6-K 1 acresudconsolidadoingles3.htm IIIQ FY17 RESULTS Blueprint
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Financial Statements as of March 31, 2017 and June 30, 2016 and for the nine-month periods ended March 31, 2017 and 2016
 
 
 
 
 
 
Legal Information
 
 
Denomination: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Fiscal year N°: 84, beginning on July 1, 2016
 
Legal address: Moreno 877, 23rd floor – Autonomous City of Buenos Aires, Argentina
 
Company activity: Real estate, agricultural, commercial and financial activities
 
Date of registration of the by-laws in the Public Registry of Commerce: February 19, 1937
 
Date of registration of last amendment of the by-laws in the Public Registry of Commerce: October 31, 2014 and its reinstatement on November 14, 2014
 
Expiration of Company charter: June 6, 2082
 
Registration number with the Supervisory Board of Companies: 26, folio 2, book 45, Stock Companies.
 
Stock: 501,642,804 common shares
 
Common Stock subscribed, issued and paid up (millions of Ps.): 502
 
Parent Company: Inversiones Financieras del Sur S.A.
 
Legal address: Road 8, km 17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay
 
Parent Company Activity: Investment
 
Ownership interest: 154,462,970 shares
 
Voting stock: 30.94% (i)
 
 
Type of stock
CAPITAL STATUS
Authorized to be offered publicly (Shares)
Subscribed, Issued and Paid-in (millions of Ps.)
Ordinary certified shares of Ps. 1 face value and 1 vote each
501,642,804 (*)
502
 
(*)        
Company not included in the Optional Statutory System of Public Offer of Compulsory Acquisition.
(i)        
The effect of treasury shares as of March 31, 2017 was not considered.
 
 
Index
 
Glossary of terms
 
Unaudited Condensed Interim Consolidated Statements of Financial Position
 
Unaudited Condensed Interim Consolidated Statements of Income / (Operations)
 
Unaudited Condensed Interim Consolidated Statements of Comprehensive Income / (Operations)
 
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
 
Unaudited Condensed Interim Consolidated Statements of Cash Flows
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements:
 
Note 1 – The Group’s business and general information
 
Note 2 – Summary of significant accounting policies
 
Note 3 – Seasonal effects on operations
 
Note 4 – Acquisitions and disposals
 
Note 5 – Financial risk management and fair value estimates
 
Note 6 – Segment information
 
Note 7 – Information about the main subsidiaries
 
Note 8 – Investments in joint ventures
 
Note 9 – Investments in associates
 
Note 10 – Investment properties
 
Note 11 – Property, plant and equipment
 
Note 12 – Trading properties
 
Note 13 – Intangible assets
 
Note 14 – Biological assets
 
Note 15 – Inventories
 
Note 16 – Financial instruments by category
 
Note 17 – Trade and other receivables
 
Note 18 – Cash flow information
 
Note 19 – Shareholder’s Equity
 
Note 20 – Trade and other payables
 
Note 21 – Provisions
 
Note 22 – Borrowings
 
Note 23 – Taxation
 
Note 24 – Revenues
 
Note 25 – Costs
 
Note 26 – Expenses by nature
 
Note 27 – Other operating results, net
 
Note 28 – Financial results, net
 
Note 29 – Related parties transactions
 
Note 30 – CNV General Resolution N° 622
 
Note 31 – Cost of sales and services provided
 
Note 32 – Foreign currency assets and liabilities
 
Note 33 – Groups of assets and liabilities held for sale
 
Note 34 – Result from discontinued operations
 
Note 35 – CNV Resolution N° 629/14 – Storage of documentation
 
Note 36 – Subsequent Events
 
Review report on the Unaudited Condensed Interim Consolidated Financial Statements
 
 
 
 
 
Glossary of terms
 
The followings are not technical definitions, but help the reader to understand certain terms used in the wording of the notes to the Group’s Financial Statements.
 
Terms
 
Definitions
Acres
 
Agropecuaria Acres del Sud S.A.
Adama
 
Adama Agricultural Solutions Ltd.
Agropecuarias SC
 
Agropecuarias Santa Cruz de la Sierra S.A.
BACS
 
Banco de Crédito y Securitización S.A.
Baicom
 
Baicom Networks S.A.
Bartan
 
Bartan Holdings and Investments Ltd.
BASE
 
Buenos Aires Stock Exchange
BCRA
 
Central Bank of the Argentine Republic
BHSA
 
Banco Hipotecario S.A.
BMBY
 
Buy Me Buy You (Note 3.A.a)
BNSA
 
Boulevard Norte S.A.
Brasilagro
 
Brasilagro-Companhia Brasileira de Propriedades Agrícolas
CAMSA
 
Consultores Assets Management S.A.
Carnes Pampeanas
 
Sociedad Anónima Carnes Pampeanas S.A.
Cellcom
 
Cellcom Israel Ltd.
Clal
 
Clal Holdings Insurance Enterprises Ltd.
CNV
 
Comisión Nacional de Valores
Condor
 
Condor Hospitality Trust Inc.
Cresud, “the Company”, “us”
 
Cresud S.A.C.I.F. y A.
Cyrsa
 
Cyrsa S.A.
DFL
 
Dolphin Fund Ltd.
DIC
 
Discount Investment Corporation Ltd.
DN B.V.
 
Dolphin Netherlands B.V.
Dolphin
 
Dolphin Fund Ltd. and Dolphin Netherlands B.V.
EHSA
 
Entertainment Holdings S.A.
Electra
 
Electra Consumer Products Ltd.
ENUSA
 
Entretenimiento Universal S.A.
Financial Statements
 
Unaudited Condensed Interim Consolidated Financial Statements
Annual Financial Statements
 
Consolidated Financial Statements as of June 30, 2016
ETH
 
C.A.A. Extra Holdings Ltd.
CPF
 
Collective Promotion Funds
GCBA
 
Autonomous City of Buenos Aires Government
Golan
 
Golan Telecom Ltd.
IASB
 
International Accounting Standards Board
IDB Tourism
 
IDB Tourism (2009) Ltd.
IDBD
 
IDB Development Corporation Ltd.
IDBG
 
IDB Group Investment Inc.
IFISA
 
Inversiones Financieras del Sur S.A.
IFRS
 
International Financial Reporting Standards
MPIT
 
Minimum Presumed Income Tax
Indarsa
 
Inversora Dársena Norte S.A.
IRSA
 
IRSA Inversiones y Representaciones Sociedad Anónima
IRSA CP
 
IRSA Propiedades Comerciales S.A.
Israir
 
Israir Airlines & Tourism Ltd.
Koor
 
Koor Industries Ltd.
Lipstick
 
Lipstick Management LLC
LRSA
 
La Rural S.A.
Metropolitan
 
Metropolitan 885 Third Avenue Leasehold LLC
NASDAQ
 
National Association of Securities Dealers Automated Quotation
NFSA
 
Nuevas Fronteras S.A.
New Lipstick
 
New Lipstick LLC
IAS
 
International Accounting Standards
NIS
 
New Israeli Shekel
NPSF
 
Nuevo Puerto Santa Fe S.A.
NYSE
 
New York Stock Exchange
OASA
 
Ogden Argentina S.A.
Ombú
 
Ombú Agropecuaria S.A.
NCN
 
Non-convertible Notes
PAMSA
 
Panamerican Mall S.A.
PBC
 
Property & Building Corporation Ltd.
PBEL
 
PBEL Real Estate Ltd.
Puerto Retiro
 
Puerto Retiro S.A.
Quality
 
Quality Invest S.A.
Rock Real
 
Rock Real Estate Partners Limited
Shufersal
 
Shufersal Ltd.
SRA
 
Sociedad Rural Argentina
Tarshop
 
Tarshop S.A.
Yuchan
 
Yuchán Agropecuaria S.A.
Yatay
 
Yatay Agropecuaria S.A.
 
 
 
 
 
 
 
 
1
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Financial Position
as of March 31, 2017 and June 30, 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
Note
03.31.17
 
06.30.16
ASSETS
 
 
 
 
Non-current assets
 
 
 
 
Investment properties                                                                                        
10
53,983
 
49,766
Property, plant and equipment                                                                                        
11
27,394
 
26,392
Trading properties                                                                                        
12
3,548
 
4,472
Intangible assets                                                                                        
13
11,084
 
11,814
Biological assets                                                                                        
14
577
 
497
Investments in joint ventures and associates                                                                                        
8, 9
6,815
 
16,534
Deferred income tax assets                                                                                        
23
2,067
 
1,655
Income tax credit                                                                                        
 
204
 
173
Restricted assets                                                                                        
16
140
 
129
Trade and other receivables                                                                                        
17
4,739
 
3,773
Financial assets held for sale                                                                                       
16
5,263
 
3,346
Investment in financial assets                                                                                        
16
1,656
 
2,226
Derivative financial instruments                                                                                        
16
28
 
8
Employee benefits                                                                                       
 
-
 
4
Total non-current assets                                                                                        
 
117,498
 
120,789
Current assets
 
 
 
 
Trading properties                                                                                        
12
880
 
241
Biological assets                                                                                        
14
1,049
 
552
Inventories                                                                                        
15
3,495
 
3,900
Restricted assets                                                                                        
16
799
 
748
Income tax credit                                                                                        
 
225
 
541
Financial assets held for sale                                                                                       
16
1,931
 
1,256
Groups of assets held for sale                                                                                       
33
2,688
 
-
Trade and other receivables                                                                                        
17
15,044
 
14,158
Investment in financial assets                                                                                        
16
9,233
 
9,673
Derivative financial instruments                                                                                        
16
112
 
53
Cash and cash equivalents                                                                                        
16
22,667
 
14,096
Total current assets                                                                                        
 
58,123
 
45,218
TOTAL ASSETS                                                                                        
 
175,621
 
166,007
SHAREHOLDERS’ EQUITY
 
 
 
 
Capital and reserves attributable to equity holders of the parent
 
 
 
 
Share capital                                                                                        
 
499
 
495
Treasury shares                                                                                        
 
3
 
7
Inflation adjustment of share capital and treasury shares                                                                                       
 
65
 
65
Share premium                                                                                       
 
659
 
659
Additional paid-in capital from treasury shares  
 
20
 
16
Legal reserve                                                                                       
 
83
 
83
Other reserves                                                                                       
19
1,830
 
1,086
Accumulated deficit                                                                                       
 
(322)
 
(1,387)
Total capital and reserves attributable to equity holders of the parent
 
2,837
 
1,024
Non-controlling interest                                                                                        
 
18,436
 
14,214
TOTAL SHAREHOLDERS’ EQUITY                                                                                        
 
21,273
 
15,238
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
2
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Financial Position
as of March 31, 2017 and June 30, 2016 (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
Note
03.31.17
 
06.30.16
LIABILITIES
 
 
 
 
Non-current liabilities
 
 
 
 
Trade and other payables                                                                                 
20
3,127
 
1,528
Borrowings                                                                                 
22
97,389
 
93,808
Deferred income tax liabilities                                                                                 
23
7,589
 
7,662
Derivative financial instruments                                                                                 
16
95
 
121
Payroll and social security liabilities                                                                                 
 
53
 
21
Provisions                                                                                 
21
1,545
 
1,341
Employee benefits                                                                                 
 
706
 
689
Total non-current liabilities                                                                                 
 
110,504
 
105,170
Current liabilities
 
 
 
 
Trade and other payables                                                                                 
20
18,028
 
18,443
Income tax and minimum presumed income tax liabilities
 
647
 
624
Payroll and social security liabilities                                                                                 
 
1,889
 
1,856
Borrowings                                                                                 
22
20,277
 
23,488
Derivative financial instruments                                                                                 
16
48
 
147
Provisions                                                                                 
21
1,089
 
1,041
Group of liabilities held for sale                                                                                 
33
1,866
 
-
Total current liabilities                                                                                 
 
43,844
 
45,599
TOTAL LIABILITIES                                                                                 
 
154,348
 
150,769
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
 
175,621
 
166,007
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
3
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Income / (Operations)
for the nine and three-month periods beginning on July 1, 2016 and 2015 and
January 1, 2017 and 2016 and ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
Nine months
 
Three months
 
Note
03.31.17
 
03.31.16
 
03.31.17
 
03.31.16
Revenues                                                                      
24
57,723
 
20,989
 
19,027
 
17,598
Costs                                                                      
25
(42,485)
 
(16,112)
 
(14,038)
 
(13,582)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
1,468
 
1,164
 
547
 
575
Changes in the net realizable value of agricultural products after harvest
 
(87)
 
131
 
(10)
 
17
Gross profit                                                                      
 
16,619
 
6,172
 
5,526
 
4,608
Gain from disposal of investment properties                                                                      
10
209
 
1,055
 
106
 
33
Gain from disposal of farmlands                                                                      
 
93
 
-
 
21
 
-
General and administrative expenses                                                                      
26
(3,123)
 
(1,000)
 
(1,104)
 
(601)
Selling expenses                                                                      
26
(10,612)
 
(2,770)
 
(3,608)
 
(2,486)
Other operating results, net                                                                      
27
(119)
 
108
 
(161)
 
(58)
Management fees                                                                      
 
(115)
 
-
 
(11)
 
-
Profit from operations                                                                      
 
2,952
 
3,565
 
769
 
1,496
Share of loss of associates and joint ventures 
8, 9
(163)
 
(559)
 
(214)
 
(156)
Profit from operations before financing and taxation 
 
2,789
 
3,006
 
555
 
1,340
Finance income 
28
807
 
793
 
(5)
 
316
Finance cost 
28
(5,921)
 
(5,609)
 
(1,080)
 
(2,358)
Other financial results 
28
2,528
 
439
 
905
 
612
Financial results, net 
28
(2,586)
 
(4,377)
 
(180)
 
(1,430)
Profit / (Loss) before income tax 
 
203
 
(1,371)
 
375
 
(90)
Income tax                                                                      
23
256
 
34
 
(239)
 
45
Profit / (Loss) for the period from continuing operations
 
459
 
(1,337)
 
136
 
(45)
Profit / (Loss) from discontinued operations after income tax
34
3,056
 
(168)
 
(441)
 
(168)
Profit / (Loss) for the period                                                                      
 
3,515
 
(1,505)
 
(305)
 
(213)
 
 
 
 
 
 
 
 
 
Profit / (Loss) from continuing operations attributable to:
 
 
 
 
 
 
 
 
Equity holders of the parent 
 
220
 
(936)
 
115
 
(164)
Non-controlling interest 
 
239
 
(401)
 
21
 
119
 
Profit / (Loss) for the period attributable to:
 
 
 
 
 
 
 
 
Equity holders of the parent 
 
1,034
 
(936)
 
115
 
(164)
Non-controlling interest 
 
2,481
 
(569)
 
(420)
 
(49)
 
Profit / (Loss) per share from continuing operations attributable to equity holder of the parent during the period:
 
 
 
 
 
 
 
 
Basic                                                                      
 
0.44
 
(1.89)
 
1.59
 
(0.33)
Diluted                                                                      
 
0.44
 
(i)(1.89)

1.59
 
(i)(0.33)
 
Profit / (Loss) per share attributable to equity holders of the parent during the period:
 
 
 
 
 
 
 
 
Basic                                                                      
 
2.08
 
(1.89)
 
0.23
 
(0.33)
Diluted                                                                      
 
2.07
 
(i)(1.89)

0.23
 
(i)(0.33)
 
(i)
Due to the loss for the period, there is no diluted effect on this result.
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
4
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Comprehensive Income / (Operations) for the nine and three-month periods beginning on July 1, 2016 and 2015 and January 1, 2017 and 2016 and ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Nine months
 
Three months
 
03.31.17
 
03.31.16
 
03.31.17
 
03.31.16
Profit / (Loss) for the period                                                                              
3,515
 
(1,505)
 
(305)
 
(213)
Other comprehensive income / (loss):
 
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss:
 
 
 
 
 
 
 
Currency translation adjustment 
2,627
 
2,852
 
1,188
 
467
Change in the fair value of hedging instruments net of income taxes
2
 
23
 
12
 
23
Items that may not be reclassified subsequently to profit or loss:
 
 
 
 
 
 
 
Actuarial (loss) / profit from defined benefit plans                                                                              
-
 
(11)
 
19
 
(11)
Others                                                                              
(22)
 
4
 
(22)
 
4
Other comprehensive income for the period from continuing operations (i)….
2,607
 
2,868
 
1,197
 
483
Other comprehensive income for the period from discontinued operations (i) 
409
 
-
 
 
409
 
-
Total other comprehensive income for the period 
3,016
 
2,868
 
1,606
 
483
Total comprehensive income for the period 
6,531
 
1,363
 
1,301
 
270
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
Equity holders of the parent 
1,902
 
(228)
 
555
 
104
 Non-controlling interest 
4,629
 
1,591
 
746
 
166
 
 
 
 
 
 
 
 
Attributable to equity holders of the parent from continuing operations
(308)
 
(228)
 
1,072
 
104
Attributable to equity holders of the parent from discontinued operations
2,210
 
-
 
(517)
 
-
Total attributable to equity holders of the parent 
1,902
 
(228)
 
555
 
104
 
(i)
Components of other comprehensive income have no impact on income tax.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
5
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the nine-month periods ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Attributable to equity holders of the parent
 
 
 
 
Share capital
Treasury shares
Inflation adjustment
 of share capital and treasury shares (i)
Share premium
Additional paid-in capital from treasury shares
Legal
reserve
Other
reserves
 (Note 19)
Accumulated deficit
Subtotal
Non-controlling interest
Total Shareholders’ equity
Balances as of June 30, 2016                                                  
495
7
65
659
16
83
1,086
(1,390)
1,021
14,211
15,232
Adjustment due to change to accounting standards (ii)
-
-
-
-
-
-
-
3
3
3
6
Adjusted balances as of June 30, 2016 
495
7
65
659
16
83
1,086
(1,387)
1,024
14,214
15,238
Profit for the period                                                
-
-
-
-
-
-
-
1,034
1,034
2,481
3,515
Other comprehensive income for the period 
-
-
-
-
-
-
868
-
868
2,148
3,016
Total comprehensive income for the period
-
-
-
-
-
-
868
1,034
1,902
4,629
6,531
Appropriation of retained earnings resolved by Ordinary and Extraordinary Shareholders’ Meetings held on October 31, 2016 and November 26, 2016:
 
 
 
 
 
 
 
 
 
 
 
- Share Distribution                                                 
4
(4)
-
-
3
-
-
(4)
(1)
-
(1)
Incorporation by business combination (Note 4) 
-
-
-
-
-
-
-
-
-
45
45
Reserve for share-based payments                                                
-
-
-
-
-
-
10
-
10
73
83
Equity incentive plan granted                                                
-
-
-
-
1
-
(5)
4
-
-
-
Changes in non-controlling interest                                                  
-
-
-
-
-
-
(98)
-
(98)
1,557
1,459
Release of reserve for future dividends 
-
-
-
-
-
-
(31)
31
-
-
-
Dividends distribution to non-controlling interest
-
-
-
-
-
-
-
-
-
(2,077)
(2,077)
Contributions from non-controlling interest 
-
-
-
-
-
-
-
-
-
2
2
Share of changes in subsidiaries’ equity 
-
-
-
-
-
-
-
-
-
(1)
(1)
Capital reduction                                                  
-
-
-
-
-
-
-
-
-
(6)
(6)
Balances as of March 31, 2017                                                  
499
3
65
659
20
83
1,830
(322)
2,837
18,436
21,273
 
(i)
Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2017 and June 30, 2016, respectively.
(ii)
See Note 2.2.1.
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
6
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the nine-month periods ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Share capital
Treasury shares
Inflation adjustment
 of share capital and treasury shares (i)
Share
premium
Additional paid-in capital from treasury shares
Legal
reserve
Other
reserves
(Note 19)
Accumulated deficit
Subtotal
Non-controlling interest
Total Shareholders’ equity
Balances as of June 30, 2015                                                                
495
7
65
659
13
-
599
118
1,956
2,559
4,515
Adjustment due to change to accounting standards (ii) 
-
-
-
-
-
-
(3)
6
3
7
10
Adjusted balances as of June 30, 2015                                                                
495
7
65
659
13
-
596
124
1,959
2,566
4,525
Loss for the period 
-
-
-
-
-
-
-
(936)
(936)
(569)
(1,505)
Other comprehensive income for the period                                                                
-
-
-
-
-
-
708
-
708
2,160
2,868
Total comprehensive income / (loss) for the period 
-
-
-
-
-
-
708
(936)
(228)
1,591
1,363
Appropriation of retained earnings resolved by Ordinary and Extraordinary Shareholders’ Meetings held on October 30, 2015 and November 26, 2015:
 
 
 
 
 
 
 
 
 
 
 
- Legal reserve 
-
-
-
-
-
83
-
(83)
-
-
-
- Reserve for future dividends 
-
-
-
-
-
-
31
(31)
-
-
-
Reserve for share-based payments 
-
-
-
-
-
-
13
-
13
4
17
Equity incentive plan granted 
-
-
-
-
3
-
(5)
2
-
-
-
Changes in non- controlling interest. 
-
-
-
-
-
-
(243)
-
(243)
1,168
925
Tender offer to non-controlling shareholders
-
-
-
-
-
-
(121)
-
(121)
100
(21)
Capital reduction 
-
-
-
-
-
-
-
-
-
(4)
(4)
Acquisition of subsidiaries 
-
-
-
-
-
-
-
-
-
(161)
(161)
Incorporation for business combination 
-
-
-
-
-
-
-
-
-
3,287
3,287
Cash dividends 
-
-
-
-
-
-
-
-
-
(86)
(86)
Share of changes in subsidiaries’ equity                                                                
-
-
-
-
-
-
26
-
26
2
28
Cumulative translation adjustment of interest held before business combination 
-
-
-
-
-
-
(91)
-
(91)
(52)
(143)
Balances as of March 31, 2017                                                                
495
7
65
659
16
83
914
(924)
1,315
8,415
9,730
 
(i)
Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2016 and June 30, 2015, respectively.
(ii)
See Note 2.2.1.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
Eduardo S. Elsztain
President
 
 
 
7
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Cash Flows
for the nine-month periods ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Note
03.31.17
 
03.31.16
Operating activities:
 
 
 
 
Cash generated from continuing operating activities before income tax
18
6,601
 
3,347
Income tax paid 
 
(784)
 
(656)
Net cash generated from continuing operating activities 
 
5,817
 
2,691
Net cash generated from discontinued operating activities 
 
234
 
110
Net cash generated from operating activities 
 
6,051
 
2,801
Investing activities:
 
 
 
 
Payment for subsidiary acquisition, net of cash acquired                                                                                      
 
(46)
 
9,193
Capital contributions to joint ventures and associates                                                                                      
 
(445)
 
(206)
Acquisition of investment properties                                                                                      
 
(1,924)
 
(144)
Proceeds from sales of investment properties                                                                                      
 
242
 
1,150
Acquisition of property, plant and equipment 
 
(2,691)
 
(820)
Proceeds from sales of property, plant and equipment 
 
5
 
60
Suppliers advances 
 
(1)
 
(14)
Proceeds from sales of farmlands 
 
75
 
43
Acquisition of intangible assets 
 
(333)
 
(119)
Acquisition of trading properties                                                                                      
 
-
 
(389)
Acquisition of investments in financial instruments                                                                                      
 
(3,070)
 
(8,345)
Proceeds from disposals of investments in financial instruments                                                                                      
 
4,823
 
9,182
Loans granted to associates and joint ventures                                                                                      
 
(80)
 
(794)
Dividends received                                                                                      
 
196
 
594
Proceeds from sales of associates and joint ventures                                                                                      
 
389
 
9
Interest received from financial assets                                                                                      
 
83
 
41
Loans repayment received from associates and joint ventures                                                                                      
 
-
 
65
Net cash (used in) / generated from continuing investing activities
 
(2,777)
 
9,506
Net cash generated from / (used in) discontinued investing activities
 
3,571
 
(26)
Net cash generated from investing activities 
 
794
 
9,480
Financing activities:
 
 
 
 
Repurchase of notes 
 
(364)
 
(273)
Reissuance of notes 
 
-
 
7
Proceeds from issuance of non-convertible notes 
 
12,994
 
7,680
Repayment of non-convertible notes 
 
(3,511)
 
(1,128)
Borrowings                                                                                      
 
58,959
 
3,107
Repayment of borrowings                                                                                      
 
(63,276)
 
(5,581)
Proceeds from exercise of shares granted                                                                                      
 
-
 
6
Repayment of borrowings from joint ventures and associates                                                                                      
 
(9)
 
-
Payment of seller financing                                                                                      
 
-
 
(72)
Contributions from non-controlling interest                                                                                      
 
151
 
-
Acquisition of non-controlling interest in subsidiaries                                                                                      
 
(1,017)
 
(2,018)
Sale of equity interest in subsidiaries to non-controlling interest                                                                                      
 
2,651
 
86
Dividends paid                                                                                      
 
(822)
 
(208)
Acquisition of derivative financial instruments                                                                                      
 
(79)
 
-
Proceeds from derivative financial instruments                                                                                      
 
132
 
1,455
Payment of derivative financial instruments                                                                                      
 
(39)
 
(50)
Distribution of minority interest in subsidiaries                                                                                      
 
(72)
 
(4)
Payments of financial leasing                                                                                      
 
-
 
(3)
Interest paid                                                                                      
 
(3,999)
 
(2,767)
Net cash generated from continuing financing activities                                                                                      
 
1,699
 
237
Net cash used in discontinued financing activities                                                                                      
 
(759)
 
(89)
Net cash generated from financing activities 
 
940
 
148
Net increase in cash and cash equivalents from continuing activities
 
4,739
 
12,434
Net Increase / (Decrease) in cash and cash equivalents from discontinued activities
 
3,046
 
(5)
Net Increase in cash and cash equivalents 
 
7,785
 
12,429
Cash and cash equivalents at beginning of period 
16
14,096
 
634
Cash and cash equivalents reclassified to held for sale 
 
(161)
 
-
Foreign exchange gain on cash and cash equivalents                                                                                      
 
947
 
6,626
Cash and cash equivalents at end of period                                                                                      
 
22,667
 
19,689
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
8
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
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 directly principal subsidiary.
 
Cresud and its subsidiaries are collectively referred to hereinafter as the Group.
 
IFISA is the parent company and is a corporation established and domiciled in Uruguay, and IFIS Limited is the ultimate parent company.
 
These Financial Statements have been approved for issue by the Board of Directors on May 12, 2017.
 
As of March 31, 2017, 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:
 
 
 
 
 
 
 
9
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
1.
The Group’s business and general information (Continued)
 
 
 
 
 

 
 
 
 
 

 
(i)
Remains in current and non-current assets, as financial assets held for sale.
(ii)
Corresponds to Group’s associates, which are hence excluded from consolidation.
(iii)
Disclosed in Groups of assets and liabilities held for sale.
 
 
10
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
1.
The Group’s business and general information (Continued)
 
Within the center of operations in Israel and in relation to IDBD’s financial position, its flow of funds and its ability to meet its financial debt, the following should be taken into consideration:
 
●
Since September 2016, after the sale of Adama and the increase in market value of its subsidiaries, IDBD considers that it is possible to obtain financing in the market or refinance its debts. In this sense, IDBD has recently placed successful debts, as mentioned in Note 22 to these Unaudited Condensed Consolidated Financial Statements. Additionally, it has made advance payments of its financial debt and has achieved to renegotiate the related covenants.
 
●
As cited in Note 7 to these Unaudited Condensed Consolidated Financial Statements, DIC approved dividends in respect of which IDBD will receive nearly NIS 481 million (approximately equivalent to Ps. 2,020).
 
●
In February 2017, Standard & Poor’s Maalot upgraded the rating of IDBD debenturs, from CCC to BB.
 
●
As mentioned in Note 16 to these Unaudited Condensed Consolidated Financial Statements, IDBD sold part of its stake in Clal and signed a swap agreement for the future sale.
 
Given the reasons above described, IDBD considers that it has enough resources to continue operating for at least 12 months after the date of these Condensed Consolidated Financial Statements.
 
Importantly, in the calendar years 2017-2018, IDBD expects to receive, inter alia, cash from the sale of its direct holdings in investments and, therefore, to comply with all its obligations by the end of 2018. Notably, the performance of a part of IDBD’s plans regarding the sale of its assets is contingent upon factors beyond its control; however, IDBD estimates that it will be able to carry out these and other plans successfully.
 
Based on the reasons described above, IDBD’s management estimates that there are currently no significant uncertainties regarding its ability to operate as a going concern, like in previous periods, given its current financial position and its ability to pay its financial commitments in time and in due form and its capacity to carry out its business plan.
 
 
11
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
1.
The Group’s business and general information (Continued)
 
However, IDBD expects to pay liabilities for NIS 1,551 million (approximately equivalent to Ps. 6,514 as of the closing date of these financial statements) in November 2019, that payment will be affected by factors that are out of control of IDBD, such as, its ability to carry out its plans to sell its equity interest in Clal considering the scheme determined by the Capital Market, Insurance and Saving Commission of Israel (“the Commissioner”), the requirements of the Act to Promote Competition and Reduce Concentration (“Concentration Act”) and its ability to deal with the implications of the Concentration Act and to abide by the restrictions specified therein concerning the control of companies by means of a pyramidal structure (Note 16), among others. IDBD expects that the consideration from the sale of Clal pursuant to the Commissioner’s scheme, namely the sale of 5% tranches payable every four months, to the extent it is implemented – to be low and even significantly low with respect to a sale of its controlling interest in Clal. Even if Clal’s shares were sold in accordance to the scheme established by the Commissioner, IDBD’s management considers that it would as well have additional sources of cash flows available to obtain funds to pay its commitments in November 2019; including, but not limited to: the extension of Series L debentures, the receipt of additional dividends and the realization or collection of additional holdings in DIC. IDBD’s management considers that it will be able to pay timely its commitments and continue with its operations.
 
It should be noted that the financial position of IDBD and its subsidiaries at the operations center in Israel does not affect the financial position of Cresud and subsidiaries at the operations center in Argentina.
 
In addition, the commitments and other covenants resulting from the loan granted to IDBD do not have impact on Cresud and IRSA since such indebtedness has no recourses against Cresud or IRSA and it is not secured by Cresud or IRSA's assets.
 
2.
Summary of significant accounting policies
 
2.1.
Basis of preparation of the Unaudited Financial Statements
 
The present Financial Statements have been prepared in accordance with IAS 34 "Interim Financial Reporting", therefore, should be read together with the Annual Financial Statements of the Group as of June 30, 2016, prepared in accordance with IFRS in force. Furthermore, these Financial Statements include supplementary information required by Law N° 19,550 and/or regulations of CNV. Such information is included in notes to the Financial Statements according to IFRS.
 
These Financial Statements corresponding to the nine-month periods ended as of March 31, 2017 and 2016 have not been audited. The management considers they include all necessary adjustments to fairly present the results of each period. Results for the nine-month periods ended March 31, 2017 and 2016 do not necessarily reflect the proportion of the Group’s full year results.
 
 
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
Summary of significant accounting policies (Continued)
 
IDBD’s fiscal year ends on December 31 each year and the Company’s fiscal year ends on June 30. Furthermore, IDBD’s quarterly and annual reporting follows the guidelines of Israeli standards, which means that the information is only available after the applicable statutory terms in Argentina. Therefore, the Company is not able to include IDBD’s quarterly results in its financial statements to be filed with the CNV within the applicable statutory terms in Argentina. The Company consolidates IDBD’s results of operations with a three-month lag, adjusted by the effects of material transactions that may have taken place during the reported period.
 
Under IAS 29 “Financial Reporting in Hyperinflationary Economies”, the financial statements of an entity whose functional currency belongs to a hyperinflationary economy, regardless of whether they apply historic cost or current cost methods, should be stated at the current unit of measure as of the date of these Unaudited Condensed Interim Consolidated Financial Statements. For such purpose, in general, inflation is to be computed in non-monetary items from the acquisition or revaluation date, as applicable.  In order to determine whether an economy is to be considered hyperinflationary, the standard lists a set of factors to be taken into account, including an accumulated inflation rate near or above 100% over a three-year period.
 
As of March 31, 2017, it is not possible to compute the accumulated inflation rate for the three-year period ending on that date based on the official statistics of the INDEC (Argentina Statistics Office), because in October 2015, the INDEC ceased to compute the Wholesale Domestic Price Index (IPIM, as per its Spanish acronym), and started to compute it again as from January 2016.
 
As of the date of these Unaudited Condensed Interim Consolidated Financial Statements, the Argentine peso does not meet the conditions to be treated as the currency of a hyperinflationary economy, pursuant to the guidelines set forth by IAS 29. Therefore, these Unaudited Financial Statements have not been restated in constant currency.
 
However, over the last years, certain macroeconomic variables affecting business in the operations center Argentina, such as payroll costs, input prices and service rates, have experienced significant annual changes. This factor should be taken into consideration in assessing and interpreting the financial condition and results of operations of the Company in these financial statements.
 
2.2
Significant accounting policies
 
The accounting policies applied in the presentation of these Financial Statements are consistent with those applied in the preparation of the Annual Financial Statements under IFRS as described in Note 2 to the Annual Financial Statements as of June 30, 2016, except for what is mentioned in Note 2.2.1.
 
 
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
The Group’s business and general information (Continued)
 
2.2.1
Adjustment due to change to accounting standards
 
During the reported period, the Group has adopted the changes to IAS 16 “Property Plant and Equipment” and to IAS 41 “Agriculture” in relation to production plants. These amendments imply changes in accounting policies and have the following impact on the financial situation and results of operations of the Group, already recognized in the financial statements. 
 
On June, 2014 the International Accounting Standards Board issued the amendments to IAS 16 “Property, plant and equipment” and to IAS 41 “Agriculture” whereby it distinguished between bearer plants and other biological assets. Production plants are solely used for product development and its operation is similar to that of manufacturing machinery. As a result, amendments require bearer plants to be accounted for as property, plant and equipment and covered by IAS 16, rather than IAS 41. However, the produce growing on bearer plants will continued to be governed by IAS 41 and will continue to be valued at fair value minus selling costs.
 
Group's sugarcane fields are recognized as bearer plants under the new definition included in IAS 41. Under IAS 8, modifications are to be applied retrospectively; therefore, the sugarcane field will be reclassified under "Property, plant and equipment" and valued at depreciated cost as from July 1, 2016, with comparative balances being revised retrospectively. Sugarcane fields are depreciated over its useful life under the balance declining method based on the expected yield.
 
Amounts as of June 30, 2016 and March 31, 2016, which are disclosed for comparative purposes have been modified in order to present the mentioned adjustments. The following tables present the impact on the financial situation and results of operations of the Group.
 
Statement of Income (summary)
 
March 31,
 2016
(Published)
 
Increase /
(Decrease)
 
March 31,
2016
(Adjusted)
Costs 
 
(116,109)
 
(3)
 
(116,112)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
1,172
 
(8)
 
1,164
Income tax 
 
30
 
4
 
34
Loss for the period 
 
(1,498)
 
(7)
 
(1,505)
Attributable to:
 
 
 
 
 
 
Equity holders of the parent 
 
(936)
 
-
 
(936)
Non-controlling interest 
 
(562)
 
(7)
 
(569)
 
 
 
14
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
Summary of significant accounting policies (Continued)
 
Statement of comprehensive income / (operations)
 
March 31,
 2016
(Published)
 
Increase /
(Decrease)
 
March 31,
2016
(Adjusted)
Loss for the period 
 
(1,498)
 
(7)
 
(1,505)
Other comprehensive income for the period 
 
2,862
 
6
 
2,868
Total comprehensive income (loss) for the period
 
1,364
 
(1)
 
1,363
Attributable to:
 
 
 
 
 
 
Equity holders of the parent 
 
(228)
 
-
 
(228)
Non-controlling interest 
 
1,592
 
(1)
 
1,591
 
Statements of financial position (summary)
 
June 30,
 2016
(Published)
 
Increase /
(Decrease)
 
June 30,
2016
(Adjusted)
Biological assets                                                                            
 
1,132
 
(83)
 
1,049
Property, plant and equipment                                                                            
 
26,300
 
92
 
26,392
Deferred income tax assets                                                                            
 
1,658
 
(3)
 
1,655
Total Assets                                                                            
 
166,001
 
6
 
166,007
Retained earnings                                                                            
 
(1,390)
 
3
 
(1,387)
Cumulative translation adjustment                                                                            
 
808
 
-
 
808
Non-controlling interest                                                                            
 
14,211
 
3
 
14,214
Total Shareholders’ Equity                                                                            
 
15,232
 
6
 
15,238
 
2.3
Use of estimates
 
The preparation of financial statements at a certain date requires the Management of the Group 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 Unaudited Financial Statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the financial statements for the year ended as of June 30, 2016, as described in Note 5 to those financial statements.
 
 
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
Summary of significant accounting policies (Continued)
 
2.4
Comparability of information
 
Amounts as of June 30, 2016 and March 31, 2016 which are disclosed for comparative purposes have been taken from financial statements then ended, except for changes described in Note 2.2.1. Certain figures related to income from discontinued operations have been reclassified to render them comparable with figures of the current period.
 
As required by IFRS 3, the information of IDBD is included in the financial statements of the Group as from takeover was secured, that is from October 11, 2015 and the prior periods are not modified by this situation. Additionally, given the time difference in obtaining the results of IDBD mentioned in Note 2.1, the profit / (loss) for the nine-month period ended March 31, 2016 includes the profit / (loss) of that subsidiary for the period from October 11, 2015 to December 31, 2015, adjusted for significant transactions that took place between January 1, 2016 and March 31, 2016; therefore, the consolidated financial information as of March 31, 2016 is not comparable. Hence, the profit / (loss) for the interim period ended March 31, 2016 is not comparable with that of the current period.
 
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 and milk production tend to be more stable. However, beef cattle and milk 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.
 
 
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
3.
Seasonal effects on operations (Continued)
 
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 summer time 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 mall sales. Sale discounts at the end of each season also impact 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 operations of the Shufersal supermarket chain are subject to fluctuations of quarterly sales and income due to the increase in activity during religious holidays in different quarters throughout the year. For instance, in Pesaj (Passover) between March and April, and the Jewish New Year, sometime between September and October each year.
 
The results of operations of Cellcom and IDBD Tourism are also 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
 
Below are detailed the significant acquisitions and disposals for the nine-month period ended March 31, 2017 are detailed below. The significant acquisitions and disposals for the fiscal year ended June 30, 2016, are detailed in Note 3 to the Annual Financial Statements.
 
A.
Acquisition of equity interest in EHSA
 
On July 2016, the Group through IRSA Propiedades Comerciales acquired 20% of EHSA shares, a company of which it already owned 50%, and 1.25% of Entretenimiento Universal S.A. (“ENUSA”). The amount paid for the acquisition was Ps. 53. As a result of this, the Group holds 70% of the share capital and voting stock of EHSA. In addition, EHSA holds, both directly and indirectly, 100% of the shares of OGDEN Argentina S.A. (“OASA”) and 95% of the shares of ENUSA.
 
 
17
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
4.
Acquisitions and disposals (Continued)
 
Furthermore, OASA holds 50% of the voting stock of La Rural S.A. (“LRSA”), a company that holds the rights to commercially operate the emblematic "Predio Ferial de Palermo" in the Autonomous City of Buenos Aires, where the Sociedad Rural Argentina (“SRA”) holds the remaining 50%.
 
The Group is analyzing the allocation of the price paid across various net assets acquired; therefore, the information presented below is preliminary and subject to changes. The following chart shows the consideration paid, the fair value of the acquired assets, the assumed liabilities and the non-controlling interest as of the acquisition date:
 
 
Jul-16
Fair value of identifiable assets and assumed liabilities:
 
Investments in joint ventures                                                                                                           
123
Current trade and other receivables                                                                                                           
88
Borrowings                                                                                                           
(45)
Deferred income tax                                                                                                           
(7)
Income tax and minimum presumed income tax liabilities                                                                                                           
(1)
Trade and other payables                                                                                                           
(13)
Provisions                                                                                                           
(2)
Cash acquired                                                                                                           
7
Total net identifiable assets                                                                                                           
150
Non-controlling interest                                                                                                           
(45)
Goodwill                                                                                                           
23
Total                                                                                                           
128
 
 
Fair value of interest held before business combination                                                                                                           
(75)
Total consideration                                                                                                           
53
 
B.
Share-holding increase in Shufersal
 
On September 12, 2016, the Group through DIC, acquired 9,097,127 of Shufersal’s shares, so that the company’s equity interest in Shufersal’s share capital increased from approximately 53.89% to around 58.17%. In addition, on December 12, 2016 DIC repurchased 5.3 million shares of Shufersal for an amount of NIS 75 million (equal to Ps. 297 as of that date), thus increasing its equity interest to approximately 60.67%. Later, in March 2017, DIC sold 1.38% of its equity interest in Shufersal for an amount of NIS 50 million (approximately equivalent to Ps. 210 as of that date), as a consequence, its equity interest represents approximately 59.29% (Note 31).
 
 
18
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
4.
Acquisitions and disposals (Continued)
 
C.
Share-holding increase in DIC
 
On September 23, 2016 Tyrus acquired 8,888,888 of DIC’s shares from IDBD for a total amount of NIS 100 million (equivalent to Ps. 401 as of that date), which represent 8.8% of the Company’s outstanding shares at such date. That transaction did not generate actual cash movements in the financial statements.
 
During March 2017, IDBD exercised all of DIC’s Series 5 and 6 warrants for nearly NIS 210 million (approximately equivalent to Ps. 882 as of that date), thereby increasing its direct interest in DIC to nearly 70% of such company’s share capital as of that date. As a consequence, the Group held 79.47% of DIC as of March 31, 2017. As of the date of these financial statements, third parties unrelated to the group exercised warrants after March 31, 2017, as a result of which the interest in DIC equals 77.32%.
 
D.
Partial sale of equity interest in PBC
 
DIC sold 12% of its equity interest in PBC for a total amount of NIS 217 million (approximately equivalent to Ps. 810); as a result, DIC’s interest in PBC has declined to around 64.4%.
 
E.
Partial sale of equity interest in Gav Yam
 
On December 5, 2016, PBC sold 280,873 shares of its subsidiary Gav-Yam Land Corporation Ltd. for an amount of NIS 391 million (equivalent to Ps. 1,616 as of that date). As a result of this transaction, the equity interest of the Company has decreased from 69.06% to 55.06%.  
 
F.
Sale of Adama
 
On July 17, 2016 DIC has informed the market that it had accepted the tender offer by ChemChina to acquire 40% of Adama’s shares currently held by Koor, indirectly controlled by IDBD through DIC. In August 2016, Koor and a subsidiary of ChemChina executed the corresponding agreement. The price of the transaction included a payment in cash of US$ 230 million plus the total repayment of the non-recourse loan and its interests, which had been granted to Koor by a Chinese bank. Completion of the sale transaction was subject to several previous conditions, the most important of which referred to obtaining the regulatory authorizations in China, the approval of the antitrust authorities and the Chinese bank that granted the non-recourse loan as part of the loan assignment agreement. On November 22, 2016, the sale transaction was finalized and Koor received cash in the amount of US$ 230 million. The interest of the Company in the results of Adama and the finance costs related to the hybrid financial instrument are classified as discontinued operations in the Group’s Consolidated Statements of Income / (Operations) as from July 17, 2016 on a retroactive basis (Notes 33 and 34).
 
 
19
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
4.
Acquisitions and disposals (Continued)
 
G.
Negotiations between Israir and Sun D’or
 
On March 31, 2017 IDB Tourism was at an advanced stage of negotiations with Sun D’or International Airlines Ltd. (“Sun D’or”), a subsidiary of El Al Israel Airlines Ltd. (“EI AI”), which consists of:
 
●
Israir would sell the aircraft it owns through a sale and lease back agreement for an estimated value of US$ 70 million.
●
Following the sale of aircraft units, IDB Tourism would receive US$ 45 million plus 25% of Sun D’Or’s shares, with El Al retaining a 75% equity interest in such company.
●
The parties would enter into a shareholder agreement that would give El Al a call option (and a sale option to IDB Tourism) for the acquisition of Sun D’Or’s shares in accordance with a price and terms that will be established in due course.
 
As a consequence of this process, the Group’s financial statements as of March 31, 2017 present the investment in Israir as assets and liabilities held for sale, and a loss of nearly NIS 56 million (approximately equivalent to Ps. 231 as of December 31, 2016 when it was reclassified to discontinued operation), as a result of measuring these net assets at the estimated recoverable value.
 
It should be noted that as of the filing date of these financial statements the parties have not signed a memorandum of understanding and/or binding agreement regarding the transaction scheme and/or the transaction terms; and that should the transaction take place, it will be subject to the legally required approvals, including the approval from the Antitrust Commissioner. Insofar as an agreement be signed, the transaction is expected to be finalized by the end of 2017.
 
H.
Comparaencasa LTD
 
In January 2017, the Group acquired, through Tyrus, 69,750 shares which represent a 12.5% equity interest in Comparaencasa Ltd., a company registered in the United Kingdom engaged in the search, comparison and selection of products and/or services offered on the Internet, mainly car insurance and related products, for the Argentine Republic. The transaction price was US$ 1 million, which has already been fully paid. Additionally, Tyrus received warrants for the suscription of shares in future capital increases for up to US$ 1.5 million or 15% of its share capital, with a 35% discount, with a maturity of 5 years.
 
 
 
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
4.
Acquisitions and disposals (Continued)
 
I.
Condor
 
During January, Condor issued 150,540 new warrants in favor of RES with the right to one share each, at an exercise price of US$ 0.001 per share, maturing in January 2019. The new warrants replace the previous 3,750,000 warrants, which granted a right to one share each, at an exercise price of US$ 1.92, maturing on January 31, 2017. It should be noted that the new warrants cannot be exercised should the interest in Condor exceed 49,5% as a result of the exercise.
 
Additionally, the Group exercised the conversion right of 3,245,156 series D preferred shares (with a par value of US$ 10 each) held by RES, converting them into 20,282,225 common shares of Condor (with a par value of US$ 0.01 each), i.e., at the conversion price established of US$ 1.60 per share, which represents a total value of US$ 32.4 million. Besides, it received 487,738 series E preferred shares that can be converted into common shares at US$ 2.13 each as from February 28, 2019, and pay dividends on a quarterly basis at an annual rate of 6.25%. The Group is working on allocating the consideration received among Condor’s several identifiable net assets.
 
Meanwhile, during February, Condor’s Board of Directors approved a reverse stock split, consisting of 1 (one) common share for every 6.5 shares issued and outstanding, which was carried out after the market closing on March 15, 2017. The par value of the shares remained at US$ 0.01 each, while the conversion price of series E preferred shares became US$ 13.845 and the exercise price of the warrants became US$ 0.0065.
 
Subsequently, during March, Condor made a public offering of its shares, which resulted in the issuance of 4,772,500 new shares (including 622,500 additional shares for the exercise of one call option granted to the subscribers), at a price of US$ 10.50 each. The Group did not take part in it.
 
As a consequence of the events described above, as of March 31, 2017, the Group held 3,314,453 common shares of Condor representing roughly 28.7% of the Company’s share capital and voting rights. It also held 487,738 series E preferred shares, 23,160 warrants and a promissory note convertible into 97,269 common shares (at US$ 10.4 per share).
 
J.
Acquisition of farmland by our subsidiary Brasilagro
 
In February 2007, Brasilagro entered into a sale and lease agreement for a farmland property located in the municipality of São Raimundo das Mangabeiras, in the state of Maranhão. The sale agreement consists in the acquisition of 17,566 hectares, of which 10,000 are developed and productive lands that will be devoted to farming. The remaining 7,566 hectares consist of permanent conservation and legal reservation areas. The purchase price is Rs. 100.0 million (Rs. 10,000 per productive hectare), which will be paid in full upon fulfillment of certain prior conditions by sellers. The lease consists of 15,000 hectares of cultivable and developed land, already planted mostly with sugar cane. The agreement is valid for 15 years and renewable for another 15-years.
 
21
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
5.
Financial risk management and fair value estimates
 
5.1.
Financial risk
 
The Group's activities expose it to a variety of financial risk: market risk (including foreign currency risk, interest rate risk, indexing risk due to specific clauses and other price risk), credit risk, liquidity risk and capital risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.
 
Given the diversity of characteristics in the activities conducted under its operations center, the Group has decentralized the risk management policies geographically based on its two operations center in order to identify and properly analyze the various types of risks to which each of the subsidiaries is exposed.
 
These financial statements do not include all the information and disclosures of the risk management, so they should be read together with Note 4 to the Financial Statements as of June 30, 2016. There have been no changes in the risk management or risk management policies applied by the Group since the fiscal year-end.
 
5.2.
Fair value estimates
 
Since June 30, 2016, as of the date of these Unaudited Condensed Interim Consolidated Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets and liabilities (either measured at fair value or amortized cost). Neither have been transfers between the several tiers used in estimating the fair value of the Group’s financial instruments.
 
6.
Segment information
 
As explained in Note 6 to the Annual Financial Statements, since the Group obtained control over IDBD, the financial and net worth performance is reported separately in two centers of operations. Within the Operations center in Argentina, there have been no changes in the business segments or in the financial reporting criteria thereof. As part of the Operations Center in Israel – as stated in Notes 33 and 34 to these financial statements, Adama, Israir and Open Sky are presented within discontinued operations. Therefore, reclassifications have been made to the reportable segments. The Group has ceased to present the following segments as reportable: (i) Agrochemicals (Adama) and (ii) Tourism, previously included within other reportable segments.
 
 
 
22
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
Below is a summarized analysis of the lines of business of the Group for the nine-month period ended March 31, 2017:
 
 
Agricultural business
(I)
 
Urban properties and investments business
(II)
 
Total
 
 
Operations Center in Argentina
 
Operations Center in Israel
 
Subtotal
 
Revenues 
2,666
 
3,111
 
51,030
 
54,141
 
56,807
Costs 
(3,679)
 
(709)
 
(37,117)
 
(37,826)
 
(41,505)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,476
 
-
 
-
 
-
 
1,476
Changes in the net realizable value of agricultural products after harvest
(87)
 
-
 
-
 
-
 
(87)
Gross profit 
376
 
2,402
 
13,913
 
16,315
 
16,691
Gain from disposal of investment properties 
-
 
118
 
91
 
209
 
209
Gain from disposal of farmlands 
93
 
-
 
-
 
-
 
93
General and administrative expenses 
(287)
 
(502)
 
(2,346)
 
(2,848)
 
(3,135)
Selling expenses 
(365)
 
(259)
 
(9,993)
 
(10,252)
 
(10,617)
Management fees 
-
 
(52)
 
(63)
 
(115)
 
(115)
Other operating results, net 
100
 
(30)
 
(183)
 
(213)
 
(113)
(Loss) / Profit from operations  
(83)
 
1,677
 
1,419
 
3,096
 
3,013
Share of (loss) / profit of associates and joint ventures 
(2)
 
5
 
(155)
 
(150)
 
(152)
Segment (loss) / profit  
(85)
 
1,682
 
1,264
 
2,946
 
2,861
 
 
 
 
 
 
 
 
 
 
Reportable assets 
6,507
 
5,739
 
149,741
 
155,480
 
161,987
Reportable liabilities 
-
 
-
 
(131,403)
 
(131,403)
 
(131,403)
Net reportable assets 
6,507
 
5,739
 
18,338
 
24,077
 
30,584
 
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
Below is a summarized analysis of the lines of business of the Group for the nine-month period ended March 31, 2016:
 
 
Agricultural business
(I)
 
Urban properties and investments business
(II)
 
Total
 
 
Operations Center in Argentina
 
Operations Center in Israel
 
Subtotal
 
Revenues 
1,934
 
2,381
 
15,918
 
18,299
 
20,233
Costs 
(2,539)
 
(592)
 
(12,214)
 
(12,806)
 
(15,345)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,173
 
-
 
-
 
-
 
1,173
Changes in the net realizable value of agricultural products after harvest
131
 
-
 
-
 
-
 
131
Gross profit 
699
 
1,789
 
3,704
 
5,493
 
6,192
Gain from disposal of investment properties 
-
 
1,055
 
-
 
1,055
 
1,055
General and administrative expenses 
(197)
 
(392)
 
(420)
 
(812)
 
(1,009)
Selling expenses 
(235)
 
(188)
 
(2,352)
 
(2,540)
 
(2,775)
Other operating results, net 
20
 
110
 
(15)
 
95
 
115
Profit from operations  
287
 
2,374
 
917
 
3,291
 
3,578
Share of profit / (loss) of associates and joint ventures 
15
 
(606)
 
37
 
(569)
 
(554)
Segment profit  
302
 
1,768
 
954
 
2,722
 
3,024
 
 
 
 
 
 
 
 
 
 
Reportable assets 
4,637
 
4,866
 
123,362
 
128,228
 
132,865
Reportable liabilities 
-
 
-
 
(131,916)
 
(131,916)
 
(131,916)
Net reportable assets 
4,637
 
4,866
 
(8,554)
 
(3,688)
 
949
 
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
(I)
Agriculture line of business:
 
The following tables present the reportable segments of the agriculture line of business:
 
 
March 31, 2017
 
 
Agricultural production
 
Land
transformation
 and sales
 
Others
 
Total
Agricultural
 business
Revenues 
1,366
 
-
 
1,300
 
2,666
Costs 
(2,513)
 
(7)
 
(1,159)
 
(3,679)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,476
 
-
 
-
 
1,476
Changes in the net realizable value of agricultural products after harvest
(87)
 
-
 
-
 
(87)
Gross profit / (loss) 
242
 
(7)
 
141
 
376
Gain from disposal of farmlands 
-
 
93
 
-
 
93
General and administrative expenses 
(229)
 
(1)
 
(57)
 
(287)
Selling expenses 
(263)
 
-
 
(102)
 
(365)
Other operating results, net 
97
 
-
 
3
 
100
(Loss) / Profit from operations  
(153)
 
85
 
(15)
 
(83)
Share of profit / (loss) of associates 
11
 
-
 
(13)
 
(2)
Segment (loss) / profit  
(142)
 
85
 
(28)
 
(85)
 
 
 
 
 
 
 
 
Investment properties 
-
 
-
 
69
 
69
Property, plant and equipment 
4,245
 
14
 
117
 
4,376
Goodwill 
15
 
-
 
-
 
15
Biological assets 
1,626
 
-
 
-
 
1,626
Inventories 
199
 
-
 
183
 
382
Investments in associates 
43
 
-
 
(4)
 
39
Total operating assets 
6,128
 
14
 
365
 
6,507
 
 
March 31, 2016
 
 
Agricultural production
 
Land
transformation
 and sales
 
Others
 
Total
Agricultural
 business
Revenues 
1,069
 
-
 
865
 
1,934
Costs 
(1,781)
 
(7)
 
(751)
 
(2,539)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,173
 
-
 
-
 
1,173
Changes in the net realizable value of agricultural products after harvest
131
 
-
 
-
 
131
Gross profit / (loss) 
592
 
(7)
 
114
 
699
General and administrative expenses 
(164)
 
(1)
 
(32)
 
(197)
Selling expenses 
(170)
 
-
 
(65)
 
(235)
Other operating results, net 
17
 
-
 
3
 
20
Profit / (Loss) from Operations  
275
 
(8)
 
20
 
287
Share of profit / (loss) of associates 
17
 
-
 
(2)
 
15
Segment profit / (loss)  
292
 
(8)
 
18
 
302
 
 
 
 
 
 
 
 
Investment properties 
-
 
-
 
56
 
56
Property, plant and equipment 
2,861
 
13
 
39
 
2,913
Goodwill 
10
 
-
 
1
 
11
Biological assets 
1,263
 
-
 
2
 
1,265
Inventories 
226
 
-
 
121
 
347
Investments in associates 
45
 
-
 
-
 
45
Total operating assets 
4,405
 
13
 
219
 
4,637
 
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
(II)
Urban properties line of business and investments
 
The following tables present the reportable segments from the Operations Center in Argentina:
 
 
March 31, 2017
 
Shopping Malls
 
Offices and others
 
Sales and developments
 
Hotels
 
International
 
Financial operations
and others
 
Total
Revenues 
2,214
 
325
 
4
 
568
 
-
 
-
 
3,111
Costs 
(288)
 
(41)
 
(22)
 
(358)
 
-
 
-
 
(709)
Gross Profit / (Loss) 
1,926
 
284
 
(18)
 
210
 
-
 
-
 
2,402
Gain from disposal of investment properties 
-
 
-
 
118
 
-
 
-
 
-
 
118
General and administrative expenses 
(176)
 
(50)
 
(120)
 
(100)
 
(56)
 
-
 
(502)
Selling expenses 
(133)
 
(30)
 
(23)
 
(70)
 
-
 
(3)
 
(259)
Management fees 
(45)
 
(6)
 
-
 
(1)
 
-
 
-
 
(52)
Other operating results, net 
(36)
 
18
 
-
 
-
 
(10)
 
(2)
 
(30)
Profit / (Loss) from operations 
1,536
 
216
 
(43)
 
39
 
(66)
 
(5)
 
1,677
Share of Profit / (Loss) of associates and joint ventures
-
 
7
 
5
 
-
 
(76)
 
69
 
5
Segment Profit / (Loss) 
1,536
 
223
 
(38)
 
39
 
(142)
 
64
 
1,682
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment properties 
2,262
 
1,004
 
104
 
-
 
-
 
6
 
3,376
Property, plant and equipment 
48
 
28
 
3
 
164
 
2
 
-
 
245
Trading properties 
1
 
-
 
290
 
-
 
-
 
-
 
291
Goodwill 
8
 
31
 
5
 
-
 
-
 
-
 
44
Rights to receive future units under barter agreements
9
 
-
 
31
 
-
 
-
 
-
 
40
Inventories 
25
 
-
 
1
 
9
 
-
 
-
 
35
Investment in associates and joint ventures 
-
 
122
 
106
 
-
 
(441)
 
1,921
 
1,708
Total operating assets 
2,353
 
1,185
 
540
 
173
 
(439)
 
1,927
 
5,739
 
 
26
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
 
March 31, 2016
 
Shopping Malls
 
Offices and others
 
Sales and developments
 
Hotels
 
International
 
Financial operations
and others
 
Total
Revenues 
1,734
 
235
 
5
 
406
 
-
 
1
 
2,381
Costs 
(277)
 
(36)
 
(15)
 
(263)
 
-
 
(1)
 
(592)
Gross Profit / (Loss) 
1,457
 
199
 
(10)
 
143
 
-
 
-
 
1,789
Gain from disposal of investment properties
-
 
-
 
1,055
 
-
 
-
 
-
 
1,055
General and administrative expenses 
(122)
 
(38)
 
(92)
 
(75)
 
(65)
 
-
 
(392)
Selling expenses 
(96)
 
(27)
 
(15)
 
(49)
 
-
 
(1)
 
(188)
Other operating results, net 
(24)
 
(3)
 
(8)
 
(1)
 
143
 
3
 
110
Profit from operations 
1,215
 
131
 
930
 
18
 
78
 
2
 
2,374
Share of Profit / (Loss) of associates and joint ventures
-
 
10
 
6
 
-
 
(795)
 
173
 
(606)
Segment Profit / (Loss) 
1,215
 
141
 
936
 
18
 
(717)
 
175
 
1,768
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment properties 
2,359
 
888
 
171
 
-
 
-
 
6
 
3,424
Property, plant and equipment 
45
 
22
 
1
 
168
 
2
 
-
 
238
Trading properties 
1
 
-
 
188
 
-
 
-
 
-
 
189
Goodwill 
14
 
6
 
4
 
-
 
-
 
-
 
24
Rights to receive future units under barter agreements
-
 
-
 
90
 
-
 
-
 
-
 
90
Inventories 
19
 
-
 
1
 
8
 
-
 
-
 
28
Interests in associates and joint ventures 
-
 
26
 
62
 
-
 
(809)
 
1,594
 
873
Total operating assets 
2,438
 
942
 
517
 
176
 
(807)
 
1,600
 
4,866
 
 
27
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
The following table presents the reportable segments of the Operations Center in Israel:
 
 
March 31, 2017
 
Real Estate
 
Supermarkets
 
Telecommunications
 
Insurance
 
Others
 
Total
Revenues                                        
4,027
 
35,101
 
11,902
 
-
 
-
 
51,030
Costs                                        
(2,734)
 
(26,085)
 
(8,298)
 
-
 
-
 
(37,117)
Gross profit                                        
1,293
 
9,016
 
3,604
 
-
 
-
 
13,913
Gain from disposal of investment properties
-
 
-
 
-
 
-
 
91
 
91
General and administrative expenses
(214)
 
(478)
 
(1,194)
 
-
 
(460)
 
(2,346)
Selling expenses                                        
(72)
 
(7,339)
 
(2,582)
 
-
 
-
 
(9,993)
Management fees                                        
(30)
 
(33)
 
-
 
-
 
-
 
(63)
Other operating results, net                                        
76
 
(35)
 
(36)
 
-
 
(188)
 
(183)
Profit / (Loss) from operations 
1,053
 
1,131
 
(208)
 
-
 
(557)
 
1,419
Share of (Loss) / Profit of associates and joint ventures
(139)
 
8
 
-
 
-
 
(24)
 
(155)
Segment profit / (loss)                                        
914
 
1,139
 
(208)
 
-
 
(581)
 
1,264
 
 
 
 
 
 
 
 
 
 
 
 
Operating assets                                        
66,018
 
31,337
 
30,000
 
7,194
 
15,192
 
149,741
Operating liabilities                                        
(52,889)
 
(24,510)
 
(24,009)
 
-
 
(29,995)
 
(131,403)
 
13,129
 
6,827
 
5,991
 
7,194
 
(14,803)
 
18,338
 
 
 
March 31, 2016
 
Real Estate
 
Supermarkets
 
Telecommunications
 
Insurance
 
Others
 
Total
Revenues                                        
955
 
10,797
 
4,128
 
-
 
38
 
15,918
Costs                                        
(575)
 
(8,008)
 
(3,620)
 
-
 
(11)
 
(12,214)
Gross profit                                        
380
 
2,789
 
508
 
-
 
27
 
3,704
Gain from disposal of investment properties
 
 
 
 
 
 
-
 
 
 
-
General and administrative expenses
(67)
 
(119)
 
(230)
 
-
 
(4)
 
(420)
Selling expenses                                        
(15)
 
(1,699)
 
(597)
 
-
 
(41)
 
(2,352)
Other operating results, net                                        
-
 
-
 
(4)
 
-
 
(11)
 
(15)
Profit / (Loss) from operations 
298
 
971
 
(323)
 
-
 
(29)
 
917
Share of (loss) / profit of associates and joint ventures
(85)
 
70
 
-
 
-
 
52
 
37
Segment profit / (loss)                                        
213
 
1,041
 
(323)
 
-
 
23
 
954
 
 
 
 
 
 
 
 
 
 
 
 
Operating assets                                        
59,231
 
28,361
 
24,824
 
5,146
 
5,800
 
123,362
Operating liabilities                                        
(49,408)
 
(24,021)
 
(20,894)
 
-
 
(37,593)
 
(131,916)
 
9,823
 
4,340
 
3,930
 
5,146
 
(31,793)
 
(8,554)
 
 
28
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
The following tables present a reconciliation between the total results of operations as per the segment information and the profit from operation as per the statement of income. The adjustments relate to the presentation of the results of operations of joint ventures accounted for under the equity method under IFRS and the non-elimination of the inter-segment transactions.
 
 
March 31, 2017
 
Total
segment information
 
Adjustment for share of profit / (loss) of joint ventures
 
Expenses
and collective promotion funds
 
Adjustment to
income / (operations) for elimination of
 inter-segment transactions
 
Discontinued operations
 
Total
statement of income / (operations)
Revenues                                                 
56,807
 
(55)
 
1,090
 
(119)
 
-
 
57,723
Costs                                                 
(41,505)
 
55
 
(1,148)
 
113
 
-
 
(42,485)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,476
 
(8)
 
-
 
-
 
-
 
1,468
Changes in the net realizable value of agricultural products after harvest
(87)
 
-
 
-
 
-
 
-
 
(87)
Gross Profit / (Loss)                                                 
16,691
 
(8)
 
(58)
 
(6)
 
-
 
16,619
Gain from disposal of investment properties
209
 
-
 
-
 
-
 
-
 
209
Gain from disposal of farmlands                                                 
93
 
-
 
-
 
-
 
-
 
93
General and administrative expenses                                                 
(3,135)
 
6
 
-
 
6
 
-
 
(3,123)
Selling expenses                                                 
(10,617)
 
4
 
-
 
1
 
-
 
(10,612)
Management fees                                                 
(115)
 
-
 
-
 
-
 
-
 
(115)
Other operating results, net                                                 
(113)
 
(6)
 
-
 
-
 
-
 
(119)
Profit / (Loss) from operations before share of profit / (loss) of associates and joint ventures
3,013
 
(4)
 
(58)
 
1
 
-
 
2,952
Share of loss of associates and joint ventures
(152)
 
(11)
 
-
 
-
 
-
 
(163)
Profit / (Loss) from operations before financing and taxation 
2,861
 
(15)
 
(58)
 
1
 
-
 
2,789
 
 
29
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
 
March 31, 2016
 
Total
segment information
 
Adjustment for share of profit / (loss) of joint ventures
 
Expenses
and collective promotion funds
 
Adjustment to
income / (operations) for elimination of
 inter-segment transactions
 
Total
statements of income / (operations)
Revenues                                                   
20,233
 
(33)
 
888
 
(99)
 
20,989
Costs                                                   
(15,345)
 
49
 
(901)
 
85
 
(16,112)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,173
 
(23)
 
-
 
14
 
1,164
Changes in the net realizable value of agricultural products after harvest
131
 
-
 
-
 
-
 
131
Gross Profit / (Loss)                                                   
6,192
 
(7)
 
(13)
 
-
 
6,172
Gain from disposal of investment properties
1,055
 
-
 
-
 
-
 
1,055
General and administrative expenses                                                   
(1,009)
 
3
 
-
 
6
 
(1,000)
Selling expenses                                                   
(2,775)
 
4
 
-
 
1
 
(2,770)
Other operating results, net                                                   
115
 
(2)
 
-
 
(5)
 
108
Profit / (Loss) from operations before share of profit / (loss) of associates and joint ventures
3,578
 
(2)
 
(13)
 
2
 
3,565
Share of loss of associates and joint ventures
(554)
 
(5)
 
-
 
-
 
(559)
Profit / (Loss) from operations before financing and taxation 
3,024
 
(7)
 
(13)
 
2
 
3,006
 
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
6.
Segment information (Continued)
 
The following tables present a reconciliation between total assets and total assets as per the statement of financial position. Adjustments are mainly related to the filing of certain classes of assets in segment information and to the proportional consolidation of joint ventures mentioned previously.
 
 
March 31, 2017
 
March 31, 2016
 
Agricultural business
 
Urban properties and investments business
 
Total
 
Agricultural business
 
Urban properties and
investments business
 
Total
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
Total Assets per segment 
6,507
 
5,739
149,741
155,480
 
161,987
 
4,637
 
4,866
123,362
128,228
 
132,865
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportionate share in reportable assets per segment of joint ventures (*)
(729)
 
(147)
-
(147)
 
(876)
 
(616)
 
(119)
-
(119)
 
(735)
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in joint ventures (**) 
300
 
178
-
178
 
478
 
262
 
195
-
195
 
457
Discontinued operations 
-
 
-
2,688
2,688
 
2,688
 
-
 
-
12,586
12,586
 
12,586
Other non-reportable assets (***) 
3,311
 
8,033
-
8,033
 
11,344
 
3,399
 
15,631
-
15,631
 
19,030
Total Consolidated Assets as per Statement of Financial Position
9,389
 
13,803
152,429
166,232
 
175,621
 
7,682
 
20,573
135,948
156,521
 
164,203
 
 
31
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
6.
Segment information (Continued)
 
(*) Below is a detail of the proportionate share in assets by segment of joint ventures included in the information reported by segment.
 
 
March 31, 2017
 
March 31, 2016
 
Agricultural business
 
Urban properties and investments business
 
Total
 
Agricultural business
 
Urban properties and investments business
 
Total
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
Investment properties                                                      
1
 
150
-
150
 
151
 
2
 
118
-
118
 
120
Property, plant and equipment                                                      
726
 
(9)
-
(9)
 
717
 
576
 
(7)
-
(7)
 
569
Trading properties                                                      
-
 
4
-
4
 
4
 
-
 
1
-
1
 
1
Goodwill                                                      
-
 
2
-
2
 
2
 
-
 
6
-
6
 
6
Biological assets                                                      
-
 
-
-
-
 
-
 
31
 
-
-
-
 
31
Inventories                                                      
2
 
-
-
-
 
2
 
7
 
1
-
1
 
8
Total proportionate share in assets per segment of joint ventures
729
 
147
-
147
 
876
 
616
 
119
-
119
 
735
 
(**) 
Represents the equity-accounted amount of those joint ventures, which were proportionate-consolidated for segment information purposes.
(***) 
Includes deferred income tax asset, income tax and minimum presumed income tax receivables, trade and other receivables, investments in financial assets, cash and cash equivalents, and intangible assets except for right to receive future units under barter agreements, net of investment in associates with negative equity which are included in provisions in the amount of Ps. 999 and Ps. 817, as of March 31, 2017 and 2016, respectively.
 
 
March 31, 2017
 
March 31, 2016
 
Agricultural business
 
Urban properties and investments business
 
Total
 
Agricultural business
 
Urban properties and investments
business
 
Total
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
 
 
 
Operations Center in Argentina
Operations Center in
Israel
Subtotal
 
 
Total Liabilities per segment                                                      
-
 
-
131,403
131,403
 
131,403
 
-
 
-
131,916
131,916
 
131,916
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations                                                      
-
 
-
1,866
1,866
 
1,866
 
 
 
 
1,824
1,824
 
1,824
Liabilities corresponding to agricultural business and urban properties and investment business of the operations center in Argentina
6,667
 
14,411
 
14,411
 
21,078
 
5,442
 
15,289
-
15,289
 
20,731
Total Consolidated Liabilities as per Statement of Financial Position
6,667
 
14,411
133,269
147,680
 
154,347
 
5,442
 
15,289
133,740
149,029
 
154,471
 
 
32
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
7.
Information about principal subsidiaries
 
The Group conducts its business through several operating subsidiaries and holdings. The Group considers that the subsidiaries below are the ones with significant non-controlling interests to the Group.
 
 
As of March 31, 2017
 
Period ended March 31, 2017
 
Direct interest of parent company
%
 
Current assets
 
Non-current assets
 
Current liabilities
 
Non-current liabilities
 
Net assets
 
Book value of non-controlling shareholders
 
Revenues
 
 
Net Income / (loss)
 
Total comprehensive income / (loss)
 
Total comprehensive income (loss) attributable to
 non-controlling shareholders
 
Cash
of operating activities
 
Cash of investment activities
 
Cash of
financing
activities
 
Net increase / (decrease) in cash and cash equivalents
 
Dividends distributed to non-controlling shareholders
Elron (1) 
50.32%
 
1,627
 
1,082
 
128
 
12
 
2,569
 
1,932
 
-
 
(390)
 
(333)
 
(72)
 
(172)
 
194
 
(200)
 
(178)
 
(106)
PBC (1) 
64.44%
 
9,955
 
53,885
 
7,366
 
43,905
 
12,569
 
9,637
 
4,027
 
121
 
260
 
620
 
1,907
 
(1,511)
 
1,257
 
1,653
 
(202)
Cellcom (1) 
42.26%
 
12,383
 
15,748
 
7,994
 
15,381
 
4,756
 
3,398
 
11,902
 
(178)
 
(178)
 
(148)
 
2,109
 
(1,086)
 
1,138
 
2,161
 
-
Shufersal (1) 
58.17%
 
9,687
 
20,051
 
11,520
 
12,123
 
6,095
 
3,601
 
35,101
 
652
 
645
 
424
 
2,064
 
(1,577)
 
(996)
 
(509)
 
-
Brasilagro (1) 
42.86%
 
829
 
3,584
 
639
 
358
 
3,416
 
1,833
 
315
 
31
 
1,027
 
587
 
(43)
 
(73)
 
(66)
 
(182)
 
-
IRSA (1) 
63.77%
 
59,775
 
109,080
 
39,728
 
109,933
 
19,194
 
1,317
 
55,201
 
3,816
 
5,720
 
3,072
 
-
 
-
 
-
 
-
 
-
 
 
As of June 30, 2016
 
Period ended March 31, 2016
 
Direct interest of parent company
%
 
Current assets
 
Non-current assets
 
Current liabilities
 
Non-current liabilities
 
Net assets
 
Book value of non-controlling shareholders
 
Revenues
 
Net Income / (loss)
 
Total comprehensive Income / (loss)
 
Total comprehensive Income (loss)
attributable to
 non-controlling shareholders
 
Cash of
operating
activities
 
Cash of investment activities
 
Cash of
financing activities
 
Net increase / (decrease) in cash and cash equivalents
 
Dividends distributed to non-controlling shareholders
Elron (1) 
50.32%
 
2,145
 
922
 
82
 
31
 
2,954
 
2,522
 
89
 
(37)
 
(56)
 
(28)
 
(96)
 
4
 
7
 
(85)
 
-
PBC (1) 
76.45%
 
10,435
 
47,546
 
9,925
 
37,567
 
10,489
 
8,419
 
1,150
 
267
 
219
 
152
 
657
 
26
 
(768)
 
(85)
 
-
Cellcom (1) 
41.77%
 
9,368
 
16,113
 
7,629
 
13,210
 
4,642
 
3,795
 
3,913
 
145
 
141
 
96
 
783
 
30
 
(26)
 
787
 
-
Shufersal (1) 
52.95%
 
9,929
 
18,764
 
13,202
 
10,411
 
5,080
 
3,596
 
10,890
 
312
 
312
 
193
 
41
 
(1,265)
 
(364)
 
(1,588)
 
(4)
Brasilagro (1) 
48.18%
 
898
 
2,260
 
415
 
205
 
2,538
 
1,380
 
259
 
35
 
907
 
534
 
(176)
 
524
 
(341)
 
7
 
-
IRSA (1) 
63.77%
 
42,763
 
116,237
 
43,600
 
101,899
 
13,501
 
403
 
19,163
 
(1,039)
 
776
 
1,248
 
2,764
 
9,035
 
583
 
12,382
 
(28)
 
(1)
Corresponds to the Group's direct interest.
 
 
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
7.
Information about principal subsidiaries (Continued)
 
Restrictions, commitments and other relevant issues
 
Cellcom
 
As mentioned in Note 7 to the Annual Financial Statements, Cellcom was in dispute with Golan. In January, Cellcom withdrew the complaint against Golan thereby allowing the latter to be acquired by Electra. Additionally, Electra signed an agreement with Cellcom regarding the use of its network and hosting services. On the other hand, Cellcom agreed to provide Golan - on the effective day the agreement for the purchase of Golan by Electra - with a loan for NIS 130 million (approximately equivalent to Ps. 546) for a term of 10 years (which was delivered to a trustee), which shall be repaid in 6 semi-annual installments starting on the eight anniversary of the execution of the agreement. The loan will be backed by several assets of Golan. It is worth mentioning that the agreement regarding the use of the network and hosting services was approved by the ministry of telecommunications. The purchase of Golan by Electra was approved in April.
 
Analysis of the impact of the Concentration Law
 
As mentioned in Note 7 to the Annual Financial Statements as of June 30, 2016, IDBD is analyzing the implications of the Concentration Law. As of the date of these Unaudited Condensed Interim Consolidated Financial Statements, IDBD continues on this analysis process.
 
PBC and consulting agreement with Rock Real
 
In November 2009, PBC’s Audit Committee and Board of Directors approved the agreement with Rock Real whereby the latter would look for and propose to PBC the acquisition of commercial properties outside Israel, in addition to assisting in the negotiations and management of such properties. In return, Rock Real would receive 12% of the net income generated by the acquired real property. Pursuant to amendment 16 of the Israel Commercial Act 5759-1999, the agreement must be ratified by the Audit Committee before the third year after the effective date; otherwise, it expires. The agreement has not been ratified by the Audit Committee within such three-year term, so in January 2017, PBC issued a statement that hinted at the expiration of the agreement and informed that it would begin negotiations to reduce the debt that currently amounts to NIS 126 million (or Ps. 531).
 
Dolphin arbitration process
 
As mentioned in note 3.A to the Annual Financial Statements there is an arbitration process going on between Dolphin and ETH in relation to certain issues connected to the control obtainment of IDBD. In the arbitration process the parties have agreed to designate Eyal Rosovshy and Giora Erdinas to promote a mediation. As of the date of these financial statements, there are no other news in relation to the case and the proceeding is pending of resolution.
 
 
34
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
7.
Information about principal subsidiaries (Continued)
 
Reporting dividends by DIC
 
On March 22, 2017, DIC’s Board of Directors approved a distribution of dividends for NIS 4.5 per share, in two tranches, as follows: (i) NIS 3.3 per share (equivalent to Ps. 13.86 per share) payable on April 20, 2017, and (ii) NIS 1.2 per share (equivalent to Ps. 5.04 per share) payable on September 19, 2017, subject to a solvency test to be performed at the time of payment.
 
Contingent payment (Clal)
 
As stated in note 3.A.b) to the Annual Consolidated Financial Statements, Dolphin repurchased all the outstanding shares and warrants of IDBD held by non-controlling shareholders and moved on to delist the Company. In consideration for it, Dolphin paid a part in cash, took part in an issuance of IDBD’s debentures, which were delivered to the shareholders, and undertook to make a contingent payment related to the future sale of Clal. It is worth noting that, the obligation to make such contingent payment will only expire if the sale of a controlling interest is completed (more than 30% to a third party), or if Dolphin obtains the control permission from Clal. Dolphin assured the fulfillment of this commitment by restricting the shares of IDBD in its possession to 28% of said Company’s share capital.
 
8.
Investments in joint ventures
 
Changes in the Group’s investments in joint ventures for the nine-month period ended March 31, 2017 and for the year ended June 30, 2016 were as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year 
2,186
 
378
Decrease for the control obtainment 
(31)
 
-
Capital contribution 
109
 
77
Balance incorporated by business combination (Note 4) 
123
 
960
Share of (loss) / profit 
(44)
 
143
Currency translation adjustment 
191
 
645
Cash dividends (i) 
(42)
 
(17)
End of the period / year 
2,492
 
2,186
 
(i)
During the period ended March 31, 2017, Ps. 27 correspond to Manaman, Ps. 9 to La Rural S.A. and Ps. 7 to Cyrsa S.A.. During the fiscal year ended June 30, 2016, Ps. 7 correspond to Cyrsa, Ps. 4 to NPSF and Ps. 6 to Manaman.
 
35
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
8.
Investments in joint ventures (Continued)
 
The table below lists the Group's investments and the value of interests in joint ventures for the nine-month period ended March 31, 2017 and for the fiscal year ended June 30, 2016, respectively.
 
Name of the entity
Place of business / Country of incorporation
Main activity
Common shares 1 vote
Value of Group's interest in equity
 
Group's interest in comprehensive income
 
% of ownership interest held
 
Last financial statement issued
As of
March 31, 2017
As of
June 30,
2016
 
As of
March 31, 2017
As of
March 31, 2016
 
As of
March 31, 2017
As of
June 30,
2016
 
Share Capital
(nominal value)
Income (loss) for the period
Shareholders' equity
Quality 
Argentina
Real Estate
78,814,342
67
69
 
(3)
(6)
 
50%
50%
 
158
(6)
132
Cyrsa 
Argentina
Real Estate
8,748,270
12
18
 
2
6
 
50%
50%
 
17
3
24
La Rural 
Argentina
Organization of events
714,498
122
-
 
7
10
 
50%
N/A
 
1
12
(14)
Puerto Retiro (1) 
Argentina
Real Estate
23,067,250
62
59
 
(2)
(1)
 
50%
50%
 
46
(3)
37
Cresca S.A. (2) 
Paraguay
Agricultural
138,154
300
230
 
69
83
 
50%
50%
 
144
-
-
Mehadrin 
Israel
Agricultural
1,509,889
951
985
 
(34)
297
 
45.41%
45.41%
 
(*) 3
(*) 70
(*) 499
Others joint ventures (3)
 
 
 
978
825
 
108
249
 
N/A
N/A
 
N/A
N/A
N/A
 
 
 
 
2,492
2,186
 
147
638
 
 
 
 
 
 
 
 
(1)
Puerto Retiro owns a land reserve. As mentioned in Note 7 to the Annual Financial Statements as of June 30, 2016, Puerto Retiro has been notified that a petition for bankruptcy has been filed against it. On September 26, 2016, Puerto Retiro S.A. was notified of the ruling whereby the motion for cassation appeal filed was granted. The record of proceedings in appeal was compiled and remanded to the Federal Criminal Court of Appeals, which assigned the treatment of the appeal to the Division IV of such Court on September 30, 2016. On December 16, 2016, the cassation appeal was dismissed. The civil case continued its formal procedure and evidence for it is being currently produced. As to the criminal case, the hearing for oral and public debate has begun, as a result of which – albeit us not being parties to it – evidence is being produced with relation to the persons criminally accused. By virtue of the foregoing, it could be argued that there is a probability of succeeding in the matter exposed, albeit taking always into account that it is a complex issue exposed to more than one doctrinaire and case-law interpretation.
(2)
Cresca is a joint venture between the Company and Carlos Casado S.A. with agriculture operations in Paraguay.
(3)
Represent other joint ventures that are individually non-significant.
(*) Amounts presented in millions of NIS.
 
36
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
9.
Investments in associates
 
Changes in the Group’s investments in associates for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year 
13,507
 
2,653
Share-holding increase in associates 
962
 
157
Unrealized loss from investments at fair value 
-
 
(564)
Decrease for the control obtainment 
-
 
(1,047)
Associate incorporated by business combination 
-
 
8,308
Issuance of capital and contributions 
91
 
180
Share of profit 
75
 
310
Currency translation adjustment 
287
 
4,193
Cash dividends (ii) 
(169)
 
(518)
Sale of associates 
7
 
(4)
Hedging instruments 
56
 
(93)
Defined benefit plans 
(7)
 
(10)
Reclassification to held for sale (Note 4) 
(11,485)
 
-
Impairment 
-
 
(58)
End of the period / year (i) 
3,324
 
13,507
 
(i)
Includes a balance of Ps. (999) and Ps. (841) reflecting interests in associates with negative equity as of March 31, 2017 and June 30, 2016, respectively, which are reclassified to “Provisions” (Note 21).
(ii)
During the period ended March 31, 2017, Ps. 104 corresponds to Emco, Ps. 28 to Aviareps AG, Ps. 11 to Condor, Ps. 4 to Millenium and Ps. 21 to Agro-Uranga S.A. During the fiscal year ended June 30, 2016, Ps. 10 correspond to Millenium, Ps. 495 to Adama and Ps. 10 to Emco.
 
 
37
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
9.
Investments in associates (Continued)
 
The table below lists the Group’s investments, values of interests as well as the Group’s interest in comprehensive income of associates for the nine-month period ended March 31, 2017 and for the fiscal year ended June 30, 2016, respectively; as otherwise indicated below:
 
Name of the entity
Place of business / Country of incorporation
Main activity
Common shares 1 vote
Value of Group's
interest in equity
 
Group's interest in comprehensive income
 
% of ownership
interest held
 
Last financial statement issued
As of
March 31, 2017
As of
June 30,
2016
 
As of
March 31, 2017
As of
March 31, 2016
 
As of
March 31, 2017
As of
June 30,
2016
 
Share Capital
(nominal value)
Income / (loss)
for the period
Shareholders' equity
Tarshop 
Argentina
Consumer financing
48,759,288
79
72
 
7
(28)
 
20%
20%
 
244
96
474
New Lipstick 
United States
Real Estate
N/A
(999)
(793)
 
(206)
(388)
 
49.73%
49.73%
 
N/A
(*) (24)
(*) (159)
BHSA 
Argentina
Financing
448,689,072
1,658
1,609
 
48
196
 
29.91%
29.91%
 
(***) 1,500
 (***) 253
(***) 6,309
BACS (1) 
Argentina
Financing
7,812,500
174
21
 
15
4
 
37.72%
6.40%
 
(***) 88
(***) 8
(***) 434
IDBD 
Israel
Investment
N/A
-
-
 
-
(482)
 
N/A
49.00%
 
N/A
N/A
N/A
Condor 
United States
Hotel
3,314,453
551
(45)
 
108
(79)
 
28.72%
25.53%
 
(*) 23
(*) 12
(*) 68
Adama 
Israel
Agrochemical
-
-
10,847
 
 
3,633
 
N/A
40.00%
 
N/A
N/A
N/A
PBEL 
India
Real Estate
450,000
685
864
 
70
224
 
45.40%
45.40%
 
(**) 1
(**) (29)
(*) (523)
Others associates
 
 
 
1,176
932
 
131
828
 
N/A
N/A
 
N/A
N/A
N/A
 
 
 
 
3,324
13,507
 
173
3,908
 
 
 
 
 
 
 
 
(1)
On August 24, 2016, the BCRA approved the sale of BACS’ shares, representing 6.125% which had been subscribed by Tyrus. Additionally, on February 7, 2017, the BCRA approved the conversion of Convertible Notes for Ps. 100 million, mentioned in Note 3 to the Annual Financial Statements, in consideration of which IRSA received 25,313,251 additional shares from BACS. As a result of mentioned operations, as of March 31, 2017 the Group’s equity interest in BACS amounts to 37.72% of capital stock and votes; while BHSA holds the remaining 62.28%. The Group is working on the allocation of the consideration received among the different identifiable net assets of BACS.
(*) 
Amounts presented in millions of US dollars under USGAAP. Condor’s year-end falls on December 31, so the Group estimates their interest will a three-month lag, including any material adjustments, if any.
(**) 
Amounts presented in millions of NIS.
(***) 
The amounts correspond to the financial statements of BHSA and BACS, prepared in accordance with BCRA’ regulations. For the purpose of the valuation of the investment in the Company, the adjustments necessary to adequate the financial statements to IFRS have been considered.
 
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
10.
Investment properties
 
Changes in the Group’s investment properties for the nine-month period ended as of March 31, 2017 and for the year ended June 30, 2016 were as follows:
 
 
 
 
Leased out
farmland
 
 
 Rental properties (ii)
 
 
 Undeveloped parcels of land
 
Properties under development (iii)
 
Total as of
March 31,
2017
 
Total as of
June 30,
2016
Costs                                                  
14
 
45,729
 
2,485
 
3,978
 
52,160
 
5,295
Accumulated depreciation                                                  
(5)
 
(2,427)
 
(8)
 
-
 
(2,394)
 
(1,820)
Net book amount                                                  
9
 
43,302
 
2,477
 
3,978
 
49,766
 
3,475
 
 
 
 
 
 
 
 
 
 
 
 
Opening net book amount                                                  
9
 
43,302
 
2,477
 
3,978
 
49,766
 
3,475
Assets incorporated by business combination
 
 
 
 
 
 
 
 
 
 
29,586
Currency translation adjustment                                                  
10
 
2,966
 
118
 
205
 
3,299
 
16,762
Additions                                                  
4
 
930
 
25
 
1,238
 
2,197
 
1,190
Reclassification to trading properties                                                  
-
 
-
 
-
 
-
 
-
 
(71)
Transfers                                                  
-
 
2,670
 
(284)
 
(2,386)
 
-
 
-
Reclassification to property, plant and equipment
(8)
 
(9)
 
-
 
-
 
(17)
 
(13)
Reclassification of property, plant and equipment
56
 
-
 
-
 
-
 
56
 
-
Impairment                                                  
-
 
-
 
-
 
(61)
 
(61)
 
(339)
Disposals                                                  
-
 
(415)
 
-
 
-
 
(415)
 
(280)
Depreciation charges (i)                                                  
(3)
 
(823)
 
(12)
 
(4)
 
(842)
 
(544)
Closing net book amount                                                  
68
 
48,621
 
2,324
 
2,970
 
53,983
 
49,766
 
 
 
 
 
 
 
 
 
 
 
 
Costs                                                  
76
 
51,937
 
2,345
 
2,974
 
57,332
 
52,160
Accumulated depreciation                                                  
(8)
 
(3,316)
 
(21)
 
(4)
 
(3,349)
 
(2,394)
Net book amount                                                  
68
 
48,621
 
2,324
 
2,970
 
53,983
 
49,766
 
(i)
The charge resulting from the depreciation of investment property of continuing operations has been charged to the “Costs” line in the statement of income / (operations) (Note 26), while the remaining has been included in profit / (losses) from discontinued operations.
(ii)
Includes Distrito Arcos; there have been no news on the judicial proceedings mentioned in the annual financial statements.
(iii)
Includes Torre Catalinas; on November 16, 2016 IRSA entered into an agreement with DyCASA S.A., which started the works on November 29, 2016, expected to be completed by May 2019.
 
Change of the investment properties valuation model
 
Cresud’s Board of Directors decided to change the valuation model of investment properties from cost model to fair value model, as permitted by IFRS. The reason for this change in the valuation model is the need to adapt the values of investment properties to their fair value, given that their historical amortized cost does not reflect their current economic qualities. The Company intends to recognize the effects of such change in the financial statements of the fourth quarter of the current fiscal year (June 30, 2017). To assess the fair value of the investment properties, the Company has engaged the services of an independent expert appraiser.
 
 
39
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
10.
Investment properties (Continued)
 
The following amounts have been recognized in the Statement of Income / (Operations):
 
 
March 31,
2017
 
March 31,
2016
Leases and services income 
6,374
 
3,656
Direct operating expenses 
(2,851)
 
(1,764)
Development expenses 
(1,263)
 
(8)
Gain from disposal of investment properties 
209
 
1,055
 
No finance costs were capitalized during the nine-month periods ended March 31, 2017 and 2016.
 
 
11. 
Property, plant and equipment
 
Changes in the Group’s property, plant and equipment for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
Owner occupied farmland
 
Bearer plant
 
Buildings and facilities
 
Machinery
and equipment
 
Communication networks
 
Others (i)
 
Total as of
March 31,
2017
 
Total as of
June 30,
2016
Costs                                           
2,468
 
92
 
13,985
 
3,203
 
5,974
 
2,905
 
28,627
 
2,731
Accumulated depreciation                                           
(330)
 
-
 
(650)
 
(390)
 
(564)
 
(301)
 
(2,235)
 
(685)
Net book amount                                           
2,138
 
92
 
13,335
 
2,813
 
5,410
 
2,604
 
26,392
 
2,046
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Opening net book amount                                           
2,138
 
92
 
13,335
 
2,813
 
5,410
 
2,604
 
26,392
 
2,046
Assets incorporated by business combination
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,104
Currency translation adjustment                                           
582
 
23
 
805
 
167
 
318
 
129
 
2,024
 
9,217
Additions                                           
685
 
115
 
506
 
489
 
599
 
517
 
2,911
 
1,284
Reclassifications of investment properties
8
 
-
 
9
 
-
 
-
 
-
 
17
 
13
Reclassification to group of assets held for sale (Note 33)
-
 
-
 
(28)
 
(16)
 
-
 
(1,513)
 
(1,557)
 
-
Reclassifications to investment properties
(56)
 
-
 
-
 
-
 
-
 
-
 
(56)
 
-
Disposals                                           
(14)
 
(1)
 
(4)
 
(8)
 
(23)
 
(207)
 
(257)
 
(18)
Impairments                                           
-
 
-
 
32
 
-
 
-
 
-
 
32
 
(13)
Depreciation charge (ii)                                           
(50)
 
(23)
 
(459)
 
(416)
 
(803)
 
(361)
 
(2,112)
 
(1,241)
Closing net book amount                                           
3,293
 
206
 
14,196
 
3,029
 
5,501
 
1,169
 
27,394
 
26,392
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs                                           
3,673
 
229
 
15,349
 
3,918
 
6,950
 
1,741
 
31,860
 
28,572
Accumulated depreciation                                           
(380)
 
(23)
 
(1,153)
 
(889)
 
(1,449)
 
(572)
 
(4,466)
 
(2,180)
Net book amount                                           
3,293
 
206
 
14,196
 
3,029
 
5,501
 
1,169
 
27,394
 
26,392
 
(i)
Includes furniture and fixtures, vehicles and aircrafts which have been reclassified to held for sale (Note 4.G).
(ii) Depreciation charges of property, plant and equipment from continuing operations were included in "Costs", “General and administrative expenses” and "Selling expenses" in the Statement of Income / (Operations), while the remaining have been included in profit / (losses) from discontinued operations.
 
 
 
40
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
12.
Trading properties
 
Changes in the Group’s trading properties for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
Completed properties
 
Properties
under development
 
Undeveloped sites
 
Total as of
March 31,
2017
 
Total as of
June 30,
2016
Opening net book amount                                                   
236
 
3,307
 
1,170
 
4,713
 
133
Additions                                                   
2
 
689
 
30
 
721
 
355
Currency translation adjustment                                                   
43
 
181
 
40
 
264
 
1,650
Transfers                                                   
1,101
 
(687)
 
(414)
 
-
 
-
Reclassification of investment properties
-
 
-
 
-
 
-
 
71
Assets incorporated by business combination
-
 
-
 
-
 
-
 
2,656
Disposals                                                   
(577)
 
(693)
 
-
 
(1,270)
 
(152)
Closing net book amount                                                   
805
 
2,797
 
826
 
4,428
 
4,713
 
 
March 31,
2017
 
June 30,
2016
Non-current 
3,548
 
4,472
Current 
880
 
241
Total 
4,428
 
4,713
 
13. 
Intangible assets
 
Changes in the Group’s intangible assets for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
 
 
Goodwill
 
Trademarks
 
Licenses
 
Customer relations
 
Information systems
 and software
 
Contracts
and others
(ii) (iii)
 
Total as of
March 31,
2017
 
Total as of
June 30,
2016
Costs 
2,238
 
3,378
 
817
 
3,923
 
1,202
 
1,478
 
13,036
 
214
Accumulated depreciation 
-
 
(23)
 
(58)
 
(704)
 
(245)
 
(192)
 
(1,222)
 
(38)
Net book amount 
2,238
 
3,355
 
759
 
3,219
 
957
 
1,286
 
11,814
 
176
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Opening net book amount 
2,238
 
3,355
 
759
 
3,219
 
957
 
1,286
 
11,814
 
176
Assets incorporated by business combination
23
 
-
 
-
 
-
 
-
 
-
 
23
 
7,994
Currency translation adjustment 
138
 
200
 
41
 
146
 
67
 
57
 
649
 
4,499
Reclassification to assets held for sale (Note 33)
-
 
(81)
 
-
 
(36)
 
(20)
 
(44)
 
(181)
 
-
Additions 
-
 
-
 
-
 
-
 
456
 
7
 
463
 
137
Disposals 
-
 
-
 
-
 
-
 
-
 
(52)
 
(52)
 
(1)
Depreciation charge (i) 
-
 
(39)
 
(86)
 
(897)
 
(345)
 
(265)
 
(1,632)
 
(991)
Closing net book amount 
2,399
 
3,435
 
714
 
2,432
 
1,115
 
989
 
11,084
 
11,814
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost 
2,399
 
3,501
 
867
 
3,968
 
1,600
 
1,472
 
13,807
 
13,036
Accumulated depreciation 
-
 
(66)
 
(153)
 
(1,536)
 
(485)
 
(483)
 
(2,723)
 
(1,222)
Net book amount 
2,399
 
3,435
 
714
 
2,432
 
1,115
 
989
 
11,084
 
11,814
 
(i)
Depreciation charges of intangible assets from continuing operations are included in “General and administrative expenses” in the Statement of Income / (Operations) (Note 26), while the remaining have been included in profit / (losses) from discontinued operations. There are no impairment charges for any of the periods / years presented.
(ii)
Includes "Rights of use". Corresponds to Distrito Arcos.
(iii)
Includes "Rights to receive future units under barter agreements". Correspond to receivables in kind representing the right to receive residential apartments in the future by way of barter agreements. Caballito: on June 29, 2011, the Group and TGLT entered into a barter agreement in the amount of US$ 12.8 million. In 2013 a neighborhood association secured a preliminary injunction which suspended the works to be carried out by TGLT in the property and started a claim against GCBA and TGLT. As a consequence of the unfavorable rulings rendered by lower courts and appellate courts in the cited proceeding, the Group and TGLT reached a settlement agreement dated December 30, 2016, whereby they agree to provide a deed for the revocation of the barter agreement, after TGLT resolves certain issues. Consequently, the Group has decided to deregister the intangible asset related to this transaction, thus recognizing a loss of Ps. 27.7.
 
41
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
14.
Biological assets
 
Changes in the Group’s biological assets for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
Agricultural business
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year 
1,049
 
525
Purchases 
49
 
36
Initial recognition and changes in the fair value of biological assets (i)
1,409
 
1,614
Addition 
96
 
-
Decrease due to harvest 
(869)
 
(1,043)
Sales 
(152)
 
(141)
Consumes 
(2)
 
(2)
Currency translation adjustment 
46
 
60
End of the period / year 
1,626
 
1,049
 
(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. 183 and Ps. 267 for the nine-month periods ended March 31, 2017 and for the fiscal year ended June 30, 2016, respectively.
 
The following tables present the Group’s biological assets measured at fair value as of March 31, 2017 and June 30, 2016 and their allocation to the fair value hierarchy:
 
 
 
March 31, 2017
 
Classification
Level 1
 
Level 2
 
Level 3
 
Total
Dairy cattle 
Production
-
 
46
 
-
 
46
Breeding cattle 
Production
-
 
512
 
-
 
512
Other cattle 
Production
-
 
9
 
-
 
9
Others biological assets 
Production
10
(i)
-
 
-
 
10
Total non-current biological assets                                                   
 
10
 
567
 
-
 
577
Breeding cattle and cattle for sale 
Consumable
-
 
82
 
-
 
82
Other cattle 
Consumable
-
 
2
 
-
 
2
Sown land-crops 
Production
1
(i)
-
 
780
 
781
Sugarcane fields 
Production
-
 
-
 
184
 
184
Total current biological assets                                                   
 
1
 
84
 
964
 
1,049
Total biological assets                                                   
 
11
 
651
 
964
 
1,626
 
(i) 
Biological assets that have no significant growth, are valued at cost, since it is considered that this value is similar to fair value.
 
 
 
 
 
 
 
 
 
42
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
14.
Biological assets (Continued)
 
 
 
June 30, 2016
 
Classification
Level 1
 
Level 2
 
Level 3
 
Total
Dairy cattle 
Production
-
 
49
 
-
 
49
Breeding cattle 
Production
-
 
432
 
-
 
432
Other cattle 
Production
-
 
9
 
-
 
9
Others biological assets 
Production
7
(i)
-
 
-
 
7
Total non-current biological assets                                                   
 
7
 
490
 
-
 
497
Breeding cattle and cattle for sale 
Consumable
-
 
75
 
-
 
75
Sugarcane fields 
Production
-
 
-
 
97
 
97
Other cattle 
Consumable
-
 
2
 
-
 
2
Sown land-crops 
Production
23
 (i)
-
 
355
 
378
Total current biological assets                                                   
 
23
 
77
 
452
 
552
Total biological assets                                                   
 
30
 
567
 
452
 
1,049
 
(i) 
Biological assets that have no significant growth, are valued at cost, since it is considered that this value is similar to fair value.
 
During the nine-month period ended March 31, 2017 and the year ended June 30, 2016 there have been no transfers between the several tiers used in estimating the fair value of the Group’s biological assets, or reclassifications among their respective categories.
 
The fair value less estimated point of sale costs of agricultural produce at the point of harvest (which have been harvested during the period) amount to Ps. 929 and Ps. 1,097 for the period ended March 31, 2017 and for the year ended June 30, 2016, respectively.
 
The following table presents the changes in Group’s Level 3 biological assets for the nine-month period ended March 31, 2017 and for the year ended June 30, 2016:
 
Agricultural business
 
Sown land-crops with significant biological growth
 
Sugarcane fields
As of June 30, 2015 
40
 
60
Initial recognition and changes in the fair value of biological assets 
936
 
328
Harvest 
(670)
 
(295)
Foreign exchange gain 
49
 
4
As of June 30, 2016 
355
 
97
Initial recognition and changes in the fair value of biological assets 
1,059
 
186
Addition 
-
 
96
Harvest 
(654)
 
(216)
Foreign exchange loss 
20
 
21
As of March 31, 2017 
780
 
184
 
 
43
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
14.
Biological assets (Continued)
 
When no quoted prices are available in an active market, values are based on recognized valuation methods. The Company uses a range of valuation models for the measurement of Level 2 and Level 3 biological assets. The following table presents models and main parameters:
 
 
 
 
 
 
 
 
 
Sensitivity (i)
Description
 
Pricing model
 
Parameters
 
Range
 
Increase
 
Decrease
Cattle (Level 2)
 
Comparable market prices
 
Price per livestock head/kg and per category
 
 
 
 
 
 
Sown land-crops (Level 3)
 
Discounted cash flows
 
Yields – Operating costs –Selling expenses - Future of sale prices
 
Argentina
 
 
 
 
Yields: 0.50 - 32.00 tn./ha.
 
79
 
(79)
Future of sale prices: 262 - 10,465 Ps./tn.
 
120
 
(120)
Operating cost: 668 - 12,145 Ps./ha.
 
(70)
 
70
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazil:
 
 
 
 
 
 
 
 
 
 
Yields: 2.62 - 6.07 tn./ha.
 
46
 
(46)
 
 
 
 
 
 
Future of sale prices: 453 - 947 Rs./tn.
 
46
 
(46)
 
 
 
 
 
 
Operating cost: 129 - 172 Rs./ha.
 
(12)
 
12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bolivia:
 
 
 
 
 
 
 
 
 
 
Yields: 2.00 tn./ha.
 
3
 
(3)
 
 
 
 
 
 
Future of sale prices: 133 - 270 Ps./tn.
 
4
 
(4)
 
 
 
 
 
 
Operating cost: 55 - 62 Ps./ha.
 
(1)
 
1
 
 
 
 
 
 
 
 
 
 
 
Sugarcane fields (Level 3)
 
Discounted cash flows
 
Yields – Operating costs –Selling expenses - Future of sale prices
Discount rate
 
Brazil:
 
 
 
 
Yields: 60.29 tn./ha.
 
12
 
(12)
 
 
 
Future of sale prices: 84.87 Rs./tn.
 
49
 
(49)
 
 
 
Operating cost: 61.45 Rs./tn.
 
(27)
 
27
 
 
 
 
 
 
 
 
 
 
 
Bolivia:
 
 
 
 
 
 
 
Yields: 31 - 115 tn./ha.
 
3
 
(3)
 
 
 
Future of sale prices: 25 US$/tn.
 
5
 
(5)
 
 
 
Operating cost: 275 - 500 US$/ha.
 
(3)
 
3
 
(i)
Sensitivities have been modeled considering a 10% change in the indicated variable, all else being equal.
 
See information on valuation processes used by the entity in Note 14 to the Annual Financial Statements as of June 30, 2016 and 2015.
 
As of March 31, 2017 and June 30, 2016, the better and maximum use of biological assets shall not significantly differ from the current use.
 
 
44
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
15.
Inventories
 
Breakdown of Group’s inventories as of March 31, 2017 and June 30, 2016 are as follows:
 
 
March 31,
 2017
 
June 30,
 2016
Good for resale and supplies 
2,788
 
2,858
Crops 
136
 
325
Materials and supplies 
210
 
250
Seeds and fodders 
48
 
109
Beef 
28
 
31
Telephones and others communication equipment 
285
 
327
Total inventories 
3,495
 
3,900
 
As of March 31, 2017 and June 30, 2016 the cost of inventories recognized as expense amounted to Ps. 1,020 and Ps. 946, respectively and they have been included in “Costs” in the Statements of Income / (Operations).
 
 
45
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
16.
Financial instruments by category
 
Determining fair values
 
The following note shows the carrying amount of financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line item in the 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 about fair value hierarchy see Note 16 to the annual financial statements as of June 30, 2016. Financial assets and financial liabilities as of March 31, 2017 and June 30, 2016 were 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, 2017
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 17)
14,097
 
619
-
1,932
 
16,648
 
3,321
 
19,969
Investment in financial assets:
 
 
 
 
 
 
 
 
 
 
 
   - Equity securities in public companies 
-
 
1,527
-
110
 
1,637
 
-
 
1,637
   - Equity securities in private companies 
-
 
-
-
875
 
875
 
-
 
875
   - Deposits 
1,527
 
12
-
-
 
1,539
 
-
 
1,539
 - Bonds 
-
 
3,648
-
-
 
3,648
 
-
 
3,648
 - Mutual funds 
-
 
2,472
-
-
 
2,472
 
-
 
2,472
 - Others 
-
 
718
-
-
 
718
 
-
 
718
Derivative financial instruments: 
 
 
 
 
 
 
 
 
 
 
 
 - Crops futures 
-
 
58
-
-
 
58
 
-
 
58
 - Swaps 
-
 
-
8
-
 
8
 
-
 
8
 - Crops options 
-
 
11
-
-
 
11
 
-
 
11
 - Warrants 
-
 
-
24
-
 
24
 
-
 
24
 - Foreign-currency future contracts 
-
 
-
16
-
 
16
 
-
 
16
 - Foreign-currency options 
-
 
23
-
-
 
23
 
-
 
23
Financial assets held for sale 
-
 
7,194
-
-
 
7,194
 
-
 
7,194
Restricted assets 
939
 
-
-
-
 
939
 
-
 
939
Cash and cash equivalents: 
 
 
 
 
 
 
 
 
 
 
 
 - Cash on hand and at bank 
4,783
 
-
-
-
 
4,783
 
-
 
4,783
 - Short-term bank in deposits 
4
 
-
-
-
 
4
 
-
 
4
 - Mutual funds 
-
 
32
-
-
 
32
 
-
 
32
 - Short-term investments 
-
 
17,848
-
-
 
17,848
 
-
 
17,848
Total assets 
21,350
 
34,162
48
2,917
 
58,477
 
3,321
 
61,798
 
 
Financial liabilities at amortized cost
 
Financial liabilities
at fair value
 
Subtotal
financial liabilities
 
Non-financial liabilities
 
Total
 
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 20) 
18,553
 
-
-
-
 
18,553
 
2,602
 
21,155
Borrowings (excluding finance lease liabilities) (Note 22)
117,487
 
-
-
-
 
117,487
 
-
 
117,487
Finance lease obligations 
179
 
-
-
-
 
179
 
-
 
179
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Crops futures 
-
 
14
-
-
 
14
 
-
 
14
 - Forward contracts 
-
 
-
112
12
 
124
 
-
 
124
 - Foreign-currency future contracts 
-
 
3
-
-
 
3
 
-
 
3
 - Crops options 
-
 
2
-
-
 
2
 
-
 
2
Total liabilities 
136,219
 
19
112
12
 
136,362
 
2,602
 
138,964
 
 
46
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
16.
Financial instruments by category (Continued)
 
 
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
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 17)
13,211
 
101
-
1,931
 
15,243
 
2,879
 
18,122
Investment in financial assets:
 
 
 
 
 
 
 
 
 
 
 
   -Equity securities in public companies 
-
 
1,400
-
499
 
1,899
 
-
 
1,899
   -Equity securities in private companies 
-
 
-
15
1,324
 
1,339
 
-
 
1,339
   - Deposits 
1,172
 
49
-
-
 
1,221
 
-
 
1,221
 - Bonds 
121
 
4,169
-
-
 
4,290
 
-
 
4,290
 - Mutual funds 
-
 
2,920
-
-
 
2,920
 
-
 
2,920
 - Others 
-
 
90
-
140
 
230
 
-
 
230
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Crops options 
-
 
7
-
-
 
7
 
-
 
7
 - Foreign-currency options 
-
 
2
-
-
 
2
 
-
 
2
 - Foreign-currency future contracts 
-
 
-
25
-
 
25
 
-
 
25
 - Swaps 
-
 
-
4
-
 
4
 
-
 
4
 - Others 
-
 
7
16
-
 
23
 
-
 
23
Financial assets held for sale 
-
 
4,602
-
-
 
4,602
 
-
 
4,602
Restricted assets 
877
 
-
-
-
 
877
 
-
 
877
Cash and cash equivalents: 
 
 
 
 
 
 
 
 
 
 
 
   - Cash on hand and at bank 
6,359
 
-
-
-
 
6,359
 
-
 
6,359
   - Short term investments 
-
 
7,737
-
-
 
7,737
 
-
 
7,737
Total assets 
21,740
 
21,084
60
3,894
 
46,778
 
2,879
 
49,657
 
 
Financial liabilities at amortized cost
 
Financial liabilities
at fair value
 
Subtotal
financial liabilities
 
Non-financial liabilities
 
Total
 
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 20) 
18,917
 
-
-
-
 
18,917
 
1,054
 
19,971
Borrowings (excluding finance lease liabilities) (Note 22)
106,271
 
-
-
10,999
 
117,270
 
-
 
117,270
Finance lease obligations 
26
 
-
-
-
 
26
 
-
 
26
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Crops futures 
-
 
33
-
-
 
33
 
-
 
33
 - Forward contracts 
-
 
198
-
-
 
198
 
-
 
198
 - Foreign-currency future contracts 
-
 
28
3
-
 
31
 
-
 
31
 - Crops options 
-
 
5
-
-
 
5
 
-
 
5
 - Foreign-currency options 
-
 
1
-
-
 
1
 
-
 
1
Total liabilities 
125,214
 
265
3
10,999
 
136,481
 
1,054
 
137,535
 
 
 
47
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
16.
Financial instruments by category (Continued)
 
Clal
 
As mentioned in Note 16 to the Annual Financial Statements, IDBD is subject to a judicial process on the sale of its equity interest in Clal. It should be noted that the Group was obliged to sell the 10% interest in Clal. Clal appealed to the Israel Concentration Committee asking that the significant company status be reviewed and Dolphin also presented an appeal with the Supreme Court of Israel.
 
On April 5, 2017, the District Court of Tel Aviv-Jaffa ordered the Trustee of 51% of Clal’s shares to sell 5% of Clal’s shares managed by him/her within a term of 30 days, pursuant to the decision and the petition filed by the Commissioner.
 
The Court considered that the Commissioner acted fairly and proportionately in ordering such sale, that such sale should be made at the best possible price and that, after completing it, the Commissioner should use its discretionary power and examine the circumstances of the case in ordering any new sales.
 
On May 1, IDBD agreed to sell the 5% of Clal’s shares jointly with a swap transaction. Hence, the shares were sold on May 4 without any type of encumbrances, at a price of NIS 59.86 each (i.e., for a total of roughly NIS 166 million, equivalent to nearly Ps. 697). Such request had the consent of the Trustee and a statement from the Commissioner stating that such body does not object to the swap transaction.
 
Concurrently with the sale, IDBD entered into a swap transaction with a banking institution whereby the former will charge or pay for the difference between the sales value of the shares above described and the value such shares will have at the time they are sold to the third-party buyer upon the lapse of a 24-month period. IDBD cannot repurchase such shares.
 
IDBD continues to evaluate courses of action with regard to the District Court’s pronouncement, including the possibility to file a motion for appeal.
 
It is worth noting that IDBD expects the next 5% sale to occur in September 2017, as it understands that the new maturities start running again as from the first sale.
 
The following table presents the changes in Level 3 financial instruments for the nine-month period ended March 31, 2017 and the year ended June 30, 2016.
 
 
48
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
16.
Financial instruments by category (Continued)
 
The valuation models used by the Group for the measurement Level 2 and Level 3 instruments are no different from those used as of June 30, 2016. See Note 16 to the annual financial statements.
 
 
Investments in financial assets - Public companies securities
 
Investments in financial assets - Private companies securities
 
Investments in financial assets - Others
 
Derivative financial instruments - Warrants
of Condor
 
Derivative financial instruments - Forwards
 
Investment in associate IDBD
 
Derivative
financial instruments - Commitment
to tender offer shares in IDBD
 
Loans - Non-recourse loan
 
Trade and
other receivables (Cellcom)
 
Total
Balance as of June 30, 2015 
349
 
102
 
-
 
7
 
-
 
-
 
(501)
 
-
 
-
 
(43)
Additions and acquisitions 
50
 
27
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
77
Transfer to level 3 
-
 
-
 
-
 
-
 
-
 
1,529
 
-
 
(26)
 
-
 
1,503
Currency translation adjustment 
-
 
291
 
52
 
-
 
-
 
82
 
(18)
 
(3,608)
 
706
 
(2,495)
Obtainment of control over IDBD 
-
 
861
 
88
 
-
 
-
 
(1,047)
 
-
 
(7,336)
 
1,187
 
(6,247)
Disposal 
-
 
-
 
-
 
-
 
-
 
-
 
500
 
-
 
-
 
500
Gains and losses recognized in the year (i)
100
 
43
 
-
 
(7)
 
-
 
(564)
 
19
 
(29)
 
38
 
(400)
Balance as of June 30, 2016 
499
 
1,324
 
140
 
-
 
-
 
-
 
-
 
(10,999)
 
1,931
 
(7,105)
Additions and acquisitions 
94
 
39
 
-
 
-
 
(8)
 
-
 
-
 
-
 
1,069
 
1,194
Currency translation adjustment 
14
 
55
 
6
 
-
 
(4)
 
-
 
-
 
242
 
458
 
771
Reclassification to liabilities held for sale
-
 
-
 
(146)
 
-
 
-
 
-
 
-
 
-
 
-
 
(146)
Disposal 
(702)
 
-
 
-
 
-
 
66
 
-
 
-
 
11,272
 
(1,526)
 
9,110
Gains and losses recognized in the period (ii)
205
 
(543)
 
-
 
-
 
(66)
 
-
 
-
 
(515)
 
-
 
(919)
Balance as of March 31, 2017 
110
 
875
 
-
 
-
 
(12)
 
-
 
-
 
-
 
1,932
 
2,905
 
(i) 
As of June 30, 2016 includes Ps. (564) and Ps. 164 within Share of profit / (loss) from joint ventures and associates and within Financial results, net in the Statement of Income / (Operations), respectively.
(ii) 
Included within “Financial results, net” in the Statement of Income / (Operations).
 
 
49
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
16.
Financial instruments by category (Continued)
 
When no quoted prices are available in an active market, fair values (particularly derivatives) are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table:
 
 
 
 
 
 
 
 
 
 
Description
 
 
Pricing model / method
 
 
Parameters
 
Fair value
hierarchy
 
 
Range
Trade and other receivables - Cellcom
 
Discounted cash flows
 
Discount rate:
 
Level 3
 
3.3
Interest-rate swaps
 
Cash flows - theoretical price
 
Interest rate futures contract and cash flow forward contract.
 
Level 2
 
-
Preferred shares of Condor
 
Binomial tree - Theoretical price I
 
Underlying asset price (market price) and share price volatility (historical) and market interest rate (Libor curve).
 
Level 3
 
Price of underlying assets 1.8 to 2.2
Share price volatility 58% to 78%
Market interest-rate
1.7% to 2.1%
Promissory note
 
Discounted cash flows - Theoretical price
 
Market interest-rate (Libor rate curve).
 
Level 3
 
Market interest-rate
1.8% to 2.2%
Warrants of Condor
 
Black-Scholes – Theoretical price
 
Underlying asset price (market price) and share price volatility (historical) and market interest rate (Libor rate curve).
 
Level 2
 
Price of underlying assets 1.8 to 1.7
Share price volatility 58% to 78%
Market interest-rate
1.7% to 2.1%
Call option of Arcos
 
Discounted cash flows
 
Projected revenues and discounting rate.
 
Level 3
 
-
 
 
 
 
 
 
 
 
 
Investments in financial assets - Other private companies securities
 
Cash flows / NAV – Theoretical price
 
Projected revenue discounted at the discounting rate / The value is calculated in accordance with the company’s shares in the equity funds on the basis of its financial statements, based on fair value or investment assessments.
 
 
Level 3
 
1 - 3.5
Investments in financial assets - Others
 
Discounted cash flows – Theoretical price
 
Projected revenue discounted at the discounting rate / The value is calculated in accordance with the company’s shares in the equity funds on the basis of its financial statements, based on fair value or investment assessments.
 
 
Level 3
 
1 - 3.5
Derivative financial instruments - Forwards
 
Theoretical price
 
Price of underlying assets and volatility
 
Level 2 and 3
 
-
 
As of March 31, 2017, there are no changes in the economic or business conditions affecting the fair value of the group’s financial assets and liabilities.
 
 
 
50
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
17.
Trade and other receivables
 
The table below shows trade and other receivables of the Group as of March 31, 2017 and June 30, 2016:
 
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
Trade receivables
 
 
 
Trade, leases and services receivable 
2,057
 
2,015
Receivables from sale of agricultural products and agricultural properties
1
 
54
Less: allowance for doubtful accounts 
-
 
(2)
Total non-current trade receivables 
2,058
 
2,067
Other receivables
 
 
 
Tax credits 
217
 
119
Guarantee deposits 
35
 
24
Prepayments 
1,430
 
1,320
Loans 
945
 
239
Others 
54
 
4
Total non-current other receivables 
2,681
 
1,706
Total non-current trade and other receivables 
4,739
 
3,773
 
Current
 
 
 
Trade receivables
 
 
 
Trade, leases and services receivable 
11,385
 
11,067
Receivables from sale of agricultural products, agricultural properties and farmlands leases
13
 
384
Less: allowance for doubtful accounts 
(186)
 
(189)
Total current trade receivables 
11,212
 
11,262
Other receivables
 
 
 
Tax credits 
307
 
191
Prepayments 
1,367
 
1,009
Borrowings granted, deposits, and other balances 
1,691
 
1,243
Others 
467
 
453
Total current other receivables 
3,832
 
2,896
Total current trade and other receivables 
15,044
 
14,158
Total trade and other receivables 
19,783
 
17,931
 
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 2 of fair value hierarchy).
 
 
 
51
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
17.
Trade and other receivables (Continued)
 
The evolution of the Group’s provision for impairment of trade receivables were as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the year 
191
 
120
Recoveries 
(12)
 
(53)
Used during the period / year 
(212)
 
(4)
Additions 
167
 
113
Currency translation adjustment 
52
 
15
End of the period / year 
186
 
191
 
The addition and release of allowance for doubtful accounts have been included in “Selling expenses” in the Statement of Income / (Operations) (Note 26).
 
 
52
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
18.
Cash flow information
 
Following is a detailed description of cash flows generated by the Group’s operations for the nine-month periods ended as of March 31, 2017 and 2016.
 
 
 
March 31,
2017
 
March 31,
2016
Profit / (Loss) for the period 
 
3,515
 
(1,505)
Loss / (Profit) from discontinued operations 
 
(3,056)
 
168
Adjustments for:
 
 
 
 
Income tax expense 
 
(256)
 
(34)
Depreciation and amortization 
 
4,449
 
1,224
Gain from disposal of investment properties 
 
(209)
 
(1,055)
Gain from disposal of farmlands 
 
(93)
 
-
Loss / (Profit) on the revaluation of receivables arising from the sale of farmland
 
16
 
(10)
Loss from disposal of property, plant and equipment 
 
35
 
-
Release of investment property and property, plant and equipment  .
 
-
 
15
Dividends income 
 
-
 
(70)
Share based payments 
 
85
 
13
Unrealized gain on derivative financial instruments 
 
(104)
 
(1,112)
Changes in fair value of financial assets 
 
(81)
 
554
Release of intangible assets due to TGLT agreement 
 
27
 
-
Results for business combination 
 
(44)
 
-
Financial results, net 
 
2,576
 
4,933
Unrealized initial recognition and changes in fair value of biological assets and agricultural products at the point of harvest
 
(1,113)
 
(830)
Changes in the net realizable value of agricultural products after harvest
 
87
 
(131)
Provisions 
 
171
 
143
Share of loss of associates and joint ventures 
 
163
 
559
Gain from disposal of subsidiaries and joint ventures 
 
(6)
 
(4)
Loss from repurchase of Non-convertible Notes 
 
20
 
140
Other operating results 
 
(13)
 
(6)
 
Changes in operating assets and liabilities:
 
 
 
 
Decrease in biological assets 
 
714
 
169
Decrease in inventories 
 
531
 
425
Increase in trading properties 
 
451
 
1
Increase in trade and other receivables 
 
(1,194)
 
(247)
Increase in derivative financial instruments 
 
107
 
(24)
Increase in trade and other payables 
 
(119)
 
(33)
Decrease / (Increase) in employee benefits 
 
38
 
(22)
(Increase) / Decrease in provisions 
 
(96)
 
86
Net cash generated from continuing operating activities before income tax paid
 
6,601
 
3,347
Net cash generated from discontinued operating activities before income tax paid
 
234
 
110
Net cash generated from operating activities before income tax paid
 
6,835
 
3,457
 
 
 
53
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
18.
Cash flow information (Continued)
 
The following table shows a detail of non-cash transactions occurred during the nine-month periods ended as of March 31, 2017 and 2016:
 
 
March 31,
 2017
 
March 31,
 2016
Dividends not collected 
(8)
 
(1)
Payment of non-convertible notes through a decrease in trade and other receivables
-
 
(22)
Increase in intangible assets through an increase in trade and other payables
130
 
-
Increase in investment properties through an increase in trade and other payables
273
 
-
Increase in trade and other receivables through a decrease in property, plant and equipment
(10)
 
-
Increase in derivative financial instruments through a decrease in investments in financial assets
24
 
-
Decrease of treasury shares 
(7)
 
-
Distribution of dividends not yet paid 
22
 
-
Increase in tax credits through a decrease in investments in financial assets 
-
 
21
Increase in tax credits through a decrease in derivative financial instruments 
-
 
27
Increase in investment in financial assets through an increase in trade and other payables
-
 
180
Increase in investments in financial assets through a decrease in trade and other receivables
-
 
71
Decrease in investments in associates and joint ventures through a decrease in borrowings
-
 
10
Increase in trading properties through a decrease in investment properties 
-
 
16
Increase in property, plant and equipment through an increase in trade and other payables
(222)
 
-
Increase in trade and other receivables through the sale of shares of subsidiaries
-
 
81
Increase in interest in associates through a decrease in assets from derivative financial instruments
-
 
855
Increase in other assets through a decrease in investment in associates and joint ventures
-
 
2,706
Increase in interest in subsidiaries, associates and joint venture by exchange differences on translating foreign operations
(838)
 
-
 
 
 
54
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
18.
Cash flow information (Continued)
 
Balances incorporated as result of business combination / reclassification of assets and liabilities held for sale
 
 
March 31,
2017
 
March 31,
2016
Investment properties 
-
 
(28,726)
Property, plant and equipment 
1,581
 
(13,067)
Trading properties 
-
 
(2,564)
Intangible assets 
21
 
(1,287)
Investments in joint ventures and associates 
(86)
 
(9,043)
Deferred income tax 
49
 
2,660
Trade and other receivables 
750
 
(9,546)
Investment in financial assets 
-
 
(6,684)
Derivative financial instruments 
-
 
39
Inventories 
-
 
(1,822)
Restricted assets 
-
 
(250)
Income tax and minimum presumed income tax credits 
-
 
(91)
Assets held for sale 
-
 
(4,475)
Trade and other payables 
(987)
 
11,261
Payroll and social security liabilities 
(111)
 
794
Borrowings 
(657)
 
68,170
Provisions 
2
 
1,106
Income tax and minimum presumed income tax liabilities 
1
 
316
Employee benefits 
(45)
 
405
Net amount of non-cash assets incorporated / held for sale 
518
 
7,196
Cash and cash equivalents 
154
 
(9,193)
Non-controlling interest 
45
 
3,287
Goodwill not yet allocated 
(23)
 
(2,706)
Net amount of assets incorporated 
694
 
(1,416)
Interest held before acquisition 
31
 
1,416
Results from business combination 
44
 
-
Cash and cash equivalents incorporated / held for sale                                                                                               
(154)
 
9,193
Net outflow of cash and cash equivalents / assets and liabilities held for sale
615
 
9,193
 
 
55
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
19.
Shareholders’ Equity
 
The breakdown and explanation of shareholders’ equity has not changed from June 30, 2016, and should therefore be read in Note 27 to the Annual Financial Statements.
 
Group’s other reserves at March 31, 2017 and 2016 were as follows:
 
 
Cost of treasury shares
Changes in non-controlling interest
Reserve from cumulative translation adjustment
Reserve for
share based payments
Reserve for future dividends
Reserve for defined benefit plans
Hedging instruments
 
 
Other Reserves from Subsidiaries
Reserve for the acquisition of securities issued by the Company
Total
other
reserves
Balance as of June 30, 2016 
(32)
159
808
95
31
(6)
(24)
23
32
1,086
Adjustment due to change to accounting standards 
-
-
-
-
-
-
-
-
-
-
Balances adjusted as of June 30, 2016 
(32)
159
808
95
31
(6)
(24)
23
32
1,086
Other comprehensive income / (loss) for the period 
-
-
838
-
-
(18)
48
-
-
868
Total comprehensive income / (loss) for the period 
-
-
838
-
-
(18)
48
-
-
868
Appropriation of retained earnings resolved by Ordinary Shareholders’ Meeting held on October 31, 2016:
 
 
 
 
 
 
 
 
 
 
 - Share Distribution 
7
-
-
-
-
-
-
-
(7)
-
 - Release reserve for future dividends 
-
-
-
-
(31)
-
-
-
-
(31)
Equity settled compensation 
-
-
-
10
-
-
-
-
-
10
Equity incentive plan granted 
-
-
-
(5)
-
-
-
-
-
(5)
Changes in non-controlling interest 
-
(98)
-
-
-
-
-
-
-
(98)
Balance as of March 31, 2017 
(25)
61
1,646
100
-
(24)
24
23
25
1,830
 
 
 
56
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
19. Shareholders’ Equity (Continued)
 
 
Cost of treasury shares
Changes in non-controlling interest
Reserve for cumulative translation adjustment
Reserve for
share based compensation
Reserve for future dividends
Reserve for tender offer to non-controlling shareholders
Reserve for the acquisition of securities issued by the Company
 
 
Other Reserves from Subsidiaries
Total other reserves
Balance as of June 30, 2015 
(32)
54
463
82
-
-
32
-
599
Adjustment due to change to accounting standards 
-
-
(3)
-
-
-
-
-
(3)
Balances adjusted as of June 30, 2015 
(32)
54
460
82
-
-
32
-
596
Other comprehensive income / (loss) for the period 
-
-
703
-
-
-
8
(3)
708
Total comprehensive income / (loss) for the period 
-
-
703
-
-
-
8
(3)
708
Reserve for future dividends - Shareholders' meeting held 11.26.15 
-
-
-
-
31
-
-
-
31
Equity settled compensation 
-
-
-
13
-
-
-
-
13
Equity incentive plan granted 
-
-
-
(5)
-
-
-
-
(5)
Changes in non-controlling interest 
-
(243)
-
-
-
-
-
-
(243)
Reserve for tender offer to non-controlling shareholders 
-
-
-
-
-
(121)
-
-
(121)
Share of changes in subsidiaries’ equity 
-
-
-
-
-
-
26
-
26
Currency translation adjustment for interest held before business combination 
-
-
(91)
-
-
-
-
-
(91)
Balance as of March 31, 2016 
(32)
(189)
1,072
90
31
(121)
66
(3)
914
 
Dividends
 
On November 3, 2016, the Board of Directors of Cresud decided to carry out a pro rata distribution among those registered as existing shareholders as of November 16, 2016 of 3,833,352 Treasury shares, which represents 0.00774216906 shares per share. This amounts to 0.76415967% on the capital stock of Ps. 501,642,804 and a 0.774216906 % on the capital stock net of Treasury shares, starting on November 17, 2016.
 
57
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
20.
Trade and other payables
 
Group’s trade and other payables as of March 31, 2017 and June 30, 2016 were as follows:
 
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
Trade payables
 
 
 
Trade payables 
1,645
 
525
Total non-current trade payables 
1,645
 
525
Other payables
 
 
 
Deferred incomes 
60
 
65
Taxes payable 
6
 
8
Others 
1,416
 
930
Total non-current other payables 
1,482
 
1,003
Total non-current trade and other payables 
3,127
 
1,528
 
Current
 
 
 
Trade payables
 
 
 
Trade payables 
11,405
 
11,392
Accrued invoices 
804
 
612
Leases and services payments received in advance 
2,209
 
4,594
Total current trade payables 
14,418
 
16,598
Other payables
 
 
 
Taxes payable 
305
 
333
Dividends payable to non-controlling shareholders 
1,492
 
441
Others 
1,813
 
1,071
Total current other payables 
3,610
 
1,845
Total current trade and other payables 
18,028
 
18,443
Total trade and other payables 
21,155
 
19,971
 
 
 
58
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
21.
Provisions
 
The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:
 
 
Legal claims (i)
 
Investments
in associates
 and joint ventures (ii)
 
Sited dismantling
and remediation (iii)
 
Onerous contracts (iv)
 
Other provisions (v)
 
Total as of
March 31,
 2017
 
Total as of
June 30,
 2016
Beginning of the period / year
704
 
841
 
114
 
296
 
427
 
2,382
 
442
Additions 
188
 
220
 
-
 
21
 
78
 
507
 
264
Unused amounts reversed 
(83)
 
(83)
 
-
 
(114)
 
-
 
(280)
 
(70)
Used during the period / year 
(81)
 
-
 
-
 
-
 
(20)
 
(101)
 
-
Contributions in joint ventures and associates
-
 
-
 
-
 
-
 
-
 
-
 
(18)
Liabilities incorporated by business combination
2
 
-
 
-
 
-
 
-
 
2
 
969
Currency translation adjustment
41
 
21
 
7
 
9
 
46
 
124
 
795
End of the period / year 
771
 
999
 
121
 
212
 
531
 
2,634
 
2,382
 
 
March 31,
2017
 
June 30,
2016
Non-current                                                                                                          
1,545
 
1,341
Current                                                                                                          
1,089
 
1,041
Total                                                                                                          
2,634
 
2,382
 
(i)
Additions and recoveries are included in "Other operating results, net".
(ii)
Corresponds to the interest in New Lipstick and Condor with negative equity. Additions and recoveries are included in "Share of profit / (loss) of joint ventures and associates".
(iii)
The Group’s companies are required to recognize certain costs related to the dismantling of assets and remediating of sites from the places where such assets are located. The calculation of expenses are based on the dismantling value for the current year, taking into consideration the best estimate of future changes in prices, inflation, etc. and such costs are capitalized at a risk-free interest rate. Volume projections for retired or built assets are restated based on expected changes from technological rulings and requirements.
(iv)
Provisions for other contractual obligations include a series of obligations resulting from a contractual liability or laws, regarding which there is a high degree of uncertainty as to the terms and the necessary amounts to discharge such liability.
(v)
Includes a termination fee of a pre-acquisition contractual obligation between PBC and a real estate managing company with regard to the advisory services for one property. The Company is currently disputing the termination contractual fee; therefore, the final amount and the time of payment are uncertain.
 
As mentioned in Note 22 to the Annual Financial Statements, on February 23, 2016, a class action was filed against the Company, IRSA, some first-line managers and directors with the District Court of the United States for the Central District of California. The complaint, on behalf of people holding American Depositary Receipts of the Company between November 3, 2014 and December 30, 2015, claims presumed violations to the US federal securities laws. In addition, it argues that defendants have made material misrepresentations and made some omissions related to the Company’s investment in IDBD.
 
 
59
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.
      Provisions (Continued)
 
Such complaint was voluntarily waived on May 4, 2016 by the plaintiff and filed again on May 9, 2016 with the US District Court by the East District of Pennsylvania.
 
Furthermore, the Company and some of its first-line managers and directors are defendants in a class action filed on April 29, 2016 with the US District Court of the East District of Pennsylvania. The complaint, on behalf of people holding American Depositary Receipts of the Company between May 13, 2015 and December 30, 2015, claims violations to the US federal securities laws. In addition, it argues that defendants have made material misrepresentations and made some omissions related to the IRSA’s investment in IDBD.
 
Subsequently, the Company and IRSA requested that the complaint be moved to the district of New York, which request was granted.
 
On December 8, 2016, the Court appointed the representatives of each presumed class as primary plaintiffs and the lead legal advisor for each of the classes. On February 13, 2017, the plaintiffs of both classes filed a document containing certain amendments. The Company and IRSA filed a petition requesting that the class action brought by IRSA’s shareholders should be dismissed. On April 12, 2017, the court suspended the class action filed by the Company’s shareholders until the Court decides on the petition of dismissal of such class action. Such petition is expected to be decided soon by July 2017.
 
The Company holds that such allegations are meritless and will continue making a strong defense in both actions.
 
Dolphin
 
In September 2016, a former non-controlling shareholder of IDBD (the "Petitioner") filed a petition with the district court of Be'er Sheva against Dolphin Netherlands, IFISA and Mr. Eduardo Elsztain (jointly referred to as "Dolphin"), to initiate a claim under a collective action (the “Petition”). The Petitioner argues that in executing the modified tender offer of IDBH (a former controlling company of IDBD), as explained in note 3.A.b to the Annual Financial Statements, the non-controlling shareholders of IDBD, which voted against the modification of the tender offer, were forced to sell their shares at a value that differed from the value initially agreed upon and that, therefore, Dolphin should compensate them for an estimated amount of NIS 158 million (equivalent to Ps. 664). Dolphin should reply to the petition before September 7, 2017. Our legal advisors consider that the collective petition will probably be dismissed by the Court.
 
 
60
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
23.
Borrowings
 
Group’s borrowings as of March 31, 2017 and June 30, 2016 were as follows:
 
 
March 31,
2017
 
June 30,
 2016
Non-current
 
 
 
Non-convertible notes 
82,828
 
69,997
Bank loans and others 
7,852
 
6,737
Non-recourse loan 
6,409
 
16,975
Other borrowings 
300
 
99
Total non-current borrowings 
97,389
 
93,808
 
Current
 
 
 
Non-convertible notes 
16,127
 
15,595
Bank loans and others 
2,000
 
4,605
Bank overdrafts 
158
 
1,397
Other borrowings 
1,992
 
1,891
Total current borrowings 
20,277
 
23,488
Total borrowings 
117,666
 
117,296
 
Urban properties and investment business of the operations center in Argentina
 
● On September 1, 2016, Non-Convertible Notes Class VII and VIII were tendered under the Program approved by the Shareholders’ Meeting for up to US$ 300 million. The settlement took place on September 8, 2016. The results are shown below:
 
♦
Non-convertible notes Class VII for an amount of Ps. 384.2 to be matured 36 months after the issuing date, which accrue interest at an annual floating interest rate, Badlar plus 299 basis points, interest payable on a quarterly basis. Principal will be amortized in only one installment due on September 9, 2019.
 
♦
Non-convertible notes Class VIII for an amount of US$ 184.5 million (equivalent to Ps. 2,771) to be matured 36 months after the issuing date, paid in and payable in US Dollars, which will accrue interest at an annual fixed interest rate of 7.0%, interest payable on a quarterly basis. Principal will be amortized in only one installment due on September 9, 2019. 
 
● On February 20, 2017, IRSA signed a loan with a foreign banking institution for US$ 50 million maturing on February 23, 2022. The loan will accrue interest at a fixed interest rate of 5.95%, interest payable on a quarterly basis. There is one grace year for the principal which is subsequently amortized over 17 consecutive and equal installments.
 
 
61
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.            
Borrowings (Continued)
 
Urban properties and investment business of the operations center in Israel
 
● In July 2016, Shufersal repurchased NCN Series B for a nominal value of NIS 511 million (equivalents to Ps. 2,771 as of that date) with an increase of the issue of NCN Series F by a ratio of 1.175 for each NIS 1 of the Series B. The NCN Series B acquired by Shufersal were cancelled and delisted. The swap transaction does not amount to an exchange of debt instruments because the terms are not substantially different. All expenses related to the bond swap have been deducted from outstanding balance of the debt and shall be amortized over the remaining term of it.
 
● On August 2, 2016, lDBD has issued a new series of NCN in the Israeli market in an amount of NIS 325 million (equivalent to Ps. 1,213 as of that date) due in 2019, at an annual IPC (indexed interest rate) plus 4.25%. These NCN are secured by shares of Clal subject to the approval of the Israel Commission of Capital Markets, Savings and Insurance. On September 15, 2016, the Supreme Court rendered an opinion on the use of Clal’s shares as collateral and has requested the Capital Markets, Savings and Insurance Commission to explain the reasons why it does not allow IDBD to secure debentures with up to 5% of Clal shares. In January 2017, the Court ordered that IDBD should refrain from securing the debentures in excess of 5% of Clal’s shares, as they are already securing in part a loan by Menorha.
 
In accordance with the decision rendered by the Supreme Court on the petition filed by IDBD to pledge Clal’s shares in September, 2016, on October 13, 2016, the Board of Directors of IDBD resolved a partial early redemption of the debentures, which was effected on November 1, 2016 for an approximately amount of NIS 239 million at nominal value (“the redeemed portion”) and represents a total of approximately NIS 244 million with respect to principal, interest and compensation for early redemption. The early redemption represented 73.7% of the outstanding principal balance of the debentures.
 
In addition, IDBD issued debentures (Series L) for a total of NIS 381 million (equal to Ps. 1,565 as of that date). The debentures accrue interest at a rate of 6.95%. The principal will be repaid in a single payment on November 28, 2019. The first interest payment will be made on February 28, 2017 for the period spanning from the issue date to the payment date. The remaining interest payments will be made in 4 annual consecutive quarterly installments due in February, May, August and November each year. In order to ensure full compliance with all commitments, IDBD pledged DIC’s shares for nearly 46.2 million.
 
● On August 4, 2016, DIC issued further debentures due 2025 in an amount of NIS 360 million (equivalent to Ps. 1,344 as of that date). The bonds were placed at an internal rate of return of 5.70%.
 
 
62
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.
Borrowings (Continued)
 
● In October 2016, PBC issued debentures for NIS 102 million (equal to Ps. 417 as of that date), at an annual effective rate of 2.99% indexed to the CPI, and also issued debentures for roughly NIS 497 million (equal to Ps. 2,055 as of that date) at an effective rate of 4.10% with no CPI indexation clause.
 
● As mentioned in notes 1 and 23 to the Annual Financial Statements, IDBD had certain exemptions regarding compliance of its covenants. In March 2017, some restrictions and financial covenants were cancelled, and other restrictions have been dropped due to the advance payment of certain debts. The covenants valid to date provide that: (i) cash balance in cash and cash equivalents and financial assets should not be lower than the total reimbursements that IDBD intends to give to its financial creditors until the end of 2017 (excluding issued debentures); (ii) under the Corporations Act of Israel, the Company should not make any distributions until it has repaid all of its loans; and (iii) Mr. Eduardo Elsztain and/or related parties under his direct or indirect control should maintain a direct and/or indirect interest in IDBD of at least 51% of the share capital, and/or the company’s voting rights.
 
● In January 2017, IDBG received a loan from an Israeli financial entity in the amount of US$ 41.4 million. Principal will be reimbursed after the lapse of two years and shall accrue interest at 7%. The loan is backed by IDBD and PBC (jointly and severally). In addition, the due date has been extended to December 31, 2018 for a bank loan in the amount of US$ 59 million granted by a US bank to a subsidiary of IDBG (Great Wash Park LLC) which is building a shopping mall in Las Vegas, Nevada.
 
● On February 16, 2017, IDBD made a placement of Series 13 Debentures in the Israeli market for NIS 1,060 million (equivalent to Ps. 4,452 million as of that date), maturing in November 2019, at a fixed annual interest rate of 5.40%. Such debentures are collateralized by the potential cash flow that could derive from dividends or the sale of certain shares of Clal Insurance Enterprise Holdings Ltd., held by IDBD.
 
● In May 2012, IDBD was granted a loan from Menorah Group which accrues interest at a rate of 6.9% plus CPI. The loan was collateralized by a pledge over the shares of DIC and Clal Insurance Enterprise Holdings. The total loan amounts to nearly NIS 153 million (equivalent to Ps. 643 as of that date) and was collateralized by shares held by IDBD in DIC and Clal, which represent, respectively, roughly 15.3% and 4% of the share capital of such companies. In March 2017, IDBD reimbursed the loan balance plus a penalty for advance payment in the amount of NIS 154 million (equivalent to Ps. 647 as of that date). As a consequence thereof, the pledges held by the bank over DIC’s and Clal’s shares were dropped.
 
 
 
63
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.
Borrowings (Continued)
 
The breakdown of the borrowings of Operations Centers by Company as of March 31, 2017 and June 30, 2016 was as follows:
 
 
 
March 31, 2017
 
 
Agricultural business
 
Urban properties and investments business
 
 
 
 
 
 
 
Operations Center in Argentina
 
Operations Center in Israel
 
 
 
 
Debt
 
Cresud
BrasilAgro
Others
Subtotal
 
IRSA
IRSA CP
Others
Subtotal
Operations Center in Argentina
 
IDBD
DIC
Shufersal
Cellcom
PBC
Others
Subtotal
Operations Center in Israel
 
Subtotal
 
Total
Non-convertible notes                                
 
2,626
-
-
2,626
 
4,311
5,413
-
9,724
 
13,128
15,096
10,383
16,439
31,559
-
86,605
 
96,329
 
98,955
Bank loans and others                                
 
1,800
459
69
2,328
 
764
3
4
771
 
480
826
9
1,404
3,059
975
6,753
 
7,524
 
9,852
Non-recourse loan                                
 
-
-
-
-
 
-
-
-
-
 
-
-
-
-
6,409
-
6,409
 
6,409
 
6,409
Bank overdrafts                                
 
49
-
69
118
 
-
12
28
40
 
-
-
-
-
-
-
-
 
40
 
158
Other borrowings                                
 
-
316
-
316
 
8
10
188
206
 
-
-
-
-
1,770
-
1,770
 
1,976
 
2,292
Total debt                                
 
4,475
775
138
5,388
 
5,083
5,438
220
10,741
 
13,608
15,922
10,392
17,843
42,797
975
101,537
 
112,278
 
117,666
 
 
 
 
June 30, 2016
 
 
Agricultural business
 
Urban properties and investments business
 
 
 
 
 
 
 
Operations Center in Argentina
 
Operations Center in Israel
 
 
 
 
Debt
 
Cresud
BrasilAgro
Others
Subtotal
 
IRSA
IRSA CP
Others
Subtotal
Operations Center in Argentina
 
IDBD
DIC
Shufersal
Cellcom
PBC
Others
Subtotal
Operations Center in Israel
 
Subtotal
 
Total
Non-convertible notes                                
 
3,283
-
-
3,283
 
2,287
5,799
-
8,086
 
7,807
12,436
10,037
15,277
28,666
-
74,223
 
82,309
 
85,592
Bank loans and others                                
 
452
440
15
907
 
-
44
13
57
 
2,214
1,171
16
778
2,003
4,196
10,378
 
10,435
 
11,342
Non-recourse loan                                
 
-
-
-
-
 
-
-
-
-
 
-
 10,999
-
-
5,976
-
16,975
 
16,975
 
16,975
Bank overdrafts                                
 
114
-
47
161
 
859
40
45
944
 
-
-
-
-
-
292
292
 
1,236
 
1,397
Other borrowings                                
 
-
12
-
12
 
15
10
119
144
 
-
-
-
-
1,834
-
1,834
 
1,978
 
1,990
Total debt                                
 
3,849
452
62
4,363
 
3,161
5,893
177
9,231
 
10,021
24,606
10,053
16,055
38,479
4,488
103,702
 
112,933
 
117,296
 
 
 
64
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
Agricultural business
 
Company
 
Secured / Unsecured
 
Series
 
Currency
 
Rate
 
Adjustment factor
 
Payment date of principal
 
 
Interest Rate %
 
Capital nominal value in million Issue currency
 
Value as of
March 31,
2017
 
Value as of
June 30,
2016
Non-
Cresud
 
Unsecured
 
XIV
 
US$
 
Fixed
 
 
 
N/A
 
2018
 
1.50%
 
64
 
451
 
482
convertible
Cresud
 
Unsecured
 
XVI
 
US$
 
Fixed
 
N/A
 
2018
 
1.50%
 
218
 
1,339
 
1,446
notes
Cresud
 
Unsecured
 
XVIII
 
US$
 
Fixed
 
N/A
 
2019
 
4.00%
 
68
 
506
 
512
 
Cresud
 
Unsecured
 
XIX
 
Ps.
 
Fixed
 
N/A
 
2016
 
27.50%
 
187
 
-
 
189
 
Cresud
 
Unsecured
 
XX
 
US$
 
Fixed
 
N/A
 
2019
 
2.50%
 
36
 
-
 
123
 
Cresud
 
Unsecured
 
XXI
 
Ps.
 
Floating
 
N/A
 
2017
 
Badlar + 375 bp.
 
384
 
-
 
197
 
Cresud
 
Unsecured
 
XXII
 
US$
 
Fixed
 
N/A
 
2019
 
4.00%
 
44
 
330
 
334
Subtotal Non-convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,626
 
3,283
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank loans and others
Cresud
 
Unsecured
 
-
 
US$
 
Floating
 
N/A
 
2022
 
Libor + 300 BP or 6% (the higher)
 
30
 
179
 
200
 
Cresud
 
Unsecured
 
-
 
Ps.
 
Fixed
 
N/A
 
2016
 
15.01%
 
31
 
-
 
17
 
Cresud
 
Unsecured
 
-
 
Ps.
 
Floating
 
TEPF
 
2017
 
Rate Survey PF 30-59 days
 
40
 
3
 
11
 
Cresud
 
Unsecured
 
 
 
US$
 
Fixed
 
N/A
 
-
 
3.50%
 
15
 
-
 
225
 
Cresud
 
Secured
 
-
 
US$
 
Fixed
 
N/A
 
2020
 
10.75% - 7.14% to 14.5%
 
6
 
2
 
1
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
5.6%
 
40
 
604
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2.5%
 
3
 
46
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2%
 
10
 
154
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2.45%
 
20
 
308
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2.50%
 
2
 
31
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2.75%
 
18
 
277
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2.25%
 
5
 
77
 
-
 
Cresud
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
2%
 
8
 
120
 
-
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
TJLP
 
-
 
TJLP + 2.70-12.75%
 
-
 
47
 
7
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
TJLP
 
-
 
TJLP + 3.45 to 4.45 SELIC + 3.45
 
-
 
245
 
211
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
N/A
 
-
 
7.51 to 15.12
 
-
 
54
 
130
 
Brasilagro
 
Unsecured
 
-
 
Rs.
 
Fixed
 
N/A
 
-
 
6.92%
 
-
 
22
 
21
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
N/A
 
-
 
100% CDI
 
-
 
118
 
82
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
N/A
 
-
 
2.3% + 100% CAI
 
-
 
80
 
-
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Floating
 
N/A
 
-
 
3.49%
 
-
 
25
 
-
 
Brasilagro
 
Secured
 
-
 
Rs.
 
Fixed
 
N/A
 
-
 
Rs./Kg. 06462
 
-
 
184
 
-
 
Agropecuarias SC
 
Secured
 
-
 
Bol.
 
Fixed
 
N/A
 
-
 
6% annual
 
 
 
18
 
11
 
Agropecuarias SC
 
Secured
 
-
 
Bol.
 
Fixed
 
N/A
 
-
 
6%
 
-
 
1
 
-
 
FyO
 
Unsecured
 
-
 
US$
 
Fixed
 
N/A
 
-
 
3%
 
-
 
16
 
-
 
Carnes Pampeanas
 
Secured
 
-
 
Ps.
 
Floating
 
N/A
 
-
 
6% annual
 
-
 
21
 
3
 
Carnes Pampeanas
 
Secured
 
-
 
Ps.
 
Fixed
 
N/A
 
-
 
22.7%
 
-
 
12
 
-
Subtotal bank loans and others
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,644
 
919
Bank overdrafts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
118
 
161
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,388
 
4,363
 
         
 
65
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.
Borrowings (Continued)
 
Operations Center in Argentina
 
Company
 
Secured / Unsecured
 
Class / Series
 
Currency
 
Rate
 
Payment date of principal
 
Interest Rate %
 
Capital nominal value in million Issue currency
 
Value as of
March 31,
2017
 
Value as of
June 30,
2016
Non-convertible notes
IRSA CP
 
Unsecured
 
Class I
 
Ps.
 
Fixed / Floating
 
2017
 
Badlar + 4 bp.
 
407
 
-
 
409
 
IRSA CP
 
Unsecured
 
Class II
 
US$
 
Fixed
 
2023
 
8.75%
 
360
 
5,413
 
5,273
 
IRSA
 
Unsecured
 
Class I
 
US$
 
Fixed
 
2017
 
8.50%
 
75
 
-
 
1,159
 
IRSA
 
Unsecured
 
Class VII
 
Ps.
 
Floating
 
2019
 
Badlar + 299
 
384
 
387
 
-
 
IRSA
 
Unsecured
 
Class VIII
 
US$
 
Fixed
 
2019
 
7.0%
 
184
 
2,811
 
-
 
IRSA
 
Unsecured
 
Class VI
 
Ps.
 
Floating
 
2017
 
Badlar + 450bps
 
11
 
-
 
127
 
IRSA
 
Unsecured
 
Class V
 
Ps.
 
Floating
 
2015
 
Badlar + 395bps
 
-
 
-
 
-
 
IRSA
 
Unsecured
 
Class II
 
US$
 
Fixed
 
2020
 
11.50%
 
75
 
1,113
 
1,118
Total Non-convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,724
 
8,086
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank loans
IRSA
 
Secured
 
-
 
US$
 
Fixed
 
2020
 
3.2% to 14.3%
 
1
 
-
 
1
and others
IRSA
 
Unsecured
 
-
 
Ps.
 
Floating
 
2017
 
Badlar
 
15
 
8
 
14
 
IRSA
 
Unsecured
 
-
 
US$
 
Fixed
 
2020
 
5.95%
 
50
 
764
 
-
 
IRSA CP
 
Secured
 
-
 
US$
 
Fixed
 
2020
 
3.2% to 14.3%
 
-
 
3
 
5
 
IRSA CP
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2016
 
15.25%
 
1
 
-
 
1
 
IRSA CP
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2017
 
26.50%
 
7
 
3
 
7
 
IRSA CP
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2016
 
23%
 
36
 
-
 
36
 
IRSA CP
 
Unsecured
 
-
 
Ps.
 
Fixed / Floating
 
2016
 
Badlar / 8.50%
 
6
 
7
 
6
 
HASA
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2016
 
15.25%
 
6
 
-
 
6
 
LLAO LLAO
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2016
 
15.25%
 
1
 
-
 
1
 
NFSA
 
Unsecured
 
-
 
Ps.
 
Fixed
 
2016
 
24%
 
6
 
3
 
6
 
BNSA
 
Secured
 
-
 
Ps.
 
Floating
 
-
 
Libor
 
44
 
63
 
-
 
LIVECK
 
Secured
 
-
 
US$
 
Fixed
 
2017
 
-
 
2
 
36
 
35
 
LIVECK
 
Secured
 
-
 
US$
 
Fixed
 
-
 
3.50%
 
5
 
90
 
83
Total bank loans and others
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
977
 
201
Bank overdrafts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40
 
944
Subtotal Operations Center in Argentina
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,741
 
9,231
 
 
 
66
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
24. Borrowings (Continued)
Operations Center in Israel
 
Company
 
Secured /
Unsecured 
 
Series
 
Currency
 
Rate
 
Adjustment factor
 
Payment date of principal
 
Interest
Rate %
 
Capital nominal value in million issue currency
 
Value as of
March 31, 2017
 
 Value as of
June 30, 2016
Non-
IDBD
 
Unsecured
 
G
 
NIS
 
Fixed
 
CPI
 
2016 – 2018
 
4.50%
 
535
 
                            2,539
 
3,534
Convertible
IDBD
 
Unsecured
 
I
 
NIS
 
Fixed
 
CPI
 
2020 – 2025
 
4.95%
 
                           1,013
 
                            3,445
 
3,164
notes
IDBD
 
Unsecured
 
J
 
NIS
 
Fixed
 
N/A
 
2015 – 2018
 
6.60%
 
                             206
 
                               780
 
1,109
 
IDBD
 
Unsecured
 
K
 
NIS
 
Fixed
 
CPI
 
2019
 
4.84%
 
                               86
 
                                355
 
 -
 
IDBD
 
Secured
 
L
 
NIS
 
Fixed
 
N/A
 
2019
 
7.58%
 
                              767
 
                              1,577
 
 -
 
IDBD
 
Secured
 
L
 
NIS
 
Fixed
 
N/A
 
2019
 
7.58%
 
                          1,060
 
                           4,432
 
 -
 
DIC
 
Unsecured
 
D
 
NIS
 
Fixed
 
CPI
 
2012 – 2016
 
5.00%
 
                              103
 
                      -
 
510
 
DIC
 
Unsecured
 
F
 
NIS
 
Fixed
 
CPI
 
2017 – 2025
 
4.95%
 
                         3,022
 
                          12,408
 
9,427
 
DIC
 
Unsecured
 
G
 
NIS
 
Fixed
 
N/A
 
2012 – 2016
 
6.35%
 
                                  8
 
                                 33
 
31
 
DIC
 
Unsecured
 
H
 
NIS
 
Fixed
 
CPI
 
2014 – 2019
 
4.45%
 
                               93
 
                               434
 
541
 
DIC
 
Unsecured
 
I
 
NIS
 
Fixed
 
N/A
 
2010 – 2018
 
6.70%
 
                              513
 
                            2,221
 
1,927
 
Shufersal
 
Unsecured
 
B
 
NIS
 
Fixed
 
CPI
 
2015 – 2019
 
5.20%
 
                              142
 
                                776
 
5,161
 
Shufersal
 
Unsecured
 
C
 
NIS
 
Fixed
 
N/A
 
2010 – 2017
 
5.45%
 
                               114
 
                               495
 
459
 
Shufersal
 
Unsecured
 
D
 
NIS
 
Fixed
 
CPI
 
2014 – 2029
 
2.99%
 
                             384
 
                             1,548
 
1,584
 
Shufersal
 
Unsecured
 
E
 
NIS
 
Fixed
 
N/A
 
2014 – 2029
 
5.09%
 
                             827
 
                            3,563
 
1,580
 
Shufersal
 
Unsecured
 
F
 
NIS
 
Fixed
 
CPI
 
2020 – 2028
 
4.30%
 
                              918
 
                            4,001
 
1,253
 
Cellcom
 
Unsecured
 
B
 
NIS
 
Fixed
 
CPI
 
2013 – 2017
 
5.30%
 
                              185
 
                                957
 
880
 
Cellcom
 
Unsecured
 
D
 
NIS
 
Fixed
 
CPI
 
2013 – 2017
 
5.19%
 
                             300
 
                            1,499
 
2,865
 
Cellcom
 
Unsecured
 
E
 
NIS
 
Fixed
 
N/A
 
2012 – 2017
 
6.25%
 
                              164
 
                                718
 
673
 
Cellcom
 
Unsecured
 
F
 
NIS
 
Fixed
 
CPI
 
2017 – 2020
 
4.60%
 
                               715
 
                            3,214
 
3,032
 
Cellcom
 
Unsecured
 
G
 
NIS
 
Fixed
 
N/A
 
2017 – 2019
 
6.99%
 
                             285
 
                            1,282
 
1,230
 
Cellcom
 
Unsecured
 
H
 
NIS
 
Fixed
 
CPI
 
2018 – 2024
 
1.98%
 
                             950
 
                            3,746
 
3,483
 
Cellcom
 
Unsecured
 
I
 
NIS
 
Fixed
 
N/A
 
2018 – 2025
 
4.14%
 
                             804
 
                           3,344
 
3,114
 
Cellcom
 
Unsecured
 
J
 
NIS
 
Fixed
 
CPI
 
2021 – 2026
 
2.62%
 
                              103
 
                               425
 
 -
 
Cellcom
 
Unsecured
 
K
 
NIS
 
Fixed
 
N/A
 
2021 – 2026
 
3.75%
 
                             304
 
                             1,254
 
 -
 
PBC
 
Unsecured
 
C
 
NIS
 
Fixed
 
CPI
 
2009 – 2017
 
5%
 
                              275
 
                             1,395
 
2,666
 
PBC
 
Unsecured
 
D
 
NIS
 
Fixed
 
CPI
 
2020 – 2025
 
4.95%
 
                            1,317
 
                            6,952
 
6,641
 
PBC
 
Unsecured
 
F
 
NIS
 
Fixed
 
CPI
 
2015 – 2023
 
4.95%
 
                             866
 
                           3,909
 
4,195
 
PBC
 
Unsecured
 
G
 
NIS
 
Fixed
 
N/A
 
2015 – 2025
 
7.05%
 
                              595
 
                           2,822
 
3,054
 
PBC
 
Unsecured
 
H
 
NIS
 
Fixed
 
CPI
 
2018 – 2029
 
2.99%
 
                             204
 
                                418
 
 -
 
PBC
 
Unsecured
 
I
 
NIS
 
Fixed
 
N/A
 
2018 – 2029
 
4.10%
 
                          1,002
 
                            2,047
 
 -
 
PBC
 
Unsecured
 
Gav-Yam Series E
 
NIS
 
Fixed
 
CPI
 
2014 – 2018
 
4.55%
 
                             283
 
                            1,449
 
1,375
 
PBC
 
Unsecured
 
Gav-Yam Series F
 
NIS
 
Fixed
 
CPI
 
2021 – 2026
 
4.75%
 
                           1,585
 
                            9,073
 
8,535
 
PBC
 
Unsecured
 
Gav-Yam Series G
 
NIS
 
Fixed
 
N/A
 
2013 – 2017
 
6.41%
 
                              107
 
                               468
 
907
 
PBC
 
Unsecured
 
Ispro Series B
 
NIS
 
Fixed
 
CPI
 
2007 – 2021
 
5.40%
 
                              255
 
                             1,367
 
1,293
 
PBC
 
Unsecured
 
Gav-Yam Series A
 
NIS
 
Fixed
 
CPI
 
2017 - 2027
 
3.19%
 
                             400
 
                             1,659
 
-
Total Non-convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
              86,605
 
74,223
Bank loans
IDBD
 
Unsecured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2015 – 2018
 
Prime + 1.3%
 
                             250
 
                               233
 
1,117
 
IDBD
 
Unsecured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2015 – 2019
 
Prime + 1%
 
                                67
 
                                  74
 
265
 
IDBD
 
Unsecured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2015 – 2020
 
  Prime + 0.65%
 
                                50
 
                                173
 
198
 
IDBD
 
Secured (1)
 
-
 
NIS
 
Fixed
 
CPI
 
2015 – 2018
 
6.90%
 
                              150
 
                                   -
 
634
 
DIC
 
Unsecured
 
-
 
NIS
 
Fixed
 
N/A
 
2015 – 2017
 
5.39%
 
                                 -
 
                                  74
 
167
 
DIC
 
Unsecured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2015 – 2018
 
2.12%
 
                                 -
 
                               273
 
397
 
DIC
 
Unsecured
 
-
 
NIS
 
Fixed
 
N/A
 
2015 – 2018
 
5.90%
 
                                 -
 
                               244
 
311
 
DIC
 
Unsecured
 
-
 
NIS
 
Fixed
 
TIP
 
2015 – 2018
 
2.20%
 
                                 -
 
                               235
 
296
 
Shufersal
 
Secured
 
-
 
NIS
 
Fixed
 
CPI
 
2015 – 2017
 
4.95%
 
                                 -
 
                                    2
 
4
 
Shufersal
 
Secured
 
-
 
NIS
 
Fixed
 
CPI
 
2015 – 2017
 
4.95%
 
                                 -
 
                                    2
 
3
 
Shufersal
 
Secured
 
 
 
NIS
 
Fixed
 
CPI
 
2015 – 2017
 
4.75%
 
                                 -
 
                                     1
 
2
 
Shufersal
 
Secured
 
-
 
NIS
 
Fixed
 
CPI
 
2015 – 2017
 
4.40%
 
                                 -
 
                                     1
 
2
 
Shufersal
 
Secured
 
-
 
NIS
 
Fixed
 
IPC
 
2015 – 2017
 
3.25%
 
                                   1
 
                                    3
 
5
 
 
67
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
22.
Borrowings (Continued)
 
Operations Center in Israel
 
Company
 
Secured / Unsecured
 
Series
 
Currency
 
Rate
 
Adjustment factor
 
Payment date of principal
 
Interest Rate %
 
Capital nominal value in million Issue currency
 
Value as of March 31, 2017
 
Value as of June 30, 2016
 
PBC
 
Unsecured
 
-
 
NIS
 
Floating
 
CPI
 
2015 – 2020
 
1.970%
 
 -
 
                                139
 
                              154
 
PBC
 
Unsecured
 
-
 
NIS
 
Floating
 
CPI
 
2020
 
2.650%
 
 -
 
                               336
 
                               311
 
PBC
 
Unsecured
 
-
 
NIS
 
Fixed
 
N/A
 
2015 – 2020
 
3.070%
 
 -
 
                                  65
 
                                76
 
PBC
 
Unsecured
 
-
 
NIS
 
Fixed
 
N/A
 
2016
 
1.700%
 
 -
 
                                   -
 
                            1,176
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2011 – 2018
 
1.550%
 
 -
 
                                221
 
                             286
 
PBC
 
Unsecured
 
-
 
NIS
 
Floating
 
CPI
 
2002 – 2019
 
1.730%
 
 -
 
                               293
 
                             327
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2008 – 2016
 
1.950%
 
 -
 
                                   -
 
                               32
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2015 – 2023
 
1.870%
 
 -
 
                               427
 
                             409
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2014 – 2022
 
1.770%
 
 -
 
                               307
 
                             323
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2013 – 2021
 
1.870%
 
 -
 
                               202
 
                              219
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2015 – 2023
 
1.860%
 
 -
 
                                156
 
                              165
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2011 – 2019
 
1.260%
 
 -
 
                                   -
 
                              149
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2009 – 2017
 
1.800%
 
 -
 
                                   -
 
                               36
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2022
 
1.880%
 
 -
 
                               389
 
                             366
 
PBC
 
Secured
 
-
 
NIS
 
Fixed
 
N/A
 
2016 – 2016
 
1.260%
 
 -
 
                               248
 
                              156
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2015 – 2020
 
1.570%
 
 -
 
                                  76
 
                                85
 
PBC
 
Secured
 
-
 
NIS
 
Floating
 
CPI
 
2020
 
2.140%
 
 -
 
                               200
 
                              188
 
PBC
 
Unsecured
 
-
 
NIS
 
Floating
 
CPI
 
2009 – 2016
 
12.160%
 
 -
 
                                   -
 
                                 11
 
Bartan
 
Unsecured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2015 – 2022
 
2.35%
 
 -
 
                                    4
 
                                  8
 
Bartan
 
Secured
 
 
 
NIS
 
Floating
 
Prime interest rate
 
2022
 
2.89%
 
 -
 
                                   17
 
                                19
 
Bartan
 
Secured
 
-
 
NIS
 
Floating
 
Prime interest rate
 
2022
 
2.95%
 
 -
 
                                   17
 
                                16
 
IDB Tourism
 
Unsecured
 
-
 
US$
 
Floating
 
Libor interest rate
 
-
 
5.66%
 
 -
 
                                   -
 
                                 51
 
IDB Tourism
 
Unsecured
 
-
 
US$
 
Floating
 
Libor interest rate
 
2015 – 2018
 
5.21%
 
 -
 
                                   -
 
                              767
 
IDBG
 
Unsecured
 
-
 
US$
 
Floating
 
Libor interest rate
 
2015 - 2015
 
Libor + 5%
 
 -
 
                               937
 
                             869
 
Cellcom
 
Unsecured
 
-
 
NIS
 
Fixed
 
N/A
 
2016 - 2021
 
4.60%
 
                                   1
 
                               826
 
                              778
 
Cellcom
 
Unsecured
 
-
 
NIS
 
 
 
N/A
 
2018 - 2022
 
 4.90% 
 
                              140
 
                                578
 
                                 -
Total bank loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                6,753
 
             10,378
Bank overdrafts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                   - 
 
                             292
Non-recourse loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                           6,409
 
                         16,975
Other borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                             1,770
 
                          1,834
Total Operations Center in Israel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
              101,537
 
           103,702
 
 
(1)
Pertains to a loan with Menorah Group which is secured with a Clal and DIC's shares.
 
Borrowings fair value as of March 31, 2017 and June 30, 2016 amounts to ps. 118,760 (Ps. 3,630 corresponding to agricultural business, Ps. 11,670 to the Operation Center in Argentina and Ps. 103,460 to the Operation Center in Israel) and to Ps. 121,455 (Ps. 2,975 corresponding to agricultural business, Ps. 9,977 to Operation Center in Argentina and Ps. 108,503 to Operation Center in Israel).
 
68
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
23.
Taxation
 
The details of the provision for the Group’s income tax is as follows:
 
 
March 31,
2017
 
March 31,
2016
Current income tax
(777)
 
(425)
Deferred income tax
1,033
 
460
MPIT
-
 
(1)
Income tax
256
 
34
 
The statutory tax rate in the countries where the Group operates for all of the periods presented are:
 
Tax jurisdiction
 
Income tax rate
Argentina
 
35%
Brazil
 
between 25% - 34%
Uruguay
 
between 0% - 25%
Bolivia
 
25%
United States
 
between 0% - 45%
Bermudas
 
0%
Israel
 
24% (i)
 
(i) In December 2016, the Israeli government modified the income tax rate thus generating a reduction from the 25% to 24% for 2016 and 2017 calendar years, and to 23% for 2018 calendar year onwards. The change of interest rate for fiscal year 2016 became effective on December 29, 2016. The effect from the rate change is recorded as part of deferred tax expense.
 
Below is a reconciliation between the income tax recognized and that which would result of applying the prevailing tax rate, applicable in the respective countries, on the income/loss before income tax for the nine-month periods ended March 31, 2017 and 2016:
 
 
March 31,
2017
 
March 31,
2016
Tax calculated at the tax rates applicable to profits in the respective countries
(115)
 
(137)
Permanent differences:
 
 
 
Share of profit / (loss) of associates and joint ventures
438
 
(47)
Unrecognized tax losses
(364)
 
(172)
Non-taxable income / (loss)
(356)
 
395
Rate change
492
 
(1)
Others
161
 
(4)
Income tax from continuing operations
256
 
34
 
 
69
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
23. Taxation (Continued)
 
No charges have been reported for tax associated to discontinued operations.
 
The gross movements on the deferred income tax account were as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year
(6,007)
 
501
Currency translation adjustment
(799)
 
(2,225)
Reserve for changes in non-controlling interest
-
 
(88)
Reclassification to liabilities held for sale
241
 
-
Reimbursement / (Impairment) of tax loss carry forwards
17
 
(366)
Charged / Credited to the Statements of Income/(Operations)
1,033
 
852
Business combinations
(7)
 
(4,681)
End of the period / year
(5,522)
 
(6,007)
 
 
25.
Revenues
 
 
March 31,
2017
 
March 31,
2016
Sale of trading properties
1,233
 
160
Crops
738
 
670
Cattle
107
 
74
Dairy
67
 
44
Sugarcane
241
 
187
Supplies
79
 
59
Beef
983
 
667
Sale of communication equipment
3,052
 
1,172
Revenue from supermarkets
35,101
 
10,797
Sales revenues
41,601
 
13,830
Consignment revenues
190
 
59
Rental and service incomes
6,361
 
3,634
Income from hotel services
603
 
443
Income from communication services
8,850
 
2,956
Agricultural rental and services
13
 
22
Advertising and brokerage fees
69
 
40
Others
36
 
5
Services income
16,122
 
7,159
Total revenues
57,723
 
20,989
 
70
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
26.
Costs
 
 
March 31,
2017
 
March 31,
2016
Other operative costs
7
 
7
Cost of property operations
7
 
7
Crops
1,645
 
1,137
Cattle
294
 
198
Dairy
136
 
94
Sugarcane
369
 
309
Supplies
58
 
48
Brokerage costs
60
 
40
Beef
899
 
559
Agricultural rental and services
5
 
13
Consignment costs
9
 
4
Commissions
7
 
8
Others
37
 
7
Costs of agricultural sales and services
3,519
 
2,417
Costs of leases and services
2,833
 
1,776
Costs of trading properties and developments
1,263
 
11
Costs of sale of communication equipment
2,086
 
846
Costs of communication services
6,211
 
2,774
Costs from hotel operations and tourism services
481
 
273
Costs of supermarkets
26,085
 
8,008
Total costs
42,485
 
16,112
 
 
 
71
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
27.
Expenses by nature
 
The Group discloses expenses in the statement of income by function of as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.
 
The following tables provide the additional required disclosure of expenses by nature and their relationship to the function within the Group.
 
For the nine-month period ended as of March 31, 2017:
 
 
Group costs
 
 
 
 
 
 
 
Cost of
agricultural sales and services
 
Cost of agriculture production
 
Other agricultural operative costs
 
Cost of leases and services
 
Cost of trading properties and developments
 
Cost of sale of communication equipment
 
Cost of communication services
 
Costs from hotel operations and tourism services
 
Cost of supermarkets
 
Total
costs
 
General and administrative expenses
 
Selling expenses
 
Total
Leases, services charges and vacant property costs
26
 
2
 
-
 
21
 
2
 
-
 
-
 
1
 
-
 
52
 
25
 
7
 
84
Depreciation and amortization
34
 
51
 
2
 
848
 
-
 
-
 
1,313
 
27
 
164
 
2,439
 
423
 
1,587
 
4,449
Doubtful accounts
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
34
 
103
 
137
Advertising, publicity and other selling expenses
-
 
-
 
-
 
219
 
-
 
-
 
-
 
-
 
-
 
219
 
-
 
1,152
 
1,371
Taxes, rates and contributions
4
 
12
 
-
 
163
 
4
 
-
 
-
 
-
 
-
 
183
 
20
 
608
 
811
Maintenance and repairs
19
 
26
 
-
 
993
 
9
 
-
 
-
 
102
 
-
 
1,149
 
63
 
516
 
1,728
Fees and payments for services
98
 
6
 
-
 
88
 
1
 
-
 
1,189
 
15
 
-
 
1,397
 
512
 
1,271
 
3,180
Director´s fees
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
172
 
-
 
172
Payroll and social security liabilities
145
 
83
 
4
 
496
 
1
 
-
 
702
 
254
 
1,104
 
2,789
 
1,236
 
3,974
 
7,999
Cost of sale of goods and services
-
 
-
 
-
 
-
 
1,246
 
2,086
 
31
 
-
 
24,817
 
28,180
 
-
 
-
 
28,180
Food, beverage and other lodging expenses
-
 
-
 
-
 
-
 
-
 
-
 
-
 
63
 
-
 
63
 
4
 
-
 
67
Changes in biological assets and agricultural products
921
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
921
 
-
 
-
 
921
Supplies and labors
950
 
1,081
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
2,031
 
-
 
2
 
2,033
Freights
1
 
19
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
20
 
-
 
186
 
206
Bank commissions and expenses
9
 
1
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
10
 
6
 
4
 
20
Conditioning and clearance
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
35
 
35
Travel, library expenses and stationery
5
 
10
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
15
 
6
 
1
 
22
Export expenses
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
1
 
1
Others
16
 
-
 
1
 
5
 
-
 
-
 
2,976
 
19
 
-
 
3,017
 
622
 
1,165
 
4,804
Total expenses by nature
2,228
 
1,291
 
7
 
2,833
 
1,263
 
2,086
 
6,211
 
481
 
26,085
 
42,485
 
3,123
 
10,612
 
56,220
 
 
72
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
28.
Expenses by nature (Continued)
 
For the nine-month period ended as of March 31, 2016:
 
 
Group costs
 
 
 
 
 
 
 
Cost of agricultural sales and services
 
Cost of agriculture production
 
Other agricultural operative costs
 
Cost of property operations
 
Cost of trading properties and developments
 
Cost from hotel operations and tourism services
 
Cost of supermarkets
 
Cost of communication services
 
                                                    Cost of sale of communication equipment
 
Total
costs
 
General and administrative expenses
 
Selling expenses
 
Total
Leases, services charges and vacant property costs
10
 
-
 
-
 
20
 
1
 
-
 
-
 
330
 
-
 
331
 
26
 
373
 
730
Depreciation and amortization
35
 
14
 
2
 
404
 
-
 
8
 
152
 
441
 
7
 
1,063
 
41
 
120
 
1,224
Doubtful accounts
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
22
 
22
Advertising, publicity and other selling expenses
-
 
-
 
-
 
233
 
-
 
-
 
-
 
30
 
-
 
263
 
-
 
154
 
417
Taxes, rates and contributions
2
 
9
 
-
 
160
 
2
 
-
 
-
 
-
 
-
 
173
 
16
 
282
 
471
Maintenance and repairs
14
 
11
 
1
 
456
 
6
 
37
 
-
 
122
 
-
 
647
 
44
 
159
 
850
Fees and payments for services
78
 
4
 
1
 
6
 
-
 
11
 
-
 
1,102
 
-
 
1,202
 
157
 
101
 
1,460
Director´s fees
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
148
 
-
 
148
Payroll and social security liabilities
100
 
61
 
3
 
392
 
1
 
156
 
297
 
582
 
7
 
1,603
 
400
 
983
 
2,986
Cost of sale of goods and services
-
 
-
 
-
 
96
 
1
 
-
 
7,467
 
-
 
828
 
8,392
 
-
 
-
 
8,392
Food, beverage and other lodging expenses
-
 
-
 
-
 
-
 
-
 
31
 
-
 
-
 
-
 
31
 
-
 
-
 
31
Changes in biological assets and agricultural products
1,248
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
1,248
 
-
 
1
 
1,249
Supplies and labors
2
 
788
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
790
 
-
 
-
 
790
Freights 
1
 
10
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
11
 
-
 
96
 
107
Bank commissions and expenses
6
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
6
 
5
 
2
 
13
Conditioning and clearance
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
21
 
21
Travel and library expenses
7
 
9
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
16
 
4
 
-
 
20
Export expenses
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
25
 
25
Others
8
 
-
 
-
 
9
 
-
 
30
 
92
 
167
 
4
 
336
 
159
 
431
 
926
Total expenses by nature
1,511
 
906
 
7
 
1,776
 
11
 
273
 
8,008
 
2,774
 
846
 
16,112
 
1,000
 
2,770
 
19,882
 
 
73
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
28.
Other operating results, net
 
 
March 31,
2017
 
March 31,
2016
Gain from commodity derivative financial instruments
111
 
21
Gain from disposal of interest in associates
6
 
4
Loss from agreement with TGLT
(27)
 
-
Reversal of currency translation adjustment (ii)
-
 
148
Gain from revaluation of equity interest held before business combination
44
 
-
Contingencies (i)
(28)
 
(55)
Donations
(80)
 
(29)
Others
(145)
 
19
Total other operating results, net
(119)
 
108
 
(i)
Including legal costs and expenses.
(ii)
Pertains to the reversal of the currency translation adjustment generated in IDBD and Rigby following the partial repayment of principal of the company (Note 32 to the annual financial statements).
 
29.
Financial results, net
 
 
March 31,
2017
 
March 31,
2016
Financial income
 
 
 
Interest income
649
 
33
Foreign exchange gains
98
 
690
Dividends income
53
 
70
Other financial income
7
 
-
Financial income
807
 
793
Financial costs
 
 
 
Interest expenses
(5,042)
 
(1,553)
Foreign exchange losses
(404)
 
(3,780)
Other finance costs
(475)
 
(276)
Total financial costs
(5,921)
 
(5,609)
Other financial results:
 
 
 
Fair value gain / (loss) of financial assets and liabilities at fair value through profit or loss
2,391
 
(565)
Gain from repurchase of NCN
(20)
 
(140)
Gain from derivative financial instruments (except commodities)
173
 
1,134
(Loss) / Gain on the revaluation of receivables arising from the sale of farmland
(16)
 
10
Total other financial results
2,528
 
439
Total financial results, net
(2,586)
 
(4,377)
 
 
74
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
30.
Related party transactions
 
See description of the main transactions carried out with related parties in Note 35 to the Annual Consolidated Financial Statements as of June 30, 2016.
 
The following is a summary of the balances with related parties as of March 31, 2017:
 
Related party
 
Description of transaction
 
Non-current Investment in financial assets
 
Non-current Derivative financial instruments
 
Non-current Trade and other receivables
 
Current
Trade and other receivables
 
Non-current Trade and other payables
 
Current
Trade and other payables
 
Current Borrowings
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tarshop S.A.
 
Leases and/or rights of use
 
-
 
-
 
-
 
-
 
-
 
-
 
-
New Lipstick
 
Reimbursement of expenses
 
-
 
-
 
-
 
4
 
-
 
-
 
-
Condor
 
Dividends receivables
 
-
 
-
 
-
 
7
 
-
 
-
 
-
 
 
Warrants
 
-
 
24
 
-
 
-
 
-
 
-
 
-
 
 
Equity securities in public companies
 
110
 
-
 
-
 
-
 
-
 
-
 
-
Lipstick
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Manibil
 
Contributions to be paid in
 
-
 
-
 
77
 
1
 
-
 
-
 
-
Agro-Uranga S.A.
 
Dividends receivables
 
-
 
-
 
-
 
9
 
-
 
-
 
-
Agrofy
 
Other receivables
 
-
 
-
 
-
 
11
 
-
 
-
 
-
BHSA
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
(1)
 
-
 
Borrowings
 
-
 
-
 
-
 
-
 
-
 
-
 
(3)
 
 
Leases and/or rights of use
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Total Associates
 
 
 
110
 
24
 
77
 
35
 
-
 
(1)
 
(3)
 
 
75
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
29. Related party transactions (Continued)
 
Related party
 
Description of transaction
 
Non-current Investment in financial assets
 
Non-current Derivative financial instruments
 
Non-current Trade and other receivables
 
Current
Trade and other receivables
 
Non-current Trade and other payables
 
Current
Trade and other payables
 
Current Borrowings
Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cresca S.A.
 
Loans granted
 
-
 
-
 
177
 
-
 
-
 
-
 
-
NPSF
 
Borrowings
 
-
 
-
 
-
 
-
 
-
 
-
 
(7)
 
Share based payments
 
-
 
-
 
-
 
1
 
-
 
-
 
-
 
Management fees
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Quality
 
Management fees
 
-
 
-
 
-
 
4
 
-
 
-
 
-
Mehadrin
 
Commissions
 
-
 
-
 
-
 
-
 
-
 
(12)
 
-
Cyrsa
 
Credit due to capital reduction
 
-
 
-
 
-
 
3
 
-
 
-
 
-
 
 
Borrowings
 
-
 
-
 
-
 
-
 
-
 
-
 
(8)
Total Joint Ventures
 
 
 
-
 
-
 
177
 
9
 
-
 
(12)
 
(15)
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAMSA
 
Reimbursement of expenses
 
-
 
-
 
-
 
9
 
-
 
(3)
 
-
 
 
Management fees
 
-
 
-
 
-
 
-
 
-
 
(22)
 
-
Estudio Zang, Bergel & Viñes
 
Legal services
 
-
 
-
 
-
 
-
 
-
 
(3)
 
-
Avenida Compras S.A.
 
Advertising spaces
 
-
 
-
 
-
 
2
 
-
 
-
 
-
San Bernardo de Córdoba
 
Accrued invoices
 
-
 
-
 
-
 
-
 
-
 
(1)
 
-
La Rural S.A.
 
Leases and/or rights of use
 
-
 
-
 
-
 
38
 
-
 
-
 
-
Museo de los Niños
 
Leases and/or rights of use
 
-
 
-
 
-
 
2
 
-
 
-
 
-
Taaman
 
Leases and/or rights of use
 
-
 
-
 
-
 
-
 
-
 
(33)
 
-
Willifood
 
Financial operations
 
-
 
-
 
-
 
-
 
-
 
(41)
 
-
Total Other related parties
 
 
 
-
 
-
 
-
 
51
 
-
 
(103)
 
-
 
 
76
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
29. Related party transactions (Continued)
 
Related party
 
Description of transaction
 
Non-current Investment in financial assets
 
Non-current Derivative financial instruments
 
Non-current Trade and other receivables
 
Current
Trade and other receivables
 
Non-current Trade and other payables
 
Current
Trade and other payables
 
Current Borrowings
Parent company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IFISA
 
Financial operations
 
-
 
-
 
-
 
1,188
 
-
 
-
 
-
Total parent company
 
 
 
-
 
-
 
-
 
1,188
 
-
 
-
 
-
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors and Senior Management
 
Fees
 
-
 
-
 
-
 
-
 
-
 
(37)
 
-
 
Advances
 
-
 
-
 
-
 
2
 
-
 
-
 
-
Total Directors and Senior Management
 
 
 
-
 
-
 
-
 
2
 
-
 
(37)
 
-
Total
 
 
 
110
 
24
 
254
 
1,285
 
-
 
(153)
 
(18)
 
 
77
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
29. Related party transactions (Continued)
 
The following is a summary of the balances with related parties as of June 30, 2016:
 
Related party
 
Description of transaction
 
                Non-current Investment in financial assets
 
                 Current Investment in financial assets
 
Non-current Trade and other receivables
 
Current
Trade and other receivables
 
Current
Trade and other payables
 
Non-current Borrowings-
 
Current Borrowings
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tarshop S.A.
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
 
 
Leases and/or rights of use
 
-
 
-
 
-
 
-
 
(1)
 
-
 
-
New Lipstick
 
Reimbursement of expenses
 
-
 
-
 
-
 
4
 
-
 
-
 
-
Lipstick
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Agro-Uranga S.A
 
Dividends receivables
 
-
 
-
 
-
 
1
 
-
 
-
 
-
 
Brokerage
 
-
 
-
 
-
 
-
 
(1)
 
-
 
-
Agrofy S.A.
 
Other receivables
 
-
 
-
 
-
 
17
 
-
 
-
 
-
BHSA
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
(1)
 
-
 
-
 
Borrowings
 
-
 
-
 
-
 
-
 
-
 
(2)
 
(10)
BACS
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
 
 
Non-convertible notes
 
100
 
21
 
-
 
-
 
-
 
-
 
-
Total Associates
 
 
 
100
 
21
 
-
 
26
 
(3)
 
(2)
 
(10)
 
 
78
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
29. Related party transactions (Continued)
 
Related party
 
Description of transaction
 
                                                     Non-current Investment in financial assets
 
            Current Investment in financial assets
 
Non-current Trade and other receivables
 
Current
Trade and other receivables
 
Current
Trade and other payables
 
Non-current Borrowings
 
Current Borrowings
Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cresca S.A.
 
Loans granted
 
-
 
-
 
162
 
-
 
-
 
-
 
-
Puerto Retiro
 
Borrowings
 
-
 
-
 
-
 
3
 
-
 
-
 
-
NPSF
 
Reimbursement of expenses
 
-
 
-
 
-
 
2
 
-
 
-
 
-
 
Borrowings
 
-
 
-
 
-
 
-
 
-
 
-
 
(6)
 
Share based payments
 
-
 
-
 
-
 
1
 
-
 
-
 
-
 
Management fees
 
-
 
-
 
-
 
4
 
-
 
-
 
-
Quality
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Cyrsa
 
Credit due to capital reduction
 
-
 
-
 
-
 
3
 
-
 
-
 
-
Total Joint Ventures
 
 
 
-
 
-
 
162
 
14
 
-
 
-
 
(6)
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAMSA
 
Reimbursement of expenses
 
-
 
-
 
-
 
9
 
-
 
-
 
-
Estudio Zang, Bergel & Viñes
 
Legal services
 
-
 
-
 
-
 
-
 
(1)
 
-
 
-
IFISA (parent company)
 
Financial operations
 
-
 
-
 
-
 
1,074
 
-
 
-
 
-
 
 
Reimbursement of expenses
 
-
 
-
 
-
 
12
 
-
 
-
 
-
Museo de los Niños
 
Leases and/or rights of use
 
-
 
-
 
-
 
2
 
-
 
-
 
-
BNSA
 
Reimbursement of expenses
 
-
 
-
 
-
 
1
 
-
 
-
 
-
OASA
 
Borrowings
 
-
 
-
 
-
 
1
 
-
 
-
 
-
Consultores Venture Capital Uruguay
 
Management fees
 
-
 
-
 
-
 
2
 
-
 
-
 
-
Total Other related parties
 
 
 
-
 
-
 
-
 
1,101
 
(1)
 
-
 
-
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors and Senior Management
 
Fees
 
-
 
-
 
-
 
-
 
(29)
 
-
 
-
 
Advances
 
-
 
-
 
-
 
4
 
-
 
-
 
-
Total Directors and Senior Management
 
 
 
-
 
-
 
-
 
4
 
(29)
 
-
 
-
Total
 
 
 
100
 
21
 
162
 
1,145
 
(33)
 
(2)
 
(16)
 
79
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
29. Related party transactions (Continued)
 
The following is a summary of the transactions with related parties for the nine-month period ended as of March 31, 2017:
 
Related party
 
Leases and/or rights of use
 
Administration and management fees
 
Sale of goods and/or services
 
Compensation of Directors and senior management
 
Corporate services
 
Legal services
 
Financial operations
 
Donations
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tarshop S.A.
 
10
 
-
 
-
 
-
 
-
 
-
 
-
 
-
BACS
 
6
 
-
 
-
 
-
 
-
 
-
 
-
 
-
BHSA
 
3
 
-
 
-
 
-
 
-
 
-
 
19
 
-
Agro-Uranga S.A.
 
-
 
-
 
3
 
-
 
-
 
-
 
-
 
-
Agrofy
 
-
 
2
 
-
 
-
 
-
 
-
 
2
 
-
Condor
 
-
 
-
 
-
 
-
 
-
 
-
 
157
 
-
Adama
 
-
 
-
 
16
 
-
 
64
 
-
 
-
 
-
Total Associates
 
19
 
2
 
19
 
-
 
64
 
-
 
178
 
-
Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cyrsa
 
-
 
-
 
-
 
-
 
-
 
-
 
(2)
 
-
NPSA
 
(1)
 
3
 
-
 
-
 
-
 
-
 
(1)
 
-
Total Joint Ventures
 
(1)
 
3
 
-
 
-
 
-
 
-
 
(3)
 
-
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consultores Asset Management S.A. (CAMSA)
 
-
 
(115)
 
-
 
-
 
-
 
-
 
-
 
-
Fundación IRSA
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
(6)
San Bernardo de Córdoba S.A.
 
(1)
 
-
 
-
 
-
 
-
 
-
 
-
 
-
Isaac Elsztain e Hijos S.C.A.
 
(1)
 
-
 
-
 
-
 
-
 
-
 
-
 
-
Estudio Zang, Bergel & Viñes
 
-
 
-
 
-
 
-
 
-
 
(8)
 
-
 
-
Total Other related parties
 
(2)
 
(115)
 
-
 
-
 
-
 
(8)
 
-
 
(6)
Parent company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IFISA
 
-
 
-
 
-
 
-
 
-
 
-
 
60
 
-
Total Parent company
 
-
 
-
 
-
 
-
 
-
 
-
 
60
 
-
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors
 
-
 
-
 
-
 
(118)
 
-
 
-
 
-
 
-
Senior Management
 
-
 
-
 
-
 
(11)
 
-
 
-
 
-
 
-
Total Directors and Senior Management
 
-
 
-
 
-
 
(129)
 
-
 
-
 
-
 
-
Total
 
16
 
(110)
 
19
 
(129)
 
64
 
(8)
 
235
 
(6)
 
 
80
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
29. Related party transactions (Continued)
 
The following is a summary of the transactions with related parties for the nine-month period ended as of March 31, 2016:
 
Related party
 
Leases and/or rights of use
 
Administration and management fees
 
Sale of goods
and/or services
 
Compensation of Directors and senior management
 
Legal services
 
Financial operations
 
Donations
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agro-Uranga S.A.
 
-
 
-
 
2
 
-
 
-
 
-
 
-
Tarshop S.A.
 
8
 
-
 
-
 
-
 
-
 
-
 
-
BACS
 
5
 
-
 
-
 
-
 
-
 
16
 
-
Condor
 
-
 
-
 
-
 
-
 
-
 
249
 
-
BHSA
 
2
 
-
 
-
 
-
 
-
 
(3)
 
-
Total Associates
 
15
 
-
 
2
 
-
 
-
 
262
 
-
Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cyrsa
 
-
 
-
 
-
 
-
 
-
 
(2)
 
-
Entretenimiento Universal S.A.
 
-
 
-
 
-
 
-
 
-
 
(1)
 
-
NPSA
 
-
 
3
 
-
 
-
 
-
 
-
 
-
Total Joint Ventures
 
-
 
3
 
-
 
-
 
-
 
(3)
 
-
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fundación IRSA
 
-
 
-
 
-
 
-
 
-
 
-
 
(5)
Hamonet S.A.
 
(1)
 
-
 
-
 
-
 
-
 
-
 
-
Isaac Elsztain e Hijos S.C.A.
 
(1)
 
-
 
-
 
-
 
-
 
-
 
-
Estudio Zang, Bergel & Viñes
 
-
 
-
 
-
 
-
 
(4)
 
-
 
-
Total Other related parties
 
(2)
 
-
 
-
 
-
 
(4)
 
-
 
(5)
Parent company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IFISA
 
-
 
-
 
-
 
-
 
-
 
13
 
-
Total Parent company
 
-
 
-
 
-
 
-
 
-
 
13
 
-
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors
 
 
 
-
 
-
 
(129)
 
-
 
-
 
-
Senior Management
 
-
 
-
 
-
 
(11)
 
-
 
-
 
-
Total Directors and Senior Management
 
-
 
-
 
-
 
(140)
 
-
 
-
 
-
Total
 
13
 
3
 
2
 
(140)
 
(4)
 
272
 
(5)
 
81
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
29. Related party transactions (Continued)
 
Loan between Dolphin and IDBD
 
As described in Note 3.A.b to the Annual Consolidated Financial Statements, by June 30, 2016 Dolphin had granted a series of subordinated loans to IDBD (the “debt”). This debt has the following characteristics: (i) it is subordinated, even in the case of insolvency, to all current or future debts of IDBD;  (ii) will be reimbursed after payment of all the debts to their creditors; (iii) accrues interest at a rate of 0.5%, which will be added to the amount of the debt and will be payable only on the date the subordinated debt is amortized; (iv) Dolphin will not have a right to participate or vote in the meetings with IDBD creditors with respect to the subordinated debt; (v) as from January 1, 2016, Dolphin has the right, at its own discretion, to convert the debt balance into IDBD shares, at that time, whether wholly or partially, including the interest accrued over the debt until that date; (vi) should Dolphin opt to exercise the conversion, the debt balance will be converted so that Dolphin will receive IDBD shares according to a share price that will be 10% less than the average price of the last 30 days prior to the date the conversion option is exercised. In the event there is no market price per share, this will be determined in accordance with an average of three valuations made by external or independent experts, who shall be determined it by mutual consent and, in the event of a lack of consent, they will be set by the President of the Institute of Certified Public Accountants in Israel.
 
30.
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 the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.
 
Exhibit A - Property, plant and equipment
 
Note 10 – Investment properties
 
 
Note 11 – Property, plant and equipment
Exhibit B - Intangible assets
 
Note 13 – Intangible assets
Exhibit C - Equity investments
 
Note 8 – Investments in joint ventures
 
 
Note 9 – Investments in associates
Exhibit D - Other investments
 
Note 16 – Financial instruments by category
Exhibit E - Provisions
 
Note 21 – Provisions
Exhibit F – Cost of sales and services provided
 
Note 31 – Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities
 
Note 32 – Foreign currency assets and liabilities
 
 
 
82
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
31.
Cost of sales and services provided
 
Description
Biological assets
Inventories
Agricultural services
Services and other operating costs
Trading properties
Hotels
Mobile phones
Supermarkets
Properties
Others
Total as of 03.31.17
Total as of 03.31.16
Inventories as of 06.30.16
567
650
-
-
251
8
327
2,888
4,462
27
(i) 9,180
(ii) 1,030
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition for business combination
-
-
-
-
-
-
-
-
-
-
-
4,575
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
160
42
-
-
-
-
-
-
-
-
202
188
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in the net realizable value of agricultural products after harvest
-
(154)
-
-
-
-
-
-
-
-
(154)
131
 
 
 
 
 
 
 
 
 
 
 
 
 
Harvest
-
939
-
-
-
-
-
-
-
-
939
400
Acquisitions and classifications
50
1,520
-
-
-
-
1,977
24,217
152
-
27,916
9,415
Consume
(1)
(745)
-
-
-
-
-
-
-
-
(746)
(453)
Additions
-
-
-
-
19
1
-
-
-
-
20
371
Disposals
-
-
-
-
-
1
-
-
-
-
1
(1)
Transfers
 
 
 
 
 
 
 
 
 
 
 
 
Expenses incurred
20
223
5
1,465
19
357
6,180
1,120
1,085
108
10,582
5,437
Currency translation adjustment
6
(23)
-
-
17
-
77
678
1,055
11
1,821
2,062
Inventories as of 03.31.17
(651)
(380)
-
-
(287)
(9)
(264)
(2,818)
(4,141)
(24)
(iii) (8,574)
(iv) (7,954)
Cost as of 03.31.17
151
2,072
5
1,465
19
358
8,297
26,085
2,613
122
41,187
-
Cost as of 03.31.16
115
1,339
58
1,203
10
262
3,620
8,008
575
11
 
15,201
 
(i) Includes Ps. 9 corresponding to materials and supplies of IRSA and FYO and Ps. 6 of meet due for slaughtering of Carnes Pampeanas as of June 30, 2016.
(ii) Includes Ps. 9 corresponding to materials and supplies of IRSA and FYO as of June 30, 2015 and Ps. 3 of meet due for slaughtering of Carnes Pampeanas as of June 30, 2015.
(iii) Includes Ps. 28 corresponding to materials and supplies of IRSA and FYO as of March 31, 2017.
(iv) Includes Ps. 21 corresponding to materials and supplies of IRSA and FYO as of March 31, 2016.
 
83
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
32.
Foreign currency assets and liabilities
 
Book amounts of foreign currency assets and liabilities are as follows:
 
Items (3)
 
Amount of foreign currency (2)
 
Prevailing exchange rate (1)
 
Total as of 03.31.17
 
Amount of foreign currency (2)
 
Prevailing exchange rate (1)
 
Total as of 06.30.16
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Restricted assets
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
3
 
15.29
 
43
 
-
 
-
 
-
Total restricted assets
 
 
 
 
 
43
 
 
 
 
 
-
Trade and other receivables
 
 
 
 
 
 
 
 
 
 
 
 
Uruguayan Peso
 
 
 
 
 
 
 
3
 
0.334
 
1
US Dollar
 
60
 
15.29
 
918
 
43
 
14.940
 
637
Euros
 
10
 
16.31
 
165
 
12
 
16.492
 
195
Trade and other receivables related parties
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
53
 
15.29
 
806
 
42
 
15.040
 
635
Total trade and other receivables
 
 
 
 
 
1,889
 
 
 
 
 
1,468
Investment in financial assets
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
131
 
15.29
 
1,999
 
199
 
14.940
 
2,976
Pounds
 
1
 
19.15
 
17
 
1
 
19.763
 
19
Investments in financial assets related parties
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
7
 
15.29
 
110
 
-
 
-
 
-
Total Investment in financial assets
 
 
 
 
 
2,126
 
 
 
 
 
2,995
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
8
 
15.29
 
119
 
1
 
14.940
 
15
Total derivative financial instruments
 
 
 
 
 
119
 
 
 
 
 
15
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
342
 
15.29
 
5,228
 
84
 
14.940
 
1,260
Euros
 
2
 
16.31
 
26
 
4
 
16.492
 
60
Total Cash and cash equivalents
 
 
 
 
 
5,254
 
 
 
 
 
1,320
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
 
 
 
 
 
 
 
 
 
 
 
New Israel Shekel
 
-
 
-
 
-
 
2
 
3.892
 
7
US Dollar
 
81
 
15.39
 
1,249
 
100
 
15.040
 
1,502
Euros
 
1
 
16.46
 
17
 
3
 
16.640
 
54
Trade and other payables related parties
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
-
 
-
 
-
 
2
 
15.040
 
31
Total trade and other payables
 
 
 
 
 
1,266
 
 
 
 
 
1,594
Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
1,406
 
15.39
 
21,640
 
1,945
 
15.040
 
29,246
Total borrowings
 
 
 
 
 
21,640
 
 
 
 
 
29,246
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
-
 
-
 
-
 
1
 
15.040
 
19
Total derivative financial instruments
 
 
 
 
 
-
 
 
 
 
 
19
 
(1)
Exchange rate as of March 31, 2017 and June 30, 2016 according to Banco Nación Argentina records.
(2)
Considering foreign currencies those that differ from each Group’s functional currency at each year-end.
(3)
The Company uses derivative instruments as a complement in order to reduce its exposure to exchange rate movements (Note 16).
 
 
84
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
33.
Groups of assets and liabilities held for sale
 
As mentioned in Note 4, the investment in Israir has been reclassified to held for sale. Additionally, IDB Tourism is currently negotiating the sale of its equity interests in Open Sky Ltd., but the terms and conditions of such sale have not yet been finalized. The assets and liabilities related to the Open Sky Ltd. transaction have been also reclassified. In addition, the equity interest of the Group in Adama and the related non-recourse loan had been reclassified to held for sale before the disposal.
 
Pursuant to IFRS 5, assets and liabilities available for sale have been valued at the lower of their book value and fair value less cost of sale. Given that the book value of some assets was higher, an impairment loss of Ps. 231 has been recorded.
 
The following table shows the main assets and liabilities held for sale:
 
Group of assets held for sale:
 
 
March 31,
 2017
Property, plant and equipment
1,581
Intangible assets
21
Investments in associates
37
Deferred income tax asset
50
Trade and other receivables
838
Inventories
-
Cash and cash equivalents
161
Total
2,688
 
Liabilities directly associated to assets classified as held for sale:
 
 
March 31,
 2017
Trade and other payables
1,000
Payroll and social security expenses
111
Employee benefits
45
Deferred income tax liability
8
Borrowings
702
Total
1,866
 
 
85
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
34.
Profit from discontinued operations
 
The results of Israir, Open Sky and IDB Tourism operations, equity earnings in Adama and the finance costs associated to the non-recourse loan related to it, until its sale, and the gain/loss for the sale of its investment in Adama have been reclassified in the Statements of Income/(Operations) of Discontinued Operations.
 
 
March 31, 2017
 
March 31, 2016
 
Adama
 
Israir and
Open Sky
 
Total
 
Adama
 
IDB
Tourism
 
Total
Revenues
-
 
3,528
 
3,528
 
-
 
568
 
568
Costs
-
 
(3,001)
 
(3,001)
 
-
 
(705)
 
(705)
Gross profit / (loss)
-
 
527
 
527
 
-
 
(137)
 
(137)
General and administrative expenses
-
 
(178)
 
(178)
 
-
 
-
 
-
Selling expenses
-
 
(171)
 
(171)
 
-
 
-
 
-
Other operating results, net (i)
4,216
 
(239)
 
3,977
 
-
 
(4)
 
(4)
Profit / (Loss) from operations 
4,216
 
(61)
 
4,155
 
-
 
(141)
 
(141)
Share of profit / (loss) of joint ventures and associates
255
 
39
 
294
 
(130)
 
7
 
(123)
Profit / (Loss) from operations before financing and taxation 
4,471
 
(22)
 
4,449
 
(130)
 
(134)
 
(264)
Finance income
-
 
4
 
4
 
341
 
8
 
349
Finance costs
(1,346)
 
(43)
 
(1,389)
 
(245)
 
(26)
 
(271)
Other financial results
-
 
-
 
-
 
11
 
-
 
11
Financial results, net 
(1,346)
 
(39)
 
(1,385)
 
107
 
(18)
 
89
Profit / (Loss) before income tax 
3,125
 
(61)
 
3,064
 
(23)
 
(152)
 
(175)
Income tax
-
 
(8)
 
(8)
 
-
 
7
 
7
Income / (Loss) for the period from discontinued operations 
3,125
 
(69)
 
3,056
 
(23)
 
(145)
 
(168)
 
(i) Corresponding to the profit from the sale of Adama.
 
 
86
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
 
35.
CNV General Ruling N° 629/14 – Storage of documentation
 
On August 14, 2014, the CNV issued General Ruling N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Group has entrusted the storage of certain non-sensitive and old information to the following providers:
 
Documentation storage provider
 
Location
Bank S.A.
 
Gral. Rivas 401, Avellaneda, Province of Buenos Aires
 
 
Ruta Panamericana Km 37,5, Garín, Province of Buenos Aires
 
 
Av. Fleming 2190, Munro, Province of Buenos Aires
 
 
 
 
Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires
 
 
 
Iron Mountain Argentina S.A.
 
Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
 
Pedro de Mendoza 2143, Autonomous City of Buenos Aires
 
Saraza 6135, Autonomous City of Buenos Aires
 
Azara 1245, Autonomous City of Buenos Aires
 
Polígono industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
 
 
Cañada de Gomez 3825, Autonomous City of Buenos Aires
 
It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the RULES (N.T. 2013 as amended) are available at the registered office.
 
On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse, which company is a supplier of the Group and where Group’s documentation was being kept. Based on the internal review carried out by the Group, duly reported to the CNV on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.
 
36.
Subsequent events
 
Advanced dividends IRSA CP
 
The General Regular Shareholders’ Meeting of IRSA CP held on April 5 this year decided on the payment of an interim dividend of Ps. 310, for the current fiscal year. The dividends were made available to the shareholders on April 21, 2017.
 
 
87
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
36.
Subsequent events (Continued)
 
Agreement for New Pharm acquisition
 
On April 6, 2017, Shufersal entered into an agreement (the "agreement") with Hamashbir 365 Holdings Ltd. ("the seller" or "Hamashbir") for the purchase of the shares of New Pharm Drugstores Ltd. ("New Pharm"), representative of 100% of said Company’s share capital ("the shares sold"), for an amount of NIS 130 million (equivalent to Ps. 546), payable upon execution of the transaction, which is subject to compliance, inter alia, with the following conditions:
 
●
approval by the Antitrust commission of Israel. Should the approval not be obtained within the 3 months following the date the request is filed (extendable for one additional month under certain circumstances), the agreement will be automatically invalidated, unless the parties agree on a term extension.
 
●
the discharge and invalidation of all the existing guarrantees of New Pharm over the liabilities of the companies Hamashbir’s Group, and the discharge and invalidation of all the existing guarrantees of the companies Hamashbir’s Group over the liabilities of New Pharm.
 
Upon execution of the agreement, a non-competition clause will be signed.
 
As of the date of issuance of these Financial Statements, none of the conditions mentioned have yet been fulfilled.
 
Capital issuance of Shufersal
 
During April 2017, Shufersal issued approximately 12 million shares for a total net consideration of NIS 210 million (approximately equivalent to Ps. 882). As a result of such issuance, DIC’s interest in Shufersal went down to nearly 56.11%.
 
Debt issuance of PBC
 
During April this year, PBC made a public offering of debentures (series I) for nearly NIS 431 million, for which it raised roughly NIS 446 million (approximately equivalent to Ps. 1,873).
 
Debt issuance of Gav-Yam
 
During April this year, Gav-Yam made a public offering of debentures (series F) for nearly NIS 303 million (approximately equivalent to Ps. 1,272).
 
88
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for the publication in Argentina
 
36.
Subsequent events (Continued)
 
Debt issuance of DIC
 
In April 2017, DIC made a public offering to expand its debentures (series F) for approximately NIS 444, for which it raised roughly NIS 555 million (approximately equivalent to Ps. 231 as of that date).
 
Cresca S.A. agreement
 
On October 5, 2016, Brasilagro and Carlos Casado entered into an agreement whereby they agreed to offer for sale, for a term of 120 days, all of the real property owned by Cresca at a price of at least US$ 120 million or else 100% of the outstanding shares of Cresca or divide Cresca’s properties. Because no purchase offers for the company or its lands have been received, the shareholders of Brasilagro and Carlos Casado subscribed powers of attorney intended to carry out what was agreed.
 
As of the date of these financial statements, the parties have split the property and are working jointly to strike a balance between the contributions and credits of each, in order to distribute the benefits in the manner timely agreed.
 
Sale of farmland Brasilagro S.A.
 
In March 2017, Brasilagro signed a sale commitment for a farmland located in the municipality of Mineiros. The agreement sets forth the sale of 274 hectares, of which 196 are developed and productive hectares. The sales price amounts to 1,000 bags of soybeans per hectare, or Rs. 13.2 million (Rs. 66,227 per hectare), of which so far 39,254 bags of soybeans have been collected, equivalent to Rs. 2.4 million; and the balance will be paid in four annual installments. The result of the operation was recognized after closing.
 
 
 
89
Free translation from the original prepared in Spanish for publication in Argentina
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
 
 
To the Shareholders, President and Directors of
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Legal address: Moreno 877 – 23° floor
Autonomous City Buenos Aires
Tax Code No. 30-50930070-0
 
Introduction
 
 
We have reviewed the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (hereinafter “the Company”) which included the unaudited condensed interim consolidated statement of financial position as of March 31, 2017, and the unaudited condensed interim consolidated statements of income and comprehensive income for the nine-month and three-month period ended March 31, 2017, the unaudited condensed interim consolidated statement of changes in shareholders’ equity and the unaudited condensed interim consolidated statement of cash flows for the nine-month period ended March 31, 2017 and selected explanatory notes.
 
The balances and other information corresponding to the fiscal year ended June 30, 2016 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to those financial statements.
 
Management responsibility
 
 
The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS), adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and added by the National Securities Commission (CNV) to its regulations, as approved by the International Accounting Standard Board (IASB) and , for this reason, is responsible for the preparation and presentation of the unaudited condensed interim consolidated financial statements above mentioned in the introductory paragraph according to the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34).
 
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED
 FINANCIAL STATEMENTS (Continued)
 
 
Scope of our review
 
Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina in Technical Resolution No. 33 of the FACPCE, without modification as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim consolidated financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated statement of financial position, the consolidated statement of income, the consolidated statement of comprehensive income and consolidated statement of cash flows of the Company.
Conclusion
 
Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim consolidated financial statements above mentioned in the introductory paragraph of this report have not been prepared in all material respects in accordance with International Accounting Standard 34.
 
Emphasis paragraph
 
Without modifying our conclusion, we want to refer to the information included in Note 1 of these unaudited condensed interim consolidated financial statements.
 
Report on compliance with current regulations
 
In accordance with current regulations, we report about Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria that:
 
a)
the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are being processed for recording in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;
 
b)
the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal respects in accordance with applicable legal provisions;
 
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED
 FINANCIAL STATEMENTS (Continued)
 
 
c)
we have read the Business Summary (“Reseña Informativa”) on which, as regards these matters that are within our competence, we have no observations to make;
 
d)
as of March 31, 2017, the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria owed in favor of the Argentina Integrated Pension System which arises from accounting records and submissions amounted to Ps. 6,344,827 which was no callable at that date.
 
 
 
Autonomous City of Buenos Aires, May 12, 2017.
 
 
 
 
 
 
 
PRICE WATERHOUSE & CO. S.R.L.
 
(Socio)
C.P.C.E.C.A.B.A. Tº 1 Fº 17
 
Dr. Carlos Martín Barbafina
Contador Público (UCA)
C.P.C.E.C.A.B.A. T° 175 F° 65
 
 
 
 
 
 
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Separate Financial Statements as of March 31, 2017 and June 30, 2016 and for the nine-month periods ended March 31, 2017 and 2016
 
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Financial Position
 
as of March 31, 2017 and June 30, 2016
 
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
Note
03.31.17
 
06.30.16
ASSETS
 
 
 
 
Non-current assets
 
 
 
 
Investment properties 
7
1
 
9
Property, plant and equipment 
8
538
 
488
Intangible assets 
9
17
 
17
Biological assets 
10
542
 
477
Investments in subsidiaries, associates and joint ventures 
6
4,619
 
2,563
Deferred income tax assets 
19
914
 
757
Income tax and minimum presumed income tax credits 
 
50
 
50
Trade and other receivables 
13
2
 
-
Total Non-current assets 
 
6,683
 
4,361
Current assets
 
 
 
 
Biological assets 
10
581
 
442
Inventories 
11
235
 
491
Income tax and minimum presumed income tax credits  ..
 
34
 
34
Trade and other receivables 
13
495
 
388
Derivative financial instruments 
12
36
 
15
Restricted assets                                                                               
12
46
 
-
Investment in financial assets 
12
-
 
22
Cash and cash equivalents 
12
14
 
11
Total Current assets 
 
1,441
 
1,403
TOTAL ASSETS 
 
8,124
 
5,764
SHAREHOLDERS’ EQUITY
 
 
 
 
Share capital 
 
499
 
495
Treasury shares 
 
3
 
7
Inflation adjustment of share capital and treasury shares 
 
65
 
65
Share premium 
 
659
 
659
Additional paid-in capital from treasury shares 
 
20
 
16
Legal reserve 
 
83
 
83
Special reserve 
 
97
 
97
Other reserves 
15
1,733
 
989
Accumulated deficit 
 
(322)
 
(1,387)
TOTAL SHAREHOLDERS’ EQUITY 
 
2,837
 
1,024
LIABILITIES
 
 
 
 
Non-current liabilities
 
 
 
 
Trade and other payables 
16
-
 
1
Borrowings 
18
3,292
 
3,150
Provisions 
17
5
 
10
Total Non-current liabilities 
 
3,297
 
3,161
Current liabilities
 
 
 
 
Trade and other payables 
16
393
 
305
Payroll and social security liabilities 
 
81
 
85
Borrowings 
18
1,515
 
1,166
Derivative financial instruments 
12
-
 
23
Provisions 
17
1
 
-
Total Current liabilities 
 
1,990
 
1,579
TOTAL LIABILITIES 
 
5,287
 
4,740
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 
 
8,124
 
5,764
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
1
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Income / (Operations) for the nine and three-month periods beginning July 1, 2016 and 2015 and January 1, 2017 and 2016 and ended March 31, 2017 and 2016
 
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
Nine months
 
Three months
 
 
Note
 
03.31.17
 
03.31.16
 
03.31.17
 
03.31.16
 
Revenues                                                                  
 
20
 
972
 
750
 
219
 
248
 
Costs 
 
21
 
(1,617)
 
(1,069)
 
(472)
 
(407)
 
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
 
916
 
813
 
385
 
498
 
Changes in the net realizable value of agricultural products after harvest
 
 
(80)
 
135
 
(9)
 
20
 
Gross Profit 
 
 
191
 
629
 
123
 
359
 
Gain from disposal of farmlands                                                                  
 
72
 
-
 
-
 
-
 
General and administrative expenses                                                                  
22
(133)
 
(99)
 
(41)
 
(34)
 
Selling expenses                                                                  
22
(245)
 
(151)
 
(63)
 
(40)
 
Other operating results, net                                                                  
23
47
 
58
 
45
 
(7)
 
Management fees                                                                  
 
(115)
 
-
 
(11)
 
-
 
(Loss) / Profit from operations                                                                  
 
(183)
 
437
 
53
 
278
 
Share of profit / (loss) of subsidiaries, associates and joint ventures
6
1,302
 
(362)
 
12
 
(104)
 
Profit before financing and taxation 
 
 
1,119
 
75
 
65
 
174
 
Finance incomes 
 
24
19
 
103
 
3
 
51
 
Finance costs 
 
24
(295)
 
(1,603)
 
91
 
(498)
 
Other financial results, net                                                                  
24
32
 
236
 
1
 
79
 
Financial results, net                                                                  
24
(244)
 
(1,264)
 
95
 
(368)
 
Profit / (Loss) before Income tax                                                                  
 
875
 
(1,189)
 
160
 
(194)
 
Income tax                                                                  
19
157
 
294
 
(47)
 
30
 
Profit / (Loss) for the period                                                                  
 
1,032
 
(895)
 
113
 
(164)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit / (Loss) per share attributable to equity holders of the parent during the period:
 
 
 
 
 
 
 
 
 
Basic                                                                  
 
2.07
 
(1.81)
 
0.22
 
(0.33)
 
Diluted                                                                  
 
2.06
 
(1.81)
(i)
0.22
 
(0.33)
(i)
 
(i)
Due to the loss for the period, there is no diluted effect on this result.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
2
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Comprehensive Income / (Operations) for the nine and three-month periods beginning July 1, 2016 and 2015 and
 
January 1, 2017 and 2016 and ended March 31, 2017 and 2016
 
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
 
Nine months
 
Three months
 
03.31.17
 
03.31.16
 
03.31.17
 
03.31.16
Profit / (Loss) for the period                                                                     
 
1,032
 
(895)
 
 
113
 
(164)
Other comprehensive income / (loss):
 
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss:
 
 
 
 
 
 
 
 
Currency translation adjustment from subsidiaries, associates and joint ventures
838
 
703
 
 
403
 
264
 
Other comprehensive income from share of changes in subsidiaries’ equity
30
 
 
5
 
37
 
 
5
 
Other comprehensive income for the period (i) 
868
 
708
 
 
440
 
269
 
Total comprehensive income / (loss) for the period
1,900
 
(187)
 
 
553
 
 
105
 
 
(i)
  Items included in other comprehensive income / (loss) do not generate any impact on the income tax.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
3
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity
for the nine-month periods ended March 31, 2017 and 2016
 
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Share
capital
Treasury
shares
Inflation adjustment of share capital and treasury shares (i)
Share
premium
Additional paid-in capital from treasury shares
Legal
 reserve
Special
reserve (ii)
Other
reserves
(Note 15)
Accumulated deficit
Total Shareholders’ equity
Balance as of June 30, 2016                                                             
495
7
65
659
16
83
97
989
(1,390)
1,021
Adjustment due to change to accounting Standards (iii) 
-
-
-
-
-
-
-
-
3
3
Adjusted balance as of June 30, 2016                                                             
495
7
65
659
16
83
97
989
(1,387)
1,024
Profit for the period                                                             
-
-
-
-
-
-
-
-
1,032
1,032
Other comprehensive income for the period                                                             
-
-
-
-
-
-
-
868
-
868
Total comprehensive income for the period                                                             
-
-
-
-
-
-
-
868
1,032
1,900
As provided by Ordinary and Extraordinary Shareholders’ Meeting held on October 31, 2016:
 
 
 
 
 
 
 
 
 
 
- Share distribution                                                            
4
(4)
-
-
3
-
-
-
(2)
1
- Release of reserve for future dividends                                                            
-
-
-
-
-
-
-
(31)
31
-
Equity-settled compensation                                                             
-
-
-
-
-
-
-
10
-
10
Equity incentive plan granted                                                             
-
-
-
-
1
-
-
(5)
4
-
Changes in interest in subsidiaries                                                             
-
-
-
-
-
-
-
(98)
-
(98)
Balance as of March 31, 2017                                                             
499
3
65
659
20
83
97
1,733
(322)
2,837
 
(i)
Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2017 and June 30, 2016, respectively.
(ii)
Corresponding to General Resolution 609/12 of the National Securities Commission.
(iii)
See Note 2.2.1 to the Condensed Interim Consolidated Financial Statements.
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
4
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity
for the nine-month periods ended March 31, 2017 and 2016
 
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
Share
capital
Treasury
shares
Inflation adjustment of share capital and treasury shares (i)
Share
premium
Additional paid-in capital from treasury shares
Legal
 reserve
Special
reserve (ii)
Other
reserves
(Note 15)
Retained
 earnings
Total Shareholders’ equity
Balance as of June 30, 2015                                                    
495
7
65
659
13
-
-
545
172
1,956
Adjustment due to change to accounting Standards (iii)
-
-
-
-
-
-
-
(3)
6
3
Adjusted balance as of June 30, 2015 
495
7
65
659
13
-
-
542
178
1,959
Loss for the period 
-
-
-
-
-
-
-
-
(895)
(895)
Other comprehensive income for the period 
-
-
-
-
-
-
-
708
-
708
Total comprehensive income / (loss) for the period 
-
-
-
-
-
-
-
708
(895)
(187)
As provided by Ordinary Shareholders’ Meeting held on October 30, 2015 and Extraordinary Shareholders’ Meeting held on November 26, 2015:
 
 
 
 
 
 
 
 
 
 
- Legal Reserve                                                  
-
-
-
-
-
83
-
-
(83)
-
- Reserve for future dividends                                                   
-
-
-
-
-
-
-
31
(31)
-
Reserve for share-based compensation 
-
-
-
-
-
-
-
13
-
13
Equity incentive plan granted 
-
-
-
-
3
-
-
(5)
2
-
Changes in interest in subsidiaries                                                    
-
-
-
-
-
-
-
(284)
-
(284)
Share of changes in subsidiaries’ equity                                                      
-
-
-
-
-
-
-
26
-
26
Reserve for tender offer to non-controlling shareholders 
-
-
-
-
-
-
-
(121)
-
(121)
Constitution of special reserve                                                    
-
-
-
-
-
-
95
-
(95)
-
Cumulative translation adjustment for interest held before business combination. 
-
-
-
-
-
-
-
(91)
-
(91)
Balance as of March 31, 2016                                                  
495
7
65
659
16
83
95
819
(924)
1,315
 
(i)
Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2016 and June 30, 2015, respectively.
(ii)
Corresponding to General Resolution 609/12 of the National Securities Commission.
(iii) 
See Note 2.2.1 to the Condensed Interim Consolidated Financial Statements.
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
5
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Unaudited Condensed Interim Separate Statements of Cash Flows
for the nine-month periods ended March 31, 2017 and 2016
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
Note
03.31.17
 
03.31.16
Operating activities:
 
 
 
 
Cash used in operations                                                                                  
14
(384)
 
(42)
Net cash used in operating activities 
 
(384)
 
(42)
Investing activities:
 
 
 
 
Proceeds from sales of subsidiaries, associates and joint ventures
 
-
 
86
Acquisition of subsidiaries, associates and joint ventures                                                                                  
 
(6)
 
-
Capital contributions in subsidiaries, associates and joint ventures 
6
(1)
 
(20)
Proceeds from sales of investment properties 
 
-
 
1
Acquisition of property, plant and equipment 
8
(71)
 
(19)
Proceeds from sales of property, plant and equipment 
 
1
 
-
Proceeds from sales of farmlands 
 
75
 
-
Acquisition of Intangible Assets 
9
(2)
 
-
Purchase of investment in financial assets 
 
(720)
 
(998)
Proceeds from disposals of investments in financial assets 
 
746
 
1,019
Loans granted to subsidiaries, associates and joint ventures 
 
-
 
(3)
Loans repayments received from subsidiaries, associates and joint ventures 
 
-
 
82
Advance payments 
 
(1)
 
-
Dividends received 
 
82
 
85
Net cash generated from investing activities 
 
103
 
233
Financing activities:
 
 
 
 
Proceeds from issuance of Notes 
 
-
 
390
Repayment of Notes 
 
(454)
 
(186)
Repurchase of Notes 
 
(364)
 
(88)
Proceeds from borrowings 
 
1,667
 
568
Proceeds from borrowings from subsidiaries, associates and joint ventures  
 
-
 
58
Repayment of borrowings                                                                                  
 
(399)
 
(758)
Proceeds from derivative financial instruments 
 
14
 
127
Repayment of borrowings from subsidiaries, associates and joint ventures
 
(6)
 
-
Payment of seller financing 
 
1
 
-
Interest paid                                                                                  
 
(175)
 
(246)
Net cash flows generated from / (used in) financing activities 
 
284
 
(135)
Net increase in cash and cash equivalents 
 
3
 
56
Cash and cash equivalents at beginning of the period 
 
11
 
18
Foreign exchange gain on cash and cash equivalents 
 
-
 
3
Cash and cash equivalents at the end of the period                                                                                  
 
14
 
77
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
 
 
 
 
 
 
                                                            )
 
 
 
 
Eduardo S. Elsztain
President
 
 
6
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
1.
General information
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or the “Company”) 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.
 
Cresud is a company organized and domiciled in the Republic of Argentina. The address of its registered office is Moreno 877, 23rd Floor, Buenos Aires, Argentina.
 
These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on May 12, 2017.
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements
 
2.1.
Basis of preparation
 
These Unaudited Condensed Interim Separate Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board (IASB).
 
On April 1, 2016, the Argentine Federation of Professional Councils of Economic Science ("FAPCE", as per its Spanish acronym) approved Technical Resolution N° 43, which amends Technical Resolution N° 26, for fiscal years starting on January 1, 2016. Such Technical Resolution N° 43 provides that entities that file financial statements in accordance with the IFRSs, are expected to do it integrally and without modifications and that investments in subsidiaries, joint ventures and associates are to be accounted under the equity method in the Separate Financial Statements, as established by IFRS, pursuant to the amendment established by the IASB to IAS 27 in August 2014. Thus, valuation at cost or fair value (which are additional measurements) is not permitted for these types of investments. Before such amendment, Technical Resolution N° 26 did not require an integral adoption of IFRS in Separate Financial Statements, since the equity method was not a valuation option for such investments.
 
The Company has adopted Technical Resolution N° 43 for this fiscal year ending on June 30, 2017. The financial statements corresponding to the period ended September 30, 2016 where the first Condensed Interim Separate Financial Statements prepared in accordance with the IFRS; its transition date is July 1, 2015 and, therefore, the provisions of IRFS 1 “First-Time Adoption of International Financial Reporting Standards” should be applied as of that date.
 
7
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)
 
IFRS 1 mandatorily establishes that an entity must apply the requirements of IFRS 10 “Consolidated Financial Statements” for accounting of changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control prospectively. Under IFRS, the Company accounts for acquisitions and disposals of non-controlling interests that do not result in change of control as business combinations. The Group did not restate these acquisitions and disposals prior to transition date.
 
Furthermore, IFRS 1 also provides that, where a first time IFRS adopter entity decides to account for investments in subsidiaries under the equity method in accordance with IAS 28, the entity should apply the exemption for business combinations conducted before the transition date. This exemption involves applying IFRS 3 “Business Combinations” on a prospective basis to business combinations conducted after the transition date. Business combinations occurring prior to the transition date have not been restated.
 
The other required and optional exceptions of IFRS 1 have not been applied, as these are not relevant to the Group.
 
Below there is a comparison between shareholders’ equity computed under the previous standards and in accordance with IFRS 1 as of July 1, 2015.
 
 
07.01.15
Shareholders’ equity under Technical Resolution N° 26 
1,956
Acquisition of non-controlling interest 
(54)
Retained earnings recognition 
54
Adjustment due to change to accounting standards (a) 
3
Shareholders' equity under IFRS 
1,959
(a)
Include adjustment due to change to accounting standards (see Note 2.2.1 to the Unaudited Condensed Interim Consolidated Financial Statements).
 
Amounts as of June 30, 2016 and March 31, 2016, which are disclosed for comparative purposes have been modified in order to present the mentioned adjustments. The notes below include a reconciliation of shareholders’ equity figures of Condensed Interim Separate Financial Statements prepared in accordance with the Technical Resolution N° 26 on the closing date of the comparative period and the statement of income and other comprehensive income figures for the nine-month period ended March 31, 2016 and those presented in accordance with IFRS in these Unaudited Condensed Interim Separate Financial Statements.
 
The Unaudited Condensed Interim Separate Financial Statements of the Company for the nine-month periods ended March 31, 2017 have been prepared in accordance with IAS 34 "Interim Financial Reporting".
 
8
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)
 
2.2.
Reconciliations of Technical Resolution N° 26 to IFRS
 
The notes below include a reconciliation of shareholders' equity prepared in accordance with Technical Resolution N° 26 and those presented in accordance with IFRS as of June 30, 2016 and March 31, 2016, and the reconciliations of net income for the year ended June 30, 2016 and for the nine-month period ended March 31, 2016. The reconciliations included below were prepared based on the IFRS standards that are estimated to be applicable for the Company for the financial statements as of and for the year ended June 30, 2017. The items and amounts in the reconciliations included below are subject to change and should only be deemed final when the Consolidated Financial Statements prepared under IFRS for the first time as of and for the year ended June 30, 2013 are issued.
 
The items and amounts included in the reconciliations could be modified to the extent that, when preparing financial statements as of and for the year ended June 30, 2017, applicable standards are different.
 
The first reconciliation provides an overview of the impact on equity, at March 31, 2016 and June 30, 2016 (Note 2.2.1). The second reconciliation provides an overview of the impact on income for the nine-month period ended as of March 31, 2016 (Note 2.2.2). The mentioned reconciliations do not have impact on other comprehensive income nor the statements of cash flows.
 
2.2.1.
Summary of equity
 
 
 
06.30.16
 
03.31.16
Shareholders’ equity under Technical Resolution N° 26
 
1,021
 
1,309
Investments in subsidiaries, associates and joint ventures
(a)
3
 
6
Shareholders' equity under IFRS 
 
1,024
 
1,315
 
2.2.2 Summary of profit / (loss)
 
 
 
03.31.16
Net comprehensive loss under Technical Resolution N° 26
 
(936)
Investments in subsidiaries, associates and joint ventures
(a)
66
Income tax 
 
(25)
Net comprehensive loss under IFRS 
 
(895)
 
(a)
Include adjustment due to change to accounting standards (see Note 2.2.1 to the Unaudited Condensed Interim Consolidated Financial Statements).
 
 
9
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)
 
2.2.3.
Explanation of the transition to IFRS
 
Technical Resolution N° 26 – The Company accounts for investments in subsidiaries under the equity method including any adjustment in the Consolidated Financial Statements, so that the equity and income corresponding to the controlling interest resulting from Consolidated Financial Statements filed together with Separate Financial Statements are the same in both sets of financial statements.
 
IFRS - Investments in entities in which the Company exercises control, are accounted for under the equity method. Under this method, the investment is recorded at original cost and periodically increased (decreased) by the investor's proportionate share of earnings (losses) and other comprehensive income of the subsidiary and decreased by all dividends received from the subsidiary.
 
In accordance with IFRS 28, paragraph 27, the interest in the investee is computed based on the Consolidated Financial Statements of such investee after any adjustment related to unification of accounting criteria, without regard to any interest that the investee may have in other entities. As a result, the company has recognized its direct interest related to investments in subsidiaries, associates and companies under joint control, based on the Consolidated Financial Statements of such companies.
 
Below is an outline of the adjustments recorded as explained above in relation to transactions affecting the non-controlling interest reserve of its subsidiaries, associates and entities under joint control where the company holds a direct interest:
 
●
Acquisition of additional interests in controlled companies: the acquisition price in excess of the book value of the subsidiary is recorded as in increase in assets.
●
Sale of interest in controlling companies where control is not lost: the difference between the sale price charged for the shares and the book value is recorded in the statement of income / (operations).
●
Dilution of interest, other shareholders: the result caused by the interest dilution has been recorded in the statement of income / (operations).
 
Changes in non-controlling interest reserve set up before July 1, 2015 has been reclassified under retained earnings.
 
 
10
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)
 
2.3.
Significant accounting policies
 
The accounting policies applied in the preparation of these Unaudited Condensed Interim Financial Statements are consistent with those applied in the Annual Financial Statements as of June 30, 2016, except for the changes generated by implementation of Technical Resolution N° 43, as described in Note 2.1 and for the change of accounting standard mentioned in Note 2.2.1 to the condensed interim Consolidated Financial Statements.
 
2.4.
Use of estimates
 
The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Future results might differ from the estimates and evaluations made at the date of preparation of these Unaudited Interim Condensed Separate Financial Statements.
 
In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the significant judgments made by Management in applying the Company’s accounting policies and the main sources of uncertainty were the same applied by the Company in the preparation of the Separate Financial Statements for the fiscal year ended June 30, 2016, except for changes in provisions for income tax, for legal claims and for doubtful accounts.
 
3.
Seasonal effects on operations
 
The operations of the Company are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between January and September every year. Wheat is generally harvested between November and February every year. However, milk 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 each quarter.
 
4.
Acquisitions and disposals
 
See summary of acquisitions and additional disposals of the Company for the nine-month period ended March 31, 2017 in Note 4 to Unaudited Condensed Interim Consolidated Financial Statements.
 
 
11
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
5.
Financial risk management and fair value estimates
 
5.1.            
Financial risk
 
The Company’s activities are exposed to several financial risks, market risk (including exchange rate risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.
 
The Unaudited Condensed Interim Separate Financial Statements do not include all the information and disclosures of the risk management, so they should be read together with the annual Separate Financial Statements as of June 30, 2016. There have been no significant changes in the risk management or risk management policies applied by the Company since the fiscal year-end.
 
5.2.            
Fair value estimates
 
Since June 30, 2016, to the balance sheet date, there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets, liabilities or biological assets (either measured at fair value or amortized cost). Nor there have been transfers between the several hierarchies used in estimating the fair value of the Company’s financial instruments, or reclassifications among their respective categories.
 
6.
Information about principal subsidiaries, associates and joint ventures
 
The Company conducts its business through several subsidiaries, associates and joint ventures.
 
As mentioned in Note 1 to the Unaudited Condensed Consolidated Financial Statements, the Company holds an indirect interest in IDBD through IRSA. This Israeli company is one of the largest and most significant conglomerates of Israel, which takes part in many markets and sectors of the industry. This note describes the factors affecting cash generation by IDBD and its ability to meet financial commitments. IDBD understands that it has sufficient resources to continue with its activity for at least 12 months following the date of this Unaudited Condensed Interim Separate Financial Statements and estimates that currently there are no significant uncertainties on the Company’s capacity to operate as a going concern, as it happened in prior fiscal years.
 
 
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
6.
Information about principal subsidiaries, associates and joint ventures (Continued)
 
Set out below are the changes in Company’s investment in subsidiaries, associates and joint ventures for the nine-month period ended March 31, 2017 and for the fiscal year ended June 30, 2016:
 
 
March 31,
 2017
 
June 30,
2016
Beginning of the period / year adjusted 
2,560
 
2,880
Effect of merger Agromanagers 
(5)
 
-
Acquisition of subsidiaries and associates (i) 
(89)
 
66
Capital contribution 
65
 
127
Disposal of interest in subsidiaries 
7
 
(22)
Share of profit / (loss) of subsidiaries, associates and joint ventures
1,302
 
(796)
Other comprehensive income / (loss) from share of changes in subsidiaries’ equity
30
 
(30)
Currency translation adjustment 
838
 
346
Equity-settled compensation 
5
 
10
Dividends distributed 
(93)
 
(55)
Reimbursement of expired dividends 
-
 
6
Intergroup transactions  
-
 
4
Share of changes in subsidiaries’ equity 
(1)
 
24
End of the period / year (ii) 
4,619
 
2,560
 
(i)
Includes the effect of changes in subsidiaries as consequence of repurchase of equity interest.
(ii)
Includes a balance of Ps. (3) reflecting interests in companies with negative equity as of June 30, 2016 which are reclassified to “Provisions” (Note 17).
 
See changes in Company’s investment in associates and joint ventures for the nine-month period ended March 31, 2017 and for the year ended June 30, 2016 in Notes 8 and 9 to the Unaudited Condensed Interim Consolidated Financial Statements.
 
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
6.
Information about principal subsidiaries, associates and joint ventures (Continued)
 
Issuer and type
of securities
Class
Amount
Value recorded as of 03.31.17
 Value recorded as of 06.30.16
Market value as of 03.31.17
Issuer's information
Interest in common Shares
Main activity
Place of business / country of incorporation
Last financial statement issued
Common Shares (nominal value)
Income (loss) for the period
Shareholders' equity  
Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brasilagro
Shares
23,291,500
1,375
1,006
Rs. 11.48
Agricultural
Brazil
875
35
3,208
42.86%
 
Higher value
 
198
83
 
 
 
 
 
 
 
 
Goodwill
 
13
10
 
 
 
 
 
 
 
 
Intergroup transactions
 
(1)
(1)
 
 
 
 
 
 
 
 
 
 
1,585
1,098
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agropecuaria Santa Cruz de la Sierra S.A.
Shares
1,351,949,253
524
520
Not publicly
Agricultural
Uruguay
264
(4)
366
100.00%
(formerly Doneldon S.A.)
Intergroup transactions
 
(158)
(158)
traded
 
 
 
 
 
 
 
 
 
366
362
 
 
 
 
 
 
 
 
 
 
 
 
Not publicly
 
 
 
 
 
 
Futuros y Opciones.Com S.A.
Shares
972,612
47
31
Traded
Brokerage
Argentina
2
43
78
59.59%
 
 
 
47
31
 
 
 
 
 
 
 
 
 
 
 
 
Not publicly
 
 
 
 
 
 
Amauta Agro S.A. (formerly FyO Trading S.A.)
Shares
505,603
1
1
Traded
Brokerage
Argentina
23
1
24
2.20%
 
 
 
1
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Helmir S.A.
Shares
548,347,685
368
342
Not publicly traded
Investment
Uruguay
91
19
368
100.00%
 
Intergroup transactions
 
                (4)
-
 
 
 
 
 
 
 
 
 
 
364
342
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sociedad Anónima Carnes Pampeanas S.A.
Shares
218,487,588
23
52
Not publicly traded
Agroindustrial
Argentina
220
(93)
23
99.318%
 
 
 
23
52
 
 
 
 
 
 
 
 
 
14
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
 (All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
6.
Information about principal subsidiaries, associates and joint ventures (Continued)
 
Issuer and type
of securities
Class
Amount
Value recorded as of 03.31.17
 Value recorded as of 06.30.16
Market value as of 03.31.17
Issuer's information
Interest in common Shares
Main activity
Place of business /
country of incorporation
Last financial statement issued
Common Shares (nominal value)
Income (loss) for the period
Shareholders' equity  
 
 
 
 
 
 
 
 
 
 
 
 
IRSA Inversiones y Representaciones
Shares
364,518,521
2,304
704
29.20
Real Estate
Argentina
575
2,152
3,635
63.38%
Sociedad Anónima
Intergroup transactions
 
(222)
(222)
 
 
 
 
 
 
 
 
Higher value
 
92
122
 
 
 
 
 
 
 
 
Goodwill
 
14
14
 
 
 
 
 
 
 
 
 
 
2,188
618
 
 
 
 
 
 
 
Total Subsidiaries
 
 
4,574
2,504
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Not publicly
Warehousing
 
 
 
 
 
Granos Olavarría S.A.
Shares
11,264
2
1
traded
and
Argentina
1
43
71
2.20%
 
 
 
2
1
 
Brokerage
 
 
 
 
 
 
 
 
 
 
Not publicly
 
 
 
 
 
 
Agromanagers S.A. (i)
Shares
(i)
-
3
traded
Investment
Argentina
N/A
N/A
N/A
N/A
 
Goodwill
 
-
1
 
 
 
 
 
 
 
 
 
 
-
4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agrofy S.A. (ii)
Shares
-
-
(3)
Not publicly traded
Advertising
Argentina
N/A
N/A
N/A
N/A
 
 
 
-
(3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agrouranga S.A.
Shares
893,069
32
43
Not publicly traded
Agricultural
Argentina
3
30
89
35.72%
 
Higher value
 
11
11
 
 
 
 
 
 
 
 
 
 
43
54
 
 
 
 
 
 
 
Total Associates
 
 
45
56
 
 
 
 
 
 
 
Total Investments in subsidiaries, associates and joint ventures as of 03.31.17
 
 
(*) 4,619
-
 
 
 
 
 
 
 
Total Investments in subsidiaries, associates and joint ventures as of 06.30.16
 
 
-
(*) 2,560
 
 
 
 
 
 
 
(*) 
Includes a balance of Ps. (3) reflecting interests in companies with negative equity as of June 30, 2016 which are reclassified to “Provisions” (Note 17).
(i) 
During September 2016 Agro Managers S.A. merged into the Company (Note 25).
(ii) 
During February 2017 the Company sold its equity interest in Agrofy Global.
 
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
7.
Investment properties
 
Changes in Company’s investment properties for the nine-month period ended as of March 31, 2017 and for the fiscal year ended June 30, 2016 were as follows:
 
 
March 31,
 2017
 
June 30,
2016
Costs 
14
 
15
Accumulated depreciation 
(5)
 
(4)
Net book amount 
9
 
11
 
 
 
 
Beginning of the period / year 
9
 
11
Additions 
-
 
1
Reclassification to property, plant and equipment 
(8)
 
(1)
Disposals 
-
 
(1)
Depreciation charges (i) 
-
 
(1)
End of the period / year 
1
 
9
 
 
 
 
Costs 
6
 
14
Accumulated depreciation 
(5)
 
(5)
Net book amount 
1
 
9
 
(i)
Depreciation charges of investment property were included in “Costs” in the Statement of Income / (Operations) (Note 22).
 
The following amounts have been recognized in the statement of income / (operations):
 
 
March 31,
 2017
 
March 31,
 2016
Rental and service income 
4
 
16
Direct operating expenses 
5
 
5
 
 
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
8.
Property, plant and equipment
 
Changes in Company’s property, plant and equipment for the nine-month period ended March 31, 2017 and for the fiscal year ended June 30, 2016 were as follows:
 
 
Owner-occupied farmland (ii)
 
Others
 
March 31,
 2017
 
June 30,
2016
Costs                                                     
530
 
50
 
580
 
546
Accumulated depreciation                                                     
(64)
 
(28)
 
(92)
 
(75)
Net book amount                                                     
466
 
22
 
488
 
471
 
 
 
 
 
 
 
 
Opening net book amount                                                     
466
 
22
 
488
 
471
Additions                                                     
58
 
13
 
71
 
33
Reclassifications of investment properties
8
 
-
 
8
 
1
Disposals                                                     
(14)
 
-
 
(14)
 
-
Depreciation charges (i) (Note 22)                                                     
(10)
 
(5)
 
(15)
 
(17)
Closing net book amount                                                     
508
 
30
 
538
 
488
 
 
 
 
 
 
 
 
Costs                                                     
582
 
63
 
645
 
580
Accumulated depreciation                                                     
(74)
 
(33)
 
(107)
 
(92)
Net book amount                                                     
508
 
30
 
538
 
488
 
(i)
For the nine-month period ended March 31, 2017, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 14 under the line item “Cost” in the Statement of Income / (Operations). For the fiscal year ended June 30, 2016, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 16 under the line item “Cost” in the Statement of Income / (Operations).
(ii)
Includes farms, buildings and facilities of farmlands properties.
 
9.
Intangible assets
 
Changes of the Company’s intangible assets for the nine-month period ended as of March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
Computer software
 
 
Rights of use
 
 
March 31,
 2017
 
June 30,
2016
Costs                                                            
1
 
 
20
 
21
 
21
Accumulated amortization                                                            
-
 
 
(4)
 
(4)
 
(3)
Net book amount                                                            
1
 
 
16
 
17
 
18
 
 
 
 
 
 
 
 
Opening net book amount                                                            
1
 
 
16
 
17
 
18
Additions                                                            
2
 
 
-
 
2
 
 
-
Amortization charges (i)                                                            
(1)
 
 
(1)
 
(2)
 
(1)
 
Closing net book amount                                                            
2
 
 
15
 
17
 
17
 
 
 
 
 
 
 
 
Costs                                                            
3
 
 
20
 
23
 
21
Accumulated amortization                                                            
(1)
 
 
(5)
 
(6)
 
(4)
Net book amount                                                            
2
 
 
15
 
17
 
17
 
(i)
Amortization charges are included in “General and administrative expenses” in the Statement of Income / (Operations). There is no impairment charges for any of the periods presented.

 
 
17
 

 

Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
10.
Biological assets
 
Changes in the Company’s biological assets for the nine-month period ended March 31, 2017 and for the year ended as of June 30, 2016 were as follows:
 
 
March 31,
 2017
 
June 30,
2016
Beginning of the period / year 
919
 
459
Increase due to purchases 
29
 
12
Initial recognition and changes in the fair value of biological assets 
858
 
1,110
Decrease due to harvest 
(530)
 
(522)
Decrease due to sales 
(151)
 
(137)
Decrease due to consumption 
(2)
 
(3)
End of the period / year 
1,123
 
919
 
The following tables present the Company’s biological assets that are measured at fair value as of March 31, 2017 and June 30, 2016 and their allocation to the fair value hierarchy:
 
 
 
March 31, 2017
 
Classification
Level 1
 
Level 2
 
Level 3
 
Total
Dairy cattle 
Production
-
 
46
 
-
 
46
Breeding cattle 
Production
-
 
478
 
-
 
478
Other cattle 
Production
-
 
9
 
-
 
9
Other biological assets (i) 
Production
9
 
-
 
-
 
9
Total non-current biological assets
 
9
 
533
 
-
 
542
 
 
 
 
 
 
 
 
 
Breeding cattle 
Consumable
-
 
82
 
-
 
82
Sown land-crops 
Production
1
(i)
-
 
497
 
498
Other cattle 
Consumable
-
 
1
 
-
 
1
Total current biological assets                                                    
 
1
 
83
 
497
 
581
Total biological assets                                                    
 
10
 
616
 
497
 
1,123
 
 
 
June 30, 2016
 
Classification
Level 1
 
Level 2
 
Level 3
 
Total
Dairy cattle 
Production
-
 
49
 
-
 
49
Breeding cattle 
Production
-
 
413
 
-
 
413
Other cattle 
Production
-
 
9
 
-
 
9
Other biological assets (i) 
Production
6
 
-
 
-
 
6
Total non-current biological assets
 
6
 
471
 
-
 
477
 
 
 
 
 
 
 
 
 
Breeding cattle 
Consumable
-
 
75
 
-
 
75
Other cattle 
Consumable
-
 
1
 
-
 
1
Sown land-crops 
Production
10
(i)
-
 
356
 
366
Total current biological assets                                                    
 
10
 
76
 
356
 
442
Total biological assets                                                    
 
16
 
547
 
356
 
919
 
(i)
Biological assets that have no significant growth, valued at cost, since it is considered that this value is similar to fair value.
 
 
 
18
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
10.
Biological assets (Continued)
 
The following table presents the changes in Level 3 biological assets for the nine-month period ended March 31, 2017 and for the year ended June 30, 2016:
 
 
Sown land-crops with significant biological growth
As of June 30, 2015 
40
Initial recognition and changes in the fair value of biological assets 
838
Decrease due to harvest 
(522)
As of June 30, 2016 
356
Initial recognition and changes in the fair value of biological assets 
671
Decrease due to harvest 
(530)
As of March 31, 2017 
497
 
When no quoted prices are available in an active market, values are based on recognized valuation methods. The company uses a range of valuation models for the measurement of Level 2 and Level 3 biological assets. The following table presents models and main parameters:
 
Level 2
 
Description
 
Pricing model
 
Parameters
 
Cattle
 
Comparable market prices
 
Price per livestock head/kg
 and per category
 
 
Level 3
 
Description
 
Model
 
Parameters
 
Ranges / Values
 
Unit of measurement
Corn
 
Discounted cash flows
 
Yields
 
1.50 – 11.91
 
Tn/ha
 
 
Future sale prices
 
2,286 – 2,743
 
Ps./Tn
 
 
Selling expenses
 
377 – 1,630
 
Ps./Tn
 
 
Operating cost
 
1,211 – 12,145
 
Ps./ha
Soybeans
 
Discounted cash flows
 
Yields
 
0.96 – 5.77
 
Tn/ha
 
 
Future sale prices
 
3,582 – 3,759
 
Ps./Tn
 
 
Selling expenses
 
428 – 1,492
 
Ps./Tn
 
 
Operating cost
 
668 – 8,154
 
Ps./ha
Others
 
Discounted cash flows
 
Yields
 
0.5 – 32
 
Tn/ha
 
 
Future sale prices
 
262 – 10,465
 
Ps./Tn
 
 
Selling expenses
 
761 – 1,484
 
Ps./Tn
 
 
Operating cost
 
1,608 – 11,718
 
Ps./ha
 
See information on the sensitivity of fair value valuation to changes in material non-observable input data in Note 14 to the Unaudited Condensed Interim Consolidated Financial Statements.
 
 
19
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
10.
Biological assets (Continued)
 
During the nine-month period ended March 31, 2017 and the year ended June 30, 2016 there have been no transfers between the several tiers used in estimating the fair value of the Company’s biological assets, or reclassifications among their respective categories.
 
See information on valuation processes used by the entity in Note 14 to the Consolidated Financial Statements as of June 30, 2016.
 
As of March 31, 2017 and June 30, 2016, the better and maximum use of biological assets shall not significantly differ from the current use.
 
11.
Inventories
 
Breakdown of Company’s inventories as of March 31, 2017 and June 30, 2016 are as follows:
 
 
March 31,
 2017
 
June 30,
2016
Current
 
 
 
Crops 
97
 
290
Materials and supplies 
90
 
93
Seeds and fodders 
48
 
108
Total inventories 
235
 
491
 
As of March 31, 2017 and June 30, 2016 the cost of inventories recognized as expense amounted to Ps. 623 and Ps. 649, respectively and they have been included in “Costs”.
 
12.
Financial instruments by category
 
Determining fair values
 
See determination of the fair value of the Company's financial instruments in Note 16 to the Consolidated Financial Statements as of June 30, 2016.
 
 
20
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
12.
Financial instruments by category (Continued)
 
The following tables present the Company’s financial assets and financial liabilities that are measured at fair value as of March 31, 2017 and June 30, 2016 and their allocation to the fair value hierarchy:
 
 
Financial assets at amortized cost
 
Financial assets at fair value through profit or loss
 
Subtotal financial assets
 
Non-financial assets
 
Total
March 31, 2017
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
Assets as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding allowance for doubtful account of trade and other receivables) (Note 13)
263
 
-
-
-
 
263
 
243
 
506
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Crops options                                               
-
 
7
-
-
 
7
 
-
 
7
- Crops futures                                              
-
 
29
-
-
 
29
 
-
 
29
Restricted assets (i)                                               
46
 
-
-
-
 
46
 
-
 
46
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 - Cash on hand and at bank                                               
4
 
-
-
-
 
4
 
-
 
4
 - Short term investments                                               
-
 
10
-
-
 
10
 
-
 
10
Total                                               
313
 
46
-
-
 
359
 
243
 
602
 
(i) Corresponds to the employee capitalization plan.
 
 
Financial liabilities
at amortized cost
 
Financial liabilities
at fair value
 
Subtotal financial liabilities
 
Non-financial liabilities
 
Total
Liabilities as per statement of financial position
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
Trade and other payables (Note 16)                                               
335
 
-
-
-
 
335
 
58
 
393
Borrowings (excluding finance lease liabilities) (Note 18)
4,805
 
-
-
-
 
4,805
 
-
 
4,805
Finance leases (Note 18)                                               
2
 
-
-
-
 
2
 
-
 
2
Total                                               
5,142
 
-
-
-
 
5,142
 
58
 
5,200
 
 
Financial assets at amortized cost
 
Financial assets at fair value through profit or loss
 
Subtotal financial assets
 
Non-financial assets
 
Total
June 30, 2016
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
Assets as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding allowance for doubtful account of trade and other receivables) (Note 13)
288
 
-
-
-
 
288
 
108
 
396
Investment in financial assets:
 
 
 
 
 
 
 
 
 
 
 
 - Mutual funds                                               
-
 
15
-
-
 
15
 
-
 
15
 - Government bonds                                               
-
 
7
-
-
 
7
 
-
 
7
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Foreign-currency contracts                                               
-
 
-
15
-
 
15
 
-
 
15
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 - Cash on hand and at bank                                               
8
 
-
-
-
 
8
 
-
 
8
 - Short term investments                                               
-
 
3
-
-
 
3
 
-
 
3
Total                                               
296
 
25
15
-
 
336
 
108
 
444
 
 
21
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
12.
Financial instruments by category (Continued)
 
 
Financial liabilities
at amortized cost
 
Financial liabilities
at fair value
 
Subtotal financial liabilities
 
Non-financial liabilities
 
Total
Liabilities as per statement of financial position
 
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
Trade and other payables (Note 16)                                               
291
 
-
-
-
 
291
 
15
 
306
Borrowings (excluding finance lease liabilities) (Note 18)
4,316
 
-
-
-
 
4,316
 
-
 
4,316
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 - Foreign-currency contracts                                               
-
 
-
9
-
 
9
 
-
 
9
 - Crops futures 
-
 
14
-
-
 
14
 
-
 
14
Total                                               
4,607
 
14
9
-
 
4,630
 
15
 
4,645
 
When no quoted prices are available in an active market, fair values (particularly with derivatives) are based on recognized valuation methods. The Company uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from Note 16 to the Consolidated Financial Statements as of June 30, 2016.
 
13.
Trade and other receivables
 
Breakdown of the Company’s trade and other receivables as of March 31, 2017 and June 30, 2016 are as follows:
 
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
Loans 
2
 
-
Total non-current other receivables 
2
 
-
Total non-current trade and other receivables 
2
 
-
Current
 
 
 
Receivables from sale of agricultural products and services
82
 
68
Debtors under legal proceedings 
9
 
9
Less: allowance for doubtful accounts 
(9)
 
(8)
Total current trade receivables 
82
 
69
Prepayments 
120
 
43
Tax credits 
119
 
60
Loans 
8
 
5
Advance payments 
4
 
5
Others 
18
 
7
Total current other receivables 
269
 
120
Related parties (Note 26) 
144
 
199
Total current trade and other receivables 
495
 
388
Total trade and other receivables 
497
 
388
 
22
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
13.
Trade and other receivables (Continued)
 
The fair value of current trade and other receivables approximate their respective carrying amounts because, due to their short-term nature, as the impact of discounting is not considered significant. Fair values are based on discounted cash flows (Level 2 of fair value hierarchy).
 
The carrying amounts of the Company’s trade and other receivables denominated in foreign currencies are detailed in Note 29.
 
Trade receivables are generally presented in the statement of financial position net of allowances for doubtful receivables. Impairment policies and procedures by type of receivables are discussed in detail in Note 2.16 to the Consolidated Financial Statements as of June 30, 2016.
 
Movements on the Company’s allowance for doubtful accounts are as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year 
8
 
8
Charges 
1
 
-
End of the period / year 
9
 
8
 
The addition and release of allowance for doubtful accounts have been included in “Selling expenses” in the Statement of Income / (Operations) (Note 22). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.
 
 
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
14.
Cash flow information
 
Following is a detailed description of cash flows used in the Company’s operations for the nine-month period ended as of March 31, 2017 and 2016:
 
 
March 31,
2017
 
March 31,
2016
Profit / (Loss) for the period 
1,032
 
(895)
Adjustments for:
 
 
 
Income tax expense 
(157)
 
(294)
Depreciation and amortization 
16
 
15
Gain from disposal of farmlands 
(72)
 
-
Share based payments 
2
 
3
Unrealized gain from derivative financial instruments of commodities
(45)
 
-
Gain from derivative financial instruments (except commodities)
(9)
 
(155)
Changes in fair value of financial assets at fair value through profit or loss
(4)
 
(81)
Accrued interest, net 
151
 
245
Unrealized initial recognition and changes in the fair value of biological assets
(638)
 
(655)
Changes in the net realizable value of agricultural products after harvest
80
 
(135)
Provisions 
34
 
12
Gain from repurchase of Non-convertible Notes 
(19)
 
-
Gain from disposal of associates, subsidiaries and joint ventures
(7)
 
(66)
Share of (profit) / loss of subsidiaries, associates and joint ventures
(1,302)
 
362
Unrealized foreign exchange loss, net 
78
 
1,303
Changes in operating assets and liabilities:
 
 
 
Decrease in biological assets 
434
 
120
Decrease in inventories 
176
 
276
Increase in trade and other receivables 
(108)
 
(178)
Increase in derivative financial instruments 
(3)
 
(1)
(Decrease) / Increase in trade and other payables 
(19)
 
74
(Decrease) / Increase in payroll and social security liabilities 
(4)
 
8
Net cash used in operating activities before income tax paid
(384)
 
(42)
 
 
 
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
14.
Cash flow information (Continued)
 
The following table shows a detail of non-cash transactions occurred in the nine-month period ended as of March 31, 2017 and 2016:
 
 
03.31.17
 
03.31.16
Non-cash activities
 
 
 
Increase of interest in subsidiaries, associates and joint ventures by a decrease in trade and other receivables
(64)
 
(36)
Increase of interest in subsidiaries, associates and joint venture by exchange differences on translating foreign operations
838
 
703
Decrease in interest in subsidiaries, associates and joint ventures due to the reserve for tender offer to non-controlling interests
-
 
121
Increase of interest in subsidiaries, associates and joint ventures through an increase in reserve for share based payments
5
 
10
Increase of interest in subsidiaries, associates and joint ventures through an increase in interest in other comprehensive income
-
 
31
Increase in trade and other receivables through a decrease in property, plant and equipment
(10)
 
-
Increase in property, plant and equipment through an increase in trade and other payables
(1)
 
-
Decrease in trade and other payables through an increase in borrowings 
(5)
 
-
Dividends not collected                                                                                                         
(8)
 
(1)
Stock plan granted                                                                                                         
(5)
 
(5)
Distribution of treasury shares                                                                                                         
(7)
 
-
Repayment of non-convertible notes through a decrease in other receivables                                                                                                         
-
 
(22)
 
 
 
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
15.
Shareholders’ Equity
 
 
Cost of treasury shares
Changes in interest in subsidiaries
Cumulative translation adjustment
Reserve forshare based compensation
Reserve for future dividends
Reserve for defined benefit plans
 
Hedging instruments
                                                                            Other subsidiaries reserves
 Reserve for the acquisition of securities issued by the Company
Total other reserves
Balance as of June 30, 2016                                                            
(32)
64
806
95
31
(6)
(24)
23
32
989
Adjustment due to change to accounting standards                                                            
-
-
-
-
-
-
-
-
-
-
Adjusted balances as of June 30, 2016                                                            
(32)
64
806
95
31
(6)
(24)
23
32
989
Other comprehensive income / (loss) for the period                                                            
-
-
838
-
-
(18)
48
-
 
868
Total comprehensive income / (loss) for the period 
-
-
838
-
-
(18)
48
-
 
868
Appropriation of retained earnings resolved by Ordinary
Shareholders’ Meeting held on October 31, 2016:
 
 
 
 
 
 
 
 
 
 
-Share Distribution                                                            
7
-
-
-
-
-
 
-
(7)
-
- Release of reserve for future dividends                                                            
-
-
-
-
(31)
-
 
-
-
(31)
Equity-settled compensation                                                            
-
-
-
10
-
-
 
-
-
10
Equity incentive plan granted                                                            
-
-
-
(5)
-
-
 
-
-
(5)
Changes in interest in subsidiaries                                                            
-
(98)
-
-
-
-
 
-
-
(98)
Balance as of March 31, 2017                                                            
(25)
(34)
1,644
100
-
(24)
24
23
25
1,733
 
 
Cost of treasury shares
Changes in interest in subsidiaries
Cumulative translation adjustment
Reserve forshare based compensation
Reserve for
future dividends
Reserve for defined benefit plans
Reserve for tender offer to non-controlling shareholders
Reserve for the acquisition of securities issued by the Company
Total other reserves
Balance as of June 30, 2015                                                            
(32)
-
463
82
-
-
-
32
545
Adjustment due to change to accounting standards                                                            
-
-
(3)
-
-
-
-
-
(3)
Adjusted balances as of June 30, 2015                                                            
(32)
-
460
82
-
-
-
32
542
Other comprehensive Income / (loss) for the period                                                            
-
-
703
-
-
(3)
-
8
708
Total comprehensive Income / (loss) for the period 
-
-
703
-
-
(3)
-
8
708
Appropriation of retained earnings resolved by Ordinary Shareholders’ Meeting held on October 30 and November 26, 2015:
 
 
 
 
 
 
 
 
 
- Reserve for future dividends                                                            
-
-
-
-
31
-
-
-
31
Equity-settled compensation                                                            
-
-
-
13
-
-
-
-
13
Equity incentive plan granted                                                            
-
-
-
(5)
-
-
-
-
(5)
Changes in interest in subsidiaries                                                            
-
(284)
-
-
-
-
-
-
(284)
Reserve for tender offer to non-controlling shareholders 
-
-
-
-
-
-
(121)
-
(121)
Share of changes in subsidiaries’ equity                                                            
-
-
-
-
-
-
-
26
26
Cumulative translation adjustment for interest held before business combination 
-
-
(91)
-
-
-
-
-
(91)
Balance as of March 31, 2016                                                            
(32)
(284)
1,072
90
31
(3)
(121)
66
819
 
26
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
16.
Trade and other payables
 
The detail of the Company’s trade and other payables as of March 31, 2017 and June 30, 2016 are as follows:
 
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
Tax on shareholders’ personal assets 
-
 
1
Total non-current other payables 
-
 
1
Total non-current trade and other payables 
-
 
1
Current
 
 
 
Trade payables 
151
 
124
Provisions 
81
 
136
Sales, rent and services payments received in advance 
32
 
4
Total current trade payables 
264
 
264
Taxes payable 
26
 
10
Others 
44
 
-
Total current other payables 
70
 
10
Related parties (Note 26) 
59
 
31
Total current trade and other payables 
393
 
305
Total trade and other payables 
393
 
306
 
The fair value of trade and other payables approximate their respective carrying amounts due to their short-term nature, as the impact of discounting is considered as not significant. Fair values are based on discounted cash flows (Level 2 of fair value hierarchy).
 
Book value of trade and other payables denominated in foreign currencies are detailed in Note 29.
 
17.
Provisions
 
The table below shows the movements in Company's provisions categorized by type of provision:
 
 
Labor and tax claims and other claims
 
Investments in subsidiaries, associates and joint ventures (i)
 
Total
As of June 30, 2015 
4
 
8
 
12
Additions 
3
 
3
 
6
Used during the period 
-
 
(8)
 
(8)
As of June 30, 2016 
7
 
3
 
10
Used during the period 
(1)
 
-
 
(1)
Disposals 
-
 
(3)
 
(3)
As of March 31, 2017 
6
 
-
 
6
(i)
Corresponds to equity interests in subsidiaries, associates and joint ventures with negative equity.
 
 
27
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
17.
Provisions (Continued)
 
The breakdown of total provisions is as follows:
 
 
March 31,
2017
 
June 30,
2016
Non-current 
5
 
10
Current 
1
 
-
 
6
 
10
 
18.
Borrowings
 
The detail of the Company’s borrowings as of March 31, 2017 and June 30, 2016 were as follows:
 
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
Non-convertible notes 
2,615
 
2,975
Bank loans and others 
676
 
175
Finance leases obligations 
1
 
-
Total non-current borrowings 
3,292
 
3,150
 
Current
 
 
 
Non-convertible notes 
246
 
676
Bank loans and others 
1,219
 
376
Bank overdrafts 
49
 
114
Finance leases obligations 
1
 
-
Total current borrowings 
1,515
 
1,166
Total borrowings 
4,807
 
4,316
 
 
28
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
18.
Borrowings (Continued)
 
 
 
 
 
 
 
 
 
 
 
 
Value as of
 
Secured / unsecured
 
Currency
 
Fixed / Floating
 
Effective
interest rate %
 
Nominal value
(in million)
 
March 31,
2017
 
June 30,
2016
Non-current
 
 
 
 
 
 
 
 
 
 
 
 
 
CRESUD NCN Class XIV due 2018 (i)                                              
Unsecured
 
US$
 
Fixed
 
1.50 %
 
32
 
234
 
481
CRESUD NCN Class XVI due 2018 (ii)                                              
Unsecured
 
US$
 
Fixed
 
1.50 %
 
109
 
1,547
 
1,649
CRESUD NCN Class XVIII due 2019 (iii)
Unsecured
 
US$
 
Fixed
 
4.00%
 
34
 
503
 
510
CRESUD NCN Class XXII due 2019 (v)                                              
Unsecured
 
US$
 
Fixed
 
4.00%
 
22
 
331
 
335
Loan from Banco Ciudad                                              
Unsecured
 
US$
 
Floating
 
Libor 6M + 300 bps or 6% (the higher)
 
20
 
141
 
172
Loan from Banco Río                                              
Unsecured
 
US$
 
Fixed
 
5.60%
 
40
 
535
 
-
Loan from Banco de La Pampa                                              
Unsecured
 
Ps.
 
Floating
 
Rate Survey PF 30-59 days
 
20
 
-
 
3
Finance lease obligations                                              
Secured
 
US$
 
Fixed
 
12.08%
 
-
 
1
 
-
Total non-current borrowings                                              
 
 
 
 
 
 
 
 
 
 
3,292
 
3,150
 
 
 
 
 
 
 
 
 
 
 
 
Value as of
 
Secured / unsecured
 
Currency
 
Fixed / Floating
 
Effective
interest rate %
 
Nominal value
(in million)
 
March 31,
2017
 
June 30,
2016
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
CRESUD NCN Class XIV due 2018 (ii)                                              
Unsecured
 
US$
 
Fixed
 
1.50 %
 
32
 
234
 
-
CRESUD NCN Class XVI due 2018 (ii)                                              
Unsecured
 
US$
 
Fixed
 
1.50 %
 
109
 
10
 
10
CRESUD NCN Class XVIII due 2019 (iii)
Unsecured
 
US$
 
Fixed
 
4.00%
 
34
 
3
 
2
CRESUD NCN Class XIX due 2016                                              
Unsecured
 
Ps.
 
Floating
 
Badlar + 250 bps
 
171
 
-
 
189
CRESUD NCN Class XX due 2017 (iv)                                              
Unsecured
 
US$
 
Fixed
 
2.50%
 
18
 
-
 
278
CRESUD NCN Class XXI due 2017                                              
Unsecured
 
Ps.
 
Floating
 
Badlar + 375 bps
 
192
 
(1)
 
197
Loan from Banco Ciudad                                              
Unsecured
 
US$
 
Floating
 
Libor 6M + 300 bps or 6% (the higher)
 
20
 
37
 
28
Loan from Banco de La Pampa                                              
Unsecured
 
Ps.
 
Floating
 
Rate Survey PF 30-59 days
 
20
 
3
 
7
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
US$
 
Fixed
 
2.50%
 
2
 
31
 
-
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
US$
 
Fixed
 
2.25%
 
5
 
77
 
-
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
US$
 
Fixed
 
2.75%
 
18
 
277
 
-
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
US$
 
Fixed
 
2.00%
 
8
 
120
 
-
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
Ps.
 
Fixed
 
23%
 
50
 
-
 
17
Loans from Banco de la Provincia de Buenos Aires
Unsecured
 
US$
 
Fixed
 
3.50%
 
15
 
-
 
225
Loans from Banco Río                                              
Unsecured
 
US$
 
Fixed
 
5.60%
 
40
 
68
 
-
Loans from Banco Río                                              
Unsecured
 
US$
 
Fixed
 
2.00%
 
10
 
154
 
-
Loans from Superville                                              
Unsecured
 
US$
 
Fixed
 
2.50%
 
3
 
46
 
-
Loans from Banco ICBC                                              
Unsecured
 
US$
 
Fixed
 
2.45%
 
20
 
308
 
-
Related parties borrowings (Note 26)                                              
Unsecured
 
US$
 
Fixed
 
4.21%
 
5
 
98
 
99
Bank overdrafts                                              
Unsecured
 
Ps.
 
Fixed
 
31.08%
 
-
 
49
 
114
Finance lease obligations                                              
Secured
 
US$
 
Fixed
 
9.70%
 
-
 
1
 
-
Total current borrowings                                              
 
 
 
 
 
 
 
 
 
 
1,515
 
1,166
Total borrowings                                              
 
 
 
 
 
 
 
 
 
 
4,807
 
4,316
 
(i)
Includes an outstanding balance of Ps. 28 and Ps. 28 with ERSA, as of 03.31.17 and 06.30.16, respectively.
(ii)
Includes an outstanding balance of Ps. 12, Ps. 153 and Ps. 16 with ERSA, IRSA CP and PAMSA, respectively, as of 03.31.17. Includes an outstanding balance of Ps. 12, Ps. 133 and Ps. 16 with ERSA, IRSA CP and PAMSA, respectively, as of 06.30.16.
(iii)
Includes an outstanding balance of Ps. 8 and Ps. 8 with IRSA CP as of 03.31.17 and 06.30.16, respectively.
(iv)
Includes an outstanding balance of Ps. 35, Ps. 21 and Ps. 99 with ERSA, IRSA CP and PAMSA, respectively, as of 06.30.16.
(v)
Includes an outstanding balance of Ps. 16 and Ps. 15 with IRSA CP as of 03.31.17 and 06.30.16, respectively.
 
 
29
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
18.
Borrowings (Continued)
 
The fair value of current borrowings at fixed-rate and current and non-current borrowings at floating-rate equals their carrying amount, as the impact of discounting is not significant. The fair value of all debts that are not quoted in the market are valued at their technical value that is nominal value plus accrued interest.
 
Book value of borrowings denominated in foreign currencies is detailed in Note 29.
 
The fair values of non-current borrowings at fixed rate (excluding finance leases) are as follows:
 
 
March 31,
2017
 
June 30,
2016
CRESUD NCN Class XIV due 2018 
492
 
433
CRESUD NCN Class XVI due 2018 
1,676
 
1,426
CRESUD NCN Class XVIII due 2019 
518
 
426
CRESUD NCN Class XXII due 2019 
350
 
287
Bank loans 
594
 
-
Total 
3,630
 
2,572
 
 
19.
Taxation
 
The detail of the provision for the Company’s income tax is as follows:
 
 
March 31,
2017
 
March 31,
2016
Deferred income tax 
157
 
294
Income tax 
157
 
294
 
The gross movements on the deferred income tax account were as follows:
 
 
March 31,
2017
 
June 30,
2016
Beginning of the period / year 
757
 
447
Charged to the Statement of Income / (Operations) 
157
 
310
End of the period / year 
914
 
757
 
 
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
19.
Taxation (Continued)
 
The Company´s income tax expense charge differs from the theoretical amount that would arise using the weighted average tax rate applicable to Company´s profit before income tax as follows:
 
 
March 31,
2017
 
March 31,
2016
Tax calculated at the tax applicable tax rate in effect 
(306)
 
416
Permanent differences:
 
 
 
Share of profit/(loss) in subsidiaries, associates and joint ventures
456
 
(127)
Non-taxable income 
-
 
11
Miscellaneous permanent differences 
7
 
(6)
Income tax 
157
 
294
 
20.
Revenues
 
 
March 31,
2017
 
March 31,
2016
Crops 
724
 
539
Cattle 
173
 
146
Dairy 
67
 
44
Supplies 
4
 
5
Leases and agricultural services 
4
 
16
Total revenues 
972
 
750
 
21.
Costs
 
 
March 31,
2017
 
March 31,
2016
Crops 
1,191
 
761
Cattle 
277
 
198
Dairy 
136
 
95
Supplies 
1
 
3
Leases and agricultural services 
5
 
5
Other costs 
7
 
7
Total costs 
1,617
 
1,069
 
31
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
22.
Expenses by nature
 
For the nine-month period ended as of March 31, 2017:
 
 
 
Costs
 
 
 
Cost of sales and agricultural services
 
Cost of agricultural production
 
Other operating costs
 
General and administrative expenses
 
Selling expenses
 
Total
Supplies and labors 
 
1
 
624
 
-
 
-
 
-
 
625
Leases and expenses 
 
-
 
2
 
-
 
4
 
-
 
6
Amortization and depreciation (i) 
 
1
 
11
 
2
 
2
 
-
 
16
Doubtful accounts (charge and recovery) 
 
-
 
-
 
-
 
-
 
1
 
1
Changes in biological assets and agricultural products
 
825
 
-
 
-
 
-
 
-
 
825
Advertising, publicity and other selling expenses
 
-
 
-
 
-
 
-
 
6
 
6
Maintenance and repairs 
 
-
 
23
 
-
 
7
 
-
 
30
Payroll and social security liabilities 
 
1
 
75
 
4
 
82
 
7
 
169
Fees and payments for services 
 
-
 
6
 
-
 
13
 
-
 
19
Freights 
 
-
 
18
 
-
 
-
 
158
 
176
Bank commissions and expenses 
 
-
 
1
 
-
 
3
 
3
 
7
Travel expenses and stationery 
 
-
 
10
 
1
 
4
 
-
 
15
Conditioning and clearance 
 
-
 
-
 
-
 
-
 
34
 
34
Director’s fees 
 
-
 
-
 
-
 
18
 
-
 
18
Taxes, rates and contributions 
 
-
 
12
 
-
 
-
 
35
 
47
Export expenses 
 
-
 
-
 
-
 
-
 
1
 
1
Total expenses by nature 
 
828
 
782
 
7
 
133
 
245
 
1,995
 
(i)
Includes Ps. 1 corresponding to shared services amortization.
 
 
32
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
22.
Expenses by nature (Continued)
 
For the nine-month period ended as of March 31, 2016:
 
 
 
Costs
 
 
 
Cost of sales and agricultural services
 
Cost of agricultural production
 
Other operating costs
 
General and administrative expenses
 
Selling expenses
 
Total
Supplies and labors                                                               
 
2
 
386
 
-
 
-
 
-
 
388
Leases and expenses                                                               
 
-
 
1
 
-
 
3
 
-
 
4
Amortization and depreciation (i)                                                               
 
1
 
9
 
2
 
3
 
-
 
15
Changes in biological assets and agricultural products
 
562
 
-
 
-
 
-
 
-
 
562
Advertising, publicity and other selling expenses
 
-
 
-
 
-
 
-
 
1
 
1
Maintenance and repairs                                                               
 
4
 
10
 
-
 
3
 
-
 
17
Payroll and social security liabilities                                                               
 
1
 
58
 
4
 
57
 
4
 
124
Fees and payments for services                                                               
 
-
 
3
 
1
 
12
 
-
 
16
Freights                                                               
 
-
 
9
 
-
 
-
 
74
 
83
Bank commissions and expenses                                                               
 
-
 
-
 
-
 
2
 
4
 
6
Travel expenses and stationery                                                               
 
-
 
8
 
-
 
2
 
-
 
10
Conditioning and clearance                                                               
 
-
 
-
 
-
 
-
 
19
 
19
Director’s fees                                                               
 
-
 
-
 
-
 
17
 
-
 
17
Taxes, rates and contributions                                                               
 
-
 
8
 
-
 
-
 
24
 
32
Export expenses                                                               
 
-
 
-
 
-
 
-
 
25
 
25
Total expenses by nature                                                               
 
570
 
492
 
7
 
99
 
151
 
1,319
 
(i)
Includes Ps. 1 corresponding to shared services amortization.
 
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
23.
Other operating results, net
 
 
March 31,
2017
 
March 31,
2016
Administration fees 
1
 
2
Gain from commodity derivative financial instruments 
45
 
-
Tax on shareholders’ personal assets 
-
 
(7)
Contingencies 
(2)
 
(3)
Gain from disposal of associates, subsidiaries and/or joint ventures
7
 
66
Others 
(4)
 
-
Total other operating results, net 
47
 
58
 
 
24.
Financial results, net
 
 
March 31,
2017
 
March 31,
2016
Finance income:
 
 
 
- Interest income 
15
 
8
- Foreign exchange gains 
4
 
95
Finance income 
19
 
103
 
 
 
 
Finance costs:
 
 
 
- Interest expenses 
(166)
 
(253)
- Foreign exchange losses 
(107)
 
(1,332)
- Other financial costs 
(22)
 
(18)
Finance costs 
(295)
 
(1,603)
 
 
 
 
Other financial results, net:
 
 
 
- Fair value gains of financial assets at fair value through profit or loss
4
 
81
- Gain from derivative financial instruments (except commodities)
9
 
155
- Gain from repurchase of NCN 
19
 
-
Total other financial results, net 
32
 
236
Total financial results, net 
(244)
 
(1,264)
 
25.
Merger with Agro Managers S.A.
 
During September 2016, the Company entered into a pre-merger commitment with its wholly-owned subsidiary Agro Managers S.A. whereby the Company would be the absorbent Company and Agro Managers would be the absorbed Company.
 
The effect of the merge with Agro Managers S.A. would have had on the Statement of Financial Position as of June 30, 2016 and Statements of Comprehensive Income and Statements of Cash Flows as of March 31, 2016 were no significant.
 
34
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
26.
Related party transactions
 
See description of the main transactions conducted with related parties in Note 35 to the Consolidated Financial Statements as of June 30, 2016.
 
The following is a summary of the balances with related parties as of March 31, 2017:
 
Related party
 
Description of transaction
 
Current
Trade and other receivables
 
Current
Trade and other
payables
 
Non-current Borrowings
 
Current Borrowings
Subsidiaries
 
 
 
 
 
 
 
 
 
 
IRSA Inversiones y Representaciones S.A
 
Corporate services 
 
1
 
-
 
-
 
-
 
Leases 
 
-
 
(5)
 
-
 
-
 
 
Reimbursement of expenses 
 
18
 
-
 
-
 
-
Brasilagro Companhia Brasileira de Propriedades Agrícolas (“Brasilagro”)
 
Reimbursement of expenses 
 
4
 
(7)
 
-
 
-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)
 
Reimbursement of expenses 
 
1
 
(1)
 
-
 
-
 
Sale of goods and/or services 
 
16
 
-
 
-
 
-
Helmir S.A.
 
Financial operations 
 
-
 
-
 
-
 
(98)
Ombú Agropecuaria S.A.
 
Administration fees 
 
3
 
-
 
-
 
-
 
 
Reimbursement of expenses 
 
1
 
-
 
-
 
-
Agropecuaria Acres del Sud S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Yatay Agropecuaria S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Yuchán Agropecuaria S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Futuros y Opciones.Com S.A.
 
 
Brokerage 
 
-
 
(4)
 
-
 
-
 
Reimbursement of expenses 
 
1
 
-
 
-
 
-
 
MAT operations 
 
37
 
-
 
-
 
-
 
Sale of suppliers 
 
-
 
(1)
 
-
 
-
Total Subsidiaries
 
 
 
88
 
(18)
 
-
 
(98)
 
 
35
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
26.
Related party transactions (Continued)
 
Related party
 
Description of transaction
 
Current
Trade and other receivables
 
Current
Trade and other
payables
 
Non-current Borrowings
 
Current Borrowings
Associates
 
 
 
 
 
 
 
 
 
 
Agro-Uranga S.A.
 
Dividends receivables 
 
9
 
-
 
-
 
-
Total Associates
 
 
 
9
 
-
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
Subsidiaries of the subsidiaries
 
 
 
 
 
 
 
 
 
 
IRSA Propiedades Comerciales S.A.
 
Reimbursement of expenses 
 
20
 
-
 
-
 
-
 
Non-convertible notes 
 
-
 
-
 
(176)
 
(1)
 
Corporate services 
 
-
 
(7)
 
-
 
-
Emprendimiento Recoleta S.A.
 
Non-convertible notes 
 
-
 
-
 
(26)
 
(14)
Panamerican Mall S.A.
 
Non-convertible notes 
 
-
 
-
 
(16)
 
-
Amauta Agro S.A. (formerly FyO Trading S.A.)
 
Purchase of goods and/or services
 
-
 
(3)
 
-
 
-
 
 
Reimbursement of expenses 
 
1
 
-
 
-
 
-
Total Subsidiaries of the subsidiaries
 
 
 
21
 
(10)
 
(218)
 
(15)
 
 
 
 
 
 
 
 
 
 
 
Other Related parties
 
 
 
 
 
 
 
 
 
 
Consultores Asset Management S.A. (CAMSA)
 
Provisions for management fees
 
-
 
(22)
 
-
 
-
San Bernardo de Córdoba S.A.
 
Leases paid in advance 
 
-
 
(1)
 
-
 
-
Other Related parties
 
 
 
-
 
(23)
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
Parent company
 
 
 
 
 
 
 
 
 
 
Inversiones Financieras del Sur S.A.
 
Financial operations 
 
26
 
-
 
-
 
-
Total Parent company
 
 
 
26
 
-
 
-
 
-
 
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
Directors and Senior Management
 
Director's fees 
 
-
 
(8)
 
-
 
-
Total Directors and Senior Management
 
 
 
-
 
(8)
 
-
 
-
 
 
 
 
144
 
(59)
 
(218)
 
(113)
 
 
36
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
26.
Related party transactions (Continued)
 
The following is a summary of the balances with related parties as of June 30, 2016:
 
Related party
 
Description of transaction
 
Current
Trade and other receivables
 
Current
Trade and other
payables
 
Non-current Borrowings
 
Current Borrowings
Subsidiaries
 
 
 
 
 
 
 
 
 
 
IRSA Inversiones y Representaciones Sociedad Anónima
 
Corporate services 
 
23
 
-
 
-
 
-
 
Leases 
 
-
 
(3)
 
-
 
-
 
Share based payments 
 
-
 
(1)
 
-
 
-
 
Reimbursement of expenses 
 
5
 
-
 
-
 
-
Brasilagro Companhia Brasileira de Propriedades
 
Reimbursement of expenses 
 
2
 
(4)
 
-
 
-
Agrícolas (“Brasilagro”)
 
Dividends receivables 
 
4
 
-
 
-
 
-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)
 
Reimbursement of expenses 
 
1
 
-
 
-
 
-
 
Sale of goods and/or services 
 
4
 
-
 
-
 
-
Helmir S.A.
 
Financial operations 
 
-
 
-
 
-
 
(99)
Ombú Agropecuaria S.A.
 
Administration fees 
 
4
 
-
 
-
 
-
Agropecuaria Acres del Sud S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Yatay Agropecuaria S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Yuchán Agropecuaria S.A.
 
Administration fees 
 
2
 
-
 
-
 
-
Futuros y Opciones.Com S.A.
 
Brokerage 
 
65
 
-
 
-
 
-
 
MAT operations 
 
-
 
(13)
 
-
 
-
 
Sale of suppliers 
 
-
 
(1)
 
-
 
-
Total Subsidiaries
 
 
 
114
 
(22)
 
-
 
(99)
 
 
 
 
 
 
 
 
 
 
 
Associates
 
 
 
 
 
 
 
 
 
 
Agro-Uranga S.A.
 
Dividends receivables 
 
1
 
-
 
-
 
-
Total Associates
 
 
 
1
 
-
 
-
 
-
 
 
37
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
26.
Related party transactions (Continued)
 
Related party
 
Description of transaction
 
Current
Trade and other receivables
 
Current
Trade and other
payables
 
Non-current Borrowings
 
Current Borrowings
Subsidiaries of the subsidiaries
 
 
 
 
 
 
 
 
 
 
IRSA Propiedades Comerciales S.A.
 
Reimbursement of expenses 
 
25
 
-
 
-
 
-
 
Share based payments 
 
-
 
(1)
 
-
 
-
 
Non-convertible notes 
 
-
 
-
 
(156)
 
(21)
 
Corporate services 
 
44
 
-
 
-
 
-
 
Leases 
 
-
 
(1)
 
-
 
-
Emprendimiento Recoleta S.A.
 
Non-convertible notes 
 
-
 
-
 
(40)
 
(35)
Panamerican Mall S.A.
 
Non-convertible notes 
 
-
 
-
 
(16)
 
(99)
Amauta Agro S.A. (formerly FyO Trading S.A.)
 
Purchase of goods and/or services
 
-
 
(4)
 
-
 
-
 
Contributions to be paid in 
 
-
 
(1)
 
-
 
-
Total Subsidiaries of the subsidiaries
 
 
 
69
 
(7)
 
(212)
 
(155)
 
 
 
 
 
 
 
 
 
 
 
Other Related parties
 
 
 
 
 
 
 
 
 
 
Consultores Asset Management S.A. (CAMSA)
 
 Reimbursement of expenses 
 
2
 
-
 
-
 
-
Total Other Related Parties
 
 
 
2
 
-
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
Parent company
 
 
 
 
 
 
 
 
 
 
Inversiones Financieras del Sur S.A.
 
Financial operations 
 
13
 
-
 
-
 
-
Total Parent Company
 
 
 
13
 
-
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
Directors
 
Director’s fees 
 
-
 
(2)
 
-
 
-
Total Directors and Senior Management
 
 
 
-
 
(2)
 
-
 
-
 
 
 
 
199
 
(31)
 
(212)
 
(254)
 
 
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
26.
Related party transactions (Continued)
 
The following is a summary of the transactions with related parties for the nine-month period ended as of March 31, 2017:
 
Related party
 
Leases and/or rights
of use
 
Sale of goods and/or services
 
Purchase of goods and/or services
 
Corporate services
 
Legal
services
 
Financial operations
 
Compensation of Directors and Senior Management
 
Management fees
Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IRSA Inversiones y Representaciones Sociedad Anónima
 
(1)
 
-
 
-
 
35
 
-
 
-
 
-
 
-
Futuros y Opciones.Com S.A.
 
-
 
-
 
(3)
 
-
 
-
 
-
 
-
 
1
Amauta Agro S.A. (formerlyFyO Trading S.A.)
 
-
 
1
 
(16)
 
-
 
-
 
-
 
-
 
-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)
 
-
 
68
 
-
 
-
 
-
 
-
 
-
 
-
Helmir S.A.
 
-
 
-
 
-
 
-
 
-
 
(5)
 
-
 
-
Total Subsidiaries
 
(1)
 
69
 
(19)
 
35
 
-
 
(5)
 
-
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agro-Uranga S.A.
 
-
 
3
 
-
 
-
 
-
 
 
 
-
 
-
Total Associates
 
-
 
3
 
-
 
-
 
-
 
 
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subsidiaries of the subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emprendimiento Recoleta S.A.
 
-
 
-
 
-
 
-
 
-
 
(2)
 
-
 
-
Panamerican Mall S.A.
 
-
 
-
 
-
 
-
 
-
 
(4)
 
-
 
-
IRSA Propiedades Comerciales S.A.
 
(3)
 
-
 
-
 
93
 
-
 
(6)
 
-
 
-
Granos Olavarría S.A.
 
-
 
119
 
-
 
-
 
-
 
-
 
-
 
-
Total Subsidiaries of the subsidiaries
 
(3)
 
119
 
-
 
93
 
-
 
(12)
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estudio Zang, Bergel & Viñes
 
-
 
-
 
-
 
-
 
(2)
 
-
 
-
 
-
Consultores Asset Management S.A. (CAMSA)
 
-
 
-
 
-
 
-
 
-
 
-
 
-
 
(115)
San Bernardo de Córdoba S.A.
 
(1)
 
-
 
-
 
-
 
-
 
-
 
-
 
-
Total Other related parties
 
(1)
 
-
 
-
 
-
 
(2)
 
-
 
-
 
(115)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Parent company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inversiones Financieras del Sur S.A.
 
-
 
-
 
-
 
-
 
-
 
13
 
-
 
-
Total Parent Company
 
-
 
-
 
-
 
-
 
-
 
13
 
-
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors
 
-
 
-
 
-
 
-
 
-
 
-
 
(18)
 
 
Senior Management
 
-
 
-
 
-
 
-
 
-
 
-
 
(5)
 
-
Total Directors and Senior Management
 
-
 
-
 
-
 
-
 
-
 
-
 
(23)
 
-
 
 
(5)
 
191
 
(19)
 
128
 
(2)
 
(4)
 
(23)
 
(114)
 
39
 
 
 
 
 
 
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
26.
Related party transactions (Continued)
 
The following is a summary of the transactions with related parties for the nine-month period ended as of March 31, 2016:
 
Related party
 
Leases and/or rights of use
 
Sale of goods and/or services
 
Purchase of goods and/or services
 
Corporate services
 
Legal
services
 
Financial operations
 
Compensation of Directors and Senior Management
Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IRSA Inversiones y Representaciones S.A.
 
(2)
 
-
 
-
 
24
 
-
 
13
 
-
Futuros y Opciones.Com S.A.
 
-
 
-
 
(7)
 
-
 
-
 
-
 
-
FyO Trading S.A.
 
-
 
2
 
(8)
 
-
 
-
 
-
 
-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)
 
-
 
73
 
-
 
-
 
-
 
-
 
-
Helmir S.A.
 
-
 
-
 
-
 
-
 
-
 
1
 
-
Total Subsidiaries
 
(2)
 
75
 
(15)
 
24
 
-
 
14
 
-
Associates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agro-Uranga S.A.
 
-
 
2
 
-
 
-
 
-
 
-
 
-
Total Associates
 
-
 
2
 
-
 
-
 
-
 
-
 
-
Subsidiaries of the subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emprendimiento Recoleta S.A.
 
-
 
-
 
-
 
-
 
-
 
(15)
 
-
Panamerican Mall S.A.
 
-
 
-
 
-
 
-
 
-
 
(38)
 
-
IRSA Propiedades Comerciales S.A.
 
(2)
 
-
 
-
 
64
 
-
 
(10)
 
-
Granos Olavarría S.A.
 
-
 
9
 
-
 
-
 
-
 
-
 
-
Total Subsidiaries of the subsidiaries
 
(2)
 
9
 
-
 
64
 
-
 
(63)
 
-
Associates of the subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banco Hipotecario S.A.
 
-
 
-
 
-
 
-
 
-
 
(2)
 
-
Total Associates of the subsidiaries
 
-
 
-
 
-
 
-
 
-
 
(2)
 
-
Other related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estudio Zang, Bergel & Viñes
 
-
 
-
 
-
 
-
 
(1)
 
-
 
-
Total Other related parties
 
-
 
-
 
-
 
-
 
(1)
 
-
 
-
Parent Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inversiones Financieras del Sur S.A.
 
-
 
-
 
-
 
-
 
-
 
5
 
-
Total Parent Company
 
-
 
-
 
-
 
-
 
-
 
5
 
-
Directors and Senior Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors
 
-
 
-
 
-
 
-
 
-
 
-
 
(17)
Senior Management
 
-
 
-
 
-
 
-
 
-
 
-
 
(5)
Total Directors and Senior Management
 
-
 
-
 
-
 
-
 
-
 
-
 
(22)
 
 
(4)
 
86
 
(15)
 
88
 
(1)
 
(46)
 
(22)
 
40
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
27.
CNV General Resolution N° 622/13
 
As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622/13, below there is a detail of the notes to the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.
 
 
Exhibit A - Property, plant and equipment
Note 7 – Investment properties
 
Note 8 – Property, plant and equipment
Exhibit B - Intangible assets
Note 9 – Intangible assets
Exhibit C - Equity investments
Note 6 - Investments in subsidiaries, associates and joint ventures
Exhibit D - Other investments
Note 12 – Financial instruments by category
Exhibit E - Provisions
Note 13 – Trade and other receivables
 
Note 17 – Provisions
Exhibit F - Cost of sales and services
Note 28 – Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities
Note 29 – Foreign currency assets and liabilities
Exhibit H - Exhibit of expenses
Note 22 – Expenses by nature
 
28.
Cost of sales and services provided
 
Description
Biological assets
Inventories
Others
Total as of 03.31.17
Total as of 03.31.16
Beginning of the year
547
491
-
1,038
744
 
 
 
 
 
 
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
192
-
-
192
158
 
 
 
 
 
 
Changes in net realizable value of agricultural products after harvest
-
(80)
-
(80)
135
 
 
 
 
 
 
Increase due to harvest
-
592
-
592
167
Purchases and classifications
29
333
-
362
247
Consume
(1)
(429)
-
(430)
(238)
Expenses incurred
-
-
5
5
5
End of the period
(616)
(235)
-
(851)
(648)
Costs as of 03.31.17
151
672
5
828
-
Costs as of 03.31.16
115
450
5
-
570
 
 
41
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
29.
Foreign currency assets and liabilities
 
Book amounts of foreign currency assets and liabilities as of March 31, 2017 and June 30, 2016 are as follows:
 
Items
 
Amount of foreign currency
 
Prevailing exchange rate (1)
 
Total as of 03.31.17
 
Amount of foreign currency
 
Prevailing exchange rate (2)
 
Total as of 06.30.16
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
-
 
15.79
 
6
 
1
 
14.94
 
9
Total cash and cash equivalents
 
 
 
 
 
6
 
 
 
 
 
9
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
4
 
15.79
 
64
 
1
 
14.94
 
8
Receivables with related parties:
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
2
 
15.89
 
38
 
1
 
15.04
 
15
Brazilian Reais
 
-
 
-
 
-
 
1
 
4.20
 
4
Total trade and other receivables
 
 
 
 
 
102
 
 
 
 
 
27
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
6
 
15.89
 
97
 
2
 
15.04
 
29
Payables with related parties:
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
-
 
15.89
 
3
 
-
 
15.04
 
9
Brazilian Reais
 
1
 
5.40
 
7
 
1
 
4.40
 
4
Total trade and other payables
 
 
 
 
 
107
 
 
 
 
 
42
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
-
 
-
 
-
 
1
 
15.04
 
14
Total derivative instruments
 
 
 
 
 
-
 
 
 
 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
 
299
 
15.89
 
4,755
 
252
 
15.04
 
3,789
Total borrowings
 
 
 
 
 
4,755
 
 
 
 
 
3,789
 
(1)
Exchange rate as of March 31, 2017 according to Banco Nación Argentina records.
(2)
Exchange rate as of June 30, 2016 according to Banco Nación Argentina records.
 
42
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)
(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
30.
CNV General Ruling N° 629/14 – Storage of documentation
 
On August 14, 2014, the CNV issued General Ruling N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Company has entrusted the storage of certain non-sensitive and old information to the following providers:
 
Documentation storage provider
 
Location
Bank S.A.
 
Ruta Panamericana Km 37,5, Garín, Province of Buenos Aires
 
 
Av. Fleming 2190, Munro, Province of Buenos Aires
 
 
 
 
Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires
 
 
 
Iron Mountain Argentina S.A.
 
Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
 
Pedro de Mendoza 2143, Autonomous City of Buenos Aires
 
Saraza 6135, Autonomous City of Buenos Aires
 
Azara 1245, Autonomous City of Buenos Aires
 
Polígono industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
 
 
Cañada de Gomez 3825, Autonomous City of Buenos Aires
 
It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the RULES (2013 as amended) are available at the registered office.
 
On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse, which is a supplier of the Company and where Company’s documentation was being kept. Based on the internal review carried out by the Company, duly reported to CNV on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.
 
31.
Negative working capital
 
At the end of the period, the Company carried a working capital deficit of Ps. 549 whose treatment is being considered by the Board of Directors and the respective Management.
 
32.
Subsequent events
 
See subsequent events in Note 36 to the Unaudited Condensed Interim Consolidated Financial Statements.
 
 
43
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
Free translation from the original prepared in Spanish for publication in Argentina
 
1. 
Specific and significant legal systems that imply contingent lapsing or rebirth of benefits envisaged by such provisions.
 
None.
 
2. 
Significant changes in the Company´s activities or other similar circumstances that occurred during the fiscal years included in the financial statements, which affect their comparison with financial statements filed in previous fiscal years, or that could affect those to be filed in future fiscal years.
 
Are detailed in the Business Review.
 
3. 
Receivables and liabilities by maturity date.
 
Items
Past due
(Point 3.a.)
Without maturity (Point 3.b.)
Without maturity
 (Point 3.b.)
To be due (Point 3.c.)
Total
03.31.17
Current
Non-current
Up to 3 months
From 3 to 6 months
From 6 to 9 months
From 9 to 12 months
From 1 to 2 years
From 2 to 3 years
From 3 to 4
years
From 4 years on
Accounts receivables
Trade and other receivables
-
118
-
377
-
-
-
2
-
-
-
497
 
Income tax credit and deferred income tax
-
-
964
-
-
34
-
-
-
-
-
998
 
Total
-
118
964
377
-
34
-
2
-
-
-
1,495
Liabilities
Trade and other payables
-
19
-
353
-
21
-
-
-
-
-
393
 
Borrowings
-
-
-
436
380
307
392
2,217
551
416
108
4,807
 
Payroll and social security liabilities
-
-
-
17
57
-
7
-
-
-
-
81
 
Provisions
-
1
5
-
-
-
-
-
-
-
-
6
 
Total
-
20
5
806
437
328
399
2,217
551
416
108
5,287
 
 
 
44
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
4.a. 
Breakdown of accounts receivable and liabilities by currency and maturity.
 
Items
Current
Non-current
Total
Local Currency
Foreign Currency
Total
Local Currency
Foreign Currency
Total
Local Currency
Foreign Currency
Total

Accounts receivables
Trade and other receivables
395
100
495
-
2
2
395
102
497
 
Income tax credit and deferred income tax
34
-
34
964
-
964
998
-
998
 
Total
429
100
529
964
2
966
1,393
102
1,495
Liabilities
Trade and other payables
286
107
393
-
-
-
286
107
393
 
Borrowings
52
1,463
1,515
-
3,292
3,292
52
4,755
4,807
 
Payroll and social security liabilities
81
-
81
-
-
-
81
-
81
 
Provisions
1
-
1
5
-
5
6
-
6
 
Total
420
1,570
1,990
5
3,292
3,297
425
4,862
5,287
 
 
4.b. 
Breakdown of accounts receivable and liabilities by adjustment clause.
 
On March 31, 2017 there are no receivable and liabilities subject to adjustment clause.
 
 
45
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
4.c. 
Breakdown of accounts receivable and liabilities by interest accrual.
 
Items
Current
Non-current
Accruing interest
Non
Accruing interest
 
Total
Accruing interest
Non-accruing interest
Subtotal
Accruing interest
Non-accruing interest
Subtotal
Fixed
Floating
Fixed
Floating
Fixed
Floating
Accounts receivables
Trade and other receivables
-
-
495
495
-
-
2
2
-
-
497
497
Income tax credit and deferred income tax
-
-
34
34
-
-
964
964
-
-
998
998
Total
-
-
529
529
-
-
966
966
-
-
1,495
1,495
Liabilities
Trade and other payables
-
-
393
393
-
-
-
-
-
-
393
393
 
Borrowings
1,409
39
67
1,515
3,157
141
(6)
3,292
4,566
180
61
4,807
 
Payroll and social security liabilities
-
-
81
81
-
-
-
-
-
-
81
81
 
Provisions
-
-
1
1
-
-
5
5
-
-
6
6
 
Total
1,409
39
542
1,990
3,157
141
(1)
3,297
4,566
180
541
5,287
 
 
 
46
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
Free translation from the original prepared in Spanish for publication in Argentina
 
5.
Companies under section 33 of law N° 19,550 and other related parties.
 
a.
Interest in companies under section 33 of law N° 19,550.
 
Name of the entity
Place of business / Country of incorporation
Principal activity
(*)
% of ownership interest held by the Group
 
Direct equity interest:
 
 
 
Brasilagro-Companhía Brasileira de Propriedades Agrícolas (1)
Brazil
Agricultural
40.94%
Agropecuaria Santa Cruz de la Sierra S.A. (formerly Doneldon S.A.)
Uruguay
Investment
100%
Futuros y Opciones.Com S.A.
Argentina
Brokerage
59.59%
Helmir S.A.
Uruguay
Investment
100.00%
IRSA
Argentina
Real State
63.38% (2)
Amauta Agro S.A. (formerly FyO Trading S.A. due to change of corporate name)
Argentina
Brokerage
2.20%
Sociedad Anónima Carnes Pampeanas S.A.
Argentina
Agro-industrial
99.32%
Agrouranga S.A.
Argentina
Agricultural
35.72%
Granos de Olavarría S.A.
Argentina
Warehousing and brokerage
2.20%
 
(*) 
All companies whose main activity is “investment” do not have significant assets and liabilities other than their respective interest holdings in operating entities.
 
(1)
The Group has consolidated the investment in Brasilagro-Companhía Brasileira de Propriedades Agrícolas (“Brasilagro”) considering that the Company exercises “de facto control” over it.
(2)
The effect of treasury shares as of March 31, 2017 was not considered.
 
b.
Companies under section 33 of law N° 19,550 and other related parties debit / credit balances. See Note 26.
 
6.
Loans to directors.
 
See Note 26.
 
7.
Inventories.
 
The company conducts physical inventories once a fiscal year in the most significant properties, covering all the assets they possess. There is no relevant immobilization of inventory.
 
8.
Current values.
 
See Note 2 to the Consolidated Financial Statements as of June 30, 2016 and 2015.
 
 
47
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
Free translation from the original prepared in Spanish for publication in Argentina
 
9.
Appraisal revaluation of property, plant and equipment.
 
None.
 
10.
Obsolete unused property, plant and equipment.
 
None.
 
11.
Equity interest in other companies in excess of that permitted by section 31 of law
N° 19,550.
 
None.
 
12.
Recovery values.
 
See Note 2 to the Consolidated Financial Statements as of June 30, 2016 and 2015.
 
13.
Insurances.
 
The types of insurance used by the company were the following:
 
Insured property
Risk covered
Amount insured
Ps.
Book value
Ps.
Buildings, machinery, silos, installation and furniture and equipment
Theft, fire and technical insurance
643
526
Vehicles
Third parties, theft, fire and civil liability
38
12
 
14.
Allowances and provisions that, taken individually or as a whole, exceed 2% of the shareholder´s equity.
 
None.
 
15.
Contingent situations at the date of the financial statements which probabilities are not remote and the effects on the Company´s financial position have not been recognized.
 
Not applicable.
 
16. 
Status of the proceedings leading to the capitalization of irrevocable contributions towards future subscriptions.
 
Not applicable.
 
 
48
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Information required by Section 68 of the Buenos Aires Stock Exchange Regulations
and Section 12, Chapter III, Title IV of Resolution 622/13
Unaudited Condensed Interim Statement of Financial Position as of March 31, 2017
Stated in millions of pesos
Free translation from the original prepared in Spanish for publication in Argentina
 
17. Unpaid accumulated dividends on preferred shares.
 
None.
 
18. Restrictions on distributions of profits.
 
According to the Argentine laws, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution.
 
 
 
 
 
 
49
Free translation from the original prepared in Spanish for publication in Argentina
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED
INTERIM SEPARATE FINANCIAL STATEMENTS
 
 
To the Shareholders, President and Directors of
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Legal address: Moreno 877 – 23° floor
Autonomous City Buenos Aires
Tax Code No. 30-50930070-0
 
Introduction
 
 
We have reviewed the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (hereinafter “the Company”) which included the unaudited condensed interim separate statement of financial position as of March 31, 2017, and the unaudited condensed interim separate statements of income and comprehensive income for the nine-month and three-month period ended March 31, 2017, the unaudited condensed interim separate statements of changes in shareholders’ equity and the unaudited condensed interim separate statements of cash flows for the nine-month period ended March 31, 2017 and selected explanatory notes.
 
The balances and other information corresponding to the fiscal year ended June 30, 2016 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to those financial statements.
 
Management responsibility
 
The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with the International Financial Reporting Standards (IFRS) adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and added by the National Securities Commission (CNV) to its regulations, as approved by the International Accounting Standard Board (IASB) and, for this reason, is responsible for the preparation and presentation of the unaudited condensed interim separate financial statements above mentioned in the introductory paragraph according to the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34).
 
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED
INTERIM SEPARATE FINANCIAL STATEMENTS (Continued)
 
 
Scope of our review
 
Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina in Technical Resolution No. 33 of the FACPCE, without modification as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim separate financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the separate statement of financial position, the separate statement of income, the separate statement of comprehensive income and the separate statement of cash flows of the Company.
 
Conclusion
 
Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim separate financial statements above mentioned in the introductory paragraph of this report have not been prepared in all material respects in accordance with International Accounting Standard 34.
 
Emphasis paragraph
 
Without modifying our conclusion, we want to refer to the information included in Note 6 of these unaudited condensed interim separate financial statements.
 
Report on compliance with current regulations
 
In accordance with current regulations, we report about Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria that:
 
 
a)
the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are being processed for recording in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;
 
b)
the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal respects in accordance with applicable legal provisions;
 
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED
INTERIM SEPARATE FINANCIAL STATEMENTS (Continued)
 
 
c)
we have read the additional information to the notes to the unaudited condensed interim separate statements required by section 68 of the listing regulations of the Buenos Aires Stock Exchange and by section 12 of Chapter III Title IV of the text of the National Securities Commission, on which, as regards those matters that are within our competence, we have no observations to make;
 
d)
as of March 31, 2017, the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria owed in favor of the Argentina Integrated Pension System which arises from accounting records and submissions amounted to Ps. 6,344,827 which was no callable at that date.
 
 
 
Autonomous City of Buenos Aires, May 12, 2017.
 
 
 
 
 
PRICE WATERHOUSE & CO. S.R.L.
 
(Socio)
C.P.C.E.C.A.B.A. Tº 1 Fº 17
 
Dr. Carlos Martín Barbafina
Contador Público (UCA)
C.P.C.E.C.A.B.A. T° 175 F° 65
 
 
 
 
 
 
Buenos Aires, May 12, 2017 - Cresud S.A.C.I.F. y A. (NASDAQ: CRESY – BCBA: CRES), one of the leading agricultural companies in South America, announces today its results for the first nine months of fiscal year 2017 ended March 31, 2017.
 
 
 
 
Change in Investment Property Valuation Method
 
 
On April 19, 2017, the Company decided to introduce a change to the valuation criteria of investment property (mainly, shopping malls, offices and land reserves) from acquisition cost to fair market value, in accordance with the International Financial Reporting Standards (IFRS).
 
 
The reason for this change is the need to adjust the valuation of investment property to its fair market value, for its amortized acquisition cost is not reflective of its economic substance.
 
 
The Company intends to recognize the effects of this change in its financial statements for the fourth quarter of the current fiscal year (June 30, 2017).
 
 
 
 
Consolidated Results
 
In ARS million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
19,027
 
17,598
 
8.1%
 
57,723
 
20,989
 
175.0%
 
Costs
(14,038)
 
(13,582)
 
3.4%
 
(42,485)
 
(16,112)
 
163.7%
 
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
547
 
575
 
(4.9%)
 
1,468
 
1,164
 
26.1%
 
Changes in the fair value of agricultural products after harvest
(10)
 
17
 
-
 
(87)
 
131
 
-
 
Gross profit
5,526
 
4,608
 
19.9%
 
16,619
 
6,172
 
169.3%
 
Gain from disposal of investment properties
106
 
33
 
221.2%
 
209
 
1,055
 
(80.2%)
 
Gain from disposal of farmlands
21
 
-
 
-
 
93
 
-
 
-
 
General and administrative expenses
(1,104)
 
(601)
 
83.7%
 
(3,123)
 
(1,000)
 
212.3%
 
Selling expenses
(3,608)
 
(2,486)
 
45.1%
 
(10,612)
 
(2,770)
 
283.1%
 
Other operating results, net
(161)
 
(58)
 
177.6%
 
(119)
 
108
 
-
 
Management fees
(11)
 
-
 
-
 
(115)
 
-
 
 
Profit from operations
769
 
1,496
 
(48.6%)
 
2,952
 
3,565
 
(17.2%)
 
Share of loss of associates and joint ventures
(214)
 
(156)
 
37.2%
 
(163)
 
(559)
 
-
 
Profit from operations before financing and taxation
555
 
1,340
 
(58.6%)
 
2,789
 
3,006
 
(7.2%)
 
Financial results, net
(180)
 
(1,430)
 
(87.4%)
 
(2,586)
 
(4,377)
 
(40.9%)
 
Profit / (loss) before income tax
375
 
(90)
 
-
 
203
 
(1,371)
 
-
 
Income tax
(239)
 
45
 
-
 
256
 
34
 
652.9%
 
Profit / (loss) for the period from continuing operations
136
 
(45)
 
-
 
459
 
(1,337)
 
-
 
(Loss) / profit from discontinued operations after income tax
(441)
 
(168)
 
162.5%
 
3,056
 
(168)
 
-
 
Profit / (loss) for the period
(305)
 
(213)
 
43.2%
 
3,515
 
(1,505)
 
-
 
Attributable to:
 
 
 
 
 
 
Cresud’s Shareholders
115
 
(164)
 
-
 
1,034
 
(936)
 
.-
 
Non-controlling interest
(420)
 
(49)
 
(82.3%)
 
2,481
 
(569)
 
-.
 
 
 
The Company’s consolidated results reflect in all lines the material accounting impact of the consolidation of the investment made by our subsidiary IRSA Inversiones y Representaciones S.A. in the Israeli holding company IDB Development Corporation since IIQ16. Revenues and profits from operations for the first 9 months of 2017 reached ARS 57,723 million and ARS 2,952 million, respectively. In turn, the Company recorded net income of ARS 3,515 million (ARS 220 million attributable to CRESUD’s shareholders) for the 9-month period of 2017, mainly explained by the results delivered by the operations center in Israel of our urban subsidiary IRSA Inversiones y Representaciones S.A., reflecting the sale of the agrochemical company Adama and the increase in the listing price of Clal Insurance company, recorded at fair value.
 
 
 
1

 
 
Description of Operations by Segment
 
 
9M 2017
 
 
 
Urban Properties and Investments
 
 
 
Agricultural
Argentina
Israel
Subtotal
Total
Var 9M17 vs. 9M16
 
Revenues
2,666
3,111
51,030
54,141
56,807
180.8%
Costs
(3,679)
(709)
(37,117)
(37,826)
(41,505)
170.5%
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,476
-
-
-
1,476
25.8%
Changes in the fair value of agricultural products after harvest
(87)
-
-
-
(87)
(166.4%)
Gross profit
376
2,402
13,913
16,315
16,691
169.6%
Gain from disposal of investment properties
-
118
91
209
209
(80.2%)
Gain from disposal of farmlands
93
-
-
-
93
-
General and administrative expenses
(287)
(502)
(2,346)
(2,848)
(3,135)
210.7%
Selling expenses
(365)
(259)
(9,993)
(10,252)
(10,617)
282.6%
Management Fees
-
(52)
(63)
(115)
(115)
-
Other operating results, net
100
(30)
(183)
(213)
(113)
(198.3%)
(Loss) / profit from operations
(83)
1,677
1,419
3,096
3,013
(15.8%)
Share of (loss) / profit of associates
(2)
5
(155)
(150)
(152)
(72.6%)
Segment (loss) / profit
(85)
1,682
1,264
2,946
2,861
(5.4%)
 
 
 
2
 
 
 
 
9M 2016
 
 
Urban Properties and Investments
 
 
Agricultural
Argentina
Israel
Subtotal
Total
Revenues
1,934
2,381
15,918
18,299
20,233
Costs
(2,539)
(592)
(12,214)
(12,806)
(15,345)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
1,173
-
-
-
1,173
Changes in the fair value of agricultural products after harvest
131
-
-
-
131
Gross profit
699
1,789
3,704
5,493
6,192
Gain from disposal of investment properties
-
1,055
-
1,055
1,055
General and administrative expenses
(197)
(392)
(420)
(812)
(1,009)
Selling expenses
(235)
(188)
(2,352)
(2,540)
(2,775)
Other operating results, net
20
110
(15)
95
115
Profit from operations
287
2,374
917
3,291
3,578
Share of profit / (loss) of associates
15
(606)
37
(569)
(554)
Segment profit
302
1,768
954
2,722
3,024
 
 
 
Agricultural Business
 
 
Period Summary
 
The 2017 season has been developing under the “El Niño” pattern in Argentina, with above-average rainfall rates. As of the date of these financial statements, we have completed harvesting of wheat and sunflower. Soybean harvesting has started and shows 34% degree of progress. Corn harvesting has also started, having advanced 11%. It should be noted that 80% of the corn we plant is late corn; therefore, harvesting will start by the end of June. Domestic prices for soybean and corn have remained stable.
 
In our farms in Bolivia, where we are able to develop two planting and harvesting cycles per year, both seasons have been fully harvested, including soybean, corn, and sorghum crops. Harvesting in our farms in Paraguay has progressed 72% for soybean, while corn harvesting has not started yet. In Brazil, soybean harvesting reached 96% complete, with higher yields than expected, whereas corn harvesting has advanced 50%.
 
As concerns land development and sale of farmlands, during this season we increased the area under development as compared to the previous seasons, in light of the more favorable macroeconomic conditions, while we also managed to consummate the sale of two farms comprising 2,615 hectares intended for agriculture in the Province of La Pampa (Argentina) for USD 6 million during the first quarter of 2017, and after the closing of the third quarter, we sold a fraction of 274 hectares in the Araucaria farm in Brazil for R$ 13.2 million, to be recorded in the next quarter.
 
 
3
 
 
 
Our Portfolio
 
Our portfolio is composed of 297,022 hectares in operation and 472,124 hectares of land reserves distributed among 4 countries in the region: Argentina, with a mixed model combining land development and agricultural production; Bolivia, with a productive model in Santa Cruz de la Sierra; and through our subsidiary Brasilagro, Brazil and Paraguay, where the strategy is exclusively focused on the development of lands.
 
Breakdown of Hectares:
 
Own and under Concession (*)(**)(***)
 
 
 
Productive Lands
Land Reserves
 
Agricultural
Cattle / Dairy
Under Development
Reserved
Total
Argentina
59,710
160,799
2,172
333,007
555,687
Brazil
41,422
14,258
10,710
75,055
141,436
Bolivia
11,406
-
-
1,126
  12,533
Paraguay
7,261
2,167
1,553
48,510
  59,490
Total
119,799
177,224
14,426
457,698
769,146
 
(*) Includes Brazil, Paraguay, Agro-Uranga at 35.723% and 132,000 hectares under concession.
(**) Includes 85,000 hectares intended for sheep breeding.
(***) Does not include double crops.
 
 
 
Leased[*)
 
 
Agriculture
Cattle / Dairy
Other
Total
Argentina
44,114(*)
 
12,635
 
-
 
56,749
 
Brazil
23,762
 
-
 
2,956
 
26,718
 
Total
67,876
 
12,635
 
2,956
 
83,467
 
(*) Does not include double crops.
 
 
4
 
 
Agricultural Segment Income
 
 
I)
Land Development, Transformation and Sales
 
We periodically sell properties that have reached a considerable appraisal to reinvest in new farms with higher appreciation potential. We analyze the possibility of selling based on a number of factors, including the expected future yield of the farmland for continued agricultural and livestock exploitation, the availability of other investment opportunities and cyclical factors that have a bearing on the global values of farmlands.
 
During the first quarter of fiscal year 2017 we sold “El Invierno” and “La Esperanza” farms comprising 2,615 hectares intended for agriculture, located in the district of “Rancul”, Province of La Pampa. The total transaction amount was USD 6 million (USD 2,294/hectare). These farms were valued at approximately ARS 13.5 million. Moreover, we received the balance proceeds of the sale of Brasilagro’s CREMAQ farm, consummated in fiscal year 2015. For all these reasons, profit from operations of this segment was ARS 85 million, and consequently, income from this segment increased ARS 93 million as compared to the same period of the previous fiscal year. After the closing, our subsidiary Brasilagro sold 274 hectares of land in the Araucaria farm in Brazil for R$ 13.2 million. The result will be recorded in the next period.
 
In ARS Million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
-
-
 
-
-
-
Costs
(2)
(3)
(33.3%)
(7)
(7)
0.0%
Gross loss
(2)
(3)
(33.3%)
(7)
(7)
0.0%
Gain from disposal of farmlands
21
-
-
93
-
-
Profit / (loss) from operations
19
(3)
-
85
(8)
-
Segment profit / (loss)
19
(3)
-
85
(8)
-
 
 
Area under Development (hectares)
Developed in 2015/2016
Projected for 2016/2017*
Argentina*
2,910
2,172
Brazil
4,415
9,601
Paraguay
1,364
1,553
Total
8,689
13,326
*2016/2017: Corresponds to Phase II transformation hectares.
 
●
During this season we expect to transform 13,326 hectares in the region: 9,601 hectares in Brazil; 1,553 hectares in Paraguay; and 2,172 hectares in Argentina. We increased the area under development compared with the figures announced at the start of the season due to the improvement in operating margins during this year, after the changes implemented by the government in the agricultural industry and the lower development costs in dollars.
 
II)
Agricultural Production
 
II.a) Crops and Sugarcane
 
 
Crops
In ARS Million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
226
223
1.3%
870
685
27.0%
Costs
(552)
(481)
14.8%
(1.683)
(1.164)
44.6%
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
457
469
(2.6%)
1.043
785
32.9%
Changes in the fair value of agricultural products after harvest
(10)
17
-
(87)
131
-
Gross profit
121
228
(46.9%)
143
437
(67.3%)
General and administrative expenses
(46)
(41)
12.2%
(145)
(112)
29.5%
Selling expenses
(64)
(41)
56.1%
(233)
(147)
58.5%
Other operating results, net
88
(27)
-
103
18
472.2%
Profit / (loss) from operations
99
119
(16.8%)
(132)
196
-
Share of profit of associates
7
11
(36.4%)
11
17
(35.3%)
Segment profit / (loss)
106
130
(18.5%)
(121)
213
-
 
 
5
 
 
 
Sugarcane
 
 
In ARS Million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
 
6
18
(66.7%)
241
187
28.9%
Costs
 
(25)
(47)
(46.8%)
(382)
(315)
21.3%
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
11
48
(77.1%)
186
185
0.5%
Changes in the fair value of agricultural products after harvest
 
-
-
-
-
-
-
Gross (loss) / profit
 
(8)
19
-
45
57
(21.1%)
General and administrative expenses
 
(12)
(9)
33.3%
(33)
(22)
50.0%
Selling expenses
 
(1)
(1)
0.0%
(4)
(5)
(20.0%)
Other operating results, net
 
-
-
-
(6)
1
-
(Loss) / profit from operations
 
(21)
9
-
2
31
(93.5%)
Share of profit / (loss) of associates and joint ventures
 
-
-
-
-
-
-
Segment (loss) / profit
 
(21)
9
-
2
31
(93.5%)
 
Operations
 
 
Production Volume (1)
9M17
9M16
9M15
9M14
9M13
Corn
242,641
186,847
231,764
79,677
89,355
Soybean
17,320
26,758
57,202
72,486
59,554
Wheat
30,989
15,578
15,952
12,427
3,111
Sorghum
731
1,051
1,740
3,571
4,350
Sunflower
3,853
3,354
10,824
5,434
11,480
Others
3,093
5,494
2,716
1,283
4,033
Total Crops (tons)
298,627
239,083
320,199
174,879
171,884
Sugarcane (tons)
580,783
877,396
680,359
520,442
806,102
 (1) Includes BrasilAgro, CRESCA at 50%, Acres del Sud, Ombú, Yatay and Yuchán. Excludes Agro-Uranga S.A.
 
Volume of
9M17
9M16
9M15
9M14
9M13
 Sales (1)
D.M.
F.M.
Total
D.M.
F.M.
Total
D.M.
F.M.
Total
D.M.
F.M.
Total
D.M.
F.M.
Total
Corn
230.3
-
230.3
180.1
37.9
218.0
237.3
-
237.3
152.3
-
152.3
145.6
37.8
183.4
Soybean
75.2
0.7
75.9
101.1
8.8
109.9
87.1
31.0
118.1
101.0
7.4
108.4
69.4
14.6
84.0
Wheat
7.3
1.6
8.9
10.4
28.9
39.3
5.7
-
5.7
5.1
-
5.1
10.0
-
10.0
Sorghum
4.5
-
4.5
0.8
-
0.8
1.3
-
1.3
3.3
-
3.3
5.3
-
5.3
Sunflower
3.7
-
3.7
8.8
-
8.8
2.3
-
2.3
6.8
-
6.8
8.6
-
8.6
Others
3.6
-
3.6
3.8
-
3.8
1.4
-
1.4
5.8
0.3
6.1
13.0
-
13.0
Total Crops (thousands of tons)
324.6
2.3
326.9
305.0
75.6
380.6
335.1
31.0
366.1
274.3
7.7
282.0
251.9
52.4
304.3
Sugarcane (thousands of tons)
554.1
-
554.1
827.3
-
827.3
680.4
-
680.4
540.5
-
540.5
952.9
-
952.9
D.M.: Domestic market
F.M.: Foreign market
(1) Includes BrasilAgro, CRESCA at 50%, Acres del Sud, Ombú, Yatay and Yuchán. Excludes Agro-Uranga S.A.
 
●
Income from the crops business decreased by ARS 335 million, down from an income of ARS 212.5 million during IIIQ16 to a loss of ARS 122.5 million in IIIQ17, mainly due to:
●
A negative variation of ARS 379.3 million in gross profit net of commercial expenses, mainly resulting from:
 
♦
a loss of ARS 328.2 million, originated mainly in Argentina as a result of the pullback in corn and soybean prices throughout this fiscal year after the peak recorded in late June 2016, as compared to income in the previous year resulting from the general rise in prices due to the elimination/reduction of withholding taxes on agricultural exports and the strong devaluation of the peso vis-à-vis the dollar, reflected in sale and holding results, and
 
♦
income for ARS 42.3 million, reflecting production income and income from derivative products during the season.
 
●
The Sugarcane segment’s income decreased by ARS 30 million as compared to the same period of the previous fiscal year, mainly due to lower production income and higher general and management expenses, reflecting by the variation in the exchange rate.
 
 
6
 
 
 
Area in Operation - Crops (hectares) 1
As of 03/31/17
As of 03/31/16
YoY Var
Own farms
           104,986
      106,077
(1.0%)
Leased farms
              71,482
43,237
65.3%
Farms under concession
  21,100
         22,757
(7.3%)
Own farms leased to third parties
                7,651
            2,365
223.5%
Total Area Assigned to Crop Production
           205,219
      174,436
17.6%
(1) Includes AgroUranga, Brazil and Paraguay.
 
The area in operation assigned to the crop segment increased by 17.6% as compared to the same period of the previous fiscal year, mainly due to the larger area of leased farms and own farms leased to third parties.
 
II.b) Cattle and Dairy Production
 
During the past season, we started raising cattle in Brazil, in addition to our cattle operations in Argentina and Paraguay.
 
Production Volume (1)
9M17
9M16
9M15
9M14
9M13
Cattle (tons)
6,484
5,881
5,926
5,723
6,199
Dairy cattle (tons)
390
399
379
424
316
Cattle (tons)
6,874
6,280
6,305
6,147
6,515
Milk (thousands of liters)
10,933
9,082
9,129
10,129
9,450
 
(1) Includes Carnes Pampeanas and CRESCA at 50%.
(1)  Includes area used for double crops, all the farms in Argentina, Bolivia, Paraguay and Brazil and Agrouranga (Subsiadiary 35.72%)
 
 
 
 
7
 
 
 
 
 
 
 
 
Volume of
9M17
 
9M16
 
9M15
 
9M14
 
9M13
 
 Sales (1)
D.M.
 
F.M.
 
Total
 
D.M.
 
F.M.
 
Total
 
D.M.
 
F.M.
 
Total
 
D.M.
 
F.M.
 
Total
 
D.M.
 
F.M.
 
Total
 
Cattle
6.2
 
-
 
6.2
 
7.2
 
-
 
7.2
 
7.6
 
-
 
7.6
 
7.7
 
-
 
7.7
 
7.4
 
-
 
7.4
 
Dairy Cattle
0.7
 
-
 
0.7
 
0.4
 
-
 
0.4
 
0.6
 
-
 
0.6
 
0.3
 
-
 
0.3
 
0.3
 
-
 
0.3
 
Cattle (thousands of tons)
6.9
 
-
 
6.9
 
7.6
 
-
 
7.6
 
8.2
 
-
 
8.2
 
8.0
 
-
 
8.0
 
7.7
 
-
 
7.7
 
Milk (millions of liters)
10.4
 
-
 
10.4
 
12.0
 
-
 
12.0
 
13.0
 
-
 
13.0
 
14.0
 
-
 
14.0
 
13.0
 
-
 
13.0
 
 
 
D.M.: Domestic market
F.M.: Foreign market
(1) Includes CRESCA at 50%.
 
 
 
 
 
 
 
 
Cattle
 
In ARS million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
55
35
57.1%
188
153
22.9%
Costs
(91)
(54)
68.5%
(313)
(208)
50.5%
Initial recognition and changes in the fair value of biological assets and agricultural products
55
50
10.0%
180
154
16.9%
Changes in the fair value of agricultural products after harvest
-
-
-
-
-
-
Gross profit
19
31
(38.7%)
55
99
(44.4%)
(Loss) / profit from operations
(1)
18
-
(13)
56
-
Segment (loss) / profit
(1)
18
-
(13)
56
-
 
During the quarter under review, we posted lower results by approximately ARS 71 million as compared to those recorded in IIIQ16. The main reason for the decrease was the rise in production costs and lower holding results in Argentina and Brazil.
 
Area in operation – Cattle (hectares) (1)
As of 03/31/17
As of 03/31/16
YoY Var
Own farms
88,430
71,937
22.9%
Leased farms
12,635
12,635
-
Farms under concession
1,451
820
77.0%
Own farms leased to third parties
70
6,023
(98.8%)
Total Area Assigned to Cattle Production
102,586
91,415
12.2%
(1) Includes AgroUranga, Brazil and Paraguay.
 
●
The area of farms assigned to cattle production has increased, mainly as a result of the larger number of hectares in Brazil allocated to this activity (14,258 hectares) offset by a reduction in the hectares leased to third parties.
 
Stock of Cattle Herds
As of 03/31/17
As of 03/31/16
Breeding cattle
   67,374
        55,484
Fattering cattle
          9,584
        10,818
Dairy cattle
          4,184
          5,476
Total Stock (heads)
             81,142
             71,778
 
 
8
 
 
 
Dairy
 
In ARS Million
IIIQ 2017
IIIQ 2016
YoY Var
9M17
9M16
YoY Var
Revenues
16.0
13.0
23.1%
67.0
44.0
52.3%
Costs
(42.0)
(31.0)
35.5%
(135.0)
(94.0)
43.6%
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
22.0
16.0
37.5%
67.0
49.0
36.7%
Gross loss
(4.0)
(2.0)
100.0%
(1.0)
(1.0)
0.0%
Loss from operations
(6.0)
(4.0)
50.0%
(10.0)
(8.0)
25.0%
Segment loss
(6.0)
(4.0)
50.0%
(10.0)
(8.0)
25.0%
 
As concerns our dairy business in Argentina, we recorded a similar loss to that of the same quarter of 2016 in a scenario of rising milk prices, lower production due to a smaller herd, consequent productivity, and rising production costs.
 
Milk Production
As of 03/31/17
As of 03/31/16
Daily average Dairy cattle (heads)
          1,557
          1,832
Milk Production / Dairy cattle / Day (liters)
          24.76
          24.38
 
Area in Operation – Dairy (hectares)
As of 03/31/17
As of 03/31/16
YoY Var
Own farms
 2,273
 
2,273
 
 -
 
 
 
 
●
We perform our milking business in El Tigre farm.
 
 
 
 
III: Other Segments
 
Under “Others” we report the results from Agricultural Rental and Services, Agro-industrial Activities and our investment in FyO.
 
●
The “Others” segment recorded a loss of ARS 28 million in the nine-month period of 2017, mostly explained by higher losses in our agroindustrial business developed in our meat packing plant in La Pampa compensated by the results of our subsidiary Futuros y Opciones (FyO) and results from Agricultural Rental and Services. FyO, which is mainly engaged in the trading of crops and sale of inputs, recorded an income of ARS 19.1 million reflecting the upsurge in the grain consignment business, the recovery of the input business as growers opted not to invest in technology during the previous year, and a higher turnover from the brokerage business hand in hand with a more competitive exchange rate than in the past year. Moreover, Agricultural Rental and Services recorded an income of ARS 31.4 million, mainly derived from our subsidiary Brasilagro, mostly reflecting changes in the foreign exchange rate and lower rental costs.
 
 
 
9
 
 
 
Urban Properties and Investments Business (through our subsidiary IRSA Inversiones y Representaciones Sociedad Anónima)
 
 
We develop our Urban Properties and Investments segment through our subsidiary IRSA. As of March 31, 2017, our equity interest in IRSA was 63.38% over stock capital.
 
Consolidated Results of our Subsidiary IRSA Inversiones y Representaciones S.A.
 
The following information has been extracted from the financial statements of our controlled company IRSA as of March 31, 2017:
 
In ARS Million
 
IIIQ 17
 
IIIQ 16
 
YoY Var
 
9M 17
 
9M 16
 
YoY Var
 
Revenues
 
18,370
 
16,999
 
8.1%
 
55,201
 
19,163
 
188.1%
 
Profit from operations
 
702
 
1,339
 
-47.6%
 
3,147
 
3,287
 
-4.3%
 
Depreciation and amortization
 
1,456
 
1,098
 
32.6%
 
4,357
 
1,204
 
261.9%
 
EBITDA
 
2,158
 
2,437
 
-11.4%
 
7,504
 
4,491
 
67.1%
 
(Loss) / profit for the period
 
-398
 
-129
 
208.5%
 
3,799
 
-1,039
 
-
 
Attributable to equity holders of the parent
 
71
 
-189
 
-
 
2,138
 
-676
 
-
 
Attributable to non-controlling interest
 
-469
 
60
 
-
 
1,661
 
-363
 
-
 
 
 
 
Operations Center in Argentina
 
IRSA is one of Argentina’s leading real estate companies in terms of total assets. IRSA is engaged, directly or indirectly through subsidiaries and joint ventures, in a range of diversified real estate related activities in Argentina and abroad, including:
 
 
●
The acquisition, development and operation of shopping malls and offices, through its interest of 94.61% in IRSA Propiedades Comerciales S.A. (continuing company of Alto Palermo S.A.), one of Argentina’s leading operators of commercial real estate with a controlling interest in 16 shopping malls and 6 office buildings totaling 417,643 square meters of Gross Leaseable Area (340,391 in shopping malls and 77,252 in offices).
●
The acquisition and development of residential properties and the acquisition of undeveloped land reserves for future development or sale.
●
The acquisition and operation of luxury hotels.
●
Selective investments outside Argentina.
●
Financial investments, including IRSA’s current 29.91% equity interest in Banco Hipotecario, which is one of the leading financial institutions in Argentina.
●
International investments, including a 49% interest in the Lipstick Building in New York and 28.7% of the voting rights in the Condor Hospitality Trust hotel REIT (NASDAQ: CDOR).
 
 
10
 
 
During the first nine months of fiscal year 2017, our tenants’ sales reached ARS 25,133 million, 19.9% higher than in the same period of 2016, as they started to stabilize after several periods of deceleration caused by the fall in spending.
 
 
Our portfolio’s leasable area increased by approximately 6,300 square meters as compared to the same quarter of the previous fiscal year, mainly due to the completion of the second expansion stage at Distrito Arcos, where significant tenants such as Megatlon, Farmacity, Akiabara, Stock Center and Mishka were added during the second quarter of 2017, and the expansion of Soleil, adding Nike at is main tenant during the third quarter.
 
 
The occupancy rate stood at very high levels, reaching 98%.
 
 
As concerns the offices’ segment, during the first nine months of fiscal year 2017, revenues from the offices segment increased 38.3% as compared to the same period of 2016, mainly explained by the depreciation of the peso vis-à-vis the dollar. EBITDA from this segment grew 56.7% in the first nine months of fiscal year 2017 compared to the same period of 2016, principally explained by the increase in revenues and the gain resulting from the business combination of Entertainment Holding S.A. (which is indirect holder of 35% of La Rural S.A., the company that runs the exhibition center known as Predio Ferial de Palermo in the City of Buenos Aires) with our subsidiary IRSA Propiedades Comerciales.
 
 
As concerns the sales and developments segment, for the nine-month period of fiscal year 2017, EBITDA from the Sales and Developments segment was negative for ARS 41 million as compared to EBITDA for ARS 944 million during the first nine months of 2016, due to higher gains from disposal of investment properties that have been recorded. While 1,795 square meters in the Intercontinental Plaza office building and 435 square meters in Maipú 1300 building were sold in the first nine months of FY 2017, 3,451 square meters in the Maipú 1300 building, 6,814 square meters in the Intercontinental Plaza building, the Isla Sirgadero plot, and the entire Dique IV office building located in Puerto Madero, had been sold in the first nine months of FY 2016.
 
11
 
 
 
Operations Center in Israel
 
As of March 31, 2017, the investment made in IDBD was USD 515 million, and IRSA’s indirect equity interest reached 68.3% of IDBD’s stock capital. Moreover, IRSA has invested USD 26.7 million in DIC, and IRSA’s indirect equity interest reached 6.07% of DIC’s stock capital.
 
Operating Results – In Millions of ARS
 
 
 
December 31, 2016 (for the period 04.01 through 12.31)
 
Operations Center in Israel
 
Real Estate
Supermarkets
Telecommunications
Insurances
Others
Total
Revenues
4,027
35,101
11,902
-
-
51,030
Costs
-2,734
-26,085
-8,298
-
-
-37,117
Gross profit
1,293
9,016
3,604
-
-
13,913
Gain from disposal of investment properties
-
-
-
-
91
91
General and administrative expenses
-214
-478
-1,194
-
-460
-2,346
Selling expenses
-72
-7,339
-2,582
-
-
-9,993
Management Fees
-30
-33
-
-
-
-63
Other operating results, net
76
-35
-36
-
-188
-183
Profit / (loss) from operations
1,053
1,131
-208
-
-557
1,419
Share of profit / (loss) of associates and joint ventures
-139
8
-
-
-24
-155
Segment profit / (loss)
914
1,139
-208
-
-581
1,264
 
 
 
 
 
 
 
Operating assets
66,018
31,337
30,000
7,194
15,192
149,741
Operating liabilities
-52,889
-24,510
-24,009
-
-29,995
-131,403
Operating assets / (liabilities), net
13,129
6,827
5,991
7,194
-14,803
18,338
 
 
The revenues and operating income from the Real Estate segment through the subsidiary Property & Building (“PBC”) reached ARS 4,027 million and ARS 1,053 million, respectively, during the consolidated nine months (April 1, 2016 to December 31, 2016). During this period, there was an increase in rental income and occupancy rates from PBC’s investment properties.
 
 
The Supermarkets segment, through Shufersal, recorded revenues of ARS 35,101 million for the period, mainly due to an increase in revenues from the retail segment, offset by a slight decrease in revenues from the real estate segment. Same-store sales keep rising. Operating income from this segment reached ARS 1,131 million.
 
 
The Telecommunications segment, operated by Cellcom, recorded revenues of ARS 11,902 million. There was a decrease in revenues, mainly explained by a decline in revenues from services, which was partially offset by revenues from handsets. The reduction in revenues from services under review mainly reflected lower revenues from cell telephone services due to the continued erosion of the price of these services as a result of stronger competition in the cell telephone market. Operating income was ARS -208 million, whereas its EBITDA was ARS 2,279 million. The difference is explained by the high level of Depreciation and Amortization of this business line.
 
 
The Others segment recorded an operating loss of ARS 557 million.
 
 
As concerns “Clal”, the Group values its interest in this insurance company as a financial asset at fair value. The valuation of Clal’s shares was ARS 7,194 million (USD 467 million) as of March 31, 2017, a 21% increase in dollars compared to December 31, 2016.
 
 
12
 
 
Financial Indebtedness and Other
 
 
The following tables contain a breakdown of company’s indebtedness:
 
Agricultural Business
 
Description
Currency
Amount (1)
Interest Rate
Maturity
Bank overdrafts
ARS
8.0
Floating
< 30 days
 Banco Ciudad Loan
USD
11.4
Libor 180 days + 300 bps; floor: 6%
Jan-18-22
 Banco de la Pampa Loan
ARS
0.2
floating [10.5% ; 14.5%]
Aug-03-17
 Cresud 2018 NCN, Series XIV (2)
USD
32.0
1.500%
May-22-18
 Cresud 2018 NCN, Series XVI (3)
USD
109.1
1.500%
Nov-19-18
 Cresud 2019 NCN, Series XVIII (4)
USD
33.7
4.00%
Sep-12-19
 Cresud 2019 NCN, Series XXII (5)
USD
22.7
4.00%
Aug-12-19
Banco de la Provincia de Buenos Aires loan
USD
2.0
2.50%
May-23-17
Banco de la Provincia de Buenos Aires loan
USD
18.0
2.75%
Apr-27-17
Santander R’o loan
USD
40.0
5.60%
Sept-30-21
Banco Supervielle loan
USD
3.0
2.5%
Jun-27-17
Banco de la Provincia de Buenos Aires Loan
USD
5.0
2.25%
Jul-19-17
Banco de la Provincia de Buenos Aires Loan
USD
7.8
2.00%
Aug-18-17
ICBC Loan
USD
20.0
2.45%
Mar-09-18
Santander R’o Loan
USD
10.0
2.00%
Aug-23-17
 Bolivia Loan
BOB
 0.4
6.00%
Jun-20-16
CRESUD’s Total Debt
 
323.3
 
 
Brasilagro’s Total Debt
 
14.7
 
 
(2) USD 1.6 million were repurchased.
(3) USD 8.8 million were repurchased.
(4) USD 1.1 million were repurchased.
(5) USD 1.0 million were repurchased.
 
 
Urban and Investments Business
 
Operations Center in Argentina
 
Financial Debt as of March 31, 2017:
 
 
Description
Currency
Amount (1)
Interest Rate
Maturity
Bank Overdrafts
ARS
2.4
Floating
< 360 days
IRSA 2020 Non-Convertible Notes, Series II
USD
71.4
11.50%
Jul-20
Series VII Non-Convertible Notes
ARS
25.0
Badlar + 299
Sep-19
Series VIII Non-Convertible Notes
USD
184.5
7.00%
Sep-19
Loans (2)
USD
12.9
Floating
Jun-17
Other loans
 
50.2
 
 
IRSA’s Total Debt
 
346.4
 
 
IRSA’s Cash & Cash Equivalents + Investments (3)
USD
9.3
 
 
IRSA’s Net Debt
USD
337.1
 
 
Bank Overdrafts
ARS
1.6
 Floating
 < 360 days
IRSA CP Series II Non-Convertible Notes
USD
360.0
8.75%
Mar-23
Other loans
ARS
0.2
-
-
IRSA CP’s Total Debt
 
361.8
 
 
IRSA CP’s Cash & Cash Equivalents + Investments (4)
USD
182.9
 
 
IRSA CP’s Net Debt
USD
178.9
 
 
 
(1) Principal amount in USD (million) at an exchange rate of ARS 15.39/USD, without considering accrued interest or eliminations of balances with subsidiaries.
(2) Corresponds to a loan from IRSA CP.
(3) “Cash & Cash Equivalents plus Investments, IRSA” includes Cash & Cash Equivalents, IRSA + Investments in current and non-current financial assets, IRSA.
(4) “Cash & Cash Equivalents plus Investments, IRSA CP” includes Cash & Cash Equivalents, IRSA CP + Investments in current financial assets plus a loan from its controlling company IRSA Inversiones y Representaciones S.A.
 
 
13
 
 
 
Operations Center in Israel
 
Financial Debt as of December 31, 2016:
 
Indebtedness
 
Amount (1)
IDBD’s Total Debt
 
793
DIC’s Total Debt
 
1,156
Shufersal’s Total Debt
 
628
Cellcom’s Total Debt
 
1,102
PBC’s Total Debt
 
2,409
Others’ Total Debt (2)
 
167
 
(1) Principal amount in USD (million) at an exchange rate of 3.853 NIS/USD, without considering accrued interest or elimination of balances with subsidiaries. Includes bonds and loans.
(2) Includes IDB Tourism, Bartan and IDBG.
 
Comparative Summary Consolidated Balance Sheet Data
 
In ARS million
                            Mar-17
Mar -16
Mar-15
Mar-14
Mar-13
Current assets
58,123
54,128
3,420
3,257
2,707
Non-current assets
117,498
110,075
11,001
11,999
9,457
Total assets
175,621
164,203
14,421
15,256
12,164
Current liabilities
43,844
47,213
4,386
3,132
2,528
Non-current liabilities
110,504
107,258
6,821
7,267
4,626
Total liabilities
154,348
154,471
11,207
10,399
7,154
Third party interest (or non-controlling interest)
18,436
8,415
1,969
2,517
2,393
Shareholders’ equity
21,273
9,732
3,214
4,857
5,010
Total liabilities plus third party interests (or non-controlling interest) plus Shareholders’ Equity
175,621
164,203
14,421
15,256
12,163
 
 
14
 
 
 
Comparative Summary Consolidated Income Statement Data
 
In ARS Million
9MFY2017
9MFY2016
9MFY2015
9MFY2014
9MFY2013
Gross profit
16,619
6,172
1,623
1,441
965
Profit from operations
2,952
3,565
1,737
926
753
Share of (loss) / profit of associates and joint ventures
-163
-559
-843
115
15
Profit from operations before financing and taxation
2,789
3,006
894
1,041
768
Financial results, net
-2,586
-4,377
-1,114
-1,927
-474
Profit / (loss) before income tax
203
-1,371
-220
-886
294
Income Tax
256
34
-233
358
-31
Profit / (loss) for the period from continuing operations
459
-1,337
-453
-528
263
Profit / (loss) for the period from discontinued operations after income tax
3,056
-168
-
-
-
Profit / (loss) for the period
3,515
-1,505
-453
-528
263
Equity holders of the parent
1,034
-936
-488
-494
84
Non-controlling interest
2,481
-569
35
-34
179
 
 
 
 
 
 
Profit / (loss) for the period
3,515
-1,505
-453
-528
263
Other comprehensive income / (loss) for the period (1)
2,627
2,852
-553
913
224
Total comprehensive income / (loss) for the period
6,531
1,363
-1,006
385
487
Equity holders of the parent
1,902
-228
-731
-50
187
Non-controlling interest
4,629
1,591
-275
435
300
(1) Corresponds to translation differences
 
 
 
 
 
 
 
Comparative Summary Consolidated Cash Flow Statement Data
 
In ARS Million
9MFY2017
9MFY2016
9MFY2015
9MFY2014
9MFY2013
Net cash generated by operating activities
6,051
 
2,801
 
514
 
396
 
424
 
Net cash generated by / (used in) investing activities
794
 
9,480
 
725
 
-649
 
-358
 
Net cash generated by / (used in) financing activities
940
 
148
 
1,613
 
-427
 
64
 
Total cash generated (used) during the year / period
7,785
 
12,429
 
374
 
-680
 
130
 
 
Ratios
 
In ARS Million
Mar-17
Mar-16
Mar-15
Mar-14
Mar-13
Liquidity (1)
1.326
 
1.146
 
0.780
 
1.040
 
1.070
 
Solvency (2)
0.138
 
0.063
 
0.287
 
0.467
 
0.700
 
Restricted assets (3)
0.669
 
0.670
 
0.763
 
0.787
 
0.778
 
Profitability (only annual) (4)
2.16%
 
-13.74%
 
-0.141
 
-0.109
 
0.052
 
 
 (1) Current Assets / Current Liabilities
 
(2) Total Shareholders’ Equity / Total Liabilities
 
(3) Non-current Assets / Total Assets
 
(4) Net income / (loss) (excluding Other Comprehensive Income / (Loss)) / Total Average Shareholders’ Equity
 
 
 
15
 
 
Material and Subsequent Events
 
 
Purchase of farm by our subsidiary Brasilagro
 
On February 7, 2017, Brasilagro – Companhia Brasileira de Propriedades Agrícolas, controlled by the Company, executed a purchase and lease agreement, including crop sharing provisions, in respect of a rural property located in the municipal district of São Raimundo das Mangabeiras, in the State of Maranhão.
 
The purchase agreement is for 17,566 hectares, 10,000 of which are developed and productive lands to be used for agriculture. The remaining 7,566 hectares are permanent preservation areas and land reserves protected by law. The purchase price was R$ 100.0 million (R$ 10,000 per productive hectare), and will be fully paid upon satisfaction by the sellers of certain conditions precedent.
 
The lease is for 15,000 hectares of arable, developed lands, mostly consisting of sugarcane crops. The agreement’s term is 15 years, renewable for 15 additional years.
 
 
 
16
 
 
Prospects for the next fiscal year
 
The 2017 crop season has been developing under the “El Niño” pattern in Argentina, with above-average rainfall rates. We expect the crop season to end positively, with good production levels, satisfactory yields, and constrained costs.
 
In Argentina, we expect stable prices for cattle after the significant appreciation seen in the past year, which encouraged the Company to sell cattle, delivering good holding results. We expect satisfactory production figures and constrained costs for the rest of the 2017 season, while we plan to continue working efficiently towards reaching the highest operating margins possible. In the case of our “El Tigre” dairy facility, where we have consolidated all our milk production, we are following our strategy consisting in the selective sale of milking cows and keeping the more productive herd.
 
In connection with our meat packing plant, which we hold through our interest in Carnes Pampeanas, we trust that the margin improvement initiatives implemented in the plant will reap fruits as the business context improves, hand in hand with the opening up of the Argentine beef markets abroad and the government’s policies against informality in the industry.
 
As concerns land transformation and value-adding activities, we will make progress in the development of our farms in Argentina, Paraguay and Brazil. Although in the past years our land transformation activities developed at a slower pace than historically due to the high development costs and production profitability conditions, the current macroeconomic conditions are more favorable, and we expect to be able to resume our historic levels at lower transformation costs.
 
We remain watchful of sale opportunities that may arise and we will continue to dispose of those farms that have reached their highest degree of appreciation, whilst continuing to analyze purchase opportunities in other countries of the region with the objective to put together a regional portfolio with major development and appreciation potential.
 
Our urban subsidiary IRSA Inversiones y Representaciones S.A. keeps recording sound results in its various business lines. Prospects are positive, as the company has a large reserve of lands intended for future shopping mall, office, and mixed-use developments in an industry scenario with high growth potential. Moreover, as concerns the investment in the Israeli company IDBD, this company has sold assets for very competitive prices; its indebtedness level has been significantly reduced and a strategy intended to improve operating margins in each of its business units has been launched.
 
 
We believe that companies such as Cresud, with a track record going back so many years and vast industry knowledge will have outstanding possibilities of taking advantage of the best opportunities arising in the market, much more so considering that our main task is to produce food for a growing and demanding world population.
 
 
 
 
 
17