Cresud S.A.C.I.F. y A.

Company Overview

Business Model: Cresud is a leading Latin American agricultural company primarily engaged in the production of basic agricultural commodities. Its core strategy involves the acquisition, development, exploitation, and selective sale of agricultural properties, complemented by land leasing, agency, and agro-industrial services. The Company also holds a significant interest in the urban properties and investment business through its 54.06% equity stake in IRSA Inversiones y Representaciones Sociedad Anónima, one of Argentina’s leading real estate companies, which develops, acquires, and operates shopping malls, premium offices, and luxury hotels. Additionally, Cresud has an indirect investment in Banco Hipotecario S.A. through IRSA Inversiones y Representaciones Sociedad Anónima.

Market Position: Cresud maintains a leadership position in the Latin American agricultural sector, with extensive operations across Argentina, Brazil, Paraguay, and Bolivia. Through IRSA Inversiones y Representaciones Sociedad Anónima, it is a dominant player in Argentina's real estate market, operating 17 shopping malls (totaling approximately 390,000 Gross Leasable Area square meters post-FY2025 acquisitions) with a 97.7% occupancy rate as of June 30, 2025, and office buildings with a 96.2% occupancy rate. The Company also holds an 19.6% interest in Agrofy Global LLC, a leading online agricultural marketplace in Argentina and Brazil.

Recent Strategic Developments:

• Agricultural Business:
  • Acquisitions: BrasilAgro Companhia Brasileira de Propriedades Agrícolas acquired Agrícola Nova Horizonte S.A. (4,767 hectares leased for 16 years) for BRL 6.2 million (ARS 1,421 million) in May 2024.
  • Disposals: BrasilAgro Companhia Brasileira de Propriedades Agrícolas completed the sale of 1,157 hectares of Alto Taquari farm for BRL 189.4 million (ARS 43,395 million) in September 2024. It also sold 850 hectares of Rio do Meio farm for BRL 17 million (ARS 3,736 million) and the entire 17,799-hectare Preferencia farm for BRL 140.0 million (ARS 29,854 million) by June 2025. Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria sold 3,630 hectares of Los Pozos farm for USD 2.23 million (ARS 2,742 million) in September 2024.
• Urban Properties and Investment Business (IRSA Inversiones y Representaciones Sociedad Anónima):
  • Acquisitions: Acquired an 86,861 square meter property adjacent to Alto Avellaneda shopping mall for USD 12.2 million (ARS 14,636 million) in August 2024. Acquired the Terrazas de Mayo shopping mall for USD 27.75 million (ARS 34,335 million) in December 2024. Post-fiscal year, acquired Al Oeste Shopping (20,000 Gross Leasable Area square meters with 12,000 Gross Leasable Area square meters expansion potential) for USD 9 million in September 2025.
  • Disposals: Sold a 1,197 square meter floor in the "261 Della Paolera" tower for USD 7.1 million (ARS 8,558 million) in October 2024. Signed sales and barter agreements for 13 lots in "Ramblas del Plata" totaling approximately USD 81.1 million in FY2025.
• Capital Markets: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria issued Series XLVIII Notes (USD 43.7 million, 8.0%, maturity July 2028) and Series XLIX Notes (USD 31.3 million, 7.25%, maturity September 2027) in July and September 2025, respectively.
• Shareholder Actions: Shareholders' meetings for Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria and IRSA Inversiones y Representaciones Sociedad Anónima are scheduled for October 30, 2025, to consider FY2025 profit allocation and dividend distributions (up to ARS 88.5 billion for Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria and ARS 164 billion for IRSA Inversiones y Representaciones Sociedad Anónima).

Geographic Footprint: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria's primary operational regions are Argentina (headquarters in Buenos Aires), Brazil, Paraguay, and Bolivia for its agricultural business. Its urban properties and investment business is concentrated in Argentina, particularly in the City and Province of Buenos Aires, with minor investments in the United States and Uruguay.

Cross-Border Operations: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria operates internationally through a network of subsidiaries and joint ventures. Key international agricultural subsidiaries include BrasilAgro Companhia Brasileira de Propriedades Agrícolas (Brazil, Bolivia, Paraguay) and FyO Chile SPA (Chile). Urban property investments are managed through entities such as Helmir S.A., Ritelco S.A.U., Tyrus S.A., Torodur S.A. (Uruguay), Sheha Holding LLC, IRSA International LLC, Real Estate Strategies LLC (United States), Liveck Ltd. (British Virgin Islands), Real Estate Investment Group V LP (Bermudas), IDB Development Corporation Ltd., and Dolphin IL Investment Ltd. (Israel). The Company engages in cross-border trade, exporting agricultural products to multinational entities, and is subject to multi-jurisdictional regulatory compliance, including Brazilian restrictions on foreign ownership of agricultural land and Argentine exchange controls.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 40.3%
• Operating Margin: 24.2%
• Net Margin: 24.5%

Investment in Growth:

• R&D Expenditure: ARS 256 million (Agricultural Business)
• Capital Expenditures: ARS 119,434 million (ARS 82,733 million for Urban Properties and Investments Business, ARS 36,701 million for Agricultural Business)
• Strategic Investments: Major acquisitions in FY2025 included Agrícola Nova Horizonte S.A. (ARS 1,421 million), Alto Avellaneda adjacent property (ARS 14,636 million), and Terrazas de Mayo shopping mall (ARS 34,335 million).

Currency Impact Analysis:

• The Argentine Peso depreciated below the inflation rate in FY2025, with the official exchange rate 27 percentage points below inflation.
• In Brazil, agricultural land experienced revaluation due to increased market prices, improved productive outlook, and currency conversion effects in FY2025.
• Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria manages foreign exchange risk using future contracts, put and call options, and foreign currency forward contracts. The functional and presentation currency is the Argentine Peso, with financial statements adjusted for hyperinflation in accordance with IAS 29.

Business Segment Analysis

Agricultural Business

Financial Performance:

• Revenue: ARS 448,266 million (-11.0% YoY)
• Operating Margin: 10.6% (ARS 47,554 million operating income)
• Key Growth Drivers: Strong performance in Land Transformation and Sales (ARS 55,929 million profit from operations) and Cattle production (ARS 8,540 million profit from operations, up from a loss of ARS (7,180) million in FY2024). Sugarcane revenue increased 9.0% YoY to ARS 71,980 million.
• Key Challenges: The Crops segment recorded an operating loss of ARS (5,592) million in FY2025, a significant decline from a profit of ARS 3,888 million in FY2024.

Product Portfolio:

• Crops: Production volume totaled 691,022 tons in FY2025, including Corn (237,951 tons), Soybean (367,654 tons), and Wheat (44,439 tons).
• Sugarcane: Production reached 1,840,588 tons in FY2025.
• Cattle: Production was 11,572 tons (live weight) in FY2025, a 15.9% increase YoY, with a total stock of 77,784 heads.
• Land Transformation and Sales: In FY2025, 1,703 productive hectares were added (1,022 in Argentina, 681 in Brazil).
• Services: Includes brokerage, consulting, logistics, and financial services through Futuros y Opciones.Com S.A., and an online agro marketplace through Agrofy Global LLC.

Market Dynamics:

• Competitive positioning is based on a diversified portfolio across Argentina, Brazil, Paraguay, and Bolivia, focusing on land value appreciation and commodity production.
• Key customer types include multinational exporters for grains and slaughterhouses/supermarkets for cattle. Sales to the ten largest customers accounted for 55% to 60% of net sales (excluding farmland sales) in FY2025.
• The regulatory environment includes SENASA quality controls in Argentina and restrictions on foreign agricultural land ownership in Brazil.

Geographic Revenue Distribution (FY2025):

• Argentina: ARS 236,332 million (52.7% of segment revenue)
• Brazil: ARS 207,158 million (46.2% of segment revenue), representing the principal international market.
• Growth Markets: Operations in Paraguay and Bolivia contributed ARS 4,776 million (1.1% of segment revenue) in FY2025, showing significant growth (+122.8% YoY).

Urban Properties and Investment Business

Financial Performance:

• Revenue: ARS 374,662 million (-0.7% YoY)
• Operating Margin: 56.3% (ARS 211,113 million operating income)
• Key Growth Drivers: The Shopping Malls segment generated ARS 650,765 million in operating profit. Net gain from fair value adjustment of investment properties was ARS 9,135 million.
• Key Challenges: The Offices segment recorded an operating loss of ARS (133,692) million, and Sales and Developments recorded an operating loss of ARS (324,287) million.

Product Portfolio:

• Shopping Malls: Owns and operates 17 shopping malls in Argentina (post-FY2025 acquisition), totaling approximately 390,000 Gross Leasable Area square meters. Occupancy rate was 97.7% as of June 30, 2025. Tenant retail sales for FY2025 were ARS 3,062,900 million, a 2.8% decrease YoY.
• Offices: Owns 5 office buildings in the Autonomous City of Buenos Aires, totaling 55,000 Gross Leasable Area square meters, with a 96.2% occupancy rate.
• Hotels: Holds interests in 3 hotels in Argentina (Intercontinental, Libertador, Llao Llao), totaling 718 rooms.
• Sale and Development of Properties and Land Reserves: Projects include Ramblas del Plata, Coto Abasto air space, and Caballito Block 35.
• Investments: Holds a 29.12% equity interest in Banco Hipotecario S.A. and indirect participations in La Rural S.A. (convention centers) and Ogden Argentina S.A. (La Arena stadium concession).

Market Dynamics:

• Competitive positioning as a leading real estate company in Argentina, with high occupancy rates in its core shopping mall and office portfolio.
• Key customer types include a diversified tenant base of recognized retailers and companies. The five largest tenants represent 9.3% of Gross Leasable Area and 10.6% of annual basic rent.
• The regulatory environment for leases in Argentina was significantly altered by Decree No. 70/2023, which eliminated statutory minimum lease terms and allowed for greater flexibility in rent denomination and payment frequency.

Geographic Revenue Distribution (FY2025):

• Argentina: ARS 374,042 million (99.8% of segment revenue)
• Uruguay: ARS 547 million (<0.1% of segment revenue)
• USA: ARS 73 million (<0.1% of segment revenue)

International Operations & Geographic Analysis

Revenue by Geography (FY2025):

International Business Structure:

• Subsidiaries: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria operates through numerous international subsidiaries, including BrasilAgro Companhia Brasileira de Propriedades Agrícolas (Brazil, Bolivia, Paraguay), Helmir S.A. (Uruguay), FyO Chile SPA (Chile), and various entities in the United States (Sheha Holding LLC, IRSA International LLC, Real Estate Strategies LLC), British Virgin Islands (Liveck Ltd.), Bermudas (Real Estate Investment Group V LP), and Israel (IDB Development Corporation Ltd., Dolphin IL Investment Ltd.).
• Joint Ventures: The Company is involved in joint ventures such as Nuevo Puerto Santa Fe S.A., Cyrsa S.A., and Puerto Retiro S.A., all located in Argentina.
• Cross-Border Trade: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria's agricultural business exports products to multinational entities. Argentina has implemented policies such as 0% export duties on over 70 agro-industrial products and certain meats until October 31, 2025, to incentivize exports. Transfer pricing policies are in place for inter-company transactions.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria completed a share repurchase program in December 2024, acquiring 4,522,623 common shares (0.75% of capital stock) under an ARS 6,500 million authorization. As of June 30, 2025, the Company owned 1.0% of its capital stock.
• Dividend Payments: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria paid ARS 54,485 million in dividends in November 2024 for FY2025. For FY2024, total dividends paid amounted to ARS 121,785 million.
• Future Capital Return Commitments: A shareholders' meeting on October 30, 2025, will consider a dividend distribution of up to ARS 88,500 million and the distribution of up to 5.3 million own shares.

Balance Sheet Position (as of June 30, 2025):

• Cash and Equivalents: ARS 250,855 million
• Total Debt: ARS 1,343,112 million
• Net Cash Position: ARS (1,092,257) million (Net Debt)
• Debt Maturity Profile (Capital, ARS millions):
  • Less than 1 year: 510,491
  • 1-2 years: 171,963
  • 2-3 years: 188,438
  • 3-4 years: 8,135
  • 4-5 years: 69,604
  • More than 5 years: 346,421
• As of June 30, 2025, 91.7% of borrowings had a fixed interest rate.

Cash Flow Generation:

• Operating Cash Flow: ARS 151,319 million (FY2025)
• Working Capital: Positive ARS 244,916 million as of June 30, 2025.

Currency Management:

• Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria manages its multi-currency operations by utilizing financial hedging instruments such as future contracts, put and call options, and foreign currency forward contracts. The Company also benefits from natural hedging through the geographical diversification of its agricultural land and operational diversification across its business segments.

Operational Excellence

Production & Service Model: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria's agricultural business encompasses a vertically integrated model including crop production (grains, sugarcane), cattle feeding, raising, fattening, and slaughtering, and milk production. It also provides brokerage, consulting, logistics, and financial services through Futuros y Opciones.Com S.A. and operates an online agro marketplace via Agrofy Global LLC. The urban properties and investment business, primarily through IRSA Inversiones y Representaciones Sociedad Anónima, focuses on the management, development, and ownership of shopping malls, office buildings, and hotels, alongside property sales and development.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Grain Buyers: Principal customers for agricultural products include Cargill, FASA, Bunge Alimentos S.A., ACA, Glencore, COFCO, and Viterra.
• Sugarcane Buyers: Atvos S.A. and Agroserra - Agro Pecuária e Industria are key partners for sugarcane production in Brazil.
• Technology Partners: Agrofy Global LLC serves as a strategic partner for digital agricultural platforms.

Facility Network:

• Manufacturing: Implied processing facilities for sugarcane production in Brazil.
• Research & Development: Investments in technology are focused on increasing the productivity of agricultural land.
• Distribution:
  • Agricultural: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria owns 26 farms totaling 578,217 hectares across Argentina, Brazil, Bolivia, and Paraguay, with concession rights for an additional ~132,000 hectares.
  • Urban: IRSA Inversiones y Representaciones Sociedad Anónima operates 17 shopping malls, 5 office buildings, and 3 hotels primarily in Argentina.

Operational Metrics:

• Agricultural: Total land used was approximately 596,017 hectares in FY2025, with 303,637 hectares sown for crop production. Cattle stock aggregated 77,784 heads as of June 2025.
• Urban Properties: Shopping mall occupancy rate was 97.7% and office occupancy rate was 96.2% as of June 30, 2025. Hotel occupancy rates ranged from 54.6% to 67.8% in FY2025.
• Digital Platforms: Agrofy Global LLC exceeded 40 million visits, and We are appa S.A. recorded over 5.3 million transactions in FY2025, facilitating over ARS 46,800 million in consumption within IRSA Inversiones y Representaciones Sociedad Anónima shopping malls.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes regional sales forces for direct customer relationships in its agricultural business.
• Channel Partners: Leverages Futuros y Opciones.Com S.A. for brokerage, consulting, logistics, and financial services in the agricultural sector.
• Digital Platforms: Employs Agrofy Global LLC as an online agro marketplace and We are appa S.A. for digital engagement and sales within its shopping mall portfolio.

Customer Portfolio: Enterprise Customers:

• Agricultural Business: Serves approximately 30 customers, with the ten largest accounting for 55% to 60% of net sales (excluding farmland sales). Key customers include multinational exporters such as Cargill, FASA, Bunge Alimentos S.A., ACA, Glencore, COFCO, and Viterra. Agreements are typically short-term, less than one year.
• Urban Properties: Maintains a diversified tenant base of recognized retailers and companies across its shopping malls and office buildings. No single tenant represents 10% or more of IRSA Inversiones y Representaciones Sociedad Anónima's revenues. The top five tenants account for 9.3% of Gross Leasable Area and 10.6% of annual basic rent.
• Customer Concentration: While the agricultural business exhibits some customer concentration, no single external client represents 10% or more of the revenue of any reportable segment.

Regional Market Penetration:

• Argentina: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria has a strong and leading market penetration in both the agricultural and urban real estate sectors.
• Brazil: Significant market presence in agricultural production through BrasilAgro Companhia Brasileira de Propriedades Agrícolas, complemented by Agrofy Global LLC's leading online platform.
• Paraguay & Bolivia: Established agricultural operations through BrasilAgro Companhia Brasileira de Propriedades Agrícolas.
• Uruguay & USA: Maintains a presence through minor urban property investments and development projects.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics:

• Global Economy: Worldwide GDP is projected to grow by 3.2% in 2025 and 3.1% in 2026, with global inflation expected to decrease from 5.9% in 2024 to 4.2% in 2025.
• Agriculture Sector: Global soybean production is estimated at 425.9 million tons for 2025/2026 (-0.8% YoY), corn at 1,286.58 million tons (+5.5% YoY), and wheat at 795.00 million tons (-0.2% YoY). Argentina's crop output for 2025/2026 is estimated at 121.5 million tons. The Argentine cattle sector saw beef production increase by 1.0% and pork by 0.35% in the first eight months of 2025.
• Urban Properties Sector (Argentina): Shopping mall sales increased by 27.8% in FY2025. Office vacancy was 14.46% in Q2 2025, with average rental prices for Category A+ offices at USD 23.43/sqm. Hotel overnight stays decreased by 7.1% in June 2025, with a room occupancy rate of 34.0%.

Competitive Positioning Matrix:

Regional Competitive Dynamics:

• Argentina (Agricultural): Operates in a competitive landscape with other large agricultural producers and exporters, benefiting from its scale and diversified land portfolio.
• Argentina (Real Estate): Faces competition from other developers and operators in the shopping mall, office, and hotel segments, maintaining strong market share through strategic acquisitions and high occupancy rates.
• Brazil (Agricultural): Competes with local and international agricultural companies, navigating specific regulatory restrictions on foreign ownership of agricultural land.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Economic Volatility: Exposure to global economic fluctuations, including potential impacts from US tariff measures and escalating trade tensions.
• Commodity and FX Volatility: Increased volatility in global commodity prices and foreign exchange markets, particularly for the Argentine Peso, Brazilian Real, and US Dollar.
• Argentine Macroeconomic and Political Conditions: Significant exposure to Argentina's macroeconomic instability, including high inflation (CPI 39.4% in FY2025), exchange rate volatility, and changes in government policies (e.g., export duties, exchange controls). Political shifts, such as the new presidential administration and upcoming legislative elections, introduce policy uncertainty.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on a concentrated group of multinational exporters for agricultural sales and specific supply agreements for sugarcane production.
• Regional Disruptions: Agricultural operations are susceptible to climate change risks, including water deficits, excessive rainfall, fires, and droughts, which can significantly impact crop yields and biological assets.
• Trade Restrictions: Operations are affected by Argentine exchange controls and export duties, which can impact profitability and access to foreign currency.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Substantial net foreign currency liability, primarily in US Dollars (ARS 802,923 million as of June 30, 2025), exposing the Company to significant translation and transaction risks. Argentine exchange controls restrict access to the official foreign exchange market.
• Interest Rate Risk: While 91.7% of long-term financial borrowings are fixed-rate, exposure to floating rates remains, with a 1% increase potentially impacting pre-tax net loss.
• Credit & Liquidity: Consolidated gross debt of ARS 1,343,112 million, with a significant portion maturing in less than one year (ARS 510,491 million). Liquidity is managed through cash reserves and diversified funding sources.
• Commodity Price Risk: The agricultural business is directly exposed to commodity price volatility, mitigated through derivative instruments (forwards, futures, options).

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: Operates under complex regulatory frameworks in Argentina (CNV, Central Bank, UIF), Brazil (agricultural land restrictions), and other international jurisdictions.
• Trade Regulations: Subject to Argentine export controls, sanctions compliance, and anti-corruption laws (e.g., FCPA).
• International Tax Strategy: Navigates international tax planning, transfer pricing risks, and BEPS compliance, with no tax treaty between Argentina and the United States.
• Litigation: Involved in significant legal proceedings, including the IDBD lawsuit (NIS 140 million claim) and the Puerto Retiro litigation (confiscation order), which carry financial and reputational risks.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk (Argentina): Ongoing political instability, frequent changes in government policies, and legal challenges to executive decrees (e.g., Decree No. 70/2023) create an unpredictable operating environment.
• Economic Risk (Brazil, Paraguay, Bolivia): BrasilAgro Companhia Brasileira de Propriedades Agrícolas's assets in these countries expose the Company to their respective economic conditions, including currency fluctuations and inflation.
• Regulatory Changes: The risk of abrupt changes in local laws and regulations, particularly concerning land ownership, environmental standards, and financial controls, can impact operations and profitability.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network:

• Agricultural Business: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria invests in technology to enhance the productivity of its agricultural land.
• Innovation Pipeline: Agrofy Global LLC, in which Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria holds a significant stake, has strengthened its Agrofy Pay platform and implemented AI tools, such as "Clementina," to improve its online agricultural marketplace.

Intellectual Property Portfolio:

• Patent Strategy: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria does not own patents.
• Licensing Programs: The Company does not benefit from third-party licenses.
• Trademarks: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria holds trademarks registered with the Instituto Nacional de la Propiedad Industrial.

Technology Partnerships:

• Strategic Alliances: Strategic alliances are primarily reflected through equity investments in technology-driven companies like Agrofy Global LLC and Futuros y Opciones.Com S.A., which enhance its market access and operational efficiency.

Leadership & Governance

Executive Leadership Team

International Management Structure:

• The Company's operations across Argentina, Brazil, Paraguay, and Bolivia imply a decentralized management structure with regional leadership, though specific reporting relationships and autonomy levels are not detailed.

Board Composition:

• The Board of Directors comprises 12 regular directors and 6 alternate directors. Four directors (Liliana Glikin, Alejandro Bartolome, Gabriela Macagni, and Enrique Antonini) are designated as independent.
• The Board includes several members of the Elsztain family, with Eduardo S. Elsztain (Chairman) being married to Mariana R. Carmona (Regular Director), father of Ilan Elsztain and Iair Elsztain (Alternate Directors), and brother of Alejandro G. Elsztain (CEO) and cousin of Fernando A. Elsztain (Regular Director).
• The Audit Committee receives quarterly reports on information security.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Argentina: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria operates under the supervision of the Argentine National Securities Commission (CNV), the Argentine Central Bank (Central Bank), and the Financial Information Unit (UIF). Agricultural activities are regulated by SENASA. Real estate operations are subject to the Argentine Civil and Commercial Code, as amended by Decree No. 70/2023, which significantly altered lease regulations.
• Brazil: Agricultural operations through BrasilAgro Companhia Brasileira de Propriedades Agrícolas are subject to Brazilian regulations, including Law No. 5,709/71 and Decree No. 74,965/74, which impose limitations on foreign acquisition of agricultural properties. Environmental compliance is managed through the Rural Environmental Register (CAR) and specific environmental licenses.
• United States: As a registrant with American Depositary Shares listed on NASDAQ, Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria is subject to the United States Securities Exchange Act of 1934 and the U.S. Foreign Corrupt Practices Act of 1977 (FCPA).

Cross-Border Compliance:

• Export Controls: The Company's agricultural exports are influenced by Argentine government policies, including temporary removal of export duties on certain agro-industrial products.
• Sanctions Compliance: International operations necessitate adherence to multi-jurisdictional sanctions regimes.
• Anti-Corruption: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria maintains compliance programs to address anti-corruption laws, including the FCPA and local anti-bribery statutes. Argentina's ranking of 99 out of 180 in Transparency International’s 2024 Corruption Perceptions Index highlights the ongoing challenges in the region.

International Tax Strategy:

• Transfer Pricing: The Company's international tax strategy involves managing transfer pricing policies for inter-company transactions, which are subject to scrutiny by tax authorities.
• Tax Treaties: Argentina has tax treaties with 22 countries, which can offer planning opportunities, but notably, there is no tax treaty with the United States.
• BEPS Compliance: The Company is exposed to risks related to Base Erosion and Profit Shifting (BEPS) regulations.
• Taxation of Dividends (Argentina): Dividends are subject to a 7% withholding tax for resident individuals and foreign shareholders on profits accrued from January 1, 2018, onwards.
• Taxation of Capital Gains (Argentina): Capital gains for foreign beneficiaries are generally exempt if listed on CNV-supervised exchanges and not from "non-cooperating jurisdictions"; otherwise, they are subject to a 13.5% tax on gross or 15% on net, with a 35% rate for "non-cooperating jurisdictions."

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments:

• Climate Strategy: While a comprehensive global climate strategy is not explicitly detailed, Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria demonstrates commitment through various environmental certifications and sustainable agricultural practices.
• Renewable Energy: Not explicitly detailed.

Regional Sustainability Initiatives:

• Argentina: Adheres to national environmental standards (Law No. 25,675), the Forest Law (for native forests), and the Escazú Agreement.
• Brazil: BrasilAgro Companhia Brasileira de Propriedades Agrícolas has 60,610.65 hectares (approximately 30% of its total properties) designated as protected areas and ensures all owned properties are registered or in process with the Rural Environmental Register (CAR).
• Supply Chain: The Company participates in several sustainability programs:
  • 2BSvs program: 970 tons certified in the 2024/2025 campaign.
  • RTRS (Round Table on Responsible Soy): Certified 18,875 hectares of soybean and corn.
  • Triple S (Sustainably Sourced and Supplied): 5,400 tons marketed in the 2024/2025 season.
  • ProTerra Program: 8,264.6 hectares of NON-GMO crops in Argentina in the 2024/2025 campaign.
  • Indigo – Regenerative Agriculture Practices Valorization Program: 18,500 tons of yellow corn and 6,000 tons of soybeans participated in the 2024/2025 season.
  • RWS (Responsible Wool Standard): The 8 de Julio farm received RWS certification in April 2022.

Social Impact by Region:

• Community Investment: Fundación IRSA, established in 1996, made a direct social investment of ARS 828,894,598 in 2025, collaborating with over 79 social organizations. Key initiatives include the "Puerta 18" Foundation, which has trained over 5,500 young people, and the "Museo de los Niños" Foundation, which has attracted over 850,000 visitors.
• Labor Standards: The Company maintains labor standards across its multi-jurisdictional operations. In Argentina, 25% of the Agricultural Business workforce is unionized, while 270 employees in the Urban Properties and Investments Business are represented by the Union of Commerce Employees, and 556 hotel employees are represented by the Tourism, Hotels and Gastronomy Union.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: Cresud Sociedad Anónima Comercial Inmobiliaria Financiera y Agropecuaria actively uses future foreign exchange contracts, put and call options, and foreign currency forward contracts to mitigate short-term foreign exchange risk arising from its multi-currency operations.
• Translation Hedging: The Company manages its net financial position exposure to functional currencies, although specific translation hedging instruments are not detailed.
• Economic Hedging: Operational diversification across different geographical areas for its agricultural land and across distinct business segments (agriculture and urban real estate) provides a natural hedge against long-term economic and currency fluctuations.