid. The remaining balance of US$ 7, guaranteed by a mortgage on the property, will be collected in 10 installments of the same amount ending on June 2023, which will accrue an annual interest of 4.5% on the remaining balances. The gain of the transaction amounts approximately to Ps. 409.

La Esmeralda

On July 20, 2017, we executed a purchase-sale agreement for all of “La Esmeralda” establishment consisting of 9,352 hectares devoted to agricultural and cattle raising activities in the 9 de Julio district, Province of Santa Fe, Argentina. On June 25, 2018, the Company has made effective with the sign of the deed and delivery of the property, the sale of "La Esmeralda" farm. The amount of the transaction was set at US$ 19, of which US$ 7 have been already paid. The balance, guaranteed with a mortgage on the property, will be collected in 4 installments of the same amount ending in April 2022, which will accrue an annual interest of 4% on the remaining balances. The gain from the sale amounts approximately to Ps. 739.

Araucária

On May 3, 2018, the Company through its subsidiary Brasilagro, has entered into a purchase-sale agreement for the partial sale 956 hectares (660 arable hectares) of Araucaria Farm, located in Mineiros, Brazil, for an amount of 1,208 soybean bags per arable hectare or Rs. 66.2 (equal to Ps. 688.1) (Rs./ha. 93,356). The company has recognized gains of Ps. 635 as result of this transaction.

(b)

Merger of BrasilAgro-Agrifirma, Purchase and Sale of BrasilAgro Shares

Sale of BrasilAgro’s shares

On January 20, 2020, the Company sold in the market 3,400,000 shares of its subsidiary BrasilAgro representatives of 6.30% of the share capital for an amount of USD 15.6 million (equivalent ARS 1,036 million).

Agrifirma

On January 27, 2020, and in accordance with the terms and conditions established in the Merger Agreement signed on November 22, 2019, Agrifirma Holding was merged by BrasilAgro and extinguished for all legal purposes, becoming BrasilAgro the controlling shareholder of Agrifirma Agropecuária owning 100% of the total voting share capital. The capital of BrasilAgro increased by BRL 115,586,580 from BRL 584,224,000 to BRL 699,810,577, through the issuance of 5,215,385 new common, registered, book-entry shares with no par value, which were subscribed and paid-up by the shareholders of Agrifirma Holding, in such manner that the share capital of BrasilAgro increased to 62,104,201 shares.

A subscription warrant was also issued in favor of AB Holdings, a shareholder of Agrifirma Holding, which will entitle AB Holding (or its permitted successors and assigns) to subscribe up to 654,487 new ordinary shares, registered with no par value of BrasilAgro, subject to the terms and conditions established in the Merger Agreement.

The merger was made upon exchange of shares and the initial exchange rate was BRL 31.50 per share of BrasilAgro based on the net worth of BrasilAgro and Agrifirma Holding, as of June 30, 2019 (taken into consideration, especially, the properties owned by BrasilAgro and Agrifirma Holding) as per the appraisal made by Deloitte Touche Tohmatsu Consultores Ltda., adjusted in view of the negotiations between the parties, in accordance with the Merger Agreement.

F-36

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a breakdown of the fair value of the assets acquired, liabilities assumed and minority interest of the acquisition:

	03.31 20
Fair<br>value of identifiable assets and assumed liabilities:
Cash and cash<br>equivalents	16
Trade and other<br>receivables	387
Inventories	22
Biological<br>assets	74
Taxes and<br>contributions to recover	45
Group of assets<br>held for sale	362
Property, plant and<br>equipment	3,365
Trade and other<br>payables	(297)
Borrowings	(1,884)
Taxes to<br>pay	(9)
Payroll and social<br>security liabilities	(43)
Provisions	(1)
Deferred income tax<br>liabilities	(423)
Total<br>identifiable net assets	1,614
Non-controlling<br>interest	-
Godwill pending<br>allocation	63
Total consideration	1,677

Acquisition of Brasilagro’s shares

On March 30, 2020, Cresud purchased in the market 19,100 ordinary shares of its subsidiary BrasilAgro, representing 0.03% of its issued capital, for an amount of ARS 6 million.

As a result of the above-mentioned sale and purchase of shares and the merger with Agrifirma, the Company reduced its equity interest in BrasilAgro from 43.17% to 33.55% of its issued capital.

On June 29, 2020, Cresud made a contribution in kind to the 100% its controlled subsidiary Helmir S.A. It corresponds to 18,576,400 ADRs of BrasilAgro Comphania de Propriedades Agrícolas, in which the Company currently participates as a shareholder. The total value was USD 69.7 million (equivalent to ARS 5,226 million). At the end of the fiscal year, the Cresud percentage, the percentage of direct ownership is 2.25% and the percentage of indirect ownership through Helmir is 31.30%. In this way, Cresud will continue to control BrasilAgro indirectly through its control of Helmir S.A.

Althoght Cresud maintains less than 50% of the voting rights, in accordance with IFRS, control may exist without a majority of voting rights.

Cresud exercises “de facto control” over BrasilAgro as a result of:

the percentage and concentration of voting rights of the Group and the absence of other shareholders with significant voting rights,

ii)

the absence of a voting agreement among the other shareholders to vote together as a group,

iii)

the record of attendance to Shareholders’ Meetings and the record of votes casted by the other shareholders; and

iv)

the effective control exercised by the Group to direct Brasilagro’s relevant activities through its seat in the Board of Directors. See Note 7 for further information regarding to Brasilagro.

Therefore, Cresud will continue to consolidate BrasilAgro in its financial statements, after the business combination with Agrifirma.

Urban properties and investments business

Operations Center in Argentina

(b)

Distribution of a dividend in kind

On October 30, 2019, the General Ordinary Shareholders´ Meeting approved the distribution of a dividend in kind for an equivalent of Ps. 517 (representing Ps. 0.89 per share and equivalent of Ps. 634 at current currency as of June 30, 2020) payable in IRSA CP shares. For distribution, the quoted price of the IRSA CP share was taken as of October 29, 2019, which was Ps. 221 per share. The number of shares distributed amounts to 2,341,463. This transaction was accounted for in equity as a decrease in the net equity attributable to the parent company for an amount of Ps.543, . The stake of the Group in IRSA CP as at year-end is 80.65%.

F-37

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

On October 29, 2018 a General Ordinary and Extraordinary Shareholder’s meeting was held, whereby the distribution of a dividend in kind for an equivalent of Ps. 1,967 payable in shares of IRSA CP S.A. was resolved (representing Ps 2.63 per share and equivalent of Ps. 2,810 at current currency as of June 30, 2020). For the distribution, the value of IRSA CP share was taken as of October 26, 2018, which was Ps. 237 per share. The number of shares distributed amounted to 6,418,182. This transaction was accounted for as an equity transaction generating a decrease in the net equity attributable to the parent for Ps. 1,651, .

(c)

Sale of IRSA CP floors

On June 9, 2020, IRSA CP executed the assignment and transfer the right to sign a title deed, with delivery of possession, with respect to two medium-height floors in the tower under construction known as “200 Della Paolera”, located in the Catalinas district of the Autonomous City of Buenos Aires, covering a total area of approximately 2,430 sq. meters and 16 parking lots, located in the building.

The transaction price was set at approximately Ps. 1,254 million (USD 16.9 million), which has already been fully paid.

(d)

Condor Merger Agreement

On July 19, 2019, Condor executed a merger agreement. As per the contractual terms, each common share of Condor, with a par value of USD 0.01 per share, shall be cancelled prior to the merger and converted into the right to receive an amount in cash equivalent of USD 11.10 per common share. Additionally, pursuant to the terms and conditions of the merger agreement, each convertible Class E share shall be automatically cancelled and shall be converted into the right to receive an amount in cash equivalent of USD 10.00 per share.

The closing of the transaction, scheduled for March 23, 2020, has not yet taken place.

Condor is currently discussing with NexPoint Hospitality Trust the potential amendments to restructure the previously reported acquisition by merger of the company. No assurances may be given with respect to the outcome of such discussions. The Company will continue to review the options and reserves all its rights and remedies under the original merger agreement.

As of the date of presentation of these financial statements, the Group has 2,197,023 common shares and 325,752 Series E shares.

(e)

TGLT – Recapitalization Agreement

On August 8, 2019, we entered into certain arrangements with TGLT S.A. (“TGLT”) providing for collaboration in TGLT’s financial restructuring and recapitalization. We participated in the recapitalization agreement whereby TGLT committed: (i) to make a public offer to subscribe Class A preferred shares at a subscription price of USD 1.00 per TGLT share; (ii) to make a public offering of new Class B preferred shares which may be subscribed by (a) the exchange for ordinary shares of TGLT, at an exchange ratio of one Class B preferred share for every 6.94 ordinary shares of the Company and / or (b) the exchange for convertible notes, at an exchange ratio of a Class B preferred share for each USD 1.00 of convertible notes (including accumulated and unpaid interests under the existing convertible notes); and (iii) to grant an option to subscribe new Class C preferred shares in a public offer for cash to be carried out if: (a) the public offer of Class A and Class B preferred shares are consummated and (b) a minimum number of option holders have exercised that option at a subscription price per Class C preferred share of USD 1.00 (or its equivalent in pesos).

Likewise, IRSA CP signed as a holder of convertible notes of TGLT an agreement for deferment of payment of interest payable as of February 15, 2019 and August 15, 2019 until November 8, 2019 and an option agreement which may be subscribed Class C preferred shares.

Finally, supporting the recapitalization plan, IRSA CP signed with TGLT a subscription commitment for Class A preferred shares under Class A Public Offer to make a contribution in kind of shares of the company La Maltería SA, 100% of its ownership, for an amount up to USD 24 million and promised to exchange its convertible negotiable obligations into preferred Class B shares.

In turn, on November 22, 2019, TGLT held a bondholders of convertible negotiable obligations meeting in order to consider the modification of different clauses of the indenture in force at that date, and in line with what was agreed in the recapitalization agreement , IRSA CP voted in favor of the modifications.

F-38

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Under the agreements described above, the successful consummation of the offer by TGLT, and having reached the thresholds of consent of the holders of convertible notes of TGLT, on December 11, 2019, the Company concluded the envisaged process in the recapitalization agreement and related documents through the subscription of preferred Class A shares, integrating them in kind through the contribution of the shares of the company La Maltería SA, 100% of their ownership and, likewise, proceeded to the exchange of the convertible note - including deferred interest and accrued interest from August 15, 2019 to December 11, 2019 - in preferred Class B shares.

During the fiscal year 2020, preferred shares were converted into ordinary shares, which is why IRSA CP begin to have significant influence, considering TGLT S.A. as an associate company.

(f)

Sale of Tarshop

On February 14, 2019, IRSA CP sold its entire stake in Tarshop to BHSA. Following this acquisition, BHSA became the holder of 100% of the capital stock of said company.

The loss recognized for this transaction was approximately Ps. 191, ..

(g)

Purchase of equity interest in HASAU (owner of Libertador Hotel)

On February 28, 2019, the Group reported the acquisition, from an unrelated third party, of the twenty percent (20%) of HASAU for an amount of US$ 1.2. As a result of this acquisition, IRSA holds 100% of HASAU's share capital. This transaction was accounted for as an equity transaction generating a decrease in the net equity attributable to the controlling shareholders by Ps. 3 restated at the date of these financial statements.

Operations Center in Israel

(h)

Partial sale of Clal

Sales and Swap transactions

On May 1, 2017, August 30, 2017, January 1, 2018, May 3, 2018, August 30, 2018, and January 2, 2019, continuing with the instructions given by the Israel Capital Market, Insurance and Savings Commission, IDBD sold 5% of its stake in Clal on each occasion and 4.5% on the last one respectively, with a subsequent swap transaction with a 2- year expiration term for each transaction. The consideration for the transactions amounted to approximately NIS 944.5, which is partially restricted according to these agreements until the swap expires. These transactions did not meet the de-recognition criteria so the Group maintains the asset as “Financial assets available for sale” and accounted for the loans as a financial liability.

On December 16, 2019, Clal made a public capital increase for 12,066,000 shares at a price of NIS 53.87 per share. IDBD did not take part in such transaction.

Additionally, on that date, IDBD sold 200,000 Clal shares at a price of NIS 53.95 per share, representing 0.3% of the new capital stock.

On December 18, 2019, IDBD sold 617,017 Clal shares at an average price of NIS 53.77 per share, representing 0.9% of the issued capital stock.

Furthermore, a swap transaction carried out by IDBD involving 2,771,309 shares expired in December 2019. The closing price was NIS 52.25 per share.

A swap transaction involving 751,000 shares expired within the January-March 2020 period. The closing price was NIS 45.09 per share.

Other sales agreements

On May 2, 2019, continuing with the instructions given by the Israel Capital Market, Insurance and Savings Commission, IDBD entered into sales agreements with two unrelated parties (the “Buyers”), according to which each of the Buyers will acquire Clal shares representing 4.99% of its share capital at a cash price of NIS 47.7 per share (approximately Ps. 648 per share). In addition, they were granted an option to acquire additional Clal shares for approximately 3% of the issued capital, for a period of 120 days (subject to obtaining a holding permit) at a price of NIS 50 per share.

F-39

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additionally on the same day, IDBD also entered into an agreement with a third unrelated buyer (the "Additional Buyer"), according to which the Additional Buyer will receive an option from IDBD, valid for a period of 50 days, to acquire approximately 4.99% of Clal shares (and not less than 3%), at a price of NIS 47.7 per share (approximately Ps. 648 per share). Subject to the exercise of the option by the Additional Buyer, the price will be paid 10% in cash and the rest through a loan that will be provided to the Additional Buyer by IDBD and / or by a related entity and / or by a banking corporation and / or financial institution, under the agreed conditions.

The aforementioned agreements include, among others, a commitment by the Buyers and the Additional Buyer to not sell the shares acquired during an agreed period of 24 months. It is clarified that each of the Buyers and the Additional Buyer have declared and committed to IDBD that there are no agreements or understandings between them regarding the joint ownership of Clal shares that are subject to the aforementioned agreements.

The total amount of Clal shares that can be acquired by the three buyers mentioned above, to the extent that the three agreements are completed and the options are exercised, represents approximately 18% of Clal's share capital.

As of the date of these financial statements, all previously agreed sales transactions have been consummated.

On June 28 and July 6, 2020, IDBD sold 4,791,618 Clal shares held by it through swap transactions, at an average price of approximately NIS 30 per share, representing 7.1% of the capital stock.

Additionally, on September 3, 2020, IDBD sold 2,376,527 Clal shares at an average price of NIS 32,475 per share, for a total amount of NIS 77.2 million, representing 3.5% of Clal´s capital stock.

As a result of the aforementioned transactions, as of this date, IDBD´s holding in Clal represents 4.99% of its capital stock. It no longer has swap transactions and, accordingly, it is no longer considered as Clal interested party within the context of Israel´s Securities Regulations.

On February 4, 2020, Dolphin furnished to the financial entities through which IDB carried out the swap transactions of Clal shares in August and November 2018, guarantees of approximately NIS 11 million, which shall be part of the committed deposits that IDB undertook as part of the terms of such transactions. Furthermore, on February 18, it deposited further guarantees in the amount of NIS 9 million. Following the last sale described above, the guarantees were returned.

(i)

Distribution of dividends in kind by PBC. Purchase of Mehadrin shares and acquisition of control

On December 10, 2019, PBC distributed its entire holding in Mehadrin as a dividend in kind and, as a result, DIC holds, directly, a 31.4% interest in Mehadrin. As a consequence of such transaction, Mehadrin became an associate.

In January and February 2020, DIC purchased approximately 8.8% of Mehadrin’s capital stock, for a total cost of NIS 39 (approximately Ps. 767); therefore, the interest in Mehadrin has increased from 31.4% to approximately 40.2%. Such acquisitions resulted in DIC obtaining control over Mehadrin, by the end of February, as it has the majority votes while the remaining equity interests are distributed among several shareholders.

Additionally, from April to June 2020, DIC purchased an additional 3.5% interest in Mehadrin for NIS 14 (approximately Ps. 298), increasing its interest to 43.7%.

Following the taking of control, as mentioned above, since March 9, 2020, the Group has consolidated the operations of this company.

Below is a detail of incorporated net assets and income from such transaction. The process for the assessment of the fair value of incorporated net assets has been significantly completed as of June 30, 2020 and it is expected to conclude in the first months of the fiscal year ending June 30, 2021. However, the Management does not foresee any material adjustments to the incorporated net assets detailed below:

F-40

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	03.31.2020
Fair value of identifiable assets and liabilities<br>incurred
Investment<br>properties	244
Property,<br>plant and equipment	6,108
Intangible<br>assets	57
Investments<br>in associates and joint ventures	1,879
Restricted<br>assets	164
Income<br>tax receivables	146
Trade<br>and other receivables	10,211
Rights<br>of use	4,019
Derivative<br>financial instruments	37
Inventories	2,503
Borrowings	(7,363)
Deferred<br>income tax liabilities	(945)
Trade<br>and other payables	(4,711)
Lease<br>liabilities	(2,119)
Provisions	(56)
Employee<br>benefits	(128)
Salaries<br>and social security liabilities	(201)
Income<br>Tax	(18)
Cash<br>and cash equivalents	2,612
TOTAL IDENTIFIABLE NET ASSETS	12,439
Non-controlling<br>interest	(7,443)
Negative<br>goodwill (*)	(376)
Write-off<br>of Investments in associates	3,908
Cash<br>and cash equivalents	712
TOTAL CONSIDERATION	4,620

(*) Included in “Other operating income, net”

(j)

Partial sale of equity interests in Gav-Yam

On July 1, 2019, PBC sold approximately 11.7% of Gav-Yam´s capital stock by private agreements. Following this transaction, PBC´s interest in Gav-Yam decreased from 51.7% to 40%. The consideration received for such sale was NIS 46 (approximately $ 7,481, ).

Furthermore, on September 1, 2019, PBC sold an additional 5.14%, approximately, of Gav-Yam shares and, as a result, PBC´s interest in Gav-Yam decreased from 40% to 34.9%. As a consequence of such sales, PBC forfeited its right to nominate the majority members of the Board of Directors and to appoint or remove key management members. Accordingly, PBC has lost its control over Gav-Yam and has de-consolidated such investment since such date.

Below are the details of the sale:

	09.30.2019
Cash<br>received	14,261
Remediation<br>of the fair value of the remaining interest	32,165
Total	46,426
Net<br>assets disposed including goodwill	(28,128)
Gain<br>from the sale of a subsidiary, net of taxes (*)	18,298

(*) Said results are disclosed within discontinued operations, under the caption "other operating results, net"

F-41

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following table details the net assets disposed:

	09.30.2019
Investment<br>properties	155,846
Property,<br>plant and equipment	1,061
Intangible<br>assets	3,281
Right-of-use<br>assets	42
Investments<br>in associates and joint ventures	4,396
Restricted<br>assets	378
Trade<br>and other receivables	1,157
Investments<br>in financial assets	13,544
Trading<br>properties	155
Income<br>tax credit	190
Cash<br>and cash equivalents	10,623
TOTAL ASSETS	190,673
Borrowings	95,443
Lease<br>liabilities	42
Deferred<br>income tax liabilities	21,151
Trade<br>and other payables	2,398
Employee<br>benefits	21
Salaries<br>and social security liabilities	63
Income<br>tax and MPIT liabilities	125
TOTAL LIABILITIES	119,243
Non-controlling<br>interest	43,302
Net assets written off including goodwill	28,128

On January 12, 2020, PBC received a communication from the Ministry of Justice of Israel questioning the loss of control of Gav-Yam in September 2019 and, accordingly, raising its objections to observance by PBC of the concentration law in Israel.

In May 2020, PBC agreed to sell approximately 4.96% of Gav-Yam´s capital stock to an unrelated third party. Therefore, its interest in Gav-Yam decreased from 34.9% to 29.9% after the consummation of the sales transaction and it was thus able to overcome the questioning from the Ministry of Justice of Israel.

(k)

Changes in equity interest in Shufersal and loss of control

On December 24, 2017, DIC sold Shufersal shares, decreasing its stake from 53.30% to 50.12%. The consideration with respect to the sale of the shares amounted to NIS 169.5 (equivalent to Ps. 2,312). Both transactions were accounted for as an equity transaction generating an increase in equity attributable to the controlling company for

Ps. 783 and Ps. 1,051, respectively.

On June 16, 2018, DIC announced the sale of a percentage of its stake in Shufersal to institutional investors which was completed on June 21, 2018. The percentage sold amounted to 16.56% and the net amount of the consideration was approximately NIS 848 (equivalent to Ps. 14,905), consequently DIC lost control of Shufersal, so the Group deconsolidated the subsidiary at that date.

Below are the details of the sale:

	06.30.2018
Cash<br>received	14,275
Remediation<br>of the fair value of the remaining interest	29,271
Total	43,546
Net<br>assets disposed including goodwill	(18,902)
Gain<br>from the sale of a subsidiary, net of taxes (*)	24,644

(*) Includes Ps. 6,304 as a result of the sale and Ps. 20,227 as a result of the re-measurement at the fair value of the new stake, both included in discontinued operations.

F-42

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following table details the net assets disposed:

	06.30.2018
Investment<br>properties	10,332
Property,<br>plant and equipment	64,484
Intangible<br>assets	16,203
Investments<br>in associates and joint ventures	892
Restricted<br>assets	203
Trade<br>and other receivables	32,516
Investments<br>in financial assets	280
Derivative<br>financial instruments	51
Inventories	13,955
Cash<br>and cash equivalents	12,404
TOTAL ASSETS	151,320
Borrowings	47,383
Deferred<br>income tax liabilities	6,244
Trade<br>and other payables	53,306
Provisions	1,025
Employee<br>benefits	2,812
Salaries<br>and social security liabilities	5,322
Income<br>tax and MPIT liabilities	17
TOTAL LIABILITIES	116,109
Non-controlling<br>interest	16,309
Net assets disposed including goodwill	18,902

Additionally, on November 27, 2018, DIC sold 7.5% of the total shares of Shufersal to institutional investors for a consideration of NIS 416 million (approximately Ps. 7,822). After this transaction, the group holding went down to 26.02% approximately. The profit for this sale was NIS 27 (approximately Ps. 463). See Note 34 regarding the sale of the entire equity interest.

(l)

Interest increase in Cellcom

On June 27, 2018, Cellcom increased its capital stock in consideration for a gross amount of NIS 280 (approximately Ps. 5,294). DIC participated in such increase and disbursed NIS 145.9 (approximately Ps. 2,757) for 6,314,200 shares.

Furthermore, in December 2018, DIC exercised 1.5 million options (Series 1) held by it in Cellcom, for an amount of NIS 31 million (approximately Ps. 567). In December 2019 and February 2020, DIC purchased Cellcom shares for NIS 19 million (approximately Ps. 384). As a consequence of the exercise of the options and the acquisition, DIC interest in Cellcom increased by 0.9%. These transactions were accounted for as equity transactions generating a decrease in the net equity attributable to the controlling company by Ps. 243, .

Additionally, on December 5, 2019, Cellcom increased its capital stock with the participation of DIC that purchased almost 50% of the shares issued. The consideration paid amounted to NIS 307 (approximately Ps. 6,471 as of such date). Cellcom issued an aggregate number of 30,600,000 common shares, 7,038,000 Series 3 Options and 6,426,000 Series 4 Options at a price of NIS 1.021 per unit (each unit will represent 100 common shares, 23 Series 3 Options and 21 Series 4 Options).

Following the participation of DIC in such issue, the interest percentage was 46.2% of the issued capital stock and approximately 48.5% of the Company´s voting rights (directly and by means of agreements executed with other shareholders of the Company).

(m)

Sale of IDBT subsidiary

On August 14, 2018, IDBT´s Board of Directors approved an agreement to sell 50% of a subsidiary of IDBT, entrusted with tourism operations for Israir, for a total price of NIS 26 (approximately Ps. 545), which transaction was consummated on December 31, 2018. Such transaction does not affect the intention to sell IDBT in its entirety. The Group evaluated maintaining the criteria to classify the investment as a discontinued operation pursuant to IFRS 5.

F-43

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(n)

Agreement to sell plot of land in USA

In July 2019, a subsidiary of IDBG signed an agreement to sell a plot of land next to the Tivoli project in Las Vegas for a consideration of US$ 18 million. At this stage, no assurances may be given that the sales transaction will be completed.

(o)

Sale of Real Estate

In October 2018, a subsidiary of Ispro signed an agreement for the sale of all of its rights in real estate area of approximately 29 dunams (equivalent to 1 hectare), in which there are 12,700 square meters in the northern industrial zone in Yavneh for NIS 86 million, (equivalent to Ps. 6,932). Such agreement has already been executed.

(p)

Interest increase in PBC

In December 2018 and February 2019, DIC acquired an additional 4.40% of PBC in the market for NIS 81 million (equivalent to Ps.1,545). The present transactions were accounted for as equity transactions, generating an increase in net equity attributable to the controlling company for Ps. 109, . See Note 35

(q)

Repurchase of own shares by DIC

In December 2018, DIC's Board of Directors approved a plan to buy back DIC shares, for a period of one year, until December 2020 amounting up to NIS 120 million (approximately Ps. 2,689). Acquisition of securities shall be carried out in accordance with market opportunities, dates, prices and quantities, as determined by the management of DIC, in such a way that in any event, the public holdings shall be, at any time, at least 10.1% of the total issued share capital of DIC.

Since December 2018 as of the fiscal year-end date, DIC acquired 12.2 million shares for a total amount of NIS 119 million (approximately Ps. 2,196). Additionally, in December 2018, minority shareholders of DIC exercised DIC Series 6 options for an amount of NIS 9 million (approximately Ps.187).

As a result of the operations described above, the participation of Dolphin IL in DIC increased approximately by 5.4%. The present transactions were accounted for as equity transactions generating a decrease in the equity attributable to the controlling company for Ps. 143, .

(r)

Interest increase in Elron

In November and December 2018, DIC acquired an additional 9.2% of Elron in the market for NIS 31 million (equivalent to Ps. 600). Additionally, in June 2020, Elron issued shares to the market and third parties unrelated to the Group acquired an interest in the Company in consideration for NIS 26. These transactions were accounted for as an equity transaction generating a decrease in the equity attributable to the controlling company for Ps. 69.

(s)

Interest increase in DIC

On July 5, 2018, Tyrus acquired 2,062,000 of DIC’s shares in the market for a total amount of NIS 20 million (equivalent to Ps. 528), which represent 1.35% of the Company’s outstanding shares at such date. As a result of this transaction, the Group’s equity interest has increased from 76.57% to 77.92%. This transaction was accounted for as an equity transaction generating an increase in the net equity attributable to the controlling company by Ps. 50, .

Considering was what mentioned in note 4.G. above, the stake of the Group in DIC is approximately 83.77% considering the repurchase of treasury shares.

(t)

Early payment of Ispro bonds

In August 2019, the Audit Committee and the Board of Directors of Ispro approved the full advance payment of (Tranche B) corporate bonds, traded on the TASE. The aggregate amount was NIS 131 (approximately Ps. 2,654 ). The prepayment of these corporate bonds caused Ispro to become a reporting company for TASE and not a listed company.

F-44

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(u)

Agreement for the sale of Ispro

On January 26, 2020, PBC executed an agreement for the sale of all Ispro shares and the rights over the loans granted by the shareholders to ISPRO in consideration for NIS 885. The consummation of the transaction is subject to approval by the Commissioner of Competition pursuant to the Law on Economic Competition, which must be given within a term of 150 days following the execution of the agreement. For this reason, the Group has reclassified the assets and liabilities as available for sale.

At the time of the execution of the agreement, the buyer made a deposit of NIS 15 into an account and undertook to deposit an additional amount of NIS 40, following completion of the due diligence process.

On March 23, 2020, the buyer contacted PBC and requested a postponement of the dates specified in the sales agreement. PBC informed the buyer that its request would be considered without detrimentally affecting PBC´s rights and obligations pursuant to the agreement. On March 26, 2020, that is, the date of completion of the due diligence process, the buyer defaulted on its obligation to deposit the second payment installment in an amount of NIS 40, into a trust account.

PBC demanded the buyer to cure its default and immediately deposit the second payment installment and proceed with the closing of the transaction in accordance with its terms, without this entailing a limitation on its rights and obligations and any consideration available for the buyer pursuant to the agreement and under the law, until April 20, 2020. Since non-compliance was not occurred until April 20, 2020, the agreement was terminated.

In April 2020, PBC executed an agreement with another buyer for NIS 800 involving all ISPRO shares and the rights over the loans granted by PBC to ISPRO. As a consequence of the agreement for the sale of ISPRO´s shares, the Group has reclassified net assets totaling Ps. 16,657 as “Group of Assets available for Sale”. Income to be recognized at the time of the consummation of the transaction shall be NIS 47 (equivalent of Ps. 906).

(v)

Cellcom- Golan Telecom Agreement

In February 2020, Cellcom, the shareholders of Golan Telecom and Golan Telecom executed a binding memorandum of understanding for the acquisition of Golan Telecom entire capital stock, for a total amount of NIS 590, payable in 2 installments (NIS 413 at the closing date of the transaction and NIS 177 within a term of 3 years following such closing date). Cellcom shall issue and deposit the Company´s shares for 8.2 million, with a trustee into a trust account (“Shares held in Trust”), as collateral.

The transaction provides for standard conditions and representations and is subject to a due diligence process to be performed by Cellcom and the relevant regulatory authorizations and approvals from material third parties. The parties shall carry out negotiations regarding a detailed agreement; however, they are bound to the memorandum of understanding, regardless of whether the agreement may be executed or not. In the event the conditions for the closing of the transaction were not satisfied before December 31, 2020, the memorandum of understanding or the detailed agreement, as applicable, shall be terminated.

See Note 40 for further information about the execution of the agreement and the grant of the respective approvals.

Financial risk management and fair value estimates

The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, indexing risk due to specific clauses and other price risks), credit risk, liquidity risk and capital risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

The general risk management policies of the Group seek both to minimize adverse potential effects on the financial performance of the Group and to manage and control the financial risks effectively. The Group uses financial instruments to hedge certain risk exposures when deemed appropriate based on its internal management risk policies, as explained below.

F-45

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Given the diversity of characteristics in the activities conducted under its business and operations center, the Group has decentralized the risk management policies based on two significant line of business: (i) agricultural business and (ii) urban properties and investments business, which is divided into two: (a) Argentina and (b) Israel, in order to identify and properly analyze the various types of risks to which each of the subsidiaries is exposed.

The Group’s main financial instruments in the agricultural business and urban properties and investments business of the Operation Center in Argentina comprise cash and cash equivalents, receivables, payables, interest bearing assets and liabilities, other financial liabilities, other investments and derivative financial instruments. The Group manages its exposure to key financial risks in accordance with the Group’s risk management policies.

The Group’s management framework includes policies, procedures, limits and allowed types of derivative financial instruments. The Group has established a Risk Committee, comprising members of senior management and a member of the Audit Committee, which reviews and oversees management’s compliance with these policies, procedures and limits and has overall accountability for the identification and management of risk across the Group.

Given the diversity of the activities conducted by the Operations Center in Israel of the urban properties and investments business (IDBD, DIC and its subsidiaries), and the resulting risks, IDBD and DIC manage the exposure to their own key financial risks and those of its wholly-owned subsidiaries (except for IDB Tourism) in conformity with a centralized risk management policy, with the non-wholly owned IDBD and DIC subsidiaries being responsible for establishing the risk policy, taking action to cover market risks and managing their activities in a decentralized way. Both IDBD and DIC as holding and each subsidiary are responsible for managing their own financial risks in accordance with agreed global guidelines. The Chief Financial Officers of each entity are responsible for managing the risk management policies and systems, the definition of hedging strategies, insofar as applicable and based on any restriction that may be apply as a result of financial debt, the supervision of its implementation and the answer to such restrictions. The management framework includes policies, procedures, limits and allowed types of derivative financial instruments.

This section provides a description of the principal risks that could have a material adverse effect on the Group’s strategy, performance, results of operations and financial condition. The risks facing the businesses, set out below, do not appear in any particular order of potential materiality or probability of occurrence.

The analysis of sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice, this is unlikely to occur, and changes in some of the factors may be correlated – for example, changes in interest rate and changes in foreign currency rates.

This sensitivity analysis provides only a limited, point-in-time view. The actual impact on the Group’s financial instruments may differ significantly from the impact shown in the sensitivity analysis.

(a)

Market risk management

Market risk is the risk that the market prices, the fair value or the future cash flows of financial instrument instruments with which the Group operates will fluctuate due to changes in market prices. The Group’s market risks arise from open positions in foreign currencies, interest-bearing assets and liabilities, commodity price risks and equity securities of certain companies, to the extent that these are exposed to market value movements. The Group sets limits on the exposure to these risks that may be accepted, which are monitored on a regular basis.

Foreign Exchange risk and associated derivative financial instruments

The Group publishes its Consolidated Financial Statements in Argentine pesos but conducts operations and holds positions in other currencies. As a result, the Group is exposed to foreign currency exchange risk through exchange rate movements, which affect the value of the Group’s foreign currency positions. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

The Group's activities are carried out as follows:

Agricultural business: The commercial and/or agro-industrial activities of the Group's subsidiaries are primarily developed in Argentina and have as functional currency the Argentine Peso. The agricultural activities of the Group’s subsidiaries are primarily developed in Argentina, Brazil and Bolivia, where the functional currencies are the respective local currencies.

F-46

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Urban properties and investments business:

Operation Center in Argentina: The real estate, commercial and/or financial activities of the Group’s subsidiaries from the operations center in Argentina have the Argentine Peso as functional currency. An important part of the business activities of these subsidiaries is conducted in that currency, thus not exposing the Group to foreign exchange risk. Other Group's subsidiaries have other functional currencies, principally US Dollar. In the ordinary course of business, the Group, through its subsidiaries, transacts in currencies other than the respective functional currencies of the subsidiaries. These transactions are primarily denominated in US Dollars and New Israeli Shekel.

Operation Center in Israel: Real estate, business and/or financial activities of IDBD subsidiaries in the operations center in Israel are developed mainly in Israeli currency, although some operations, mostly borrowing, are expressed in United States’ dollars, thereby exposing IDBD to a foreign currency risk.

An important part of the business activities of these subsidiaries is conducted in above-mentioned local currencies, thus not exposing the Group to foreign exchange risk. Net financial position exposure to the functional currencies is managed on a case-by-case basis, partly by entering into foreign currency derivative instruments and/or by borrowings in foreign currencies, or other methods, considered adequate by the Management, according to circumstances.

Financial instruments are considered sensitive to foreign exchange rates only when they are not in the functional currency of the entity that holds them. The following tables shows the net carrying amounts of the Company’s financial instruments nominated in US$, broken down by the functional currencies in which the Company operates for the years ended June 30, 2019 and 2018. The amounts are presented in Argentine Pesos, the presentation currency of the Group:

Agricultural business

	Net<br>monetary position (Liability) / Asset
	06.30.20	06.30.19
Functional<br>currency	US$	US$
Argentine<br>Peso	(33,726)	(27,579)
Brazilian<br>Reais	194	357
Bolivian<br>Peso	(111)	(118)
Total	(33,643)	(27,340)

The Group estimates that, other factors being constant, a 10% appreciation of the US dollar against the respective functional currencies at year-end would result in a lower gain before income tax for the years ended June 30, 2020 and 2019 for an amount of Ps. 3,364 and Ps. 2,733, respectively. A 10% depreciation of the US dollar against the functional currencies would have an equal and opposite effect on the Statements of Income.

On the other hand, the Group also uses derivative instruments, such as future foreign exchange contracts to manage its exposure to foreign exchange risk. As of June 30, 2020, the Group has future exchange contracts pending for an amount of Ps. 17 (asset) and Ps. 192 (liability). As of June 30, 2019, , the Group has future exchange contracts pending for an amount of Ps. 47 (asset) and Ps. 39 (liability).

Urban properties and investments business

Operation Center in Argentina

	Net<br>monetary position (Liability) / Asset
	06.30.20		06.30.19
Functional currency	US$	NIS	US$	NIS
Argentine<br>Peso	(41,336)	-	(22,752)	-
Uruguayan<br>Peso	164	-	(295)	-
Total	(41,172)	-	(23,047)	-

The Group estimates that, other factors being constant, a 10% appreciation of the US Dollar against the respective functional currencies at year-end for the Operations Center in Argentina would result in a net additional loss before income tax for the years ended June 30, 2020 and 2019 for an amount of Ps. 1,612 and Ps. 2,304, respectively. A 10% depreciation of the US Dollar against the functional currencies would have an equal and opposite effect on the statements of income.

On the other hand, the Group also uses derivatives, such as future exchange contracts, to manage its exposure to foreign currency risk. As of June 30, 2020 and 2019 the Group has future exchange contracts pending for an amount of US$ 95 and US$ 22, respectively.

F-47

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Operation Center in Israel

As of June 30, 2020 and 2019, the net position of financial instruments in US Dollars, which exposes the Group to the foreign currency risk amounts to Ps. (1,425) and Ps. (12,806), respectively. The Group estimates that, other factors being constant, a 10% appreciation of the US Dollar against the Israeli currency would increase loss before income tax for the year ended June 30, 2020 for an amount of Ps. 536 (Ps. 934 loss in 2019).

Interest rate risk

The Group is exposed to interest rate risk on its investments in debt instruments, short-term and long-term borrowings and derivative financial instruments.

The primary objective of the Group’s investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, the Group diversifies its portfolio in accordance with the limits set by the Group. The Group maintains a portfolio of cash equivalents and short-term investments in a variety of securities, including both government and corporate obligations and money market funds.

The Group’s interest rate risk principally arises from long-term borrowings (Note 21). Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.

The Group manages this risk by maintaining an appropriate mix between fixed and floating rate interest bearing liabilities. These activities are evaluated regularly to determine that the Group is not exposed to interest rate fluctuations that could adversely affect its ability to meet its financial obligations and to comply with its borrowing covenants.

The Group occasionally manages its cash flow interest rate risk exposure by different hedging instruments, including but not limited to interest rate swap, depending on each particular case. For example, interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates or vice versa.

The interest rate risk policy is approved by the Board of Directors. Management analyses the Group’s interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions. Trade payables are normally interest-free and have settlement dates within one year. The simulation is done on a regular basis to verify that the maximum potential loss is within the limits set by management.

Note 22 shows a breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2020 and 2019.

Agricultural business

The Group estimates that, other factors being constant, a 1% increase in floating rates at year-end would increase net loss before income tax for the years ended June 30, 2020 and 2019 in the amount of Ps. 47.4 and Ps. 35.3, respectively. A 1% decrease in floating rates would have an equal and opposite effect on the Statement of Income.

Urban properties and investments business

Operation Center in Argentina

The Group estimates that, other factors being constant, a 1% increase in floating rates at year-end would increase net loss before income tax for the years ended June 30, 2020 and 2019 in the amount of Ps. 33.3 and Ps. 33.6, respectively. A 1% decrease in floating rates would have an equal and opposite effect on the Statement of Income.

As of June 30, 2020 and 2019, 95.2% and 94.1% of the Group’s long-term financial loans in this operation center have a fixed interest rate so that IRSA is not significantly exposed to the fluctuation risk of the interest rate.

Operation Center in Israel

IDBD and DIC manage the exposure to the interest rate risk in a decentralized way and it is monitored regularly by different management offices in order to confirm that there are no adverse effects over their ability to meet their financial obligations and to comply with their borrowings covenants.

As of June 30, 2020 and 2019, the 99.4% and 97.1%, respectively, of the Group’s long-term financial borrowings in this operations center are at fixed interest rate, therefore, the Group is not significantly exposed to the interest rate fluctuation risk.

F-48

The Group estimates that, other factors being constant, a 1% increase in floating rates at year-end would increase net loss before income tax for the year ended June 30, 2020, in approximately Ps. 60 (approximately Ps. 150 in 2019). A 1% decrease in floating rates would have an equal and opposite effect on the Statement of Income.

Commodity price risk and associated derivative financial instruments

The Group’s agricultural activities expose it to specific financial risks related to commodity prices. Prices for commodities have historically been cyclical, reflecting overall economic conditions and changes in capacity within the industry, which affect the profitability of entities engaged in the agricultural industry.

Generally, the Group uses derivative instruments to hedge risks arising out of its agricultural business operations. The Group uses a variety of commodity-based derivative instruments to manage exposure to price volatility stemming from its integrated crop production activities. These instruments consist mainly of crop forwards, future contracts and put and call option contracts. Contract positions are designed to ensure that the Group will receive a defined minimum price for certain quantities of its production. The Group combines option contracts with future contracts only as a means of reducing the exposure towards the decrease in commodity prices, as being a producer means that the price is uncertain until the time the products are harvested and sold. The Group manages maximum and minimum prices for each commodity and the idea is to choose the best spot price at which to sell.

The Group generally covers up to 49.9% of its crop production in order to finance its operating costs. The hedge consists of taking positions on purchased puts or sold futures and calls that assure a fixed exit price. In the past, the Group has never kept a short position greater than its crop inventories and does not intend to. On the other hand, it is not the Group’s current intention to be exposed in a long derivative position in excess of its actual production.

The following tables show the outstanding positions for each type of derivative contract for the years ended June 30, 2020 and 2019:

	06.30.20
Type of derivative contract	Tons	Margin	Premium<br>paid or (collected)	Derivatives<br>at fair value	Gain<br>/ (Loss) for valuation at fair value at year-end
Forward:
Sales
Corn	164,207	75	-	(25)	8
Soybeans	93,036	65	-	(25)	244
Wheat	19,916	11	-	3	-
Livestock	58,618	-	-	-	(20)
Cotton	961	-	-	14	-
Ethanol	646	-	-	-	(9)
Purchase
Corn	50,038	(23)	-	9	-
Soybeans	17,941	24	-	5	-
Wheat	19,055	(3)	-	1	-
Options:
Sale put
Corn	43,347	-	-	(25)	(26)
Soybeans	38,295	-	-	(5)	51
Cotton	673	-	-	(5)	-
Livestock	-	-	-	-	(1)
Purchase put
Corn	-	-	-	(8)	-
Soybeans	1,077	-	-	(5)	-
Sale call
Corn	96,566	56	(5)	33	-
Soybeans	4,844	2	(18)	30	-
Wheat	8,612	4	-	3	-
Purchase call
Wheat	-	-	5	(5)	-
Soybeans	-	-	10	(4)	-
Total	617,832	211	(8)	(9)	247

F-49

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	06.30.19
Type of derivative contract	Tons	Margin	Premium<br>paid or (collected)	Derivatives<br>at fair value	Gain<br>/ (Loss) for valuation at fair value at year-end
Forward:
Sales
Corn	123,905	35	-	(43)	(51)
Soybeans	184,592	129	-	(55)	(31)
Wheat	26,200	9	-	-	-
Livestock	6,930	-	-	-	-
Cotton	423	-	-	5	-
Ethanol	1,500	-	-	-	5
Purchase
Corn	86,262	(2)	-	5	5
Soybeans	61,284	(21)	-	6	6
Wheat	4,100	(1)	-	(2)	(2)
Options:
Sale put
Corn	25,949	-	-	(23)	(9)
Soybeans	54,407	-	-	(71)	114
Wheat	-	-	1	-	(2)
Cotton	1,473	-	-	(2)	-
Livestock	16,500	-	-	(2)	-
Purchase put
Corn	-	-	(1)	-	2
Wheat	-	-	(1)	-	2
Sale call
Corn	108,900	54	6	15	5
Soybeans	131,765	52	(1)	26	28
Wheat	14,400	2	(1)	5	6
Purchase call
Corn	-	-	(1)	(9)	3
Soybeans	-	-	(8)	-	-
Total	848,590	257	(6)	(145)	81

Gains and losses on commodity-based derivative instruments were Ps. 247 (gain) and Ps. 81 (gain) for the years ended June 30, 2020 and 2019, respectively. These gains and losses are included in “Other operating results, net” in the Statements of Income.

Crops future contracts fair values are computed with reference to quoted market prices on future exchanges.

Risk of fluctuations of the Consumer Price Index ("CPI") of Israel

The Operations Center in Israel has financial liabilities indexed by the Israeli CPI.

Net financial position exposure to the Israeli CPI fluctuations is managed in a decentralized way on a case-by-case basis, by entering into different derivative financial instruments, as the case may be, or by other methods, considered adequate by the Management, based on the circumstances.

As of June 30, 2020, 36.9% of the loans are affected by the evolution of the CPI. A 1% increase in the CPI would generate a loss of Ps. 1,112 (Ps.1,617 for 2019) and a decrease of 1% generates a profit of Ps. 1,135 (Ps.1,635 for 2019).

Other price risks

The Group is exposed to equity securities price risk or derivative financial instruments because of investments held in entities that are publicly traded, which were classified on the Consolidated Statements of Financial Position at “fair value through profit or loss”. The Group regularly reviews the prices evolution of these equity securities in order to identify significant movements.

As of June 30, 2020 and 2019 the total value of Group’s investments in shares and derivative financial instruments of public companies amounts to Ps. 20,869 and Ps. 8,595, respectively.

In the Operations Center in Israel the investment in Clal is classified on the Statements of Financial Position at “fair value through profit or loss” and represents the most significant IDBD’s exposure to price risk. Neither IDBD or DIC has used hedging against these risks (Note 15). IDBD and DIC regularly review the prices evolution of these equity securities in order to identify significant movements.

F-50

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group estimates that, other factors being constant, a 10% decrease in quoted prices of equity securities and in derivative financial instruments portfolio at year-end would generate a loss before income tax for the year ended June 30, 2020, of Ps. 2,086 (Ps. 859 in 2019) for the Operations Center in Argentina and a loss before income tax for the year ended June 30, 2020, of Ps. 464 (Ps. 2,746 in 2019) for the Operations Center in Israel. An increase of 10% on these prices would have an equal and opposite effect in the Statement of Income.

(b)

Credit risk management

The credit risk arises from the potential non-performance of contractual obligations by the parties, with a resulting financial loss for the Group. Credit limits have been established to ensure that the Group deals only with approved counterparties and that counterparty concentration risk is addressed and the risk of loss is mitigated. Counterparty exposure is measured as the aggregate of all obligations of any single legal entity or economic entity to the Group.

The Group is subject to credit risk arising from deposits with banks and financial institutions, investments of surplus cash balances, the use of derivative financial instruments and from outstanding receivables. The credit risk is managed on a country-by-country basis. Each local entity is responsible for managing and analyzing the credit risk.

The Group’s policy in each operations center is to manage credit exposure from deposits, short-term investments and other financial instruments by maintaining diversified funding sources in various financial institutions. All the institutions that operate with the Group are well known because of their experience in the market and high credit quality. The Group places its cash and cash equivalents, investments, and other financial instruments with various high credit quality financial institutions, thus mitigating the amount of credit exposure to any one institution. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents and short-term investments in the Statements of Financial Position.

Agricultural business

The Group’s primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk and commodities prices. The Group generally enters into derivative transactions with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to each counter party. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which counterparty’s obligations exceed the obligations that the Group has with that counterparty. The credit risk associated with derivative financial instruments is representing by the carrying value of the assets positions of these instruments.

The Group’s policy is to manage credit risks associated with trade and other receivables within defined trading limits. All Group’s significant counterparties have internal trading limits. The Group’s customers are distinguished between those customers arising out of the investment and development properties activities of the Group from those arising out of its agricultural and agro-industrial operations. These two groups of customers are monitored separately due to their distinct characteristics.

Trade receivables from agriculture and agro-industrial activities are primarily derived from the sale of commodities, raw milk, cattle, and sugarcane; receivables from feedlot operations and raw meat products; receivables from the lease of farmland properties; receivables from the sale of farmland properties; and, other receivables from ancillary activities. Trade receivables from agriculture and agro-industrial activities represent 9% and 4% of the Group’s total trade receivables as of June 30, 2020 and 2019, respectively. In contrast with the investment and development properties activities of the Group, the Group’s agribusiness is conducted through several international subsidiaries. The Group has subsidiaries in Argentina, Brazil, Bolivia and Paraguay. However, Argentina and Brazil together concentrate more than 96% and 94% of the Group’s grain production for the years ended June 30, 2020 and 2019, respectively. For the years ended June 30, 2020 and 2019, the grain production in Bolivia has not been significant representing only 3% and 6% of the total Group’s crop sales, respectively. Each country has its own established market for the respective grain production. Generally, the entire country’s grain production is sold in the domestic market to well-known multinational exporters such as Molinos, Cargill or Bunge, and/or local exporters. Prices for grains are also generally based on the market prices quoted in the domestic markets, which normally take as reference the prices in international grain exchanges such as the Chicago Board of Trade.

For the years ended June 30, 2020 and 2019, 47% and 44% of sales of crops in Argentina and Brazil were sold to well-known exporters. The Group performs credit evaluations of its customers and generally does not require collateral. Although sales are highly concentrated, the Group does not believe that significant credit risk exists at the reporting period due to the high credit rating of these customers.

The Group concentrates its cattle production in Argentina where it is entirely sold in the domestic market. The main buyers are slaughterhouses and supermarkets and are well dispersed. Prices in the cattle market in Argentina are basically fixed by local supply and demand. The principal market is the Liniers Market in Buenos Aires, which provides a standard in price formation for the rest of the domestic markets. Live animals are sold by auction on a daily basis in the market, whereas prices are negotiated by kilogram of live weight and are mainly determined by local supply and demand. Some supermarkets and meat packers establish their prices by kilogram of processed meat. In these cases, processing yields influences the final price.

F-51

The Group’s sugarcane production is based in Brazil and to a lesser extent in Bolivia. Brazil concentrates the 100% and 97% of the Group's total sugarcane production as of June 30, 2020 and 2019, respectively. Currently, the group has two supply agreements of sugarcane. One of them is with Brenco Companhia Brasileira de Energía Renovable (ETH) and the other one Aparecería IV with Agroserra - Agro Pecuária e Industria, in the municipality of São Raimundo das Mangabeiras. Sales to ETH amounted to Ps. 1,421 and Ps. 1,263 and from Agroserra amounted to Ps. 1,891 and Ps. 1,499 during fiscal years ended June 30, 2020 and 2019, respectively. Thus, total sales amounted to Ps. 3,313 and Ps. 2,761 in fiscal year ended June 30, 2020 and 2019, representing 12% and 14% of consolidated agricultural business revenues of the Group of each fiscal year. Although sales are agreed, the Group do not believe that there is a significant collection risk as of the date of year fiscal year, considering the rating of ETH and Agroserra.

The Company does not expect any significant losses resulting from the non-performance of the counterparties in any of the business lines.

The maximum exposure to Group’s credit risk is represented by the carrying amount of each financial asset in the Statement of Financial Position after deducting any impairment allowance. The Group’s overall exposure of credit risk arising from trade receivables is set out in Note 16.

Urban properties and investments business

Operation Center in Argentina

Trade receivables related to leases and services provided by the Group represent a diversified tenant base and account for 94.2% and 99.1% of the Group’s total trade receivables of the operations center as of June 30, 2020 and 2019, respectively. The Group has specific policies to ensure that rental contracts are transacted with counterparties with appropriate credit quality. The majority of the Group’s shopping mall, offices and other rental properties’ tenants are well recognized retailers, diversified companies, professional organizations, and others. Owing to the long-term nature and diversity of its tenancy arrangements, the credit risk of this type of trade receivables is considered to be low. Generally, the Group has not experienced any significant losses resulting from the non-performance of any counterpart to the lease contracts and, as a result, the allowance for doubtful accounts balance is low. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Group. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its past experience, financial position, actual experience and other factors.

Based on the Group’s analysis, the Group determines the size of the deposit that is required from the tenant at inception. Management does not expect any material losses from non-performance by these counterparties (see details on Note 16).

On the other hand, property receivables related to the sale of trading properties represent 5.8% and 0.9% of the Group’s total trade receivables as of June 30, 2020 and 2019, respectively. Payments on these receivables have generally been received when due. These receivables are generally secured by mortgages on the properties. Therefore, the credit risk on outstanding amounts is considered very low.

Operation Center in Israel

IDBD’s and DIC’s primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk. IDBD and DIC generally enters into derivative transactions with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to each counterparty. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which counterparty’s obligations exceed the obligations that IDBD has with that counterparty. The credit risk associated with derivative financial instruments is representing by the carrying value of the assets positions of these instruments.

IDBD and DIC’s policy is to manage credit exposure to trade and other receivables within defined trading limits. All IDBD’s significant counterparties have internal trading limits.

Trade receivables from investment and development property activities are primarily derived from leases and services from shopping malls, offices and other rental properties; receivables from the sale of trading properties and investment properties (primarily undeveloped land and non-retail rental properties). IDBD and DIC have a large customer base and is not dependent on any single customer. The credits for sales from the activities of telecommunications and supermarkets do not present large concentrations of credit risk, not depending on a few customers and with most of their transactions in cash or with credit cards (Note 16).

F-52

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(c)

Liquidity risk management

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature the risk that borrowing facilities are not available to meet cash requirements, and the risk that financial assets cannot readily be converted to cash without loss of value. Failure to manage liquidity risks could have a material impact on the Group’s cash flow and Statements of Financial Position. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding its existing and prospective debt requirements by maintaining diversified funding sources.

Each business (or operation center, as appropriate) monitors its current and projected financial position using several key internally generated reports: cash flow; debt maturity; and interest rate exposure. The Group also undertakes sensitivity analysis to assess the impact of proposed transactions, movements in interest rates and changes in property values on the key profitability, liquidity and balance sheet ratios.

The debt of each operation center and the derivative positions are continually reviewed to meet current and expected debt requirements. Each operation center maintains a balance between longer-term and shorter-term financings. Short-term financing is principally raised through bank facilities and overdraft positions. Medium- to longer-term financing comprises public and private bond issues, including private placements. Financing risk is spread by using a variety of types of debt. The maturity profile is managed in accordance with each operation center needs, by spreading the repayment dates and extending facilities, as appropriate.

The tables below show financial liabilities, including each operation center derivative financial liabilities groupings based on the remaining period at the Statements of Financial Position to the contractual maturity date. The amounts disclosed in the tables are the contractual undiscounted cash flows and as a result, they do not reconcile to the amounts disclosed on the Statements of Financial Position. However, undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the Statements of Financial Position, as the impact of discounting is not significant. The tables include both interest and principal flows.

Where the interest payable is not fixed, the amount disclosed has been determined by reference to the existing conditions at the reporting date.

Agricultural business

	06.30.20
	Less<br>than 1 year	Between<br>1 and 2 years	Between<br>2 and 3 years	Between<br>3 and 4 years	More<br>than 4 years	Total
Trade and other<br>payables	6,796	132	202	58	109	7,297
Borrowings	23,284	16,088	9,733	319	311	49,735
Finance lease<br>obligations	850	554	361	291	1,156	3,212
Derivative<br>financial instruments	262	20	-	-	-	282
Total	31,192	16,794	10,296	668	1,576	60,526
	06.30.19
---	---	---	---	---	---	---
	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	More than 4 years	Total
Trade<br>and other payables	6,291	48	42	35	86	6,502
Borrowings<br>(excluding finance lease liabilities)	18,787	7,499	2,454	8,561	508	37,809
Finance<br>lease obligations	12	-	-	-	357	369
Derivative<br>financial instruments	246	-	-	-	-	246
Total	25,336	7,547	2,496	8,596	951	44,926

Urban properties and investments business

Operation Center in Argentina

	06.30.20
	Less<br>than 1 year	Between<br>1 and 2 years	Between<br>2 and 3 years	Between<br>3 and 4 years	More<br>than 4 years	Total
Trade and other<br>payables	1,664	168	74	236	1	2,143
Borrowings	41,342	3,534	29,368	70	233	74,547
Finance<br>lease obligations	57	53	55	58	1,390	1,613
Derivative<br>financial instruments	89	30	6	-	-	125
Total	43,152	3,785	29,503	364	1,624	78,428

F-53

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	06.30.19
	Less than 1 year	Between<br>1 and 2 years	Between<br>2 and 3 years	Between<br>3 and 4 years	More<br>than 4 years	Total
Trade<br>and other payables	2,366	360	157	2	415	3,300
Borrowings<br>(excluding finance lease liabilities)	14,114	21,059	4,077	2,664	23,546	65,460
Purchase<br>obligations	1,966	-	-	-	-	1,966
Finance<br>lease obligations	17	6	2	-	-	25
Derivative<br>financial instruments	20	12	6	2	-	40
Total	18,483	21,437	4,242	2,668	23,961	70,791

Operation Center in Israel

	06.30.20
	Less<br>than 1 year	Between<br>1 and 2 years	Between<br>2 and 3 years	Between<br>3 and 4 years	More<br>than 4 years	Total
Trade and other payables	27,460	372	66	22	22	27,942
Borrowings	57,368	58,565	101,243	46,347	132,433	395,956
Finance<br>lease obligations	5,639	4,334	3,072	1,944	7,092	22,081
Purchase<br>obligations	6,131	919	635	-	-	7,685
Derivative<br>financial<br>instruments	22	-	-	-	-	22
Total	96,620	64,190	105,016	48,313	139,547	453,686
	06.30.19
---	---	---	---	---	---	---
	Less than 1 year	Between<br>1 and 2 years	Between<br>2 and 3 years	Between<br>3 and 4 years	More<br>than 4 years	Total
Trade and other payables	23,269	459	220	-	-	23,948
Borrowings<br>(excluding finance lease liabilities)	72,291	59,048	62,561	98,217	211,136	503,253
Finance<br>lease obligations	37	37	-	-	-	74
Purchase<br>obligations	4,610	1,469	808	532	-	7,419
Derivative financial<br>instruments	37	-	-	-	-	37
Total	100,244	61,013	63,589	98,749	211,136	534,731

See Note 21 for a description of the commitments and restrictions related to loans and the ongoing renegotiations.

(d)

Capital risk management

The capital structure of the Group consists of shareholders’ equity and net borrowings. The type and maturity of the Group’s borrowings are analyzed further in Note 21. The Group’s equity is analyzed into its various components in the Statement of Changes in Equity.

Capital is managed so as to promote the long-term success of the business and to maintain sustainable returns for shareholders.

The Group seeks to manage its capital requirements to maximize value through the mix of debt and equity funding, while ensuring that Group entities continue to operate as going concerns, comply with applicable capital requirements and maintain strong credit ratings.

The Group assesses the adequacy of its capital requirements, cost of capital and gearing (i.e., debt/equity mix) as part of its broader strategic plan. The Group continuously reviews its capital structure to ensure that (i) sufficient funds and financing facilities are available to implement the Group’s property development and business acquisition strategies, (ii) adequate financing facilities for unforeseen contingencies are maintained, and (iii) distributions to shareholders are maintained within the Group’s dividend distribution policy. The Group also protects its equity in assets by obtaining appropriate insurance.

The Group’s strategy is to maintain key financing metrics (net debt to total equity ratio or gearing and debt ratio) in order to ensure that asset level performance is translated into enhanced returns for shareholders whilst maintaining an appropriate risk reward balance to accommodate changing financial and operating market cycles.

The following tables details the Group’s key metrics in relation to managing its capital structure. The ratios are within the ranges previously established by the Group’s strategy.

Agricultural business

	06.30.20	06.30.19
Gearing ratio<br>(i)	63.03%	57.02%
Debt ratio<br>(ii)	251.91%	218.38%

(i) Calculated as total debt over total capital (including equity plus total debt).

(ii) Calculated as total debt over total properties at fair value (including trading properties, properties, plant and equipment, investment properties, farmland rights to receive units under barter agreements).

F-54

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Urban properties and investments business

Operation Center in Argentina

	06.30.20	06.30.19
Gearing ratio<br>(iii)	49.57%	53.60%
Debt ratio<br>(iv)	44.42%	47.54%

Operation Center in Israel

	06.30.20	06.30.19
Gearing<br>ratio (iii)	82.63%	89.57%
Debt<br>ratio (iv)	244.57%	149.40%

(iii)

Calculated as total of borrowings over total borrowings plus equity attributable equity holders of the parent company.

(iv)

Calculated as total borrowings over total properties (including trading properties, property, plant and equipment, investment properties and rights to receive units under barter agreements).

(e)

Other non-financial risks

Nature risks

The Group’s revenue arising from agricultural activities depends significantly on the ability to manage biological assets and agricultural produce. The ability to manage biological assets and agricultural produce may be affected by unfavorable local weather conditions and natural disasters. Weather conditions such as floods, droughts, hail, windstorms and natural disasters such as fire, disease, insect infestation and pests are examples of such unpredictable events. The Group manages this risk by locating its farmlands in different geographical areas. The Group has not taken out insurance for this kind of risks. The occurrence of severe weather conditions or natural disasters may affect the growth of our biological assets, which in turn may have a material adverse effect on the Group’s ability to harvest agricultural produce in sufficient quantities and in a timely way.

Segment information

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by the President of the Group, Mr. Eduardo S. Elsztain. In addition, two responsibility levels have been established for resource allocation and assessment of results of the two operations centers, through executive committees in Argentina and Israel.

Segment information is reported from the perspective of products and services: (i) agricultural business and (ii) urban properties and investment business. In addition, this last segment is reported divided from the geographic point of view in two Operations Centers to manage its global interests: Argentina and Israel. Within each operations center, the Group considers separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks. Management believes the operating segment clustering in each operations center reflects similar economic characteristics in each region, as well as similar products and services offered, types of clients and regulatory environments.

As from fiscal year 2018 the CODM reviews the operating income/loss of each business excluding the amounts related to management fees, being such amount reviewed at an aggregate level outside each business. Additionally, the CODM reviews certain corporate expenses associated with each business in an aggregate manner and separately from each of the segments, such expenses have been disclosed in the "Corporate" segment of each operation center.

As further explained in Note 1, on September 25, 2020, the Group lost control over IDBD and DIC, which comprise the entire Operations Center in Israel. Accordingly, segment information in these financial statements has been recast to reflect the deconsolidation of IDBD, DIC and its subsidiaries. Starting on October 1, 2020, the Group has a single geographic segment in the urban properties and investment business, located in Argentina.

F-55

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is the segment information prepared as follows:

Agricultural business

●

Agricultural production: segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; the sale of grain derivatives, such as flour and oil, breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets.; agricultural services; leasing of the Group's farms to third parties; and planting, harvesting and sale of sugarcane

●

Land transformation and sales: comprises gains from the disposal and development of farmlands activities.

●

Corporate: includes corporate expenses related to agricultural business.

●

Other segments: includes, principally, slaughtering and processing in the meat refrigeration plant; and brokerage activities, among others.

Urban properties and investments business

●

Operation Center in Argentina includes the assets and operating results of the following segments:

Shopping Malls: includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Group.

Offices: includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities.

Sales and developments: includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included.

Hotels: includes the operating results mainly comprised of room, catering and restaurant revenues.

International: includes assets and operating profit or loss from business related to associates Condor (hotels) and New Lipstick (offices).

Corporate: includes the expenses related to the corporate activities of the Operations Center in Argentina.

Others: primarily includes the entertainment activities through La Arena and La Rural S.A. and the financial activities carried out by BHSA and Tarshop.

As of fiscal year 2018, the CODM also reviews the office business as a single segment and the entertainment business in an aggregate and separate manner from offices, including that concept in the "Others" segment.

●

Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method, the profit/loss generated and assets are reported in the Statement of Income line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.

●

Revenues for each reporting segments derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.

●

Operation Center in Israel : As explained in Note 1, results of operations and cash flows of the Operations Center in Israel have been presented within discontinued operations in these financial statements. Within this operations center, the Group operates in the following segments:

Real Estate: segment in which, through PBC, the Group operates rental properties and residential properties in Israel, USA and other parts of the world and carries out commercial projects in Las Vegas, USA. In this fiscal year, the Company lost control over Gav-Yam. Income was reclassified to discontinued operations and no longer forms part of this segment in this fiscal year. Such effect was reclassified in the comparative information. As of September 2018, Gav-Yam started to be valued as an associate.

F-56

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Supermarkets: segment in which, through Shufersal, the Group operated a supermarket chain in Israel. Upon the loss of control in 2018 this segment was reclassified to discontinued operations and presented as an associate since 2019. Due to the loss of control, it was reclassified to discontinued operations and no longer forms part of the segment for fiscal year 2018.

Telecommunications: includes Cellcom whose main activities include the provision of mobile phone services, fixed line phone services, data and Internet and television, among others.

Insurance: includes the investment in Clal, insurance company which main activities includes pension and social security insurance, among others. As stated in Note 18, the Group does not have control over Clal; therefore, the business is reported in a single line as a financial asset held for sale and valued at fair value.

Corporate: includes the expenses related with the activities of the holding companies.

Others: includes other diverse business activities, such as technological developments, tourism, oil and gas assets, electronics, sale of fruits and others.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments of this operations center based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of associates and joint ventures. The valuation criteria used in preparing this information are consistent with IFRS standards used for the preparation of the Consolidated Financial Statements.

Goods and services exchanged between segments are calculated on the basis of established prices. Intercompany transactions between segments, if any, are eliminated.

Within the agricultural business, most revenue from its operating segments are generated from, and their assets are located in Argentina and Brazil, mainly

Within the urban properties and investment business in the operations center in Israel, most revenue from its operating segments are derived from and their assets are located in Israel, except for certain earnings from the Real Estate segment, which are generated from activities outside Israel, mainly in USA.

Within the agricultural business and the urban properties and investments business from the operations center in Argentina, the assets categories reviewed by the CODM are investment properties, property, plant and equipment, trading properties, inventories, biological assets, right to receive future units under barter agreements, investment in joint ventures and associates and goodwill. The aggregate of these assets, classified by business segment, are disclosed as “segment assets”. Assets are allocated to each segment based on the operations and/or their physical location.

F-57

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of the Group for the year ended June 30, 2020:

	06.30.20
		Urban<br>Properties and Investment business (II)
	Agricultural<br>business (I)	Operations<br>Center in Argentina	Operations<br>Center in Israel	Subtotal	Total<br>segment information	Joint<br>ventures (i)	Discontinued<br>operations (ii)	Adjustments<br>(iii)	Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iv)	Total<br>Statement of Income / Financial Position
Revenues	28,271	11,991	-	11,991	40,262	(65)	-	3,337	(881)	42,653
Costs	(23,987)	(2,966)	-	(2,966)	(26,953)	57	-	(3,477)	581	(29,792)
Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest	2,823	-	-	-	2,823	-	-	-	220	3,043
Changes in the net<br>realizable value of agricultural products after<br>harvest	707	-	-	-	707	-	-	-	-	707
Gross<br>profit / (loss)	7,814	9,025	-	9,025	16,839	(8)	-	(140)	(80)	16,611
Gain from disposal<br>of farmlands	902	-	-	-	902	-	-	-	-	902
Net gain from fair<br>value adjustment of investment properties	839	36,026	-	36,026	36,865	(283)	-	-	-	36,582
General and<br>administrative expenses	(1,527)	(2,315)	(99)	(2,414)	(3,941)	16	-	-	55	(3,870)
Selling<br>expenses	(2,810)	(1,326)	-	(1,326)	(4,136)	20	-	-	20	(4,096)
Impairment of<br>associates	-	-	-	-	-	-	-	-	-	-
Other operating<br>results, net	1,791	(52)	-	(52)	1,739	19	-	18	(7)	1,769
Management<br>fees	-	-	-	-	-	-	-	(227)	-	(227)
Profit<br>/ (loss) from operations	7,009	41,358	(99)	41,259	48,268	(236)	-	(349)	(12)	47,671
Share of profit / (loss) of associates and<br>joint ventures	137	7,586	-	7,586	7,723	182	-	-	22	7,927
Segment<br>profit / (loss)	7,146	48,944	(99)	48,845	55,991	(54)	-	(349)	10	55,598
							-
Reportable<br>assets	39,908	170,081	485,812	655,893	695,801	(722)	-	-	44,445	739,524
Reportable<br>liabilities	-	-	(434,048)	(434,048)	(434,048)	-	-	-	(173,975)	(608,023)
Net<br>reportable assets	39,908	170,081	51,764	221,845	261,753	(722)	-	-	(129,530)	131,501

F-58

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of the Group for the year ended June 30, 2019:

	06.30.19
		Urban Properties and Investment business (II)
	Agricultural<br>business (I)	Operations<br>Center in Argentina	Operations<br>Center in Israel	Subtotal	Total<br>segment information	Joint<br>ventures (i)	Discontinued<br>operations (ii)	Adjustments<br>(iii)	Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iv)	Total<br>Statement of Income / Financial Position
Revenues	20,522	16,207	-	16,207	36,729	(100)	-	3,990	(567)	40,052
Costs	(17,402)	(3,445)	-	(3,445)	(20,847)	72	-	(4,150)	211	(24,714)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,191	-	-	-	2,191	-	-	-	291	2,482
Changes<br>in the net realizable value of agricultural products after<br>harvest	(46)	-	-	-	(46)	-	-	-	-	(46)
Gross profit / (loss)	5,265	12,762	-	12,762	18,027	(28)	-	(160)	(65)	17,774
Gain<br>from disposal of farmlands	715	-	-	-	715	-	-	-	-	715
Net gain from fair value<br>adjustment of investment<br>properties	-	(42,499)	-	(42,499)	(42,499)	903	-	-	-	(41,596)
General<br>and administrative expenses	(1,641)	(2,874)	(115)	(2,989)	(4,630)	17	-	-	60	(4,553)
Selling<br>expenses	(1,849)	(1,169)	-	(1,169)	(3,018)	8	-	-	12	(2,998)
Other<br>operating results, net	881	(710)	-	(710)	171	208	-	18	(11)	386
Management<br>fees	-	-	-	-	-	-	-	-	-	-
Profit / (loss) from operations	3,371	(34,490)	(115)	(34,605)	(31,234)	1,108	-	(142)	(4)	(30,272)
Share<br>of profit / (loss) of associates and joint ventures	12	(6,656)	-	(6,656)	(6,644)	(1,083)	-	-	-	(7,727)
Segment profit / (loss)	3,383	(41,146)	(115)	(41,261)	(37,878)	25	-	(142)	(4)	(37,999)
Reportable<br>assets	37,245	120,269	576,561	696,830	734,075	(639)	-	-	48,173	781,609
Reportable<br>liabilities	-	-	(496,305)	(496,305)	(496,305)	-	-	-	(148,368)	(644,673)
Net reportable assets	37,245	120,269	80,256	200,525	237,770	(639)	-	-	(100,195)	136,936

F-59

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of the Group for the year ended June 30, 2018:

	06.30.18
		Urban Properties and Investment business (II)
	Agricultural<br>business (I)	Operations<br>Center in Argentina	Operations<br>Center in Israel	Subtotal	Total<br>segment information	Joint<br>ventures (i)	Adjustments<br>(iii)	Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iv)	Total<br>Statement of Income / Financial Position
Revenues	16,570	14,938	-	14,938	31,508	(120)	4,723	(357)	35,754
Costs	(14,098)	(3,039)	-	(3,039)	(17,137)	74	(4,785)	163	(21,685)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	1,646	-	-	-	1,646	5	-	151	1,802
Changes<br>in the net realizable value of agricultural products after<br>harvest	572	-	-	-	572	-	-	-	572
Gross profit / (loss)	4,690	11,899	-	11,899	16,589	(41)	(62)	(43)	16,443
Net<br>gain from fair value adjustment of investment<br>properties	232	21,326	-	21,326	21,558	(1,135)	-	-	20,423
Loss<br>from disposal of farmlands	1,783	-	-	-	1,783	-	-	-	1,783
General<br>and administrative expenses	(1,487)	(2,511)	(84)	(2,595)	(4,082)	43	-	36	(4,003)
Selling<br>expenses	(1,886)	(1,212)	-	(1,212)	(3,098)	17	-	14	(3,067)
Other<br>operating results, net	1,658	(59)	-	(59)	1,599	46	(2)	(4)	1,639
Management<br>fees	-	-	-	-	-	-	(1,568)	-	(1,568)
Profit / (loss) from operations	4,990	29,443	(84)	29,359	34,349	(1,070)	(1,632)	3	31,650
Share<br>of (loss) / profit of associates and joint ventures	40	(4,550)	-	(4,550)	(4,510)	1,249	-	-	(3,261)
Segment profit / (loss)	5,030	24,893	(84)	24,809	29,839	179	(1,632)	3	28,389
Reportable<br>assets	33,109	164,562	606,800	771,362	804,471	637	-	52,949	858,057
Reportable<br>liabilities	-	-	(515,728)	(515,728)	(515,728)	-	-	(152,368)	(668,096)
Net reportable assets	33,109	164,562	91,072	255,634	288,743	637	-	(99,419)	189,961

(i)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(ii)

Includes Ps. (140), Ps. (160) and Ps. (62) corresponding to Expenses and FPC and Ps. 0, Ps. (362) and Ps. (1,567) to management fees, as of June 30, 2020 and 2018, respectively.

(iv)

Includes deferred income tax assets, income tax and MPIT credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of Ps. 18, Ps. 9,321 and Ps. 5,870, as of June 30, 2020, 2019 and 2018, respectively.

F-60

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Agriculture line of business:

The following tables present the reportable segments of the agriculture line of business:

	06.30.20
	Agricultural<br>production	Land<br>transformation and sales	Corporate	Others	Total<br>Agricultural business
Revenues	18,503	-	-	9,768	28,271
Costs	(15,798)	(27)	-	(8,162)	(23,987)
Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest	2,812	-	-	11	2,823
Changes in the net<br>realizable value of agricultural products after<br>harvest	707	-	-	-	707
Gross<br>profit / (loss)	6,224	(27)	-	1,617	7,814
Gain from disposal<br>of farmlands	-	902	-	-	902
Net gain from fair<br>value adjustment of investment properties	-	839	-	-	839
General and<br>administrative expenses	(1,025)	(3)	(191)	(308)	(1,527)
Selling<br>expenses	(1,954)	(1)	-	(855)	(2,810)
Other operating<br>results, net	488	1,038	-	265	1,791
Management<br>fees	-	-	-	-	-
Profit<br>/ (loss) from operations	3,733	2,748	(191)	719	7,009
Share of profit of<br>associates	59	-	-	78	137
Segment<br>profit / (loss)	3,792	2,748	(191)	797	7,146
	-
Investment<br>properties	4,445	-	-	-	4,445
Property, plant<br>and equipment	22,485	193	-	58	22,736
Investments in<br>associates	451	-	-	315	766
Other reportable<br>assets	7,841	356	-	3,764	11,961
Reportable<br>assets	35,222	549	-	4,137	39,908

From all of the Group’s revenues corresponding to Agricultural Business, Ps.19,558 are originated in Argentina and Ps. 8,711 in other countries, principally in Brazil for Ps. 7,835.

From all of the Group’s assets included in the segment corresponding to Agricultural Business, Ps. 14,285 are located in Argentina and Ps. 25,623 in other countries, principally in Brazil for Ps. 20,360.

	06.30.19
	Agricultural production	Land transformation and sales	Corporate	Others	Total Agricultural business
Revenues	11,952	-	-	8,570	20,522
Costs	(10,191)	(26)	-	(7,185)	(17,402)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,185	-	-	6	2,191
Changes<br>in the net realizable value of agricultural products after<br>harvest	(46)	-	-	-	(46)
Gross profit / (loss)	3,900	(26)	-	1,391	5,265
Gain<br>from disposal of farmlands	-	715	-	-	715
Net<br>gain from fair value adjustment of investment<br>properties	-	-	-	-	-
General<br>and administrative expenses	(1,032)	(3)	(295)	(311)	(1,641)
Selling<br>expenses	(1,104)	(2)	-	(743)	(1,849)
Other<br>operating results, net	460	263	-	158	881
Management<br>fees	-	-	-	-	-
(Loss) / Profit from operations	2,224	947	(295)	495	3,371
Share<br>of profit / (loss) of associates	61	-	-	(49)	12
Segment (loss) / profit	2,285	947	(295)	446	3,383
Investment<br>properties	2,836	-	-	-	2,836
Property,<br>plant and equipment	21,767	160	-	826	22,753
Investments<br>in associates	421	-	-	25	446
Other<br>reportable assets	9,120	-	-	2,090	11,210
Reportable assets	34,144	160	-	2,941	37,245

From all of the Group’s revenues corresponding to Agricultural Business, Ps. 13,651 are originated in Argentina and Ps. 6,869 in other countries, principally in Brazil for Ps. 6,376.

From all of the Group’s assets included in the segment corresponding to Agricultural Business, Ps. 14,819 are located in Argentina and Ps. 22,427 in other countries, principally in Brazil for Ps. 20,426.

F-61

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	06.30.18
	Agricultural production	Land transformation and sales	Corporate	Others	Total Agricultural business
Revenues	9,793	-	-	6,777	16,570
Costs	(7,954)	(38)	-	(6,106)	(14,098)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	1,656	-	-	(10)	1,646
Changes<br>in the net realizable value of agricultural products after<br>harvest	572	-	-	-	572
Gross profit / (loss)	4,067	(38)	-	661	4,690
Net<br>gain from fair value adjustment of investment<br>properties	-	232	-	-	232
Loss<br>from disposal of farmlands	-	1,783	-	-	1,783
General<br>and administrative expenses	(946)	(2)	(242)	(297)	(1,487)
Selling<br>expenses	(1,422)	-	-	(464)	(1,886)
Other<br>operating results, net	(22)	1,568	-	112	1,658
Management<br>fees	-	-	-	-	-
Profit / (Loss) from operations	1,677	3,543	(242)	12	4,990
Share<br>of profit / (loss) of associates	42	-	-	(2)	40
Segment profit / (loss)	1,719	3,543	(242)	10	5,030
Investment<br>properties	2,209	-	-	-	2,209
Property,<br>plant and equipment	21,122	141	-	651	21,914
Investments<br>in associates	340	-	-	98	438
Other<br>reportable assets	7,614	-	-	934	8,548
Reportable assets	31,285	141	-	1,683	33,109

From all of the Group’s revenues corresponding to Agricultural Business, Ps. 12,161 are originated in Argentina and Ps. 4,411 in other countries, principally in Brazil for Ps. 4,030.

From all of the Group’s assets included in the segment corresponding to Agricultural Business, Ps. 12,633 are located in Argentina and Ps. 20,476 in other countries, principally in Brazil for Ps. 18,439.

(I)

Urban properties and investments line of business

Below is a summarized analysis of the lines of business of Group’s operations center in Argentina for the fiscal years ended June 30, 2020, 2019 and 2018:

	06.30.20
	Shopping Malls	Offices	Sales and developments	Hotels	International	Corporate	Others	Total
Revenues	6,389	2,539	791	2,176	12	-	84	11,991
Costs	(610)	(155)	(743)	(1,339)	(13)	-	(106)	(2,966)
Gross profit / (loss)	5,779	2,384	48	837	(1)	-	(22)	9,025
Net<br>gain from fair value adjustment of investment<br>properties	(2,266)	24,498	13,111	-	-	-	683	36,026
General<br>and administrative expenses	(892)	(238)	(245)	(393)	(118)	(304)	(125)	(2,315)
Selling<br>expenses	(763)	(91)	(212)	(248)	-	-	(12)	(1,326)
Other<br>operating results, net	(41)	(32)	(29)	(22)	-	-	72	(52)
Management<br>fees	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	1,817	26,521	12,673	174	(119)	(304)	596	41,358
Share<br>of profit / (loss) of associates and joint ventures<br>(**)	-	-	-	-	7,942	-	(356)	7,586
Segment profit / (loss)	1,817	26,521	12,673	174	7,823	(304)	240	48,944
Investment<br>and trading properties	52,868	65,976	34,633	-	331	-	1,552	155,360
Property,<br>plant and equipment	242	1,216	-	2,092	-	-	-	3,550
Investment<br>in associates and joint ventures (*)	-	-	573	-	2,157	-	7,254	9,984
Other<br>reportable assets	119	132	811	28	-	-	97	1,187
Reportable assets	53,229	67,324	36,017	2,120	2,488	-	8,903	170,081

From all the revenues corresponding to the Operations Center in Argentina, Ps. 11,979 are originated in Argentina, and Ps. 12 in the U.S. No external client represents 10% or more of revenue of any of the reportable segments.

From all of the assets corresponding to the Operations Center in Argentina segments, Ps. 167,271 are located in Argentina and Ps. 3,107 in other countries, principally in USA for Ps. 2,488 and Uruguay for Ps. 619.

F-62

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	06.30.19
	Shopping Malls	Offices	Sales and developments	Hotels	International	Corporate	Others	Total
Revenues	9,195	2,408	1,205	3,179	15	-	205	16,207
Costs	(835)	(164)	(568)	(1,709)	(6)	-	(163)	(3,445)
Gross profit	8,360	2,244	637	1,470	9	-	42	12,762
Net<br>gain from fair value adjustment of investment<br>properties	(43,688)	804	782	-	6	-	(403)	(42,499)
General<br>and administrative expenses	(1,017)	(224)	(305)	(529)	(118)	(559)	(122)	(2,874)
Selling<br>expenses	(571)	(107)	(128)	(340)	-	-	(23)	(1,169)
Other<br>operating results, net	(117)	(44)	(308)	123	(26)	-	(338)	(710)
Management<br>fees	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	(37,033)	2,673	678	724	(129)	(559)	(844)	(34,490)
Share<br>of profit / (loss) of associates and joint ventures	-	-	(40)	-	(3,960)	-	(2,656)	(6,656)
Segment profit / (loss)	(37,033)	2,673	638	724	(4,089)	(559)	(3,500)	(41,146)
Investment<br>and trading properties	53,940	33,838	29,904	-	97	-	1,143	118,922
Property,<br>plant and equipment	280	146	-	2,179	194	-	-	2,799
Investment<br>in associates and joint ventures	-	-	477	-	(7,775)	-	5,270	(2,028)
Other<br>reportable assets	121	132	198	28	-	-	97	576
Reportable assets	54,341	34,116	30,579	2,207	(7,484)	-	6,510	120,269

From all the revenues corresponding to the Operations Center in Argentina, included in the segments Ps. 15,678 are originated in Argentina, Ps. 515 are originated in Uruguay and Ps. 15 are originated in USA. No external client represents 10% or more of revenue of any of the reportable segments.

From all of the assets corresponding to the Operations Center in Argentina segments, Ps. 126,960 are located in Argentina and Ps. (6,858) in other countries, principally in USA for Ps. (7,484) and Uruguay for Ps. 627.

	06.30.18
	Shopping Malls	Offices	Sales and developments	Hotels	International	Corporate	Others	Total
Revenues	10,496	1,436	323	2,633	-	-	50	14,938
Costs	(893)	(133)	(160)	(1,800)	-	-	(53)	(3,039)
Gross profit / (loss)	9,603	1,303	163	833	-	-	(3)	11,899
Net<br>gain from fair value adjustment of investment<br>properties	6,745	6,292	7,899	-	-	-	390	21,326
General<br>and administrative expenses	(919)	(232)	(213)	(524)	(127)	(414)	(82)	(2,511)
Selling<br>expenses	(653)	(155)	(62)	(335)	-	-	(7)	(1,212)
Other<br>operating results, net	(113)	(25)	148	(43)	(62)	-	36	(59)
Management<br>fees	-	-	-	-	-	-	-	-
Profit / (Loss) from operations	14,663	7,183	7,935	(69)	(189)	(414)	334	29,443
Share<br>of profit / (loss) of associates and joint ventures	-	-	5	-	(4,763)	-	208	(4,550)
Segment profit / (loss)	14,663	7,183	7,940	(69)	(4,952)	(414)	542	24,893
Investment<br>and trading properties	96,871	30,297	27,092	-	-	-	1,436	155,696
Property,<br>plant and equipment	230	129	-	2,298	213	-	-	2,870
Investment<br>in associates and joint ventures	-	-	481	-	(4,165)	-	8,883	5,199
Other<br>reportable assets	139	132	203	29	-	-	294	797
Reportable assets	97,240	30,558	27,776	2,327	(3,952)	-	10,613	164,562

From all the revenues corresponding to the Operations Center in Argentina, the 100% are originated in Argentina. No external client represents 10% or more of revenue of any of the reportable segments.

From all of the assets corresponding to the Operations Center in Argentina segments, Ps. 167,823 are located in Argentina and Ps. (3,216) in other countries, principally in USA for Ps. (3,953) and Uruguay for Ps. 737 million.

F-63

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of Group’s Operations Center in Israel for the years ended June 30, 2020, 2019 and 2018:

	06.30.20
	Real<br>Estate	Supermarkets	Telecommunications	Insurance	Corporate	Others	Total
Revenues	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-
Gross<br>profit	-	-	-	-	-	-	-
Net gain from fair<br>value adjustment of investment properties	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	(99)	-	(99)
Selling<br>expenses	-	-	-	-	-	-	-
Impairment of<br>associates	-	-	-	-	-	-	-
Other operating<br>results, net	-	-	-	-	-	-	-
Profit<br>/ (Loss) from operations	-	-	-	-	(99)	-	(99)
Share of profit/<br>(loss) of associates and joint ventures	-	-	-	-	-	-	-
Segment<br>profit / (loss)	-	-	-	-	(99)	-	(99)
Reportable<br>assets	164,649	30,240	150,744	3,636	19,282	117,261	485,812
Reportable<br>liabilities	(157,533)	-	(114,196)	-	(120,196)	(42,123)	(434,048)
Net<br>reportable assets	7,116	30,240	36,548	3,636	(100,914)	75,138	51,764

No external client represents 10% or more of the revenue of any of the reportable segments. From all assets corresponding to the Operations Center in Israel segments, Ps. 89,038 are located in USA

(Ps. 79,848 in 2019 and Ps. 83,609 in 2018), Ps. 0 (Ps. 2,130 in 2019 and Ps. 2,512 in 2018) in India and the remaining are located in Israel.

	06.30.19
	Real Estate	Supermarkets	Telecommunications	Insurance	Corporate	Others	Total
Revenues	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-
Gross profit	-	-	-	-	-	-	-
Net<br>gain from fair value adjustment of investment<br>properties	-	-	-	-	-	-	-
General<br>and administrative expenses	-	-	-	-	(115)	-	(115)
Selling<br>expenses	-	-	-	-	-	-	-
Other<br>operating results, net	-	-	-	-	-	-	-
Management<br>fees	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	(115)	-	(115)
Share of profit / (loss) of associates and<br>joint ventures	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	(115)	-	(115)
Reportable<br>assets	326,652	24,775	117,753	24,370	44,716	38,295	576,561
Reportable<br>liabilities	(253,584)	-	(91,292)	-	(136,275)	(15,154)	(496,305)
Net reportable assets	73,068	24,775	26,461	24,370	(91,559)	23,141	80,256
	06.30.18
---	---	---	---	---	---	---	---
	Real Estate	Supermarkets	Telecommunications	Insurance	Corporate	Others	Total
Revenues	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-
Gross profit	-	-	-	-	-	-	-
Net gain from fair value adjustment of investment<br>properties	-	-	-	-	-	-	-
General and administrative expenses	-	-	-	-	(84)	-	(84)
Selling expenses	-	-	-	-	-	-	-
Other operating results, net	-	-	-	-	-	-	-
Management fees	-	-	-	-	-	-	-
Profit / (Loss) from operations	-	-	-	-	(84)	-	(84)
Share of profit / (loss) of<br>associates and joint ventures	-	-	-	-	-	-	-
Segment profit / (loss)	-	-	-	-	(84)	-	(84)
Reportable assets	320.845	31.843	119.199	29.332	51.062	54.519	606.800
Reportable liabilities	(249.429)	-	(92.885)	-	(167.475)	(5.939)	(515.728)
Net reportable assets	71.416	31.843	26.314	29.332	(116.413)	48.580	91.072

F-64

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information about the main subsidiaries

The Group conducts its business through several operating subsidiaries and holdings. The Group considers that the subsidiaries below are the ones with non-controlling interests material to the Group.

	Direct interest of non-controlling interest % (1)	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Net assets	Book value of non-controlling interests
	As of June 30, 2020
Subsidiaries with direct participation of Cresud
IRSA	37.67%	205,717	421,482	143,384	361,16	122,655	65,528
Subsidiaries with indirect participation of Cresud
Brasilagro	66.45%	21,976	8,338	5,121	7,903	17,29	11,489
Elron	38.94%	3,377	3,966	509	142	6,692	4,149
PBC	27.60%	79,327	112,404	26,138	118,789	46,804	19,263
Cellcom<br>(2)	53.80%	54,777	79,796	31,386	74,691	28,496	17,92
Mehadrin	56.25%	13,038	17,839	13,954	3,336	13,587	8,136
IRSA<br>CP	16.73%	14,925	129,578	16,423	52,507	75,573	4,089
	As of June 30, 2019
---	---	---	---	---	---	---	---
Subsidiaries with direct participation of Cresud
IRSA	37.65%	217,372	512,917	113,796	484,449	132,044	82,692
Brasilagro	56.71%	7,616	20,299	3,87	5,654	18,391	-
Subsidiaries with indirect participation of Cresud
Elron	38.94%	4,867	4,059	569	74	8,283	4,977
PBC	31.20%	68,795	254,54	27,675	224,476	71,184	51,423
Cellcom<br>(2)	55.90%	49,475	63,598	29,366	61,927	21,78	13,755
IRSA<br>CP	14.73%	26,443	98,185	6,241	55,899	62,488	3,351
	Revenues	Net income / (loss)	Total comprehensive income / (loss)	Total comprehensive income / (loss) attributable to non-controlling<br>interest	Cash of operating activities	Cash of investing activities	Cash of financial activities	Net Increase (decrease) in cash and cash equivalents	Dividends distribution to non-controlling shareholders
---	---	---	---	---	---	---	---	---	---
	Year ended June 30, 2020
Subsidiaries with direct participation of Cresud
IRSA	95,793	23,731	14,182	9,482	31,113	40,644	(76,125)	(4,368)	(2,283)
Subsidiaries with indirect participation of Cresud
Brasilagro	7,605	2,368	(2,701)	(1,795)	1,295	(706)	9	598	-
Elron<br>(3)	-	(1,774)	(1,864)	5,540	(776)	350	874	448	-
PBC<br>(3)	12,310	12,648	12,165	19,586	6,328	23,872	(20,243)	9,957	1,684
Cellcom<br>(2) (3)	56,076	(2,068)	(2,100)	534	14,914	(7,425)	(6,323)	1,166	-
Mehadrin<br>(3)	1,952	106	123	251	246	(70)	(246)	(70)	17
IRSA<br>CP	8,563	18,153	18,405	1,064	4,890	(2,879)	(3,561)	(1,550)	663
	Year ended June 30, 2019
---	---	---	---	---	---	---	---	---	---
Subsidiaries with direct participation of Cresud
IRSA	107,346	(41,308)	(2,180)	(3,067)	29,111	12,046	(29,879)	11,278	(3,585)
Brasilagro	6,242	2,148	(368)	-	914	(383)	(449)	82	-
Subsidiaries with indirect participation of Cresud
Elron<br>(3)	-	(1,137)	(979)	2,285	(1,089)	223	1,440	574	-
PBC<br>(3)	19,444	7,485	8,155	5,630	9,776	1,154	3,150	14,080	2,516
Cellcom<br>(2) (3)	51,173	(1,640)	(1,656)	(1,456)	10,792	(9,273)	1,794	3,313	-
IRSA<br>CP	15,649	(27,908)	(27,908)	(162)	6,016	(5,338)	(2,833)	(2,155)	1,085

(1)

Corresponds to the direct interest from the Group.

(2)

DIC considers it exercises effective control over Cellcom because DIC is the group with the higher percentage of votes vis-à-vis other shareholders, also taking into account the historic voting performance in the Shareholders’ Meetings.

(3)

Presented within discontinued operations.

Restrictions, commitments and other relevant issues

Analysis of the impact of the Concentration Law

On December 2013, was published in the Official Gazette of Israel the Promotion of Competition and Reduction of Concentration Law N°, 5774-13 (‘the Concentration Law’) which has material implications for IDBD, DIC and its investors, including the disposal of the controlling interest in Clal. In accordance with the provisions of the law, the structures of companies that make public offer of their securities are restricted to two layers of public companies.

F-65

In November 2017, Dolphin IL, a subsidiary of Dolphin Netherlands B.V. acquired all the shares owned by IDBD in DIC (See note 4). Thus, the section required by the aforementioned law for the year 2017 is completed.

Prior to December 31, 2019 the Group lost control over Gav-Yam and in March 2020 it acquired control over Mehadrin, thus complying with the above-mentioned law.

Dolphin arbitration process

There is an arbitration process going on between Dolphin and ETH (previous shareholder of IDBD) in relation to certain issues connected to the control obtainment of IDBD (mainly regarding who had the right of purchase and the price of the acquisition). In the arbitration process the parties have agreed to designate Eyal Rosovshy and Giora Erdinas to promote a mediation. On August 17, 2017, a mediation hearing was held and the parties failed to reach an agreement. On January 31, 2018, the parties agreed to follow the process in court. As of the date of presentation of these Consolidated Financial Statements, there have been no other developments in the process and it is still pending resolution. Management, based on the opinion of its legal advisors, considers that the resolution of the present litigation will not have an adverse effect for Dolphin.

Investments in associates and joint ventures

Changes of the Group’s investments in associates and joint ventures for the fiscal years ended June 30, 2020 and 2019 were as follows:

	06.30.20	06.30.19
Beginning<br>of the year	38,984	56,776
Adjustment previous<br>years (IFRS 9 and IAS 28)	(2,130)	-
Share-holding<br>increase in associates and joint<br>ventures	2,986	751
Capital<br>contribution	3,070	175
Share of profit /<br>(loss)	9,487	(7,661)
Decrease for<br>control obtainment (Note<br>4)	-	(165)
Currency<br>translation adjustment	9	(462)
Cash dividends<br>(i)	(1,987)	(1,866)
Sale of<br>associates	-	(7,727)
Capital<br>reduction	(114)	(723)
Other comprehensive<br>loss	(1,339)	-
Deconsolidation<br>(ii)	31,409	-
Reclassification to<br>held-for-sale	(2,228)	-
Incorporation<br>by business<br>combination	2,710	-
Others	4	(114)
End<br>of the year (iii)	80,861	38,984

(i)

See Note 32.

(ii)

Corresponds to the loss of control over Gav-Yam. See Note 4.

(iii)

Includes Ps. (18) and Ps. (9,321) reflecting interests in companies with negative equity as of June 30, 2020 and 2019, respectively, which are disclosed in “Provisions” (see Note 21).

Below is a detail of the investments and the values of the stake held by the Group in associates and joint ventures for the years ended as of June 30, 2020 and 2019, as well as the Group's share of the comprehensive results of these companies for the years ended on June 30, 2020, 2019 and 2018:

	% of ownership interest held			Value of Group's interest in equity		Group's interest in comprehensive income
Name of the entity	06.30.20	06.30.19	06.30.18	06.30.20	06.30.19	06.30.20	06.30.19	06.30.18
New<br>Lipstick	49.96%	49.96%	49.90%	503	(9,321)	8,217	(3,443)	(5,698)
BHSA<br>(1)	29.91%	29.91%	29.91%	4,385	4,791	(409)	(2,596)	448
Condor<br>(2)	18.89%	18.89%	28.10%	1,594	1,499	129	42	642
PBEL	45.00%	45.40%	45.40%	-	2,131	-	(126)	448
Shufersal<br>(5)	26.02%	26.02%	33.56%	30,263	24,775	5,614	320	-
Quality<br>(3)	50.00%	50.00%	50.00%	2,262	2,013	199	(628)	943
La<br>Rural S.A.	50.00%	50.00%	50.00%	219	109	110	155	(48)
Cresca<br>S.A. (4)	50.00%	50.00%	50.00%	22,254	21	(17,173)	19	1,089
Mehadrin	45.41%	45.41%	45.41%	-	5,216	-	(120)	1,374
Other<br>associates and joint ventures	-	-	-	19,381	7,750	12,809	(1,746)	1,462
Total associates and joint ventures				80,861	38,984	9,496	(8,123)	660

F-66

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following is additional information about the Group's investments in associates and joint ventures:

				Last financial statement issued
Name of the entity	Place of business / Country of incorporation	Main activity	Common shares 1 vote	Share capital (nominal value)	Income / (loss) for the year	Shareholders' equity
New<br>Lipstick	United<br>States	Real<br>Estate	N/A	-	(*) 179	(*) (31)
BHSA<br>(1)	Argentina	Financing	448,689,072	(***) 1,500	(***) (1,272)	(***) 13,186
Condor<br>(2)	United<br>States	Hotel	2,245,100	(*) 232	(*) (9)	(*) 86
PBEL	India	Real<br>Estate	(**) 1	(**) (2)	(**) -	(**) (2)
Shufersal<br>(5)	Israel	Retail	123,917,650	(**) 1,399	(**) 310	(**) 1,930
Mehadrin	Israel	Agriculture	N/A	N/A	N/A	N/A
Gav-Yam	Israel	Real<br>Estate	639,727	(**) 1,356	(**) 411	(**) 3,496
Quality<br>(3)	Argentina	Real<br>Estate	163,039,244	326	370	4,140
La<br>Rural S.A.	Argentina	Event organization<br>and others	714,498	1	224	327
TGLT	Argentina	Real<br>Estate	279,502,813	925	(311)	6,004

N/A: Not applicable.

(1)

BHSA is a commercial bank of comprehensive services that offers a variety of banking and financial services for individuals, small and medium business and large companies. The market price of the share is 17.15 pesos per share. The effect of the treasury shares in the BHSA portfolio is considered for the calculation.

(2)

Condor is an investment company focused on US hotels. The price of its shares as of June 30, 2020 is US$ 4.10 per share

(3)

Quality is dedicated to the exploitation of the San Martín property (former property of Nobleza Piccardo S.A.I.C. and F.).

(4)

Cresca is a joint venture between the Company and Carlos Casado S.A. with agricultural operations in Paraguay.

(5)

Shufersal is a company that has supermarkets and pharmacies in Israel, the market price of the share is NIS 22,59 as of June 30, 2020.

(*)

Amounts presented in millions of US dollars under USGAAP. Condor’s year-end falls on December 31, so the Group estimates their interest will a three-month lag including any material adjustments, if any.

(**)

Amounts in millions of NIS.

(***)

Amounts as of June 30, 2020, prepared in accordance with BCRA’ regulations. For the purpose of the valuation of the investment in the Company, the adjustments necessary to adequate the Financial Statements to IFRS have been considered

New Lipstick

On August 7, 2020, as a consequence of negotiations conducted in the context of an increased lease price effective as of May 2020, as set forth in the lease (hereinafter, “Ground Lease”), Metropolitan (a company where IRSA holds, indirectly, a 49.96% interest) executed an agreement with the Ground Lease lessor to conclude the relationship and terminate the ground lease, abandoning the administration of the building. As a consequence of the foregoing, Metropolitan derecognized the liability associated to the ground lease, as well as all assets and liabilities associated to the building and the administration. Pursuant to such agreement, Metropolitan was fully released from liability except for (i) claims for liabilities prior to June 1, 2020, from those persons who performed works or rendered services in the Building or for Metropolitan and (ii) claims from persons who had an accident in the property after August 7, 2020.

Gav-Yam

Considering that, on June 30, 2020, the market value of Gav-Yam was lower than its carrying value, PBC management considered whether there may be signs of impairment of the investment in such company. Based on the management´s review, with the assistance of external advisors, PBC considered that there was no evidence of investment impairment. Some of the factors considered are listed below:

●

The price of Gav-Yam shares has been significantly volatile since mid-March 2020; therefore, the fact that the market cap of the company was lower than the carrying value as of June 30, 2020 has not been considered as tantamount to a significant or sustained decrease;

●

On August 4, 2020, Aharon Frenkel purchased approximately 8.6% of Gav-Yam´s capital stock at a value of NIS 2,091/share, which circumstance reinforces the management´s conclusions;

●

Gav-Yam income as of March 31, 2020 and June 30, 2020 show that Gav-Yam is a stable company with a high quality and wide-ranging client portfolio.

F-67

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Set out below is summarized financial information of the associates and joint ventures considered material to the Group:

	Current<br>assets	Non-current<br>assets	Current<br>liabilities	Non-current<br>liabilities	Net<br>assets	% of<br>ownership interest held	Interest<br>in associates / joint ventures	Goodwill<br>and others	Book<br>value
	As<br>of June 30, 2020
Associates
BHSA	82,753	46,949	110,120	4,984	14,598	29.91%	4,366	18	4,385
Gav-Yam	45,175	178,576	21,306	126,766	75,679	34.90%	26,412	2,953	29,365
Shufersal	78,963	201,349	98,934	139,116	42,262	26.02%	10,995	19,268	30,263
Joint ventures
Quality<br>Invest (ii)	4	5,948	94	1,402	4,457	50.00%	2,228	33	2,262
	As<br>of June 30, 2019
---	---	---	---	---	---	---	---	---	---
Associates
BHSA	94,534	34,438	96,365	16,458	16,149	29.91%	4,830	38	4,791
PBEL	3,416	918	680	13,057	(9,403)	45.00%	(4,231)	6,363	2,131
Shufersal	55,701	96,324	58,896	58,988	34,141	26.02%	8,884	15,891	24,776
Joint ventures
Quality<br>Invest (ii)	26	5,298	127	1,240	3,957	50.00%	1,979	34	2,013
Mehadrin	12,800	16,491	14,068	4,004	11,219	45.41%	5,096	121	5,217
	Revenues	Net<br>income / (loss)	Total<br>comprehensive income / (loss)	Dividends<br>distributed to non-controlling shareholders	Cash<br>of operating activitie	Cash<br>of investment activities	Cash<br>of financial activities	Net<br>increase / (decrease) in cash and cash equivalents
---	---	---	---	---	---	---	---	---
	Year<br>ended June 30, 2020 (i)
Associates
BHSA	14,031	(1,369)	(1,369)	-	5,012	40	(3,730)	1,322
Gav-Yam	12,435	7,283	5,874	3,862	5,475	(6,161)	17,084	16,398
Shufersal	234,688	5,432	4,844	1,545	23,548	(2,916)	(14,849)	5,783
Joint ventures
Quality<br>Invest (ii)	4	5,948	94	1,402	4,457	1	2,228	33
	Year<br>ended June 30, 2019 (i)
---	---	---	---	---	---	---	---	---
Associates
BHSA	26,166	2,612	2,612	385	12,217	(3,140)	(7,760)	1,317
PBEL	13	(280)	(344)	-	61	257	(329)	(11)
Shufersal	178,319	3,407	3,389	2,635	4,799	(12,412)	1,503	(6,110)
Joint ventures
Quality<br>Invest (ii)	38	(1,256)	(1,256)	-	(133)	-	133	-
Mehadrin	18,656	834	882	-	723	(298)	(1,359)	(934)

(i)

Information under GAAP applicable in the associate and joint ventures´ jurisdiction.

(ii)

In March 2011, Quality acquired an industrial plant located in San Martín, Province of Buenos Aires. The facilities are suitable for multiple uses. On January 20, 2015, Quality agreed with the Municipality of San Martin on certain re zoning and other urban planning matters (“the Agreement”) to surrender a non-significant portion of the land and a monetary consideration of Ps. 40 million, payable in two installments of Ps. 20 each, the first of which was actually paid on June 30, 2015. In July 2017, the Agreement was amended as follows: 1) a revised zoning plan must be submitted within 120 days as from the amendment date, and 2) the second installment of the monetary considerations was increased to Ps. 71 million payables in 18 equal monthly installments. On March 8, 2018, it was agreed with the well-known Gehl Study (Denmark) - Urban Quality Consultant - the elaboration of a Master Plan, generating a modern concept of New Urban District of Mixed Uses.

(iii)

Information under BCRA Standards except for the book value of the interest in the associate, goodwill and others.

BHSA

BHSA is subject to certain restrictions on the distribution of profits, as required by BCRA regulations.

As of June 30, 2020, BHSA has a remnant of 35.2 million Class C treasury shares of a par value of Ps. 1 received in 2009 as a result of certain financial transactions. The Annual Shareholders' Meeting decided to allocate 35.1 million of such shares to an employee compensation plan pursuant to Section 67 of Law 26,831. The remaining shares belong to third party holders of Stock Appreciation Rights, who have failed to produce the documentation required for redemption purposes. As of June 30, 2020, considering the effect of such treasury shares, the Group’s interest in BHSA amounts to 29.91%.

The Group estimated that the value in use of its investment in BHSA as of June 30, 2020 and 2019 amounted to Ps. 6,387, Ps. 5,944, respectively. The value in use was estimated based on the present value of future business cash flows. The main assumptions used were the following:

The Group considered 7 years as the horizon for the projection of BHSA cash flows.

The “Private BADLAR” interest rate was projected based on internal data and information gathered from external advisors.

The projected exchange rate was estimated in accordance with internal data and external information provided by independent consultants.

The discount rate used to discount actual dividend flows was 13.82% in 2020 and 14.37% in 2019.

F-68

The sensitivity to a 1% increase in the discount rate would be a reduction in the value in use of Ps. 577 for 2020 and of Ps. 542 for 2019.

Puerto Retiro (joint venture):

At present, this 8.3-hectare plot of land, is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.

Puerto Retiro was involved in a judicial bankruptcy action brought by the National Government. The current Board of Directors would not be held personally liable with regard to this action. Management and legal counsel of the Company believe that there are sufficient legal and technical arguments to consider that the petition for extension of the bankruptcy case will be dismissed by the court. However, in view of the current status of the action, its result cannot be predicted.

Moreover, Tandanor filed a civil action against Puerto Retiro S.A. and the other defendants in the criminal case for violation of Section 174 (5) based on Section 173 (7) of the Criminal Code of Argentina. Such action seeks -on the basis of the nullity of the decree that approved the bidding process involving the Dársena Norte property- the restitution of the property and a reimbursement in favor of Tandanor for all such amounts it has allegedly lost as a result of a suspected fraudulent transaction involving the sale of the property. Puerto Retiro has presented the allegation on the merit of the evidence, highlighting that the current shareholders of Puerto Retiro did not participate in any of the suspected acts in the criminal case since they acquired the shares for consideration and in good faith several years after the facts told in the process. Likewise, it was emphasized that the company Puerto Retiro is foreign to the bidding / privatization carried out for the sale of Tandanor shares. On September 7, 2018, the Oral Federal Criminal Court No. 5 rendered a decision. According to the sentence read by the president of the Court, Puerto Retiro won the preliminary objection of limitation filed in the civil action. However, in the criminal case, where Puerto Retiro is not a party, it was ordered, among other issues, the confiscation (“decomiso”) of the property owned by Puerto Retiro known as Planta I. The grounds of the Court`s judgment were read on November 11, 2018. From that moment, all the parties were able to present the appeals. Given this fact, an extraordinary appeal was filed, which was rejected, and as a result, a complaint was filed for a rejected appeal, which was granted. Consequently, the appeal is under study in the Argentine Supreme Court of Justice.

In the criminal action, the claimant reported the violation by Puerto Retiro of the injunction ordered by the criminal court consisting in an order to stay (“prohibición de innovar”) and not to contract with respect to the property disputed in the civil action. As a result of this complaint, the Federal Oral Court No. 5 formed an incident and ordered and executed the closure of the property where the lease agreements were being executed (a heliport and a mooring), in order to enforce compliance with the measure before mentioned. As a result of this circumstance, it was learned that the proceedings were turned over to the Criminal Chamber for the allocation of the court to investigate the possible commission of a crime of disobedience. As of the date of issuance of these financial statements there has been no news about the progress of this cause.

Faced with the evolution of the legal cases that affect it and based on the reports of its legal advisors, Puerto Retiro Management has decided to register in fiscal year 2019 an allowance equivalent to 100% of the book value of its investment property, without prejudice to reverse it when a favorable ruling is obtained in the interposed actions.

Investment properties

Changes in the Group’s investment properties according to the fair value hierarchy for the years ended June 30, 2020 and 2019 were as follows:

	06.30.20		06.30.19
	Level 2	Level 3	Level 2	Level 3
Fair value at the beginning of the year	48,892	311,770	41,034	350,480
Reclassifications<br>of previous periods (IFRS 16)	-	459	-	-
Currency<br>translation adjustment	(721)	57,552	63	(3,230)
Additions	3,898	1,979	5,561	6,939
Additions<br>of capitalized leasing costs	4	17	12	5
Depreciation<br>of capitalized leasing costs (i)	(6)	(10)	(9)	(5)
Transfers	6,584	(30,984)	914	1,222
Disposals	(1,873)	(14,439)	(2,285)	(3,957)
Balance<br>incorporated by business combination	-	263	-	-
Deconsolidation<br>(ii)	(1,824)	(167,776)	-	-
Capitalized<br>finance costs	-	-	234	17
Net<br>gain / (loss) from fair value adjustment	30,706	3,295	3,368	(39,701)
Fair value at the end of the year	85,660	162,126	48,892	311,770

(i)

Amortization charges of capitalized leasing costs were included in “Costs” in the Statements of Income (Note 27)

(ii)

Ps. 1,694 corresponds to La Maltería and Ps. 155,846 to Gav-Yam.

F-69

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following is the balance by type of investment property of the Group as of June 30, 2020 and 2019:

	06.30.20	06.30.19
Leased<br>out farmland	4,445	2,836
Rental<br>properties	205,809	309,130
Undeveloped<br>parcels of land	29,642	36,293
Properties<br>under development	7,890	12,403
Total	247,786	360,662

Certain investment property assets of the Group have been mortgaged or restricted to secure some of the Group’s borrowings and other payables. Book amount of those properties amounts to Ps. 19,562 and Ps. 16,697 as June 30, 2020 and 2019, respectively.

The following amounts have been recognized in the Statements of Income:

	06.30.20	06.30.19	06.30.18
Rental<br>and services income	23,825	32,839	30,002
Direct<br>operating expenses	(9,671)	(9,027)	(8,289)
Development<br>expenses	130	(94)	(4,528)
Net<br>realized gain from fair value adjustment of investment<br>property	1,163	822	568
Net<br>unrealized gain / (loss) from fair value adjustment of investment<br>property	32,706	(41,458)	25,357

See Note 5 (liquidity schedule) for detail of contractual commitments related to investment properties.

Valuation processes

The Group’s investment properties were valued at each reporting date by independent professionally qualified appraisers who hold a recognized relevant professional qualification and have experience in the locations and segments of the investment properties appraised. For all investment properties, their current use equates to the highest and best use.

Each business (or operations center, as appropriate) has a team, which reviews the appraisals performed by the independent appraisers (the “review team”). The review team: i) verifies all major and important assumptions relevant to the appraisal in the valuation report from the independent appraisers; ii) assesses property valuation movements compared to the valuation report from the prior period; and iii) holds discussions with the independent appraisers.

Changes in Level 2 and 3 fair values, if any, are analyzed at each reporting date during the valuation discussions between the review team and the independent appraisers. In the case of the Operations Center in Argentina, the Board of Directors ultimately approves the fair value calculation for recording into the Financial Statements. In the case of the Operations Center in Israel, the appraisals are examined by Israel Management and reported to the Financial Statements Committee.

Valuation techniques used for the estimation of fair value of the investment property

Agricultural business

For all leases of agricultural land with a total valuation of Ps. 4,514 and Ps. 6,027 for fiscal years ended on June 30, 2020 and 2019, respectively, the valuation was determined using comparable values. Sale prices of comparable properties are adjusted considering the specific aspects of each property, the most relevant premise being the price per hectare.

Urban properties and investments business

Argentina operations center

The Group has defined valuation techniques according to the characteristics of each property and the type of market in which these assets are located, in order to maximize the use of observable information available for the determination of fair value.

For the Shopping Malls there is no liquid market for the sale of properties with these characteristics that can be taken as a reference of value. Likewise, the Shopping Malls, being a business denominated in pesos, are highly related to the fluctuation of macroeconomic variables in Argentina, the purchasing power of individuals, the economic cycle of Gross Domestic Product (GDP) growth, the evolution of inflation, among others. Consequently, the methodology adopted by the Group for the valuation of Shopping Malls is the discounted cash flow model (“DCF”), which allows the volatility of the Argentine economy to be taken into account and its correlation with the revenue streams of the Malls and the inherent risk of the Argentine macroeconomy. The DCF methodology contemplates the use of certain unobservable valuation assumptions, which are determined reliably based on the information and internal sources available at the date of each measurement. These assumptions mainly include the following:

F-70

●

Future cash flow projected income based on the current locations, type and quality of the properties, backed by the lease agreements that the Company has signed with its tenants. The Company's revenues are equal to the higher of: i) a Minimum Insured Fixed Value (“VMA”) and ii) a percentage of the tenant's sales in each Shopping Mall. Accordingly, estimates of the evolution of the Gross Domestic Product (“GDP) and the Inflation of the Argentine economy, as provided by an external consultant were used to estimate the evolution of tenant sales, which have a high correlation with these macroeconomic variables. These macroeconomic projections were contrasted with the projections prepared by the International Monetary Fund (“IMF”), the Organization for Economic Cooperation and Development (“OECD”) and with the Survey of Market Expectations (“REM”), which consists of a Survey prepared by the Central Bank of Argentina (BCRA) aimed to local and foreign specialized analysts in order to allow a systematic follow-up of the main short and medium term macroeconomic forecasts on the evolution of the Argentine economy.

●

The income from all Shopping Malls was considered to grow with the same elasticity in relation to the evolution of the GDP and the projected inflation. The specific characteristics and risks of each Shopping Mall are captured through the use of the historical average EBITDA Margin of each of them.

●

Cash flows from future investments, expansions or improvements in Shopping Mall were not contemplated.

●

Terminal value: a perpetuity calculated from the cash flow of the last year of useful life was considered.

●

The cash flow for concessions was projected until the termination date of the concession stipulated in the current contract.

●

Given the prevailing inflationary context and the volatility of certain macroeconomic variables, a reference long term interest rate in pesos is not available to discount the projected cash flows from shopping malls. Consequently, the projected cash flows were dollarized through the future ARS / US$ exchange rate curve provided by an external consultant, which are contrasted to assess their reasonableness with those of the IMF, OECD, REM and the On-shore Exchange Rate Futures Market (ROFEX). Finally, dollarized cash flows were discounted with a long-term dollar rate, the weighted average capital cost rate (“WACC”), for each valuation date.

●

The estimation of the WACC discount rate was determined according to the following components:

a) United State Governments Bonds risk-free rate;

b) Industry beta, considering comparable companies from the United States, Brazil, Chile and Mexico, in order to contemplate the Market Risk on the risk-free rate;

c) Argentine country risk considering the EMBI + Index; and

d) Cost of debt and capital structure, considering that information available from the Argentine corporate market (“blue chips”) was determined as a reference, since sovereign bonds have a history of defaults. Consequently, and because IRSA CP, based on its representativeness and market share represents the most important entity in the sector, we have taken its indicators to determine the discount rate.

For offices, other rental properties and plot of lands, the valuation was determined using transactions of comparable market assets, since the market for offices and land banks in Argentina is liquid and has market transactions that can be taken as reference. These values are adjusted to the differences in key attributes such as location, property size and quality of interior fittings. The most significant input to the comparable market approach is the price per square meter that derives from the supply and demand in force in the market at each valuation date.

Since September 2019, the real estate market has faced certain changes in terms of its operation as a consequence of the implementation of regulations applicable to the foreign exchange market. In general terms, the measure adopted on September 1, 2019 by the BCRA sets forth that exporters of goods and services should settle foreign currency from abroad in the local exchange market 5 days after the collection of such funds, at the latest. Furthermore, it provides that legal entities residing in Argentina may buy foreign currency without restrictions for imports or payments of debts on the maturity date thereof, although they shall apply for the BCRA´s prior authorization for the purposes of: buying foreign currency in order to form external assets, prepaying debts, making remittances of profits and dividends abroad or transferring funds abroad. Likewise, pursuant to such regulations, access to the market by natural persons for the purchase of dollars was restricted. Afterwards, the BCRA implemented stricter measures, further limiting access to the foreign exchange market (see Note 39 to these consolidated financial statements).

At present, purchase and sales transactions for office buildings may be settled in Pesos (by using an implicit foreign exchange rate higher than the official one) or in dollars. However, due to the restrictions applicable to access to dollars to which market participant are subject (most of them are domestic companies and local subsidiaries of foreign companies, all of them subject to the foreign exchange restrictions described above), the chances that a natural person or legal entity may obtain the funds required to execute a transaction in dollars are remote. Consequently, the most probable scenario is that any sale of office buildings/reserves be settled in Pesos at an implicit foreign exchange rate higher than the official one. This is evidenced by the transactions consummated by the Company prior to and after the closing of these financial statements. (See Note 4 and Note 39 to the consolidated financial statements). Therefore, the Company has valued its office buildings and land reserves as of the fiscal year-end taking into account the circumstances described above, which represents a gain with respect to the values previously recorded.

F-71

In certain situations, it is complex to determine reliably the fair value of developing properties. In order to assess whether the fair value of a developing property can be determined reliably, management considers the following factors, among others:

● The provisions of the construction contract.

● The stage of completion.

● Whether the project / property is standard (typical for the market) or non-standard.

● The level of reliability of cash inflows after completion.

● The specific development risk of the property.

● Previous experience with similar constructions.

● Status of construction permits.

There were no changes in the valuation techniques during the year.

Israel operations center

Valuations were performed using the DCF method. The discount rates used by appraisers in Israel are mainly in the range of 7% - 9% and are established taking into account the type of property, purpose, location, the level of rent compared to the market price and quality of the tenants.

When determining the value of office buildings, buildings aimed at to the technology sector and commercial spaces (mainly located in the city center and in high-tech office parks with high-quality tenants), the discount rates mainly used are between 7% to 9%, while for workshop, storage and industry buildings (mainly located in peripheral areas of the city) they are valuated using a discount rate between 7.75% -9%.

There were no changes in valuation techniques during the years ended June 30, 2020 and 2019.

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3):

				Sensitivity (i)
				06.30.20		06.30.19
Description	Valuation technique	Parameters	Range fiscal year 2019 / (2018)	Increase	Decrease	Increase	Decrease
Rental<br>properties in Israel - Offices (Level 3)	Discounted<br>cash flows	Discount<br>rate	7.50%<br>to 9.75% /	(406)	539
			(7.00%<br>to 9.00% )			(3,816)	4,353
		Weighted<br>average rental value per square meter (m2) per month, in<br>NIS	NIS 77<br>/ (NIS 63)/	366	(366)
						6,713	(6,713)
Rental<br>properties in Israel - Commercial use (Level 3)	Discounted<br>cash flows	Discount<br>rate	7.50%<br>to 7.80% /	(198)	261
			(7.00%<br>to 9.00%)			(1,931)	2,207
		Weighted<br>average rental value per square meter (m2) per month, in<br>NIS	NIS 41<br>/ (NIS 87)	165	(165)
						3,047	(3,047)
Rental<br>properties in Israel - Industrial use (Level 3)	Discounted<br>cash flows	Discount<br>rate	N/A	N/A	N/A
			(7.75%<br>to 9.00%)			(717)	815
		Weighted<br>average rental value per square meter (m2) per month, in<br>NIS	N/A /<br>(NIS 31)	N/A	N/A
						1,731	(1,731)
Rental<br>properties in USA - HSBC Building (Level 3)	Discounted<br>cash flows	Discount<br>rate	4.75% / (6.25%)	(6,059)	7,507	(2,181)	2,310
		Weighted<br>average rental value per square meter (m2) per month, in<br>US$	$US 79 /(US$ 73)	6,284	(6,284)
						4,772	(4,772)
Rental<br>properties in USA - Las Vegas project (Level 3)	Discounted<br>cash flows	Discount<br>rate	6.50% / (8.50%)	(1,792)	2,512	(467)	493
		Weighted<br>average rental value per square meter (m2) per month, in<br>US$	$US 25 /(US$ 33)	(1,307)	1,307
						586	(586)
Shopping<br>Malls in Argentina (Level 3)	Discounted<br>cash flows	Discount<br>rate	12.18% / (12.10% )	(4,252)	5,207	(4,668)	5,821
		Growth<br>rate	2.3% / (3%)	2,027	(1,655)	2,195	(1,761)
		Inflation	(*)	8,852	(7,282)	4,088	(3,742)
		Devaluation	(*)	(4,115)	5,030	(4,338)	6,237
Plot<br>of land in Argentina (Level 3)	Comparable<br>with incidence adjustment	Value<br>per square meter (m2)	Ps.<br>30,148 / (Ps. 14,312)	2,159	(2,159)	1,336	(1,336)
		%<br>of incidence	30% / (30%)	7,196	(7,196)	4,458	(4,458)
Properties<br>under development in Israel (Level 3)	Estimated<br>fair value of the investment property after completing the<br>construction	Weighted<br>average construction cost per square meter (m2) in NIS	5,787<br>NIS/m2 /
			(5,787<br>NIS/m2)
		Annual<br>weighted average discount rate	7.00%<br>to 9.00% /	(1,307)	1,307
			(7.00%<br>to 9.00%)			(918)	918

(*) For the next 5 years, an average AR$ / US$ exchange rate with an upward trend was considered, starting at Ps. 64.39 (corresponding to the year ended June 30, 2020) and arriving at Ps. 262.56. In the long term, a nominal devaluation rate of 2.1% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 47.9% (corresponding to the year ended June 30, 2020) and stabilizes at 23.2% after 5 years.

(i) Considering an increase or decrease of: 100 points for the discount and growth rate in Argentina, 10% for the incidence and inflation, 10% for the devaluation, 50 points for the discount rate of Israel and USA, and 1% for the value of the m2.

F-72

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

10.

Property, plant and equipment

Changes in the Group’s property, plant and equipment for the years ended June 30, 2018 and 2017 were as follows:

	Owner<br>occupied farmland (i)	Bearer<br>plant (v)	Buildings<br>and facilities	Machinery<br>and equipment	Communication<br>networks	Others<br>(ii)	Total
Balance<br>as of June 30, 2018	19,591	1,256	5,275	822	23,020	6,096	56,060
Costs	21,568	1,562	12,585	2,501	93,993	11,755	143,964
Accumulated<br>depreciation	(1,977)	(306)	(7,310)	(1,679)	(70,973)	(5,659)	(87,904)
Net<br>book amount at June 30, 2018	19,591	1,256	5,275	822	23,020	6,096	56,060
Currency<br>translation adjustment	(588)	(59)	97	103	(593)	(390)	(1,430)
Additions	854	626	591	158	4,951	2,532	9,712
Transfers	702	-	1,023	20	-	-	1,745
Disposals	(469)	-	(2)	(3)	(46)	(26)	(546)
Depreciation charge<br>(iii)	(246)	(317)	(549)	(151)	(4,082)	(1,948)	(7,293)
Balance<br>as of June 30, 2019	19,844	1,506	6,435	949	23,250	6,264	58,248
Costs	22,067	2,129	14,294	2,779	98,305	13,871	153,445
Accumulated<br>depreciation	(2,223)	(623)	(7,859)	(1,830)	(75,055)	(7,607)	(95,197)
Net<br>book amount at June 30, 2019	19,844	1,506	6,435	949	23,250	6,264	58,248
Additions	819	336	546	88	3,679	1,911	7,379
Disposals	(129)	-	(70)	(6)	(3,442)	(119)	(3,766)
Desconsolidation	-	-	(455)	(639)	-	(48)	(1,142)
Incorporation by<br>business combination	7,698	-	1,738	406	-	357	10,199
Currency<br>translation adjustment	(955)	(256)	481	203	3,823	1,323	4,619
Transfers	(1,438)	(2)	(1,228)	(37)	406	(407)	(2,706)
Depreciation charge<br>(i)	(292)	(369)	(514)	(115)	(4,986)	(2,010)	(8,286)
Balance<br>as of June 30, 2020	25,547	1,215	6,933	849	22,730	7,271	64,545
Costs	32,971	2,029	14,592	5,106	108,657	14,601	177,956
Accumulated<br>depreciation	(7,424)	(814)	(7,659)	(4,257)	(85,927)	(7,330)	(113,411)
Net<br>book amount at June 30, 2020	25,547	1,215	6,933	849	22,730	7,271	64,545

(i)

On January 9, 2017, the INRA released a report declaring that Las Londras farm (4565 ha.), with a book value of Ps. 581 as of June 30, 2020, is within the area of the “Guarayos Forestry Reserve” and establishes that the property of Agropecuaria Acres del Sud S.A. should be reduced to 50 hectares, while the remaining acreage would be reverted upon as a fiscal land once the process is concluded. It should be noted that the report is preliminary and is subject to appeal by the interested parties. The Company exercising its rights presented an administrative filing and within the associations of producers that the company is part of. Recently a census was ordered in the affected area, but no definitive resolution was issued to delimit the reservation. At the same time, a claim was made to our sellers to respond for eviction by virtue of the declarations and guarantees granted at the time of the sale of the property.

(ii)

Includes furniture and fixtures and vehicles.

(iii)

Amortization charge was recognized in the amount of Ps. 6,361 and Ps. 6,062 under "Costs", in the amount of Ps. 844 and Ps. 440 under "General and administrative expenses" and Ps. 1,650 and Ps. 123 under "Selling expenses" as of June 30, 2019 and 2018, respectively in the Statements of Income (Note 27) and Ps. 794 and Ps. 628 were capitalized as part of biological assets’ cost. In addition, a charge of Ps. 982 and Ps. 2,368 was recognized under "Discontinued operations" as of June 30, 2020 and 2019, respectively.

(iv)

See Note 4. Includes other non-significant business combinations.

(v)

Corresponds to the plantation of sugarcane with a useful life of more than one year.

11.

Trading properties

Changes in the Group’s trading properties for the fiscal years ended June 30, 2020 and 2019 were as follows:

	Completed<br>properties	Properties<br>under development (i)	Undeveloped<br>properties	Total
As<br>of June 30, 2018	6,293	13,051	4,432	23,776
IFRS 15<br>adjustments	(1,677)	(7,285)	-	(8,962)
Additions	-	3,879	66	3,945
Currency<br>translation adjustment	(682)	(537)	(234)	(1,453)
Transfers	3,736	(3,017)	(662)	57
Impairment	-	-	(49)	(49)
Capitalized finance<br>costs	-	18	-	18
Disposals	(4,779)	(3,534)	-	(8,313)
As<br>of June 30, 2019	2,891	2,575	3,553	9,019
Additions	26	1,766	606	2,398
Capitalized finance<br>costs	-	100	-	100
Currency<br>translation adjustment	325	36	585	946
Transfers	1,333	(1,066)	(36)	231
Desconsolidation	-	(167)	-	(167)
Disposals	(2,396)	(2,353)	(57)	(4,806)
As<br>of June 30, 2020	2,179	891	4,651	7,721
	06.30.20	06.30.19
---	---	---
Non-current	5,228	8,456
Current	2,493	563
Total	7,721	9,019

(i) Includes Zetol and Vista al Muelle plots of land, which have been mortgaged to secure Group's borrowings. The net book value amounted to Ps. 438 as of June 30, 2020 and 2019, respectively. Additionally, the Group has contractual obligations not provisioned related to these plot of lands committed when certain properties were acquired or real estate projects were approved, and amount to Ps. 465 and Ps. 622, respectively. Both projects are expected to be completed in 2029.

F-73

12.

Intangible assets

Changes in the Group’s intangible assets for the years ended June 30, 2020 and 2019 were as follows:

	Goodwill business	Trademarks	Licenses	Customer relations	Information systems and software	Contracts and others	Total
Balance as of June 30, 2018	7,649	7,365	2,816	5,508	4,028	2,773	30,139
Costs	7,649	7,820	10,463	16,577	7,530	7,270	57,309
Accumulated<br>depreciation	-	(455)	(7,647)	(11,069)	(3,502)	(4,497)	(27,170)
Net book amount at June 30, 2018	7,649	7,365	2,816	5,508	4,028	2,773	30,139
Assets incorporated by business combination<br>(i)	-	-	-	-	34	-	34
Impairment	(198)	-	-	-	-	-	(198)
Currency translation<br>adjustment	(204)	(214)	(105)	(334)	(95)	57	(895)
Transfers	-	-	-	-	3	(3)	-
Additions	-	-	-	16	1,648	2,357	4,021
Disposals	-	-	-	-	(66)	-	(66)
Depreciation charge (i)	-	(135)	(232)	(1,797)	(1,405)	(1,457)	(5,026)
Balance as of June 30, 2019	7,247	7,016	2,479	3,393	4,147	3,727	28,009
Costs	7,247	7,605	10,358	16,259	9,053	9,682	60,204
---	---	---	---	---	---	---	---
Accumulated<br>depreciation	-	(589)	(7,879)	(12,866)	(4,906)	(5,955)	(32,195)
Net book amount at June 30,<br>2019	7,247	7,016	2,479	3,393	4,147	3,727	28,009
Additions	-	-	-	-	1,692	3,192	4,884
Disposals	-	-	-	(19)	(147)	-	(166)
Deconsolidation	(3,508)	-	-	-	(24)	-	(3,532)
Transfers	1	-	-	-	10	(69)	(58)
Assets incorporated<br>by business combination	12	-	-	41	20	-	73
Currency translation<br>adjustment	2,515	1,327	426	463	719	745	6,195
Depreciation charge (i)	-	(131)	(300)	(1,214)	(1,836)	(1,574)	(5,055)
Balance<br>as of June 30, 2020	6,267	8,212	2,605	2,664	4,581	6,021	30,350
Costs	6,267	9,066	12,153	25,547	8,659	14,803	76,495
Accumulated<br>depreciation	-	(854)	(9,548)	(22,883)	(4,078)	(8,782)	(46,145)
Net<br>book amount at June 30, 2020	6,267	8,212	2,605	2,664	4,581	6,021	30,350

(i)

Amortization charge was recognized in the amount of Ps. 369 and Ps. 1,133 under "Costs", in the amount of Ps. 1,780 and Ps. 2,438 under "General and administrative expenses" and Ps. 2,907 and Ps. 2,409 under "Selling expenses" as of June 30, 2020 and 2019, respectively in the Statements of Income (Note 27). In addition, a charge of Ps. 569 was recognized under "Discontinued operations" as of June 30, 2019.

The goodwill assigned to real estate in Israel amounts to NIS 268 (Ps. 5,868 at the exchange rate at the end of the financial year 2020), the one assigned to supermarkets amounted to NIS 192 and the assigned to Israel real state amounted to NIS 113. The rest is goodwill that is allocated to the real estate segment of Argentina.

Goodwill impairment test

The Group performs an annual impairment test of the goodwill. For fiscal year 2020, the recoverable value obtained for said test corresponding to the CGUs where the goodwill is assigned (Israel's Telecommunications) was calculated based on the fair value (market value) minus the costs of sale.

For the fiscal year 2019, based on the significant decrease in the market value of Cellcom and its results in the last financial year, caused by the greater competition in the cell phone market in Israel as a result of the entry of new competitors, the Group calculated the recoverable value at the end of the year of the telecommunications CGU based on the value in use of the assets. This test resulted in the goodwill attributable to Cellcom for an amount of Ps. 4,919 (NIS 268) being recoverable.

The value in use as of June 30, 2019, was determined by an independent appraiser and was estimated at Ps. 90,601 (NIS 4,936).

The cash flow was calculated based on the budgets approved by management covering a period of 5 years. Subsequent cash flows were estimated based on the long-term growth rate. The main data and assumptions used in the calculation of the value in use were the following:

	06.30.19
Net value of the<br>CGU net of taxes	NIS<br>294
Value of the net<br>operating assets of the telecommunications CGU of Israel (including<br>brands and excluding goodwill)	NIS<br>3,668
Value of goodwill<br>of the CGU	NIS<br>268
Annual discount<br>rate after tax	8.5%
Long-term growth<br>rate	1.5%
Long-term market<br>share	25%
ARPU (average<br>monthly income per user) during the representative term (excludes<br>income from international hosting and roaming)	NIS<br>55.50

F-74

The recoverable amount of the CGU would be equal to the book value in the scenarios in which the relevant variables are the following, in the event that the rest of the variables remain constant:

Annual net discount<br>rate after taxes	9.20%
ARPU (average<br>monthly income per user) during the representative term (excludes<br>income from international hosting and roaming)	NIS<br>53

13.

Rights of use of assets

Below is the composition of the rights of use of the Group´s assets as of June 30, 2020 and June 30, 2019:

	06.30.20	06.30.19
Farmland	2,182	-
Offices, shopping<br>malls and other buildings	4,431	-
Communication<br>networks	11,846	-
Machinery and<br>equipment	37	-
Others	5,111	-
Right-of-use<br>assets	23,607	-
Non-current	23,607	-
Total	23,607	-

Changes in the Group´s rights of use during the fiscal year ended June 30, 2020, were as follows:

	06.30.20
IFRS<br>16 inicial adjustments	17,627
Additions<br>(i)	9,537
Disposals	(4)
Transfer	177
Previsions	74
Amortization<br>charges	(5,800)
Currency<br>translation adjustment	1,915
Deconsolidation	(45)
Valorization	126
Total saldo al cierre	23,607

(i) Includes incorporation by business combination

Depreciation charge for rights of use is detailed below:

	06.30.20	06.30.19
Farmland	273	-
Offices, shopping<br>malls and other buildings	579	-
Communication<br>networks	3,397	-
Others	1,096	-
Depreciation<br>charge of right-of-use assets	5,345	-

Other charges to income related to rights of use were as follows:

	06.30.20
Right-of-use<br>interests	(134)
Results<br>from short-term leases	19,610
Results from<br>variable leases not recognized as lease liabilities	797

The average discount rate and the term of liability for lease recognized as of June 30, 2020 are detailed below:

Agricultural business		Operations Center Argentina		Operations Center Israel
Average discount rate	Maturity date	Average discount rate	Maturity date	Average discount rate	Maturity date
6.9%	2022-2050	10.61%	2023-2041	3%	2022-2090

F-75

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

14.

Biological assets

Changes in the Group’s biological assets and their allocation to the fair value hierarchy for the years ended June 30, 2020 and 2019 were as follows:

	Agricultural business
	Sown land-crops	Sugarcane fields		Breeding cattle and cattle for sale	Other cattle	Others	Total
	Level<br>1	Level<br>3	Level<br>3	Level<br>2	Level<br>2	Level<br>1
Balance as of June 30, 2018	142	632	1,080	2,328	134	35	4,351
Non-current<br>(Production)	-	-	-	2,092	39	35	2,166
Current<br>(Consumable)	142	632	1,080	236	95	-	2,185
Balance as of June 30, 2018	142	632	1,080	2,328	134	35	4,351
Purchases	-	-	-	145	362	-	507
Changes<br>by transformation	(142)	142	-	-	-	-	-
Initial<br>recognition and changes in the fair value of biological assets<br>(i)	-	1,76	594	(11)	120	-	2,463
Decrease<br>due to harvest	-	(7,899)	(2,622)	-	-	-	(10,521)
Sales	-	-	-	(762)	(3)	-	(765)
Consumptions	-	-	-	(6)	(414)	(5)	(425)
Costs<br>for the year	151	7,259	2,156	895	17	7	10,485
Foreign<br>exchange gain / (loss)	-	2	(31)	(38)	-	-	(67)
Balance as of June 30, 2019	151	1,896	1,177	2,551	216	37	6,028
Non-current<br>(Production)	-	-	-	1,877	29	37	1,943
---	---	---	---	---	---	---	---
Current<br>(Consumable)	151	1,896	1,177	674	187	-	4,085
Balance as of June 30, 2019	151	1,896	1,177	2,551	216	37	6,028
Transfers	(156)	156	-	-	-	-	-
Purchases	-	-	-	189	119	-	308
Initial<br>recognition and changes in the fair value of biological assets<br>(i)	-	1,412	1,338	196	83	-	3,029
Decrease<br>due to harvest	-	(10,249)	(3,712)	-	-	-	(13,961)
Sales	-	-	-	(1,731)	(1)	-	(1,732)
Consumptions	-	-	-	(4)	(386)	(8)	(398)
Costs<br>for the period year	473	8,122	2,551	1,157	-	5	12,308
Incorporation<br>by business combination	-	67	-	-	-	-	67
Foreign<br>exchange gain / (loss)	(206)	(251)	(247)	(66)	-	-	(770)
Balance as of June 30, 2020	262	1,153	1,107	2,292	31	34	4,879
Non-current<br>(Production)	-	-	-	1,830	29	34	1,893
Current<br>(Consumable)	262	1,153	1,107	462	2	-	2,986
Balance as of June 30, 2020	262	1,153	1,107	2,292	31	34	4,879

(i)

Biological assets with a production cycle of more than one year (that is, cattle) generated “Initial recognition and changes in fair value of biological assets” amounting to Ps. 279 and Ps. 109 for the fiscal years ended June 30, 2020 and 2019, respectively. For the fiscal years ended June 30, 2020 and 2019, amounts of Ps. 292 and Ps. (100), was attributable to price changes, and amounts of Ps. (13) and Ps. 209, was attributable to physical changes generated by production result, respectively.

Crops and oilseeds

The Group’s crops generally include crops and oilseeds (corn, wheat, soybean and sunflower) as well as peanut. The Group measures biological assets that have attained significant biological growth at fair value less costs to sell. The Group measures biological assets that have not attained significant biological growth or when the impact of biological transformation on price is not expected to be material, at cost less any impairment losses, which approximates fair value.

Sugarcane

The Group’s sugarcane production is based in Brazil and to a lesser extent in Bolivia. This crop’s production requires specific weather conditions (tropical and subtropical climates. The Group recognizes these crops at a fair value net of costs of sales from the moment of planting.

Fair value of biological assets

When an active market exists for biological assets, the Group uses the quoted market price in the principal market as a basis to determine the fair value of its biological. Live cattle is measured at fair value less cost to sell, based on market quoted at an auction involving cattle of the same age, breed and genetic merit adjusted, if applicable, to reflect any difference. When there is no active market or market-determined prices are not available, (for example, unharvested crops with significant growth or growing agricultural produce of sugarcane), the Group determines the fair value of a biological asset based on discounted cash flows models.

These models require the input of highly subjective assumptions including observable and unobservable data. The not observable information is determined based on the best information available for example, by reference to historical information of past practices and results, statistics and agricultural information and other analytical techniques. Key assumptions utilized in this method include future market prices, estimated yields at the point of harvest and estimated future costs of harvesting and other costs.

F-76

Market prices are generally determined by reference to observable data in the principal market for the agricultural produce. Harvesting costs and other costs are estimated based on historical and statistical data. Yields are estimated based on several factors including the location of the farmland and soil type, environmental conditions, infrastructure and other restrictions and growth at the time of measurement. Yields are subject to a high degree of uncertainty and may be affected by several factors out of the Group’s control including but not limited to extreme or unusual weather conditions, plagues and other crop diseases.

The key assumptions discussed above are highly sensitive. Reasonable shifts in assumptions including but not limited to increases or decreases in prices, costs and discount factors used may result in a significant increase or decrease to the fair value of biological assets recognized at any given time. Cash flows are projected based on estimated production. Estimates of production in themselves are dependent on various assumptions, in addition to those described above, including but not limited to several factors such as location, environmental conditions and other restrictions. Changes in these estimates could materially impact on estimated production, and could therefore affect estimates of future cash flows used in the assessment of fair value. The valuation models and their assumptions are reviewed periodically, and, if necessary, adjusted.

As of June 30 of each year, the Group’s biological assets that are subject to a valuation model include unharvested crops and sugarcane plantations.

During years ended June 30, 2020 and 2019, there have been no transfers between the several tiers used in estimating the fair value of the Group’s biological assets, or reclassifications among their respective categories.

The fair value less estimated point of sale costs of agricultural produce at the point of harvest amount to Ps. 13,975 and Ps. 10,539 for the years ended June 30, 2020 and 2019, respectively.

When no quoted prices are available in an active market, the Group uses a range of valuation models. The following table presents main parameters:

				Sensitivity (i)
				06.30.20		06.30.19
Description	Valuation technique	Parameters	Range fiscal year 2018	Increase	Decrease	Increase	Decrease
Cattle<br>(Level 2)	Comparable<br>market prices	Price<br>per livestock head/kg and per category
Sown<br>land-crops (Level 3)	Discounted<br>cash flows	Yields<br>- Operating costs - Selling expenses - Future of sale<br>prices	Argentina
			Yields:<br>0.61 - 11.05 tn./ha.	93	(93)	191	(191)
			Future<br>of sale prices: 9,283 - 19,964 $/tn	132	(132)	257	(257)
			Operating<br>cost: 2,126 - 20,781 $/ha	(55)	55	(107)	107
			Bolivia:
			Yields:<br>5.00 tn./ha.	-	-	9	(9)
			Future<br>of sale prices: 160 US$/tn.	-	-	20	(20)
			Operating<br>cost: 56 US$./ha.	-	-	-11	11
Sugarcane<br>fields (Level 3)	Discounted<br>cash flows	Yields<br>- Operating costs - Selling expenses - Future of sale prices -<br>Discount rate	Brazil:
			Yields:<br>84.40 tn/ha	153	(153)	189	(189)
			Future<br>of sale prices: 94.04 Rs./tn.	223	(223)	275	(275)
			Operating<br>cost: 60.16 Rs./tn.	(172)	172	-214	214
			Bolivia:
			Yields:<br>65 - 104 tn./ha.	14	(14)	-	-
			Future<br>of sale prices: 22.56 US$/tn	29	(29)	(3)	3
			Operating<br>cost: 445 - 461 US$/ha.	(16)	16	3	(3)

(i) Sensitivities for the biological assets measured at Level 3 have been modeled considering a 10% change in the indicated variable, all else being equal.

As of June 30, 2020 and 2019, the better and maximum use of biological assets shall not significantly differ from the current use.

F-77

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

15.

Inventories

Breakdown of Group’s inventories as of June 30, 2020 and 2019 are as follows:

	06.30.20	06.30.19
Crops	2,903	3,152
Materials and<br>supplies	1,803	1,536
Seeds and<br>fodders	296	323
Sugarcane	4	-
Beef	-	160
Agricultural<br>inventories	5,006	5,171
Good for resale and<br>supplies	-	3
Telephones and<br>others communication equipment	1,845	1,689
Fruit	2,912	-
Others	-	30
Total<br>inventories	9,763	6,893

As of June 30, 2020 and 2019 the cost of inventories recognized as expense amounted to Ps. 20,147 and Ps. 15,217, respectively and have been included in “Costs” in the Statements of Income.

16.

Financial instruments by category

The following note presents the financial assets and financial liabilities by category and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Since the line items “Trade and other receivables” and “Trade and other payables” contain both financial instruments and non-financial assets or liabilities (such as prepayments, trade receivables, trade payables in-kind and tax receivables and payables), the reconciliation is shown in the columns headed “Non-financial assets” and “Non-financial liabilities”. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels.

In the case of Level 1, valuation is based on quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company can refer to at the date of valuation.

In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period.

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no market data is available. The inputs used reflect the Group’s assumptions regarding the factors which market players would consider in their pricing.

The Group’s Finance Division has a team in place in charge of estimating the valuation of financial assets required to be reported in the Consolidated Financial Statements, including the fair value of Level-3 instruments. The team directly reports to the Chief Financial Officer ("CFO"). The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, as of the end of each reporting period.

According to the Group’s policy, transfers among the several categories of valuation are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

F-78

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Financial assets and financial liabilities as of June 30, 2020 are as follows:

		Financial<br>assets at fair value through profit or loss
	Financial<br>assets at amortized cost (i)	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial assets	Non-financial<br>assets	Total
June<br>30, 2020
Assets<br>as per Statement of Financial Position
Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 17)	62,180	-	-	-	62,180	18,446	80,626
Investment in<br>financial assets:
- Equity securities<br>in public companies	-	618	248	-	866	-	866
- Equity securities<br>in private companies	-	-	-	3,131	3,131	-	3,131
-<br>Deposits	1,029	66	-	-	1,095	-	1,095
-<br>Bonds	-	8,422	1,555	-	9,977	-	9,977
- Mutual<br>funds	-	4,796	-	-	4,796	-	4,796
-<br>Others	-	2,382	872	250	3,504	-	3,504
Derivative<br>financial instruments:
- Crops<br>options contracts	-	93	-	-	93	-	93
- Crops<br>future contracts	-	16	-	-	16	-	16
- Foreign-currency options<br>contracts	-	-	-	-	-	-	-
-<br>Foreign-currency future contracts	-	17	138	-	155	-	155
- Swaps	-	-	18	-	18	-	18
-<br>Warrants	-	-	-	154	154	-	154
-<br>Others	66	-	21	-	87	-	87
Restricted assets<br>(ii)	8,768	-	-	-	8,768	-	8,768
Financial assets<br>held for sale
-<br>Clal	-	3,636	-	-	3,636	-	3,636
Cash and cash<br>equivalents (excluding bank overdrafts):
- Cash on<br>hand and at bank	29,100	-	-	-	29,100	-	29,100
- Short-term<br>investments	68,647	10,905	-	-	79,552	-	79,552
Total<br>assets	169,790	30,951	2,852	3,535	207,128	18,446	225,574
		Financial<br>liabilities at fair value
---	---	---	---	---	---	---	---
	Financial<br>liabilities at amortized cost	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial liabilities	Non-financial<br>liabilities	Total
June<br>30, 2020
Liabilities<br>as per Statement of Financial Position
Trade and other<br>payables (Note 20)	33,296	-	-	-	33,296	8,484	41,780
Borrowings<br>(excluding finance lease liabilities) (Note 22)	450,866	-	-	-	450,866	-	450,866
Finance lease<br>obligations (Note 22)	-	-	-	-	-	-	-
Derivative<br>financial instruments:
- Crops<br>options contracts	-	76	-	-	76	-	76
- Crops<br>futures contracts	-	40	-	-	40	-	40
- Crops<br>options contracts	-	184	54	-	238	-	238
-<br>Swaps	-	-	102	-	102	-	102
-<br>Forwards	-	-	66	-	66	-	66
-<br>Others	-	-	1,029	22	1,051	-	1,051
Total<br>liabilities	484,162	300	1,251	22	485,735	8,484	494,219

Financial assets and financial liabilities as of June 30, 2019 were as follows

		Financial assets at fair value through profit or<br>loss
	Financial assets at amortized cost (i)	Level 1	Level 2	Level 3	Subtotal financial assets	Non-financial assets	Total
June 30, 2019
Assets<br>as per Statement of Financial Position
Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 17)	53,118	-	-	-	53,118	14,583	67,701
Investment in<br>financial assets:
- Equity securities<br>in public companies	-	1,471	212	-	1,683	-	1,683
- Equity securities<br>in private companies	-	-	-	2,810	2,810	-	2,810
-<br>Deposits	5,707	55	-	-	5,762	-	5,762
-<br>Bonds	-	24,148	1,634	1,040	26,822	-	26,822
- Mutual<br>funds	-	11,077	-	-	11,077	-	11,077
-<br>Others	-	3,671	671	539	4,881	-	4,881
Derivative<br>financial instruments:
- Crops<br>futures contracts	-	15	-	-	15	-	15
-<br>Swaps	-	-	17	-	17	-	17
- Warrants	-	-	-	146	146	-	146
- Crops<br>options contracts	-	49	-	-	49	-	49
-<br>Foreign-currency options contracts	-	46	-	-	46	-	46
-<br>Foreign-currency future contracts	-	3	45	-	48	-	48
-<br>Others	-	-	18	-	18	-	18
Restricted assets<br>(ii)	11,635	-	-	-	11,635	-	11,635
Financial assets<br>held for sale
-<br>Clal	-	24,370	-	-	24,370	-	24,370
Cash and cash<br>equivalents (excluding bank overdrafts):
- Cash on<br>hand and at bank	10,918	-	-	-	10,918	-	10,918
- Short-term<br>investments	80,605	4,617	-	-	85,222	-	85,222
Total<br>assets	161,983	69,522	2,597	4,535	238,637	14,583	253,220

F-79

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

		Financial liabilities at fair<br>value
	Financial liabilities at<br>amortized cost (i)	Level 1	Level 2	Level 3	Subtotal financial<br>liabilities	Non-financial liabilities	Total
June 30,<br>2019
Liabilities as per Statement of Financial<br>Position
Trade and other<br>payables (Note 20)	28,468	-	-	-	28,468	9,350	37,818
Borrowings (excluding finance lease<br>liabilities) (Note 22)	513,980	-	-	-	513,980	-	513,980
Finance lease obligations (Note<br>22)	394	-	-	-	394	-	394
Derivative<br>financial instruments:
- Crops futures<br>contracts	-	112	-	-	112	-	112
-<br>Foreign-currency contracts	-	38	-	-	38	-	38
- Crops options<br>contracts	-	95	-	-	95	-	95
-<br>Swaps	-	-	206	-	206	-	206
-<br>Others	-	-	1,343	74	1,417	-	1,417
Total<br>liabilities	542,842	245	1,549	74	544,710	9,350	554,060

(i) The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 22).

(ii) Corresponds to deposits in guarantee and escrows.

Liabilities carried at amortized cost also include liabilities under finance leases where the Group is the lessee and which therefore have to be measured in accordance with IAS 17 “Leases”. The categories disclosed are determined by reference to IFRS 9. Finance leases are excluded from the scope of IFRS 7 “Financial Instruments Disclosures”. Therefore, finance leases have been shown separately

The following are details of the book value of financial instruments recognized, which were offset in the statements of financial position:

	06.30.20			06.30.19
	Gross<br>amounts recognized	Gross<br>amounts offset	Net<br>amount presented	Gross<br>amounts recognized	Gross<br>amounts offset	Net<br>amount presented
Financial<br>assets
Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables)	64,911	(2,731)	62,180	55,715	(2,597)	53,118
Financial<br>liabilities
Trade and other<br>payables	36,027	(2,731)	33,296	31,065	(2,597)	28,468

Income, expense, gains and losses on financial instruments can be assigned to the following categories:

	Financial<br>assets and liabilities at amortized cost	Financial<br>assets and liabilities at fair value through profit or<br>loss	Total
June<br>30, 2020
Interest<br>income	317	-	317
Interest earned on operating assets	1,752	-	1,752
Interest<br>expenses	(10,543)	-	(10,543)
Foreign exchange<br>loss	(10,946)	-	(10,946)
Dividends<br>income	15	-	15
Fair value gains<br>financial assets at fair value through<br>profit or loss	-	1,026	1,026
Gain from repurchase of<br>Non-convertible<br>Notes	95	-	95
Gain on financial instruments derived from<br>commodities	-	473	473
Results from<br>derivative financial instruments, net	-	(1,497)	(1,497)
Other financial<br>income	-	-	-
Other financial<br>results	(749)	-	(749)
Net result (i)	(20,059)	2	(20,057)
	Financial assets and liabilities at amortized<br>cost	Financial assets and liabilities at fair value through profit<br>or loss	Total
---	---	---	---
June 30, 2019
Interest<br>income	216	-	216
Interest earned on operating assets	478	-	478
Interest<br>expenses	(7,285)	-	(7,285)
Foreign<br>exchange loss	2,571	-	2,571
Dividends<br>income	16	-	16
Fair<br>value gains financial assets at fair value through profit or<br>loss	-	1,128	1,128
Gain / (loss) from repurchase of Non-convertible<br>Notes	80	-	80
Gain<br>on financial instruments derived from commodities	-	480	480
Results from derivative financial instruments,<br>net	-	560	560
Other financial income	2	-	2
Other<br>financial results	(622)	-	(622)
Net result (i)	(4,544)	2,168	(2,376)

F-80

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	Financial assets and liabilities at amortized<br>cost	Financial assets and liabilities at fair value through profit<br>or loss	Total
June 30, 2018
Interest<br>income	883	-	883
Interest earned on operating assets	(240)	-	(240)
Interest<br>expenses	(5,642)	-	(5,642)
Foreign<br>exchange loss	(20,764)	-	(20,764)
Dividends<br>income	105	-	105
Fair<br>value loss in financial assets at fair value through profit or<br>loss	-	2,238	2,238
Loss from repurchase of Non-convertible<br>Notes	-	-	-
Results from derivative financial<br>instruments, net	-	(798)	(798)
Loss<br>from repurchase of Non-convertible Notes	-	(5)	(5)
Gain<br>on financial instruments derived from commodities	-	60	60
Other financial results	(547)	-	(547)
Net result (i)	(26,205)	1,495	(24,710)

Clal

Clal is a holding company that mainly operates in the insurance and pension markets and in segments of pension funds. The Company holds assets and other businesses (such as insurance agencies) and is one of the largest insurance groups in Israel. Clal mainly develops its activities in three operating segments: long-term savings, general insurance and health insurance.

Given that IDBD failed to meet the requirements set forth to have control over an insurance company, on August 21, 2013, the Commissioner required that IDBD granted an irrevocable power of attorney to Mr. Moshe Tery ("the Trustee") for the 51% of the shareholding capital and vote interests in Clal, thus transferring control over that investee. From such date, IDBD recognized its equity interest in Clal as a financial asset held for sale, at fair value through profit or loss.

On December 30, 2014, the Commissioner sent an additional letter setting a term by which IDBD’s control over and equity interests in Clal were to be sold and giving directions as to the Trustee’s continuity in office, among other aspects. Refer to Note 4 and Note 40 of these financial statements for the sale of Clal shares.

The following table presents the changes in Level 3 financial instruments as of June 30, 2020 and 2019:

	Derivative financial instruments - Forwards	Investments in financial assets - Private companies'<br>securities	Investments in financial assets - Others	Investments in financial assets - Warrants	Total
Balance as of June 30, 2018	(55)	2,796	2,222	-	4,963
Additions<br>and acquisitions	-	185	-	-	185
Transfer<br>to level 1 (ii)	-	164	(212)	111	63
Currency<br>translation adjustment	-	(69)	(33)	20	(82)
Gains<br>and losses recognized in the year (i)	(19)	(266)	(398)	15	(668)
Balance as of June 30, 2019	(74)	2,810	1,579	146	4,461
Additions<br>and acquisitions	-	38	-	-	38
Transfer<br>to level 1 (ii)	-	-	-	378	378
Currency<br>translation adjustment	(8)	511	114	265	882
Write<br>off	-	-	(1,052)	(657)	(1,709)
Gains<br>and losses recognized in the year (i)	60	(228)	(391)	22	(537)
Balance as of June 30, 2020	(22)	3,131	250	154	3,513

(i)

Included within “Financial results, net” in the Statements of income.

(ii)

The Group transferred a financial asset measured at fair value from level 3 to level 1, because it began trading in the stock exchange.

During the fiscal year ended June 30, 2020 and 2019, shares of private companies were transferred from level 3 to level 1 when they began trading. When there are no quoted prices available in an active market, fair values (especially derivative instruments) are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table.

F-81

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Description	Pricing model / method	Parameters	Fair value hierarchy	Range
Interest<br>rate swaps	Cash<br>flows - Theoretical price	Interest<br>rate futures contracts and cash flows	Level<br>2	-
Investments<br>in financial assets - Other private companies’ securities<br>(*)	Cash<br>flow / NAV - Theoretical price	Projected revenue<br>discounted at the discount rate<br><br><br>The value is<br>calculated in accordance with shares in the equity funds on the<br>basis of their Financial Statements, based on fair value or<br>investments assessments.	Level<br>3	1 - 3.5
Investments<br>in financial assets - Others	Discounted<br>cash flows - Theoretical price	Projected revenue<br>discounted at the discount rate<br><br><br>The value is<br>calculated in accordance with shares in the equity funds on the<br>basis of their Financial Statements, based on fair value or<br>investment assessments.	Level<br>3	1 - 3.5
Derivative<br>financial instruments Forwards	Theoretical<br>price	Underlying<br>asset price and volatility	Level 2 and<br>3	-

(*) An increase in the discount rate would decrease the value of investments in private companies, while an increase in projected revenues would increase their value.

As of June 30, 2020, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the group.

17.

Trade and other receivables

Group’s trade and other receivables as of June 30, 2020 and 2019 were as follows:

	06.30.20	06.30.19
Trade, leases and<br>services receivable	49,437	46,070
Less: allowance for<br>doubtful accounts	(4,145)	(2,913)
Total<br>trade receivables	45,292	43,157
Prepaid<br>expenses	12,745	9,110
Guarantee<br>deposits	3	3
Tax<br>credits	1,666	1,757
Borrowings granted,<br>deposits, and other balances	8,227	4,513
Others	8,548	6,248
Total<br>other receivables	31,189	21,631
Total<br>trade and other receivables	76,481	64,788
Non-current	29,418	23,393
Current	47,063	41,395
Total	76,481	64,788

Book amounts of Group's trade and other receivables in foreign currencies are detailed in Note 34.

The fair value of current receivables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant.

Trade accounts receivables are generally presented in the Statements of Financial Position net of allowances for doubtful accounts. Impairment policies and procedures by type of receivables are discussed in detail in Note 2. Movements on the Group’s allowance for doubtful accounts were as follows

	06.30.20	06.30.19
Beginning<br>of the year	2,913	2,003
IFRS 15<br>adjustments	-	209
Recoveries<br>(i)	(122)	(100)
Used during the<br>year	(775)	(508)
Additions<br>(i)	1,164	868
Currency<br>translation adjustment	1,187	697
Deconsolidation	(22)	-
Incorporation by<br>business combination	(194)	-
Transfer to / from<br>assets available for sale	19	-
Inflation<br>adjustment	(25)	(256)
End<br>of the year	4,145	2,913

(i)

The creation and release of the provision for impaired receivables have been included in “Selling expenses” in the Statements of Income (Note.27).

The Group’s trade receivables comprise several classes. The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables (see Note 5). The Group also has receivables from related parties neither of them is due nor impaired.

F-82

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Due to the distinct characteristics of each type of receivables, an aging analysis of past due unimpaired and impaired receivables is shown by type and class, as of June 30, 2020 and 2019 (a column of non-past due receivables is also included so that the totals can be reconciled with the amounts appearing on the Statement of Financial Position):

	Expired
	Up<br>to 3 months	From<br>3 to 6 months	Over<br>6 months	Not<br>past due	Allowance	Total	% of<br>representation
Leases and services	645	72	124	2,823	847	4,511	9.2%
Consumer<br>financing	-	-	-	-	17	17	0.0%
Sale of properties and developments	203	5	5	6,035	1	6,249	12.6%
Sale of communication equipment	-	-	-	14,721	504	15,225	30.8%
Telecommunication<br>services	1,599	-	481	13,177	2,730	17,987	36.4%
Agricultural<br>products	1,691	284	131	3,259	46	5,411	10.9%
Securities to deposit	3	-	-	34	-	37	0.1%
Total<br>as of 06.30.20	4,141	361	741	40,049	4,145	49,437	100%
	Expired
---	---	---	---	---	---	---	---
	Up to 3 months	From 3 to 6 months	Over 6 months	Not past due	Allowance	Total	% of representation
Agricultural<br>products	98	-	20	1,680	35	1,833	4.0%
Shopping<br>leases and services	372	16	16	839	21	1,264	2.7%
Office<br>leases and services	452	134	189	2,970	508	4,253	9.2%
Hotel<br>leases and services	-	-	-	158	-	158	0.3%
Consumer<br>financing	-	-	-	-	25	25	0.1%
Sale of communication equipment	-	-	-	15,323	220	15,543	33.7%
Sale of properties<br>and developments	92	15	15	7,410	28	7,560	16.4%
Telecommunication<br>services	1,726	-	532	11,100	2,076	15,434	33.6%
Total as of 06.30.19	2,740	165	772	39,480	2,913	46,070	100%

18.

Cash flow information

Following is a detailed description of cash flows generated by the Group’s operations for the years ended June 30, 2020, 2019 and 2018.

	Note	06.30.20	06.30.19	06.30.18
(Loss) / Profit for the period		21,534	(43,845)	29,519
Profit from discontinued operations		3,546	1,704	(15,773)
Adjustments for:
Income<br>tax	23	8,548	571	(10,195)
Amortization<br>and depreciation	27	687	559	445
(Gain)<br>/ Loss from disposal of property, plant and equipment		-	(3)	-
Net<br>(gain) / loss from fair value adjustment of investment<br>properties		(36,582)	41,596	(20,423)
Share-based<br>compensation		-	2	28
Net gain / (loss) from fair value<br>adjustment of investment<br>properties		1,105	(451)	(1,291)
Share-based<br>compensation		-	(3)	-
Loss<br>from disposal of intangible assets		-	-	-
Disposal<br>of intangible assets by TGLT agreement		-	-	(3)
Gain / (Loss) from disposal<br>of subsidiary and<br>associates		-	(1,059)	-
Loss<br>from disposal of trading properties		-	(688)	-
Impairment<br>of other assets		-	-	-
Financial<br>results, net		28,725	2,033	14,858
Provisions<br>and allowances		1,057	935	1,885
Share<br>of loss / (profit) of associates and joint ventures		(7,928)	8,945	3,266
Loss<br>from revaluation of receivables arising from the sale of<br>farmland		-	-	(215)
(Gain)<br>/ Loss from repurchase of Non-convertible Notes		1	-	3
Changes<br>in net realizable value of agricultural products after<br>harvest		(707)	46	(802)
Unrealized<br>initial recognition and changes in fair value of biological assets<br>and agricultural products at the point of harvest		(3,588)	(2,470)	(2,013)
Unrealized<br>gain from derivative financial instruments		39	315	288
Other<br>operating results		(8,894)	169	-
Gain<br>from disposal of farmlands		(902)	(715)	(1,783)
Impairment<br>of associates and joint ventures		-	198	-
Result<br>from the revaluation of the participation held before the business<br>combination		-	-	(100)
Granting<br>Plan of actions		-	-	3
Changes in operating assets and liabilities:
Decrease<br>in inventories		631	(1,138)	(1,077)
Decrease<br>in trading properties		(424)	(200)	(357)
Increase<br>in restricted assets		(1,254)	-	-
Increase<br>in right-of-use assets		(1,134)	-	-
Increase<br>in lease liabilities		64	-	-
Decrease<br>/ (increase) in trade and other receivables		5,964	486	(716)
Decrease<br>in trade and other payables		(3,163)	(3,677)	1,465
Decrease<br>in salaries and social security liabilities		(378)	(17)	332
Decrease<br>in provisions		(630)	(118)	(77)
Decrease<br>in biological assets		5,585	1,360	1,692
Net<br>variation in derivative financial instruments		117	169	(225)
Net cash generated by continuing operating activities before income<br>tax paid		12,019	4,704	(1,266)
Net cash generated by discontinued operating activities before<br>income tax paid		27,150	23,584	29,079
Net cash generated by operating activities before income tax<br>paid		39,169	28,288	27,813

F-83

The following table shows balances incorporated as result of business combination / deconsolidation or reclassification of assets and liabilities held for sale of subsidiaries:

	06.30.20	06.30.19
Investment<br>properties	167,513	(10,489)
Property,<br>plant and equipment	(8,371)	(66,784)
Trading<br>properties	167	-
Intangible<br>assets	3,479	(14,812)
Investments<br>in associates and joint ventures	2,710	(874)
Biological<br>assets	(80)	-
Deferred<br>income tax	1	(289)
Trade<br>and other receivables	(9,332)	(28,425)
Right-of-use<br>assets	(4,281)	-
Investment<br>in financial assets	14,581	(6,813)
Derivative<br>financial instruments	(40)	(55)
Inventories	(2,336)	(14,114)
Restricted<br>assets	230	(218)
Trade<br>and other payables	2,388	54,794
Lease<br>liabilities	2,236	-
Salaries<br>and social security liabilities	75	5,719
Borrowings	(93,677)	50,387
Provisions	50	1,034
Income tax and MPIT liabilities	(107)	17
Deferred<br>income tax liabilities	(21,404)	6,693
Employee<br>benefits	115	3,000
Net amount of non-cash assets incorporated / held for<br>sale	53,917	(21,229)
Cash<br>and cash equivalents	(4,729)	(13,295)
Non-controlling<br>interest	54,629	17,544
Goodwill	374	177
Net amount of assets incorporated / held for sale	104,191	(16,803)
Interest<br>held before acquisition	-	(1,129)
Seller<br>financing	-	(91)
Foreign<br>exchange losses	-	648
Fair<br>value of interest held before business combination	-	(1,356)
Net (outflow) inflow of cash and cash equivalents / assets and<br>liabilities held for sale	104,191	(18,731)

The following table shows a detail of significant non-cash transactions occurred in the years ended June 30, 2020, 2019 and 2018:

	06.30.20	06.30.19	06.30.18
Dividends<br>not collected	(432)	(323)	(271)
Increase<br>in investment properties through an increase in<br>borrowings	-	252	-
Decrease<br>in trade and other receivables through an increase in investments<br>in subsidiaries, associates and joint ventures	-	3,611	-
Decrease<br>in participation in subsidiaries, associates and joint ventures due<br>to transient conversion differences	(1,685)	999	(4,505)
Increase<br>in trade and other receivables through an increase in investments<br>in associates and joint ventures	-	-	17
Increase<br>in property, plant and equipment through a decrease in investment<br>property	-	22	-
Increase<br>in property, plant and equipment through an increase in trade and<br>other payables	796	919	2,068
Decrease<br>in trade and other receivable through an increase in investments in<br>associates and joint venture	-	-	482
Registration<br>of investment properties through a reduction of credits for sale<br>and other credits	-	618	83
Increase<br>in properties for sale through an increase in<br>borrowings	13	18	-
Increase<br>in properties for sale through a decrease in investment<br>properties	-	105	25
Purchase<br>of non-controlling interest through reduction of credits for sale<br>and other credits	765	1,128	-
Decrease<br>in associates and joint ventures through an increase in trade and<br>other receivable	-	1,289	-
Changes<br>in non-controlling interest through a decrease in trade and other<br>receivables	-	-	3,303
Distribution<br>of dividends to non-controlling shareholders pending<br>payment	1,896	(366)	3,660
Increase<br>in property, plant and equipment through a business<br>combination	-	-	(2,157)
Increase<br>in property, plant and equipment through increased<br>borrowings	-	6	22
Increase<br>in non-current trade and other receivables through an increase in<br>current and non-current borrowings	-	-	262
Decrease<br>in investments in associates and joint ventures through dividends<br>pending collection	-	-	26
Increase<br>of trading properties through an interest<br>capitalization	-	-	26
Increase<br>of investment properties through an interest<br>capitalization	-	-	43
Decrease<br>in associates and joint ventures through an increase in assets held<br>for sale	2,230	-	105
Increase<br>in investments in associates and joint ventures through a decrease<br>in investments in financial assets	-	-	9
Dividend<br>payment through increased business debt	-	-	18
Transfers<br>of property, plant and equipment to investment<br>properties	-	-	(1,366)
Grants<br>Action Plan	-	-	3
Increase<br>in Investment Properties through an increase in Other reserves due<br>to the difference between cost and fair value.	-	-	51
Increase<br>in financial operations through a decrease in investments in<br>associates and joint ventures	-	-	155
Increase<br>in trading properties through an increase in trade and other<br>payables	-	-	148
Increase<br>in trading properties through a decrease in credits	-	-	74
Increase<br>in investment properties through a decrease in trading<br>properties	-	-	845
Increase<br>in participation in subsidiaries, associates and joint ventures due<br>to an increase in the reserve share-based payments	(4)	-	-
Decrease<br>in loans through a decrease in financial assets	2,642	-	-
Increase<br>in investment properties through a decrease in financial<br>assets	299	-	-
Increase<br>in intangible assets through an increase in trade and other<br>payabels	532	-	-
Increase<br>in investment in associates through loss of control in<br>subsidiaries	1,437	-	-
Distribution<br>of dividends on shares	634	-	-
Acquisition<br>of investment properties through a decrease in trade and other<br>receivables	30	-	-
Issuance<br>of Negotiable Obligations	23	-	-
Increase<br>in investment properties through an increase in<br>borrowings	87	-	-
Increase<br>of use-rights through a decrease in property, plant and<br>equipment	-	-	-
Increase<br>in investments in financial assets through a decrease in<br>investments in associates and joint ventures	-	-	-
Increase<br>in investment in associates through a decrease in investments in<br>financial assets	919	-	-
Increase<br>in investments in financial assets through a decrease in investment<br>properties	1,279	-	-
Dividends<br>pending collection from associates and joint ventures	-	-	-
Increase<br>in investments in financial assets through a decrease in investment<br>properties	-	-	-
Increase<br>in rights of use through an increase in lease liabilities -<br>Adjustment of opening balances (IFRS 16)	15,205	-	-
Increase<br>in rights of use through an increase in lease<br>liabilities	8,710	-	-

F-84

19.

Shareholders’ Equity

Share capital and share premium

The Group's share capital is represented by ordinary shares with a nominal value of 1 peso per share and one vote each. No other activity has been recorded for the fiscal year ended June 30, 2020 in the capital accounts.

Inflation adjustment of share capital

The inflation adjustment related to share capital is allocated to an inflation adjustment reserve that forms part of shareholders' equity. The balance of this reserve could be applied only towards the issuance of common stock to shareholders of the Company

Treasury shares

On December 5, 2018, the Board of Directors of Cresud approved the repurchase of shares issued by the Company and established the terms and conditions for the acquisition of treasury shares, under the terms of Article 64 of Law No. 26,831 and the CNV rules, for up to a maximum amount of Ps. 462 million and up to 10% of the share capital in the form of ordinary shares or American Depositary Shares (“ADS”) representative of 10 shares each, up to daily limit of up to 25% of the average volume of daily transactions that the Company's shares have experienced, jointly in the listed markets, during the previous 90 business days, and at a maximum price of up to US$ 15.50 per ADS and up to a maximum value in pesos equivalent to the maximum price per ADS divided by 10 and multiplied by the value of the exchange rate of the National Bank of at each period. Also, on March 1, 2019, the Board of Directors of Cresud approved the extension of the repurchase term for a period of 30 days in addition to the timely approved.

On March 13, 2019, the above mention plan was completed and the Company acquired the equivalent of 6,394,009 common shares representing 99.97% of the approved program and 1.27% of Cresud's share capital, which correspond to 1,095,009 ordinary shares for a total of Ps. 80 and 529,900 ADRs (representing 5,299,000 ordinary shares) for a total of US$ 6.5 (equivalent to Ps. 381).

On March 14, 2019, the Board of Directors of Cresud approved a new repurchase of shares by the Company and established the terms and conditions for the acquisition of treasury shares by the Company, under the terms of Article 64 of the Law No. 26,831 and the CNV rules, for up to a maximum amount of Ps. 462 million and up to 10% of the share capital in the form of ordinary shares or ADS, up to a daily limit of up to 25% of the average volume of transactions daily that have experienced the shares of the Company, jointly in the markets that it quotes, during the previous 90 business days, and to a maximum of up to US$ 15.50 per ADS and up to a maximum value in pesos equivalent to the maximum price per ADS divided by 10 and multiplied by the value of the exchange rate of the National Bank of at each period. The repurchase period was set in up to 90 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.

On June 26, 2019, the repurchase plan was completed, and the Company acquired the equivalent of 6,712,465 ordinary shares representing 99.96% of the approved program and 1.34% of Cresud's share capital which correspond to 3,824,035 ordinary shares for a total of Ps. 263 and 288,843 ADRs (representative of 2,888,430 ordinary shares) for a total of US$ 2.9 (equivalent to Ps. 198).

Legal reserve

According to Law N° 19,550, 5% of the profit of the year is destinated to constitute a legal reserve until it reaches the legal capped amounts (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. The Group has not reached the legal limit of this reserve.

Special reserve

The CNV, through General Ruling N° 562/9 and 576/10, has provided for the application of Technical Resolutions N° 26 and 29 of the FACPCE, which adopt the IFRS, IASB for companies subject to the public offering regime ruled by Law 17,811, due to the listing of their shares or corporate notes, and for entities that have applied for authorization to be listed under the mentioned regime. The Group has applied IFRS, as issued by the IASB, for the first time in the year beginning July 1, 2012, with the transition date being July 1, 2011. Pursuant to CNV General Ruling N° 609/12, the Company set up a special reserve, to reflect the positive difference between the balance at the beginning of retained earnings disclosed in the first Financial Statements prepared according to IFRS and the balance at closing of retained earnings disclosed in the last Financial Statements prepared in accordance with previously effective accounting standards. The reserve recorded in due course amounted to Ps. 993, which as of June 30, 2018 were fully used to absorb the negative balances in the retained earnings account. During fiscal year ended June 30, 2018, the Company’s Board of Directors decided to change the accounting policy of investment property from the cost method to the fair value method, as allowed by IAS 40.

F-85

For this reason, as of the transition date, figures have been modified and, hence, the special reserve as set forth by General Ruling CNV N° 609/12 has been increased to Ps. 3,902, which may only be reversed to be capitalized or to absorb potential negative balances under retained earnings.

Dividends

The Shareholders Meeting held on October 31, 2017, approved a distribution of dividends for Ps. 608, which were paid during the month of November 2017. During the year ended June 30, 2020 and 2018 there was no dividend distribution.

Distribution of treasury shares

In accordance with the resolutions Shareholders' Meeting held on October 30, 2019 and the provisions of the Board of Directors of Cresud on the same day, the distribution of treasury stock of the Company duly acquired by a company took place on November 13, 2019. The number of shares distributed was 13,000,000, which constitutes 0.026 shares per ordinary share and 0.26 per ADS, and a percentage of 2.59% of the capital of Ps. 540 and 2.66% of the net capital which exclude treasury shares of Ps. 537.

20.

Trade and other payables

Group’s trade and other payables as of June 30, 2020 and 2019 were as follows:

	06.30.20	06.30.19
Trade	24,384	21,178
Sales, rental and<br>services payments received in advance	2,123	6,898
Construction<br>obligations	438	1,432
Accrued<br>invoices	1,314	1,836
Deferred<br>incomes	153	-
Admission<br>rights	1,095	-
Deposits<br>in guarantee	109	-
Total<br>trade payables	29,616	31,344
Dividends payable<br>to non-controlling shareholders	382	612
Taxes<br>payable	802	1,459
Construction<br>obligations	-	1,562
Management fees<br>(Note 32)	205	-
Others	10,775	2,841
Total<br>other payables	12,164	6,474
Total<br>trade and other payables	41,780	37,818
Non-current	3,215	3,046
Current	38,565	34,772
Total	41,780	37,818

The fair value of payables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).

21.

Provisions

The Group is subject to claims, lawsuits and other legal proceedings in the ordinary course of business, including claims from clients where a third party seeks reimbursement or damages. The Group’s responsibility under such claims, lawsuits and legal proceedings cannot be estimated with certainty. From time to time, the status of each major issue is evaluated and its potential financial exposure is assessed. If the potential loss involved in the claim or proceeding is deemed probable and the amount may be reasonably estimated, a liability is recorded. The Group estimates the amount of such liability based on the available information and in accordance with the provisions of the IFRS. If additional information becomes available, the Group will make an evaluation of claims, lawsuits and other outstanding proceeding, and will revise its estimates.

F-86

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following table shows the movements in the Group's provisions categorized by type:

	Legal<br>claims (i)	Investments<br>in associates and joint ventures (ii)	Site<br>dismantling and remediation (iii)	Onerous<br>contracts (iv)	Other<br>provisions (v)	Total
June<br>30, 2018	2,524	5,870	395	-	2,285	11,074
Additions	710	18	-	-	292	1,020
Recoveries	(112)	(8)	-	-	-	(120)
Share of profit / (loss) of associates and<br>joint ventures	-	4,019	-	-	-	4,019
Used during the year	(365)	-	(16)	-	-	(381)
Inflation<br>adjustment	(114)	-	-	-	-	(114)
Currency<br>translation adjustment	(31)	(575)	(11)	-	142	(475)
As<br>of June 30, 2019	2,612	9,324	368	-	2,719	15,023
Additions	506	-	36	-	-	542
Transfers	(19)	-	-	-	-	(19)
Incorporated by business<br>combinations	61	-	-	-	-	61
Share of profit / (loss) of associates and<br>joint ventures	-	(8,032)	-	-	-	(8,032)
Used during the<br>year	(751)	(1,096)	-	-	(195)	(2,042)
Inflation<br>adjustment	(86)	-	-	-	-	(86)
Currency<br>translation adjustment	397	(178)	77	-	215	511
As<br>of June 30, 2020	2,720	18	481	-	2,739	5,958
	06.30.20	06.30.19
---	---	---
Non-current	3,328	12,357
Current	2,630	2,666
Total	5,958	15,023

(i)

Additions and recoveries are included in "Other operating results, net"

(ii)

Corresponds to the equity interest in New Lipstick with negative equity in 2019 and Puerto Retiro in 2020 and 2019. Additions and recoveries are included in "Share of profit / (loss) of associates and joint ventures".

(iii)

The Group’s companies are required to recognize certain costs related to the dismantling of assets and remediation of sites from the places where such assets are located. The calculation of such expenses is based on the dismantling value for the current year, taking into consideration the best estimate of future changes in prices, inflation, etc. and such costs are capitalized at a risk-free interest rate. Volume projections for retired or built assets are recast based on expected changes from technological rulings and requirements.

(iv)

Provisions for other contractual obligations include a series of obligations resulting from a contractual liability or law, regarding which there is a high degree of uncertainty as to the terms and the necessary amounts to discharge such liability.

(v)

In November 2009, PBC’s Audit Committee and Board of Directors approved the agreement with Rock Real whereby the latter would look for and propose to PBC the acquisition of commercial properties outside Israel, in addition to assisting in the negotiations and management of such properties. In return, Rock Real would receive 12% of the net income generated by the acquired property. Pursuant to amendment 16 of the Israel Commercial Act 5759-1999, the agreement must be ratified by the Audit Committee before the third year after the effective date; otherwise, it expires. The agreement has not been ratified by the audit committee within such three-year term, so in January 2017 PBC issued a statement that hinted at the expiration of the agreement and informed that it would begin negotiations to reduce the debt. The parties have appointed an arbitrator that should render a decision on the dispute. The remaining corresponds to provisions related to investment properties.

Cresud

On February 23, 2016, a class action was filed against IRSA, the Company, some first-line managers and directors with the District Court of the USA for the Central District of California. The complaint, on behalf of people holding American Depositary Receipts of IRSA between November 3, 2014 and December 30, 2015, claims presumed violations to the US federal securities laws. In addition, it argues that defendants have made material misrepresentations and made some omissions related to IRSA’s investment in IDBD.

Such complaint was voluntarily waived on May 4, 2016 by the plaintiff and filed again on May 9, 2016 with the US District Court by the East District of Pennsylvania.

Furthermore, the Companies and some of its first-line managers and directors are defendants in a class action filed on April 29, 2016 with the US District Court of the East District of Pennsylvania. The complaint, on behalf of people holding American Depositary Receipts of the Company between May 13, 2015 and December 30, 2015, claims violations to the US federal securities laws. In addition, it argues that defendants have made material misrepresentations and made some omissions related to the IRSA’s investment in IDBD.

Subsequently, Cresud and IRSA requested that the complaint be moved to the district of New York, which request was later granted.

On December 8, 2016, the Court appointed the representatives of each presumed class as primary plaintiffs and the lead legal advisor for each of the classes. On February 13, 2017, the plaintiffs of both classes filed a document containing certain amendments. The Company and IRSA filed a petition requesting that the class action brought by IRSA’s shareholders should be dismissed. On April 12, 2017, the court suspended the class action filed by the Company’s shareholders until the Court decides on the petition of dismissal of such class action. Filing information on the motion to dismiss the collective remedy filed by shareholders of IRSA was completed on July 7, 2017.

F-87

On September 10, 2018, the New York Court issued an order granting the motion to dismiss the IRSA Case in its entirety.

On September 24, 2018, Plaintiff in the Cresud Case filed a document acknowledging that the Cresud Class Action complaint should be dismissed for the same reasons set forth in the Court’s September 10, 2018 order in the IRSA Case, subject to a right of appeal.

On October 9, 2018, the Plaintiff in the IRSA Case filed a notice of appeal to the United States Court of Appeals for the Second Circuit. On December 12, 2018, Plaintiff in the Cresud Case filed a notice of voluntary dismissal, with prejudice. On December 13, 2018, Plaintiff moved to dismiss the appeal of the IRSA Case in the Second Circuit upon agreement with IRSA and Cresud that the parties shall bear their own costs and fees in the litigation, including the appeal, and that no fees are due. Accordingly, the Second Circuit dismissed Plaintiff’s appeal on December 18, 2018.

The IRSA and Cresud case are fully resolved without any penalty for the Group.

Claims against Cellcom and its subsidiaries

In the ordinary course of business, Cellcom receives various consumer complaints, mainly through collective actions. They allege excess collections, breach of agreements with customers and failure to comply with established norms or licenses, which could cause harm to consumers.

In addition, the Company receives other claims from employees, subcontractors, suppliers and authorities, generally in relation to non-compliance with the provisions of the law with respect to payments upon termination of employment relationships, breach of contracts, violation of copyright and patents or disputes for payments demanded by the authorities.

Claims against PBC

On July 4, 2017, PBC was served notice from the tax authority of Israel of income tax official assessments based on a “better assessment” of taxes for the years 2012-2015, and concluded that PBC is required to pay approximately NIS 187 (including interest) since compensation of losses is not admitted.

In the opinion of legal advisors to PBC, the Company has sound arguments against the Revenue Administration’s position and will file its objection to it. As of the date of these Consolidated Financial Statements, there is no provision in relation to this claim.

DIC class action

On October 3, 2018 it was sent an action and a motion to approve that action as a class action (jointly – the "Motion"), which had been filed within the District Court of Tel Aviv Yafo (the "Court") against the Group; against Mr. Eduardo Elsztain, the controlling person of the Company (the "Controlling Person"), who serves as chairman of the Company's board of directors; against directors serving in the Group who have an interest in the Controlling Person; and against additional directors and officers serving in the Company (all jointly – the "Respondents"), in connection with the exit of the Company's share, on February 1, 2018, from the TA 90 and TA 125 indices, whereon it had been traded on the Tel Aviv Stock Exchange Ltd. up to that date (the "Indices"), by an applicant alleging to have held the Group's shares prior to February 1, 2018.

In the Motion, the Court is requested, inter alia, to approve the action as a class action and to charge the Respondents with compensating the members of the group according to the damage caused them. The estimated amount is approximately NIS 17.6 million.

The Company believes that it acted lawfully and as required in all that pertains to the subject of the Motion, and accordingly, after having preliminarily reviewed the Group's Motion, believes that it is unfounded.

IDBD class action

On October 3, 2018, an action and a motion to approve a class action had been filed with the District Court in Tel Aviv Yafo (jointly – the "Motion"). The Motion has been filed, against IDBD, against Dolphin IL, against Mr. Eduardo Elsztain and against the Official Receiver, and in it, the Court was requested to hold that the Transaction was not in compliance with the provisions of the Centralization Law, to appoint a trustee over DIC's shares owned by the respondents and to order the payment of monetary damages to the public shareholders in DIC for the alleged preservation of the pyramidal structure in IDBD, at a scope of between NIS 58 and NIS 73.

F-88

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The bulk of the Applicant's allegations is that the Group continues to be the Controlling Person in DIC (potentially and effectively) even after the completion of the sale of DIC shares to DIL as described in Note 4 in the Annual Financial Statements (the “transaction”) and that the controlling person of IDBD (in his capacity as chairman of the Board of Directors and controlling person of DIC as well) had a personal interest separate from the personal interest of the minority shareholders in DIC, in the manner of implementation of the Centralization Law's provisions, and that he and the Group breached the duty of good faith and the duty of decency toward DIC, and additionally the controlling person of IDBD breached his duty of trust and duty of care toward DIC, this being, allegedly, due to the fact that the decision regarding the preferred alternative for complying with the Centralization Law's Provisions was not brought before DIC's general meeting. The Applicant further alleges deprivation of the minority shareholders in DIC.

Having preliminarily reviewed the Motion, the Management believes that it is unfounded and that once the transaction is consummated , IDBD complies with the provisions of the Concentration Law.

22.

Borrowings

The breakdown and the fair value of the Group borrowings as of June 30, 2020 and 2019 was as follows:

	Book<br>value		Fair<br>value
	06.30.20	06.30.19	06.30.20	06.30.19
Non-convertible<br>notes	369,287	425,831	298,047	419,520
Bank loans and<br>others	75,234	79,815	63,467	78,198
Bank<br>overdrafts	4,610	1,540	3,480	1,540
Other borrowings<br>(i)	1,736	7,188	7,004	9,943
Total<br>borrowings (ii)	450,867	514,374	371,998	509,201
Non-current	344,946	427,836
Current	105,921	86,538
Total	450,867	514,374

(i) Includes financial leases for Ps. 394 as of June 30, 2019.

(ii) Includes Ps. 335,532 and Ps. 423,774 as of June 30, 2020 and 2019, respectively, corresponding to the Operations Center in Israel.

As of June 30, 2020 and 2019, total borrowings include collateralized liabilities (seller financing, leases and bank loans) of Ps. 16,062 and Ps. 21,349, respectively. These borrowings are mainly collateralized by investment properties and property, plant and equipment of the Group (Notes 9 and 10).

Borrowings also include liabilities under finance leases where the Group is the lessee. Information regarding liabilities under finance leases is disclosed in Note 24.

The terms of the loans include standard covenants for this type of financial operations. As of the date of these financial statements, the Group has complied with the covenants contemplated in its respective loan agreements, with the exception of an IDBG loan, which was reclassified to current loans, since it breached a term that determined the IDBD debt rating (company that guaranteed that loan). The amount thereof is NIS 153.

The maturity of the Group's borrowings (excluding obligations under finance leases) is as follows:

	06.30.20	06.30.19
Stock:
Less than one<br>year	103,794	81,504
Between 1 and 2<br>years	69,111	69,117
Between 2 and 3<br>years	118,779	52,231
Between 3 and 4<br>years	38,644	118,343
Between 4 and 5<br>years	34,803	44,665
More than 5<br>years	83,298	142,990
	448,429	508,850
Do<br>not accrue<br>interest:
Less than one<br>year	2,113	4,661
Between 1 and 2<br>years	82	60
Between 2 and 3<br>years	96	58
Between 3 and 4<br>years	30	274
Between 4 and 5<br>years	47	29
More than 5<br>years	70	48
	2,438	5,130
Finance<br>lease obligations	-	394
	450,867	514,374

F-89

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following table shows a detail of evolution of borrowing during the years ended June 30, 2020 and 2019:

	06.30.20	06.30.19
Balance at the beginning of the year	514,374	525,524
Borrowings	51,434	15,604
Payment<br>of borrowings	(78,147)	(10,285)
Obtention<br>/ (payment) of short term loans, net	(2,647)	2,420
Interests<br>paid	(23,586)	(6,846)
Accrued<br>interests	26,222	26,171
Cumulative<br>translation adjustment and exchange differences, net	80,583	(4,145)
Deconsolidation	(102,749)	(15,391)
Changes<br>in fair value of third-party loans	-	(29)
Repurchase<br>of non-convertible notes	(14,688)	(2,638)
Inflation<br>adjustment	(1,074)	(15,717)
Incorporation<br>by business combination	2,028	-
Transfer<br>to / from assets available for sale	(883)	-
Reclassifications<br>and other movements	-	(294)
Balance at the end of the year	450,867	514,374

The following tables shows a breakdown of Group’s borrowing by type of fixed-rate and floating-rate, per currency denomination and per functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2020 and 2019.

	06.30.20
	Argentine<br>Peso	Brazilian<br>Reais	Bolivian<br>Peso	Uruguayan<br>Peso	US<br>Dollar	NIS	Total
Fixed<br>rate:
Argentine<br>Peso	8,390	-	-	-	-	-	8,390
Brazilian<br>Reais	-	1,716	-	-	-	-	1,716
US Dollar	92,863	118	-	557	157	(1,251)	92,444
Bolivian<br>pesos	-	-	-	-	-	1,533	1,533
NIS	-	-	-	-	-	190,137	190,137
Subtotal<br>fixed-rate borrowings	101,253	1,834	-	557	157	190,419	294,220
Floating<br>rate:	-
Argentine<br>Peso	2,083	-	-	-	-	-	2,083
Brazilian<br>Reais	-	5,250	-	-	-	-	5,250
US<br>Dollar	4,201	-	-	-	-	-	4,201
NIS	-	-	-	-	-	145,113	145,113
Subtotal<br>floating rate borrowings	6,284	5,250	-	-	-	145,113	156,647
Total<br>borrowings as per analysis	107,537	7,084	-	557	157	335,532	450,867
Finance lease<br>obligations	-	-	-	-	-	-	-
Total<br>borrowings as per Statement of<br>Financial Position	107,537	7,084	-	557	157	335,532	450,867
	06.30.19
---	---	---	---	---	---	---	---
	Argentine Peso	Brazilian Reais	Bolivian Peso	Uruguayan Peso	US Dollar	NIS	Total
Fixed rate:
Argentine<br>Peso	1,567	-	-	-	-	-	1,567
Brazilian<br>Reais	-	2,439	-	-	-	-	2,439
US<br>Dollar	77,3	6	-	483	131	12,806	90,726
Bolivian<br>pesos	-	-	5	-	-	-	5
NIS	-	-	-	-	-	242,851	242,851
Subtotal fixed-rate borrowings	78,867	2,445	5	483	131	255,657	337,588
Floating rate:	-
Argentine<br>Peso	1,167	-	-	-	-	-	1,167
Brazilian<br>Reais	-	2,799	-	-	-	-	2,799
US<br>Dollar	4,310	-	-	-	-	-	4,31
NIS	-	-	-	-	-	168,116	168,116
Subtotal floating rate borrowings	5,477	2,799	-	-	-	168,116	176,392
Total borrowings as per analysis	84,344	5,244	5	483	131	423,773	513,98
Finance<br>lease obligations	394	-	-	-	-	-	394
Total borrowings as per Statement of Financial<br>Position	84,738	5,244	5	483	131	423,773	514,374

F-90

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following describes the debt issuances made by the Group for the years ended June 30, 2020, and 2019:

					Interest
Entity	Class	Issuance / expansion date	Amount in original currency	Maturity date	rate	Principal payment	Interest payment
CRESUD	Class XXIII	feb-18	USD 113	02/16/2023	6.50% n.a.	At expiration	biannual
CRESUD	Class XXIV	nov-18	USD 73.6	11/14/2020	9.00% n.a.	At expiration	quarterly
CRESUD	Class XXV	jul-19	USD 59.6	07/11/2021	9.00% n.a.	At expiration	biannual
CRESUD	Class<br>XXVI	jan-20	ARS<br>1,095	01/30/2021	Bladar<br>+650pts	At expiration	quarterly
CRESUD	Class<br>XXVII	jan-20	USD<br>5.7	07/30/2021	7.45%<br>n.a.	At expiration	quarterly
CRESUD	Class<br>XXVIII	jan-20	USD<br>27.5	04/30/2021	9%<br>n.a.	At expiration	quarterly
PBC	SERIE I	jul-18	NIS 507	06/29/2029	3.95% n.a.	At expiration	Quarterly	(1)
PBC	SERIE j	may-19	NIS 515	12/31/2029	4.15% n.a.	At expiration	Annual
Gav - Yam	SERIE H	sep-17	NIS 424	06/30/2034	2.55% n.a.	Annual payments since 2019	biannual	(1)
Gav - Yam	SERIE A	jul-18	NIS 320	10/31/2023	3.55% n.a.	Annual payments since 2021	biannual	(1)
Gav - Yam	SERIE H	sep-18	NIS 596	06/30/2024	2.55% n.a.	Annual payments since 2019	annual	(1)
Gav - Yam	SERIE A	dic-18	NIS 351	10/31/2023	3.55% n.a.	Annual payments since 2021	biannual
Cellcom	SERIE L	jan-18	NIS 401	01/05/2028	2.5% n.a.	Annual payments since 2023	annual	(1)
Cellcom	SERIE K	jul-18	NIS 220	07/05/2026	3.55% n.a.	Annual payments since 2021	annual	(1)
Cellcom	SERIE K	dic-18	NIS 187	01/07/2026	3.55% n.a.	Annual payments since 2021	annual
Cellcom	SERIE L	dic-18	NIS 213	01/15/2028	2.50% n.a.	Annual payments since 2023	annual
IRSA	Class I 2nd<br>tranch	aug-19	USD 85	11/15/2028	10.00% n.a.	At expiration	quarterly
IRSA	Class II	aug-19	CLP 31,503	08/06/2020	10.50% n.a.	At expiration	quarterly	(1)
IDBD	Serie 15	nov-19	NIS 237	06/30/2022	4.70% n.a	Two payments	quarterly
IRSA	Class II	may-20	ARS 354	02/19/2021	Badlar.+ 0.6%n.a.	At expiration	quarterly	(1)
IRSA	Cass IV	may-20	USD 51	05/19/2021	7% n.a.	At expiration	quarterly
IRSA	Class V	may-20	USD 9	05/19/2022	9% n.a.	At expiration	quarterly

(1) Corresponds to an expansion of the series.

23.

Income tax

The Group’s income tax has been calculated on the estimated taxable profit for each year at the rates prevailing in the respective tax jurisdictions. The subsidiaries of the Group in the jurisdictions where the Group operates are required to calculate their income taxes on a separate basis; thus, they are not permitted to compensate subsidiaries’ losses against subsidiaries income.

Argentine tax reform

On December 27, 2017, the Argentine Congress approved the Tax Reform, through Law No. 27,430, which was enacted on December 29, 2017, and has introduced many changes to the income tax treatment applicable to financial income. The key components of the Tax Reform are as follows:

Dividends: Tax on dividends distributed by Argentine companies would be as follows: (i) dividends originated from profits obtained before fiscal year ending June 30, 2018 will not be subject to withholding tax; (ii) dividends derived from profits generated during fiscal years of the Company ending June 30, 2019 and 2020 paid to argentine individuals and/or foreign residents, will be subject to a 7% withholding tax; and (iii) dividends originated from profits obtained during fiscal year ending June 30, 2021 onward will be subject to withholding tax at a rate of 13%.

Income tax: Corporate income tax would be gradually reduced to 30% for fiscal years commencing after January 1, 2018 through December 31, 2019, and to 25% for fiscal years beginning after January 1, 2020, inclusive.

Presumptions of dividends: Certain facts will be presumed to constitute dividend payments, such as: i) withdrawals from shareholders, ii) shareholders private use of property of the company, iii) transactions with shareholders at values different from market values, iv) personal expenses from shareholders or shareholder remuneration without substance.

Revaluation of assets: The regulation establishes that, at the option of the companies, tax revaluation of assets is permitted for assets located in Argentina and affected to the generation of taxable profits. The special tax on the amount of the revaluation depends on the asset, being (i) 8% for real estate not classified as inventories, (ii) 15% for real estate classified as inventories, (iii) 5% for shares, quotas and equity interests owned by individuals and (iv) 10% for the rest of the assets. Once the option is exercised for a particular asset, all other assets in the same category must be revalued. The tax result that originates the revaluation is not subject to the income tax and the special tax on the revaluation amount will not be deductible from said tax. Through regulations (Decree 353/2018 and 613/2018, and General Resolution (AFP) 4287), the National Executive Power has been extending the date for the exercise of the option, based on the international context and the greater volatility that it is observed in the financial variables that affect the decision regarding the exercise of the option. The expiration of the term for the exercise of this option for companies with fiscal year end as of June 30, was July 31, 2019.

The Group has analyzed the impacts of the option mentioned above and has chosen for the application of the optional tax revaluation in some companies of the Group.

F-91

Tax inflation adjustment: Law 27,430 establishes the following rules for the application of the inflation adjustment in income tax: (i) the update of the cost for goods acquired or investments made in the fiscal years that begin as of January 1, 2018 (applicable to IRSA for the year end June 30, 2019), considering the percentage variations of the CPI provided by the National Institute of Statistics and Census (INDEC); and (ii) the application of the adjustment set forth in Title VI of the Income Tax Law when a percentage of variation -of the aforementioned index price - accumulated in thirty-six (36) months prior to the fiscal year end that is liquidated, is greater than 100%, or, with respect to the first, second and third year after its validity, this procedure will be applicable in case the accumulated variation of that index price, calculated from the beginning of the first of them and until the end of each year, exceeds 55%, 30% and 15% for the first, second and third year of application, respectively. At the end of this year, there has been an accumulative variation of 55.72% in the index price that exceeds the expected condition of 55% for the application of the adjustment in said first year. Consequently, the tax inflation adjustment has been applied and the cost of goods acquired during the year 2019 has been updated as established in article 58 of the Argentine Income Tax Law.

In addition, the argentine tax reform contemplates other amendments regarding the following matters: social security contributions, tax administrative procedures law, criminal tax law, tax on liquid fuels, and excise taxes, among others. As of the date of presentation of these Financial Statements, some aspects are pending regulation by the National Executive Power.

US tax reform

In December 2017, a bill was passed to reform the Federal Taxation Law in the United States. The reform included a reduction of the corporate tax rate from 35% to 21%, for the tax years 2018 and thereafter. The reform has impact in certain subsidiaries of the Group in the United States.

The details of the provision for the Group’s income tax, is as follows:

	06.30.20	06.30.19	06.30.18
Current income<br>tax	(793)	(764)	530
Deferred income<br>tax	(7,611)	110	9,900
MPIT	(144)	83	(235)
Income<br>tax	(8,548)	(571)	10,195

The statutory taxes rates in the countries where the Group operates for all of the years presented are:

Tax jurisdiction	Income tax rate
Argentina	25% - 35%
Brazil	25% - 34%
Uruguay	0% - 25%
Bolivia	25%
U.S.	0% - 40%
Bermudas	0%
Israel	23% - 24%

Below is a reconciliation between income tax expense and the tax calculated applying the current tax rate, applicable in the respective countries, to profit before taxes for years ended June 30, 2020, 2019 and 2018:

	06.30.20	06.30.19	06.30.18
Tax calculated at the tax rates applicable to profits in the<br>respective countries	(10,481)	11,196	(1,271)
Permanent differences:
Tax<br>inflation adjustment	(4,420)	(6,271)	-
Share<br>of profit / (loss) of associates and joint ventures	1,074	(1,370)	(436)
Unrecognized<br>tax loss carry-forwards (i)	(898)	(1,987)	334
Expiration<br>of tax loss carry-forwards	14	-	(177)
Provision<br>for unrecoverability of tax loss carry-forwards	(2,150)	(3,428)	(2,094)
Changes<br>in fair value of financial instruments and sale of shares<br>(ii)	-	(425)	1
Change<br>of tax rate	3,116	431	11,517
Non-taxable<br>profit	(687)	(1,383)	(625)
Non-deductible<br>expenses	1,718	(176)	210
Others	80	1,856	2,726
Inflation<br>adjustment permanent difference	4,086	986	10
Income tax from continuing operations	(8,548)	(571)	10,195

(i)

Corresponds mainly to holding companies in the Operations Center in Israel.

F-92

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Deferred tax assets and liabilities of the Group as of June 30, 2020 and 2019 will be recovered as follows:

	06.30.20	06.30.19
Deferred<br>income tax assets to be recovered<br>after more than 12 months	16.954	13.785
Deferred<br>income tax assets to be recovered<br>within 12 months	1.299	2.611
Deferred<br>income tax assets	18.253	16.396
	06.30.20	06.30.19
Deferred<br>income tax liabilities to be recovered<br>after more than 12 months	(67.089)	(55.482)
Deferred<br>income tax liabilities to be recovered<br>within 12 months	(3.422)	(21.653)
Deferred<br>income tax liabilities	(70.511)	(77.135)
Total<br>deferred income tax (liabilities) assets, net	(52.258)	(60.739)

The movement in the deferred income tax assets and liabilities during the years ended June 30, 2020 and 2019, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

	At the beginning	Business combinations and reclassification to other assets held for<br>sale	Foreign exchange gain	Charged to the Statement of Income	Reserve for changes of non-controlling interest	Deconsolidation (see Note 4 (l))	Use of tax loss carry-forwards	At the end
June 30, 2020
Assets
Trade<br>and other payables	6,207	(1)	929	(898)	-	-	(464)	5,773
Tax<br>loss carry-forwards	8,509	-	864	978	-	-	(89)	10,262
Others	1,680	(3)	161	297	83	-	-	2,218
Subtotal assets	16,396	(4)	1,954	377	83	-	(553)	18,253
Liabilities
Investment<br>properties and property, plant and equipment	(65,762)	(601)	1,401	(9,586)	-	220	16,119	(58,209)
Biological<br>assets	(552)	-	79	(207)	-	-	-	(680)
Trade<br>and other receivables	(957)	-	-	(36)	-	-	-	(993)
Investments	(78)	-	(86)	64	-	-	-	(100)
Intangible<br>assets	(2,439)	-	(549)	412	-	-	-	(2,576)
Tax<br>inflation adjustment	(4,721)	(36)	-	(1,998)	-	-	-	(6,755)
Borrowings	(1,139)	-	(304)	416	-	-	-	(1,027)
Inventories	(783)	(3)	144	(53)	-	-	-	(695)
Others	(704)	(638)	(585)	2,647	-	-	(196)	524
Subtotal liabilities	(77,135)	(1,278)	100	(8,341)	-	220	15,923	(70,511)
(Liabilities) / Assets, net	(60,739)	(1,282)	2,054	(7,964)	83	220	15,370	(52,258)
	At the beginning	Business combinations and reclassification to other assets held for<br>sale	Foreign exchange gain	Charged to the Statement of Income	Reclassification of opening amounts	Use of tax loss carry-forwards	At the end
---	---	---	---	---	---	---	---
June 30, 2019
Assets
Trade<br>and other payables	5,017	-	208	982	-	-	6,207
Tax<br>loss carry-forwards	14,019	-	(332)	(5,178)	-	-	8,509
Others	2,185	-	(74)	(740)	309	-	1,680
Subtotal assets	21,221	-	(198)	(4,936)	309	-	16,396
Liabilities
Investment<br>properties and property, plant and equipment	(74,324)	-	1,139	8,439	69	(1,085)	(65,762)
Biological<br>assets	(386)	-	2	(168)	-	-	(552)
Trade<br>and other receivables	(577)	-	3	(383)	-	-	(957)
Investments	(32)	-	(14)	(32)	-	-	(78)
Intangible<br>assets	(3,213)	-	282	492	-	-	(2,439)
Tax<br>inflation adjustment	-	-	-	(4,721)	-	-	(4,721)
Borrowings	(1,385)	-	100	146	-	-	(1,139)
Inventories	(217)	-	32	(598)	-	-	(783)
Others	(2,830)	-	674	1,452	-	-	(704)
Subtotal liabilities	(82,964)	-	2,218	4,627	69	(1,085)	(77,135)
(Liabilities) / Assets, net	(61,743)	-	2,020	(309)	378	(1,085)	(60,739)

F-93

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefits through future taxable profits is probable. Tax loss carry-forwards may have expiration dates or may be permanently available for use by the Group depending on the tax jurisdiction where the tax loss carry forward is generated. Tax loss carry forwards in Argentina and Uruguay generally expire within 5 years, while in Israel they do not expire. Tax loss carry forward in Bolivia expire within 3 years. Tax loss carry forwards in Brazil do not expire. However, in Brazil, the taxable profit for each year can only be reduced by tax losses up to a maximum of 30%.

As of June 30, 2020, the Group's recognized tax loss carry forward prescribed as follows:

Jurisdiction	06.30.20	Date of generation	Due date
Argentina	3	2016	2021
Argentina	12	2017	2022
Argentina	2,998	2018	2023
Argentina	1,277	2019	2024
Argentina	5,177	2020	2025
Bolivia	1	2011-2020	Do not<br>expire
Do<br>not expire	4,074
Total cumulative tax loss carry-forwards	13,542

The Group assesses the realizability of deferred income tax assets, by considering whether it is probable that some portion or all of the deferred income tax assets will not be realized. In order to make this assessment, Management considers the scheduled reversal of deferred income tax liabilities, projected business and tax planning strategies.

On this basis, it is estimated that as of June 30, 2020, all deferred tax assets and tax credits will be realized.

The Group did not recognize deferred income tax assets (tax loss carry forwards) of Ps. 491,228 and Ps. 358,210 as of June 30, 2020 and 2019, respectively. Although management estimates that the business will generate sufficient income, pursuant to IAS 12, management has determined that, as a result of the recent loss history and the lack of verifiable and objective evidence due to the subsidiary’s results of operations history, there is sufficient uncertainty as to the generation of sufficient income to be able to offset losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

The Group did not recognize deferred income tax liabilities of Ps. 97 and Ps. 93 as of June 30, 2020 and 2019, respectively, related to their investments in foreign subsidiaries, associates and joint ventures. In addition, the withholdings and/or similar taxes paid at source may be creditable against the Group’s potential final tax liability.

On June 30, 2020 and 2019, the Group recognized a deferred liability in the amount of Ps. 975 and Ps. 1,010, respectively, related to the potential future sale of one of its subsidiaries shares.

IDBD and DIC assess whether it is necessary to recognize deferred tax liabilities for the temporary differences arising in relation to its investments in subsidiaries; in this respect, IDBD, DIC and PBC estimate that if each of them is required to dispose of its respective holdings in subsidiaries, they would not be liable to income tax on the sale and, for such reason, they did not recognize the deferred tax liabilities related to this difference in these Consolidated Financial Statements.

24.

Leases

The Group as lessee

Operating leases

In the ordinary course of business, the Group enters into several operating lease agreements. Group conducts a portion of its agricultural activities on land rented from third parties under operating lease contracts averaging a harvest year. Rent expense for the years ended as of June 30, 2020, 2019 and 2018 amounted to Ps. 694, Ps. 290.2 and Ps. 478, respectively and is included in the line item "Costs" in the Statement of Income.

The Group is also using land in the Province of Salta under rights of use agreement (the "Anta Agreement") for which the Group is currently paying a rent fee of 10% of the production. Rent expense paid for the years ended as of June 30, 2020, 2019 and 2018 amounted to Ps. 111, Ps. 79 and Ps. 98, respectively and is included in the line item "Costs" in the Statement of Income.

The Group leases property or spaces for administrative or commercial use both in Argentina and in Israel, under operating leases. The agreements entered into include several clauses, including but not limited, to fixed, variable or adjustable payments. Some leases were agreed upon with related parties (Note 32). The amounts involved are not material for any of the periods filed.

F-94

The future aggregate minimum lease payments the Group will have to cancel under non-cancellable operating leases were as follows:

	06.30.20	06.30.19	06.30.18
No later than 1<br>year	2,614	10,577	6,190
Later than 1 year<br>and not later than 5 years	5,824	16,320	11,969
More than 5<br>years	2,580	2,259	2,885
	11,018	29,156	21,044

The Group as lessor

Operating leases (Shopping malls, offices and other buildings)

In the segments Shopping malls and Offices and Others in the Operations Center in Argentina and in the segment Real Estate of the Operations Center in Israel, the Group enters into operating lease agreements typical in the business. Given the diversity of properties and lessees, and the various economic and regulatory jurisdictions where the Group operates, the agreements may adopt different forms, such as fixed, variable, adjustable leases, etc. For example, in the Operations Center in Argentina, operating lease agreements with lessees of Shopping malls generally include escalation clauses and contingent payments. In Israel, agreements tend to be agreed upon for fixed amounts, although in some cases they may include adjustment clauses. Income from leases are recorded in the Statement of Income under rental and service income in all of the filed periods.

Rental properties are considered to be investment property. Book value is included in Note 9. The future minimum proceeds generated from non-cancellable operating leases from Group’s Shopping malls, offices and other buildings are as follows:

	06.30.20	06.30.19	06.30.18
No later than 1<br>year	1,304	14,228	12,201
Later than 1 year<br>and not later than 5 years	23,752	32,007	54,923
More than 5<br>years	11,490	22,994	20,052
	36,546	69,229	87,176

Operating leases (Farmlands)

From time to time, the Group leases certain farmlands. The leases have an average term of one crop year. Rental income is generally based on the market price of a particular crop multiplied by a fixed amount of tons per hectare leased or based on a fixed amount in dollars per hectare leased.

The future aggregate minimum lease proceeds under non-cancellable operating leases from the Group are as follows:

	06.30.20	06.30.19	06.30.18
No later than 1<br>year	131	94	65
Later than 1 year<br>and not later than 5 years	159	260	172
More than 5<br>years	-	8	18
	290	362	255

Finance leases:

The Group does not act as a lessor in connection with finance leases.

25.

Revenues

	06.30.20	06.30.19	06.30.18
Beef	6,705	6,205	5,190
Crops	12,339	7,007	5,842
Sugarcane	3,420	2,855	2,205
Cattle	1,428	672	775
Supplies	1,126	825	452
Dairy	-	557	255
Consignment	642	620	289
Advertising and<br>brokerage fees	792	1,000	417
Agricultural rental<br>and other services	993	257	809
Income<br>from agricultural sales and services	27,445	19,998	16,234
Trading properties<br>and developments	785	1,169	304
Communication<br>services	-	-	-
Sale of<br>communication equipment	-	-	-
Rental and<br>services	10,143	15,723	16,590
Hotel operations,<br>tourism services and others	4,280	3,162	2,626
Total<br>revenues	42,653	40,052	35,754

F-95

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

26.

Costs

	06.30.20	06.30.19	06.30.18
Other operative<br>costs	27	26	38
Cost<br>of property operations	27	26	38
Beef	5,476	5,554	4,890
Crops	10,536	6,632	4,730
Sugarcane	3,222	2,488	2,097
Cattle	1,746	780	806
Supplies	901	851	357
Dairy	-	-	185
Consignment	703	143	72
Advertising and<br>brokerage fees	500	428	331
Agricultural rental<br>and other services	295	286	429
Costs<br>of agricultural sales and services	23,379	17,162	13,897
Trading properties<br>and developments	737	397	-
Communication<br>services	-	-	-
Sale of<br>communication equipment	-	-	-
Rental and<br>services	2,399	5,252	5,807
Hotel operations,<br>tourism services and others	3,250	1,877	1,943
Total<br>costs	29,792	24,714	21,685

27.

Expenses by nature

The Group disclosed expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following tables provide additional disclosure regarding expenses by nature and their relationship to the function within the Group as of June 30, 2020, 2019 and 2018.

	Production<br>costs	Costs (i)	General<br>and administrative expenses	Selling<br>expenses	Total<br>as of 06.30.20
Leases, services<br>charges and vacant property costs	10	177	36	23	246
Depreciation and<br>amortization	1,477	482	191	14	2,164
Doubtful<br>accounts	-	96	-	290	386
Advertising,<br>publicity and other selling expenses	-	554	-	133	687
Taxes, rates and<br>contributions	50	516	127	1,431	2,124
Maintenance and<br>repairs	95	2,012	368	8	2,483
Fees and payments<br>for services	36	2,614	572	122	3,344
Director's<br>fees	-	-	655	-	655
Payroll and social<br>security liabilities	604	3,121	1,680	281	5,686
Cost of sale of<br>goods and services	-	1,049	-	-	1,049
Cost of sale of agricultural products and biological<br>assets	-	13,187	-	-	13,187
Supplies and<br>labors	9,027	5,679	2	97	14,805
Freights	84	58	-	1,354	1,496
Commissions<br>and bank charges	-	6	108	-	114
Conditioning and<br>clearance	-	-	-	193	193
Travel, library<br>expenses and<br>stationery	52	54	82	27	215
Interconnection and<br>roaming expenses	-	113	-	-	113
Fees to other<br>operators	-	-	-	-	-
Others	873	74	49	123	1,119
Total<br>expenses by nature as of<br>06.30.20	12,308	29,792	3,870	4,096	50,066
	Production costs	Costs<br>(i)	General<br>and administrative expenses	Selling<br>expenses	Total as of 06.30.19
---	---	---	---	---	---
Leases, services<br>charges and vacant property costs	11	186	62	21	280
Depreciation and<br>amortization	628	389	160	10	1.187
Doubtful<br>accounts	-	6	-	125	131
Advertising,<br>publicity and other selling expenses	-	597	26	181	804
Taxes, rates and<br>contributions	54	677	132	1.299	2.162
Maintenance and<br>repairs	106	2.380	340	12	2.838
Fees and payments<br>for services	32	2.074	600	117	2.823
Director's<br>fees	-	-	991	-	991
Payroll and social<br>security liabilities	557	3.630	1.967	272	6.426
Cost of sale of<br>goods and services	-	882	-	-	882
Cost of sale of<br>agricultural products and biological assets	-	8.078	-	-	8.078
Supplies and<br>labors	8.606	5.527	2	48	14.183
Freights	66	38	-	705	809
Commissions and<br>bank charges	-	78	86	3	167
Conditioning and<br>clearance	-	-	-	131	131
Travel, library<br>expenses and stationery	68	65	128	29	290
Interconnection and<br>roaming expenses	-	-	-	-	-
Fees to other<br>operators	-	-	-	-	-
Others	357	107	59	45	568
Total<br>expenses by nature as of 06.30.19	10.485	24.714	4.553	2.998	42.750

F-96

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

	Production costs	Costs (i)	General and administrative expenses	Selling expenses	Total as of 06.30.18
Leases,<br>services charges and vacant property costs	5	132	52	20	209
Depreciation<br>and amortization	538	285	150	10	983
Doubtful<br>accounts	-	8	-	212	220
Advertising,<br>publicity and other selling expenses	-	746	14	228	988
Taxes,<br>rates and contributions	57	688	160	1,021	1,926
Maintenance<br>and repairs	126	2,576	347	22	3,071
Fees<br>and payments for services	14	940	629	110	1,693
Director's<br>fees	-	-	742	-	742
Food,<br>beverage and other lodging expenses	-	108	8	25	141
Payroll and social<br>security liabilities	654	3,915	1,709	272	6,550
Cost<br>of sale of goods and services	-	234	-	-	234
Cost<br>of sale of agricultural products and biological assets	-	6,879	-	-	6,879
Supplies<br>and labors	5,061	5,025	3	29	10,118
Freights	57	3	-	883	943
Bank<br>commissions and expenses	-	-	26	-	26
Conditioning<br>and clearance	-	-	-	165	165
Travel, library expenses<br>and stationery	43	8	22	8	81
Interconnection<br>and roaming expenses	-	-	-	-	-
Fees<br>to other operators	-	-	-	-	-
Others	945	138	141	62	1,286
Total expenses by nature as of 06.30.18	7,500	21,685	4,003	3,067	36,255

28.

Other operating results, net

	06.30.20	06.30.19	06.30.18
Gain<br>from commodity derivative financial instruments	473	480	60
(Loss)<br>/ Gain from disposal of associates	(7)	(161)	-
Fair<br>value of interest held before business combination	-	-	1,356
Currency<br>translation adjustment reversal	-	-	512
Operating<br>interest expense	1,282	478	(240)
Gain<br>from agreement with TGLT	-	-	203
Contingencies	(142)	(109)	(101)
Donations	(110)	(222)	(169)
Others<br>(i)	273	(80)	18
Total other operating results, net	1,769	386	1,639

(i)

As of June 30, 2018, includes the favorable ruling of a trial in the Operations Center in Israel for an amount of approximately Ps. 1,254. Includes legal costs and expenses Includes legal costs and expenses.

29.

Financial results, net

	06.30.20	06.30.19	06.30.18
Financial income
Interest<br>income	317	216	883
Dividends<br>income	15	16	105
Other<br>financial income	-	2	-
Total financial income	332	234	988
Financial costs
Interest<br>expenses	(10,543)	(7,285)	(5,642)
Loss<br>on debt swap (Note 21)	-	-	-
Other<br>financial costs	(749)	(622)	(547)
Less:<br>capitalized financial costs	122	255	38
Total financial costs	(11,170)	(7,652)	(6,151)
Other financial results:
Exchange<br>differences, net	(10,946)	2,571	(20,764)
Fair<br>value results of financial assets and liabilities at fair value<br>through profit or loss	1,026	1,128	2,238
Loss<br>from repurchase of Non-convertible notes	95	80	(5)
(Loss)<br>/ Gain from derivative financial instruments (except<br>commodities)	(1,497)	560	(798)
Total other financial results	(11,322)	4,339	(19,329)
Inflation<br>adjustment	189	(492)	(346)
Total financial results, net	(21,971)	(3,571)	(24,838)

F-97

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

30.

Earnings per share

(a)

Basic

Basic earnings per share amounts are calculated in accordance with IAS 33, by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the year, excluding ordinary shares purchased by the Group and held as treasury shares.

	06.30.20	06.30.19	06.30.18
Loss for the year<br>from continuing operations attributable to equity holders of the parent	8,420	(26,092)	2,460
Profit for the year<br>from discontinued operations attributable to equity holders of the parent	(4,190)	(2,756)	4,113
Profit / (Loss) for<br>the year attributable to equity<br>holders of the parent	4,230	(28,848)	6,573
Weighted average<br>number of ordinary shares outstanding	(499)	489	497
Basic<br>earnings per share	(8.47)	(58.99)	13.23

(b)

Diluted

Diluted earnings per share amounts are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential shares. As of June 30, 2018, the Group holds treasury shares associated with incentive plans with potentially dilutive effect, therefore, diluted earnings per share is as follows:

	06.30.18
Loss for the year<br>from continuing operations attributable to equity holders of the parent	2,460
Profit for the year<br>from discontinued operations attributable to equity holders of the parent	4,113
Profit for the year<br>per share attributable to equity<br>holders of the parent	6,573
Weighted average<br>number of ordinary shares outstanding	516
Diluted<br>earnings per share	12.73

Given that the results for the years ended June 30, 2019 and 2017 showed losses, there is no diluted effect of said results.

31.

Employee benefits and share-based payments

Incentive Plan

The Group has an equity incentive plan, created in September 30, 2011, which aims at certain selected employees, directors and top management of the Company, IRSA and IRSA CP (the “Participants”). Participation in the plan was voluntary and employees were invited to participate by the Board.

Under the Incentive Plan, entitle the Participants to receive shares ("Contributions") of the Company and IRSA, based on a percentage of their annual bonus for the years 2011, 2012 and 2013, providing they remain as employees of the Company for at least five years, among other conditions, required to qualify such Contributions (except in case of disability or death, where there is no time limit). Contributions shall be held by the Company and IRSA, and as the conditions established by the Plan are verified, such contributions shall be transferred to the Participants only when the employees retire from the Company. In spite of this, the economic rights of the shares in the portfolio assigned to said participants will be received by them.

As of June 30, 2020, 2019 and 2018, a reserve has been set up under Shareholders’ equity as a result of this Incentive Plan for Ps. 55, Ps. 54 and Ps. 97, respectively, based on the market value of the shares to be granted pertaining to the Group’s contributions, proportionately to the period already elapsed for the vesting of shares in the Incentive Plan and adjusted for the probability that any beneficiary leaves the Group before the term and/or the conditions required to qualify for the benefits of said plan are met at each fiscal year-end.

For the fiscal years ended June 30, 2018, the Group has incurred a charge related to the Incentive Plan of Ps. 30 and total cost was recorded considering that the vesting period has elapsed.

During the fiscal years ended June 30, 2020, 2019 and 2018, the Group granted 0.48, 0.52 and 0.45 million shares, respectively, corresponding to the Participants’ Contributions.

Movements in the number of matching shares outstanding under the incentive plan corresponding to the Company´s contributions are as follows

	06.30.20	06.30.19	06.30.18
At the beginning	5,346,643	5,485,194	5,834,676
Granted	(519,766)	(518,731)	(349,482)
Disposals	-	-	-
At the end	4,826,877	4,966,463	5,485,194

F-98

The fair value determined at the time of granting the plan after obtaining all the corresponding authorizations was Ps. 25.3 per share of IRSA and Ps. 17.71 per share of Cresud. This fair value was estimated by taking into account the market price of the shares of the Company on said date.

Defined contribution plan

The Group operates a defined contribution plan (the “Plan”) which covers certain selected managers from Argentina. The Plan was effective as from January 1, 2006. Participants can make pre-tax contributions to the Plan of up to 2.5% of their monthly salary (“Base Contributions”) and up to 15% of their annual bonus (“Extraordinary Contributions”). Under the Plan, the Group matches employee contributions to the plan at a rate of 200% for Base Contributions and 300% for Extraordinary Contributions.

All contributions are invested in funds administered outside of the Group. Participants or their assignees, as the case may be, will have access to the 100% of the Company contributions under the following circumstances:

(i) ordinary retirement in accordance with applicable labor regulations;

(ii) total or permanent incapacity or disability;

(iii) death.

In case of resignation or termination without fair cause, the manager will receive the Group’s contribution only if he or she has participated in the Plan for at least 5 years.

Contributions made by the Group under the Plan amount to Ps. 55 and Ps. 65 for the fiscal years ended June 30, 2020 and 2019, respectively.

Share base plans associated with certain key members of the management - Israel

DIC and Cellcom have granted an options benefit plans to key management personnel. For the years ended June 30, 2020, 2019 and 2018, the Group has incurred an expense in relation to said benefit plans of Ps. 11, Ps. 68 and Ps. 71, respectively.

The following table shows the detail of the options pending at year-end:

	DIC	Cellcom
Exercise price<br>range of outstanding options	NIS<br>6.90 – 12.5	NIS<br>15.05 – 27.7
Average price of<br>outstanding options	NIS<br>6.72	NIS<br>17.8
Amount of<br>outstanding options	2,124,000	759,332
Average remaining<br>useful life	4.43<br>years	3.4<br>years

The fair value of the options was calculated according to the Black-Scholes method, which included assumptions such as the value of the share at the date of granting the plan, expected volatility, expected life of the option or the risk-free rate.

Employee benefits - Israel

Benefits to hired employees include post-employment benefits, retirement benefits, share-based plans and other short and long-term benefits. The Group’s liabilities in relation to severance pay and/or retirement benefits of Israeli employees are calculated in accordance with Israeli laws.

	June 30, 2020	June 30, 2019	June 30, 2018
Present<br>value of unfunded obligations	-	615	703
Present<br>value of funded obligations	1,363	819	825
Total present value of defined benefits obligations<br>(post-employment)	1,363	1,434	1,528
Fair<br>value of plan assets	(936)	(1,245)	(1,316)
Recognized liability for defined benefits obligations	427	189	212
Liability<br>for other long-term benefits	793	682	33
Total recognized liabilities	1,220	871	245
Assets<br>designed for payment of employee benefits	(773)	(683)	-
Net position from employee benefits	447	188	245

Employee long-term incentive - Brasilagro

On October 2, 2017, the Shareholders approved the creation of the Long Term Incentive Plan based on Shares (or "ILPA Plan"). By the terms of the ILPA Plan, participants will be entitled to receive a number of shares if they remain in the Company during certain period of time and comply with certain key performance indicators ("KPIs"). The terms of the ILPA Plan determine that the Board of Directors will have broad powers to implement the ILPA Plan and take all necessary measures for its implementation.

F-99

The shares to be granted under the ILPA Plan may not exceed at any time the maximum and cumulative amount of 2% of the shares issued by the Company.

The first award of incentives was approved by the Board of Directors on June 18, 2018, the date on which the First ILPA Program was approved and the beneficiaries, the number of shares to be delivered, the vesting period and the KPIs to be reached were defined.

The vesting period for the first ILPA Program is between October 2, 2017 and October 2, 2019 and the participants were selected among those who acted as company’s employees at the beginning of the vesting period considering their position in the company and its related remuneration as of that date.

Certain KPIs must be achieved for shares to be delivered to participants, in addition to remain in the Company until the end of the vesting period. One of the KPIs is to reach a certain percentage of valuation in the price of AGRO3 shares during the vesting period: If this percentage is not reached, the participants will not be entitled to receive any share. In the event that the KPI for the valuation of the shares is fulfilled, the number of shares to be delivered will vary in 3 ranges depending on the level of achievement of another 3 KPI, in addition to being adjusted by the dividends per share distributed during the vesting period, as well as an increase in a fixed amount if the value of the share is above the floor value.

The fair value of the benefit was estimated at Ps. 0.11. In the initial measurement of the fair value of the benefit, the price of the AGRO3 per share was considered on the date of granting and the probable quotation of the share price is projected at the end of the vesting period based on the past performance of the price per share in a period of 1 year and 4 months (compatible with the period between the granting in June 2018 and the end of the vesting period in October 2018). Considering the volatility of the AGRO3 share, the probability of the price per share at the end of the vesting period was determined to reach the value necessary to comply with the KPI.

To determine the number of shares and the amount of the remuneration expense, the Company determines for each year the estimated amount of shares to be delivered based on its best estimate of the amount of each of the 3 KPIs which do not depend on the price of the shares and the dividends to be paid in the same vesting period. The amount of the expense is adjusted based on said estimate and the effects recognized prospectively. The estimated expense is recognized as of the granting in June 2018 ratably during the vesting period between October 2, 2017 and October 2, 2019.

In the year ended June 30, 2020, compensation expenses and remuneration charges are Ps. 48.7 (Ps. 21.2 and Ps. 57.8 as of June 30, 2019 and 2018, respectively) and the accumulated amount is Ps. 83.

32.

Related party transactions

In the normal course of business, the Group conducts transactions with different entities or parties related to it. All transactions are carried out in accordance with market parameters.

Remunerations of the Board of Directors

The Act N° 19,550 provides that the remuneration of the Board of Directors, where it is not set forth in the Company’s by-laws, shall be fixed by the Shareholders' Meetings. The maximum amount of remuneration that the members of the Board are allowed to receive, including salary and other performance-based remuneration of permanent technical-administrative functions, may not exceed 25% of the profits.

Such maximum amount will be limited to 5% where no dividends are distributed to the Shareholders, and will be increased proportionately to the distribution, until reaching such cap where the total of profits is distributed.

Some of the Group's Directors are hired under the Employment Contract Act N° 20,744. This Act rules on certain conditions of the work relationship, including remuneration, salary protection, working hours, vacations, paid leaves, minimum age requirements, workmen protection and forms of suspension and contract termination. The remuneration of directors for each fiscal year is based on the provisions established by the Act N° 19,550, taking into consideration whether such directors perform technical-administrative functions and depending upon the results recorded by the Company during the fiscal year. Once such amounts are determined, they should be approved by the Shareholders’ Meeting.

F-100

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Senior Management remuneration

The members of the Senior or Top Management are appointed and removed by the Board of Directors, and perform functions in accordance with the instructions delivered by the Board itself.

The Society’s Senior Management is composed of as follows:

Name	Date of birth	Position	Current<br>position since
Alejandro<br>G. Elsztain	03/31/1966	General<br>Manager	1994
Carlos<br>Blousson	09/21/1963	General<br>Manager of Operations in Argentina and Bolivia	2008
Matías<br>I. Gaivironsky	02/23/1976	Administrative<br>and Financial Manager	2011
Alejandro<br>Casaretto	10/15/1952	Regional<br>Agricultural Manager	2008

The remuneration earned by Senior Management for their functions consists of an amount that is fixed taking into account the manager's backgrounds, capacity and experience, plus an annual bonus based on their individual performance and the Group's results. Members of the senior management participate in defined contributions and share-based incentive plans that are described in Note 30, respectively.

The aggregate compensation to the Senior Management of the Operations Center in Argentina for the year ended June 30, 2020 amounts to Ps. 16.1.

Corporate Service Agreement with IRSA and IRSA CP

Considering that IRSA, Cresud and IRSA CP have operating overlapping areas, the Board of Directors considered it convenient to implement alternatives that allow reducing certain fixed costs of its activity, in order to reduce its impact on operating results, taking advantage of and optimizing the individual efficiencies of each of the companies in the different areas that make up the operational administration.

For this purpose, on June 30, 2004, a Framework Agreement for the Exchange of Corporate Services (“Framework Agreement”) was signed, between IRSA, Cresud and IRSA CP, which was periodically modified, the last update being on June 28, 2019.

Under this Framework Agreement, corporate services are currently provided in the following areas: Corporate Human Resources, Administration and Finance, Planning, Institutional Relations, Compliance, Shared Services Center, Real Estate Business Administration, Directory to distribute Real Estate, HR Real Estate Business, Security, Corporate Legal Management, Corporate Environment, Technical Management Infrastructure and Services, Purchasing and Contracting, Management and Enabling, Investments, Government Affairs, Hotels, Fraud Prevention, Bolivar, Proxy, General Management to distribute, Directory Security.

Under this agreement, the companies entrusted to an external consultant the semiannual review and evaluation of the criteria used in the process of liquidating corporate services, as well as the distribution bases and supporting documentation used in the aforementioned process, through the preparation of a semi-annual report.

It should be noted that the operation under comment allows Cresud, IRSA and IRSA CP to maintain absolute independence and confidentiality in their strategic and commercial decisions, being the allocation of costs and benefits made on the basis of operational efficiency and equity, without pursuing individual economic benefits for each of the companies.

Offices and Shopping malls spaces leases

The offices of our President are located at 108 Bolivar, in the Autonomous City of Buenos Aires. The property has been rented to Isaac Elsztain e Hijos S.A., a company controlled by some family members of Eduardo Sergio Elsztain, our president, and to Hamonet S.A., a company controlled by Fernando A. Elsztain, one of our directors, and some of its family members.

In addition, Tarshop, BACS, BHN Sociedad de Inversión S.A., BHN Seguros Generales S.A. and BHN Visa S.A. rent offices owned by IRSA CP in different buildings.

Furthermore, we also let various spaces in our Shopping malls (stores, stands, storage space or advertising space) to third parties and related parties such us Tarshop S.A. and BHSA.

Lease agreements entered into with associates included similar provisions and amounts to those included in agreements with third parties.

F-101

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Donations granted to Fundación IRSA and Fundación Museo de los Niños

Fundación IRSA is a non-profit charity institution that seeks to support and generate initiatives concerning education, the promotion of corporate social responsibility and the entrepreneurial spirit of the youth. It carries out corporate volunteering programs and fosters donations by the employees. The main members of Fundación IRSA's Board of Directors are Eduardo S. Elsztain (President), Saul Zang (Vice President I), Alejandro Elsztain (Vice President II) and Mariana C. de Elsztain (secretary). It funds its activities with the donations made by us, IRSA and IRSA CP. Fundación Museo de los Niños is a non-profit association, created by the same founders of Fundación IRSA and its Management Board is formed by the same members as Fundación IRSA.

Fundación Museo de los Niños acts as special vehicle for the development of "Museo de los Niños, Abasto" and "Museo de los Niños, Rosario". On October 29, 1999, our shareholders approved the award of the agreement “Museo de los Niños, Abasto” to Fundación Museo de los Niños.

On October 31, 1997, IRSA CP entered into an agreement with Fundación IRSA whereby it loaned 3,800 square meters of the area built in the Abasto Shopping Mall for a total term of 30 years, and on November 29, 2005, shareholders of IRSA CP approved another agreement entered into with Fundación Museo de los Niños whereby 2,670.11 square meters built in the Shopping Mall Alto Rosario were loaned for a term of 30 years. Fundación IRSA has used the available area to house the museum called “Museo de los Niños, Abasto” an interactive learning center for kids and adults, which was opened to the public in April 1999.

Legal services

The Group hires legal services from Estudio Zang, Bergel & Viñes, at which Saúl Zang was a founding partner and sits at the Board of Directors of the Group companies.

Hotel services

Our company and related parties sometimes rent from NFSA and Hoteles Argentinos S.A. hotel services and conference rooms for events.

Purchase-Sale of goods and/or services hiring

In the normal course of its business and with the aim of make resources more efficient, in certain occasions purchase and/or hire services which later sells and/or recover for companies or other related parties, based upon their actual utilization.

Sale of advertising space in media

Our company and our related parties frequently enter into agreements with third parties whereby we sell/acquire rights of use to advertise in media (TV, radio stations, newspapers, etc.) that will later be used in advertising campaigns. Normally, these spaces are sold and/or recovered to/from other companies or other related parties, based on their actual use.

Purchase-sale of financial assets

Cash surplus are usually invested in several instruments that may include those issued by related companies acquired at issuance or from unrelated third parties through transactions in the secondary market.

Investment in investment funds managed by BACS

The Group invests parts of liquid funds in mutual funds managed by BACS among other entities.

Borrowings

In the normal course of its activities, the Group enters into diverse loan agreements or credit facilities between the group’s companies and/or other related parties. These borrowings accrue interests at market rates.

Financial and service operations with BHSA

The Group works with several financial entities in the Argentine market for operations including, but not limited to, credit, investment, purchase and sale of securities and financial derivatives. Such entities include BHSA and its subsidiaries. BHSA and BACS usually act as underwriters in Capital Market transactions. In addition, we have entered into agreements with BHSA, who provides collection services for our shopping malls.

F-102

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

San Bernardo lease

The Company leased in January 2019 a farm in the Province of Córdoba owned by San Bernardo de Córdoba S.A. (formerly Isaac Elsztain e hijos S.C.A), continuing the lease held in August 2015, for a fraction of 12,590 hectares.

The lease was agreed for 12,590 hectares and the price was set at the amount of pesos equivalent to 2.5 kg of meat per hectare. The price of meat will be set taking into account the price per kilo of meat determined by the I.N.M.L (cattle index of the Liniers Market) reported on the website of said Market. Additionally, a production prize equivalent to 15% of the kilos produced in excess of 175,000 was agreed for the total of the existing property.

Consulting Agreement

In accordance with the terms of the Consulting Agreement, in force as from November 7, 1994, and its amendments, CAMSA provides us with advisory services on matters related to activities and investments included agricultural, real estate, financial and hotel operations, among others. An 85% of the capital stock of CAMSA is held by one of our shareholders and President of our Board of Directors, while the remaining 15% of the capital stock is owned by our First Vice President.

Based on the terms and conditions of the Consulting Agreement, CAMSA provides us with the following services:

● advise in relation to investing in all aspects of the agricultural business, real estate, financial, and hotel operations, among others, and business proposals;

● acts on behalf of our company in such transactions, negotiating prices, terms and conditions and other terms of each transaction; and

● provides advisory services on investments in securities related to such transactions.

As regards the Consulting Agreement, in consideration for its services we pay CAMSA an annual fee equal to 10% of our annual net income after tax. During fiscal year 2020, Ps. 238 was recognized in results for fee services. During fiscal year 2019, no charge was recognized. On January 10, 2019, the deferred fees for the 2012-2016 period and the accrued fees from 2017 to June 2018 corresponding to the management agreement signed with CAMSA for the total amount of Ps. 1,217 were paid. The payment was made approximately one third in cash, one third with shares of IRSA and one third with shares of IRSA CP, both owned by the Company.

The Consulting Agreement can be revoked by any of the parties upon prior written notice that should not exceed 60 days. If we revoke the Consulting Agreement without cause, we will be liable to pay CAMSA twice the average fee amounts paid for management services during the two fiscal years preceding such revocation.

The following is a summary presentation of the balances with related parties as of June 30, 2020 and 2019:

Item	06.30.20	06.30.19
Trade and other<br>payables	(351)	(422)
Borrowings	(225)	(80)
Trade and other<br>receivables	1,129	1,917
Investments in<br>Financial Assets	290	255
Total	843	1,670

F-103

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following is a summary of the results with related parties for the years ended June 30, 2020, 2019 and 2018:

Related party	06.30.20	06.30.19	Description of transaction
Agro<br>Uranga S.A.	-	14	Sale<br>of goods and / or services receivable
New<br>Lipstick LLC	17	15	Reimbursement<br>of expenses receivable
	(83)	(68)	Loans<br>payable
	-	1,354	Loans<br>granted
Condor	290	255	Public<br>companies securities
	-	23	Dividends<br>receivables
Other<br>associates and joint ventures (i)	90	17	Leases<br>and/or rights of use receivable
	9	-	Leases<br>and/or rights of use payable
	-	2	Shared-based<br>compensation receivable
	(29)	(12)	Loans<br>payable
	-	2	Loans<br>granted
	219	-	Sale<br>of goods and / or services payable
	131	12	Reimbursement<br>of expenses
	(1)	(6)	Reimbursement<br>of expenses payable
Total associates and joint ventures	643	1,608
CAMSA<br>and its subsidiaries	(205)	-	Fees<br>payable
	1	46	Reimbursement<br>of expenses receivable
BHN<br>Vida	(56)	-	Reimbursement<br>of expenses payable
LRSA	-	37	Leases<br>and/or rights of use receivable
	-	392	Dividends<br>receivables
IRSA<br>Real Estate Strategies LP	125	-	Reimbursement<br>of expenses
Taaman	-	(18)	Leases<br>and/or rights of use payable
PBS<br>Real Estate Holdings S.R.L	508	-	Financial<br>operations payable
Other<br>related parties (ii)	-	(100)	Other<br>liabilities
	-	3	Other<br>receivables
	(57)	-
	-	(3)	Legal<br>services payable
	19	-	Leases<br>and/or rights of use receivable
Total other related parties	335	357
IFISA	6	-	Financial<br>operations receivable
Total Parent Company	6	-
Directors<br>and Senior Management	(145)	(295)	Fees<br>payable
	4	-
Total Directors and Senior Management	(141)	(295)
Total	843	1,670

(i) Includes Agrofy Global, BHSA, Lipstick, Tarshop, Mehadrin, Austral Gold Ltd., Cyrsa S.A., NPSF, Puerto Retiro, Shufersal and Quality.

(ii) Includes Estudio Zang, Bergel & Viñes, Lartiyrigoyen, SAMSA and Museo de los Niños.

Related party	06.30.20	06.30.19	06.30.18	Description of transaction
Agrofy<br>S.A.	-	3	14	Management<br>fees / Directory
Agro-Uranga<br>S.A.	-	-	8	Sale<br>of goods and/or services
Banco<br>de Crédito y Securitización S.A.	55	58	46	Leases<br>and/or rights of use
	(5)	-	-	Financial<br>operations
Condor	-	-	306	Financial<br>operations
Tarshop<br>S.A.	-	63	-	Leases<br>and/or rights of use
ISPRO-MEHADRIN	-	32	318	Sale<br>of goods and/or services
Other<br>associates and joint ventures	10	63	72	Leases<br>and/or rights of use
	-	-	9	Fees<br>and remunerations
	(141)	32	91	Corporate<br>services
	40	11	3	Financial<br>operations
Total associates and joint ventures	(41)	262	867
CAMSA<br>and its subsidiaries	(227)	-	(1,568)	Management<br>fee
Taaman	-	49	428	Corporate<br>services
Willi-Food<br>International Ltd.	-	-	392	Corporate<br>services
Other<br>related parties (i)	(4)	34	29	Leases<br>and/or rights of use
	(25)	(17)	(25)	Fees<br>and remunerations
	-	-	12	Corporate<br>services
	(4)	(9)	(9)	Legal<br>services
	-	3	68	Financial<br>operations
	-	(35)	(35)	Donations
Total other related parties	(260)	25	(708)
IFISA	5	-	168	Financial<br>operations
Total Parent Company	5	-	168
Directors	(32)	(68)	(43)	Compensation<br>of Directors and senior management
	(437)	(588)	(517)	Fees<br>and remunerations
Senior<br>Management	(18)	(58)	(69)	Compensation<br>of Directors and senior management
Total Directors and Senior Management	(487)	(714)	(629)
Total	(783)	(427)	(302)

(i)

Includes Estudio Zang, Bergel & Viñes, Isaac Elsztain e Hijos S.C.A., San Bernando de Córdoba S.A., Fundación IRSA, Hamonet, BHN Sociedad de Inversión, BACS Administradora de Activos S.A., BHN Seguros Generales S.A. and BHN Vida S.A.

F-104

The following is a summary of the transactions with related parties for the years ended June 30, 2020 and 2019:

Related party	06.30.20	06.30.19	Description of transaction
Manibil	94	34	Irrevocable<br>contributions
Uranga<br>Trading S.A.	-	34	Irrevocable<br>contributions
Puerto<br>Retiro	18	29	Irrevocable<br>contributions
Quality	51	78	Irrevocable<br>contributions
Total contributions	163	175
Uranga<br>Trading S.A.	-	13	Dividends<br>paid
Total dividends paid	-	13
Agro-Uranga<br>S.A.	27	30	Dividends<br>received
Shufersal	431	714	Dividends<br>received
Nave<br>by the sea	-	51	Dividends<br>received
Banco<br>Hipotecario	-	122	Dividends<br>received
Condor	34	123	Dividends<br>received
Emco	17	93	Dividends<br>received
La<br>Rural S.A.	-	466	Dividends<br>received
Manaman	-	114	Dividends<br>received
Mehadin	-	152	Dividends<br>received
Nuevo<br>Puerto Santa Fe S.A.	41	15	Dividends<br>received
Gav-Yam	1,436	-	Dividends<br>received
Total dividends received	1,986	1,880
TGLT<br>S.A.	1,501	-	Compra<br>y canje de acciones
Gav-Yam	1,436	-	Dividends<br>received
Total other transactions	2,937	-

33.

Cost of goods sold and services provided

Description	Cost of sales and services from agricultural business<br>(i)	Cost of sales and services from sales and services from urban<br>properties and investment business (ii)	Total as of 06.30.20	Total as of 06.30.19	Total as of 06.30.18
Inventories at the beginning of the period / year	7,712	10,948	18,660	31,891	37,024
Adjustment<br>previous periods (IFRS 15 and 9)	-	-	-	(8,963)	-
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	2,194	-	2,194	1,372	742
Changes<br>in the net realizable value of agricultural products after<br>harvest	707	-	707	(46)	46
Deconsolidation	-	(167)	(167)	(706)	(15,459)
Capitalized<br>finance costs	-	13	13	18	26
Currency<br>translation adjustment	(878)	8,894	8,016	(2,063)	13,232
Acquisition<br>for business combination	-	-	-	-	912
Transfers	(381)	105	(276)	160	(754)
Harvest	11,453	-	11,453	8,623	6,672
Acquisitions<br>and classifications	8,907	62,015	70,922	71,925	53,058
Consume	(2,810)	-	(2,810)	(5,236)	369
Disposals<br>due to sales	-	(20)	(20)	-	(25)
Adquisition<br>for business combination	-	284	284	-	-
Expenses<br>incurred	3,521	-	3,521	2,813	2,839
Inventories at the end of the period / year	(7,046)	(12,762)	(19,808)	(18,660)	(31,891)
Costs as of 06.30.20	23,379	69,310	92,689	-	-
Costs as of 06.30.19	17,162	63,966	-	81,128	-
Costs as of 06.30.18	13,897	52,894	-	-	66,791

(i) Includes biological assets (see Note 13.)

(ii) Includes trade properties (see Note 11).

F-105

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

34.

Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Item (3) / Currency	Amount of foreign currency (2)	Prevailing exchange rate (1)	Total as of 06.30.20	Total as of 06.30.19
Assets
Trade and other receivables
US<br>Dollar	66	70.26	4,970	4,934
Euros	11	78.87	947	211
Trade and other receivables related parties
US<br>Dollar	4	70.26	322	234
Total Trade and other receivables			6,239	5,379
Investment in financial assets
US<br>Dollar	55	70.26	4,166	5,844
Pounds	1	86.90	84	74
Total Investment in financial assets			4,250	5,918
Derivative financial instruments
US<br>Dollar	1	70.26	88	66
Total Derivative financial instruments			88	66
Cash and cash equivalents
US<br>Dollar	221	70.26	16,732	18,370
Euros	20	78.87	1,668	111
Chilean<br>Pesos	-	-	-	2
Total Cash and cash equivalents			18,400	18,483
Total Assets			28,977	29,846
Liabilities
Trade and other payables
US<br>Dollar	208	70.46	15,811	12,135
Euros	3	87.36	328	55
Total Trade and other payables			16,139	12,190
Borrowings
US<br>Dollar	1,308	70.46	99,246	85,540
Total Borrowings			99,246	85,540
Derivative financial instruments
US<br>Dollar	4	70.46	310	103
Total Derivative financial instruments			310	103
Total Liabilities			115,695	97,833

(1)

Exchange rate as of June 30, of each year according to Banco Nación Argentina records.

(2)

Considering foreign currencies those that differ from each Group’s functional currency at each year-end.

(3)

The Group uses derivative instruments as complement in order to reduce its exposure to exchange rate movements (see Note 15).

35.

Groups of assets and liabilities held for sale

As mentioned in Note 4, the investment in Israir has been reclassified to "Group of assets and liabilities held for sale".

Pursuant to IFRS 5, assets and liabilities held for sale have been valued at the lower between their carrying value and fair value less cost of sale. Given some assets’ carrying value was higher, an impairment loss of Ps. 501 has been recorded for the year ended June 30, 2017.

The following table shows the main assets and liabilities classified as held for sale:

	06.30.20	06.30.19
Property, plant and<br>equipment	39,529	6,942
Intangible<br>assets	1,475	146
Investments in<br>associates	241	643
Deferred<br>income tax assets	876	312
Income tax<br>credit	3	-
Inventories	382	-
Trade and other receivables	2,822	3,233
Cash and cash<br>equivalents	1,842	1,102
Total<br>group of assets held for<br>sale	47,170	12,378
Trade and other<br>payables	11,186	5,216
Salaries and social<br>security liabilities	536	-
Employee<br>benefits	416	311
Deferred income tax<br>liability	2,133	55
Provisions	13	-
Borrowings	11,175	3,177
Total<br>group of liabilities held for<br>sale	25,459	8,759
Total<br>net financial assets held for<br>sale	21,711	3,619

F-106

36.

Results from discontinued operations

The results of discontinued operations include the operations of IDBD / DIC for the years ended June 30, 2020, 2019 and 2018, as further explained in Note 1 A).

	06.30.20	06.30.19	06.30.18
Revenues	111,485	107,316	253,256
Costs	(79,931)	(75,102)	(182,473)
Gross profit	31,554	32,214	70,783
Net<br>gain from fair value adjustment of investment<br>properties	(3,218)	5,256	5,952
General<br>and administrative expenses	(10,626)	(9,835)	(11,257)
Selling<br>expenses	(14,556)	(13,178)	(46,969)
Impairment<br>of associates	(2,659)	-	-
Other<br>operating results, net (i)	20,112	1,069	29,098
Profit from operations	20,607	15,526	47,607
Share<br>of profit of associates and joint ventures	1,559	149	(111)
Profit before financial results and income tax	22,166	15,675	47,496
Financial<br>income	1,449	2,172	1,102
Finance<br>costs	(18,330)	(19,501)	(25,367)
Other<br>financial results	(8,650)	2,075	(4,645)
Financial results, net	(25,531)	(15,254)	(28,910)
Profit before income tax	(3,365)	421	18,586
Income<br>tax	(181)	(2,125)	(2,813)
Profit for the period from discontinued operations	(3,546)	(1,704)	15,773
Profit for the period from discontinued operations attributable<br>to:
Equity<br>holders of the parent	(4,190)	(2,756)	4,113
Non-controlling<br>interest	644	1,052	11,660
Profit per share from discontinued operations attributable to<br>equity holders of the parent:
Basic	13.78	(5.64)	8.28
Diluted	13.23	(5.64)	7.97

37.

Economic framework of the Group’s business

The Company does business in a complex framework due to the macroeconomic conditions, whose main variables have recently shown high volatility, and also due to regulatory, social and political conditions, both at a national and international level.

Its operating income may be affected by the fluctuations in the inflation rate and in the exchange rate at which the peso is converted into other currencies, mainly the US dollar, the variations in interest rates, which have an impact on the cost of capital, the changes in governmental policies, capital controls and other local and international political or economic events.

In December 2019, a new coronavirus strain (SARS-COV-2), causing a severe acute respiratory syndrome (COVID-19), appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary actions intended to prevent the spread of the virus, including, travel bans, border shutdowns, closing of non-essential businesses, instructions to residents to practice social distancing and implementation of lockdowns, among others. The ongoing pandemic and these extraordinary governmental actions are affecting the worldwide economy and have rendered global financial markets highly volatile.

The first case of COVID-19 in Argentina was reported on March 3, 2020. As of September 21, 2020, more than 600,000 COVID-19 cases had been confirmed in Argentina. As a result, the Argentine Government implemented a series of health measures designed for the preventive and mandatory social isolation of the population nationwide that started on March 19, 2020 and was extended many times, most recently until October 11, 2020 (such extension may extend over time as long as the epidemiologic situation continues), which affected the domestic economy. Such measures are: the extension of the public health emergency situation, the total shutdown of the borders, the suspension of international and domestic flights and mid- and long-distance passenger land transportation, the suspension of artistic shows and sports events, the closing of non-essential businesses, including shopping malls and hotels.

These measures have significantly affected Argentine companies, which have faced drops in income and the deterioration of their flow of payments. In this context, the Argentine Government announced several actions intended to tackle the financial crisis of the companies adversely affected by the COVID-19 pandemic. In addition to the stagnation of the Argentine economy, there is an international crisis caused by the COVID-19 pandemic. In view of this scenario, a severe downturn in the Argentine economy is expected.

After several negotiations between the Argentine Government and the bondholders, the Argentine Government announced the execution of an agreement in principle with the main groups of bondholders in order to avoid the default. On August 28, 2020, the Government informed that the holders of 93.55% of the aggregate outstanding principal amount of all bonds have accepted a debt exchange and, on August 31, 2020, the Argentine Government obtained the consents required to exchange and/or amend 99.01% of the aggregate outstanding principal amount of all series of eligible bonds. As of the date of these financial statements, the new bonds are already being traded on the market.

F-107

However, the Government still faces the challenge of arriving at a successful renegotiation of the debt with the IMF. A favorable outcome for Argentina and the restructuring of its debt with the IMF would have a positive impact on the Argentine economy in the mid- and long-term. On the contrary, failure to reach an agreement with foreign private creditors might lead Argentina to default on its sovereign debt and, as a result, this situation may trigger restrictions on the companies’ ability to obtain new financing.

At a local level, the following circumstances may be noted:

●

In June 2020, the Estimador Mensual de Actividad Económica (“EMAE”) reported by the National Institute of Statistics and Census (Instituto Nacional de Estadísticas y Censos or INDEC) recorded a (12.3)% variation compared to the same month in 2019 and a (7.4)% variation compared to the previous month.

●

The market expectations survey prepared by the Central Bank in July 2020 called Relevamiento de Expectativas de Mercado (“REM”) forecasts that the retail inflation rate for 2020 will be 39.5%. The REM analysts foresee a (12.5)% decrease in the real GDP for 2020. In turn, they foresee a recovery in the economy for 2021 that will grow up to 5.6%. The economy is expected to grow during the third quarter of 2020 as the effects of the pandemic are perceived as transitory and economic recovery is expected to start soon.

●

The year-over-year inflation rate as of June 30, 2020 was 42.8%.

●

From July 2019 to June 2020, the peso depreciated 66% compared to the US dollar at the average wholesale exchange rate quoted by Banco de la Nación Argentina. In view of the foreign exchange restrictions in force since 2019, the gap between the official peso/US dollar exchange rate and the peso/US dollar exchange rate offered in the black market is almost 75%. This has an impact on the level of economic activity and detrimentally affects the reserves of the Argentine Central Bank. In addition, the current foreign exchange restrictions or those that may be imposed in the future may impair the Company’s ability to access the Sole Free FX Market (Mercado Único Libre de Cambio or MULC) to purchase the currency required to meet its financial obligations.

On September 15, 2020, the Argentine Central Bank issued Communication “A” 7106 which establishes, among other things, that entities with principal maturities falling due between October 15, 2020 and March 31, 2021 related to the issuance of foreign-currency denominated publicly-registered debt securities in Argentina by private sector clients or by the entities themselves, must submit to the Argentine Central Bank a refinancing plan based on the following criteria: (a) the net amount for which access to the foreign exchange is granted within the original terms must not exceed 40% of the principal amount due, and (b) the remaining principal amount must have been refinanced through new foreign debt with an average life of at least 2 years. Therefore, the Company is analyzing the impact of this provision in order to comply with the Central Bank’s requirements in due time and manner, if applicable.

Series I Non-convertible Notes having a par value of USD 181,518,707 and other bank debts shall become due on November 15, 2020.

COVID-19 Pandemic

As it arises from the ‘Economic framework of the Group’s business’ note, the COVID-19 pandemic is having an adverse impact on both the global and the Argentine economy and the Company’s business. Although the COVID-19 pandemic has had an impact nationwide on the business conducted by the Company, it is still too early to assess the total scope of its impact.

Below follows a description of the expected effects of the COVID-19 pandemic on the Company as of the date of these financial statements:

Agricultural business

The agricultural business of Cresud and its subsidiaries in Brazil, Paraguay and Bolivia continued to operate relatively normally; since the agricultural activity has been considered an essential activity in the countries where the Company operates. In any case, the effect of Covid-19 could cause changes in demand on a global scale and affect the prices of commodities in the international and local markets in the short term.

F-108

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Urban properties and investments business

Operations Center in Argentina

●

As a consequence of the preventive and mandatory social isolation, shopping malls across the country have been closed since March 20, 2020. Only those stores engaged in essential activities remain open such as pharmacies, supermarkets and banks whereas some food and clothing stores are offering delivery services and selling products on WhatsApp. In May and June, these measures were relaxed and certain activities were resumed in some marketplaces in the Argentine provinces such as Salta, Mendoza, Santa Fe and Córdoba. Actually, the shopping malls Alto Noa, Mendoza Plaza, Alto Rosario, La Ribera and Córdoba Shopping reopened under strict health and safety protocols providing for reduced shopping hours, social distancing and access controls. The shopping mall in Neuquén was reopened in July 2020 whereas the Distrito Arcos shopping mall, a premium open-air outlet in the City of Buenos Aires, was reopened early in August 2020. As of this date, 44% of the square meters of the Company’s Shopping Malls are open. Nevertheless, the uncertainty posed by this situation may cause the closing of stores that have already opened.

●

As a result of the shopping mall closings, the Company has decided to differ the invoicing and collection of the Monthly Guaranteed Amount (Valor Mensual Asegurado or V.M.A.) until September 30, 2020, with some exceptions, and not to collect the collective promotion fund during such period in an attempt to prioritize its long-term relationship with the lessees. Additionally, an increase in the delinquency rate of some lessees has been noticed. The ensuing impact on shopping malls has been a 30.5% decrease in income from rentals and services compared to the previous fiscal year and an 83% decrease compared to the last quarter of the previous fiscal year. Moreover, the allowance for bad debts is Ps. 328 million for the fiscal year ended June 30, 2020 and Ps. 201 million for the last quarter of the fiscal year.

●

As regards the rental of offices, although most of the lessees are working remotely, they are open under strict health and safety protocols. As of this date, the Company has not experienced any collection difficulties.

●

La Rural, the Buenos Aires and Punta del Este Convention Centers and the DIRECTV Arena stadium, which are owned directly or indirectly by the Company, are also closed since March 20. All scheduled conferences have been suspended, most of the fairs and conventions were postponed, and most of the scheduled shows in the DIRECTV Arena stadium have been cancelled. The reopening date of these premises is uncertain as well as the future calendar of fairs, conventions and shows.

●

In order to reduce the risk of the virus spreading and protect public health, the Libertador hotels in the City of Buenos Aires and the Llao Llao hotel in the province of Río Negro are temporarily closed and it is still uncertain when they will reopen and go back to normal operations. As regards Hotel Intercontinental in the city of Buenos Aires, it is operating only under a contingency and emergency plan. The impact of all the above on these financial statements has been a 32% decrease in income compared to the previous fiscal year and a 100% decrease compared to the same quarter of the previous year.

Operation Center Israel

●

The COVID-19 pandemic has had a negative impact on the market valuation of IDBD, DIC and operating subsidiaries due to the sharp fall in prices. The mandatory shutdown lasted almost 10 days and was then relaxed under strict health and safety protocols. The effects on the operating businesses have been diverse:

o as regards supermarkets (Shufersal) and agriculture (Mahadrin), the impact has been positive in the short-term as these are considered essential activities;

o as concerns telecommunications (Cellcom), in particular the international roaming service, there has been a decrease in consumption keyed to a significant drop in international tourism. Cellcom has taken actions to reduce such negative effects by cutting back on expenses and investments during the coronavirus crisis period, including staff downsizing measures.

o In PBC, the activities and income from real estate transactions have been adversely affected by the economic situation and the bans on circulation. Consequently, PBC’s cash flow is expected to be somehow vulnerable although it is not possible to estimate as of this date to which extent PBC has made an assessment of its investment properties showing signs of impairment and, as a consequence, a reduction in the value of its properties of Ps. 3,218 has been accounted for.

As regards the Group’s financial debt:

●

IRSA must honor the following maturities within the next 12 months: Series II Non-convertible Notes, having a par value of US$ 71.4, due on July 20, 2020; Series II Non-convertible Notes, having a par value of CLP 31,502.6 (equivalent to US$ 41 approximately), due on August 6, 2020; Series I Non-convertible Notes, having a par value of US$ 181.5, due on November 15, 2020, Series III Non-convertible Notes, having a par value of Ps. 381 (equivalent to US$5), due on February 21, 2021, Series IV Non-convertible Notes, having a par value of US$ 51.3, due on May 21, 2021 and a bank debt in an amount equivalent to US$14.3.

●

Our subsidiary, IRSA CP, must honor the maturity of its Series IV Non-convertible Notes, having a par value of US$ 140, which will become due in September 2020 and a bank debt of US$ 23.

F-109

●

The short-term financial debts of our subsidiaries, IDBD-DIC, have a nominal value of US$ 202 (including non-convertible notes and borrowing from banks and financial entities). It should be noted that such commitments have no effects on IRSA because such indebtedness is without recourse against IRSA and is not guaranteed by IRSA’s assets as described in Note 1 to these interim consolidated condensed financial statements.

In May and July 2020, IRSA issued US$ 105.4 non-convertible notes in the local market intended to refinance its short-term debt. The proceeds of such issuances were used by the Company to repay its Non-convertible Notes due on July and August 2020.

The alternatives that the Company is considering to refinance the repayment of its Non-convertible Notes due in November 2020, February 2021 and June 2021 are a capital increase in an approximate amount of US$ 70 / US$ 100 resolved at the annual shareholders’ meeting held in October 30, 2019 and obtaining financing in the domestic or international capital markets through new issues of debt securities or liability management transactions in the range of US$ 40 and US$ 100, in addition to the transactions already conducted in May and July. In addition, IRSA has a long-standing relationship with banks of the local financial system that may supplement and diversify the Company’s sources of financing in addition to capital market financing. Moreover, as part of our strategy, the Company may sell a portion of its portfolio of assets (hotels and/or land reserves and offices through its subsidiary, IRSA CP) to generate additional funds.

Lastly, IRSA CP has granted IRSA a three-year credit facility up to US$ 180, of which US$ 53.4 were used by IRSA on June 30, 2020. IRSA may still use the remaining balance of such facility and receive dividends from such company in its capacity as controlling shareholder of 80.65% of its capital stock. It should be noted that IRSA CP’s cash and cash equivalents (including current financial investments) as of June 30, 2020 amount to US$ 155 and, following the fiscal year-end, it sold office assets worth US$ 128.6. Moreover, it is working on different financing alternatives in pesos with local banks (syndicated loans and/or bilateral loans) in estimated amounts equivalent to USD 50 and USD 100 to discharge its short-term obligations and it may eventually resort to debt transactions in the local capital market.

The final effects of the coronavirus outbreak and its impact on the country’s economy is unknown and cannot be reasonably foreseen. Nevertheless, although it has had significant effects in the short-run, it is not expected that they will affect the continuation of business. Although there are short-term economic impacts, it is foreseen that the Company will be able to continue meeting its financial commitments in the following twelve months.

The Company is closely monitoring the situation and taking all necessary actions to preserve human life and the Company’s businesses.

38.

Subsequent events

Sale of Bananal Farmland

In July 2020, Brasilagro sold 2,160 hectares (of which 1,714 hectares were useful for crop production) of the “Bananal” farmland (municipality Magalhães - BA).The establishment was in groups of assets held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the Purchase Agreement were fully met on July 31, 2020 after receipt of R $ 5.5 (equivalent to Ps. 90). The amount of the sale was set at BRL 28 (equivalent to Ps. 422). The face value of the sale is BRL 7.5 (equivalent to Ps. 121) was received. It is not expected to obtain a result from this operation since the asset was valuated at its fair value.

Issuance of Cresud Notes

On August 31, 2020, after the close of the fiscal year, the seventeenth Series of Notes public tender was carried out, within the framework of the Program approved by the Shareholders Meeting, for up to USD 500, being the liquidation date on June 9, 2020. The main characteristics of the issuance are detailed bellow:

- Series XXX: denominated in USD and payable in ARS at the applicable exchange rate, as defined in the issuance documents, with a nominal value of USD 25.0, maturing 36 months from the date of issuance. At a fixed rate of 3.5%, maturing 18 months from the date of issuance with quarterly payments and principal expiring at maturity. The issue price was 100.0% of Nominal Value.

F-110

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

●

Sale of floors in the Boston Tower

On August 26, 2020, IRSA CP executed a preliminary sales agreement (with delivery of possession) with respect to 5 floors in the Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 6,235 sq. meters and 25 parking lots located in the building. The price of the transaction was Ps. 2,758 million (US$ 34.7 million), which has been paid in full.

Bouchard Sale

On July 30, 2020, IRSA CP sold the entire “Bouchard 710” building, located in the Plaza Roma district of the City of Buenos Aires. The tower has a gross leasable area of 15,014 sq. meters divided into 12 floors for office use and 116 parking lots. The price of the transaction was approximately Ps. 6,782 million (US$ 87 million), which has been paid in full.

Issuance of IRSA Non-convertible Notes

On July 21, 2020, subsequently to the closing of the fiscal year, the Company issued USD 38.4 Non-convertible Notes in the local market through the following instruments:

●

Ps. 360.9 million (equivalent to USD 4.7 million) Series VI NCNs denominated and payable in Argentine pesos at a variable rate (Private Badlar) + 4.0%, with interest accruing on a quarterly basis. The principal amount is repayable in two installments: the first one -equal to 30% of the par value of the notes- payable on the date that is 9 (nine) months after the Issue and Settlement Date and the second installment -equal to 70% of the par value of the notes- payable on the relevant due date, i.e. July 21, 2021. Notes were issued at 100% of their par value.

●

US$ 33.7 million Series VII NCNs denominated in US$ and payable in Argentine pesos at the applicable exchange rate, at a fixed 4.0% rate, with interest accruing on a quarterly basis. Repayment of capital is due on January 21, 2021. Notes were issued at 100% of their par value. The proceeds will be used to refinance short-term indebtedness.

Payment of non-convertible notes

On July 20, 2020, the Company paid the twentieth interest installment and the principal installment of the US$ 75 Series II Non-convertible Notes issued on July 20, 2010.

On August 6, 2020, the Company paid the second interest installment and the principal installment of the US$ 47 Series II Non-convertible Notes issued on August 6, 2019.

Payment of IRSA CP’s Series IV Non-convertible Notes

On September 14, 2020, the aggregate principal amount of the Series IV Non-convertible Notes in the amount of Ps. 11,176 (US$ 140) and interest accrued as of such date in the amount of Ps. 144 (US$ 1.8) were paid.

Sale of remaining shares in Shufersal

On July 22, 2020, DIC accepted a private investors’ offer to purchase its aggregate shares in Shufersal, representing 26% of the capital stock, in the amount of NIS 1,456 million (NIS 23.5 per share). After the sale, DIC does no longer have any equity interest in such company.

Cellcom

On August 13, 2020, the Israeli Ministry of Communications approved the acquisition of Golan by Cellcom subject to certain conditions. It is worth noting that by such date the Antitrust Commissioner had already granted clearance.

On August 26, 2020, Cellcom informed that it completed the acquisition of Golan in consideration for approximately NIS 545 million in the aggregate, plus the cash equivalents held by Golan as of the closing date less its financial debts, which were paid in full by Cellcom to the Golan shareholders in cash. See information on the agreement in note 4 to these financial statements.

F-111

Sale of a subsidiary owned by Elron

On July 16, 2020, Elron, through the investment held by it in CartiHeal (2009) Ltd. (a company in which Elron holds a 27% interest approx.) ("CartiHeal"), entered into an agreement with Bioventus LLC (an international company engaged in the manufacture of medical devices, "Bioventus"), which is a current shareholder of CartiHeal, providing as follows:

● Bioventus will make an additional US$ 15 – US$ 20 investment in CartiHeal, at a company value of USD 180.

● Bioventus will be granted a call option to buy 100% of the shares in CartiHeal.

● CartiHeal will have a put option to sell 100% of its capital stock to Bioventus.

The call option may be exercised at any time after the investment is made. The put option may be exercised subject to pivotal clinical trial success, which includes the successful attainment of certain goals of the secondary trial, subject to obtaining the FDA’s approval of the Agili-C device of CartiHeal, which fully coincides with the success of the trial.

Sale of Clal Shares

On June 28 and July 6, 2020, IDBD sold 4,791,618 shares in Clal held by it through swap transactions, at an average price of NIS 30/share, representing 7.1% of the capital stock.

In addition, on September 3, 2020, IDBD sold 2,376,527 shares in Clal, representing 3.5% of its capital stock, at an average price of NIS 32.475/share, amounting to NIS 77.2 in the aggregate.

As a consequence of such transactions, IDBD’s current stake in Clal represents 4.99% of its capital stock and, as a result, IDBD is no longer regarded as an interested party in Clal under the Israeli Securities Regulations.

Increase in the interest held in PBC

In July 2020, DIC acquired 1.4% of PBC capital stock in consideration for NIS 18.

DIC notes repurchase plan

On August 20, 2020, DIC’s Board of Directors approved the extension of its notes repurchase plan (Series F and J) until December 31, 2020 up to NIS 300. Repurchases shall be made on the basis of market opportunities and the scope thereof shall be determined by the management.

IDBD financing agreement

On August 30, 2019, the Company's Board of Directors approved the signing of a commitment with Dolphin, to make capital contributions for up to the amount of NIS 210, according to the schedule of commitments assumed by Dolphin between September 2019 and September 2021 with IDBD.

Dolphin undertook to make contributions to IDBD subject to the occurrence of certain events in accordance with the following scheme: (i) NIS 70 to be contributed immediately; (ii) NIS 70 to be contributed until September 2, 2020 and (iii) NIS 70 to be contributed until September 2, 2021. According to Dolphin's agreement with IDBD, said contributions will have the character of capital contributions resulting in the issuance of new IDBD shares in favor of the parent company or may be granted in the form of a subordinated loan.

According to Dolphin's agreement with IDBD, said contributions will have the character of capital contributions resulting in the issuance of new IDBD shares in favor of the parent company or may be granted in the form of a subordinated loan.

FyO - Dividend Distribution

On October 9, 2020, the shareholders' meeting was held in which the financial statements for the year-end were approved and the distribution of a cash dividend of US$ 3 was approved, of which US$ 1.5 (equivalent to Ps. 116) correspond to Cresud.

FyO Acopio - Distribution of dividends

On October 9, 2020, the shareholders' meeting was held in which the financial statements for the year-end were approved and the distribution of a cash dividend for $ 154 was approved, of which Ps. 3.4 correspond to Cresud.

F-112

Notes Issuance – Exchange Offer Series XXIV Notes - BCRA “A” 7106 Communication

On November 12, 2020, the company carried out an exchange operation of its Series XXIV Notes, for a nominal value of USD 73.6 million.

Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series): approximately USD 65.1 million which represents 88.41% acceptance, through the participation of 1,098 orders.

●

Series XXXI: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 30.8 million.



Nominal Value to be Issued: approximately USD 1.3 million.



Issuance Price: 100% nominal value.



Maturity Date: It will be November 12, 2023.



Consideration of the Exchange Offer: eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive for every USD 1 submitted to the Exchange, the accrued interest of the existing notes until the settlement and issue date and the following:

■

A sum of money of approximately USD 29.4 million for repayment of capital of such existing notes presented to the Exchange, in cash, in United States Dollars, which will be equivalent to USD 0.95741755 for each USD 1 of existing notes presented to the Exchange; and

■

The remaining amount until completing 1 USD for each 1 USD of existing notes presented to the Exchange, in notes Series XXXI.



Annual Nominal Fixed Interest Rate: 9.00%.



Amortization: The capital of the Series XXXI Notes will be amortized in 3 annual installments (33% of the capital on November 12, 2021, 33% of the capital on November 12, 2022, 34% of the capital on the maturity date of Series XXXI).



Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.



Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires

●

Series XXXII: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 34.3 million.



Nominal Value to be Issued: approximately USD 34.3 million.



Issuance Price: 100% nominal value.



Maturity Date: It will be November 12, 2022.



Consideration of the Exchange Offer: the eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive Series XXXII Notes for 100% of the capital amount presented for exchange and accepted by the Company and the accrued interest of the existing notes until the settlement and issue date.



Early Bird: will consist of the payment of USD 0.02 for each USD 1 of existing notes delivered and accepted in the Exchange on or before the deadline date to Access the Early Bird. Said consideration will be paid in Pesos on the issue and settlement date according to the exchange rate published by Communication “A” 3500 of the Central Bank of Argentina on the business day prior to the expiration date of the Exchange, which is ARS 79.3433 for each USD 1 of Existing Notes delivered and accepted in the Exchange.



Annual Nominal Fixed Interest Rate: 9.00%.



Amortization: The capital of the Series XXXII Notes will be amortized in one installment on the maturity date.



Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.

Payment Address: Payment will be made to an account at Argentine Securities Commission in New York, United States, for which purpose the Company will make US dollars available to an account reported by the Argentine Securities Commission in said jurisdiction.

Cancellation Cresud’s Series XXIV Notes

In relation to the Exchange Offer ended on November 10, 2020, and as a result of the settlement of said Exchange, on November 16, 2020, the Company made a partial cancellation for a V.N. of US$ 65 of Negotiable Obligations Class XXIV. After the cancellation the V.N. in circulation was US$ 8, which was paid in full on November 16, 2020.

Exchange of IRSA’s debentures

On November 12, 2020, IRSA carried out an exchange operation of its Series I Notes, for a nominal value of USD 181.5 millio

Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series): approximately USD 178.5 which represents 98.31% acceptance, through the participation of 6,571 orders.

F-113

● Series VIII: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 104.3 million.

- Nominal Value to be Issued: approximately USD 31.7 million.

- Issuance Price: 100% nominal value.

- Maturity Date: It will be November 12, 2023.

- Consideration of the Exchange Offer: eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive for every USD 1 submitted to the Exchange, the accrued interest of the existing notes until the settlement and issue date and the following:

 A sum of money of approximately USD 72,6 million for repayment of capital of such existing notes presented to the Exchange, in cash, in United States Dollars, which will be equivalent to USD 0.69622593 for each USD 1 of existing notes presented to the Exchange; and

 The remaining amount until completing 1 USD for each 1 USD of existing notes presented to the Exchange, in notes Series VIII.

- Annual Nominal Fixed Interest Rate: 10.00%.

- Amortization: The capital of the Series VIII Notes will be amortized in 3 annual installments (33% of the capital on November 12, 2021, 33% of the capital on November 12, 2022, 34% of the capital on the maturity date of Series VIII).

- Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.

- Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires

F-114

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

● Series IX: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 74.2 million.

- Nominal Value to be Issued (together with the Face Value to be issued as a result of the cash subscription): approximately USD 80.7 million.

- Issuance Price: 100% nominal value.

- Maturity Date: It will be March 1, 2023.

- Consideration of the Exchange Offer: the eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive Series IX Notes for 100% of the capital amount presented for exchange and accepted by the Company and the accrued interest of the existing notes until the settlement and issue date.

- Early Bird: will consist of the payment of USD 0.02 for each USD 1 of existing notes delivered and accepted in the Exchange on or before the deadline date to Access the Early Bird. Said consideration will be paid in Pesos on the issue and settlement date according to the exchange rate published by Communication “A” 3500 of the Central Bank of Argentina on the business day prior to the expiration date of the Exchange, which is ARS 79.3433 for each USD 1 of Existing Notes delivered and accepted in the Exchange.

- Annual Nominal Fixed Interest Rate: 10.00%.

- Amortization: The capital of the Series IX Notes will be amortized in one installment on the maturity date.

- Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.

- Payment Address: Payment will be made to an account at Argentine Securities Commission in New York, United States, for which purpose the Company will make US dollars available to an account reported by the Argentine Securities Commission in said jurisdiction.

● Modifications to the Terms of the Existing Notes: Considering that consent has been obtained for an amount greater than 90% of the existing notes capital, the Company has modified and replaced the following essential and non-essential terms and conditions of the existing notes.

- By virtue of the implementation of the Proposed Non-Essential Modifications, the entire section of "Certain Commitments" and "Events of Default" is eliminated from the terms and conditions set forth in the prospectus supplements dated May 2, 2019 and dated July 25, 2019 corresponding to the existing notes.

- Additionally, pursuant to the implementation of the Proposed Essential Modifications, the following terms and conditions of the Existing Notes are modified and replaced:

 Expiration Date: It will be March 1, 2023.

 Interest Payment Dates: will be the same dates reported for Class IX in the Notice of Results.

- It is clarified that the terms and conditions of the Series I Notes not modified by the Proposed Essential Modifications and the Proposed Non-Essential Modifications will maintain their full validity.

Boston Tower Office Floors Sale

On November 5, 2020, IRSA Commercial Properties sold and transferred 4 additional floors for a gross rental area of approximately 3,892 sqm and 15 garage units located in the building. The transaction price was approximately Ps. 1,812 (USD 22.9 million).

Finally, on November 12, 2020, the Company sold and transferred the last 3 floors with a rental area of 3,266 m2, a retail store of 228 m2 and 15 parking spaces for a total price of approximately Ps. 1,521 (USD 19.1 million)

Loan to related party

On October 23, 2020, Dolphin Netherlands has granted a loan to Yad Leviim Ltd. for a term of 60 days, in a principal amount of USD 16,250,000 at a rate interest of 5% per year. Yad Leviim Ltd. is a company controlling by Eduardo Elsztain.

Sale of Manibil S.A. Shares

On December 22, 2020, the IRSA sold and transferred 217,332,873 (two hundred and seventeen million three hundred thirty-two thousand eight hundred and seventy-three) ordinary Class B shares, nominative not endorsable, with a nominal value of ARS 1 and entitled to one vote per share owned by the Company, representing 49% of the stock capital of MANIBIL SA, a company dedicated to real estate developments. The price for the sale of the shares amounts to Ps. 576,974,387.50 (five hundred seventy-six million nine hundred seventy-four thousand three hundred eighty-seven and fifty cents argentine pesos). After this transaction, IRSA is no longer a shareholder of Manibil S.A. As a repayment of the sale price of the shares, IRSA received rights to acquire future real estate assets from Manibil.

Sale agreement Brasilagro

With this sale, the Company continues to promote its regional expansion and consolidation strategy through BrasilAgro, keeping the ownership of its farmlands in Argentina.

F-115

cresudsep

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2020 and for the three-month period ended as of that date, presented comparatively.

Legal information

Denomination: Cresud Sociedad<br>Anónima, Comercial, Inmobiliaria, Financiera y<br>Agropecuaria
Fiscal year N°: 88,<br>beginning on July 1, 2020
Legal address: Moreno 877, 23rd<br>floor – Autonomous City of Buenos Aires,<br>Argentina
Company activity: Real estate,<br>agricultural, commercial and financial<br>activities
Date of registration of the by-laws in the Public Registry of<br>Commerce: February 19,<br>1937
Date of registration of last amendment of the by-laws in the Public<br>Registry of Commerce: October<br>31, 2014 and its reinstatement on November 14,<br>2014
Expiration of Company charter: June 6, 2082
Registration number with the Supervisory Board of Companies:<br>26, folio 2, book 45, Stock<br>Companies
Stock: 501,642,804 common<br>shares
Common stock subscribed, issued and paid up nominal value (millions<br>of Ps.): 502
Parent Companies: Inversiones<br>Financieras del Sur S.A. and Agroinvestment<br>S.A.
Legal addresses: Road 8, km<br>17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay<br>(IFISA) - Cambara 1620, 2nd floor, office 202, Carrasco, 11000<br>Montevideo, Uruguay (Agroinvesment S.A.)
Parent companies' activity:<br>Investment
Direct ownership interest:<br>177,145,564 shares
Voting stock (direct and indirect equity interest):<br>35.47% (*)
	CAPITAL STATUS
---	---	---
Type of stock	Authorized to be offered publicly (Shares)	Subscribed, Issued and Paid-in (millions of Ps.)
Ordinary<br>certified shares of Ps. 1 face value and 1 vote each	501,642,804(**)	502
(*) For computation purposes, treasury shares have been<br>subtracted.
---
(**) Company not included in the Optional Statutory System of<br>Public Offer of Compulsory Acquisition.

Index

Glossary of terms	1
Unaudited Condensed Interim Consolidated Statements of Financial<br>Position	2
Unaudited Condensed Interim Consolidated Statements of Income and<br>Other Comprehensive Income	3
Unaudited Condensed Interim Consolidated Statements of Changes in<br>Shareholders' Equity	4
Unaudited Condensed Interim Consolidated Statements of Cash<br>Flows	6
Notes to the Unaudited Condensed Interim Consolidated Financial<br>Statements:
Note<br>1 - The Group's business and general information	7
Note<br>2 - Summary of significant accounting policies	8
Note<br>3 - Seasonal effects on operations	9
Note<br>4 - Acquisitions and disposals	9
Note<br>5 - Financial risk management and fair value estimates	11
Note<br>6 - Segment information	11
Note<br>7 - Investments in associates and joint ventures	16
Note<br>8 - Investment properties	17
Note<br>9 - Property, plant and equipment	17
Note<br>10 - Trading properties	18
Note<br>11 - Intangible assets	18
Note<br>12 - Right-of-use assets	18
Note<br>13 - Biological assets	19
Note<br>14 - Inventories	19
Note<br>15 - Financial instruments by category	20
Note<br>16 - Trade and other receivables	22
Note<br>17 - Cash flow information	23
Note<br>18 - Trade and other payables	24
Note<br>19 - Provisions	24
Note<br>20 - Borrowings	24
Note<br>21 - Taxation	25
Note<br>22 - Revenues	26
Note<br>23 - Costs	27
Note<br>24 - Expenses by nature	27
Note<br>25 - Other operating results, net	27
Note<br>26 - Financial results, net	27
Note<br>27 - Related parties transactions	28
Note<br>28 - CNV General Resolution N° 622	29
Note<br>29 - Cost of sales and services provided	29
Note<br>30 - Foreign currency assets and liabilities	30
Note<br>31 - Groups of assets and liabilities held for sale	30
Note<br>32 - Result from discontinued operations	31
Note<br>33 - Other subsequent events of the period	31
Note<br>34 - Subsequent Events	34

Glossary of terms

The following are not technical definitions but help the reader to understand certain terms used in the wording of the notes to the Group’s Financial Statements.

Terms	Definitions
BACS	Banco de Crédito y Securitización S.A.
BCRA	Central Bank of the Argentine Republic
BHSA	Banco Hipotecario S.A.
Brasilagro	Brasilagro-Companhia Brasileira de Propriedades<br>Agrícolas
CAMSA	Consultores Assets Management S.A.
Clal	Clal Holdings Insurance Enterprises Ltd.
CNV	National Securities Commission
Condor	Condor Hospitality Trust Inc.
Cresud, “the Company”, “us”	Cresud S.A.C.I.F. y A.
DFL	Dolphin Fund Ltd.
DIC	Discount Investment Corporation Ltd.
Dolphin	Dolphin Fund Ltd. and Dolphin Netherlands B.V.
Financial Statements	Unaudited Condensed Interim Consolidated Financial<br>Statements
Annual Financial Statements	Consolidated Financial Statements as of June 30, 2019
CPF	Collective Promotion Funds
Gav-Yam	Gav-Yam, Bayside Land Corporation Ltd
IBC	Israel Broadband Company
IDBD	IDB Development Corporation Ltd.
IFISA	Inversiones Financieras del Sur S.A.
IASB	International Accounting Standards Board
IRSA	IRSA Inversiones y Representaciones S.A.
IRSA CP	IRSA Propiedades Comerciales S.A.
ISPRO	ISPRO the Israel properties rental Corp. Ltd.
Israir	Israir Airlines & Tourism Ltd.
LRSA	La Rural S.A.
Metropolitan	Metropolitan 885 Third Avenue Leasehold LLC
MPIT	Minimum Presummed Income Tax
New Lipstick	New Lipstick LLC
IAS	International Accounting Standards
IFRS	International Financial Reporting Standards
NIS	New Israeli Shekel
PBC	Property & Building Corporation Ltd.
PBEL	PBEL Real Estate Ltd.
Quality	Quality Invest S.A.
Shufersal	Shufersal Ltd.
Tarshop	Tarshop S.A.
TASE	Bolsa de Comercio de Tel Aviv

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Financial Position

as of September 30, 2020 and June 30, 2020

(All amounts in millions, except otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.20	06.30.20
ASSETS
Non-current assets
Investment<br>properties	8	169,290	247,786
Property,<br>plant and equipment	9	26,331	64,546
Trading<br>properties	10	1,329	5,228
Intangible<br>assets	11	1,622	30,350
Right-of-use<br>assets	12	3,379	23,607
Biological<br>assets	13	1,981	1,894
Other<br>assets		-	-
Investment<br>in associates and joint ventures	7	13,449	80,879
Deferred<br>income tax assets	21	949	998
Income<br>tax and MPIT credits		64	66
Restricted<br>assets	15	69	2,084
Trade<br>and other receivables	16	7,323	29,418
Investment<br>in financial assets	15	508	3,784
Financial<br>assets held for sale	15	-	-
Derivative<br>financial instruments	15	10	177
Total non-current assets		226,304	490,817
Current assets
Trading<br>properties	10	218	2,493
Biological<br>assets	13	2,434	2,985
Inventories	14	4,514	9,764
Restricted<br>assets	15	8	6,684
Income<br>tax and MPIT credits		104	329
Group<br>of assets held for sale	31	1,984	47,170
Trade<br>and other receivables	16	15,091	47,064
Investment<br>in financial assets	15	2,947	19,585
Financial<br>assets held for sale	15	-	3,636
Derivative<br>financial instruments	15	67	346
Cash<br>and cash equivalents	15	13,223	108,652
Total current assets		40,590	248,708
TOTAL ASSETS		266,894	739,525
SHAREHOLDERS’ EQUITY
Shareholders'<br>equity (according to corresponding statement)		31,475	27,086
Non-controlling<br>interest		61,207	104,419
TOTAL SHAREHOLDERS' EQUITY		92,682	131,505
LIABILITIES
Non-current liabilities
Borrowings	20	52,255	344,946
Deferred<br>income tax liabilities	21	48,510	53,256
Trade<br>and other payables	18	2,759	3,215
Provisions	20	175	3,328
Employee<br>benefits		-	480
Income<br>tax and MPIT liabilities		3	-
Derivative<br>financial instruments	15	156	80
Lease<br>liabilities		2,908	16,357
Payroll<br>and social security liabilities		84	266
Total non-current liabilities		106,850	421,928
Current liabilities
Trade<br>and other payables	18	13,720	38,565
Borrowings	21	47,535	105,921
Provisions	20	111	2,630
Group<br>of liabilities held for sale	32	1,584	25,459
Payroll<br>and social security liabilities		763	5,043
Income<br>tax and MPIT liabilities		248	887
Lease<br>liabilities		1,324	6,094
Derivative<br>financial instruments	15	2,077	1,493
Total Current liabilities		67,362	186,092
TOTAL LIABILITIES		174,212	608,020
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		266,894	739,525

The accompanying notes are an integral part of these Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Income and Other Comprehensive Income

for the nine and three-month periods ended September 30, 2020 and 2019

(All amounts in millions, except otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.20	09.30.19
Revenues	22	9,676	13,082
Costs	23	(7,984)	(9,090)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest		679	511
Changes<br>in the net realizable value of agricultural products after<br>harvest		528	531
Gross profit		2,899	5,034
Net<br>gain from fair value adjustment of investment<br>properties		23,676	12,121
Gain<br>from disposal of farmlands		81	290
General<br>and administrative expenses	24	(979)	(1,032)
Selling expenses	24	(1,213)	(1,091)
Other<br>operating results, net	25	275	383
Management<br>fees		(470)	-
Profit from operations		24,269	15,705
Share<br>of profit of associates and joint ventures	7	134	870
Profit before financial results and income tax		24,403	16,575
Finance<br>income	26	216	99
Finance<br>cost	26	(2,887)	(2,908)
Other<br>financial results	26	(10)	(15,027)
Inflation<br>adjustment	26	177	(415)
Financial<br>results, net	26	(2,504)	(18,251)
Profit / (loss) before income tax		21,899	(1,676)
Income<br>tax	21	(7,977)	(2,719)
Profit / (loss) for the period from continuing<br>operations		13,922	(4,395)
(Loss)<br>/ Profit for the period from discontinued operations	32	(6,396)	13,887
Profit for the period		7,526	9,492
Other<br>comprehensive income / (loss):
Items that may be reclassified subsequently to profit or<br>loss:
Currency translation adjustment<br><br>and other comprehensive income from<br>subsidiaries		(3,932)	4,487
Items that may not be reclassified subsequently to profit or loss:
Revaluation<br>of fixed assets transferred to investment properties		353	-
Actuarial<br>loss from defined benefit plans		-	(11)
Other comprehensive (loss) / income for the period from continuing<br>operations		(3,579)	4,476
Other comprehensive income for the period<br>from discontinued<br>operations		(4,794)	14,057
Total other comprehensive<br>(loss) / income for the<br>period		(8,373)	18,533
Total comprehensive (loss) / income for the period		(847)	28,025
Total<br>comprehensive income from continuing operations		10,343	156
Total comprehensive (loss) / income from discontinued operations		(11,190)	27,869
Total comprehensive (loss) / income from<br>the period		(847)	28,025
Profit for the period attributable to:
Equity<br>holders of the parent		2,893	(3,193)
Non-controlling<br>interest		4,633	12,685
Loss from continuing operations attributable to:
Equity<br>holders of the parent		6,047	(5,856)
Non-controlling<br>interest		7,875	1,461
Total comprehensive income attributable to:
Equity<br>holders of the parent		692	(2,363)
Non-controlling interest		(1,539)	30,388
Loss for the period per share attributable to equity holders of the<br>parent:
Basic		5.79	(6.57)
Diluted		5.62	(6.57)
Loss per share<br>from continuing operations attributable to equity holders of the<br>parent:
Basic		12.11	(12.04)
Diluted		11.75	(12.04)

The accompanying notes are an integral part of these Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the three-month period ended September 30, 2020

(All amounts in millions, except otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share<br>capital	Treasury<br>shares	Inflation<br>adjustment of share capital and treasury shares (i)	Share<br>premium	Additional<br>paid-in capital from treasury shares	Legal<br>reserve	Special<br>reserve (ii)	Other<br>reserves (iii)	Retained<br>earnings	Subtotal	Non-controlling<br>interest	Total<br>Shareholders' equity
Adjusted balance as of June 30, 2019	499	3	10,572	11,403	97	402	829	1,084	2,197	27,086	104,419	131,505
Profit<br>for the period	-	-	-	-	-	-	-	-	2,893	2,893	4,633	7,526
Other<br>comprehensive loss for the period	-	-	-	-	-	-	-	(2,201)	-	(2,201)	(6,172)	(8,373)
Total comprehensive profit / (loss) for the period	-	-	-	-	-	-	-	(2,201)	2,893	692	(1,539)	(847)
Changes<br>in non-controlling interest	-	-	-	-	-	-	-	11	-	11	(46)	(35)
Other<br>changes in equity	-	-	-	-	-	-	-	3,686	-	3,686	3,199	6,885
Capitalisation<br>of irrevocable contributions	-	-	-	-	-	-	-	-	-	-	4	4
Dividend<br>distribution	-	-	-	-	-	-	-	-	-	-	(20)	(20)
Decrease<br>due to loss of control	-	-	-	-	-	-	-	-	-	-	(44,810)	(44,810)
Balance as of September 30, 2020	499	3	10,572	11,403	97	402	829	2,580	5,090	31,475	61,207	92,682

(i)

Includes Ps. 1 of Inflation adjustment of treasury shares. See Note 18 to the Annual Financial Statements.

(ii)

Related to CNV General Resolution N° 609/12.

(iii)

Group’s other reserves for the period ended September 30, 2020 are comprised as follows:

	Cost of treasury shares	Changes in non-controlling interest	Revaluation surplus	Reserve for currency translation adjustment	Reserve shared-based compensation	Special reserve	Other comprehensive results from subsidiaries	Other reserves from subsidiaries	Reserve for the acquisition of securities issued by the<br>Company	Total other reserves
Balance as of June 30, 2019	(161)	(3,546)	1,387	3,212	532	-	(506)	72	94	1,084
Other<br>comprehensive loss for the period	-	-	-	(2,183)	-	-	(18)	-	-	(2,201)
Total comprehensive loss for the period	-	-	-	(2,183)	-	-	(18)	-	-	(2,201)
Changes<br>in non-controlling interest	-	11	-	-	-	-	-	-	-	11
Other<br>changes in equity	-	(32)	-	3,135	-	-	655	(72)	-	3,686
Balance as of September 30, 2020	(161)	(3,567)	1,387	4,164	532	-	131	-	94	2,580

The accompanying notes are an integral part of these Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the three-month period ended September 30, 2019

(All amounts in millions, except otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share<br>capital	Treasury<br>shares	Inflation<br>adjustment of share capital and treasury shares (i)	Share<br>premium	Additional<br>paid-in capital from treasury shares	Legal<br>reserve	Special<br>reserve (ii)	Other<br>reserves (iii)	Retained<br>earnings	Subtotal	Non-controlling<br>interest	Total<br>Shareholders' equity
Balance as of June 30, 2019	486	16	10,573	11,403	98	402	5,576	39,224	(41,897)	25,881	111,058	136,939
Adjustments<br>previous periods (IFRS 9 and 15) (Note 2.2)	-	-	-	-	-	-	-	-	(778)	(778)	(1,396)	(2,174)
Adjusted balance as of June 30, 2019	486	16	10,573	11,403	98	402	5,576	39,224	(42,675)	25,103	109,662	134,765
(Loss)<br>/ profit for the period	-	-	-	-	-	-	-	-	(3,193)	(3,193)	12,685	9,492
Other<br>comprehensive income for the period	-	-	-	-	-	-	-	830	-	830	17,703	18,533
Total comprehensive (loss) / profit for the period	-	-	-	-	-	-	-	830	(3,193)	(2,363)	30,388	28,025
Reserve<br>for share-based payments	-	-	-	-	-	-	-	12	-	12	-	12
Changes<br>in non-controlling interest	-	-	-	-	-	-	-	(119)	-	(119)	(141)	(260)
Dividend<br>distribution	-	-	-	-	-	-	-	-	-	-	(18)	(18)
Decrease<br>due to loss of control	-	-	-	-	-	-	-	15	-	15	(46,419)	(46,404)
Other<br>changes in equity	-	-	-	-	-	-	-	-	-	-	18	18
Capitalisation<br>of irrevocable contributions	-	-	-	-	-	-	-	-	-	-	11	11
Balance as of September 30, 2019	486	16	10,573	11,403	98	402	5,576	39,962	(45,868)	22,648	93,501	116,149

(i)

Includes Ps. 1 of Inflation adjustment of treasury shares. See Note 18 to the Annual Financial Statements.

(ii)

Related to CNV General Resolution N° 609/12.

(iii)

Group’s other reserves for the period ended September 30, 2019 are comprised as follows:

	Cost of treasury shares	Changes in non-controlling interest	Revaluation surplus	Reserve for currency translation adjustment	Reserve shared-based compensation	Special reserve	Other comprehensive results from subsidiaries	Other reserves from subsidiaries	Reserve for the acquisition of securities issued by the<br>Company	Total other reserves
Adjusted balance as of June 30, 2019	(1,791)	(2,988)	176	4,897	520	37,675	622	10	103	39,224
Other<br>comprehensive income for the period	-	-	-	878	-	-	(48)	-	-	830
Total comprehensive profit for the period	-	-	-	878	-	-	(48)	-	-	830
Reserve<br>for share-based payments	-	-	-	-	-	-	-	12	-	12
Other<br>changes in equity	-	-	-	-	-	-	15	-	-	15
Changes<br>in non-controlling interest	-	(119)	-	-	-	-	-	-	-	(119)
Balance as of September 30, 2019	(1,791)	(3,107)	176	5,775	520	37,675	589	22	103	39,962

The accompanying notes are an integral part of these Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Cash Flows

for the three-month periods ended September 30, 2020 and 2019

(All amounts in millions, except otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.20	09.30.19
Operating activities:
Net<br>cash generated from operating activities before income tax<br>paid	17	2,113	4,360
Income<br>tax paid		(3)	(197)
Net cash generated from continuing operating<br>activities		2,110	4,163
Net cash generated from discontinued operating<br>activities		2,227	7,738
Net cash generated from operating activities		4,337	11,901
Investing activities:
Capital<br>contributions to associates and joint ventures		(8)	(150)
Acquisition<br>and improvement of investment properties		(719)	(829)
Proceeds<br>from sales of investment properties		9,682	49
Acquisitions<br>and improvements of property, plant and equipment		(331)	(362)
Financial<br>advances		(3)	(5)
Acquisition<br>of intangible assets		(15)	(26)
Proceeds<br>from sales of property, plant and equipment		3	8
Dividends<br>collected from associates and joint ventures		15	74
Proceeds<br>from loans granted		-	45
Acquisitions<br>of investments in financial assets		(5,934)	(11,398)
Proceeds<br>from disposal of investments in financial assets		5,909	15,034
Interest<br>charged on financial assets		111	201
Dividends<br>received from financial assets		-	(14)
Loans<br>granted		-	(639)
Increase<br>in securities		-	(226)
Net cash generated from continuing investing<br>activities		8,710	1,762
Net<br>cash generated from discontinued investing activities		31,830	1,500
Net cash generated from investing activities		40,540	3,262
Financing activities:
Borrowings<br>and issuance of non-convertible notes		5,455	18,860
Payment<br>of borrowings and non-convertible notes		(21,423)	(18,702)
Obtaining<br>of short term loans, net		2,073	718
Interest<br>paid		(3,606)	(2,908)
Repurchase<br>of non-convertible notes		(66)	(2,588)
Acquisition<br>of non-controlling interest in subsidiaries		(53)	(246)
Proceeds<br>from sales of non-controlling interest in subsidiaries		525	-
Proceeds<br>from derivative financial instruments, net		(126)	231
Net cash used in continuing financing activities		(17,221)	(4,635)
Net<br>cash used in discontinued financing activities		(13,019)	(31,325)
Net cash used in financing activities		(30,240)	(35,960)
Net<br>(decrease) / increase in cash and cash equivalents from continuing<br>activities		(6,401)	1,290
Net<br>increase / (decrease) in cash and cash equivalents from<br>discontinued activities		21,038	(22,087)
Net Increase / (Decrease) in cash and cash equivalents		14,637	(20,797)
Cash<br>and cash equivalents at beginning of the period	15	108,652	96,140
Cash<br>and cash equivalents reclassified to held for sale		-	36
Foreign<br>exchange gain on cash and changes in fair value of cash<br>equivalents		(5,902)	14,304
Deconsolidation		(104,164)	-
Cash and cash equivalents at the end of the period		13,223	89,683

The accompanying notes are an integral part of these Financial Statements.

PRICE WATERHOUSE & CO. S.R.L.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Socio)	)	)
C.P.C.E.C.A.B.A. T° 1 F° 17<br><br><br>Dr. Mariano C. Tomatis<br><br><br>Contador Público (UBA)<br><br><br>C.P.C.E.C.A.B.A. T° 241 F° 118	Marcelo H. Fuxman<br><br><br>Síndico Titular<br><br><br>Por Comisión Fiscalizadora	Alejandro<br>G. Elsztain<br><br><br>Vicepresident<br>II acting<br><br><br>as<br>President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(Amounts in millions, except otherwise indicated)

The Group’s business and general information

Cresud and its subsidiaries are collectively referred to hereinafter as the Group.

The Board of Directors has approved these Financial Statements for issuance on November 19, 2020.

As of September 30, 2020, the Group operates in two major lines of business: (i) agricultural business and (ii) urban properties and investments business, which is divided into two operations centers: (a) Operations Center in Argentina and (b) Operations Center in Israel, and as explained below, the Group has lost control of the Israel Operations Center and it has been deconsolidated as of September 30, 2020. They are developed through several operating companies and the main ones are listed below:

(i)

See Note 4 to the Annual Financial Statements for more information about the Operations Center in Israel.

Operations Center in Israel

As stated in Note 1 to the consolidated financial statements as of June 30, 2020, on September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed from its functions, therefore, the Group lost control as of that date. For comparability purposes, the results of the Israel Operations Center for the three-month periods ended September 30 have been reclassified to discontinued operations.

Summary of significant accounting policies

2.1.

Basis of preparation

These financial statements have been prepared in accordance with IAS 34 “Interim financial reporting” and should therefore be read in conjunction with the Group's annual Consolidated Financial Statements as of June 30, 2020 prepared in accordance with IFRS. Also, these financial statements include additional information required by Law No. 19,550 and / or regulations of the CNV. Such information is included in the notes to these financial statements, as accepted by IFRS.

These financial statements for the interim periods of three months ended September 30, 2020 and 2019 have not been audited. Management considers that they include all the necessary adjustments to fairly present the results of each period. Intermediate period results do not necessarily reflect the proportion of the Group's results for the entire fiscal years.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated by non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude on whether an economy is categorized as highly inflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that approximates or exceed 100%. Accumulated inflation in Argentina in three years is over 100%. For that reason, in accordance with IAS 29, Argentina must be considered a country with a highly inflationary economy starting July 1, 2018.

In relation to the inflation index to be used and in accordance with FACPCE Resolution No. 539/18, it is determined based on the Wholesale Price Index (IPIM) until 2016, considering the average variation of the Consumer Price Index (CPI) of the Autonomous City of Buenos Aires for the months of November and December 2015, because during those two months there were no national IPIM measurements. Then, from January 2017, the National Consumer Price Index (National CPI) is considered. The table below presents the index for the period ended September 30, 2020, according to official statistics (INDEC) and following the guidelines described in Resolution 539/18.

	As of September 30, 2020 (accumulated nine months)
Price<br>variation	8%

As a consequence of the aforementioned, these financial statements as of September 30, 2020 were restated in accordance with IAS 29.

2.2

Accounting policies

The accounting policies applied in the presentation of these Financial Statements are consistent with those applied in the preparation of the Annual Financial Statements, as described in Note 2 to those Financial Statements.

As described in Note 2.2 to the annual financial statements, the Group has adopted IFRS 16: “Leases” and Amendment to IAS 28 “Investment in associates and joint ventures” in the current year, applying the cumulative effect approach, therefore, accumulated impact was recognized in retained earnings as of July 1, 2019. Comparative figures were not restated.

2.3

Comparability of information

Balance items as of June 30, 2019 and September 30, 2019 presented in these Financial Statements for comparative purposes arise from the financial statements as of and for such period, restated in accordance with IAS 29 (See Note 2.1).Certain items from prior periods have been reclassified for consistency purposes regarding the loss of control in IDBD. See Note 1 to these Financial Statements.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

2.4

Use of estimates

The preparation of Financial Statements at a certain date requires Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements. In the preparation of these financial statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same as the ones applied by the Group in the preparation of the Annual Financial Statements described in Note 3 to those Financial Statements, except for those mentioned in Note 34.

Seasonal effects on operations

Agricultural business

Some of the Group’s businesses are more affected by seasonal effects than others. The operations of the Group’s agricultural business are subject to seasonal effects. The harvests and sale of grains in Argentina generally take place each year since March in the case of corn and soybean, since October in the case of wheat, and since December in the case of sunflower. In Brazil, the harvest and sale of soybean take place since February, and in the case of corn weather conditions make it possible to have two seasons, therefore the harvest take place between March and July. In Bolivia, weather conditions also make it possible to have two soybean, corn and sorghum seasons and, therefore, these crops are harvested in July and May, whereas wheat is harvested in August and September, respectively. In the case of sugarcane, harvest and sale take place between April and November of each year. Other segments of the agricultural business, such as beef cattle production tend to be more stable. However, beef cattle production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results across quarters.

Urban properties and investments business

Operations Center in Argentina

The operations of the Group’s shopping malls are subject to seasonal effects, which affect the level of sales recorded by lessees. During summertime in Argentina (January and February), the lessees of shopping malls experience the lowest sales levels in comparison with the winter holidays (July) and Christmas and year-end holidays celebrated in December, when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping malls sales. Sale discounts at the end of each season also affect the business. As a consequence, for shopping mall operations, a higher level of business activity is expected in the period ranging between July and December, compared to the period between January and June.

Acquisitions and disposals

Significant acquisitions and disposals for the three-month period ended September 30, 2020 are detailed below. Significant acquisitions and disposals for the fiscal year ended June 30, 2019, are detailed in Note 4 to the Annual Financial Statements.

Agricultural business

Sale of Bananal Farm

BrasilAgro concluded the sale of 2,160 hectares (1,714 useful hectares) of Bananal Farm (Magalhães municipality - BA). The farm was included in the Group of assets held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the purchase agreement were fully met on July 31, 2020 after receipt of R$ 5.5 (equivalent to Ps. 85). The face value of the sale is R$ 28 (equivalent to Ps. 396), of which the Company has already received R$ 7.5 (equivalent to Ps. 113). For this operation, the company will not recognize results since the asset was recorded at its fair value.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Urban properties and investments business

Operations Center Argentina

Sale of floors from Boston Tower

On July 15, 2020, IRSA CP entered into a preliminary sale agreement (with delivery of possession) with respect to a medium-height floor from Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 1,063 sq. meters and 5 parking lots located in the building. The price of the transaction was Ps. 477.7 (US$ 6.7), which has been paid in full.

On August 26, 2020, IRSA CP executed a preliminary sale agreement (with delivery of possession) with respect to 5 floors from Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 6,235 sq. meters and 25 parking lots located in the building. The price of the transaction was Ps. 2,562 million (US$ 34.7 million), which has been paid in full.

Bouchard sale

On July 30, 2020, IRSA CP sold the entire “Bouchard 710” building, located in the Plaza Roma district of the City of Buenos Aires. The tower has a gross leasable area of 15,014 sq. meters divided into 12 floors for office use and 116 parking lots. The price of the transaction was approximately Ps. 6,300 million (US$ 87 million), which has been paid in full.

Lipstick Building, New York, United States

On August 7, 2020, Metropolitan signed an agreement with the owner of the Ground Lease in which it terminated the relationship, leaving the administration of the building. For this reason, Metropolitan stopped recognizing the liabilities associated with the ground lease, as well as all the assets and liabilities associated with the building and the administration of the building; and made an agreement with the owner of the Ground Lease that states that Metropolitan is completely released from responsibilities, except for (i) claims for liabilities prior to June 1, 2020 from people who have performed work or provided services in the Building or to Metropolitan and (ii) claims from people who have had an accident on the property dated after August 7, 2020. This situation had an impact on the consolidated Financial Statements as of June 30, 2020.

Condor Merger Agreement

The closing of the transaction, which had been scheduled for March 23, 2020, did not occur.

On October 14, 2020, Condor entered into an agreement with Nextponint Hospitality Trust and some of its affiliates ("NHT Parties") to resolve any and all claims between them related to the aforementioned merger agreement.

Under the agreement with NHT, the Parties will make three payments to Condor in three installments, with the last payment maturing on December 30, 2020 and for a total of USD 7.0 million.

As of the date of presentation of these financial statements, the Company has 2,245,100 ordinary shares and 325,752 Series E shares of Condor.

Operations Center Israel

Loss of control of IDBD

As described in Note 1. to these financial statements, at the end of September 2020, the Group has lost control of IDBD, deconsolidating the related assets and liabilities and reclassifying the operations from this operations center to discontinued operations.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following table details the net assets disposed:

	09.30.2020
ASSETS
Investment<br>properties	84,251
Property,<br>plant and equipment	34,396
Trading<br>properties	5,512
Intangible<br>assets	26,194
Right-of-use<br>assets	18,530
Investments<br>in associates and joint ventures	34,721
Deferred<br>income tax assets	407
Income<br>tax credit	305
Restricted<br>assets	6,021
Trade<br>and other receivables	50,669
Investments<br>in financial assets	22,680
Derivative<br>financial instruments	264
Inventories	3,377
Group<br>of assets held for sale	39,441
Cash<br>and cash equivalents	104,164
TOTAL ASSETS	430,932
Borrowings	305,434
Lease<br>liabilities	16,984
Deferred<br>income tax liabilities	11,655
Trade<br>and other payables	22,782
Income<br>tax liabilities	427
Provisions	5,085
Employee<br>benefits	447
Derivative<br>financial instruments	447
Salaries<br>and social security liabilities	3,173
Group<br>of liabilities held for sale	20,646
TOTAL LIABILITIES	387,080
TOTAL NET ASSETS	44,580
Non-controlling<br>interest	(44,810)
Result for loss of control	230
Recycling<br>of currency translation adjustment and other reserves	(2,026)
Total result for loss of control (*)	(1,795)

(*) included within discontinued operations.

Financial risk management and fair value estimates

These Financial Statements do not include all the information and disclosures on financial risk management; therefore, they should be read along with Note 5 to the Annual Financial Statements. There have been no changes in risk management or risk management policies applied by the Group since year-end.

Since June 30, 2020 and up to the date of issuance of these Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets or liabilities, (either measured at fair value or amortized cost), except as mentioned in Note 33. Furthermore, there have been no transfers between the different hierarchies used to assess the fair value of the Group’s financial instruments, except as mentioned in Note 33.

Segment information

As explained in Note 6 to the Annual Consolidated Financial Statements, segment information is reported from the perspective of products and services: (i) agricultural business and (ii) urban properties and investment business. In addition, this last segment is reported divided from the geographic point of view in two Operations Centers to manage its global interests: Argentina and Israel. As described in Note 1, the Group lost control of IDBD and has reclassified its results to discontinued operations. Segment information for the period ended September 30, 2019 has been recast for the purposes of comparability with the present period. Segment information for the period ended September 30, 2019 has been recast for the purposes of comparability with the present period

Below is a summary of the Group’s business units and a reconciliation between the operating income according to segment information and the operating income of the statement of income and other comprehensive income of the Group for the periods ended September 30, 2020 and 2019:

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of the Group for the year ended September 30, 2020:

	09.30.20
		Urban<br>Properties and Investment business (II)
	Agricultural business (I)	Operations<br>Center in Argentina	Operations<br>Center in Israel	Subtotal	Total<br>segment information	Joint<br>ventures (i)	Adjustments<br>(ii)	Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iii)	Total<br>Statement of Income / Financial Position
Revenues	8,355	1,219	-	1,219	9,574	(8)	405	(295)	9,676
Costs	(7,141)	(651)	-	(651)	(7,792)	14	(460)	254	(7,984)
Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest	662	-	-	-	662	-	-	17	679
Changes in the net<br>realizable value of agricultural products after<br>harvest	528	-	-	-	528	-	-	-	528
Gross profit	2,404	568	-	568	2,972	6	(55)	(24)	2,899
Gain from disposal<br>of farmlands	81	-	-	-	81	-	-	-	81
Net gain from fair<br>value adjustment of investment properties	46	24,467	-	24,467	24,513	(837)	-	-	23,676
General and<br>administrative expenses	(336)	(651)	(5)	(656)	(992)	1	-	12	(979)
Selling<br>expenses	(773)	(452)	-	(452)	(1,225)	2	-	10	(1,213)
Other operating results, net	288	(25)	-	(25)	263	1	9	2	275
Management<br>fees	-	-	-	-	-	-	(470)	-	(470)
Profit / (Loss) from operations	1,710	23,907	(5)	23,902	25,612	(827)	(516)	-	24,269
Share profit of<br>associates and joint ventures	(12)	(472)	-	(472)	(484)	618	-	-	134
Segment profit /<br>(loss)	1,698	23,435	(5)	23,430	25,128	(209)	(516)	-	24,403
Reportable<br>assets	39,299	185,296	1,399	186,695	225,994	(932)	-	41,832	266,894
Reportable<br>liabilities	-	-	(2,355)	(2,355)	(2,355)	-	-	(171,857)	(174,212)
Net<br>reportable assets	39,299	185,296	(956)	184,340	223,639	(932)	-	(130,025)	92,682

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Below is a summarized analysis of the lines of business of the Group for the year ended September 30, 2019:

09.30.19
	Urban Properties and Investment business (II)
	Agricultural business (I)	Operations Center in Argentina	Operations Center in Israel	Subtotal	Total segment information	Joint<br>ventures (i)	Adjustments<br>(ii)	Elimination<br>of inter-segment transactions and non-reportable assets /<br>liabilities (iii)	Total<br>Statement of Income / Financial Position
---	---	---	---	---	---	---	---	---	---
Revenues	8,777	3,613	-	3,613	12,390	(26)	909	(191)	13,082
Costs	(7,520)	(744)	-	(744)	(8,264)	11	(956)	119	(9,090)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	466	-	-	-	466	-	-	45	511
Changes<br>in the net realizable value of agricultural products after<br>harvest	531	-	-	-	531	-	-	-	531
Gross profit	2,254	2,869	-	2,869	5,123	(15)	(47)	(27)	5,034
Net gain from fair<br>value adjustment of investment properties	25	12,644	-	12,644	12,669	(548)	-	-	12,121
Gain<br>from disposal of farmlands	290	-	-	-	290	-	-	-	290
General<br>and administrative expenses	(376)	(648)	(28)	(676)	(1,052)	5	-	15	(1,032)
Selling<br>expenses	(805)	(301)	-	(301)	(1,106)	5	-	10	(1,091)
Other<br>operating results, net	436	(63)	-	(63)	373	-	12	(2)	383
Profit / (Loss) from operations	1,824	14,501	(28)	14,473	16,297	(553)	(35)	(4)	15,705
Share profit of<br>associates and joint ventures	108	346	-	346	454	416	-	-	870
Segment profit / (loss)	1,932	14,847	(28)	14,819	16,751	(137)	(35)	(4)	16,575
Reportable<br>assets	39,188	132,660	542,703	675,363	714,551	(709)	-	11,462	725,304
Reportable<br>liabilities	-	-	(480,535)	(480,535)	(480,535)	-	-	4,653	(475,882)
Net reportable assets	39,188	132,660	62,168	194,828	234,016	(709)	-	16,115	249,422

(i)

Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(ii)

Includes Ps. (55) and Ps. (43) corresponding to Expenses and FPC as of September 30, 2020 and 2019, respectively.

(iii)

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(I)

Agriculture line of business

The following tables present the reportable segments of the agriculture line of business:

	09.30.20
	Agricultural<br>production	Land<br>transformation and sales	Corporate	Others	Total<br>Agricultural business
Revenues	5,741	-	-	2,614	8,355
Costs	(4,923)	(8)	-	(2,210)	(7,141)
Initial recognition<br>and changes in the fair value of biological assets and agricultural<br>products at the point of harvest	662	-	-	-	662
Changes in the net<br>realizable value of agricultural products after<br>harvest	528	-	-	-	528
Gross<br>profit / (loss)	2,008	(8)	-	404	2,404
Gain<br>from disposal of farmlands	-	81	-	-	81
Net gain from fair<br>value adjustment of investment properties	-	46	-	-	46
General and<br>administrative expenses	(206)	(1)	(57)	(72)	(336)
Selling<br>expenses	(534)	-	-	(239)	(773)
Other operating<br>results, net	(1,097)	1,320	-	65	288
Profit<br>/ (loss) from operations	171	1,438	(57)	158	1,710
Share of loss of<br>associates and joint ventures	(7)	-	-	(5)	(12)
Segment<br>profit / (loss)	164	1,438	(57)	153	1,698
Investment<br>properties	4,895	-	-	-	4,895
Property, plant and<br>equipment	22,548	192	-	61	22,801
Investments in<br>associates	409	-	-	300	709
Other reportable<br>assets	6,432	-	-	4,462	10,894
Reportable<br>assets	34,284	192	-	4,823	39,299
	09.30.19
---	---	---	---	---	---
	Agricultural<br>production	Land<br>transformation and sales	Corporate	Others	Total<br>Agricultural business
Revenues	6,222	-	-	2,555	8,777
Costs	(5,431)	(7)	-	(2,082)	(7,520)
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	453	-	-	13	466
Changes<br>in the net realizable value of agricultural products after<br>harvest	531	-	-	-	531
Gross<br>profit / (loss)	1,775	(7)	-	486	2,254
Net gain from fair<br>value adjustment of investment properties	-	25	-	-	25
Gain<br>from disposal of farmlands	-	290	-	-	290
General<br>and administrative expenses	(249)	(1)	(51)	(75)	(376)
Selling<br>expenses	(591)	-	-	(214)	(805)
Other<br>operating results, net	172	211	-	53	436
Profit<br>/ (loss) from operations	1,107	518	(51)	250	1,824
Share of profit of<br>associates and joint ventures	17	-	-	91	108
Segment<br>profit / (loss)	1,124	518	(51)	341	1,932
Investment<br>properties	2,977	-	-	-	2,977
Property,<br>plant and equipment	23,954	185	-	799	24,938
Investments<br>in associates	412	-	-	292	704
Other<br>reportable assets	7,320	-	-	3,249	10,569
Reportable assets	34,663	185	-	4,340	39,188

(II)

Urban properties and investments line of business

Below is a summarized analysis of the lines of business of Group’s operations center in Argentina:

	09.30.20
	Shopping Malls	Offices	Sales and developments	Hotels	International	Corporate	Others	Total
Revenues	367	542	39	6	263	-	2	1,219
Costs	(134)	(46)	(97)	(128)	(221)	-	(25)	(651)
Gross profit / (loss)	233	496	(58)	(122)	42	-	(23)	568
Net (loss) / profit<br>from fair value adjustment of investment properties<br>(i)	1,178	12,653	10,096	-	2	-	538	24,467
General<br>and administrative expenses	(328)	(88)	(66)	(57)	(17)	(74)	(21)	(651)
Selling<br>expenses	(73)	(38)	(305)	(19)	(16)	-	(1)	(452)
Other<br>operating results, net	(24)	(1)	(6)	8	-	-	(2)	(25)
Profit / (Loss) from operations	986	13,022	9,661	(190)	11	(74)	491	23,907
Share of profit /<br>(loss) of associates and joint ventures	-	-	(7)	-	(387)	-	(78)	(472)
Segment profit / (loss)	986	13,022	9,654	(190)	(376)	(74)	413	23,435
Investment<br>and trading properties	54,124	72,026	43,899	-	103	-	1,986	172,138
Property,<br>plant and equipment	230	173	-	2,071	-	-	-	2,474
Investment<br>in associates and joint ventures	-	-	565	-	1,781	-	7,153	9,499
Other<br>reportable assets	117	131	809	25	-	-	103	1,185
Reportable assets	54,471	72,330	45,273	2,096	1,884	-	9,242	185,296

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

(i) For the three-month period ended September 30, 2020, the net gain from fair value adjustment of investment properties was Ps. 24,467. The net impact of the values in pesos of our properties was mainly a consequence of the change in macroeconomic conditions:

(a) gain of Ps.19,713.7 as a consequence of an increase in the projected inflation rate plus GDP, with the resulting increase in the cash flows from shopping malls revenues;

(b) loss of Ps.22,963.3 due to the conversion to dollars of the projected cash flow in pesos according to the exchange rate estimates used in the cash flow;

(c) an increase of 72 basis points in the discount rate, mainly due to an increase in the country-risk rate component of the WACC discount rate used to discount the cash flow, which led to a decrease in the value of the shopping malls of Ps.2,244.

(d) positive impact of Ps. 14,539.7 resulting from the conversion into pesos of the value of the shopping malls in dollars based on the exchange rate at the end of the period;

(e) Additionally, due to the impact of the inflation adjustment, Ps. 12,160.3 were reclassified for shopping malls from “Net gain from fair value adjustment” to “Inflation Adjustment” in the Statement of Income and Other Comprehensive Income.

	09.30.19
	Shopping Malls	Offices	Sales and developments	Hotels	International	Corporate	Others	Total
Revenues	2,086	698	84	702	3	-	40	3,613
Costs	(180)	(38)	(57)	(431)	(4)	-	(34)	(744)
Gross profit / (loss)	1,906	660	27	271	(1)	-	6	2,869
Net gain from fair value adjustment of<br>investment properties	602	6,591	5,153	-	-	-	298	12,644
General<br>and administrative expenses	(256)	(54)	(66)	(107)	(41)	(88)	(36)	(648)
Selling<br>expenses	(141)	(29)	(53)	(77)	-	-	(1)	(301)
Other<br>operating results, net	(27)	(5)	(16)	(4)	(1)	-	(10)	(63)
Profit / (Loss) from operations	2,084	7,163	5,045	83	(43)	(88)	257	14,501
Share of loss of<br>associates and joint ventures	-	-	1	-	(228)	-	573	346
Segment profit / (loss)	2,084	7,163	5,046	83	(271)	(88)	830	14,847
Investment<br>and trading properties	54,964	39,413	35,601	-	116	-	1,443	131,537
Property,<br>plant and equipment	262	1,025	-	2,256	234	-	-	3,777
Investment<br>in associates and joint ventures	-	-	574	-	(9,619)	-	5,817	(3,228)
Other<br>reportable assets	118	131	198	30	-	-	97	574
Reportable assets	55,344	40,569	36,373	2,286	(9,269)	-	7,357	132,660

Below is a summarized analysis of the lines of business of Group’s operations center in Israel:

	09.30.20
	Real<br>Estate	Supermarkets	Telecommunications	Insurance	Corporate	Others	Total
Revenues	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-
Gross profit	-	-	-	-	-	-	-
Net loss from fair<br>value adjustment of investment properties	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	(5)	-	(5)
Selling<br>expenses	-	-	-	-	-	-	-
Impairment of<br>associates	-	-	-	-	-	-	-
Other operating<br>results, net	-	-	-	-	-	-	-
Profit from operations	-	-	-	-	(5)	-	(5)
Share of loss of<br>associates and joint ventures	-	-	-	-	-	-	-
Segment profit	-	-	-	-	(5)	-	(5)
Reportable<br>assets	-	-	-	-	1,399	-	1,399
Reportable<br>liabilities	-	-	-	-	(2,355)	-	(2,355)
Net<br>reportable assets	-	-	-	-	(956)	-	(956)
	09.30.19
---	---	---	---	---	---	---	---
	Real<br>Estate	Supermarkets	Telecommunications	Insurance	Corporate	Others	Total
Revenues	-	-	-	-	-	-	-
Costs	-	-	-	-	-	-	-
Gross<br>profit	-	-	-	-	-	-	-
Net gain from fair<br>value adjustment of investment properties	-	-	-	-	-	-	-
General and<br>administrative expenses	-	-	-	-	(28)	-	(28)
Selling<br>expenses	-	-	-	-	-	-	-
Other operating<br>results, net	-	-	-	-	-	-	-
Profit<br>/ (Loss) from operations	-	-	-	-	(28)	-	(28)
Share of (loss) /<br>profit of associates and joint ventures	-	-	-	-	-	-	-
Segment<br>profit / (loss)	-	-	-	-	(28)	-	(28)
Reportable<br>assets	204,587	34,536	159,317	20,065	74,195	50,003	542,703
Reportable<br>liabilities	(165,817)	-	(127,182)	-	(27,718)	(159,818)	(480,535)
Net<br>reportable assets	38,770	34,536	32,135	20,065	46,477	(109,815)	62,168

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Investments in associates and joint ventures

Changes in the Group’s investments in associates and joint ventures for the three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	09.30.20	06.30.20
Beginning of the period / year	80,861	38,984
Adjustments<br>of previous years (IFRS 9 and IAS 28)	-	(2,130)
Issuance<br>of capital and contributions	8	3,070
Capital<br>reduction	-	(114)
(Decrease)<br>/ Increase of interest in associates and joint ventures<br>(iv)	(31,250)	2,986
Share<br>of profit / (loss)	649	9,487
Other<br>comprehensive income	326	(1,339)
Currency<br>translation adjustment	(2,426)	10
Dividends<br>(i)	(33)	(1,987)
Participation<br>in other changes in equity	28	-
Deconsolidation<br>(iii)	(34,721)	31,409
Reclassification<br>to held-for-sale	-	(2,228)
Incorporation<br>by business combination	-	2,710
Others	(8)	3
End of the period / year (ii)	13,434	80,861

(i)

See Note 28.

(ii)

As of September 30, 2020, and June 30, 2019 includes Ps. (15) and (18) reflecting interests in companies with negative equity, which were disclosed in “Provisions” (see Note 19)

(iii)

The amount as of September 30, 2021 corresponds to the effect of the deconsolidation of IDBD (See note 4.E). Regarding the amount as of June 30, 2020, it corresponds to the effect of the deconsolidation of Gav-Yam (See Note 4 to the consolidated Financial Statements as of June 30, 2020)

(iv)

Mainly corresponds to the sale of the remaining equity interest in Shufersal in July 2020

Below is additional information about the Group’s investments in associates and joint ventures:

	% ownership interest		Value of Group's interest in equity		Group's interest in comprehensive income / (loss)
Name of the entity	09.30.20	06.30.20	09.30.20	06.30.20	09.30.20	09.30.19
Associates
New<br>Lipstick	49.96%	49.96%	173	503	(330)	(2,141)
BHSA	29.91%	29.91%	4,327	4,385	(60)	477
Condor	18.89%	18.89%	1,548	1,594	(55)	(17)
PBEL	N/A	45.40%	-	-	-	-
Shufersal	N/A	26.02%	-	30,263	17	-
Mehadrin	N/A	45.41%	-	-	-	-
Gav-Yam	N/A	N/A	-	29,365	28	-
TGLT<br>S.A. (1)	30.50%	N/A	2,166	2,217	(39)	-
Quality	50.00%	50.00%	2,892	2,262	622	400
La<br>Rural S.A.	50.00%	50.00%	235	219	16	81
Cresca<br>S.A.	50.00%	50.00%	22	22	-	4
Other<br>associates and joint ventures	-	-	2,071	10,031	(1,976)	1,623
Total associates and joint ventures			13,434	80,861	(1,777)	427
				Last financial statement issued
---	---	---	---	---	---	---
Name of the entity	Location of business / Country of incorporation	Main activity	Common shares 1 vote	Share capital (nominal value)	Profit / (loss) for the period	Shareholders' equity
New<br>Lipstick	U.S.	Real<br>estate	N/A	-	(*) (9)	(*) (31)
BHSA	Argentina	Financing	448,689,072	(***) 1,500	(***) (194)	(***) 14,001
Condor	U.S.	Hotel	2,245,100	(*) 232	(*) (10)	(*) 76
PBEL	India	Real<br>estate	N/A	(**) (2)	(**) -	(**) (2)
Shufersal	Israel	Retail	N/A	(**) 1,399	(**) 80	(**) 1,930
Mehadrin	Israel	Agricultural	N/A	N/A	N/A	N/A
Gav-Yam	Israel	Real<br>estate	N/A	(**) 1,356	(**) 68	(**) 3,526
TGLT<br>S.A. (1)	Argentina	Real<br>estate	279,502,813	925	(477)	6,295
Quality	Argentina	Real<br>estate	163,039,244	406	1,243	5,717
La<br>Rural S.A.	Argentina	Organization of<br>events	714,498	1	224	327

(1)

Additionally, 21,600,000 preferred class A shares and 24,948,798 preferred class B shares were subscribed, subject to conversion. As of the date of issuance of these financial statements, these preferred shares have not yet been converted.

(*)

Amounts in millions of US Dollars under USGAAP. Condor’s year-end falls on December 31, so the Group estimates their interest with a three-monthlag, including material adjustments, if any.

(**)

Amounts in millions of NIS.

(***)

Information as of September 30, 2020 according to NIIF.

Puerto Retiro (joint venture):

There have been no changes to what was informed in Note 8 to the Annual Financial Statements.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Investment properties

Changes in the Group’s investment properties for the three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	Leased out farmland	Rental properties	Underdeveloped parcels of land	Properties under development	Others	Total as of 09.30.20	Total as of 06.30.20
Fair value at the beginning of the period / year	4,445	205,810	33,965	3,485	81	247,786	360,661
Adjustments<br>of previous years (IFRS 15)	-	-	-	-	-	-	459
Additions	-	145	-	-	-	145	5,877
Capitalized<br>finance costs	-	-	-	-	-	-	-
Capitalized<br>leasing costs	-	16	1	-	-	17	21
Amortization of capitalized leasing costs<br>(i)	-	(3)	-	-	-	(3)	(16)
Transfers	444	-	-	-	-	444	(24,400)
Incorporation by business combination	-	-	-	-	-	-	263
Deconsolidation	-	(82,115)	(855)	(1,281)	-	(84,251)	(169,600)
Disposals	-	(9,607)	-	-	-	(9,607)	(16,312)
Currency<br>translation adjustment	(42)	(8,626)	(87)	(142)	-	(8,897)	56,832
Net gain / (loss) from<br>fair value<br>adjustment	48	13,448	9,326	816	18	23,656	34,001
Fair value at the end of the period / year	4,895	119,068	42,350	2,878	99	169,290	247,786

(i)

Amortization charges of capitalized leasing costs were included in “Costs” in the Statements of Income (Note 24).

The following amounts have been recognized in the Statements of Income:

	09.30.20	09.30.19
Rental<br>and services income	1,366	3,746
Direct<br>operating expenses	(718)	1,326
Development<br>expenses	(17)	23
Net<br>realized gain from fair value adjustment of investment<br>properties	187	-
Net<br>unrealized loss from fair value adjustment of investment<br>properties	23,489	12,121

Valuation techniques are described in Note 9 to the Annual Financial Statements. There were no changes to such techniques. The Group has reassessed the assumptions September 30, 2020, considering the market conditions existing at that date due to the pandemic described in Note 33, incorporating the effect of the variation in the exchange rate in other assets denominated in US Dollars.

Property, plant and equipment

Changes in the Group’s property, plant and equipment for the three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	Owner<br>occupied farmland	Bearer<br>plant	Buildings<br>and facilities	Machinery<br>and equipment	Communication<br>networks	Others	Total as of 09.30.20	Total as of 06.30.20
Costs	28,063	2,208	15,306	2,793	102,770	16,888	168,028	153,445
Accumulated<br>depreciation	(2,515)	(993)	(8,373)	(1,944)	(80,040)	(9,617)	(103,482)	(95,197)
Net<br>book amount at the beginning of the period / year	25,548	1,215	6,933	849	22,730	7,271	64,546	58,248
Additions	198	11	81	7	417	628	1,342	7,379
Disposals	(13)	-	(24)	(1)	(40)	(42)	(120)	(3,766)
Deconsolidation	(4,373)	-	(3,071)	(570)	(20,300)	(6,082)	(34,396)	(1,142)
Assets incorporated<br>by business combinations	-	-	-	-	-	-	-	10,199
Currency<br>translation adjustment	(294)	(2)	(248)	(44)	(1,637)	(489)	(2,714)	4,619
Transfers	90	-	(11)	-	-	-	79	(2,706)
Depreciation<br>charges (i)	(87)	(161)	(195)	(22)	(1,170)	(771)	(2,406)	(8,285)
Balances<br>at the end of the period / year	21,069	1,063	3,465	219	-	515	26,331	64,546
Costs	22,784	1,872	6,491	2,093	-	1,129	34,369	177,957
Accumulated<br>depreciation	(1,715)	(809)	(3,026)	(1,874)	-	(614)	(8,038)	(113,411)
Net<br>book amount at the end of the period / year	21,069	1,063	3,465	219	-	515	26,331	64,546

(i)

Amortization charge was recognized in the amount of Ps. 584 under "Costs" as of September 30, 2020, in the Statements of Income (Note 25), Ps. 274 were capitalized as part of the cost of the biological assets and Ps. 2,042 corresponds to discontinued operations.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

10.

Trading properties

Changes in the Group’s trading properties for the three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	Completed<br>properties	Properties<br>under development	Undeveloped<br>sites	Total<br>as of 09.30.20	Total<br>as of 06.30.20
Beginning<br>of the period / year	2,179	891	4,651	7,721	9,019
Additions	-	19	278	297	2,397
Capitalized finance<br>costs	-	93	-	93	100
Currency<br>translation adjustment	(139)	(13)	(269)	(421)	947
Transfers	139	(139)	-	-	231
Impairment	-	-	-	-	(167)
Deconsolidation	(1,526)	(101)	(3,885)	(5,512)	-
Disposals	(557)	(74)	-	(631)	(4,806)
End<br>of the period / year	96	676	775	1,547	7,721
Non-current				1,329	5,228
Current				218	2,493
Total				1,547	7,721

11.

Intangible assets

Changes in the Group’s intangible assets for the three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	Goodwill	Trademarks	Licenses	Customer relations	Information systems and software	Contracts and others	Total as of 09.30.20	Total as of 06.30.20
Costs	6,267	8,932	10,785	16,745	11,323	13,549	67,601	60,205
Accumulated<br>amortization	-	(720)	(8,180)	(14,081)	(6,742)	(7,528)	(37,251)	(32,195)
Net book amount at the beginning of the period / year	6,267	8,212	2,605	2,664	4,581	6,021	30,35	28,010
Additions	-	-	-	20	293	634	947	4,884
Disposals	-	-	-	-	(79)	-	-79	(167)
Deconsolidation	(5,859)	(7,607)	(2,360)	(2,251)	(3,514)	(4,603)	-26,194	-
Transfers	-	-	-	-	(3)	-	-3	(58)
Assets<br>incorporated by business combination	-	-	-	-	-	-	-	73
Currency<br>translation adjustment	(104)	(585)	(186)	(195)	(316)	(388)	-1,774	6,196
Impairment	-	-	-	-	-	-	-	(3,532)
Amortization<br>charges (i)	-	(20)	(59)	(238)	(749)	(559)	-1,625	(5,056)
Balances at the end of the period / year	304	-	-	-	213	1,105	1,622	30,350
Costs	304	-	-	-	693	1,527	2,524	67,601
Accumulated<br>amortization	-	-	-	-	(480)	(422)	(902)	(37,251)
Net book amount at the end of the period / year	304	-	-	-	213	1,105	1,622	30,350

(i)

Amortization charge was recognized in the amount of Ps. 6 under "Costs", in the amount of Ps. 33 under "General and administrative expenses" as of September 30, 2020 in the Statements of Income (Note 24) and Ps. 1,586 corresponds to discontinued operations.

12.

Right-of-use assets

The Group’s right-of-use assets as of September 30, 2020 and June 30, 2020 are the following:

	09.30.20	06.30.20
Farmland	2,693	2,182
Offices, shopping<br>malls and other buildings	8	4,431
Communication<br>networks	-	11,846
Machinery and<br>equipment	61	37
Others	617	5,111
Right-of-use<br>assets	3,379	23,607
Non-current	3,379	23,607
Total	3,379	23,607

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The depreciation charge of the right-of use-assets is detailed below:

	09.30.20	09.30.19
Farmland	62	273
Offices, shopping<br>malls and other buildings	397	579
Communication<br>networks	2,293	3,397
Others	646	1,096
Depreciation<br>charge of right-of-use assets	3,398	5,345

13.

Biological assets

Changes in the Group’s biological assets and their allocation to the fair value hierarchy three-month period ended September 30, 2020 and for the year ended June 30, 2019 were as follows:

	Agricultural business
	Sown land-crops		Sugarcane fields	Breeding cattle and cattle for sale	Other cattle	Others	Total as of 09.30.20	Total as of 06.30.20
	Level<br>1	Level<br>3	Level<br>3	Level<br>2	Level<br>2	Level<br>1
Net book amount at the beginning of the period / year	262	1,154	1,105	2,292	31	35	4,879	6,029
Purchases	-	-	-	88	-	-	88	308
Changes<br>by transformation	(95)	95	-	-	-	-	-	-
Initial<br>recognition and changes in the fair value of biological assets<br>(i)	-	165	519	(3)	(2)	-	679	3,029
Decrease<br>due to harvest	-	(1,994)	(1,626)	-	-	-	(3,620)	(13,961)
Sales	-	-	-	(499)	-	-	(499)	(1,732)
Consumes	-	-	-	(2)	-	(2)	(4)	(398)
Costs for the period / year	735	761	1,044	358	-	-	2,898	12,306
Addition	-	-	-	-	-	-	-	67
Foreign<br>exchange gain	(10)	15	(4)	(7)	-	-	(6)	(769)
Balances at the end of the period / year	892	196	1,038	2,227	29	33	4,415	4,879
	-							-
Non-current<br>(Production)	-	-	-	1,922	26	33	1,981	1,894
Current<br>(Consumable)	892	196	1,038	305	3	-	2,434	2,985
Net book amount at the end of the period / year	892	196	1,038	2,227	29	33	4,415	4,879

(i)

Biological assets with a production cycle of more than one year (that is, cattle) generated “Initial recognition and changes in fair value of biological assets” amounting to Ps. (5) and Ps. 280 for the three-month periods ended September 30, 2020 and for the fiscal year ended June 30, 2019, respectively; amounts of Ps. 211 and Ps. 292, was attributable to price changes, and amounts of Ps. (216) and Ps. 12, was attributable to physical changes, respectively.

During the three-month period ended September 30, 2020, there were transfers between the fair value hierarchies 1 and 3 of grain seeding (due to the degree of phenological growth of the crop) for Ps. 95. There were also no reclassifications between categories thereof.

The fair value less estimated point of sale costs of agricultural produce at the point of harvest (which have been harvested during the period) amount to Ps. (3,620) and Ps. (13,974) for the three-month period ended September 30, 2020 and the year ended June 30, 2019, respectively.

See information on valuation processes used by the entity in Note 14 to the Annual Financial Statements.

As of September 30, 2020, and June 30, 2019, the better and maximum use of biological assets shall not significantly differ from the current use.

14.

Inventories

Breakdown of Group’s inventories as of September 30, 2020 and June 30, 2020 are as follows:

	09.30.20	06.30.20
Crops	1,958	2,904
Materials and<br>supplies	2,128	1,519
Seeds and<br>fodders	348	296
Sugarcane	15	4
Agricultural<br>inventories	4,449	4,723
Telephones and<br>other communication equipment	-	3,196
Others	65	1,845
Total<br>inventories	4,514	9,764

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

15.

Financial instruments by category

Determining fair values

The present note shows the financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. For further information related to fair value hierarchy refer to Note 15 to the Annual Financial Statements.

Financial assets and financial liabilities as of September 30, 2020 are as follows:

		Financial<br>assets at fair value through profit or loss
	Financial<br>assets at amortized cost	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial assets	Non-financial<br>assets	Total
September<br>30, 2020
Assets<br>as per Statement of Financial Position
Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 16)	16,672	-	-	-	16,672	6,529	23,201
Investment in<br>financial assets:
- Public<br>companies’ securities	-	335	-	177	512	-	512
-<br>Bonds	-	1,548	-	-	1,548	-	1,548
- Mutual<br>funds	-	139	-	-	139	-	139
-Others	11	288	931	26	1,256	-	1,256
Derivative<br>financial instruments:
- Crops<br>options contracts	-	-	-	-	-	-	-
- Crops<br>futures contracts	-	6	-	-	6	-	6
-<br>Foreign-currency future contracts	-	9	17	-	26	-	26
-<br>Swaps	-	-	10	-	10	-	10
-<br>Others	-	35	-	-	35	-	35
Restricted assets<br>(i)	77	-	-	-	77	-	77
Cash and cash<br>equivalents (excluding bank overdrafts):
- Cash on hand and at<br>bank	7,703	-	-	-	7,703	-	7,703
- Short-term<br>investments	421	5,099	-	-	5,520	-	5,520
Total<br>assets	24,884	7,459	958	203	33,504	6,529	40,033
		Financial<br>liabilities at fair value through profit or loss
---	---	---	---	---	---	---	---
	Financial<br>liabilities at amortized cost	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial liabilities	Non-financial<br>liabilities	Total
September<br>30, 2020
Liabilities<br>as per Statement of Financial Position
Trade and other<br>payables (Note 18)	11,465	-	-	-	11,465	5,014	16,479
Borrowings<br>(excluding finance lease liabilities) (Note 20)	99,790	-	-	-	99,790	-	99,790
Derivative<br>financial instruments:
- Crops<br>options contracts	-	416	3	-	419	-	419
- Crops<br>futures contracts	-	1,309	-	-	1,309	-	1,309
-<br>Foreign-currency contracts	-	320	96	-	416	-	416
-<br>Swaps	-	-	89	-	89	-	89
Total<br>liabilities	111,255	2,045	188	-	113,488	5,014	118,502

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Financial assets and financial liabilities as of June 30, 2019 were as follows:

		Financial<br>assets at fair value through profit or loss
	Financial<br>assets at amortized cost (i)	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial assets	Non-financial<br>assets	Total
June<br>30, 2019
Assets<br>as per Statement of Financial Position
Trade and other<br>receivables (excluding the allowance for doubtful accounts and<br>other receivables) (Note 16)	62,180	-	-	-	62,180	18,446	80,626
Investment in<br>financial assets:
- Equity securities<br>in public companies	-	618	248	-	866	-	866
- Equity securities<br>in private companies	-	-	-	3,132	3,132	-	3,132
-<br>Deposits	1,029	66	-	-	1,095	-	1,095
-<br>Bonds	-	8,422	1,554	-	9,976	-	9,976
- Mutual<br>funds	-	4,796	-	-	4,796	-	4,796
-<br>Others	-	2,382	872	250	3,504	-	3,504
Derivative<br>financial instruments:
- Crops<br>futures contracts	-	93	-	-	93	-	93
-<br>Swaps	-	16	-	-	16	-	16
-<br>Warrants	-	-	-	-	-	-	-
- Crops<br>options contracts	-	17	138	-	155	-	155
-<br>Foreign-currency options contracts	-	-	18	-	18	-	18
-<br>Foreign-currency future contracts	-	-	-	153	153	-	153
-<br>Others	66	-	22	-	88	-	88
Restricted assets<br>(ii)	8,768	-	-	-	8,768	-	8,768
Financial assets<br>held for sale
-<br>Clal	-	3,636	-	-	3,636	-	3,636
Cash and cash<br>equivalents (excluding bank overdrafts):
- Cash on<br>hand and at bank	29,100	-	-	-	29,100	-	29,100
- Short-term<br>investments	68,647	10,905	-	-	79,552	-	79,552
Total<br>assets	169,790	30,951	2,852	3,535	207,128	18,446	225,574
		Financial<br>liabilities at fair value through profit or loss
---	---	---	---	---	---	---	---
	Financial<br>liabilities at amortized cost	Level<br>1	Level<br>2	Level<br>3	Subtotal<br>financial liabilities	Non-financial<br>liabilities	Total
June<br>30, 2019
Liabilities<br>as per Statement of Financial Position
Trade and other<br>payables (Note 18)	33,296	-	-	-	33,296	8,484	41,780
Borrowings<br>(excluding finance lease liabilities) (Note 21)	450,866	-	-	-	450,866	-	450,866
Derivative<br>financial instruments:
- Crops<br>futures contracts	-	76	-	-	76	-	76
- Forward<br>contracts	-	40	-	-	40	-	40
- Crops<br>options contracts	-	184	54	-	238	-	238
-<br>Foreign-currency options contracts	-	-	102	-	102	-	102
-<br>Swaps	-	-	66	-	66	-	66
-<br>Others	-	-	1,029	22	1,051	-	1,051
Total<br>liabilities	484,162	300	1,251	22	485,735	8,484	494,219

(i)

Corresponds to deposits in guarantee and escrows

The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 20). The fair value of payables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).

The valuation models used by the Group for the measurement of Level 2 and Level 3 instruments are no different from those used as of June 30, 2020, except for what is mentioned in Note 34.

As of September 30, 2020, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the Group.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table. When no quoted prices are available in an active market, fair values (particularly with derivatives) are based on recognized valuation methods.

Description	Pricing model / method	Parameters	Fair value hierarchy	Range
Promissory<br>note	Theoretical<br>price	Acquisition<br>agreement.	Level<br>2	-
Investments<br>in financial assets - Other private companies’<br>securities	Cash<br>flow / NAV - Theoretical price	Projected revenue<br>discounted at the discount rate /<br><br><br>The value is<br>calculated in accordance with shares in the equity funds on the<br>basis of their Financial Statements, based on fair value or<br>investments assessments.	Level<br>3	1 - 3.5
Investments<br>in financial assets - Others	Discounted<br>cash flow - Theoretical price	Projected revenue<br>discounted at the discount rate /<br><br><br>The value is<br>calculated in accordance with shares in the equity funds on the<br>basis of their Financial Statements, based on fair value or<br>investment assessments.	Level<br>3	1 - 3.5
Derivative<br>financial instruments – Forwards	Theoretical<br>price	Underlying<br>asset price and volatility	Level 2 and<br>3	-

The following table presents the changes in Level 3 instruments as of September 30, 2020 and June 30, 2020:

	Derivative financial instruments –<br>Forwards	Investments in financial assets - Private<br>companies	Investments in financial assets - Others	Investments in financial assets - Public<br>companies	Derivative financial instruments	Total as of 09.30.20	Total as of 06.30.20
Balances at beginning of the period / year	(22)	3,132	250	-	153	3,513	4,460
Additions<br>and acquisitions	-	-	-	-	-	-	38
Transfer<br>to level 1	-	-	-	247	-	247	378
Currency<br>translation adjustment	-	-	-	-	-	-	883
Disposals	-	-	-	-	-	-	(1,709)
Write<br>off	22	(3,132)	(219)	-	(153)	(3,482)	-
Gain<br>/ (loss) for the period / year (i)	-	-	(5)	(70)	-	(75)	(537)
Balances at the end of the period / year	-	-	26	177	-	203	3,513

(i) Included within “Financial results, net” in the Statements of Income.

16.

Trade and other receivables

Group’s trade and other receivables as of September 30, 2020 and June 30, 2020 are as follows:

	09.30.20	06.30.20
Trade, leases and<br>services receivable	15,073	49,437
Less: allowance for<br>doubtful accounts	(787)	(4,144)
Total<br>trade receivables	14,286	45,293
Prepayments	3,625	12,745
Borrowings,<br>deposits and others	1,222	8,227
Guarantee<br>deposits	3	3
Tax<br>receivables	1,658	1,666
Others	1,620	8,548
Total<br>other receivables	8,128	31,189
Total<br>trade and other receivables	22,414	76,482
Non-current	7,323	29,418
Current	15,091	47,064
Total	22,414	76,482

The fair value of current trade and other receivables approximate their respective carrying amounts due to their short-term nature, as the impact of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Movements on the Group’s allowance for doubtful accounts were as follows:

	09.30.20	06.30.20
Beginning<br>of the period / year	4,144	2,913
Incorporation by<br>business combination	-	(194)
Additions<br>(i)	357	1,164
Recovery<br>(i)	(72)	(122)
Currency<br>translation adjustment	(235)	1,189
Receivables written<br>off during the period / year as uncollectable	(21)	(775)
Deconsolidation	(3,328)	(22)
Inflation<br>adjustment	(57)	(28)
Transfers to assets<br>held for sale	(1)	19
End<br>of the period / year	787	4,144

(i)

The creation and release of the allowance for doubtful accounts have been included in “Selling expenses” in the Statement of Income (Note 25).

17.

Cash flow information

Following is a detailed description of cash flows generated by the Group’s operations for the three-month periods ended September 30, 2020 and 2019:

	Note	09.30.20	09.30.19
Profit / (Loss) for the period		7,526	9,492
Profit from discontinued operations		6,396	(13,887)
Adjustments for:
Income<br>tax	21	7,977	2,719
Amortization<br>and depreciation	24	165	155
Net<br>(gain) / loss from fair value adjustment of investment<br>properties		(23,676)	(15,797)
Changes<br>in the fair value of investments in financial assets		361	(220)
Gain<br>from disposal of intangible assets		-	(111)
Financial<br>results, net		(2,009)	22,345
Provisions<br>and allowances		(472)	202
Share<br>of loss / (profit) of associates and joint ventures		(134)	(870)
(Gain)<br>/ Loss from repurchase of Non-convertible Notes		-	1
Changes<br>in net realizable value of agricultural products after<br>harvest		(528)	(533)
Unrealized<br>initial recognition and changes in fair value of biological assets<br>and agricultural products at the point of harvest		(823)	(775)
Unrealized<br>gain from derivative financial instruments		982	(1)
Other<br>operating results		130	(4)
Gain<br>from disposal of farmlands		(81)	(290)
Changes in operating assets and liabilities:
Decrease<br>/ (Increase) in inventories		795	72
Decrease<br>in trading properties		256	(52)
Decrease<br>/ (Increase) in biological assets		1,869	2,732
Increase<br>in restricted assets		1,157	-
Decrease<br>in trade and other receivables		(1,344)	1,507
Decrease<br>in trade and other payables		4,021	(1,511)
Increase<br>/ (Decrease) in salaries and social security<br>liabilities		(156)	(513)
Decrease<br>in provisions		(18)	(194)
Increase<br>in lease liabilities		510	(138)
Net<br>variation in derivative financial instruments		(24)	31
Decrease<br>in right of use		(767)	-
Net cash generated by continuing operating activities before income<br>tax paid		2,113	4,360
Net cash generated by discontinued operating activities before<br>income tax paid		2,405	7,897
Net cash generated by operating activities before income tax<br>paid		4,518	12,257

The following table presents a detail of significant non-cash transactions occurred in the three-month periods ended September 30, 2020 and 2019:

	09.30.20	09.30.19
Issuance<br>of Negotiable Obligations through an early cancellation of<br>Negotiable Obligations	-	5
Increase<br>in property, plant and equipment through a decrease in investment<br>properties	-	618
Increase<br>in property, plant and equipment through increased business and<br>other debt	-	36
Investment<br>property growth through increased business and other<br>debt	-	511
Increase<br>of use rights through a decrease in property, plant and<br>equipment	-	23
Distribution<br>of dividends at non-controlling interest pending<br>payment	-	18
Increased<br>investment in associates and joint ventures through increased sales<br>credits and other credits	-	26
Increase<br>in investment properties through a decrease in financial<br>assets	-	299
Disposal<br>of investments in associates and joint ventures through a<br>reclassification to assets available for sale	-	4,434
Increase<br>in participation in subsidiaries, associates and joint ventures due<br>to temporary translation differences	(2)	-
Increase<br>in properties for sale through increased loans	12	-
Increase<br>in investment properties through an increase in loans	81	-
Increase<br>in investments in financial assets through a decrease in<br>investments in associates and joint ventures	11	-
Withdrawal<br>of participation in associates and joint ventures	31,250	-
Increase<br>in rights of use through an increase in lease<br>liabilities	24	-

18.

Trade and other payables

Group’s trade and other payables as of September 30, 2020 and June 30, 2020 were as follows:

	09.30.20	06.30.20
Trade<br>payables	5,571	24,384
Advances from<br>sales, leases and services	3,043	2,123
Construction<br>obligations	-	438
Accrued<br>invoices	1,386	1,314
Deferred<br>income	-	153
Admission<br>fees	945	1,095
Deposits in<br>guarantee	159	109
Total<br>trade payables	11,104	29,616
Dividends payable<br>to non-controlling interests	141	382
Taxes<br>payable	953	802
Management<br>fees	660	205
Others	3,621	10,775
Total<br>other payables	5,375	12,164
Total<br>trade and other payables	16,479	41,780
Non-current	2,759	3,215
Current	13,720	38,565
Total	16,479	41,780

19.

Provisions

The table below shows the movements in the Group's provisions categorized by type:

	Legal<br>claims (i)	Investments<br>in associates and joint ventures (ii)	Sited<br>dismantling and remediation	Other<br>provisions	Total<br>as of 09.30.20	Total<br>as of 06.30.20
Beginning<br>of period / year	2,721	18	482	2,737	5,958	15,023
Additions	15	-	20	(79)	(44)	542
Contributions	-	-	-	-	-	61
Transfers	(2)	-	-	-	(2)	-
Inflation<br>adjustment	(19)	-	-	-	(19)	(86)
Recovery	(7)	-	-	-	(7)	(19)
Share of loss in<br>associates and joint ventures	-	(3)	-	-	(3)	(8,032)
Incorporation<br>by business<br>combination	(2,217)	-	(468)	(2,400)	(5,085)	-
Currency<br>translation adjustment	(176)	-	(34)	(238)	(448)	511
Used during the<br>period / year	(44)	-	-	(20)	(64)	(2,042)
End<br>of period / year	271	15	-	-	286	5,958
Non-current					175	3,328
Current					111	2,630
Total					286	5,958

(i)

Additions and recovery are included in "Other operating results, net". Corresponds to investments in New Lipstick and Puerto Retiro, companies that have negative equity. The increase and recovery is included in "Share of profit of associates and joint ventures "

There were no significant changes to the processes mentioned in Note 21 to the Annual Financial Statements.

20.

Borrowings

The breakdown and fair value of the Group’s borrowings as of September 30, 2020 and June 30, 2020 was as follows:

	Book<br>value		Fair<br>value
	09.30.20	06.30.20	09.30.20	06.30.20
NCN	74,826	369,287	70,449	298,047
Bank<br>loans	14,758	75,234	50,257	63,467
Bank<br>overdrafts	9,045	4,611	9,045	3,480
Other borrowings<br>(i)	1,161	1,735	1,161	7,004
Total<br>borrowings (ii)	99,790	450,867	130,912	371,998
Non-current	52,255	344,946
Current	47,535	105,921
Total	99,790	450,867

(i)

Includes finance leases in the amount of Ps. 347 as of June 30, 2019.

(ii)

Includes Ps. 269,504 and Ps. 373,564 as of September 30, 2020 and June 30, 2020, respectively, corresponding to the Operations Center in Israel.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Issuance of CRESUD Non-convertible Notes

On August 31, 2020, the seventeenth Series of Notes public tender was carried out, within the framework of the Program approved by the Shareholders Meeting, for up to USD 500 million. The main characteristics of the issuance are detailed bellow:

● Series XXX: denominated in dollars and payable in pesos at the applicable exchange rate, as defined in the issuance documents, with a nominal value of USD 25.0 million at a fixed rate of 2.0%, maturing 36 months from the date of issuance with quarterly payments and principal expiring at maturity. The issue price was 100.0% of Nominal Value. Proceeds will be mainly used for debt refinancing.

Issuance of IRSA Non-convertible Notes

On July 21, 2020, subsequently to the closing of the fiscal year, the Company issued USD 38.4 million Non-convertible Notes in the local market through the following instruments:

● Ps. 335.2 (equivalent to USD 4.7 million) Series VI NCNs denominated and payable in Argentine pesos at a variable rate (Private Badlar) + 4.0%, with interest accruing on a quarterly basis. The principal amount is repayable in two installments: the first one -equal to 30% of the par value of the notes- payable on the date that is 9 (nine) months after the Issue and Settlement Date and the second installment -equal to 70% of the par value of the notes- payable on the relevant due date, i.e. July 21, 2021. Notes were issued at 100% of their par value.

● US$ 33.7 million Series VII NCNs denominated in US$ and payable in Argentine pesos at the applicable exchange rate, at a fixed 4.0% rate, with interest accruing on a quarterly basis. Repayment of capital is due on January 21, 2021. Notes were issued at 100% of their par value. The proceeds will be used to refinance short-term indebtedness.

Payment of non-convertible notes

On July 20, 2020, the Company paid the twentieth interest installment and the principal installment of the US$ 75 Series II Non-convertible Notes issued on July 20, 2010.

On August 6, 2020, the Company paid the second interest installment and the principal installment of the US$ 47 Series II Non-convertible Notes issued on August 6, 2019.

Payment of IRSA CP’s Series IV Non-convertible Notes

On September 14, 2020, the aggregate principal amount of the Series IV Non-convertible Notes in the amount of Ps. 10,381 (US$ 140 million) and interest accrued as of such date in the amount of Ps. 134 (US$ 1.8 million) were paid.

21.

Taxation

The details of the Group’s income tax, is as follows:

	09.30.20	09.30.19
Current<br>income tax	(129)	(460)
Deferred<br>income tax	(7,848)	(2,259)
Income tax from continuing operations	(7,977)	(2,719)

Below is a reconciliation between income tax recognized and the amount which would result from applying the prevailing tax rate on profit before income tax for the three-month periods ended September 30, 2020 and 2019:

	09.30.20	09.30.19
Tax<br>calculated at the tax rates applicable to profits in the respective<br>countries	(6,728)	(57)
Permanent<br>differences:
Share<br>of (loss) / profit of joint ventures and associates	21	230
Tax<br>rate differential	2,045	596
Provision<br>for unrecoverability of tax loss carry-forwards / Unrecognized tax<br>loss carry-forwards	(3,095)	(2,669)
Non-taxable<br>profit, non-deductible expenses and others	169	1,117
Tax<br>inflation adjustment	(1,622)	(2,282)
Fiscal<br>transparency	-	149
Inflation<br>adjustment permanent difference	1,233	197
Income tax from continuing operations	(7,977)	(2,719)

The gross movement in the deferred income tax account is as follows:

	09.30.20	06.30.20
Beginning of period / year	(52,258)	(60,739)
Deconsolidation	11,248	15,370
Currency<br>translation adjustment	1,258	2,053
Revaluation<br>surplus	(182)	220
Reserve<br>for changes of non-controlling interest	1	83
Business<br>combination and other assets held for sale	-	(1,282)
Charged<br>to the Statement of Income	(7,628)	(7,963)
End of the period / year	(47,561)	(52,258)
Deferred<br>income tax assets	949	998
Deferred<br>income tax liabilities	(48,510)	(53,256)
Deferred income tax liabilities, net	(47,561)	(52,258)

22.

Revenues

	09.30.20	09.30.19
Beef	1,772	1,812
Crops	3,622	3,952
Sugarcane	1,454	1,742
Cattle	357	332
Supplies	393	296
Consignment	57	146
Advertising<br>and brokerage fees	233	208
Agricultural<br>rental and other services	64	50
Other	117	65
Income from sales and services from agricultural<br>business	8,069	8,603
Trading<br>properties and developments	299	80
Rental<br>and services	1,302	3,696
Hotel<br>operations, tourism services and others	6	703
Income from sales and services from urban properties and investment<br>business	1,607	4,479
Total revenues	9,676	13,082

23.

Costs

	09.30.20	09.30.19
Other<br>operative costs	8	7
Cost of property operations	8	7
Beef	1,341	1,491
Crops	3,055	3,295
Sugarcane	1,306	1,715
Cattle	499	390
Supplies	303	223
Consignment	201	57
Advertising<br>and brokerage fees	110	97
Agricultural<br>rental and other services	64	130
Cost of sales and services from agricultural business	6,879	7,398
Trading<br>properties and developments	315	58
Rental<br>and services	654	1,196
Hotel<br>operations, tourism services and others	128	431
Cost of sales and services from sales and<br>services from urban properties and investment<br>business	1,097	1,685
Total<br>costs	7,984	9,090

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

24.

Expenses by nature

The Group discloses expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following table provides additional disclosures regarding expenses by nature and their relationship to the function within the Group.

	Production<br>costs	Costs<br>(i)	General<br>and administrative expenses	Selling<br>expenses	Total<br>as of 09.30.20	Total<br>as of 09.30.19
Cost of sale of<br>goods and services	-	430	-	-	430	155
Supplies and<br>labors	1,708	1,414	1	63	3,186	3,069
Change in<br>agricultural products and biological assets	-	4,015	-	-	4,015	4,243
Salaries, social<br>security costs and other personnel expenses	148	644	363	57	1,212	1,636
Depreciation and<br>amortization	536	103	61	1	701	519
Fees and payments<br>for services	6	918	100	151	1,175	1,384
Maintenance,<br>security, cleaning, repairs and others	26	285	71	1	383	669
Advertising and<br>other selling expenses	-	22	-	13	35	188
Taxes, rates and<br>contributions	12	67	28	512	619	554
Interaction and<br>roaming expenses	-	39	-	-	39	31
Director's<br>fees	-	-	308	-	308	170
Leases and service charges	2	29	12	6	49	70
Allowance for doubtful accounts,<br>net	-	-	-	47	47	45
Freights	26	5	-	309	340	460
Bank expenses	-	-	24	-	24	24
Conditioning and clearance	-	-	-	41	41	84
Travel, library expenses and<br>stationery	13	6	8	2	29	60
Other<br>expenses	421	7	3	10	441	456
Total as of 09.30.20	2,898	7,984	979	1,213	13,074
Total<br>as of 09.30.19	2,604	9,090	1,032	1,091	-	13,817

(i)

Includes Ps. 8 and Ps. 7 of other agricultural operating costs as of September 30, 2020 and 2019, respectively.

25.

Other operating results, net

	09.30.20	09.30.19
Gain<br>from commodity derivative financial instruments	(1,053)	156
Gain<br>from disposal of subsidiaries and associates	-	(8)
Donations	(19)	(40)
Lawsuits<br>and other contingencies	(28)	(31)
Interest<br>earned on operating assets	1,387	278
Others	(12)	28
Total other operating results, net	275	383

26.

Financial results, net

	09.30.20	09.30.19
Financial income
Interest<br>income	177	99
Dividends<br>income	12	-
Other<br>financial income	27	-
Total financial income	216	99
Financial costs
Interest<br>expenses	(2,682)	(2,692)
Result<br>for debt swap	(5)	(3)
Other<br>financial costs	(293)	(259)
Total financial costs	(2,980)	(2,954)
Capitalized<br>finance costs	93	46
Total finance costs	(2,887)	(2,908)
Other financial results:
Foreign<br>exchange, net	(118)	(14,786)
Fair<br>value gains of financial assets and liabilities at fair value<br>through profit or loss	640	(332)
Gain<br>from repurchase of Non-convertible notes	15	7
(Loss)<br>/ Gain from derivative financial instruments (except<br>commodities)	(547)	84
Total other financial results	(10)	(15,027)
Inflation adjustment	177	(415)
Total financial results, net	(2,504)	(18,251)

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

27.

Related party transactions

The following is a summary of the balances with related parties as of September 30, 2020 and June 30, 2020:

Item	09.30.20	06.30.20
Trade<br>and other receivables	130	1.130
Investments<br>in financial assets	222	290
Trade<br>and other payables	(697)	(351)
Borrowings	(49)	(225)
Total	(394)	844
Related party	09.30.20	06.30.20	Description of transaction	Rubro
---	---	---	---	---
Agro<br>Uranga S.A.	8	-	Sale<br>of goods and / or services receivable	Trade<br>and other receivables
	(8)	-	Futures<br>and options payable	Trade<br>and other payables
Condor	222	290	Public<br>companies' securities	Investments<br>in financial assets
New<br>Lipstick LLC	18	17	Reimbursement<br>of expenses receivable	Trade<br>and other receivables
	-	(83)	Loans<br>payable	Borrowings
Other<br>associates and joint ventures	-	90	Leases<br>and/or rights of use receivable	Trade<br>and other receivables
	-	219	Dividends<br>receivables	Trade<br>and other receivables
	-	9	Management<br>fees receivable	Trade<br>and other receivables
	(29)	(29)	Loans<br>payable	Borrowings
	127	131	Reimbursement<br>of expenses receivable	Trade<br>and other receivables
	(1)	(1)	Reimbursement<br>of expenses payable	Trade<br>and other payables
Total associates and joint ventures	337	643
CAMSA<br>and its subsidiaries	1	1	Reimbursement<br>of expenses receivable	Trade<br>and other payables
	(660)	(205)	Reimbursement<br>of expenses receivable	Trade<br>and other receivables
IRSA<br>Real Estate Strategies LP	-	125	Dividends<br>receivable	Trade<br>and other receivables
BHN<br>Vida	(20)	(56)	Leases<br>and/or rights of use receivable	Trade<br>and other payables
Other<br>related parties (i)	39	-	Other<br>liabilities	Trade<br>and other payables
	(87)	-	Leases<br>and/or rights of use receivable	Trade<br>and other receivables
	-	(57)	Dividends<br>receivable	Trade<br>and other receivables
	16	528	Reimbursement<br>of expenses receivable	Trade<br>and other receivables
Total other related parties	(711)	336
IFISA	8	6	Financial<br>operations receivable	Trade<br>and other receivables
	8	6
Directors<br>and Senior Management	(28)	(145)	Fees<br>for services received	Trade<br>and other payables
	-	4
Total Directors and Senior Management	(28)	(141)
Total	(394)	844

(i)

Includes Estudio Zang, Bergel & Viñes, Museo de los Niños, Hamonet S.A., CAM Communication L.P., Gary Goldstein, Fundación IRSA, Lartiyrigoyen and SAMSA.

The following is a summary of the results with related parties for the three-month periods ended September 30, 2020 and 2019:

Related party	09.30.20	09.30.19	Description of transaction
Agrofy<br>S.A.	-	3	Management<br>fees / Directory
BACS	28	-	Leases<br>and/or rights of use
	(69)	-	Financial<br>operations
Other<br>associates and joint ventures	-	41	Leases<br>and/or rights of use
	-	(3)	Comissions
Total associates and joint ventures	(41)	41
CAMSA<br>and its subsidiaries	(470)	-	Management<br>fee
Other<br>related parties (i)	13	40	Leases<br>and/or rights of use
	(20)	-	Fees<br>and remunerations
	(9)	-	Corporate<br>services
	(1)	(12)	Legal<br>services
	(6)	-	Financial<br>operations
	-	-	Comissions
	-	(14)	Donations
Total other related parties	(493)	14
IFISA	2	-	Financial<br>operations
Total Parent Company	2	-
Directors	(515)	(155)	Compensation<br>of Directors and senior management
	(10)	-	Fees<br>and remunerations
Senior<br>Management	(7)	(8)	Compensation<br>of Directors and senior management
Total Directors and Senior Management	(532)	(163)
Total	(1,064)	(108)

(i)

Includes Estudio Zang, Bergel & Viñes, Fundación IRSA, Ramat Hanassi, Austral Gold Argentina S.A., Isaac Elsztain e Hijos, Hamonet S.A., LRSA, New Lipstick, BHN Vida S.A, TGLT S.A. and BHSA.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

The following is a summary of the transactions with related parties for the three-month periods ended September 30, 2020 and 2019:

Related party	09.30.20	09.30.19	Description of transaction
Quality	8	16	Irrevocable<br>contributions
Manibil	-	94	Irrevocable<br>contributions
Total contributions	8	110
Agro-Uranga<br>S.A.	23	27	Dividends<br>received
Uranga<br>trading	10	-	Dividends<br>received
Condor	-	36	Dividends<br>received
Total dividends received	33	63
Inversiones<br>Financieras del Sur S.A.	53	-	Buy<br>and change of shares
Total other transactions	53	-

Stock loan granted

On October 18, 2019, the Board of Directors of Cresud approved the granting of a loan of 3,235,000 American Depositary Receipts ("ADRs") from IRSA Inversiones y Representaciones Sociedad Anónima, owned by the Company to Inversiones Financieras del Sur S.A., Company controlled by the president of our Company. The loan has been guaranteed by Inversiones Financieras del Sur S.A. with stocks of equivalent value.

28.

CNV General Resolution N° 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622, below there is a detail of the notes to this Financial Statements that disclose the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 8 - Investment properties
	Note 9 - Property, plant and equipment
Exhibit B - Intangible assets	Note 11 - Intangible assets
Exhibit C - Equity investments	Note 7 - Investments in associates and joint ventures
Exhibit D - Other investments	Note 15 - Financial instruments by category
Exhibit E - Provisions	Note 19 - Provisions
Exhibit F - Cost of sales and services provided	Note 29 - Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities	Note 30 - Foreign currency assets and liabilities

29.

Cost of goods sold and services provided

Description	Cost of sales and services from agricultural business<br>(i)	Cost of sales and services from sales and services from urban<br>properties and investment business (ii)	Total as of 09.30.20	Total as of 09.30.19
Inventories at the beginning of the period / year	7,046	12,762	19,808	18,498
Initial<br>recognition and changes in the fair value of biological assets and<br>agricultural products at the point of harvest	573	-	573	509
Changes<br>in the net realizable value of agricultural products after<br>harvest	486	-	486	532
Additions	7	-	7	-
Capitalized<br>finance costs	-	-	-	45
Currency<br>translation adjustment	(354)	8,263	7,909	1,080
Transfers	5	-	5	-
Harvest	2,500	-	2,500	3,444
Acquisitions<br>and classifications	2,869	7,699	10,568	20,468
Consume	(519)	-	(519)	(538)
Disposals<br>due to sales	-	(630)	(630)	(1,615)
Deconsolidation	-	(3,377)	(3,377)	3,247
Expenses<br>incurred	971	-	971	800
Inventories at the end of the period / year	(6,705)	(1,612)	(8,317)	(19,244)
Cost as of 09.30.20	6,879	23,105	29,984	-
Cost as of 09.30.19	7,398	19,828	-	27,226

(i)

Includes biological assets (see Note 13).

(ii)

Includes trading properties (see Note 10).

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

30.

Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Item (3) / Currency	Amount of foreign currency (2)	Prevailing exchange rate (1)	Total as of 09.30.20	Total as of 06.30.20
Assets
Trade and other receivables
US<br>Dollar	42	75.98	3,195	4,970
Euros	0	88.97	10	947
Chilean<br>Pesos	3	1.79	5	-
Trade and other receivables related parties
US<br>Dollar	0	75.98	28	322
Total Trade and other receivables			3,238	6,239
Investment in financial assets
US<br>Dollar	7	75.98	547	4,166
Pounds	3	22.22	69	84
Total Investment in financial assets			616	4,250
Derivative financial instruments
US<br>Dollar	0	75.98	10	88
Total Derivative financial instruments			10	88
Cash and cash equivalents
US<br>Dollar	57	75.98	4,362	16,732
Euros	0	88.97	1	1,668
Uruguayan<br>pesos	13	1.79	23	-
Total Cash and cash equivalents			4,386	18,400
Total Assets			8,250	28,977
Liabilities
Trade and other payables
US<br>Dollar	200	76.18	15,203	15,811
Euros	-	98.49	-	328
Chilean<br>pesos	1	1.79	2	-
Uruguayan<br>pesos	1	76.18	76	-
Total Trade and other payables			15,281	16,139
Borrowings
US<br>Dollar	641	76.18	48,825	99,246
Total Borrowings			48,825	99,246
Derivative financial instruments
US<br>Dollar	9	76.18	698	310
Total Derivative financial instruments			698	310
Total Liabilities			64,804	115,695

(1)

Exchange rates as of September 30, 2020 and June 30, 2020, respectively according to Banco Nación Argentina.

(2)

Considering foreign currencies those that differ from each Group’s subsidiaries functional currency at each period/year-end.

(3)

The Company uses derivative instruments as a complement in order to reduce its exposure to exchange rate movements (Note 15).

31.

Groups of assets and liabilities held for sale

The Group has certain assets and liabilities classified as held for sale. The following table presents the main ones:

	09.30.20	06.30.20
Property,<br>plant and equipment	709	39,529
Intangible<br>assets	11	1,475
Investments<br>in associates	-	241
Deferred<br>income tax assets	-	876
Investment<br>properties	-	-
Income<br>tax credit	4	3
Inventories	377	382
Trade<br>and other receivables	878	2,822
Cash<br>and cash equivalents	5	1,842
Total group of assets held for sale	1,984	47,170
Trade<br>and other payables	564	11,186
Payroll<br>and social security liabilities	136	536
Employee<br>benefits	-	416
Deferred<br>and current income tax liabilities	31	2,133
Provisions	10	13
Borrowings	843	11,175
Total group of liabilities held for sale	1,584	25,459
Total net financial assets held for sale	400	21,711

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

32.

Results from discontinued operations

The results of the discontinued operations include the IDBD / DIC operations which were deconsolidated in the current period (see Note 4) and the results of the comparative periods have been reclassified.

	09.30.20	09.30.19
Revenues	27,124	27,100
Costs	(22,008)	(18,143)
Gross profit	5,116	8,957
Net<br>gain from fair value adjustment of investment<br>properties	(20)	-
General<br>and administrative expenses	(3,122)	(2,569)
Selling<br>expenses	(2,974)	(3,185)
Other<br>operating results, net (i)	(1,867)	19,881
Profit from operations	(2,867)	23,084
Share<br>of profit of joint ventures and associates	515	(528)
Profit from operations before financing and taxation	(2,352)	22,556
Financial<br>income	377	317
Finance<br>costs	(4,946)	(7,321)
Other<br>financial results	327	(1,624)
Financial results, net	(4,242)	(8,628)
Profit before income tax	(6,594)	13,928
Income<br>tax	198	(41)
Profit for the period from discontinued operations	(6,396)	13,887
Profit for the period from discontinued operations attributable<br>to:
Equity<br>holders of the parent	(3,154)	2,663
Non-controlling<br>interest	(3,242)	11,224
Profit per share from discontinued operations attributable to<br>equity holders of the parent:
Basic	(6.315)	5.475
Diluted	(6.315)	5.309

(i) As of September 30, 2020, corresponds mainly to the loss of control of IDBD; As of September 30, 2019, it mainly corresponds to the result from the loss of control of Gav-Yam and the fair value measurement of the remaining investment.

33.

Other relevant events of the period

Economic context in which the company operates

Its operating income may be affected by fluctuations in the inflation index and the argentine peso exchange rate against other currencies, mainly the dollar, variations in interest rates which have an impact on the cost of capital, changes in government policies, capital control and other political or economic developments both locally and internationally.

The first case of COVID-19 in Argentina was reported on March 3, 2020 and until November 8, 2020, more than 1,200,000 cases of infections had been confirmed in Argentina. As a result, the Argentine the National Government implemented a series of health measures of social, preventive and mandatory isolation at the national level that began on March 19, 2020 and extended several times, most recently until November 8, 2020 inclusive in the Metropolitan Area of Buenos Aires although it has been extended in some cities in the interior of the country. Among this measures, that affected the local economy, the following stand out: the extension of the public emergency in health matters, the total closure of borders, the suspension of international and domestic flights, the suspension of medium and long-distance land transport, the suspension of artistic and sports shows, closure of businesses not considered essential, including shopping malls and hotels.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

At the local environment, the following circumstances may be noted:

●

In August 2020, an indicador called “Monthly Estimator of Economic Activity” (“EMAE”) reported by the National Institute of Statistics and Censuses (“INDEC”), registered a variation of (11.6%) compared to the same month of 2019, and from 1,1% compared to the previous month.

●

The market expectations survey prepared by Central Bank in October 2020, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 35.8% for 2020. The analysts who confirm the REM forecast a variation in real GDP for 2020 of (11.6)%. In turn, they foresee that in 2021 economic activity will rebound in activity, reaching an economic growth of 4.5%.

●

The interannual inflation as of September 30, 2020 reached 36.6%.

●

In the period from September 2019 to September 2020, the argentine peso depreciated 32.3% compared to the US dollar at the average wholesale exchange rate quoted byBanco de la Nación Argentina. Given the exchange restrictions in force since August 2019, as of September 30, 2020 the exchange gap between the official peso/US dollar exchange rate and the peso/US dollar exchange rate offered in the black market is almost 82%. This has an impact on the level of economic activity and detrimentally affects the reserves of the of the Argentine Central Bank. In addition, the current foreign exchange restrictions or those that may be imposed in the future may impair the Company’s ability to access the Sole Free FX Market (Mercado Único Libre de Cambio or MULC) to purchase the currency required to meet its financial obligations.

On September 15, 2020, the Argentine Central Bank issued Communication “A” 7106 which establishes, among other things, that entities with principal maturities falling due between October 15, 2020 and March 31, 2021 related to the issuance of foreign-currency denominated publicly-registered debt securities in Argentina by private sector clients or by the entities themselves, must submit to the Argentine Central Bank a refinancing plan based on the following criteria: (a) the net amount for which access to the foreign exchange is granted within the original terms must not exceed 40% of the principal amount due, and (b) the remaining principal amount must have been refinanced through new foreign debt with an average life of at least 2 years. It is worth mentioning that for the maturities to be registered from the effective date of the communication (September 16, 2020) and until 12.31.2020, the refinancing plan must be submitted prior to 09.30.2020; and the submission deadline for the remaining maturities -between January 1, 2021 and March 31, 2021, must be submitted with a term of at least 30 calendar days before the maturity of the capital to be refinanced.

COVID-19 PANDEMIC

As described in the note on the economic context in which the Group operates, the COVID-19 pandemic is adversely impacting both the global economy and the Argentine economy and the Group's business.

The current estimated impacts of the COVID-19 pandemic on the Company as of the date of these financial statements are set out below:

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

●

Because of the social, preventive and obligatory lockdown, shopping malls throughout the country were closed since March 20, 2020, exclusively remaining operational those stores dedicated to activities considered essential such as pharmacies, supermarkets and banks. The reopening of shopping malls in the interior of the country began during the months of May, June, and July. In August 2020, the Arcos District, an open-air premium outlet in the city of Buenos Aires, was opened and in October 2020, the Group’s shopping malls opened in the City and Greater Buenos Aires. As of October 31, 2020, all the Group’s shopping malls were open operating under strict protocols. However, the uncertainty of the situation could cause setbacks in the openings already made, as happened in some shopping malls in the interior of the country in previous months due to the increase in cases in those regions.

●

Given the closure of the shopping malls, the Group has decided to condone the billing and collection of the Insured Monthly Value until September 30, 2020, with some exceptions and to subsidize the collective promotion fund during the same period, prioritizing the long-term relationship with its tenants. Additionally, an increase in the delinquency rates of some tenants has been detected. As a result of the above, the impact on shopping malls is a 82.4% decrease in rental and service income during the first quarter of fiscal year 2021 compared to the same period of last fiscal year, and a 12.6% increase compared to the immediately preceding quarter. Additionally, the charge for bad debts in the first quarter of fiscal year 2012 is ARS 40 million and ARS 37 million in the same period of previous fiscal year.

●

In relation to the offices business, although most of the tenants are working in the home office mode, they are operational with strict safety and hygiene protocols. To date, we have not evidenced a deterioration in collections.

●

La Rural, the Buenos Aires and Punta del Este Convention Centers and the DIRECTV Arena stadium, establishments that the Group owns directly or indirectly, have also been closed since March 20. All planned congresses were suspended, most of the fairs and conventions have been postponed, while the shows scheduled at the DIRECTV Arena stadium were mostly cancelled. The reopening date of these establishments is uncertain, as well as the future agenda of fairs, conventions and shows.

●

The Libertador hotel in the City of Buenos Aires and Llao Llao in the province of Río Negro have temporarily closed since the mandatory lockdown decreed in March 2020, while the Intercontinental Hotel in the City of Buenos Aires has worked only under a contingency and emergency plan. As a result of the above, the impact on these financial statements is a 99% decrease in revenues compared to same period of previous fiscal year After the end of first quarter of fiscal year 2021, on November 16, the Llao Llao Hotel opened its doors operating under strict protocols. It is expected that the hotels in the city of Buenos Aires will gradually begin to restart their activity in the coming months.

Regarding the Group's debt maturities during the first quarter of fiscal year 2021, IRSA, in the month of May and July 2020, has issued Notes in the local market for the approximate sum of USD 105.4 million. With those proceeds, IRSA canceled its Notes maturing in July and August 2020. Regarding IRSA CP, it has cancelled its Series IV Notes on September 14.

After the end of the quarter, in November 2020, the Group had Notes maturities within the period contemplated by provision “A” 7106 of the Central Bank of the Argentine Republic mentioned above. Namely, Cresud Series XXIV for a nominal value of USD 73.6 million with maturity on November 14, 2020 and IRSA Series I for a nominal value of USD 181.5 million with maturity on November 15, 2020, as well as other debts banking. Cresud and IRSA presented a proposal to the BCRA within the corresponding deadlines and carried out exchange operations for said Negotiable Obligations. Cresud through the cash cancellation of USD 29.2 million and the issuance of two new Notes Series XXXI and Series XXXII for a nominal value of USD 1.3 million and USD 34.3 million. For its part, IRSA did it through the cash cancellation of USD 72.6 million and the issuance of two new Notes Series VIII and Series IX for a nominal value of USD 31.7 million and USD 80.7 million (including USD 6.5 million for new money)

Regarding the financial debt of the Group in the next 12 months:

●

Cresud faces the maturity of its Series XXVI Notes in January 2021 for a nominal value of ARS 995 million (approximately USD 13.1 million), Series XXVIII in April 2021 for a nominal value of USD 27.5 million and Series XXV and XXVII in July 2021 for a nominal value of USD 59.6 million and USD 5.7 million respectively. Likewise, Cresud has bank overdrafts for USD 24.8 million and other banking debt for USD 64.4 million. As of September 30, it had a liquidity position of approximately USD 71.9 million.

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

●

Our subsidiary IRSA faces the maturity of its Series III Notes for a nominal value of ARS 354 million (equivalent to USD 4.6 million) maturing on February 21, 2021, Series IV Notes for a nominal value of USD 51.4 million maturing on May 21, 2021, Series VI Notes for a nominal value of ARS 335 million (equivalent to USD 4.4 million) maturing on July 21, 2021, bank overdrafts for an amount equivalent to USD 22.0 million and other banking debt for USD 11.8 million. For its part, IRSA CP has maturities of banking debt for the approximate sum of USD 72.7 million.

●

It is important to mention that IRSA has approved with IRSA CP a credit line for up to USD 180 million over 3 years, of which as of September 30, 2020 IRSA used approximately USD 104.5 million, leaving the balance available. Additionally, at the Annual Shareholders Meeting, held on October 26, 2020, IRSA CP approved the distribution of a cash dividend of ARS 9,700 million that will be paid on November 25. As of September 30, IRSA owned an 80.65% stake in IRSA CP.

The final extent of the Coronavirus outbreak and its impact on the country's economy is unknown and difficult to fully predict. However, although it has produced significant short-term effects, they are not expected to affect business continuity and the Company’s ability to meet financial commitments for the next twelve months.

The Company is closely monitoring the situation and taking all necessary measures to preserve human life and the Group's businesses.

34.

Subsequent events

FyO - Dividend Distribution

FyO Acopio - Distribution of dividends

Notes Issuance – Exchange Offer Series XXIV Notes - BCRA “A” 7106 Communication

On November 12, 2020, the company carried out an exchange operation of its Series XXIV Notes, for a nominal value of USD 73.6 million.

●

Series XXXI: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 30.8 million.



Nominal Value to be Issued: approximately USD 1.3 million.



Issuance Price: 100% nominal value.



Maturity Date: It will be November 12, 2023.



■

The remaining amount until completing 1 USD for each 1 USD of existing notes presented to the Exchange, in notes Series XXXI.



Annual Nominal Fixed Interest Rate: 9.00%.



Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.



Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires

●

Series XXXII: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 34.3 million.



Nominal Value to be Issued: approximately USD 34.3 million.



Issuance Price: 100% nominal value.



Maturity Date: It will be November 12, 2022.



Annual Nominal Fixed Interest Rate: 9.00%.



Amortization: The capital of the Series XXXII Notes will be amortized in one installment on the maturity date.



Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.

Cancellation Cresud’s Series XXIV Notes

Exchange of IRSA’s debentures

On November 12, 2020, IRSA carried out an exchange operation of its Series I Notes, for a nominal value of USD 181.5 million

Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series): approximately USD 178.5 which represents 98.31% acceptance, through the participation of 6,571 orders.

●

Series VIII: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 104.3 million.

Nominal Value to be Issued: approximately USD 31.7 million.

Issuance Price: 100% nominal value.

Maturity Date: It will be November 12, 2023.



A sum of money of approximately USD 72,6 million for repayment of capital of such existing notes presented to the Exchange, in cash, in United States Dollars, which will be equivalent to USD 0.69622593 for each USD 1 of existing notes presented to the Exchange; and



The remaining amount until completing 1 USD for each 1 USD of existing notes presented to the Exchange, in notes Series VIII.

Annual Nominal Fixed Interest Rate: 10.00%.

Amortization: The capital of the Series VIII Notes will be amortized in 3 annual installments (33% of the capital on November 12, 2021, 33% of the capital on November 12, 2022, 34% of the capital on the maturity date of Series VIII).

Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.

Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

●

Series IX: Face Value of Existing Notes presented and accepted for the Exchange: approximately USD 74.2 million.

Nominal Value to be Issued (together with the Face Value to be issued as a result of the cash subscription): approximately USD 80.7 million.

Issuance Price: 100% nominal value.

Maturity Date: It will be March 1, 2023.

Consideration of the Exchange Offer: the eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive Series IX Notes for 100% of the capital amount presented for exchange and accepted by the Company and the accrued interest of the existing notes until the settlement and issue date.

Annual Nominal Fixed Interest Rate: 10.00%.

Amortization: The capital of the Series IX Notes will be amortized in one installment on the maturity date.

Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.

●

Modifications to the Terms of the Existing Notes: Considering that consent has been obtained for an amount greater than 90% of the existing notes capital, the Company has modified and replaced the following essential and non-essential terms and conditions of the existing notes.

By virtue of the implementation of the Proposed Non-Essential Modifications, the entire section of "Certain Commitments" and "Events of Default" is eliminated from the terms and conditions set forth in the prospectus supplements dated May 2, 2019 and dated July 25, 2019 corresponding to the existing notes.

Additionally, pursuant to the implementation of the Proposed Essential Modifications, the following terms and conditions of the Existing Notes are modified and replaced:



Expiration Date: It will be March 1, 2023.



Interest Payment Dates: will be the same dates reported for Class IX in the Notice of Results.

It is clarified that the terms and conditions of the Series I Notes not modified by the Proposed Essential Modifications and the Proposed Non-Essential Modifications will maintain their full validity.

Boston Tower Office Floors Sale

Loan to related party

Véase nuestro informe de fecha 09/11/18

PRICE WATERHOUSE & Co. S.R.L.

C.P.C.E.C.A.B.A. T° 1 F° 17

cresud-exhibit994

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Exhibit

The following is a summary of the Group’s investment properties as of June 30, 2020 prepared in accordance with SEC Regulation S-X 12-28 (all amounts in millions, except otherwise indicated):

		Initial costs		Subsequent costs	Costs at end of the year
Name	Encumbrances	Plot of land	Buildings, facilities and improvements	Improvements / Additions / Disposals / Transfers	Plot of land	Buildings, facilities and improvements	Total	Capitalized costs, net	Fair value adjustments	Fair Value at the end of the year	Date of construction	Date of acquisition
Rental properties
Operations Center in Argentina
Abasto<br>Shopping	-	206	5,667	260	206	5,927	6,133	3	1,195	7,331	Nov-98	Jul-94
Alto<br>Palermo Shopping	-	183	8,439	551	183	8,990	9,173	5	(301)	8,877	Oct-90	Nov-97
Alto<br>Avellaneda	-	365	3,697	834	365	4,531	4,896	9	100	5,005	Oct-95	Dec-1997
Alcorta<br>Shopping	-	220	2,800	720	220	3,520	3,740	1	1,499	5,240	Jun-92	Jun-97
Alto<br>Noa	-	8	970	173	8	1,143	1,151	-	95	1,246	Sep-94	Mar-95
Buenos<br>Aires Design	-	-	137	-	-	137	137	-	(137)	-	Nov-93	Nov-97
Patio<br>Bullrich	-	177	3,055	339	177	3,394	3,571	1	(1,058)	2,514	Sep-88	Oct-98
Alto<br>Rosario	-	794	405	962	794	1,367	2,161	5	2,256	4,422	Nov-04	Nov-04
Mendoza<br>Plaza	-	222	1,593	1,029	222	2,622	2,844	12	(771)	2,085	Jun-94	Dec-1994
Dot<br>Baires Shopping	-	677	602	4,724	677	5,326	6,003	6	(369)	5,640	May-09	Nov-06
Córdoba<br>Shopping	Antichresis	81	1,326	271	81	1,597	1,678	-	(315)	1,363	Mar-90	Dec-2006
Distrito<br>Arcos	-	-	-	2,270	-	2,270	2,270	-	(234)	2,036	-	Nov-09
Alto<br>Comahue	-	55	198	2,557	55	2,755	2,810	-	(1,450)	1,360	-	May-06
Patio<br>Olmos	-	167	311	1	167	312	479	1	488	968	May-95	Sep-07
Soleil<br>Premium Outlet	-	179	601	484	179	1,085	1,264	1	732	1,997	-	Jul-10
Dot<br>building	-	153	50	2,030	153	2,080	2,233	11	2,305	4,549	Sep-10	Nov-06
Bouchard<br>710	-	1,387	1,138	88	1,387	1,226	2,613	3	4,186	6,802	-	Jun-05
Bouchard<br>551	-	80	61	64	80	125	205	-	129	334	-	Mar-07
Intercontinental<br>Plaza	-	42	603	3	42	606	648	1	266	915		Nov-97
BankBoston<br>tower	-	1,282	964	4	1,282	968	2,250	3	4,897	7,150	-	Aug-2007
República<br>building	-	1,708	1,405	8	1,708	1,413	3,121	1	6,534	9,656	-	Apr-2008
Phillips<br>building	-	-	1,453	1	-	1,454	1,454	-	1,418	2,872	-	Jun-17
Zetta<br>building	-	462	-	3,579	462	3,579	4,041	128	9,109	13,278	-	Dec<br>-14
Catalinas<br>building	-	1,453	-	4,143	1,453	4,143	5,596	255	8,730	14,581	-	May-10
Others	-	252	1,040	414	252	1,454	1,706	-	3,160	4,866	N/A	N/A
Operations Center in Israel
Tivoli	-	360	4,502	2,896	360	7,398	7,758	-	7,855	15,613	Apr-11	Oct-15
HSBC	Mortgage	13,771	5,113	655	13,771	5,768	19,539	-	49,176	68,715	1927-1984	Oct-15
Others	-	2,843	6,441	690	2,843	7,131	9,974	-	(3,581)	6,393	N/A	N/A
Total rental properties		27,127	52,571	29,750	27,127	82,321	109,448	446	95,915	205,809

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

		Initial costs		Subsequent costs	Costs at end of the year
Name	Encumbrances	Plot of land	Buildings, facilities and improvements	Improvements / Additions / Disposals / Transfers	Plot of land	Buildings, facilities and improvements	Total	Capitalized costs, net	Fair value adjustments	Fair Value at the end of the year	Date of construction	Date of acquisition
Undeveloped parcels of land
Operations Center in Argentina
Building<br>annexed to Dot	-	713	-	-	713	-	713	-	3,589	4,302	-	Nov-06
Luján<br>plot of land	-	362	-	37	362	37	399	-	634	1,033	-	May-12
Caballito<br>– Ferro	-	783	55	221	783	276	1,059	-	2,336	3,395	-	Nov-97
Santa<br>María del Plata	-	3,345	877	-	3,345	877	4,222	-	17,284	21,506	-	Jul-97
La<br>Plata plot of land	-	402	-	-	402	-	402	-	606	1,008	-	Mar-18
Intercontinental<br>tower B	-	358	14	575	358	589	947	-	211	1,158	-	-
Others	-	126	42	72	126	114	240	-	382	622	-	-
Operations Center in Israel
Tivoli	-	804	-	10	804	10	814	-	128	942	Apr-11	Oct-15
Total undeveloped parcels of land		6,893	988	915	6,893	1,903	8,796	-	25,170	33,966
Properties under development
Operations Center in Argentina
PH<br>Office Park	-	-	-	16	-	16	16	-	-	16	in<br>progress	-
Building<br>annexed to Alto Palermo Shopping	-	605	-	1,072	605	1,072	1,677	-	221	1,898	in<br>progress	-
EH<br>UTE	-	-	-	114	-	114	114	-	(33)	81	in<br>progress	-
Others	-	-	-	159	-	159	159	-	(12)	147	N/A	N/A
Operations Center in Israel
Tivoli	-	77	1,092	447	77	1,539	1,616	-	(192)	1,424	in<br>progress	Oct-15
Total properties under development		682	1,092	1,808	682	2,900	3,582	-	(16)	3,566
Total		34,702	54,651	32,473	34,702	87,124	121,826	446	121,069	243,341

(i) The breakdown of investment properties as of June 30, 2020 not includes leased farmlands for the amount of ARS 4,445.

(1) Properties located in Argentina.

(2) Properties located in United States of America.

(3) Properties located in Israel.

listofsubsidiariesexhibit

LIST OF SUBSIDIARIES

The following table lists our subsidiaries and their jurisdiction of incorporation as of September 30, 2020:

Subsidiaries	Effective<br>Ownership and Voting Power Percentage	Property/Activity
Agro-Uranga<br>S.A	35.72%	Agro-Uranga S.A. is<br>an agricultural company which owns 2 farmlands (Las Playas and San<br>Nicolás) that have 8.299 hectares on the state of Santa Fe and<br>Córdoba.
Uranga Trading<br>S.A	35.72%	Uranga Trading S.A.<br>is committed to facilitate and optimally manage the trade of grains<br>of the highest quality, locally and internationally.
Brasilagro<br>Companhia Brasileira de Propiedades Agrícolas	33.55%(1)(3)	Brasilagro is<br>mainly involved in four areas: sugar cane, crops and cotton,<br>forestry activities, and livestock.
Agropecuaria Santa<br>Cruz S.A. (formerly known as Doneldon S.A.)	100%	Agropecuaria Santa<br>Cruz S.A. is involved in investments in entities organized in<br>Uruguay or abroad through the purchase and sale of bonds, shares,<br>debentures and any kind of securities and commercial paper under<br>any of the systems or forms created or to be created, and in the<br>management and administration of the capital stock it owns on<br>companies controlled by it.
Futuros y<br>Opciones.Com S.A.	50.10%	A leading<br>agricultural web site which provides information about markets and<br>services of economic and financial consulting through the Internet.<br>The company has begun to expand the range of commercial services<br>offered to the agricultural sector by developing direct sales of<br>supplies, crops brokerage services and cattle<br>operations.
Amauta Agro S.A.<br>(formerly known as FyO Trading S.A.)	50.48%(2)	Amauta Agro<br>S.A.’s purpose is to engage, in its own name or on behalf of<br>or associated with third parties, in activities related to the<br>production of agricultural products and raw materials, export and<br>import of agricultural products and national and international<br>purchases and sales of agricultural products and raw<br>materials.
FyO Acopio S.A.<br>(formerly known as Granos Olavarria S.A.)	50.48%(2)	FyO Acopio S.A. is<br>principally engaged to the warehousing of cereals and brokering of<br>grains.
Helmir<br>S.A.	100%	Helmir S.A. is<br>involved in investments in entities organized in Uruguay or abroad<br>through the purchase and sale of bonds, shares, debentures and any<br>kind of securities and commercial paper under any of the systems or<br>forms created or to be created, and to the management and<br>administration of the capital stock it owns on companies controlled<br>by it.
IRSA Inversiones y<br>Representaciones Sociedad Anónima	62.29%(1)(3)	It is a leading<br>Argentine company devoted to the development and management of real<br>estate.
IRSA Propiedades<br>Comerciales S.A.	2.62%	It is one of the<br>largest owners, developers and operators of shopping malls, offices<br>and other commercial properties in Argentina in terms of gross<br>leasable area and number of rental properties.
Sociedad<br>Anónima Carnes Pampeanas S.A.	100%(3)	Sociedad<br>Anónima Carnes Pampeanas, a company that owns a cold storage<br>plant in Santa Rosa, Province of La Pampa, with capacity to<br>slaughter and process approximately 9,500 cattle head per<br>month.

(1)

Excludes effect of treasury stock.

(2)

Includes Futuros y Opciones.Com S.A.’s interest.

(3)

Includes Helmir’s interest.

Urban Properties and Investments Business

			% of<br>ownership interest held by the Group
Name<br>of the entity	Country	Main<br>activity	As<br>of September 30, 2020
IRSA’s<br>direct interest:
IRSA CP(1)	Argentina	Real<br>estate	80.65%
E-Commerce Latina<br>S.A.	Argentina	Investment	100.00%
Efanur<br>S.A.	Uruguay	Investment	100.00%
Hoteles Argentinos<br>S.A.U.	Argentina	Hotel	100.00%
Inversora<br>Bolívar S.A.	Argentina	Investment	100.00%
Llao Llao Resorts<br>S.A.(2)	Argentina	Hotel	50.00%
Nuevas Fronteras<br>S.A.	Argentina	Hotel	76.34%
Palermo Invest<br>S.A.	Argentina	Investment	100.00%
Ritelco<br>S.A.	Uruguay	Investment	100.00%
Tyrus<br>S.A.	Uruguay	Investment	100.00%
U.T. IRSA y<br>Galerías Pacifico(2)	Argentina	Investment	50.00%
IRSA<br>CP’s direct interest:
Arcos del Gourmet<br>S.A.	Argentina	Real<br>estate	90.00%
Emprendimiento<br>Recoleta S.A.	Argentina	Real<br>estate	53.68%
Fibesa<br>S.A.(3)	Argentina	Real<br>estate	100.00%
Panamerican Mall<br>S.A.	Argentina	Real<br>estate	80.00%
Shopping<br>Neuquén S.A.	Argentina	Real<br>estate	99.95%
Torodur<br>S.A.	Uruguay	Investment	100.00%
EHSA	Argentina	Investment	70.00%
Centro de<br>Entretenimiento La Plata	Argentina	Real<br>estate	100.00%
Pareto<br>S.A.	Argentina	design and software<br>development	69.69%
Tyrus<br>S.A.’s direct interest:
DFL and DN<br>BV	Bermuda’s /<br>Netherlands	Investment	97.04%
I Madison<br>LLC	USA	Investment	—
IRSA Development<br>LP	USA	Investment	—
IRSA International<br>LLC	USA	Investment	100.00%
Jiwin<br>S.A.	Uruguay	Investment	100.00%
Liveck<br>S.A.	Uruguay	Investment	100.00%
Real Estate<br>Investment Group V LP (REIG V)	Bermuda’s	Investment	—
Real Estate<br>Strategies LLC	USA	Investment	100.00%
Efanur<br>S.A.’s direct interest:
Real Estate<br>Investment Group VII LP (REIG VII)	Bermuda’s	Investment	100.00%

Cresud Inc 6-K, filed Jan 5, 2021

About this 6-K