Notes to the Unaudited Condensed Interim Consolidated Financial
Statements
(Amounts
in millions, except otherwise indicated)
1.
The
Group’s business and general information
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 June 8, 2020.
As of
March 31, 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:
(i)
See Note 4 to the
Annual Financial Statements for more information about the
Operations Center in Israel.
Operations Center in Israel
IDBD
and DIC have certain restrictions and financial agreements in
relation to their financial debt, including their debentures and
loans with banks and financial institutions. Regarding IDBD's
financial position, its cash flow and its ability to meet its
financial debt commitments, it should be considered that certain
bondholders have hired representative and legal advisors, over the
last months to evaluate potential courses of actions including
procedures for declaring IDBD’s insolvency.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The financial
situation of the IDBD subsidiary as of March 31, 2020, presents a
negative shareholder’s equity, negative operating cash flows
and a downgrade of its credit rating, which casts substantial doubt
on IDBD's ability to continue operating as a going concern. In
order to meet its liabilities, including short-term liabilities,
IDBD’s cash flows are based on the sales of assets, the dates
of which are not under the control of IDBD. These assets include
Clal's current share price and its implications on the deposits of
the swap transaction (see Note 31) and the assumption that IDBD
will receive, among other things, cash from private investments
that are directly held by IDBD.
Additionally,
IRSA’s Board of Directors has approved a commitment with
Dolphin to make capital contributions to Dolphin for up to NIS 210
(approximately Ps. 3,641 as of the date of these financial
statements), which is described in Note 1 to the Annual Financial
Statements.
The
commitments and other restrictions that result from IDBD and
DIC’s indebtedness do not have effect over IRSA since such
indebtedness has no recourse against IRSA, nor has IRSA guaranteed
it with its assets, except for the commitment to make contributions
to Dolphin that was described above.
Considering the
above, as of March 31, 2020, the financial risk of IRSA with
respect to the Operations Center in Israel is limited to the
abovementioned commitments and the equity risk, as a result of the
pledges granted over DIC shares to certain bondholders of IDBD, is
limited to the value of IRSA’s net assets in the Operations
Center of Israel, which amounted to NIS 137 (Ps. 2,369) as of March
31, 2020.
2.
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, 2019 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 nine months ended
March 31, 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 March 31, 2020, according to official
statistics (INDEC) and following the guidelines described in
Resolution 539/18.
|
|
As of March 31, 2020 (accumulated nine months)
|
|
Price variation
|
36%
|
As
a consequence of the aforementioned, these financial statements as
of March 31, 2020 were restated in accordance with IAS
29.
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
8
Cresud Sociedad
Anónima,
Comercial,
Inmobiliaria, Financiera y Agropecuaria
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.
The
main changes were the following:
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 substantially obtain 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 to exclude short-term contracts (under 12 months)
and those in which the underlying asset has low value.
●
Amendment 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 interest 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 book value
of the investment in accordance with IAS 28.
Additionally, the
Company 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 for the first
implementation of IFRS 16 and IAS 28 is the following:
|
|
|
IFRS 16 impact
|
|
IAS 28 impact
|
|
Adjusted statement of financial position
|
|
ASSETS
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
Investment properties
|
|
405
|
|
-
|
|
405
|
|
Right-of-use assets
|
|
15,502
|
|
-
|
|
15,502
|
|
Investments in associates and joint ventures
|
|
-
|
|
(1,927)
|
|
(1,927)
|
|
Trade and other receivables
|
|
114
|
|
-
|
|
114
|
|
Total non-current assets
|
|
16,021
|
|
(1,927)
|
|
14,094
|
|
|
|
|
|
|
|
|
|
Income tax and MPIT credit
|
|
16
|
|
-
|
|
16
|
|
Group of assets held for sale
|
|
(161)
|
|
-
|
|
(161)
|
|
Trade and other receivables
|
|
2,962
|
|
-
|
|
2,962
|
|
Total current assets
|
|
2,817
|
|
-
|
|
2,817
|
|
TOTAL ASSETS
|
|
18,838
|
|
(1,927)
|
|
16,911
|
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Shareholders' equity attributable to equity holders of the
parent
|
|
|
|
|
|
|
|
Retained earnings
|
|
(80)
|
|
(693)
|
|
(773)
|
|
Non-controlling interest
|
|
(49)
|
|
(1,234)
|
|
(1,283)
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
(129)
|
|
(1,927)
|
|
(2,056)
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Lease liabilities
|
|
11,598
|
|
-
|
|
11,598
|
|
Total non-current liabilities
|
|
11,598
|
|
-
|
|
11,598
|
|
Current liabilities
|
|
|
|
|
|
|
|
Lease liabilities
|
|
4,343
|
|
-
|
|
4,343
|
|
Trade and other payables
|
|
(85)
|
|
-
|
|
(85)
|
|
Group of liabilities held for sale
|
|
3,111
|
|
-
|
|
3,111
|
|
Total current liabilities
|
|
7,369
|
|
-
|
|
7,369
|
|
TOTAL LIABILITIES
|
|
18,967
|
|
-
|
|
18,967
|
|
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
|
|
18,838
|
|
(1,927)
|
|
16,911
|
9
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
2.3
Comparability
of information
Balance
items as of June 30, 2019 and March 31, 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 Gav-Yam. See note 4.(l) to Annual Financial
Statements.
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.
3.
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.
Operations
Center in Israel
The
results of operations of telecommunications and tourism are usually
affected by seasonality in summer months in Israel and by the
Jewish New Year, given a higher consumption due to internal and
external tourism.
4.
Acquisitions
and disposals
Significant
acquisitions and disposals for the nine-month period ended March
31, 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.
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
10
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Agricultural business
Sale of Alto Taquarí
On
October 29, 2019, the Group through its subsidiary Brasilagro has
entered into a purchase-sale agreement for an area of 85 hectares
(65 arable hectares) of Alto Taquari Farm, located in in Alto
Taquari, Mato Grosso state. The total amount of the sale is Ps. 89.
The buyer made the initial payment of 14,300 soybean bags, totaling
Ps. 17. The remaining balance will be paid in four annual
installments. The result of the transaction was recognized for Ps.
65.
Sale of Jatobá
On July
2019, the Group through its subsidiary Brasilagro has entered into
a purchase-sale agreement for an area of 1,134 hectares (893 arable
hectares) of Jatobá Farm, located in Jaborandi, Bahia state.
The total amount of the sale is 302 soybean bags per arable hectare
equivalent to Ps. 374. The buyer already made an initial payment of
Ps. 43. The remaining balance will be paid in six annual
installments. The result of the transaction was recognized for Ps.
258.
BrasilAgro-Agrifirma merge, acquisition of shares and partial sale
of BrasilAgro’s shares
Partial 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 6.3% of the share
capital for an amount of USD 15,6 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 115,586,579.79
from BRL 584,224,000 to 699,810,579.79, 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.
Below
is a breakdown of the fair value of the assets acquired,
liabilities assumed and minority interest of the
acquisiton:
|
|
|
03.31 20
|
|
Fair value of identifiable assets and assumed
liabilities:
|
|
|
|
Cash
and cash equivalents
|
|
15
|
|
Trade
and other receivables
|
|
367
|
|
Inventories
|
|
21
|
|
Biological
assets
|
|
70
|
|
Taxes
and contributions to recover
|
|
43
|
|
Group
of assets held for sale
|
|
344
|
|
Property,
plant and equipment
|
|
3,193
|
|
Trade
and other payables
|
|
(282)
|
|
Borrowings
|
|
(1,788)
|
|
Taxes
to pay
|
|
(9)
|
|
Payroll
and social security liabilities
|
|
(41)
|
|
Provisions
|
|
(1)
|
|
Deferred
income tax liabilities
|
|
(401)
|
|
Total identifiable net assets
|
|
1,531
|
|
Non-controlling
interest
|
|
-
|
|
Key
pending allocation
|
|
60
|
|
Total consideration
|
|
1,591
|
Véase nuestro informe de fecha 09/11/18
11
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
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 Ps. 5.7.
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.
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:
i)
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 Argentina
Condor merger agreement
On July
19, 2019, Condor signed an agreement and merger plan with a company
not related to the Group. The agreement set that each ordinary
share, whose nominal value is US$ 0.01 per share will be canceled
before the merger and will be replaced by the right to receive a
cash amount equivalent to US$ 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 shareholders will become entitled to
receive a cash amount equal to US$ 10.00 per share.
The
closing of the acquisition, scheduled for March 23, 2020, did not
occur and has not occurred until the date of issuance of these
financial statements. The Company continues to review its options
and reserves all rights and resources under the Merger
Agreement.
At the
date of issuance of these financial statements, the Group held
2,197,023 ordinary shares and 325,752 Series E shares.
Distribution of dividends in kind
On
October 30, 2019, the Ordinary Shareholders’ Meeting of IRSA
approved a dividend distribution in kind for the equivalent amount
of Ps. 480 (representative of Ps. 0.83 per share) payable in shares
of IRSA CP. IRSA CP’s quoted price per share as of October
29, 2019, which amounted to Ps. 205 per share, was considered for
the distribution. As a result, 2,341,463 shares were distributed.
This transaction was accounted for as a change in equity generating
a reduction of the equity attributable to the controlling
shareholders for Ps. 478 restated for inflation as of the date of
this financial statements. As of the end of the period the
groups’ interest in IRSA CP amounts to 80.65%.
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
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
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. Through the
recapitalization agreement TGLT committed to: (i) make a public
offering to subscribe Class A preferred shares at a subscription
price of US$1.00 per TGLT share; (ii) 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 US$1.00 of
convertible notes (including accumulated and unpaid interests under
the existing convertible notes); and (iii) 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 is completed and (b) a minimum number of option
holders have exercised that option at a subscription price of
US$1.00 per Class C preferred share (or its equivalent in
pesos).
Finally, supporting
the recapitalization plan, IRSA CP signed a subscription commitment
with TGLT for Class A preferred shares under the Class A Public
Offering to make a contribution in kind of shares of La
Maltería S.A., 100% of its ownership, for an amount of up to
US$ 24 and promised to exchange its convertible notes into Class B
preferred shares.
Moreover, on
November 22, 2019, TGLT held a meeting with bondholders of
convertible notes in order to consider the amendment to different
clauses of the indenture in force at that date, and in line with
what was agreed in the recapitalization agreement, IRSA CP approved
the amendments.
Under
the agreements described above, the successful consummation of the
offer by TGLT, and having reached the thresholds of consent from
the bondholders of convertible notes of TGLT, on December 11, 2019,
the Company concluded the process scheduled in the recapitalization
agreement and related documents through the subscription of Class A
preferred shares, integrating them in kind through the contribution
of the shares of the La Maltería S.A., 100% of their ownership
and, moreover, 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.
Operations
Center Israel
Sale of Gav-Yam
On July
1, 2019, PBC sold approximately 11.7% of its equity interest in
Gav-Yam's through private agreements. After this transaction, the
interest of PBC in Gav-Yam decreased from 51.7% to 40.0%. The
consideration received for said sale was NIS 456 (approximately Ps.
6,595 restated as of the date of these financial
statements).
Additionally, on
September 1, 2019, PBC sold approximately an additional 5.14% of
Gav-Yam, therefore the interest of PBC in Gav-Yam went from 40.0%
to 34.9%. As a consequence of the aforementioned sales, PBC has
lost the right to nominate the majority of the members of the Board
of Directors, and to appoint or remove the key members of
management. Consequently, PBC has lost control of Gav-Yam and has
deconsolidated such investment since that date.
Below
is a detail of the sale:
|
|
09.30.2019
|
|
Cash received
|
13,534
|
|
Remeasurement of the fair value of the remaining
investment
|
30,524
|
|
Total
|
44,058
|
|
Net assets written off including goodwill
|
(26,692)
|
|
Gain from sale of subsidiary, net of taxes (*)
|
17,366
|
(*) These results are presented within discontinued operations, in
the line “Other operating results, net”.
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
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Below
is a detail of the net assets deconsolidated:
|
|
09.30.2019
|
|
Investment properties
|
147,897
|
|
Property, plant and equipment
|
1,007
|
|
Intangible assets
|
3,113
|
|
Right-of-use assets
|
40
|
|
Investments in associates and joint ventures
|
4,172
|
|
Restricted assets
|
359
|
|
Trade and other receivables
|
1,098
|
|
Investments in financial assets
|
12,853
|
|
Trading properties
|
147
|
|
Income tax credit
|
180
|
|
Cash and cash equivalents
|
10,081
|
|
TOTAL ASSETS
|
180,947
|
|
Borrowings
|
90,575
|
|
Lease liabilities
|
40
|
|
Deferred income tax liabilities
|
20,072
|
|
Trade and other payables
|
2,276
|
|
Employee benefits
|
20
|
|
Salaries and social security liabilities
|
60
|
|
Income tax and MPIT liabilities
|
119
|
|
TOTAL LIABILITIES
|
113,162
|
|
Non-controlling interest
|
41,093
|
|
Net assets written off including goodwill
|
26,692
|
Agreement for sale of a plot of land in the US
As
mentioned in Note 4. D of the Operations Center in Israel, the
agreement for the sale of the land attached to the Tivoli project
has been breached and terminated. In July 2019, the Group signed a
new agreement for the sale of the aforementioned land, for a total
amount of US$ 18. At this stage, there is no certainty that the
sale transaction will be completed.
IDBD financing agreement
On
August 31, 2019, IDBD’s Board of Directors gave its approval
to accept a commitment by Dolphin to make a capital contribution
("the Commitment"), whose main points are the
following:
Dolphin
undertook the irrevocable commitment to make capital contributions
to IDBD for a total amount of NIS 210 in three equal annual
payments (NIS 70 each) on September 2, in each of the years
2019-2021 ("Payments" and "payment dates", respectively). The
aforementioned payments will be made in exchange for the
company’s shares or as a subordinated loan in similar terms
to the subordinated loan that Dolphin advanced in the past to IDBD.
On September 2, 2019, the first payment for NIS 70 was made,
(approximately Ps. 1,271 restated as of the date of these financial
statements).
IRSA
committed unilaterally and irrevocably to transfer to Dolphin the
amounts it requires to comply with the Commitment ("IRSA
Commitment"). If Dolphin does not make the capital contributions in
accordance with the Commitment, then Dolphin's rights in accordance
with the IRSA Commitment will be automatically assigned to IDBD,
and IDBD will have the right to act to carry out the IRSA
Commitment.
The
Commitment will automatically expire in each of the following
cases: (a) if motions are filed to decree insolvency against IDBD
(whether voluntarily or involuntarily filed) in the courts of
Israel and they are valid in any of the Payment Dates, in which
case the corresponding Payment Date will be postponed for a period
of 90 days and the corresponding payment will be transferred to
IDBD only if the procedures are canceled during the mentioned
period of 90 days. If the procedures for declaring insolvency are
not canceled within 90 days as mentioned above, the entire
commitment will expire; (b) if an insolvency decree is given as set
forth in section 3 of the Israel Insolvency and Economic Recovery
Act, 5778-2018; and (c) a trustee, fiduciary, special manager or
any officer of this type (temporary or permanent) is appointed in
IDBD, or the court issues a similar order (with respect to the
insolvency of IDBD).
Additionally,
during March 2020, IRSA transferred approximately NIS 12
(approximately Ps. 235 restated as of the date of these financial
statements)
Advance payment of Ispro debentures
In
August 2019, the Audit Committee and Ispro Board approved the full
advance payment of the debentures (Series B), which were quoted in
the TASE, the total amount was NIS 131 (approximately Ps. 2,339 as
of that date). The early repayment of these debentures will make
Ispro an unlisted company for the TASE.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Sale of Clal shares
On
August 28, 2019, the second buyer of the transaction described in
Note 4.A. notified the decision to exercise the option for the
remaining 3% at a price of NIS 50 per share for a total of NIS 83
(approximately Ps. 1,655 as of that date). These shares were
delivered through a swap contract.
On
September 3, 2019, IDB concluded an agreement for the sale of an
additional 6% of Clal shares, of which 1% would be collected in
cash (approximately NIS 29) and the remaining 5% through the
receipt of IDBD’s own debentures for a nominal value of
approximately NIS 190 (approximately Ps. 3,789 as of that date).
The agreed price of Clal share was NIS 52.5 and the discount value
applied to the IDBD debentures was between 25% - 21% discount with
respect to the nominal value.
As
mentioned in Note 4.A. to the annual financial statements, IDBD was
looking for different ways of financing the purchase of Clal's to
the third buyer. On October 27, 2019, IDBD signed an agreement with
a financial entity which offered to buy all rights and obligations
related to the financing of said purchase.
On
November 7, the sale transaction has been completed and the loan
has been granted by a financial entity. It should be clarified that
the amount of 2,771,309 of Clal Insurance Enterprises shares sold
was subject to a swap transaction between IDBD and a financial
entity, that ended with the Company's notice to that
entity.
On
December 16, Clal made a public capital increase of 12,066,000
shares at a price of NIS/share 53.87 in which IDBD did not take
part.
Additionally, on
the same date, IDBD sold 200,000 shares of Clal at a price of
NIS/share 53.95, representative of 0.3% of the new share
capital.
On
December 18, IDBD sold 617,017 shares of Clal at a price of
NIS/share 53.77, representative of 0.9% of the share
capital.
Additionally,
during December 2019, a swap transaction, which IDBD had agreed for
2.771.309 shares, expired. The price per share was of NIS
52.25.
During
the period between January and March 2020, a swap for 751,000
shares expired. The closing price was NIS 45.09 per
share.
As a
result of said transaction, as of March 31, 2020, IDBD’s
equity interest in Clal Insurance Enterprises decreased to 8.5% and
it owned an additional 7.1% through swap transactions.
On
February 4, 2020, Dolphin granted financial entities, through which
IDB carried out the Clal share swap transactions in August and
November 2018, guarantees for approximately NIS 11, which will be
part of the committed deposits IDB assumed as part of the terms of
such transactions. Likewise, on February 18, it deposited
additional guarantees for NIS 9. As of March 31, the total of the
guarantees granted amounted to a total of NIS 37.4.
Additionally, if
swap transactions conclude before the second payment deadline
(reported in note 4.C to these financial statements), the
unrealized parts of the guarantees will be returned to Dolphin,
while the exercised parts of the guarantees until that date, it
will be considered as part of the second payment, so Dolphin will
transfer the balance of said payment to IDBD; If the swap
transactions are still effective as of the second disbursement
deadline, Dolphin will inject the second payment into IDB and the
guarantees will be returned to you.
Capital Increase in Cellcom
On
December 5, 2019, Cellcom made a tender offer for the issuance of
shares, of which DIC participated and acquired 50% of the issuance.
The amount received for the shares was of NIS 307 (approximately
Ps. 6,011 as of that date) and Cellcom issued a total amount of
30,600,000 ordinary shares, 7,038,000 share options (Series 3) and
6,426,000 share options (Series 4) for an amount of NIS 1.021 per
unit (each unit will consist of 100 ordinary shares, 23 share
options Series 3 and 21 share options Series 4).
After
this transaction, DIC holds 46.2% of the issued capital and
approximately 48.5% of the voting rights of Cellcom (directly and
over agreements with other shareholders of Cellcom).
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
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
PBC distribution of dividends in kind, Purchase of Mehadrin shares
and acquisition of control
On
December 10, 2019 PBC distributed all its interest in Mehadrin as a
dividend in kind. As a result, DIC holds a direct interest in
Mehadrin of 31.4%. As of December 2019, Mehadrin is classified as
an associate.
During
January and February 2020, DIC acquired approximately 8.8% of
Mehadrin's issued share capital, for a total cost of NIS 39
(approximately Ps.676), so that Mehadrin's interest increased from
31.4% to approximately 40.6%.These acquisitions resulted in DIC
gaining control of Mehadrin at the end of February, since it has a
majority of votes due to the fact that the remaining interest is
atomized in several shareholders.
As a
result of obtaining the aforementioned control, as of March 31,
2020, the Group has consolidated the operations of this
company.
The
assets incorporated and the result generated by said transaction
are detailed below. The Group is still completing the process of
determining the fair value of the assets incorporated, estimating
to complete it at the end of the annual fiscal year of June 30,
2020:
|
|
03.31.2020
|
|
Fair value of identifiable assets and assumed
liabilities:
|
|
|
Investment properties
|
232
|
|
Property, plant and equipment
|
6,385
|
|
Intangible assets
|
54
|
|
Investments in associates and joint ventures
|
1,783
|
|
Restricted assets
|
156
|
|
Income tax and MPIT credit
|
139
|
|
Trade and other receivables
|
9,101
|
|
Right-of-use assets
|
3,814
|
|
Derivative financial instruments
|
35
|
|
Inventories
|
2,375
|
|
Borrowings
|
(6,987)
|
|
Deferred income tax liabilities
|
(963)
|
|
Trade and other payables
|
(4,404)
|
|
Lease liabilities
|
(2,011)
|
|
Provisions
|
(54)
|
|
Employee benefits
|
(121)
|
|
Salaries and social security liabilities
|
(191)
|
|
Income tax and MPIT liabilities
|
(17)
|
|
Cash and cash equivalents
|
2,479
|
|
Total identifiable net assets
|
11,805
|
|
Non-controlling interest
|
(7,063)
|
|
Bargain purchase gain(*)
|
(357)
|
|
Previously held interest
|
3,709
|
|
Cash and cash equivalents
|
676
|
|
Total consideration
|
4,385
|
(*)
Included in "Other operating results, net"
Agreement for the sale of Ispro
On
January 26, 2020, PBC entered into an agreement for the sale of all
its holdings in ISPRO and the rights under the shareholders’
loans provided to ISPRO, for an amount of NIS 885. Completion of
the transaction was subject to receipt of approval from the
Commissioner for Competition, which should be received within 150
days of the signature of the agreement.
At the
signing date of the agreement the buyer deposited NIS 15 million in
a trust account, and committed to deposit additional NIS 40 million
after completion of the due diligence.
On
March 23, 2020, the purchaser approached PBC with a request to
postpone deadlines set in the agreement, and PBC informed that it
would review its application and all without violating PBC’s
rights and claims under the agreement. On March 26, 2020, when the
due diligence ended, the purchaser breached its commitment to
deposit the second deposit in the amount of NIS 40 million in a
trust account.
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
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
PBC
required the purchaser to correct the breach and immediately
deposit the amount of the second deposit and move forward to
complete the transaction under its terms, without derogating from
all its rights and claims and remedies it has against the purchaser
pursuant to the agreement and the law, until April 20, 2020. The
breach was not amended as of April 20, 2020, so the agreement was
canceled.
On
April, 2020, PBC entered into an agreement with another purchaser
for the sale of all its holdings in ISPRO for NIS 800 and the
rights under the shareholders’ loans provided to ISPRO. As a
result of this agreement the Group has reclassified the total net
assets of Ps. 14,684 as “Group of assets available for
sale”. The net result that will be recorded at the closing of
the sale is NIS 47 (equivalent to Ps. 799 as of the end of the
period).
Cellcom - Golan Telecom Agreement
In
February 2020, Cellcom, the shareholders of Golan Telecom and Golan
Telecom engaged in a binding memorandum of understanding regarding
the acquisition of the entire issued share capital of Golan
Telecom, for a total of NIS 590 million, to be paid in cash, in two
payments: a total of NIS 413 million on the closing date of the
transaction, and a total of NIS 177 million within 3 years after
the closing date of the transaction. Cellcom will issue and deposit
8.2 million shares of the company with a trustee (the “Shares
in Escrow”).
The
transaction includes standard conditions and representations, and
is subject to the completion of due diligence by Cellcom and the
receipt of regulatory approvals and approvals from material third
parties. The parties will negotiate regarding a detailed agreement;
however, they are bound by the memorandum of understanding,
regardless of whether or not the agreement is signed. In case the
conditions for closing the transaction have not been fulfilled by
December 31, 2020, the memorandum of understanding, or the detailed
agreement, as applicable, will expire.
There
is no certainty the conditions for the completion of the
transaction will be fulfilled, including the receipt of the
required approvals.
5.
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, 2019 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 34. 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 34.
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 4.(l) to the Annual Financial
Statements, the Group lost control of Gav-Yam as of June 30, 2019
and has reclassified its results to discontinued operations.
Segment information for the period ended March 31, 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 March
31, 2020 and 2019:
Véase nuestro informe de fecha 09/11/18
RHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
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 March 31, 2020:
|
|
|
03.31.20
|
|
|
|
|
|
Urban Properties and Investment business (II)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural business (I)
|
|
Operations Center in Argentina
|
|
Operations Center in Israel
|
|
Subtotal
|
|
Total segment information
|
|
Joint ventures (i)
|
|
Adjustments (ii)
|
|
Elimination of inter-segment transactions and non-reportable
assets / liabilities (iii)
|
|
Total Statement of Income / Financial Position
|
|
Revenues
|
|
18,504
|
|
9,762
|
|
57,387
|
|
67,149
|
|
85,653
|
|
(54)
|
|
2,482
|
|
(619)
|
|
87,462
|
|
Costs
|
|
(15,544)
|
|
(2,158)
|
|
(39,144)
|
|
(41,302)
|
|
(56,846)
|
|
36
|
|
(2,580)
|
|
380
|
|
(59,010)
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
|
2,523
|
|
-
|
|
-
|
|
-
|
|
2,523
|
|
-
|
|
-
|
|
178
|
|
2,701
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
|
352
|
|
-
|
|
-
|
|
-
|
|
352
|
|
-
|
|
-
|
|
-
|
|
352
|
|
Gross profit
|
|
5,835
|
|
7,604
|
|
18,243
|
|
25,847
|
|
31,682
|
|
(18)
|
|
(98)
|
|
(61)
|
|
31,505
|
|
Gain
from disposal of farmlands
|
|
323
|
|
-
|
|
-
|
|
-
|
|
323
|
|
-
|
|
-
|
|
-
|
|
323
|
|
Net
gain / (loss) from fair value adjustment of investment
properties
|
|
12
|
|
2,445
|
|
(2,585)
|
|
(140)
|
|
(128)
|
|
(255)
|
|
-
|
|
-
|
|
(383)
|
|
General
and administrative expenses
|
|
(1,020)
|
|
(1,624)
|
|
(6,156)
|
|
(7,780)
|
|
(8,800)
|
|
13
|
|
-
|
|
35
|
|
(8,752)
|
|
Selling
expenses
|
|
(1,862)
|
|
(850)
|
|
(9,010)
|
|
(9,860)
|
|
(11,722)
|
|
14
|
|
-
|
|
16
|
|
(11,692)
|
|
Impairment
of associates
|
|
-
|
|
-
|
|
(2,344)
|
|
(2,344)
|
|
(2,344)
|
|
-
|
|
-
|
|
-
|
|
(2,344)
|
|
Other
operating results, net
|
|
1,141
|
|
(33)
|
|
1,475
|
|
1,442
|
|
2,583
|
|
19
|
|
23
|
|
1
|
|
2,626
|
|
Profit / (Loss) from operations
|
|
4,429
|
|
7,542
|
|
(377)
|
|
7,165
|
|
11,594
|
|
(227)
|
|
(75)
|
|
(9)
|
|
11,283
|
|
Share
profit of associates and joint ventures
|
|
173
|
|
265
|
|
722
|
|
987
|
|
1,160
|
|
160
|
|
-
|
|
(13)
|
|
1,307
|
|
Segment profit
|
|
4,602
|
|
7,807
|
|
345
|
|
8,152
|
|
12,754
|
|
(67)
|
|
(75)
|
|
(22)
|
|
12,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
assets
|
|
34,942
|
|
110,695
|
|
392,585
|
|
503,280
|
|
538,222
|
|
(651)
|
|
-
|
|
38,923
|
|
576,494
|
|
Reportable
liabilities
|
|
-
|
|
-
|
|
(349,712)
|
|
(349,712)
|
|
(349,712)
|
|
-
|
|
-
|
|
(142,762)
|
|
(492,474)
|
|
Net reportable assets
|
|
34,942
|
|
110,695
|
|
42,873
|
|
153,568
|
|
188,510
|
|
(651)
|
|
-
|
|
(103,839)
|
|
84,020
|
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
18
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 March 31, 2019:
|
|
|
03.31.19
|
|
|
|
|
|
|
Urban Properties and Investment business (II)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural business (I)
|
|
Operations Center in Argentina
|
|
Operations Center in Israel
|
|
Subtotal
|
|
Total segment information
|
|
Joint ventures (i)
|
|
Adjustments (ii)
|
|
Elimination of inter-segment transactions and non-reportable
assets / liabilities (iii)
|
|
Total Statement of Income / Financial Position
|
|
Revenues
|
|
11,667
|
|
11,175
|
|
52,420
|
|
63,595
|
|
75,262
|
|
(67)
|
|
2,673
|
|
(425)
|
|
77,443
|
|
Costs
|
|
(9,787)
|
|
(2,215)
|
|
(37,257)
|
|
(39,472)
|
|
(49,259)
|
|
46
|
|
(2,791)
|
|
160
|
|
(51,844)
|
|
Initial recognition and changes in the fair value of biological
assets and agricultural products at the point of
harvest
|
|
1,419
|
|
-
|
|
-
|
|
-
|
|
1,419
|
|
-
|
|
-
|
|
237
|
|
1,656
|
|
Changes in the net realizable value of agricultural products after
harvest
|
|
12
|
|
-
|
|
-
|
|
-
|
|
12
|
|
-
|
|
-
|
|
-
|
|
12
|
|
Gross profit
|
|
3,311
|
|
8,960
|
|
15,163
|
|
24,123
|
|
27,434
|
|
(21)
|
|
(118)
|
|
(28)
|
|
27,267
|
|
Net
(loss) / profit from fair value adjustment of investment
properties
|
|
(33)
|
|
(8,751)
|
|
386
|
|
(8,365)
|
|
(8,398)
|
|
(92)
|
|
-
|
|
-
|
|
(8,490)
|
|
Gain from disposal of farmlands
|
|
87
|
|
-
|
|
-
|
|
-
|
|
87
|
|
-
|
|
-
|
|
-
|
|
87
|
|
General and administrative expenses
|
|
(982)
|
|
(1,938)
|
|
(5,882)
|
|
(7,820)
|
|
(8,802)
|
|
13
|
|
-
|
|
24
|
|
(8,765)
|
|
Selling expenses
|
|
(1,120)
|
|
(772)
|
|
(8,025)
|
|
(8,797)
|
|
(9,917)
|
|
4
|
|
-
|
|
4
|
|
(9,909)
|
|
Other operating results, net
|
|
442
|
|
(604)
|
|
808
|
|
204
|
|
646
|
|
173
|
|
18
|
|
(4)
|
|
833
|
|
Profit / (Loss) from operations
|
|
1,705
|
|
(3,105)
|
|
2,450
|
|
(655)
|
|
1,050
|
|
77
|
|
(100)
|
|
(4)
|
|
1,023
|
|
Share profit / (loss) of associates and joint
ventures
|
|
11
|
|
(1,294)
|
|
(560)
|
|
(1,854)
|
|
(1,843)
|
|
(98)
|
|
-
|
|
-
|
|
(1,941)
|
|
Segment profit / (loss)
|
|
1,716
|
|
(4,399)
|
|
1,890
|
|
(2,509)
|
|
(793)
|
|
(21)
|
|
(100)
|
|
(4)
|
|
(918)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable assets
|
|
35,171
|
|
137,617
|
|
560,385
|
|
698,002
|
|
733,173
|
|
(589)
|
|
-
|
|
44,262
|
|
776,846
|
|
Reportable liabilities
|
|
-
|
|
-
|
|
(486,098)
|
|
(486,098)
|
|
(486,098)
|
|
-
|
|
-
|
|
(135,316)
|
|
(621,414)
|
|
Net reportable assets
|
|
35,171
|
|
137,617
|
|
74,287
|
|
211,904
|
|
247,075
|
|
(589)
|
|
-
|
|
(91,054)
|
|
155,432
|
(i)
Represents the
equity value of joint ventures that were proportionately
consolidated for information by segment purposes.
(ii)
Includes Ps. (98)
and Ps. (118) corresponding to Expenses and FPC as of March 31,
2020 and 2019, respectively.
(iii)
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. 8,483 as of March 31, 2020.
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
19
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:
|
|
|
03.31.20
|
|
|
|
Agricultural production
|
|
Land transformation and sales
|
|
Corporate
|
|
Others
|
|
Total Agricultural business
|
|
Revenues
|
|
11,718
|
|
-
|
|
-
|
|
6,786
|
|
18,504
|
|
Costs
|
|
(9,855)
|
|
(19)
|
|
-
|
|
(5,670)
|
|
(15,544)
|
|
Initial
recognition and changes in the fair value of biological assets and
agricultural products at the point of harvest
|
|
2,500
|
|
-
|
|
-
|
|
23
|
|
2,523
|
|
Changes
in the net realizable value of agricultural products after
harvest
|
|
352
|
|
-
|
|
-
|
|
-
|
|
352
|
|
Gross profit / (loss)
|
|
4,715
|
|
(19)
|
|
-
|
|
1,139
|
|
5,835
|
|
Gain from disposal of farmlands
|
|
-
|
|
323
|
|
-
|
|
-
|
|
323
|
|
Net
gain from fair value adjustment of investment
properties
|
|
-
|
|
12
|
|
-
|
|
-
|
|
12
|
|
General
and administrative expenses
|
|
(655)
|
|
(2)
|
|
(153)
|
|
(210)
|
|
(1,020)
|
|
Selling
expenses
|
|
(1,272)
|
|
-
|
|
-
|
|
(590)
|
|
(1,862)
|
|
Other
operating results, net
|
|
110
|
|
883
|
|
-
|
|
148
|
|
1,141
|
|
Profit / (loss) from operations
|
|
2,898
|
|
1,197
|
|
(153)
|
|
487
|
|
4,429
|
|
Share
of profit of associates and joint ventures
|
|
62
|
|
-
|
|
-
|
|
111
|
|
173
|
|
Segment profit / (loss)
|
|
2,960
|
|
1,197
|
|
(153)
|
|
598
|
|
4,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
properties
|
|
3,269
|
|
-
|
|
-
|
|
-
|
|
3,269
|
|
Property,
plant and equipment
|
|
19,877
|
|
171
|
|
-
|
|
699
|
|
20,747
|
|
Investments
in associates
|
|
409
|
|
-
|
|
-
|
|
293
|
|
702
|
|
Other
reportable assets
|
|
8,106
|
|
313
|
|
-
|
|
1,805
|
|
10,224
|
|
Reportable assets
|
|
31,661
|
|
484
|
|
-
|
|
2,797
|
|
34,942
|
|
|
|
03.31.19
|
|
|
|
Agricultural production
|
|
Land transformation and sales
|
|
Corporate
|
|
Others
|
|
Total Agricultural business
|
|
Revenues
|
|
6,177
|
|
-
|
|
-
|
|
5,490
|
|
11,667
|
|
Costs
|
|
(5,248)
|
|
(24)
|
|
-
|
|
(4,515)
|
|
(9,787)
|
|
Initial recognition and changes in the fair value of biological
assets and agricultural products at the point of
harvest
|
|
1,423
|
|
-
|
|
-
|
|
(4)
|
|
1,419
|
|
Changes in the net realizable value of agricultural products after
harvest
|
|
12
|
|
-
|
|
-
|
|
-
|
|
12
|
|
Gross profit / (loss)
|
|
2,364
|
|
(24)
|
|
-
|
|
971
|
|
3,311
|
|
Net
gain from fair value adjustment of investment
properties
|
|
-
|
|
(33)
|
|
-
|
|
-
|
|
(33)
|
|
Gain from disposal of farmlands
|
|
-
|
|
87
|
|
-
|
|
-
|
|
87
|
|
General and administrative expenses
|
|
(598)
|
|
(1)
|
|
(172)
|
|
(211)
|
|
(982)
|
|
Selling expenses
|
|
(627)
|
|
(1)
|
|
-
|
|
(492)
|
|
(1,120)
|
|
Other operating results, net
|
|
443
|
|
(31)
|
|
-
|
|
30
|
|
442
|
|
Profit / (loss) from operations
|
|
1,582
|
|
(3)
|
|
(172)
|
|
298
|
|
1,705
|
|
Share
of profit of associates and joint ventures
|
|
43
|
|
-
|
|
-
|
|
(32)
|
|
11
|
|
Segment profit / (loss)
|
|
1,625
|
|
(3)
|
|
(172)
|
|
266
|
|
1,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment properties
|
|
2,423
|
|
-
|
|
-
|
|
-
|
|
2,423
|
|
Property, plant and equipment
|
|
20,548
|
|
70
|
|
-
|
|
722
|
|
21,340
|
|
Investments in associates
|
|
359
|
|
-
|
|
-
|
|
45
|
|
404
|
|
Other reportable assets
|
|
9,690
|
|
-
|
|
-
|
|
1,314
|
|
11,004
|
|
Reportable assets
|
|
33,020
|
|
70
|
|
-
|
|
2,081
|
|
35,171
|
(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:
|
|
|
03.31.20
|
|
|
|
Shopping Malls
|
|
Offices
|
|
Sales and developments
|
|
Hotels
|
|
International
|
|
Corporate
|
|
Others
|
|
Total
|
|
Revenues
|
|
5,345
|
|
1,730
|
|
683
|
|
1,928
|
|
7
|
|
-
|
|
69
|
|
9,762
|
|
Costs
|
|
(434)
|
|
(108)
|
|
(451)
|
|
(1,086)
|
|
(8)
|
|
-
|
|
(71)
|
|
(2,158)
|
|
Gross profit / (loss)
|
|
4,911
|
|
1,622
|
|
232
|
|
842
|
|
(1)
|
|
-
|
|
(2)
|
|
7,604
|
|
Net
(loss) / profit from fair value adjustment of investment properties
(i)
|
|
(3,711)
|
|
3,121
|
|
2,673
|
|
-
|
|
-
|
|
-
|
|
362
|
|
2,445
|
|
General and administrative expenses
|
|
(620)
|
|
(200)
|
|
(137)
|
|
(279)
|
|
(87)
|
|
(212)
|
|
(89)
|
|
(1,624)
|
|
Selling expenses
|
|
(405)
|
|
(66)
|
|
(168)
|
|
(203)
|
|
-
|
|
-
|
|
(8)
|
|
(850)
|
|
Other operating results, net
|
|
(47)
|
|
(28)
|
|
(16)
|
|
(11)
|
|
(1)
|
|
-
|
|
70
|
|
(33)
|
|
Profit / (Loss) from operations
|
|
128
|
|
4,449
|
|
2,584
|
|
349
|
|
(89)
|
|
(212)
|
|
333
|
|
7,542
|
|
Share
of profit / (loss) of associates and joint ventures
|
|
-
|
|
36
|
|
-
|
|
(7)
|
|
648
|
|
-
|
|
(412)
|
|
265
|
|
Segment profit / (loss)
|
|
128
|
|
4,485
|
|
2,584
|
|
342
|
|
559
|
|
(212)
|
|
(79)
|
|
7,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and trading properties
|
|
44,747
|
|
32,340
|
|
28,162
|
|
-
|
|
95
|
|
-
|
|
1,159
|
|
106,503
|
|
Property, plant and equipment
|
|
223
|
|
1,033
|
|
-
|
|
1,860
|
|
189
|
|
-
|
|
-
|
|
3,305
|
|
Investment in associates and joint ventures
|
|
-
|
|
-
|
|
499
|
|
-
|
|
(7,024)
|
|
-
|
|
6,308
|
|
(217)
|
|
Other reportable assets
|
|
104
|
|
116
|
|
769
|
|
29
|
|
-
|
|
-
|
|
86
|
|
1,104
|
|
Reportable assets
|
|
45,074
|
|
33,489
|
|
29,430
|
|
1,889
|
|
(6,740)
|
|
-
|
|
7,553
|
|
110,695
|
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
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
(i) For the nine-month period ended March 31, 2020, the net
gain from fair value adjustment of investment properties was Ps.
2,445. 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 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 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
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 were reclassified for shopping malls from “Net gain
from fair value adjustment” to “Inflation
Adjustment” in the Statement of Income and Other
Comprehensive Income.
The
value of our office buildings and other rental properties measured
in real terms increased by 11.9% during the nine-month period ended
as of March 31, 2020, due to a devaluation of the peso which
exceeded the period's inflation rate.
|
|
|
03.31.19
|
|
|
|
Shopping Malls
|
|
Offices
|
|
Sales and developments
|
|
Hotels
|
|
International
|
|
Corporate
|
|
Others
|
|
Total
|
|
Revenues
|
|
6,311
|
|
1,539
|
|
927
|
|
2,282
|
|
10
|
|
-
|
|
106
|
|
11,175
|
|
Costs
|
|
(517)
|
|
(67)
|
|
(377)
|
|
(1,140)
|
|
(4)
|
|
-
|
|
(110)
|
|
(2,215)
|
|
Gross profit / (loss)
|
|
5,794
|
|
1,472
|
|
550
|
|
1,142
|
|
6
|
|
-
|
|
(4)
|
|
8,960
|
|
Net
(loss) / profit from fair value adjustment of investment
properties
|
(15,130)
|
|
4,717
|
|
1,864
|
|
-
|
|
4
|
|
-
|
|
(206)
|
|
(8,751)
|
|
General and administrative expenses
|
|
(688)
|
|
(157)
|
|
(185)
|
|
(354)
|
|
(76)
|
|
(393)
|
|
(85)
|
|
(1,938)
|
|
Selling expenses
|
|
(426)
|
|
(70)
|
|
(36)
|
|
(228)
|
|
-
|
|
-
|
|
(12)
|
|
(772)
|
|
Other operating results, net
|
|
(59)
|
|
(22)
|
|
(200)
|
|
37
|
|
(19)
|
|
-
|
|
(341)
|
|
(604)
|
|
(Loss) / Profit from operations
|
|
(10,509)
|
|
5,940
|
|
1,993
|
|
597
|
|
(85)
|
|
(393)
|
|
(648)
|
|
(3,105)
|
|
Share
of loss of associates and joint ventures
|
|
-
|
|
-
|
|
(30)
|
|
-
|
|
(534)
|
|
-
|
|
(730)
|
|
(1,294)
|
|
Segment (loss) / profit
|
|
(10,509)
|
|
5,940
|
|
1,963
|
|
597
|
|
(619)
|
|
(393)
|
|
(1,378)
|
|
(4,399)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and trading properties
|
|
70,920
|
|
33,639
|
|
26,818
|
|
-
|
|
95
|
|
-
|
|
148
|
|
131,620
|
|
Property, plant and equipment
|
|
245
|
|
105
|
|
-
|
|
1,950
|
|
191
|
|
-
|
|
915
|
|
3,406
|
|
Investment in associates and joint ventures
|
|
-
|
|
-
|
|
396
|
|
-
|
|
(4,515)
|
|
-
|
|
6,202
|
|
2,083
|
|
Other reportable assets
|
|
109
|
|
115
|
|
173
|
|
24
|
|
-
|
|
-
|
|
87
|
|
508
|
|
Reportable assets
|
|
71,274
|
|
33,859
|
|
27,387
|
|
1,974
|
|
(4,229)
|
|
-
|
|
7,352
|
|
137,617
|
Below
is a summarized analysis of the lines of business of Group’s
operations center in Israel:
|
|
|
03.31.20
|
|
|
|
|
Real Estate
|
|
Supermarkets
|
|
Telecommunications
|
|
Insurance
|
|
Corporate
|
|
Others
|
|
Total
|
|
Revenues
|
|
9,809
|
|
-
|
|
46,142
|
|
-
|
|
-
|
|
1,436
|
|
57,387
|
|
Costs
|
|
(4,942)
|
|
-
|
|
(33,775)
|
|
-
|
|
-
|
|
(427)
|
|
(39,144)
|
|
Gross profit / (loss)
|
|
4,867
|
|
-
|
|
12,367
|
|
-
|
|
-
|
|
1,009
|
|
18,243
|
|
Net
loss from fair value adjustment of investment
properties
|
|
(2,585)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,585)
|
|
General
and administrative expenses
|
|
(583)
|
|
-
|
|
(3,892)
|
|
-
|
|
(779)
|
|
(902)
|
|
(6,156)
|
|
Selling
expenses
|
|
(177)
|
|
-
|
|
(8,507)
|
|
-
|
|
-
|
|
(326)
|
|
(9,010)
|
|
Impairment of associates
|
|
(2,344)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,344)
|
|
Other
operating results, net
|
|
538
|
|
-
|
|
357
|
|
-
|
|
(46)
|
|
626
|
|
1,475
|
|
(Loss) / Profit from operations
|
|
(284)
|
|
-
|
|
325
|
|
-
|
|
(825)
|
|
407
|
|
(377)
|
|
Share
of profit / (loss) of associates and joint ventures
|
|
906
|
|
-
|
|
(166)
|
|
-
|
|
-
|
|
(18)
|
|
722
|
|
Segment profit / (loss)
|
|
622
|
|
-
|
|
159
|
|
-
|
|
(825)
|
|
389
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
assets
|
|
128,934
|
|
23,578
|
|
122,866
|
|
4,369
|
|
15,478
|
|
97,360
|
|
392,585
|
|
Reportable
liabilities
|
|
(123,525)
|
|
-
|
|
(93,688)
|
|
-
|
|
(95,930)
|
|
(36,569)
|
|
(349,712)
|
|
Net reportable assets
|
|
5,409
|
|
23,578
|
|
29,178
|
|
4,369
|
|
(80,452)
|
|
60,791
|
|
42,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.19
|
|
|
|
Real Estate
|
|
Supermarkets
|
|
Telecommunications
|
|
Insurance
|
|
Corporate
|
|
Others
|
|
Total
|
|
|
Revenues
|
|
10,510
|
|
-
|
|
40,234
|
|
-
|
|
-
|
|
1,676
|
|
52,420
|
|
|
Costs
|
|
(6,687)
|
|
-
|
|
(29,863)
|
|
-
|
|
-
|
|
(707)
|
|
(37,257)
|
|
|
Gross profit
|
|
3,823
|
|
-
|
|
10,371
|
|
-
|
|
-
|
|
969
|
|
15,163
|
|
|
Net
gain from fair value adjustment of investment
properties
|
|
386
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
386
|
|
|
General
and administrative expenses
|
|
(509)
|
|
-
|
|
(3,520)
|
|
-
|
|
(758)
|
|
(1,095)
|
|
(5,882)
|
|
|
Selling
expenses
|
|
(144)
|
|
-
|
|
(7,546)
|
|
-
|
|
-
|
|
(335)
|
|
(8,025)
|
|
|
Other
operating results, net
|
|
-
|
|
-
|
|
288
|
|
-
|
|
323
|
|
197
|
|
808
|
|
|
Profit / (Loss) from operations
|
|
3,556
|
|
-
|
|
(407)
|
|
-
|
|
(435)
|
|
(264)
|
|
2,450
|
|
|
Share
of (loss) / profit of associates and joint ventures
|
|
(399)
|
|
504
|
|
-
|
|
-
|
|
-
|
|
(665)
|
|
(560)
|
|
|
Segment profit / (loss)
|
|
3,157
|
|
504
|
|
(407)
|
|
-
|
|
(435)
|
|
(929)
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
assets
|
|
308,160
|
|
23,627
|
|
120,948
|
|
24,035
|
|
45,919
|
|
37,696
|
|
560,385
|
|
|
Reportable
liabilities
|
|
(239,335)
|
|
-
|
|
(95,324)
|
|
-
|
|
(133,277)
|
|
(18,162)
|
|
(486,098)
|
|
|
Net reportable assets
|
|
68,825
|
|
23,627
|
|
25,624
|
|
24,035
|
|
(87,358)
|
|
19,534
|
|
74,287
|
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
21
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
7.
Investments
in associates and joint ventures
Changes
in the Group’s investments in associates and joint ventures
for the nine-month period ended March 31, 2020 and for the year
ended June 30, 2019 were as follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Beginning of the period / year
|
|
34,365
|
|
50,049
|
|
Adjustments of previous years (IFRS 9 and IAS 28)
|
|
(1,927)
|
|
(145)
|
|
Issuance of capital and contributions
|
|
2,580
|
|
155
|
|
Capital reduction
|
|
(101)
|
|
(637)
|
|
Increase of interest in associates and joint ventures
|
|
3,189
|
|
662
|
|
Share of profit / (loss)
|
|
1,349
|
|
(6,753)
|
|
Other comprehensive income
|
|
(1,046)
|
|
-
|
|
Currency translation adjustment
|
|
(3,401)
|
|
(407)
|
|
Dividends (i)
|
|
(1,752)
|
|
(1,645)
|
|
Sale of associates
|
|
-
|
|
(6,811)
|
|
Deconsolidation (iii)
|
|
25,982
|
|
-
|
|
Reclassification to held-for-sale
|
|
(1,963)
|
|
-
|
|
Incorporation by business combination
|
|
1,783
|
|
-
|
|
Others
|
|
54
|
|
(103)
|
|
End of the period / year (ii)
|
|
59,112
|
|
34,365
|
(ii)
As of March 31,
2020, and June 30, 2019 includes Ps. (8,467) and (8,217) reflecting
interests in companies with negative equity, which were disclosed
in “Provisions” (see Note 20)
(iii)
Corresponde al
reconocimiento inicial de la inversión residual en Gav-Yam
luego de la pérdida de control. Ver Nota 4.
Below
is additional information about the Group’s investments in
associates and joint ventures:
|
Name of the entity
|
|
% ownership interest
|
|
Value of Group's interest in equity
|
|
Group's interest in comprehensive income / (loss)
|
|
|
03.31.20
|
|
06.30.19
|
|
03.31.20
|
|
06.30.19
|
|
03.31.20
|
|
03.31.19
|
|
|
Associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Lipstick (1)
|
|
49.96%
|
|
49.96%
|
|
(8,467)
|
|
(8,217)
|
|
(257)
|
|
(856)
|
|
|
BHSA
|
|
29.91%
|
|
29.91%
|
|
3,740
|
|
4,224
|
|
(486)
|
|
(790)
|
|
|
Condor
|
|
18.89%
|
|
18.89%
|
|
1,395
|
|
1,321
|
|
103
|
|
101
|
|
|
PBEL
|
|
45.00%
|
|
45.40%
|
|
-
|
|
1,879
|
|
-
|
|
178
|
|
|
Shufersal
|
|
26.02%
|
|
26.02%
|
|
23,578
|
|
21,840
|
|
1,887
|
|
2,100
|
|
|
Mehadrin
|
|
N/A
|
|
45.41%
|
|
-
|
|
4,598
|
|
-
|
|
-
|
|
|
Gav-Yam
|
|
34.90%
|
|
N/A
|
|
26,612
|
|
N/A
|
|
(4,185)
|
|
(171)
|
|
|
TGLT S.A.
|
|
30.50%
|
|
N/A
|
|
2,047
|
|
N/A
|
|
(17)
|
|
-
|
|
|
Quality
|
|
50.00%
|
|
50.00%
|
|
1,996
|
|
1,774
|
|
183
|
|
90
|
|
|
La Rural S.A.
|
|
50.00%
|
|
50.00%
|
|
179
|
|
96
|
|
83
|
|
79
|
|
|
Cresca S.A.
|
|
50.00%
|
|
50.00%
|
|
-
|
|
19
|
|
(1)
|
|
19
|
|
|
Other associates and joint ventures
|
|
-
|
|
-
|
|
8,032
|
|
6,831
|
|
638
|
|
(542)
|
|
|
Total associates and joint ventures
|
|
|
|
|
|
59,112
|
|
34,365
|
|
(2,052)
|
|
208
|
|
|
Name of the entity
|
|
Location of business / Country of incorporation
|
|
Main activity
|
|
Common shares 1 vote
|
|
Last financial statement issued
|
|
|
|
|
|
Share capital (nominal value)
|
|
Profit / (loss) for the period
|
|
Shareholders' equity
|
|
New Lipstick (1)
|
|
U.S.
|
|
Real estate
|
|
N/A
|
|
-
|
|
(*)
17
|
|
(*)
(198)
|
|
BHSA
|
|
Argentina
|
|
Financing
|
|
448,689,072
|
|
(***)
1,500
|
|
(***) (498)
|
|
(***)
12,955
|
|
Condor
|
|
U.S.
|
|
Hotel
|
|
2,245,100
|
|
(*)
232
|
|
(*)
(2)
|
|
(*)
86
|
|
PBEL
|
|
India
|
|
Real estate
|
|
(**)
1
|
|
(**)
(2)
|
|
(**)
-
|
|
(**)
3,254
|
|
Shufersal
|
|
Israel
|
|
Retail
|
|
123,917,650
|
|
(**)
242
|
|
(**)
220
|
|
(**)
1,834
|
|
Mehadrin
|
|
Israel
|
|
Agricultural
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Gav-Yam
|
|
Israel
|
|
Real estate
|
|
N/A
|
|
N/A
|
|
(**)
328
|
|
(**)
3,596
|
|
TGLT S.A.
|
|
Argentina
|
|
Real estate
|
|
279,502,813
|
|
925
|
|
(27)
|
|
5,958
|
|
Quality
|
|
Argentina
|
|
Real
estate
|
|
163,039,244
|
|
326
|
|
366
|
|
3,932
|
|
La Rural S.A.
|
|
Argentina
|
|
Organization
of events
|
|
714,498
|
|
1
|
|
175
|
|
273
|
(1)
In
March 2020, Metropolitan, a subsidiary of New Lipstick, received
the cancellation of its debt with the Royal Bank of Canada, without
any consideration. Said cancellation generated a positive result in
Metropolitan of US $ 40 (the Group having recorded a result of US $
20 according to the ownership of this investment). As of March 31,
after giving effect to the aforementioned gain, the net liability
exposure held by IRSA at the end of the period in said company is
2,538 (disclosed in liabilities and currency translation adjustment
reserve).
(2)
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
March 31, 2020 according to BCRA's standards.
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
22
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Changes
in the Group’s investment properties for the nine-month
period ended March 31, 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 03.31.20
|
|
Total as of 06.30.19
|
|
Fair value at the beginning of the period / year
|
|
2,499
|
|
277,443
|
|
27,054
|
|
10,732
|
|
200
|
|
317,928
|
|
345,125
|
|
Adjustments of previous years (IFRS 15)
|
|
-
|
|
405
|
|
-
|
|
-
|
|
-
|
|
405
|
|
-
|
|
Additions
|
|
-
|
|
1,156
|
|
-
|
|
2,338
|
|
1
|
|
3,495
|
|
11,019
|
|
Capitalized finance costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
221
|
|
Capitalized leasing costs
|
|
-
|
|
19
|
|
-
|
|
-
|
|
-
|
|
19
|
|
15
|
|
Amortization of capitalized
leasing costs (i)
|
|
-
|
|
(12)
|
|
-
|
|
-
|
|
-
|
|
(12)
|
|
(12)
|
|
Transfers
|
|
1,329
|
|
(21,247)
|
|
(1,704)
|
|
(597)
|
|
-
|
|
(22,219)
|
|
1,883
|
|
Incorporation by business
combination
|
|
-
|
|
232
|
|
-
|
|
-
|
|
-
|
|
232
|
|
-
|
|
Deconsolidation
|
|
-
|
|
(137,197)
|
|
(7,739)
|
|
(4,532)
|
|
-
|
|
(149,468)
|
|
-
|
|
Disposals
|
|
-
|
|
(11,664)
|
|
(369)
|
|
-
|
|
-
|
|
(12,033)
|
|
(5,502)
|
|
Currency translation adjustment
|
|
(571)
|
|
37,401
|
|
1,558
|
|
1,144
|
|
-
|
|
39,532
|
|
(2,793)
|
|
Net gain / (loss) from fair value adjustment
|
|
12
|
|
(2,856)
|
|
2,166
|
|
241
|
|
54
|
|
(383)
|
|
(32,028)
|
|
Fair value at the end of the period / year
|
|
3,269
|
|
143,680
|
|
20,966
|
|
9,326
|
|
255
|
|
177,496
|
|
317,928
|
(i)
Amortization
charges of capitalized leasing costs were included in
“Costs” in the Statements of Income (Note
25).
The
following amounts have been recognized in the Statements of
Income:
|
|
|
03.31.20
|
|
03.31.19
|
|
Rental and services income
|
|
15,743
|
|
16,493
|
|
Direct operating expenses
|
|
(5,696)
|
|
(5,721)
|
|
Development expenses
|
|
(70)
|
|
(4,110)
|
|
Net unrealized loss from fair value adjustment of investment
properties
|
|
(383)
|
|
(9,601)
|
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 March 31, 2020, considering the market
conditions existing at that date due to the pandemic described in
Note 30, incorporating the effect of the variation in the exchange
rate in other assets denominated in US Dollars.
9.
Property,
plant and equipment
Changes
in the Group’s property, plant and equipment for the
nine-month period ended March 31, 2020 and for the year ended June
30, 2019 were as follows:
|
|
|
Owner occupied farmland
|
|
Bearer plant
|
|
Buildings and facilities
|
|
Machinery and equipment
|
|
Communication networks
|
|
Others
|
|
Total as of 03.31.20
|
|
Total as of 06.30.19
|
|
Costs
|
|
19,453
|
|
1,877
|
|
12,600
|
|
2,450
|
|
86,657
|
|
12,228
|
|
135,265
|
|
126,906
|
|
Accumulated
depreciation
|
|
(1,960)
|
|
(549)
|
|
(6,928)
|
|
(1,613)
|
|
(66,162)
|
|
(6,706)
|
|
(83,918)
|
|
(77,489)
|
|
Net book amount at the beginning of the period / year
|
17,493
|
|
1,328
|
|
5,672
|
|
837
|
|
20,495
|
|
5,522
|
|
51,347
|
|
49,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments of previous years (IFRS 15)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,563
|
|
Additions
|
|
381
|
|
222
|
|
325
|
|
75
|
|
2,885
|
|
1,136
|
|
5,024
|
|
(481)
|
|
Disposals
|
|
(57)
|
|
-
|
|
(60)
|
|
(5)
|
|
(3,032)
|
|
(56)
|
|
(3,210)
|
|
-
|
|
Deconsolidation
|
|
-
|
|
-
|
|
(401)
|
|
(564)
|
|
-
|
|
(42)
|
|
(1,007)
|
|
-
|
|
Assets
incorporated by business combinations
|
|
7,105
|
|
-
|
|
1,783
|
|
375
|
|
-
|
|
315
|
|
9,578
|
|
-
|
|
Currency
translation adjustment
|
|
(1,166)
|
|
(198)
|
|
151
|
|
126
|
|
1,340
|
|
565
|
|
818
|
|
(1,261)
|
|
Transfers
|
|
(1,267)
|
|
(2)
|
|
(260)
|
|
(33)
|
|
357
|
|
(357)
|
|
(1,562)
|
|
1,538
|
|
Depreciation
charges (i)
|
|
(185)
|
|
(199)
|
|
(368)
|
|
(77)
|
|
(3,408)
|
|
(1,195)
|
|
(5,432)
|
|
(6,429)
|
|
Balances at the end of the period / year
|
|
22,304
|
|
1,151
|
|
6,842
|
|
734
|
|
18,637
|
|
5,888
|
|
55,556
|
|
51,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
23,909
|
|
1,739
|
|
11,337
|
|
2,403
|
|
86,459
|
|
10,952
|
|
136,799
|
|
135,265
|
|
Accumulated
depreciation
|
|
(1,605)
|
|
(588)
|
|
(4,495)
|
|
(1,669)
|
|
(67,822)
|
|
(5,064)
|
|
(81,243)
|
|
(83,918)
|
|
Net book amount at the end of the period / year
|
|
22,304
|
|
1,151
|
|
6,842
|
|
734
|
|
18,637
|
|
5,888
|
|
55,556
|
|
51,347
|
(i)
Amortization charge
was recognized in the amount of Ps. 4,185 under "Costs", in the
amount of Ps. 667 under "General and administrative expenses" and
Ps. 97 under "Selling expenses" as of March 31, 2020, in the
Statements of Income (Note 25) and Ps. 483 were capitalized as part
of the cost of the biological assets
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Changes
in the Group’s trading properties for the nine-month period
ended March 31, 2020 and for the year ended June 30, 2019 were as
follows:
|
|
|
Completed properties
|
|
Properties under development
|
|
Undeveloped sites
|
|
Total as of 03.31.20
|
|
Total as of 06.30.19
|
|
Beginning of the period / year
|
|
1,820
|
|
2,997
|
|
3,133
|
|
7,950
|
|
20,959
|
|
Adjustment previous periods (IFRS 15)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,901)
|
|
Additions
|
|
24
|
|
1,299
|
|
415
|
|
1,738
|
|
3,478
|
|
Capitalized
finance costs
|
|
-
|
|
93
|
|
-
|
|
93
|
|
16
|
|
Currency
translation adjustment
|
|
109
|
|
(8)
|
|
165
|
|
266
|
|
(1,281)
|
|
Transfers
|
|
171
|
|
(140)
|
|
(31)
|
|
-
|
|
50
|
|
Impairment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(43)
|
|
Deconsolidation
|
|
-
|
|
(147)
|
|
-
|
|
(147)
|
|
-
|
|
Disposals
|
|
(943)
|
|
(2,651)
|
|
(52)
|
|
(3,646)
|
|
(7,328)
|
|
End of the period / year
|
|
1,181
|
|
1,443
|
|
3,630
|
|
6,254
|
|
7,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
4,319
|
|
7,454
|
|
Current
|
|
|
|
|
|
|
|
1,935
|
|
496
|
|
Total
|
|
|
|
|
|
|
|
6,254
|
|
7,950
|
Changes
in the Group’s intangible assets for the nine-month period
ended March 31, 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 03.31.20
|
|
Total as of 06.30.19
|
|
Costs
|
|
6,388
|
|
6,704
|
|
9,131
|
|
14,333
|
|
7,982
|
|
8,534
|
|
53,072
|
|
50,519
|
|
Accumulated
amortization
|
|
-
|
|
(519)
|
|
(6,946)
|
|
(11,342)
|
|
(4,325)
|
|
(5,249)
|
|
(28,381)
|
|
(23,951)
|
|
Net book amount at the beginning of the period / year
|
6,388
|
|
6,185
|
|
2,185
|
|
2,991
|
|
3,657
|
|
3,285
|
|
24,691
|
|
26,568
|
|
Additions
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,192
|
|
2,263
|
|
3,455
|
|
3,545
|
|
Disposals
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(113)
|
|
-
|
|
(113)
|
|
(58)
|
|
Deconsolidation
|
|
(3,092)
|
|
-
|
|
-
|
|
-
|
|
(21)
|
|
-
|
|
(3,113)
|
|
-
|
|
Transfers
|
|
1
|
|
-
|
|
-
|
|
-
|
|
13
|
|
-
|
|
14
|
|
-
|
|
Assets
incorporated by business combination
|
|
60
|
|
-
|
|
-
|
|
36
|
|
18
|
|
-
|
|
114
|
|
30
|
|
Currency
translation adjustment
|
|
1,882
|
|
433
|
|
143
|
|
170
|
|
245
|
|
200
|
|
3,073
|
|
(789)
|
|
Impairment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(175)
|
|
Amortization
charges (i)
|
|
-
|
|
(82)
|
|
(196)
|
|
(866)
|
|
(1,227)
|
|
(976)
|
|
(3,347)
|
|
(4,430)
|
|
Balances at the end of the period / year
|
|
5,239
|
|
6,536
|
|
2,132
|
|
2,331
|
|
3,764
|
|
4,772
|
|
24,774
|
|
24,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
5,239
|
|
7,177
|
|
9,622
|
|
20,552
|
|
6,732
|
|
11,294
|
|
60,616
|
|
53,072
|
|
Accumulated
amortization
|
|
-
|
|
(641)
|
|
(7,490)
|
|
(18,221)
|
|
(2,968)
|
|
(6,522)
|
|
(35,842)
|
|
(28,381)
|
|
Net book amount at the end of the period / year
|
|
5,239
|
|
6,536
|
|
2,132
|
|
2,331
|
|
3,764
|
|
4,772
|
|
24,774
|
|
24,691
|
(i)
Amortization charge
was recognized in the amount of Ps. 190 under "Costs", in the
amount of Ps. 1,157 under "General and administrative expenses" and
Ps. 2,000 under "Selling expenses" as of March 31, 2020 in the
Statements of Income (Note 25).
The
Group’s right-of-use assets as of March 31, 2020 and June 30,
2019 are the following:
|
|
|
03.31.20
|
|
06.30.19
|
|
Farmland
|
|
1,761
|
|
-
|
|
Offices,
shopping malls and other buildings
|
|
6,838
|
|
-
|
|
Communication
networks
|
|
9,865
|
|
-
|
|
Machinery
and equipment
|
|
40
|
|
-
|
|
Others
|
|
1,218
|
|
-
|
|
Right-of-use assets
|
|
19,722
|
|
-
|
|
|
|
|
|
|
|
Non-current
|
|
19,722
|
|
|
|
Total
|
|
19,722
|
|
|
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
depreciation charge of the right-of use-assets is detailed
below:
|
|
|
03.31.20
|
|
03.31.19
|
|
Farmland
|
|
56
|
|
-
|
|
Offices,
shopping malls and other buildings
|
|
397
|
|
-
|
|
Communication
networks
|
|
2,293
|
|
-
|
|
Others
|
|
646
|
|
-
|
|
Depreciation charge of right-of-use assets
|
|
3,392
|
|
-
|
Changes
in the Group’s biological assets and their allocation to the
fair value hierarchy nine-month period ended March 31, 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 03.31.20
|
|
Total as of 06.30.19
|
|
|
|
Level 1
|
|
Level 3
|
|
Level 3
|
|
Level 2
|
|
Level 2
|
|
Level 1
|
|
|
|
Net book amount at the beginning of the period / year
|
133
|
|
1,671
|
|
1,038
|
|
2,249
|
|
191
|
|
32
|
|
5,314
|
|
3,836
|
|
Purchases
|
|
-
|
|
-
|
|
-
|
|
164
|
|
104
|
|
-
|
|
268
|
|
446
|
|
Changes by transformation
|
|
(137)
|
|
137
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Initial recognition and changes in the fair value of biological
assets (i)
|
|
-
|
|
1,533
|
|
1,088
|
|
(11)
|
|
79
|
|
-
|
|
2,689
|
|
2,171
|
|
Decrease due to harvest
|
|
-
|
|
(4,885)
|
|
(2,572)
|
|
-
|
|
-
|
|
-
|
|
(7,457)
|
|
(9,275)
|
|
Sales
|
|
-
|
|
-
|
|
-
|
|
(1,027)
|
|
(1)
|
|
-
|
|
(1,028)
|
|
(674)
|
|
Consumes
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
(298)
|
|
(5)
|
|
(306)
|
|
(374)
|
|
Costs for the period /
year
|
|
227
|
|
5,519
|
|
1,678
|
|
741
|
|
-
|
|
5
|
|
8,170
|
|
9,243
|
|
Addition
|
|
-
|
|
70
|
|
-
|
|
-
|
|
-
|
|
-
|
|
70
|
|
-
|
|
Foreign exchange gain
|
|
(167)
|
|
(186)
|
|
(195)
|
|
(50)
|
|
-
|
|
-
|
|
(598)
|
|
(59)
|
|
Balances at the end of the period / year
|
|
56
|
|
3,859
|
|
1,037
|
|
2,063
|
|
75
|
|
32
|
|
7,122
|
|
5,314
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Non-current (Production)
|
|
-
|
|
-
|
|
-
|
|
1,519
|
|
20
|
|
32
|
|
1,571
|
|
1,713
|
|
Current (Consumable)
|
|
56
|
|
3,859
|
|
1,037
|
|
544
|
|
55
|
|
-
|
|
5,551
|
|
3,601
|
|
Net book amount at the end of the period / year
|
|
56
|
|
3,859
|
|
1,037
|
|
2,063
|
|
75
|
|
32
|
|
7,122
|
|
5,314
|
(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. (68) and Ps. 96 for the
nine-month periods ended March 31, 2020 and for the fiscal year
ended June 30, 2019, respectively; amounts of Ps. 121 and Ps. (90),
was attributable to price changes, and amounts of Ps. (53) and Ps.
186, was attributable to physical changes,
respectively.
During
the nine-month period ended March 31, 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. 137. 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. (7,468) and Ps. (9,291) for the
nine-month period ended March 31, 2020 and the year ended June 30,
2019, respectively.
See
information on valuation processes used by the entity in Note 13 to
the Annual Financial Statements.
As of
March 31, 2020, and June 30, 2019, the better and maximum use of
biological assets shall not significantly differ from the current
use.
Breakdown of
Group’s inventories as of March 31, 2020 and June 30, 2019
are as follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Crops
|
|
973
|
|
2,779
|
|
Materials
and supplies
|
|
1,544
|
|
1,315
|
|
Seeds
and fodders
|
|
-
|
|
285
|
|
Beef
|
|
232
|
|
141
|
|
Agricultural inventories
|
|
2,749
|
|
4,520
|
|
Telephones
and other communication equipment
|
|
1,349
|
|
1,556
|
|
Fruit
|
|
2,375
|
|
-
|
|
Total inventories
|
|
6,473
|
|
6,076
|
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 March 31, 2020 are as
follows:
|
|
|
Financial assets at amortized cost
|
|
Financial assets at fair value through profit or
loss
|
|
Subtotal financial assets
|
|
Non-financial assets
|
|
Total
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
|
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets as per Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other receivables (excluding the allowance for doubtful
accounts and other receivables) (Note 16)
|
|
54,730
|
|
-
|
|
-
|
|
-
|
|
54,730
|
|
13,779
|
|
68,509
|
|
Investment
in financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Public companies’ securities
|
|
-
|
|
519
|
|
210
|
|
-
|
|
729
|
|
-
|
|
729
|
|
-
Private companies’ securities
|
|
-
|
|
-
|
|
-
|
|
2,514
|
|
2,514
|
|
-
|
|
2,514
|
|
-
Deposits
|
|
972
|
|
52
|
|
-
|
|
-
|
|
1,024
|
|
-
|
|
1,024
|
|
-
Bonds
|
|
-
|
|
16,386
|
|
2,011
|
|
-
|
|
18,397
|
|
-
|
|
18,397
|
|
-
Mutual funds
|
|
-
|
|
9,637
|
|
-
|
|
-
|
|
9,637
|
|
-
|
|
9,637
|
|
-Others
|
|
-
|
|
2,020
|
|
612
|
|
356
|
|
2,988
|
|
-
|
|
2,988
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Crops options contracts
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
Crops futures contracts
|
|
-
|
|
163
|
|
-
|
|
-
|
|
163
|
|
-
|
|
163
|
|
-
Foreign-currency options contracts
|
|
-
|
|
45
|
|
-
|
|
-
|
|
45
|
|
-
|
|
45
|
|
-
Foreign-currency future contracts
|
|
-
|
|
10
|
|
37
|
|
-
|
|
47
|
|
-
|
|
47
|
|
-
Swaps
|
|
-
|
|
-
|
|
16
|
|
-
|
|
16
|
|
-
|
|
16
|
|
- Warrants
|
|
-
|
|
-
|
|
-
|
|
121
|
|
121
|
|
-
|
|
121
|
|
-
Others
|
|
52
|
|
-
|
|
17
|
|
-
|
|
69
|
|
-
|
|
69
|
|
Restricted
assets (i)
|
|
7,397
|
|
-
|
|
-
|
|
-
|
|
7,397
|
|
-
|
|
7,397
|
|
Financial
assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Clal
|
|
-
|
|
4,369
|
|
-
|
|
-
|
|
4,369
|
|
-
|
|
4,369
|
|
Cash
and cash equivalents (excluding bank overdrafts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Cash on hand and at bank
|
|
12,707
|
|
-
|
|
-
|
|
-
|
|
12,707
|
|
-
|
|
12,707
|
|
-
Short-term investments
|
|
44,677
|
|
3,005
|
|
-
|
|
-
|
|
47,682
|
|
-
|
|
47,682
|
|
Total assets
|
|
120,535
|
|
36,206
|
|
2,903
|
|
2,991
|
|
162,635
|
|
13,779
|
|
176,414
|
|
|
|
Financial liabilities at amortized cost
|
|
Financial liabilities at fair value through profit or
loss
|
|
Subtotal financial liabilities
|
|
Non-financial liabilities
|
|
Total
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
|
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities as per Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other payables (Note 18)
|
|
27,842
|
|
-
|
|
-
|
|
-
|
|
27,842
|
|
4,938
|
|
32,780
|
|
Borrowings
(excluding finance lease liabilities) (Note 21)
|
|
359,848
|
|
-
|
|
-
|
|
-
|
|
359,848
|
|
-
|
|
359,848
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Crops options contracts
|
|
-
|
|
49
|
|
-
|
|
-
|
|
49
|
|
-
|
|
49
|
|
-
Crops futures contracts
|
|
-
|
|
7
|
|
-
|
|
-
|
|
7
|
|
-
|
|
7
|
|
-
Foreign-currency options contracts
|
|
-
|
|
21
|
|
-
|
|
-
|
|
21
|
|
-
|
|
21
|
|
-
Foreign-currency contracts
|
|
-
|
|
94
|
|
52
|
|
-
|
|
146
|
|
-
|
|
146
|
|
-
Swaps
|
|
-
|
|
-
|
|
56
|
|
-
|
|
56
|
|
-
|
|
56
|
|
-
Forwards
|
|
-
|
|
-
|
|
35
|
|
-
|
|
35
|
|
-
|
|
35
|
|
-
Others
|
|
17
|
|
-
|
|
1,162
|
|
-
|
|
1,179
|
|
-
|
|
1,179
|
|
Total liabilities
|
|
387,707
|
|
171
|
|
1,305
|
|
-
|
|
389,183
|
|
4,938
|
|
394,121
|
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Financial assets
and financial liabilities as of June 30, 2019 were as
follows:
|
|
|
Financial assets at amortized cost (i)
|
|
Financial assets at fair value through profit or
loss
|
|
Subtotal financial assets
|
|
Non-financial assets
|
|
Total
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets as per Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other receivables (excluding the allowance for doubtful
accounts and other receivables) (Note 16)
|
|
46,825
|
|
-
|
|
-
|
|
-
|
|
46,825
|
|
12,847
|
|
59,672
|
|
Investment
in financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Equity securities in public companies
|
|
-
|
|
1,297
|
|
187
|
|
-
|
|
1,484
|
|
-
|
|
1,484
|
|
-
Equity securities in private companies
|
|
-
|
|
-
|
|
-
|
|
2,477
|
|
2,477
|
|
-
|
|
2,477
|
|
-
Deposits
|
|
5,031
|
|
48
|
|
-
|
|
-
|
|
5,079
|
|
-
|
|
5,079
|
|
-
Bonds
|
|
-
|
|
21,287
|
|
1,440
|
|
917
|
|
23,644
|
|
-
|
|
23,644
|
|
-
Mutual funds
|
|
-
|
|
9,764
|
|
-
|
|
-
|
|
9,764
|
|
-
|
|
9,764
|
|
-
Others
|
|
-
|
|
3,236
|
|
591
|
|
475
|
|
4,302
|
|
-
|
|
4,302
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Crops futures contracts
|
|
-
|
|
12
|
|
-
|
|
-
|
|
12
|
|
-
|
|
12
|
|
-
Swaps
|
|
-
|
|
-
|
|
15
|
|
-
|
|
15
|
|
-
|
|
15
|
|
- Warrants
|
|
-
|
|
-
|
|
-
|
|
129
|
|
129
|
|
-
|
|
129
|
|
-
Crops options contracts
|
|
-
|
|
43
|
|
-
|
|
-
|
|
43
|
|
-
|
|
43
|
|
-
Foreign-currency options contracts
|
|
-
|
|
41
|
|
-
|
|
-
|
|
41
|
|
-
|
|
41
|
|
-
Foreign-currency future contracts
|
|
-
|
|
3
|
|
39
|
|
-
|
|
42
|
|
-
|
|
42
|
|
-
Others
|
|
-
|
|
-
|
|
16
|
|
-
|
|
16
|
|
-
|
|
16
|
|
Restricted
assets (ii)
|
|
10,256
|
|
-
|
|
-
|
|
-
|
|
10,256
|
|
-
|
|
10,256
|
|
Financial
assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Clal
|
|
-
|
|
21,483
|
|
-
|
|
-
|
|
21,483
|
|
-
|
|
21,483
|
|
Cash
and cash equivalents (excluding bank overdrafts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Cash on hand and at bank
|
|
9,625
|
|
-
|
|
-
|
|
-
|
|
9,625
|
|
-
|
|
9,625
|
|
-
Short-term investments
|
|
71,054
|
|
4,070
|
|
-
|
|
-
|
|
75,124
|
|
-
|
|
75,124
|
|
Total assets
|
|
142,791
|
|
61,284
|
|
2,288
|
|
3,998
|
|
210,361
|
|
12,847
|
|
223,208
|
|
|
|
Financial liabilities at amortized cost
|
|
Financial liabilities at fair value through profit or
loss
|
|
Subtotal financial liabilities
|
|
Non-financial liabilities
|
|
Total
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities as per Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other payables (Note 18)
|
|
25,095
|
|
-
|
|
-
|
|
-
|
|
25,095
|
|
8,243
|
|
33,338
|
|
Borrowings
(excluding finance lease liabilities) (Note 21)
|
|
453,428
|
|
-
|
|
-
|
|
-
|
|
453,428
|
|
-
|
|
453,428
|
|
Derivative
financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Crops futures contracts
|
|
-
|
|
98
|
|
-
|
|
-
|
|
98
|
|
-
|
|
98
|
|
-
Foreign-currency contracts
|
|
-
|
|
34
|
|
-
|
|
-
|
|
34
|
|
-
|
|
34
|
|
-
Crops options contracts
|
|
-
|
|
84
|
|
-
|
|
-
|
|
84
|
|
-
|
|
84
|
|
-
Swaps
|
|
-
|
|
-
|
|
182
|
|
-
|
|
182
|
|
-
|
|
182
|
|
-
Others
|
|
-
|
|
-
|
|
1,182
|
|
65
|
|
1,247
|
|
-
|
|
1,247
|
|
Total liabilities
|
|
478,523
|
|
216
|
|
1,364
|
|
65
|
|
480,168
|
|
8,243
|
|
488,411
|
(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 21). 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, 2019, except for what is mentioned in Note 34.
As of
March 31, 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.
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
note
|
|
Theoretical price
|
|
Acquisition
agreement.
|
|
Level 2
|
|
-
|
|
Investments
in financial assets - Other private companies’
securities
|
|
Cash flow / NAV - Theoretical price
|
|
Projected revenue
discounted at the discount rate /
The
value is calculated in accordance with shares in the equity funds
on the basis of their Financial Statements, based on fair value or
investments assessments.
|
|
Level
3
|
|
1 -
3.5
|
|
Investments
in financial assets - Others
|
|
Discounted cash flow - Theoretical price
|
|
Projected revenue
discounted at the discount rate /
The
value is calculated in accordance with shares in the equity funds
on the basis of their Financial Statements, based on fair value or
investment assessments.
|
|
Level
3
|
|
1 -
3.5
|
|
Derivative
financial instruments – Forwards
|
|
Theoretical price
|
|
Underlying asset price and volatility
|
|
Level 2
and 3
|
|
-
|
The
following table presents the changes in Level 3 instruments as of
March 31, 2020 and June 30, 2019:
|
|
|
Derivative financial instruments – Others
|
|
Investments in financial assets - Private
companies
|
|
Investments in financial assets - Others
|
|
Derivative financial instruments –
Warrants
|
|
Total as of 03.31.20
|
|
Total as of 06.30.19
|
|
Balances at beginning of the period / year
|
|
(65)
|
|
2,477
|
|
1,392
|
|
129
|
|
3,933
|
|
4,374
|
|
Additions and acquisitions
|
|
-
|
|
16
|
|
-
|
|
-
|
|
16
|
|
163
|
|
Transfer to level 1
|
|
-
|
|
-
|
|
-
|
|
(4)
|
|
(4)
|
|
56
|
|
Currency translation adjustment
|
|
(5)
|
|
121
|
|
72
|
|
(23)
|
|
165
|
|
(71)
|
|
Write off
|
|
-
|
|
-
|
|
(917)
|
|
-
|
|
(917)
|
|
-
|
|
Gain / (loss) for the period / year (i)
|
|
70
|
|
(100)
|
|
(191)
|
|
19
|
|
(202)
|
|
(589)
|
|
Balances at the end of the period / year
|
|
-
|
|
2,514
|
|
356
|
|
121
|
|
2,991
|
|
3,933
|
(i) Included within
“Financial results, net” in the Statements of
Income.
16.
Trade
and other receivables
Group’s trade
and other receivables as of March 31, 2020 and June 30, 2019 are as
follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Trade,
leases and services receivable
|
|
41,351
|
|
40,609
|
|
Less:
allowance for doubtful accounts
|
|
(2,991)
|
|
(2,568)
|
|
Total trade receivables
|
|
38,360
|
|
38,041
|
|
Prepayments
|
|
10,904
|
|
8,031
|
|
Borrowings,
deposits and others
|
|
7,743
|
|
3,978
|
|
Guarantee
deposits
|
|
2
|
|
3
|
|
Tax
receivables
|
|
1,650
|
|
1,549
|
|
Others
|
|
6,859
|
|
5,502
|
|
Total other receivables
|
|
27,158
|
|
19,063
|
|
Total trade and other receivables
|
|
65,518
|
|
57,104
|
|
|
|
|
|
|
|
Non-current
|
|
24,710
|
|
20,616
|
|
Current
|
|
40,808
|
|
36,488
|
|
Total
|
|
65,518
|
|
57,104
|
|
|
|
|
|
|
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).
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Movements on the
Group’s allowance for doubtful accounts were as
follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Beginning of the period / year
|
|
2,568
|
|
1,766
|
|
Adjustments
previous periods (IFRS 9)
|
|
-
|
|
184
|
|
Additions
(i)
|
|
618
|
|
765
|
|
Recovery
(i)
|
|
(114)
|
|
(88)
|
|
Currency
translation adjustment
|
|
607
|
|
616
|
|
Deconsolidation
|
|
(19)
|
|
-
|
|
Receivables
written off during the period / year as uncollectable
|
|
(510)
|
|
(448)
|
|
Inflation
adjustment
|
|
(140)
|
|
(227)
|
|
Transfers
to assets held for sale
|
|
(19)
|
|
-
|
|
End of the period / year
|
|
2,991
|
|
2,568
|
(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 nine-month periods ended March 31, 2020 and
2019:
|
|
|
Note
|
|
03.31.20
|
|
03.31.19
|
|
Profit / (Loss) for the period
|
|
|
|
(7,421)
|
|
(14,523)
|
|
Profit from discontinued operations
|
|
|
|
(17,180)
|
|
(3,680)
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Income tax
|
|
22
|
|
3,302
|
|
(3,204)
|
|
Amortization and depreciation
|
|
25
|
|
11,716
|
|
7,945
|
|
(Gain) / Loss from disposal of property, plant and
equipment
|
|
|
|
-
|
|
(1)
|
|
Net (gain) / loss from fair value adjustment of investment
properties
|
|
|
|
383
|
|
8,490
|
|
Share-based compensation
|
|
|
|
133
|
|
47
|
|
Changes in the fair value of investments in financial
assets
|
|
|
|
(517)
|
|
-
|
|
Gain from business combinations
|
|
|
|
(1,615)
|
|
-
|
|
Gain from disposal of intangible assets
|
|
|
|
-
|
|
(13)
|
|
Gain from disposal of subsidiary and associates
|
|
|
|
-
|
|
(896)
|
|
Gain from disposal of trading properties
|
|
|
|
-
|
|
(572)
|
|
Impairment associates
|
|
|
|
2,344
|
|
301
|
|
Impairment of goodwill
|
|
|
|
-
|
|
175
|
|
Financial results, net
|
|
|
|
33,348
|
|
14,680
|
|
Provisions and allowances
|
|
|
|
636
|
|
1,170
|
|
Share of loss / (profit) of associates and joint
ventures
|
|
|
|
(1,307)
|
|
1,941
|
|
Loss from revaluation of receivables arising from the sale of
farmland
|
|
|
|
-
|
|
101
|
|
(Gain) / Loss from repurchase of Non-convertible Notes
|
|
|
|
1
|
|
(19)
|
|
Changes in net realizable value of agricultural products after
harvest
|
|
|
|
(352)
|
|
(12)
|
|
Unrealized initial recognition and changes in fair value of
biological assets and agricultural products at the point of
harvest
|
|
|
|
(3,331)
|
|
(1,959)
|
|
Unrealized gain from derivative financial instruments
|
|
|
|
(164)
|
|
(135)
|
|
Other operating results
|
|
|
|
28
|
|
3
|
|
Gain from disposal of farmlands
|
|
|
|
(323)
|
|
(87)
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Decrease / (Increase) in inventories
|
|
|
|
2,121
|
|
(537)
|
|
Decrease in trading properties
|
|
|
|
976
|
|
781
|
|
Decrease / (Increase) in biological assets
|
|
|
|
1,848
|
|
(759)
|
|
Increase in restricted assets
|
|
|
|
(1,038)
|
|
(193)
|
|
Decrease in trade and other receivables
|
|
|
|
8,608
|
|
1,934
|
|
Decrease in trade and other payables
|
|
|
|
(6,769)
|
|
(3,020)
|
|
Increase / (Decrease) in salaries and social security
liabilities
|
|
|
|
(473)
|
|
(434)
|
|
Decrease in provisions
|
|
|
|
(798)
|
|
(305)
|
|
Increase in lease liabilities
|
|
|
|
42
|
|
-
|
|
Net variation in derivative financial instruments
|
|
|
|
80
|
|
139
|
|
Decrease in right of use
|
|
|
|
(515)
|
|
-
|
|
Net cash generated by continuing operating activities before income
tax paid
|
|
|
|
23,763
|
|
7,358
|
|
Net cash generated by discontinued operating activities before
income tax paid
|
|
|
|
2,566
|
|
4,523
|
|
Net cash generated by operating activities before income tax
paid
|
|
|
|
26,329
|
|
11,881
|
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
following table presents a detail of significant non-cash
transactions occurred in the nine-month periods ended March 31,
2020 and 2019:
|
|
|
|
|
03.31.20
|
|
03.31.19
|
|
Dividends not collected
|
|
|
|
(54)
|
|
(4)
|
|
Distribution of dividends at non-controlling interest pending
payment
|
|
|
|
746
|
|
2,567
|
|
Distribution of dividends in shares
|
|
|
|
562
|
|
-
|
|
Increase in investment properties through an increase in
borrowings
|
|
|
|
-
|
|
34
|
|
Increase in investment properties through a decrease in financial
assets
|
|
|
|
596
|
|
-
|
|
Decrease in investment in associates and joint ventures through a
decrease in borrowings
|
|
|
|
20
|
|
-
|
|
Increase in property, plant and equipment through a decrease in
investment property
|
|
|
|
-
|
|
19
|
|
Increase in property, plant and equipment through an increase in
trade and other payables
|
|
|
|
871
|
|
1,385
|
|
Increase of properties for sale through an increase in
borrowings
|
|
|
|
94
|
|
99
|
|
Increase of trading properties for sale through a decrease in
investment properties
|
|
|
|
-
|
|
811
|
|
Increase in intangible assets through an increase in trade and
other payables
|
|
|
|
522
|
|
313
|
|
Increase in intangible assets through a decrease in trading
properties
|
|
|
|
-
|
|
1
|
|
Increase of rights of use through a decrease of property, plant and
equipment
|
|
|
|
1,271
|
|
-
|
|
Decrease in participation in subsidiaries, associates and joint
ventures due to transient conversion differences
|
|
|
|
(3,401)
|
|
(1,149)
|
|
Increase in investments in associates and joint ventures through a
decrease in borrowings
|
|
|
|
-
|
|
7
|
|
Increase in investments in associates and joint ventures through a
decrease in investments in financial assets
|
|
|
|
793
|
|
-
|
|
Increase in investments in associates and joint ventures from an
increase in trade and other payables
|
|
|
|
(5)
|
|
-
|
|
Increase in investment in associates and joint ventures through an
increase in trade and other receivables
|
|
|
|
-
|
|
1,097
|
|
Increase in investment in associates and joint ventures through a
decrease in equity
|
|
|
|
-
|
|
147
|
|
Increase in investments in financial assets through a decrease in
investments in associates and joint ventures
|
|
|
|
27
|
|
-
|
|
Increase in trade and other receivables through a decrease in
investments in associates and joint ventures
|
|
|
|
-
|
|
411
|
|
Increase in trade and other receivables through increased
investment in associates and joint ventures
|
|
|
|
-
|
|
7
|
|
Decrease in borrowings through a decrease in financial
assets
|
|
|
|
2,329
|
|
-
|
The following table
shows the incorporation of balances by business combination /
deconsolidation or reclassification to held for
sale:
|
|
|
|
|
03.31.20
|
|
Investment properties
|
|
|
|
(232)
|
|
Property, plant and equipment
|
|
|
|
(9,578)
|
|
Intangible assets
|
|
|
|
(54)
|
|
Investments in associates and joint ventures
|
|
|
|
(1,783)
|
|
Deferred income tax
|
|
|
|
(43)
|
|
Trade and other receivables
|
|
|
|
(9,468)
|
|
Income tax and MPIT credits
|
|
|
|
(139)
|
|
Right of use
|
|
|
|
(3,814)
|
|
Derivative financial instruments
|
|
|
|
(35)
|
|
Biological assets
|
|
|
|
(70)
|
|
Inventories
|
|
|
|
(2,396)
|
|
Restricted assets
|
|
|
|
(156)
|
|
Financial assets held for sale
|
|
|
|
(344)
|
|
Trade and other payables
|
|
|
|
4,686
|
|
Salaries and social security liabilities
|
|
|
|
232
|
|
Borrowings
|
|
|
|
8,775
|
|
Provisions
|
|
|
|
55
|
|
Income tax and MPIT liabilities
|
|
|
|
26
|
|
Deferred income tax liabilities
|
|
|
|
1,364
|
|
Lease liabilities
|
|
|
|
2,011
|
|
Employee benefits
|
|
|
|
121
|
|
Net amount of non-cash assets incorporated / held for
sale
|
|
|
|
(10,842)
|
|
Cash and cash
equivalents
|
|
|
|
5,961
|
|
Non-controlling interest
|
|
|
|
7,063
|
|
Bargain purchase
gain
|
|
|
|
(357)
|
|
Key pending
allocation
|
|
|
|
60
|
|
Net cash incorporated
|
|
|
|
1,885
|
18.
Trade
and other payables
Group’s trade
and other payables as of March 31, 2020 and June 30, 2019 were as
follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Trade
payables
|
|
19,798
|
|
18,669
|
|
Advances
from sales, leases and services
|
|
1,861
|
|
6,080
|
|
Construction
obligations
|
|
572
|
|
1,263
|
|
Accrued
invoices
|
|
1,218
|
|
1,618
|
|
Deferred
income
|
|
104
|
|
-
|
|
Admission
fees
|
|
1,104
|
|
-
|
|
Deposits
in guarantee
|
|
165
|
|
-
|
|
Total trade payables
|
|
24,822
|
|
27,630
|
|
Dividends
payable to non-controlling interests
|
|
746
|
|
540
|
|
Taxes
payable
|
|
1,193
|
|
1,286
|
|
Construction
provisions
|
|
-
|
|
1,377
|
|
Others
|
|
6,019
|
|
2,505
|
|
Total other payables
|
|
7,958
|
|
5,708
|
|
Total trade and other payables
|
|
32,780
|
|
33,338
|
|
|
|
|
|
|
|
Non-current
|
|
3,209
|
|
2,686
|
|
Current
|
|
29,571
|
|
30,652
|
|
Total
|
|
32,780
|
|
33,338
|
.P.C.E.C.A.B.A. T° 1 F° 17
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Shareholders’ meeting
On
October 30, 2019, the annual meeting of shareholders of Cresud was
held, which has approved: (i) absorb accumulated
losses as of June 30, 2019 with the special reserve and the special
reserve RG 609/12 and (ii) approve the distribution of up to
13,000,000 treasury shares ratably according to the
shareholders’ shareholding interests.
On the
other hand, resolved among other points, approve:
-
a stock capital
increase for up to a par value of Ps.180,000,000, through the
issuance of up to 180,000,000 common book-entry shares of Ps.1 par
value each and entitled to one vote per share, equivalent to 33.49%
of the current stock capital,
-
implementation of
incentive plan for employees, management and directors, without
issue premium, for up to 1% of the stock capital in effect as of
the time of execution of the plan.
-
Delegate to the
Board the implementation of the measures mentioned
above.
Buyback plan of Cresud shares
On
August 21, 2019, the Board of Directors of Cresud approved a new
repurchase of the securities issued by the Company and established
the terms and conditions for the acquisition of own shares issued
by the Company, under the terms of Article 64 of the Law Nº
26,831 and CNV regulations, for up to a maximum amount of Ps. 300
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 the shares of the Company have experienced,
jointly in the markets that it quotes, during the previous 90
business days, and a maximum of up to US $ 10.00 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 quotation at the
buyer's exchange rate of the Banco de la Nación Argentina in
force at the time of each purchase. Likewise, the repurchase term
was set, up to 120 days, beginning the day following the date of
publication of the information in the Daily Bulletin of the Buenos
Aires Stock Exchange.
As of
the date of issuance of these financial statements, the Company has
not repurchased shares through this plan.
The
table below shows the movements in the Group's provisions
categorized by type:
|
|
|
Legal claims (i)
|
|
Investments in associates and joint ventures
(ii)
|
|
Sited dismantling and remediation
|
|
Other provisions
|
|
Total as of 03.31.20
|
|
Total as of 06.30.19
|
|
Beginning of period / year
|
|
2,306
|
|
8,217
|
|
324
|
|
2,397
|
|
13,244
|
|
9,762
|
|
Additions
|
|
348
|
|
-
|
|
32
|
|
-
|
|
380
|
|
899
|
|
Transfers
|
|
(6)
|
|
-
|
|
-
|
|
-
|
|
(6)
|
|
-
|
|
Inflation adjustment
|
|
(66)
|
|
-
|
|
-
|
|
-
|
|
(66)
|
|
(100)
|
|
Recovery
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(106)
|
|
Share
of loss in associates and joint ventures
|
|
-
|
|
(689)
|
|
-
|
|
-
|
|
(689)
|
|
3,543
|
|
Incorporation by business
combination
|
|
54
|
|
-
|
|
-
|
|
-
|
|
54
|
|
-
|
|
Currency
translation adjustment
|
|
129
|
|
955
|
|
25
|
|
(44)
|
|
1,065
|
|
(418)
|
|
Used
during the period / year
|
|
(591)
|
|
-
|
|
-
|
|
(499)
|
|
(1,090)
|
|
(336)
|
|
End of period / year
|
|
2,174
|
|
8,483
|
|
381
|
|
1,854
|
|
12,892
|
|
13,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
10,800
|
|
10,893
|
|
Current
|
|
|
|
|
|
|
|
|
|
2,092
|
|
2,351
|
|
Total
|
|
|
|
|
|
|
|
|
|
12,892
|
|
13,244
|
(i)
Additions and
recovery are included in "Other operating results,
net".
(ii)
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 20
to the Annual Financial Statements.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
breakdown and fair value of the Group’s borrowings as of
March 31, 2020 and June 30, 2019 was as follows:
|
|
|
Book value
|
|
|
Fair value
|
|
|
|
03.31.20
|
|
06.30.19
|
|
|
03.31.20
|
|
06.30.19
|
|
NCN
|
|
286,939
|
|
375,377
|
|
|
272,690
|
|
369,813
|
|
Bank
loans
|
|
66,685
|
|
70,358
|
|
|
60,019
|
|
68,933
|
|
Bank
overdrafts
|
|
4,811
|
|
1,358
|
|
|
4,811
|
|
1,358
|
|
Other
borrowings (i)
|
|
1,413
|
|
6,335
|
|
|
1,413
|
|
8,764
|
|
Total borrowings (ii)
|
|
359,848
|
|
453,428
|
|
|
338,933
|
|
448,868
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
273,972
|
|
377,144
|
|
|
|
|
|
|
Current
|
|
85,876
|
|
76,284
|
|
|
|
|
|
|
Total
|
|
359,848
|
|
453,428
|
|
|
|
|
|
(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 March 31, 2020 and June 30, 2019,
respectively, corresponding to the Operations Center in
Israel.
The
following table describes the Group’s issuance of debt during
the present period:
|
Entity
|
Class
|
Issuance / expansion date
|
Amount in original currency
|
Maturity date
|
Interest rate
|
Principal payment
|
Interest payment
|
|
|
CRESUD
|
Class XXV
|
Jul-19
|
USD 59.5
|
07/03/2021
|
9.00% n.a
|
At maturity
|
biannual
|
|
|
CRESUD
|
Clase
XXVI
|
Jan-20
|
US$
18,2
|
01/30//2021
|
Bladar
+650pts
|
At maturity
|
quarterly
|
|
|
CRESUD
|
Clase
XXVII
|
Jan-20
|
US$
5,7
|
01/30//2021
|
7,45%
n.a.
|
At maturity
|
quarterly
|
|
|
CRESUD
|
Clase
XXVIII
|
Jan-20
|
US$
27,5
|
04/30//2021
|
9%
n.a.
|
At maturity
|
quarterly
|
|
|
IRSA
|
Class I 2nd
tranche
|
Aug-19
|
USD 85
|
11/15/2020
|
10.00%
e.a..
|
At maturity
|
quarterly
|
(1)
|
|
IRSA
|
Class II
|
Aug-19
|
CLP 31 (2)
|
08/06/2020
|
10.00%
e.a..
|
At maturity
|
quarterly
|
|
|
IDBD
|
Serie 15
|
Nov-19
|
NIS 237
|
06/30/2022
|
4.70% e.a.
|
2 payments
|
quarterly
|
|
(1)
Corresponds to an
expansion of the series.
(2)
Equivalent to USD
45 as of the issuance date.
The
details of the Group’s income tax, is as
follows:
|
|
|
03.31.20
|
|
03.31.19
|
|
Current income tax
|
|
(823)
|
|
(1,477)
|
|
Deferred income tax
|
|
(2,474)
|
|
4,607
|
|
Minimum Presumed Income Tax
|
|
(5)
|
|
74
|
|
Income tax from continuing operations
|
|
(3,302)
|
|
3,204
|
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 nine-month periods ended March 31, 2020
and 2019:
|
|
|
03.31.20
|
|
03.31.19
|
|
Tax calculated at the tax rates applicable to profits in the
respective countries
|
|
7,613
|
|
5,771
|
|
Permanent
differences:
|
|
|
|
|
|
Share of (loss) / profit of joint ventures and
associates
|
|
550
|
|
114
|
|
Tax rate differential
|
|
1,350
|
|
796
|
|
Taxable profit of non-argentinian holding subsidiaries
|
|
-
|
|
(412)
|
|
Provision for unrecoverability of tax loss carry-forwards /
Unrecognized tax loss carry-forwards
|
|
(5,000)
|
|
(2,461)
|
|
Changes in fair value of financial instruments
|
|
(1,598)
|
|
(298)
|
|
Non-taxable profit, non-deductible expenses and others
|
|
(2,334)
|
|
(460)
|
|
Tax inflation adjustment
|
|
(5,191)
|
|
-
|
|
Fiscal transparency
|
|
102
|
|
(46)
|
|
Inflation adjustment permanent difference
|
|
1,206
|
|
200
|
|
Income tax from continuing operations
|
|
(3,302)
|
|
3,204
|
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
gross movement in the deferred income tax account is as
follows:
|
|
|
03.31.20
|
|
06.30.19
|
|
Beginning of period / year
|
|
(53,541)
|
|
(54,427)
|
|
Deconsolidation
|
|
19,109
|
|
-
|
|
Use of tax loss carryforwards
|
|
(65)
|
|
-
|
|
Currency translation adjustment
|
|
(3,379)
|
|
1,781
|
|
Revaluation surplus
|
|
(21)
|
|
(956)
|
|
Reserve for changes of non-controlling interest
|
|
77
|
|
334
|
|
Charged to the Statement of Income
|
|
(2,474)
|
|
(273)
|
|
End of the period / year
|
|
(40,294)
|
|
(53,541)
|
|
|
|
|
|
|
|
Deferred income tax assets
|
|
674
|
|
734
|
|
Deferred income tax liabilities
|
|
(40,968)
|
|
(54,275)
|
|
Deferred income tax liabilities, net
|
|
(40,294)
|
|
(53,541)
|
Tax law modifications in Argentina
Law No.
27,541 of solidarity and production recovery, published on December
23, 2019 introduced certain amendments to different taxes and the
creation of the Tax for an Inclusive and Selfless Argentina
(PAIS).
The
main modifications affecting the Group in relation to income tax
are the following:
1)
In the first
and second fiscal year beginning after January 1, 2018 (namely, for
the Group’s fiscal years beginning on July 1, 2019 and 2020),
the gain or loss resulting from tax inflation adjustment will be
charged by one sixth in the determination exercise and the
remaining five sixths in the following fiscal years;
2)
The tax rate
applicable to companies for the third fiscal year beginning after
January 1, 2018 was increased from 25% to 30% (namely, for the
Group’s fiscal years beginning on July 1, 2019)
|
|
|
03.31.20
|
|
03.31.19
|
|
Beef
|
|
4,796
|
|
3,947
|
|
Crops
|
|
7,647
|
|
3,366
|
|
Sugarcane
|
|
2,487
|
|
1,810
|
|
Cattle
|
|
824
|
|
420
|
|
Supplies
|
|
719
|
|
509
|
|
Consignment
|
|
455
|
|
572
|
|
Advertising and brokerage fees
|
|
488
|
|
372
|
|
Agricultural rental and other services
|
|
344
|
|
142
|
|
Other
|
|
162
|
|
121
|
|
Income from sales and services from agricultural
business
|
|
17,922
|
|
11,259
|
|
Trading properties and developments
|
|
4,636
|
|
6,294
|
|
Communication services
|
|
34,482
|
|
30,366
|
|
Sale of communication equipment
|
|
11,661
|
|
9,751
|
|
Rental and services
|
|
15,399
|
|
16,351
|
|
Hotel operations, tourism services and others
|
|
3,362
|
|
3,422
|
|
Income from sales and services from urban properties and investment
business
|
|
69,540
|
|
66,184
|
|
Total revenues
|
|
87,462
|
|
77,443
|
|
|
|
03.31.20
|
|
03.31.19
|
|
Other operative costs
|
|
19
|
|
24
|
|
Cost of property operations
|
|
19
|
|
24
|
|
Beef
|
|
3,910
|
|
3,460
|
|
Crops
|
|
6,445
|
|
3,126
|
|
Sugarcane
|
|
2,198
|
|
1,453
|
|
Cattle
|
|
1,039
|
|
509
|
|
Supplies
|
|
607
|
|
356
|
|
Consignment
|
|
195
|
|
65
|
|
Advertising and brokerage fees
|
|
310
|
|
261
|
|
Agricultural rental and other services
|
|
442
|
|
374
|
|
Cost of sales and services from agricultural business
|
|
15,146
|
|
9,604
|
|
Trading properties and developments
|
|
3,618
|
|
5,144
|
|
Communication services
|
|
25,154
|
|
22,537
|
|
Sale of communication equipment
|
|
8,650
|
|
7,325
|
|
Rental and services
|
|
5,254
|
|
5,366
|
|
Hotel operations, tourism services and others
|
|
1,169
|
|
1,844
|
|
Cost of sales and services from sales and services from urban
properties and investment business
|
|
43,845
|
|
42,216
|
|
Total costs
|
|
59,010
|
|
51,844
|
.P.C.E.C.A.B.A. T° 1 F° 17
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
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 costs
|
|
Costs (i)
|
|
General and administrative expenses
|
|
Selling expenses
|
|
Total as of 03.31.20
|
|
Total as of 03.31.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sale of goods and services
|
|
-
|
|
12,555
|
|
-
|
|
-
|
|
12,555
|
|
12,667
|
|
Supplies
and labors
|
|
6,268
|
|
4,076
|
|
1
|
|
53
|
|
10,398
|
|
8,425
|
|
Change
in agricultural products and biological assets
|
|
-
|
|
7,996
|
|
-
|
|
-
|
|
7,996
|
|
4,350
|
|
Salaries,
social security costs and other personnel expenses
|
|
414
|
|
5,453
|
|
3,487
|
|
4,214
|
|
13,568
|
|
12,260
|
|
Depreciation
and amortization
|
|
833
|
|
7,232
|
|
2,159
|
|
2,325
|
|
12,549
|
|
8,290
|
|
Fees
and payments for services
|
|
15
|
|
3,649
|
|
1,379
|
|
87
|
|
5,130
|
|
6,816
|
|
Maintenance,
security, cleaning, repairs and others
|
|
55
|
|
3,474
|
|
462
|
|
302
|
|
4,293
|
|
4,196
|
|
Advertising
and other selling expenses
|
|
-
|
|
472
|
|
-
|
|
1,843
|
|
2,315
|
|
2,093
|
|
Taxes,
rates and contributions
|
|
32
|
|
514
|
|
85
|
|
992
|
|
1,623
|
|
1,465
|
|
Interaction
and roaming expenses
|
|
-
|
|
4,856
|
|
-
|
|
-
|
|
4,856
|
|
4,322
|
|
Fees to
other operators
|
|
-
|
|
7,054
|
|
-
|
|
-
|
|
7,054
|
|
6,136
|
|
Director's
fees
|
|
-
|
|
-
|
|
538
|
|
-
|
|
538
|
|
664
|
|
Leases
and service charges
|
|
5
|
|
103
|
|
25
|
|
15
|
|
148
|
|
451
|
|
Allowance
for doubtful accounts, net
|
|
-
|
|
83
|
|
-
|
|
504
|
|
587
|
|
618
|
|
Freights
|
|
57
|
|
47
|
|
-
|
|
904
|
|
1,008
|
|
437
|
|
Bank
expenses
|
|
-
|
|
8
|
|
67
|
|
1
|
|
76
|
|
130
|
|
Conditioning
and clearance
|
|
-
|
|
-
|
|
-
|
|
138
|
|
138
|
|
76
|
|
Travel,
library expenses and stationery
|
|
35
|
|
42
|
|
65
|
|
21
|
|
163
|
|
60
|
|
Other
expenses
|
|
526
|
|
1,396
|
|
484
|
|
293
|
|
2,699
|
|
3,038
|
|
Total as of 03.31.20
|
|
8,240
|
|
59,010
|
|
8,752
|
|
11,692
|
|
87,694
|
|
|
|
Total as of 03.31.19
|
|
5,976
|
|
51,844
|
|
8,765
|
|
9,909
|
|
-
|
|
76,494
|
(i)
Includes Ps. 19 and
Ps. 24 of other agricultural operating costs as of March 31, 2020
and 2019, respectively.
26.
Other
operating results, net
|
|
|
03.31.20
|
|
03.31.19
|
|
Gain from commodity derivative financial instruments
|
|
394
|
|
451
|
|
Gain from disposal of subsidiaries and associates (i)
|
|
357
|
|
902
|
|
Donations
|
|
(136)
|
|
(162)
|
|
Lawsuits and other contingencies
|
|
(101)
|
|
(56)
|
|
Interest earned on operating assets
|
|
1,222
|
|
311
|
|
Others (ii)
|
|
890
|
|
(613)
|
|
Total other operating results, net
|
|
2,626
|
|
833
|
(i)
As of March 31,
2019, includes the gain from the sale of the Group´s equity
interest in Cyber Secdo.
(ii)
As of March 31,
2020, includes a loss of Ps. 1,258 from the remeasurement of
Mehadrin while incorporating it as an associate, after it was
reclassified to assets held for sale and before the business
combination.
27.
Financial
results, net
|
|
|
03.31.20
|
|
03.31.19
|
|
Financial income
|
|
|
|
|
|
Interest income
|
|
707
|
|
869
|
|
Dividends income
|
|
122
|
|
74
|
|
Other financial income
|
|
72
|
|
491
|
|
Total financial income
|
|
901
|
|
1,434
|
|
Financial costs
|
|
|
|
|
|
Interest expenses
|
|
(18,186)
|
|
(16,730)
|
|
Other financial costs
|
|
(1,016)
|
|
(726)
|
|
Total financial costs
|
|
(19,202)
|
|
(17,456)
|
|
Capitalized finance costs
|
|
93
|
|
141
|
|
Total finance costs
|
|
(19,109)
|
|
(17,315)
|
|
Other financial results:
|
|
|
|
|
|
Foreign exchange, net
|
|
(8,320)
|
|
(4,683)
|
|
Fair value gains of financial assets and liabilities at fair value
through profit or loss (i)
|
|
(9,211)
|
|
-
|
|
Gain from repurchase of Non-convertible notes
|
|
2,738
|
|
21
|
|
(Loss) / Gain from derivative financial instruments (except
commodities)
|
|
(1,140)
|
|
411
|
|
Total other financial results
|
|
(15,933)
|
|
(4,251)
|
|
Inflation adjustment
|
|
252
|
|
(357)
|
|
Total financial results, net
|
|
(33,889)
|
|
(20,489)
|
(i)
Clal's loss for the
periods ended March 31, 2020 and 2019 amounts to Ps. 8,000 and Ps.
1,460 respectively.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
28.
Related
party transactions
The
following is a summary of the balances with related parties as of
March 31, 2020 and June 30, 2019:
|
Item
|
|
03.31.20
|
|
06.30.19
|
|
Trade and other receivables
|
|
1,804
|
|
1,651
|
|
Investments in financial assets
|
|
243
|
|
225
|
|
Trade and other payables
|
|
(132)
|
|
(331)
|
|
Borrowings
|
|
(79)
|
|
(71)
|
|
Total
|
|
1,836
|
|
1,474
|
|
Related party
|
|
03.31.20
|
|
06.30.19
|
|
Description of transaction
|
|
Rubro
|
|
Agro Uranga S.A.
|
|
-
|
|
12
|
|
Sale of goods and / or services receivable
|
|
Trade and other receivables
|
|
Condor
|
|
243
|
|
225
|
|
Public companies' securities
|
|
Investments in financial assets
|
|
|
|
-
|
|
20
|
|
Dividends receivable
|
|
Trade and other receivables
|
|
Cresca S.A.
|
|
(17)
|
|
-
|
|
Other liabilities
|
|
Trade and other payables
|
|
New Lipstick LLC
|
|
16
|
|
14
|
|
Reimbursement of expenses receivable
|
|
Trade and other receivables
|
|
|
|
(70)
|
|
(60)
|
|
Loans payable
|
|
Borrowings
|
|
|
|
1,355
|
|
1,194
|
|
Loans granted
|
|
Trade and other receivables
|
|
Other associates and joint ventures (i)
|
|
82
|
|
15
|
|
Leases and/or rights of use receivable
|
|
Trade and other receivables
|
|
|
|
203
|
|
-
|
|
Dividends receivables
|
|
Trade and other receivables
|
|
|
|
5
|
|
-
|
|
Management fees receivable
|
|
Trade and other receivables
|
|
|
|
-
|
|
1
|
|
Shared-based compensation receivable
|
|
Trade and other receivables
|
|
|
|
-
|
|
1
|
|
Loans granted
|
|
Trade and other receivables
|
|
|
|
(9)
|
|
(11)
|
|
Loans payable
|
|
Borrowings
|
|
|
|
105
|
|
11
|
|
Reimbursement of expenses receivable
|
|
Trade and other receivables
|
|
|
|
(11)
|
|
(5)
|
|
Reimbursement of expenses payable
|
|
Trade and other payables
|
|
Total
associates
and joint ventures
|
|
1,902
|
|
1,417
|
|
|
|
|
|
CAMSA and its subsidiaries
|
|
1
|
|
41
|
|
Reimbursement of expenses
receivable
|
|
Trade and other
payables
|
|
Taaman
|
|
-
|
|
(16)
|
|
Leases and/or rights of use receivable
|
|
Trade and other payables
|
|
Other related parties (ii)
|
|
-
|
|
(88)
|
|
Other liabilities
|
|
Trade and other payables
|
|
|
|
-
|
|
3
|
|
Other receivables
|
|
Trade and other receivables
|
|
|
|
-
|
|
33
|
|
Leases and/or rights of use receivable
|
|
Trade and other receivables
|
|
|
|
-
|
|
346
|
|
Dividends receivable
|
|
Trade and other receivables
|
|
|
|
4
|
|
-
|
|
Loans granted
|
|
Trade and other receivables
|
|
|
|
-
|
|
-
|
|
Reimbursement of expenses payable
|
|
Trade and other payables
|
|
|
|
34
|
|
1
|
|
Reimbursement of expenses receivable
|
|
Trade and other receivables
|
|
|
|
-
|
|
(3)
|
|
Legal services payable
|
|
Trade and other payables
|
|
|
|
(38)
|
|
-
|
|
Leases and/or rights of use receivable
|
|
Trade and other receivables
|
|
Total
other related
parties
|
|
1
|
|
317
|
|
|
|
|
|
Directors and Senior Management
|
|
(67)
|
|
(260)
|
|
Fees for services
received
|
|
Trade and other
payables
|
|
Total Directors and Senior Management
|
|
(67)
|
|
(260)
|
|
|
|
|
|
Total
|
|
1,836
|
|
1,474
|
|
|
|
|
(i)
Includes
Agrofy Global, Lipstick Management LLC, Mehadrin, Banco Hipotecario
S.A., Tarshop S.A., BACS, Puerto Retiro S.A., Austral Gold Ltd.,
Cyrsa S.A., Nuevo Puerto Santa Fe S.A.and Quality Invest
S.A.
(ii)
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
nine-month periods ended March 31, 2020 and 2019:
|
Related party
|
|
03.31.20
|
|
03.31.19
|
|
Description of transaction
|
|
Agrofy S.A.
|
|
-
|
|
1
|
|
Management fees / Directory
|
|
|
|
2
|
|
-
|
|
Income from sales and services from agricultural
business
|
|
|
|
7
|
|
-
|
|
Financial operations
|
|
BACS
|
|
41
|
|
24
|
|
Leases and/or rights of use
|
|
Other associates and joint ventures
|
|
7
|
|
33
|
|
Leases and/or rights of use
|
|
|
|
(124)
|
|
39
|
|
Corporate services
|
|
|
|
-
|
|
1
|
|
Comissions
|
|
|
|
32
|
|
10
|
|
Financial operations
|
|
Total associates and joint ventures
|
|
(35)
|
|
108
|
|
|
|
Other related parties (i)
|
|
4
|
|
34
|
|
Leases and/or rights of use
|
|
|
|
(20)
|
|
(10)
|
|
Fees and remunerations
|
|
|
|
-
|
|
4
|
|
Corporate services
|
|
|
|
-
|
|
(6)
|
|
Legal services
|
|
|
|
(18)
|
|
7
|
|
Financial operations
|
|
|
|
-
|
|
(12)
|
|
Comissions
|
|
|
|
-
|
|
1
|
|
Donations
|
|
Total other related parties
|
|
(34)
|
|
18
|
|
|
|
IFISA
|
|
4
|
|
-
|
|
Financial operations
|
|
Total Parent Company
|
|
4
|
|
-
|
|
|
|
Directors
|
|
(43)
|
|
(30)
|
|
Compensation of Directors and senior management
|
|
|
|
(328)
|
|
(378)
|
|
Fees and remunerations
|
|
Senior Management
|
|
(28)
|
|
(31)
|
|
Compensation of Directors and senior management
|
|
Total Directors and Senior Management
|
|
(399)
|
|
(439)
|
|
|
|
Total
|
|
(464)
|
|
(313)
|
|
|
(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.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
The
following is a summary of the transactions with related parties for
the nine-month periods ended March 31, 2020 and 2019:
|
Related party
|
|
03.31.20
|
|
03.31.19
|
|
Description of transaction
|
|
Agrofy Global
|
|
209
|
|
-
|
|
Irrevocable contributions
|
|
Uranga Trading S.A.
|
|
-
|
|
34
|
|
Irrevocable contributions
|
|
Quality
|
|
39
|
|
37
|
|
Irrevocable contributions
|
|
Ramat Hanassi
|
|
2,239
|
|
-
|
|
Capitalized borrowing
|
|
Manibil
|
|
83
|
|
-
|
|
Irrevocable contributions
|
|
Others
|
|
77
|
|
-
|
|
Irrevocable contributions
|
|
Total contributions
|
|
2,647
|
|
71
|
|
|
|
Agro-Uranga S.A.
|
|
23
|
|
18
|
|
Dividends received
|
|
Condor
|
|
26
|
|
92
|
|
Dividends received
|
|
Emco
|
|
16
|
|
704
|
|
Dividends received
|
|
La Rural S.A.
|
|
-
|
|
411
|
|
Dividends received
|
|
Manaman
|
|
-
|
|
101
|
|
Dividends received
|
|
Mehadrin
|
|
-
|
|
90
|
|
Dividends received
|
|
Millenium
|
|
1,266
|
|
-
|
|
Dividends received
|
|
Nuevo Puerto Santa Fe S.A.
|
|
36
|
|
15
|
|
Dividends received
|
|
Nave by the sea
|
|
-
|
|
46
|
|
Dividends received
|
|
Tourism & Recreation Holdings Ltd.
|
|
383
|
|
-
|
|
Dividends received
|
|
Total dividends received
|
|
1,750
|
|
1,477
|
|
|
|
Inversiones Financieras del Sur S.A.
|
|
2,064
|
|
-
|
|
Buy and change of shares
|
|
Total other transactions
|
|
2,064
|
|
-
|
|
|
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.
29.
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 20 - Provisions
|
|
Exhibit F - Cost of sales and services provided
|
|
Note 30 - Cost of sales and services provided
|
|
Exhibit G - Foreign currency assets and liabilities
|
|
Note 31 - Foreign currency assets and liabilities
|
30.
Cost
of goods sold and services provided
|
Description
|
|
Cost of sales and services from agricultural business
(i)
|
|
Cost of sales and services from sales and services from urban
properties and investment business (ii) (iii)
|
|
Total as of 03.31.20
|
|
Total as of 03.31.19
|
|
Inventories at the beginning of the period / year
|
|
6,799
|
|
9,507
|
|
16,306
|
|
28,114
|
|
Adjustment previous periods (IFRS 15 and 9)
|
|
-
|
|
-
|
|
-
|
|
(8,126)
|
|
Initial recognition and changes in the fair value of biological
assets and agricultural products at the point of
harvest
|
|
1,254
|
|
-
|
|
1,254
|
|
442
|
|
Changes in the net realizable value of agricultural products after
harvest
|
|
351
|
|
-
|
|
351
|
|
(148)
|
|
Additions
|
|
-
|
|
2,394
|
|
2,394
|
|
-
|
|
Capitalized finance costs
|
|
-
|
|
-
|
|
-
|
|
99
|
|
Currency translation
adjustment
|
|
(516)
|
|
10,065
|
|
9,549
|
|
(477)
|
|
Transfers
|
|
-
|
|
-
|
|
-
|
|
(811)
|
|
Harvest
|
|
5,531
|
|
-
|
|
5,531
|
|
4,090
|
|
Acquisitions and classifications
|
|
6,406
|
|
24,146
|
|
30,552
|
|
48,376
|
|
Consume
|
|
(2,093)
|
|
-
|
|
(2,093)
|
|
(2,706)
|
|
Disposals due to sales
|
|
-
|
|
(3,645)
|
|
(3,645)
|
|
-
|
|
Disposals due to work in
progress
|
|
-
|
|
-
|
|
-
|
|
(1,231)
|
|
Deconsolidation
|
|
-
|
|
(147)
|
|
(147)
|
|
(411)
|
|
Expenses incurred
|
|
2,250
|
|
19
|
|
2,269
|
|
1,759
|
|
Inventories at the end of the period / year
|
|
(4,836)
|
|
(9,978)
|
|
(14,814)
|
|
(17,150)
|
|
Cost as of 12.31.19
|
|
15,146
|
|
32,361
|
|
47,507
|
|
-
|
|
Cost as of 12.31.18
|
|
9,604
|
|
42,216
|
|
-
|
|
51,820
|
(i)
Includes biological
assets (see Note 13).
(ii)
Includes trading
properties (see Note 10).
(iii)
As of March 31,
2019 includes the cost of selling goods sold from Gav-Yam which was
reclassified to discontinued.
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
31.
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 03.31.20
|
|
Total as of 06.30.19
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
82
|
|
64.27
|
|
5,252
|
|
4,350
|
|
Euros
|
|
0
|
|
70.77
|
|
28
|
|
186
|
|
Trade and other receivables related parties
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
4
|
|
64.27
|
|
285
|
|
206
|
|
Total Trade and other receivables
|
|
|
|
|
|
5,565
|
|
4,742
|
|
Investment in financial assets
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
56
|
|
64.27
|
|
3,577
|
|
5,151
|
|
Pounds
|
|
1
|
|
79.50
|
|
44
|
|
65
|
|
Total Investment in financial assets
|
|
|
|
|
|
3,621
|
|
5,216
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
0
|
|
64.27
|
|
13
|
|
58
|
|
Total Derivative financial instruments
|
|
|
|
|
|
13
|
|
58
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
180
|
|
64.27
|
|
11,588
|
|
16,193
|
|
Euros
|
|
0
|
|
70.77
|
|
1
|
|
98
|
|
Brazilian Reais
|
|
0
|
|
11.50
|
|
4
|
|
-
|
|
Chilean Pesos
|
|
-
|
|
-
|
|
-
|
|
1
|
|
Total Cash and cash equivalents
|
|
|
|
|
|
11,593
|
|
16,292
|
|
Total Assets
|
|
|
|
|
|
20,792
|
|
26,308
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
79
|
|
64.47
|
|
5,088
|
|
10,697
|
|
Euros
|
|
0
|
|
71.15
|
|
4
|
|
49
|
|
Total Trade and other payables
|
|
|
|
|
|
5,092
|
|
10,746
|
|
Borrowings
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
1,193
|
|
64.47
|
|
76,935
|
|
75,405
|
|
Borrowings with related parties
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
1
|
|
64.47
|
|
70
|
|
-
|
|
Total Borrowings
|
|
|
|
|
|
77,005
|
|
75,405
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
US Dollar
|
|
3
|
|
64.47
|
|
175
|
|
91
|
|
Total Derivative financial instruments
|
|
|
|
|
|
175
|
|
91
|
|
Total Liabilities
|
|
|
|
|
|
82,272
|
|
86,242
|
(1)
Exchange
rates as of March 31, 2020 and June 30, 2019, 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
14).
32.
Groups
of assets and liabilities held for sale
As
mentioned in Note 4 to the Annual Financial Statements, the Group
has certain assets and liabilities classified as held for sale. The
following table presents the main ones:
|
|
|
03.31.20
|
|
06.30.19
|
|
Property, plant and equipment
|
|
31,209
|
|
6,006
|
|
Intangible assets
|
|
832
|
|
129
|
|
Investments in associates
|
|
173
|
|
567
|
|
Deferred income tax assets
|
|
416
|
|
275
|
|
Investment properties
|
|
1,144
|
|
114
|
|
Income tax credit
|
|
52
|
|
-
|
|
Trade and other receivables
|
|
1,560
|
|
2,850
|
|
Cash and cash equivalents
|
|
1,612
|
|
971
|
|
Total group of assets held for sale
|
|
36,998
|
|
10,912
|
|
Trade and other payables
|
|
9,361
|
|
4,598
|
|
Payroll and social security liabilities
|
|
347
|
|
-
|
|
Employee benefits
|
|
17
|
|
274
|
|
Deferred and current income tax liabilities
|
|
1,769
|
|
49
|
|
Borrowings
|
|
8,426
|
|
2,801
|
|
Total group of liabilities held for sale
|
|
19,920
|
|
7,722
|
|
Total net financial assets held for sale
|
|
17,078
|
|
3,190
|
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
33.
Results
from discontinued operations
The
results from operations of Gav-Yam for the period ended March 31,
2020 and the results from Israir and IDB Tourism for both periods;
have been reclassified in the Statements of Income under
discontinued operations.
|
|
|
|
|
|
|
|
03.31.20
|
|
03.31.19
|
|
Revenues
|
|
17,772
|
|
20,339
|
|
Costs
|
|
(13,885)
|
|
(13,751)
|
|
Gross profit
|
|
3,887
|
|
6,588
|
|
Net gain from fair value adjustment of investment
properties
|
|
-
|
|
1,465
|
|
General and administrative expenses
|
|
(864)
|
|
(882)
|
|
Selling expenses
|
|
(672)
|
|
(833)
|
|
Other operating results, net (i)
|
|
15,893
|
|
(165)
|
|
Profit from operations
|
|
18,244
|
|
6,173
|
|
Share of profit of joint ventures and associates
|
|
143
|
|
230
|
|
Profit from operations before financing and taxation
|
|
18,387
|
|
6,403
|
|
Financial income
|
|
114
|
|
243
|
|
Finance costs
|
|
(1,446)
|
|
(2,068)
|
|
Other financial results
|
|
109
|
|
(129)
|
|
Financial results, net
|
|
(1,223)
|
|
(1,954)
|
|
Profit before income tax
|
|
17,164
|
|
4,449
|
|
Income tax
|
|
16
|
|
(769)
|
|
Profit for the period from discontinued operations
|
|
17,180
|
|
3,680
|
|
|
|
|
|
|
|
Profit for the period from discontinued operations attributable
to:
|
|
|
|
|
|
Equity holders of the parent
|
|
5,957
|
|
1,361
|
|
Non-controlling interest
|
|
11,223
|
|
2,319
|
|
|
|
|
|
|
|
Profit per share from discontinued operations attributable to
equity holders of the parent:
|
|
|
|
|
|
Basic
|
|
12.109
|
|
1.738
|
|
Diluted
|
|
11.623
|
|
1.670
|
(i)
Includes the fair value remediation of residual ownership in
Gav-Yam.
As of
March 31, 2020 and 2019, Ps. 2,125 and Ps. 5,239 of the total
revenues from discontinued operations and Ps. 17,460and Ps.3,222 of
the total profit from discontinued operations correspond to
Gav-Yam.
34.
Other
relevant events of the period
Economic context in which the company operates
The
Company operates within a complex economic context, whose main
economic variables have recently had strong volatility, both
nationally and internationally.
The
results of our operations may be affected by fluctuations in the
inflation index and in the exchange rate of the Argentine peso
against other currencies, specifically the dollar, changes in
interest rates that have an impact on the cost of capital, changes
in government policies, capital controls and other political or
economic events both internationally and locally that affect the
country.
On
December 2019, a new strain of coronavirus (COVID-19) appeared in
Wuhan, China. On March 11, 2020, the World Health Organization
declared COVID-19 a pandemic. On March 3, 2020, the first case of
COVID-19 was registered in the country, which is why the National
Executive Power (NEP) implemented a series of sanitary isolation
measures, which affected the local economy. These include: the
expansion of the public emergency in health matters, the total
closure of international borders, the suspension of international
and domestic flights, the suspension of medium and long-distance
land transportation, the suspension of artistic and sports shows,
closure of shopping malls and hotels and the social, preventive and
mandatory isolation until June 7, 2020, inclusive (which could be
extended for the duration of the epidemiological situation), by
virtue of which all residents (with exceptions) must remain in
their habitual residences and refrain from attending their work
place. This series of measures forced most of the Argentine
companies to suspend their commercial operations during these
times, stressing their financial situation in the short and medium
term, not only due to the fall in their income, but due to the
increased risk that their debtors may not comply with the payments.
In this context, the Argentine government announced different
measures aimed to relieved the financial crisis of the companies
affected by the COVID-19 pandemic. In addition, it is worth
mentioning that to the slowness of the Argentine economy adds to a
context of international crisis as a consequence of the COVID-19
pandemic. In this scenario, a sharp drop in exports and less
foreign exchange earnings are expected, which further complicates
the possibility that the Argentine government will reactivate the
economy during the current year.
.P.C.E.C.A.B.A. T° 1 F° 17
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additionally, the
government faces the challenge of successfully renegotiating the
external debt with both the IMF and private holders of debentures
and avoiding default. As a result, for all the aforementioned,
Argentina could find its access to the international capital market
complicated in the coming years. For this reason, the renegotiation
of the external debt and its result will directly impact the
Argentine economy. If renegotiation times are extended too long,
the uncertainty in the financial markets will increase and the
country-risk indicators will continue to rise. If Argentina
achieves a favorable result from the ongoing renegotiation with
public holders of debentures and agrees to restructure its debt
with the IMF, this could favorably impact the Argentine economy in
the medium and long term. On the contrary, the lack of an agreement
with external debt holders could lead to a default on the Argentine
sovereign debt and, consequently, this situation could lead to
limitations on the capacity of companies to access new
financing.
At a
local level, the following was observed:
●
In January 2020, an
indicator called “Monthly Estimator of Economic
Activity” (“EMAE”) reported by the National
Institute of Statistics and Censuses (“INDEC”),
registered a variation of 1.8% compared to the same month of 2019,
and from -0.1% compared to the previous month.
●
The study on market
expectations prepared by the Argentine Central Bank in March 2020,
called the Market Expectations Survey (“REM”),
estimates an inflation of 40.0% for 2020. REM analysts forecast a
change in real GDP for 2020 of (4.3%), that is, a drop of 3.1
percentage points compared to the forecast of the previous month.
In turn, they foresee that in 2021 the economic activity will vary
3.0%, that is to say, 1.3 percentage points higher than the one
predicted a month ago. Although a further contraction of GDP is
expected in the first quarters of 2020, there is an expectation of
growth for the third quarter of 2020, motivated by the fact that
the effect of the pandemic is perceived as transitory and that a
recovery in economic activity will begin soon.
●
Year-to-year
inflation as of December 31, 2019 reached 53.8 %. According to the
first four months of the year 2020, rates of 2.3%, 2.0%, 3.3% and
1.5% were registered in January, February, March and April,
respectively.
●
Throughout the
period from July 2019 to March 2020, the Argentinian peso
depreciated 51.8% against the US dollar according to the average
wholesale exchange rate quoted by Banco de la Nación
Argentina. Given the exchange restrictions since August 2019, there
is an exchange gap of approximately 70% between the official price
of the dollar and its price in parallel markets, which impacts the
level of activity of the economy and affects the level of reserves
of the Argentine Central Bank. Additionally, these exchange
restrictions, or those that may be issued in the future, could
affect the Company's ability to access the Single Exchange Free
Market (MULC) to acquire the necessary currencies to meet its
financial obligations.
●
The outflow of
flows to emerging markets and the worldwide impact of the
Coronavirus, also affected Argentina, causing a deterioration in
its country-risk indicator that reached 3,020 basis points as of
May 12, 2020, according to J.P. Morgan EMBI + Index, deteriorating
the ability to obtain new external financing.
COVID-19 PANDEMIC
The
COVID-19 pandemic, originated in China and subsequently spread to
numerous countries, including Argentina, is adversely impacting the
global economy, the Argentine economy and the Company's business.
Although the COVID-19 pandemic has had a national impact on the
activity carried out by the Company, it is still too early to
assess its full extent.
On
March 12, 2020, the National Executive Power (NEP) ordered a health
emergency to handle the crisis caused by COVID-19, and later, on
March 19, issued a decree ordering social, preventive and mandatory
isolation, which originally applied from March 20 to March 31, 2020
inclusive, and has been extended since then until June 28, 2020.
The measures adopted in Argentina include the deceleration or
suspension of most of the non-essential activities carried out by
individuals and, consequently, are significantly affecting the
national and regional economy and economic uncertainty is
increasing, evidenced by an increase in asset price
volatility.
The
current estimated impacts of the COVID-19 pandemic on the Company
as of the date of these financial statements are established
below:
Agricultural business
-
Cresud's
agricultural business and that of its subsidiaries in Brazil,
Paraguay and Bolivia continued to operate relatively normally;
given that 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 market in the short term.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
39
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Operations Center Argentina
-
As a consequence of
the social, preventive and compulsory isolation, the shopping
centers malls across the country were closed, exclusively remaining
operational those stores dedicated to activities considered
essential such as pharmacies, supermarkets and banks, while some
gastronomic and clothing stores are working by delivery and sale
system by via WhatsApp. In the interior of within the country, in
during May, some provinces proceeded to relax reduce isolation and
open their commercial and recreational activities, such as Salta,
where the Alto Noa shopping center mall is operating with a strict
protocol that It includes reduced hours, social distancing and a
rigorous control of security and hygiene.
-
Given the closure
of the shopping centers malls, our subsidiary IRSA Propiedades
Comerciales S.A. (hereinafter IRSA CP) has decided to postpone the
maturities of the base rent and the collective promotion fund for
the months of April and May 2020, prioritizing the long-term
relationship with its tenants. Additionally, an increase in the
delinquency rates of some tenants has been detected.
-
Regarding the
offices, although most tenants are working in home office mode,
they are operating with strict safety and hygiene protocols. To
date, we have not seen any deterioration in
collection.
-
La Rural, the
Convention Centers of Buenos Aires and Punta del Este and the
DirecTV Arena stadium, establishments that the Company owns
directly or indirectly, have also been closed since March 20. All
scheduled conferences are suspended, much most of the fairs and
conventions have been postponed, while the shows scheduled at the
DIRECTV DirecTV Arena have been mostly canceled. The reopening date
of these establishments is uncertain, as well as the future agenda
of fairs, conventions and shows.
-
In order to
minimize the risk of spreading the virus and protect public health,
Libertador hotel in the City of Buenos Aires and Llao Llao hotel in
Río Negro province are temporarily closed, and we do not know
with certainty when they may be reopened and when they will be able
to operate normally again; meanwhile, Intercontinental hotel in the
City of Buenos Aires is working only under a contingency and
emergency plan.
Operations Center Israel
-
Although COVID-19
has had a negative impact on the market valuations of IDB, DIC and
operating subsidiaries given the sharp drop in prices, the
mandatory isolation lasted approximately 10 days with subsequent
relaxation of activities under strict safety and hygiene protocols.
Regarding operating businesses, there have been mixed
impacts:
o
in the case of
supermarkets (Shufersal) and agriculture (Mehadrin) they have had a
short-term positive impact as they are essential
activities.
o
in
telecommunications (Cellcom), especially regarding international
roaming service, a decrease in consumption has been experienced due
to the significant reduction in international tourism. Cellcom has
taken measures to reduce these negative effects, cutting costs and
investments during the coronavirus crisis period, including
downsizing.
o
at PBC, real estate
activities and income are affected by the economy and restrictions
in circulation, and therefore PBC’s cash flow is expected to
be somewhat vulnerable, although it cannot be estimated to what
extent at this time. PBC has carried out a valuation of its
investment properties on those in which there were signs of
impairment and because of this it has recorded a loss of Ps. 2,861
in the value of its properties.
Financial
instruments measured at fair value through profit and loss: The
current situation generated a great volatility in the markets,
which generated a decrease of Ps. 9,778 in the valuation of
financial instruments measured at fair value. See note 13 for a
description of the Company’s financial assets.
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
40
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Regarding the Group
financial debt maturities for the next twelve months:
a)
CRESUD has the
maturity of Class XXIV Notes with a nominal value of USD 73.6,
maturing on November 14, 2020 and bank debt for an amount
equivalent to USD 35.6.
b)
IRSA has the
maturity of Class II Notes with a nominal face value of USD 71.4,
maturing on July 20, 2020; Class II Notes with a nominal value of
CLP 31,502.6 million (equivalent to approximately USD 4137.2)
maturing on August 6, 2020; Class II Notes with a nominal value of
USD 181.5, maturing on November 15, 2020 and bank debt for an
amount equivalent to USD 7155.2.
c)
Our subsidiary IRSA
CP has the maturity of Class IV Notes with a nominal face value of
USD 140 in September 2020 and USD 27.3 with banks.
d)
Our subsidiaries
IDB-DIC have short-term financial debt with a nominal face value of
USD 223 (which include notes and loans with banks and financial
institutions), it should be mentioned that these commitments have
no effect on IRSA, given that said indebtedness does not have
recourse against IRSA, nor has IRSA guaranteed it with its assets,
as described in Note 1 to these Financial Statements.
As a
subsequent event, in May 2020, IRSA has issued Notes in the local
market for an approximate amount of USD 67 to refinance short-term
debt. With the proceeds from this issuance, it would cover the
maturity of Class II Notes for a nominal value of USD 71.4,
maturing on July 20, 2020.
Among
the alternatives that are being considered to refinance August 2020
and November 2020 Notes maturities, are the capital increase
approved by the Annual Shareholders’ Meeting on October 30,
2019 for an approximate amount of between USD 70 and USD 100, and
the access to the local and international capital market, either
through new debt issuance or liability management operations, for
amounts that would be between USD 40 and USD 100, in addition to
the operation already carried out in May. Likewise, IRSA has a
broad and extensive relationship with banks in the local financial
system that could complement and diversify the Company’s
sources of financing in addition to the capital market. In this
regard, it should be noted that IRSA’s bank debt maturing in
April and May 2020 for a total amount of USD 29.4 has been renewed
under normal market conditions. Additionally, as part of our
strategy, the company could sell part of its assets portfolio
(offices and / or land reserves) that would generate additional
funds.
Finally, IRSA has
an approved credit line with IRSA CP for up to USD 180 for 3 years,
of which as of March 31, 2020, IRSA used approximately USD 54.7,
leaving the balance available. It is worth mentioning that IRSA CP
is currently working on different financing alternatives with local
banks (Syndicated Loans and / or Bilateral Loans) for amounts
estimated in pesos for the equivalent of between USD 50 and USD 100
in order to meet its obligations in the short term, and could
eventually have access to debt transactions in the local capital
market, either through the issuance of new debt or through
liability management operations, for estimated amounts of between
USD 40 and USD 100.
The
final extent of the Coronavirus outbreak and its impact on the
country's economy is unknown and cannot be reasonably predicted.
However, although it has produced significant short-term effects,
they are not expected to affect business continuity. Although there
are economic impacts in the short term, the Company estimates that
it will be able to continue meeting its financial commitments for
the next twelve months.
The
Company is closely monitoring the situation and taking all
necessary measures to preserve the human life and the its
business.
Acquisition of Piauí farm
As a
subsequent event, on May 13, 2020 BrasilAgro informed to the market
the purchase of 4,500 hectares (of which 2,900 can be developed for
crop production) of a farm in Grande do Ribeiro, Piauí. The
amount of the acquisition was set at Ps. 284, with an initial
payment of Ps. 125. The balance will be cancelled in three annual
installments.
Sale of Alto Taquari
On June
1st, 2020, BrasilAgro informed the sale of 105 hectares of Alto
Taquarí farm for an amount of Ps. 125. The buyer made an
initial payment of Ps. 19. The remaining balance will be cancelled
in 5 annual installments. The result of the sale is approximately
Ps. 110.
.P.C.E.C.A.B.A. T° 1 F° 17
41
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Issuance of Cresud Class XXIX Notes
On June
3, 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, 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.
Court decision to postpone the sale of 3.2% of the shares of Clal
Insurance Enterprises
On May
4, 2020, the Tel Aviv District Court Yafo ordered the postponement
of the sale of 3.2% of Clal's shares in accordance with the scheme
established by the Israel Capital, Insurance and Savings Market
Authority, to September 3, 2020 (instead of May 3, 2020 according
to the scheme).
Sale of interest in Gav-Yam
On May
2020, PBC agreed to sell approximately 4.96% of the issued capital
of Gav-Yam to a non-related third party for an amount of
approximately NIS 191. As a result, interest in Gav-Yam decreased
from 34.9% to 29.9%. After this sale, the discussion on the loss of
control of Gav-Yam from PBC which was argued by the Ministry of
Justice is finished has ended.
Issuance of IRSA Class III, IV and V NCN
On May
19, 2020 a public tender of Class III, IV and V NCN was made under
the Program of up to US$500 approved by the Shareholders Meeting,
which was issued and settled on May 21, 2020.Below is the
description of the main characteristics of such notes:
-
Class III NCN:
nominated and payable in ARS for Ps. 354 at a variable rate
(private BADLAR + 6.0%) with quarterly payments. The principal will
be paid in two instalments (30% payable 6 months from the Issue and
Settlement Date, and 70% on maturity date). Price of issuance was
100.0% of the nominal value.
-
Class IV NCN: for a
face value of US$ 51.3 (equivalent to 3,547) payable in argentine
pesos at the applicable exchange rate at a fixed rate of 7.0%, with
quarterly payments and principal expiring on May 21,
2021.
-
Class V NCN: for a
face value of US$ 9.2, equivalent to Ps. 640, which matures 24
months after the issuance date, with an fixed annual rate of
interest of 9%. Interest payments will be made on a quarterly basis
and capital repayment will be made in one instalment at
maturity.
Free
Translation from the original prepared in Spanish for publication
in Argentina