~~(*) Prior periods have been adjusted to reflect the Company's change in accounting policy for investment properties.~~

B. CAPITALIZATION AND INDEBTEDNESS

Not Applicable.

C. REASONS FOR THE OFFER AND USE OF PROCEEDS

Not Applicable.

D. RISK FACTORS

Investing in our common shares involves a high degree of risk. Before making an investment decision, you should carefully consider the information contained in this annual report, particularly the risks described below, as well as in our ~~consolidated financial statements~~Consolidated Financial Statements and accompanying notes. Our business activities, cash flow, financial condition and results of operations could be materially and adversely affected by any of ~~these risks.~~the risks and uncertainties below. The market price of our common shares may decrease due to any of these risks or other factors, and you may lose all or part of your investment. The risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business operations.

For purposes of this section, the indication that a risk, uncertainty or problem may or will have a “material adverse effect on us” or that we may experience a “material adverse effect” means that the risk, uncertainty or problem could have a material adverse effect on our business, financial condition or results of operations and/or the market price of our common shares, except as otherwise indicated or as the context may otherwise require. Investors should view similar expressions in this section as having a similar meaning.

Summary of Risk Factors

The risks facing us and our business are many and varied. Set forth below is a summary of the risk factors more fully described herein.

The risks related to our business and industries include risks related to:

• health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and results of operations;

• unpredictable weather conditions, including as a result of climate change, pest infestations and diseases that may have an adverse impact on agricultural production;

• fluctuations in market prices for our products that could adversely affect our financial condition and results of operations;

• the relationship between the price of ethanol and sugar to the price of oil, so that a decline in the price of sugar or a decline in the price of oil will adversely affect our sugar and ethanol businesses;

• the expansion of our business through acquisitions, which poses risks that may reduce the benefits we anticipate from these transactions;

• increases in the price of raw materials we use in our operations, or the shortage of such raw materials, that could adversely affect our results of operations;

• increases in energy prices and frequent interruptions of energy supply that could adversely affect our business;

• our dependence on stable international trade and economic and other conditions in key export markets for our products;

• a worldwide economic downturn that could weaken demand for our products or lower prices;

• the seasonality of our business and our results, which may fluctuate significantly depending on the growing cycle of our crops;

• potential diseases to our dairy cattle;

• significant competition from Brazilian and foreign producers, which could adversely affect our financial performance;

• our current insurance coverage, which may not be sufficient to cover our potential losses;

• a reduction in market demand for ethanol or a change in governmental policies reducing the amount of ethanol required to be added to gasoline, which may adversely affect our business;

• competition from alternative fuels, products and production methods;

• the lack of liquidity of a substantial portion of our assets constituted by farmland;

• the agriculture partnership agreements in respect of a significant portion of our sugarcane plantations and associated risks;

• labor disputes from time to time that may adversely affect us;

• a failure to possess all of the permits and licenses required to operate our business, or failure to renew or maintain the licenses and permits we currently hold;

• extensive environmental regulation, and concerns regarding climate change that may subject us to even stricter environmental regulations;

• the agricultural commodities and food products we produce that contain genetically modified organisms ("GMO");

• increased regulation of food safety that could increase our costs and adversely affect our results of operations;

• IFRS accounting standards related to biological assets that require us to make numerous estimates in the preparation of our financial statements and therefore limit the comparability of our financial statements to similar issuers using U.S. GAAP;

• our substantial indebtedness which could impair their financial condition and decrease the amount of dividends we receive;

• fluctuations in interest rates that could have a significant impact on our results of operations, indebtedness and cash flow;

• our failure to be able to renew our credit lines when they mature, depriving us of needed liquidity;

• the risk that we could be treated as a U.S. domestic corporation for U.S. federal income tax purposes, which could materially increase our U.S. federal income tax liability and subject any dividends we pay to U.S. federal withholding tax;

• the risk that ee may be classified by the IRS as a “passive foreign investment company” (a “PFIC”), which may result in adverse tax consequences for U.S. investors; and

• anti-corruption, anti-bribery, anti-money laundering and other international trade laws and regulations.

We also confront risks associated with the countries in which we operate, primarily in Argentina and Brazil, which include risks related to:

• operating in emerging markets, which makes our results of operations and financial condition dependent upon economic conditions in those countries in which we operate with any decline in economic conditions potentially harming our results of operations or financial condition;

• the economies of the countries in which we operate, which may be adversely affected by the deterioration of other global markets;

• the governments in the economies in which we operate have a high degree of influence, which could adversely affect our results of operations or financial condition;

• currency exchange rate fluctuations relative to the U.S. dollar in the countries in which we operate;

• inflation in some of the countries in which we operate, along with governmental measures to curb inflation, which may have a significant negative effect on the economies of those countries and, as a result, on our financial condition and results of operations;

• the impact of inflation on our operating costs in Argentina, which are denominated in Argentine Pesos and most of our operating costs in Brazil, which denominated in Brazilian Reais;

• disruption of transportation and logistics services, insufficient investment in public infrastructure or disruption to any aspect of the supply chain which could adversely affect our operating results;

• security breaches and other disruptions that could compromise our technology infrastructure and information and expose us to processes disruption and liability, which would cause our business and reputation to suffer;

• failure to comply with data protection laws which could adversely affect our business;

• the measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic, which may have an adverse effect on our business and operations;

• Argentine economic and political conditions and perceptions of these conditions in the international market that may have a direct impact on our business and our access to international capital and debt markets, and could adversely affect our results of operations and financial condition;

• continuing inflation, increase of unemployment, decline in GDP, peso depreciation, and/or other future economic, social and political developments in Argentina, over which we have no control, that may adversely affect our financial condition or results of operations;

• the impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina;

• the economy of Argentina and the government’s limited access to financing from international markets and the result of failure to pay its debt obligations and the current debt restructuring process;

• high and possibly increasing inflation in Argentina and uncertainty surrounding future inflation rates may have an adverse impact for Argentina in the long-term credit market;

• government intervention in Argentina which may have a direct impact on our prices and sales;

• salary increases ordered by the Argentine government to be paid to employees in the private sector, or imposed additional charges, which would increase our operating costs;

• Argentine law concerning foreign ownership of rural properties which may adversely affect our results of operations and future investments in rural properties in Argentina;

• increase in export and import duties and controls which may have an adverse impact on our sales;

• exchange controls that restrict the inflow and outflow of funds in Argentina and may substantially limit the our ability to retain or obtain foreign currency or make payments abroad;

• scanges in the Argentine tax laws that may adversely affect the results of our operations, financial condition and cash flows;

• measures taken or to be implemented by the Brazilian government in response to the COVID-19 pandemic that may cause adverse effect on our business and operations;

• Brazilian economic and political conditions and perceptions of these conditions in international markets that may have a direct impact on our business and our access to international capital and debt markets, which could adversely affect our results of operations and financial condition;

• changes in Brazilian tax laws that may have a material adverse impact on the taxes applicable to our business and may increase our tax burden;

• widespread corruption and fraud relating to ownership of real estate that may adversely affect our business, especially our land transformation business;

• social movements and the possibility of expropriation and constitution of public easement that may affect the normal use of, damage, or deprive us of the use of or fair value of, our properties;

• Brazilian rules concerning foreign investment in rural properties that may adversely affect our investments;

• The Brazilian government’s significant influence over the Brazilian economy, which, combined with Brazilian political and economic conditions, may adversely affect us;

• allegations of political corruption against the Brazilian government and the Brazilian legislative branch that could create economic and political instability;

• restrictions on the movement of capital out of Brazil that may impair our ability to receive payments from our Brazilian Subsidiaries and restrict their ability to make payments in U.S. dollars; and

• the impact of governmental regulation in Brazil.

As a Luxembourg corporation (“société anonyme”) we are also exposed to risks that relate to:

• difficulty for our shareholders to obtain or enforce judgments against us or our executive officers and directors in the United States;

• difficulty for our shareholders in protecting their interests than as shareholders of a U.S. corporation;

• Luxembourg and European Union insolvency and bankruptcy laws and regulations which are substantially different from U.S. insolvency laws and may offer our shareholders less protection than they would have under U.S. insolvency and bankruptcy laws;

• the inability of shareholders to participate in equity offerings, and failure to receive any value for rights that we may grant;

Risks Related to Our Business and Industries

We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and results of operations.

The global impact of the COVID-19 outbreak and measures taken to reduce the spread of the virus have had an adverse effect on the global macroeconomic environment and may continue to create continued economic uncertainty and reduced economic activity. The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place or total lock-down orders and business limitations and shutdowns.

Governments around the globe have taken steps to mitigate some of the more severe economic effects of the virus, but there can be no assurance that such steps will be effective or achieve their desired results in a timely fashion or at all. The speed and extent of the spread of COVID-19, and the duration and intensity of resulting business disruption and related financial and social impact, are still uncertain, and such adverse effects on our business and financial position may still be material.

In the first six months of 2020, our Sugar, Ethanol and Energy business, experienced a decrease in prices of ethanol due to the decrease in international oil prices, and a decrease in demand as a consequence of the reduced circulation of people in response to the pandemic. In light of these factors, we slowed down our crushing pace, implemented a cost reduction plan and maintained the workforce sized to our operational needs. As signs of a partial recovery started to emerge, we revamped our operations and accelerated our crushing pace during the second semester, more than offsetting the lower initial crushing.

The Company could be negatively affected if a significant number of personnel including management and personnel at its farming and industrial operations are infected with the COVID-19 virus and/or its variants or are quarantined as the result of, or in order to avoid, exposure to the virus. During 2020, a select number of our personnel at one of our peanut production plants were infected with the COVID-19 virus but our operations were not affected. Similarly a limited number of other personnel throughout the organization were infected with the COVID-19 virus without materially impacting our operations. While governmental agencies and private sector participants are seeking to mitigate the adverse effects of this coronavirus, including measures such as heightened sanitary practices, telecommuting, quarantine, curtailment or cessation of travel, and other restrictions, and the medical community is developing and administering vaccines and other treatment options, the timing and efficacy of such measures is uncertain. These and other responses could impact the ability to harvest, produce and market our products, the availability of those who make the decision to purchase our products and the ultimate demand for our products.

Commodity markets have been and may also be disrupted with attendant effects on demand for some of our products. For example, the Chinese market is a significant source of global demand for the commodities we sell, including soy and corn, and a reduction in demand from China may have a significant effect on commodity prices and demand and potentially broader impacts on our supply chain or the global economy.

Further, the ongoing COVID-19 pandemic, including the spread of virus variants, and any possible future outbreaks of viruses may have a significant adverse effect on us. Firstly, a spread of such diseases amongst our employees, as well as any quarantines affecting them or our facilities could adversely impact the productivity of our personnel and thereby affect our operations, which can impact the quality and continuity of our activities and our reputation. Secondly, the current COVID-19 pandemic and any possible future outbreaks of viruses may have an adverse effect on our suppliers and/or transportation companies used to distribute our products. Thirdly, any quarantines or spread of viruses may adversely affect the demand of our products from end-consumers.

Additionally, our operations may be adversely affected by the wider macroeconomic effect of the ongoing COVID-19 pandemic. Currently, the prospects for diminished economic growth may continue resulting in a recession or diminishing growth in several countries, including Argentina and Brazil, due to the reduction of the economic activities. The final effects of the COVID-19 pandemic could have substantial negative impact on the countries where we operate. Any negative effect on the economy, particularly in the countries that we operate, may decrease incomes and the demand for our products. Lastly, in case of an economic downturn, the price of our common shares may be adversely affected.

We are not now able to determine fully the extent to which COVID-19 will impact our business activity or financial results, which will depend on future developments that are highly uncertain and cannot be predicted fully (see “—Risks Related to Argentina-The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may cause adverse effect on our business and operations” and "— Risks Related to Brazil — The measures taken or to be implemented by the Brazilian government in response to the COVID-19 pandemic may cause adverse effect on our business and operations-").

Unpredictable weather conditions, including as a result of climate change, pest infestations and diseases may have an adverse impact on agricultural production.

The occurrence of severe adverse weather conditions, especially droughts, hail, floods or frost or diseases are unpredictable and may have a potentially devastating impact on agricultural production and may otherwise adversely affect the supply and price of the agricultural commodities that we sell and use in our business. Adverse weather conditions may be exacerbated by the effects of climate change which impacts the entirety of our business and policies.

The effects of severe adverse weather conditions may reduce yields of our agricultural activities. Additionally, higher than average temperatures and rainfall can contribute to an increased presence of pest and insects that may adversely impact our agricultural production.

Furthermore, the potential physical impacts of climate change are uncertain and may vary by region, which includes changes in rainfall patterns, water shortages, changing sea levels and changing temperature levels that could adversely impact our business operations, the location, costs and competitiveness of global agricultural production and related storage and processing facilities. During ~~January~~April and ~~February 2018, Argentina experienced~~November 2019 we suffered from a drought with rain levels below historical averages. Argentina’s Humid Pampas, the country’s corn-belt region, along with the north-east region were among the most affected by the dry weather with reduction in ~~yields of approximately 32%~~Mato Grosso do Sul, which led to ~~24% for corn and soybean compared with our historical averages. The impact was recognized~~a significant decrease in ~~Initial Recognition and Changes in Fair Value of Biological Assets and Agricultural Produce of corn and soybean of $13.2 million and $9.2 million , respectively,~~sugarcane yields for the year ~~ended December 31, 2018.~~and reduced profit from operations by about $49.5 million. In 2020,

from March to October, we suffered a drought in Minas Gerais (Usina Monte Alegre – “UMA”), which led to a significant decrease in sugarcane yields, that reduced UMA’s milling by approximately 120 thousand tons of sugar cane and decreased the operating profit by about $5.1 million. This drought will also have a negative impact on 2021 sugarcane yields in UMA. Yields may also be affected by plagues, diseases or weed infections and related operational problems. See “Item ~~5.-Operating~~5.Operating and Financial Review and ~~Prospects-Trends~~Prospects — Trends and Factors Affecting Our Results of ~~Operations-~~Operations — (i) Effects of Yield Fluctuations”.

The occurrence and effects of disease and plagues can be unpredictable and devastating to agricultural products, potentially rendering all or a substantial portion of the affected ~~harvests~~harvest unsuitable for sale. Our agricultural products are also susceptible to fungus and bacteria that are associated with excessively moist conditions. ~~Even when only a portion of the production is damaged, our~~Our results of operations could be adversely affected ~~because~~in such cases where our production is materially affected and all or a substantial portion of the production costs have been incurred. ~~Although some diseases are treatable, the cost of treatment is high, and we~~We cannot assure you that such events in the future will not adversely affect our operating results and financial condition. Furthermore, if we fail to control a given plague or disease and our production is threatened, we may be unable to supply our main customers, which could affect our results of operations and financial condition.

Our sugar production depends on the volume and sucrose content of the sugarcane that we cultivate or that is supplied to us by growers located in the vicinity of our mills. Both sugarcane yields and sucrose content depend primarily on weather conditions such as rainfall and temperature, which vary. Weather conditions have historically caused volatility in the ethanol and sugar industries. Future weather patterns may reduce the amount of sugarcane that we can harvest or purchase, or the sucrose content in such sugarcane, and, consequently, the amount of sugar and ethanol we can produce in any given harvest. Any reduction in production volumes could have a material adverse effect on our operating results and financial condition.

As a result, we cannot assure you that future severe adverse weather conditions, including as a result of climate change, or pest infestations will not adversely affect our operating results and financial condition.

~~Fluctuation~~Fluctuations in market prices for our products could adversely affect our financial condition and results of operations.

Prices for agricultural products and by-products, including, among ~~others,~~other things, sugar, ethanol, and grains, like those of other commodities, have historically been cyclical and sensitive to domestic and international changes in supply and demand and can be expected to fluctuate significantly. In addition, the agricultural products and by-products we produce are traded on commodities and futures exchanges and thus are subject to speculative trading, which may adversely affect us. The prices that we are able to obtain for our agricultural products and by-products depend on many factors beyond our control including:

•prevailing world commodity prices, which historically have been subject to significant fluctuations over relatively short periods of time, depending on worldwide demand and supply;

•changes in the agricultural subsidy levels of certain important producers (mainly the U.S. and the European Union (“E.U.”) and the adoption of other government policies affecting industry market conditions and prices;

•changes to trade barriers of certain important consumer markets (including China, India, the U.S. and the E.U.) and the adoption of other governmental policies affecting industry market conditions and prices;

•changes in government policies for biofuels;

•disruptions in commodity markets caused by global events, including the impact of the COVID-19 pandemic;

•world inventory levels, i.e., the supply of commodities carried over from year to year;

•climatic conditions and natural disasters in areas where agricultural products are cultivated;

•the production capacity of our competitors; and

•demand for and supply of competing commodities and substitutes.

Further, because we may not hedge 100% of the price risk of our agricultural products, we may be unable to have minimum price guarantees for all of our production and are, therefore, exposed to risks associated with the prices of agricultural products and their volatility. We are subject to fluctuations in prices of agricultural products that could result in our receiving lower prices for our agricultural products than our production costs.

The rapid and widening spread of the COVID-19 is impacting the price of the products we sell (i.e., ethanol, corn, powder milk among others) due to the lower demand and economic activity worldwide. As an example, during the month of March 2021, sugar prices in USD decreased by 8.8% according to ICE-NY, anhydrous and hydrous ethanol prices ins BRL decreased by 25% and 26%, respectively, according to ESALQ and corn prices in USD decreased by 4.6% based on CBOT. Given the uncertainty around the extent and timing of the COVID-19 pandemic we cannot predict or asses the final impact of the pandemic. (See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results”).

In addition, there is a strong relationship between the value of our land holdings and market prices of the commodities we produce, which are affected by global economic conditions. A decline in the prices of grains, sugar, ethanol, or related by-products below their current levels for a sustained period of time could significantly reduce the value of our land holdings and materially and adversely affect our financial condition and results of operations.

Ethanol prices are correlated to the price of sugar and are ~~becoming~~also closely correlated to the price of oil, so that a decline in the price of sugar ~~will adversely affect both our ethanol and sugar businesses, and~~or a decline in the price of oil ~~may~~will adversely affect our sugar and ethanol ~~business.~~businesses.

A vast majority of ethanol in Brazil is produced at sugarcane mills that produce both ethanol and sugar. Because sugarcane millers are able to alter their product mix in response to the relative prices of ethanol and sugar, ~~this results in~~ the prices of both products ~~being~~are directly correlated, and the correlation between ethanol and sugar may increase over time. ~~In addition, sugar~~Sugar prices in Brazil are determined by prices in the world market, resulting in a correlation between Brazilian ethanol prices and world sugar prices. Accordingly, a decline in sugar prices would have an adverse effect on the financial performance of our ethanol and sugar businesses.

~~Currently,~~In addition, gasoline prices in Brazil are set by the Brazilian government through Petrobras. Because flex-fuel vehicles, which have become popular in Brazil, allow consumers to choose between gasoline and ethanol at the pump rather than in the showroom, ethanol prices are ~~now becoming increasingly~~ correlated to gasoline prices and, consequently, oil prices. ~~Therefore,~~The COVID-19 pandemic had an impact at the inception . See "We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and results of operations."

While we are not now able to fully determine the impact of fluctuation. A decline in oil prices to our operations, we believe that a decline in oil prices or a decision by Petrobras to lower ~~gasoline~~fuel prices ~~would~~and its attendant effects on the price of ethanol and sugar will have an adverse effect on the financial performance of our ethanol and sugar business.

The expansion of our business through acquisitions poses risks that may reduce the benefits we anticipate from these transactions.

As part of our business strategy, we have grown through acquisitions. We plan to continue growing by acquiring other farms and production facilities throughout South America. We believe that the agricultural industry and agricultural activity in the region are highly fragmented and that our future consolidation opportunities will continue to be significant to our growth. However, our management is unable to predict whether or when any prospective acquisitions or strategic alliances will occur, or ~~the likelihood of a certain transaction being completed~~if such acquisitions or strategic alliances will be agreed upon on favorable terms and conditions. In addition, we are unable to predict the effect that changes in Argentine or Brazilian legislation regarding foreign ownership of rural properties could have in our business. See “—Risks Related to Argentina—Argentine law concerning foreign ownership of rural properties may adversely affect our results of operations and future investments in rural properties in Argentina” and “—Risks Related to Brazil—Changes in Brazilian rules concerning foreign investment in rural properties may adversely affect our investments.” Our ability to continue to expand our

business successfully through acquisitions and strategic alliances depends on many factors, including our ability to identify potential acquisitions, or access financing sources, including through capital markets, at an acceptable ~~cost and~~conditions, negotiate favorable transaction ~~terms. Even if~~terms and successfully consummate and integrate any businesses we ~~are able~~acquire.

To support the acquisitions we pursue, we may need to implement new or upgraded strategies, systems, procedures and controls for our operations and will face risks, including diversion of management time and focus and challenges associated with integrating new managers and employees. We may be unable to realize synergies and efficiency gains from acquisitions or to identify, ~~acquisition targets and obtain the necessary financing~~negotiate or finance future acquisitions, particularly as part of our international growth strategy, successfully or at favorable valuations, or to ~~make~~effectively integrate these acquisitions weor strategic alliances with our current businesses. Our failure to integrate new businesses or manage any new alliances successfully could ~~financially overextend ourselves,~~adversely affect our business and financial performance.

Any future strategic alliances or acquisitions of businesses, technologies, services or products might require us to obtain additional equity or debt financing, which may not be available on favorable terms, or at all, and may result in unforeseen operating difficulties and expenditures, as well as strain on our organizational culture, especially if an acquisition is followed by a period of lower than projected prices for our products. Future acquisitions and joint ventures may be subject to antitrust and other regulatory approvals, which may not be obtained on a timely basis or at all.

Acquisitions also expose us to the risk of successor liability relating to actions involving an acquired company, its management or contingent liabilities incurred before the acquisition. The due diligence we conduct in connection with an acquisition, and any contractual guarantees or indemnities that we receive from the sellers of acquired companies, may not be sufficient to protect us from, or compensate us for, actual liabilities. Any material liability associated with an acquisition could adversely affect our reputation and results of operations and reduce the benefits of the acquisition.

~~To support~~In addition, we are unable to predict the ~~acquisitions we hope~~effect that changes in Argentine or Brazilian legislation regarding foreign ownership of rural properties could have in our business. (See “ — Risks Related to ~~make, we~~Argentina-Argentine law concerning

foreign ownership of rural properties may need to implement new or upgraded strategies, systems, procedures and controls for our operations and will face risks, including diversion of management time and focus and challenges associated with integrating new managers and employees. Our failure to integrate new businesses successfully could adversely affect our ~~business~~results of operations and ~~financial performance.~~

Wefuture investments in rural properties in Argentina” and “—Risks Related to Brazil—Changes in Brazilian rules concerning foreign investment in rural properties may ~~be unable to realize synergies and efficiency gains from acquisitons or to identify, negotiate or finance future acquisitions, particularly as part of~~adversely affect our international growth strategy, successfully or at favorable valuations, or to effectively integrate these acquisitions or joint venture businesses with our current businesses. Any future joint ventures or acquisitions of businesses, technologies, services or products might require us to obtain additional equity or debt financing, which may not be available on favorable terms, or at all. Future acquisitions and joint ventures may also results in unforeseen operating difficulties and expenditures, as well as strain on our organizational culture.investments.”)

A significant increase in the price of raw materials we use in our operations, or the shortage of such raw materials, could adversely affect our results of operations.

Our production process requires various raw materials, including primarily fertilizer, pesticides and seeds, which we acquire from local and international suppliers. We do not have long-term supply contracts for most of these raw materials. A significant increase in the cost of these raw materials, especially fertilizer and agrochemicals, a shortage of raw materials or the unavailability of these raw materials entirely could reduce our profit margin, reduce our production and/or interrupt the production of some of our products, in all cases adversely affecting the results of our operations and our financial condition.

For example, we rely on fertilizers and agrochemicals, many of which are ~~petro-chemical~~petrochemical based. In our Farming business, fertilizers and agrochemicals represented approximately ~~19%~~17% of our total cost of production (including manufacturing and administrative expenses) for the ~~2017/2018~~2019/2020 harvest year. In our Sugar, Ethanol and Energy business, fertilizers and agrochemicals represented ~~26%~~16.7% of our cost of production (including manufacturing and administrative expenses) for ~~2017~~2019 and ~~12%~~17.1% for ~~2018.~~2020. Worldwide production of agricultural products has increased significantly in recent years, increasing the demand for agrochemicals and fertilizers. This has resulted, among other things, in increased prices for agrochemicals and fertilizers.

Increased energy prices and frequent interruptions of energy supply could adversely affect our business.

We require substantial amounts of fuel oil and other resources for our harvest activities and transport of our agricultural products. During the ~~2017/18~~2019/20 harvest year, fuel represented 5%3.2% of the cost of production (including manufacturing and administrative expenses) of our Farming business. In our Sugar, Ethanol and Energy business, fuel represented ~~13%~~9.3% of our cost of production (including manufacturing and administrative expenses) for the ~~2018/19~~2020/21 harvest year and 10.2% for the 2019/2020 harvest year. We rely upon third parties for our supply of energy resources used in our operations. The prices for and availability of energy resources may be subject to change or curtailment, respectively, due to, among other things, new laws or regulations, imposition of new taxes or tariffs, interruptions in production by suppliers, imposition of restrictions on energy supply by government, worldwide price levels and market conditions. Over the last few years, the Argentine government has taken certain measures in order to reduce the use of energy during peak months of the year by frequently cutting energy supply to industrial facilities and large consumers to ensure adequate supply for residential buildings. For example, certain of our industrial facilities have been subject to a quota system whereby electricity cuts occur on a work shift basis, resulting in our facilities being shut down during certain work shifts. Also, the Macri administration in Argentina has announced a revision to the current subsidy policies. While some of our facilities utilize different sources of energy, such as firewood and liquefied natural gas, and have attempted to stock their required supplies ahead of higher demand periods, weWe cannot assure you that we will be able to procure the required energy inputs at acceptable prices. If energy supply is cut for an extended period of time and we are unable to find replacement sources at comparable prices, or at all, our business and results of operations could be adversely affected.

We depend on stable international trade and economic and other conditions in key export markets for our products.

Our operating results depend largely on economic conditions and regulatory policies for our products in major export markets. The ability of our products to compete effectively in these export markets may be adversely affected by a number of factors that are beyond our control, including the deterioration of macroeconomic conditions, volatility of exchange rates, the imposition of greater tariffs or protectionist policies or other trade barriers or other factors in those markets, such as regulations relating to chemical content of products and safety requirements. The European Union, for example, limits the import of genetically modified organisms, or “GMOs.” See ~~“Some~~“ — Some of the agricultural commodities and food products that we produce contain genetically modified organisms.”

Due to the growing participation in the worldwide agricultural commodities markets by commodities produced in South America, South American growers, including us, are increasingly affected by the measures taken by importing countries in order to protect their local producers. Measures such as the limitation on imports adopted in a particular country or region may affect the sector’s export volume significantly and, consequently, our operating results. Additionally, due to the ongoing COVID-19 pandemic, governments and other authorities have established certain restrictions on the freedom of movement and business operations, including travel bans, supply chain disruptions and border closures. Other measures such as the restriction on imports or business closures of ports, airports or any locations of entry, or border closings may have a material adverse impact on our operations and financial results. See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results”.

If the sale of our products into a particular importing country is adversely affected by trade barriers or by any of the factors mentioned above, the relocation of our products to other consumers on terms equally favorable could be impaired, and our business, financial condition and operating results may be adversely affected.

A worldwide economic downturn could weaken demand for our products or lower prices.

The demand for the products we sell may be affected by international, national and local economic conditions that are beyond our control. Adverse changes in the perceived or actual economic climate, such as higher fuel prices, higher interest rates, stock and real estate market declines and/or volatility, more restrictive credit markets, higher taxes, and changes in governmental policies could reduce the level of demand or prices of the products we produce. We cannot predict the duration or magnitude of ~~this~~a downturn or the timing or strength of economic recovery. If a downturn were to continue for an extended period of time or worsen, we could experience a prolonged period of decreased demand and prices. In addition, economic downturns have and may adversely impact our suppliers, which can result in disruptions in goods and services and financial losses. Finally, the deterioration of global economic conditions, particularly in relevant economies such as the United States and China, as a result of the continuing COVID-19 pandemic or other events may ultimately decrease the customer demand for our products and have a material adverse effect on our financial condition and results of operations. (See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results.”

Our business is seasonal, and our results may fluctuate significantly depending on the growing cycle of our crops.

As with any agricultural business enterprise, our business operations are predominantly seasonal in nature. The harvest of corn, soybean and rice generally occurs from January to May. Wheat is harvested from December to January. Cotton is harvested from June to August, but requires processing which takes approximately two to three months. Our operations and sales are affected by the growing cycle of our crops process and the timing of our harvest sales. In addition, our sugar and ethanol business is subject to seasonal trends based on the sugarcane growing cycle in the center-south region of Brazil. ~~Although, we operate under a “non-stop” or “continuous” harvest model which allows us to crush sugarcane year round, the~~The annual sugarcane harvesting period in the center-south region of Brazil begins in March/April and ends in November/December. This creates price fluctuations which result in fluctuations in our sugar and ethanol inventories, usually peaking in December to take advantage of higher prices during the traditional off-season (i.e., January through April), and a degree of seasonality in our gross profit. Seasonality could have a material adverse effect on our business and financial performance. In addition, our quarterly results may vary as a result of the effects of fluctuations in commodities prices, production yields and costs. Therefore, our results of operations have varied significantly from period to period and are likely to continue to vary, due to seasonal factors.

Our dairy cattle are vulnerable to diseases.

Diseases among our dairy cattle ~~herds,~~herd, such as mastitis, tuberculosis, brucellosis and foot-and-mouth disease, can have an adverse effect on ~~the productivity of our dairy cows.~~productivity. Outbreaks of cattle diseases may also result in the closure of certain important markets to our cattle-derived products. ~~Although we abide by national veterinary health guidelines, including laboratory analyses and vaccination, to control diseases among our herds, especially foot and mouth disease, we~~We cannot assure ~~you~~ that future outbreaks will not occur. A future outbreak of diseases among our cattle herds could adversely affect our milk sales and operating results and financial condition.

Furthermore, outbreaks, or fears of outbreaks, of any of these or other animal diseases may lead to cancellation of orders by our customers and, particularly if the disease has the potential to affect humans, or create adverse publicity that may have a material adverse effect on consumer demand for our products. Moreover, outbreaks of animal disease may result in foreign governmental action to close export markets to some or all of our products, which may result in the destruction of some or all of these animals.

We face significant competition from Brazilian and foreign producers, which could adversely affect our financial performance.

We face strong competition from other producers in our domestic market and from foreign producers in our export markets. The market for commodities is highly fragmented. Small producers can also be important competitors, some of which operate in the informal economy and are able to offer lower prices by meeting lower quality standards. Competition from other producers is a barrier to expanding our sales in the domestic/foreign market. With respect to exports, we compete with other large, vertically integrated producers that have the ability to produce quality products at low cost, as well as with foreign producers.

The Brazilian markets, in particular, are highly price-competitive and sensitive to product substitution. ~~Even if we remain a low-cost producer, customers~~Customers may seek to diversify their sources of supply by purchasing a portion of the products they need from producers in other countries, as some

of our customers in key export markets have begun to do. We expect that we will continue to face strong competition in all of our markets and anticipate that existing or new competitors may broaden their product lines and extend their geographic scope. Any failure by us to respond to product, pricing and other moves by competitors may negatively affect our financial performance.

Our current insurance coverage may not be sufficient to cover our potential losses.

Our production is, in general, subject to different risks and hazards, including adverse weather conditions, fires, diseases and pest infestations, other natural phenomena, industrial accidents, labor disputes, changes in the legal and regulatory framework applicable to us, environmental contingencies and other natural phenomena. Our insurance currently covers only part of the losses we may incur and does not cover losses on crops due to hail storms, fires or similar risks. Furthermore, ~~although we maintain insurance at levels that are customary in our industry,~~ certain types of risks may not be covered by the policies we have for our industrial facilities. Additionally, we cannot guarantee that the indemnification paid by the insurer due to the occurrence of a casualty covered by our policies will be sufficient to entirely compensate us for the loss or damages suffered. Moreover, we may not be able to maintain or obtain insurance of the type and amount desired at reasonable costs. If we were to incur significant liability for which we were not fully insured, it could have a materially adverse effect on our business, financial condition and results of operations.

~~In addition, even where we incur losses that are ultimately covered by insurance, we~~We may incur additional expenses to mitigate the loss, such as shifting production to another facility. These costs may not be fully covered by our insurance.

A reduction in market demand for ethanol or a change in governmental policies reducing the amount of ethanol required to be added to gasoline may adversely affect our business.

Government authorities of several countries, including Brazil and certain states of the United States, currently require the use of ethanol as an additive to gasoline. Commencing in March 2015, the Brazilian Government increased the required blend of anhydrous ethanol to gasoline from 25% to 27% which created an additional demand for anhydrous ethanol in the order of approximately 800 thousand cubic meters of anhydrous per year.

Approximately ~~45%~~31% of all fuel ethanol in Brazil is consumed in the form of anhydrous ethanol blended with gasoline; the remaining ~~55%~~69% of fuel ethanol is consumed in the form of hydrous ethanol, which is mostly used to power flex-fuel vehicles. Flex-fuel vehicles have the flexibility to run either on gasoline (blended with anhydrous ethanol) or hydrous ethanol. In ~~the~~The United States, ~~almost all~~which currently requires the addition of 10% of ethanol into gasoline, ~~sold contains 10% ethanol.~~is considering increasing this requirement to 15% in 2021 The European Union aims for 10% of the energy used in the transport sector to derive from renewable energy sources by 2020, without specific targets for certain renewable energy sources and without intermediate targets, to be determined by each Member State. Other countries such as Colombia ~~Mexico,~~and Canada ~~Philippines and China~~ have a 10% and 5% biofuel blending mandate, respectively, while Argentina currently has a 12% ethanol blending. In March 2021, the British government announced that that next September it will require an increase from 5% to 10% in biofuel additives to petroleum products. Also, India has established a target of achieving 20% ethanol-blending with petroleum by 2025. In addition, flex-fuel and ethanol powered vehicles in Brazil are entitled to a tax benefit in the form of a lower tax rate on manufactured products (Imposto sobre Produtos Industrializados) and therefore are currently taxed at lower levels than gasoline-only vehicles, which has contributed to the increase in production and sale of flex-fuel vehicles. Many of these policies and incentives ~~stem from, and are mostly driven by,~~aim to mitigate the effects of climate change. If climate change ~~issue. If such concerns or perception~~policies were to change, the legal framework and incentive structure promoting the use of ethanol may also change, leading to a reduction in the demand for ethanol. In addition, any reduction in the percentage of ethanol required in fuel blended with gasoline or increase in the ~~levels~~rates at which flex-fuel vehicles are taxed in Brazil, or any growth in the demand for natural gas and other fuels as an alternative to ethanol, lower gasoline prices or an increase in gasoline consumption (versus ethanol), may cause demand for ethanol to decline and affect our business.

Additionally, the COVID-19 outbreak and other market factors have resulted in a reduction in the demand for oil and related fuels, causing significant volatility in the price of, and a reduction in the demand for, ethanol. Due to the uncertainty surrounding the COVID-19 pandemic and its impact on global markets, we cannot fully determine the extent of the reduction in the demand for ethanol, which, if sustained, may have a material adverse impact on our operations and financial condition. See “— Ethanol prices are correlated to the price of sugar and are also closely correlated to the price of oil, so that a decline in the price of sugar or a decline in the price of oil will adversely affect our sugar and ethanol businesses and (See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results.”

Growth in the sale and distribution of ethanol depends in part on infrastructure improvements, which may not occur on a timely basis, if at all.

In contrast to the well-established logistical operations and infrastructure supporting sugar exports, ethanol exports inherently demand much more complex preparation and means of distribution, including outlets from our facilities to ports and

shipping to other countries. Substantial infrastructure development by persons and entities outside our control is required for our operations, and the ethanol industry generally, to grow. Areas requiring expansion include, but are not limited to, additional rail capacity, additional storage facilities for ethanol, increases in truck fleets capable of transporting ethanol within localized markets, expansion of refining and blending facilities to handle ethanol, growth in service stations equipped to handle ethanol fuels, and growth in the fleet of flex-fuel vehicles. Specifically, with respect to ethanol exports, improvements in consumer markets abroad are needed in the number and capacity of ethanol blending industrial plants, the distribution channels of gasoline-ethanol blends and the chains of distribution stations capable of handling fuel ethanol as an additive to gasoline. Substantial investments required for these infrastructure changes and expansions may not be made or they may not be made on a timely basis. Any delay or failure in making the changes in or expansion of infrastructure may hurt the demand for or prices of our products, prevent our products’ delivery, impose additional costs on us or otherwise have a serious adverse effect on our business, operating results or financial status. Our business relies on the continuing availability of infrastructure for ethanol production, storage and distribution, and any infrastructure disruptions may have a material adverse effect on our business, financial condition and operating results.

We may be harmed by competition from alternative fuels, products and production methods.

Ethanol competes in the biofuel market with other, established fuels such as biodiesel, as well as fuels that are still in the development phase, including methanol and butanol from biomass. Alternative fuels could become more successful than ethanol in the biofuels market over the medium or long term due to, for example, lower production costs, greater environmental benefits or other more favorable product characteristics. In addition, alternative fuels may also benefit from tax incentives or other more favorable governmental policies than those that apply to ethanol. Furthermore, our success depends on early identification of new developments relating to products and production methods and continuous improvement of existing expertise in order to ensure that our product range keeps pace with technological change. Competitors may gain an advantage over us by, for example, developing or using new products and production methods, introducing new products to the market sooner than we do, or securing exclusive rights to new technologies, thereby significantly harming our competitive position.

A substantial portion of our assets is farmland that is highly illiquid.

We have been successful in partially rotating and monetizing a portion of our investments in farmland. During the last fourteen years, we have executed transactions for the purchase and disposition of land for over $688 million. Ownership of a significant portion of the land we operate is a key part of our business model. However, agricultural real estate is generally an illiquid asset. Moreover, the adoption of laws and regulations that impose limitations on ownership of rural land by foreigners in the jurisdictions in which we operate may also limit the liquidity of our farmland holdings. See “—Risks Related to Argentina—Argentine law concerning foreign ownership of rural properties may adversely affect our results of operations and future investments in rural properties in Argentina” and “—Risks Related to Brazil—Changes in Brazilian rules concerning foreign investment in rural properties may adversely affect our investments.” As a result, it is unlikely that we will be able to adjust our owned agricultural real estate portfolio promptly in response to changes in economic, business or regulatory conditions. Illiquidity in local market conditions may adversely affect our ability to complete dispositions, to receive proceeds generated from any such sales or to repatriate any such proceeds.

We have entered into agriculture partnership agreements in respect of a significant portion of our sugarcane plantations.

As of December 31, ~~2018,~~2020, approximately ~~95 %~~93.81% of our sugarcane plantations were leased through agriculture partnership agreements, for periods of an average of six to twelve years. We cannot guarantee that these agriculture partnerships will be renewed after their respective ~~terms. Even if~~terms end. We cannot guarantee that we ~~are~~will be able to renew these agreements ~~we cannot guarantee that~~and whether such renewals will be on terms and conditions satisfactory to us. Any failure to renew the agriculture partnerships or obtain land suitable for sugarcane planting in sufficient quantity and at reasonable prices to develop our activities could adversely affect our results of operations, increase our costs or force us to seek alternative properties, which may not be available or be available only at higher prices.

We may be subject to labor disputes from time to time that may adversely affect us.

~~Our~~Approximately 18% of our employees are represented by unions or equivalent bodies and are covered by collective bargaining or similar agreements which are subject to periodic renegotiation. We may not successfully conclude our labor negotiations on satisfactory terms, which may result in a significant increase in the cost of labor or may result in work stoppages or labor disturbances that disrupt our operations. Cost increases, work stoppages or disturbances that result in substantial amounts of raw product not being processed could have a material and adverse effect on our business, results of operations and financial condition.

Furthermore, all benefits and obligations provided under collective agreements negotiated are binding upon all parties, and have legal and practical effects on employment agreements.

If we do not observe legal and conventional binding provisions, it may be susceptible to labor disputes filed by employees, Public Civil Action filed by the Labor Public Prosecution and inspections by Labor Protection Agencies, resulting in the payment of legal and/or administrative sanctions.

We may not possess all of the permits and licenses required to operate our business, or we may fail to renew or maintain the licenses and permits we currently hold. This could subject us to fines and other penalties, which could materially adversely affect our results of operations.

We are required to hold a variety of permits and licenses to conduct our farming and industrial operations, including but not limited to permits and licenses concerning land development, agricultural and harvesting activities, seed production, labor standards, occupational health and safety, land use, water use and other matters. We may not possess all of the permits and licenses required for each of our business segments. In addition, the approvals, permits or licenses or renewals there of required by governmental agencies may change without substantial advance notice, and we could fail to obtain the approvals, permits or licenses required to expand our business. If we fail to obtain or to maintain such permits or licenses, or if renewals are granted with onerous conditions, we could be subject to fines and other penalties and be limited in the number or the quality of the products that we could offer. As a result, our business, results of operations and financial condition could be adversely affected.

We are subject to extensive environmental regulation, and concerns regarding climate change may subject us to even stricter environmental regulations.

Our activities are subject to a broad set of laws and regulations relating to the protection of the environment. Such laws include compulsory maintenance of certain preserved areas within our properties, management of pesticides and associated hazardous waste and the acquisition and renewals of permits for water use and effluents disposal. In addition, the storage and processing of our products may create hazardous conditions. We could be exposed to civil, criminal and administrative penalties in addition to the obligation to remedy the adverse effects of our operations on the environment and to indemnify third parties for damages.

In addition, pursuant to Brazilian environmental legislation, the corporate entity of a company will be disregarded (such that the owners of the company will be liable for its debts) if necessary to guarantee the payment of costs related to the recovery of environmental damages, whenever the legal entity is deemed by a court to be an obstacle to reimbursement of damages caused to the quality of the environment. ~~We have incurred, and will continue to incur, capital and operating expenditures to comply with these laws and regulations.~~Moreover, the relevant public authority may prevent us from using the property as long as environmental damages persist, which can directly affect the rent revenue stream of the agriculture partnership agreements. Because of the possibility of unanticipated regulatory measures or other developments, particularly as environmental laws become more stringent, the amount and timing of future expenditures required to maintain compliance could increase from current levels and could adversely affect the availability of funds for capital expenditures and other purposes. Compliance with existing or new environmental laws and regulations, as well as obligations in agreements with public entities, could result in increased costs and expenses.

Environmental laws and their enforcement are becoming more stringent in Argentina and Brazil increasing the risk of and penalties associated with violations, which could impair or suspend our operations or projects and our operations expose us to potentially adverse environmental legislation and regulation. Failure to comply with past, present or future laws could result in the imposition of fines, third party claims, and investigation by environmental and police authorities and the relevant public attorney office. For example, the perceived effects of climate change may result in additional legal and regulatory requirements to reduce or mitigate the effects of our industrial facilities’ emissions. Such requirements, if enacted, could increase our capital expenditures and expenses for environmental compliance in the future, which may have a material and adverse effect on our business, results of operations and financial condition. Moreover, the denial of any permit that we have requested, or the revocation of any of the permits that we have already obtained, may have an adverse effect on our results of operations.

Some of the agricultural commodities and food products that we produce contain genetically modified organisms ("GMO").

Our soybean, corn and cotton products contain GMOs in varying proportions depending on the year and the country of production. The use of GMOs in food has been met with varying degrees of acceptance in the markets in which we operate. ~~The United States, Argentina and Brazil, for example, have approved the use of GMOs in food products, and GMO and non-GMO grain in those~~In certain countries, ~~is produced and frequently commingled during the grain origination process. Elsewhere,~~ adverse publicity about genetically modified food has led to governmental regulation limiting sales of GMO products in some of the markets in which our customers sell our products, including the European Union. It is possible that new restrictions on GMO products will be imposed in major markets for some of our products or that our customers will decide to purchase fewer GMO products or not buy GMO products at all, which could have a material adverse effect on our business, results of operations, financial condition or prospects.

Increased regulation of food safety could increase our costs and adversely affect our results of operations.

Our manufacturing facilities and products are subject to regular local, as well as foreign, governmental inspections and extensive regulation in the food safety area, including governmental food processing controls. We ~~currently comply with all food safety requirements in the markets where we conduct our business. We~~ incur significant costs in connection with ~~such~~the compliance

of food and safety requirements and changes in government regulations relating to food safety could require us to make additional investments or incur additional costs to meet the necessary specifications for our products. Our products are often inspected by foreign food safety officials, and any failure to pass those inspections can result in our being required to return all or part of a shipment, destroy all or part of a shipment or incur costs because of delays in delivering products to our customers. Any tightening of food safety regulations could result in increased costs and could have an adverse effect on our business and results of operations.

If our products become contaminated, we may be subject to product liability claims, product recalls and restrictions on exports that would adversely affect our business.

The sale of food products for human consumption involves the risk of injury to consumers. These injuries may result from tampering by third parties, bioterrorism, product contamination or spoilage, including the presence of bacteria, pathogens, foreign objects, substances, chemicals, other agents, or residues introduced during the growing, storage, handling or transportation phases.

We cannot be sure that consumption of our products will not cause a health-related illness in the future or that we will not be subject to claims or lawsuits relating to such matters. ~~Even if a product liability claim is unsuccessful or is not fully pursued, the~~The negative publicity surrounding any assertion that our products caused illness or injury could adversely affect our reputation with existing and potential customers and our corporate and brand image, and we could also incur significant indemnification liabilities legal expenses. Moreover, claims or liabilities of this nature might not be covered by any rights of indemnity or contribution that we may have against others, which could have a material adverse effect on our business, results of operations or financial condition.

IFRS accounting standards related to biological assets require us to make numerous estimates in the preparation of our financial statements and therefore limit the comparability of our financial statements to similar issuers using U.S. GAAP.

IAS 41 “Biological Assets” requires that we measure our biological assets and agriculture produce at the point of harvest at fair value less costs to sell. Therefore, we are required to make assumptions and estimates relating to, among other things, future agricultural commodity yields, prices, and production costs extrapolated through a discounted cash flow method. For example, the value of our biological assets generated initial recognition and changes in fair value of biological assets amounting to a $122.7 million gain in 2020; $68.6 million gain in 2019 and a $16.2 million gain in ~~2018; $63.2 million gain in 2017 and a $125.5 million gain in 2016.~~2018. The assumptions and estimates used to determine the fair value of biological assets, and any changes to such prior estimates, directly affect our reported results of operations. If actual market conditions differ from our estimates and assumptions, there could be material adjustments to our results of operations. In addition, the use of such discounted cash flow method utilizing these future estimated metrics differs from generally accepted accounting principles in the United States (“U.S. GAAP”). As a result, our financial statements and reported earnings are not directly comparable to those of similar companies in the United States.

~~Certain of our subsidiaries~~We have substantial indebtedness which could impair their financial condition and decrease the amount of dividends we receive.

As of December 31, 2020, we had $634.8 million of net debt outstanding on a consolidated basis, including $500 million of Notes 2027, incurred by Adecoagro S.A. Certain of our subsidiaries in Argentina and Brazil have a substantial amount of debt, which requires significant principal and interest payments. ~~As of December 31, 2018, we had $588.5 million of net debt outstanding on a consolidated basis, including $500 million of Notes 2027, incurred by Adecoagro S.A.~~ Such indebtedness could affect our subsidiaries’ future operations, for example, by requiring a substantial portion of their cash flows from operations to be dedicated to the payment of principal and interest on indebtedness instead of funding working capital and capital improvements and other investments. The substantial amount of debt incurred by us and our subsidiaries also imposes significant debt obligations, increasing ~~their~~our cost of borrowing to satisfy business needs and limiting ~~their~~our ability to obtain additional financing.

The substantial level of indebtedness borne by certain of our subsidiaries also affects the amount of cash available to them to pay as dividends, increasing our vulnerability to economic downturns or other adverse developments relative to competitors with less leverage, and limiting our ability to obtain additional financing ~~on their behalf~~ for working capital, capital expenditures, acquisitions or other corporate purposes in the future. Moreover, ~~by reducing the level of dividends we may receive, such~~our indebtedness places limits on our ability to make acquisitions or needed capital expenditures or to pay dividends to our shareholders.

The terms of our indebtedness and that of certain of our subsidiaries impose significant restrictions on our operating and financial flexibility.

The terms of our Senior Notes due 2027 and the debt instruments of some of our subsidiaries contain customary covenants including limitations on our ability to, among other things, incur or guarantee additional indebtedness; make restricted payments, including dividends and prepaying indebtedness; create or permit liens; enter into business combinations and asset sale transactions; make investments, including capital expenditures; and enter into new businesses. Some of these debt instruments are also secured

by various collateral including mortgages on farms, pledges of subsidiary stock and liens on certain facilities, equipment and accounts. Some of these debt instruments also contain cross-default provisions, where a default on one loan by one subsidiary could result in lenders of otherwise performing loans declaring a default. These restrictions could limit our ability to obtain future financing, withstand a future downturn in business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise. Moreover, by reducing the level of dividends we may receive, the terms of our subsidiaries’ indebtedness places limits on our ability to make acquisitions or needed capital expenditures or to pay dividends to our shareholders.

The financial ratio covenants we are currently required to meet, some of which are measured on a combined basis aggregating results of the borrowing subsidiaries and others which are measured on an individual debtor basis, include, among others, debt service coverage, minimum liquidity and leverage ratios.

The failure to maintain applicable financial ratios, in certain circumstances, would prevent us from borrowing additional amounts and could result in a default under such indebtedness. If we or our subsidiaries are unable to repay those amounts, the affected lenders could initiate bankruptcy-related proceedings or enforce their rights to the collateral securing such indebtedness, which would have a material and adverse effect on our business, results of operations and financial condition.

Fluctuations in interest rates could have a significant impact on our results of operations, indebtedness and cash flow.

As of December 31, ~~2018,~~2020, approximately ~~83.9%~~$717.6 million of our total debt on a consolidated basis was subject to fixed interest rates and ~~16.1%~~$253.4 million was subject to variable interest rates. As of December 31, ~~2018,~~2020, borrowings incurred by the Company’s subsidiaries in Brazil were repayable at various dates between January ~~2019~~2021 and ~~September 2024~~November 2027 and bear either fixed interest rates ranging from 2.5% to 7.95% per annum or variable rates based on ~~LIBOR,~~ Taxa de Juros de Longo Prazo ~~( TJLP); or other specific base-rates~~(TJLP), Índice de Preços ao Consumidor Amplo (IPCA) and CDI plus spreads ranging from ~~6.89%~~1.62% to ~~12.03%~~4.24% per annum. ~~At December 31, 2018, LIBOR (six months) was 2.88%.~~ Borrowings incurred by the Company´s subsidiaries in Argentina are repayable at various dates between January ~~2019~~2021 and June ~~2024~~2028 and bear either fixed interest rates ranging from ~~4.5%~~2.8% to 7.0% per annum. Significant interest rate increases can have an adverse effect on our profitability, liquidity and financial position. Currently, our variable interest rate exposure is mainly linked to the ~~LIBOR~~London Interbank Offer Rate ("LIBOR") rate plus specified spreads. If interest rates increase, whether because of an increase in market interest rates or an increase in our own cost of borrowing, our debt service obligations for our variable rate indebtedness would increase, ~~even though the amount of borrowings remains the same,~~ and our net income could be adversely affected. At December 31, 2020, LIBOR (six months) was 0.26%.

Volatility in LIBOR or other reference rates could increase our periodic interest payments and have an adverse effect on our total financing costs. We ~~occasionally~~may be unable to adequately adjust our prices to offset any increased financing costs, which would have an adverse effect on our results of operations.

On July 27, 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. Further, on November 30, 2020, ICE Benchmark Administration (“IBA”) announced that it planned to consult on its intention to cease the publication of one-week and two-month LIBOR on December 31, 2021, and the overnight, one-month, three-month, six-month and 12-month LIBOR tenors on June 30, 2023. That same day, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency jointly responded to IBA’s announcement by encouraging banks to stop writing contracts referencing LIBOR as soon as possible (and in any event by the end of 2021, subject to certain limited exceptions), stating that entering into new contracts that use LIBOR as a reference rate after December 31, 2021, and failing to prepare for disruptions to LIBOR (including operating without robust fallback language that includes a clearly defined alternative reference rate), could cause significant issues if not addressed. These announcements indicate that the continuation of LIBOR on the current basis cannot and will likely not be guaranteed after June 2023 and may be subject to significant disruption after December 2021.It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, the United States or elsewhere. See also the discussion of interest rate ~~swaps~~risk in “Item 11. Quantitative and ~~forward interest rate contracts to reduce interest rate~~Qualitative Disclosures About Market Risk-”Risk of Fluctuations in Interest Rates.”

The transition process may involve, among other things, increased volatility ~~and funding costs associated with certain debt issues and to achieve a desired proportion of variable-versus fixed-rate debt, based~~or illiquidity in markets for instruments that currently rely on ~~current and projected market conditions. We have not applied hedge accounting to these transactions and~~LIBOR. The transition may ~~not do so~~also result in reductions in the ~~future. Therefore,~~value of certain instruments or the effectiveness of

related transactions such as hedges, increased borrowing costs, uncertainty under applicable documentation, or difficult and costly consent processes. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, may result in losses or increases in financing costs with respect to our indebtedness, expenses, difficulties, complications, or delays in connection with future financing efforts, all of which could have a material adverse impact on our business, financial condition and results of operations.

Also, changes in the fair value of ~~these~~the derivative instruments can result in a non-cash charge or gain being recognized in our financial results for a period preceding the period or periods in which settlement occurs under the derivative instruments and interest payments are made. Changes or shifts in interest rates can significantly impact the valuation of our derivatives and therefore could expose us to substantial mark-to-market losses or gains if interest rates fluctuate materially from the time when the derivatives were entered into. Accordingly, fluctuations in interest rates may impact our financial position, results of operations, and cash flows. See ~~Note~~"Note 2 to our Consolidated Financial ~~Statementes.~~

On July 27, 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, is considering replacing U.S. dollar LIBOR with a newly created index, calculated based on repurchase agreements backed by treasury securities. It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, the United States or elsewhere.Statements".

We may not be able to renew our credit lines when they mature, depriving us of needed liquidity.

Certain of our subsidiaries rely substantially on existing uncommitted credit lines to support their operations and business needs through the agricultural harvest cycle. If we are unable to renew these credit lines, or if we cannot replace such credit lines with other borrowing facilities, our financial condition and results of operations may be adversely affected.

There is a risk that we could be treated as a U.S. domestic corporation for U.S. federal income tax purposes, which could materially increase our U.S. federal income tax liability and subject any dividends we pay to U.S. federal withholding tax.

We acquired approximately 98% of IFH, a holding company, which was a partnership for U.S. federal income tax purposes organized under the laws of Delaware, immediately prior to our IPO, in exchange for our common shares. Under U.S. Internal Revenue Code section 7874(b), we would be treated as a U.S. domestic corporation if we were deemed to have acquired substantially

all of the assets constituting the trade or business of a U.S. domestic partnership and former members of IFH were deemed to own at least 80% of our common shares by reason of the transfer of those trade or business assets (ignoring common shares issued in our IPO for purposes of the 80% threshold). ~~Although we and our subsidiaries conduct no direct business activity in the United States and we believe that our acquisition of IFH should not be subject to the~~The rules mentioned above ~~those rules~~ are unclear in certain respects and there is limited guidance on the application of the rules to partnership acquisitions. Accordingly, we cannot assure you that the U.S. Internal Revenue Service (“IRS”) will not seek to assert that we are a U.S. domestic corporation, which assertion if successful could materially increase our U.S. federal income tax liability and require us to withhold tax from any dividends we pay to holders of our common shares who are not United States persons within the meaning of U.S. Internal Revenue Code section 7701(a) (30). See “Item 10. Additional Information—E. Taxation”.

We may be classified by the IRS as a “passive foreign investment company” (a “PFIC”), which may result in adverse tax consequences for U.S. investors.

~~We believe that we will not be a PFIC for U.S. federal income tax purposes for our current taxable year and do not expect to become one in the foreseeable future.~~ Whether the Company will be a PFIC for the current or future tax year will depend on the Company’s assets and income over the course of each such tax year and, as a result, cannot be predicted with certainty as of the date of this Form 20-F. Under circumstances where the cash is not deployed for active purposes, our risk of becoming a PFIC may increase. If we were treated as a PFIC for any taxable year during which a U.S. investor held common shares, certain adverse tax consequences could apply to such U.S. investor. A U.S. taxpayer who holds stock in a foreign corporation during any year in which such corporation qualifies as a PFIC may mitigate such negative tax consequences by making certain U.S. federal income tax elections, which are subject to numerous restrictions and limitations. Holders of the Company’s common shares are urged to consult their own tax advisors regarding the acquisition, ownership, and disposition of the Company’s common shares. See “Material U.S. Federal Income Tax Considerations for U.S. Holders—Passive Foreign Investment Company (“PFIC”) Rules”.

We are subject to anti-corruption, anti-bribery, anti-money laundering and other international trade laws and regulations.

We are subject to anti-corruption, anti-bribery, anti-money laundering and other international trade laws and regulations. We are required to comply with the laws and regulations of Brazil and other jurisdictions where we conduct operations. In particular, we are subject to the Brazilian Anti-corruption Law No 12,846, to the U.S. Foreign Corrupt Practices Act of 1977, or the “FCPA,” to the United Kingdom Bribery Act of 2010, as well as economic sanction programs, including those administered by the United Nations, the European Union and the United States, including the U.S. Treasury Department’s Office of Foreign Assets Control, or “OFAC.”

The FCPA prohibits providing anything of value to foreign officials for the purposes of obtaining or retaining business or securing any improper business advantage. As part of our business, we may deal with entities and employees which are

considered foreign officials for purposes of the FCPA. In addition, economic sanctions programs restrict our dealings with certain sanctioned countries, individuals and entities. When issues arise, we attempt to act promptly to learn relevant facts, conduct appropriate due diligence, and take any appropriate remedial action to address the risk. There can be no assurance that our internal policies and procedures will be sufficient to prevent or detect all inappropriate practices, fraud or violations of law by our employees, directors, officers, partners, agents and service providers or that such persons will not take actions in violation of our policies and procedures (or otherwise in violation of the relevant anticorruption laws and sanctions regulations) for which we or they may be ultimately held responsible.

Violations of anti-bribery and anticorruption laws and sanctions regulations could have a material adverse effect on our business, reputation, results of operations and financial condition. In addition, we may be subject to one or more enforcement actions, investigations and proceedings by authorities for alleged infringements of these laws. These proceedings may result in penalties, fines, sanctions or other forms of liability and could have a material adverse effect on our reputation, business, financial condition and results of operations.

Risks associated with the Countries in which we operate

We operate our business in emerging markets. Our results of operations and financial condition are dependent upon economic conditions in those countries in which we operate, and any decline in economic conditions could harm our results of operations or financial condition.

All of our operations and/or development activities are in South America. As of December 31, ~~2018,~~2020, based on total asset value, ~~46.9%~~44.8% of our assets were located in Argentina, ~~44.9%~~47.3% in Brazil and ~~2.4%~~4.0% in Uruguay. During the year ended December 31, ~~2018, 61.3%~~2020, 50.1% of our consolidated sales of goods and services rendered were attributable to our Brazilian operations, ~~25.6%~~47.3% were attributable to our Argentine operations and ~~13.1%~~2.6% were attributable to our Uruguayan operations. In the future we expect to have additional operations in the South American countries in which we now operate or in other countries with similar political, economic and social conditions. Many of these countries have a history of economic instability or crises (such as inflation or recession), government deadlock, political instability, civil strife, changes in laws and regulations, expropriation or nationalization of property, and exchange controls which could adversely affect our business, financial condition and results of operations.

In particular, fluctuations in the economies of Argentina and Brazil and actions adopted by the governments of those countries have had and may continue to have a significant impact on companies operating in those countries, including us. Specifically, we have been affected and may continue to be affected by high levels of inflation, increased interest rates, fluctuations in the value of the Argentine Peso and Brazilian Real against foreign currencies, wage controls, price and foreign exchange controls, regulatory policies, business and tax regulations, political and social tension, and in general by the political, social and economic scenarios in Argentina and Brazil and in other countries that may affect Argentina and Brazil.

The economies of the countries in which we operate may be adversely affected by the deterioration of other global markets.

Financial and securities markets in the countries in which we operate are influenced, to different degrees, by the economic and market conditions in other countries, including other South American and emerging market countries and other global markets. ~~Although economic conditions in these countries may differ significantly from economic conditions in the countries in which we operate, investors’~~Investors’ reactions to developments in these other countries, such as the recent developments in the global financial markets, may substantially affect the capital flows into, and the market value of securities of issuers with operations in, the countries in which we operate. A crisis in other emerging market countries could dampen investor enthusiasm for securities of issuers with South American operations, including our common shares. This could adversely affect the market price for our common shares, as well as make it difficult for us to access capital markets and obtain financing for our operations in the future, on acceptable terms or under any conditions.

A significant deterioration in the economic growth of any of the main trading partners of Brazil or Argentina could have a material impact on the trade balance of those countries and could adversely affect their economic growth and that of other countries in the region. Furthermore, adverse economic conditions in any of these countries could have a material adverse effect on our business, financial condition and results of operations.

A crisis in global financial markets including other emerging country markets could dampen investor enthusiasm for securities of issuers with South American operations, including our common shares. The COVID-19 pandemic has negatively impacted global financial markets ushering significant risk and volatility. These effects could adversely affect the market price for our common shares, as well as make it difficult for us to access capital markets and obtain financing for our operations in the future, on acceptable terms or under any conditions.

Governments have a high degree of influence in the economies in which we operate, which could adversely affect our results of operations or financial condition.

Governments in many of the markets in which we currently operate, or that we may operate in the future, ~~operate~~ frequently intervene in their respective economies and occasionally make significant changes in monetary, credit, industry and other policies and regulations. ~~Government~~Governmental actions to control inflation and other policies and regulations have often involved, among other measures, price controls, currency devaluations, capital controls and ~~limits~~limitations on imports. We have no control over, and cannot predict what measures or policies governments may take in the future. ~~The~~Our results of operations and financial condition ~~of our businesses~~ may be adversely affected by changes in governmental policy or regulations in the jurisdictions in which ~~they~~we operate that impact different factors such as:

•labor ~~laws;~~laws and wage increases;

•economic growth;

•abrupt currency fluctuations;

•high levels of inflation;

•exchange and capital control policies;

•high interest rates;

•liquidity of domestic capital and lending markets;

•inconsistent fiscal and monetary policy;

•liquidity and solvency of the financial system;

•limitations on ownership of rural land by foreigners;

•developments in trade negotiations through the World Trade Organization or other international organizations;

•environmental regulations;

•tax laws, including royalties and the effect of tax laws on distributions from our subsidiaries;

•changes in governmental economic or tax policies;

•restrictions on repatriation of investments and on the transfer of funds abroad;

~~expropriation~~•expropriations or ~~nationalization;~~nationalizations;

•import/export restrictions or other laws and policies affecting foreign trade and investment;

•increase in public expenses affecting the economy and fiscal deficits;

•price controls or price fixing regulations;

•restrictions on land acquisition or use or agricultural commodity production; and

•other political, social and economic developments, including political, social or economic instability, in or affecting the country where each business is based.

Uncertainty over whether governments will implement changes in policy or regulation affecting these or other factors in the future may contribute to economic uncertainty and heightened volatility in the securities markets, which may have a material and adverse effect on our business, results of operations and financial condition.

Currency exchange rate fluctuations relative to the U.S. dollar in the countries in which we operate our businesses may adversely impact our results of operations and financial condition.

We operate exclusively outside the United States, and our businesses may be impacted by significant fluctuations in foreign currency exchange rates. Our exposure to currency exchange rate fluctuations results from the currency translation adjustments required in connection with the preparation of our Consolidated Financial Statements. The currency exchange exposure stems from the generation of revenues and incurrence of expenses in different currencies and the devaluation of local currency revenues impairing the value of investments in U.S. Dollars. While the Consolidated Financial Statements presented herein are, and our future Consolidated Financial Statements will be, presented in U.S. dollars, the financial statements of our subsidiaries are prepared using the local currency as the functional currency and translated into U.S. dollars by applying: (i) a year-end exchange rate for assets and liabilities; and (ii) an average exchange rate for the year for income and expenses. Resulting exchange differences arising from the translation to our presentation currency are recognized as a separate component of equity. Currencies in Argentina and Brazil have fluctuated significantly against the U.S. dollar in the past. Accordingly, fluctuations in exchange rates relative to the U.S. dollar could impair the comparability of our results from period to period and have a material adverse effect on our results of operations and financial condition.

The Argentine Peso depreciated ~~31.1%~~21.86% against the U.S. dollar in ~~2014, 52.5% in 2015, 21.9% in~~ 2016, ~~17.4%~~17.36% in 2017, ~~and 102.1%~~102.16% in 2018, 58.86% in 2019 and 40.51% in 2020, based on the official exchange rates published by the Argentine Central ~~Bank.~~Bank (Banco Central de la República Argentina - BCRA). In the past years, the Argentine government imposed restrictions on the purchase of foreign currency (see “—Risks Related to Argentina—Exchange controls could restrict the inflow and outflow of funds in ~~Argentina.~~Argentina and may substantially limit the ability of companies to retain or obtain foreign currency or make payments abroad.”) which measures gave rise to an unofficial market where the U.S. dollar traded at a different market value than reflected in the official Argentine Peso – U.S. Dollar exchange rate. ~~Following national elections~~Due to the foreign exchange crisis generated in ~~Argentina in 2015,~~August 2019 and the newly elected Macri administration (the “Macri Administration”) changed the currency policy and lifted almost all of the restrictions on the purchase of foreign currency while at the same time officially depreciating the Argentine Peso, practically eliminating the gap between the official and unofficial exchange rates that coexisted during the previous years. We cannot predict future fluctuations in the exchange ratecontinued reduction of the Argentine ~~Peso or whether~~Central Bank’s foreign currency reserves, since September 1, 2019 the Argentine government ~~will change its~~reinstated rigid exchange controls and transfer restrictions, substantially limiting the ability to obtain foreign currency ~~policy.~~or make certain payments or distributions out of Argentina (see “— Risks Related to Argentina — Exchange controls restrict the inflow and outflow of funds in Argentina and may substantially limit the ability of companies to retain or obtain foreign currency or make payments abroad”).

The Brazilian currency has historically suffered frequent fluctuations. As a consequence of inflationary pressures, in the past, the Brazilian government has implemented various economic plans and adopted a number of exchange rate policies, including sudden devaluations, periodic mini-devaluations during which the frequency of adjustments has ranged from daily to monthly, floating exchange rate systems, exchange controls and dual exchange rate markets. Formally the value of the Real against foreign currencies is determined under a free-floating exchange rate regime, but in fact the Brazilian government is currently intervening in the market, through currency swaps and trading in the spot market, among other measures, every time the currency exchange rate is above or below the levels that the Brazilian government considers appropriate, taking into account, inflation, growth, the performance of the Real against the U.S dollar in comparison with other currencies and other economic factors. Periodically, there are significant fluctuations in the value of the Real against the U.S. dollar. The Real depreciated ~~14.0%~~46.2% against the U.S. dollar in ~~2014, 46.2% in~~ 2015 and appreciated 16.8% in ~~2016, in~~2016. In 2017, 2018 and 2019, the Real ~~appreciated 1.5%~~depreciated against the U.S. dollar 1.5%, 17.1% and ~~17.1% in 2018.~~4.02%, respectively. In 2020 the Real depreciated 28.9% against the U.S. dollar.

Future fluctuations in the value of the local currencies relative to the U.S. dollar in the countries in which we operate may ~~occur, and if such fluctuations were to occur in one or a combination of the countries in which we operate,~~adversely affect our results of operations or financial condition could be adversely affected.

Inflation in some of the countries in which we operate, along with governmental measures to curb inflation, may have a significant negative effect on the economies of those countries and, as a result, on our financial condition and results of operations.

In the past, ~~high levels of inflation have adversely affected the economies and financial markets of~~ some of the countries in which we operate, particularly Argentina and Brazil, have experienced, or are currently experiencing, high rates of inflation, adversely affecting their economies and financial markets, and limiting the ability of their governments to create conditions that stimulate or maintain economic growth. ~~Moreover, governmental measures to curb~~Although inflation ~~and speculation about possible future governmental measures have contributed to the negative economic impact of inflation and have created general economic uncertainty. As part~~rates in some of these countries (other than Argentina, as further explained in “-Risks Related to Argentina-Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina”) have been relatively low in the recent past, we cannot assure you that this trend will continue. The measures taken by the governments of these countries to control inflation have ~~at times maintained~~often included maintaining a ~~restrictive~~tight monetary policy ~~and~~with high interest rates, ~~that has limited~~thereby restricting the availability of credit and retarding economic growth. Measures to combat inflation and public speculation about possible additional actions have also contributed significantly to economic uncertainty in many of these countries and to heightened volatility in their securities markets. Periods of higher inflation may also slow the growth rate of local economies. Inflation is also likely to increase some

of our costs and expenses, which we may not be able to fully pass on to our clients, which could adversely affect our operating margins and operating income.

A portion of our operating costs in Argentina are denominated in Argentine Pesos and most of our operating costs in Brazil are denominated in Brazilian Reais. Inflation in Argentina or Brazil, without a corresponding Peso or Real devaluation, could result in an increase in our operating costs without a commensurate increase in our revenues, which could adversely affect our financial condition and our ability to pay our foreign currency denominated obligations.

~~After several years of price stability in Argentina,~~On January 7, 2016, the ~~devaluation of the Peso in January 2002 imposed pressures on the domestic price system that generated high inflation throughout 2002. In 2003, inflation decreased significantly~~Argentine Statistics and ~~stabilized. However, in recent years, encouraged by the pace of economic growth, according to the~~ Census Agency (Instituto Nacional de ~~Estadisticas~~Estadísticas y Censos or- “INDEC” ~~(Argentine Statistics~~) ceased publishing certain statistical data and, Census Agency), the consumer price index increased by 9.5% in 2011, 10.8% in 2012, and 10.9% in 2013; while the wholesale price index increased 10.3% in 2009, 14.6% in 2010, 12.7% in 2011, 13.1% in 2012, 14.7% in 2013 and 28.3% in 2014. The accuracyafter implementing methodological reforms, resumed publications of the ~~measurements~~Consumer Price Index (“CPI”) on June 16, 2016, which reached annual rates of 40.9% at the end of the ~~INDEC has been questioned in~~fiscal year 2016, 24,8% at the ~~past,~~end of the fiscal year 2017, 47.6% at the end of fiscal year 2018, 53.8% at the end of fiscal year 2019 and 36.1% at the ~~actual consumer price index and wholesale price index could be substantially higher than those indicated by the INDEC. See “—~~end of fiscal year 2020 (see “— Risks Related to ~~Argentina—The~~Argentina-The credibility of several Argentine economic indices have been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn limit our ability to access the credit and capital ~~markets.”~~

~~In February 2014 the INDEC modified the methodology for the calculation~~markets” and “—Risks Related to Argentina— Our results of ~~the consumer price index (“CPI”)~~operations may be adversely affected by high and ~~the gross domestic product. Under the new calculation methodology, the CPI increased by 23.9%~~possibly increasing inflation in ~~2014 and 11.9% as of October 2015 (for the first nine months of 2015)~~Argentina”). However, opposition lawmakers reported an inflation rate of 38.5% and 27.5%, respectively. In December 2015, the Macri administration appointed a former director of a private consulting firm to manage the INDEC. The new director initially suspended the publication of any official data prepared by INDEC and implemented certain methodological reforms and adjusted certain indices based on those reforms. In January 25, 2016, INDEC published two alternative measures of the CPI for year 2015, 29.6% and 31.6%, which were based on data from the City of Buenos Aires and the Province of San Luis. After implementing these methodological reforms in June 2016, the INDEC resumed its publication of the CPI. According to INDEC, the CPI increase in 2017 was 24.8% and in 3028. In 2019, the monthly CPI increase was 2.9% in January, 3.8% in February and 4.7% in March.

Brazil has historically experienced high rates of inflation. Inflation, as well as government efforts to curb inflation, has had significant negative effects on the Brazilian economy, particularly prior to 1995. ~~Inflation rates were 7.8% in 2007 and 9.8% in 2008, compared to deflation of 1.7% in 2009,~~The inflation ~~of 11.3% in 2010, inflation of 5.1% in 2011, inflation of 7.8% in 2012, inflation of 5.5% in 2013, inflation of 3.7% in 2014, inflation of 10.5% in 2015, and~~rate was 7.2% in 2016, as measured by the General Market Price Index (Indice Geral de Preços —- Mercado), compiled by the ~~Getúlio~~Getulio Vargas Foundation (Fundação Getúlio Vargas). However, in 2017 Brazil registered a deflation of 0.53% due to a decrease in the price of food products. In 2018 Brazil registered an inflation of 7.5%, 7.3% in 2019 due to the depreciation of the Brazilian Real against the U.S. dollar and the increase of the prices of primary products and 23.14% in 2020 due to COVID-19, the depreciation of the Brazilian Real against the U.S. dollar and the increase of the prices of primary products. A significant proportion of our cash costs and our operating expenses are denominated in Brazilian Reais and tend to increase with Brazilian inflation.

The Brazilian government’s measures to control inflation have in the past included maintaining a tight monetary policy with high interest rates, thereby restricting the availability of credit and reducing economic growth. This policy has changed in the last two years, when the Brazilian government decreased the interest rate by 775 basis points. Subsequently, the high inflation, arising from the lower interest rate, and the intention to maintain this rate at low levels, led the Brazilian government to adopt other measures to control inflation, such as tax relief for several sectors of the economy and tax cuts for the products included in the basic food basket. These measures were not sufficient to control the inflation, which led the Brazilian government to reinstate a tighter monetary policy. As a result, interest rates have fluctuated significantly. The Special System for Settlement and Custody (Sistema Especial de Liquidação e Custódia, or “SELIC”) interest rate in Brazil at year-end was ~~13.25% in 2006, 11.25% in 2007, 13.75% in 2008, 8.75% in 2009, 10.75% in 2010, 11.0% in 2011, 7.25% in 2012, 10.0% in 2013, 11.75% in 2014, 14.25% in 2015,~~ 13.75% in 2016, ~~and~~ 7% in 2017, 6.5% in 2018, 4.5% in 2019 and 2.00% in 2020 as determined by the Comitê de Política Monetária, or COPOM. ~~In the quarter ended on December 31, 2018, the SELIC was 6.5%.~~

Argentina and/or Brazil may experience high levels of inflation in the future, which may impact domestic demand for our products. Inflationary pressures may also weaken investor confidence in Argentina and/or Brazil, curtail our ability to access foreign financial markets and lead to further government intervention in the economy, including interest rate increases, restrictions on tariff adjustments to offset inflation, intervention in foreign exchange markets and actions to adjust or fix currency values, which may trigger or exacerbate increases in inflation, and consequently have an adverse impact on us. In an inflationary environment, the value of uncollected accounts receivable, as well as of unpaid accounts payable, declines rapidly. If the countries in which we operate experience high levels of inflation in the future and price controls are imposed, we may not be able to adjust the rates we charge our customers to fully offset the impact of inflation on our cost structures, which could adversely affect our results of operations or financial condition.

Depreciation of the Peso or the Real relative to the U.S. Dollar or the Euro may also create additional inflationary pressures in Argentina or Brazil that may negatively affect us. Depreciation generally curtails access to foreign financial markets and may prompt government intervention, including recessionary governmental policies. Depreciation also reduces the U.S. Dollar or Euro value of dividends and other distributions on our common shares and the U.S. Dollar or Euro equivalent of the market price of our common shares. Any of the foregoing might adversely affect our business, operating results, and cash flow, as well as the market price of our common shares.

Conversely, in the short term, a significant increase in the value of the Peso or the Real against the U.S. Dollar would adversely affect the respective Argentine and/or Brazilian government’s income from exports. This could have a negative effect on gross domestic product (“GDP”) growth and employment and could also reduce the public sector’s revenues in those countries by reducing tax collection in real terms, as a portion of public sector revenues are derived from the collection of export taxes.

Disruption of transportation and logistics services, or insufficient investment in public infrastructure or disruption to any aspect of the supply chain could adversely affect our operating results.

One of the ~~principal~~main disadvantages of the agricultural sector in the countries in which we operate is that key growing regions lie far from major ports. As a result, efficient access to transportation infrastructure and ports is critical to the growth of agriculture as a whole in the countries in which we operate and of our operations in particular. Improvements in transportation infrastructure are likely to be required to make more agricultural production accessible to export terminals at competitive prices. A substantial portion of agricultural production in the countries in which we operate is currently transported by truck, a means of transportation significantly more expensive than the rail transportation available to U.S. and other international producers. Our dependence on truck transportation may affect our position as a low-cost producer so that our ability to compete in the world markets may be impaired.

~~Even though road and rail improvement projects have been considered for some areas of Brazil and Argentina, and in some cases implemented, substantial~~Substantial investments are required for road and rail improvement projects, which may not be completed on a timely basis, if at all. Any delay or failure in developing infrastructure systems could reduce the demand for our products, impede our products’ delivery or impose additional costs on us. We currently outsource the transportation and logistics services necessary to operate our business. Any disruption in these services could result in supply problems at our farms and processing facilities and impair our ability to deliver our products to our customers in a timely manner.

In Brazil, a strike held by truckers in May 2018 resulted ~~into~~in a complete stop of road transportation throughout the country. As a consequence, the Brazilian government, issued Provisional Measure No. 832 and Law No. 13,703/2018, ~~that establishes~~which established a Minimum Price for Road Freight Transport Policy and ~~creates~~created the "Freight Table", in which minimum and mandatory transportation cost values ~~will be defined~~are set each six months by the Agência Nacional de Transportes Terrestres - ANTT (National Land Transport Agency). With the creation of the Freight Table, many companies in the agribusiness sector were adversely affected by the increase in transportation costs. Although Law No. 13,703 is still in force, Minister Luiz Fux of the Federal Supreme Court of Brazil recently suspended all lawsuits that contest the legality of the referred policy, which creates legal uncertainty regarding the application of the Freight Table. As long as there is no definition by the Supreme Court, Adecoagro is facing

We are exposed to the risk of ~~incurring~~disruption to any aspect of the supply chain, to suppliers’ operations or to distribution channels, and the deterioration in ~~higher costs in road transportation, which could significantly~~the financial condition of a trading partner. These may be caused by a cyber-event, global health crisis, major fire, violent weather conditions or other natural disasters that affect ~~the costs~~manufacturing or other facilities of our ~~Brazilian operation.~~operating subsidiaries or those of their suppliers and distributors. In certain geographic areas where we operate, insurance coverage may not be obtainable on commercially reasonable terms, if at all. Coverage may be subject to limitations or we may be unable to recover damages from its insurers.

Disruption may also be caused by spread of infectious disease (such as COVID-19) or by a deterioration in labor or union relations, disputes or work stoppages or other labor-related developments affecting Adecoagro or its suppliers and distributors (See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results”).

Security breaches and other disruptions could compromise our technology infrastructure and information and expose us to processes disruption and liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we depend on technology to carry out our business. We also collect and store sensitive data, including intellectual property, our proprietary business information and that of our customers and suppliers, and personally identifiable information of our employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations. In addition, these systems may require modifications or upgrades as a result of technological changes or growth in our business. Although we take actions to secure our systems and electronic information and have disaster recovery plans in case of incidents that could cause major disruptions to our business, these measures may not be enough. In January 2020, we experienced an invasion by a computer virus that temporarily compromised our network, and a significant number of our servers and personal computers at our corporate offices. Although the cyberattack did not impact our production operations systems or financial and accounting systems, we were required to execute a contingency plan to restore the affected services, and return to a safe and normal network conditions.

Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks, our systems, and eventually suffer from systems disruption and/or having the information stored there accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, fines from governmental authorities, disrupt our operations, damage our reputation, and cause over costs to remedy the harm suffered, which could adversely affect our business/operating margins, revenues and competitive position.

Non-compliance with data protection laws could adversely affect our business.

We operate in a complex regulatory and legal environment that exposes us to compliance and litigation risks that could materially affect our business, financial condition and results of operations. These laws may change, sometimes significantly, as a result of political, economic or social events.

In addition, on August 14, 2018, the Brazilian Federal Law No. 13,709/2018 was enacted, which sets out comprehensive data protection procedures and general principles and obligations that apply across multiple economic sectors and contractual relationships (Lei Geral de Proteção de Dados, or the “LGPD”). The LGPD establishes detailed rules for the collection, use, processing and storage of personal data and will affect all economic sectors, including the relationship between customers and suppliers of goods and services, employees and employers and other relationships in which personal data is collected, whether in a digital or physical environment. The obligations established by LGPD are already in effect, and all legal entities are required to adapt their data processing activities to these new rules. The data protection regime imposes more stringent data protection standards on Brazilian residents.

We are currently evaluating the impact that the LGPD will have on our business practices and associate compliance costs.

Until adaptation in completed, any breaches of the LGPD may subject us to penalties and/or fines and a requirement to notify Governmental Authorities and parties whose data has been affected.

The prolonged home office period may increase our exposure to security breaches which can adversely affect us.

Effective August, 2021, failure to comply with LGPD can give rise to an administrative fine, per infraction, of up to 2% of group or conglomerate revenues in Brazil, up to a total maximum of fifty million reais (R$ 50,000,000.00) per infraction.

Until August 2021, however, even if no administrative sanctions may be imposed, the obligations arising from the LGPD are already enforceable and we may be subject to claims, indemnification and/or fines from data subjects, and/or other governmental authorities in general.

Risks Related to Argentina

The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations

In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. This pandemic, as well as the reality or fear of any other adverse public health developments, could adversely and materially affect, among other things, our manufacturing and supply chain operations, including due to the reduction or closure of our production units and the interruption of the supply of raw materials. The local, national and international response to the pandemic continues to rapidly evolve. Responses have included voluntary and, in some cases, mandatory quarantines as well as shutdowns and other restrictions on travel and commercial, social and other activities.

The Argentine government has taken several measures regarding the COVID-19 pandemic outbreak to date. On March 18, 2020, through Decree No. 287/2020 and Administrative Decision No. 409/2020, the Argentine Executive Branch extended the public health emergency following the increasing spread in Argentina. On March 20, 2020, the Decree No. 297/2020 (“Decree 297”) was published in the Official Gazette by which the Argentine Executive Branch implemented a social, preventive and mandatory isolation regime (“Mandatory Isolation Regime”), beginning on March 20, 2020, which was extended until November 8, 2020. As of the date of this report, the activities pursued by our Argentine subsidiaries, related to agricultural production, distribution and commercialization, were exempted from the Mandatory Isolation Regime. The new regulations did require our Argentine subsidiaries to guarantee the hygiene and safety conditions established by the Ministry of Health to preserve the health of their employees.

On March 31, 2020, the Argentine Executive Branch prohibited: (i) employment terminations without cause; (ii) employment terminations and/or suspensions for lack of workload; (iii) employment terminations and/or suspensions due to reduced workload; and/or (iv) employment terminations and/or suspensions for force majeure events. Suspensions pursuant to Section 223 bis of the Employment Contract Law, regarding suspensions due to lack of work and/or force majeure, were exempted from this prohibition. In addition, Decree No. 39/2021 further extended the prohibition on terminations without cause, terminations based on the lack or reduction of work, and suspensions for force majeure events until May 31, 2021. It is likely that these restrictions are further extended if the scenario remains the same or substantially similar to the current one.

Since November 9, 2020, pursuant to Decree No. 875/2020 the Mandatory Isolation Regime was replaced with a mandatory distance regime (“Mandatory Distance Regime”) in many Argentine provinces and areas. During the Mandatory Distance Regime, individuals must maintain a minimum social distance of two meters, use face masks in shared spaces, sanitize their hands, and strictly comply with the protocols for activities, recommendations, and instructions implemented by the provincial and federal health authorities. In case of detecting situations of risk of spread of the COVID-19, the provincial governors are empowered to reinstate the Mandatory Isolation Regime for individuals entering the Province or the City of Buenos Aires from other jurisdictions, with prior intervention of the provincial health authority and for a maximum period of fourteen days. The Mandatory Distance Regime implemented in April 9, 2021 new restrictions to means of transport, circulation of individuals, remote work, and a curfew limiting circulation in high sanitary-epidemiological risk. This Mandatory Distance Regime has been extended until April 30, 2021. The extension of the Mandatory Isolation Regime in several Argentine provinces as well as other actions taken by the government have resulted in hurdles for the commercialization, distribution and administrative aspects of our Argentine subsidiaries’ businesses.

Under the new regulations, the economic, industrial, commercial, and service activities by business entities, including Adecoagro, may be carried out, provided businesses have an operating protocol approved by the provincial health authority that includes all the recommendations and instructions of the federal health authority and restrict the use of closed surfaces allowing a maximum of 50% of their capacity (subject to certain exceptions). For more information on how the Company complies with these protocols see “Information of the Company—Business Overview—COVID-19—Government measures in Argentina and Brazil".

The measures to control the COVID-19 pandemic have negatively impacted global economy, disrupted financial markets and international trade, resulted in increased unemployment levels and significantly impacted global supply chains, all of which has had and may continue to have an adverse impact in Argentina’s economy and may negatively impact our industry and our business.

Maximum Prices and Supply Obligations

In connection with the declaration of the COVID-19 sanitary emergency, in order to guarantee the regular supply of essential products, on March 20, 2020, the Argentine Government issued general regulations (applicable to most producers) particularly, Resolution No. 100/2020 of the Secretary of Domestic Commerce, imposing the obligation to those who participate in the production, distribution and commercialization chain of certain products, to (i) sell products to their maximum prices set as of March 6, 2020; and (ii) increase production up to their facilities’ full capacity and provide the proper measures to guarantee their transport and supply. Originally, these obligations were supposed to be effective for a 30-day term. However, the Argentine Government successively extended these obligations, in principle, until May 15, 2021. It is likely that these obligations would be extended again. Since this regime has been in place, only certain and limited price increases had been authorized. Considering the inflationary context in the Argentine economy, since many of the product prices were capped to their prices as of March 20, 2020, with some few limited authorized increments, these measures have negatively impacted our Argentine subsidiaries’ businesses.

Additionally, the Argentine Government created (i) an informative regime for the purpose of publishing standard maximum prices of a basic listing of consumer products for each province (which will be available on the website www.preciosmaximos.produccion.gob.ar); and (ii) a public and free mechanism that allows the filing of claims and complaints by consumers and those included in the production, distribution and commercialization chain of the products included in the obligation to sell at maximum prices. This regulation impacted our processed rice and fluid milk products. The facilities of the Company have been inspected to control compliance of the abovementioned regulation. As long as this regulation is in place, the Company would face restrictions to freely implement price increases on the processed rice and fluid milk products.

Those measures (jointly with other announcements that up to the present have not being turned into regulations) suggest that the Argentine Government would be planning to enforce the Supply Act broadly to avoid potential shortage on the supply or increase in the prices of products deemed essential. Since, the Secretary of Domestic Commerce has notified several companies within the Argentine subsidiaries’ industries, urging them to work at full capacity. Some of them have even been formally accused of not complying with the Supply Act. Recently, by means of Resolution No. 330/2021, the Secretary of Domestic Commerce has officially urged all industrial and commercial “big business” to manufacture, distribute and market their goods and services to the maximum of their installed capacity, while the health emergency persists in Argentina.

On April 4, 2020 the Argentine Government issued Decree No. 351/2020, which authorized the intervention of local authorities (both at Provincial and Municipal level) to control maximum prices under the recently adopted regulations and adopted rules to coordinate the enforcement of regulations. This has resulted in the need to allocate additional economic and

human resources for the Argentine subsidiaries to comply with governmental requirements and filings pursuant to the regulations in place.

In accordance with Resolution No. 552/2020 (as amended), published on November 12, 2020, the Secretary of Domestic Commerce suspended the effects of Resolution No. 100/2020 for a list of products included in Annex I (among others, brown rice, prepared rice, condensed milks, soy milks, vegetable milks; and brie, camembert, blue and provolone cheeses) that due to their characteristics and purpose are not relevant for the satisfaction of the basic needs of consumers and users, until May 15, 2021.

The Supermarkets’ Shelves Law published on March 17, 2020 (as implemented by Decree No. 991/2020 published in the Official Gazette on December 15, 2020), is applicable to the products marketed by the Company. The main objectives of this law are: (i) to ensure that the price of certain products remains clear and competitive for the benefit of consumers, (ii) to maintain harmony and balance between economic operators, (iii) to expand the supply of artisanal, regional and national products produced by micro, small and medium-sized enterprises, and (iv) to promote the offer of products manufactured by small producers. Although the law is focused on supermarkets, it might have an impact on the Company’s commercialization strategies. The Supermarkets’ Shelves Law resulted in the Argentine government imposing increasing regulations affecting the Argentine subsidiaries’ businesses, often generating further marketing and distribution costs for the purposes of complying with these regulations.

On March 17, 2021, the Secretary of Domestic Commerce published in the Official Gazette Resolution No. 237/2021 which created a new information regime (Sistema Informativo para la Implementación de Políticas de Reactivación Económica) (“SIPRE”; after its acronym in Spanish), according to which the Company might have to submit extensive monthly reports on prices, production and sales. This regime has also increased compliance costs and forced the Argentine subsidiaries to allocate resources to comply with these information regimes.

Pursuant to Resolution No. 283/2021, published in the Official Gazette on March 31, 2021, the Secretary of Domestic Commerce created the Product Labeling Inspection and Compliance Monitoring System to ensure that certain product labels do not contain inaccurate information that deceives consumers (Sistema de Fiscalización de Rótulos y Etiquetas) (“SiFiRE”; after its acronym in Spanish). As provided in this regulation, this information regime is aimed at the defense of fair trade and the protection of consumer rights. The SiFiRE established a new set of rules applicable to the following product labels: (i) foods; (ii) beverages; (iii) drinkable foods; (iv) toiletries; (v) personal hygiene products and; (vi) personal care and household cleaning products suitable for human use and handling. Any misleading labels must be amended. If infringing products have already been launched to the market, suppliers and importers must place a correction sticker on them at their own expense. The sanctions provided in Consumer Protection Law No. 24,240 and Executive Order No. 274/2019 on Fair Trade may apply to corporations, including us.

Through Resolution No. 330/2021, published in the Official Gazette on April 9, 2021, the Secretary of Domestic Commerce ordered all companies from the commerce and industry sectors, that during 2019 have recorded total sales in the domestic market in excess of the amounts established by Resolution No. 220/2019 (i.e., companies which are not considered small or medium, pursuant to the parameters included therein), to increase their production up to the maximum of their installed capacity and to arbitrate appropriate measures to guarantee the transportation, distribution and supply of inputs and final goods produced throughout the Argentine Republic, until the sanitary emergency declared by the Social Solidarity and Productive Reactivation Law No. 27,541 remains in force (in principle, until December 21, 2021). This Resolution included a similar provision to the one already provided under Resolution No. 100/2020 referred to above.

Since Resolution No. 330/2021 does not include any specific requirements, it is difficult to determine at this time both its scope and how compliance with this regulation is going to be monitored by the Argentine Government. However, the Argentine subsidiaries expect to incur further compliance costs due to these regulations.

Any application of these measures could potentially affect costs, expenses and/or margins.

Remote Work

COVID-19 pandemic pressured most companies which were not excluded from the Argentine Isolation Regime to implement measures to guarantee remote work for their employees. Consequently, several liabilities such as cybersecurity, privacy policies, adequate computing devices and professional use of personal computing devices have to be implemented by such companies.

Although as of the date of this report the activities carried out by our Argentines subsidiaries have been excluded from the Argentine Isolation Regime, because it provides as “essential” activities and services related to production, distribution and agricultural commercialization, we cannot assure that this exception will continue to apply to our operations.

The foregoing measures taken by the Argentine government in response to the COVID-19 virus and any future actions that may implemented are material intrusions and limits on the ability of the Company to operate its businesses and which will adversely impact the price of our products and our operating results.

On August 14th, 2020, the Legal Regime of Teleworking Contract under Law No. 27,555 (the “Teleworking Law”) was published in the Official Gazette. This Law regulates dependent work provided from the employee's own home or from a place other than the employer's establishment and introduces modifications to the Labor Contract Law establishing the concept of teleworking. In addition, the Teleworking Law provides the minimum legal requirements for regulating teleworking, it delegates specific aspects to collective bargaining, recognizes rights and duties for those who work under this modality (e.g., right of reversibility, right to digital disconnection, trade union rights, right to privacy) and also provides regulations referring to working hours, provision of work tools and reimbursement of expenses.

On January 20, Executive Decree No. 27/2021 approving the regulation of the Teleworking Law was published in the Official Gazette, including provisions regulating certain aspects of the Teleworking Law: the right to digital disconnection; conditions under which caretaking tasks may be performed by teleworking individuals; limits and conditions for reversal; how work tools are to be provided and expenses reimbursed; union representation of teleworking individuals; health and safety conditions; employer oversight systems; and the right to privacy of teleworking individuals.

On February 5, Resolution 54/2021 of the Ministry of Labor, Employment and Social Security was published ordering that Teleworking Law will enter into force on April 1, 2021. As long as the restrictions to circulate due to the COVID-19 pandemic, the application of this law is in suspense.

Argentine economic and political conditions and perceptions of these conditions in the international market may have a direct impact on our business and our access to international capital and debt markets, and could adversely affect our results of operations and financial condition.

A significant portion of our operations, ~~properties~~property and customers are located in Argentina. Consequently, the value of our assets and properties and the results of our operations depend on the macroeconomics, regulatory, social and political conditions of Argentina and on the exchange rates between the Argentine peso and foreign currency. These conditions include growth rates, inflation rates, exchange rates, taxes, foreign exchange controls, changes in the interest rates, changes of the state policies, social instability and other domestic and international political and economic events affecting Argentina.

The Argentine economy has experienced ~~significant~~extreme volatility in the recent decades, ~~characterized by~~with uneven periods of ~~low or negative~~economic growth, periods of high ~~and variable levels of~~ inflation and ~~currency devaluation. Between 2001 and 2003 Argentina experienced a period~~devaluation of ~~severe political, economic and social crisis. In 2002,~~ the ~~enactment of Law No. 25,561 (the “Public Emergency Law”) ended more than a decade of uninterrupted Peso/dollar parity, and the value of the~~Argentine Peso against the U.S. ~~dollar has fluctuated significantly since then.~~

~~The global~~dollar. Our business and operations may be affected by the economic ~~crisis of 2008 led to a period of economic decline, accompanied by~~and political and social unrest, inflationary and Peso depreciation pressures and lack of consumer and investor confidence. The lingering economic crises in Europe, including the financial crisis in Greece, Spain, Italy and Portugal, the international demand for Argentine products, the stability and competitiveness of the Peso against foreign currencies, confidence among consumers and foreign and domestic investors, the stability and level of inflation and the future political uncertainties, among other factors,events that may ~~also~~ affect the ~~development of the~~ Argentine ~~economy.~~

Since 2011, the economic conditions have continued to deteriorate, due to, among other things, the rise of inflation, the continued demand for salary increases, the growth of the fiscal deficit, the required payments to be made on public debt, the reduction of industrial growth, the recession and the increase of the capital outflows from Argentina. The foregoing prevailing economic conditions forced the Argentine government to adopt different measures, including the tightening ofeconomy, such as: price controls, foreign exchange controls, ~~the elimination of subsidies to the private sector and the proposals for new taxes. See “—Risks Related to Argentina—Changes~~currency devaluations, high interest rates, increase in ~~the Argentine~~public expenses, tax ~~laws may adversely affect the results of our operations, financial condition and cash flows”.~~increase or other regulatory initiatives.

Since the beginning of 2015, international commodity prices for Argentina’s primary commodity exports have declined, which has had an adverse effect on Argentina’s economic growth. A continued decline in the international prices for Argentina’s main commodity exports could have a direct negative effect on our business, results of operation and financial condition, as well as on Argentina’s economy.

~~According to the INDEC, Argentina’s GDP, in real terms, grew by 9.2% in 2010, 8.9% in 2011, 1.9% in 2012, 5.6% in 2013 and 0.5% in 2014.~~ The ~~GDP for the first two quarters of 2015 grew by 1.1% and 2.3%, respectively, compared to the same periods in 2014. See “-Risks related to Argentina-The~~ credibility of several Argentine economic indices ~~have~~during the Fernández de Kirchner administration (years 2004 through 2015) has been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn limit our ability to access the credit and capital markets” and “-Risks Associated with the Countries in which We Operate-Inflation in some of the countries in which we operate, along with governmental measures to combat inflation, may have a significant negative effect on the economies of those countries and, as a result, on our financial condition and results of operations”. Because of the implementation of certain methodological reforms by the Macri administration and the adjustment of certain indices based on these reforms, the INDEC also revised the GDP data from 2004 through 2015. Among other adjustments, in calculating GDP for 2004, the INDEC made changes to the composition of GDP that resulted in a negative adjustment of approximately 12% for that year.question. By previously understating inflation, the INDEC had overstated economic growth in real terms. The adjustments made by the Macri administration to INDEC lead to a determination of real GDP growth of 48.6% for the period of 2004 to 2015, as opposed to 65% growth in real terms for the same period resulting from the information used prior to June 2016. Because of these reforms, on November 9, 2016, the Executive Board of the ~~IMF~~International Monetary Fund (the “IMF”) lifted its censure on Argentina, noting that Argentina had resumed the publication of data in a manner consistent with its obligations under the Articles of Agreement of the IMF. On June 29, 2017, INDEC also published revised GDP data for the years 2004 through 2015. According to the INDEC, Argentina’s GDP grew by 2.9% in 2017, compared to the same period in 2016. Additionally, according to the INDEC, Argentina’s GDP decreased ~~1.4% from January~~by 2.5% in 2018, and 2.2% in 2019. In addition, in 2020 the general macroeconomic conditions worsened as a result of the COVID-19 pandemic. According to ~~September 2018,~~INDEC, during the second quarter of 2020, GDP declined by 19.1% year over year (which represented the most significant decline of the GDP in Argentine history) with a peak of 16.2% in the second quarter compared to the ~~same period~~first quarter of 2020, and during the third quarter of 2020, economic activity declined by 10.2% year over year.

Argentina’s main commodity exports could have a direct negative effect on our business, results of operation and financial condition, as well as on Argentina’s economy.

On August 11, 2019, presidential and legis+lative primary elections were held in Argentina, in which Alberto Fernandez and former president Cristina Fernández de Kirchner from the “Frente de Todos” (a coalition formed to participate in the general elections) received 47.65% of the votes while president Mauricio Macri's party obtained 32.08%. On October 27, 2019, Alberto Fernández and Cristina Kirchner, as vice-president, won the presidential elections and took office on December 10, 2019.

After the primary elections, the markets reacted negatively, and the economic conditions continued to deteriorate. Due to, among other things, the rise of inflation, the continued demand for salary increases, the growth of the fiscal deficit, the required payments to be made on public debt, the reduction of industrial growth, the recession and the increase of the capital outflows from Argentina, the Government of former President Macri re-introduced rigid restrictions and foreign exchange controls in September 1, 2019, which among other things, significantly curtailed access to the ~~GDP~~official foreign exchange market (the “FX Market”or Mercado Libre de Cambios) by individuals and entities (see “Additional Information-Exchange Controls”).

During the end of ~~the fourth quarter of 2018 has not been published by the INDEC yet.~~

~~In the recent past,~~2019 and early 2020, social and political tension and high levels of poverty and unemployment ~~have~~ persisted ~~and in recent months~~ industrial activity and consumption ~~has~~ diminished considerably. The deterioration of the economy significantly increased the social and political turmoil, including civil unrest, riots, looting, nationwide protests, strikes and street demonstrations. Due to the high levels of inflation and devaluation, employers both in the public and private sectors are experiencing significant pressure from organized labor unions and their employees to further increase ~~salaries. See “—Risks related to Argentina—~~salaries (see “— The Argentine government may order salary increases to be paid to employees in the private sector, which would increase our operating costs”).

~~In addition, during~~On December 23, 2019, the ~~recent past~~Social Solidarity and Productive Reactivation Law No. 27,541 was published in the Official Gazette, which declared the public emergency in economic, financial, fiscal, administrative, social security, tariff, energy, health and social matters. As a result of this measure, the Argentine president and the National Congress have gained considerable powers to alter governmental policies and measures related to the Argentine economy (See “— The impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”).

Since December 2019, upon the outbreak of the COVID-19, the global economy has been negatively impacted, causing the disruption of the financial markets and international trade, resulting in increasing unemployment levels and significantly impacting global supply chains, all of which has had and continues to have an adverse impact in Argentina’s economy and may negatively materially impact our industry and our business (See “ – The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations). The decline in the GDP in Argentina, the deepening recession and the increase of the unemployment also led to an increase in poverty, which, according to INDEC, as of June 30, 2020 affected more than 40.9% of the population.

Regarding the foreign exchange market and restrictions, in an effort to contain the escalation of the currency exchange rate, the Argentine Central ~~Bank’s~~Bank has been selling its reserves ~~have suffered~~of U.S. dollars, which has resulted in a ~~substantial~~ decrease ~~mainly as a consequence of the increasing need to import energy and payments of sovereign debt. The reduction of~~in the Argentine Central ~~Bank’s~~Bank's international reserves ~~may weaken Argentina’s ability~~from US$65.7 billion as of December 31, 2018 to ~~overcome economic deterioration. This could inhibit~~US$39.4 billion as of December 31, 2020. However, the ~~ability~~actual net liquid international reserves of the Argentine Central Bank would be substantially lower, as informed by private sources. Moreover, the Argentine government has been financing all economic assistance related to ~~adopt~~the COVID-19 pandemic with a significant issuance of currency, which has also contributed to increase inflation, the demand for U.S. dollars and the devaluation of the peso.

The Argentine government also adopted measures regarding sovereign debt, including a “re-profiling” or restructuring of certain public debt bonds subject to Argentine law and also conducted a debt restructuring process of sovereign bonds subject to foreign law which was closed during August 2020 (See " —The economy of Argentina may be affected by its government’s limited access to financing from international markets and the result of failure to pay its debt obligations and the current debt restructuring process").

The failure of the Argentine Government to restructure its current debt with the IMF and to address the Argentine macroeconomic problems is worsening the economic conditions. In this regard, the country risk index published by J.P. Morgan as of March 4, 2021 reached a peak of 1547 basis points since the successful restructuring of the Argentine international sovereign bonds in August 2020. If the Argentine government does not restructure its outstanding debt with the IMF and other international financial institutions and continues failing to urgently address the necessary measures to ~~curb~~improve the macroeconomic condition of the country, the current economic conditions, including inflation, unemployment, decline in GDP, Peso depreciation, and/or other economic factors over which we do not have control may continue to worsen, eventually

provoking a general economic collapse, which could have an adverse effect on our financial condition, results and ~~could~~costs of operations.

We cannot now fully estimate the impact that the measures currently adopted by the government, or those that it may implement in the future, will have on the Argentine economy as a whole and on the business, equity and results of our operations.

Continuing inflation, increase of unemployment, decline in GDP, peso depreciation, and/or other future economic, social and political developments in Argentina, over which we have no control, may adversely affect ~~Argentina’s~~our financial condition or results of operations.

The impact of the Argentine congressional and presidential elections on the future economic ~~growth~~and political environment of Argentina remains uncertain.

Since taking office in December 10, 2019, the Alberto Fernández administration (the “Fernández Administration”) announced and implemented the following measures:

• Law of Social Solidarity and Productive Reactivation: On December 23, 2019, Law No. 27,541 Social Solidarity and Productive Reactivation was published in the Official Gazette (the “Solidarity Law”). The Solidarity Law declared a public emergency in economic, financial, fiscal, administrative, social security, tariff, energy, health and social matters and granted the Executive Branch with broad powers in many aspects related to the public emergency. The Solidarity Law and related regulations adopted on on December 27, 2019 by Decree No. 99/2019, introduced important foreign exchange restrictions and tax modifications, among other provisions related to sovereign debt, energy and social security. Decree No. 99/2019 provided measures regarding employer contributions, applicable rates for foreign goods and provided that, digital services will be taxed at a 8%, and the acquisition services abroad and passenger transport services destined outside the country at 30%. The Solidarity Law delegated in the Executive powers from Congress to determine the export duty rates of exports of all goods and determines different caps for different products. Most agricultural goods have a cap of 15% export duties rate or less (currently, most of them are set between 5%-12%) except for soybean products which are mostly set at a 33% export duty rate.

• Price Control Program: On January 7, 2020, the government relaunched the so-called Programa Precios Cuidados, a voluntary price control program, whose goal is to foster consumption and establish reference prices for households products with the highest consumption. Initially, 310 products were included within Programa Precios Cuidados and public ~~finances.~~

~~A continued deterioration~~officials stated that the prices of the ~~economic, social and/~~products included within the program were to be reduced by 8% on the average. Two of the milk products commercialized by the Company are covered by the Programa Precios Cuidados.

• Maximum prices and supply obligations: See “— The measures taken or ~~political conditions~~to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations — Maximum Prices and Supply Obligations”.

• Law of Sustainability of Public Debt issued under Foreign Law: See " — The economy of Argentina may be affected by its government’s limited access to financing from international markets and the result of failure to pay its debt obligations and the current debt restructuring process”.

• Tax Reform Law: See “— Changes in the Argentine tax laws may adversely affect the ~~development~~results of our operations, financial condition and cash flows”.

• Supermarket Shelves Law: See “— The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations — Supermarket Shelves Law”.

• Coronavirus measures: See “— The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations".

• Teleworking Law. See “— The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations — Remote Work”.

We have no control over the implementation of the reforms to the regulatory framework that governs our operations and cannot guarantee that these reforms will be implemented or, if implemented, that such implementation will benefit our business. The failure of these measures to achieve their intended goals could adversely affect the Argentine economy, and force the Macri administration to adopt future policies including forced renegotiation or modification of existing contracts, suspension of the enforcement of creditors’ rights, new taxation policies, including royalty and tax increases and retroactive tax claims, and changeswhich, in laws and policies affecting foreign trade and investment and salary increases, and/or the provision of additional employee benefits. Any such economic, social and/or political conditions and/or measures could materially affectturn, may have an adverse effect on our business, results of operations and financial condition.

~~The current Argentine administration’s ability to implement economic reforms may be limited.~~

~~Argentine presidential,~~On October 24, 2021 the congressional ~~and state government~~ elections were held during 2015 (with the majority of such elections occurring in October 2015). Presidential elections were won by the opposing political party, led by Mauricio Macri, after conducting the first run-off in Argentine history. The elected government, in office since December 10, 2015, has announced and adopted several significant economic and policy reforms:

INDEC Reforms: On January 8, 2016, based on the determination that the INDEC has failed to produce reliable statistical information, particularly with respect to the CPI, GDP, poverty and foreign trade data, the Macri administration declared the national statistical system and the INDEC in a state of administrative emergency. As a result, the INDEC ceased publishing certain key statistical data until a rearrangement of its technical and administrative structure is finalized. In June 2016, the INDEC resumed its publication of the CPI. As of the date of this annual report, the INDEC has begun publishing certain revised data, including GDP, foreign trade and balance of payment statistics, although it remains in a state of administrative emergency. On June 29, 2017 INDEC also published revised GDP data for the years 2004 through 2015.

Agreement with holdout creditors: The Macri administration settled the substantial majority of outstanding claims brought by holdout creditors and issued sovereign bonds in the international financial markets passed by Congress through Law No. 27,249. Although the size of the claims involved has decreased significantly, litigation initiated by bondholders that have not accepted Argentina’s settlement offer continues in several jurisdictions.

Foreign Exchange Reforms: The elected government eliminated most foreign exchange restrictions, including certain currency controls, which were imposed by the previous administration.However, due to the foreign exchange crisis, soaring inflation and plummeting economic activity during the first half of 2018, on November 8, 2018 the Argentine Central Bank issued Communication “A” 6595 imposing on financial entities a minimum cash requirement equal to 23% up to 29 days; 17% between 30 and 59 days; 11% between 60 and 89 days; 5% between 90 and 179 days; 2% between 180 and 365 days; and 0% for more than 365 days on obligations with international financial facilities; which, however, was repealed on January 1, 2019. In addition, effective October 1, 2018, the Argentine Central Bank defined foreign exchange intervention and non-intervention zones for the U.S. dollar exchange rate until the end of 2018, at Ps.34 per U.S. dollar in the lower bound and Ps.44 per U.S. dollar in the upper bound. Such rates are adjusted daily; provided that beyond the upper bound, the Argentine Central Bank may sell foreign currency for a daily amount of up to US$50 million, and beyond the lower bound, the Argentine Central Bank may increase the monetary base backed with the increase of the federal reserves. As of April 26, 2019, the non-intervention zones were fixed at Ps. 39.755 per U.S. dollar in the lower bound and Ps. 51.448 per U.S. dollar in the upper bound. See “-Risks related to Argentina-Exchange controls could restrict the inflow and outflow of funds in Argentina”.

Foreign trade reforms. The Macri administration eliminated export duties on wheat, corn, beef and regional products, and reduced the duty on soybeans from 35% to 30%. Further, the 5% export duty on most industrial and mining exports was eliminated. With respect to payments for imports of goods and services, the Macri administration announced the elimination of limitations for access to the Foreign Exchange Market for any new transactions as of December 17, 2015, and for existing debts incurred in connection with imports of goods and services as of April 22, 2016. On January 2, 2017, the federal government enacted a further reduction of the export duties rate set for soybean and soybean products, setting a monthly 0.5% cut on the export duties rate beginning on January 2018 and until December 2019. However, on September 4, 2018, Decree No. 793/2018 was published which establishes an export duty of 12% on the export for consumption of all merchandise included in tariff positions of the Common Mercosur Nomenclature through December 31, 2020. This export duty may not exceed 4 pesos per U.S. dollar of the taxable value or the official FOB price, as applicable. Additionally, on December 4, 2018, the current Argentine administration imposed duties on the exportation of services (and not only goods) and allowed the Executive Power to impose export duties of up to 30% until December 31, 2020, with a maximum rate of 12% for services and goods that were not subject to export duties before September 2, 2018.

Fiscal policy: The Macri administration took steps to anchor fiscal accounts, reduce the primary fiscal deficit, eliminate subsidies, reorganize certain expenditures and generate increased revenue through a tax amnesty program. The fiscal deficit for 2017 was approximately 3.9% of GDP, 0.3% lower than expected; reducing fiscal deficit is one of the most important objectives for the administration in the coming years. Due to the foreign exchange crisis in the second half of 2018, the Argentine government implemented a series of measures aiming at reducing the fiscal deficit drastically for the incoming years, including the suspension of public infrastructure works, the depreciation of the Argentine peso, the re-imposition of export duties, the request of a stand-by loan agreement with the IMF and the elimination of the Supportive Federal Fund (by which the Federal Government distributed 30% of the proceeds of

the export duties on soybean and soybean products to the provinces and municipalities), among other things. For the incoming years, the Argentine government targets a primary fiscal deficit of 0% of the GDP for 2019 and a primary fiscal surplus of 1% of the GDP for 2020.

Infrastructure state of emergency and reforms. The Macri administration issued Resolution No. 6/2016 of the Ministerio de Energía y Minería de la Nación (National Ministry of Energy and Mining) and Resolution No. 1/2016 of the Ente Nacional Regulador de la Electricidad (National Electricity Regulatory Agency), through which the Macri administration announced the elimination of some energy subsidies currently in effect and a substantial increase in electricity rates. Additionally, the government declared a state of emergency with respect to the national electrical system, which remained effective until December 31, 2017. Under this state of emergency, the Macri administration was permitted to take actions designed to guarantee the supply of electricity.In addition, the Macri administration announced the elimination of certain natural gas subsidies and adjustments to natural gas rates.

Correction of monetary imbalances: The Argentine administration has adopted an inflation targeting regime in parallel with the floating exchange rate regime and set inflation targets for the next few years. The Central Bank has increased stabilization efforts to reduce excess monetary imbalances and raised peso interest rates to offset inflationary pressure. However, the goals for 2016 and 2017 have not been met, and the Central Bank has recently announced an increase on the inflation target ranges for 2018 (from between 8% and 12% to 27%); and 2019 (from between 3.5% and 6.5%, to 17%). The inflation for 2017 arose to 24.8%, and for 2018, fostered by a depreciation of 103.83% of the Argentine peso to the U.S. dollar, soared to 47.6%. The official estimation of inflation for 2019 is 29%, while private sources predict an inflation of 35% for the same period. Since October 1, 2018, in addition to the creation of the foreign exchange intervention and non-intervention zones, the Argentine Central Bank adopted a policy of zero currency issuance. Therefore, the Argentine Central Bank recalculated the inflation targets for 2019 and 2020 to 27.8% and 19.6%, respectively.

Tax Amnesty Law: On June 29, 2016, the Argentine Congress passed Law No. 27,260, which became effective on July 22, 2016 and provides for a tax amnesty regime and tax reform. This regime allowed individuals and entities to disclose undeclared assets both abroad and in Argentina, under the conditions set forth in the law and within a period extending from its effectiveness until March 31, 2017, without the need to repatriate such assets to Argentina and without penalty (other than charges described below) or the need to explain the source of the funds, among other benefits. The law also provides that there will be no charge on assets worth up to US$25,000, and a discounted applicable tax of 5% on property and assets worth up to US$80,000. Above that threshold, the applicable tax was 10% until the end of 2016 and 15% until the end of March 2017, when the amnesty window closed.

~~Corporate Criminal Liability Law (Ley de Responsabilidad Penal Empresaria~~): On November 8, 2017, the Argentine Congress passed Law No. 27,401 which provides for the criminal liability of corporate entities when the following crimes are committed, directly or indirectly: (a) local or international bribery and influence peddling, (b) negotiations that are incompatible with public office, (c) illegal payments made to public officials under the appearance of taxes or fees owed to the relevant government agency, (d) illegal enrichment of public officers and employees, and (e) producing knowingly false balance sheets and reports to cover up local or international bribery or influence peddling. Companies found liable for committing such crimes may be subject to various sanctions and penalties, including, among others, fines ranging from two to five times the ‘‘undue’’ benefit that was obtained or that could have been obtained through the actions incurred in breach of this regulation. Additionally, Companies found liable may forfeit assets obtained through the illegal actions. The law became effective on March 1, 2018.

Amendment to Labor Risks Law: On February 15, 2017, the Argentine congress passed Law 27,348, which amends and complements Labor Risks Law No. 24,557, or the Labor Risks Law, and aims to reduce litigation arising from accidents at work. Under the new regime, prior to filing a lawsuit resulting from work-related accidents, affected workers must go through jurisdictional medical commissions, in order to assess the impact of any accident and to assign benefits provided for under the Labor Risks Law.

Capital Markets Reform. On May 9, 2018, the Argentine Congress passed the Productive Financing Law No. 27,440, which reformed, among others, the Capital Markets Law No. 26,831, generally modernizing the entire regulatory framework applicable to the Argentine capital market by incorporating current international practices to contribute to its development. The Argentine Securities Commission (Comisión Nacional de Valores) (“CNV”) has also issued several regulations in line with such reform and currently continues issuing additional resolutions subject to public opinion.

~~Social Security Reform Law: On December 28, 2017 Argentine Law No. 27,426 was promulgated. The law provides for modifications to the method of calculation of increases of social security benefits.~~

Labor Reform Draft Bill: The Argentine administration recently announced a draft bill to reform labor and social security which was sent to the Argentine congress for debate on November 21, 2017. On November 29, 2017, the draft bill was passed by the Argentine senate, and sent to the Argentine congress. The draft bill aims to improve competitiveness and efficiency of various sectors, increase employment, attract investment and reduce labor costs.

Tax Regime: On December 27, 2017, a draft bill proposing a series of tax and social security reforms was approved by the Argentine congress by means of Law No. 27,430. The law provides for a series of tax and social security reforms intended to eliminate certain existing complexities and inefficiencies of the Argentine tax regime, reduce tax evasion, increase the coverage of income tax as applied to individuals and encourage investment while sustaining the Argentine administration’s medium- and long-term efforts aimed at restoring fiscal balance. The reforms introduced with this law are part of the agenda of the Argentine administration to improve the competitiveness of the Argentine economy (including the reduction of the fiscal deficit), to increase employment and diminish poverty on a sustainable basis. Decree No. 279/2018, published in the Official Gazette on April 7, 2018, regulated the income tax treatment applicable to non-Argentine residents, who receive income or obtain capital gains arising from the investment in financial assets in Argentina. The reform did not substantially modify the tax treatment set forth in Law No. 26,893 to gains recognized by nonresidents on the sale of shares, quotas or other equity participations in Argentine companies as well as “other securities” of Argentine residents. However, it shifted the tax liability from nonresident purchasers to nonresident sellers. Beginning January 1, 2018, when a nonresident seller sells shares or quotas in an Argentine company to a nonresident buyer, the seller must pay Argentine income tax on the capital gains through its legal representative in Argentina. In April 2018, the General Resolution No. 4,227 of the AFIP, established the payment mechanism for the Argentine income tax on capital gains. Furthermore, Decree No. 813/2018, published in the Official Gazette on September 11, 2018, introduced several amendments to Regulatory Decree No. 692/1998, which regulates the Argentine Value Added Tax Law. The main amendments were made in relation to: (i) substitute taxpayers for the payment of the Value Added Tax corresponding to individuals or entities domiciled or resident abroad who render services within Argentina subject to the tax; (ii) digital services provided by individuals or entities domiciled or resident abroad when the effective use or exploitation is carried out in Argentina; (iii) the mechanism for the refund of tax credits generated in the purchase, construction, manufacture, processing or importation of capital assets; and (iv) the mechanism for the recovery of accumulated tax balance by public service companies. On December 27, 2018 Decree No. 1170 was published in the Official Gazette, which amended the regulatory decree of the Income Tax Law, in accordance with the amendments introduced by Law No. 27,430. In addition, pursuant to the amendment to the personal assets tax law approved by Law No. 27,480, enacted on December 5, 2018, for fiscal year 2019 the minimum taxable amount is Ps.2 million. For taxpayers domiciled in Argentina, the tax rate would still be 0.25% if the aggregate amount of declared assets is between Ps.2 million and Ps.5 million, but it would increase to 0.5% on the excess of Ps.5 million if the declared assets are of between Ps.5 and Ps.20 million and to 0.75% on the excess of Ps.20 million if the value of informed assets is higher than Ps.20 million. For individuals and entities not domiciled in Argentina, the tax rate would be maintained at 0.25%, irrespective of the value of the taxable assets.

Limitation of Bureaucracy and Simplification: On January 11, 2018, Decree No. 27/2018, or Decree 27/2018, was published in the Argentine Official Gazette, with the objective to reduce government bureaucracy and approve new practices which reduce costs and boost competitiveness.

Antitrust Law. On May 24, 2018, the Argentine Congress passed Law No. 27,442, which introduced several changes to the former Antitrust Law No. 25,156, as follows: (i) it envisages the creation of a National Competition Authority, as opposed to having a “dual” authority which will oversee an Antritrust Tribunal and two Secretaries, namely the Secretaria de Conentraciones Económiacas and the Secretaria de Investigaciones de Conductas Anticompetitivas; (ii) in terms of supervising potential mergers, it increases the volume of business’ threshold and provides for the adoption of a suspensory regime,held, by means of which the parties to a reportable transaction will not be able to close it until they receive authorization from the authority; and (iii) in terms of anticompetitive conducts, it substantially increases fines and presumes that there exists certain conduct that is deemed to be absolutely restrictive to competition and, therefore, illegal per se (i.e. “hard core cartels”). The current non-suspensory regime shall continue to apply until the creationpart of the ~~National Competition Authority.~~

~~We cannot predict~~members of the ~~impact~~House of Representatives and the Senate will be elected. Primary elections that ~~these policies or any future polices implemented by~~will define candidates of each political party are scheduled for August 8, 2021. The results of the ~~Macri administration or any other national government will have~~elections and their impact on the ~~Argentine economy~~Fernández Administration as ~~a whole or on our business, results of operation or financial condition, in particular. Moreover, there is~~mid-term elections are still uncertain.

This political uncertainty as to when and if other measures announced during the presidential campaign will be implemented. Some of the measures proposed by the Macri administration may also generate political and social opposition, which

may in turn prevent the new government from adopting such measures as proposed. In addition, political parties opposed to the new government retained a majority of the seats in the Argentine Congress in the recent elections, which will require the new government to seek political support from the opposition for its economic proposals and creates further uncertainty in the ability of the new government to pass measures. Political uncertainty in Argentina relating to the measures to be taken by the Macri administration in respect of ~~the Argentine economy~~economic measures could lead to volatility in the market prices of securities of Argentine ~~companies.~~

~~The result of the next presidential~~companies and ~~provincial elections that will take place in 2019 could generate uncertainty in the Argentine economy~~our common shares, and ~~consequently, in our businesses and the results of our operations.~~

Argentina's national election for president and vice-president will take place in October 2019, and other relevant local and federal elections will also take place in 2019. The impact that the electoral process and its results could have on the policies and the economy of Argentina is uncertain.

~~Additionally, it is not possible to predict the measures that may be adopted by the next administration at the national or provincial level, which~~ could have a ~~substantially adverse~~negative impact in our domestic consumer markets, which, in turn, could have a negative effect on ~~the economy. We cannot guarantee that current programs~~our business, results of operations and policies that apply to the agricultural sector will continue in place in the future. See “Government intervention in Argentina may have a direct impact on our prices and sales” and “An increase in export and import duties and controls may have an adverse impact on our sales”financial condition.

The Argentine economy has been adversely affected by economic developments in other ~~markets.~~markets and by other general "contagion" effects.

Financial and securities markets in Argentina, and also the Argentine economy, are influenced by economic and market conditions in other markets worldwide, including those relating to ~~a potential~~the recent trade ~~war~~dispute between China and the United States. Although economic conditions vary from country to country, ~~investors'~~investor's reactions to events occurring in one country sometimes demonstrate a "contagion" effect in which an entire region or class of investment is disfavored by international investors.

Furthermore, weak, flat or negative economic growth in any of Argentina’s major trading partners, such as Brazil, could adversely affect Argentina’s balance of payments and, consequently, its economic growth.

The Argentine economy may also be affected by conditions in developed economies, such as the United States, that are significant trading partners of Argentina or have influence over global economic cycles and over short-term evolution of commodity prices. If interest rates increase significantly in developed economies, including the United States, Argentina and its developing economy trading partners, such as Brazil, could find it more difficult and expensive to borrow capital and refinance existing debt, which could adversely affect economic growth in those countries. Decreased growth from Argentina’s trading partners could have a material adverse effect on the markets for Argentina’s exports and, in turn, adversely affect economic growth. Any of these potential risks to the Argentine economy could have a material adverse effect on our business, financial condition and result of operations.

The COVID-19 pandemic outbreak has also destabilized global financial markets, which has had a negative impact on global trade and the global economy, including the Argentine economy, which in turn could have a negative impact on our business, results of operations and financial condition (See “ — Risks Related to Our Business and Industries —The COVID-19 pandemic may have an adverse effect on our business and operating results”).

In addition, Argentina is highly dependent on the export of certain commodities, such as soy, what has made the Argentine economy more vulnerable to fluctuations in the commodity prices. If international commodity prices decline, the Argentine economy could be adversely affected. In addition, adverse weather conditions can affect the production of commodities by the agricultural sector, which account for a significant portion of Argentina's export revenues.

All these circumstances could have a negative impact on the levels of government revenues, available foreign exchange and the government's ability to service its sovereign debt, and could either generate recessionary or inflationary pressures, depending on the government's reaction. Either of these results would adversely impact Argentina's economic growth and, therefore, our financial condition and results of operations.

Consequently, there can be no assurance that the Argentine financial system and securities markets will not continue to be adversely affected by events in developed countries' economies or events in other emerging markets, which could in turn, adversely affect the Argentine economy and, indirectly, our business, financial condition and results of operations, and the market value of our securities.

The economy of Argentina may be affected by its government’s limited access to financing from international ~~markets.~~markets and the result of failure to pay its debt obligations and the current debt restructuring process.

The Argentine economy has ~~experienced~~been experiencing significant instability in the past decades, including devaluations, high inflation, and prolonged periods of reduced economic growth, which have led to payment defaults on Argentina’s foreign debt and multiple downgrades in Argentina’s foreign debt rating with attendant restrictions on Argentina’s ability to obtain financing in the international markets.

Argentina’s 2001 sovereign default and its failure to fully restructure its sovereign debt and negotiate with the holdout creditors has limited and may continue to limit Argentina’s ability to access international financing. In 2005, Argentina completed the restructuring of a substantial portion of its indebtedness and settled all of its debt with the IMF. Additionally, in June 2010, Argentina completed the restructuring of a significant portion of the defaulted bonds that were not exchanged in the 2005 restructuring. ~~As a result of debt exchanges carried out in 2005 and 2010, Argentina restructured approximately 93% of its defaulted debt that was eligible for restructuring. However, holdout~~Holdout bondholders that declined to participate in the restructuring, filed lawsuits against Argentina in several countries, including the United States. Since late 2012, rulings from courts in the United States favorable to holdout bondholders aggravated investors’ concerns regarding investment in the country.

In November 2012, the United States District Court for the Southern District of New York in re: “NML Capital, Ltd. v. Republic of Argentina”, ratified and amended the injunction order issued in February 2012, which held that Argentina violated the pari passu clause with respect to the bondholders that had not participated in the sovereign debt restructuring in 2005 and 2010. Pursuant to such ruling, Argentina was required to pay 100% of the amounts due to the plaintiffs, simultaneously with the payment of the amounts due on the next maturity date of the bonds to the bondholders who participated in the debt restructuring. In June 2014, the U.S. Supreme Court denied Argentina’s petition for a writ of certiorari of the U.S. Second Circuit Court of Appeals’ ruling affirming the U.S. District Court’s judgment. Later that month, the U.S. District Court ruled that funds deposited with the Bank of New York Mellon, the trustee which manages payments for Argentina's bonds issued in the 2005 and 2010 debt restructuring, could not be delivered to the holders of restructured debt in the absence of a prior agreement with the holdout bondholders. In June 2015, the U.S. District Court granted partial summary judgment to a group of “me-too” plaintiffs in 36 separate lawsuits,

~~finding that, consistent with the previous ruling of such court, Argentina violated the pari passu clause in the bonds issued to the “me-too” bondholders.~~

In February 2016, the Macri administration entered into settlement agreements with certain holdout bondholders to settle these claims, which were subject to the approval of the Argentine ~~Congress and the lifting of the pari passu injunctions. In March 2016, after the U.S. District Court agreed to vacate the pari passu injunctions subject to certain conditions, the~~Congress. The Argentine Congress ratified these settlement agreements through Law No. 27,249 and repealed the provisions of the so called Lock Law No. 26,017 and the Sovereign Payment Law No. 26,984, which prohibited Argentina from offering holdout bondholders more favorable terms than those offered in the 2005 and 2010 debt restructuring. In recent months, the Argentine national government ~~has~~ reached settlement agreements with holders of a significant portion of the defaulted bonds and has repaid the majority of the holdout creditors with the proceeds of a US$16.5 billion international offering of 3-year, 5-year, 10-year and 30-year bonds on April 22, ~~2016.~~2016 -which bonds, among other sovereign bonds, were then restructured by the Fernández administration in August, 2020 -as explained below. Although the size of the outstanding claims ~~involved~~ has decreased significantly, litigation initiated by bondholders that have not accepted Argentina’s settlement offer of 2016 continues in several jurisdictions.

Additionally, foreign shareholders of several Argentine companies have filed claims with the ~~ICSID~~International Center for Settlement of Investment Disputes (ICSID) alleging that the emergency measures adopted by the Argentine ~~national~~ government since the crisis in 2001 and 2002 differ from the just and equal treatment standards set forth in several bilateral investment treaties to which Argentina is a party. The ICSID has ruled against Argentina with respect to many of these claims.

Litigation involving holdout creditors, claims with ICSID and other claims against the Argentine national government, resulted and may result in material judgments against the government, lead to attachments of or injunctions relating to Argentina’s assets, or could cause Argentina to default under its other obligations, and such events may prevent Argentina from obtaining favorable terms or interest rates when accessing international capital markets or from accessing international financing at all. Our ability to obtain U.S. dollar-denominated financing has been adversely impacted by these factors. ~~During 2016, 2017 and~~

In May 2018, ~~it became increasingly difficult~~the Macri administration requested the IMF the granting of a Stand-By Arrangement for up to US$57.1 billion with the purpose of supporting the Argentine ~~companies to obtain financing in U.S. dollars, and loans in local currencies carry significantly higher interest rates. The termination~~government’s economic plan.

As of the ~~injunctions~~date of this report, the IMF disbursed an aggregate of US$44.70 billion. The Fernández administration is currently negotiating the restructuring of the terms of the Stand-By Arrangement, which payments become due as from 2021.

The Argentine government announced that it will also engage in negotiations with the Paris Club for the restructuring of the debt incurred with such institution given that there are also payments becoming due on the following months.

As of the date of this annual report, we cannot guarantee that the Argentine government and the IMF will reach an agreement on the restructuring of the Stand-By Arrangement, nor are we able to predict the future consequences for the Argentine economy in general or our business in particular if such agreement fails.

Pursuant to a report issued by the Secretary of Finance of the Argentine government, as of December 2019, Argentina’s foreign debt amounted to US$311.25 billion, which represented 91.6% of Argentina’s GDP. During 2020 the Argentine government carried out the restructuring of its public debt instrumented in bonds denominated in foreign currency governed by foreign law as well as bonds denominated in foreign currency governed by Argentine law, by means of debt restructuring procedures implemented internationally and locally, respectively, within each groups of creditors according to the type of sovereign debt.

On February 12, 2020, the Argentine Congress enacted Law No. 27,544 for the Restoration of the Sustainability of the Public Debt issued under Foreign Law, which provided for the restructuring of the Argentine external public debt. Through Decree No. 250/2020, published in the Official Gazette on March 10, 2020, the Argentine Executive Branch authorized negotiations for the restructuring of US$68.85 billion of sovereign bonds issued in foreign currency and governed by foreign

law. On April 17, 2020, Argentina announced an invitation to exchange its sovereign bonds governed by foreign law that were eligible for the restructuring for new bonds. The universe of eligible bonds that were subject to the exchange offer was comprised by bonds governed by the laws of New York (United States) and by the laws of the United ~~States courts preventing~~Kingdom, denominated in several currencies (US Dollars, Euros and Swiss Francs). Within the universe of the bonds they were the instruments issued within the framework of the prior restructuring, carried out by the exchanges of years 2005 and 2010.

After several extensions and improvements made within the initial offer, on August 31, 2020, Argentina announced the results of the invitation to exchange. Argentina obtained the majorities required under the collective action clauses to exchange 99.01% of the eligible bonds, as a result of obtaining a level of acceptance of 93.55% of the bondholders ~~from receiving~~to its exchange proposal launched in April and improved in July and in August, after the agreement with three groups of bondholders.

Within the context of the agreement with the groups of bondholders for the restructuring of sovereign debt governed by foreign law, Argentina also conducted a local exchange. Argentina launched an offer to exchange sovereign bonds denominated in US dollars and ‘dollar-linked’ issued under local law. The instruments subject to the local debt restructuring were affected by the deferral of payments of principal and interest until December 31, 2020, provided by Presidential Decree No. 346/20 published in the Official Gazette on April 6, 2020.

In August 2020, Argentina launched an offer to exchange this universe of sovereign bonds denominated in US dollars and ‘dollar-linked’ issued under Argentine law. As a result of this transaction, and as informed in Ministry of Economy press release on September 15, 2020, 99.41% of the bondholders of eligible instruments under this local exchange had accepted the offer.

The local debt exchange was then reopened and is ongoing as of the date of this report. On November 4, 2020, Resolution No. 540/2020 of the Ministry of Economy was published in the Official Gazette, which provided for the reopening of the local exchange and, for this purpose, set forth a procedure to allow eligible instruments which did not enter into the debt restructuring under Argentine law carried out on August and September 2020 to be tendered. The resolution provided that holders who were unable to enter the exchange within the prior invitation term may do so in successive acceptance terms which will be extended until July 28, 2021 in the conditions set forth therein.

In addition, in January 26, 2020 the Province of Buenos Aires, the largest estate in Argentina, also had a maturity of provincial sovereign debt for US$277 million in principal amount and interests that, after the failure of the negotiations for an extension, cancelled within the curing period in February 5, 2020. The Province of Buenos Aires had additional payments under its sovereign debt for US$110 million maturing in May 2020 and US$750 million maturing in June 2020. In May 2020 the Province of Buenos Aires, did not fulfill the payment of its international sub-sovereign bonds and since then is seeking to restructure them through an exchange offer. After several extensions without success, the Province of Buenos Aires has recently extended again the offer expiration date until March 26, 2021. There are other Argentine provinces which are also carrying out the restructuring of their ~~interest payments~~bonds governed by foreign law and denominated in foreign currency.

As of the date of this annual report, the Argentine government and the IMF did not reach an agreement on the ~~bonds issued pursuant~~restructuring of the Stand-By Arrangement and there are no assurances that such agreement would be reached during 2021, nor are we able to predict the ~~2005 and 2010 exchange offers, and the related subsequent events, have paved the way~~future consequences for the Argentine ~~national~~economy in general or our business in particular if such agreement is not reached.

Argentina is also aiming at obtaining a deferral of the payments which are due in the upcoming months of 2021 with the Paris Club and other international financial institutions, for which purposes the Government would have engaged in conversations but there is still uncertainty on the deferral of such payments.

If the negotiations with the IMF and the other international financial institutions fail or the Province of Buenos Aires or other provinces of Argentina fail to restructure their debt, the Argentine government defaults again in the payment of its sovereign debt or the measures adopted and to be adopted by the Argentine government to ~~regain access to~~reduce the ~~international capital markets. Nonetheless,~~fiscal deficit, control inflation and stabilize the foreign exchange market are not effective, Argentina’s ability to obtain international or multilateral private financing or direct foreign investment may be limited, which may in turn impair its ability to implement reforms and public policies to foster economic ~~growth. In addition, Argentina’s ongoing litigation with~~growth, impair the ~~remaining holdout creditors as well as ICSID and other claims against the Argentine national government, or any future defaults~~ability of ~~its financial obligations, may prevent us from accessing~~private sector entities to access the international capital markets or ~~cause~~make the terms of ~~any~~ such ~~transactions~~financing much less favorable ~~than~~that those ~~provided to~~accessible by companies in other countries in the region ~~potentially impacting our financial condition.~~and may accelerate the depreciation of the Argentine peso, foster inflation and deepen the economic crisis and recession.

~~Without~~Lack of access to international ~~private financing, Argentina may not be able to finance its obligations, and financing from multilateral~~or domestic financial ~~institutions may be limited or not available. This~~markets could ~~also inhibit~~affect the ~~ability of the Argentine Central Bank to adopt measures to curb inflation and could adversely affect Argentina’s economic growth and public finances, which could, in turn, adversely affect~~projected capital expenditures for our operations in Argentina, which, in turn, may have an adverse effect on our financial condition or the results of our operations.

~~The Executive Board~~

Argentina’s current account and balance of payment imbalances could lead to a depreciation of the ~~International Monetary Fund~~Argentine peso, and as a result, affect our results of operations, our capital expenditure program and our ability to service our foreign currency liabilities.

According to INDEC, Argentina had a structural current account deficit that reached US$3.5 billion in 2019, US$27.3 billion in 2018, US$31.2 billion in 2017, US$15.1 billion in 2016, and US$17.6 billion in 2015. The account deficit between 2015 and 2017 originates in the stagnation of exports of goods, which have only increased by 1.4%, taking into account the compounded average growth rate or CAGR, between 2015 and 2017; in contrast, imports of goods have been increasing at a much faster speed, reaching a CAGR of 5.8% in the same period. Nonetheless, by the end of 2020, that structural current account deficit was turned around, reaching a US$3.0 billion surplus.

During the Macri administration, the account deficit was financed mainly with external debt issuances in the international debt markets. In addition, the settlement of the disputes over the 2001 defaulted debt crisis has ~~approved a three-year Stand-By Arrangement~~allowed several provinces of Argentina and certain Argentine private companies to issue new debt securities in foreign markets. However, both the Argentine Government and certain provincial governments have implemented debt restructuring procedures of their sovereign debt and sub-sovereign debt bonds, respectively, some of which procedures are still ongoing (see " — The economy of Argentina may be affected by its government’s limited access to financing from international markets and the result of failure to pay its debt obligations and the current debt restructuring process”).

Because foreign direct investment remains stagnant in Argentina, it may become impossible for Argentina ~~amounting~~and its provinces to ~~US$57.1 billion,~~meet their debts obligations in the future, since Argentina’s foreign currency needs would severely overcome its foreign currency sources. If this level of uncertainty prevails on international investors, Argentina may suffer a “sudden stop” event, where investors stop lending money to Argentinean institutions. This, in turn, may result in large capital outflows that could not only force the Argentine government to default on its debt, but also generate a rapid and unanticipated depreciation of the argentine peso, a hike in local interest rates and a probable banking system crisis if bank deposits are largely withdrawn following social unrest.

The events described above have already taken place in recent decades in Argentina, and although the current administration intends to address the situation, as of the date of this annual report, the impact that the measures taken by the present administration will have on the Argentine economy as a whole cannot be predicted. As of the date of this report, the results of the measures already implemented and the Argentine government’s measures related to the outbreak of COVID-19, impacted the primary fiscal and financial deficit in 2020, that reached 6.5% and 8.5% of GDP, respectively, as a result of the income and expenditures measures that the Argentine government implemented to face the pandemic. Alberto Fernández's government measures aim to stabilize state accounts, but in principle they intend to maintain expansive policies that would mean initially even more increases in public spending, financed through the expansion of currency issuance.

The failure to reduce fiscal deficits could increase the level of uncertainty regarding the macroeconomic conditions in Argentina. In particular, it could lead to an ~~agreement~~increase in the inflation index, devaluation of the Argentine peso with respect to foreign currencies and a subsequent crisis in the balance of payments, greater local vulnerability to the international credit crisis or geopolitical shocks, rising rates of interest, erratic monetary policies, reduction in real wages and, as a consequence, in private consumption and reduction in growth rates. This level of uncertainty, over which we have no control, can affect our financial condition or the results of operations.

If a balance of payments crisis were to occur, a large depreciation of the Argentine peso against the U.S. dollar could adversely affect our ability to meet our foreign currency obligations. Furthermore, the negative effect such a crisis could have on the growth rates of the Argentine economy and its consumption patterns could have a material adverse effect on our business, financial condition and result of operations.

If current levels of fiscal deficits are not reduced, the Argentine economy could be adversely affected, negatively impacting our business and results of operations.

Between 2007 and 2015, Fernández de Kirchner's administration significantly increased public spending. In the eleven-month period ended on November 30, 2015, the fiscal deficit increased by 363% annualized. During that period, the Fernández de Kirchner administration turned to the Argentine Central Bank and the National Social Security Administration (Administración Nacional de la Seguridad Social or “ANSES” after its Spanish acronym), to finance part of the public spending. Inflation continues to be a challenge for Argentina given its persistent nature in recent years. The Macri administration had announced its intention to reduce the primary fiscal deficit as a percentage of GDP over time and reduce the government's dependence on Argentine Central Bank financing. Given the difficulties of the Argentine public finances, the administration of former President Macri adopted several measures to finance public spending, for example, the revision of

subsidy policies (in particular those related to tariffs on energy, electricity and gas, water and public transport) and the implementation of an expansive monetary policy. These measures resulted in a further increase in prices and, therefore, adversely affected, consumer purchasing power and the overall economic ~~plan~~activity. In addition, measures taken by the administration of President Alberto Fernández, the implementation of the Solidarity Law (See “— The impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”) as well as the measures related to the outbreak of COVID-19 will have an impact on the Argentine economy (See “— The measures taken or to be implemented by the Argentine ~~authorities; however, there can be no assurance that such plan will meet its objectives~~government in ~~supporting~~response to the COVID-19 pandemic may cause adverse effect on our business and operations”).

Accordingly, Argentina has had severe macroeconomic imbalances, including frequent and extreme fiscal deficits. Since 1961, the Argentine ~~government’s economic priorities, nor are we able to predict what~~government has had yearly fiscal deficits in approximately 90% of the ~~future consequences will be for the Argentine economy~~time (47 years out of 53), resulting in ~~general or our business in particular.~~

highly vulnerable macroeconomic conditions. The Argentine government ~~requested IMF financial support~~has financed its fiscal deficit mainly in ~~late May 2018~~two ways: (i) by relying on external debt issuances, which has historically led to ~~help strengthen~~rapid increases in public debt levels; and (ii) by having the Argentine ~~economy~~Central Bank issue new currency notes, which has led to high inflation periods and, in ~~light~~certain cases, hyperinflation. The fiscal deficit reached 5.2% of GDP in 2015, 5.8% of GDP in 2016, 6.0% of GDP in 2017, 5.2% of GDP in 2018, 4.9% of GDP in 2019 and 8.5% of GDP in 2020. (See “—Argentina’s current account and balance of payment imbalances could lead to a depreciation of the ~~recent financial market turbulence. In early June 2018, Argentina~~Argentine peso, and ~~IMF staff reached an agreement on an economic plan that could be supported by IMF financing in the form~~as a result, affect our results of ~~a Stand-By Arrangement for $50.0 billion,~~operations, our capital expenditure program and ~~on June 20, 2018, the IMF’s Executive Board approved such plan and the consequent three-year Stand-By Arrangement, and on June 21, 2018, the IMF made the first disbursement of US$15 billion.~~

~~On September 2018 the Argentine government negotiated an extension~~our ability to the Stand-By Arrangement from $50.0 billion to $57.1 billion. By the end of October 2018, the IMF made the second disbursement of $5.7 billion and by the end of December made a third disbursement of $7.6 billion. On April 5, 2019 the IMF approved the fourth disbursement under the Stand-By Arrangement of $10.8 billion.service our foreign currency liabilities”).

The ~~purpose~~failure to reduce fiscal deficits could lead to growing levels of ~~the Stand-By Arrangement is~~uncertainty regarding Argentina’s macroeconomic conditions. In particular, it could lead to ~~support the Argentine government’s economic priorities,~~growing inflation rates and unanticipated foreign exchange depreciation and balance of payments crisis, higher local vulnerability to international credit crisis or geopolitical shocks, higher interest rates and erratic monetary policies, a reduction in real salaries and as a consequence, in private consumption, and a reduction in growth rates. This level of uncertainty, over which ~~include strengthening~~we have no control, may adversely affect our financial condition or results of operations.

Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina.

Historically, inflation has materially undermined the Argentine economy and ~~protecting~~ the ~~living standards~~government’s ability to create conditions that would permit long term and stable growth. In recent years, Argentina has experienced high inflation rates. High inflation may also undermine Argentina’s foreign competitiveness in international markets and adversely affect economic activity and employment, as well as our business and results of operation. In particular, the profit margin on our services is impacted by the increase in our costs in providing those services, which is influenced by wage inflation in Argentina, as well as other factors.

Since 2008, the Argentine economy has been subject to strong inflationary pressures that, according to private sector analysts, reached an average annual rate of 28.2% between 2010 and 2015. In 2007 INDEC was subject to a process of institutional and methodological reforms that led to controversies regarding the credibility of the information published by it, including CPI. Reports published by the IMF between 2007 and 2015, using alternative measures to estimate price developments, showed considerably higher variations than those published by INDEC (see “ — The credibility of several Argentine economic indices have been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn limit our ability to access the credit and capital markets” and “— Risks Related to Our Business and Industries-Inflation in some of the countries in which we operate, along with governmental measures to curb inflation, may have a significant negative effect on the economies of those countries and, as a result, on our financial condition and results of operations”). In December 2015, the Macri Administration suspended the publication of indexes and statistics and, after implementing certain methodological reforms and adjusting certain macroeconomic statistics, resumed its publication of the CPI in June 2016. Based on the new and revised information provided by INDEC, inflation reached an annual rate of 40.9% in 2016, 24.8% in 2017, 47.6% in 2018, 53.8% in 2019, and 36.1% in 2020.

Due to several internal and external factors, during the first half of 2018 the peso suffered a new sharp depreciation, which, as of December 31, 2018 accumulated 103.83% and that fostered the inflation levels again to 47.6% in 2018. In April 2019 the Argentine government adopted a series of economic measures attempting to control the foreign exchange rate and inflation, including retail prices monitoring and freezing programs (see “— The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations — Maximum Prices and Supply Obligations”), the limitation of tariffs increases and the fixing of intervention zones by the Argentine Central Bank in the U.S. Dollar exchange market. However, these measures caused a deepening of the recession, while foreign exchange instability and high inflation continued.

In the past, the Argentine government implemented programs to control inflation and monitor prices for essential goods and services, including attempts to freeze the price of certain supermarket products by means of price support arrangements between the government and the private sector. These programs, however, did not address the structural causes for Argentina’s inflation and, consequently, failed to reduce inflation. Nevertheless, in January 2020, the Fernández Administration adopted these type of programs (see “ — Government intervention in Argentina may have a direct impact on our prices and sales” and “-Risks Related to Argentina- The impact of the Argentine ~~people.~~congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”).

Controlling inflation remains to be a challenge for Argentina. If the Argentine government continues failing to address Argentina’s structural inflationary imbalance, the current levels of inflation may continue to rise, which may have an adverse effect on Argentina’s economy.

Inflation in Argentina has contributed to a material increase in our costs of operation, in particular labor costs; it also enables a reduction in the purchasing power of the population, thus increasing the risk of a lower level of consumption from our customers in Argentina, which could negatively impact our financial condition and results of operations. Inflation rates could continue to grow in the future, and there is uncertainty regarding the effects that any measures adopted by the government could have to control inflation.

Uncertainty surrounding future inflation rates may have an adverse impact for Argentina in the long-term credit market.

The Argentine economy has experienced significant volatility in past decades, including numerous periods of low or negative growth and high and variable levels of inflation and currency devaluation. Inflation remains a challenge for Argentina given its persistent nature in recent years and also considering its high levels during 2019. No assurances can be given that the rate of growth experienced over past years will be achieved in future years or that the national economy will not suffer recession. If economic conditions in Argentina were to continue slowing down, or contract, if inflation were to accelerate further, or if the Argentine government's measures to attract or retain foreign investment and international financing in the future to incentivize domestic economy activity are unsuccessful, such developments could adversely affect Argentina's economic growth and in turn affect our financial health and results of operations.

Inflation can also lead to an increase in Argentina's debt and have an adverse effect on Argentina's ability to service its debt, mainly in the medium and long term when most inflation-indexed debt matures. In addition, weaker fiscal results could have a material adverse effect on the Government's ability to access long term financing, which, in turn, could adversely affect Argentina's economy and financial condition and access to international or domestic capital markets. If the measures adopted by the Argentine government are not able to resolve the structural inflationary disruptions of Argentina, the current inflationary levels could rise and have a negative impact on the economic and financial conditions of Argentina, and as such adversely affect our operations and financial condition (see “— Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina").

High inflation rates affect Argentina’s foreign competitiveness, increase social and economic inequality, negatively impacts employment, consumption and the level of economic activity, and undermines confidence in Argentina’s banking system, which could further limit the availability of and access by local companies to domestic and international credit.

Devaluation of the peso may adversely affect our results of operations, our capital expenditure program and the ability to service our liabilities and transfers of funds abroad.

Argentina has a history of high volatility in its foreign exchange markets, including sharp and unanticipated devaluations, tight foreign exchange controls and severe restrictions on foreign trade. The devaluation of the peso may have a negative impact on the ability of certain Argentine businesses to service their foreign currency denominated debt. It could also lead to higher inflation rates, significantly reduce real wages and jeopardize our business.

The devaluation of the Argentine peso has been continuous during recent history. After several years of moderate variations in the nominal exchange rate, the Argentine peso depreciated 32.6% and 31.1% in 2013 and 2014, respectively, with respect to the U.S. dollar. In 2015, the Argentine peso lost 52.5% of its value with respect to the U.S. dollar, in 2016 depreciated 21.9% and in 2017, depreciated approximately 17.4% of its value with respect to the U.S. dollar. In 2018 the Argentine peso suffered a sharp depreciation which accumulated 102.2% (See “— Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina” and “— The Argentine economy could be adversely affected by economic developments in other markets and by other general “contagion” effects”).

After the results of the primary elections were announced on August 11, 2019, the markets reacted negatively, and the U.S. dollar price jumped from $43.9 pesos to $60.4 at the exchange rate published by the Argentine Central Bank as of August 14, 2019. Consequently, the shares of Argentine companies in the New York stock exchanges and the value of national bonds dropped. Given the political and economic landscape, the Government of former President Macri re-instated rigid restrictions and foreign exchange controls in September 1, 2019, which among other things, significantly curtailed access to the official foreign exchange market by individuals and entities (See "Item 10 — Additional Information-Exchange Controls”). During 2019 the Argentine peso depreciated 58.9% against the U.S. dollar. Furthermore, an unofficial U.S. dollar trading market developed in which the Argentine peso/U.S. dollar exchange rate is significantly higher than the one in the official one. We cannot predict future fluctuations in the Argentine peso/U.S. dollar exchange rate or further foreign exchange restrictions.

Despite the positive effects the depreciation of the Argentine peso may have on the competitiveness of certain sectors of the Argentine economy, including our business, it also had a negative impact on the financial condition of many Argentine businesses and individuals. The devaluation of the Argentine peso affected or may affect the ability of certain Argentine businesses to honor their foreign currency-denominated debt, generates high levels of inflation, reduces real wages significantly, and has a negative impact on companies oriented to the domestic market, such as public services and the financial industry.

Given the political and economic landscape, the Government of former President Macri re-instated rigid restrictions and foreign exchange controls in September 1, 2019, which among other things, significantly curtailed access to the official foreign exchange market by individuals and entities (See "Item 10 — Additional Information-Exchange Controls”). Notwithstanding the strengthening of the foreign exchange controls, the Peso accumulated a depreciation of 59.02% and 40.49% against the U.S. dollar in 2019 and 2020, respectively. Furthermore, an unofficial U.S. dollar trading market developed again in which the Argentine peso/U.S. dollar exchange rate is significantly higher than the one in the official one. We cannot predict future fluctuations in the Argentine peso/U.S. dollar exchange rate or further foreign exchange restrictions.

Additional volatility, appreciation or depreciation of the peso, or reduction in the Argentine Central Bank’s international reserves due to currency interventions could adversely affect the Argentine economy, which in turn may have an adverse effect on our financial conditions and results of operations.

Failure to adequately address actual and perceived risks of institutional corruption may adversely affect Argentina's economy and financial condition.

A lack of a solid and transparent institutional framework for contracts with the Argentine government and its agencies and corruption allegations have affected and continue to affect Argentina. Argentina ranked 66 of 180 in the Transparency International's 2019 Corruption Perceptions Index and 126 of 190 in the World Bank's Doing Business 2020 report.

As of the date of this annual report, there are various ongoing investigations into allegations of money laundering and corruption being conducted by the Office of the Argentine Federal Prosecutor, including the largest such investigation, known as the “Notebooks Investigation” (“Los Cuadernos de las Coimas”) which have negatively impacted the Argentine economy and political environment. This investigation relates to notebooks kept by a driver who worked for public officials during the Kirchner Administration. The notebooks allegedly document a widespread corruption scheme involving illegal cash payments by businessmen to government officials in order to win government contracts. As a result of these investigations, several businessmen (including construction company executives) and former public officials have been detained and prosecuted, including the former president and current vice-president of Argentina, Mrs. Cristina Fernández de Kirchner, who was prosecuted for illicit association.

Depending on how long it takes to close these investigations and their results, companies involved in the investigations may be subject to, among other things, a decrease in their credit ratings, claims filed by their investors, and may further experience restrictions in their access to financing through the capital markets, together with a decrease in their income. Additionally, as the criminal cases against the companies involved in the investigations move forward, said companies may be restricted from rendering services or may face new restrictions, due to their customers' internal standards. These adverse effects could restrict these companies' ability to conduct their operating activities and to meet their financial obligations. Consequently, the number of suppliers available for our operations may be reduced and, as such, we may experience an adverse effect on our commercial activities and results of operations.

The Argentine government's ability to implement initiatives aimed at strengthening Argentina's institutions and reducing corruption is uncertain as it would be subject to independent review by the judicial branch, as well as legislative support from opposition parties. We cannot give any assurance that the implementation of these measures by the Argentine government will be successful in stopping institutional deterioration and corruption. Furthermore, we cannot predict what

impact these investigations might have or what other measures may be adopted by the courts, the current administration or any future administration, each of which could adversely affect our business, financial condition and the results of our operations.

The credibility of several Argentine economic indices has been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn limit our ability to access the credit and capital markets.

Between 2007 and 2014, the inflation index determined by INDEC has been the subject of widespread criticism and extensive discussions in connection with analysis of the Argentine economy, including data on inflation, GDP and unemployment. The intervention of the former Argentine government in the INDEC in 2007 and the change in the way the inflation index was measured have resulted in disagreements between the former Argentine government and private consultants as to the actual annual inflation rate. The former Argentine government of the Fernández de Kirchner administration imposed fines on private consultants reporting inflation rates higher than the INDEC data. As a result, private consultants typically shared their data with Argentine lawmakers who opposed the previous government, and who released such data from time to time. The widespread disagreements had the negative effect of eroding public confidence in Argentina’s economy.

Since June 2016, after implementing certain methodological reforms, the CPI was corrected and on November 9, 2016, the Executive Board of the IMF lifted its censure on Argentina, noting that Argentina had resumed the publication of data in a manner consistent with its obligations under the Articles of Agreement of the IMF, recovering credibility. As of the date of this annual report, the impact of any future measures taken by the Fernández administration with respect to the INDEC will have on the Argentine economy and investors’ perception of the country cannot be predicted. Concern regarding lack of accuracy in the INDEC´s indices could adversely affect investor confidence in the Argentine economy and our ability to access international credit markets to finance our operations and growth.

Government intervention in Argentina may have a direct impact on our prices and sales.

The Argentine government has ~~stated~~in the past exercised substantial control over the Argentine economy by setting certain industry market conditions and prices. In March 2002, the Argentine government fixed the price for milk after a conflict among producers and the government. In 2005, the Argentine government adopted measures in order to increase the domestic availability of beef and reduce domestic prices. The export tax rate was increased and a minimum weight requirement for animals to be slaughtered was established. In March 2006, sales of beef products to foreign markets were temporarily suspended until prices decreased. Furthermore, in 2007 the Argentine government significantly increased export tax rates on exports of crops. Several restrictions were also imposed on the grain and oilseed markets that ~~it intends~~essentially limited the access of traders to ~~take measures to accelerate~~exports, resulting in a disparity between domestic and world prices. In March 2012, the ~~pace at which~~Undersecretary of Transport created an “indicative price” for the ~~federal government’s fiscal deficit is reduced. This measure is expected to ultimately lessen the government’s financing needs and put public debt~~transportation of grains by road fixed on a ~~downward path.~~

quarterly basis. The actual price paid for the road transportation of grains was set to be no lower than 5% or higher than 15% of the “indicative price” fixed for the applicable period. In some cases, the imposition of this “indicative price” produced increases in our transportation costs. In addition, on April 9, 2013, the Secretary of Commerce issued a resolution that established a fixed price for selling liquid hydrocarbons for a six months period. The fixed price would be the highest selling price on the date of issuance of the resolution, in certain regions of the country. Notwithstanding the April 9 resolution, YPF (the Argentine government-controlled oil and gas company) implemented gas price increases that were matched by other oil companies. Due to the increase in the price of the wheat, on July 4, 2013, the Secretary of Commerce issued a resolution mandating wheat producers and distributors to sell their stocks to satisfy the domestic demand, seeking to reduce the wheat price. On January 2014, the Secretary of Commerce launched a new program of price controls called Precios Cuidados. Producers and suppliers committed to fixed prices for more than 300 basic products subject to review on a quarterly basis. As of the date hereof, two of our rice products sold under the trademark “Molinos Ala” and "Apostoles" are subject to this program. Violation of the program may result in sanctions, including fines, which amount will be considered on a case by case basis at the time of issuing the relevant sanction by the enforcement authority.

The two administrations of President Fernández de Kirchner, who governed from 2007 through December 9, 2015, increased state intervention in the Argentine ~~government’s~~economy, through expropriation and nationalization measures, price controls and foreign exchange controls. Below follows an outline of the main measures taken by such administration on these aspects.

In 2008 the Fernández de Kirchner administration absorbed and replaced the former private pension funds for a fully public pension system. In April 2012, the Fernandez de Kirchner administration decreed the removal of directors and senior officers of YPF S.A., the country’s largest oil and gas company which was controlled by the Spanish group Repsol, and with the approval of the Argentine Congress expropriated shares held by Repsol representing 51% of the shares of YPF, and in 2015, the Argentine Congress passed a law approving the government takeover of the passenger and cargo railways, which became owned by a State-owned company called Ferrocarriles Argentinos Sociedad del Estado. In 2014 the Argentine Tax Authority (“Administración Federal de Ingresos Públicos - AFIP”) established a “Systematic Registration of Movements and Grains

Stocks Regime” (Régimen de Registración Sistemática de Movimientos y Existencias de Granos) pursuant to which all persons involved in the commercialization and manufacturing of grains and dairy products registered with the Registry of Operators of the Agro-industrial Chain (Registro Único de Operadores de la Cadena Agroindustrial or “RUCA” after its acronym in Spanish) must report the stock and stock variations (including locations, transport between the producer´s facilities, etc.) of all grains and other agricultural products (other than those to be applied to sowing) held in inventory or through third parties. In 2014 the Argentine Congress enacted the “Supply Law”, that covers the economic ~~plan intended~~process related to ~~put~~goods, facilities and services that directly or indirectly satisfy the basic or essential needs of the population, granting broad delegations of powers on its enforcement authority and provides that in ~~place measures to offer opportunity and support~~a situation of shortage or scarcity of goods or services which satisfy basic or essential needs destined to the ~~less well-off members~~general welfare of the population, the governmental authorities may order their sale, production, distribution and delivery throughout the Argentine ~~society.~~territory.

Since taking office in December 2019, the Fernández Administration implemented several measures that increased the government intervention, for example: i) the Solidarity Law published on December 23, 2019; ii) the Price Control Program announced on January 7, 2020; iii) the Law of Sustainability of Public Debt under Foreign Law, published on February 13, 2020; iv) the Supermarkets’ Shelves Law published on March 17, 2020; and v) Decree No. 690/2020, published on August 22, 2020, which regulated information and telecommunications services and their tariffs. As of the date of this report it is not possible to predict whether the current administration will promote actions related to price controls of products elaborated by us. In case it does, we cannot predict how these measures will affect our results of operations (see “— The ~~authorities have committed~~impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”).

Among other provisions, the Solidarity Law froze the electricity and natural gas tariff rates until December 31, 2020 and instructed the relevant regulatory agencies to ~~ensuring that spending on social assistance, as~~pursue a ~~share~~mandatory renegotiation of ~~gross domestic product,~~those rates. Currently, a tariff renegotiation is in process. Any increase in tariff will ~~not decline during the next three years.~~result in an increase of costs.

As of the date of this report it is not possible to predict whether the current administration will promote additional actions related to price controls of products elaborated by us. In case it does, we cannot ~~guarantee~~predict how these measures will affect our results of operations. Please bear in mind that due to the ~~financing package will be sufficient to enable~~COVID-19 pandemic the Argentine Government intervention on economic, trade and regulatory matters has increased substantially.

Expropriations and other interventions by the Argentine government such as the one relating to ~~achieve~~YPF can have an adverse impact on the ~~goals~~level of foreign investment in Argentina, the access of Argentine companies to the international capital markets and Argentina’s commercial and diplomatic relations with other countries. In the future, the level of governmental intervention in the economy may continue, which may have adverse effects on Argentina’s economy and, in turn, our business, results of operations and financial condition.

Although many of the above measures were adopted or announced by the former Argentine government’s administrations of Fernández de Kirchner, we cannot assure you that the Fernández Administration will not interfere or increase its ~~economic plan, nor are~~intervention by setting prices or regulating other market conditions. Accordingly, we cannot assure you that we will be able to ~~predict what~~freely negotiate the prices of all our Argentine products in the future ~~consequences~~or that the prices or other market conditions that the Fernández Administration might impose will allow us to freely negotiate the prices of our products, which could have a material and adverse effect on our business, results of operations and financial condition.

The Argentine government may order salary increases to be ~~for~~paid to employees in the private sector, or imposed additional charges, which would increase our operating costs.

In the past, the Argentine ~~economy~~government has passed laws, regulations and decrees requiring companies in ~~general~~the private sector to increase wages and provide specified benefits to employees and may do so again in the future. Argentine employers, both in the public and private sectors, have experienced significant pressure from their employees and labor organizations to increase wages and to provide additional employee benefits.

Due to the high levels of inflation, employees and labor organizations are demanding significant wage increases. Since June 2017, the minimum salary was raised from Ps.10,000 to Ps.21,600, as of the date of this report (in nominal terms without adjustment for inflation).

Since 2015, the INDEC has published the Salary Variation Index (Coeficiente de Variación Salarial), an index that shows the evolution of salaries. The Salary Variation Index showed an increase in registered private sector salaries of approximately 33.0% in 2016, 27.3% in 2017, 30.4% in 2018, 67.0% in 2019 and 34.4% in 2020. These increases were mainly in line with the inflation prevailing in Argentina.

Also, by means of Decree No. 34/2019 issued on December 13, 2019, as amended, the Argentine Executive Branch duplicated the amount of the statutory severance payments payable to employees hired before December 13, 2019 and fired between December 13, 2019 and January 25, 2021. After several extensions of this measure, on January 22, 2021, the Argentine government issued Decree No. 39/2021, which further extended the obligation to pay double severance amounts for employee terminations until April 25, 2021, but limited the amount of the additional severance payment to Ps. 500,000. It is likely that this provision would be further extended by the Government if the economic condition continues.

Furthermore, under the Solidarity Law (See “— The impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”) the Fernández Administration is empowered to, in its sole discretion, provide mandatory salary increases for employees of the private sector, which occurred on January 2020, imposing the payment of an extraordinary non-remunerative bonus of AR$ 4,000 to all workers in the private sector, payable in two installments in January 2020 and February 2020. This bonus and similar salary increases and additional payments could also have an effect on inflation.

On March 31, 2020, due to the COVID-19 pandemic, the Argentine government issued Decree No. 329/2020, which prohibits layoffs and dismissals due to force majeure or lack or decrease work during the next 60 days from the date of publication of the decree. In addition, Decree No. 39/2021 further extended the prohibition on terminations without cause, terminations based on the lack or reduction of work, and suspensions for force majeure events until April 25, 2021 (see “- The measures taken or to be implemented by the Argentine government in response to the COVID-19 pandemic may have an adverse effect on our business and operations”).

On August 14, 2020 the Argentine Executive Branch enacted the Law 27,555 that regulates dependent work provided from the employee's own home or from a place other than the employer's establishment and introduces the concept of teleworking. In addition, Law 27,555 establishes the minimum legal requirements for regulating teleworking, delegates specific aspects to collective bargaining, recognizes rights and duties for those who work under this modality (e.g., right of reversibility, right to digital disconnection, trade union rights, right to privacy) and contains regulations referring to working hours, provision of work tools and reimbursement of expenses. The Law 27,555 entered into force on April 1, 2021.

Due to the high levels of inflation, employers in ~~particular.~~both the public and private sectors have historically experienced, and currently are experiencing significant pressure from organized labor and their employees to provide further increases in salaries. If, as a result of such measures, future salary increases in Argentine peso exceed the pace of the devaluation of the Argentine pesos, they could have a material and adverse effect on our expenses and business, results of operations and financial condition.

Argentine law concerning foreign ownership of rural properties may adversely affect our results of operations and future investments in rural properties in Argentina.

Law No. 26,737, passed by the Argentine Congress in December 2011, and its implementing regulation Decree No. 274/2012, as amended and supplemented by Decree No. 820/2016 dated as of February 28, 2012 and of June 30, 2016, respectively, impose limits on the ownership or possession of rural land by foreign legal entities or certain foreign individuals.

Law No. 26,737 and its implementing regulation require that, “foreign ownership” of rural land may not exceed 15% of the total amount of rural land in the Argentine territory calculated also in relation to the territory of the Province, Department or Municipality where the relevant lands are located. For purposes of the law, “foreign ownership” means the ownership (whether by acquisition, transfer, assignment of rights or otherwise) over rural land by: (i) foreign individuals, regardless of whether they are Argentine residents or not; (ii) legal entities where foreign individuals or entities own, whether directly or indirectly, a number of votes sufficient to prevail in the local ~~entity´s~~entity’s decision-making process. It is presumed that foreign legal entities ~~where~~in which more than 51% of the stock is directly or indirectly owned by foreign individuals or entities are subject to Law No. 26,737; (iii) companies that issue bonds (a) convertible in stock representing 51% or more of the company’s stock upon conversion and (b) whose holders are foreign individuals or entities; (iv) trusts whose beneficiaries are foreign individuals or entities, as defined pursuant to (i) and (ii) above; (v) joint ventures in which foreign entities or individuals hold a participating interest higher than those set forth by the law; (vi) foreign public law-governed legal entities; and (vii) simple associations or de facto corporations in which foreigners hold shares in the percentage set forth by the new law in relation to corporations or which are controlled by foreigners.

Law No. 26,737 created a National Registry of Rural Land (Registro Nacional de Tierras Rurales) in charge of the enforcement of the provisions of the law and registry of rural land.

Any modification to the capital stock of companies that own or possess rural land, by public or private instrument, that implies a direct or indirect change of control, must be reported to the National Registry of Rural Land within 30 days from the date of such modification.

In addition, foreign entities or individuals of the same nationality may not own more than 4.5% of rural land in Argentina and a single foreign entity or individual may not own more than 1,000 hectares in the “core area”, or the “equivalent surface”, as determined by the Interministerial Council of Rural Land ~~(Consejo~~(Consejo Interministerial de Tierras ~~Rurales)~~Rurales) in accordance with the provinces’ proposal, specifying districts, sub-regions or areas and taking into consideration the location of the land, the proportion of the land area in respect of the total territory of the relevant Province, Department or Municipality and, the quality of the land for use and exploitation. The “equivalent surface” regime may be modified by the Interministerial Council of Rural Lands ~~(Consejo Interministerial de Tierras Rurales) taking into account~~considering possible changes in the quality of the land or the growth of urban populations. Pursuant to Decree No. 274/2012, as amended and supplemented by Decree No. 820/2016, the departments that comprise the “core area” are: Marcos Juarez and ~~Union~~Unión in the Province of Córdoba; Belgrano, San ~~Martin,~~Martín, San ~~Jeronimo,~~Jerónimo, Iriondo, San Lorenzo, Rosario, Constitución, Caseros and General ~~Lopez~~López in the Province of Santa Fe; and the districts of Leandro N. Alem, General Viamonte, Bragado, General Arenales, Junin, Alberti, Rojas, Chivilcoy, Chacabuco, ~~Colon,~~Colón, Salto, San ~~Nicolas,~~Nicolás, Ramallo, San Pedro, Baradero, San Antonio de Areco, ~~Exaltacion~~Exaltación de La Cruz, ~~Capitan~~Capitán Sarmiento, San ~~Andres~~Andrés de Giles, Pergamino, Arrecifes and Carmen de Areco in the Province of Buenos Aires.

Foreign legal entities or individuals may not own rural land that contain or are located ~~beside~~next to permanent and significant bodies of water to be determined by the Federal Hydrological Council (Consejo Hídrico Federal) and may also include hydrological works and projects considered strategic and ofinvolving the public interest.

Acquisition of rural land will not be deemed as an “investment” under bilateral investment treaties signed by the Argentine Republic, since rural land is deemed as “a non-renewable natural resource”.

The regulatory decrees of Law No. 26,737 provide that no previous authorization certificate is required for certain operations such asas: (i) the transfer of the property or possession rights over real estate properties that were located in an “Industrial Area” or an “Industrial Park”, independently from the acquirer’s nationality, (ii) any modification to the capital stock of companies that own or possess rural land, by public or private instrument, when such modification implies a direct or indirect change of control, provided that such change of control is not made in favor of a new foreign legal entity or individual; and (iii) creation of certain real property rights over the rural land, such as easements.

Upon the issue of Decree No. 820/2016, the effects of Law No. 26,737 have been somewhat mitigated, by setting forth a term of 90 days during which the foreign legal entity or individual that has exceeded the allowed limit of ownership of rural land must reduce their current ownership to the legal limit by (i) transferring or causing any of its controlled legal entities to transfer the amount of rural land that exceeds the legal limit, or (ii) modifying or causing any of its controlled legal entities to modify the type of exploitation awarded to rural lands owned by such foreign legal entity, or (iii) transferring its participation to legal entities that are considered compliant pursuant to the terms of Law No. 26,737.

Law No. 26,737 initially stated that, even though no vested rights could be affected as a result of the application of such law, any act in violation of its provisions would be considered null and void. Decree No. 820/2016 clarified this situation and established that the foreign entities or individuals who owned rural land in excess to the allowed limit of ownership when the Law No. 26,737 came into effect (i) are not obliged to transfer such rural land in excess, and (ii) in the event of transfer of rural lands acquired before Law No. 26,737 ~~was in~~came into force, they can acquire the equivalent to such transferred rural land, provided the legal limits established to the type of exploitation and location. Hence, the application of laws regarding foreign ownership of rural lands does not have an adverse effect on the current rural land owned by our Argentine subsidiaries. However, our Argentine subsidiaries may be prevented from acquiring additional rural land in Argentina, which may adversely affect our financial condition and results of our operations.

~~Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina.~~

In the past, inflation has materially undermined the Argentine economy and the government’s ability to create conditions that would permit stable growth. High inflation may also undermine Argentina’s foreign competitiveness in international markets and adversely affect economic activity and employment, as well as our business and results of operation. In particular, the profit margin on our services is impacted by the increase in our costs in providing those services, which is influenced by wage inflation in Argentina, as well as other factors.

According to data published by the INDEC, the CPI increased 23.9% in 2014 and 11.9% as of October 2015 (for the first nine months of year 2015). In November 2015, the INDEC suspended the publication of the CPI. According to the most recent publicly available information based on data from the Province of San Luis, the CPI grew by 31.6% in 2017 and by 31.4% in 2018. According to the most recent publicly available information based on data from the City of Buenos Aires, the CPI grew by 29.6% in 2017 and by 41.0% in 2018. After implementing certain methodological reforms and adjusting certain macroeconomic statistics based on these reforms, in June 2016 the INDEC resumed its publication of the CPI. According to the INDEC, the monthly CPI increase in 2017 was 1.3% in January, 2.5% in February, 2.4% in March, 2.6% in April, 1.3% in May, 1.2% in June, 1.7% in July, 1.4% in August, 1.9% in September, 1.5% in October, 1.4% in November and 3.1% in December. In 2018, the monthly CPI increase was 1.8% in January and 2.4% in February. INDEC has also published inflation figures for the Wholesale Price Index (Índice de Precios Internos al por Mayor or “WPI”), for 2018, reporting a monthly increase of 4.6% in January and 4.8% in February. The WPI for the year ended December 31, 2017 showed an annual increase of 18.8%. The WPI for the year ended December 31, 2016 showed an annual increase of 34.5%. The WPI for the Transition Period showed an increase of 7.4%.

~~Uncertainty surrounding future inflation rates may have an adverse impact for Argentina in the long-term credit market.~~

The Argentine economy has experienced significant volatility in past decades, including numerous periods of low or negative growth and high and variable levels of inflation and currency devaluation. Inflation remains a challenge for Argentina given its persistent nature in recent years and also considering its high levels during 2018. No assurances can be given that the rate of growth experienced over past years will be achieved in future years or that the national economy will not suffer recession. If economic conditions in Argentina were to slow down, or contract, if inflation were to accelerate further, or if the Argentine government's measures to attract or retain foreign investment and international financing in the future to incentivize domestic economy activity are unsuccessful, such developments could adversely affect Argentina's economic growth and in turn affect our financial health and results of operations.

The Argentine Government has announced its intention to reduce the primary fiscal deficit as a percentage of GDP over time and reduce the government's reliance on Central Bank financing. If the measures adopted by the Macri administration are not able to resolve the structural inflationary disruptions of Argentina, the current inflationary levels could subsist and have a negative

impact on the economic and financial conditions of Argentina, and as such affect our operations and financial situation. Inflation can also lead to an increase in Argentina's debt and have an adverse effect on Argentina's ability to service its debt, mainly in the medium and long term when most inflation-indexed debt matures. In addition, weaker fiscal results could have a material adverse effect on the Government's ability to access long term financing, which, in turn, could adversely affect Argentina's economy and financial condition and access to international or domestic capital markets.

Current conditions make the application of IAS 29 for our Argentine subsidiaries mandatory .Accordingly, IAS 29 is applicable for financial statements included in any of our filings with the SEC under the Securities Act or the Exchange Act for periods ending after July 1, 2018. We cannot predict the future impact that the application of IAS 29 and related adjustments will have on our Argentine subsidiaries’ financial statements or the effects on our business, results of operations and financial condition. Also, we cannot predict when the application of IAS 29 will no longer be mandatory. We will to continue to apply IAS 29 until such time as the cumulative three-year inflation rate is equal to or less than 70%.~~See Item 3 - Presentation of financial and other information - Financial reporting in a hyperinflation economy.~~

~~Failure to adequately address actual and perceived risks of institutional deterioration and corruption may adversely affect Argentina's economy and financial condition.~~

A lack of a solid and transparent institutional framework for contracts with the Argentine government and its agencies and corruption allegations have affected and continue to affect Argentina. Argentina ranked 85 of 180 in the Transparency International's 2018 Corruption Perceptions Index and 117 of 190 in the World Bank's Doing Business 2018 report.

As of the date of this annual report, there are various ongoing investigations into allegations of money laundering and corruption being conducted by the Office of the Argentine Federal Prosecutor, including the largest such investigation, known as Los Cuadernos de las Coimas (the "Notebooks Investigation") which have negatively impacted the Argentine economy and political environment. Depending on how long it takes to close these investigations and their results, companies involved in the investigations may be subject to, among other things, a decrease in their credit ratings, claims filed by their investors, and may further experience restrictions in their access to financing through the capital markets, together with a decrease in their income. Additionally, as the criminal cases against the companies involved in the investigations move forward, said companies may be restricted from rendering services or may face new restrictions, due to their customers' internal standards. These adverse effects could restrict these companies' ability to conduct their operating activities and to meet their financial obligations. As a consequence of the above, the number of suppliers available for our operations may be reduced and, as such, we may experience an adverse effect on our commercial activities and results of operations.

Between 2007 and 2014, the inflation index determined by INDEC has been the subject of widespread criticism and extensive discussions in connection with analysis of the Argentine economy. The intervention of the former Argentine government in the INDEC in 2007 and the change in the way the inflation index was measured have resulted in disagreements between the former Argentine government and private consultants as to the actual annual inflation rate. The former Argentine government imposed fines on private consultants reporting inflation rates higher than the INDEC data. As a result, private consultants typically shared their data with Argentine lawmakers who opposed the previous government, and who released such data from time to time. The widespread disagreements had the negative effect of eroding public confidence in Argentina’s economy.

Reports published by the International Monetary Fund (“IMF”) in the past state that their staff uses alternative measures of inflation for macroeconomic surveillance, including data produced by private sources, which have shown considerably higher inflation rates than those published by the INDEC since 2007. The IMF has also criticized Argentina for not taking sufficient remedial measures to address the quality of its official data, including inflation and GDP data, as required under the Articles of Agreement of the IMF.

~~In February 2014, the INDEC released a new inflation index, known as National Urban Consumer Price Index (Índice de Precios al Consumidor Nacional Urbano~~) that measured the prices of goods across the country and replaced the previous index that only measured inflation in the urban sprawl of the City of Buenos Aires. Pursuant to these calculations, such new consumer price index rose 23.9% in 2014 and 11.9% during the ten-month period ended October 31, 2015. Even though the new methodology brought inflation statistics closer to those estimated by private sources, material differences between recent official inflation data and private estimates remained during 2015.

However, during December 2015 and January 2016, the new government declared the national statistical system and the INDEC to be in a state of administrative emergency through December 31, 2016. Accordingly, the new head of the INDEC announced the temporary suspension of the publication of official data of prices, poverty, unemployment and GDP until the completion of a full review of INDEC’s policies. Shortly thereafter, the new administration released an alternative CPI index based on data from the City of Buenos Aires and the Province of San Luis. The INDEC resumed its publication of the CPI in June 2016, after implementing certain methodological reforms and adjusting certain macroeconomic statistics on the basis of those reforms. The INDEC also revised GDP data from 2004 through 2015. Among other adjustments, in calculating GDP for 2004, the INDEC made changes to the composition of GDP that resulted in a negative adjustment of approximately 12% for that year. To calculate real GDP for subsequent years based on the revised 2004 GDP, the INDEC used deflators that are consistent with its revised methodology to calculate inflation. By previously understating inflation, the INDEC had overstated economic growth in real terms. The adjustments made by the INDEC lead to a determination of real GDP growth of 48.6% for the period of 2004 to 2015, as opposed to 65% growth in real terms for the same period resulting from the information used prior to June 2016. As a consequence of these reforms, on November 9, 2016, the Executive Board of the IMF lifted its censure on Argentina, noting that Argentina had resumed the publication of data in a manner consistent with its obligations under the Articles of Agreement of the IMF. In March 2018, the Argentine government announced a draft bill to provide INDEC with total autonomy and to transform it into an entity that will guarantee greater statistical independence of the main macroeconomic indicators.

As of the date of this annual report, the impact that these measures and any future measures taken by the new administration with respect to the INDEC will have on the Argentine economy and investors’ perception of the country cannot be predicted. Concern regarding lack of accuracy in the INDEC´s indices could adversely affect investor confidence in the Argentine economy and our ability to access international credit markets to finance our operations and growth.

~~Government intervention in Argentina may have a direct impact on our prices and sales.~~

The Argentine government has in the past set certain industry market conditions and prices. In March 2002, the Argentine government fixed the price for milk after a conflict among producers and the government. In 2005, the Argentine government adopted measures in order to increase the domestic availability of beef and reduce domestic prices. The export tax rate was increased and a minimum weight requirement for animals to be slaughtered was established. In March 2006, sales of beef products to foreign markets were temporarily suspended until prices decreased. Furthermore, in 2007 the Argentine government significantly increased export tax rates on exports of crops. A number of restrictions were also imposed on the grain and oilseed markets that essentially limited the access of traders to exports, resulting in a disparity between domestic and world prices. In March 2012, the Undersecretary of Transport created an “indicative price” for the transportation of grains by road fixed on a quarterly basis. The actual price paid for the road transportation of grains cannot be lower than 5% or higher than 15% of the “indicative price” fixed for the applicable period. In some cases, the imposition of this “indicative price” would produce increases in our transportation costs. In addition, on April 9, 2013, the Secretary of Commerce issued a resolution that established a fixed price for selling liquid hydrocarbons for a six months period. The fixed price would be the highest selling price on the date of issuance of the resolution, in certain regions of the country. Notwithstanding the April 9 resolution, YPF (the Argentine government-controlled oil and gas company) implemented gas price increases that were matched by other oil companies. Due to the increase in the price of the wheat, on July 4, 2013, the Secretary of Commerce issued a resolution mandating wheat producers and distributors to sell their stocks to satisfy the domestic demand, seeking to reduce the wheat price. On January 2014, the Secretary of Commerce launched a new program of price controls called Precios Cuidados. Producers and suppliers committed to fixed prices for more than 300 basic products subject to review on a quarterly basis. As of the date hereof, two of our rice products sold under the trademark “Molinos Ala” and "Apostoles" are subject to this program. Violation of the program may result in sanctions, including fines of up to AR$5,000,000.

The Argentine government may pursue other expropriations or similar interventions such as the one relating to YPF. See “—Risks related to Argentina—The economy of Argentina may be affected by its government’s limited access to financing from international markets.” On December 27, 2012 the Argentine Congress passed Law N° 26,831, known as the new Capital Markets Law, which modifies the public offer regime set forth by Law No. 17,811 as amended. On August 1, 2013 Decree No. 1023/2013, which regulates the Capital Markets Law, was enacted.

The Capital Markets Law modifies the applicable regime of the Capital Markets, including local Stock Exchange and commodities markets, and of the agents and also the powers conferred to the “CNV”. The main amendments introduced refer to the increase in the power of intervention by the CNV over the Exchange Markets and agents entitling the CNV to appoint supervisors with the ability to veto listed companies´ board decisions, and even disband the board of directors for a period of 180 days; and suspend the activities of agents and markets, without prior notice, when the CNV determines that a breach of applicable regulations has occurred. Also the new Capital Markets Law introduces new and more stringent requirements for agents to obtain authorization to operate in the markets which may result in a reduction of the current number of authorized agents operating in the grain markets. In November, 2016, the Argentine executive branch sent a bill to the Argentine Congress to reform the current Capital Markets Law No. 26,831 which, among other changes, proposes the abrogation of these interventionist powers granted to the CNV and generally seeks to modernize the entire regulatory framework applicable to the Argentine Capital Markets, incorporating current international practices to further its development. However, as of the date of this annual report, such bill has not yet been passed.

Moreover, the Argentine government may increase its level of intervention in certain areas of the economy. For example, on May 3, 2012 the Argentine Congress passed Law No. 26,741 providing for the expropriation of 51% of the share capital of YPF, S.A. (“YPF”), the largest Argentine oil and gas company in Argentina, represented by an identical stake of Class D shares owned, directly or indirectly, by Repsol S.A., a Spanish integrated oil and gas company. This particular measure also sparked a strong international condemnation and had a significant negative impact on foreign direct investment in Argentina as well as further impaired the already limited access to international capital and debt markets. In response to the nationalization of YPF by the Argentine government, the European Union Commission threatened with the imposition of commercial sanctions (~~i.e.~~ unilateral tariff preferences to Argentina). However, during February 2014, the Argentine government and Repsol S.A. agreed to a compensation of $5,000 million payable in Argentine sovereign bonds to compensate Repsol S.A. for the seizure of the YPF shares.

Furthermore, on April 1, 2014 the Argentine Tax Federal Authority (“Administración Federal de Ingresos Públicos – AFIP”) issued Resolution No. 3,593/14 which established a “Systematic Registration of Movements and Grains Stocks Regime” (“Régimen de Registración Sistemática de Movimientos y Existencias de Granos”) pursuant to which all persons involved in the commercialization and manufacturing of grains and dairy products registered with the ~~Registro Único de Operadores de la Cadena Agroindustrial~~ (“RUCA” for its acronym in Spanish) must report the stock and stock variations (including locations, transport between the producer´s facilities, etc.) of all grains and other agricultural products (other than those to be applied to sowing) held in inventory or through third parties.

On April 16, 2015, the Argentine Congress passed a law approving the government takeover of the passenger and cargo railways, which became owned by a State-owned company called Ferrocarriles Argentinos Sociedad del Estado. This law is another example of intervention by the Argentine government and may result in higher transportation costs for our products and operations.

Additionally, Decree 1043/2018 established a prior mandatory procedure for dismissals without cause by means of which employers are required to communicate to the Ministry of Production and Labor any dismissal without cause of employees hired for an indefinite period of time. The communication must be submitted at least ten business days before the date of notification of the dismissal without cause. During such term the Ministry of Production and Labor may appoint hearings in order to analyze the conditions of the future termination of employment, and summon the employer and the employee, with the representation of the relevant union, to the hearings. The decree will remain in force until March 31, 2019.

Expropriations and other interventions by the Argentine government such as the one relating to YPF can have an adverse impact on the level of foreign investment in Argentina, the access of Argentine companies to the international capital markets and Argentina’s commercial and diplomatic relations with other countries. In the future, the level of governmental intervention in the economy may continue, which may have adverse effects on Argentina’s economy and, in turn, our business, results of operations and financial condition.

Although many of the above measures were adopted or announced by the former Argentine government, we cannot assure you that the Macri administration will not interfere or increase its intervention by setting prices or regulating other market conditions. Accordingly, we cannot assure you that we will be able to freely negotiate the prices of all our Argentine products in the future or that the prices or other market conditions that the Macri administration might impose will allow us to freely negotiate the prices of our products, which could have a material and adverse effect on our business, results of operations and financial condition.

~~Government measures to preempt or respond to social unrest may adversely affect the Argentine economy and our business.~~

Argentina has experienced significant social and political turmoil, including civil unrest, riots, looting, nationwide protests, strikes and street demonstrations. Despite Argentina’s economic recovery and relative stabilization, social and political tension and high levels of poverty and unemployment continue.

Future government policies to preempt, or in response to, social unrest may include expropriation, nationalization, forced renegotiation or modification of existing contracts, suspension of the enforcement of creditors’ rights, new taxation policies, including royalty and tax increases and retroactive tax claims, and changes in laws and policies affecting foreign trade and investment. Such policies could destabilize the country and adversely and materially affect the Argentine economy, and thereby our business, results of operations and financial condition.

~~The Argentine government may order salary increases to be paid to employees in the private sector, which would increase our operating costs.~~

In the past, the Argentine government has passed laws, regulations and decrees requiring companies in the private sector to increase wages and provide specified benefits to employees, and may do so again in the future. Argentine employers, both in the public and private sectors, have experienced significant pressure from their employees and labor organizations to increase wages and to provide additional employee benefits. Due to the high levels of inflation, employees and labor organizations are demanding significant wage increases. In August 2012, the Argentine government established a 25% increase in minimum monthly salary to 2,875 Argentine pesos, effective as of February 2013. The Argentine government increased the minimum salary, to 4,716 in January 2015, to 5,588 Argentine pesos in August 2015, to 6,060 Argentine pesos in January 2016, to 6,810 Argentine pesos in June 2016, 7,560 Argentine pesos in September 2016, 8.060 Argentine pesos in January 2017, 8,860 Argentine pesos in July 2017,9,500 Argentine pesos in January 2018, 10,000 Argentine pesos in July 2018, 10,700 Argentine pesos in September 2018, and to 11,300 Argentine pesos in December 2018. The Argentine government confirmed that the minimum salary will be increased to 12,500 Argentine pesos by June 2019. Recently, the INDEC published data regarding the evolution of salaries in the private and public sectors, which reflects approximately 32.91% and 32.58% salary increases in the private and public sectors, respectively, for the period from November 2015 through December 2018 and approximately 28.3% and 27.2% salary increase in the private and public sectors, respectively from the period from January 2018 to November 2018. During the second half of 2018, labor unions agreed with employers´ associations on 15% salary increases (and such agreements are currently being revised). In addition, on November 12, 2018, the Argentine government issued a decree imposing the payment of an extraordinary non-remuneratory bonus of AR$5,000 to all workers in the private sector, payable in two installments in December 2018 and February 2019.

Due to the high levels of inflation, employers in both the public and private sectors have historically experienced, and currently are experiencing significant pressure from organized labor and their employees to further increase salaries. If, as a result of such measures, future salary increases in Argentine peso exceed the pace of the devaluation of the Argentine pesos, they could have a material and adverse effect on our expenses and business, results of operations and financial condition.

An increase in export and import duties and controls may have an adverse impact on our sales.

~~Since 2002, the~~The Argentine government has historically imposed duties on the exports of various primary and manufactured products, including some of our products. ~~During the last ten years,~~Since then, such export taxes have undergone significant increases, reaching a maximum of 35% in the case of soybean. AsCurrently, soybean are levied at a 33% export duty rate, soybean flour and oil are levied at a 31% duty rate. Most of ~~December 2015,~~other agricultural products -such as fresh fruit and vegetables usually grown in specific regions were set a 0% export duty rate on January 2021.

The Solidarity Law (passed in 2019) established new caps for the ~~Macri administration eliminated farm export duties on corn, wheat and local products, while soy export taxes were reduced by 5%~~Fernandez Administration to ~~30% and 27% for most soybean products.~~

~~On January 2, 2017, the Macri administration enacted a further reduction of~~determine the export ~~duties on soybean and soybean products, including a monthly 0.5% cut on the export duties~~duty rate ~~starting on January 2018 and until December 2019 has been set. However, on September 4, 2018, Decree No. 793/2018 was published which establishes an export duty of 12% on the export for consumption~~ of all ~~merchandise~~goods included in the tariff positions of the Common Mercosur Nomenclature ~~through~~until December 31, ~~2020. This~~2021. Even

though most goods are capped to a maximum 15% ad valorem export duty ~~may not exceed 4 pesos per U.S. dollar of the taxable value or the official FOB price, as applicable.~~rate, there are special lower caps for some agricultural products from specific regions and industrial goods. The Fernandez Administration also implemented on November 2020 a compensation program for small-scale soybean producers. Additionally, ~~on December 4, 2018, the current Argentine administration imposed~~ duties on the exportation of services ~~(and not only goods) and allowed the Executive Power~~were set to ~~impose~~a 5% ad valorem export ~~duties of up to 30% until December 31, 2020, with a maximum rate of 12% for services and goods that were not subject to export duties before September 2, 2018.~~duty rate.

~~The Macri administration~~Argentina has also imposed the Import Monitoring System (Sistema Integral de Monitoreo de Importaciones or “SIMI”). Under this new system, importers are required to submit certain information electronically through the SIMI application which, once approved, will be valid for ~~180~~90 calendar days.

In addition, the Macri ~~administration has~~Administration had enacted an import licensing regime that includes automatic and non-automatic licensing for imports. Automatic import licensing provides that the importer is only required to submit information through the SIMI as well as provide other certification related to the imported goods. Non-automatic licensing provides that the authorities have a 10-day period to either approve or reasonably reject the import license requested based on its effect on local businesses, in addition to the other import requirements that the goods be subject to (SIMI, certifications, etc.).

The current Fernández Administration has determined many more tariff codes to undergo non-automatic import licensing procedures to control the flow of imports of final goods. Most raw materials, input for industries and machinery are mainly subject to automatic licensing. In late 2020, many importers have suffered either a delay or blockage on their non-automatic import license applications and started seeking judicial relief to lift the blockages of their prospective imports.

Notwithstanding the above, we cannot assure you that there will not be further increases in the export taxes or that other new export taxes or quotas will not be imposed. The imposition of new export taxes or quotas or a significant increase in existing export taxes or the application of export quotas or the imposition of regimes that aim to restrict or control imports and exports could adversely affect our financial condition or results of operations.

Exchange controls ~~could~~ restrict the inflow and outflow of funds in ~~Argentina.~~

~~Beginning in 2001~~ Argentina ~~imposed exchange controls~~ and ~~transfer restrictions~~may substantially ~~limiting~~limit the ability of ~~enterprises~~companies to retain or obtain foreign currency or make payments abroad.

Although some of these restrictions were subsequently eased, in June 2005, the Argentine government issued Decree No. 616/2005, which established new controls on capital inflows that could result in reduced availability of international credit, including the requirement, subject to certain exceptions, that 30% of all funds remitted to Argentina remain deposited in a domestic financial institution for 365 days in a non-interest bearing account. In addition, since the second half ofBetween 2011 and 2015 until President Macri took office, the Argentine government increased ~~certain~~ controls and restrictions on the ~~incurrence~~sale of foreign ~~currency-denominated indebtedness,~~currencies and the acquisition of foreign ~~currency and foreign~~ assets by ~~local residents. For example,~~Argentine residents, limiting the possibility of transferring funds abroad. Through a combination of foreign exchange and tax regulations, the Fernández de Kirchner administration significantly curtailed access to the FX Market by individuals and private-sector entities. In addition, during the last few years under the Fernández de Kirchner administration, the Argentine Central Bank ~~adopted~~exercised a de facto prior approval for certain foreign exchange transactions otherwise authorized to be carried out under the applicable regulations, ~~that (i) shortened~~such as dividend payments or repayment of principal of intercompany loans as well as the ~~period for a borrower~~payments related to ~~convert~~import of goods, by means of regulating the amount of foreign ~~currency-denominated indebtedness into~~currency available to companies to conduct such transactions. The number of exchange controls introduced in the past and in particular after between 2011 and 2015 during the Fernández de Kirchner administration gave rise to an unofficial U.S. dollar trading market, and the unofficial Argentine ~~pesos, (ii) shortened a borrower’s window~~peso to U.S. dollar exchange rate in such market differed substantially from the official Argentine peso to U.S. dollar exchange rate. Due to the foreign exchange crisis generated in August 2019 and the continued reduction of the Argentine Central Bank’s foreign currency reserves, since September 1, 2019 the Argentine government has reinstated rigid exchange controls and transfer restrictions, substantially limiting the ability to obtain foreign currency or make certain payments or distributions out of Argentina (see "Item 10 - Additional Information-Exchange Controls”).

In response to the re-imposed foreign exchange restrictions, an unofficial U.S. dollar trading market developed again in which the Argentine peso-U.S. dollar exchange rate differed substantially from the official Argentine peso-U.S. dollar exchange rate in the FX Market.

In addition, access to foreign currency and its transfer outside of Argentina can also be obtained and carried out through capital markets transactions denominated Blue-Chip Swap, subject to certain restrictions, which is significantly more expensive than acquiring foreign currency in the local foreign exchange market in connection with a prepayment of scheduled interest payments in respect of foreign currency-denominated indebtedness and (iii) suspended the ability of local residents to access the local exchange market for the acquisition of foreign currency.FX Market.

Notwithstanding the measures adopted by the ~~Macri administration since December 2015, which lifted virtually all exchange and capital controls , the~~ Argentine government recently, it may impose ~~or increase~~additional exchange controls, or transfer restrictions, inrestrictions on the ~~future~~free movement of capital, and may implement other measures in response to capital flight or a significant depreciation of the Argentine ~~peso. These restrictions and requirements, and any additional exchange controls and transfer restrictions in the future that may be adopted by the Argentine government, could~~peso, which would adversely affect our financial condition and the results of our ~~operations, or the market price of our common shares.~~operations. In addition, other exchange controls could in the future further impair or prevent the conversion of anticipated dividends, distributions, or the proceeds from any sale of equity holdings in Argentina ~~as the case may be,~~ from Argentine pesos into U.S. dollars and the remittance of the U.S. dollars abroad. These restrictions and controls could further interfere with the ability of our Argentine subsidiaries to make distributions in U.S. dollars to us and thus our ability to pay dividends in the future. Such

measures could lead to renewed political and social tensions, and could undermine the Argentine government’s public finances, which could adversely affect Argentina’s economy and prospects for economic growth and, consequently, adversely affect our business and results of operations, and could impair our ability to make dividend payments.

Changes in the Argentine tax laws may adversely affect the results of our operations, financial condition and cash flows.

On December 29, 2017, the Argentine Government enacted Law No. 27,430 (the "Tax Reform Law"), a comprehensive tax reform which became effective on January 1, 2018. Specifically, Law No. 27,430 introduced amendments to income tax (both at corporate and individual levels), value added tax, tax procedural law, criminal tax law, social security contributions, excise tax, tax on fuels and tax on the transfer of real estate. In addition, the Solidarity Law, introduced important tax modifications -among other provisions- which modified the Tax Reform Law, provided measures regarding employer contributions, applicable rates for foreign goods and created, in regards to the Tax for an Inclusive and Solidary Argentina, an 8% rate for the acquisition of digital services and a 30% rate for the acquisition services abroad and passenger transport services destined outside the country (see “—The impact of the Argentine congressional and presidential elections on the future economic and political environment of Argentina remains uncertain”).

The Tax Reform Law introduced several amendments in connection with federal income tax, such as the progressive reduction of the tax rate on corporate level from 35% to a 30% applicable to the fiscal periods starting on January 1, 2018 until December 31, 2019; and to a 25% applicable to the fiscal periods starting on January 1, 2020, ~~onwards,~~ and established that dividends or other profits distributed to Argentine resident individuals and foreign beneficiaries would be subject to taxation. Therefore, as of January 1, 2018, income tax on Argentine resident companies and branches of non-Argentine entities applies in two stages: (i) a first stage is charged at the corporate level (at a tax rate of 30% or 25%, depending on the fiscal period involved, as explained above); and (ii) a second stage is charged at the shareholder or owner level ~~-when being~~- in respect of an Argentine resident individual or a foreign beneficiary- (at a tax rate of 7% or 13%, according to the fiscal period from which the distributed profit derived). Such tax treatment was amended by the Solidarity Law, which established: (i) the suspension up to fiscal years to be initiated as of January 1, 2021 inclusive, of the 25% corporate income tax rate and of the 13% tax rate applicable on dividends; and that (ii) on such periods of suspension, the applicable rate on corporate income tax will be of 30% and the applicable rate on dividends will be of 7%. The Argentine Congress is currently discussing a draft bill to modify the following aspects: (i) amend the corporate tax rate for Argentine entities, by applying a sliding scale from 25% to 35%, depending on the accumulated net income obtained during the given year; and (ii) regardless of the applicable corporate tax rate, in all cases, dividends or profits will be levied at a 7% tax rate. If the bill is approved by the Argentine Congress, such tax treatment would be applicable for fiscal years starting as of January 1, 2021.

The Tax Reform Law eliminated the equalization tax, which levied distributions made out of previously untaxed income, was eliminated. The sale, exchange or disposition of shares and other securities not trading in, or listed on, capital markets and securities exchanges by resident individuals and foreign beneficiaries in general is subject to tax at a rate of 15%. Non-residents can opt to be taxed at a rate of 15% on the net gain or 13.5% on the gross amount of the transaction, at the option of the seller.

These and other changes in the Argentine tax laws could adversely affect our operations, financial condition and cash flows.

Risks Related to Brazil

The measures taken or to be implemented by the Brazilian government in response to the COVID-19 pandemic may cause adverse effect on our business and operations.

In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. This pandemic, as well as the reality or fear of any other adverse public health developments, could adversely and materially affect, among other things, our manufacturing and supply chain operations, including due to the reduction or closure of our production units and the interruption of the supply of raw materials (see “— Risks Related to Our Business and Industries-The COVID-19 pandemic may have an adverse effect on our business and operating results”).

In this regard, the Brazilian federal, state and municipal governments and other authorities have enacted a number of rules to address the potential impacts of the COVID-19 outbreak. Considering the possible outcomes thereof, we may be exposed to additional risks, which include:

(i) to contain or delay the spread of COVID-19, the Brazilian Ministry of Health, as well as several state and municipal authorities have adopted or recommended social distancing measures, which may ultimately result in severe fines/penalties;

(ii) in March 2020, the Brazilian government created a Crisis Committee to Monitor the Impacts of COVID-19 in Brazil. Since then, it has announced several measures (tax or otherwise) to address the effects of COVID-19 in Brazil. Likewise, the Brazilian Congress is currently discussing several measures to increase the Brazilian government’s revenues, such as imposing new taxes, revoking tax benefits and increasing the rates of current taxes; and

(iii) States and municipalities may also revoke tax benefits and/or increase the rates of current taxes to increase its revenues. See “— We receive certain tax benefits from Brazilian Tax Authorities which we cannot assure will be maintained or renewed;”.

These new rules, if approved, may have a material adverse impact on our results of operations.

Further, the ongoing COVID-19 pandemic and any possible future outbreaks of viruses may have a significant adverse effect on us. Firstly, a spread of such diseases amongst our employees, as well as any quarantines affecting them or our facilities could adversely impact the productivity of our personnel and thereby affect our operations, which can impact the quality and continuity of our activities and, ultimately, our reputation. Secondly, the current COVID-19 pandemic and any possible future outbreaks of viruses may have an adverse effect on our suppliers and/or transportation companies used to distribute our products. Thirdly, any quarantines or spread of viruses may adversely affect the demand of our products from end-consumers.

It is also possible that our commercial contracts, including power supply agreements, could be affected by adverse impacts derived from the COVID-19 pandemic, since the parties thereto may not comply with their contractual obligations. As the COVID-19 pandemic will most likely be considered as an act of God or force majeure event by Brazilian courts, parties may justify their nonperformance and request (i) termination without penalties; (ii) adjustment and/or release of contractual obligations; (iii) adjustment and/or release of the effects of arrears; and/or (iv) adjustment and/or release of penalties for breach of contract, which, in any case, may cause a negative impact on our results of operations.

Additionally, our operations may be adversely affected by the wider macroeconomic effect of the ongoing COVID-19 pandemic. Currently, it is expected there be a recession or diminishing growth in several countries, including Brazil, due to the freeze of the economic activities. Although the economic scenario is still uncertain, the updated forecast for the 2021 Brazilian GDP points out to a growth, following a 4.1% recession in 2020. The final effects of the COVID-19 pandemic could have substantial negative impact on the countries where we operate. Any negative effect on the economy, particularly in the countries that we operate, may decrease incomes and the demand for our products. Lastly, in case of an economic downturn, the price of our common shares may be adversely affected.

Moreover, Brazil is experiencing political disagreements among governments and other authorities in connection with the measures that have been adopted and the ones that might be implemented.

In March 2021, after a second wave of the pandemic, Brazil has become the country with the current highest daily death toll in the world. The Brazilian government cannot affirm confirm if the vaccination will be concluded in 2021 and when and the pandemic will be under control. Therefore, these institutional conflicts since the beginning of COVID-19 as well as the

potential adoption of measures against WHO’s recommendations may lead to political turmoil and, ultimately, civil riots and impeachment process, which all may potentially negatively impact our businesses and operations in Brazil .

Lastly, there is considerable uncertainty regarding the possible outcomes of the COVID-19 pandemic and we cannot assure that other measures will be implemented to mitigate the impacts of the COVID-19 and whether they will mean tougher restrictions or limitations that could affect our operations. In addition, the deterioration of global economic conditions as a result of the pandemic may ultimately decrease customer demand for our products and have a material adverse effect on our financial condition and results of operations.

Brazilian economic and political conditions and perceptions of these conditions in international markets have a direct impact on our business and our access to international capital and debt markets, which could adversely affect our results of operations and financial condition.

A significant portion of our operations, properties and customers are located in Brazil. Accordingly, our financial condition and results of operations are substantially dependent on economic conditions in Brazil. The Brazilian economy has experienced significant volatility in recent decades, characterized by periods of low or negative growth, high and variable levels of inflation and currency devaluation. Brazil’s GDP ~~in nominal terms, grew by 6.1% in 2009, 5.1% in 2010,~~ decreased ~~0.1% in 2011, increased 7.5% in 2012, increased 3.9% in 2013, increased 1.9% in 2014, increased 3.0% in 2015, increased 0.1%~~3.3% in 2016, increased 1.3% in 2017, increased 1.3% in 2018, increased 1.1% in 2019 and decreased ~~3.8%~~4.1% in ~~2017.~~2020. We cannot assure you that GDP will increase or remain stable in the future. Future developments in the Brazilian economy may affect Brazil’s growth rates and, consequently, the consumption of sugar, ethanol, and our other products. As a result, these developments could impair our business strategies, results of operations and financial condition. Furthermore, due to the ongoing COVID-19 outbreak, it is expected that Brazil’s GDP for 2021 fiscal year will again be negatively impacted, but may show positive figures at year-end. See "— We may be exposed to risks related to health epidemics, and the COVID-19 in particular, that could adversely impact our ability to operate our business and operating results”.

Historically, Brazil’s political situation has influenced the performance of the Brazilian economy, and political crisis have affected the confidence of investors and the general public, which has resulted in economic deceleration and heightened volatility in the securities issued abroad by Brazilian companies. Future developments in policies of the Brazilian government and/or the uncertainty of whether and when such policies and regulations may be implemented.

Changes in Brazilian tax laws may have a material adverse impact on the taxes applicable to our business and may increase our tax burden.

The Brazilian government frequently implements changes to the Brazilian tax regime that may affect us and our clients. These changes include changes in prevailing tax rates and, occasionally, imposition of temporary taxes, the proceeds of which are earmarked for designated Brazilian government purposes. Some of these changes may result in increases in our tax payments, which could adversely affect industry profitability and increase the prices of our products, restrict our ability to do business in our existing and target markets and cause our financial results to suffer.

Over the past years Brazil has faced an economic recession and the Government is adopting fiscal adjustment measures. Any fiscal adjustment is complex and involves radical and unpopular measures. The Minister of Finance has also been raising the possibility of increasing or creating new taxes. For example, the Brazilian government may reduce or increase at any time through a presidential decree the rates of the tax levied on financial operations, such as credit transactions (“IOF/Credit”), foreign exchange transactions (“IOF/Exchange”), derivative securities transactions (“IOF/Securities”), among other taxable events. On March, 30, 2017, a presidential decree was published in order to introduce a 0.38% rate of the IOF/Credit on some loan transactions, such as credits provided by cooperatives, which were previously subject to a zero percent rate.

It is also common for taxpayers to file suits for the declaration that a certain tax is illegal or unconstitutional. Such cases where the final decision is favorable to taxpayers, a situation that occurs very frequently. Accordingly, the Brazilian Government may propose changes in the tax legislation in order to increase rates, tax basis and/or to create new taxes.

The effects of these changes and any other change that could result from the enactment of additional legislation cannot be quantified. We cannot assure you that we will be able to maintain our projected cash flow and profitability following any increases in Brazilian taxes applicable to us and our operations.

We receive certain tax benefits from Brazilian Tax Authorities which we cannot assure will be maintained or renewed.

We receive certain tax benefits by virtue of our production facilities and investment projects in underdeveloped regions in Brazil. We also benefit from tax incentives based on state law, which may become subject to legal challenges based on the argument that the benefits we receive require the unanimous approval of the Brazilian National Board of Financial Policy (Conselho Nacional de Politica Fazendaria), or the CONFAZ, a federal agency composed of the state treasurers of each state. Our main tax benefit of the ICMS (circulation tax for goods and services) from the state of Mato Grosso do Sul (Ivinhema and Angélica Mill) was renewed until ~~2028.~~2032.

We cannot assure you that the tax incentives we currently benefit from will be maintained, renewed or that we will obtain new tax incentives on favorable terms. In the event we fail to comply with specific obligations to which we are subject in connection with the tax benefits described above, such benefits may be suspended or cancelled, or we may be required to pay the taxes due in full, plus penalties, which may adversely affect us. Additionally, we cannot assure you that we will be able to renew these tax benefits when they expire, or to obtain additional tax benefits under favorable conditions. State and federal governments frequently

implement changes to the tax regimes, such as changes in tax rates, that may adversely affect us or our customers. If our current tax benefits are cancelled or not renewed, we may be materially adversely affected.

Widespread corruption and fraud relating to ownership of real estate may adversely affect our business, especially our land transformation business.

Under Brazilian Legislation, real property ownership is normally transferred by means of a transfer deed, and subsequently registered at the appropriate Real Estate Registry Office under the corresponding real property record. There are uncertainties, corruption and fraud relating to title ownership of real estate in Brazil, mostly in rural areas. In certain cases, the Real Estate Registry Office may register deeds with errors, including duplicate and/or fraudulent entries, and, therefore, deed challenges frequently occur, leading to judicial ~~actions.~~actions and police investigations. Property disputes over title ownership are frequent in Brazil, and, as a result, there is a risk that errors, fraud or challenges could adversely affect us.

Social movements and the possibility of expropriation and constitution of public easement may affect the normal use of, damage, or deprive us of the use of or fair value of, our properties.

Social movements, such as Movimento dos Trabalhadores Rurais Sem Terra and Comissão Pastoral da Terra, are active in Brazil and advocate land reform and mandatory property redistribution by the Brazilian government. Land invasions and occupations of rural areas by a large number of individuals is common practice for these movements, and, in certain areas, including those in which we have invested or are likely to invest, police protection and effective eviction proceedings are not available to land owners. As a result, we cannot assure you that our properties will not be subject to invasion or occupation by these groups. A land invasion or occupation could materially impair the normal use of our lands or have a material adverse effect on our results of operations, financial condition or the value of our common shares. In addition, our land may be subject to expropriation by the Brazilian government. Under Article 184 of the Brazilian Constitution, the Brazilian government may expropriate land that is not in compliance with mandated local “social functions”. A “social function” is defined in Article 186 of the Brazilian Constitution as (i) rational and adequate exploitation of land; (ii) adequate use of natural resources available and preservation of the environment; (iii) compliance with labor laws; and (iv) exploitation of land to promote welfare of owners and employees. If the Brazilian government decides to expropriate any of our properties, our results of operations may be adversely affected, to the extent that potential compensation to be paid by the Brazilian government may be less than the profit we could make from the sale or use of such land. Disputing the Brazilian government’s ~~(*)~~ expropriation of land is usually time-consuming and the outcomes of such challenges are uncertain. In addition, we may be forced to accept public debt bonds, which have limited liquidity, as compensation for expropriated land instead of cash.

Moreover, along with the expropriation rights, the Brazilian legislation also confers to the Government (or the Concessionary of public services) the power to constitute public easements over third-parties real estate properties. Public easements are commonly used in those situations which the infrastructure project requires the use of a portion of several real estate properties, mostly in rural areas, such as the installation of transmission lines or oil and gas pipelines.

Public easement also requires the payment of a fair and prior indemnification, which authorizes the government (or concessionary of public services) to use such property for public interest. The institution of public easement shall observe the same procedure for expropriation of real estate property. However, unlike expropriation, the public easement does not remove the property from the owner's estate, but only creates the right of using the property or part of it. The constitution of a public easement will prevent the use of the part of the property and our results of operations may be adversely affected if such easement is constituted in into the liquidity area of our farmland holdings.

Brazilian rules concerning foreign investment in rural properties may adversely affect our investments.

Brazilian Federal Law No. 5,709, effective October 7, 1971 (“Law 5709”) established certain restrictions on the acquisition of rural property by foreigners, including that (i) foreign investors may only acquire rural properties in which agricultural, cattle-raising, industrial or colonization projects are going to be developed as approved by the relevant authorities; (ii) the total rural area to be acquired by a foreign investor cannot exceed one quarter of the surface of the municipality where it is located, and foreigners with the same nationality may not own, cumulatively, more than 10% of the surface of the municipality in which it is located; and (iii) the acquisition or possession (or any in rem right) by a foreigner of rural property situated in an area considered important to national security (i.e. land located at or near the Brazilian border) must be previously approved by the General Office of the National Security Council (Secretaria-Geral do Conselho de Segurança Nacional). Pursuant to Article 23 of Law No. 8,629, of February 25, 1993 (“Law 8629”), the restrictions mentioned in items (i) and (ii) above established by Law 5709 are also applicable for rural lease agreements executed by foreigners. “Parcerias Agrícolas” (agriculture partnerships agreements) have not been subject to these restrictions. ~~Although, a broader interpretation of the existing regulations could have also included these agreements within the limitations for foreigners, the~~The Federal General Attorney’s Office (“AGU”) on October 8, 2012 issued a legal opinion 005/2012, pursuant to which the AGU confirmed the understanding that the “Parcerias Rurais” are not subject to the restrictions or limitations of Law 5709. In addition, pursuant to Law 8629, the acquisition or lease by a foreigner of a rural property exceeding 100 módulos de exploração indefinida – “MEI,” a measurement unit defined by the Regional Superintendence of the National Institute of Colonization and Land Reform ~~(Superintendencia~~(Superintendência Regional do Instituto Nacional de Colonizaçaoão e Reforma Agrária – “INCRA”) must be previously approved by the Brazilian National Congress. Law 5709 also establishes that the same restrictions apply to Brazilian companies that are directly or indirectly controlled by foreign investors. Any acquisition or lease of rural property by foreigners in violation of the terms of Law 5709 would be considered null and void under Brazilian law.

Since the enactment of the Brazilian Constitution in 1988, the consensus view was that the restrictions imposed by Federal Law 5709 on the acquisition or lease of rural property above-mentioned did not apply to Brazilian companies controlled by foreigners, pursuant to legal opinion No. GQ-22, issued by the AGU in 1994, which was ratified by legal opinion No. GQ-181, also issued by the AGU in 1998. The Brazilian Constitution and its amendments, in particular Constitutional Amendment No. 6,

of August 15, 1995, provides that (i) no restrictions on the acquisition of rural land in Brazil should apply to Brazilian companies; and (ii) any company incorporated and headquartered in Brazil and controlled by foreign investors must receive the same treatment as any other company incorporated and headquartered in Brazil and controlled by Brazilian investors. However, the Brazilian Justice National Council issued an Official Letter on July 13, 2010 addressed to all the Brazilian local State Internal Affairs Bureaus in order for them to adopt procedures within sixty (60) days and instruct the local State Notary and Real Estate Registry Offices to observe the restrictions of the Brazilian law on the acquisitions of rural land by Brazilian companies with foreign equity holders. Thereafter, on August 19, 2010, the AGU revised its prior opinion, and published a new legal opinion which: (i) revoked the AGU’s legal opinions No. GQ-22 and GQ-181; and (ii) confirmed that Brazilian entities controlled by foreigners should be subject to the restrictions described above, and transactions entered into by foreigners in connection with the acquisition of rural properties would be subject to approval from INCRA, the Ministry of Agrarian Development and the Brazilian National Congress, when applicable. This revised opinion was ratified by the President of Brazil and published in the Official Gazette of the Federal Executive on August 23, 2010, becoming effective as of such date. We believe that the acquisitions of rural properties by Brazilian companies directly or indirectly controlled by foreigners registered in the appropriate real estate registry prior to August 23, 2010 are not affected by the AGU’s legal opinion. As a confirmation of such understanding, pursuant to the Joint Normative Ruling N. 1 issued on September 27, 2012 by the Ministries of: (i) Agricultural Development; (ii) Agriculture, Cattle-raising and Supply; (iii) Industry Development and Foreign Commerce; and (iv) Tourism (the “Joint Normative Ruling N. 1”); and the Normative Ruling/IN INCRA No.76, issued on August 23, 2013, a Brazilian company controlled by foreign individuals or companies which acquired or leased rural properties, by means of an act or agreement entered into from June 7, 1994 and August 22, 2010, may register such property before the National System of Rural Registry (Sistema Nacional de ~~Catastro~~Cadastro Rural-SNCR), without any administrative sanction. However, as of said date, the acquisition and leasing of rural land in Brazil, including through corporate transactions, will be subject to the above-mentioned restrictions, and will require several additional layers of review and approvals, which may be discretionary (including the approvals from INCRA, Ministry of Agrarian Development and the Brazilian National Congress, when applicable), burdensome and time consuming. Additionally, the Joint Normative Ruling N. 1 sets forth the administrative procedures applicable to requests for authorization for the acquisition or lease of rural properties by foreign investors pursuant to Law 5709. Under the Joint Normative Ruling, in order to obtain the authorization for the acquisition or lease of rural properties, foreign investors must present a project proposal to the INCRA, containing: (i) the rationale for the relationship between the property to be acquired or leased and the project size; (ii) physical and financial schedule of the investment and implementation of the project; (iii) use of official credit (governmental funds) for the total or partial finance of the project; (iv) logistic viability of the execution of the project and, in case of an industrial project, proof of compatibility between the local industrial sites and the geographic location of the lands; and (v) proof of compatibility with the criteria established by the Brazilian Ecological and Economical Zoning ~~(Zoneamento~~(Zoneamento Ecológico ~~Econó~~Econômico do Brasil – ZEE), relating to the location of the property.

While we conduct our operations in Brazil through local subsidiaries, we would be considered a foreign controlled entity within the meaning of the restrictions described above. Therefore, if we are not able to comply with these restrictions and obtain the required approvals in connection with future acquisitions or lease transactions, our business plan, contemplated expansion in Brazil and results of operations will be adversely affected.

Furthermore, there is currently proposed legislation under review in the Brazilian National Congress regarding the acquisition of rural land by Brazilian companies controlled by foreign holders, which if approved may further limit and restrict the investments of companies with foreign equity capital in rural land in Brazil. Such further restrictions, if adopted, may place more strain on our ability to expand our operations in Brazil.

The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy, which, combined with Brazilian political and economic conditions, may adversely affect us.

We may be adversely affected by the following factors, as well as the Brazilian government’s response to these factors:

•economic and social instability;

•increase in interest rates;

•exchange controls and restrictions on remittances abroad;

•restrictions and taxes on agricultural exports;

•exchange rate fluctuations;

•inflation;

•volatility and liquidity in domestic capital and credit markets;

•expansion or contraction of the Brazilian economy, as measured by GDP growth rates;

•allegations of corruption against political parties, elected officials or other public officials, including allegations made in relation to the ~~”Car~~“Car Wash Operation” (Operação Lava-Jato) investigation;

•government measures aimed at controlling the COVID-19 outbreak;

•government policies related to our sector;

•fiscal or monetary policy and amendments to tax legislation; and

•other political, diplomatic, social or economic developments in or affecting Brazil.

Historically, the Brazilian government has frequently intervened in the Brazilian economy and has occasionally made significant changes in economic policies and regulations, including, among others, the imposition of a tax on foreign capital entering Brazil (IOF tax), changes in monetary, fiscal and tax policies, currency devaluations, capital controls and limits on imports. The administration is currently facing domestic pressure to retreat from the current macroeconomic policies in an attempt to achieve higher rates of economic growth. In addition, the Brazilian government ~~is proposing~~has discussed the creation of a tax on financial transactions, including wire transfers, (the so-called “CPMF”) in order to improve the fiscal situation of the ~~country.~~country or to increase the IOF taxation. We cannot predict which policies will be adopted by the Brazilian government and whether these policies will negatively affect the economy or our business or financial performance.

The Brazilian economy has been experiencing a slowdown –over the past years and the Brazil’s GDP growth ~~rates were 7.5%, 3.9%, 1.9%, 2.7%, and 0.1%~~has fluctuated over the past few years, with a growth of 3.0% in ~~2010, 2011,~~ 2013, an increase of 0.5% in 2014, and ~~2015, respectively.GDP decreased 3.8%, 3.6%~~a contraction of 3.5% in 2015 and 3.3% in 2016. In 2017, ~~respectively~~2018 and ~~has shown growth rate in 2017~~2019 Brazilian economy increased 1.3%, 1.3% and 1.1%, respectively. In 2020, there was a decrease of ~~1.0%~~4.1%. Inflation ~~unemployment~~ and ~~interest rates~~unemployment have increased more recently and the Brazilian Real has weakened significantly in comparison to the U.S. dollar. ~~The~~Although the scenario still uncertain, particularly due to the COVID-19 outbreak, the market expectations for ~~the years 2018 and 2019 is~~2021 are that the Brazilian economy will ~~continue to slow down and GDP will decrease.~~experience a growth in GDP. Our results of operations and financial condition may be adversely affected by the economic conditions in Brazil.

Allegations of political corruption against the Brazilian government and the Brazilian legislative branch could create economic and political instability.

In the past, members of the Brazilian government and of the Brazilian legislative branch have faced allegations of political corruption. As a result, a number of politicians, including senior federal officials and congressmen, resigned and/or have been arrested. ~~Currently, several~~Several members of the Brazilian executive and legislative branches of government ~~are being~~were investigated as a result of allegations of unethical and illegal conduct identified by the Car Wash Operation (Operação Lava-Jato) being conducted by the Office of the Brazilian Federal Prosecutor. On April 17th, 2016 the impeachment process of the Brazilian President was approved by the House of Representatives and, on August 31st, 2016 the process was approved by Senate. The Brazilian President was replaced by the Vice-President until a new election is to be held in 2018. The new President has been trying to implement political and economic reforms related to fiscal and social security matters, and other measures targeting higher economic rates of growth and employment. On November 11, 2017, a reform to Brazil's labor laws (Law No. 13,467/2017) establish that mutually agreed arrangements between an employer and employee in many circumstances prevail over general labor laws.

~~We cannot predict which policies will be adopted by the new Brazilian government and whether these policies will negatively affect the economy and our business or results of operations.~~

~~Additionally, the potential outcome of investigations and proceedings related to the Car Wash Operation (Operação Lava-Jato~~) is unknown, but they have already had an adverse impact on the general market perception of the Brazilian economy and the conclusion of these proceedings or further allegations of illicit conduct could have additional adverse effects in the Brazilian economy. In this sense, theAny political crisis could worsen the economic conditions in Brazil, which may adversely affect our results of operations and financial ~~condition.~~condition

Moreover, the economic and political crisis have resulted in a further downgrading of the country’s long-term credit rating from two of the three major rating companies, placing Brazil 3 notches below the limit of the speculative investment grade level (“junk”). Standard & Poor's downgraded Brazil to BB with a stable outlook in January 2018, Fitch Ratings downgraded to BB- with a stable outlook in February 2018, while Moody’s maintained its Ba2 rating, with a negative outlook since May 2017. ~~According to Standard & Poor's~~Brazil’s sovereign rating is currently rated by the three major risk rating agencies as follows: BB- by S&P and Fitch Ratings and Ba2 by Moody’s. Various major Brazilian companies were also downgraded. Such downgrades have further worsened the ~~downgrade is mainly based on the postponement~~conditions of the ~~constitutional amendment to reform Brazil’s current pension system, considered vital to closing a huge fiscal deficit,~~Brazilian economy and the ~~great uncertainty surrounding~~condition of Brazilian companies, especially those relying on foreign investments.

More recently, in March, 2021, the ~~upcoming presidential elections. Although Brazilian economy is currently showing better results, such as lower inflation~~Organization for Economic Cooperation and ~~higher growth rate, we cannot neither predict which candidate will become~~Development (OECD) set up a permanent monitoring group to check if the ~~next president nor which policies this candidate will adopt and whether these policies will negatively affect the economy or our business or financial performance.~~combat against corruption has been regressing in Brazil.

Restrictions on the movement of capital out of Brazil may impair our ability to receive payments from our Brazilian Subsidiaries and restrict their ability to make payments in U.S. dollars.

In the past, the Brazilian economy has experienced balance of payment deficits and shortages in foreign exchange reserves, and the Brazilian government has responded by restricting the ability of Brazilian or foreign persons or entities to convert reais into foreign currencies. The Brazilian government may institute a restrictive exchange control policy in the future. Any restrictive

exchange control policy could prevent or restrict our Brazilian Subsidiaries’ access to U.S. dollars, and consequently their ability to meet their U.S. dollar obligations and may adversely affect our financial condition and results of operations.

Our business in Brazil is subject to governmental regulation.

Our Brazilian operations are subject to a variety of national, state, and local laws and regulations, including environmental, agricultural, health and safety and labor laws. We invest financial and managerial resources to comply with these laws and related permit requirements. Our failure to do so could subject us to fines or penalties, enforcement actions, claims for personal injury or property damages, or obligations to investigate and/or remediate damage or injury. Moreover, if applicable laws and regulations, or the interpretation or enforcement thereof, become more stringent in the future, our capital or operating costs could increase beyond what we currently anticipate, and the process of obtaining or renewing licenses for our activities could be hindered or even opposed by the competent authorities.

The Brazilian government has been constantly implementing new legal provisions through Provisional Presidential Decrees, which expire and loose effect if not converted into law by the Brazilian National Congress after 120 days. This legislative practice causes uncertainties and may adversely affect our business and operations.

We are also subject to laws and regulations imposed in Brazil and its agencies, including (i) the National Agency of Petroleum, Natural Gas and Biofuels (Agência Nacional do Petróleo, Gás Natural e Biocombustí~~vel(“ANP”)~~vel) and by the Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica~~) (“ANEEL”~~) on account of our production of sugarcane, ethanol and ~~electric energy~~electricity (ii) the Ministry of Agriculture, Breeding Cattle and Supply (~~Ministerio~~Ministério da Agricultura, ~~Pecuaria~~Pecuária e ~~Abastecimento(“MAPA”)~~Abastecimento), on account of our agricultural, sugarcane and ethanol production activities. If an adverse final decision is issued in an administrative process, we could be exposed to penalties and sanctions derived from the violation of any of these laws and regulations, including the payment of fines, and, depending on the level of severity applied to the infraction, the closure of facilities and/or stoppage of activities and the cancellation or suspension of the registrations, authorizations and licenses, which may also result in temporary interruption or discontinuity of activities in our plants, and adversely affect our business, financial ~~status,~~condition and ~~operating results.~~results of operations.

Government laws and regulations in Brazil governing the burning of sugarcane could have a material adverse impact on our business or financial performance.

In Brazil, a relevant percentage of sugarcane is currently harvested by burning the crop, which removes leaves in addition to eliminating insects and other pests. The states of São Paulo, Minas Gerais and Mato Grosso do Sul, among others, have established laws and regulations that limit and/or entirely prohibit the burning of sugarcane and there is a likelihood that increasingly stringent regulations will be imposed by those states and other governmental agencies in the near future.

Such limitations arise from a Brazilian Federal Decree that set forth the complete elimination of the harvest by burning the crop until 2018 in areas where it is possible to carry out mechanized harvest. In the state of Minas Gerais, the deadline imposed by the State Government for the elimination of the harvest by burning the crop is 2014, for areas with declivity lower than 12%, and for areas with declivity higher than 12%, they are subject to an additional term at the discretion of the State Environmental Agency, on a case by case basis. Nevertheless, in the state of Mato Grosso do Sul, the current deadline is 2018 for the elimination of harvest by burning the crop for areas where mechanized harvest can be carried out, as per the Brazilian Federal Decree.

We currently make significant investments to comply with these laws and regulations. Although our plans for the implementation of mechanized harvesting are underway, with 98.3% of our sugarcane harvest mechanized during the 2017-2018 harvest, theThe strengthening of ~~these~~the laws and regulations or the total prohibition of sugarcane burning would require us to increase our planned investment in harvesting equipment, which, in turn, would limit our ability to fund other investments. In addition, the state of São Paulo has imposed an obligation on growers to dedicate a certain percentage of land used for sugarcane cultivation for native or reclaimed forest area. The cost of setting aside this land is difficult to predict and may increase costs for us or our sugarcane suppliers. As a result, the costs to comply with existing or new laws or regulations are likely to increase, and, in turn, our ability to operate our plants and harvest our sugarcane crops may be adversely affected.

Risks Related to a Luxembourg Company

We are a Luxembourg corporation (“société anonyme”) and it may be difficult for you to obtain or enforce judgments against us or our executive officers and directors in the United States.

We are organized under the laws of the Grand Duchy of Luxembourg. Most of our assets are located outside the United States. Furthermore, most of our directors and officers and experts reside outside the United States, and most of their assets are located outside the United States. As a result, you may find it difficult to effect service of process within the United States upon these persons or to enforce judgments outside the United States obtained against us or these persons in U.S. courts, including

judgments in actions predicated upon the civil liability provisions of the U.S. federal securities laws. Likewise, it may also be difficult for you to enforce in U.S. courts judgments obtained against us or these persons in courts located in jurisdictions outside the United States, including actions predicated upon the civil liability provisions of the U.S. federal securities laws. It may also be difficult for an investor to bring an action in a Luxembourg court predicated upon the civil liability provisions of the U.S. federal securities laws against us or these persons. Luxembourg law provides shareholders the right to bring a derivative action on behalf of the Company only in limited circumstances and subject to conditions only admit, shareholders’ right to bring a derivative action on behalf of the company.

Service of process within Luxembourg upon the Company may be possible, provided that The Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters of November 15, 1965 is complied with. As there is no treaty in force on the reciprocal recognition and enforcement of judgments in civil and commercial matters between the United States and the Grand Duchy of Luxembourg, courts in Luxembourg will not automatically recognize and enforce a final judgment rendered by a U.S. court. The enforceability in Luxembourg courts of judgments entered by U.S. courts will be subject prior any enforcement in Luxembourg to the procedure and the conditions set forth in particular in the Luxembourg ~~procedural~~civil procedure code and/or established by court interpretation, which conditions may include the following ~~(subject to court interpretation~~and which may ~~evolve):~~evolve:

• the judgment of the U.S. court is final and duly enforceable (~~exécutoire~~)(exécutoire) in the United ~~States;~~

States and has not been fully enforced in the United States and/or any other jurisdiction;

•Rice business: We own a fully-integrated rice operation in Argentina. We produce irrigated rice in the northeast provinces of Argentina, where the availability of water, sunlight, and fertile soil results in one of the most ideal regions in the world for producing rice at low cost. We believe that we are one of the largest producers of rough (unprocessed) rice in Argentina, producing ~~276,693~~278,348 tons during the ~~2017/2018~~2019/2020 harvest year, which accounted for ~~21%~~23% of the total Argentine production according to Conmasur. We own three rice mills that process our own production, as well as rice purchased from third parties. We produce different types of white and brown rice that ~~are~~is sold both in the domestic Argentine retail market under our own brand; and exported. During the current ~~2018/19~~2020/21 harvest year, we planted ~~40,434~~44,282 hectares of rice.

•Dairy business: We believe that we are a leading dairy producer in South America in terms of our utilization of cutting-edge technology, productivity per cow and grain conversion efficiencies. Through the production of raw milk, we are able to transform forage and grains into value-added animal protein. Our ~~“free-stall”~~free-stall dairies in Argentina allow us to optimize our use of resources (land, dairy cow feed and capital), increase our productivity and maximize the conversion of forage and grain into raw milk. We produced ~~101.3~~145.2 million liters of raw milk during ~~2018,~~2020, with a daily average of ~~8,035~~10,876 milking cows, delivering an average of ~~36.6~~36.5 liters of milk per cow per day. On October, 2017 we completed the construction of our first bio-digestor with a 1.4MWH of installed capacity. The facility generates electricity by burning biogas extracted from the effluents produced by our ~~eight thousand~~ milking cows. ~~On November 3, 2017, we began the energy generation and the delivery of electricity to the local power grid.~~ In addition to increasing revenues and securing our energy requirements, this facility enhances the sustainability of our ~~free stall~~free-stall dairy operation by reducing greenhouse gas emissions, improving the effluent management and concentrating valuable nutrients which are applied back to the fields.

In 2019 we acquired two milk processing facilities which produce UHT and UP milk, milk powder and semi-hard cheese with the potential to produce other products, and with flexibility to sell into both the domestic and export market based on relative profitability. During 2020 our facilities produced 115 million liters of fluid milk, over 3,600 tons of semi-hard cheese and over 18,400 tons of milk powder.

•All Other Segments business: Our all other segments business consists of leasing pasture land to cattle farmers in Argentina. We lease over ~~18.005~~12,735 hectares of pasture land which is not suitable for crop production to third party cattle farmers.

~~The following table sets forth, for the periods indicated, certain data relating to our farming business:~~

Year Ended December 31,
2018 2017 2016
Sales (in thousands of $)
Crops (1) 155,418
197,222
142,124
Rice (2) 95,403
86,479
96,562
Dairy 29,710
37,522
32,897
All Other Segments (3) 1,770
1,338
960
Total 282,301
322,561
272,543

Harvest year
2017/2018 2016/2017 2015/2016
Production (in tons)
Crops (tons) ⁽⁴⁾
685,657
652,201
583,639
Rice (tons) ⁽⁵⁾
276,693
234,831
220,758
Total 962,350
887,032
804,397

Year Ended December 31
2018 2017 2016
Dairy (thousands of liters)⁽⁶⁾
101,300
93,168
92,395

Harvest year
2018/2019 2017/2018 2016/2017 2015/2016
Planted Area (in hectares, including second harvest)
Crops ⁽⁷⁾
189,412
192,438
190,325
178,491
Rice 40,435
40,289
39,728
37,580


~~(1)~~	~~Includes soybeans, corn, wheat, sunflower and cotton, among others.~~


~~(2)~~	~~Sales of processed rice, including rough rice purchased from third parties and processed in our facilities.~~


~~(3)~~	All Other Segments encompasses our remaining interests in the beef Cattle and Coffee businesses. Our beef cattle business consists of over 59 thousand hectares of pasture land that is not suitable for crop production and as a result is leased to third parties for cattle grazing activities.


~~(4)~~	~~Crop production does not include 120,221 tons, 155,300 tons and 136,797 tons, of forage produced in the 2017/2018, 2016/2017 and 2015/2016 harvest years, respectively.~~


~~(5)~~	~~Expressed in tons of rough rice produced on owned and leased farms~~. ~~As of December 31, 2018, the 2018/19 harvest year of rice harvest had not begun.~~


~~(6)~~	~~Raw milk produced at our dairy farms.~~


~~(7)~~	~~Includes~~ ~~6,010~~ ~~hectares, 5,177 hectares, and 5,514 hectares, used for the production of forage during the 2017/18, 2016/2017, and 2015/2016 harvest years, respectively.~~

2. Sugar, Ethanol and Energy ~~Business:~~ Business: We cultivate and harvest sugarcane ~~which~~that is ~~then~~ processed in our own mills to produce sugar, ethanol and energy. As of December 31, ~~2018,~~2020, our total sugarcane plantation consisted of ~~153,690~~176,651 hectares in the states of Mato Grosso do Sul and Minas Gerais, Brazil, of which 13,291 hectares of sugarcane were planted ~~over both~~on owned land, and 163,360 hectares were planted on land leased ~~land.~~from third parties under long term agreements. We currently own and operate three sugar and ethanol mills, UMA, Angélica and Ivinhema, with a total crushing capacity of ~~12.3~~^14.2(1) million tons of sugarcane per year as of December 31, ~~2018.~~2020. UMA is a small but efficient mill located in the state of Minas Gerais, Brazil, with a sugarcane crushing capacity of 1.2⁽²⁾ million tons per year, full cogeneration capacity and an associated sugar brand with strong presence in the regional retail market (Açúcar Monte Alegre). We plant and harvest 99.7% of the sugarcane milled at UMA, with the remaining 0.3% acquired from third parties. UMA is also engaged in the production of organic sugar and during 2020 it exported the product for the first time, after having received the necessary certification to export organic sugar to the European Union. Angélica and Ivinhema are two new, modern mills, which we built in the state of Mato Grosso do Sul, Brazil, with current sugarcane crushing capacities of ~~5.5~~^5.6(3) and ~~5.6~~⁽³⁾7.4(4) million tons per year, respectively. Both mills are located 45 km apart, and form a cluster surrounded by one large sugarcane plantation. Angelica and Ivinhema are equipped with high pressure steam boilers and turbo-generators with the capacity to use all the sugarcane bagasse by-product to generate electricity. Approximately 28% of the electricity generated is used to power the mill and the excess electricity is sold to the local power grid, resulting in the mills having full cogeneration capacity.

For the year ended December 31, ~~2018,~~2020, we crushed ~~11.4~~11.1 million tons of sugarcane. Our mills produce both sugar and ethanol, and accordingly, we have some flexibility to adjust our production (within certain capacity limits that generally vary between 40% and ~~75%~~80%) between sugar and ethanol, to take advantage of more favorable market demand and prices at given points in time. For the year ended December 31, ~~2018~~2020 we produced ~~344,137~~646,981 tons of sugar and ~~675,001~~502,170 cubic meters of ethanol.

AsDuring 2020 we started commercializing carbon credits (CBio) under the RenovaBio program. The RenovaBio is a program designed by the Brazilian government to cut carbon emissions by establishing a mechanism that discourages fossil fuel consumption while encouraging the production of ~~December 31, 2018, our overall sugarcane plantation consisted~~renewable energy. Under this program, a carbon credit market is established in which sellers of ~~153,690 hectares~~fossil fuels have to acquire a mandatory quota of ~~sugarcane~~carbon credits which are defined based on the amount of non-renewable fuels sold by them in the ~~states~~prior year. The issuers of ~~Mato Grosso do Sul~~CBios are biofuel producers whose mills have been certified by the National Agency of Petroleum, Natural Gas & Biofuels (ANP) and ~~Minas Gerais, Brazil,~~awarded a score based on how “green” their mill operation is. Said score acts as a multiplier effect to the amount of ~~which 10,287 hectares~~CBios the mill can issue for every cubic meter of ~~sugarcane were planted~~ethanol it sells. CBios, in turn, are financial instruments traded on ~~owned land, and 143,403 hectares were planted~~Brazil’s B3 platform. Prices are based on ~~land leased from third parties under long term agreements.~~the supply-demand of those credits. During 2020 we sold 492 thousand CBios at an average price of 40.9 BRL/CBio (approximately 7.5 USD/CBio).

⁽¹⁾^{Assuming an average of 5,1515,569 hours}

~~The following table sets forth, for the periods indicated, certain data relating to our sugar, ethanol and energy business:~~

Year Ended December 31,
2018 2017 2016
Sales (In thousands of $)
Sugar 128,377
305,688
330,895
Ethanol 324,661
241,650
211,451
Energy 57,797
62,218
53,995
Other 103
1,061
351
Total 510,938
610,617
596,692

Year Ended December 31,
Production 2018 2017 2016
Sugar (tons) 344,137
567,068
701,060
Ethanol (cubic meters) 675,001
434,015
422,395
Energy (MWh exported) 705,539
712,425
751,037

Year Ended December 31,
Other Metrics 2018 2017 2016
Sugarcane milled (% owned) 94,6%
89 % 91 %
Sugarcane crushing capacity (millions of tons) 12.3
12.3
11.2
% Mechanized harvesting operations — Consolidated 99 % 98 % 98 %
% Mechanized /harvesting operations — Cluster 100 % 100 % 100 %

⁽¹⁾^{(2) Assuming an average of 5,151 crushing4,800 hours}

⁽²⁾^{(3) Assuming an average of 4,805 crushing5,333 hours}

⁽³⁾^{(4) Assuming an average of 5,168 crushing5,920 hours}

3. Land Transformation Business: We acquire farmlands we believe are ~~underdeveloped~~undeveloped or underutilized and, by implementing cutting-edge production technology and agricultural best practices, transform the land to be suitable for more productive uses, enhance yields and increase the value of the land. During the ~~sixteen-year~~eighteen-year period since our inception, we have effectively put into production ~~174,866~~over 171,000 hectares of land that ~~was~~were previously undeveloped or undermanaged. During ~~2018,~~2020, we ~~put into production 508 hectares and in addition~~ continued the transformation process of over ~~132,428~~120,000 hectares we own. We realize and capture land transformation value through the strategic disposition of assets that have reached full development potential. We believe that the rotation of our land portfolio allows us to re-allocate capital efficiently, maximizing our return on invested capital. Our current owned land portfolio consists of ~~231,712~~220,186 hectares, distributed throughout our operating regions as follows: ~~90%~~93% in Argentina, 8%6% in Brazil, and 1% in Uruguay. During the last ~~twelve~~fourteen years, we sold 2225 of our fully mature farms, generating capital gains of approximately ~~$234~~$250 million.

We promote sustainable land use through our land transformation activities, which seek to promote environmentally responsible agricultural production and a balance between production and ecosystem preservation. We do not operate in heavily wooded areas or wetland areas.

From time to time, the company seeks to recycle its capital by disposing of a portion of its fully developed farms. This allows the company to monetize the capital gains generated by its land transformation activities and allocate its capital to acquire land with higher transformation potential or to deploy it in other businesses, thereby enhancing the return on invested capital. Please see also ~~“-Risks~~“Item 3. Key Information-D. Risk Factors —Risks Related to ~~Argentina-Recent~~ Argentina — Changes in Argentine law concerning foreign ownership of rural properties may adversely affect our results of operations and future investments in rural properties in Argentina” and “-Risks Related to Brazil- Recent changes in Brazilian rules concerning foreign investment in rural properties may adversely affect our investments.”

The following table sets forth, for the periods indicated, certain data relating to our land transformation business:


	Year Ended December 31,
	2020	2019	2018
Undeveloped/Undermanaged land put into production (hectares)	1,903	—	508
Ongoing transformation of croppable land (hectares)	123,313	126,854	132,936
Number of farm sold (2)	2	1	2
Hectares sold	5,444	6,082	9,300
Capital gains from the sale of land ($ thousands) (1)	1,500	9,376	36,227

Year Ended December 31,
2018 2017 2016
Undeveloped/Undermanaged land put into production (hectares) 508
1,065
4,274
Ongoing transformation of croppable land (hectares) 132,936
132,428
131,363
Number of farms sold 2
—
—
Hectares sold 9,300
—
—
Capital gains from the sale of land ($ thousands) (1) 35,000
—
—

(1) Includes the sale of non-controlling interests in farmland ~~companies~~companies.

(2) During 2020 we sold Huelen farm amounting to 4,633 hectares and a 811 hectare plot of Abolengo farm.

Our Strengths

We believe the following are our competitive strengths:

•Unique and strategic asset base. We own strategically located farmland and agro-industrial assets in Argentina, Brazil and Uruguay. We engage in continuous improvement of our operations and practices, resulting in the reduction of operating costs and an increase in productivity, ultimately enhancing the value of our properties and generating capital gains. Our operations also benefit from strategically located industrial facilities throughout Argentina and Brazil, increasing operating efficiencies and reducing operating and logistical costs. We are vertically integrated where economics and returns are attractive, where the efficiency of our primary operation is significantly enhanced, or where lack of a competitive market results in the absence of a transparent price determination mechanism. Our diversified asset base creates valuable synergies and economies of scale, including (i) the ability to transfer the technologies and best practices that we have developed across our business lines, (ii) the ability to apply value-adding land transformation strategies to farmland in connection with our farming and sugarcane operations, and (iii) a greater ability to negotiate more favorable terms with our suppliers and customers.

Owning a significant portion of the land on which we operate is a key element of our business model.

•Low-cost production leveraging agro-ecological competitive advantages. Each of the commodity products we grow is produced in regions where agro-ecological conditions provide competitive advantages and which, through the implementation of our efficient and sustainable production model, allow us to become one of the lowest cost producers.

• Our grain and oilseed production is based in the Argentine humid pampas region where soil fertility, regular rainfalls, temperate climate, availability of land and proximity to ports contribute to the reduced use of fertilizers and agrochemicals, high productivity and stable yields and efficient logistics, ultimately resulting in one of the lowest costs per ton of grain produced and delivered.

• Our rice operation is located in the northeast provinces of Argentina, one of the best rice farming regions in the world due to plentiful sunlight, abundant availability of water for low cost irrigation and large potential for expansion.

• Our dairy operation is situated in the Argentine humid pampas region, where cow feed (grains, oilseeds and forage) is efficiently and abundantly produced at a low cost and climate and sanitary conditions are optimal for cow comfort, which enhances productivity, cow reproduction rates and milk quality.

• We produce sugarcane in the center-south region of Brazil, where the combination of soil and climate result in high sugarcane productivity and quality, resulting in one of the lowest production costs in the world, significantly lower than other major sugar producing regions, including India, China, the United States, the United Kingdom, France and Germany.

•Standardized and scalable agribusiness model applying technologicalinnovation. We have consistently used innovative production techniques to ensure that we are at the forefront of technological improvements and environmental sustainability standards in our industry. We are implementing an agribusiness model that consists of specializing our workforce and defining standard protocols to track crop development and control production variables, thereby enhancing management

decision-making. We further optimize our agribusiness model through the effective

implementation and constant adaptation of a portfolio of advanced agricultural and information technologies and best practices tailored to each region in which we operate and commodity we produce, allowing us to improve our crop yields, reduce operating costs and maximize margins in a sustainable manner.

• In our farming business, we use “no-till” technology as the cornerstone of our crop production and have been able to implement this technique in areas within our production regions where it had not been used before. Furthermore, we also utilize crop rotation, second harvests, integrated pest management, balanced fertilization, water management and mechanization. Additionally, we use the ~~innovative~~ silo bag storage method, utilizing large polyethylene bags with a capacity of 180-200 tons which can be left on the field for 12 months, resulting in low-cost, scalable and flexible storage on the field during harvest, which we believe allows us to expand our crop storage capacity at a low cost, generate important logistic and freight savings by moving our production in the off-season when freight fares are lower, and time the entry of our production into the market at optimal price points. See ~~“-Operations~~“ —Operations and Principal Activities-Farming-Storage and Conditioning.”

• In our dairy business, we believe that we were the first company in South America to implement the “free-stall” production system, resulting in more efficient conversion of feed to raw milk and higher production rates per cow compared to our peers in the region.

• In our sugar, ethanol and energy business, our sugarcane cluster, constituted by the Ivinhema and Angélica mills (i) has a highly mechanized planting and harvesting operation, which has increased our sugarcane production, reduced our operating costs and contributed to environmental sustainability by eliminating the need to burn the sugarcane before harvest; (ii) has the capacity to use all the bagasse (a by-product of the sugar and ethanol production process) that is produced, with almost no incremental cost, to cogenerate ~~216~~225 MW ~~per day~~ of clean and renewable ~~electricity;~~energy; (iii) has the capacity of processing ~~51,600~~54,480 tons of sugarcane per day and (iv) has the ability to recycle by-products such as filter cake and vinasse by using them as fertilizers in our sugarcane fields, as well as recycling water and other effluents, generating important savings in input costs and protecting the environment.

•Unique diversification model to mitigate cash flow volatility. We pursue a unique multi-tier diversification strategy to reduce our exposure to production and market fluctuations that may impact our cash flow and operating results. We seek geographic diversification by spreading our portfolio of farmland and agro-industrial assets across different regions of Argentina, Brazil and Uruguay, thereby lowering our risk exposure to weather-related losses and contributing to stable cash flows. Additionally, we produce a variety of products including soybeans, corn, wheat, peanut, sunflower, cotton, barley, sorghum, rice, raw milk, sugar, ethanol and energy, which lowers our risk exposure to potentially depressed market conditions of any specific product. Moreover, through vertical integration in the rice, dairy, sugar, ethanol and energy businesses, we process and transform a portion of our agricultural commodities into branded retail products, reducing our commodity price risk and our reliance on the standard market distribution channels for unprocessed products. Finally, our commercial committee defines our commercial policies based on market fundamentals and the consideration of logistical and production data to develop a customized sale/hedge risk management strategy for each product.

•Expertise in acquiring farmland with transformation and appreciation potential. Since our inception in 2002, we have executed transactions for the purchase and disposition of land for over ~~$652~~$780 million and sold over ~~91,400~~100,000 hectares of developed land, generating capital gains of approximately ~~$234~~$250 million. We believe we have a superior track record and have positioned ourselves as a key player in the land business in South America. Our business development team has gained extensive expertise in evaluating and acquiring farmland throughout South America and has a solid understanding of the productivity potential of each region and of the potential for land transformation and appreciation. To date, we have analyzed over 11 million hectares of farmland spread throughout the regions in which we operate and other productive regions in the world. We have developed a methodology to assess farmland and to appraise its potential value with a high degree of accuracy and efficiency by using information generated through sophisticated technology, including satellite images, rain and temperature records, soil analyses, and topography and drainage maps. Our management team has gained extensive experience in transforming and maximizing the appreciation potential of our land portfolio through the implementation of our agribusiness techniques described above. We also have an extensive track record of rotating our asset portfolio to generate capital gains and monetize the transformation and appreciation generated through our land transformation activities and agricultural operations.

•Experienced management team, knowledgeable employees. Our people are our most important asset. We have an experienced senior management team with an average of more than 20 years of experience working in our sector and a solid track record of implementing and executing large scale growth projects such as land transformations, greenfield

developments of industrial plants, and integrating acquisitions within our organization. Recruiting technically qualified employees at each of our farms and operating sites is a main focus of our senior management and a key to our success.

Our Business Strategy

We intend to maintain our position as a leading agricultural company in South America by expanding and consolidating each of our business lines, creating value for our shareholders. The key elements of our business strategy are:

•Expand our farming business through organic growth, leasing andstrategic acquisitions. We will continue to seek opportunities for organic growth, target attractive acquisition and leasing opportunities and strive to maximize operating synergies and achieve economies of scale in each of our three main farming business areas (crops, rice and dairy). ~~We have identified several organic expansion projects that we are currently undertaking. These projects form part of our strategic growth plan,~~ We believe that the execution risk associated with these projects is not expected to be significant as we are investing in existing operations that are highly efficient. Also our expected results do not rely exclusively on rising commodity prices, which we expect to remain ~~constant~~flat.

◦Crops: On February 2019 we acquired a state-of-the-art peanut processing facility strategically located in Córdoba province, Argentina's largest peanut production area. The plant is equipped with high-performance equipment and is comprised of a shelling plant, a blanching plant and a seed treatment plant. It has a shelling capacity of 70 thousand tons per year, a blanching capacity of 36 thousand tons per year, a storage capacity of 50 thousand tons of inshell and 7.5 thousand tons of finished product (4.2 thousand of which are under cold storage), and a drying capacity of 1.2 thousand tons (at a 14% input moisture). The plant has been granted all the necessary certifications and permits, which allow us to satisfy demand in selective global markets that pay a premium for Argentine peanut because of its superior quality. Our increased focus in the segment, along with the plant acquisition will allow us to reduce costs by (i) saving in tolling and brokerage fees, (ii) consolidating and exporting our production from our on-site customs, (iii) reducing operational risks and (iv) having access to land at ~~current levels.~~

competitive prices by managing crop rotation ourselves, among others.

◦Rice business: We completed investments in the segment, allowing us to increase productivity at the farm level, improve our rice processing and distribution capabilities, and increase the value of main by-products. Some of our investments in this segment include: (i) the implementation of zero level technology in over 30,000 hectares, which has considerably reduced water consumption at the farm, increased yields by providing better germination, uniform irrigation and lower losses during harvest; (ii) the increasing use of our own machinery for planting and harvesting activities, which has allowed us to seek the optimal harvest timing; and (iii) the installment of an on-site dryer at Oscuro farm, which has allowed our grain storage and handling to be more efficient and reduce transportation costs, among others. At the industrial level, we constructed a parboil plant which has allowed us to increase our processing volume and produce a higher margin product.

◦Dairy business: ~~The construction of free stall #3 is completed and we continue to populate the facility.~~ As of ~~the day~~December 2020, we had three fully operative free-stalls temporarily working at 103% of ~~this report,~~their total nominal capacity, until February 2021 when we ~~are operating at 85% of total capacity, targeting operations at full capacity by the end of 2019.~~inaugurated our fourth free-stall. The high occupancy rate did not affect productivity as we have taken special care in providing comfort and welfare to our herd. We are advancing well in growing and securing corn silage to feed additional cows. As for the bio-digester, ~~we already~~energy production is stabilized ~~energy production~~and generating attractive results.

~~In addition~~

Additionally, since February 2019 we ~~have completed the acquisition~~are owners of two milk processing facilities acquired from SanCor Cooperativas Unidas Limitadas. Both plants are well equipped and strategically located. The facility located in the city of Morteros, Province of ~~Cordoba,~~Córdoba, is at the center of Argentina´s largest dairy basin and has a total installed processing capacity of ~~910~~840 thousand liters per day aimed at producing powder milk and cheese, ~~for~~mainly destined to the export market. The facility located in Chivilcoy, Province of Buenos Aires, is halfway between our dairy ~~free stalls~~free-stalls facilities and the City of Buenos Aires, the largest fluid dairy market. The total installed processing capacity of this facility is ~~up to 700thousand~~870 thousand liters per ~~day.~~day aimed at producing mostly fluid milk. (See ~~Business Overview~~" – Our Company)." These acquisitions are part of our long term growth strategy, ~~and are similar to the strategies adopted~~consistent with our strategy for our crops, rice, sugar, ethanol, and energy businesses. We believe that being vertically integrated ~~has allowed~~allows us to control the supply chain, which ~~has~~ in turn ~~enhanced~~enhances efficiencies and ~~increased margins. Also, these transactions will provide~~increases margins, and provides us with the flexibility to sell into the export and domestic markets, based on relative profitability with a view to generate attractive returns.

◦~~Rice business: We expect to conclude investments by the first half of 2019, allowing us to improve our rice processing and distribution capabilities, and increase the value of main by-products.~~

◦Crops: We have completed the acquisition of a peanut processing facility equipped with cutting-edge technology, which has been granted all the necessary certifications and export permits. This transaction is in line with our strategy to grow our peanut business as it will enable us to control processing activities and develop direct and long term relations with different customers around the world.

•Consolidate our sugar and ethanol cluster in the state of Mato Grosso do Sul, Brazil. Our main strategy for our sugar and ethanol business is to consolidate our cluster in Mato Grosso do Sul, Brazil, ~~through the~~by ramping up ofproduction in our Ivinhema and Angelica mills, which ~~as of December 2018 reached~~have a nominal capacity of ~~12.4~~14.2 million tons per year. See ~~“-Sugar,~~“ —Sugar, Ethanol and Energy-Our Mills.” The consolidation of the cluster ~~will generate~~has generated important synergies, operating efficiencies and economies of scale such as (i) a reduction in the average distance from the sugarcane fields to the mills, generating important savings in sugarcane transportation expenses; (ii) one centralized management team, reducing total administration cost per ton of sugarcane milled; and (iii) a large sugarcane plantation supplying two mills, allowing for non-stop harvesting. ~~We believe that our~~Our sugarcane cluster in Mato Grosso do Sul ~~will allow~~has allowed us to become one of the most efficient and low cost producers of sugar, ethanol and energy in Brazil. Additionally, we plan to continue to monitor closely the Brazilian sugar and ethanol industries and may pursue selective acquisitions that provide opportunities to increase our economies of scale, operating synergies and profitability.

After reaching full capacity, our operating teams ~~have been~~ focused on finding ways to continue maximizing efficiency and generating additional synergies and cost dilution. In this process, ~~our teams have~~they identified certain bottlenecks in our industrial operations ~~that may be~~which were removed with minimal investments ~~which will allow~~and allowed us to increase crushing volumes per hour and total capacity per year. ~~We are now engaged in an~~These organic growth ~~project to increase the nominal crushing capacity by 30%. The project will be implemented in two phases:~~

~~- Phase 1 is complete. It~~projects consisted inof (i) expanding Angelica’s crushing capacity by 0.9 million ~~tons. Crushing capacity was expanded by 150 tons/hour~~tons by installing larger mill rollers in the first mill and expanding the sugar centrifugation and ethanol filtration ~~processes.~~

~~- Phase 2 will consist of~~processes, and (ii) expanding Ivinhema’s capacity by 2.1 million tons, ~~(400 tons/hour), between 2019 and 2022. This will be achieved~~ by installing a new mill ~~(#6)~~ expanding the sugarcane reception, juice treatment and sugar factory. ~~Crushing will grow gradually and reach full~~Through these investments we increased the nominal crushing capacity ~~in 2023.~~by 30%.

•Further increase our operating efficiencies while maintaining a diversified portfolio. We intend to continue to focus on improving the efficiency of our operations and maintaining a low-cost structure to increase our profitability and protect our cash flows from commodity price cycle risk. We seek to maintain our low-cost platform by (i) making additional investments in advanced technologies, including those related to agricultural, industrial and logistical processes and information technology, (ii) improving our economies of scale through organic growth, strategic acquisitions, and more efficient production methods, and (iii) fully utilizing our resources to increase our production margins. In addition, we intend to mitigate commodity price cycle risk and minimize our exposure to weather related losses by (i) maintaining a diversified product mix and vertically integrating production of certain commodities and (ii) geographically diversifying the locations of our farms.

•Continue to implement our land transformation strategy. We plan to continue to enhance the value of our owned farmland and future land acquisitions by making them suitable for more profitable agricultural activities, thereby seeking to maximize the return on our invested capital in our land assets. In addition, we expect to continue rotating our land portfolio through strategic dispositions of certain properties in order to realize and monetize the transformation and appreciation value created by our land transformation activities. We also plan to leverage our knowledge and experience in land asset- management to identify superior buying and selling opportunities.

Operations and Principal Activities

Farming Business

Our Farming business line is divided into three main reportable operating businesses, namely crops, rice and dairy. We conduct our farming operations primarily on our own land and, to a lesser extent, on land leased from third parties. During harvest year ~~2017/2018~~2019/2020 our farming operations were conducted on a total of 237,806 hectares of land, of which we own 105,883 hectares (excluding sugarcane farms), 34,556 hectares were second crop area, and we leased the remaining 97,367 hectares from third parties. During harvest year 2018/2019 our farming operations were conducted on a total of 225,115 hectares of land, of which we own 107,681 (excluding sugarcane farms), 31,127 were second crop area and we leased 86,307 hectares. During harvest year 2017/2018 we conducted our farming operations on a total of 232,796 hectares of land of which ~~we own 154,664 hectares (excluding sugarcane farms)~~the respective figures were 124,733, 35,948 and ~~we leased the remaining 78,132 hectares from third parties.~~72,115 hectares. The following table sets forth our production volumes for each of our farming business lines.

Harvest Year
2017/2018 2016/2017 2015/2016
Production (in tons)
Crops ⁽¹⁾
537,181
652,201
583,639
Rice ⁽²⁾
276,693
234,831
220,758


	Harvest Year
	2019/2020	2018/2019	2017/2018
Production	(in tons)
Crops (tons) (1)	720,059	652,169	685,657
Rice (tons) (2)	278,348	239,779	276,693
Total	998,407	891,948	962,350

Year Ended December 31,
2018 2017 2016
Dairy (thousands of liters)⁽³⁾
101,300
93,168
92,395


	Year Ended December 31,
	2020	2019	2018
Dairy (thousands of liters)(3)	145,192	120,069	101,300


~~(1)~~	As of the date of this annual report, the harvest of soybean, corn, sunflower, cotton and rice pertaining to the 2018/2019 harvest year is ongoing. The only crop which has been almost fully harvested in the current 2018/19 harvest year is wheat, with a total production of 71,644 tons.


~~(2)~~	~~Expressed in tons of rough rice.~~


~~(3)~~	~~Raw milk produced.~~

(1) Crop production does not include 226,821 tons, 212,650 tons, and 120,221 tons of forage produced in the 2019/2020, 2018/2019 and

2017/2018 harvest years, respectively.

(2) Expressed in tons of rough rice.

(3) Raw milk produced.

Crops Business (Grains, Oilseeds and Cotton)

Our agricultural production is mainly based on planting, growing and harvesting crops over our owned croppable area. During the ~~2017/2018~~2019/2020 harvest year, we planted crops over a total area of approximately ~~189,918~~203,020 hectares, including our owned land, land

leased from third parties and hectares planted in second harvests. During mid ~~2018~~2020 we began the planting of crops pertaining to the ~~2018/19~~2020/2021 harvest year, which ~~will be~~were concluded during the first quarter of ~~2019,~~2021, with a total planted area of ~~189,412~~217,833 hectares. Our main products include soybean, corn, wheat, peanut, sunflower and cotton. Other products, such as sorghum and barley, among others, are sown occasionally and represent only a small percentage of total sown land.

The following table sets forth, for the harvest years indicated, the planted hectares for our main products:

Harvest Year
2017/2018 2016/2017 2015/2016
Product Area (In hectares)
Soybeans^(l)
81,270
84,434
88,377
Corn⁽²⁾
55,029
47,157
42,657
Wheat⁽³⁾
34,631
38,009
32,396
Sunflower 2,869
5,413
9,547
Cotton 3,132
2,640
—
Forage⁽⁴⁾
4,793
5,177
5,514
Peanut 9,375
9,475
—
Total 191,099
192,305
178,491


	Harvest Year
	2019/2020	2018/2019	2017/2018
Product Area(5)
Soybean (1)	73,685	73,309	81,270
Corn (2)	61,685	47,668	55,029
Wheat (3)	32,799	40,210	34,631
Sunflower	6,818	3,825	2,869
Cotton	4,461	5,316	3,132
Peanut	16,814	15,479	9,375
Forage (4)	6,758	5,828	4,793
Total	203,020	191,635	191,099

(1) Includes soybean first crop and second crop planted area.

(2) Includes sorghum and chia.

(3) Includes barley crop.

(4) Forage includes corn silage, wheat silage and sorghum used for cow feed in our dairy operation.

(5) As of December 31, ~~2018.~~2020.

The following table sets forth, for the harvest years indicated, the production volumes for our main ~~products~~

products:

Harvest Year
2018/2019 2017/2018 2016/2017 2015/2016
Crop Production⁽¹⁾
(In tons)
Soybeans⁽²⁾
250
6,571
230,899
237,681
Corn⁽²⁾
52,241
55,951
298,324
248,269
Wheat 62,146
79,341
115,339
82,167
Sunflower⁽²⁾
4,771
3,558
10,112
15,521
Cotton lint⁽²⁾
783
—
198
—
Total⁽²⁾
120,191
145,421
654,872
583,638


	Harvest Year
	2020/2021	2019/2020	2018/2019	2017/2018
Crop Production(1)	(In tons)
Soybeans (2)	1,530	181,259	187,226	171,392
Corn (2)	32,550	364,792	295,990	258,054
Wheat	122,297	104,236	114,809	78,640
Sunflower (2)	10,876	12,652	5,937	5,181
Cotton lint (2)	—	1,490	422	523
Peanut (2)	—	55,630	47,785	19,901
Total (2)	167,254	720,059	652,169	533,691

(1) ~~Does~~Crop production does not include 226,821 tons, 212,650 tons, and 120,221 ~~155,300 and 136,797tons~~tons of forage produced in the 2019/2020, 2018/2019 and

2017/~~18,2016/17, and 2015/2016,~~2018 harvest years, respectively.

(2) As of the date of this annual report, the harvest of soybean, corn, peanut, sunflower and cotton pertaining to the ~~2018/19~~2020/2021 harvest year is ongoing. The only crop which has been fully harvested is wheat.

The following table below sets forth, for the periods indicated, the sales for our main products:


	Year Ended December 31,					Year Ended December 31,
	2018		2017	2016		2020	2019	2018
Sales	(In thousands of $)				Sales	(In thousands of $)
Soybeans	84,217		85,527	63,797	Soybeans	44,732	46,386	84,217
Corn ^(l)	38,631		86,238	48,502
Corn (1)					Corn (1)	45,088	61,332	38,251
Wheat⁽²⁾	32,706		16,723	18,191	Wheat (2)	15,109	20,318	32,706
Sunflower	1,598		3,163	7,275	Sunflower	10,925	8,430	1,598
Cotton	—		420	1,434
Peanut					Peanut	46,983	28,994	1,676
Other crops⁽³⁾	7,386		5,151	2,925	Other crops (3)	7,277	3,478	6,090
Adjustments ⁽⁴⁾	(9,120	)	—	N/A	Adjustments (4)	(1,653)	(2,492)	(9,120)
Total	155,418		197,222	142,124	Total	168,461	166,446	155,418

(1) Includes sorghum ~~chia~~ and ~~peanut.~~chia.

(2) Includes barley.

(3) Includes cotton, other crops and farming services.

(4) Accumulated adjustment of Hyperinflation accounting translation for our Crops segment sales.

Soybeans

Soybeans are an annual legume widely grown due to their high content of protein (40%) and oil (20%). They have been grown for over 3,000 years in Asia and, more recently, have been successfully cultivated around the world. The world’s top producers of soybeans currently are the United States, Brazil, Argentina, China and India. Soybeans are one of the few plants that provide a complete protein supply as they contain all eight essential amino acids. About 85% of the world’s soybeans are processed, or “crushed,” annually into soybean meal and oil. Approximately 98% of soybean meal is further processed into animal feed, with the balance used to make soy flour and proteins. Of the oil content, 85% is consumed as edible oil and the rest is used for industrial products such as fatty acids, soaps and biodiesel. We sell our soybeans mainly to crushing and processing industries, which produce soybean oil and soybean meal used in the food, animal feed and biofuel industries.

We grow soybeans in Argentina, Brazil and Uruguay. In the 2015/16 harvest year, we planted a total area of 88,377 hectares of soybean, producing a total of 237,681 tons representing 51% of our total crop planted area that year, and 41% of our total crop production. In the 2016/17 harvest year, we planted a total area of 84,435 hectares of soybean, producing a total of 230,899 tons representing 46% of our total crop planted area that year, and 35% of our total crop production. In the 2017/18 harvest year, we planted a total area of 81,269 hectares of soybean, producing a total of 155,281 tons representing 42% of our total crop planted area that year, and 29% of our total crop production.

Soybeans comprised, 7%10.6%, 9%5.2%, and ~~8.6%~~5.5% of our total consolidated sales in ~~2016, 2017,~~2018, 2019, and ~~2018 respectively~~2020 respectively.

Corn

Corn is a cereal grown around the world and is one of the world’s most widely consumed foods. The main component of corn grain is starch (72% to 73% of grain weight), followed by proteins (8% to 11%). Corn grain is directly used for food and animal feed (beef, swine and poultry meat production and dairy). Corn is also processed to make food and feed ingredients (such as high fructose corn syrup, corn starch and lysine), or industrial products such as ethanol and polylactic acid (PLA). Oil,

flour and sugar are also extracted from corn, with several uses in the food, medicine and cosmetic industries. Additionally, there are specific corn types used for direct human consumption such as popcorn and sweet corn.

We grow corn in Argentina, Brazil and Uruguay. In the 2015/2016 harvest year, we planted a total area of approximately 41,636 hectares of corn, including the second harvest, producing a total of 243,972 tons of corn representing 25% of our total planted area that year, and 43% of our total crop production. In the 2016/2017 harvest year, we planted a total area of approximately 48,8678 hectares of corn, including the second harvest, producing a total of 268,603 tons of corn representing 28% of our total planted area that year, and 42% of our total crop production.In the 2017/2018 harvest year, we planted a total area of approximately 56,741 hectares of corn, including the second harvest, producing a total of 243,898 tons of corn representing 30% of our total planted area that year, and 30% of our total crop production.

Corn comprised 7%4.8% of our consolidated sales in ~~2016, 9%~~2018, 6.9% of our consolidated sales in ~~2017,~~2019, and ~~4.5%~~5.5% of our consolidated sales in ~~2018.~~2020.

Wheat

Wheat is the world’s largest cereal-grass crop. Unlike other cereals, wheat grain contains a high amount of gluten, the protein that provides the elasticity necessary for excellent bread making. Although most wheat is grown for human consumption, other industries use small quantities to produce starch, paste, malt, dextrose, gluten, alcohol, and other products. Inferior and surplus wheat and various milling by products are used for livestock feed. We sell wheat to exporters and to local mills that produce flour for the food industry.

In the 2016/2017 harvest year, we planted a total area of approximately 38,009 hectares of wheat, producing a total of 115,339 tons of wheat. In the current 2017/2018 harvest year, we planted a total area of approximately 36,533 hectares of wheat, producing a total of 79,675 tons of wheat. In the current 2018/2019 harvest year, we planted a total area of approximately 40,335 hectares of wheat, producing a total of 11,087 tons of wheat.

Wheat comprised 2%4.1% of our total consolidated sales in ~~2016, 2%~~2018, 2.3% of our total consolidated sales in ~~2017,~~2019, and ~~3.8%~~1.8% of our total consolidated sales in ~~2018.~~

2020.

Sunflower

There are two types of sunflower, the most important in terms of volume being the oilseed sunflower, which is primarily grown for the oil extracted from the seed. Sunflower oil is considered one of the top three oils for human consumption, due to its high oil content (39-49%) and its oil composition (90% of oleic and linoleic oil). The other type of sunflower is the confectionary sunflower, which is used for direct human consumption. Sunflower seeds are an exceptional source of vitamin E, omega-6 fatty acids, dietary fiber and minerals. We grow both types of sunflower.

We grow sunflower in Argentina and Uruguay. In the 2015/2016 harvest year, we planted a total area of approximately 9,547 hectares of sunflower producing a total of 15,521 tons of sunflower representing 6% of our total crop planted area that year, and 3% of our total crop production.In the 2016/2017 harvest year, we planted a total area of approximately 5,413 hectares of sunflower producing a total of 10,112 tons of sunflower representing 3% of our total crop planted area that year, and 2% of our total crop production. In the 2017/2018 harvest year, we planted a total area of approximately 2,869 hectares of sunflower producing a total of 5,181 tons of sunflower representing 1.5% of our total crop planted area that year, and 1% of our total crop production.

Sunflower ~~comprised 1% of our total consolidated sales in 2016, 0.3% in 2017, and 0.2% in 2018.~~

~~Cotton~~

Cotton is the world’s most popular natural fiber. The cotton fiber is made primarily into yarns and threads for use in the textile and apparel sectors. Clothing accounts for approximately 60% of cotton consumption. Cotton is also used to make home furnishings, such as draperies (the third major end use), or professional garments (about 5% of cotton fiber demand). The cottonseed is used in animal feeding or crushed in order to separate its three products - oil, meal and hulls. Cottonseed oil is used primarily for cooking oil and salad dressing. In recent years, there has been a growing demand for cotton oil for biodiesel production.

~~We plant upland cotton, the most common type of cotton planted and processed around the world. We produce and sell cotton lint and cotton seed.~~

We grow cotton in northern Argentina and in the western part of Bahia, Brazil. We did not plant any cotton in the 2015/16 harvest year. In the 2016/2017 harvest year, we planted a total area of approximately 2,640 hectares of cotton producing a total of 198 tons of cotton lint, representing 1% of our total planted crop area that year, and 0.03% of our total crop production. In the 2017/2018 harvest year, we planted a total area of approximately 3,132 hectares of cotton producing a total of 886 tons of cotton lint, representing 1.6% of our total planted crop area that year, and 0.02% of our total crop production.

~~Cotton~~ comprised 0.2% of our total consolidated sales in ~~2016, 0.05%~~2018, 1.0% in 2019, and 1.3% in 2020.

Since early 2019, we operate a sunflower processing facility located in Buenos Aires province, Argentina. This enables us to control processing activities and develop direct and long term relationships with different customers around the world.

Peanut

Peanut is a summer legume which has its harvesting process divided in two stages: (1) digging, which implies loosening the plant, cutting the taproot and inverting the plant; and (2) combining which means separating the pods from the vines. Planting activities begin in October and approximately 150 days after planting, digging activities take place. In Argentina all the peanut grown is high oleic. Córdoba province is Argentina's largest peanut production area due to its optimal agroclimatic conditions, which have led many processing industries to install there.

Argentina is positioned among the most important players in the production and export of this crop, with high technological levels both in terms of production as well as processing. Argentina exports more than 90% of the peanuts it produces and its main market is the European Union, followed by Russia and Latin America. Its main competitors are USA, Brazil and China. We grow peanut in the center region of Argentina.

Peanut comprised 0.2% of our total consolidated sales in ~~2017 and 0.00%~~2018, 3.3% of our total consolidated sales in ~~2018.~~2019 and 5.7% of our total consolidated sales in 2020.

Since early 2019, we own and operate a peanut processing facility equipped with cutting-edge technology, which has been granted all the necessary certifications and export permits. This vertical integration is in line with our strategy to grow our peanut business as it enables us to control processing activities and develop direct and long term relations with different customers around the world.

Forages

In addition to the above mentioned crops, we are engaged in the production of forage in Argentina, including corn silage, wheat silage and sorghum silage. We use forage as cow feed in our dairy operation. During the ~~2017/2018~~2019/2020 harvest year, we planted ~~4,793~~6,758 hectares of forage and produced ~~120,021~~226,821 tons of forage.

Crop Production Process

Our crop production process is directly linked to the geo-climatic conditions of our farms and our crop cycles, which define the periods for planting and harvesting our various products. Our crop diversification and the location of our farms in various regions of South America enable us to implement an efficient planting and harvesting system throughout the year, which includes second harvests in many cases. Our production process begins with the planting of each crop. After harvesting, crops may go through a processing phase where the grain or seeds are cleaned and dried to reach the required market standards.

For additional discussion of our harvest years and the presentation of production and product area information in this annual report, see “Presentation of Financial and Other Information-Fiscal Year and Harvest Year.”

Rice Business

Rice is the main food staple for about half of the world’s population. Although it is cultivated in over 100 countries and on almost every continent, 90% of the world’s rice is grown and consumed in Asia. Globally, rice is the most important crop in terms of its contribution to human diets and production value. There are three main types of rice: short grain, medium grain and long grain rice. Each one has a different taste and texture. We produce long grain rice and Carolina double rice, a variety of medium grain rice.

We conduct our rice operation in the northeast of Argentina, which is one of the most efficient locations in the world for producing rice at a low cost. This is a result of optimum natural agronomic conditions, including plentiful sunlight, abundant availability of water for low cost irrigation and large quantities of land. The use of public water for artificial irrigation is governed by provincial regulations and is subject to the granting of governmental permits. We currently have permits for the use of water in our production of rice in the provinces of Corrientes and Santa Fe. Maintenance of our permits is subject to our compliance with applicable laws and regulations, which is supervised by the corresponding governmental authority (~~e.g.~~(e.g., the Ministry of Water, Public Services and Environment (~~Ministerio~~(Ministerio de Agua,, Servicios Publicos y Medio ~~Ambiente~~)Ambiente), in the province of Santa Fe, and the Water Institute of the Province of Corrientes (~~Instituto~~(Instituto Correntino del ~~Agua~~)Agua).

The following table sets forth, for the harvest years indicated, the total number of planted rice hectares we owned and leased as well as the overall rough rice we produced:


	Harvest Year					Harvest Year
Rice Product Area & Production	2018/2019	2017/2018	2016/2017	2015/2016	Rice Product Area & Production	2020/2021	2019/2020	2018/2019	2017/2018
Owned planted area (hectares)	38,579	38,579	38,028	35,880	Owned planted area (hectares)	40,444	39,162	37,608	38,589
Leased planted area (hectares)	1,700	1,700	1,700	1,700	Leased planted area (hectares)	3,839	2,382	1,700	1,700
Total rice planted (hectares)	40,279	40,279	39,728	37,580	Total rice planted (hectares)	44,282	41,544	39,308	40,289
Rough rice production (tons) ⁽¹⁾	—	276,693	234,831	220,758	Rough rice production (tons) (1)	159,448	278,348	239,779	276,693

(1) As of the date of this annual report, the harvest of rice pertaining to the ~~2018/2019~~2020/2021 harvest year is ongoing.

We grow rice on 4four farms we own and 2two farms we lease, all located in Argentina. In the 2016/2017 harvest year, we planted a total area of approximately 39,728 hectares of rice, producing a total of 234,831 tons, representing 18% of our total planted area that year, and 26% of our total farming production. In the 2017/2018 harvest year, we planted a total area of approximately ~~40,289hectares~~40,289 hectares of rice, producing a total of 276,693 tons, representing 17% of our total planted area that year, and 34% of our total farming production. In the ~~current~~ 2018/2019 harvest year, we planted a total area of ~~40,434~~approximately 39,308 hectares of rice, producing a total of 239,779 tons, representing 17% of our total planted area that year, and 27% of our total farming production. In the 2019/2020 harvest year, we planted a total area of approximately 41,544 hectares of rice, producing a total of 278,348 tons, representing 17% of our total planted area that year, and 28% of our total farming production. In the current 2020/2021 harvest year, we planted a total of 44,282 hectares of rice, which have not been fully harvested as of the date of this report.

Rice Production Process

The rice production cycle lasts approximately five to six months, beginning in September of each year and ending in April of the following year. Rice planting continues until November, followed by treatment of the rice, which lasts approximately three months, until January. In February we begin harvesting, which lasts until April. After harvesting, the rice is ready for processing.

We process rice in our three rice mills in Argentina, where we are able to process our entire rice crop and utilize our excess milling capacity to process rough rice we purchase from third party growers.

At the mill, we clean the rice to remove all impurities. We then put it through a dryer to remove excess moisture from the grains. Proper drying results in increased storage life, prevents deterioration in quality and leads to optimum milling. Once dried, the rice grain, now known as rough rice or paddy rice, is ready for storage. We store rice in elevators or in silo bags until milling. During the milling process, the rough rice goes through a de-husking machine that removes the husk from the kernel. The rice that is obtained after this process is known as brown rice and is ready for human consumption. Brown rice becomes white rice after it is polished to remove the excess bran.

The main objective of the milling process is to remove the husk and the bran, preserving the quality of the whole grain. Although the process is highly automated and uses advanced technology, some rice grains are broken in the process. The percentage of broken rice depends on a number of factors such as the crop development cycle at the farm, the variety of the grain, the handling and the industrial process. Average processing of rough rice results in ~~58%~~58.5% white rice, ~~12%~~13.0% broken rice and ~~20%~~20.0% rice husk and ~~10%~~8.5% bran which is sold for use as cattle feed or floor bedding in the poultry business.


	Year Ended December 31,
	2020	2019	2018
Processed Rice Production	(In tons)
Rough rice processed — own	263,637	250,427	266,078
Rough rice processed — third party	26,393	24,920	10,615
Total rough rice processed	290,030	275,347	276,693

Year Ended December 31,
2018 2017 2016
Processed Rice Production (In tons)
Rough rice processed — own 266,078
208,292
206,794
Rough rice processed — third party 10,615
33,282
16,382
Total rough rice processed 276,693
241,574
223,176


	Year Ended December 31,				Year Ended December 31,
	2018	2017	2016		2020	2019	2018
Processed Rice Sales	(In thousand of $)			Processed Rice Sales	(In thousands of $)
Total Sales	95,403	86,479	96,562	Total Sales	101,862	101,156	95,403

Rice comprised ~~11%~~12.0% of our total consolidated sales in ~~2016, 9%~~2018, 11.4% in ~~2017~~2019 and ~~12%~~12.5% in ~~2018.~~2020.

Rice Seed Production

In our rice seed facility in Argentina, we are involved in the genetic development of new rice varieties adapted to local conditions to increase rice productivity and quality to improve both farm production as well as the manufacturing process. In connection with these efforts, we have entered into agreements with selected research and development institutions such as the National Institute of Agriculture Technology (~~Instituto~~(Instituto Nacional de TecnologíaAgropecuaria,, or “INTA”) in Argentina, the Instituto Riograndense do Arroz or "IRGA " in Brazil, the Híbridos de Arroz para América Latina or "HIAA" in Colombia, the Latin American Fund for Irrigated Rice (~~Fondo~~(Fondo Latinoamericano para Arroz de Riego,, or “FLAR”) in Colombia, the Santa Catarina State Agricultural Research and Rural Extension Agency (~~Empresa~~(Empresa de pesquisa Agropecuária e Extensão Rural de Santa Catarina,, or “EPAGRI”) in Brazil and Badische Anilin- und ~~Soda-Fabrik~~Soda-Fabrik (“Basf”) in Germany. Our own technical team is continuously testing and developing new rice varieties. Our first rice seed variety, Ita Caabo 105, was released to the market in 2008. In 2011 we released our second variety Ita Caabo 110, and at the beginning of 2014 we released our third variety, Ita Caabo 107. We are currently experimenting with a wide range of varieties to continue improving our ~~productivity.~~productivity in addition to the development of a hybrid line. These seeds are both used at our farms and sold to rice farmers in Argentina, Brazil, Uruguay and Paraguay. We are also developing, alongside Basf, a herbicide-tolerant rice variety to assist in the control of harmful weeds.

Dairy Business

We conduct our dairy operation in our farms located in the Argentine humid pampas region. This region is one of the best places in the world for producing raw milk at a low cost, due to the availability of grains and forages produced efficiently and at

low cost, and due to the favorable weather for cow comfort and productivity. Our dairy operation consists of three free-stall dairy facilities with an occupancy of 11,477 milking cows as of December 2020, and a total capacity of ~~approximately 8,035 milking cows.~~

11,104. The high occupancy rate did not affect productivity as we have taken special care in providing comfort and welfare to our herd.

The following table sets forth, for the periods indicated below, the total number of our dairy cows, average daily milk production per cow and our total milk production:


	Year Ended December 31,				Year Ended December 31,
Dairy Herd & Production	2018	2017	2016	Dairy Herd & Production	2020	2019	2018
Total dairy herd (head)	8,035	8,043	7,947
Total dairy herd (head) (1)				Total dairy herd (head) (1)	11,477	9,781	8,035
Average milking cows	7,581	6,967	6,880	Average milking cows	10,876	9,066	7,581
Average daily production (liters per cow)	36.6	36.6	36.7	Average daily production (liters per cow)	36.5	36.3	36.6
Total production (thousands of liters)	101,300	93,168	92,395	Total production (thousands of liters)	145,192	120,069	101,300

Year Ended December 31
Dairy Sales 2018 2017 2016
(In thousands of $)
Sales 29,710
37,522
32,897

(1) As of December 31, 2018, 2017 and 2016, we owned a dairy herd of 8,043, 7,947 and 7,701 head, respectively, including 6,967, 6,880 and 6,658 milking cows, respectively, with an average production of 36.6, 36.6 and 36.7 liters per cow per day, respectively.December.


	Year Ended December 31
Dairy Sales	2020	2019	2018
	(In thousands of $)
Sales	133,474	83,822	29,710

Dairy comprised 4%3.7% of our total consolidated sales in ~~2016~~2018, 9.4% for 2019 and ~~4% and 3.8%~~16.3% for ~~2017 and 2018~~2020 respectively.

~~Also, our~~Our three free-stall dairies ~~#1 and #2~~ are fully ramped-up and delivering ~~productivity. We plan to invest $55 million over~~high productivity levels. During 2020 we started the ~~next~~construction of our fourth free-stall, which was finalized in February 2021. Once our four ~~years to build~~ free-stalls ~~#3 and #4. We believe that this project~~are fully operative, we will ~~allow us~~be able to double our production capacity,

reaching over 185 million liters of fluid milk ~~production~~ per year and ~~reach~~ over 14 thousand total milking cows. We believe this

investment is a unique opportunity to leverage on Argentina’s competitive advantages in transforming vegetable protein into

milk protein, on our operational expertise and on the positive outlook for global and local milk prices.

~~On February 8, 2019 we acquired~~We own two milk processing ~~plants and two trademarks~~facilities which had been acquired from SanCor Cooperativas Unidas Limitadas on February 2019, in addition to “Las Tres Niñas” and “Angelita” trademarks, both of which are well-known in Argentina and represent a solid commercialization vehicle for retail and consumer dairy products. Our milk facilities produce UHT and UP milk, powder milk and semi-hard cheese, among others. Our facilities have a total installed reception capacity of 2.4 million liters per day and an installed processing capacity of 1.7 million liters of raw milk per day. In order to account for the difference between total installed capacity and actual utilization it is necessary to account for the machine's efficiency rate, maintenance works, number of working days and number of personnel shifts, among other variables. We completed 2020 with 297.6 million liters of raw milk processed.

~~Limitadas. One of the facilities~~Chivilcoy industrial facility is located in the city of Chivilcoy, Province of Buenos Aires, and is primarily focused on fluid

milk production for the domestic ~~market~~market. It has an installed processing capacity of 870 thousand liters per day and an installed milk reception capacity of 1.2 million liters per day. The facility has an installed processing capacity of 600 thousand liters of UHT milk, 155 thousand liters of UP milk and 115 thousand liters of yogurt. We completed 2020 with 115.1 million liters of raw milk processed in ~~Argentina. The second~~Chivilcoy facility.

Morteros industrial facility is located in the city of Morteros, Province of

~~Cordoba,~~ Córdoba, and produces ~~dry~~powder milk and semi-hard cheese mainly for the export market. ~~In addition, we acquired the “Las 3 Niñas”~~Morteros plant has an installed processing capacity of 840 thousand liters per day, 550 thousand correspond to milk powder and ~~“Angelita”~~290 thousand to cheese, and it has an installed milk reception capacity of 1.2 million liters per day. We concluded 2020 with 182.6 million liters of raw milk processed in Morteros facility.

~~trademarks. Both brand names are well recognized in Argentina and represent a solid commercialization vehicle for retail.~~

~~consumer dairy products~~

Dairy Production Process

We wean calves during the 24 hours subsequent to birth and during the next 60 days raise them on pasteurized milk and high protein meal. Male calves are fed concentrates and hay for an additional 3 months in the farm before they are sent to our feedlot or to third party feedlots to be fattened for sale. Young heifers remain in open corrals during the next 13 months where they are fed with concentrates and forage until they are ready for breeding. Calving occurs nine months later. Heifers are subsequently milked for an average of 320 days. Dairy cows are once again inseminated during the 42- to 90-day period following calving. This process is repeated once a year for a period of ~~six~~three or ~~seven~~four years. The pregnancy rate for our herd is between 85% and 90% per year.

Each cow in our dairy herd is mechanically milked three times a day. The milk obtained is cooled to less than four degrees centigrade in order to preserve its quality and is then stored in a ~~tank.~~tank, or directly loaded to trucks which derives in increased quality and lower costs. Milk is delivered mainly to our processing facilities and the balance is sold to large third party milk processing facilities on a daily basis by tank trucks. We feed our dairy cows mainly with corn and alfalfa silages, some grass and corn grain, supplemented as needed with soybean by-products, hay, vitamins and minerals.

We have invested in technology to improve the genetics of our cows, animal health and feeding in order to enhance our milk production. These investments include top quality imported semen from genetically improved North American Holstein bulls, agricultural machinery and devices, use of dietary supplements and modern equipment to control individual milk production and

cooling. Our feeding program is focused on high conversion of feed into milk, while maintaining cows in good health and comfort. We have also invested in technology and know-how so as to increase our forage production and utilization.

In 2007, we began the construction of an advanced “free-stall” dairy in Argentina, and started operating in March 2008. This technology allows large- scale milk production at increased efficiency levels. Our free-stall dairy model consists of 3,500 cows confined inside a large barn where they are free to move within the indoor corrals. We feed our cows specific protein rich diets composed of corn grain and silage and milk them three times a day, using a milking mechanism consisting of an 80-cow rotary platform, which milks an average of 400 cows per hour. Having proved the success of our model we built a second free stall diary in 2011 and started operations during August 2012.

Implementation of the free-stall system allows us to position ourselves as a key player in the dairy industry and boost our agricultural and industrial integration presence in the South American agricultural sector. By eliminating cow grazing, we reduced the amount of land utilized for milk production, which freed up more land for our agricultural and land development activities. Cow productivity (measured in liters of milk produced per day) using the free-stall system increases by up to 40% compared to traditional grazing systems. These productivity gains are because the free-stall system significantly improves the conversion rate of animal feed to milk, resulting in an approximate 40% increase in the conversion ratio, or the production of 1.4 liters of milk for each 1 kg of animal feed as compared to the average of 1 liter of milk for each 1 kg of feed associated with the usual grazing model.

This increased productivity and conversion rate are mainly due to improved cow comfort and an enhanced diet quality. We assess cow comfort through the engagement of expert consultants, who recommended designing beds covered with sand. The sand plays a significant role in helping cows to rest comfortably. Additionally, we installed a cooling system to increase cow comfort as well. This system relies on water sprinklers and ventilation fans located all over the facility to create a controlled, cool atmosphere, which improves cow comfort as the Holstein herd is originally adapted to cold regions. Additionally, we manage diet quality by adapting our feeding regime based on the various feeding stages in the lifetime of each cow. The actual feeding is fully mechanized, and we carefully control the harvesting and storage of feed. The control of all productivity variables, such as reproduction, health and operations, supports efficiency gains through standardized processes. Finally, the physical concentration of the animals facilitates efficient overall management of the dairy business as a whole. In terms of the environment, the free-stall model allows for a better effluent treatment, which includes a sand-manure separator stage, a decantation pool and an anaerobic lagoon. All these processes help to decrease the organic matter content of the effluent and deliver a cleaner output. The final treated effluent is used to fert-irrigate crops adjacent to the dairy operation. Accordingly, we transform dairy waste into a high value-added by-product, which reduces fertilizer usage.

During October, 2017 we completed the construction of our first bio-digester. This facility enhances the sustainability of our ~~free stall~~free-stall dairy operation by reducing greenhouse gas emissions, improving the effluent management and concentrating valuable nutrients which are applied back to the fields. It generates electricity by burning biogas extracted from the effluents produced by our ~~seven thousand~~ milking cows. On November 3, 2017, we began generating and delivering 1.4 MW of electricity to the local power grid. In addition ~~of enchancein~~to enhancing in the sustainability of our diary operation, it increases revenues and secures our energy requirements.

The free-stall dairy is expected to allow us to become an efficient large-scale milk producer and optimize the use of our resources (land, cattle and capital) through the standardization of processes. Process standardization provides high operational control and allows us to scale-up our production efficiently and quickly.

All Other Segments

All Other Segments primarily encompasses our cattle business. Our cattle segment consists of pasture land that is not suitable for crop production due to soil quality and is leased to third parties for cattle grazing activities.

We currently own ~~59,534~~54,450 hectares of cattle grazing land located in the Argentine provinces of Corrientes, Santa Fe, Formosa and ~~Buenos Aires.~~Santiago del Estero. In ~~2018,~~2020, we entered into new lease agreements with third party cattle farmers for a total area of ~~27,216~~12,735 hectares.

Storage and Conditioning for the Farming Business

Our storage and conditioning facilities in the farming business allow us to condition, store and deliver our products with no third-party involvement. All our crop storage facilities are located close to our farms, allowing us to (i) reduce storage and conditioning costs; (ii) reduce freight costs since we only commence moving the product once the final destination is determined, whether locally or to a port, (iii) capitalize on fluctuations in the prices of commodities; and (iv) improve commercial performance by mixing grains to avoid discounts due to sub-standard quality.

We own two conditioning and storage facilities for grains and oilseeds, with a total built storage capacity of 38,740 tons. ~~Our largest storage facility, with~~One of our facilities has a capacity of 19,240 tons and is located in the province of Santa Fe, Argentina, in the town of Christophersen. It has a railway loading terminal, providing logistical flexibility and savings. Our other facility is located in Buenos Aires province close to Bahía Blanca’s deep water port, in an area where we produce 120,000 tons of grains. In addition, our peanut processing facility has the capacity to store 7,500 tons of finished product (and 50,000 of inshell), while

our sunflower processing facility has the capacity to store 4,000 tons of sunflower. We also own in Argentina three rice mills, which account for over ~~120,000~~112,500 tons of total storage capacity, and one additional conditioning ~~facilities~~facility for rice handling, with a total storage capacity of 6,300 tons.

Set forth below is our storage capacity as of December 31, ~~2018:~~

2020:



Storage Capacity						Nominal
Crops (tons) (1)						~~38,740~~50,240
Rice (tons)						~~120,000~~118,800
Dairy (liters) (2)						25,800,000

(1) Includes 38,740 tons corresponding to our two conditioning and storage facilities, 7,500 tons to our peanut facility and 4,000 tons to our sunflower facility.

(2) Morteros facility accounts for 24.3 million liters of fluid milk (equivalent to 2,500 tons of milk powder and 360 tons of cheese) while Chivilcoy accounts for 1.5 million liters of fluid milk.

In addition, we use silo bags to increase our storage capacity at low cost. Silo bags are an efficient low-cost method for grain storage. As crops are harvested, they are placed inside large polyethylene bags that can be left in the fields for approximately 12 months without damaging the grain. Each silo bag can hold up to 180 to 200 tons of product, depending on the type of grain. During the ~~2017/2018~~2019/2020 harvest year, we stored approximately 50% of our grain production through silo bags.

Silo bags offer important operational and logistic advantages, such as (i) low cost storage; (ii) flexible and scalable capacity that is adapted based on production and commercial strategy; (iii) harvest efficiencies since the bags are filled on the field allowing for a non-stop harvest operation regardless of any logistical setbacks; (iv) logistic efficiencies leading to lower freight since grains are transported during the off-season when truck fares are lower; (v) increased ability to monitor quality and identify different grain qualities, since grains are stored in relatively small amounts (200 tons) and easily monitored, maximizing our commercial performance; and (vi) better use of our drying capacity throughout the year. Silo bags are commercially accepted. Grains stored in silo bags can be sold in the market, and if such grains are to be delivered post-harvest, we charge storage costs. Additionally, we can store grains to be used as seed during the following season (soybeans, rice and wheat), achieving quality seed management. We have expanded the use of silo bags from Argentina to our operations in Brazil and Uruguay.

Grain conditioning facilities at our farms allow our trade desk to optimize commercialization costs and to achieve commercial quality standards and avoid price discounts. These facilities are operated to dry, clean, mix and separate different qualities of each grain in order to achieve commercial standards. By mixing different batches of a same grain type, differentiated by quality parameters such as moisture, percentage broken, and percentage damaged, among others, we can achieve commercial standards without having to discount a lower-quality stand-alone batch. Efficient management of these facilities results in a lower cost for grain conditioning and a better achievable price.

Set forth below is our drying capacity as of December 31, ~~2018:~~2020:



Drying Capacity						Nominal
Crops (tons/day) (1)						~~8,640~~9,925
Rice (tons/day)						~~6,300~~6,850

(1) Includes the drying capacity corresponding to our two grain conditioning and storage facilities, our peanut processing facility and our sunflower processing facility.

Some grains such as soybeans, wheat and rice, can be used for seed during the next planting season. We produce almost 97% of the seed used for planting these crops in our fields. The seed is stored in silo bags and/or grain facilities, where it can be processed, classified, and prepared for planting during next crop season. A deep survey and monitoring process is carried out in order to evaluate, control and deliver high quality seed to our farms.

The rest of our seed requirements are purchased from seed suppliers in order to incorporate new enhanced varieties into our planting plan.

Marketing, Sales and Distribution for the Farming Business

Crops

In Argentina, grain prices are based on the market prices quoted on Argentine grain exchanges, such as the Bolsa de Cereales de Buenos Aires and the Bolsa de Cereales de Rosario,, which use as a reference the prevailing prices in international grain exchanges (including CBOT and ICE-NY). In Uruguay, local prices are based on an export parity (during harvest) or import parity in the case of post-harvest sales, which, in each case, take into account the prices and costs associated with each market. In Brazil, the

grain market includes the Bolsa de Mercadorias e Futuros ~~(Brazilian~~(Brazilian Grain Exchange), which, as in Argentina, uses as a price reference the international grain exchanges (including CBOT and ICE-NY). Prices are quoted in relation to the month of delivery and the port in which the product is to be delivered. Different conditions in price, such as terms of storage and shipment, are negotiated between us and the end buyer. We negotiate sales with the top traders and industrial companies in our markets. We also engage in hedging positions by buying and selling futures and options in commodities exchanges, including the Chicago Board of Trade, the New York Board of Trade, BMF&FBOVESPA Exchange and the Mercado a Término de Buenos Aires (MATBA).

~~Soybeans:~~Soybeans

Our soybean crop is sold to local companies and is ultimately exported or diverted to the crushing industry. Approximately ~~32%~~29% of the soybean crop was hedged pre-harvest, by forward sales and sales in the futures markets. Harvest and post-harvest sales are a function of the export market versus local premiums paid by crushers (oil, meal and biodiesel) and logistics considerations. Our five largest customers comprised approximately ~~67%~~79% of our sales in the year ended December 31, ~~2018. . In Argentina,~~2020.

Corn

Our production is mainly destined to the ~~applicable~~ export ~~tax rate on soybeans May-19 is 27.4%. There are no export taxes in Brazil and Uruguay.~~

~~During 2018 we sold more than 39,000 tons (approximately 16% of our production) certified by the Round Table on Responsible Soybean (“RTRS”), capturing premiums over market value.~~RTRS is a civil organization that promotes responsible production, processing, and trading of soy on a global level. During 2012 and 2013 we also certified our silo plant in Argentina under 2BSvs (Biomass, Biofuels Sustainability Voluntary Scheme), based on sustainability criteria of the European Directive 2009/28/EC.

~~Corn~~:market. Our ~~corn crop is sold to local companies. Our four~~five largest customers comprised approximately ~~69%~~70% of our sales in the year ended December 31, ~~2018. Approximately 47% of our~~2020.

Wheat

Our wheat production is mainly destined ~~for local market and 53% is sold~~ to ~~exported.~~

~~Wheat~~:A~~pproximately 40% of our production is destined for local market and 60% is exported.~~export industry. Quality segregation allows us to negotiate premiums with the millers and export market. Brazil is the main importer of Argentine wheat. Our ~~four~~five largest customers comprised approximately ~~72%~~74% of our sales in the year ended December 31, ~~2018.~~2020.

~~Sunflower:~~Sunflower

Our sunflower production from Argentina is sold to local companies. Sales are made pursuant by production agreements of sunflower for confectionary, high oil content sunflower and seed. Our ~~three~~two largest customers (Bunge Argentina and Molinos Agro) comprised 100% of our sales in the year ended December 31, ~~2018.~~2020.

~~Cotton:~~Peanut

Approximately 90% of our peanut production is exported. Our ten largest customers comprised approximately 65% of our sales in the year ended December 31, 2020, while the European Union was the destination for over 90% of our sales.

Cotton

We typically make pre-harvest sales of cotton fiber produced in Argentina into the export market. Sales for the textile industry are based on domestic demand and premiums. Our ~~five~~two largest customers comprised approximately 100% of our sales in the year ended December 31, ~~2018.~~2020. Cotton seed is sold in the domestic market to meet feed demand.

~~Rice:~~We sell manufactured and agricultural products to a large base of customers. The type and class of customers may differ depending on our business segments, regions and some logistics issues that are very important in our decision making. For the year ended December 31, 2020 more than 89% of our sales of crops were sold to 10 well-known customers, both multinational or local. Of these customers, the first four cases represented almost 63% of our sales and the remaining six represented approximately 26% of our net sales in the course of that year.

Rice

Rough rice is available for sale commencing after the harvest of each year. White rice availability is based on our milling capacity. ~~70%~~72% of our total rice production is sold into the export market, with the remainder sold in Argentina in the retail market. We export approximately ~~21%~~36% of our exported volume to Brazil, 30% to the European Union; and the balance to the Middle East, ~~73% balance to~~ other Latin American countries, Central America ~~Europe~~ and Africa. We sell approximately ~~30%~~28% of our rice in the Argentine retail market through ~~two~~three brands we own that have a 18% market share. Local rice prices are driven by regional supply demand and ~~exchange rate in Brazil.~~other world export prices. Our five largest customers for rice comprised approximately 50% of our sales in the year ended December 31, ~~2018.~~2020.

Dairy:

During ~~most~~2020, 67% of ~~2018, we sold~~ our ~~entire~~ raw milk production was destined to ~~three~~our processing facilities while the majority of the balance was sold to one dairy ~~producers. These companies manufacture a range of consumer products sold in Argentina and abroad.~~producer. We negotiate the price of raw milk on a monthly basis in accordance with domestic supply and ~~demand with these companies.~~demand. The price of the milk we sell is mainly based on the percentage of fat and protein that it contains and the temperature at which it is cooled. The price we obtain for our milk also rises or falls based on the content of bacteria and somatic cells. We are one of the top ten dairy processors in Argentina, considering our free-stall production of over 400 thousand liters per day and the raw milk we source from 130 farmers (110 in Morteros and 20 in Chivilcoy).

Sugar, Ethanol and Energy Business

Sugarcane

Sugarcane is the most efficient agricultural raw material used in the production of sugar and ethanol. Ethanol produced from sugarcane is highly regarded as an environmentally friendly biofuel with the following characteristics.

Renewable: Sugarcane ethanol, unlike coal or oil, which can be depleted, is produced from sugarcane plants that grow back year after year, provided that they are replanted every ~~six~~five to ~~eight~~seven years.

Sustainable: Sugarcane only needs to be replanted every five to seven years, as a semi-perennial crop. It can be harvested without uprooting the plant, and therefore its cultivation has less of an impact on the soil and the surrounding environment. The mechanization of the harvesting and planting process further improves sustainable agricultural management.

Energy Efficient: Sugarcane is highly efficient in converting sunlight, water and carbon dioxide into stored energy. The energy output of sugarcane is equal to nine times the energy input used in the production process, whereas the energy output of corn ethanol is only about 1.9 to 2.3 times the energy input used in its production process. Sugarcane produces seven times more energy compared to corn used for ethanol production.

Low Carbon Emissions: Compared to gasoline, sugarcane ethanol reduces greenhouse gases by more than 61%, which is the greatest reduction of any other liquid biofuel produced today in large quantities. Ethanol made from sugarcane is deemed an advanced biofuel by the United States EPA.

Synergies: The main raw material used in the production of electricity in sugar mills is bagasse, which is a by-product of the sugarcane milling process, allowing for a renewable source of ~~co- generated~~co-generated electricity.

Sugarcane is a tropical grass that grows best in locations with stable, warm temperatures and high humidity, although cold and dry winters are an important factor for the sucrose concentration of sugarcane. The climate and topography of the center-south region of Brazil is ideal for the cultivation of sugarcane and accounts for approximately 85% of Brazil’s sugarcane production.

As of December 31, ~~2018,~~2020, our sugarcane plantations consisted of ~~153,690~~176,651 hectares of sugarcane planted in ~~the center-south region of~~Minas Gerais and Mato Grosso do Sul, Brazil. Approximately ~~93%~~94% of our sugarcane is planted over land leased through agricultural partnerships. Under these agreements, our partners lease land to us for periods of between one and two sugarcane cycles, equivalent to periods of between 107 to 1214 years, on which we cultivate the sugarcane. Lease payments are based on the market value of the sugarcane set forth by the regulations of the State of Sao Paulo Sugarcane, Sugar and Alcohol Growers Counsel (Conselho dos Produtores deCana-de-Açúcar, Açúcar e Álcool do Estado de Sao Paulo, or “Consecana”). We planted and harvested approximately ~~94,6%~~94% of the total sugarcane we milled during ~~2018,~~2020, with the remaining ~~5,4%~~6% purchased directly from third parties at prices also determined by the Consecana system, based on the sucrose content of the cane and the prices of sugar and ethanol. The following table sets forth a breakdown during the time periods indicated of the amount of sugarcane we milled that was grown on our owned and leased land or purchased from third parties:


	Year Ended December 31,
	2020	2019	2018
	(In tons)
Grown on our owned and leased land	10,464,893	10,411,801	10,748,091
Purchased from third parties	638,307	433,335	611,112
Total	11,103,200	10,845,136	11,359,204

Year Ended December 31,
2018 2017 2016
(In tons)
Grown on our owned and leased land 10,748,091
9,068,844
10,164,671
Purchased from third parties 611,112
1,172,959
949,837
Total 11,359,203
10,241,803
11,114,508

Sugarcane Harvesting Cycle

The annual sugarcane harvesting period in the center-south region of Brazil begins in April and ends in November/December of each year. In Mato Grosso do Sul, where our cluster is located, the weather pattern is less seasonal than in Sao Paulo. Our wet season is dryer and our dry season is more humid than traditional sugarcane regions. As a consequence of this weather pattern, the sugar content (TRS) gap between the beginning and the end of the year compared to the peak of the harvest is much smaller than in Sao Paulo. This allows us to grow and harvest sugarcane year round with a minimal impact on sugar content (TRS).

Since the beginning of the 2016/17 harvest year we implemented a “non-stop” or “continuous harvest”. This means that we will harvest and crush sugarcane year-round, without stopping during the traditional off-season. This new strategy ~~will allow~~allows us to increase annual sugarcane milling and sugar, ethanol and energy production by approximately 10%. Another benefit of the system is that we ~~will be producing~~produce ethanol in the off-season, when market prices usually have a high premium to prices at harvest. In addition, cogeneration efficiency is related to harvested volumes and unrelated to TRS, enabling us to utilize our cogeneration potential during the whole year. Considering that approximately ~~85%~~87% of total costs are fixed, this model ~~will result~~resulted not only in higher revenues but also in the dilution of our fixed costs.

We plant several sugarcane varieties, depending on the quality of the soil, the local microclimate and the estimated date of harvest of such area. Once planted, sugarcane can be harvested, once a year, up to six to eight consecutive years. With each subsequent harvest, agricultural yields decrease. The plantations must be carefully managed and treated during the year in order to continue to attain sugar yields similar to a newly-planted crop.

We believe we own one of the most mechanized harvesting operations in Brazil. Our sugarcane harvesting process is currently ~~98%~~99% mechanized (100% at Angélica and Ivinhema mills and ~~86%~~94% at UMA mill) and the remaining 2%1% is harvested manually. Mechanized harvesting does not require burning prior to harvesting, significantly reducing environmental impact when compared to manual harvesting. In addition, the leaves that remain on the fields after the sugarcane has been harvested mechanically create a protective cover for the soil, reducing evaporation and protecting it from sunlight and erosion. This protective cover of leaves decomposes into organic material over time, which increases the fertility of the soil. Mechanized harvesting is more time efficient and has lower costs when compared to manual harvesting. Sugarcane is ready for harvesting when the crop’s sucrose content is at its highest level. Sucrose content and sugarcane yield (tons of cane per hectare) are important measures of productivity for our harvesting operations. Geographical factors, such as soil quality, topography and climate, as well as agricultural techniques that we implement, affect our productivity. Since most sugar mills produce both sugar and ethanol in variable mixes, the industry has adopted a conversion index for measuring sugar and ethanol production capacity, the Total Recoverable Sugar (“TRS”) index, which measures the amount of kilograms of sugar per ton of sugarcane.

During the ~~2018~~2020 harvest, our mills harvested sugarcane with an average TRS content of ~~128~~132 kg/ton and an average yield of 8979 tons of sugarcane per ~~hectare.~~hectare, compared to 133 kg/ton and 76 tons per hectare in 2019, respectively.

Once the sugarcane is harvested, it is transported to our mills for inspection and weighing. We utilize our own trucks and trailers for transportation purposes. The average transportation distance from the sugarcane fields to the mills is approximately 28 kilometers at UMA and 33 kilometers at Angélica and Ivinhema.

Our Sugar Mills

We currently own three sugar mills in Brazil, UMA, Angélica and Ivinhema. Our mills produce sugar, ethanol and energy, and have the flexibility to adjust the production mix between sugar and ethanol, to take advantage of more favorable market demand and prices at given points in time. As of December 31, ~~2018,~~2020, our sugar mills had a total installed crushing capacity of ~~12.4~~14.2 million tons of sugarcane, of which ~~11.3~~13.0 million tons correspond to our sugarcane cluster in Mato Grosso do Sul, Brazil. As of December 31, ~~2018,~~2020, we concluded the ~~2018~~2020 harvest crushing an aggregate volume of ~~11.4~~11.1 million tons of sugarcane.

The Usina Monte Alegre mill (“UMA”) is located in the state of Minas Gerais, Brazil, and has a sugarcane crushing capacity of ~~1.1~~1.2 million tons per year, full cogeneration capacity and an associated sugar brand with strong presence in the regional retail market (Aç(Açúcar Monte ~~Alegre~~)Alegre). UMA is also engaged in the production of organic sugar and during 2020 it exported the product for the first time, after having received the necessary certification to export organic sugar to the European Union. We plant and harvest 99.7% of the sugarcane milled at UMA, with the remaining 0.3% acquired from third parties. ~~On December 31, 2018,~~ UMA concluded its harvest operations for the ~~2018~~2020 season crushing 1.1 million tons of sugarcane.

Angélica is an advanced mill, completed in 2010 and located in the state of Mato Grosso do Sul, Brazil, with a total sugarcane crushing capacity of ~~5.4~~5.6 million tons per year. The mill is equipped with two modern high pressure boilers and three turbo-generators with the capacity to generate approximately 65105 MW of electricity through the use of sugarcane bagasse. The energy produced through this process is used to power the mill with an excess of ~~64MW~~70MW available for sale to the power grid. Angélica has the flexibility to vary production between ethanol and sugar from 60% to 40% for either product.

~~During mid-2011, we started the construction of our~~Our third mill, Ivinhema, is located in the state of Mato Grosso do Sul, approximately 45 kilometers south of our existing Angelica mill, ~~in order to complete~~completing our planned sugarcane cluster in that region. The construction of the first phase of the Ivinhema mill was completed during the beginning of 2013 reaching 2.0 million tons of sugarcane crushing capacity, and milling operations commenced on April 25, 2013. During early 2014, we began the construction of the second phase of the Ivinhema, adding 3.7 million tons of additional nominal crushing capacity. The investment consisted of expanding the milling equipment, building a new fluidized bed boiler, two new electrical generators and expanding the sugar factory and ethanol distillery, as well as expanding the sugarcane plantation and agricultural machinery.The construction was completed during mid-2015. Ivinhema now has a total milling capacity of 5.7 million tons per year. The mill is equipped with state-of-the-art technology including full cogeneration capacity, flexibility to produce sugar and ethanol and fully mechanized agricultural operations. Ivinhema has capacity to produce up to ~~331,250~~362,520 tons of sugar, ~~331,250~~362,520 cubic meters of ethanol and ~~389,550~~612,000 MWh of energy exports.

~~We are currently undertaking an expansion project to increase the nominal crushing capacity by 30%. The project will be implemented in two phases~~

- Phase 1 is complete and consisted in expanding Angelica’s crushing capacity by 0.9 million tons throughout 2017 and 2018. Crushing capacity was expanded by 150 tons/hour by installing larger mill rollers in the first mill, and expanding the sugar centrifugation and ethanol filtration processes. Crushing will grow gradually and reach full capacity by 2019.

- Phase 2 will consist of expanding Ivinhema’s capacity by 2.1 million tons (400 tons/hour), between 2018 and 2022. This will be achieved by installing a new mill (#6) expanding the sugarcane reception, juice treatment and sugar factory. Crushing will grow gradually and reach full capacity in 2023.

We plant and harvest 94% of the sugarcane milled at our cluster, with the remaining 6% acquired from third parties. On December 31, 2018, our sugarcane cluster concluded its harvest operations for the 2018 season, crushing 10.3 million tons of sugarcane.

Our Main Products

The following table sets forth a breakdown of our production volumes by product for the years indicated:


	Year Ended December 31,
	2020	2019	2018
Sugar (tons) (1)	646,981	213,256	344,137
Ethanol (cubic meters)	502,170	756,494	675,001
Energy (MWh exported)	717,915	853,139	705,539

Year Ended December 31,
2018 2017 2016
Sugar (tons) 344,137
567,068
701,060
Ethanol (cubic meters) 675,001
434,015
422,395
Energy (MWh exported) 705,539
712,425
751,037
(1) Includes 8,659 tons of organic sugar in 2020, 1,783 tons in 2019 and 7,012 tons in 2018.

The following table sets forth our sales for each of the sugarcane by-products we produce for the years indicated:


	Year Ended December 31,				Year Ended December 31,
	2018	2017	2016		2020	2019	2018
	(In thousands of $)				(In thousands of $)
Sugar	128,377	305,688	330,895	Sugar	171,102	97,710	128,377
Ethanol	324,661	241,650	211,451	Ethanol	199,062	373,847	324,661
Energy	57,797	62,218	53,995	Energy	41,169	59,701	57,797
Other	103	1,063	351	Other	126	525	103
Total	510,938	610,619	596,692	Total	411,459	531,783	510,938

Year ended December 31, ~~2018~~2020 as compared to year ended December 31, ~~2017~~2019

The following table sets forth certain financial information with respect to our consolidated results of operations for the years indicated.


	2020	2019	Chg (%) 2020-2019
	(In thousands of $)
Sales of goods and services rendered	817,764	887,138	(7.8)	%
Cost of goods sold and services rendered	(611,946)	(671,173)	(8.8)	%
Initial recognition and Changes in fair value of biological assets and agricultural produce	122,729	68,589	78.9	%
Changes in net realizable value of agricultural produce after harvest	7,005	1,825	283.8	%
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	335,552	286,379	17.2	%
General and administrative expenses	(53,428)	(57,202)	(6.6)	%
Selling expenses	(95,058)	(106,972)	(11.1)	%
Other operating income, net	1,987	(822)	(341.7)	%
Profit from Operations Before Financing and Taxation	189,053	121,383	55.7	%
Finance income	26,054	8,979	190.2	%
Finance costs	(213,776)	(126,111)	69.5	%
Other financial results - Net gain of inflation effects on the monetary items	12,064	16,911	(28.7)	%
Financial results, net	(175,658)	(100,221)	75.3	%
Profit / Before Income Tax	13,395	21,162	(36.7)	%
Income tax Expense	(12,325)	(20,820)	(40.8)	%
Profit for the Year	1,070	342	212.9	%

120

2018 2017 Chg (%) 2018-2017
(In thousands of $)
Sales of goods and services rendered 793,239
933,178
(15.0 )%
Cost of goods sold and services rendered (609,965 ) (766,727 ) (20.4 )%
Initial recognition and Changes in fair value of biological assets and agricultural produce 16,195
63,220
(74.4 )%
Changes in net realizable value of agricultural produce after harvest (909 ) 8,852
(110.3 )%
Margin on Manufacturing and Agricultural Activities Before Operating Expenses 198,560
238,523
(16.8 )%
General and administrative expenses (56,080 ) (57,299 ) (2.1 )%
Selling expenses (90,215 ) (95,399 ) (5.4 )%
Other operating income, net 104,232
43,763
138.2 %
Profit from Operations Before Financing and Taxation 156,497
129,588
20.8 %
Finance income 8,581
11,744
(26.9 )%
Finance costs (271,263 ) (131,349 ) 106.5 %
Other financial results - Net gain of inflation effects on the monetary items 81,928
—
100.0 %
Financial results, net (180,754 ) (119,605 ) 51.1 %
(Loss) / Profit Before Income Tax (24,257 ) 9,983
(343.0 )%
Income tax Benefit 1,024
4,992
(83.1 )%
(Loss) / Profit for the Year (23,233 ) 14,975
(255.1 )%

Sales of Goods and Services Rendered


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total as per statement of income
	(In thousands of $)
2020	168,461	101,862	133,474	2,508	411,459	817,764
2019	166,446	101,156	83,822	3,931	531,783	887,138

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2018 155,418
95,403
29,710
1,770
510,938
793,239
2017 197,222
86,478
37,523
1,336
610,619
933,178

Total sales of goods and service rendered totaled ~~$793.2~~$817.8 million, ~~15.0% less~~7.8% lower than in ~~2017,~~2019, primarily as a result of:

~~Sales decreased $99.7~~•A $120.3 million decrease in our Sugar, Ethanol and Energy segment, mainly due to: (i) ~~23.5% lower prices of sugar, from $371.6 per ton in 2017 to $284.3 per ton in 2018; (ii)~~ a ~~8.3%~~9.1% decrease in ~~the price of ethanol, from $549.6 per cubic meter in 2017 to $503.8 per cubic meter in 2018; (iii)~~a~~13.2% decrease in the volume of energy sold, from 860.8 MWh in 2017 to 747.2 MWh in 2018; and (iv) a 2.5% decrease in the~~ volume of sugar and ethanol sold measured in TRS ~~(Total Recoverable Sugar)~~(1), from ~~1.60 million~~1,648 thousand tons during 2019 to 1,498 in ~~2017~~2020; (ii) a 1.6% lower volume of energy sold, (iii) a 16.7% decrease in ethanol price, from $488.0 per m3 in 2019 to ~~1.56 million tons~~$406.5 per m3 in ~~2018.~~ 2020, (iv) a 7.8% decrease in sugar price, from $289.6 per ton in 2019 to $266.9 per ton in 2020; and (v) a 30.0 % decrease in energy price, from $59.6 MWh in 2019 to $41.7 MWh in 2020.

The decrease in volume of sugar and ethanol sold measured in TRS was mainly due to: (i) a reduction from 106.3 thousand tons of sugar processed from third parties during 2019, to null in 2020; and (ii) a decrease of 15.0 thousand tons measured in TRS in 2019, compared to an increase in inventories ~~build-up,~~from an increase of ~~48.8~~10.4 thousand tons measured in TRS during ~~2018 compared to an inventories sell-off of 36.4 thousand tons~~2020. Partially offset by (i) a 1.5% increase in production measured in TRS ~~in 2017. This was partially offset~~equivalent, from 1,508 thousand tons during 2019, to 1,531 thousand tons during 2020, mainly explained by a ~~11.8%~~90% increase ~~year-over-year~~in sugar production, from 337.4 tons during 2019 to 641.1 tons during 2020, our high degree of flexibility allowed us to divert our production to sugar taking advantage of the higher relative prices. The increase in production is mainly due (i) a 1.8% increase in sugarcane milled, from ~~10.2~~10.9 million tons during ~~2017~~2019 to ~~11.4~~11.1 million tons ~~in 2018 due to (i) a 2.7%~~during 2020, mainly explained by an increase in daily milling per hour from 2,074 tons per hour in 2017 to 2,130 tons per hour in 2018 due to enhancements and investments at industrial level in concordance with the long term plan of the company; (ii) increase in effective milling days from 221 days in 2017, to 231 days in 2018, due to adequate weather conditions; and (iii) a 4.9% increase in sugarcane yields, from 85.1 tons per hectare in 2017 to 89.3 tons per hectare in 2018, that ensured cane availability.

capacity.

The ~~decrease in~~lower volume of energy sold was ~~due to (a) lower third parties energy purchases from 167.0 MWh during 2017 to 72.0 MWh for 2018; (b)~~mainly explained by a ~~10.8%~~17.8% decrease in cogeneration efficiency, from ~~69.6 MWh~~78.7 KWh per ton during ~~2017,~~2019, to ~~62.1 MWh~~64.7 KWh per ton in ~~2018, which is primarily~~2020 due to our decision of suspending the ~~fact that: (i) energy consumption in Angelica is now higher as a result~~purchase of ~~the increase in crushing capacity; (ii) during 2018 we adopted a strategy~~wood chips to ~~redirect steam to maximize the production of ethanol, that consumes more energy. This decrease was~~third parties, partially offset by a ~~7.1%~~29.2% increase in third parties energy ~~prices,~~commercialization, from ~~$72.3 per MWh during 2017, to $77.4 per~~173.1 MWh in ~~2018.~~2019 to 223.7 MWh in 2020.

121

(1)On average, one metric ton of sugarcane contains 140 kilograms of TRS. While a mill can produce either sugar or ethanol, the TRS input requirements differ between these two products. On average, 1.045 kilograms of TRS equivalent are required to produce 1.0 kilogram of sugar, while the amount of TRS required to produce 1 liter of ethanol is 1.691 kilograms

The following figure sets forth the variables that determine our Sugar and Ethanol sales:


~~(1)~~	On average, one metric ton of sugarcane contains 140 kilograms of TRS. While a mill can produce either sugar or ethanol, the TRS input requirements differ between these two products. On average, 1.045 kilograms of TRS equivalent are required to produce 1.0 kilogram of sugar, while the amount of TRS required to produce 1 liter of ethanol is 1.691 kilograms

The following figure sets forth the variables that determine our Energy sales:

The following table sets forth the breakdown of sales of manufactured products for the years indicated.


	Year ended December 31,				Year ended December 31,				Year ended December 31,
	2020	2019	Chg %		2020	2019	Chg %		2020	2019	Chg %
	(in millions of $)				(in thousand units)				(in dollars per unit)
Ethanol (M3)	199.1	373.8	(46.8)	%	489.7	766.0	(36.1)	%	406.5	488.0	(16.7)	%
Sugar (tons)	171.1	97.7	75.1	%	641.1	337.4	90.0	%	266.9	289.6	(7.8)	%
Energy (MWh)	41.2	59.7	(31.0)	%	987.2	1,001.2	(1.4)	%	41.7	59.6	(30.0)	%
Others	0.1	0.6	(78.0)	%
TOTAL	411.5	531.8	(22.6)	%

This decrease in sales of goods and services rendered was partially offset by:

•A $49.7 million increase in our Dairy segment mainly cause by (i) a 58.7% increase in volume of dairy products sold including fluid, powder and processed milk, cream, cheese and dairy products measured in liters of milk equivalent, from 215.5 million liters in 2019, to 342.1 million liters in 2020, explained by (a) an increase of 20.9% of fluid milk production in our free-stalls, from 120.1 million liters in 2019, to 145.2 million liters in 2020, due to a 20% increase in the number of

122

Year ended December 31, Year ended December 31, Year ended December 31,
2018 2017 Chg % 2018 2017 Chg % 2018 2017 Chg %
(in millions of $) (in thousand units) (in dollars per unit)
Ethanol (M3) 324.7
241.7
34.3 % 644.4
439.7
46.6 % 503.8
549.6
(8.3 )%
Sugar (tons) 128.4
305.7
(58.0 )% 451.5
822.6
(45.1 )% 284.3
371.6
(23.5 )%
Energy (MWh) 57.8
62.2
(7.1 )% 747.2
860.8
(13.2 )% 77.4
72.3
7.1 %
Others 0.1
1.1
(90.9 )%

TOTAL 510.9
610.6
(16.3 )%

cows from 9,066 average heads in 2019 to 10,876 average heads in 2020; and (b) an increase in fluid milk purchased to third parties to be processed in our industrial facilities, from 60.4 million liters in 2019 to 155.2 million liters in 2020.

This increase is partially offset by (i) a 9.7% decrease in average milk prices, from $0.31 per liter of fluid milk equivalent in 2019 to $0.28 per liter in 2020 despite new products processed with higher margins; and (ii) a negative effect of hyperinflation accounting and translation for our Argentine operations, from a negative impact of $0.9 million effect in 2019 compared to a negative impact of $2.0 million during the same period in 2020.

~~Sales decreased $41.8~~•A $2.0 million increase in our Crops segment mainly driven ~~by:~~by (i) a ~~$9.1 million~~40.8% increase in the volume of peanut sold, from 30.6 thousand tons during 2019, to 43.1 thousand tons in 2020, driven by, (a) higher yields, from 3.1 tons per hectare in 2019 to 3.3 tons per hectare in 2020; and (b) higher planted area from 15.5 thousand hectares in 2019, to 16.8 thousand hectares in 2020, (ii) a 14.9% increase in peanut prices from $944.2 per ton in 2019, to $1084.5 per ton in 2020, (iii) a 31.0% increase in the volume of sunflower sold, from 8.4 thousand tons during 2019, to 11.0 thousand tons during 2020, explained by an increase in planted area, from 3.8 thousand hectares in 2019, to 6.8 thousand hectares in 2020; and (iv) a positive effect of hyperinflation accounting and translation ~~in 2018~~ for our Argentine operations, ~~(See "Hyperinflation~~from a negative impact of $2.5 million effect in ~~Argentina"); (ii)~~2019 compared to a ~~6.5%~~negative impact of $1.7 million during the same period in 2020.

This increase was partially offset by (i) a 24.9% decrease in the volume of ~~soybean~~wheat sold, from ~~282.5~~108.8 thousand tons during 2019 to 81.7 thousand tons in ~~2017 to 264.1~~2020, driven by (a) a decrease in inventories of 14.1 thousand tons in ~~2018; and (iii)~~2019, compared to an increase in inventories of 30.6 thousand tons in 2020, (b) lower planted area from 40.2 thousand hectares in 2019, to 32.8 thousand hectares in 2020; (ii) a ~~59.5%~~24.3% decrease in the volume of corn sold, from ~~599.1~~413.9 thousand tons ~~in 2017~~during 2019, to ~~242.5~~313.2 thousand tons ~~in 2018. The decrease in the volume of soybean and~~

~~corn sold was mainly~~during 2020, driven by (a) lower yields, from ~~2.7~~6.5 tons per hectare in ~~2017~~2019 to ~~2.1~~6.0 tons per hectare in ~~2018 for soybean and from 5.4 tons per hectare~~2020, (b) a decrease in ~~2017 to 4.2 tons per hectare in 2018 for corn. Variation in yields was caused by dry weather conditions during January and March~~inventories of 2018, which is the critical period for water requirement and development of the crops, affecting mainly north and center regions of Argentina, and Uruguay. This decrease was partially offset by (i) higher sales volumes of wheat, from 103.639.7 thousand tons in ~~2017~~2019, compared to ~~174.5~~an increase in inventories of 2.9 thousand tons in ~~2018; (ii) higher prices of soybean,~~2020; and (c) a reduction from ~~$302.7 per ton in 2017 to $318.9 per ton in 2018 due to higher proportion of FOB sales; (iii) higher prices~~120.0 thousand tons of corn commercialized from ~~$143.9 per ton~~third parties in ~~2017,~~2019 compared to ~~$159.3 per ton~~null in ~~2018; and (iv) greater selling prices of wheat, from $161.5 per ton in 2017 to $187.4 per ton in 2018.~~

2020.

The following table sets forth the breakdown of sales for the years indicated.


	Year ended December 31,				Year ended December 31,				Year ended December 31,
	2020	2019	% Chg		2020	2019	% Chg		2020	2019	% Chg
	(In millions of $)				(In thousands of tons)				(In $ per ton)
Soybean	44.3	45.6	(2.9)	%	189.3	197.8	(4.3)	%	234.1	230.6	1.5	%
Corn (1)	44.5	59.7	(25.5)	%	313.2	413.9	(24.3)	%	142.1	144.2	(1.5)	%
Wheat (2)	14.7	19.8	(25.8)	%	81.7	108.8	(24.9)	%	180.0	182.0	(1.1)	%
Peanut	46.7	28.9	61.6	%	43.1	30.6	40.8	%	1,084.5	944.2	14.9	%
Sunflower	11.1	8.2	35.4	%	11.0	8.4	29.6	%	1012.9	976.9	3.7	%
Others	7.2	4.2	71.4	%

Total	168.5	166.4	1.3	%

Year ended December 31, Year ended December 31, Year ended December 31,
2018 2017 % Chg 2018 2017 % Chg 2018 2017 % Chg
(In millions of $) (In thousands of tons) (In $ per ton)
Soybean 84.2
85.5
(1.5 )% 264.1
282.5
(6.5 )% 318.9
302.7
5.4 %
Corn (1) 38.6
86.2
(55.2 )% 242.5
599.1
(59.5 )% 159.3
143.9
10.7 %
Wheat (2) 32.7
16.7
95.8 % 174.5
103.6
68.4 % 187.4
161.5
16.0 %
Others 9.0
8.7
3.4 %

Adjustments (3) (9.1 ) —
100.0 %
Total 155.4
197.2
(21.2 )%


~~(1)~~	~~Includes sorghum, popcorn and peanut.~~


~~(2)~~	~~Includes barley, rye, oats and chickpea.~~


~~(3)~~	~~Accumulated adjustment of Hyperinflation accounting translation for our Crops segment sales (See "Hyperinflation in Argentina").~~

(1)Includes sorghum and popcorn.

~~Sales decreased $7.8~~(2)Includes barley, rye, oats and chickpea.

•A $0.7 million in our Dairy segment mainly caused by (i) a $3.5 million effect of hyperinflation accounting and translation in 2018 for our Argentine operations (See "Hyperinflation in Argentina"); (ii) a 20% decrease in fluid milk prices from $0.35 per liter in 2017 to $0.28 per liter in 2018 due to sharp depreciation of the Argentine peso; and (iii) 0.4 thousand tons of powder milk stock build-up during 2018. This decrease was partially offset by (a) higher milk production volumes, from 93.2 million liters in 2017 to 101.3 million liters in 2018 and (b) the $1.8 million derived from electricity sales during 2018 compared to null sales in 2017 as we started to deliver energy from the new bio-digester that transforms effluents from our free stalls into renewal electricity. Higher milk production was due to 8.8% increase ~~in milking cows from 6,967 cows in 2017 to 7,581 cows in 2018, as we finished the construction of our third free stall and started populating it since September 2018.~~

~~This was partially offset by:~~

~~Sales increased $8.9 million~~ in our Rice segment, mainly ~~due to~~explained by (i) a ~~29.6%~~9.3% increase in average selling price from $431.4 per ton in 2019, to $471.4 per ton in 2020, partially offset by (i) a 5.5% decrease in the volume of white rice sold, from ~~140.5 thousand tons during 2017 to 182.1~~291.3 thousand tons in ~~2018;~~2019 to 275.4 thousand tons in 2020; and (ii) a ~~8.8% increase~~decrease in the sale of by products, from ~~$17.1 million during 2017 to $18.6~~$19.4 million in ~~2018. The increase~~2019, to $18.0 million in ~~the~~2020.

This decrease in volume of white rice sold is mainly ~~due~~driven by a decrease in inventories of 27.7 thousand tons of rough rice equivalent in 2019, compared to ~~(a)~~ a ~~16.9%~~decrease in inventories of 0.4 thousand tons of rough rice equivalent in 2020, partially offset by, (i) 13.6% increase in ~~rice~~ yields, from 5.9 tons per hectare ~~during 2017~~in 2019, to ~~6.9~~6.7 tons per hectare in ~~2018, and (b)~~2020, (ii) a ~~10.2%~~2.7% increase in ~~industrial efficiency and rice quality, which allowed us~~area from 40.4 thousand hectares in 2019, to ~~transform 1.77 tons of rough rice into 1 ton of white rice during 2017, and 1.59 tons of rough rice into 1 ton of white rice~~41.5 thousand hectares in 2018. The increase in volumes sold were partially offset by (i) a reduction in average selling prices from $493.8 per ton in 2017 to $447.3 per ton in 2018; and (ii) a $4.6 million effect of hyperinflation accounting and translation in 2018 for our Argentine operations (See "Hyperinflation in Argentina").2020.

The profit of our agricultural produce is recognized under the line items “Initial recognition and changes in fair value of biological assets and agricultural produce” and “Changes in net realizable value of agricultural produce after harvest”. When the agricultural produce is sold to third parties, we do not record any additional profit or loss as the gain or loss has already been recognized.

123

The profit of our manufactured products is recognized when they are sold. The cost of manufactured products includes, among others, the cost of agricultural produce transferred internally at fair market value (i.e. harvested sugarcane, rough rice, fluid milk, etc).

Cost of Goods Sold and Services Rendered

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2018 (156,936 ) (74,973 ) (28,127 ) (1,313 ) (348,616 ) (609,965 )
2017 (196,302 ) (71,087 ) (36,979 ) (853 ) (461,506 ) (766,727 )


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total as per statement of income
	(In thousands of $)
2020	(149,250)	(73,830)	(116,007)	(1,962)	(270,897)	(611,946)
2019	(156,510)	(73,951)	(76,694)	(3,452)	(360,566)	(671,173)

In the case of our agricultural produce sold to third parties (i.e. soybean, corn, wheat and fluid milk), the value of Cost of Goods and Services Rendered is equal to the value of Sales and Services Rendered. The profit of these products is fully recognized under the line items “Initial recognition and changes in fair value of biological assets and agricultural produce” and “Changes in net realizable value of agricultural produce after harvest.” When the agricultural produce is sold to third parties, we do not record any additional profit or loss as the gain or loss has already been recognized.

In the case of our manufactured products sold to third parties (i.e. sugar, ethanol, energy, white rice, processed milk and ~~white rice)~~peanut), the profit is recognized when they are sold. The Cost of Goods and Services Rendered of these products includes, among others, the cost of the agricultural produce (i.e. harvested sugarcane and rough rice), which is the raw material used in the industrial process and is transferred internally from the farm to the industry at fair market value.

Cost of manufactured products sold and services rendered totaled ~~$610.0~~$611.9 million, ~~20.4%~~8.8% less than ~~2017.~~2019. This decrease was primarily due to:

•a ~~$112.9~~$89.7 million decrease in our Sugar, Ethanol and Energy segment, mainly due ~~to:~~to (i) the ~~2.6%~~9.1% decrease in the volume

of sugar and ethanol sold measured in ~~TRS; and (ii)~~TRS coupled with a ~~22.4%~~17.3% lower unitary cost in dollar terms, ~~due to (a)~~mostly explained by the ~~10.9% increase in sugarcane milling, which diluted fixed cost per tons; (b)~~ depreciation of the Brazilian Real ~~in 2018 compared to 2017;~~ and ~~(c)~~ industrial efficiencies that reduces our costs.

•a ~~47.9% decrease in third parties' purchase of sugarcane, which has a higher cost, from 1.2 million tons during 2017 to 0.6 million tons in 2018.~~

~~a $39.4~~$7.3 million decrease in our ~~Crops~~Crop segment, explained by mainly by lower peanut costs due to higher depreciation of the ~~decrease in Sales of Goods and Services Rendered.~~Argentinian Peso coupled with higher industrial efficiencies.

•a ~~$8.9~~$0.1 million decrease ~~in our Dairy segment mainly due to the decrease in Sales of Goods and Services Rendered.~~

~~These figures were partially offset by:~~

~~a $3.9 million increase~~ in our Rice segment, mainly due to (i) a 5.5% decrease in the ~~29.6%~~volume of white rice sold, coupled with a higher positive impact of hyperinflation accounting and translations.

Partially offset by:

•a $39.3 million increase in our Dairy segment, explained by (i) increase in volume of processed milk sold by our new industrial facilities in Morteros and Chivilcoy, from 182.3 thousand liters in 2019 compared to 297.6 thousand liters in 2020, partially offset by ~~18.6% lower unitary costs, from $506.1 per ton in 2017 to $411.8 per ton in 2018, due to higher yields and depreciation of~~(i) the ~~Argentine Peso, coupled with~~ effect of hyperinflation accounting and translation ~~in 2018~~ for our Argentine operations, ~~(See "Hyperinflation~~from positive impact of $0.8 million effect in ~~Argentina").~~2019 compared to a positive impact of $1.7 million during the same period in 2020; and (ii) lower fluid milk prices, from $0.31 per liter in 2019 to $0.28 per liter in 2020.

Initial Recognition and Changes in Fair Value of Biological Assets and Agricultural Produce


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
	(In thousands of $)
2020	40,843	18,677	12,344	1,256	49,609	122,729
2019	29,741	12,215	13,510	13	13,110	68,589

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2018 28,667
4,125
5,455
(1,199 ) (20,853 ) 16,195
2017 17,158
10,236
11,769
267
23,790
63,220

124

Initial recognition and changes in fair value of biological assets and agricultural produce totaled $ ~~16.2~~122.7 million, ~~74.4% less~~78.9% more than ~~2017.~~2019. This ~~decrease~~increase was primarily due to:

•A ~~$44.6~~$36.5 million ~~decrease~~increase in our Sugar, Ethanol and Energy segment from a gain of ~~$23.8~~$13.1 million in ~~2017~~2019 (of which ~~$2.9~~$0.9 million were unrealized ~~gains)~~losses) to a ~~loss~~gain of ~~$20.9~~$49.6 million during ~~2018~~the same period in 2020 (which includes ~~$37.8~~$19.7 million of unrealized ~~losses)~~gains). This ~~decrease~~increase was mainly due to:

- –A ~~$40.7~~$20.6 million ~~decrease~~increase in the recognition ofat fair value ~~minus the~~less cost ofto sell of non-harvested sugarcane, from ~~$2.9 million in 2017 to~~ a loss of ~~$37.8~~$0.9 million in ~~2018, which was~~2019 to a gain of $.19.7 million in 2020, mainly generated by a ~~decrease~~6.4% increase in ~~projected yields as a result of below average rainfalls during the last quarter of 2018,~~sugarcane plantation coupled with ~~a decrease~~lower costs in ~~projected sugar prices.~~dollar terms during 2020, compared to 2019.

- –A ~~$3.9~~$15.9 million ~~decrease~~increase in the recognition at fair value less cost to sell of harvested sugarcane, from ~~$20.9~~a gain of $14.0 million during 2019 to a gain of $29.9 million in ~~2017 to $16.9 million during 2018~~2020 due to the ~~decrease~~increase in ~~sugar prices.~~sugarcane yields coupled with lower costs in dollar terms during 2020, compared to 2019.

~~a $6.3~~•A $11.1 million ~~decrease~~increase in our ~~Dairy~~Crops segment ~~, mainly~~from $29.7 million during 2019 (of which $24.2 million were realized) to $40.8 million in 2020 (of which $29.7 million were realized). This increase is primarily due ~~to the decrease~~to:

–A $11.4 million increase in the recognition at fair value less cost to sell of ~~fluid milk,~~harvested crops at the point of harvest, from ~~$11.8~~$28.1 million in ~~2017 (of which $9.9 million were realized)~~2019, to ~~$5.5~~$39.5 million in ~~2018 (of which $7.9 million were realized),~~the same period in 2020, mainly due to (i) ~~18.3% lower fluid milk prices;~~higher grain production; and (ii) ~~a $4.0 million~~ lower ~~cow valuation~~production costs in dollar terms, due to the depreciation of the Argentine Peso.

Partially offset by:

–The recognition at fair value less cost to sell of non-harvested crops, decreased $0.6 million, from a gain of $2.2 million in 2019 to a gain of $1.6 million in 2020, mainly due to unfavorable weather conditions which decreased expected yields for corn and soybean.

–A negative impact of $0.5 million effect of hyperinflation accounting and translation ~~in 2018~~ for our Argentine operations ~~(See "Hyperinflation~~during 2019, compared to a negative impact of $0.9 million in ~~Argentina"). This decrease was partially offset by the 8.8%~~2020.

•A $6.5 million increase ~~in milking cows from an average of 6,967 heads in 2017, to an average of 7,581 heads in 2018, which are used to populate free-stall #3.~~

~~a $6.1 million decrease~~ in our Rice segment, from ~~$10.2~~$12.2 million during ~~2017~~2019 (of which ~~$ 4.9~~$12.7 million were realized) to ~~$4.1~~$18.7 million in ~~2018~~2020 (of which ~~$9.1~~$15.5 million were realized),. This increase is due to:

–A $4.4 million increase in the recognition at fair value less cost to sell of harvested rice, from a gain of $32.3 million in 2019 to a gain of $36.7 million in 2020, mainly explained by (i) a ~~decrease~~0.8% increase in yields, coupled with (ii) a 2.8% increase in planted area.

–A negative impact of ~~$4.8~~$1.0 million ~~caused by~~ effect of hyperinflation accounting and translation ~~in 2018~~ for our Argentine operations ~~(See "Hyperinflation~~during 2019, compared to a negative impact of $0.8 million in ~~Argentina"); and (ii) lower~~2020.

–A $3.6 million increase in the recognition at fair value less cost to sell of non-harvested rice, from a loss of $1.3 million in 2019 to a gain of ~~$3.7~~$2.2 million in ~~2017~~2020, mainly explained by higher projected prices.

Partially offset by:

•a $1.2 million decrease in our Dairy segment, from $13.5 million in 2019 (of which $13.9 million were realized) to $12.3 million in 2020 (of which $17.8 million were realized), mainly due to:

–A $4.3 million decrease in the recognition at fair value less cost to sell of unrealized production, from a loss of $0.9

million in 2019 to a loss of ~~$3.9~~$5.2 million in ~~2018,~~the same period in 2020, mainly ~~explained by normalization of expected yields~~due to a lower milk selling price, from 0.31 dollar per liter in ~~comparison with exceptional weather conditions for rice harvest during 2017/2018.~~2019 to 0.28 dollar per liter in 2020 resulting in lower valuation herd.

~~These decreases were partially~~Partially offset by:

–A ~~$11.5~~$3.8 million increase in ~~our Crops segment~~the recognition at fair value less cost to sell of realized production, from ~~$17.2~~$13.9 million during

2019 to $17.7 million in ~~2017 (of which $4.4 million were unrealized) to $28.7 million during 2018 (of which $8.2 million were unrealized). This increase is primarily due to:~~

~~- An increase of $23.4 million in the recognition of fair value minus the cost of sell of harvested crops, from $15.2 million in 2017 to $38.6 million in 2018,~~2020, mainly due to ~~lower production costs~~(i) a 20.0% increase in ~~dollar terms, due~~milking cows, from 9,066 average heads in 2019 to ~~the depreciation of the Argentine Peso,~~

10,876 average heads in 2020 partially offset ~~by; (i) a $7.8 million effect of hyperinflation accounting and translation in 2018 for our Argentine operations (See "Hyperinflation in Argentina"); and~~by (ii) lower ~~grain production.~~milk selling prices, from 0.31 dollar per liter in 2019 to 0.28 dollar per liter in 2020.

125

Changes in Net Realizable Value of Agricultural Produce after Harvest

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2018 (909 ) —
—
—
—
(909 )
2017 8,852
—
—
—
—
8,852


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Total
	(In thousands of $)
2020	7,007	—	(2)	—	—	7,005
2019	1,825	—	—	—	—	1,825

Changes in net realizable value of agricultural produce after harvest ~~totaled negative $0.9~~increased $5.2 million, ~~$9.8 less than 2017.~~from a gain of $1.8 million during 2019 to a gain of $7.0 million in 2020. This ~~result~~increase is mainly explained by ~~lower gains from the valuation~~higher valuations of our ~~agricultural produce~~crops held in ~~inventories.~~inventories due to higher prices during the second half of 2020.

General and Administrative Expenses

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Corporate Total
(In thousands of $)
2018 (4,202 ) (5,939 ) (2,280 ) (164 ) (25,302 ) (18,193 ) (56,080 )
2017 (2,981 ) (4,699 ) (1,058 ) (174 ) (26,806 ) (21,581 ) (57,299 )


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Land Transformation	Corporate	Total
	(In thousands of $)
2020	(6,694)	(6,899)	(4,788)	(118)	(15,942)	(4)	(18,983)	(53,428)
2019	(5,533)	(6,605)	(4,098)	(150)	(21,925)	—	(18,891)	(57,202)

Our general and administrative expenses totaled ~~$56.1~~$53.4 million, ~~2.1%~~6.6% less than ~~2017.~~2019. The decrease is mainly explained ~~as a result of~~by the depreciation of the ~~Brazilian Real~~Argentine Peso and the ~~Argentine peso, which~~Brazilian Real. This was partially offset by ~~the effect of hyperinflation accounting and translation in 2018 for our Argentine operations (See "Hyperinflation in Argentina"), which generated~~ an increase in depreciation expenses for Crops, Rice and Dairy ~~segments.~~segments, mainly due to recent investments. See also “Capital Expenditure Commitments.”

Selling Expenses

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Corporate Total
(In thousands of $)
2018 (5,447 ) (14,090 ) (942 ) (149 ) (69,442 ) (145 ) (90,215 )
2017 (7,501 ) (13,324 ) (711 ) (156 ) (73,664 ) (43 ) (95,399 )


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Corporate	Total
	(In thousands of $)
2020	(17,998)	(13,923)	(13,540)	(214)	(49,188)	(195)	(95,058)
2019	(12,724)	(20,574)	(6,234)	(182)	(67,116)	(142)	(106,972)

Selling expenses totaled ~~$90.2~~$95.1 million, ~~5.4%~~11.1% less than ~~2017.~~ 2019.

This decrease is explained by:

•a ~~$4.2~~$17.9 million decrease in the Sugar, Ethanol and Energy segment, due to ~~the decrease in~~lower taxes paid due to sales of sugar and ethanol ~~by 2.6%~~ measured in TRS and lower energy sales, coupled with the depreciation of the Brazilian Real translated to lower expenses in ~~2018.~~dollar terms.

•a ~~$2.1~~$6.7 million decrease in the Rice segment, due to the decrease in white rice sales by 5.5%, coupled with lower tax rate in export market sales, partially offset with the effect of hyperinflation accounting and translation for our Argentine operations, from positive impact of $0.5 million effect during 2019 compared to a positive impact of $0.2 million in 2020.

126

Partially offset by:

•a $5.3 million increase in our Crops segment due to (i) ~~a 16.6% decrease in total segment sales;~~higher export taxes paid from export sales of peanut and sunflowers due to higher sales, (ii) ~~no direct exports realized during 2018, compared to 83.7 thousand tons of corn exported in 2017, which generated $0.7 million fobbing costs; and (iii) by~~the effect of hyperinflation accounting and translation ~~in 2018~~ for our Argentine operations, ~~(See "Hyperinflation~~from positive impact of $0.1 million effect during 2019 compared to a positive impact of $0.3 million in ~~Argentina").~~2020.

~~These decreases were partially offset by:~~

~~$0.8~~•a $7.3 million increase in ~~our Rice~~the Dairy segment due to ~~a 29.6% increase~~higher exports of powder milk, from 6.2 thousand tons during 2019 to 13.5 thousand tons in ~~white rice sales, partially offset by effect~~2020, coupled with higher freight costs of ~~hyperinflation accounting and translation in 2018 for~~ our ~~Argentine operations (See "Hyperinflation in Argentina").~~milk destined to internal market from processing facilities to distribution centers of wholesalers.

Other Operating Income, Net

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Land Transformation Corporate Total
(In thousands of $)
2018 7,163
217
(997 ) 13,396
48,357
36,227
(131 ) 104,232
2017 7,719
724
662
4,279
30,419
—
(40 ) 43,763


Year ended December 31,	Crops	Rice	Dairy	All other segments	Sugar, Ethanol and Energy	Land Transformation	Corporate	Total
	(In thousands of $)
2020	(12,853)	713	(186)	1,067	5,495	7,920	(169)	1,987
2019	(2,508)	267	(703)	(354)	126	2,504	(152)	(822)

Other operating income increased ~~138.2%,~~2.8 million, from ~~$43.8~~a loss of $0.8 million in ~~2017,~~2019, to ~~$104.2~~a gain of $2.0 million during ~~2018,~~2020, primarily due to:

•a $36.2 million increase in our Land Transformation segment due to the sale of the "Rio de Janeiro" and "Conquista" farms, located in Brazil, for a total consideration of $53.0 million for 9,300 croppable hectares.

~~a $17.9~~$5.4 million increase in our Sugar, Ethanol & Energy segment mainly explained by the mark-to-market effect of our sugar hedge ~~positions.~~position, from a gain of $0.1 million in 2019, to a gain of $5.5 million in 2020.

•a ~~$9.1~~$5.4 million increase in ~~all other segments~~Land Transformation segment due to $2.5 million in 2019 for the sale of "Alto Alegre" farm, located in Brazil, for a total consideration of $16.8 million for 6,080 hectares, compared to $7.9 million in 2020 for the sale the sale of Huelen, a 4,633 hectare farm located in La Pampa Province, Argentina for a total consideration of $30.1 million of which $10.1 million were collected at the closing date; and the sale of "Abolengo" farm, a 811 hectare plot in Argentina's humid Pampas for a total consideration of $12.1 million.

•a $1.4 million increase in All Other Segments related to higher net gains from the fair value adjustment of ~~investment~~Investment property, composed of own farms under lease agreements ~~coupled with $2.7~~(i.e. beef cattle farms).

Partially offset by:

•a $10.3 million ~~increase by~~decrease in our Crops segment due to the mark-to-market effect of ~~hyperinflation accounting~~our soybean and ~~translation in 2018 for our Argentine operations (See "Hyperinflation in Argentina").~~corn hedge positions.

Financial Results, Net

Our ~~net~~ financial results, ~~decreased from~~net, represented a loss of ~~$119.6~~$175.7 million in ~~2017~~2020, compared to a loss of ~~$180.8~~$100.2 million ~~during 2018.~~in 2019. This was mainly due to a ~~373.3%~~323.6% increase in foreign exchange losses, ~~caused~~from a loss of $25.8 million in 2019 to a loss of $109.3 million during the same period in 2020, mainly explained by ~~a depreciation in~~higher impact on our dollar denominated debt by the ~~Argentine Peso, which increased from 17% in 2017 to 102.3% in 2018, and the higher~~3.7% nominal depreciation of the Brazilian Real ~~which increased from 6%~~ in ~~2017~~2019 compared to a ~~17.2%~~29.2% nominal depreciation of the Brazilian Real in ~~2018. Both effects produced foreign exchange losses of $183.2 million in 2018 compared to losses of $38.7 million in 2017.~~2020. This ~~loss~~ was partially offset by ~~an increase~~a loss of ~~$81.9~~$3.1 million in other expenses in 2019, compared to a gain of $17.1 in other income in 2020 due to ~~the effect of hyperinflation accounting and translation.~~positive results in blue chip swap operations in Argentina.

127

The following table sets forth the breakdown of financial results for the periods indicated.


	Year ended December 31,							Year ended December 31,
	2018		2017					2020	2019
	(In $ thousand)				% Change			(In $ thousand)		% Change
Interest income	7,915		11,230		(29.5	)%	Interest income	4,084	6,390	(36.1)	%
Interest expense	(51,577	)	(52,308	)	(1.4	)%	Interest expense	(58,282)	(56,468)	3.2	%
Finance Cost - Right-of-use Assets							Finance Cost - Right-of-use Assets	(12,532)	(9,524)	31.6	%
Foreign exchange losses, net	(183,195	)	(38,708	)	373.3	%	Foreign exchange losses, net	(109,266)	(25,779)	323.9	%
Cash flow hedge – transfer from equity	(26,693	)	(20,758	)	28.6	%	Cash flow hedge – transfer from equity	(24,363)	(25,484)	(4.4)	%
Loss from interest rate /foreign exchange rate derivative financial instruments	(3,024	)	(2,163	)	39.8	%
Gain from interest rate /foreign exchange rate derivative financial instruments							Gain from interest rate /foreign exchange rate derivative financial instruments	92	1,189	(92.3)	%
Taxes							Taxes	(4,559)	(4,364)	4.5	%
Other Income/(Expenses)							Other Income/(Expenses)	17,104	(3,092)	(653.2)	%
Other financial results - Net gain of inflation effects on the monetary items	81,928		—		100.0	%	Other financial results - Net gain of inflation effects on the monetary items	12,064	16,911	(28.7)	%
Taxes	(3,136	)	(3,705	)	(15.4	)%
Other Expenses	(2,972	)	(13,193	)	(77.5	)%
Total Financial Results	(180,754	)	(119,605	)	51.1	%	Total Financial Results	(175,658)	(100,221)	75.3	%

Income Tax benefit / (expense)

Current income tax ~~benefit~~ totaled ~~a gain~~an expense of ~~$1.0~~$ 12.3 million, ~~in 2018,~~ which equates to ~~a consolidated~~an effective rate of 92% compared to an expense of $0.8 millions which equates and effective tax rate of ~~4.2%~~98%. ~~For the fiscal year 2017, we registered an~~

The income tax ~~gain~~calculated at the applicable tax rates to profits in the respective countries in 2020 would be $4.2 million expense. The main adjustments to this amount are: (i) $19.2 million related to the application of ~~$5.0 million. In 2018, we recorded~~IAS 29 on Shareholders' equity of our Argentine Subsidiaries; (ii) the recognition of unused tax losses of $ 0.7 million and (iii) $7.6 million related to non deductible items. These effects were partially offset by (i) non-taxable income in the amount of ~~$13.0~~$11.0 million ~~mainly~~ related to a Complementary Law in Brazil, which allows the Company to consider as non-taxable income the Government grant related to the ICMS ~~tax. This~~tax and (ii) $6.3 million gain for the effect ~~was partially offset by a loss~~ of ~~$5.8~~the changes in the statutory income tax in Argentina.

The income tax calculated at the applicable tax rates to profits in the respective countries in 2019 would be $7.2 million expense. The main adjustments to this amount are: (i) $23.8 million related to ~~the effects of~~ the application of IAS 29 on ~~Argentina~~ Shareholders' ~~equity. In 2017,~~equity of our Argentine Subsidiaries; (ii) the ~~effective~~recognition of unused tax ~~rate was 50.0% based on non-deductible expenses~~losses for $ 3 million and (iii) $1.5 million related to non deductible items. These effects were partially offset by (i) non-taxable income in the amount of $11.5 million related to a Complementary Law in Brazil, which allows the Company to consider as non-taxable income the Government grant related to the ICMS tax and ~~Uruguay~~(ii) $3.1 million gain for ~~an amount~~the effect of ~~1.4 million.~~the changes in the statutory income tax in Argentina.

~~Loss~~

Profit/(Loss) for the Year

As a result of the foregoing, our net income during ~~2018 decreased $38.2~~2020 increased $0.7 million, from a gain of ~~$15.0~~$0.3 million in ~~2017~~2019 to a ~~loss~~gain of ~~$23.2~~$1.1 million in ~~2018.~~2019.

YEAR ENDED DECEMBER 31, 2019 COMPARED TO YEAR ENDED DECEMBER 31, 2018

~~Year ended December 31, 2017 as compared to~~See “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, ~~2016~~

~~The following table sets forth certain financial information with respect to our consolidated results of operations~~2019 for ~~the periods indicated.~~

2017 2016 Chg (%) 2017 - 2016
(In thousands of $)
Sales of goods and services rendered 933,178
869,235
7.4 %
Cost of goods sold and services rendered (766,727 ) (678,581 ) 13.0 %
Initial recognition and Changes in fair value of biological assets and agricultural produce 63,220
125,456
(49.6 )%
Changes in net realizable value of agricultural produce after harvest 8,852
(5,841 ) (251.5 )%
Margin on Manufacturing and Agricultural Activities Before Operating Expenses 238,523
310,269
(23.1 )%
General and administrative expenses (57,299 ) (50,750 ) 12.9 %
Selling expenses (95,399 ) (80,673 ) 18.3 %
Other operating income, net 43,763
(8,297 ) (627.5 )%
Profit from Operations Before Financing and Taxation 129,588
170,549
(24.0 )%
Finance income 11,744
7,957
47.6 %
Finance costs (131,349 ) (165,380 ) (20.6 )%
Financial results, net (119,605 ) (157,423 ) (24.0 )%
Profit Before Income Tax 9,983
13,126
(23.9 )%
Income tax Benefit / (Expense) 4,992
(9,387 ) (153.2 )%
Profit for the Year 14,975
3,739
300.5 %

~~Sales of Goods and Services Rendered~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2017 197,222
86,478
37,523
1,336
610,619
933,178
2016 142,124
96,562
32,897
960
596,692
869,235

~~Sales of manufactured products and services rendered increased 7.4%, from $869.2 million in 2016 to $933.2 million in 2017, primarily as~~ a ~~result of:~~

~~a $55.1 million increase in our Crops segment mainly driven by: (i) a 101.9% increase in the volume of corn sold, from~~

294.7 thousand tons in 2016 to 595.1 thousand tons in 2017; (ii) a 15.9% increase in the volume of soybean sold, from 243.8 thousand tons in 2016 to 282.5 thousand tons in 2017; and (iii) a 7.4% increase in soybean prices, from $261.7 per ton in 2016 to $281.1 per ton in 2017. The increase in the volume of corn sold was mainly driven by higher sales of commercialized corn from third parties profiting from arbitrage opportunities, from 59.8 thousand in 2016 to 337.5 thousand tons in 2017. The increase in the volume of soybean sold was mainly due to: (a) higher sales of commercialization of third parties soybean, from 0.8 thousand tons in 2016 to 22.8 thousand tons in 2017; and (b) a 4.2% increase in yields for soybean second harvest, from 2.4 tons/hectare in 2016 to 2.5 tons/hectare in 2017. This increase is partially offset by a 20.1% decrease in the volume of wheat sold, from 129.6 thousand tons in 2016 to 103.6 thousand tons in 2017; mainly due to a 37.9% decrease in wheat production, from 115.3 thousands in 2016 to 71.6 thousands in 2017, caused by unfavorable weather conditions during 2017.

~~The following table sets forth the breakdown of sales of manufactured products~~comparative discussion for the years ~~indicated.~~

Year ended December 31, Year ended December 31, Year ended December 31,
2017 2016 % Chg 2017 2016 % Chg 2017 2016 % Chg
(In millions of $) (In thousands of tons) (In $ per ton)
Soybean 79.4
63.8
24.5 % 282.5
243.8
15.9 % 281.1
261.7
7.4 %
Corn (1) 86.2
48.5
77.7 % 595.1
294.7
101.9 % 144.9
164.6
(12.0 )%
Wheat (2) 16.7
18.2
(8.2 )% 103.6
129.6
(20.1 )% 161.5
140.4
15.0 %
Others 14.8
11.6
27.6 %

Total 197.2
142.1
38.8 %


~~(1)~~	~~Includes sorghum, popcorn and peanut.~~


~~(2)~~	~~Includes barley~~

a $13.9 million increase in our Sugar, Ethanol and Energy segment, mainly due to: (i) a 2.9% increase in the price of ethanol,from $534.1 per cubic meter in 2016 to $549.6 per cubic meter in 2017; (ii) a 37.7% increase in the price of energy, from $52.5 per MWh in 2016 to $72.3 in 2017; and (iii) a 2.3% increase in the volume of sugar and ethanol sold, measured in TRS (Total Recoverable Sugar), from 1.57 million tons in 2016 to 1.60 million tons in 2017. The increase in volume of sugar and ethanol sold was due to an inventories sell-off, of 36.4 thousand tons measured in TRS in 2017 compared to an inventories build-up of 76.1 thousand tons measured in TRS in 2016; partially offset by above average rains during the last quarter of 2017, that generated a 7.9% decrease in the sugarcane milled, from 11.1 million tons in 2016 to 10.2 million tons in 2017, which caused disruptions in harvesting operations. The unfavorable weather during 2017 was partially mitigated by improvements in operational efficiency, with a 3.5% increase in daily milling, from 45.1 thousand tons milled per day to 46.6 thousand tons milled per day. The increase in the volume of sugar and ethanol sold, was partially offset by: (a) a 3.5% decrease in the price of sugar, from $385.1 per ton in 2016 to $371.6 per ton in 2017; and (b)16.3% decrease in the volume of energy sold, from 1.0 million MWh in 2016 to 0.9 million MWh in 2017, caused by the decrease in sugarcane milled.

~~The following figure sets forth the variables that determine our Sugar and Ethanol sales:~~


~~(1)~~	On average, one metric ton of sugarcane contains 140 kilograms of TRS. While a mill can produce either sugar or ethanol, the TRS input requirements differ between these two products. On average, 1.045 kilograms of TRS equivalent are required to produce 1.0 kilogram of sugar, while the amount of TRS required to produce 1 liter of ethanol is 1.691 kilograms

~~The following figure sets forth the variables that determine our Energy sales:~~

~~The following table sets forth the breakdown of sales of manufactured products for the years indicated.~~

Year ended December 31, Year ended December 31, Year ended December 31,
2017 2016 Chg % 2017 2016 Chg % 2017 2016 Chg %
(in millions of $) (in thousand units) (in dollars per unit)
Ethanol (M3) 241.7
211.5
14.3 % 439.7
395.9
11.1 % 549.6

534.1
2.9 %
Sugar (tons) 305.7
330.9
(7.6 )% 822.6
859.3
(4.3 )% 371.6

385.1
(3.5 )%
Energy (MWh) 62.2
54.0
15.2 % 860.8
1,028.3
(16.3 )% 72.3

52.5
37.7 %
Others 1.1
0.4
175.0 %

TOTAL 610.6
596.7
2.3 %

a $4.6 million increase in our Dairy segment mainly caused by: (i) a 25.0% increase in fluid milk prices from $0.28 per liter in 2016 to $0.35 per liter in 2017 due to unfavorable weather conditions in Argentina that negatively impacted national production; and (ii) a 6.2% increase in the amount of liters of fluid milk sold, from 87.0 million liters in 2016 to 92.3 million liters in 2017. The increase in the amount of volume sold is attributable to a 1.3% increase in the size of the milking cow herd in order to supply our new free stall 3, from an average of 6,880 heads in 2016 to an average of 6,967 heads in 2017. In our free-stall production system, cows are confined in barns where they are protected from harsh weather conditions (rain, wind, heat, etc.), and as a result, our productivity was not affected by the unfavorable weather conditions.

~~This was partially offset by:~~

a $10.1 million decrease in our Rice segment, mainly due to a 10.5% decrease in the volume of white rice sold measured in tons of rough rice, from 278.2 thousand tons in 2016 to 248.9 thousand tons in 2017. The decrease in the volume of white rice sold is explained by an inventories build-up of 30.5 thousand tons in 2017 compared to an inventories sell-off of 25.8 thousand tons in 2016, this is due to a commercial strategy to postpone white rice sales to the first half of 2018 in order to capture higher prices and enhance margins. The decrease in the segment was partially offset by a 1.5% increase in the price of white rice sold measured in rough rice, from $271.1 per ton in 2016 to $275.1 per ton in 2017.

The profit of our agricultural produce is recognized under the line items “Initial recognition and changes in fair value of biological assets and agricultural produce” and “Changes in net realizable value of agricultural produce after harvest”. When the agricultural produce is sold to third parties we do not record any additional profit as the gain or loss had already been recognized.

~~Cost of Goods Sold and Services Rendered~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2017 (196,302 ) (71,087 ) (36,979 ) (853 ) (461,506 ) (766,727 )
2016 (141,731 ) (83,574 ) (32,571 ) (212 ) (420,493 ) (678,581 )

In the case of our manufactured products sold to third parties (i.e. sugar, ethanol, energy and white rice), the profit is recognized when they are sold. The Cost of Goods and Services Rendered of these products includes, among others, the cost of the agricultural produce (i.e. harvested sugarcane and rough rice), which is the raw material used in the industrial process and is transferred internally from the farm to the industry at fair market value.

~~Cost of goods sold and services rendered increased 13.0%, from $678.6 million in 2016 to $766.7 million in 2017. This increase was primarily due to:~~

$41.0 million increase in our Sugar, Ethanol and Energy segment, mainly due to: (i) the 2.3% increase in the volume of sugar and ethanol sold measured in TRS; (ii) a 23.5% increase in third party cane, from 0.9 million tons in 2016 to 1.2 million tons in 2017; (iii) a higher unitary cost in dollar terms due to a 13.3% decrease in sugarcane yields, from 98.2 tons per hectare in 2016 to 85.1 tons per hectare in 2017; (iv) the elimination of the PIS COFINS(tax on ethanol) rebate during 2017, which negatively affected our industrial costs, coupled with a 8.3% increase in the amount of tax to be paid per m3 of ethanol sold ; and (v) the appreciation of the Brazilian Real since the beginning of 2016.

~~These figures were partially offset by:~~

a $12.5 million decrease in our Rice segment, mainly due to the 10.5% decrease in volume sold; which was partially offset by a 4.9% decrease in the unitary cost in dollar terms due to efficiencies gained during 2017.

~~Initial Recognition and Changes in Fair Value of Biological Assets and Agricultural Produce~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2017 17,158
10,236
11,769
267
23,790
63,220
2016 48,790
10,498
5,476
(13 ) 60,705
125,456

~~Initial recognition and changes in fair value of biological assets and agricultural produce decreased 49.6%, from $125.5 million in 2016 to $63.2 million in 2017. The decrease was mainly due to:~~

A $36.9 million decrease in our Sugar, Ethanol and Energy segment from $60.7 million in 2016 (of which $2.9 million were unrealized) to $23.8 million in 2017 (of which $0.3 million were unrealized). This decrease was mainly due to:

– a $39.5 million decrease in the recognition at fair value less cost to sell of harvested sugarcane at the point of harvest, from $60.4 million in 2016 to $20.9 million in 2017 due to: (i) a 3.5% decrease in sugar prices; and (ii) a 13.3% decrease

~~in sugarcane yields, from 98.2 tons per hectare in 2016 to 85.1 tons per hectare in 2017, due to above than average yields achieved in 2016 as a result of favorable weather conditions.~~

– a $2.6 million increase in the recognition at fair value less cost to sell of non-harvested sugarcane, from $0.3 million in 2016 to $2.9 million in the same period in 2017, mainly generated by: (i) 6.7% increase in our sugarcane plantation, from 134.6 thousand hectares in 2016 to 143.6 thousand hectares in 2017, in order to achieve our long term plan to increase milling in our cluster by 30%; and (ii) the 7.9% decrease in milling in 2017, as a result of leaving a higher amount of unharvested sugarcane in the fields, which has more time to grow and leads to a higher biological asset value.

a $31.6 million decrease in our Crops segment from $48.8 million in 2016 (of which $4.4 million were unrealized) to $17.2 million in 2017 (of which $5.8 million were unrealized). This decrease is primarily due to a decrease of $32.9 million in the recognition at fair value less cost to sell of crops at the point of harvest, from $48.1 million in 2016 to $15.2 million in 2017, mainly due to: (i) lower commodities prices, mainly corn, at the moment of harvesting; and (ii) higher production costs due to the appreciation of the Argentine Peso in real terms.

~~These decreases were partially offset by:~~

a $6.3 million increase in our Dairy segment, mainly due to the increase in the recognition at fair value less cost to sell of fluid milk, from $5.5 million in 2016 (of which $1.3 million were unrealized) to $11.8 million in 2017 (of which $1.5 million were unrealized), mainly due to the 26.2% increase in fluid milk prices.

~~Changes in Net Realizable Value of Agricultural Produce after Harvest~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Total
(In thousands of $)
2017 8,852
—
—
—
—
8,852
2016 (5,841 ) —
—
—
—
(5,841 )

Changes in net realizable value of agricultural produce after harvest is mainly composed by: (i) profit or loss from commodity price fluctuations during the period of time the agricultural produce is in inventory, which impacts its fair value; (ii) profit or loss from the valuation of forward contracts related to agricultural produce in inventory; and (iii) profit from direct exports. Changes in net realizable value of agricultural produce after harvest increased from a loss of $5.8 million in 2016 to a gain of $8.9 million in 2017. This increase is mainly explained by the increase in soybean prices that impacted positively in the valuation of our inventory, while during 2016 our soybean inventories suffered a negative impact, as soybean prices increased above our forward contracts.

~~General and Administrative Expenses~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Corporate Total
(In thousands of $)
2017 (2,981 ) (4,699 ) (1,058 ) (174 ) (26,806 ) (21,581 ) (57,299 )
2016 (2,770 ) (3,373 ) (983 ) (290 ) (22,648 ) (20,686 ) (50,750 )

~~Our general and administrative expenses increased 12.9%, from $50.8 million in 2016 to $57.3 million in 2017. The increase is mainly explained by the annual average appreciation of the Brazilian Real.~~

~~Selling Expenses~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Corporate Total
(In thousands of $)
2017 (7,501 ) (13,324 ) (711 ) (156 ) (73,664 ) (43 ) (95,399 )
2016 (5,692 ) (11,583 ) (752 ) (49 ) (62,518 ) (79 ) (80,673 )

~~Selling expenses increased 18.3%, from $80.7 million in 2016 to $95.4 million in 2017, mainly explained by the increase ethanol sales coupled with the appreciation of the Brazilian Real.~~

~~Other Operating Income, Net~~

Year ended December 31, Crops Rice Dairy All other segments Sugar, Ethanol and Energy Corporate Total
(In thousands of $)
2017 7,719
724
662
4,279
30,419
(40 ) 43,763
2016 (8,787 ) 402
686
22,546
(8,903 ) (192 ) 5,752

~~Other operating income increased from a $5.8 million loss in 2016 to a $43.8 million gain in 2017, primarily due to:~~

~~a $39.3 million increase in our Sugar, Ethanol & Energy segment mainly explained by the mark-to-market effect of our sugar hedge positions;~~

~~a $16.5 million increase in our Crops segment due to the mark-to-market effect of our soybean and corn hedge positions.~~

~~These figures were partially offset by:~~

a $18.3 decrease in our All other segments due to the net gain of $9.7 from the fair value adjustment of investment property, composed of farms under lease agreements and a $8.5 million decrease in all other segments due to the gain proceeding from an arbitration proceeding against Marfrig Argentina claiming unpaid invoices in 2016, respectively.

~~Other operating income, net of our Rice, Dairy, Land Transformation and Corporate segments remained essentially unchanged.~~

~~Financial Results, Net~~

Our financial results, net improved from a loss of $157.4 million in 2016 to a loss of $119.6 million in 2017. This was mainly due to the $20.8 million loss that was reclassified from Equity to the “Financial Result, net” line item 2017, in comparison with the $85.2 million loss that was reclassified in 2016, as a substantial portion of our debt matured in 2016 (see “Hedge Accounting-Cash Flow Hedge” described on Note 2 to our Consolidated Financial Statements). This was partially offset by: (i) an increase in our FX losses, from a loss of $19.0 million in 2016 to a loss of $ 38.7 million in 2017, due to the 17% and 6% depreciation of the Argentine Peso and the Brazilian Real, respectively in 2017, compared to the 14% depreciation of the Argentine Peso and the 19% appreciation of the Brazilian Real in 2016; and (ii) the accrue of prepayment related expenses that correspond to existing loans in Brazil, $10.8 million, as the proceeds from our bond issuance were used to repay existing debt of our Brazilian subsidiaries.

~~The following table sets forth the breakdown of financial results for the years indicated.~~

Year ended December 31,
2017 2016
(In $ thousand) % Change
Interest income 11,230
7,671
46.4 %
Interest expense (52,308 ) (48,198 ) 8.5 %
Foreign exchange losses, net (38,708 ) (19,062 ) 103.1 %
Cash flow hedge – transfer from equity (20,758 ) (85,214 ) (75.6 )%
Loss from interest rate /foreign exchange rate derivative financial instruments (2,163 ) (5,694 ) (62.0 )%
Taxes (3,705 ) (2,719 ) 36.3 %
Other Expenses (13,193 ) (4,207 ) 213.6 %
Total Financial Results (119,605 ) (157,423 ) (24.0 )%

~~Income Tax (expense) / benefit~~

~~For the year~~ ended December 31, 2017, we recognized a consolidated income tax gain of $5.0 million on gain before income taxes of $10.0 million. For the year ended December 31, 2016 we recognized a consolidated income tax expense of $12.9 million ongain before income taxes of $27.2 million. In 2017 the benefit was mainly explained by (1) the recognition of previously unrecognized tax losses now recouped for an amount of $7.6 million in Luxembourg, due to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered; (2) non-taxable income in Brazil, which resulted in non recognition of $2.4 million of income tax2019 and (3) a gain of $1.7 million related to the changes of the statutory income tax rate in Argentina (described on Note 2 to our Consolidated Financial Statements). These effects were partially offset by non-deductible expenses in Brazil and unused tax losses recognized in our operations in Argentina for $2.3 million due to a worsened projections derived for lower expected commodities prices. The effective tax rates were 47.5% for the year ended December 31, 2016 due to non-deductible expenses, mainly related to losses from derivatives in Uruguay ($4.1 million).2018.

~~Profit / (Loss) for the Year~~

~~As a result of the foregoing, our net result for the year increased from $14.3 million in 2016 to $15.0 million in 2017.~~

B.LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are and will be influenced by a variety of factors, including:

•our ability to generate cash flows from our operations;

128

•the level of our outstanding indebtedness and the interest that we are obligated to pay on such outstanding indebtedness;

•our capital expenditure requirements, which consist primarily of investments in new farmland, in our operations, in equipment and plant facilities and maintenance costs; and

•our working capital requirements.

Our principal sources of liquidity have traditionally consisted of shareholders’ contributions, short and long term borrowings and proceeds received from the disposition of transformed farmland or subsidiaries.

We believe that our working capital will be sufficient during the next 12 months to meet our liquidity requirements.

129

Years ended December 31, ~~2018, 2017~~2020 and ~~2016~~2019

The table below reflects our statements of Cash Flow for the fiscal years ended December 31, ~~2018, 2017~~2020 and ~~2016.~~2019.


	Year ended December 31,
	2020	2019 (*)
	(in thousands of $)
Cash and cash equivalents at the beginning of the year	290,276	273,635
Effect of exchange rate changes and inflation on cash and cash equivalents (d)	(35,284)	(17,967)
Net cash generated from operating activities (a)	257,125	322,110
Net cash used in investing activities (b)	(121,916)	(249,639)
Net cash used from financing activities (c)	(53,919)	(37,863)
Cash and cash equivalents at the end of the year	336,282	290,276

Year ended December 31,
2018 2017 2016 (*)
(in thousands of $)
Cash and cash equivalents at the beginning of the year 269,195
158,568
198,894
Effect of exchange rate changes and inflation on cash and cash equivalents (d) (18,297 ) (8,337 ) 7,969
Net cash generated from operating activities (a) 218,513
237,105
255,401
Net cash used in investing activities (b) (174,922 ) (188,335 ) (122,014 )
Net cash used / generated from financing activities (c) (20,854 ) 70,194
(181,682 )
Cash and cash equivalents at the end of the year 273,635
269,195
158,568

~~(*) Prior periods have been adjusted to reflect the Company's change in accounting policy for Investment properties.~~

(a) ~~For the year 2018 it includes 7,598~~Includes (14,956) and 23,550 of the ~~combine~~combined effect of IAS 29 and IAS 21 of the Argentine ~~subsidiaries.~~subsidiaries for 2020 and 2019, respectively.

(b) ~~For the year 2018 it includes 4,122~~Includes (429) and 2,922 of the ~~combine~~combined effect of IAS 29 and IAS 21 of the Argentine ~~subsidiaries.~~subsidiaries for 2020 and 2019, respectively.

(c) ~~For the year 2018 it includes (8,231)~~Includes 15,694 and (14,340) of the ~~combine~~combined effect of IAS 29 and IAS 21 of the Argentine ~~subsidiaries.~~subsidiaries for 2020 and 2019, respectively.

(d) ~~For the year 2018 it include (3,489)~~Includes (309) and (12,132) of the ~~combine~~combined effect of IAS 29 and IAS 21 of the Argentine ~~subsidiaries.~~subsidiaries for 2020 and 2019, respectively.

(*) Prior periods have been recast to reflect the Company's change in accounting policy for the reclassification within financial results as explained in Note 34.1 of our Consolidated Financial Statements. See Note 34 to our Consolidated Financial Statements.

Operating Activities

Year ended December 31, ~~2018~~2020

For the year ended December 31, ~~2018,~~2020, net cash generated by operating activities was ~~$218.5 million .~~$257.1 million. During this year, we generated a net ~~loss~~gain of ~~$23.2~~$1.1 million that included non-cash charges relating primarily to depreciation of Property, plant and ~~amortization~~equipment and Right of ~~$154.3~~use assets for $182.7 million, interest and other financial expenses, net of $44.3 million, $36.2 million gain from the sale of farmland and other assets, $13.4 million net gain from the fair value adjustment of investment properties, $51.5 million gain from derivative financial instruments and forwards, $30.3 million gain from the unrealized portion of “Initial recognition and changes in fair value of biological assets”, $183.2$47.7 million, foreign exchanges losses ~~$26.7~~for $109.3 million, $24.4 million loss as a result of the reclassification from Equity to Financial results, net in connection with the cash flow hedge accounting, and ~~$81.9~~$12.1 million net gain of inflation effects on the monetary items.

In addition, other changes in operating asset and liability balances resulted in a net decrease in cash of ~~$18.7~~$85.2 million, primarily due to an increase trade and other receivables. During ~~2018~~2020 income tax paid totaled ~~$1.9~~$2.1 million.

The net cash generated by operating activities in ~~2018~~2020 includes ~~$7.6~~$15.0 million of the negative combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries. (See “Item 5. Operating and Financial Review and Prospects-A. Operating Results- Critical Accounting Policies and Estimates”).

Year ended December 31, 2019

For the year ended December 31, 2019, net cash generated by operating activities was $322.1 million. During this year, we generated a net gain of $0.3 million that included non-cash charges relating primarily to depreciation and amortization of $219.6 million, interest, finance cost related to lease liabilities and other financial expenses, net of $59.9 million, $25.8 million foreign exchanges losses, $25.5 million loss as a result of the reclassification from Equity to Financial results, net in connection with the cash flow hedge accounting, and $16.9 million net gain of inflation effects on the monetary items.

In addition, other changes in operating asset and liability balances resulted in a net decrease in cash of $15.6 million, primarily due to an increase trade and other receivables. During 2019 income tax paid totaled $2.3 million.

130

The net cash generated by operating activities in 2019 includes $23.6 million of the positive combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries. (See “Item 5. Operating and Financial Review and Prospects-A. Operating Results- Critical Accounting Policies and Estimates”).

Investing Activities

Year ended December 31, ~~2017~~

For the year ended December 31, 2017, net cash generated by operating activities was $237.1 million . During this year, we generated a net income of $15.0 million that included non-cash charges relating primarily to depreciation and amortization of $151.0 million, interest and other financial expenses, net of $53.4 million, $38.7 million gain from derivative financial instruments and forwards, $14.6 million gain from the unrealized portion of “Initial recognition and changes in fair value of biological assets”, $38.7 million foreign exchanges losses, and $20.8 million loss as a result of the reclassification from Equity to Financial Results, net in connection with the cash flow hedge accounting.

In addition, other changes in operating asset and liability balances resulted in a net decrease in cash of $18.7 million, primarily due to an increase the cash collected for the derivative positions. During 2017 income tax paid totaled $2.9 million.

~~Year ended December 31, 2016~~

For the year ended December 31, 2016, net cash generated by operating activities was $255.4 million. During this year, we generated a net income of $14.3 million that included non-cash charges relating primarily to depreciation and amortization of $127.5 million, income tax expense of $12.9 million, $14.0 million net gain from the fair value adjustment of investment properties, interest and other financial expenses, net of $44.7 million, $21.7 million loss from derivative financial instruments and forwards, $9.8 million gain from the unrealized portion of “Initial recognition and changes in fair value of biological assets”, $19.1 million foreign exchanges losses, and $85.2 million loss as a result of the reclassification from Equity to Financial Results, net in connection with the cash flow hedge accounting.

In addition, other changes in operating asset and liability balances resulted in a net decrease in cash of $51.5 million, primarily due to an increase in trade and other receivables, an increase in inventories totaling $22.3 million, an increase in biological asset of $23.7 million, and an increase of $17.9 million from derivative financial instruments. These effects were partially offset by an increase of $39.1 million in trade and other payables.

~~Investing Activities~~

~~Year ended December 31, 2018~~2020

Net cash used in investing activities totaled ~~$174.9~~$121.9 million in the year ended December 31, ~~2018,~~2020, primarily due to ~~$92.7~~$63.8 million related to the renewal and expansion of our sugarcane plantation; ~~$114.4~~$76.3 million, ~~related to~~mainly driven by the purchase of agricultural and industrial ~~equipment.~~equipment related to the ongoing investment in the expansion of crushing capacity in Ivinhema, the purchase of industrial equipment for our peanut processing facility coupled with renewal and expansion of our dairy herd for our new free stall. Net inflows from investments activities were related to proceeds from the sale of farmland and other assets for ~~$31.5~~$29.7 million and interest income of ~~$7.9~~$25.4 million.

Net cash used in investing activities includes ~~$4.1~~$0.4 million of the negative combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries.

Year ended December 31, 2019

Net cash used in investing activities totaled $249.6 million in the year ended December 31, 2019, primarily due to $98.6 million related to the renewal and expansion of our sugarcane plantation; $156.6 million, mainly driven by the purchase of agricultural and industrial equipment related to the ongoing investment in the expansion of crushing capacity in Ivinhema and the acquisition of two milk processing facilities, two brands from SanCor and one peanut processing facility. Net inflows from investments activities were related to proceeds from the sale of farmland and other assets for $8.5 million and interest income of $7.2 million.

Net cash used in investing activities includes $2.9 million of the positive combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries.

Financing Activities

Year ended December 31, ~~2017~~

Net cash used in investing activities totaled $188.3 million in the year ended December 31, 2017, primarily due to $84.0 million related to the renewal and expansion of our sugarcane plantation; $114.5 million related to purchase of agricultural and industrial equipment. Net inflows from investments activities were related to interest income of $11.2 million.

~~Year ended December 31, 2016~~

Net cash used in investing activities totaled $122.0 million in the year ended December 31, 2016, primarily due to $74.2 million related to the renewal and expansion of our sugarcane plantation; $58.3 million related to purchase of agricultural and industrial equipment. Net inflows from investments activities were related to interest income of $7.7 million.

~~Financing Activities~~

~~Year ended December 31, 2018~~2020

Net cash used in financing activities was ~~$20.9~~$53.9 million in the year ended December 31, ~~2018,~~2020, primarily derived from the incurrence in ~~Argentina~~Brazil of new long term loan ~~by Rabobank~~ for ~~$50~~$116.0 million and from the incurrence of short term loan of ~~$318.1~~$207.2 million for our working capital expenditures. All these effects were partially offset by payments of long and short term borrowings for ~~$124.3~~$34.8 million and ~~$190.6~~$233.5 million, respectively. During this period ~~Interest~~interest paid net totaled ~~$50.0~~$60.0 million and re-purchase of our own shares totaled ~~$15.7~~$4.4 million.

Net cash used in financing activities includes ~~$8.2~~$15.7 million of the negative combine effect of IAS 29 and IAS 21 of the Argentine ~~subsidiaries.~~subsidiaries, of which $1.6 million negative effect are over Interest paid.

Year ended December 31, ~~2017~~2019

Net cash ~~provided~~used by financing activities was ~~$70.2~~$37.9 million in the year ended December 31, ~~2017,~~2019, primarily derived from the ~~issuance~~incurrence in Brazil of ~~senior notes 2027~~new long term loan by Certificados de Recebíveis do Agronegócio (CRA) for ~~$495.7~~$99.2 million and from the incurrence of ~~a new syndicated long term loan by Rabobank and ING among others lenders in the amounts of $232.4 million and~~ short term loan of ~~$106.7~~$194.0 million for our working capital expenditures. All these effects were partially offset by payments of long and short term borrowings for $101.8 million and $131.5 million, respectively. ~~The main use of proceeds of the notes was the prepayment of long-term debt of our Brazilian subsidiaries. Accordingly, payments of long-term borrowings totaled $602.7 million.~~During this period Interest paid net totaled ~~$41.6~~$54.0 million and re-purchase of our own shares totaled ~~$38.4~~$4.3 million.

~~Year ended December 31, 2016~~

Net cash used in financing activities ~~was $181.7~~includes $14.3 million of the negative combine effect of IAS 29 and IAS 21 of the Argentine subsidiaries, of which $4.4 million positive effect are over Interest paid.

In December 2019, Adecoagro Vale do Ivinhema placed R$ 400.0 million in ~~the year ended December 31, 2016 primarily derived from net payment~~Certificados de Recebíveis do Agronegócio (CRA), due in November 2027 and bearing an interest of ~~borrowings in the amounts of $125.2 million. During this period, interest paid totaled $48.4 million and re-purchases of our own shares totaled $4.8 million.~~IPCA (Brazilian official inflation rate) + 3.80% per annum.

131

Cash and Cash Equivalents

Historically since our cash flows from operations were insufficient to fund our working capital needs and investment plans, we funded our operations with proceeds from short-term and long-term indebtedness and capital contributions from existing and new private investors. In 2011, we raised $421.8 million from an Initial Public Offering (“IPO”) and simultaneous private placement. As of December 31, ~~2018,~~2020, our cash and cash equivalents amounted to ~~$273.6~~$336.3 million.

However, we may need additional cash resources in the future to continue our investment plans. Also, we may need additional cash if we experience a change in business conditions or other developments. We also might need additional cash resources in the future if we find and wish to pursue opportunities for investment, acquisitions, strategic alliances or other similar investments. If we ever determine that our cash requirements exceed our amounts of cash and cash equivalents on hand, we might seek to issue debt or additional equity securities or obtain additional credit facilities or realize the disposition of transformed farmland and/or subsidiaries. Any issuance of equity securities could cause dilution for our shareholders. Any incurrence of additional indebtedness could increase our debt service obligations and cause us to become subject to additional restrictive operating and financial covenants, and could require that we pledge collateral to secure those borrowings, if permitted to do so. It is possible that, when we need additional cash resources, financing will not be available to us in amounts or on terms that would be acceptable to us or at all.

Indebtedness and Financial Instruments

The table below illustrates the maturity of our indebtedness (excluding obligations under finance leases) and our exposure to fixed and variable interest rates:


	As of December 31,			As of December 31,
	2018	2017		2020	2019
Fixed rate:			Fixed rate:
Less than 1 year(l)	105,708	132,998	Less than 1 year(l)	116,113	120,154
Between 1 and 2 years	16,287	35,762	Between 1 and 2 years	52,175	46,247
Between 2 and 3 years	25,704	20,097	Between 2 and 3 years	39,844	55,453
Between 3 and 4 years	43,507	20,130	Between 3 and 4 years	12,500	40,725
Between 4 and 5 years	26,415	16,310	Between 4 and 5 years	—	10,331
More than 5 years	505,456	495,754	More than 5 years	497,009	595,550
Total fixed rate:	723,077	721,051	Total fixed rate:	717,641	868,460
Variable rate:			Variable rate:
Less than 1 year(l)	37,724	21,833	Less than 1 year(l)	41,513	67,924
Between 1 and 2 years	17,278	22,871	Between 1 and 2 years	32,870	20,007
Between 2 and 3 years	29,861	17,945	Between 2 and 3 years	6,035	7,197
Between 3 and 4 years	22,886	18,215	Between 3 and 4 years	5,154	4,692
Between 4 and 5 years	18,251	11,164	Between 4 and 5 years	28,334	—
More than 5 years	12,444	4,774	More than 5 years	139,543	—
Total variable rate:	138,444	96,802	Total variable rate:	253,449	99,820
Total:	861,521	817,853	Total:	971,090	968,280


~~(1)~~	~~The Company plans to partially rollover its short term debt using new available lines of credit, or on using operating cash flow to cancel such debt.~~

(1)The Company plans to partially rollover its short term debt using new available lines of credit, or on using operating cash flow to cancel such debt.

Borrowings incurred by the Company’s subsidiaries in Brazil are repayable at various dates between January ~~2019~~2021 and ~~September 2024~~November 2027 and bear either fixed interest rates ranging from ~~2.5%~~2.50% to 7.95% per annum or variable rates based on LIBOR or other specific base-rates plus spreads ranging from ~~6.89%~~1.62% to ~~12.03%~~4.24% per annum. At December 31, ~~2018~~2020 there are no borrowings subject to LIBOR (six months). At December 2019, LIBOR (six months) was 2.88% ~~(2017: 1.84%)~~.

Borrowings incurred by the Company´s subsidiaries in Argentina are repayable at various dates between January ~~2019~~2021 and June ~~2024~~2028 and bear either fixed interest rates ranging from ~~4.50%~~2.75% and ~~7.00%~~7.0% per annum or variable rates based on LIBOR or other specific base-rates plus spreads of 4.0% for those borrowings denominated in U.S. Dollar, and a fixed interest rate ~~at 62.00%~~ranging from 30% to 39% per annum for those borrowings denominated in Argentine pesos.

132

Brazilian Subsidiaries

The main loans of the Company’s Brazilian Subsidiaries identified below are:


Bank	Grant date	Nominal amount		Capital outstanding as of December 31				Maturity date	Annual interest rate	Bank	Grant date	Nominal amount		Capital outstanding as of December 31				Maturity date	Annual interest rate
				2018			2017							2020			2019
		(In millions)		Millions of Reais		Millions of equivalent Dollars	Millions of equivalent Dollars					(In millions)		Millions of Reais		Millions of equivalent Dollars	Millions of equivalent Dollars
Banco Do Brasil (1)	October 2012	R$	130.0	R$	72.7	18.8	27.6	November 2022	2.94% minus 15% of performance bonus	Banco Do Brasil (1)	October 2012	R$	130.0	R$	36.8	7.08	13.4	November 2022	2.94% minus 15% of performance bonus
Itau BBA FINAME Loan (2)	December 2012	R$	45.9	R$	12.1	3.1	7.6	December 2022	2.50%	Itau BBA FINAME Loan (2)	December 2012	R$	45.9	R$	7.3	1.40	1.6	December 2022	2.50%
Banco do Brasil / Itaú BBA Finem Loan (3)	September 2013	R$	273.0	R$	147.1	38.0	53.4	January 2023	6.83%	Banco do Brasil / Itaú BBA Finem Loan (3)	September 2013	R$	273.0	R$	49.4	9.51	16.5	January 2023	6.83%
BNDES Finem Loan (4)	November 2013	R$	215.0	R$	110.8	28.6	41.4	January 2023	3.75%	BNDES Finem Loan (4)	November 2013	R$	215.0	R$	55.4	10.66	20.8	January 2023	3.75%
Tokyo-Mitsubishi (5)	August 2016	US$	30.0		—	8.6	30.0	August 2019	6.35%
ING Bank N.V. (6)	October 2018	US$	75.0		-	75.0	—	October 2023	6.33%
ING Bank N.V. (5)										ING Bank N.V. (5)	October 2018	US$	75.0		—	75.00	75.0	October 2023	6.33%
Certificados Recebíveis do Agronegócio (CRA)										Certificados Recebíveis do Agronegócio (CRA)	December 2019	R$	405.0	R$	405.0	77.92	99.2	November 2027	3,80% + IPCA
Banco do Brasil NCE Loan										Banco do Brasil NCE Loan	March 2020	R$	150.0	R$	75.0	14.43	—	March 2021	4.14%
Debênture Loan (6)										Debênture Loan (6)	December 2020	R$	403.2	R$	403.2	77.59	—	December 2026	4,24% + IPCA



¨			REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
			OR
þ			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED ON DECEMBER 31, ~~2018~~2020
			OR
¨			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			FOR THE TRANSITION PERIOD FROM TO ________________
			OR
¨			SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			Date of event requiring this shell company report



Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Shares	AGRO	New York Stock Exchange



Large accelerated filer ¨	Accelerated filer þ	Non-accelerated filer ¨
		Emerging growth company¨



Item 8.	Financial Information		~~136~~147
	A.	CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION	~~136~~147
	B.	SIGNIFICANT CHANGES	~~137~~148

Item 9.	The Offer and Listing		~~137~~148
	A.	OFFER AND LISTING DETAILS	~~137~~148
	B.	PLAN OF DISTRIBUTION	~~137~~148
	C.	MARKETS	~~137~~148
	D.	SELLING SHAREHOLDERS	~~137~~148
	E.	DILUTION	~~137~~148
	F.	EXPENSES OF THE ISSUE	~~137~~148

Item 10.	Additional Information		~~137~~148
	A.	SHARE CAPITAL	~~137~~148
	B.	MEMORANDUM AND ARTICLES OF ASSOCIATION	~~137~~148
	C.	MATERIAL CONTRACTS	~~146~~157
	D.	EXCHANGE CONTROLS	~~146~~158
	E.	TAXATION	~~147~~161
	F.	DIVIDENDS AND PAYING AGENTS	~~154~~168
	G.	STATEMENT BY EXPERTS	~~154~~168
	H.	DOCUMENTS ON DISPLAY	~~154~~168
	I.	SUBSIDIARY INFORMATION	~~154~~168

Item 11.	Quantitative and Qualitative Disclosures About Market Risk		~~154~~168

Item 12.	Description of Securities Other than Equity Securities		~~154~~169
	A.	DEBT SECURITIES	~~154~~169
	B.	WARRANTS AND RIGHTS	~~154~~169
	C.	OTHER SECURITIES	~~154~~169
	D.	AMERICAN DEPOSITORY SHARES	~~155~~169

PART II			~~156~~170

Item 13.	Defaults, Dividend Arrearages and Delinquencies		~~156~~170

Item 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds		~~156~~170

Item 15.	Controls and Procedures		~~156~~170

Item 16.			~~157~~171

	Item 16 A.	Audit Committee Financial Expert	~~157~~171
	Item 16 B.	Code of Ethics	~~157~~171
	Item 16 C.	Principal Accountant Fees and Services	~~157~~171
	Item 16 D.	Exemptions from the Listing Standards for Audit Committees	~~157~~171
	Item 16 E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	~~158~~172
	Item 16 F.	Change in Registrant’s Certifying Accountant	~~158~~172



	Item 16 G.	Corporate Governance	~~158~~172
	Item 16 H.	Mine Safety Disclosure	~~160~~174

PART III			~~160~~174

Item 17.	Financial Statements		~~160~~174

Item 18.	Financial Statements		~~160~~174

Item 19.	Exhibits		~~160~~175



Agricultural weight units and measures
1 metric ton			1,000 kg		1.102 U.S. (short) tons
1 cubic meter			1,000 liters
1 kilogram (kg)			2.20462 pounds
1 pound			0.45359 kg
1 acre			0.40469 hectares
1 hectare (ha)			2.47105 acres
Soybean and Wheat
1 bushel of soybean			60 pounds		27.2155 kg
1 bag of soybean			60 kg		2.20462 bushels
1 bushel/acre			67.25 kg/ha
1.00 U.S. dollar/bushel			2.2046 U.S. dollar/bag
Corn
1 bushel of corn			56 pounds		25.4012 kg
1 bag of corn			60 kg		2.36210 bushels
1 bushel/acre			62.77 kg/ha
1.00 U.S. dollar/bushel			2.3621 U.S. dollar/bag
~~Cotton~~Dairy
1 ~~bale~~liter			~~480~~0.264 gallons		2.273 pounds	~~217.72 kg~~
1 ~~arroba~~gallon			~~14.68 kg~~3.785 liters		8.604 pounds
~~Coffee~~1 lbs			0.440 liters		0.116 gallons
~~1 bag of coffee~~			~~60 kg~~	~~132.28 pounds~~
~~1.00 US$ cents/pound~~	~~1.3228 U.S. dollar/bag~~
~~Dairy~~
~~1 liter~~	~~0.264 gallons~~	~~2.273 pounds~~
~~1 gallon~~	~~3.785 liters~~	~~8.604 pounds~~
~~1 lbs~~	~~0.440 liters~~	~~0.116 gallons~~
1.00 U.S. dollar/liter	43.995 U.S. dollar/cwt			3.785 U.S. dollar/gallon
1.00 U.S. dollar/cwt			0.023 U.S. dollar/liter		0.086 U.S. dollar/gallon
1.00 U.S. dollar/gallon			0.264 U.S. dollar/liter		11.622 U.S. dollar/cwt
Sugar & Ethanol
1 kg of TRS equivalent			0.95 kg of VHP Sugar		0.59 liters of Hydrated Ethanol
1.00 US$ cents/pound			22.04 U.S. dollar/ton


	For the years ended December 31,											For the years ended December 31,
	2018		2017 (*)		2016 (*)		2015 (*)		2014 (*)			2020	2019 (*)	2018 (*)	2017	2016
	(In thousands of $)											(In thousands of $)
Statements of Income Data:											Statements of Income Data:
Sale of goods and services rendered	793,239		933,178		869,235		674,314		722,966		Sale of goods and services rendered	817,764	887,138	793,239	933,178	869,235
Cost of goods sold and services rendered	(609,965	)	(766,727	)	(678,581	)	(557,786	)	(605,325	)	Cost of goods sold and services rendered	(611,946)	(671,173)	(609,965)	(766,727)	(678,581)
Initial recognition and changes in fair value of biological assets and agricultural produce	16,195		63,220		125,456		54,528		100,216		Initial recognition and changes in fair value of biological assets and agricultural produce	122,729	68,589	16,195	63,220	125,456
Changes in net realizable value of agricultural produce after harvest	(909	)	8,852		(5,841	)	14,691		3,401		Changes in net realizable value of agricultural produce after harvest	7,005	1,825	(909)	8,852	(5,841)
Margin on manufacturing and agricultural activities before operating expenses	198,560		238,523		310,269		185,747		221,258		Margin on manufacturing and agricultural activities before operating expenses	335,552	286,379	198,560	238,523	310,269
General and administrative expenses	(56,080	)	(57,299	)	(50,750	)	(48,425	)	(52,695	)	General and administrative expenses	(53,428)	(57,202)	(56,080)	(57,299)	(50,750)
Selling expenses	(90,215	)	(95,399	)	(80,673	)	(70,268	)	(78,864	)	Selling expenses	(95,058)	(106,972)	(90,215)	(95,399)	(80,673)
Other operating income, net	104,232		43,763		5,752		52,964		16,513		Other operating income, net	1,987	(822)	104,232	43,763	5,752
Share of loss of joint ventures	—		—		—		(2,685	)	(924	)

Profit from operations before financing and taxation	156,497		129,588		184,598		117,333		105,288		Profit from operations before financing and taxation	189,053	121,383	156,497	129,588	184,598
Finance income	8,581		11,744		7,957		9,150		7,291		Finance income	26,054	8,979	8,394	11,744	7,957
Finance costs	(271,263	)	(131,349	)	(165,380	)	(116,890	)	(86,472	)	Finance costs	(213,776)	(126,111)	(163,937)	(131,349)	(165,380)
Other financial results - Net gain of inflation effects on the monetary items	81,928		—		—		—		—		Other financial results - Net gain of inflation effects on the monetary items	12,064	16,911	(25,211)	—	—
Financial results, net	(180,754	)	(119,605	)	(157,423	)	(107,740	)	(79,181	)	Financial results, net	(175,658)	(100,221)	(180,754)	(119,605)	(157,423)
(Loss) / Profit before income tax	(24,257	)	9,983		27,175		9,593		26,107
Income tax benefit / (expense)	1,024		4,992		(12,899	)	2,479		(11,669	)
(Loss) / Profit for the year	(23,233	)	14,975		14,276		12,072		14,438
Profit / (Loss) before income tax											Profit / (Loss) before income tax	13,395	21,162	(24,257)	9,983	27,175
Income tax (expense) / benefit											Income tax (expense) / benefit	(12,325)	(20,820)	1,024	4,992	(12,899)
Profit / (loss) for the year											Profit / (loss) for the year	1,070	342	(23,233)	14,975	14,276

Attributable to:											Attributable to:
Equity holders of the parent	(24,622	)	13,198		11,568		10,830		14,518		Equity holders of the parent	412	(772)	(24,622)	13,198	11,568
Non-controlling interest	1,389		1,777		2,708		1,242		(80	)	Non-controlling interest	658	1,114	1,389	1,777	2,708

(Loss) / earnings per share from operations attributable to the equity holders of the parent during the year:
Basic (loss) / earnings per share	(0.211	)	0.109		0.095		0.090		0.120
Diluted (loss) / earnings per share	(0.211	)	0.108		0.094		0.089		0.119
Earnings / (loss) per share from operations attributable to the equity holders of the parent during the year:											Earnings / (loss) per share from operations attributable to the equity holders of the parent during the year:
Basic earnings / (loss) per share											Basic earnings / (loss) per share	0.003	(0.007)	(0.211)	0.109	0.095
Diluted earnings / (loss) per share											Diluted earnings / (loss) per share	0.003	(0.007)	(0.211)	0.108	0.094


	For the Year Ended December 31,											For the Year Ended December 31,
	2018		2017 (*)		2016 (*)		2015 (*)		2014 (*)			2020	2019 (*)	2018 (*)	2017	2016
Cash Flow Data:											Cash Flow Data:
Net cash generated from operating activities (a)	218,513		237,105		255,401		145,186		120,151		Net cash generated from operating activities (a)	257,125	322,110	218,513	237,105	255,401
Net cash used in investing activities (b)	(174,922	)	(188,335	)	(122,014	)	(125,051	)	(300,472	)	Net cash used in investing activities (b)	(121,916)	(249,639)	(175,109)	(188,335)	(122,014)
Net cash generated from financing activities (c)	(20,854	)	70194		(181,682	)	92,413		73,289		Net cash generated from financing activities (c)	(53,919)	(37,863)	(20,854)	70,194	(181,682)
_{(a) It includes 7,598 of the combined effect of the application of IAS 29 and IAS 21 for the Argentine subsidiaries.}
_{(b) It includes 4,122 of the combined effect of the application of IAS 29 and IAS 21 for the Argentine subsidiaries.}
_{(c) It includes (8,231) of the combined effect of the application of IAS 29 and IAS 21 for the Argentine subsidiaries.}
(a) Includes 23,550 and 7,598 of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.											(a) Includes 23,550 and 7,598 of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.
(b) Includes 3,851 and 4,122 of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.											(b) Includes 3,851 and 4,122 of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.
(c) Includes (14,340) and (8,231) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.											(c) Includes (14,340) and (8,231) of the combined effect of IAS 29 and IAS 21 of the Argentine subsidiaries for 2019 and 2018, respectively.
Other Financial Data:											Other Financial Data:
Adjusted Segment EBITDA (unaudited) ⁽¹⁾											Adjusted Segment EBITDA (unaudited) (1)
Crops	34,635		25,678		27,462		33,211		36,671		Crops	35,694	25,654	34,012	25,678	27,462
Rice	18,827		12,179		11,698		6,274		14,198		Rice	34,108	20,328	18,827	12,179	11,698
Dairy	7,189		12,243		5,717		6,356		9,663		Dairy	18,153	14,965	7,189	12,243	5,717
All Other segments	(460	)	556		9,085		677		686		All Other segments	1,620	266	(460)	556	9,085
Farming subtotal	60,191		50,656		53,962		46,518		61,218		Farming subtotal	89,575	61,213	59,568	50,656	53,962
Ethanol, sugar and energy	238,284		247,301		265,044		167,180		200,441		Ethanol, sugar and energy	253,052	253,069	238,284	247,301	265,044
Land transformation	36,227		—		—		23,980		25,508		Land transformation	18,132	10,526	36,850	—	—
Corporate	(19,971	)	(21,664	)	(20,957	)	(21,776	)	(23,233	)	Corporate	(18,806)	(19,639)	(19,971)	(21,664)	(20,957)
Adjusted Consolidated EBITDA (unaudited) ⁽¹⁾	314,731		276,293		298,049		215,902		263,934		Adjusted Consolidated EBITDA (unaudited) (1)	341,953	305,169	314,731	276,293	298,049


~~(1)~~	~~See “Presentation of Financial and Other Information” for the definitions of Adjusted Segment EBITDA and Adjusted Consolidated EBITDA and the reconciliation in the table below.~~


	For the year ended December 31, 2018														For the year ended December 31, 2020
	Crops	Rice	Dairy	All other segments		Farming Subtotal		Sugar, Ethanol and Energy	Land Trans- formation	Corporate		Total			Crops	Rice	Dairy	All other segments	Farming Subtotal	Sugar, Ethanol and Energy	Land Trans- formation	Corporate	Total
	(In thousands of $)														(In thousands of $)
Adjusted Segment EBITDA (unaudited)														Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation as per Segment Information	32,938	12,981	4,936	10,049		60,904		95,082	36,227	(19,971	)	172,242		Profit/(Loss) from Operations Before Financing and Taxation as per Segment Information	30,297	27,456	11,444	2,562	71,759	130,536	7,934	(19,682)	190,547
Net gain from Fair value adjustment of investment property as per Segment Information	—	—	—	(10,680	)	(10,680	)	—	—	—		(10,680	)
Net (gain) from Fair value adjustment of investment property as per Segment Information														Net (gain) from Fair value adjustment of investment property as per Segment Information	—	—	—	(1,080)	(1,080)	—	—	—	(1,080)
Reverse of revaluation surplus derived from the disposals of assets before taxes														Reverse of revaluation surplus derived from the disposals of assets before taxes	—	—	—	—	—	—	10,198	—	10,198
Adjusted Segment EBIT (unaudited)⁽¹⁾	32,938	12,981	4,936	(631	)	50,224		95,082	36,227	(19,971	)	161,562		Adjusted Segment EBIT (unaudited)(1)	30,297	27,456	11,444	1,482	70,679	130,536	18,132	(19,682)	199,665
Depreciation and amortization as per Segment Information	1,697	5,846	2,253	171		9,967		143,202	—	—		153,169
Depreciation of Property, plant and equipment and amortization of Intangible Assets as per Segment Information														Depreciation of Property, plant and equipment and amortization of Intangible Assets as per Segment Information	5,397	6,652	6,709	138	18,896	122,516	—	876	142,288
Adjusted Segment EBITDA (unaudited)⁽¹⁾	34,635	18,827	7,189	(460	)	60,191		238,284	36,227	(19,971	)	314,731		Adjusted Segment EBITDA (unaudited)(1)	35,694	34,108	18,153	1,620	89,575	253,052	18,132	(18,806)	341,953
Reconciliation to Profit														Reconciliation to Profit
Profit for the year												(23,233	)	Profit for the year									1,070
Income tax (benefit)												(1,024	)
Income tax expense														Income tax expense									12,325
Interest expense, net												43,662		Interest expense, net									54,198
Foreign exchange, net												183,195		Foreign exchange, net									109,266
Other financial results - Net gain of inflation effects on the monetary items												(81,928	)	Other financial results - Net gain of inflation effects on the monetary items									(12,064)
Other financial results, net												35,825		Other financial results, net									24,258
Combined effects of IAS 29 and IAS 21 of the Argentine subsidiaries of Profit from operations												15,745		Combined effects of IAS 29 and IAS 21 of the Argentine subsidiaries of Profit from operations									1,494
Net gain from Fair value adjustment of investment property as per Segment Information												(10,680	)
Net (gain) from Fair value adjustment of investment property as per Segment Information														Net (gain) from Fair value adjustment of investment property as per Segment Information									(1,080)
Adjusted Consolidated EBIT (unaudited) ⁽¹⁾												161,562		Adjusted Consolidated EBIT (unaudited) (1)									189,467
Depreciation and amortization as per Segment Information												153,169
Depreciation of Property, Plant and Equipment and amortization of Intangible Assets as per Segment Information														Depreciation of Property, Plant and Equipment and amortization of Intangible Assets as per Segment Information									142,288
Reverse of revaluation surplus derived from the disposals of assets before taxes														Reverse of revaluation surplus derived from the disposals of assets before taxes									10,198
Adjusted Consolidated EBITDA (unaudited)⁽¹⁾												314,731		Adjusted Consolidated EBITDA (unaudited)(1)									341,953



	For the year ended December 31, 2017
	Crops	Rice	Dairy	All other segments		Farming Subtotal		Sugar, Ethanol and Energy	Land Trans- formation	Corporate		Total
	(In thousands of $)
Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation	24,167	8,328	11,206	4,699		48,400		102,852	—	(21,664	)	129,588
Net gain from Fair value adjustment of investment property	—	—	—	(4,302	)	(4,302	)	—	—	—		(4,302	)
Adjusted Segment EBIT (unaudited)⁽¹⁾	24,167	8,328	11,206	397		44,098		102,852	—	(21,664	)	125,286
Depreciation and amortization	1,511	3,851	1,037	159		6,558		144,449	—	—		151,007
Adjusted Segment EBITDA (unaudited)⁽¹⁾	25,678	12,179	12,243	556		50,656		247,301	—	(21,664	)	276,293
Reconciliation to Profit
Profit for the year												14,975
Income tax expense												(4,992	)
Interest expense, net												41,078
Foreign exchange, net												38,708
Other financial results, net												39,819
Net gain from Fair value adjustment of investment property												(4,302	)
Adjusted Consolidated EBIT (unaudited)⁽¹⁾												125,286
Depreciation and amortization												151,007
Adjusted Consolidated EBITDA (unaudited)⁽¹⁾												276,293


	For the year ended December 31, 2019
	Crops	Rice	Dairy	All other segments	Farming Subtotal	Sugar, Ethanol and Energy	Land Trans- formation	Corporate	Total
	(In thousands of $)
Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation	20,992	13,334	9,901	(842)	43,385	95,412	2,504	(19,659)	121,642
Net loss from Fair value adjustment of investment property	—	—	—	927	927	—	—	—	927
Reverse of revaluation surplus derived from the disposals of assets before taxes	—	—	—	—	—	—	8,022	—	8,022
Adjusted Segment EBIT (unaudited)(1)	20,992	13,334	9,901	85	44,312	95,412	10,526	(19,659)	130,591
Depreciation and amortization	4,662	6,994	5,064	181	16,901	157,657	—	20	174,578
Adjusted Segment EBITDA (unaudited)(1)	25,654	20,328	14,965	266	61,213	253,069	10,526	(19,639)	305,169
Reconciliation to Profit
Profit for the year									342
Income tax expense									20,820
Interest expense, net (2)									50,078
Foreign exchange, net (2)									25,779
Other financial results - Net gain of inflation effects on the monetary items (2)									(16,911)
Other financial results, net (2)									41,275
Combined effects of IAS 29 and IAS 21 of the Argentine subsidiaries of Profit from operations									259
Net gain from Fair value adjustment of investment property									927
Adjusted Consolidated EBIT (unaudited)(1)									122,569
Depreciation and amortization									174,578
Reverse of revaluation surplus derived from the disposals of assets before taxes									8,022
Adjusted Consolidated EBITDA (unaudited)(1)									305,169



	For the year ended December 31, 2016
	Crops	Rice	Dairy	All other segments		Farming Subtotal		Sugar, Ethanol and Energy	Land Trans- formation	Corporate		Total
	(In thousands of $)
Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation	26,093	8,932	4,753	22,942		62,720		142,835	—	(20,957	)	184,598
Net gain from fair value adjustment of investment property	—	—	—	(14,049	)	(14,049	)	—	—	—		(14,049	)
Adjusted Segment EBIT (unaudited)⁽¹⁾	26,093	8,932	4,753	8,893		48,671		142,835	—	(20,957	)	170,549
Depreciation and amortization	1,369	2,766	964	192		5,291		122,209	—	—		127,500
Adjusted Segment EBITDA (unaudited)⁽¹⁾	27,462	11,698	5,717	9,085		53,962		265,044	—	(20,957	)	298,049
Reconciliation to Profit
Profit for the year												14,276
Income tax expense												12,899
Interest expense, net												40,527
Foreign exchange, net												19,062
Other financial results, net												97,834
Net gain from fair value adjustment of investment property												(14,049	)
Adjusted Consolidated EBIT (unaudited)⁽¹⁾												170,549
Depreciation and amortization												127,500
Adjusted Consolidated EBITDA (unaudited)⁽¹⁾												298,049



	For the year ended December 31, 2015 (*)
	Crops	Rice	Dairy	All other segment		Farming Subtotal		Sugar, Ethanol and Energy	Land Trans- formation	Corporate		Total
	(In thousands of $)
Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation	30,784	3,287	4,900	22,290		61,270		69,925	7,914	(21,776	)	117,333
Reserve from the sale of non-controlling interest in subsidiaries) ⁽²⁾	—	—	—	—		—		—	16,066	—		16,066
Net gain from fair value adjustment of investment property	—	—	—	(21,898	)	(21,898	)	—	—	—		(21,898	)
Adjusted Segment EBIT (unaudited)⁽¹⁾	30,784	3,287	4,900	392		39,372		69,925	23,980	(21,776	)	111,501
Depreciation and amortization	2,427	2,987	1,456	276		7,146		97,255	—	—		104,401
Adjusted Segment EBITDA (unaudited)⁽¹⁾	33,211	6,274	6,356	668		46,518		167,180	23,980	(21,776	)	215,902
Reconciliation to Profit
Profit for the year												12,072
Income tax (benefit)												(2,479	)
Interest expense, net												49,491
Foreign exchange, net												23,423
Other financial results, net												34,826
Reserve from the sale of non-controlling interest in subsidiaries)												16,066
Net gain from fair value adjustment of investment property												(21,898	)
Adjusted Consolidated EBIT (unaudited)⁽¹⁾												111,501
Depreciation and amortization												104,401
Adjusted Consolidated EBITDA (unaudited)⁽¹⁾												215,902


~~(2)~~	This corresponds to an equity line item in our consolidated statements of financial position. See “Presentation of Financial and Other Information” for the definitions of Adjusted Segment EBIT, Adjusted Consolidated EBIT, Adjusted Segment EBITDA and Adjusted Consolidated EBITDA.


	As of December 31,						As of December 31,
	2018	2017 (*)	2016 (*)	2015 (*)	2014 (*)		2020	2019 (*)	2018	2017	2016
	(In thousands of $)						(In thousands of $)
Statement of Financial Position Data:						Statement of Financial Position Data:
Biological assets	105,387	167,994	145,404	111,818	124,736	Biological assets	165,693	130,436	105,387	167,994	145,404
Inventories	128,102	108,919	111,754	85,286	117,106	Inventories	133,461	112,790	128,102	108,919	111,754
Property, plant and equipment, net	1,480,439	831,377	814,867	696,889	991,581	Property, plant and equipment, net	1,358,292	1,493,220	1,480,439	831,377	814,867
Right of use assets						Right of use assets	209,694	238,053	—	—	—
Total assets	2,277,372	1,645,089	1,496,397	1,392,124	1,676,947	Total assets	2,482,236	2,521,307	2,277,372	1,645,089	1,496,397
Non-current lease liabilities						Non-current lease liabilities	159,435	174,570	—	—	—
Total lease liabilities						Total lease liabilities	195,772	216,384	—	—	—
Non-current borrowings	718,484	663,060	430,304	483,651	491,324	Non-current borrowings	813,464	780,202	718,484	663,060	430,304
Total borrowings	862,116	817,958	635,396	723,339	698,506	Total borrowings	971,090	968,280	862,116	817,958	635,396
Share Capital	183,573	183,573	183,573	183,573	183,573	Share Capital	183,573	183,573	183,573	183,573	183,573
Equity attributable to equity holders of the parent	1,063,636	673,880	700,334	556,814	800,421	Equity attributable to equity holders of the parent	925,041	988,269	1,063,636	673,880	700,334
Non-controlling interest	44,509	9,139	11,970	7,335	7,589	Non-controlling interest	38,683	40,614	44,509	9,139	11,970
Number of shares (including treasury shares)	122,382	122,382	122,382	122,382	122,382	Number of shares (including treasury shares)	122,382	122,382	122,382	122,382	122,382



	For the year ended December 31, 2014 (*)
	Crops	Rice	Dairy	All other segments		Farming Subtotal		Sugar, Ethanol and Energy	Land Trans- formation	Corporate		Total
	(In thousands of $)
Adjusted Segment EBITDA (unaudited)
Profit/(Loss) from Operations Before Financing and Taxation	34,745	10,937	8,112	4,824		58,618		69,903	—	(23,233	)	105,288
Reserve from the sale of non-controlling interests in subsidiaries (2)	—	—	—	—		—		—	25,508	—		25,508
Net gain from fair value adjustment of investment property	—	—	—	(4,536	)	(4,536	)	—	—	—		(4,536	)
Adjusted Segment EBIT (unaudited)⁽¹⁾	34,745	10,937	8,112	288		54,082		69,903	25,508	(23,233	)	126,260
Depreciation and amortization	1,926	3,261	1,551	398		7,136		130,538	—	—		137,674
Adjusted Segment EBITDA (unaudited)⁽¹⁾	36,671	14,198	9,663	686		61,218		200,441	25,508	(23,233	)	263,934
Reconciliation to Profit
Profit for the year												14,438
Income tax expense												11,669
Interest expense, net												47,847
Foreign exchange losses, net												9,246
Other financial results, net												22,088
Reserve from the sale of non-controlling interest in subsidiaries)												25,508
Net gain from fair value adjustment of investment property												(4,536	)
Adjusted Consolidated EBIT (unaudited)⁽¹⁾												126,260
Depreciation and amortization												137,674
Adjusted Consolidated EBITDA (unaudited)⁽¹⁾												263,934



Adjusted Free Cash Flow	2018		2017 (*)		2016 (*)		2015 (*)		2014 (*)
Net cash generated from operating activities	218,513		237,105		255,401		145,186		120,151
Net cash used in investing activities	(174,922	)	(188,335	)	(122,014	)	(125,051	)	(300,472	)
Interest paid	(50,021	)	(41,612	)	(48,400	)	(48,438	)	(48,899	)
Proceeds from the sale of non-controlling interest in subsidiaries	—		—		—		21,964		49,343
Reversal of Expansion Capital expenditures (unaudited)	98,011		70,804		48,295		87,956		237,277
IAS 29 & IAS 21 effect for operating Activities	(7,598	)	—		—		—		—
IAS 29 & IAS 21 effect for investing Activities	(4,122	)	—		—		—		—
Adjusted Free Cash Flow from Operations (unaudited)	79,861		77,962		133,282		81,617		57,400
Expansion Capital expenditures (unaudited)	(98,011	)	(70,804	)	(48,295	)	(87,956	)	(237,277	)
Adjusted Free Cash Flow (unaudited)	(18,150	)	7,158		84,987		(6,339	)	(179,877	)



Indebtedness	2018		2017 (*)		2016 (*)		2015 (*)		2014 (*)
Net Debt (unaudited)	588,481		548,763		476,828		524,445		584,711
Net Debt / Adjusted Consolidated EBITDA (unaudited)	1.87	x	1.98	x	1.60	x	2.43	x	2.22	x



Reconciliation - Net Debt	2018		2017 (*)		2016 (*)		2015 (*)		2014 (*)
Total Borrowings	862,116		817,958		635,396		723,339		698,506
Cash and cash equivalents	(273,635	)	(269,195	)	(158,568	)	(198,894	)	(113,795	)
Net Debt (unaudited)	588,481		548,763		476,828		524,445		584,711



	Year Ended December 31,
Other Metrics	2018		2017		2016
Sugarcane milled (% owned)	94,6%		89	%	91	%
Sugarcane crushing capacity (millions of tons)	12.3		12.3		11.2
% Mechanized harvesting operations — Consolidated	99	%	98	%	98	%
% Mechanized /harvesting operations — Cluster	100	%	100	%	100	%


Nominal Storage Capacity	Cluster	UMA	Total
Ethanol (cubic meters)	240,000	27,000	267,000
Sugar (tons) (1)	110,000	19,100	129,100


	Acquisition	Divestitures	Total Land Holdings
Year Ended December 31,	(In hectares)
2002	74,898	—	74,898
2003	—	—	74,898
2004	34,659	—	109,557
2005	22,262	—	131,819
2006	5,759	3,507	134,071
2007	113,197	8,714	239,274
2008	43,783	4,857	278,200
2009	—	5,005	273,195
2010	14,755	5,086	282,864
2011	12,992	2,439	293,417
2012	—	9,475	283,942
2013	—	14,176	269,766
2014	—	12,887	257,036
2015	—	10,905	246,139
2016	—	—	246,139
2017	—	—	246,139
2018	—	14,427	231,712
2019	—	6,082	225,630
2020	—	5,444	220,186



			Brazil
Number of Mills			~~411~~384
Sugarcane crushed (million tons)			~~633.3~~642.7
Ethanol Production (million cubic meters)			~~27.8~~35.6
Sugar Production (million tons)			~~37.9~~29.8


Product	Export tax	Cap per dollar exported
Soybean and derivatives	33%	—
Corn	12%	—
Wheat	12%	—
Peanut	7%	—
Sunflower	5%	—
Cotton	5%	—
Rice	5%	—
UHT Milk	12%	$3/usd
Powder Milk	9%	—
Cheese	12%	$3/usd



			Tax Rate (%)
Argentina⁽¹⁾			30
Brazil⁽²⁾			34
Uruguay			25
Spain			25
Luxembourg			2624.94


~~(1)~~	During 2017, the Argentine Goverment introduced changes in the income tax. The income tax rate will be reduced to 30% for the years 2018 and 2019, and to 25% from 2020 onwards. A new tax on dividends is created with a rate of 7% for the years 2018 and 2019, and 13% from 2020 onwards.


~~(2)~~	~~Including the Social Contribution on Net Profit (CSLL).~~


~~(6)~~	~~Sales of processed rice including rough rice purchased from third parties and processed in our own facilities, rice seeds and services.~~


~~(7)~~	All other segments include our cattle business which primarily consists of leasing land to a third party based on the price of beef. See “Item 4. Information on the Company-B. Business Overview-Cattle Business.” in our Form 20-F.


~~(11)~~	~~Crop production does not include tons of forage produced.~~


~~(12)~~	Expressed in tons of rough rice produced on owned and leased farms. The rough rice we produce, along with additional rough rice we purchase from third parties, is ultimately processed and constitutes the product sold in respect of the rice business.


~~(13)~~	~~Includes rough rice purchased from third parties and processed in our own facilities. Expressed in tons of rough rice (1 ton of processed rice is approximately equivalent to 1.6 tons of rough rice).~~


~~(16)~~	~~Includes hectares planted in the second harvest.~~


~~(17)~~	~~Does not include potential croppable areas being evaluated for transformation and does not include forage area.~~



	2018		2017		Chg (%) 2018-2017
	(In thousands of $)				Chg (%) 2018-2017
Sales of goods and services rendered	793,239		933,178		(15.0	)%
Cost of goods sold and services rendered	(609,965	)	(766,727	)	(20.4	)%
Initial recognition and Changes in fair value of biological assets and agricultural produce	16,195		63,220		(74.4	)%
Changes in net realizable value of agricultural produce after harvest	(909	)	8,852		(110.3	)%
Margin on Manufacturing and Agricultural Activities Before Operating Expenses	198,560		238,523		(16.8	)%
General and administrative expenses	(56,080	)	(57,299	)	(2.1	)%
Selling expenses	(90,215	)	(95,399	)	(5.4	)%
Other operating income, net	104,232		43,763		138.2	%
Profit from Operations Before Financing and Taxation	156,497		129,588		20.8	%
Finance income	8,581		11,744		(26.9	)%
Finance costs	(271,263	)	(131,349	)	106.5	%
Other financial results - Net gain of inflation effects on the monetary items	81,928		—		100.0	%
Financial results, net	(180,754	)	(119,605	)	51.1	%
(Loss) / Profit Before Income Tax	(24,257	)	9,983		(343.0	)%
Income tax Benefit	1,024		4,992		(83.1	)%
(Loss) / Profit for the Year	(23,233	)	14,975		(255.1	)%