Edgar Filing: CRESUD INC

forms6k.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2013

Cresud Sociedad Anónima, Comercial, Inmobiliaria,

Financiera y Agropecuaria

(Exact name of Registrant as specified in its charter)

Cresud Inc.

(Translation of registrant´s name into English)

Republic of Argentina

(Jurisdiction of incorporation or organization)

Moreno 877

(C1091AAQ)

Buenos Aires, Argentina

(Address of principal executive offices)

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Financial Statements as of December 31, 2012 and for the six-month periods ended December 31, 2012 and 2011

Legal Information

Denomination: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Fiscal year N°: 80

Legal address: Moreno 877, 23rd floor – Ciudad Autónoma de Buenos Aires, Argentina

Company activity: Real state, agricultural, commercial and financial activities

Date of registration of the By-laws in the Public Registry of Commerce: February 19, 1937

Date of registration of last amendment of the by-laws in the Public Registry of Commerce: July 28, 2008

Expiration of Company charter: June 6, 2082

Common Stock subscribed, issued and paid up: 501,562,730 common shares.

Majority shareholder’s: Inversiones Financieras del Sur S.A.

Legal address: Road 8, km 17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay

Parent company Activity: Investment

Capital stock: 189,051,574 common shares

Type of stock	CAPITAL STATUS
Type of stock	Authorized to be offered publicly (Shares)	Subscribed, Issued and Paid-in (Ps.)
Ordinary certified shares of Ps. 1 face value and 1 vote each	501,562,730	501,562,730

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Financial Position as of December 31, 2012 and June 30, 2012 and July 1, 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	December 31, 2012			June 30, 2012			July 1, 2011
ASSETS
Non-Current Assets
Investment properties	10		4,137,693			3,463,941			3,553,647
Property, plant and equipment	11		1,845,380			1,872,920			1,976,970
Trading properties	12		184,658			170,472			158,019
Intangible assets	13		121,082			75,077			80,457
Biological assets	14		277,525			278,208			325,864
Investments in associates and joint ventures	8, 9		1,446,591			1,500,560			1,438,855
Deferred income tax assets	24		94,236			80,674			23,914
Trade and other receivables	16		458,743			454,061			360,641
Investment in financial assets	17		562,858			626,683			426,152
Derivative financial instruments	18		20,311			18,434			60,442
Total Non-Current Assets			9,149,077			8,541,030			8,404,961
Current Assets
Trading properties	12		11,850			10,529			28,443
Biological assets	14		280,724			85,251			107,239
Inventories	15		217,218			253,447			371,268
Trade and other receivables	16		1,021,424			888,064			755,542
Investment in financial assets	17		340,048			72,069			62,465
Derivative financial instruments	18		32,050			2,578			18,966
Cash and cash equivalents	19		524,159			471,922			694,552
Total Current Assets			2,427,473			1,783,860			2,038,475
TOTAL ASSETS			11,576,550			10,324,890			10,443,436
SHAREHOLDERS EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital			496,562			496,562			496,562
Treasury stock			5,001			5,001			5,001
Inflation adjustment of share capital and treasury stock			65,425			166,218			166,218
Share premium			773,079			773,079			773,079
Share warrants			106,264			106,263			106,263
Cumulative translation adjustment			(33,723	)		(81,939	)		-
Changes in non-controlling interest			(8,014	)		(9,596	)		-
Equity-settled compensation			7,703			4,540			1,012
Legal reserve			46,835			42,922			32,293
Other reserves			337,065			389,202			320,064
Retained earnings			756,773			666,611			829,207
Equity attributable to equity holders of the parent			2,552,970			2,558,863			2,729,699
Non-controlling interest			2,291,320			2,132,648			2,480,379
TOTAL SHAREHOLDERS EQUITY			4,844,290			4,691,511			5,210,078

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Financial Position (Continued)

as of December 31, 2012 and June 30, 2012 and July 1, 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

		December 31, 2012		June 30, 2012		July 1, 2011
LIABILITIES
Non-Current Liabilities
Trade and other payables	20		192,038		168,860		155,726
Borrowings	23		3,349,346		2,770,087		2,056,244
Deferred income tax liabilities	24		570,112		630,011		769,941
Derivative financial instruments	18		111		22,859		-
Payroll and social security liabilities	21		755		783		635
Provisions	22		37,980		22,553		14,939
Total Non-Current Liabilities			4,150,342		3,615,153		2,997,485
Current Liabilities
Trade and other payables	20		957,354		596,542		588,311
Income tax liabilities			88,496		108,190		72,606
Payroll and social security liabilities	21		79,377		103,919		81,085
Borrowings	23		1,414,838		1,187,082		1,479,803
Derivative financial instruments	18		28,031		18,558		8,353
Provisions	22		13,822		3,935		5,715
Total Current Liabilities			2,581,918		2,018,226		2,235,873
TOTAL LIABILITIES			6,732,260		5,633,379		5,233,358
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES			11,576,550		10,324,890		10,443,436

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Income

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

		Six months							Three months
	Note	2012			2011				2012			2011
Revenues	26		1,611,191			1,455,005				857,959			721,438
Costs	27		(1,428,128	)		(1,143,274	)			(794,160	)		(542,093	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest			459,429			236,816				270,767			110,137
Changes in net realizable value of agricultural produce after harvest			6,811			(11,262	)			(6,411	)		(15,913	)
Gross Profit			649,303			537,285				328,155			273,569
Gain from disposal of investment properties			53,678			24,727				24,210			24,727
Gain from disposal of farmlands			53,988			27,762				53,988			(6,545	)
General and administrative expenses	28		(174,717	)		(144,451	)			(97,842	)		(81,843	)
Selling expenses	28		(123,679	)		(86,462	)			(63,252	)		(38,343	)
Management fees			(6,751	)		(4,612	)			(6,751	)		(4,496	)
Other operating results, net	30		105,102			9,780				141,926			(1,697	)
Profit from operations			556,924			364,029				380,434			165,372
Share of profit / (loss) of associates and joint ventures	8, 9		12,546			10,066				(3,165	)		31,667
Profit from operations before financing and taxation			569,470			374,095				377,269			197,039
Finance income	31		184,064			86,380				94,662			58,992
Finance cost	31		(547,486	)		(414,514	)			(287,585	)		(72,795	)
Financial results, net	31		(363,422	)		(328,134	)			(192,923	)		(13,803	)
Profit before income tax			206,048			45,961				184,346			183,236
Income tax expense	24		(29,330	)		(22,640	)			(15,629	)		(8,641	)
Profit for the period			176,718			23,321				168,717			174,595

Attributable to:
Equity holders of the parent			60,760			(20,711	)			77,278			74,426
Non-controlling interest			115,958			44,032				91,439			100,169

Loss per share attributable to equity holders of the parent during the period:
Basic			0.12			(0.04	)
Diluted			0.11			-		(1)

(1)	Due to the loss for the period 2011, there is no diluted effect on this result.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Comprehensive Income

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Six months					Three months
	2012		2011			2012		2011
Profit for the period		176,718		23,321			168,717		174,595
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment from subsidiaries, associates and joint ventures		121,997		(188,268	)		70,963		28,661
Other comprehensive income / (Loss) for the period, net of tax (i)		121,997		(188,268	)		70,963		28,661
Total comprehensive income / (Loss) for the period		298,715		(164,947	)		239,680		203,256

Attributable to:
Equity holders of the parent		117,307		(92,710	)		111,328		85,470
Non-controlling interest		181,408		(72,237	)		128,352		117,786

(i)	Components of other comprehensive income have no impact on income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock		Inflation adjustment of Share Capital and Treasury Stock		Share premium		Share warrants		Subtotal		Changes in non-controlling interest			Cumulative translation adjustment			Equity -settled compensation		Legal reserve		Others reserves		Retained earnings			Subtotal			Non-controlling interest			Total shareholders’ equity
Balance at July 1, 2011		496,562		5,001		166,218		773,079		106,263		1,547,123		-			-			1,012		32,293		320,064		829,207			2,729,699			2,480,379			5,210,078
Loss (Gain) for the period		-		-		-		-		-		-		-			-			-		-		-		(20,711	)		(20,711	)		44,032			23,321
Others comprehensive loss for the period		-		-		-		-		-		-		-			(71,999	)		-		-		-		-			(71,999	)		(116,269	)		(188,268	)
Total comprehensive loss for the period		-		-		-		-		-		-		-			(71,999	)		-		-		-		(20,711	)		(92,710	)		(72,237	)		(164,947	)
Acquisition of interest in subsidiaries		-		-		-		-		-		-		(16,840	)		-			-		-		-		-			(16,840	)		(154,576	)		(171,416	)
Distribution of dividends of subsidiaries		-		-		-		-		-		-		-			-			-		-		-		(63,800	)		(63,800	)		(83,673	)		(147,473	)
Reimbursement expired dividends		-		-		-		-		-		-		-			-			-		-		-		2,301			2,301			169			2,470
Equity-settled compensation		-		-		-		-		-		-		-			-			2,833		-		-		-			2,833			934			3,767
Legal reserve		-		-		-		-		-		-		-			-			-		10,629		-		(10,629	)		-			-			-
Reserve for new developments		-		-		-		-		-		-		-			-			-		-		69,138		(69,138	)		-			-			-
Capital contribution of non-controlling interest		-		-		-		-		-		-		-			-			-		-		-		-			-			2,237			2,237
Balance at December 31, 2011		496,562		5,001		166,218		773,079		106,263		1,547,123		(16,840	)		(71,999	)		3,845		42,922		389,202		667,230			2,561,483			2,173,233			4,734,716

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock		Inflation adjustment of Share Capital and Treasury Stock			Share premium		Share warrants		Subtotal			Change in interest in subsidiaries			Cumulative translation adjustment			Equity-settled compensation		Legal reserve		Others reserves			Retained earnings			Subtotal			Non-controlling interest			Total shareholders’ equity
Balance at July 1, 2012		496,562		5,001		166,218			773,079		106,263		1,547,123			(9,596	)		(81,939	)		4,540		42,922		389,202			666,611			2,558,863			2,132,648			4,691,511
Profit for the period		-		-		-			-				-			-			-			-		-		-			60,760			60,760			115,958			176,718
Others comprehensive income for the period		-		-		-			-				-			-			56,547			-		-		-			-			56,547			65,450			121,997
Total comprehensive income for the period		-		-		-			-				-			-			56,547			-		-		-			60,760			117,307			181,408			298,715
Regular Shareholders Meeting held on 10/31/12:
- Legal reserve		-		-		-			-		-		-			-			-			-		3,913		-			(3,913	)		-			-			-
- Other reserves		-		-		-			-		-		-			-			-			-		-		(52,137	)		52,137			-			-			-
- Appropriation of retained earnings		-		-		(100,793	)		-		-		(100,793	)		-			-			-		-		-			100,793			-			-			-
- Cash dividends		-		-		-			-		-		-			-			-			-		-		-			(120,000	)		(120,000	)		(79,583	)		(199,583	)
Acquisition of non-controlling interest		-		-		-			-		-		-			1,582			-			-		-		-			-			1,582			(8,411	)		(6,829	)
Acquisition of interest in subsidiary (Note 4)		-		-		-			-		-		-			-			-			-		-		-			-			-			102,723			102,723
Equity-settled compensation		-		-		-			-		-		-			-			-			3,163		-		-			-			3,163			1,660			4,823
Exercise of warrants		-		-		-			-		1		1			-			-			-		-		-			-			1			-			1
Cumulative translation adjustment for interest held before business combination (Note 4)		-		-		-			-		-		-			-			(8,331	)		-		-								(8,331	)		(4,584	)		(12,915	)
Reimbursement of expired dividends		-		-		-			-		-		-			-			-			-		-		-			385			385			241			626
Capital contribution of non-controlling interest		-		-		-			-		-		-			-			-			-		-		-			-			-			4,790			4,790
Capital reduction		-		-		-			-		-		-			-			-			-		-		-			-			-			(39,572	)		(39,572	)
Balance at December 31, 2012		496,562		5,001		65,425			773,079		106,264		1,446,331			(8,014	)		(33,723	)		7,703		46,835		337,065			756,773			2,552,970			2,291,320			4,844,290

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Cash Flows

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	December 31, 2012			December 31, 2011
Cash flows from operating activities:
Cash generated from operations	19		501,747			437,621
Income tax paid			(121,990	)		(84,053	)
Net cash generated from operating activities			379,757			353,568
Cash flows used in investing activities:
Acquisition of subsidiaries, net of cash acquired			(117,874	)		-
Acquisition of associates and joint ventures			(32,000	)		(23,438	)
Capital contribution to associates and joint ventures			(22,360	)		-
Purchases of investment properties			(89,442	)		(32,341	)
Proceeds from sale of investment properties			81,731			30,738
Purchases of property, plant and equipment			(78,185	)		(106,581	)
Suppliers advances			(9,750	)		(8,674	)
Proceeds from sale of property, plant and equipment			63,052			4,410
Purchases of intangible assets			(881	)		(1,234	)
Purchases of Investment in financial assets			(176,263	)		(3,420	)
Proceeds from disposals of Investment in financial assets			95,204			-
Loans granted to associates and joint ventures			(18,376	)		(12,814	)
Loans repayments received from associates and joint ventures			709			47
Interest received			5,922			-
Dividends received			44,649			5,265
Net cash used in investing activities			(253,864	)		(148,042	)
Cash flows used in financing activities:
Proceeds from issuance of non-convertible bonds			142,168			246,912
Payment of non-convertible bonds net			(175,471	)		(31,080	)
Proceeds from borrowings			597,872			280,107
Repayments of borrowings			(335,695	)		(321,321	)
Proceeds from borrowings from associates and joint ventures			48,431			-
Payments of borrowings from associates and joint ventures			(186	)		-
Proceeds from warrants and options			1			-
Payment of seller financing			(4,863	)		(77,033	)
Acquisition of non-controlling interest in subsidiaries			(6,837	)		(145,633	)
Payments of purchase of non-controlling interest			(3,584	)		-
Dividend paid			(109,288	)		(149,100	)
Reimbursement of dividends			-			6,937
Advances for future capital increase			-			16,451
Contributions from non-controlling interest			4,790			6,299
Capital reduction of subsidiaries			(39,572	)		-
Interest paid			(194,968	)		(152,798	)
Net cash used in financing activities			(77,202	)		(320,259	)
Net increase (decrease) in cash and cash equivalents			48,691			(114,733	)
Cash and cash equivalents at beginning of period	19		471,922			694,552
Foreign exchange gain (loss) on cash and cash equivalents			3,546			(37,032	)
Cash and cash equivalents at end of period			524,159			542,787

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information

1.1	The Group’s business and general information

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or the “Company”) was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.

In 2002, Cresud acquired a 19.85% interest in IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”), a real estate company related to certain shareholders of Cresud. In 2009, Cresud increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s principal subsidiary.

Cresud and its subsidiaries are collectively referred to hereinafter as the Group. See Note 1.3 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011 for a description of the Group’s companies.

As of December 31, 2012, the Group operates in two major lines of business: (i) Agricultural business, (ii) Investment and Development Properties business. See Note 6 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011 for a description of the Group’s segments.

The Group’s Agricultural business operations are comprised of crop production, cattle feeding, raising and fattening, milk production, sugarcane production and brokerage activities. The Group’s Agro-industrial business operations are conducted through its subsidiary, Cactus Argentina S.A., and are engaged in cattle feeding services in specialized feedlots primarily for third parties. Feedlots provide accommodation, health care and animal feeding services based on specialized diets. Cactus also uses the feedlot to finish own cattle prior to slaughter in owned slaughtering houses. The Group currently has agricultural operations and investments in Argentina, Brazil, Uruguay, Paraguay and Bolivia.

The business line known as urban property and investments also includes the Group’s financial transactions. The Group’s Investment and Development Properties business operations are conducted primarily through its subsidiary IRSA and IRSA’s principal subsidiary, Alto Palermo S.A. (“APSA”). Through APSA, the Group primarily owns, manages and develops shopping centers across Argentina. APSA has also a 20% stake in a credit card company. Through IRSA, the Group primarily owns, manages and develops a portfolio of office and other rental properties in Buenos Aires, the capital of Argentina. Through IRSA or APSA, the Group also develops residential properties for sale. The Group, through IRSA, is also involved in the operation of branded hotels. The Group uses the term “real estate” indistinctively in these consolidated financial statements to denote investment, development and/or trading properties activities

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information (Continued)

In 2009, IRSA entered into the US real estate market, mainly through the acquisition of non-controlling interests in US assets, primarily office properties and hotel investments.

The Group’s financial transactions and transactions in other businesses are carried out mainly through its subsidiary IRSA and through APSA, which is IRSA’s main subsidiary. IRSA has also a 29.77% interest (without considering treasury shares) in Banco Hipotecario S.A. (“BHSA”). BHSA is a commercial bank offering a wide variety of banking activities and related financial services to individuals, small and medium-sized companies and large corporations, including the provision of mortgaged loans. BHSA’s shares are listed on the Buenos Aires Stock Exchange. Additionally, APSA holds a participating interest of 20 % in Tarshop S.A. (“Tarshop”), whose main business comprises extending loans and credit cards.

Cresud’s and APSA’s shares are listed and traded on both the Buenos Aires Stock Exchange (“BASE”) and the National Association of Securities Dealers Automated Quotation (“NASDAQ”). IRSA´s shares are listed and traded on both the BASE and the New York Stock Exchange (“NYSE”).

Cresud is the ultimate parent company and is a corporation incorporated and domiciled in the Republic of Argentina. The address of its registered office is Moreno 877, 23rd Floor, Buenos Aires, Argentina.

These consolidated financial statements have been approved for issue by the Board of Directors on February 18, 2013.

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”)

2.1.	Basis of preparation and transition to IFRS

The National Securities Commission, (“CNV”, as per its Spanish acronym), through General Resolutions No. 562/9 and 576/10, has provided for the application of Technical Resolutions No. 26 and 29 of the Argentine Federation of Professional Councils of Economic Sciences (“F.A.C.P.C.E.”, as per its Spanish acronym), which adopt the International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”), for companies subject to the public offering regime ruled by Law 17,811, due to the listing of their shares or corporate notes, and for entities that have applied for authorization to be listed under the mentioned regime.

The Group is required to adopt IFRS as from the fiscal year beginning July 1, 2012, being the current financial statements the first interim financial statements prepared under IFRS. Consequently, The Group’s transition date for the adoption of IFRS is July 1, 2011. This transition date has been selected in accordance with IFRS 1, “First-time adoption of International Financial Reporting Standards”.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of Preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

The Unaudited Condensed Interim Consolidated Financial Statements of the Group for the six-month periods ended December 31, 2012 and 2011 have been prepared in accordance with IAS 34 “Interim Financial Reporting” and IAS 1 “First-time Adoption of International Financial Reporting Standards”. The Unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with the accounting policies that the Group expects to adopt in its annual consolidated financial statements as of June 30, 2013. The accounting policies are based on IFRSs issued by the IASB and the interpretations issued by the IFRS Interpretation Committee that the Group expects to become applicable on such date.

The consolidated financial statements of the Group were prepared in accordance with the Argentine accounting standards (Argentine GAAP) in force, which differ from IFRS in some areas. To prepare these Condensed Interim Consolidated Financial Statements, the Management of the Company has modified certain valuation and presentation accounting policies that were previously applied under Argentine accounting standards in to comply with the IFRS.

Comparative figures and the corresponding as of the transition date (July 1, 2011) have been modified to reflect such adjustments. The notes below include a reconciliation of shareholders’ equity figures of consolidated financial statements prepared in accordance with the Argentine GAPP on the transition date (July 1, 2011), on the adoption date (June 30, 2012) and on the closing date of the comparative period (December 31, 2011) and the statement of income and other comprehensive income figures for the fiscal year ended as of June 30, 2012 and for the six-month period ended as of December 31, 2011, and those presented in accordance with the IFRS in these condensed consolidated interim financial statements, as well as the effects of the adjustments to cash flow.

These Unaudited Condensed Interim Consolidated Financial Statements should be read together with the annual financial statements of the Group as of June 30, 2012 prepared in accordance with Argentine GAAP in force. Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statement as of September 30, 2012 and 2011, present additional information as of June 30, 2012 and July 1, 2011 under the IFRS which is considered necessary to understand these condensed interim consolidated financial statements. The Unaudited Condensed Interim Consolidated Financial Statements are presented in Argentine Pesos.

The Condensed Interim Consolidated Financial Statements corresponding to the six-month periods ended as of December 31, 2012 and 2011 have not been audited. The management believes they include all necessary settlements to fairly present the results of each period. Results for the six-month periods ended as of December 31, 2012 and 2011 do not necessarily reflect proportionally the Group’s results for the complete fiscal years.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

The format of the primary financial statements under Argentine GAAP is governed by Technical Resolutions 8 and 9 of the Argentine Federation of Professional Councils of Economic Science (as per its Spanish acronym “FACPCE”) and Resolutions of the CNV. IAS 1 “Presentation of Financial Statements” requires certain disclosures to be made on the face of the primary statements and other required disclosures may be made in the notes or on the face of the financial statements, unless another standard specifies otherwise. The transition to IFRS has resulted in the Group changing the format of its statement of income, statement of financial position and statement of cash flows, as well as the disclosure of certain line items not prescribed by Argentine GAAP.

2.2.	IFRS optional exemptions

As a general rule, the Group is required to establish its IFRS accounting policies for the year ended as of June 30, 2013 and apply these retrospectively. However, advantage has been taken of certain exemptions afforded by IFRS 1 “First-time adoption of International Financial Reporting Standards” as further described below:

Exemption for business combinations

IFRS 1 provides the option to apply IFRS 3, “Business combinations”, prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Group elected to apply IFRS 3 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

The business combination exemption applies equally to acquisitions of investments in associates or joint ventures. The Group elected not to restate the acquisitions of investments in associates or joint ventures prior to transition date.

Exemption for deemed cost

IFRS 1 allows previous GAAP revaluations to be used as deemed cost under IFRS if those valuations were, at the time of the valuation, equivalent to fair value or depreciated cost adjusted to reflect changes in a price index. The Group elected to measure certain items of property, plant and equipment and investment property at price-adjusted values as at July 1, 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

In addition, IFRS 1 allows the carrying values of the assets and liabilities immediately following a business combination to be deemed cost for any cost-based measurement going forward from the date of the combination. The Group adopted a cost-based policy for all of its assets. As such, the Group used the previous fair values recognized in past business combinations (not restated as per the business combination exemption above) for certain items of investment property and property, plant and equipment (primarily shopping centers, and office buildings) as deemed cost at the date of transition. All depreciation methods were already in compliance with those required by IAS 16, “Property, plant and equipment”.

Exemption for cumulative translation/differences

IFRS 1 allows cumulative translation differences to be reset to zero on the transition date. This provides relief from determining accumulated exchange differences in accordance with IAS 21 “The effects of changes in foreign exchange rates”, from the moment a subsidiary or equity method investee was formed or acquired. The Group chose to reset all cumulative translation/differences to zero on the transition date.

Exemption for compound financial instruments

IFRS 1 provides that if the liability component of a financial instrument is no longer outstanding at the date of transition to IFRS, first-time adopters do not have to separate it from the equity component. The Group elected not to restate convertible debt instruments that were not outstanding at the date of transition.

Exemption for borrowing costs

IFRS 1 has been amended to permit first-time adopters not to restate borrowing costs capitalized at transition date under previous GAAP. The Group elected to apply the provisions of IAS 23 “Borrowing costs” prospectively from the date of transition.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

Exemption for assets and liabilities of subsidiaries

In accordance with IFRS 1, if a parent company adopts IFRS subsequent to its subsidiary, associate or joint venture adopting IFRS, the assets and liabilities of the subsidiary, associate or joint venture are to be included in the consolidated financial statements at the same carrying amounts as in the financial statements of the subsidiary, associate or joint venture, adjusted to reflect changes for the Group’s accounting policies upon consolidation, as applicable. The Group’s associate, Tarshop, adopted IFRS for the year ended December 31, 2012. The Group´s joint venture, Cresca, adopted the IFRSs for the fiscal year ended December 31, 2012.

Exemption for share-based payments

IFRS 2 – “Share Based Payments” applies to situations where an entity grants shares or share options to employees or to other parties providing goods and services and requires these payments to be recognized as an expense in the entity’s financial statements. A first time adopter is encouraged to apply IFRS 2 retrospectively. However, an entity may elect not to retrospectively apply IFRS 2 to equity instruments (equity settled transactions) granted on or before November 7, 2002. Similarly, while IFRS 1 encourages a first time adopter to apply IFRS 2 to equity instruments that were granted after November 7, 2002 and that vested before the later of (i) the date of transition and (ii) January 1, 2005, an entity may elect not to retrospectively apply IFRS 2 to these equity instruments. However, a first time adopter can only elect to retrospectively apply IFRS 2 to such equity instruments if it had previously disclosed publicly the fair value of those equity instruments, determined at the measurement date.

Based on this exemption, the Group did not apply IFRS 2 to equity instruments granted after November 7, 2002 and vested prior to transition date, i.e. July 1, 2011, as the fair value of those equity instruments had not been publicly disclosed.

The group has not used other optional exemptions of IFRS 1.

2.3.	IFRS mandatory exceptions

Set out below are the applicable mandatory exceptions in IFRS 1 applied in the transition from Argentine GAAP to IFRS:

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

Exception for estimates

IFRS estimates as at July 1, 2011 are consistent with the estimates as at the same date made in conformity with Argentine GAAP. Therefore the estimates made by the Group under previous GAAP were not revised for application of IFRS except where necessary to reflect any difference in accounting policies.

Exception for non-controlling interests

IFRS 1 establishes that an entity must apply the requirements in IFRS 10 “Consolidated financial statements” for accounting for changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control prospectively. Under previous GAAP, the Group accounted for acquisitions of non-controlling interests that did not result in change of control as business combinations. Furthermore, under Argentine GAAP, the Group accounted for disposals of non-controlling interests based on its carrying value at the date of disposal, recognizing any difference between the carrying value of the non-controlling interest and the consideration received in the statement of income. The Group did not restate these acquisitions prior to transition date.

IFRS 1 establishes that an entity must apply the requirements in IFRS 10 for accounting for a loss of control over a subsidiary prospectively. Under Argentine GAAP, the Company recognized any non-controlling equity investment retained under the equity method at the date control was lost.

The other compulsory exceptions of IFRS 1 have not been applied, as these are not relevant to the Group.

2.4.	Reconciliations of Argentine GAAP to IFRS

In accordance with the requirements of Technical Resolution No. 26 and No. 29 of FACPCE., set out below are the reconciliations of shareholders’ equity from Argentine GAAP to IFRS as of June 30, 2012, December 31, 2011 and July 1, 2011, and the reconciliations of income, comprehensive income and cash flows for the year ended as of June 30, 2012 and for the six-month period ended December 31, 2011. The reconciliations included below were prepared based on the IFRS standards that are estimated to be applicable for the Company for the financial statements as of and for the year ended June 30, 2013. The items and amounts in the reconciliations included below are subject to change and should only be deemed final when the consolidated financial statements prepared under IFRS for the first time as of and for the year ended June 30, 2013 are issued.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

The items and amounts included in the reconciliations could be modified to the extent that, when preparing financial statements as of and for the year ended June 30, 2013, applicable standards are different.

The first reconciliation provides an overview of the impact on equity of the transition at July 1, 2011, at December 31, 2011 and June 30, 2012 (Note 2.4.1). The second reconciliation provides an overview of the impact on income for the six-month period ended as of December 31, 2011 and for the fiscal year ended as of June 30, 2012 (Note 2.4.2). The third reconciliation provides an overview of the impact on comprehensive income for the six-month period ended as of December 31, 2011 and for the fiscal year ended as of June 30, 2012 (Note 2.4.3).

2.4.1.

Summary of equity

		July 1, 2011			December 31, 2011			June 30, 2012
Total shareholders’ equity under Argentine GAAP attributable to CRESUD			2,101,681			2,016,761			2,063,281
Revenue recognition – “scheduled rent increases”	(a)		51,991			65,235			78,479
Revenue recognition – “commissions”	(b)		(35,447	)		(39,524	)		(44,446	)
Biological assets and agriculture produce at the point of harvest	(c)		58,727			19,470			38,517
Inventories	(d)		(6,745	)		(6,547	)		(5,378	)
Trading properties	(e)		(29,315	)		(37,307	)		(18,946	)
Pre-operating and organization expenses	(f)		(22,771	)		(20,757	)		(22,767	)
Goodwill	(g)		770,752			750,700			709,368
Non-current investments – financial assets	(h)		151,411			113,671			138,204
Initial direct costs of operating leases	(i)		698			891			946
Tenant deposits	(j)		114			217			329
Commodity linked debt	(k)		97			101			72
Impairment of financial assets	(l)		(2,088	)		(2,325	)		(519	)
Present value accounting - tax credits	(m)		14,644			11,726			10,931
Investments in associates	(n)		(56,224	)		(92,919	)		(151,873	)
Investments in joint ventures	(o)		(16,496	)		(16,191	)		(11,271	)
Acquisition of non-controlling interest	(p)		-			(34,984	)		(46,320	)
Amortization of borrowing costs capitalized	(r)		110			681			384
Settlement of BrasilAgro warrants	(s)		-			-			(2,706	)
Deferred income tax	(u)		(33,917	)		(16,879	)		(35,550	)
Non-controlling interest on adjustments above	(v)		(217,523	)		(150,537	)		(141,872	)
Subtotal shareholders’ equity under IFRS attributable to CRESUD			2,729,699			2,561,483			2,558,863
Non-controlling interest			2,480,379			2,173,233			2,132,648
Total shareholders’ equity under IFRS			5,210,078			4,734,716			4,691,511

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

2.4.2.

Summary of profit

		Six months			Six months
			12.31.11			12.31.11		06.30.12
Profit under Argentine GAAP attributable to CRESUD			46,723			52,157		78,263
Revenue recognition – “scheduled rent increases”	(a)		13,244			6,622		26,488
Revenue recognition – “commissions”	(b)		(4,077	)		(1,386	)	(8,999	)
Biological assets and agriculture produce at the point of harvest	(c)		(38,488	)		(22,269	)	(17,001	)
Inventories	(d)		199			2,405		1,367
Trading properties	(e)		(7,992	)		(13,487	)	10,369
Pre-operating and organization expenses	(f)		2,014			165		4
Goodwill	(g)		(19,088	)		(3,823	)	(60,428	)
Non-current Investments-financial assets	(h)		(37,739	)		94,376		(13,207	)
Initial direct cost of operating leases	(i)		194			52		248
Tenants Deposits	(j)		102			57		215
Commodity linked debt	(k)		4			(66	)	(25	)
Impairment of financial assets	(l)		(237	)		(166	)	1,569
Present value accounting – tax credits	(m)		(2,919	)		1,275		(3,713	)
Investments in associates	(n)		(34,681	)		(8,673	)	(89,567	)
Investments in joint ventures	(o)		305			219		5,225
Acquisition of non-controlling interest	(p)		(22,721	)		(9,120	)	(26,383	)
Disposal of non-controlling interest	(q)		2,690			2,690		2,690
Amortization of borrowing costs capitalized	(r)		571			501		274
Currency translation adjustments	(t)		12,701			6,481		32,518
Deferred income tax	(u)		16,613			11,984		(2,178	)
Non- controlling interest on adjustments above	(v)		51,871			(45,568	)	40,942
Subtotal (loss) profit under IFRS attributable to CRESUD			(20,711	)		74,426		(21,329	)
Non-controlling interest			44,032			100,169		53,424
Total Profit under IFRS			23,321			174,595		32,095

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

2.4.3.

Summary of comprehensive income

		Six months			Three months
		December 31, 2011			December 31, 2011			June 30, 2012
Net comprehensive (loss) income under Argentine GAAP attributable to CRESUD			(63,100	)		14,725			(58,692	)
Biological assets and agriculture produce at the point of harvest	(c)		(794	)		349			(3,209	)
Goodwill	(g)		(964	)		910			(956	)
Investments in associates	(n)		(2,013	)		(1,337	)		(6,082	)
Currency translation adjustment	(t)		(12,701	)		(6,481	)		(32,518	)
Deferred income tax	(u)		425			245			544
Non-controlling interest on adjustments above	(v)		7,148			2,634			18,974
Other comprehensive (loss) income under IFRS attributable to CRESUD			(71,999	)		11,045			(81,939	)
Non-controlling interest			(116,269	)		17,616			(141,581	)
Net comprehensive (loss) income under IFRS			(188,268	)		28,661			(223,520	)

2.4.4.

Reconciliation of cash flows for the six-month periods ended December 31, 2011

Based on IAS 7 “Statement of Cash Flows” requirements, the Group has made the following reclassification between operating, investing and financing activities in the cash flow statements presented under Argentine GAAP and the cash flows statements under IFRS as further detailed below:

(a)	Operating activities

Cash generated from operating activities under Argentine GAAP	355,537
Proceeds from sale of investment properties and property, plant and equipment	(36,268	)
Deconsolidation of joint ventures	(2,733	)
Foreign exchange Gain on cash and cash equivalents	37,032
Cash generated from operating activities under IFRS	353,568

(b)	Investing activities

Cash used in investing activities under Argentine GAAP	(327,466	)
Acquisition of non-controlling interest in subsidiaries	145,633
Proceeds from sale of investment properties and property, plant and equipment	36,268
Deconsolidation of joint ventures	(2,477	)
Cash used in investing activities under IFRS	(148,042	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(c)	Financing activities

Cash used in financing activities under Argentine GAAP	(171,680	)
Acquisition of non-controlling interest in subsidiaries	(145,633	)
Deconsolidation of joint ventures	(2,946	)
Cash used in financing activities under IFRS	(320,259	)

(d)	Net decrease in cash and cash equivalents

Net decrease in cash and cash equivalents under Argentine GAAP	(143,609	)
Foreign exchange gain on cash and cash equivalents	37,032
Deconsolidation of joint ventures	(8,156	)
Net decrease in cash and cash equivalents under IFRS	(114,733	)

2.4.5.

Reconciliation of cash flows for the year ended June 30, 2012

(a)	Operating activities

Cash generated from operating activities under Argentine GAAP	857,038
Proceeds from sale of property, plant and equipment	(146,706	)
Deconsolidation of joint ventures	(21,554	)
Foreign exchange gain on cash and cash equivalents	5,361
Cash generated from operating activities under IFRS	694,139

(b)	Investing activities

Cash used in investing activities under Argentine GAAP	(728,777	)
Acquisition of non-controlling interest in subsidiaries	202,449
Proceeds from sale of property, plant and equipment	146,706
Deconsolidation of joint ventures	1,027
Cash used in investing activities under IFRS	(378,595	)

(c)	Financing activities

Cash used in financing activities under Argentine GAAP	(283,974	)
Acquisition of non-controlling interest in subsidiaries	(202,449	)
Deconsolidation of joint ventures	7,482
Cash used in financing activities under IFRS	(478,941	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(d)	Net decrease in cash and cash equivalents

Net decrease in cash and cash equivalents under Argentine GAAP	(155,713	)
Foreign exchange gain on cash and cash equivalents	5,361
Deconsolidation of joint ventures	(13,045	)
Net decrease in cash and cash equivalents under IFRS	(163,397	)

2.4.6. Presentation reclassifications affecting the statement of cash flows for the six-month period ended as of December 31, 2011 and for the year ended as of June 30, 2012

Pursuant to Argentine GAAP, the Company proportionally consolidated the joint ventures’ accounts. Consequently, a difference is generated between the amount of cash and cash equivalents reported in the main statement of cash flows under the Argentine GAAP and the amount of cash and cash equivalents that would be reported in the statement of cash flows prepared under IFRS.

On the other hand, under the Argentine GAAP, the effect of exchange rate changes on cash and cash equivalents were disclosed as operating activities and not by presenting a fourth cash flow statement category as required by the IFRSs.

Additionally, pursuant to Argentine GAAP, proceeds from disposal of property, plant and equipment (including properties classified as investment properties under IFRS, were reported as operating activities. In accordance with IFRS, proceeds from disposal of investment properties and property, plant and equipment are reported as investing activities.

Finally, pursuant to Argentine GAAP, acquisition of non-controlling interest was reported as investing activities, whereas, in accordance with IFRS, it must be reported as cash flows from financing activities.

Thus, cash flows generated by or used in operating, investing and financing activities were different in the statement of cash flow prepared.

2.4.7. Explanation of the transition to IFRS

Argentine GAAP differs in certain significant respects from IFRS. Such differences involve methods of measuring the amounts shown in the consolidated financial statements, as further described below:

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(a)

Revenue recognition – “scheduled rent increases”

Argentine GAAP – Revenue from “non-cancelable” leases subject to scheduled rent escalation clauses is recognized when the escalated payments are due. Therefore, revenue does not include an averaging of rental income. Rent-free periods, reduced rent or other tenant incentives, if any, are recognized in the period in which these incentives are provided.

IFRS – The Group applied IAS 17 “Leases”. As a result, lease income from operating leases with scheduled rent increases is recognized on a straight-line basis over the term of the leases. All tenant incentives, if any, are treated as a reduction of rental income on a straight-line basis over the lease terms.

As a result, the Group recognized a receivable for rent averaging of Ps. 52.0 million, Ps. 65.2 million and Ps. 78.5 million in the line item “Trade and other receivables” as at July 1, 2011, December 31, 2011 and as at June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 52.0 million was recognized against retained earnings and an amount of Ps. 13.2 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 52.0 million was recognized against retained earnings and an amount of Ps. 26.5 million was recognized in the statement of income.

(b)

Revenue recognition – “letting fees”

Argentine GAAP – The Group does not generally use the services of a third-party lease agent for its shopping center properties. Rather, the Group acts as its own leasing agent and earns letting fees. Letting fees are recognized at the time a transaction is successfully completed. A transaction is considered successfully completed when both parties (the tenant and the Group) have signed the related lease contract.

IFRS – The Group considers that in these circumstances payments received from tenants for "letting fees" are not different from other payments received such as admission rights. Accordingly, revenue from letting fees is recognized under the straight-line method over the lease term.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

As a result, payments received from tenants for “letting fees” of Ps. 35.4 million, Ps. 39.5 million and Ps. 44.4 million were deferred in the line item “Trade and other payables” as at July 1, 2011, December 31, 2011 and as at June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 35.4 million was recognized against retained earnings and a loss of Ps. 4.1 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 35.4 million was recognized against retained earnings and a loss of Ps. 9.0 million was recognized in the statement of income.

(c)

Biological assets and agriculture produce at the point of harvest

Argentine GAAP – Technical Resolution No. 22 “Agriculture activities” establishes a hierarchy for the valuation of biological assets. The Group has several classes of biological assets.

Biological assets in the form of unharvested crops are measured at replacement cost less any impairment losses. Biological assets in the form of livestock held for sale or for meat production are measured at net realizable value. Biological assets in the form of breeding or dairy cattle are measured at replacement cost. Tree plantations are measured at cost. Argentine GAAP does not prescribe a separate measurement for agriculture produce at the point of harvest.

IFRS – The Group applied IAS 41 “Agriculture”. Under IAS 41, biological assets and agriculture produce at the point of harvest are measured at fair value less costs to sell on initial recognition and at each statement of financial position date, except where fair value cannot be reliably measured. Cost approximates fair value when little or no biological transformation has taken place since the costs were originally incurred or the impact of biological transformation on price is not expected to be material. Changes in fair value less cost to sell are charged to income as incurred.

As a result, the Group adjusted all of its biological assets on the statement of financial position at fair value less costs to sell for an amount of Ps. 58.7 million, Ps. 19.5 million and Ps. 38.5 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized (i) a loss of Ps. 38.5 million in the statement of income, (ii) an amount of Ps. 0.8 million against “Exchange differences on translating foreign operations” in statement of comprehensive income, and (iii) the remaining amount of Ps. 58.7 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized (i) a loss of Ps. 17.0 million in the statement of income, (ii) an amount of Ps. 3.2 million against “Exchange differences on translating foreign operations” in statement of comprehensive income, and (iii) the remaining amount of Ps. 58.7 million against retained earnings.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(d)

Inventories

Argentine GAAP – Inventories, primarily agricultural supplies, are valued at replacement cost. Changes in replacement cost are charged to income as incurred and disclosed on the face of the income statement in the line item titled “Unrealized gain on inventories”. In addition, harvested crops for the Group’s operations in Bolivia are measured at net realizable value, with the change in carrying amount recognized in profit or loss.

IFRS - Consumable supplies are measured at the lower of cost or net realizable value. The cost of consumable supplies is determined using the weighted average method. The cost of hotel inventories is determined using the method first in–first out. In addition, harvested crops for the Group’s operations in Bolivia are measured at the lower of cost or net realizable value because there is no an active market.

As a result, the Group reduced inventories by Ps. 6.7 million, Ps. 6.5 million and Ps. 5.4 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized: a gain of an amount of Ps. 0.2 million in the statement of income and the remaining amount of Ps. 6.7 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized a gain for an amount of Ps. 1.3 million in the statement of income and the remaining amount of Ps. 6.7 million against retained earnings.

(e)

Trading properties

Argentine GAAP – Trading properties are stated at the lower of cost adjusted for inflation or net realizable value. Additionally, trading properties are measured at net realizable value when contracts are exchanged for which a non-refundable deposit has been received securing the sale in advance of legal completion (i.e. transfer of deed of title and significant risk and rewards). This form of sale fixes the price of the property and the terms and conditions of the contract providing reasonable certainty about the closing of the transaction and realization of the gain. Accordingly, these transactions are deemed consummated for Argentine GAAP purposes and revenue is recognized at the time the contract is signed.

IFRS – Trading properties are measured at the lower of cost or net realizable value. Revenue from the sale of properties is recognized only when the significant risks and rewards have transferred to the buyer. This will normally take place on unconditional exchange of contracts (transfer of title deed). For conditional exchanges, sales are recognized when these conditions are satisfied.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

As a result, the Group eliminated the effect of inflation adjustment on trading properties for an amount of Ps. 12.9 million, Ps. 10.2 million and Ps. 9.4 million as at July 1, 2011, December 31, 2011 and June 30, 2012. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 12.9 million was recognized against retained earnings and an amount of Ps. 2.7 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 12.9 million was recognized against retained earnings and an amount of Ps. 3.5 million was recognized in the statement of income.

On the other hand, the Group adjusted the revaluation of trading properties due to property contracts exchanged prior year-end and for which title had not been transferred as of that date, for an amount of Ps. 16.4 million, Ps. 27.1 million and Ps. 9.5 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized: a loss for an amount of Ps. 10.7 million in the statement of income and the remaining amount of Ps. 16.4 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized an amount of Ps. 6.9 million in the statement of income and the remaining amount of Ps. 16.4 million against retained earnings.

(f)

Pre-operating and organization expenses

Argentine GAAP – Under Argentine GAAP, pre-operating, organization expenses and other start-up costs (mainly related to the opening of new shopping centers) are capitalized and amortized under the straight-line method generally over a period of three to five years.

IFRS – IFRS prescribes that pre-operating expenses cannot be attributed to the cost of property, plant and equipment, investment properties, trading properties or the formation of intangible assets and are immediately recognized as expenses.

As a result, the balances of pre-operating, organization expenses and other start-up costs capitalized under Argentine GAAP for an amount of Ps. 22.8 million, Ps. 20.8 million and Ps. 22.8 million, as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively, were derecognized under IFRS. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized: a gain for an amount of Ps. 2.0 million in the statement of income and the remaining amount of Ps. 22.8 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized an amount of Ps. 0.01 million in the statement of income and the remaining amount of Ps. 22.8 million against retained earnings.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(g)

Goodwill

Argentine GAAP – The Group accounted for acquisitions of businesses and non-controlling interests under the acquisition method of accounting. Under the acquisition method of accounting, the Group allocated the purchase price to tangible and intangible assets and liabilities based on the respective fair values. Goodwill represents the excess of cost over the fair value of net identifiable assets and is amortized under the straight-line method over the weighted average useful life of the tangible assets acquired. Goodwill does not exceed its respective estimated recoverable value at year-end.

Consequently, business combinations and acquisitions of non-controlling interests completed prior to July 1, 2011 have not been restated and the carrying amount of goodwill under IFRS as of July 1, 2011 is equal to the carrying amount under Argentine GAAP as of that date totaling Ps. 29.1 million. There were no previously recognized intangible assets under Argentine GAAP that did not qualify for separate recognition under IFRS.

Negative goodwill

Argentine GAAP – Under Argentine GAAP, when the amount paid in a business combination or acquisition of a non-controlling interest was lower than the carrying amount of the acquired assets and assumed liabilities, the Group recognized such amount as negative goodwill on the statement of financial position (as a deduction to non-current assets) and amortized it over the period considered to justify negative goodwill not exceeding 20 years. However, under Argentine GAAP, when negative goodwill exists, acquired intangible assets which otherwise would be recognized are reduced to absorb the negative goodwill even if they are then assigned a zero value.

Additionally, where the amount paid for the acquisition of associates and/or joint ventures is lower to the investor's share in the net fair values of the associate and/or joint venture's identifiable assets and liabilities, the Group recognizes such amount as negative goodwill on the statement of financial position and amortizes it over the period considered to justify negative goodwill not exceeding 20 years.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

IFRS – As noted in Note 2.2., the Group has applied the exemption in IFRS 1 for business combinations. Also, as noted in Note 2.3., the Group has applied the exception in IFRS 1 for acquisitions of non-controlling interests. Consequently, business combinations and acquisitions of non-controlling interests completed prior to July 1, 2011 have not been restated and the carrying amount of negative goodwill under IFRS as of July 1, 2011 is equal to the carrying amount under Argentine GAAP as of that date. In accordance with IFRS, negative goodwill is recognized in profit or loss immediately.

Additionally, acquisitions of associates and/or joint ventures are initially recorded at cost of the investment. Any difference between the cost of the investment and the investor's share in the net fair values of the associates and/ or joint venture’s identifiable assets and liabilities is goodwill. Negative goodwill is taken to the income statement in the period when the associate and/or joint venture is acquired.

As a result, the balances of negative goodwill recognized in the statement of financial position under Argentine GAAP were derecognized under IFRS.

The Group adjusted the value of such goodwill for an amount of Ps. 770.8 million, Ps. 750.7 million and Ps. 709.4 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized (i) a loss of Ps. 19.1 million in the statement of income, (ii) an amount of Ps. 1.0 million against “Exchange differences on translating foreign operations” in the statement of comprehensive income, and (iii) the remaining amount of Ps. 770.8 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized (i) a loss of Ps. 60.4 million in the statement of income, (ii) an amount of Ps. 1.0 million against “Exchange differences on translating foreign operations” in the statement of comprehensive income, and (iii) the remaining amount of Ps. 770.8 million against retained earnings.

(h)

Non-current investments – financial assets

Argentine GAAP – The Group holds investments in quoted equity securities with readily determinable fair values, namely TGLT S.A. and Hersha Hospitality Trust. Under Argentine GAAP, these investments were carried at acquisition cost since they are not held for the purpose of trading in the short term.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

IFRS – Under IFRS 9, all equity investments are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group has elected to recognize changes in the fair value of these equity securities in the statement of income. Therefore, changes in fair value of all equity instruments held by the Company are recognized in the statement of income.

As a result, the Group adjusted the value of these equity securities to fair value by Ps. 151.4 million, Ps. 113.7 million and Ps. 138.2 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 151.4 million was recognized against retained earnings and an amount of Ps. 37.8 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 151.4 million was recognized against retained earnings and a loss for an amount of Ps. 13.2 million was recognized in the statement of income.

(i)

Initial direct costs on operating leases

Argentine GAAP – Under Argentine GAAP, certain initial direct costs (i.e. legal, commissions and other fees) paid to third parties for arranging a lease (when the Group is a lessor) are recognized as an immediate expense when incurred.

IFRS – Initial direct costs incurred by lessors in arranging an operating lease are added to the carrying amount of the leased assets (i.e. investment properties) and are recognized as an expense over the lease term on the same basis as the lease income.

As a result, Ps. 0.7 million, Ps. 0.9 million and Ps. 0.9 million, as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively, were added to investment property. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 0.7 million was recognized against retained earnings and a gain of Ps. 0.2 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 0.7 million was recognized against retained earnings and an amount of Ps. 0.2 million was recognized in the statement of income.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(j)

Tenant deposits

Argentine GAAP - The Group obtains deposits from tenants as a guarantee for returning the property at the end of the lease term in a specified good condition or for the lease payments for a period of generally 3 years. The deposits generally range from one to three months of lease rentals. These deposits are treated as liabilities under Argentine GAAP and measured at the amount received by the tenants.

IFRS - Tenant deposits are treated as both a financial asset and a financial liability in accordance with IFRS 9, and they are initially recognized at fair value. The difference between fair value and cash received is considered to be part of the minimum lease payments received for the operating lease (deferred income). The deposits are subsequently measured at amortized cost, and deferred income is amortized under the straight line method over the lease term.

As a result, the Group adjusted the financial liability from tenant deposits within trade and other payables for an amount of Ps. 0.1 million, Ps. 0.2 million and Ps. 0.3 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized: a gain of Ps. 0.1 million in the statement of income and the remaining amount of Ps. 0.1 million against retained earnings. For the year ended as of June 30, 2012, the Group recognized a gain of Ps. 0.2 million in the statement of income and the remaining amount of Ps. 0.1 million against retained earnings.

(k)

Commodity linked debt

Argentine GAAP – Under Argentine GAAP, there is no requirement to separate embedded derivatives from host contracts and account for them as derivatives. Borrowings are valued based on the best estimate of the discounted value of the amounts expected to be paid, using the interest rate effective at the time of the initial measurement.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

IFRS – IFRS 9 requires that an embedded derivative should be separated from the host contract and accounted for as a derivative if certain conditions are met. On September 7, 2011, the Group issued Class VIII NCN which are denominated in US$ for a nominal amount of US$ 2.1 million. Class VII notes accrue interest at a floor rate of 4% plus a premium factor equivalent to 40% of the increase in the price of soy during the period from March 2011 to March 2013. Under IFRS, the commodity-indexed feature is an embedded derivative that is not clearly and closely related to the debt host instrument because the risks inherent in the derivative (price of soy) and the host are dissimilar. Therefore, the Group separated the commodity-indexed feature and classified it as a derivative liability. The Group measured the carrying value of the debt host contract at initial recognition as the difference between the consideration received and the fair value of the embedded derivative. Subsequently, the Group measured the host foreign-currency debt at amortized cost using the effective interest rate method and then retranslated it at each reporting date using the closing US$/Peso exchange rate. The Group recognized changes in the fair value of the embedded derivative in profit or loss for the period / year.

As a result, the Group adjusted borrowings for an amount of Ps. 0.1 million, Ps. 0.1 million and Ps. 0.1 million as at July 1, 2011, December 31, 2011 and June 30, 2012. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 0.1 million was recognized against retained earnings and a gain of Ps. 0.004 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 0.1 million was recognized against retained earnings and a loss of Ps. 0.03 million was recognized in the statement of income.

(l)

Impairment of financial assets

Argentine GAAP - As at July 1, 2011, December 31, 2011 and June 30, 2012 the Group maintains a balance of credit card loans. These loan receivables are carried at amortized cost. Under Argentine GAAP, the Group determined an allowance for loan losses based on specific criteria set forth for financial and banking institutions.

IFRS – The Group applied the impairment provisions in IFRS 9.

As a result, the Group recognized an impairment loss of Ps. 2.1 million, Ps. 2.3 million and Ps. 0.5 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 2.1 million was recognized against retained earnings and a loss of Ps. 0.2 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 2.1 million was recognized against retained earnings and a gain of Ps. 1.6 million was recognized in the statement of income.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(m)

Present value accounting – tax credits

Argentine GAAP – Under Argentine GAAP, certain long-term tax credits are measurement at present-valued.

IFRS – Under IFRS, there is no requirement to discount long-term tax credits. The Group elects to measure tax receivables and payables at the amounts expected to be recovered from or paid to the tax authorities and thus, not discounting long-term tax credits.

As a result, the Group eliminated the effect of discounting tax credits for an amount of Ps. 14.6 million, 11.7 million and Ps. 10.9 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 14.6 million was recognized against retained earnings and a loss of Ps. 2.9 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 14.6 million was recognized against retained earnings and a loss of Ps. 3.7 million was recognized in the statement of income.

(n)

Impact of IFRS adjustments on investment in associates

Argentine GAAP - Investments in entities in which the Group exercises significant influence, but not control, are accounted for under the equity method. Under the equity method, the investment is recorded at original cost and periodically increased (decreased) by the investor's proportionate share of earnings (losses) of the investee and decreased by all dividends received from the investor by the investee. The Group applied its percentage ownership interest to the financial statements of its equity method investments prepared under Argentine GAAP.

As at June 30, 2012, the associates of the Group were Banco Hipotecario S.A. (BHSA), Banco de Crédito y Securitización (BACSA), Manibil S.A., New Lipstick LLC, Rigby 183 LLC, Tarshop S.A. and AgroUranga S.A., Agro Managers S.A. y Bitania 26 S.A..

IFRS - The Group has assessed all of its interests in the entities mentioned in the paragraph above and determined that the Group exercises significant influence over them. Accordingly, under IFRS, the Group also accounts for these investments under the equity method of accounting. However, the Group has assessed the impact of IFRS adjustments on the financial statements of these investments prepared under Argentine GAAP prior to the application of the equity method.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

Following is a description of the most significant IFRS adjustments to the equity and comprehensive income of its associates. For ease of presentation and to facilitate an understanding of the nature of the IFRS adjustments, associates were grouped by business activities. Associates are not discussed below when IFRS adjustments were not significant to the Group or no IFRS adjustments were identified:

Banking:

The Group assessed the financial statements of these associates as of July 1, 2011, December 31, 2011 and June 30, 2012 and determined the following adjustments to IFRS:

- Under Argentine GAAP, revenues from life and disability insurance and loan origination fees are recognized on an up-front basis. Under IFRS, these revenues are recognized on a straight line basis over the term of the respective underlying receivables.

- Under Argentine GAAP, the allowance for loan losses are recognized based on specific criteria as set forth by the Central Bank for financial and banking institutions. Under IFRS, the associate applied the impairment provisions in IFRS 9.

- Under Argentine GAAP, receivables transferred to trusts in securitization programs are treated as sales and a gain or loss is recognized on the sale. Usually the transferor retains an interest in the trust and maintains a cash reserve which serves as collateral for payments of amounts due under the debt securities issued by the trust. Under IFRS, following the provisions of IFRS 9, the associate is not able to derecognize financial assets with these characteristics. As a result, the associate continues recognizing the receivables and a liability for the consideration received upon transfer. The receivables recognized are then tested for impairment following the IFRS 9 criteria.

- Under Argentine GAAP, the calculation of the insurance technical reserves is recognized following the regulations issued by the National Insurance Superintendence. Under IFRS, following the guidance of IFRS 4 “insurance contracts”, the associate measured the insurance technical reserve in accordance with the “best estimation” approach.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

Investment properties:

The Company has assessed the financial statements of the associates related to the investment property business and determined the following adjustments to IFRS as of July 1, 2011, December 31, 2011 and June 30, 2012:

- Under Argentine GAAP, revenue from non-cancelable leases subject to scheduled rent escalation clauses is recognized when the escalated payments are due. Therefore, revenue does not include an averaging of rental income. Rent-free periods, reduced rent or other tenant incentives, if any, are recognized in the period in which these incentives are provided. Under IFRS, Lease income from operating leases with scheduled rent increases is recognized on a straight-line basis over the term of the leases. All tenant incentives, if any, are treated as a reduction of rental income on a straight-line basis over the lease terms.

- Under Argentine GAAP, lease expense where the entity is the lessee under an operating ground lease agreement subject to escalation clauses is recognized when the escalated payments are due. Therefore, lease expense not recognized on a straight-line basis Under IFRS, lease payments for operating leases with scheduled rent increases are recognized on a straight-line basis over the term of the leases.

As a result, the net equity of these associates was reduction by Ps. 56.2 million, Ps. 92.9 million and Ps. 151.9 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized (i) an amount of Ps. 56.2 million against retained earnings, (ii) a loss of Ps. 34.7 million in the statement of income and (iii) an amount of Ps. 2.0 million against “Exchange differences on translating foreign operations” in the statement of comprehensive income. For the year ended as of June 30, 2012, the Group recognized (i) an amount of Ps. 56.2 million against retained earnings, (ii) a loss of Ps. 89.6 million in the statement of income and (iii) an amount of Ps. 6.1 million against “Exchange differences on translating foreign operations” in statement of comprehensive income.

(o)

Impact of IFRS adjustment on joint ventures

Argentine GAAP – Investments in entities in which the Company exercises joint control are accounted for under the proportionate consolidation method. Under the proportionate consolidation method, the financial statements of the Group reflect the Group´s pro-rata equity interest in the jointly controlled entities on a line-by-line basis. The Group applied its pro-rata equity interest to the financial statements of its jointly-controlled entities prepared under Argentine GAAP.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

IFRS – The Group has assessed all of its interests in joint arrangements and determined that they are joint ventures under IFRS 11. Accordingly, the Group accounted for its joint ventures under the equity method of accounting. In addition, the Group has assessed the impact of IFRS adjustments on the financial statements of joint ventures prepared under Argentine GAAP prior to the application of the equity method.

As at June 30, 2012, the joint ventures of the Group are Cyrsa S.A., Cresca S.A., Canteras Natal Crespo S.A., Puerto Retiro S.A., Baicom Networks S.A., Quality Invest S.A., and Nuevo Puerto Santa Fe S.A.

Following is a description of the most significant IFRS adjustments to the net equity and income of the joint ventures. For ease of presentation and to facilitate an understanding of the nature of the IFRS adjustments, joint ventures were grouped by business activity. Joint ventures are not discussed below when IFRS adjustments were not significant to the Group or no adjustments were identified:

- Under Argentine GAAP, the joint venture has historically accounted for revenues and therefore profits from all property sales on a percentage of completion basis once contracts for the sale of a property have been exchanged and only if the eventual profit from that property can be foreseen with reasonable certainty. Under IFRS, the joint venture has applied IFRIC 15 “Agreements for the Construction of Real Estate”. The Group assessed the contractual terms of the agreements and concluded that revenue from open market sales of real estate should be accounted for on legal completion of the properties in accordance with IAS 18 “Revenue”. As a result, the joint venture recognizes revenue from the sale of private homes and commercial units entirely at the point of legal completion in accordance with IAS 18. The most significant impact of IFRIC 15 is therefore the deferral of profits previously recognized from the point of exchange of contracts onwards until the point of legal completion. All of these profits are now recognized at a later date.

As a result, the net equity of the Group´s joint ventures was decreased by Ps. 16.5 million, Ps. 16.2 million and Ps. 11.3 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 16.5 million was recognized against retained earnings and a gain of Ps. 0.3 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 16.5 million was recognized against retained earnings and a gain of Ps. 5.2 million was recognized in the statement of income.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(p)

Acquisition of non-controlling interest

As stated in Note 2.3., the Group has applied the exception provided by IFRS 1 for accounting for changes in the interest in subsidiaries that do not result in loss of control. Consequently, acquisitions of non-controlling interests concluded prior to July 1, 2011 have not been restated.

IFRS adjustments detailed below relate to acquisitions of non-controlling interest occurring on or after on July 1, 2011.

Argentine GAAP – Under Argentine GAAP, the Group accounted for the acquisition of the non-controlling interests under the purchase method of accounting. Under the purchase method of accounting, the purchase price paid is allocated to the net assets acquired based on its fair value. Assets, including goodwill, and liabilities of the acquired business are recognized using a cost accumulation approach (i.e. for the previous equity interests acquired). These acquisitions generated goodwill since the cost of acquisition exceeded the fair value of the net tangible and intangible assets acquired. Additionally, goodwill generated by the acquisition of the non-controlling interest in Cactus Argentina S.A. was impaired and recognized as an expense in the statement of income under Argentine GAAP.

IFRS – Under IFRS, the Group has applied the principles of IFRS 10 in accounting for changes in ownership interests. As per IFRS 10, when an additional interest is obtained and control is maintained, the transaction is accounted for as an equity transaction. The Group does not recognize any additional acquisition adjustments to reflect the subsequent acquisition of additional shares in the subsidiary if there is no change in control.

Under IFRS, the difference between the fair value of the consideration paid and the related carrying value of the non-controlling interest acquired is recognized in the controlling interest’s equity as a credit or debit to a reserve in net equity. Therefore, no gain or loss is recognized in the statement of income and no additional goodwill is recognized. The carrying value of the non-controlling interest is adjusted to reflect the change in the non-controlling interest of the subsidiary.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

As a result, as of December 31, 2011, the Group (i) derecognized goodwill for an amount of Ps. 26.5 million, (ii) recognized a decrease in non-controlling interest for an amount of Ps. 22.6 million, (iii) recognized a decline of Ps. 9.0 million in net assets acquired measured at fair value under Argentine GAAP in force and (iv) recognized a debit in shareholders’ equity under IFRS of Ps. 14.9 million. In addition, as of June 30, 2012, the Group: (i) derecognized goodwill for an amount of Ps. 39.8 million, (ii) recognized a decline of Ps. 26.2 million in non-controlling interest, (iii) recognized a decline of Ps. 9.0 million in net assets acquired measured at fair value in accordance with Argentine GAAP in force, and (iv) recognized a debit of Ps. 22.6 million in shareholders’ equity.

Additionally, for the fiscal year ended as of June 30, 2012, the Group reversed the impairment charge on goodwill generated by the acquisition of the non-controlling interest in Cactus Argentina S.A. recognized under Argentine GAAP for an amount of Ps. 10.5 million.

(q)

Disposal of non-controlling interest

As explained in Note 2.3., the Group has applied the exception provided by IFRS 1 for accounting for changes in the interest in subsidiaries that do not result in a loss of control. Consequently, disposals of non-controlling interests concluded prior to July 1, 2011 have not been restated.

The IFRS adjustments detailed below relate to disposals of non-controlling interest occurring on or after July 1, 2011.

Argentine GAAP – Under Argentine GAAP, the Group accounted for disposals of non-controlling interests based on its carrying value at the date of disposal, recognizing any difference between the carrying value of the non-controlling interest and the consideration received in the statement of income.

IFRS – Under IFRS, the Group has applied the principles of IFRS 10 in accounting for changes in ownership interests. As per IFRS 10, when there is a disposal of non-controlling interests that do not result in a change in control, the transaction is accounted for as an equity transaction. The difference between the fair value of the consideration received and the related carrying value of the non-controlling interest disposed is recognized in the controlling interest’s equity as a credit or debit. Therefore, no gain or loss is recognized in the statement of income. The carrying value of the non-controlling interest is adjusted to reflect the change in the non-controlling interest of the subsidiary.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

As a result, as of June 30, 2012 and December 31, 2011, the Group reversed a loss for an amount of Ps. 2.7 million in the statement of income, and recognized a debit of Ps. 2.7 million in shareholders’ equity.

(r)

Amortization of transaction costs on borrowings

Argentine GAAP – Under Argentine GAAP, transactions costs directly attributable to the acquisition of borrowings are amortized under the straight-line method over the contract term.

IFRS – Transaction costs directly attributable to the acquisition of borrowings are deducted from the fair value at which the financial liability is initially recognized. Subsequently, they are amortized using the effective interest method over the contract term.

As a result, the Group adjusted the carrying value of borrowings for an amount of Ps. 0.1 million, Ps. 0.7 million and Ps. 0.4 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 0.1 million was recognized against retained earnings and an amount of Ps. 0.6 million gain were recognized in the statement of income. For the fiscal year ended as of June 30, 2012, an amount of Ps. 0.1 million was recognized against retained earnings and a gain of Ps. 0.3 million was recognized in the statement of income.

(s)

Settlement of BrasilAgro warrants

Argentine GAAP – Payments made by the Group for the settlement of BrasilAgro warrants were capitalized in the statement of financial position.

IFRS – In accordance with IFRS 2 “Share-based payments”, any payment made to a counterparty on the cancellation or settlement of a grant of equity instruments, even if this occurs after the vesting date, are accounted for as a repurchase of an equity interest (that is, as a deduction from equity), except to the extent that the payment exceeds the fair value of the equity instruments repurchased, measured at the repurchase date. Any such excess is recognized as an expense.

As a result, the Group adjusted the balance for an amount of Ps. 2.7 million as of June 30, 2012, against a deduction in the shareholders’ equity. For the six-month period ended as of December 31, 2011, no warrants issued by Brasilagro have been cancelled.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

(t)

Cumulative translation adjustment

Argentine GAAP – Foreign operations shall be classified as integrated or non-integrated entities depending if their activities are carried out as an extension of the reporting entity. Exchange differences resulting from the translation of integrated entities are recognized in the statement of income. Exchange differences resulting from the translation of non-integrated entities are recognized in a separate reserve in equity.

IFRS – Exchange differences resulting from the translation of foreign operations are recognized in the statement of other comprehensive income.

As a result, for the six-month period ended as of December 31, 2011 the Group reclassified an amount of Ps. 12.7 million against the statement of income and the statement of other comprehensive income, related foreign operations. Additionally, the Group reclassified an amount of Ps. 32.5 million for the fiscal year ended as of June 30, 2012 against the statement of income and the statement of other comprehensive income.

(u)

Deferred income taxes

Argentine GAAP – The Group accounts for income taxes using the deferred tax method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax based assets and liabilities and are measured using the enacted tax rates. Argentine GAAP does not prescribe detailed specific guidance related to the recognition of a valuation allowance. The Group assesses the need for a valuation allowance based on several factors including but not limited to current projections, legal expiration periods and others.

IFRS – There is no difference in the determination of deferred income taxes. However, deferred tax assets are recognized when it is considered probable (defined as “more likely than not”) that sufficient taxable profits will be available to utilize the temporary difference or unused tax losses. IFRS does not allow the recognition of valuation allowances.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

IFRS establishes more specific and strict procedures to assess whether a deferred tax asset should be recognized. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a deferred tax asset should be recognized. Judgment must be used in considering the relative impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists (a) the more positive evidence is necessary and (b) the more difficult it is to support a conclusion that a deferred tax asset can be recognized.

As a result, on transition to IFRS, the Group has not recognized deferred tax assets relating to any carry forward losses and other temporary differences for an amount of Ps. 16.5 million, Ps. 13.0 million and Ps. 18.8 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Group recognized (i) an amount of Ps. 16.5 million against retained earnings, (ii) a loss of Ps. 3.2 million in the statement of income, and (iii) an amount of Ps. 0.4 million against “Exchange differences on translating foreign operations” in statement of comprehensive income. For the year ended as of June 30, 2012, the Group recognized (i) an amount of Ps. 16.5 million against retained earnings, (ii) a loss of Ps. 2.8 million in the statement of income, and (iii) an amount of Ps. 0.5 million against “Exchange differences on translating foreign operations” in statement of comprehensive income.

In addition, the Group has assessed the impact of all IFRS adjustments on deferred income taxes. As a result, the Group recognized an adjustment to deferred income taxes of Ps. 17.4 million, Ps. 3.9 million and Ps. 16.7 million as at July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As at July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 17.4 million was recognized against retained earnings and a gain of Ps. 13.4 million was recognized in the statement of income. For the year ended as of June 30, 2012, an amount of Ps. 17.4 million was recognized against retained earnings and a gain of Ps. 0.6 million was recognized in the statement of income.

(v)

Non-controlling interest

Differences for non-controlling interest include the effect of recording, where applicable, the corresponding effect of other differences between Argentine GAAP and IFRS.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation and adoption of international financial reporting standards (“IFRS”) (Continued)

2.5.	Significant Accounting Policies

The principal accounting policies applied in the preparation of these Unaudited Condensed Interim Consolidated Financial Statements are consistent with those applied in the preparation of the information under IFRSs as of June 30, 2012, which is described in Exhibit I included the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011, and are based upon such IFRSs expected to be in force as of June 30, 2013. Most significant accounting policies are described in Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

2.6.	Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these condensed interim consolidated financial statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the annual consolidated financial statements for the year ended as of June 30, 2012 which are described in Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

3.	Seasonal effects on operations

The operations of the Group’s agricultural business are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between February and June every year. Wheat is generally harvested between November and January. In Bolivia, weather conditions make it possible to have two soybeans, corn and barley seasons and, therefore, these crops are harvested in April and October, whereas wheat and sunflower are harvested in August and September, respectively. Other segments of the agricultural business, such as beef cattle and milk production tend to be more stable. However, beef cattle and milk production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results across quarters.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

3.	Seasonal effects on operations (Continued)

The operations of the Group’s shopping centers are also subject to seasonal effects, which affect the level of sales recorded by lessees. During summer time (January and February), the lessees of shopping centers experience the lowest sales levels in comparison with the winter holidays (July) and December (Christmas) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also affect the business. As a consequence, a higher level of revenues is generally expected in the second half of the year rather than the first in shopping center operations.

4. Acquisitions and dispositions

Sale of farm

On November 14, Vargas Derka SH made an irrevocable offer to Cresud to purchase a portion of “La Suiza” farm ranch (5,600 hectares) to be good through January 31, 2013.

The offer price amounts to US$ 6.7 million to be paid in 6 installments every six months. The first installment is due on January 31, 2013 and bears interest at a 12% rate.

As bid bond, Cresud has received checks in the amount of US$ 0.3 million or 5% of the transaction price.

If the offer is accepted, the parties will execute the preliminary sales contract on January 31, 2013, with the checks being creditable against the price. The title deed will be executed on June 28, 2013.

Sale of a field

On October 11, 2012 Brasilagro sold Horizontina, a field of land located in Tasso Fragoso, State of Maranhão, for a total amount of Ps. 170.2 million. Following a down payment of Ps. 2.27 million already made, the remaining balance is payable in two installments: Ps. 59 million due in October 2012 and Ps. 108.9 million due upon execution of the title conveyance deed, which is expected to take place in January 2013. The Horizontina field has an area of 14,359 hectares and was acquired on March 10, 2010 by Ceibo Bienes Raíces, the subsidiary in US for a total amount of Ps. 86 million. Before the acquisition, 2,100 hectares of the country field were used for cultivation of cereal. Until December 31, 2012, the Company invested Ps. 22.7 million (net of accumulated depreciation) in infrastructure improvements. During the planting season 2011/2012, 4,319 hectares were planted with soybean and 2,095 with maize. The sale commission was Ps. 4.5 million and sales taxes amounted to Ps. 11.3 million; net proceeds from the sale less commissions, expenses and taxes amounted to Ps. 53.9 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4. Acquisitions and disposals (Continued)

For the six-month period ended as of December 31, 2012

Transactions with non-controlling interest

IRSA

In July, 2012, the Company acquired an additional 0.3% interest in IRSA for a total consideration of US$ 1.3 million. The carrying amount of the non-controlling interest in IRSA as of the acquisition date was Ps. 948 (representing an equity interest of 35.8%). This resulted in a decrease in non-controlling interest of Ps. 8.0 million and an increase in equity attributable to owners of the parent of Ps. 8.0 million. The effect of changes in the ownership interest of IRSA on the equity attributable to owners of the group during the period is summarized as follows:

	Ps. (million)
Carrying amount of Group´s interest acquired of		8.0
Consideration paid for non-controlling interest		(5.7	)
Gain on acquisition recorded within parent´s equity		2.3

APSA

As of August, 2012, the Group, through E-Commerce Latina S.A., acquired an additional equity interest of 0.03% in APSA for a total consideration of Ps. 0.59 million. The book value of the non-controlling interest in APSA as of the date of the acquisition was Ps. 36 million (which represents an interest of 4.39%). As a result of this transaction, the non-controlling interest was reduced by Ps. 1 million and the interest attributable to the shareholders’ of the controlling parents was reduced by Ps. 1 million. The effect on shareholders’ equity of this change in the equity interest in APSA is summarized as follows:

	Ps. (million)
Carrying amount of Group´s interest acquired of		0.3
Consideration paid for non-controlling interest		(0.6	)
Reserve recorded within parent´s equity		(0.3	)

As of October, 2012, the Group, through E-Commerce Latina S.A., acquired an additional equity interest of 0.04% in APSA for a total consideration of Ps. 1.1 million. The book value of the non-controlling interest in APSA as of the date of the acquisition was Ps. 39 million (which represents an interest of 4.36%). As a result of this transaction, the non-controlling interest was reduced by Ps. 0.3 million and the interest attributable to the shareholders’ of the controlling parents was reduced by Ps. 0.3 million. The effect on shareholders’ equity of this change in the equity interest in APSA is summarized as follows:

	Ps. (million)
Carrying value of the equity interests acquired by the Group		0.3
Price paid for the non-controlling interest		(1.1	)
Reserve recorded in shareholders' equity		(0.8	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

Acquisition of equity interest in joint venture

On November 29, 2012 APSA acquired shares of common stock, representing 50% of Entertainment Holdings S.A. (“EH”)´s capital stock and votes for Ps. 32 million. APSA exercises joint control over EH together with shareholders owners of the remaining 50%.

EH’s core asset is a 50% indirect interest in La Rural S.A. (“LRSA”)’s capital stock and votes. EH exercises joint control over LRSA, together with Sociedad Rural Argentina (SRA), the owner of the remaining 50% interest in LRSA.

Therefore, APSA´s indirect interest in LRSA amounts to 25% as of the date of these Unaudited Condensed Interim Consolidated Financial Statements.

LRSA is mainly engaged in the operation of Predio Ferial de Buenos Aires, a fairground located in an area surrounded by Cerviño, Sarmiento, and Santa Fe Avenues and Oro Street, City of Buenos Aires (the “Fairground”). LRSA is the beneficiary of said Fairground under a usufruct agreement executed with the owner thereof, SRA, in 1999.

Purchase of financial assets

During this period the Group purchased the following corporate notes from:

a) The Government of the City of Buenos Aires, for a nominal value of Ps. 19.0 million. These notes accrue interest at an annual 7.95% fixed rate, payable semi- annually and maturing on April 29, 2014.

b) Banco Hipotecario for Ps. 5 million, which accrue interest at an annual 18.75% fixed annual rate, payable semi- annually and maturing on August 8, 2013.

Disposal of financial assets at fair value through profit or loss

In September 2012 the Group sold 2,000,000 ordinary shares of Hersha, Hospitality Trust (Hersha) for a total amount of US$ 9.7 million. Therefore, the Group’s interest in Hersha’s capital stock decreased from 9.13% to 8.12% as of September 30, 2012. This percentage has remained unchanged as of the date of these Unaudited Condensed Interim Consolidated Financial Statements. Subsequent to December 31, 2012, the Group disposed of an additional number of Hersha’s shares. See Note 33.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

In November and December 2012, IRSA sold all of its shareholdings in NH Hoteles S.A. (138,572 shares for a consideration of € 0.38 million) and in NH Hoteles S.A. (387,758 shares for a total consideration of US$ 1.4 million).

In December 2012, IRSA sold all of its shareholdings in Metrovacesa F (1,238,990 shares for a consideration of € 2.7 million); Metrovacesa SM (229,995 shares for a total consideration of € 0.5 million) and Metrovacesa F (919,087 shares for a consideration of US$ 2.7 million).

Significant sale of investment properties

On August 31, 2012, the Group sold through IRSA sold certain functional units of the building “Libertador 498” in the city of Buenos Aires. The total price of the transaction amounted to Ps. 15 million and was paid on the execution of the title conveyance deeds. This transaction generated a gain of Ps. 12.7 million.

On September 14, 2012, IRSA sold certain functional units on floors 18 and 19, as well as parking areas, of the building Bouchard 551. The total price of the transaction was US$ 8.5 million paid upon execution of the conveyance deed. This transaction generated a gain of Ps. 18.4 million.

On October 4 and 11, 2012, IRSA signed the deeds of conveyance for the sale of certain units (offices and parking spaces) at the “Libertador 498” building. The prices for the transactions were set in Ps. 29.4 million, an amount that has been totally collected. The transaction yielded profits for Ps. 24.9 million.

Subsequent to December 31, 2012, IRSA disposed of other investment property.

Acquisition of Rigby 183 LLC

On June 30, 2012, the Group held, through its subsidiary IMadison LLC, a 49% equity interest through its subsidiary IMadison LLC in the capital stock of Rigby 183 LLC (“Rigby”), a company that owns office buildings for rental at Madison Avenue 183, New York, USA. On November 27, 2012, the Group, through its subsidiary IRSA International LLC, purchased an additional 25.5% equity interest in Rigby’s capital stock, thus taking control over said company. As a result of the acquisition, the Group expects to increase its footprint in the US real estate market. The goodwill from the acquisition, which amounts to Ps. 45.7 million, is attributable to the synergies expected to be achieved by combining the Group’s and Rigby’s operations.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

The following chart shows the consideration paid by the Group, the fair value of the acquired assets, the assumed liabilities and the non-controlling interest as of the acquisition date.

	11.27.2012
Consideration paid:
Cash	118,373
Total consideration paid	118,373
Fair value of the interest in Rigby’s equity held before the business combination	227,462
Total consideration	345,835
Recognized balances of acquired identifiable assets and assumed liabilities:
Cash and cash equivalents	499
Investments properties (Note 9)	679,219
Trade and other receivables	14,135
Borrowings	(252,834	)
Trade and other payables	(12,081	)
Deferred income tax liabilities (Note 22)	(26,103	)
Total net identifiable assets	402,835
Non-controlling interest	(102,723	)
Goodwill	45,723
Total	345,835

The acquisition-related costs (which amount to Ps. 2.5 million) were charged to income under “General and Administrative Expenses”.

The fair value of the investment property acquired for Ps. 679.2 million was assessed by a qualified independent appraiser. The fair value of trade receivables and other receivables amounts to Ps. 14.1 million, including trade receivables in the amount of Ps. 0.1 million. As of the acquisition date, the Group estimates that these receivables are recoverable. The fair value of the non-controlling interest in Rigby, an unlisted company, has been determined on a proportional basis to the fair value of Rigby's net acquired assets.

The Group recognized income of Ps. 124.1 million derived from the reassessment of the fair value of the 49% interest held in Rigby before the business combination. In addition, all exchange gains (losses) accumulated in shareholder’s equity from the interest held in Rigby before the business combination (Ps. 12.9 million) were charged to income. These gains were disclosed under "Other operating income, net" in the income statement.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

The revenues Rigby has generated since November 27, 2012 and that have been disclosed in the consolidated income statement amount to Ps. 12.1 million. Rigby has also run a net loss of Ps. 4 million during said period. If Rigby had been included in the consolidation since July 1, 2012, the consolidated income statement would have shown pro-forma revenues in the amount of Ps. 1,101.4 million and pro-forma net income of Ps. 244.2 million.

5.	Financial risk management

5.1.	Financial risk

The group´s diverse activities are exposed to a variety of financial risk: market risk (including foreing currency risk, interest rate risk and price risk) credit risk, liquidity risk and capital risk.

Note 3 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011, provides information on financial risk management as of June 30, 2012 and July 1, 2011. Since June 30, 2012 there have been no changes in the risk management or risk management policies applied by the Group.

5.2. Fair value estimates

Since June 30, 2012 there have been no reclassifications of financial assets.

Additionally, since June 30, 2012 there have been no significant changes in business or economic circumstances affecting the fair value of the Group's financial assets or liabilities (either measured at fair value or amortized cost), nor any transfers between the different hierarchies used to assess the fair value of the Group's financial instruments.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information

Below is a summarized analysis of the lines of business of the Group for the six-month period ended December 31, 2012:

	Agriculture business (I)			Urban properties and investments (II)			Total
Group revenues		527,774			1,164,933			1,692,707
Group costs		(888,487	)		(606,343	)		(1,494,830	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		462,368			-			462,368
Changes in net realizable value of agricultural produce after harvest		6,811			-			6,811
Gross Profit		108,466			558,590			667,056
Gains from disposal of investment property		-			53,678			53,678
Gains from disposal of farmlands		53,988			-			53,988
General and administrative expenses		(67,349	)		(109,908	)		(177,257	)
Selling expenses		(75,520	)		(54,791	)		(130,311	)
Management fees		(6,751	)		-			(6,751	)
Other operating expenses, net		(10,480	)		115,074			104,594
Profit from Operations		2,354			562,643			564,997
Share of profit of associates and joint ventures		317			7,033			7,350
Segment Profit		2,671			569,676			572,347

Investment properties, net		25,190			4,254,430			4,279,620
Property, plant and equipment, net		1,609,759			235,769			1,845,528
Trading properties		4,678			247,271			251,949
Goodwill		7,159			5,824			12,983
Biological assets		277,526			-			277,526
Inventories		201,081			16,197			217,278
Investments in of associates and joint ventures		24,198			1,121,686			1,145,884
Total segment assets		2,149,591			5,881,177			8,030,768

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

Below is a summarized analysis of the lines of business of the Group for the six-month period ended December 31, 2011:

	Agriculture business (I)			Urban properties and investments (II)			Total
Group revenues		543,552			945,423			1,488,975
Group costs		(700,578	)		(470,159	)		(1,170,737	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		238,016			-			238,016
Changes in net realizable value of agricultural produce after harvest		(11,260	)		-			(11,260	)
Gross Profit		69,730			475,264			544,994
Gains from disposal of investment properties		-			24,727			24,727
Gains from disposal of farmlands		27,762			-			27,762
General and administrative expenses		(63,483	)		(82,645	)		(146,128	)
Selling expenses		(52,200	)		(37,733	)		(89,933	)
Management fees		(4,612	)		-			(4,612	)
Other operating income (expenses), net		18,018			(9,551	)		8,467
(Loss) / Profit from operations		(4,785	)		370,062			365,277
Share of profit of associates and joint ventures		2,425			14,358			16,783
Segment (Loss) / Profit		(2,360	)		384,420			382,060

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

(I)	Agriculture line of business:

The following tables present the reportable segments of the agriculture line of business of the Group:


	December 31, 2012
	Agriculture
	Crops			Cattle			Dairy			Sugarcane			Agriculture Rentals and Services			Agriculture Subtotal			Land transformation and sales			Agro-industrial			Other segments			Total agricultural business (I)
Group revenues		243,925			35,824			16,535			111,830			12,072			420,186			-			67,211			40,377			527,774
Group costs		(465,724	)		(62,633	)		(34,072	)		(214,645	)		(3,772	)		(780,846	)		(3,067	)		(69,984	)		(34,590	)		(888,487	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		286,498			27,164			18,272			128,565			-			460,499			-			1,142			727			462,368
Changes in net realizable value of agricultural produce after harvest		6,726			85			-			-			-			6,811			-			-			-			6,811
Gross Profit / (Loss)		71,425			440			735			25,750			8,300			106,650			(3,067	)		(1,631	)		6,514			108,466
Gains from disposal of farmlands		-			-			-			-			-			-			53,988			-			-			53,988
General and administrative expenses		(26,046	)		(4,037	)		(674	)		(20,306	)		(969	)		(52,032	)		(7,496	)		(4,401	)		(3,420	)		(67,349	)
Selling expenses		(51,812	)		(5,452	)		(107	)		(2,213	)		(595	)		(60,179	)		(7,219	)		(6,777	)		(1,345	)		(75,520	)
Management fees		-			-			-			-			-			-			-			-			(6,751	)		(6,751	)
Other operating expenses, net		(4,397	)		(1,420	)		(236	)		(87	)		(340	)		(6,480	)		(2,629	)		(702	)		(669	)		(10,480	)
(Loss) / Profit from Operations		(10,830	)		(10,469	)		(282	)		3,144			6,396			(12,041	)		33,577			(13,511	)		(5,671	)		2,354
Share of profit / (loss) of associates and joint ventures		(207	)		(29	)		(14	)		-			(10	)		(260	)		-			-			577			317
Segment (Loss) / Profit		(11,037	)		(10,498	)		(296	)		3,144			6,386			(12,301	)		33,577			(13,511	)		(5,094	)		2,671

Investment properties		-			-			-			1,516			23,674			25,190			-			-			-			25,190
Property, plant and equipment		1,125,558			129,073			20,924			303,204			363			1,579,122			-			20,777			9,860			1,609,759
Trading properties		557			3,258			-			-			706			4,521			-			-			157			4,678
Goodwill		4,393			-			-			1,970			-			6,363			-			-			796			7,159
Biological assets		1			177,458			-			96,861			-			274,320			-			-			3,206			277,526
Inventories		54,607			2,962			-			-			-			57,569			-			-			143,512			201,081
Investments associates and joint ventures		9,745			3,255			557			-			801			14,358			6,192			-			3,648			24,198
Total segment assets		1,194,861			316,006			21,481			403,551			25,544			1,961,443			6,192			20,777			161,179			2,149,591

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

	December 31, 2011
	Agriculture
	Crops			Cattle			Dairy			Sugarcane			Agriculture Rentals and Services			Agriculture Subtotal			Land transformation and sales			Agro-industrial			Other segments			Total agricultural business (I)
Group revenues		254,004			54,417			14,684			87,319			10,857			421,281			-			97,012			25,259			543,552
Group costs		(385,004	)		(73,744	)		(27,823	)		(88,222	)		(853	)		(575,646	)		(2,311	)		(101,109	)		(21,512	)		(700,578	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		181,900			31,202			19,427			5,173			-			237,702			-			323			(9	)		238,016
Changes in net realizable value of agricultural produce after harvest		(11,490	)		127			-			-			-			(11,363	)		-			-			103			(11,260	)
Gross Profit / (Loss)		39,410			12,002			6,288			4,270			10,004			71,974			(2,311	)		(3,774	)		3,841			69,730
Gains from disposal of farmlands		-			-			-			-			-			-			27,762			-			-			27,762
General and administrative expenses		(27,371	)		(11,506	)		(888	)		(16,943	)		-			(56,708	)		-			(4,324	)		(2,451	)		(63,483	)
Selling expenses		(38,119	)		(5,849	)		(137	)		-			(519	)		(44,624	)		-			(5,639	)		(1,937	)		(52,200	)
Management fees		-			-			-			-			-			-			-			-			(4,612	)		(4,612	)
Other operating results, net		21,518			(3,541	)		(273	)		(7	)		-			17,697			-			(22	)		343			18,018
Profit / (Loss) from Operations		(4,562	)		(8,894	)		4,990			(12,680	)		9,485			(11,661	)		25,451			(13,759	)		(4,816	)		(4,785	)
Share of profit / (loss) of associates and joint ventures		1,141			1,294			100			(177	)		-			2,358			-			-			67			2,425
Segment Profit / (Loss)		(3,421	)		(7,600	)		5,090			(12,857	)		9,485			(9,303	)		25,451			(13,759	)		(4,749	)		(2,360	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

(II)	Urban properties and investments

The following tables present the reportable segments of the urban properties and investments line of business of the Group:

	December 31, 2012
	Shopping Center Properties			Offices			Sales and developments			Hotel			International			Financial operations and others			Total urban and investment properties (II)
Group revenues		809,002			139,971			85,735			116,807			12,100			1,318			1,164,933
Group costs		(387,778	)		(59,377	)		(63,144	)		(84,947	)		(10,292	)		(805	)		(606,343	)
Gross Profit		421,224			80,594			22,591			31,860			1,808			513			558,590
Results from disposal of investment properties		-			(2,281	)		55,959			-			-			-			53,678
General and administrative expenses		(36,731	)		(20,510	)		(20,060	)		(25,822	)		(6,638	)		(147	)		(109,908	)
Selling expenses		(25,752	)		(5,163	)		(9,471	)		(13,767	)		-			(638	)		(54,791	)
Other operating results, net		(7,616	)		(3,009	)		(7,874	)		385			134,061			(873	)		115,074
Profit / (Loss) from Operations		351,125			49,631			41,145			(7,344	)		129,231			(1,145	)		562,643
Share of profit / (loss) of associates and joint ventures		-			-			1,053			59			(37,978	)		43,899			7,033
Segment Profit / (Loss)		351,125			49,631			42,198			(7,285	)		91,253			42,754			569,676

Investment properties		2,065,616			893,376			599,607			-			687,453			8,378			4,254,430
Property, plant and equipment		14,186			30,444			3,737			187,203			199			-			235,769
Trading properties		1,484			120			169,163			-			76,504			-			247,271
Goodwill		343			5,481			-			-			-			-			5,824
Inventories		9,733			-			480			5,984			-			-			16,197
Investments in associates and joint ventures		-			-			41,912			21,315			581			1,057,878			1,121,686
Total segment assets		2,091,362			929,421			814,899			214,502			764,737			1,066,256			5,881,177

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

	December 31, 2011
	Shopping Center Properties			Offices			Sales and developments			Hotels			International			Financial operation and others			Total urban properties and investment (II)
Group revenues		671,666			119,822			65,672			85,034			-			3,229			945,423
Group costs		(327,804	)		(47,325	)		(36,925	)		(55,587	)		-			(2,518	)		(470,159	)
Gross Profit		343,862			72,497			28,747			29,447			-			711			475,264
Gain from disposal of investment properties		-			-			24,727			-			-			-			24,727
General and administrative expenses		(28,723	)		(16,401	)		(16,319	)		(18,105	)		(2,993	)		(104	)		(82,645	)
Selling expenses		(17,370	)		(4,364	)		(6,983	)		(11,224	)		-			2,208			(37,733	)
Other operating results, net		(1,011	)		(6,299	)		(1,715	)		(1,449	)		298			625			(9,551	)
Profit / (Loss) from Operations		296,758			45,433			28,457			(1,331	)		(2,695	)		3,440			370,062
Share of profit / (loss) of associates and joint ventures		(640	)		1			848			-			(39,897	)		54,046			14,358
Segment Profit / (Loss)		296,118			45,434			29,305			(1,331	)		(42,592	)		57,486			384,420

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

The following tables present a reconciliation between the total results of segment operations and the results of operations as per the statement of income. The adjustments relate to the presentation of the results of operations of joint ventures accounted for under the equity method under IFRS.

	December 31, 2012
	Total Segment Information			Adjustment for share of profit / (loss) of associates and joint ventures			Total Statement of Income
Group revenues		1,692,707			(81,516	)		1,611,191
Group costs		(1,494,830	)		66,702			(1,428,128	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		462,368			(2,939	)		459,429
Changes in net realizable value of agricultural produce after harvest		6,811			-			6,811
Gross Profit / (Loss)		667,056			(17,753	)		649,303
Gains from disposal of investment properties		53,678			-			53,678
Gains from disposal of farmlands		53,988			-			53,988
General and administrative expenses		(177,257	)		2,540			(174,717	)
Selling expenses		(130,311	)		6,632			(123,679	)
Management fees		(6,751	)		-			(6,751	)
Other operating results, net		104,594			508			105,102
Profit / (Loss) from Operations		564,997			(8,073	)		556,924
Share of profit of associates and joint ventures		7,350			5,196			12,546
Profit / (Loss) from Operations Before Financing and Taxation		572,347			(2,877	)		569,470

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

	December 31, 2011
	Total Segment Information			Adjustment for share of profit / (loss) of joint ventures			Total Statement of Income
Group revenues		1,488,975			(33,970	)		1,455,005
Group costs		(1,170,737	)		27,463			(1,143,274	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest		238,016			(1,200	)		236,816
Changes in net realizable value of agricultural produce after harvest		(11,260	)		(2	)		(11,262	)
Gross Profit / (Loss)		544,994			(7,709	)		537,285
Gain from disposal of investment properties		24,727			-			24,727
Gains from disposal of farmlands		27,762			-			27,762
General and administrative expenses		(146,128	)		1,677			(144,451	)
Selling expenses		(89,933	)		3,471			(86,462	)
Management fees		(4,612	)		-			(4,612	)
Other operating results, net		8,467			1,313			9,780
Profit / (Loss) from Operations		365,277			(1,248	)		364,029
Share of profit / (loss) of associates and joint ventures..		16,783			(6,717	)		10,066
Profit / (Loss) from Operations Before Financing and Taxation		382,060			(7,965	)		374,095

7.	Information about main subsidiaries

The Group conducts its business through several operating and holding subsidiaries which are listed in Note 1.3 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011. The Group considers that the subsidiaries below are the ones with non-controlling interests material to the Group.

Set out below is the summarized financial information for each subsidiary that has non-controlling interests that are material to the Group:

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7.	Information about principal subsidiaries (Continued)

Summarized statements of financial position

	APSA				IRSA (i)				Brasilagro
		12.31.12	06.30.12	07.01.11		12.31.12	06.30.12	07.01.11		12.31.12	06.30.12	07.01.11
Assets
Non-current assets		2,043,064	1,954,917	1,858,277		6,680,475	6,050,293	5,812,347		1,090,397	1,114,700	1,275,069
Current assets		778,389	548,949	521,078		1,208,407	839,328	819,565		664,468	490,721	660,824
Total assets		2,821,453	2,503,866	2,379,355		7,888,882	6,889,621	6,631,912		1,754,865	1,605,421	1,935,893
Liabilities
Non-current liabilities		1,011,673	973,319	909,950		3,208,496	2,644,108	2,372,540		133,579	147,799	163,475
Current liabilities		801,534	558,024	536,651		1,509,024	1,205,744	1,176,759		241,789	248,068	295,517
Total liabilities		1,813,207	1,531,343	1,446,601		4,717,520	3,849,852	3,549,299		375,368	395,867	458,992
Net assets		1,008,246	972,523	932,754		3,171,362	3,039,769	3,082,613		1,379,497	1,209,554	1,476,901

Summarized statements of income and statements of comprehensive income

	APSA						IRSA (i)						Brasilagro
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Revenue		818,302			702,595			1,086,041			912,919			218,101			151,734
Profit before income tax		274,045			297,101			315,963			132,868			32,556			34,987
Income tax expense		(98,289	)		(97,446	)		(70,084	)		(53,484	)		(7,168	)		(2,655	)
Profit / (loss) for the period		175,756			199,655			245,879			79,384			25,388			32,332
Other comprehensive income		-			-			10,818			8,881			94,151			135
Total other comprehensive income		175,756			199,655			256,697			88,265			119,539			32,467
Profit / (loss) attributable to non-controlling interest		8,890			6,594			22,409			(2,070	)		-			(154	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7.	Information about principal subsidiaries (Continued)

Summarized cash flows

	APSA						IRSA (i)						Brasilagro
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Cash flow from operating activities
Net cash generated from operating activities		313,770			289,287			373,445			332,535			(9,551	)		44,506
Cash flow from investing activities
Net cash generated from (used in) investing activities		(218,109	)		(20,630	)		(210,393	)		(51,709	)		(1,796	)		(61,604	)
Cash flow from financing activities
Net cash generated from (used in) financing activities		8,006			(193,454	)		(65,371	)		(270,372	)		(41,171	)		(91,458	)
Net increase / (decrease) in cash and cash equivalents		103,667			75,203			97,681			10,454			(52,518	)		(108,556	)
Cash and cash equivalents at beginning of period		102,698			145,552			259,169			301,559			151,064			357,018
Foreign exchange gain (loss) on cash and cash equivalents		2,555			(4,583	)		9,187			2,764			8,655			-
Cash and cash equivalents at end of period		208,920			216,172			366,037			314,777			107,201			248,462

(i)	Includes consolidated financial information of APSA.

The information above is the corresponding to balances and transactions before inter-company eliminations.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Interests in joint ventures

As of December 31, 2012 the joint ventures of the Group are Cresca, Canteras Natal Crespo S.A., Cyrsa S.A., Puerto Retiro S.A., Baicom Networks S.A., Quality Invest S.A., Nuevo Puerto Santa Fe S.A. (NPSF) and Entertainment Holdings S.A.. The shares in these joint ventures are not publicly traded.

As of June 30, 2012, the joint ventures of the Group were Canteras Natal Crespo S.A., Cyrsa S.A., Puerto Retiro S.A., Baicom Networks S.A., Quality Invest S.A. and NPSF.

As noted Note 4, APSA acquired shares of common stock, representing 50% of Entertainment Holdings S.A. (“EH”)´s capital stock and votes and as a consequence APSA holds a jointly indirect interest in LRSA of 25% which operates the fairground Predio Ferial de Buenos Aires.

In connection with the Fairground, as publicly known, in December 2012 the Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which approved the sale of the Fairground to the SRA; the effect of this new order was to revoke the sale transaction. Subsequent to December 21, 2012, the Executive Branch notified the SRA of said executive order and further ordered that the property be returned to the Federal Government within 30 subsequent days. Then, the SRA issued a press release publicly disclosing the initiation of legal actions.

Neither has APSA been served notice formally nor is it a party involved in the legal actions brought by the SRA.

As of the date of these unaudited condensed interim consolidated financial statements, the above mentioned legal matters resulted in certain delays in gathering the information necessary to register the acquisition pursuant to IFRS 3. Therefore, APSA has prudently decided to record its investment at cost. APSA expects to complete the fair value computation on net assets acquired during the fiscal year ended June 30, 2013.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Interests in joint ventures (Continued)

Changes in the Group’s investments in joint ventures for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		260,994			235,365
Acquisition of joint ventures		32,000			62,486
Capital contribution		15,573			14,461
Disposal of joint ventures		-			(19,448	)
Share of profit / (loss)		5,196			(31,586	)
Exchange differences		(13,056	)		(284	)
End of the period/year		300,707			260,994

9.	Interests in associates

As of June 30, 2012, the associates of the Group were New Lipstick LLC, Rigby 183 LLC, BHSA, Tarshop S.A., Manibil S.A., Lipstick Management LLC, Banco de Crédito and Securitización S.A. ("BACS"), and Bitania 26 S.A..

As of December 31, 2012, Rigby 183 LLC began to be reported on a consolidated basis and ceased to be an affiliate.

The evolution of the Group’s investments in associates for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period/year		1,239,566			1,203,490
Acquisition of associates		-			8,239
Capital contribution		6,787			-
Business combinations		(103,315	)		-
Share of profit		7,350			34,382
Exchange differences		20,841			(3,246	)
Dividend payments		(37,385	)		(3,299	)
End of the period / year	(*) 1,133,844				1,239,566

(*)	Includes a balance of Ps. (12,040) reflecting interests in companies with negative equity as of December 31, 2012 which is reclassified to “Accruals and Reserves” (see Note 22).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Investment properties

The evolution of the Group’s investment properties for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		3,463,941			3,553,647
Exchange differences		15,373			-
Acquisition of subsidiaries		679,219			-
Additions		89,442			110,611
Reclassifications of Property, plant and equipment		14,573			1,873
Disposals		(28,054	)		(58,324	)
Depreciation charge (a)		(96,801	)		(143,866	)
End of the period / year		4,137,693			3,463,941

(a)	Depreciation charges of investment properties were included in “Group Costs” in the Statement of Income (Note 28).

The following amounts have been recognized in the statement of income:

	December 31, 2012			December 31, 2011
Rental and service income		950,909			795,569
Direct operating expenses		(445,916	)		(373,671	)
Gain from disposal of investment properties		53,678			24,727

11.	Property, plant and equipment, net

The evolution of the Group’s property, plant and equipment for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		1,872,920			1,976,970
Exchange difference		75,829			(148,144	)
Additions		78,981			178,556
Reclassifications to property, plant and equipment and trading properties		(19,201	)		(1,873	)
Disposals		(124,381	)		(62,096	)
Depreciation charge (i)		(38,768	)		(70,493	)
End of the period/year		1,845,380			1,872,920

(i)	For the six-month period ended as of December 31, 2012 and 2011, depreciation charges of property, plant and equipment were included in “General and administrative expenses” and “Group Costs“ in the Statement of Income (Note 28).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

12.	Trading properties

The evolution of the Group’s trading property for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		181,001			186,462
Exchange differences		9,211			-
Additions		5,855			14,714
Reclassification of property, plant and equipment		4,678			-
Disposals		(4,237	)		(20,175	)
End of the period / year		196,508			181,001

13.	Intangible assets, net

The evolution of the Group’s intangible assets for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		75,077			80,457
Exchange differences		2,362			(2,195	)
Additions		46,568			4,095
Disposals		(119	)		(6,217	)
Amortization charge (i)		(2,806	)		(1,063	)
End of the period / year		121,082			75,077

(i)	Amortization charges are included in “General and administrative expenses” in the Statement of Income. (Note 28). There were no impairment charges for any of the periods presented.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Biological assets

The evolution of the Group’s biological assets for the six-month period ended as of December 31, 2012 and for the year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period/year		363,459			433,103
Increase due to purchases		7,458			18,467
Initial recognition and changes in fair value of biological assets		441,915			667,289
Decrease due to harvest		(223,322	)		(613,438	)
Decrease due to sales		(32,479	)		(128,172	)
Decrease due to consumes		(613	)		(1,624	)
Exchange differences		1,831			(12,166	)
End of the period/year		558,249			363,459

Biological assets as of December 31, 2012, June 30, 2012 and July 1, 2011 were as follows:

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Cattle for dairy production		25,592		25,894		22,269
Breeding cattle		145,484		146,169		171,638
Sugarcane		96,861		96,388		126,867
Others		9,588		9,757		5,090
Non-current biological assets		277,525		278,208		325,864
Current
Cattle for sale		40,395		36,116		44,619
Crops		239,014		48,209		62,109
Others		1,315		926		511
Current biological assets		280,724		85,251		107,239
Total biological assets		558,249		363,459		433,103

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.	Inventories

	December 31, 2012		June 30, 2012		July 1, 2011
Current
Crops		50,583		153,516		238,451
Materials and inputs		148,374		81,326		111,547
Seeds and fodder		7,989		13,577		8,315
Hotel supplies		5,984		2,654		3,789
Beef		2,962		-		5,898
Others		1,326		2,374		3,268
Current inventories		217,218		253,447		371,268
Total inventories		217,218		253,447		371,268

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Trade and other receivables, net

	December 31, 2012			June 30, 2012			July 1, 2011
Non-current
Leases and services receivable		66,602			54,548			27,498
Receivables from sale of agriculture products		2,781			-			3,519
Property sales receivable		33,470			41,587			16,785
Provision for impairment of trade receivables		(2,208	)		(2,208	)		(2,208	)
Non-current trade receivables		100,645			93,927			45,594
Prepayments		5,062			3,630			3,114
VAT receivables		57,596			54,065			82,290
Minimum Presumed Income tax ("MPIT")		177,589			156,892			123,854
Other tax receivables		61,189			51,059			1,067
Guarantee deposits (i)		-			54,843			55,975
Advances for the purchase of interest in associates		-			-			18,761
Others		4,299			135			7,964
Non-current other receivables		305,735			320,624			293,025
Related parties (Note 33)		52,363			39,510			22,022
Non-current trade and other receivables		458,743			454,061			360,641
Current
Consumer financing receivables		16,556			15,991			75,117
Leases and services receivable		214,002			183,796			118,870
Receivables from sale of agriculture products and farmlands leases		170,655			178,244			183,099
Receivables from hotel operations		27,340			14,106			9,954
Deferred checks received		168,430			136,118			103,631
Notes receivable		5,815			8,361			5,987
Debtors under legal proceedings		46,507			46,530			49,549
Property sales receivable (ii)		139,122			42,098			34,402
Less: provision for impairment of trade receivables		(73,577	)		(70,140	)		(119,600	)
Current trade receivables		714,850			555,104			461,009
Prepayments		69,547			58,906			64,923
VAT receivables		33,945			32,528			67,149
Gross sales tax credit		5,192			10,334			8,263
Income tax credit		14,470			28,604			75,890
Minimum Presumed Income tax ("MPIT")		68			158			226
Other tax receivables		31,697			13,305			-
Loans granted		7,951			6,164			-
Expenses and services to recover		4,874			8,610			-
Suppliers advances		66,617			107,236			24,720
Guarantee deposits		9			9,789			633
Dividends received		3,327			3,442			-
Others		18,998			23,949			16,763
Less: provision for impairment of other receivables		(293	)		(132	)		(92	)
Current other receivables		256,402			302,893			258,475
Related parties (Note 33)		50,172			30,067			36,058
Current trade and other receivables		1,021,424			888,064			755,542
Total trade and other receivables		1,480,167			1,342,125			1,116,183

(i)	Guarantee deposits relate to certain long-term loans incurred by Brasilagro.

(ii)	Property sales receivables primarily comprise trading properties and investment properties.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Trade and other receivables, net (Continued)

The evolution of the Group’s provision for impairment of trade receivables were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		(72,480	)		(121,900	)
Charge of the period		(12,479	)		(19,117	)
Unused amounts reversed		8,987			8,590
Used during the period/year		226			58,916
Receivables written off		183			1,031
Exchange differences		(515	)		-
End of the period / year		(76,078	)		(72,480	)

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 28). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

17.	Financial assets at fair value through profit or loss

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Investment in equity securities in TGLT (i)		50,167		65,131		68,657
Investment in equity securities in Hersha (ii)		356,208		432,771		355,942
Preferred shares of Supertel (iii)		137,165		117,488		-
Ordinary shares of Supertel		471		-		-
Other equity securities in public companies		148		375		362
Don Mario S.G.R.		10,060		10,000		-
Guarantee notes		7,626		-		-
Shares		1,013		918		1,191
Non-current portion		562,858		626,683		426,152
Current
Mutual funds (Note 33)		225,627		59,889		59,064
Investment in equity securities in Hersha (ii)		39,829		-		-
Don Mario S.G.R.		708		-		-
Corporate Notes – Related Parties		5,021		-		-
Other securities in public companies		21,340		11,675		2,924
Government bonds		-		505		477
Guarantee notes		46,972		-		-
Other investments		551		-		-
Current portion		340,048		72,069		62,465
Total financial assets at fair value through profit or loss		902,906		698,752		488,617

(i)

On November 4, 2010, the Group, through APSA, acquired 5,214,662 shares of common stock of TGLT S.A. (“TGLT”) following TGLT initial public offering in the Buenos Aires Stock Exchange for Ps. 47.1 million in cash. TGLT is a residential housing developer with operations in Argentina and Uruguay. Following the initial acquisition, at certain dates in December 2010 and January, April and August 2011, the Group acquired 42,810, 98,000, 876,474 and 262.927 additional TGLT shares for an aggregate of Ps. 56 million. As of June 30, 2012 and 2011, the Group’s interest in TGLT’s Group amounted to 9.25% and 8.87%, respectively.

(ii)	As of June 30, 2012 and July 1, 2011, the balances consists of the Group’s interest in Hersha amounted of 9.13 to 9.18%, respectively. Hersha is a Real Estate Investment Trust (REIT) listed in the NYSE, with interests in hotels throughout the United States of America.

(iii)

The balance represents the fair value of Supertel’s preferred shares, acquired in February 2012.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Derivative financial instruments

Group’s derivative financial instruments as of December 31, 2012, June 30, 2012 and July 1, 2011 were as follows:

	December 31, 2012		June 30, 2012		July 1, 2011
Assets
Non-current
Hersha call option (i)		-		-		60,442
Foreign-currency contracts		119		-		-
Supertel Warrants (ii)		20,192		18,434		-
Total non-current		20,311		18,434		60,442
Current
Commodities		31,963		1,080		9,878
Foreign-currency contracts		87		540		7,221
Swaps		-		958		1,867
Total current		32,050		2,578		18,966
Total assets		52,361		21,012		79,408

Liabilities
Non-current
Commodities		-		22,338		-
Foreign-currency contracts		111		521		-
Total non-current		111		22,859		-
Current
Commodities		128		59		7,055
Foreign-currency contracts		27,903		18,499		1,298
Total Current		28,031		18,558		8,353
Total liabilities		28,142		41,417		8,353

(i)

As of July 1, 2011, the balance represents a call option that matures on August 4, 2014 to purchase an additional 5.7 million shares of Hersha at an exercise price of US$ 3.00 per share. Also, if starting on August 4, 2011, the quoted market price of Hersha’s share will exceed US$ 5.00 per share during 20 consecutive trading sessions. Hersha may settle the call option by issuing and delivering a variable amount of shares to be determined in accordance with certain market values. The Group exercised the option in February, 2012 by issuing 2.5 million of ordinary shares (representing a participation of 1.7%).

(ii)	The balance represents the fair value of Supertel’s warrants, acquired in February 2012.

Additionally, the Group holds certain embedded derivative financial instruments related to borrowings. See Note 23 for further details.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

19.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of December 31, 2012, June 30, 2012 and July 1, 2011:

	December 31, 2012		June 30, 2012		July 1, 2011
Cash at bank and on hand		436,698		315,062		186,694
Short-term bank deposits		30,100		104,077		233,697
Mutual funds		57,361		52,783		274,161
Total cash and cash equivalents		524,159		471,922		694,552

Following is a detailed description of cash flows generated by the Group’s operations for the six-month periods ended as of December 31, 2012 and 2011.

	December 31, 2012			December 31, 2011
Profit for the period		176,718			23,321
Adjustments for:
Income tax expense		29,330			22,640
Depreciation and amortization		138,375			111,712
Gain from disposal of investment property		(53,678	)		(24,727	)
Gain from disposal of farmlands		(53,988	)		(27,762	)
Gain from disposal of property, plant and equipment		(231	)		(56	)
Release of investment property and property, plant and equipment		2,040			-
Dividends income		(9,812	)		(5,222	)
Share-based payments		4,822			3,212
(Gain) / Loss from derivative financial instruments (unrealized)		17,287			42,697
Changes in fair value of investments in financial assets		(52,925	)		24,579
Interest expense, net		197,371			174,238
Changes in fair value of biological assets and agricultural produce at the point of harvest (unrealized)		(421,320	)		(216,713	)
Changes in net realizable value of agricultural produce after harvest		(6,811	)		11,262
Provisions and allowances		66,369			24,414
Share of (profit) / loss of associates and joint ventures		(12,546	)		(10,066	)
Unrealized foreign exchange, net		199,458			140,980
Result from purchase of subsidiaries		(137,062	)		-
Changes in operating assets and liabilities
Decrease in biological assets		327,244			220,869
Increase in inventories		(2,230	)		(17,994	)
Increase in trading properties		(1,633	)		(22,044	)
(Increase) Decrease in trade and other receivables		(21,372	)		62,207
Increase in derivative financial instruments		(49,605	)		(27,825	)
Increase (decrease) in trade and other payables and provisions		191,288			(6,319	)
Decrease in payroll and social security liabilities		(25,342	)		(65,782	)
Net cash generated from operating activities before income tax paid		501,747			437,621

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

19.	Cash flow information (Continued)

The following table shows a detail of non-cash transactions occurred in the six-month periods ended as of December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011
Equity settled compensation		2,275			2,018
Reimbursement of expired dividends		1,001			-
Dividends payable		(118,638	)		-
Transferences of property, plant and equipment to investment properties		(9,199	)		-
Increase in trading properties through a decrease in property, plant and equipment and investment properties		4,727			-
Increase in trade and other receivables through a decrease in property, plant and equipment		183			51,761
Increase in trading properties through a decrease in property, plant and equipment		4,669			-
Increase in investments in financial assets through an increase in debt		18,767			-
Increase in property, plant and equipment through an increase in trade and other payables		-			8,462
Decrease in trading properties through an increase in trade and other payables		-			13,527
Increase in trade and other receivables through an increase in trade and other payables		-			4,795
Decrease in intangible assets through a decrease in trade and other payables		-			1,153
Decrease in trade and other receivables		-			8,671
Decrease in investments in associates and joint ventures		-			16,004
Decrease in trade and other payables		-			(24,675	)
Transfers of trade and other receivables to investments properties		-			3,628

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.	Trade and other payables

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Trade payables		-		4		47
Rent payments received in advanced		150,844		131,222		122,372
Guarantee deposits		5,718		7,236		3,876
Trade payables		156,562		138,462		126,295
Other tax payables		7,056		21,099		23,435
Deferred income		8,820		8,903		-
Shareholders´ personal tax payable		1,628		-		-
Tax amnesty plan for payable taxes		17,702		-		-
Others		250		315		5,976
Non-current other payables		35,456		30,317		29,411
Related parties (Note 33)		20		81		20
Non-current trade and other payables		192,038		168,860		155,726
Current
Trade and other payables		242,884		131,994		121,918
Accruals		99,096		99,468		115,626
Rent and services payments received in advance		241,506		55,290		203,769
Tenants deposits		14,297		-		-
Checks deferred granted		23,390		-		-
Current trade payables		621,173		286,752		441,313
Withholdings tax		1,621		11,866		17,826
Rent and service payments received in advance		539		21,941		16,004
Advances from customers		15,156		-		-
VAT payables		21,653		26,371		21,642
Gross sales tax payable		339		4,365		2,889
MPIT		11,765		9,851		7,636
Other tax payables		38,868		9,450		4,048
Tenant deposits		-		8,940		3,978
Guarantee deposits		1,971		-		-
Deferred revenue		978		135,364		1,075
Rent to be accrued		4,093		-		-
Dividends payable		125,645		34,724		5
Tax amnesty plan for payable taxes		310		5,002		3,343
Shareholders´ personal tax payable		5,690		-		4,276
Others		15,199		5,642		8,098
Current other payables		243,827		273,516		90,820
Related parties (Note 33)		92,354		36,274		56,178
Current trade and other payables		957,354		596,542		588,311
Total trade and other payables		1,149,392		765,402		744,037

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Payroll and social security liabilities

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Others		755		783		635
Non-current payroll and social security liabilities		755		783		635
Current
Provision for vacation and bonuses		53,575		86,243		65,285
Social security payable		21,702		13,346		12,763
Salaries payable		2,200		2,869		1,367
Others		1,900		1,461		1,670
Current payroll and social security liabilities		79,377		103,919		81,085
Total payroll and social security liabilities		80,132		104,702		81,720

22.	Provisions

The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:

	Labor, legal			Tax and social security			Investments in subsidiaries		Others			Total
At July 1, 2011		19,591			670			-		393			20,654
Additions		13,790			1,697			-		90			15,577
Used during period		(9,283	)		(797	)		-		(126	)		(10,206	)
Exchange difference		463			-			-		-			463
At June 30, 2012		24,561			1,570			-		357			26,488
Additions		11,430			-			12,040		5,446			28,916
Used during period		(3,600	)		(198	)		-		(130	)		(3,928	)
Exchange difference		326			-			-		-			326
At December 31, 2012		32,717			1,372			12,040		5,673			51,802

The analysis of total provisions is as follows:

	December 31, 2012		June 30, 2012		July 1, 2011
Non-Current		37,980		22,553		14,939
Current		13,822		3,935		5,715
		51,802		26,488		20,654

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.	Borrowings

									Book value
	Secured/ unsecured	Currency	Fixed/ floating	Effective interest rate %			Nominal value (in millions)		December 31, 2012		June 30, 2012		July 1, 2011
Non-Current
CRESUD NCN Class IV due 2013	Unsecured	US$	Fixed		7.75	%		17.8		-		-		18,314
CRESUD NCN Class V due 2013	Unsecured	Ps.	Floating	Badlar + 375 Basic Points				106.9		-		-		70,927
CRESUD NCN Class VI due 2013	Unsecured	US$	Fixed		7.5	%		34.8		-		-		99,286
CRESUD NCN Class VII due 2013	Unsecured	US$	Floating	Premium				2.1		-		-		8,209
Embedded derivative on Cresud Class VII										-		-		203
CRESUD NCN Class VIII due 2014	Unsecured	US$	Fixed		0.075	%		60		293,971		269,922		-
CRESUD NCN Class IX due 2014 (i)	Unsecured	Ps.	Floating	Badlar + 300 Basic Points				161		-		100,606		-
CRESUD NCN Class X due 2014 (ii)	Unsecured	US$	Fixed		7.75	%		31.5		100,943		138,474		-
CRESUD NCN Class X – 2nd Tranche due 2014	Unsecured	US$	Fixed		7.75	%		30		98,779		-		-
CRESUD NCN Class XI due 2015 (iii)	Unsecured	Ps.	Floating	Badlar + 375 Basic Points				80.5		59,011		58,908		-
IRSA NCN Class I due 2017	Unsecured	US$	Fixed		8.80	%		150		717,471		665,257		599,565
IRSA NCN Class II due 2020	Unsecured	US$	Fixed		11.50	%		150		-		661,077		598,116
IRSA NCN Class III due 2020	Unsecured	Ps.	Floating	Badlar + 249 Basic Points				150		710,101		51,032		-
IRSA NCN Class IV due 2014	Unsecured	US$	Fixed		7.45	%		34		41,587		114,665		-
APSA CN due 2014	Unsecured	US$	Fixed		10	%		50		35		38		4,640
APSA NCN Class I due 2017	Unsecured	US$	Fixed		8.00	%		120		515,132		471,750		421,498
Syndicated loan	Unsecured	Ps.	Fixed		15.01	%		118		103,531		-		-
Banco M&T loan	Secured	US$	Floating	Libor + 3.25%				75		376,378		-		-
Long term loans	Unsecured	US$	Floating	Libor + 300 Basic Points or 6% (the biggest)				11		74,685		58,683		27,525
Long term loans	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days				20		19,774		-		-
Long term loans	Unsecured	Ps.	Fixed		15.01	%		24		15,779		-		-
Long term loans	Secured	Rs.	Floating	TJLP + 1.95 to 3.10 and 5.5 to 10				20.5		20,491		29,617		40,645
Long term loans	Secured	Rs.	Fixed		7.23	%		98.7		98,737		85,235		105,297
Other long term loans										31,351		-		-
Finance lease obligations	Secured	US$	Fixed		7.50	%		-		92		-		-
Seller financing	Unsecured	US$	Fixed		11.69	%		258		1,272		1,530		-
Seller financing	Secured	US$	Fixed	3.50 % and 5 %				17.9		69,985		62,765		62,019
Finance lease obligations	Secured	US$	Fixed		7.75	%		8,678		236		528		-
Related parties										5		-		-
Non-current borrowings										3,349,346		2,770,087		2,056,244

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.	Borrowings (Continued)

									Book value
	Secured/ unsecured	Currency	Fixed/ floating	Effective interest rate %			Nominal value (in millions)		December 31, 2012			June 30, 2012			July 1, 2011
Current
CRESUD NCN Class III due 2012	Unsecured	Ps.	Floating	Badlar + 400 Basic Points				35.6		-			-			36,314
CRESUD NCN Class IV due 2013	Unsecured	US$	Fixed		7.75	%		17.8		-			18,958			55,503
CRESUD NCN Class V due 2013	Unsecured	Ps.	Floating	Badlar + 375 Basic Points				106.9		-			70,564			36,177
CRESUD NCN Class VI due 2013	Unsecured	US$	Fixed		7.5	%		34.8		39,822			109,150			33,427
CRESUD NCN Class VII due 2014	Unsecured	US$	Floating	4 % + Premium Factor				2.1		10,198			9,260			21
Embedded derivative on Cresud Class VII										70			64			-
CRESUD ON Class VIII due 2014	Unsecured	US$	Fixed		7.5	%		60		5,470			4,966			-
CRESUD ON Class IX due 2014 (v)	Unsecured	Ps.	Floating	Badlar + 300 Basic Points				161		151,372			49,756			-
CRESUD ON Class X due 2014(vi)	Unsecured	US$	Fixed		7.75	%		31.5		49,818			(375	)		-
CRESUD NCN Class X – 2nd Tranche due 2014	Unsecured	US$	Fixed		7.75	%		30		51,227			-			-
CRESUD ON Class XI due 2015 (vii)	Unsecured	Ps.	Floating	Badlar + 375 Basic Points				80.5		(118	)		(267	)		-
IRSA NCN Class I due 2017	Unsecured	US$	Fixed		8.80			150		25,252			23,175			20,960
IRSA NCN Class II due 2020	Unsecured	US$	Fixed		11.50			150		37,000			34,004			30,800
IRSA NCN Class III due 2013	Unsecured	Ps.	Floating	Badlar + 249 Basic Points				153		156,319			102,888			-
IRSA ON Class IV due 2014	Unsecured	US$	Fixed		7.45	%		33.8		125,556			38,278			-
APSA NCN due 2014	Unsecured	US$	Fixed		10.00	%		50		2			1			3
APSA NCN Class I due 2017	Unsecured	US$	Fixed		8.00	%		120		3,818			4,554			4,490
APSA NCN Class II due 2012	Unsecured	Ps.	Fixed		11	%				-			-			28,879
Bank overdrafts	Unsecured	Ps.	Fixed		11	%				-			133,064			684,083
Bank overdrafts	Unsecured	US$	Fixed		15.85	%				-			92,786			3,605
Short term loans	Unsecured	Ps.	Floating	Priv. Banks + 400 Basic Points				2		-			43,489			26,093
Short term loans	Unsecured	US$	Fixed		3.75	%		26.14		-			119,716			241,301
Short term loans	Unsecured	US$	Floating	Libor + 300 Basic Points or 6% (the biggest)				15		1,619			90,393			-
Short term loans	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days				20		831			-			-
Short term loans	Unsecured	Ps.	Floating		3.10	%		64.2		51,840			65,903			58,571
Short term loans	Unsecured	Rs.	Fixed		7.23	%				14,278
Short term loans	Secured	US$	Fixed							-			2,779			-
Short term loans	Unsecured	Ps.	Fixed		15.01	%		24		8,031
Short term loans	Secured	Rs.	Fixed		7.23	%		11.9		-			24,496			8,048
Short term loans	Secured	Rs.	Floating		-			5.8		-			6,034			-
Short term loans	Secured	Rs.	Floating	5.5 to 10 TJLP + 1.95 to 3.10						5,758			-			-
Other short term loans										120,267			-			-
Seller financing	Unsecured	US$	Fixed		11	%				-			18,743			8,900
Seller financing	Secured	US$	Fixed		3.5	%		18		11,738			32,122			51,197
Seller financing	Unsecured	Rs.	Floating	IGPM/CDI				102.0		101,995			91,487			151,431
Other seller - financed debt								9.9		13,339			-			-
Bank overdrafts	Unsecured	Ps.	Fixed					358.4		358,403			-			-
Finance lease obligations	Secured	US$	Fixed		7.5	%		0.7		777			1,094			-
Related parties								67.4		70,156			-			-
Current borrowings										1,414,838			1,187,082			1,479,803
Total borrowings										4,764,184			3,957,169			3,536,047

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

24.

Taxation

The details of the provision for the Group’s income tax are as follows:

	December 31, 2012			December 31, 2011
Current income tax		(115,044	)		(113,599	)
Deferred income tax		85,714			91,192
Minimum Presumed Income Tax ("MPIT")		-			(233	)
Income tax expense		(29,330	)		(22,640	)

The gross movement on the deferred income tax account is as follows:

	December 31, 2012			June 30, 2012
Beginning of the period/year		(549,337	)		(746,027	)
Exchange differences		13,850			63,582
Acquisition of subsidiaries		(26,103	)		-
Charged / (Credited) to the statement of income		85,714			133,108
End of the period/year		(475,876	)		(549,337	)

The Group did not recognize deferred income tax assets of Ps. 41.3 million and Ps. 48.9 million as of December 31, 2012 and June 30, 2012, respectively. Although management believes that it will become profitable in the foreseeable future, as a result of the history of recent losses incurred during the development phase of the different Group’s business operations and the lack of verifiable and objective evidence due to the limited operating history of the Group itself, the Board of Directors has determined that there is sufficient uncertainty as to the generation of sufficient income to utilize the losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

24.	Current and deferred income tax (Continued)

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:

	December 31, 2012			December 31, 2011
Tax calculated at the tax rates applicable to profits in the respective countries		63,550			7,329
Non-deductible items:
Share of loss of associates and joint ventures		(8,834	)		(15,916	)
Unrecognized tax losses		(18,904	)		3,995
Non-taxable income		(7,322	)		28,801
Non-deductible items		3,454			3,714
Difference between the tax return and provision		(6,332	)		(4,904	)
Others		3,718			(379	)
Income tax expense		29,330			22,640

25.

Dividends

Cash dividends in respect of the year ended as of June 30, 2012 amounted to Ps. 120 million, have been approved at the annual general ordinary and extraordinary shareholders’ meeting on October 31, 2012.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

26.

Revenues

	December 31, 2012								December 31, 2011
	Urban properties and investments		Agricultural		Agroindustrial		Total		Urban properties and investments		Agricultural		Agroindustrial		Total
Trading property		16,555		-		-		16,555		39,559		-		-		39,559
Crops		-		242,977		-		242,977		-		252,995		-		252,995
Cattle		-		34,578		1,056		35,634		-		54,343		3,015		57,358
Dairy		-		16,535		-		16,535		-		14,684		-		14,684
Sugarcane		-		110,028		-		110,028		-		87,319		-		87,319
Beef		-		-		64,594		64,594		-		-		92,750		92,750
Supplies		-		25,458		-		25,458		-		14,070		-		14,070
Agriculture products and services income		16,555		429,576		65,650		511,781		39,559		423,411		95,765		558,735
Base rent		385,444		9,885		-		395,329		307,483		9,807		-		317,290
Contingent rent		143,077		-		-		143,077		121,715		-		-		121,715
Admission rights		51,433		-		-		51,433		41,854		-		-		41,854
Parking fees		30,792		-		-		30,792		21,717		-		-		21,717
Commissions		13,053		-		-		13,053		19,624		-		-		19,624
Property management fee		16,317		-		-		16,317		7,891		-		-		7,891
Expenses and Collective Promotion Funds		299,688		-		-		299,688		253,798		-		-		253,798
Flattening of tiered lease payments		9,344		-		-		9,344		9,236		-		-		9,236
Others		1,789		-		-		1,789		1,393		-		-		1,393
Agricultural services		-		2,187		1,545		3,732		-		1,051		1,248		2,299
Advertising and brokerage fees		-		13,868		-		13,868		-		10,442		-		10,442
Rental and service income		950,937		25,940		1,545		978,422		784,711		21,300		1,248		807,259
Other revenue:										-		-		-		-
Consumer financing		1,318		-		-		1,318		3,229		-		-		3,229
Hotel operations		116,807		-		-		116,807		85,035		-		-		85,035
Others		4		2,843		16		2,863		-		747		-		747
Total group revenue		1,085,621		458,359		67,211		1,611,191		912,534		445,458		97,013		1,455,005

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27.

Costs

	December 31, 2012								December 31, 2011
	Urban properties and investments		Agricultural		Agroindustrial		Total		Urban properties and investments		Agricultural		Agroindustrial		Total
Cost of rental and services		-		2,378		-		2,378		-		241		-		241
Other operative costs		-		3,067		-		3,067		-		2,794		-		2,794
Cost of property operations		-		5,445		-		5,445		-		3,035		-		3,035
Crops		-		461,331		-		461,331		-		382,373		-		382,373
Cattle		-		60,807		3,000		63,807		-		73,230		3,164		76,394
Dairy		-		34,072		-		34,072		-		27,823		-		27,823
Sugarcane		-		214,645		-		214,645		-		88,222		-		88,222
Beef		-		-		64,905		64,905		-		-		89,457		89,457
Supplies		-		21,994		-		21,994		-		12,152		-		12,152
Agriculture services		-		1,394		2,079		3,473		-		612		8,487		9,099
Brokerage costs		-		12,806		-		12,806		-		8,808		-		8,808
Cost of agricultural sales and services		-		807,049		69,984		877,033		-		593,220		101,108		694,328
Cost of sale of trading properties		7,477		-		-		7,477		14,988		-		-		14,988
Cost from hotel operations		84,553		-		-		84,553		55,441		-		-		55,441
Cost of rental and services		453,142		-		-		453,142		372,963		-		-		372,963
Other costs		478		-		-		478		2,519		-		-		2,519
Total group costs		545,650		812,494		69,984		1,428,128		445,911		596,255		101,108		1,143,274

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

28.	Expenses by nature

For the six-month period ended as of December 31, 2012:

	Group costs
	Cost of property operations		Cost of agricultural sales and services		Cost of agriculture production		Cost of sale of trading properties		Cost from Consumer Financing		Cost from hotel operations		Other costs		General and administrative expenses		Selling expenses		Total
Leases, services charges and vacant property costs		22,342		618		502		919		-		134		68		2,105		510		27,198
Depreciation and amortization		97,548		26,091		2,393		316		-		7,471		1,797		5,735		131		141,482
Provision for impairment of receivables		-		-		-		-		-		-		-		-		4,410		4,410
Advertising, publicity and other selling expenses		71,813		1,242		64		-		-		2,452		2		94		17,499		93,166
Taxes, rates and contributions		29,543		1,950		2,885		605		-		-		241		3,571		36,144		74,939
Maintenance and repairs		103,447		2,900		9,966		1,192		29		10,978		692		7,236		35,769		172,209
Fees and payments for services		11,305		61		1,423		86		441		779		68		28,662		2,072		44,897
Director´s fees		171		-		-		-		-		-		-		48,133		-		48,304
Salaries and social security expenses		112,337		27,092		15,981		284		3		46,365		1,947		62,836		10,559		277,404
Cost of sale of properties		-		-		-		4,055		-		-		-		-		-		4,055
Food, beverage and lodging expenses		-		-		-		-		-		16,046		-		1,443		391		17,880
Changes in biological assets and agricultural produce		-		346,697		-		-		-		-		-		-		-		346,697
Supplies and labor		-		71,838		360,890		-		-		-		908		-		-		433,636
Others		4,636		1,513		2,311		20		4		328		339		14,902		16,194		40,247
Total expenses by nature		453,142		480,002		396,415		7,477		477		84,553		6,062		174,717		123,679		1,726,524

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

28.	Expenses by nature (Continued)

For the six-month period ended as of December 31, 2011:

	Group costs
	Cost of property operations		Cost of agricultural sales and services		Cost of agriculture production		Cost of sale of trading properties		Cost from Consumer Financing		Cost from hotel operations		Other costs		General and administrative expenses		Selling expenses			Total
Leases, services charges and vacant property costs		22,233		340		914		1,078		-		133		97		995		504			26,294
Depreciation and amortization		80,355		1,012		18,922		-		4		5,115		1,207		3,893		63			110,571
Provision for impairment of receivables.		-		-		-		-		-		-		-		-		(317	)		(317	)
Advertising, publicity and other selling expenses		65,758		921		248		-		-		1,443		1		1,032		8,321			77,724
Taxes, rates and contributions		20,598		580		1,676		580		-		-		11		2,914		30,584			56,943
Maintenance and repairs		83,072		2,483		10,372		900		216		9,297		90		6,037		29,506			141,973
Fees and payments for services		9,612		314		1,373		313		2,266		1,737		203		22,258		2,091			40,167
Director´s fees		-		-		-		-		-		-		-		34,521		-			34,521
Salaries and social security expenses		87,083		18,220		19,032		43		14		27,971		1,491		58,038		8,663			220,555
Cost of sale of properties		-		-		-		12,073		-		-		-		-		-			12,073
Food, beverage and lodging expenses		-		-		-		-		-		9,480		-		1,523		221			11,224
Changes in biological assets and agricultural produce		-		328,387				-		-		-		-		-		-			328,387
Supplies and labor		-		84,026		201,033		-		-		-		220		41		75			285,395
Others		4,251		1,099		2,765		1		17		265		329		13,199		6,751			28,677
Total expenses by nature		372,962		437,382		256,335		14,988		2,517		55,441		3,649		144,451		86,462			1,374,187

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Employee costs

	December 31, 2012		December 31, 2011
Salaries, bonuses and social security costs		267,226		196,189
Vacation expense		363		-
Stock options		1,313		16,299
Shared-based payments		4,037		3,199
Pension costs – defined contribution plan		274		307
Other benefits and expenses		4,191		4,561
		277,404		220,555

30.	Other operating expenses, net

	December 31, 2012			December 31, 2011
Gain from purchase of subsidiaries		137,062			-
Gain from commodity derivative financial instruments		788			24,721
Gain from disposal of other property items		231			56
Recovery of allowances		3,294			-
Tax on personal assets		(9,281	)		(6,898	)
Management fee		1,010			487
Contingencies		(16,244	)		(6,831	)
Donations		(4,209	)		(5,485	)
Project analysis and assessment		(4,940	)		(57	)
Unrecoverable VAT		(160	)		(91	)
Loss or recoverable value impairment		-			(46	)
Others		(2,449	)		3,924
Total other operating (expenses) income, net		105,102			9,780

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

31.	Financial results, net

	December 31, 2012			December 31, 2011
Finance income:
- Interest income		18,012			25,889
- Foreign exchange gains		57,872			29,433
- Dividends income		9,812			5,222
- Gain from derivative financial instruments (except commodities)		19,821			955
- Fair value gain on embedded derivatives		-			4
- Fair value gains of financial assets at fair value through profit or loss		79,093			24,829
- Others		(546	)		48
Finance income		184,064			86,380

Finance costs:
- Interest expense		(215,383	)		(202,409	)
- Foreign exchange losses		(250,324	)		(126,211	)
- Fair value losses on embedded derivatives relating to borrowings		(6	)		-
- Fair value losses of financial assets at fair value through profit or loss		(19,291	)		(43,455	)
- Loss from derivative financial instruments (except commodities)		(20,842	)		(15,679	)
- Other financial costs		(41,640	)		(26,760	)
Finance costs		(547,486	)		(414,514	)
Total financial results, net		(363,422	)		(328,134	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

32.	Shared-based payments

Established by the Company and subsidiaries

Equity Incentive Plan

The Group incurred in a charge of Ps. 4 million and Ps. 3.2 million for the six-month period ended December 31, 2012 and 2011, respectively, related to the awards granted under the Equity Incentive Plan.

Movements in the number of equity-settled options outstanding under the Equity Incentive Plan were detailed as follows:

	December 31, 2012		June 30, 2012
A the beginning (1)		1,671,667		-
Granted		272,600		1,671,667
Exercised		-		-
Expired		-		-
At the end		1,944,267		1,671,667

(1) It is no defined the number of shares for the plan for the year 2011/2012, yet.

Established only by subsidiary undertakings

Brasilagro Stock Option Plan

For the six-month period ended December 31, 2012, the Group incurred in a charge of Ps. 0.5 million and Ps. 0.7 million, respectively, related to the awards granted under the Brasilagro Stock Option Plan.

Movements in the number of equity-settled options outstanding under the Brasilagro Stock Option Plan were as follows:

	December 31, 2012		June 30, 2012
At the beginning		370,007		370,007
Granted		-		-
Exercised		-		-
Expired		-		-
At the end		370,007		370,007

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Related party transactions

The following is a summary of the balances with related parties as of December 31, 2012:

Related party	Reference	Description of transaction	Investments in Current financial assets	Trade and other receivables, Non-Current	Trade and other receivables, Current	Trade and other payables Non-current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Consultores Asset Management S.A. (CAMSA)	(1)	Reimbursement of expenses	-	-	2,499	-	(49)	-	-
Consultores Asset Management S.A. (CAMSA)		Management fees	-	-	-	-	(5,071)	-	-
Estudio Zang, Bergel & Viñes	(2)	Legal services	-	-	-	-	(509)	-	-
		Advances	-	-	218	-	-	-	-
		Advances	-	-	57	-	-	-	-
		Reimbursement of expenses	-	-	-	-	(5)	-	-
		Legal fees	-	-	68	-	(1,060)	-	-
Fundación IRSA	(3)	Reimbursement of expenses	-	-	40	-	(4)	-	-
		Donations	-	-	-	-	(1,073)	-	-
Museo de los Niños	(4)	Reimbursement of expenses	-	-	643	-	(23)	-	-
		Loans	-	-	700	-	-	-	-
Agro-Uranga S.A.	(5)	Dividends receivable	-	-	701	-	-		-
		Others	-	-	-	-	20	-	-
		Sales of inventories	-	-	1,414	-	-	-	-
Directors		Reimbursement of expenses	-	-	236	-	-	-	-
		Advances	-	-	555	-	-	-	-
		Fees	-	-	686	-	(39,037)	-	-
		CN APSA due 2014	-	-	-	-	-	(5)	-
		Guarantee deposits	-	-	-	(20)	-	-	-
		Others	-	-	-	-	(26)	-	-
Inversiones Financieras del Sur S.A.	(6)	Reimbursement of expenses	-	-	-	-	(3)	-	-
		Loans	-	-	30,944	-	(44,474)	-	-
Banco Hipotecario S.A.	(7)	Reimbursement of expenses	-	-	306	-	(81)	-	-
		Loans	-	-	10	-	-	-	-
		Others	-	-	-	-	(115)	-	-
Cyrsa S.A.	(8)	Reimbursement of expenses	-	-	1,801	-	(312)	-	-
		Loans	-	-	-	-	-	-	(70,156)
Cresca S.A.	(13)	Loans granted	-	43,352	-	-	-	-	-
		Fees	-	-	1,091	-	-	-	-
		Reimbursement of expenses	-	-	40	-	(100)	-	-
		Interests	-	8,053	-	-	-	-	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Related party transactions (Continued)

Related party	Reference	Description of transaction	Investments in Current financial assets	Trade and other receivables, Non-Current	Trade and other receivables, Current	Trade and other payables Non-current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Tarshop S.A.	(5)	Reimbursement of expenses	-	-	1,662	-	(21)	-	-
		Leases	-	-	8	-	-	-	-
Quality Invest S.A.	(9)	Reimbursement of expenses	-	-	-	-	(48)	-	-
		Loans	-	-	10	-	-	-	-
New Lipstick LLC	(5)	Reimbursement of expenses	-	-	1,385	-	-	-	-
		Capital contribution	-	-	-	-	(5)	-	-
Lipstick Management LLC	(5)	Reimbursement of expenses	-	-	462	-	-	-	-
IRSA Developments LP	(5)	Reimbursement of expenses	-	-	9	-	-	-	-
Elsztain Managing Partners Ltd.	(11)	Management fees	-	-	-	-	(37)	-	-
Agro Managers S.A.	(5)	Others	-	-	70	-	-	-	-
Nuevo Puerto Santa Fe S.A.	(10)	Reimbursement of expenses	-	-	740	-	(321)	-	-
		Management fee	-	-	24	-	-	-	-
Canteras Natal Crespo S.A.	(10)	Management fee	-	-	164	-		-	-
		Constributions to be paid in	-	-	4	-	-	-	-
		Loans	-	-	93	-	-	-	-
		Reimbursement of expenses	-	-	839	-	-	-	-
Baicom Networks S.A.	(10)	Reimbursement of expenses	-	-	12	-	-	-	-
		Management fee	-	-	2	-	-	-	-
		Constributions to be paid in	-	-	131	-	-	-	-
		Loans	-	958	-	-	-	-	-
Puerto Retiro S.A.	(10)	Reimbursement of expenses	-	-	154	-	-	-	-
		Loans	-	-	2,394	-	-	-	-
Dolphin Fund PLC	(12)		138,156	-	-	-	-	-	-
Total			138,156	52,363	50,172	(20)	(92,354)	(5)	(70,156)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the six-month period ended as of December 31, 2012:

Related party	Reference	Leases	Fees	Sale of goods and services	Income/expenses of shared services	Interest income / (expenses)	Administrative / legal services	Donations	Others
Consultores Asset Management S.A. (CAMSA)	(1)	80	(6,751)	-	-	-	-	-	-
Estudio Zang, Bergel & Viñes	(2)	(360)	-	-	-	-	(7,169)	-	-
Fundación IRSA	(3)	-	-	-	-	-	-	(1,420)	-
Agro-Uranga S.A.	(5)	-	-	2,652	-	-	-	-	-
Directors		-	(42,439)	-	-	-	-	-	-
Inversiones Financieras del Sur S.A.	(6)	-	-	-	-	1,768	-	-	-
Cyrsa S.A.	(8)	-	-	-	-	(2,792)	-	-	-
Tarshop S.A.	(5)	2,730	-	-	153	(189)	-	-	-
Cresca S.A.	(13)	-	631	-	-	2,201	-	-	-
Quality Invest S.A.	(9)	-	-	-	-	10	-	-	108
Baicom Networks S.A.	(10)	-	6	-	-	47	-	-	-
Puerto Retiro S.A.	(10)	-	-	-	-	189	-	-	-
Canteras Natal Crespo S.A.	(10)	-	-	-	48	5	-	-	-
Total		2,450	(48,553)	2,652	201	1,239	(7,169)	(1,420)	108

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33. Related party transactions (Continued)

The following is a summary of the transactions with related parties for the six-month period ended as of December 31, 2011:

Related party	Reference	Leases	Fees	Income/expenses of shared services	Rent Expenses	Administrative / legal services	Interest income / (expenses)	Others
Consultores Asset Management S.A. (CAMSA)	(1)	59	(4,612)	-	-	-	-	-
Estudio Zang, Bergel & Viñes	(2)	-	(105)	-	-	-	-	-
Fundación IRSA	(3)	-	-	-	-	-	-	(1,640)
Agro-Uranga S.A.	(5)	-	-	-	-	-	-	2,059
Directors	-	-	8,022	-	-	-	-	-
Inversiones Financieras del Sur S.A.	(6)	-	-	-	-	-	542	-
Cyrsa S.A.	(8)	2	-	-	-	-	-	-
Tarshop S.A.	(5)	2,476	-	260	-	-	-	-
Cresca S.A.	(13)	-	-	-	-	244	1	-
Canteras Natal Crespo S.A.	(10)	-	-	24	-	-	2	-
Total		2,537	3,305	284	-	244	545	419

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Related party transactions (Continued)

(1)

The shareholders of CAMSA are Eduardo S. Elsztain, Group’s shareholder and Chairman of the Board, and Saúl Zang, Vice-Chairman of the Board. CAMSA is an advisory and consulting firm which provides advisory services to the Group. Under the agreement dated November 1994, CAMSA provides the Group with services such as (i) advisory with respect to capital investments in all aspects of agricultural operations, including, among others, sales, marketing, distribution, financing, investments, technology and business proposals; (ii) acts on the Group’s behalf in such transactions, negotiating the prices, conditions, and other terms of each operation; and (iii) advisory regarding securities investments with respect to such operations. The agreement expressly provides that CAMSA may not provide advisory services with respect to transactions that are entirely related to real estate. The Group pays CAMSA an annual fee equal to 10% of the Group’s annual net income after taxes. Under the agreement, the Group is required to reimburse CAMSA normal expenses incurred in performing the services. The agreement is subject to termination by either party upon not less than 60 days prior written notice. If the Group terminates the agreement without cause, the Group must pay CAMSA twice the average of the amounts of the management fee paid for the two preceding fiscal years.

(2)	The Group contracts legal services from Estudio Zang, Bergel & Viñes. One of the partners of the law firm, Saúl Zang is First Vice-Chairman of the Company.

(3)

Fundación IRSA is a charitable, non-profit organization whose Chairman is Eduardo S. Elsztain and whose Secretary, is Mariana Carmona de Elsztain, Mr. Elsztain’s wife. Eduardo S. Elsztain is the Company´s Chairman and also Chairman of IRSA. The Group makes donations to Fundación IRSA in the ordinary course of business as practicable.

(4)

Fundación Museo de los Niños is a charitable non-profit organization created by the same founders of Fundación IRSA and has the same members of the administration committee as Fundación IRSA. Fundación Museo de los Niños acts as special vehicle for the developments of “Museo de los Niños Abasto” and “Museo de los Niños Rosario”, which are interactive learning centers for both children and adults.

(5)	Group’s associate.

(6)	Mr. Eduardo Elsztain is the president of (i) IFIS Limited (IFIS), a company incorporated under the laws of Bermuda and (ii) IFISA, a company incorporated under the laws of Uruguay, which is 100% owned by IFIS. Mr. Elsztain is the beneficial owner of 30.90% of IFIS capital stock.

The Company entered into a securities loan agreement with IFISA, which granted 4,053,942 Global Depositary Shares, representing 10 ordinary shares with a face value of Ps. 1 per share of IRSA. This loan does not imply the transfer of any politic nor economic right corresponding to the values, which will be held by Cresud. Regarding voting rights, the parties agreed that the Company will grant a power of attorney to IFISA with the respective voting instructions. In respect to dividends, IFISA will transfer the funds to Cresud. The loan accrues interest at a monthly rate equivalent to 3 month LIBOR, plus 150 basis points, and is payable in June 30, 2013.

In addition, on June 18, 2013, the Company entered into a credit facility agreement with IFISA for up to US$ 6 million. The facility accrues interest at an annual rate of 7.75% and is due on November 24, 2012. The parties agree to extend the credit facility term until November 24, 2013 at an annual interest rate of 5.5%.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Related party transactions (Continued)

(7)	The Group’s subsidiary, IRSA, holds an equity interest of 30.51% in BHSA. In the ordinary course of business, IRSA may acquire additional shares of BHSA held by the public or shareholders of the Group such as IFISA.

(8)	Cyrsa S.A. (“Cyrsa”) is a joint venture between IRSA and Cyrela Brazil Realty S.A. Empreendimentos e Participaçoes, a Brazilian corporation, engaged in developing a residential apartment complex known as "Horizons" in the Northern part of Greater Buenos Aires.

(9)

Quality Invest S.A. is a joint venture between the Company and Efesul S.A. (“Efesul”). The Company’s principal asset is the industrial plant owned by Nobleza Piccardo SAIC ("Nobleza"), a major tobacco company in Argentina. The industrial plant is located in San Martin, Province of Buenos Aires, and is suitable for redevelopment into multiple uses.

(10)	Group’s joint venture.

(11)	A company whose directors are shareholders of Cresud.

(12)

Since 1996 the Group has been investing Dolphin Fund PLC, a mutual fund related to the Group’s President. The investment is booked as financial assets at fair value through profit or loss. As of December 31, 2012 the Group’s investments in participating units of Dolphin Fund PLC amounts to Ps. 138.2 million.

(13)

Cresca S.A. (“Cresca”) is a joint venture between the Company and Carlos Casado S.A. (“Casado”) with agriculture operations in Paraguay. The Company provides agricultural advisory services to Cresca under a 10-year agreement, automatically renewal for two additional 10-year periods, and receives management fees as follows: by way of consideration, Cresca must paid to the Group: (a) (i) an amount equal to 12% per annum on the total amount to be paid annually by Cresca for preparing the lands (from natural to productive state) in purpose of agricultural development for the first 41,930 has. and (ii) an amount equal to 10% on the concepts mentioned above from the ha. 41,931 on; and (b) an amount equal to 10% per annum on the gross margin from sales revenue less (i) direct selling expenses (including but not limited to commissions, withholding taxes, freight and any other expense arising for or from sales), (ii) direct production costs, (iii) structure costs and (iv) tax costs. In addition, Cresca entered into an agreement with the Group, which is payable at January, 2014 and bear a fixed interest rate of 12% per annum.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

34.	Significant events

Going Public - New York Stock Exchange

On October 24, 2012 Brasilagro informed its shareholders that it is planning to list its shares in the US Stock Exchange by issuing ADRs (American Depositary Receipts). This process was commenced on November 8, 2012.

APSA

On November 14, 2012, APSA’s Board of Directors approved the subscription of a syndicated loan contract entered into by different banking institutions for the amount of Ps. 118,000. Principal shall be payable in nine quarterly and consecutive installments and shall accrue interest at a fixed annual nominal rate of 15.01%. Interests shall be payable on a monthly basis.

35.	Subsequent events

- Significant sale of investment properties

On January 8, 2013, IRSA sold several functional units (stores and parking spaces) of the building “Costeros Dique IV”. The total price of the transaction was Ps. 9.2 million.

- Sale of Hersha’s shares

During January and February 2013, The Group through its subsidiaries sold 1,619,729 shares of Hersha´s common stock for a total of approximately US$ 8.5 million.

- Partial repayment of amounts owed by Quality Invest S.A (Quality)

In January 2013, Quality made a partial payment of the third installment of the amounts due for the acquisition of the Nobleza Piccardo S.A.I.C. y F. property, for US$ 2 million.

- Conversion of APSA´s Convertible notes

On January 24, 2013 one of the holders of APSA´s ONC exercised their conversion right. Therefore, 223,456 ordinary shares were issued of Ps. 0.1 face value each and ONC for US$ 0.07 were derecognized.

Free translation from the original prepared in Spanish for publication

Limited Review Report

To the Shareholders, President and Board of Directors of

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

CUIT: 30-50930070-0

Legal address: Moreno 877 - 23° floor - Autonomous City of Buenos Aires

We have reviewed the accompanying unaudited condensed interim consolidated statement of financial position of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria and its subsidiaries as of December 31, 2012, and the related unaudited condensed interim consolidated statements of income, unaudited condensed interim consolidated statements of comprehensive income for the six and three-month periods ended December 31, 2012, and unaudited condensed interim consolidated statements of changes of shareholders’ equity and unaudited condensed interim consolidated statements of cash flows for the six-month period ended December 31, 2012 and selected explanatory notes. The balances and other information corresponding to the fiscal year ended June 30, 2012 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to these financial statements.

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with International Financial Reporting Standards. The IFRS as issued by the International Accounting Standard Board were adopted as accounting standards by the Argentine Federation of Professional Councils in Economic Sciences and incorporated by the National Securities Commission to its regulations. Therefore, the Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph 3.

We conducted our review in accordance with Technical Resolution No. 7 issued by the FACPCE for a review of interim financial statements. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit, the objective of which is to express an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

As mentioned in Note 2.1 to the unaudited condensed interim consolidated financial statements, these unaudited condensed interim consolidated financial statements have been prepared in accordance with IAS 34. The fiscal year ended June 30, 2013 will be the first year of application of IFRS. The adjustments and other effects of the transition to IFRS are presented in Note 2.4 to these unaudited condensed interim consolidated financial statements. The amounts included in the reconciliations shown in Note 2.4 are subject to change as a consequence of potential changes in IFRS which may occur until June 30, 2013, and should only be considered as final upon issuance of the annual financial statements for the fiscal year ended June 30, 2013.

Free translation from the original prepared in Spanish for publication

Limited Review Report (Continued)

5.	Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim consolidated financial statements have not been prepared in all material respects in accordance with IAS 34.

6.	In accordance with current regulations, we hereby inform that :

the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are recorded in the "Inventory and Balance Sheet Book" and carried in all formal respects in conformity with legal requirements, and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and the corresponding resolutions of the National Securities Commission;

b)	the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal respects in accordance with applicable legal provisions;

we have read the Business Summary (“Reseña Informativa”) and the Additional Information to the notes to the unaudited condensed interim consolidated financial statements required by Article 68 of the Buenos Aires Stock Exchange Regulations, on which, as regards those matters that are within our competence, we have no observations to make;

d)	at December 31, 2012, the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria owed in favor of the Argentine Integrated Pension System which arises from accounting records and submissions amounted to Ps. 3.509.636, which was not callable at that date.

Autonomous City of Buenos Aires, February 18, 2013

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Dr. Carlos Martín Barbafina

Public Accountant (U.C.A.)

C.P.C.E.C.A.B.A. Tº 175 Fº 65

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Financial Statements as of December 31, 2012 and for the six-month periods ended December 31, 2012 and 2011

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Financial Position

as of December 31, 2012 and June 30, 2012 and July 1, 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	12.31.2012		06.30.2012		07.01.2011
ASSETS
Non-current assets
Investment properties	7	25,885		15,995		25,078
Property, plant and equipment	8	373,986		360,329		311,739
Intangible assets	10	19,659		20,151		21,023
Biological assets	11	180,664		181,820		198,997
Investments in subsidiaries, associates and joint ventures	6	2,790,330		2,656,655		2,656,852
Trade and other receivables	13	145,469		159,265		65,078
Investment in financial assets	14	21		21		21
Total Non-current Assets		3,536,014		3,394,236		3,278,788
Current Assets
Trading property	9	4,678		-		-
Biological assets	11	103,505		67,360		89,811
Inventories	12	92,752		116,970		151,241
Trade and other receivables	13	231,746		222,344		262,717
Derivative financial instruments	15	1,931		2,160		4,786
Investment in financial assets	14	-		881		-
Cash and cash equivalents	16	26,849		8,194		24,979
Total Current Assets		461,461		417,909		533,534
TOTAL ASSETS		3,997,475		3,812,145		3,812,322
SHAREHOLDERS EQUITY
Share Capital		496,562		496,562		496,562
Treasury Stock		5,001		5,001		5,001
Inflation adjustment of share capital and treasury stock		65,425		166,218		166,218
Share Premium		773,079		773,079		773,079
Share Warrants		106,264		106,263		106,263
Cumulative Translation Adjustment		(33,723	)	(81,939	)	-
Equity-settled compensation		7,703		4,540		1,012
Legal reserve		46,835		42,922		32,293
Others reserves		337,065		389,202		320,064
Retained earnings		756,773		666,611		829,207
Change in non-controlling interest		(8,014	)	(9,596	)	-
TOTAL SHAREHOLDERS EQUITY		2,552,970		2,558,863		2,729,699
LIABILITIES
Non-current liabilities
Trade and other payables	17	1,681		1,863		16,593
Borrowings	20	686,177		649,457		204,645
Deferred income tax liabilities	21	16,467		61,025		112,764
Provisions	19	1,571		1,577		1,681
Total Non-current Liabilities		705,896		713,922		335,683
Current Liabilities
Trade and other payables	17	240,848		95,966		176,155
Payroll and social security liabilities	18	25,297		38,785		28,393
Borrowings	20	472,452		404,550		541,720
Derivative financial instruments	15	-		59		672
Provisions	19	12		-		-
Total Current Liabilities		738,609		539,360		746,940
TOTAL LIABILITIES		1,444,505		1,253,282		1,082,623
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES		3,997,475		3,812,145		3,812,322

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Income

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

		Six months							Three months
	Note	2012			2011				2012			2011
Revenues	23		235,842			233,855				100,948			82,379
Costs	24		(325,931	)		(321,141	)			(161,225	)		(143,737	)
Initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest			137,829			135,341				81,618			79,590
Changes in net realizable value of agricultural produce after harvest			12,327			2,541				626			(1,127	)
Gross Profit			60,067			50,596				21,967			17,105
General and administrative expenses	25		(26,705	)		(22,935	)			(12,023	)		(11,161	)
Selling expenses	25		(48,033	)		(38,006	)			(20,128	)		(11,285	)
Management fees			(6,751	)		(4,612	)			(6,751	)		(4,496	)
Other operating loss net	27		(7,302	)		(6,380	)			(352	)		(5,604	)
Loss from Operations			(28,724	)		(21,337	)			(17,287	)		(15,441	)
Share of profit of subsidiaries, associates and joint ventures	6		156,958			43,990				131,572			110,859
Profit Before Financing and Taxation			128,234			22,653				114,285			95,418
Finance income	28		17,307			13,691				8,490			7,461
Finance costs	28		(129,339	)		(84,798	)			(70,313	)		(46,780	)
Financial results, net	28		(112,032	)		(71,107	)			(61,823	)		(39,319	)
Profit / (Loss) Before Income Tax			16,202			(48,454	)			52,462			56,099
Income tax gain	21		44,558			27,743				24,816			18,327
Profit / (Loss) for the period			60,760			(20,711	)			77,278			74,426


Profit / (Loss) per share for the period (1):
Basic			0.12			(0.04	)
Diluted			0.11			-		(1)

(1)	Due to the loss for the period 2011, there is no diluted effect of this result.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Comprehensive Income

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Six months					Three months
	2012		2011			2012		2011
Profit / (Loss) for the period		60,760		(20,711	)		77,278		74,426
Other Comprehensive Income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment from subsidiaries, associates and joint ventures		56,547		(71,999	)		34,050		11,045
Other Comprehensive Income / (Loss) for the Period (i)		56,547		(71,999	)		34,050		11,045
Total comprehensive income / (loss) for the Period		117,307		(92,710	)		111,328		85,471

(i)	Items included in other comprehensive income do not generate any impact on the income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock		Inflation Adjustment of Share Capital and Treasury Stock		Share Premium		Share Warrants		Subtotal		Change in non-controlling interest			Cumulative Translation Adjustment			Equity -settled compensation		Legal Reserve		Other reserves		Retained Earnings			Total shareholders’ equity
Balance at July 1, 2011		496,562		5,001		166,218		773,079		106,263		1,547,123		-			-			1,012		32,293		320,064		829,207			2,729,699
Loss for the period		-		-		-		-		-		-		-			-			-		-		-		(20,711	)		(20,711	)
Others comprehensive loss for the period		-		-		-		-		-		-		-			(71,999	)		-		-		-		-			(71,999	)
Total comprehensive loss for the period		-		-		-		-		-		-		-			(71,999	)		-		-		-		(20,711	)		(92,710	)
Equity-settled compensation		-		-		-		-		-		-		-			-			2,833		-		-		-			2,833
Legal Reserve		-		-		-		-		-		-		-			-			-		10,629		-		(10,629	)		-
Reserve for new developments		-		-		-		-		-		-		-			-			-		-		69,138		(69,138	)		-
Acquisition of non-controlling interest		-		-		-		-		-		-		(16,840	)		-			-		-		-		-			(16,840	)
Dividends distributed by subsidiaries		-		-		-		-		-		-		-			-			-		-		-		(63,800	)		(63,800	)
Unpaid expired dividends		-		-		-		-		-		-		-			-			-		-		-		2,301			2,301
Balance at December 31, 2011		496,562		5,001		166,218		773,079		106,263		1,547,123		(16,840	)		(71,999	)		3,845		42,922		389,202		667,230			2,561,483

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock		Inflation Adjustment of Share Capital and Treasury Stock			Share Premium		Share Warrants		Subtotal			Change in non-controlling interest			Cumulative translation adjustment reserve			Equity-settled compensation		Legal Reserve		Other Reserves			Retained Earnings			Total shareholders’ equity
Balance at July 1, 2012		496,562		5,001		166,218			773,079		106,263		1,547,123			(9,596	)		(81,939	)		4,540		42,922		389,202			666,611			2,558,863
Profit for the period		-		-		-			-				-			-			-			-		-		-			60,760			60,760
Others comprehensive income for the period		-		-		-			-				-			-			56,547			-		-		-			-			56,547
Total comprehensive income for the period		-		-		-			-				-			-			56,547			-		-		-			60,760			117,307
Shareholders Meeting held on 10.31.12:
- Legal Reserve		-		-		-			-		-		-			-			-			-		3,913		-			(3,913	)		-
- Other reserves		-		-		-			-		-		-			-			-			-		-		(52,137	)		52,137			-
- Appropriation of retained earnings		-		-		(100,793	)		-		-		(100,793	)		-			-			-		-		-			100,793			-
- Cash dividends		-		-		-			-		-		-			-			-			-		-		-			(120,000	)		(120,000	)
Acquisition of non-controlling interest		-		-		-			-		-		-			1,582			-			-		-		-			-			1,582
Equity-settled compensation		-		-		-			-		-		-			-			-			3,163		-		-			-			3,163
Exercise of warrants		-		-		-			-		1		1			-			-			-		-		-			-			1
Currency translation adjustment reclassified		-		-		-			-		-		-			-			(8,331	)		-		-		-			-			(8,331	)
Reimbursement of expired dividends		-		-		-			-		-		-			-			-			-		-		-			385			385
Balance at December 31, 2012		496,562		5,001		65,425			773,079		106,264		1,446,331			(8,014	)		(33,723	)		7,703		46,835		337,065			756,773			2,552,970

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Cash Flows

for the six-month periods ended December 31, 2012 and 2011

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	12.31.2012		12.31.2011
Cash flows from operating activities:
Cash generated from operations	16	34,161		16,164
Income tax paid		-		(4,666	)
Net cash generated from operating activities		34,161		11,498
Cash flow used in investing activities:
Acquisition of subsidiaries, associates and joint ventures, net of cash acquired	4	(5,695	)	(150,020	)
Capital contribution to subsidiaries, associates and joint ventures	6	(38,067	)	-
Purchases of investment properties	7	(1,686	)	-
Purchases of property, plant and equipment	8	(30,907	)	(27,727	)
Proceeds from sale of property, plant and equipment		120		494
Purchase of intangible assets		(21	)	-
Payment of investment in financial assets		-		(659	)
Proceeds from disposals of Investment in financial assets		928		-
Loans granted to subsidiaries, associates and joint ventures		(18,245	)	(38,483	)
Loans repayments received from subsidiaries, associates and joint ventures		29,692		-
Dividends received		117,934		136,345
Net cash provided by (used in) investing activities		54,053		(80,050	)
Net Cash flows (used in) provided by financing activities:
Proceeds from issuance of non-convertible bonds		142,168		246,912
Payment of non-convertible notes		(175,471	)	(31,080	)
Dividend payments		(52,946	)	(63,800	)
Proceeds from borrowings		168,896		182,041
Repayments of borrowings		(97,259	)	(236,359	)
Proceeds from borrowings from subsidiaries, associates and joint ventures		-		105,625
Payments of borrowings from subsidiaries, associates and joint ventures		(186	)	(107,753	)
Proceeds from warrants and options		1		-
Payment of seller financing		(66	)	-
Interest paid		(54,729	)	(35,495	)
Net Cash flows (used in) provided by financing activities		(69,592	)	60,091
Net increase (decrease) in cash and cash equivalents		18,622		(8,461	)
Cash and cash equivalents at beginning of period	16	8,194		24,979
Foreign exchange gain on cash and cash equivalents		33		90
Cash and cash equivalents at end of period		26,849		16,608

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

1.	General information

1.1	The Group’s business and general information

Cresud is a company organized and domiciled in the Republic of Argentina. The address of its registered office is Moreno 877, 23rd Floor, Buenos Aires, Argentina.

These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on February 18, 2013.

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”)

2.1.	Basis of preparation and transition to RT 26

The Company is required to adopt IFRS as from the fiscal year beginning July 1, 2012, being these financial statements the first interim financial statements for the six-month periods prepared under IFRS. The Company’s transition date for the adoption of IFRS as defined by IFRS 1, First time adoption of IFRS, is July 1, 2011.

The Unaudited Condensed Interim Separate Financial Statements of the Company for the six-month periods ended December 31, 2012 and 2011 have been prepared in accordance with RT 26 of F.A.C.P.C.E., adopted by CNV. This Technical Resolution differs from International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by IASB, in reference to the accounting measurement criteria of the investments in subsidiaries, joint ventures and associates, which are accounted for under the equity method described by IAS 28 “Investments in Associates”. This criterion differs from the provisions of paragraph 38 of IAS 27 “Separate Financial Statements”, whereby such investments are measured at cost or fair value.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

The Unaudited Condensed Interim Separate Financial Statements have been prepared in accordance with the accounting policies that the Company expects to adopt in its annual consolidated financial statements as of June 30, 2013. The accounting policies are based on IFRSs issued by the IASB and the interpretations issued by the IFRS Interpretation Committee (“IFRIC”) that the Group expects to become applicable on such date.

The separate consolidated financial statements of the Company were prepared in accordance with the Argentine accounting standards (Argentine GAAP) in force, which differ from IFRS in some areas. To prepare these Unaudited Condensed Interim Separate Financial Statements, the Management of the Company has modified certain valuation and presentation accounting policies that were previously applied under Argentine accounting standards in order comply with the IFRS.

Comparative figures and figures as of the transition date (July 1, 2011) have been modified to reflect such adjustments. The notes below include a reconciliation of shareholders’ equity figures of separate financial statements prepared in accordance with the Argentine GAAP on the transition date (July 1, 2011), on the adoption date (June 30, 2012) and on the closing date of the comparative period (December 31, 2011) and the statement of income and other comprehensive income figures for the fiscal year ended June 30, 2012 and for the six-month period ended as of December 31, 2011, and those presented in accordance with the RT 26 in these Unaudited Condensed Interim Separate Financial Statements, as well as the effects of the adjustments to cash flow.

These Unaudited Condensed Interim Separate Financial Statements should be read together with the annual financial statements of the Company as of June 30, 2012 prepared in accordance with Argentine accounting standards in force. Exhibit I, included in Unaudited Condensed Interim Separate Financial Statement as of September 30, 2012 and 2011, presents additional information as of June 30, 2012 and July 1, 2011 under IFRS which is considered necessary to understand these Unaudited Condensed Interim Separate Financial Statements. These Unaudited Condensed Interim Separate Financial Statements are expressed in Argentine Pesos.

The Unaudited Condensed Interim Separate Financial Statements for the six-month periods ended as of December 31, 2012 and 2011 have not been audited. The Company´s management believes they include all necessary adjustments to fairly present the results of each period. Results for the six-month periods ended December 31, 2012 and 2011 do not necessarily reflect proportionally the Company´s results for the complete fiscal year.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

The format of the primary financial statements under Argentine GAAP is governed by Technical Resolutions 8 and 9 of the “FACPCE” and Resolutions of the CNV. IAS 1 Presentation of Financial Statements requires certain disclosures to be made on the face of the primary statements and other required disclosures may be made in the notes or on the face of the financial statements, unless another standard specifies otherwise. The transition to Technical Resolutions No. 26 has resulted in the Company changing the format of its Statement of Income, statement of financial position and statement of cash flows, as well as the disclosure of certain line items not prescribed by Argentine GAAP.

2.2.	Initial elections upon adoption of Technical Resolution No. 26 (“RT 26”)

As a general rule, the Company is required to establish its IFRS accounting policies for the year ended as of June 30, 2013 and apply these retrospectively. However, advantage has been taken of certain exemptions and exceptions afforded by IFRS 1.

In Notes 2.2. and 2.3. to the Unaudited Condensed Interim Consolidated Financial Statements of the Company indicates the exemptions and exceptions that are applicable in IFRS 1 and that have been applied in the transition from Argentine GAAP to RT 26.

2.3.	Reconciliations of Argentine GAAP to Technical Resolution No. 26 (“RT 26”)

In accordance with the requirements of Technical Resolution No. 26 and No. 29 of FACPCE., set out below are the reconciliations of shareholders’ equity in accordance with Argentine GAAP and RT 26 as of June 30, 2012, as of December 31, 2011 and as of July 1, 2011, and the reconciliations of comprehensive income and cash flows for the year ended as of June 30, 2012 and for the six-month period ended as of December 31, 2011. The reconciliations included below were prepared based on the IFRS standards that are estimated to be applicable for the Company for the financial statements as of and for the year ended June 30, 2013. The items and amounts in the reconciliations included below are subject to change and should only be deemed final when the consolidated financial statements prepared under RT 26 for the first time as of and for the year ended June 30, 2013 are issued.

The first reconciliation provides an overview of the impact on equity of the transition as of July 1, 2011, as of December 31, 2011 and as of June 30, 2012 (Note 2.3.1). The second reconciliation provides an overview of the impact on net income for the six-month period ended as of December 31, 2011 and for the fiscal year ended as of June 30, 2012 (Note 2.3.2). The third reconciliation provides an overview of the impact on comprehensive income for the six-month period ended as of December 31, 2011 and for the fiscal year ended as of June 30, 2012 (Note 2.3.3).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2 Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

2.3.1.

Summary of equity

		July 1, 2011			December 31, 2011			June 30, 2012
Shareholders’ equity under Argentine GAAP			2,101,681			2,016,761			2,063,281
Biological assets and agriculture produce at the point of harvest	(a)		30,411			1,943			1,506
Inventories	(b)		(6,313	)		(6,180	)		(5,233	)
Pre-operating and organization expenses	(c)		(769	)		(618	)		(684	)
Goodwill	(d)		361,326			350,619			319,255
Commodity linked debt	(e)		97			101			72
Present value accounting - tax credits	(f)		3,414			2,270			5,014
Investment in subsidiaries, associates and joint ventures	(g)		249,711			192,369			168,454
Acquisition of non-controlling interest	(h)		-			3,758			9,379
Amortization of cost of borrowing	(i)		-			-			261
Settlement of Brasilagro warrants	(j)		-			-			(2,706	)
Deferred income tax	(k)		(9,859	)		459			264
Shareholders’ equity under RT 26			2,729,699			2,561,482			2,558,863

2.3.2.

Summary of profit / (loss)

		Six months			Three months
		December 31, 2011			December 31, 2011			June 30, 2012
Net comprehensive income under Argentine GAAP			46,723			52,157			78,263
Biological assets and agriculture produce at the point of harvest	(a)		(28,468	)		(5,411	)		(28,905	)
Inventories	(b)		133			2,566			1,080
Pre-operating and organization expenses	(c)		151			73			85
Goodwill	(d)		(9,812	)		980			(41,029	)
Commodity linked debt	(e)		4			(66	)		(25	)
Present value accounting - tax credits	(f)		(1,142	)		(243	)		1,600
Investment in subsidiaries, associates and joint ventures	(g)		(38,618	)		23,264			(42,782	)
Amortization of cost of borrowing	(i)		-			-			261
Deferred income tax	(k)		10,318			1,106			10,123
Net comprehensive loss under RT 26			(20,711	)		74,426			(21,329	)

2.3.3.

Summary of comprehensive income

		Six months			Three months
		December 31, 2011			December 31, 2011			June 30, 2012
Other comprehensive loss under Argentine GAAP			(63,100	)		14,725			(58,692	)
Goodwill	(d)		(895	)		69			(1,041	)
Investments in subsidiaries	(g)		(8,004	)		(3,749	)		(22,206	)
Other comprehensive loss under Argentine RT 26			(71,999	)		11,045			(81,939	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

2.3.4.

Reconciliation of cash flows for the six-month periods ended December 31, 2011

Based on IAS 7 ‘Statement of Cash Flows’ requirements, the Group has made various reclassifications between operating, investing and financing activities in the cash flow statements presented under Argentine GAAP and the cash flows statements under IFRS as further detailed below:

(a)	Operating activities

Cash generated from operating activities under Argentine GAAP	12,082
Proceeds from sale of properties, plant and equipment	(494	)
Exchange gains on cash and cash equivalents	(90	)
Cash generated from operating activities under RT 26	11,498

(b)	Investing activities

Cash used in investing activities under Argentine GAAP	(78,273	)
Sale of properties, plant and equipment	494
Cash incorporated by merger	(2,271	)
Cash used in investing activities under RT 26	(80,050	)

(c)	Net increase in cash and cash equivalents

Net increase in cash and cash equivalents under Argentine GAAP	(6,100	)
Exchange differences on cash and cash equivalents	(90	)
Cash incorporated by merger	(2,271	)
Net increase in cash and cash equivalents under RT 26	(8,461	)

2.3.5.

Reconciliation of cash flows for the year ended June 30, 2012

(a)	Operating activities

Cash generated from operating activities under Argentine GAAP	12,176
Proceeds from sale of properties, plant and equipment	(40,051	)
Cash used in operating activities under RT 26	(27,875	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

(b)	Investing activities

Cash used in investing activities under Argentine GAAP	(173,480	)
Proceeds from sale of properties, plant and equipment	40,051
Cash used in investing activities under RT 26	(133,429	)

2.3.6.

Presentation reclassifications affecting the statement of cash flows for the six-month period ended as of December 31, 2011 and for the year ended as of June 30, 2012

Under the Argentine GAAP, the effect of exchange rate changes on cash and cash equivalents were disclosed as operating activities and not by presenting a fourth cash flows statement category as required by RT. 26.

Pursuant to Argentine GAAPs, collected from the sale of property, plant and equipment (including properties classified as investment property under RT No. 26) was reported as operating activities. In accordance with RT No. 26, collected from the sale of property, plant and equipment are reported as investment activities.

Thus, cash flows generated by or used in operating, investment and financing activities were different in the statement of cash flow prepared under Argentine GAAP.

2.3.7.

Explanation of the transition to IFRS

Argentine GAAP differs in certain significant respects from RT No. 26. Such differences involve methods of measuring the amounts shown in the financial statements, as further described below:

(a)	Biological assets and agriculture produce at the point of harvest

This adjustment is consistent with the one described in Note 2.4.7.(c) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month periods ended as of December 30, 2012 and 2011. The Company adjusted all of its biological assets on the statement of financial position at fair value less costs to sell for an amount of Ps. 30.4 million, Ps. 1.9 million and Ps. 1.5 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Company recognized an amount of Ps. 28.5 million loss in the statement of income, and the remaining amount of Ps. 30.4 million against retained earnings. For the year ended June 30, 2012, the Company recognized an amount of Ps. 28.9 million losses in the statement of income and the remaining amounts of Ps. 30.4 million against retained earnings.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

(b)	Inventories

This adjustment is consistent with the one described in Note 2.4.7.(d) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company reduced inventories by Ps. 6.3 million, Ps. 6.2 million and Ps. 5.2 million as of July 1, 2011 and December 31, 2011 and as of June 30, 2012, respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Company recognized a gain for an amount of Ps. 0.1 million in the statement of income and the remaining amounts of Ps. 6.3 million against retained earnings. For the fiscal year ended as of June 30, 2012, the Company recognized a gain for an amount of Ps. 1.1 million in the statement of income and an amount of Ps. 6.3 million against retained earnings.

(c)	Pre-operating and organization expenses

This adjustment is consistent with the one described in Note 2.4.7.(f) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. As of July 1, 2011 the balances of pre-operating, organization expenses and other start-up costs capitalized under Argentine GAAP were derecognized for an amount of Ps. 0.8 million (September 30, 2011 Ps. 0.7 million; June 30, 2012 Ps. 0.7 million) of intangible assets. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Company recognized a gain for an amount of Ps. 0.2 million in the statement of income and the remaining amount of Ps. 0.8 million against retained earnings. For the year ended June 30, 2012 the Company recognized a loss for an amount of Ps. 0.1 million in the statement of income and the remaining amount of Ps. 0.8 million against retained earnings.

(d)

Goodwill

This adjustment is consistent with the one described in Note 2.4.7.(g) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The balances of negative goodwill included in the balances of investment in subsidiaries, associates and joint venture in the statement of financial position under Argentine GAAP were derecognized under RT 26 for an amount of Ps. 361.3 million, Ps. 350.6 million and Ps. 319.3 million as of July 1, 2011, December 31, 2011 and June 30, 2012 respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011, the Company recognized: (i) a loss for an amount of Ps. 9.8 million in the statement of income, (ii) a loss for an amount Ps. 0.9 million against comprehensive income and (iii) the remaining amounts of Ps. 361.3 million against retained earnings. For the year ended as of June 30, 2012, the Company recognized (i) a loss for Ps. 41.0 million in the statements of income, (ii) a loss for an amount Ps. 1.0 million against comprehensive income and (iii) the remaining amounts of Ps. 361.3 million against retained earnings.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

(e)	Commodity linked debt

This adjustment is consistent with the one described in Note 2.4.7.(k) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company adjusted borrowings for an amount of Ps. 0.1 million, Ps. 0.1 million and Ps. 0.08 million as of July 1, 2011, December 31, 2011 and June 30, 2012 respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 an amount of Ps. 0.1 million was recognized against retained earnings and an amount of Ps. 0.004 million gain was recognized in the statement of income. For the fiscal year ended as of June 30, 2012, was recognized an amount of Ps. 0.1 million against retained earnings and a loss of Ps. 0.02 million in the statement of income.

(f)	Present value accounting - tax credits

This adjustment is consistent with the one described in Note 2.4.7.(m) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company eliminated the effect of discounting tax credits for an amount of Ps. 3.4 million, Ps. 2.3 million and Ps. 5.0 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended as of December 31, 2011 was recognized an amount of Ps. 3.4 million against retained earnings and a loss of Ps. 1.1 million in the statement of income. For the fiscal year ended as of June 30, 2012, an amount of Ps. 3.4 million was recognized against retained earnings and an amount of Ps. 1.6 million gains was recognized in the statement of income.

(g) Impact of RT 26 adjustments on investment in subsidiaries, associates and joint ventures

Argentine GAAP - Investments in entities in which the Company exercises control, are accounted for under the equity method. Under the equity method, the investment is recorded at original cost and periodically increased (decreased) by the investor's proportionate share of earnings (losses) of the investee and decreased by all dividends received from the investor by the investee. The Company applied its percentage ownership interest to the financial statements of its equity method investments prepared under Argentine GAAP.

RT 26 – As in mentioned in Note 2.1 the Company also accounts for these investments under the equity method of accounting. However, the Company has assessed the impact of RT 26 adjustments on the financial statements of these investments prepared under Argentine GAAP prior to the application of the equity method.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

A description of the most significant RT 26 adjustments to the Shareholders’ equity, net income of subsidiaries is included in Notes 2.4.7.(a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (l), (m), (n), (o), (p), (r), (t), (u) and (v) to the Unaudited Condensed Interim Consolidated Financial Statements.

As a result, the net equity of the subsidiaries, associates and joint ventures was increased by Ps. 249.7 million, Ps. 192.4 million and Ps. 168.5 million as of July 1, 2011, December 31, 2011 and June 30, 2012, respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended December 31, 2011, (i) the amount of Ps. 249.7 million was recognized against retained earnings, (ii) an amount of Ps. 8.0 million loss was recognized as comprehensive income, (iii) an amount of Ps. 38.6 million loss was recognized in the statement of income and (iv) Ps. 10.7 million were recognized as a debit in the statements in shareholder´s equity. For the fiscal year ended as of June 30, 2012, (i) the amount of Ps. 249.7 million were recognized against retained earnings, (ii) an amount of Ps. 22.2 million loss were recognized against comprehensive income, (iii) an amount of Ps. 42.8 million loss were recognized in the statement of income and (iv) Ps. 16.2 million were recognized as a debit in the statements in shareholders’ equity.

(h)	Acquisition of non-controlling interest

This adjustment is consistent with the one described in Note 2.4.7.(p) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. As of December 31, 2011, the Company recognized a credit of Ps. 3.8 million in equity. Additionally, as of June 30, 2012 the Company recognized a credit of Ps. 9.4 million in shareholders’ equity.

(i)	Amortization of transaction costs of borrowings

This adjustment is consistent with the one described in Note 2.4.7.(r) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company recognized a gain for the difference in amortization of transaction costs on borrowings for an amount of Ps. 0.3 million as of June 30, 2012 in the statements of income.

(j)	Settlement of BrasilAgro warrants

This adjustment is consistent with the one described in Note 2.4.7.(s) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company writes off the assets for an amount of Ps. 2.7 million as of June 30, 2012, against a deduction in the shareholders’ equity.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation and adoption of Technical Resolution No. 26 (“RT 26”) (Continued)

(k)	Deferred tax

This adjustment is consistent with the one described in Note 2.4.7 (u) to the Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended as of December 31, 2012 and 2011. The Company has assessed the impact of all RT 26 adjustments on deferred income taxes. As a result, the Company recognized an adjustment to deferred income taxes of Ps. 9.9 million, Ps. 0.4 million and Ps. 0.3 million as of July 1, 2011, December 31, 2011 and June 30, 2012.respectively. As of July 1, 2011, the adjustment was recognized against retained earnings. For the six-month period ended December 31, 2011 an amount of Ps. 9.9 million was recognized against retained earnings and an amount of Ps. 10.3 million gain was recognized in the statement of income. For the period ended June 30, 2012 were recognized an amount of Ps. 9.9 million against retained earnings and an amount of Ps. 10.1 million gain was recognized in the statements of income.

2.4.	Significant Accounting Policies

The principal accounting policies applied in the preparation of these Unaudited Condensed Interim Separate Financial Statements are consistent with those applied in the preparation of the information under IFRSs as of June 30, 2012, (which are stated in Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011) and are based upon such IFRSs expected to be in force as of June 30, 2013 (except for the recognition criteria of investments in subsidiaries, jointly-controlled entities and associates), as described in Note 2.1. The most significant accounting policies are described in Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

2.5.	Use of estimates

In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the significant judgments made by Management in applying the Company’s accounting policies and the main sources of uncertainty were the same applied by the Company in the preparation of the annual financial statements relative to the year ended June 30, 2012 described in Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

3.	Seasonal effects on operations

The operations of the Company are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between February and June every year. Wheat is generally harvested between November and January. However, milk production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results across quarters.

4.	Acquisition and disposals

See summary of acquisition and disposal of the Company for the six-month period ended as of December 31, 2012 in Note 4 to Unaudited Condensed Interim Consolidated Financial Statements.

5.	Financial Risk management

5.1.	Financial risk

The Company’s activities are exposed to several financial risks, namely: market risk (including exchange rate risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.

Exhibit I included in Unaudited Condensed Interim Separate Financial Statements as of September 30, 2012 and 2011, provides information on financial risk management as of June 30, 2012 and July 1, 2011. Since June 30, 2012 there have been no changes in the risk management or risk management policies applied by the Company.

5.2.	Fair value estimates

Since June 30, 2012 there have been no reclassifications of financial assets.

Additionally, since June 30, 2012 there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets or liabilities (either measured at fair value or amortized cost), nor any transfers between the different hierarchies used to assess the fair value of the Company's financial instruments.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6.	Information about principal subsidiaries, associates and joint ventures

The Company conducts its business through several operating and holding subsidiaries, associates and joint ventures.

Set out below is the summarized financial information for each subsidiary, for the six-month period ended as of December 31, 2012 and for the fiscal year ended as of June 30, 2012:

	December 31, 2012			June 30, 2012
Beginning of the period / year		2,656,655			2,645,821
Acquisition of subsidiaries		7,274			160,257
Capital contribution		38,067			76,659
Disposal of subsidiaries		-			(26,004	)
Share of profit, net		156,958			77,421
Exchange differences		48,217			(81,941	)
Share-based payments reserve		2,275			2,749
Dividend payments		(119,499	)		(200,607	)
Reimbursement of expired dividends		383			2,300
End of the period / year		2,790,330			2,656,655

See changes in Company’s investment in associates and joint ventures for the six-month periods ended as of December 31, 2012 and 2011 in Notes 8 and 9 to the Unaudited Condensed Interim Consolidated Financial Statements.

7.	Investment properties

Changes in Company’s investment properties for the six-month period ended as of December 31, 2012 and for the fiscal year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		15,995			25,078
Additions		1,686			616
Reclassifications of Property, plant and equipment		9,199			1,873
Reclassifications to trading properties		(811	)		-
Disposals		(2	)		(11,256	)
Depreciation charge (i)		(182	)		(316	)
End of the period / year		25,885			15,995

(i)	Depreciation charges of investment property were included in “Costs” in the Statement of Income. (Note 24).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

7.	Investment properties (Continued)

The following amounts have been recognized in the statement of income:

		December 31, 2012				December 31, 2011
Rental and service income			9,899				9,817

8.	Property, plant and equipment, net

Changes in Company’s property, plant and equipment ("PPE") for the six-month period ended as of December 31, 2012 and for the fiscal year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		360,329			311,739
Additions		30,991			60,422
Reclassifications to investment properties		(9,199	)		(1,873	)
Reclassifications to trading properties		(3,818	)		-
Disposals		(312	)		(2,195	)
Depreciation charge (i)		(4,005	)		(7,764	)
End of the period / year		373,986			360,329

(i)

For the six-month period ended as of December 31, 2012, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 270 under the line item “General and administrative expenses” and Ps. 3,735 under the line item “Cost” in the Statement of Income. For the fiscal year ended June 30, 2012, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 479 under the line item “General and administrative expenses” and Ps. 7,285 under the line item “Cost” in the Statement of Income.

9.	Trading properties

	December 31, 2012		June 30, 2012
Beginning of the period / year		-		-
Reclassifications from investment properties and PPE		4,678		-
End of the period / year		4,678		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

10.	Intangible assets, net

Changes in Company’s intangible assets for the six-month period ended as of December 31, 2012 and for the fiscal year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		20,151			21,023
Additions		21			86
Amortization charge (i)		(513	)		(958	)
End of the period / year		19,659			20,151

(i)	Amortization charges are included in “General and administrative expenses” in the Statement of Income. There are no impairment charges for any of the periods presented.

11.	Biological assets

Changes in Company’s biological assets for the six-month period ended as of December 31, 2012 and for the fiscal year ended as of June 30, 2012 were as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		249,180			288,808
Increase due to purchases		397			17,296
Initial recognition and changes in fair value of biological assets		120,273			303,857
Decrease due to harvest		(52,965	)		(235,550	)
Decrease due to sales		(32,103	)		(123,607	)
Decrease due to consumption		(613	)		(1,624	)
End of the period / year		284,169			249,180

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

11. Biological assets (Continued)

Biological assets as of December 31, 2012, June 30, 2012 and July 1, 2011 were as follows:

	Classification	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Cattle for dairy production	Production		25,592		25,894		22,269
Breeding cattle	Production		145,484		146,169		168,731
Other cattle	Production		6,382		6,939		4,297
Others biological assets	Production		3,206		2,818		3,700
Non-current biological assets			180,664		181,820		198,997
Current
Cattle for dairy production	Consumable		453		93		5
Breeding cattle	Consumable		32,564		36,116		41,840
Other cattle	Consumable		791		757		506
Crops	Consumable		69,697		30,394		47,460
Current biological assets			103,505		67,360		89,811
Total biological assets			284,169		249,180		288,808

12.	Inventories

	December 31, 2012		June 30, 2012		July 1, 2011
Current
Crops		18,795		73,776		95,501
Materials and inputs		66,321		29,927		47,939
Seeds and fodders		7,636		13,267		7,801
Total inventories		92,752		116,970		151,241

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

13.	Trade and other receivables

	December 31, 2012			June 30, 2012			July 1, 2011
Non-current
VAT receivables		18,433			16,189			19,813
Minimum Presumed Income tax		58,154			53,072			45,265
Non-current other receivables		76,587			69,261			65,078
Related parties (Note 30)		68,882			90,004			-
Non-current trade and other receivables		145,469			159,265			65,078
Current
Receivables from sale of agricultural products and services		23,859			45,671			46,669
Deferred checks received		7,370			7,983			4,929
Debtors under legal proceedings		322			322			322
Less: provision for impairment of trade receivables		(396	)		(474	)		(619	)
Trade receivables, net		31,155			53,502			51,301
Prepayments		36,734			17,938			23,913
VAT receivables		5,663			5,873			9,126
Income tax prepayments		12,057			13,744			10,885
Loans		2,309			-			-
Gross sales tax credit		4,712			5,886			3,448
Other tax receivables		2,223			1,509			436
Advance payments		94			2,330			1,298
Expenses and services to recover		3,006			3,616			7,235
Others		127			954			4,048
Current other receivables, net		66,925			51,850			60,389
Related parties (Note 30)		133,666			116,992			151,027
Current trade and other receivables, net		231,746			222,344			262,717
Total trade and other receivables		377,215			381,609			327,795

Movements on the Company’s provision for impairment of trade receivables is as follows:

	December 31, 2012			June 30, 2012
Beginning of the period / year		474			619
Charge		9			192
Unused amounts reversed / uses		(87	)		(337	)
End of the period / year		396			474

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 25). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

14.	Investment in Financial Assets.

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current
Shares		21		21		21
Total Non-Current		21		21		21

Current
Mutual funds		-		881		-
Total current		-		881		-
Total Investment in Financial Assets		21		902		21

15.	Derivative financial instruments

Derivative financial instruments of the Company as of December 31, 2012, June 30, 2012 and July 1, 2011 are as follows:

	December 31, 2012		June 30, 2012			July 1, 2011
Assets
Current
Commodities		1,931		1,202			2,919
Swaps		-		958			1,867
Total current		1,931		2,160			4,786
Total assets		1,931		2,160			4,786

Liabilities
Current
Commodities		-		(59	)		(672	)
Total current		-		(59	)		(672	)
Total liabilities		-		(59	)		(672	)

Additionally, the Company holds certain embedded derivative financial instruments related to borrowings. See Note 20 for further details.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

16.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of December 31, 2012, June 30, 2012 and July 1, 2011:

	December 31, 2012		June 30, 2012		July 1, 2011
Cash at bank and on hand		26,758		8,136		5,886
Mutual funds		91		58		19,093
Total cash and cash equivalents		26,849		8,194		24,979

Following is a detailed description of cash flows generated by the Company’s operations for the six-month period ended as of December 31, 2012 and 2011.

	December 31, 2012			December 31, 2011
Profit / (Loss) for the period		60,760			(20,711	)
Adjustments for:
Income tax expense		(44,558	)		(27,743	)
Depreciation		4,187			4,287
Amortization		513			376
Gain from disposal of property, plant and equipment		(149	)		-
Release of properties, plant and equipment		152			-
Options Granted to Employees		887			815
Unrealized Loss / (Gain) on derivative financial instruments		(253	)		1,069
Changes in fair value of financial assets at fair value through profit or loss		(47	)		-
Accrued interest, net		52,771			39,738
Unrealized initial recognition and changes in fair value of biological assets and agricultural produce		(97,566	)		(98,205	)
Changes in net realizable value of agricultural produce after harvest		(12,327	)		(2,541	)
Provisions and allowances		7,568			4,565
Share of (profit) / loss of Investment in subsidiaries, associates and joint ventures		(156,958	)		(43,990	)
Unrealized foreign exchange loss, net		58,830			25,487
Changes in operating assets and liabilities
Decrease in biological assets		62,539			50,849
Decrease in inventories		36,545			67,187
Decrease in trade and other receivables		4,257			66,701
Decrease in derivative financial instruments		417			2,007
(Increase) / decrease in trade and other payables		70,081			(44,788	)
Decrease in payroll and social security liabilities		(13,488	)		(8,939	)
Net cash generated from operating activities before income tax paid		34,161			16,164

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

16.	Cash flow information (Continued)

The following table shows a detail of non-cash transaction occurred for the six-month period ended as of December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011
Non-cash activities:
Decrease in investments in subsidiaries, associates and joint ventures through an increase in trade and other receivables		-			(27,205	)
Reimbursement of expired dividends		383			-
Share – based payments reserve		2,275			1,369
Transfers of property, plant and equipment to investment properties		(9,199	)		-
Increase in trade and other receivables through a decrease in property, plant and equipment		183			-
Increase of interest in subsidiaries, associates and joint venture by exchange differences on translating foreign operations		(48,218	)		(77,825	)
Increase in trading properties through a decrease in property, plant and equipment and investment properties		4,678			-
Unpaid dividends		67,054			-

17.	Trade and other payables

	December 31, 2012		June 30, 2012		July 1, 2011
Tax on shareholders’ personal assets		1,628		1,781		2,086
Investments in subsidiaries, associates and joint ventures		-		-		11,031
Others		53		82		3,476
Non-current other payables		1,681		1,863		16,593
Non-current trade and other payables		1,681		1,863		16,593
Current
Trade payables		62,988		26,840		63,391
Accruals		24,660		22,926		50,893
Trade payables		87,648		49,766		114,284
Rent and service payments received in advanced		370		163		-
Income from leases to be accrued		4,093		173		54
Guarantee deposits		1,971		6,995		-
Dividends payable		67,054		-		-
Gross sales tax		91		485		435
Tax payment plans		310		310		305
Other tax payables		18		57		22
Tax withholdings		391		1,201		672
Others		5,690		4,788		5,555
Current other payables		79,988		14,172		7,043
Related parties (Note 30)		73,212		32,028		54,828
Current trade and other payables		240,848		95,966		176,155
Total trade and other payables		242,529		97,829		192,748

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

18.	Payroll and social security liabilities

	December 31, 2012		June 30, 2012		July 1, 2011
Current
Provision for vacation and bonuses		19,373		33,754		23,868
Social security payable		5,340		3,992		4,176
Salaries payable		-		139		349
Others		584		900		-
Current payroll and social security liabilities		25,297		38,785		28,393
Total payroll and social security liabilities		25,297		38,785		28,393

19.	Provisions

The table below shows the movements in Company's provisions for other liabilities categorized by type of provision:

	Labor, legal and other claims			Tax and social security claims		Total
At July 1, 2011		1,681			-		1,681
Additions		181			5		186
Used during year		(290	)		-		(290	)
At June 30, 2012		1,572			5		1,577
Additions		9			-		9
Used during period		(3	)		-		(3	)
At December 31, 2012		1,578			5		1,583

The analysis of total provisions was as follows:

	December 31, 2012		June 30, 2012		July 1, 2011
Non-current		1,571		1,577		1,681
Current		12		-		-
		1,583		1,577		1,681

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

20.	Borrowings

									Value as of
	Secured/ unsecured	Currency	Fixed/ Floating	Effective interest rate %			Nominal Value (in millions)		December 31, 2012			June 30, 2012			July 1, 2011
Non-current
CRESUD NCN Class IV due 2013	Unsecured	US$	Fixed		7.75	%		17.8		-			-			18,314
CRESUD NCN Class V due 2013	Unsecured	Ps.	Floating	Badlar + 375 bps				106.9		-			-			70,927
CRESUD NCN Class VI due 2013 (viii)	Unsecured	US$	Fixed		7.75	%		34.8		-			-			106,895
CRESUD NCN Class VII due 2014	Unsecured	US$	Floating	4%+ Prize Factor				2.1		-			-			8,509
CRESUD NCN Class VIII due 2014	Unsecured	US$	Fixed		7.50	%		60		293,971			269,922			-
CRESUD NCN Class IX due 2014 (i)	Unsecured	Ps.	Floating	Badlar + 300 bps				161		-			106,606			-
CRESUD NCN Class X due 2014 (ii)	Unsecured	US$	Fixed		7.75	%		31.5		103,086			141,432			-
CRESUD NCN Class X – 2° tranche due 2014	Unsecured	US$	Fixed		7.75	%		30		98,779			-			-
CRESUD NCN Class XI due 2015 (iii)	Unsecured	Ps.	Floating	Badlar + 375 bps				80.5		80,011			79,908			-
Loan from Banco Ciudad	Unsecured	US$	Floating	Libor + 300 bps o 6% (the higher)				11.4		74,685			51,540			-
Loan from Banco de La Pampa	Unsecured	Ps.	Floating	Rate Survey PF 30-59 días				20		19,774			-			-
Loan from Banco de la Provincia de Buenos Aires	Unsecured	Ps.	Fixed		15.01	%		24		15,779			-			-
Finance lease obligations	Secured	US$	Fixed		7.50	%		-		92			49			-
Non-current borrowings										686,177			649,457			204,645
Current
CRESUD NCN Class III due 2012	Unsecured	Ps.	Floating	Badlar + 400 bps				35.6		-			-			36,575
CRESUD NCN Class IV due 2013	Unsecured	US$	Fixed		7.75	%		17.8		-			18,958			55,811
CRESUD NCN Class V due 2013	Unsecured	Ps.	Floating	Badlar + 375 bps				106.9		-			70,564			35,864
CRESUD NCN Class VI due 2013 (iv)	Unsecured	US$	Fixed		7.75	%		34.8		42,909			114,814			35,839
CRESUD NCN Class VII due 2014	Unsecured	US$	Floating	4%+ Prize Factor				2.1		10,198			9,260			(32	)
Embedded derivative on Cresud ON Series VII										70			64			203
CRESUD NCN Class VIII due 2014	Unsecured	US$	Fixed		7.5	%		60		5,470			4,966			-
CRESUD NCN Class IX due 2014 (v)	Unsecured	Ps.	Floating	Badlar + 300 bps				161		160,416			52,790			-
CRESUD NCN Class X due 2014 (vi)	Unsecured	US$	Fixed		7.75	%		31.5		50,896			(375	)		-
CRESUD NCN Class X – 2nd tranche due 2014	Unsecured	US$	Fixed		7.75	%		30		51,227			-			-
CRESUD NCN Series XI due 2015 (vii)	Unsecured	Ps.	Floating	Badlar + 375 bps				80.5		(10	)		(185	)		-
Loan from Banco Ciudad	Unsecured	US$	Floating	Libor + 300 bps o 6% (the higher)				15		1,619			811			-
Loan from Banco de La Pampa	Unsecured	Ps.	Floating	Rate Survey PF 30-59 días				20		831			-			-
Loan from Banco de la Provincia de Buenos Aires	Unsecured	Ps.	Fixed		15.01	%		24		8,031			-			-
Other borrowings.					-			-		68,888			119,716			115,168
Finance lease obligations	Secured	US$	Fixed		7.50	%		-		130			151			-
Bank overdrafts	Unsecured	Ps.	Fixed							71,777			13,016			262,292
Current borrowings										472,452			404,550			541,720
Total borrowings										1,158,629			1,054,007			746,365

(i)	It includes an outstanding balance of Ps. 2,160 and Ps. 3,840 with Emprendimiento Recoleta S.A. (“ERSA”) and Panamerican Mall S.A. (“PAMSA”), respectively as of June 30, 2012.

(ii)	It includes an outstanding balance of Ps. 2,958 with ERSA as of June 30, 2012 and it includes a balance of Ps. 2,143 with ERSA as of December 31, 2012.

(iii)

It includes an outstanding a balance of Ps. 7,560 and Ps. 13,440 with ERSA and PAMSA, respectively, as of June 30, 2012 and December 31, 2012.

(iv)	It includes an outstanding a balance of Ps. 5,659, Ps. 3,087 and Ps. 2,615 with ERSA, as of June 30, 2012, December 31, 2012 and July 1, 2011, respectively.

(v)	It includes an outstanding balance of Ps. 1,092 and Ps. 1,941 with ERSA and PAMSA, respectively, as of June 30, 2012. It includes Ps. 3,256 and Ps. 5,788 with ERSA and PAMSA, respectively, as of December 31, 2012.

(vi)	It includes an outstanding balance of Ps. 6 with ERSA as of June 30, 2012 and Ps. 1,078 as of December 31, 2012.

(vii)

It includes an outstanding balance of Ps. 29 and Ps. 52 with ERSA and PAMSA, respectively, as of June 30, 2012. It includes Ps. 39 and Ps. 69 with ERSA and PAMSA, respectively, as of December 31, 2012.

(viii)

It includes an outstanding balance of Ps. 7,706 with ERSA as of July 1, 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

21.

Taxation

The details of the provision for the Company’s income tax were as follows:

	December 31, 2012		December 31, 2011
Deferred income tax		44,558		27,770
Income tax gain		-		(27	)
Income tax gain		44,558		27,743

The gross movement on the deferred income tax account was as follows:

	December 31, 2012			June 30, 2012
Beginning of period/year		61,025			112,764
Charged to the statement of income		(44,558	)		(51,739	)
End of period/year		16,467			61,025

The Company´s income tax expense charge differs from the theoretical amount that would arise using the weighted average tax rate applicable to Company´s profit before tax as follows:

	December 31, 2012			December 31, 2011
Tax calculated at the tax applicable tax rate in effect		(5,671	)		16,959
Tax effects of:
Income on equity investees, associates and joint ventures		54,935			15,397
Donations		(34	)		(297	)
Tax on personal assets		(1,991	)		(1,702	)
Shares sale		-			(2,201	)
Others		(2,681	)		(413	)
Income tax expense		44,558			27,743

22.

Dividends

Cash dividends for the year ended June 30, 2012 amounted to Ps. 120 million, which were approved at the annual general ordinary and extraordinary shareholders’ meeting on October 31, 2012.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

23.

Revenues

	December 31, 2012		December 31, 2011
Crops		165,509		151,511
Cattle		35,854		56,151
Milk		16,535		14,684
Supplies		6,806		642
Rentals		9,899		9,817
Agricultural Services		1,239		1,050
Total revenue		235,842		233,855

24.

Costs

	December 31, 2012		December 31, 2011
Crops		217,923		209,138
Cattle		61,123		80,691
Milk		34,072		27,823
Supplies		5,974		326
Agriculture services		1,394		612
Leases		2,378		241
Others costs		3,067		2,310
Total costs		325,931		321,141

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

25.	Expenses by nature

For the six-month period ended as of December 31, 2012:

	Costs
	Cost of agricultural sales and services		Cost of agriculture production		Other costs		General and administrative expenses		Selling expenses			Total
Salaries and social security expenses		214		14,178		1,868		15,690		1,482			33,432
Directors´ fees		-		-		-		1,485		-			1,485
Fees and payments for service		-		1,060		68		1,863		372			3,363
Changes in biological assets and agricultural produce		184,862		-		-		-		-			184,862
Export expenses		-		-		-		-		7,357			7,357
Leases and expenses		-		502		68		1,189		77			1,836
Maintenance and repairs		5		3,532		286		10		-			3,833
Depreciation and amortization		31		2,105		1,797		770		25			4,728
Other taxes, rates and contributions		4		2,885		241		840		7,127			11,097
Freights		-		3,752		24		6		24,100			27,882
Bank expenses		-		2		1		1,150		-			1,153
Supplies and labor		97		101,915		904		-		-			102,916
Public services and post		6		401		175		121		4			707
Travel expenses and stationery		-		1,957		340		1,723		118			4,138
Other personnel administrative expenses		4		1,266		78		738		53			2,139
Cleaning		-		91		3		77		7			178
Insurance		6		382		153		318		4			863
Security and surveillance		4		158		6		6		-			174
Communication		18		271		44		718		29			1,080
Advertising		-		-		2		-		573			575
Bank commissions and expenses		-		161		-		-		878			1,039
Doubtful accounts		-		-		-		-		9			9
Recovery of impairment of receivables		-		-		-		-		(66	)		(66	)
Packaging and shipping		-		-		-		-		5,884			5,884
Others		-		-		4		1		-			5
Total expenses by nature		185,251		134,618		6,062		26,705		48,033			400,669

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

25.	Expenses by nature (Continued)

For the six-month period ended as of December 31, 2011:

	Costs
	Cost of agricultural sales and services		Cost of agriculture production		Other costs		General and administrative expenses		Selling expenses			Total
Salaries and social security expenses		317		10,518		1,095		14,409		1,430			27,769
Directors´ fees		-		-		-		1,081		-			1,081
Fees and payments for service		-		993		119		2,138		274			3,524
Changes in biological assets and agricultural produce		193,382		-		-		-		-			193,382
Export expenses		-		-		-		-		575			575
Leases and expenses		-		364		74		1,161		110			1,709
Services hired		-		473		-		-		-			473
Maintenance and repairs		32		2,332		10		9		1			2,384
Depreciation and amortization		31		1,883		1,190		660		42			3,806
Taxes, rates and contributions		-		1,676		3		103		6,394			8,176
Freights		1		3,426		12		4		23,308			26,751
Bank expenses		-		-		-		587		-			587
Supplies and labor		-		98,847		220		-		-			99,067
Public services and post		21		326		24		51		3			425
Travel expenses and stationery		1		1,330		262		1,091		288			2,972
Other personnel administrative expenses		4		923		94		675		47			1,743
Cleaning		-		73		1		56		8			138
Insurance		17		311		15		231		12			586
Security and surveillance		2		124		1		24		-			151
Communication		28		386		21		655		33			1,123
Advertising		-		-		-		-		437			437
Bank commissions and expenses		-		-		-		-		984			984
Recovery of impairment of receivables		-		-		-		-		(35	)		(35	)
Packaging and shipping		-		-		-		-		4,094			4,094
Others		1		156		22		-		1			180
Total expenses by nature		193,837		124,141		3,163		22,935		38,006			382,082

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

26.	Employee costs

	December 31, 2012		December 31, 2011
Wages, salaries, bonuses and social security cost		32,271		26,655
Other expenses and benefits		2,139		1,743
Share-based compensation		887		807
Pension costs – defined contribution plan		274		307
		35,571		29,512

27.	Other operating expenses, net

	December 31, 2012			December 31, 2011
Project analysis and assessment		(220	)		(57	)
Management fee		679			535
Loss from commodity derivative financial instruments		(1,986	)		(1,073	)
Gain from disposal of property, plant and equipment		149			15
Tax on shareholders personal assets		(5,690	)		(4,863	)
Donations		(97	)		(850	)
Contingencies		(394	)		(267	)
Others		257			180
Total other operating expenses, net		(7,302	)		(6,380	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

28.	Financial results, net

	December 31, 2012			December 31, 2011
Finance income:
- Interest income		6,127			5,774
- Foreign exchange gains		11,002			6,962
- Gain from interest rate/foreign exchange rate derivative financial instruments (except commodities)		43			955
- Fair value gains of financial assets at fair value through profit or loss		135			-
Finance income		17,307			13,691

Finance costs:
- Interest expense		(58,898	)		(46,701	)
- Foreign exchange losses		(63,291	)		(31,301	)
- Fair value losses on embedded derivatives relating to borrowings		(6	)		-
- Fair value losses of financial assets at fair value through profit or loss		-			(88	)
- Tax on bank account operations		(5,599	)		(5,236	)
- Others finance costs		(1,545	)		(1,472	)
Finance costs		(129,339	)		(84,798	)
Total financial results, net		(112,032	)		(71,107	)

29.	Shared-based payments

See Note 25, Exhibit 1 included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions

The following is a summary of the balances and transactions with related parties as of December 31, 2012:

Related party	Ref.	Description of transaction	Trade and other receivables Non-current	Trade and other receivables Current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Agropecuaria Acres del Sud S.A.	(6)	Loans	13,543	-	-	-	-
		Reimbursement of expenses	-	39	-	-	-
		Fees	-	1,919	-	-	-
Ombú Agropecuaria S.A.	(6)	Loans	25,463	-	-	-	-
Ombú Agropecuaria S.A.	(6)	Fees	-	516	-	-	-
Yuchán Agropecuaria S.A.	(6)	Loans	13,626	-	-	-	-
Yuchán Agropecuaria S.A.	(6)	Fees	-	516	-	-	-
Yatay Agropecuaria S.A.	(6)	Loans	12,050	-	-	-	-
Yatay Agropecuaria S.A.	(6)	Fees	-	516	-	-	-
Cresca S.A.	(7)	Reimbursement of expenses	-	40	(100)		-
Cresca S.A.	(7)	Fees	-	1,091	-	-	-
FyO Trading S.A.	(6)	Reimbursement of expenses	-	1	-	-	-
Futuros y Opciones.Com S.A.	(6)	Brokerage	-	12,157	-	-	-
Futuros y Opciones.Com S.A.	(6)	Reimbursement of expenses	-	17	(49)	-	-
Agro-Uranga S.A.	(4)	Dividends receivable	-	701	-	-	-
Agro-Uranga S.A.	(4)	Sales of inventories	-	1,414	-	-	-
Directors		Reimbursement of expenses	-	79	-	-	-
		Advances	-	555	-	-	-
		Fees	-	-	(821)	-	-
		Others	-	-	(26)	-	-
Consultores Asset Management S.A.	(1)	Reimbursement of expenses	-	94	(8)	-	-
Consultores Asset Management S.A.	(1)	Management fees	-	-	(5,071)	-	-
Estudio Zang, Bergel & Viñes	(2)	Advances	-	176	-	-	-
Estudio Zang, Bergel & Viñes	(2)	Legal services	-	-	(493)	-	-
Fundación IRSA	(3)	Donations	-	-	(1,073)	-	-
Inversiones Financieras del Sur S.A.	(5)	Loans	-	30,813	(44,474)	-	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

Related party	Ref.	Description of transaction	Trade and other receivables Non-current	Trade and other receivables Current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Banco Hipotecario S.A.	(4)	Others	-	-	(115)	-	-
Cyrsa S.A.	(7)	Reimbursement of expenses	-	807	(61)	-	-
Alto Palermo S.A.	(6)	Reimbursement of expenses	-	434	(3,185)	-	-
Alto Palermo S.A.	(6)	Shared services	-	33,997	(9,671)	-	-
Agrotech S.A.	(6)	Reimbursement of expenses	-	65	-	-	-
Northagro S.A.	(6)	Reimbursement of expenses	-	213	-	-	-
Northagro S.A.	(6)	Loans	-	317	-	-	-
Pluriagro S.A.	(6)	Reimbursement of expenses	-	213	-	-	-
Pluriagro S.A.	(6)	Loans	-	317	-	-	-
Agro Managers S.A.	(4)	Others	-	70	-	-	-
Fibesa S.A.	(6)	Reimbursement of expenses	-	10	(9)	-	-
IRSA Internacional LLC	(6)	Reimbursement of expenses	-	698	-	-	-
IRSA Inversiones y Representaciones S.A.	(6)	Reimbursement of expenses	-	207	(2,748)	-	-
		Shared services	-	11,949	(4,093)	-	-
		Dividends received	-	903	-	-	-
		Loans	-	-	(171)	-	-
		Sale of property	-	-	(701)	-	-
Cactus Argentina S.A.	(6)	Sale of goods and services	-	184	-	-	-
		Purchase of goods	-	-	(115)	-	-
		Reimbursement of expenses	-	221	(8)	-	-
		Leases	-	8	-	-	-
		Loans	-	1,514	-	-	-
		Fees	-	37	-	-	-
		Others	-	80	(147)	-	-
BrasilAgro	(6)	Reimbursement of expenses	-	94	-	-	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	Sale of goods and services	-	53	-	-	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	Reimbursement of expenses	-	8	(7)	-	-
		Others	-	60	-	-	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

Related party	Ref.	Description of transaction	Trade and other receivables Non-current	Trade and other receivables Current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Emprendimiento Recoleta S.A.	(6)	Reimbursement of expenses	-	-	(7)	-	-
Emprendimiento Recoleta S.A.	(6)	Non-convertible notes	-	-	-	(9,703)	(7,460)
Nuevas Fronteras S.A.	(6)	Purchase of goods / taking out services	-	-	(23)	-	-
Panamerican Mall S.A.	(6)	Reimbursement of expenses	-	14	(36)	-	-
Panamerican Mall S.A.	(6)	Non-convertible notes	-	-	-	(13,440)	(5,857)
Helmir S.A.	(6)	Loans	4,199	30,547	-	-	-
Austral Gold S.A.		Reimbursement of expenses	1	2	(1)	-	-
Nuevo Puerto Santa Fe S.A.		Reimbursement of expenses	-	-	(1)	-	-
Total			68,882	133,666	(73,212)	(23,143)	(13,317)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

The following is a summary of the balances and transactions with related parties as of June 30, 2012:

Related party	Ref.	Description of transaction	Trade and other receivables Non-current	Trade and other receivables Current	Trade and other payables Current	Borrowings Non-current	Borrowings Non-current
Consultores Asset Management S.A. (CAMSA)	(1)	Reimbursement of expenses	-	86	-	-	-
Consultores Asset Management S.A. (CAMSA)	(1)	Management fees	-	-	(2,991)	-	-
Estudio Zang, Bergel & Viñes	(2)	Advances	-	1	-	-	-
Estudio Zang, Bergel & Viñes	(2)	Legal services	-	693	(1,033)	-	-
Agropecuaria Acres del Sud S.A.	(6)	Loans	12,019	-	-	-	-
		Reimbursement of expenses	-	29	-	-	-
		Fees	-	1,919	-	-	-
Ombú Agropecuaria S.A.	(6)	Loans	22,595	-	-	-	-
Ombú Agropecuaria S.A.	(6)	Fees	-	353	-	-	-
Yuchán Agropecuaria S.A.	(6)	Loans	12,091	-	-	-	-
Yuchán Agropecuaria S.A.	(6)	Fees	-	353	-	-	-
Yatay Agropecuaria S.A.	(6)	Loans	10,693	-	-	-	-
Yatay Agropecuaria S.A.	(6)	Fees	-	353	-	-	-
Cresca S.A.	(7)	Reimbursement of expenses	-	24	(28)	-	-
Cresca S.A.	(7)	Fees	-	406	-	-	-
FyO Trading S.A.	(6)	Reimbursement of expenses	-	6	-	-	-
Futuros y Opciones.Com S.A.	(6)	Brokerage	-	4,877	-	-	-
		Non-brokerage	-	-	(53)	-	-
		Reimbursement of expenses	-	-	(84)	-	-
Fundación IRSA	(3)	Donations	-	-	(1,073)	-	-
Fibesa S.A.	(6)	Reimbursement of expenses	-	-	(10)	-	-
IRSA Internacional LLC	(6)	Reimbursement of expenses	-	416	-	-	-
IRSA Inversiones y Representaciones S.A.	(6)	Reimbursement of expenses	-	79	(2,967)	-	-
		Shared services	-	15,593	(4,820)	-	-
		Dividends receivable	-	7,071	-	-	-
		Office leases	-	-	(496)	-	-
		Sale of property	-	-	(701)	-	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

Related party	Ref.	Description of transaction	Trade and other receivables Non-current	Trade and other receivables Current	Trade and other payables Current	Borrowings Non-current	Borrowings Current
Agro-Uranga S.A.	(4)	Sales of inventories	-	533	-	-	-
Agro-Uranga S.A.	(4)	Dividends receivable	-	46	-	-	-
Cyrsa S.A.	(7)	Reimbursement of expenses	-	743	(46)	-	-
Alto Palermo S.A.	(6)	Reimbursement of expenses	-	439	(2,173)	-	-
Alto Palermo S.A.	(6)	Shared services	-	37,827	(10,383)	-	-
Directors		Reimbursement of expenses	-	1,776	-	-	-
		Guarantee deposits	-	-	(476)	-	-
		Guarantee deposits	-	-	-	-	-
Inversiones Financieras del Sur S.A.	(5)	Loans	-	9,081	-	-	-
Inversiones Financieras del Sur S.A.	(5)	Others	-	3,674	(3,974)	-	-
Tarshop S.A.	(4)	Shared services	-	98	(59)	-	-
Agrotech S.A.	(6)	Reimbursement of expenses	-	56	-	-	-
Northagro S.A.	(6)	Reimbursement of expenses	-	155	-	-	-
Northagro S.A.	(6)	Loans	-	317	-	-	-
Pluriagro S.A.	(6)	Reimbursement of expenses	-	155	-	-	-
Pluriagro S.A.	(6)	Loans	-	317	-	-	-
Agro Managers S.A.	(4)	Others	-	20	-	-	-
Cactus Argentina S.A.	(6)	Sale of goods and services	-	10	-	-	-
		Purchase of goods	-	-	(465)	-	-
		Reimbursement of expenses	-	140	-	-	-
		Fees	-	27	-	-	-
		Loans	-	1,575	-	-	-
		Others	-	-	(88)	-	-
Brasil Agro	(6)	Reimbursement of expenses	-	104	-	-	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	Sale of fixed asstes and services	-	4	-	-	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	Reimbursement of expenses	-	8	-	-	-
Emprendimiento Recoleta S.A.	(6)	Reimbursement of expenses	-	-	(7)	-	-
Emprendimiento Recoleta S.A.	(6)	Non-convertible notes	-	-	-	(12,678)	(6,786)
Nuevas Fronteras S.A.	(6)	Reimbursement of expenses	-	-	(30)	-	-
Panamerican Mall S.A.	(6)	Reimbursement of expenses	-	-	(62)	-	-
Panamerican Mall S.A.	(6)	Non-convertible notes	-	-	-	(17,280)	(1,993)
Helmir S.A.	(6)	Loans	32,606	27,628	-	-	-
Brasil-Agro	(6)	Advances	-	-	(9)	-	-
Total			90,004	116,992	(32,028)	(29,958)	(8,779)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the six-month period ended as of December 31, 2012:

Related party	Ref.	Leases	Fees	Sale of goods and services	Profit from shared services and expenses	Cattle expenses	Legal services	Interest gain /(loss)	Others
IRSA Inversiones y Representaciones S.A.	(6)	-	-	-	11,852	-	-	-	-
Emprendimiento Recoleta S.A.	(6)	-	-	-	-	-	-	(1,216)	-
Cactus Argentina S.A.	(6)	13	(48)	182	-	(316)	-	53	80
Futuros y Opciones.Com S.A.	(6)	-	-	-	-	-	-	-	(4,669)
Alto Palermo S.A.	(6)	-	-	-	33,309	-	-	-	-
Panamerican Mall S.A.	(6)	-	-	-	-	-	-	(1,725)	-
CAMSA		-	(6,751)	-	-	-	-	-	-
Estudio Zang, Bergel & Viñes	(2)	-	-	-	-	-	(360)	-	-
Agro-Uranga S.A.	(5)	-	-	2,652	-	-	-	-	-
Directors		-	(821)	-	-	-	-	-	-
Inversiones Financieras del Sur S.A.	(5)	-	-	-	-	-	-	1,665	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	-	-	1,277	-	-	-	-	11
Helmir S.A.	(6)	-	-	-	-	-	-	725	-
Agropecuaria Acres del Sud S.A.	(6)	-	-	-	-	-	-	638	-
Ombú Agropecuaria S.A.	(6)	-	163	-	-	-	-	1,249	-
Yuchán Agropecuaria S.A.	(6)	-	163	-	-	-	-	673	-
Yatay Agropecuaria S.A.	(6)	-	163	-	-	-	-	593	-
Cresca S.A.	(7)	-	631	-	-	-	-	-	-
Total		13	(6,500)	4,111	45,161	(316)	(360)	2,655	(4,578)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30. Related party transactions (Continued)

The following is a summary of the transactions with related parties for the six-month period ended as of December 31, 2011:

Related party	Ref.	Leases	Fees	Sale of goods and services	Profit from shared services and expenses	Cattle expenses	Interest gain / (loss)	Others
Consultores Assets Managements S.A. (CAMSA)	(1)	-	(4,612)	-	-	-	-	-
IRSA Inversiones y Representaciones S.A.	(6)	-	-	-	10,620	-	(1,481)	(385)
Tarshop S.A.	(4)	-	-	-	150	-	-	-
Emprendimiento Recoleta S.A.	(6)	-	-	-	-	-	(400)	-
Cactus Argentina S.A.	(6)	-	48	-	-	(7,461)	857	11
Futuros y Opciones.com S.A.	(6)	-	-	-	-	-	(54)	(12)
Alto Palermo S.A.	(6)	-	-	-	21,861	-	-	-
Estudio Zang, Bergel & Viñes	(2)	-	(315)	-	-	-	-	-
Agro-Uranga S.A.	(4)	-	-	2,059	-	-	-	-
Directors		-	(542)	-	-	-	-	-
Inversiones Financieras del Sur S.A.	(5)	-	-	-	-	-	471	-
Exportaciones Agroindustriales Argentinas S.A.	(6)	-	-	1,808	-	-	-	-
Helmir S.A.	(6)	-	-	-	-	-	270	-
Cresca S.A.	(7)	-	487	-	-	-	1	-
Agropecuaria Acres del Sud S.A.	(6)	-	1,058	-	-	-	736	-
Agrotech	(6)	-	-	-	-	-	574	-
Ombú Agropecuaria S.A.	(6)	-	-	-	-	-	1,350	-
Yuchán Agropecuaria S.A.	(6)	-	-	-	-	-	725	-
Yatay Agropecuaria S.A.	(6)	-	-	-	-	-	640	-
Total		-	(3,876)	3,867	32,631	(7,461)	3,689	(386)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Related party transactions (Continued)

(1)

The shareholders of CAMSA are Eduardo S. Elsztain, Company’s shareholder and Chairman of the Board, and Saúl Zang, Vice-Chairman of the Board. CAMSA is an advisory and consulting firm which provides advisory services to the Company. Under the agreement dated November 1994, CAMSA provides the Group with services such as (i) advisory with respect to capital investments in all aspects of agricultural operations, including, among others, sales, marketing, distribution, financing, investments, technology and business proposals; (ii) acts on the Company’s behalf in such transactions, negotiating the prices, conditions, and other terms of each operation; and (iii) advisory regarding securities investments with respect to such operations. The agreement expressly provides that CAMSA may not provide advisory services with respect to transactions that are entirely related to real estate. The Company pays CAMSA an annual fee equal to 10% of the Company’s annual net income after taxes. Under the agreement, the Company is required to reimburse CAMSA normal expenses incurred in performing the services. The agreement is subject to termination by either party upon not less than 60 days prior written notice. If the Group terminates the agreement without cause, the Company must pay CAMSA twice the average of the amounts of the management fee paid for the two preceding fiscal years.

(2)	The Company contracts legal services from Estudio Zang, Bergel & Viñes. One of the partners of the law firm, Saúl Zang is First Vice-Chairman of the Company.

(3)

(4)	Company’s associate.

(5)	Mr. Eduardo S. Elsztain is the president of (i) IFIS Limited (IFIS), a company incorporated under the laws of Bermuda and (ii) IFISA, a company incorporated under the laws of Uruguay, which is 100% owned by IFIS. Mr. Elsztain is the beneficial owner of 30.90% of IFIS capital stock.

The Company entered into a securities loan agreement with IFISA, which granted 4,053,942 Global Depositary Shares, representing 10 common shares with a face value of Ps. 1 per share of IRSA. This loan does not imply the transfer of any politic nor economic right related to the values, which will be held by Cresud. Regarding voting rights, the parties agreed that the Company will grant a power of attorney to IFISA with the respective voting instructions. In respect to dividends, IFISA will transfer the funds to Cresud. The loan accrues interest at an annual rate equivalent to 3 month LIBOR, plus 50 basis points, and is due on June 30, 2013.

In addition, on June 18, 2012, the Company entered into a credit facility agreement with IFISA for up to US$ 6 million. The facility accrues interest at an annual rate of 7.75% and is due on November 24, 2012. The parties agree to extend the credit facility term until November 24, 2013 at an annual interest rate of 5.5%.

(6)	Entity controlled by the Company.

(7)	Company’s joint venture.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

31.	Significant events

·	Ordinary and Extraordinary Shareholders’ meeting

On October 31, 2012, the Company’s Annual Shareholders’ Meeting corresponding to fiscal year ended June 30, 2012 was held in Bolívar 108, 1st floor, Autonomous City of Buenos Aires, in order to consider and approve the following, among other things: (i) the reallocation in the statement of changes in shareholders’ equity related to the recognition of deferred tax liabilities originated in the application of the adjustment for inflation against retained earnings with the view of implementing the IFRS. Because of such reallocation, the amount of Ps. 99,788 was allocated to the “Inflation Adjustment to Capital Stock” account, whose balance declined from Ps. 164,561 to Ps. 64,773 and the amount of Ps. 1,005 to the “Inflation adjustment of treasury stock” account, whose balance declined from Ps. 1,657 to Ps. 652. As a consequence of the previously mentioned reallocations, the “Retained Earnings” account balance increased from Ps. (29,017) to Ps. 71,776 (ii) the documentation provided for in Section 234, subsection 1 of the Act 19,550, corresponding to fiscal year ended as of June 30, 2012; (iii) Board of Directors’ and Supervisory Commission’s management; (iv) treatment and allocation of income for fiscal year ended June 30, 2012, the approval of the payment of cash dividends of Ps. 120,000; (v) Board of Directors’ fees for an amount of Ps. 5,227; (vi) determination of the number and election of the Board of Directors’ regular and alternate members, as well as those of the Supervisory Commission; (vii) the creation of a new Global Program for Issuing Simple Non-convertible notes (“the Program”), secured or unsecured or collateralized by third parties and for a maximum outstanding amount at any time of up to US$ 300,000,000 (or its equivalent in other currencies), in accordance with the provisions of the Non-convertible Notes Act and other amending and regulating provisions. Likewise, the Board of Directors was delegated the following: a) the approval of the terms and conditions of the Program, b) the powers to accept and/or make amendments and/or addendums to the related documentation, c) the approval and the signature of all contracts and documentation related to the creation of the Program and the issuance of each class and/or series of non-convertible notes under it, and d) the issuance of each class and/ series of non-convertible notes under the Program; including, for example, the definition of the time and the currency of issuance, the timescale, the method and conditions of payment, the interest rate and the allocations of funds, among others. Likewise, the Board of Directors was empowered to subdelegate the previously mentioned legal powers; (viii) the update of the shared-services contract report; (ix) the amendment of Section XVII of the Company’s by-laws in relation to remote Board meetings; (x) the delegation on the Company's Board of Directors of the implementation of the Incentives Plan and the approval of the final terms and conditions of the program and the Trust Contract; and (xi) the ratification of the prospectus for the spin-off-merger between the Company and Inversiones Ganaderas S.A. (“IGSA”) as of June 30, 2009 and of the actions of the Company’s and IGSA’s Boards of Directors and proxies in relation to such merger.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

32.	Negative working capital

At the end of the year, the Company carried a working capital deficit of Ps. 277,149 whose treatment is being considered by the Board of Directors and the respective Management.

33.	Subsequent events

Issuance of Non-Convertible Notes - Class XII and XII

On February 4, 2013, the Board of Directors approved the Pricing Supplement concerning the issue of Class XII and Class XIII under Series Six of simple Corporate Notes (non-convertible into shares) under the Program approved at the Shareholder’s Meeting for up to US$ 300 million. On February 8, 2013, the Argentine Securities and Exchange Commission approved the Pricing Supplement and posted the related Subscription Notice. The dissemination period begins on February 13, 2013 and ends on February 18, 2013 and the tender will take place on February 19, 2013, in accordance with the Argentine Securities and Exchange Commission's rules.

Below is a detail of the main features of the Corporate Notes:

- Class XII to be issued in Argentine Pesos for a principal amount of up to Ps. 125 million, accruing interest at Badlar rate plus a margin to be tendered. Interest shall be paid on a quarterly basis. Principal will be repaid in 3 installments on the 15th, 18th and 21st months from the issue date

- Class XIII to be issued in US dollars (but to be paid in and settled in Argentine Pesos, at the applicable exchange rate) for a principal amount of up to the equivalent to Ps. 125 million, accruing interest at fixed rate. Interest will be paid on a quarterly basis. Principal will be paid in 2 installments on the 24th and the 27th months from the issue date

The total amount of the series may be increased up to the total authorized amount of Ps. 500 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

1.	Specific and significant legal systems that imply contingent lapsing or rebirth of benefits envisaged by such provisions.

None.

Significant changes in the Company´s activities or other similar circumstances that occurred during the fiscal years included in the financial statements, which affect their comparison with financial statements filed in previous fiscal years, or that could affect those to be filed in future fiscal years.

Are detailed in the Business Review.

3.	Receivables and liabilities by maturity date.

Items		Falling due (Point 3.a.)		Without term (Point 3.b.)		Without term (Point 3.b.)		To be due (Point 3.c.)
		12.31.12		Current		Non current		Up to 3 months		From 3 to 6 months		From 6 to 9 months		From 9 to 12 months		From 1 to 2 years		From 2 to 3 years		From 3 to 4 years		From 4 years on		Total
Accounts receivables, net	Trade and other receivables		-		34,547		76,807		133,570		30,545		634		32,450		68,662		-		-		-		377,215
	Total		-		34,547		76,807		133,570		30,545		634		32,450		68,662		-		-		-		377,215
Liabilities	Trade and other payables		-		-		-		240,848		-		-		-		663		305		305		408		242,529
	Borrowings		-		-		-		135,799		125,743		52,936		157,974		560,673		44,995		10,299		70,210		1,158,629
	Payroll and social security liabilities		-		-		-		14,654		-		10,643		-		-		-		-		-		25,297
	Provisions		-		12		1,571		-		-		-		-		-		-		-		-		1,583
	Taxation		-		-		16,467		-		-		-		-		-		-		-		-		16,467
	Total		-		12		18,038		391,301		125,743		63,579		157,974		561,336		45,300		10,604		70,618		1,444,505

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.a.

Breakdown of accounts receivable and liabilities by currency and maturity.

		Current						Non-current						Totals
Items		Local currency		Foreign currency		Total		Local currency		Foreign currency		Total		Local currency		Foreign currency		Total
Accounts receivables, net	Trade and other receivables, net		161,271		70,475		231,746		76,587		68,882		145,469		237,858		139,357		377,215
	Total		161,271		70,475		231,746		76,587		68,882		145,469		237,858		139,357		377,215
Liabilities	Trade and other payables		240,848		-		240,848		1,681		-		1,681		242,529		-		242,529
	Borrowings		241,044		231,408		472,452		115,564		570,613		686,177		356,608		802,021		1,158,629
	Payroll and social security liabilities		25,297		-		25,297		-		-		-		25,297		-		25,297
	Provisions		12		-		12		1,571		-		1,571		1,583		-		1,583
	Taxation		-		-		-		16,467		-		16,467		16,467		-		16,467
	Total		507,201		231,408		738,609		135,283		570,613		705,896		642,484		802,021		1,444,505

4.b.

Breakdown of accounts receivable and liabilities by adjustment clause.

On December 31, 2012 there are no receivable and liabilities subject to adjustment clause.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.c.	Breakdown of accounts receivable and liabilities by interest clause.

		Current								Non-current								Accruing interest
		Accruing interest				Non-accruing interest		Subtotal		Accruing interest				Non-accruing interest		Subtotal						Non Accruing interest		Total
Description		Fixed rate		Floating rate						Fixed rate		Floating rate						Fixed rate		Floating rate
Accounts receivable, net	Trade and other receivables, net		62,678		98		168,97		231,746		4,199		64,683		76,587		145,469		66,877		64,781		245,557		377,215
	Total		62,678		98		168,97		231,746		4,199		64,683		76,587		145,469		66,877		64,781		245,557		377,215
Liabilities	Trade and other payables		-		-		240,848		240,848		-		-		1,681		1,681		-		-		242,529		242,529
	Borrowings		309,467		162,985		-		472,452		511,615		174,562		-		686,177		821,081		337,548		-		1,158,629
	Payroll and social security liabilities		-		-		25,297		25,297		-		-		-		-		-		-		25,297		25,297
	Provisions		-		-		12		12		-		-		1,571		1,571		-		-		1,583		1,583
	Taxation		-		-		-		-		-		-		16,467		16,467		-		-		16,467		16,467
	Total		309,467		162,985		266,157		738,609		511,615		174,562		19,719		705,896		821,081		337,548		285,876		1,444,505

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

5.	Related parties.

a.	Interest in related parties.

Name of the entity	Place of business / country of incorporation	Principal activity (*)	% of ownership interest held by the Group
Direct controlling interest:
Agropecuaria Acres del Sud S.A.	Bolivia	Agricultural	100.00%
Agrotech S.A.	Argentina	Investment	100.00%
BrasilAgro-Companhía Brasileira de Propiedades Agrícolas (1)	Brazil	Agricultural	39.64%
Cactus Argentina S.A.	Argentina	Agro-industrial	94.99%
Futuros y Opciones.Com S.A.	Argentina	Brokerage	65.85%
Helmir S.A.	Uruguay	Investment	100.00%
IRSA	Argentina	Real estate	64.50%
Northagro S.A.	Argentina	Investment	100.00%
Ombú Agropecuaria S.A.	Bolivia	Agricultural	100.00%
Pluriagro S.A.	Argentina	Investment	100.00%
Yatay Agropecuaria S.A.	Bolivia	Agricultural	100.00%
Yuchán Agropecuaria S.A.	Bolivia	Agricultural	100.00%
Interest indirectly held through a direct controlling interest in IRSA:
APSA	Argentina	Real estate	59.99%
Apsamedia S.A.	Argentina	Consumer financing (**) and advertising	59.99%
Emprendimiento Recoleta S.A.	Argentina	Real estate	32.20%
Fibesa S.A.	Argentina	Real estate	59.99%
Hoteles Argentinos S.A.	Argentina	Hotel	50.58%
I Madison LLC	United States	Investment	63.22%
Inversora Bolívar S.A.	Argentina	Investment	63.22%
IRSA Development LP	United States	Investment	63.22%
IRSA Internacional LLC	United States	Investment	63.22%
Jiwin S.A.	Uruguay	Investment	63.22%
Liveck S.A.	Uruguay	Investment	63.22%
Llao Llao Resorts S.A. (2)	Argentina	Hotel	31.61%
Nuevas Fronteras S.A.	Argentina	Hotel	48.26%
Palermo Invest S.A.	Argentina	Investment	63.22%
Real Estate Investment Group LP	Bermuda	Investment	40.47%
Real Estate Investment Group II LP	Bermuda	Investment	50.92%
Real Estate Strategies LP	Bermuda	Investment	63.22%
Ritelco S.A.	Uruguay	Investment	63.22%
Shopping Neuquén S.A.	Argentina	Real estate	58.87%
Solares de Santa María S.A.	Argentina	Real estate	63.22%
Torodur S.A.	Uruguay	Investment	59.99%
Tyrus S.A.	Uruguay	Investment	63.22%
Unicity S.A.	Argentina	Investment	63.22%
Vista al Muelle S.A.	Uruguay	Real estate	56.90%
Vanker Hills S.A.	Uruguay	Investment	63.22%
Zetol S.A.	Uruguay	Real estate	56.90%

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

Name of the entity	Place of business / country of incorporation	Principal activity (*)	% of ownership interest held by the Group
Interest indirectly held through controlling interest in BrasilAgro:
Araucária Ltda.	Brazil	Agricultural	39.64%
Cajueiro Ltda.	Brazil	Agricultural	39.64%
Ceibo Ltda.	Brazil	Agricultural	39.64%
Cremaq Ltda.	Brazil	Agricultural	39.64%
Engenho de Maracajú Ltda.	Brazil	Agricultural	39.64%
Flamboyant Ltda.	Brazil	Agricultural	39.64%
Jaborandi Agrícola Ltda.	Brazil	Agricultural	39.64%
Jaborandi Propriedades Agrícolas S.A.	Brazil	Agricultural	39.64%
Mogno Ltda.	Brazil	Agricultural	39.64%
Interest indirectly held through a direct controlling interest in Cactus S.A.:
Agroindustriales Argentinas S.A.	Argentina	Agro-industrial	100%
Interest indirectly held through a direct controlling interest in Futuros y Opciones.Com. S.A.:
FyO Trading S.A.	Argentina	Brokerage	65.66%

(*) All Companies whose principal activity is “Investment” do not have significant assets and liabilities other than their respective interest holdings in operating entities.

(1) The Group has consolidated the investment in BrasilAgro-Companhía Brasileira de Propiedades Agricolas (“BrasilAgro”) considering their percentage of ownership interest held together with the potential voting rights under the warrants and the Company's rights under the Shareholders' Agreement. See Note 6 for further information regarding to BrasilAgro.

(2) The Group has consolidated the investment in Llao Llao Resorts S.A. considering their percentage of ownership interest held together with the Company's participation in the making decisions.

(**) Residual activities.

b.	Related parties debit / credit balances. See Note 29.

6.	Loans to directors.

See Note 29.

7.	Inventories.

The Company conducts physical inventories once a fiscal year in each property, covering all the assets under such account. There is no relevant immobilization of inventory.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Condensed Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

8.	Current values.

See Note 1 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

9.	Appraisal revaluation of property, plant and equipment.

None.

10.	Obsolete unused property, plant and equipment.

None.

11.	Equity interest in other companies in excess of that permitted by section 31 of law N° 19,550.

None.

12.	Recovery values.

See Note 1 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

13.	Insurances.

The types of insurance used by the company were the following:

Insured property	Risk covered	Amount insured Ps.		Book value Ps.
Buildings, machinery, silos, installation and furniture and equipment	Theft, fire and technical insurance		224,705		59,761
Vehicles	Third parties, theft, fire and civil liability		6,680		3,786

14.	Allowances and provisions that, taken individually or as a whole, exceed 2 % of the shareholder´s equity.

None.

15.	Contingent situations at the date of the financial statements which probabilities are not remote and the effects on the Company´s financial position have not been recognized.

Not applicable.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations (Continued)

Unaudited Consolidated Interim Statement of Financial Position as of December 31, 2012

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

16.	Status of the proceedings leading to the capitalization of irrevocable contributions towards future subscriptions.

Not applicable.

17.	Unpaid accumulated dividends on preferred shares.

None.

18.	Restrictions on distributions of profits.

See Note 26 of Exhibit I included in the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2012 and 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria
BUSINESS HIGHLIGHTS

Comparative Shareholders’ Equity Structure

	December 31, 2012		June 30, 2012		July 1,2011
Non-Current Assets		9,149,077		8,541,030		8,404,961
Current Assets		2,427,473		1,783,860		2,038,475

Non-Current Liabilities		4,150,342		3,615,153		2,997,485
Current Liabilities		2,581,918		2,018,226		2,235,873

Minority interest		2,291,320		2,132,648		2,480,379
Shareholders' Equity		4,844,290		4,691,511		5,210,078

(1)	Amounts have not been revised to account for the adjustments to retained earnings following the recognition of deferred income taxes as indicated in Note 2.r to the Unaudited Financial Statements.

Comparative Income Structure

	December 31, 2012			December 31, 2011
Operating result		556,924			364,029
Financial results, net		(363,422	)		(328,134	)
Share of loss of associates and joint ventures		12,546			10,066
Management agreement fees		(6,751	)		(4,612	)
Profit Before Income Tax		206,048			45,961
Income tax expense		(29,330	)		(22,640	)
Profit for the period		176,718			23,321

Attributable to:
Equity holders of the parent		60,760			(20,711	)
Non-controlling interest		115,958			44,032

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria
BUSINESS HIGHLIGHTS

Production volume

	Three-month period December 31, 2012		Accumulated July 1, 2012 to December 31, 2012
Beef Cattle (in tons)		2,319		3,953
Butyraceous (in tons)		206		393
Crops (in tons)		947,855		1,004,048

Sales volume

	Three-month period December 31, 2012		Accumulated July 1, 2012 to December 31, 2012
Beef Cattle (in tons)		2,116		4,579
Butyraceous (in tons)		206		393
Crops (in tons)		1,090,203		1,140,556

Local Market

	Three-month period December 31, 2012		Accumulated July 1, 2012 to December 31, 2012
Beef Cattle (in tons)		2,116		4,579
Butyraceous (in tons)		206		393
Crops (in tons)		1,064,142		1,113,781

Exports

	Three-month period December 31, 2012		Accumulated July 1, 2012 to December 31, 2012
Beef Cattle (in tons)		-		-
Butyraceous (in tons)		-		-
Crops (in tons)		26,062		26,775

Limited Review Report

To the Shareholders, President and Board of Directors of

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

CUIT: 30-50930070-0

Legal address: Moreno 877 - 23° floor - Autonomous City of Buenos Aires

We have reviewed the accompanying unaudited condensed interim separate statement of financial position of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria as of December 31, 2012, and the related unaudited condensed interim separate statements of income, unaudited condensed interim separate statements of comprehensive income for the six and three month periods ended December 31, 2012, and unaudited condensed interim separate statements of changes of shareholders’ equity and unaudited condensed interim separate statements of cash flows for the six-month period ended December 31, 2012 and selected explanatory notes. The balances and other information corresponding to the fiscal year ended June 30, 2012 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to these financial statements.

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with professional accounting standards of Technical Pronouncement No. 26 of the Argentine Federation of Professional Councils in Economic Sciences added by the National Securities Commission to its regulations. Those standards differ from the International Financial Reporting Standards and, especially, from the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34) approved by the International Accounting Standard Board and used for the preparation of the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria with its subsidiary as to the aspects mentioned in note 2.1 to the unaudited condensed interim separate financial statements attached. Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph 3.

Limited Review Report (Continued)

As mentioned in Note 2.1 to the unaudited condensed interim separate financial statements, these unaudited condensed interim separate financial statements have been prepared in accordance with Technical Pronouncement No. 26 of the Argentine Federation of Professional Councils in Economic Sciences, which differ from the International Financial Reporting Standards, and especially, from the International Accounting Standard No 34 used in the preparation of the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria with its subsidiary as to the aspects mentioned in note 2.1 to the unaudited condensed interim separate financial statements attached. The fiscal year ended June 30, 2013 will be the first year of application of IFRS. The adjustments and other effects of the transition to IFRS are presented in Note 2.3 to these unaudited condensed interim separate financial statements. The amounts included in the reconciliations shown in Note 2.3 are subject to change as a consequence of potential changes in IFRS which may occur until June 30, 2013, and should only be considered as final upon issuance of the annual financial statements for the fiscal year ended June 30, 2013.

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim separate financial statements have not been prepared in all material respects in accordance with Technical Pronouncement No. 26 of the FACPCE for separate financial statements of a parent company.

6.	In accordance with current regulations, we hereby inform that :

the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are recorded in the "Inventory and Balance Sheet Book" and carried in all formal respects in conformity with legal requirements, and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and the corresponding resolutions of the National Securities Commission;

b)	the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal respects in accordance with applicable legal provisions;

c)	we have read the Additional Information to the notes to the unaudited condensed interim separate financial statements required by Article 68 of the Buenos Aires Stock Exchange Regulations, on which, as regards those matters that are within our competence, we have no observations to make;

d)	at December 31, 2012, the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria owed in favor of the Argentine Integrated Pension System which arises from accounting records and submissions amounted to Ps. 3,509,636, which was not callable at that date.

Autonomous City of Buenos Aires, February 18, 2013

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Dr. Carlos Martín Barbafina

Public Accountant (U.C.A.)

C.P.C.E.C.A.B.A. Tº 175 Fº 65

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

Summary as of December 31, 2012

Buenos Aires, February 18, 2013 - Cresud S.A.C.I.F. y A. (NASDAQ: CRESY – BCBA: CRES), one of the leading agricultural companies in South America, announces today its results for the first six months of fiscal year 2013 ended December 31, 2012.

Results and highlights for the period

	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Group revenue		858.0		721.4		18.9	%	1.611.2	1.455.0		10.7	%
Group costs		-794.2		-542.1		46.5	%	-1.428.1	-1.143.3		24.9	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		270.8		110.1		145.8	%	459.4	236.8		94.0	%
Changes in the net realizable value of agricultural produce after harvest		-6.4		-15.9		-59.7	%	6.8	-11.3		-
Gross Profit		328.2		273.6		20.0	%	649.3	537.3		20.9	%
Gain from disposal of investment properties		24.2		24.7		-2.1	%	53.7	24.7		117.1	%
Gain from disposal of farms		54.0		-6.5		-		54.0	27.8		94.5	%
General and administrative expenses		-97.8		-81.8		19.5	%	-174.7	-144.5		21.0	%
Selling expenses		-63.3		-38.3		65.0	%	-123.7	-86.5		43.0	%
Management fees		-6.8		-4.5		50.2	%	-6.8	-4.6		46.4	%
Other operating results, net		141.9		-1.7		-		105.1	9.8		974.7	%
Profit from operations		380.4		165.4		130.0	%	556.9	364.0		53.0	%
Share of profit / (loss) of associates and joint businesses		-3.2		31.7		-110.0	%	12.5	10.1		24.6	%
Profit from operations before financing and taxation		377.3		197.0		91.5	%	569.5	374.1		52.2	%
Financial loss, net		-192.9		-13.8		1297.7	%	-363.4	-328.1		10.8	%
Profit / (loss) before income tax		184.3		183.2		0.6	%	206.0	46.0		348.3	%
Income tax expense		-15.6		-8.6		80.9	%	-29.3	-22.6		29.5	%
Profit / (loss) for the period		168.7		174.6		-3.4	%	176.7	23.3		657.8	%

Attributable to:
Cresud’s shareholder		77.3		74.4		3.9	%	60.8	-20.7		-

►

Income before financial income / (loss) and income tax recorded an increase close to 52.2%, up from ARS 374.1 million to ARS 569.5 million for the first six months of 2013. This is mainly explained by a 20.9% increase in gross income, reflecting the positive performance of the Agricultural and Urban segments, which rose ARS 112.0 million.

►	In addition, there was increase of ARS 29.0 million in Results from sale of investment properties from our subsidiary IRSA and of ARS 26.2 million in Results from sale of farms from BrasilAgro.

►	On the other hand, during this semester Other operating income grew by ARS 95.3 million, explained mainly by results derived from the business combination in IRSA, which has started to consolidate the entire building located in Madison 183, City of New York, during this quarter.

►

There was an increase in the negative impact of Financial income / (loss), net, which rose from a loss of ARS 328.1 million in the first six months of 2012 to a loss of ARS 363.4 million in the first six months of 2013, mainly due to losses from exchange rate differences and higher interest charges, offset by positive results from the valuation of financial assets held by our subsidiary IRSA (mainly Hersha and Supertel).

►	As a result of the foregoing, net income attributable to Cresud’s shareholder totaled ARS 60.7 million during this period, compared to a loss of ARS 20.7 million in the first six months of 2012.

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

Summary as of December 31, 2012

Description of Operations by Segment

		6M 2013		6M 2012	Variation
	Agro1		Urban2		Total		Agro		Urban		Total		Agro			Urban			Total
Group revenue		527.8		1,164.9		1,692.7		543.6		945.4		1.489.0		-2.9	%		23.2	%		13.7	%
Group costs		-888.5		-606.3		-1,494.8		-700.6		-470.2		-1.170.7		26.8	%		29.0	%		27.7	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		462.4		-		462.4		238.0		-		238.0		94.3	%		0.0	%		94.3	%
Changes in the net realizable value of agricultural produce after harvest		6.8		-		6.8		-11.3		-		-11.3		-			0.0	%		-
Gross Profit		108.5		558.6		667.1		69.7		475.3		545.0		55.5	%		17.5	%		22.4	%
Gain from disposal of investment properties		-		53.7		53.7		-		24.7		24.7		0.0	%		117.1	%		117.1	%
Gain from disposal of farms		54.0		-		54.0		27.8		-		27.8		94.5	%		0.0	%		94.5	%
General and administrative expenses		-67.3		-109.9		-177.3		-63.5		-82.6		-146.1		6.1	%		33.0	%		21.3	%
Selling expenses		-75.5		-54.8		-130.3		-52.2		-37.7		-89.9		44.7	%		45.2	%		44.9	%
Management fees		-6.8		-		-6.8		-4.6		-		-4.6		46.4	%		0.0	%		46.4	%
Other operating results, net		-10.5		115.1		104.6		18.0		-9.6		8.5		-			-			1135.4	%
Profit from operations		2.4		562.6		565.0		-4.8		370.1		365.3		-			52.0	%		54.7	%
Share of profit / (loss) of associates and joint businesses		0.3		7.0		7.4		2.4		14.4		16.8		-86.8	%		-51.0	%		-56.2	%
Profit from operations before financing and taxation		2.7		569.7		572.3		-2.4		384.4		382.1		-			48.2	%		49.8	%

►

As results are reported in compliance with the IFRS, total segment income / (loss) differs from total consolidated results. This is due to the fact that results by segment include consolidated results from our joint businesses. This consolidation is made proportionally according to our interest in each business. The impact refers mainly to our agricultural businesses in Paraguay and various urban real estate businesses related to our subsidiary IRSA.

►

Gross income from the Agricultural segment increased 55.5%, up from ARS 69.7 million during the first six months of 2012 to ARS 108.5 million during the first six months of 2013, mainly due to an increase of ARS 32.0 million in the Grains segment, an increase of ARS 21.5 million in the Sugarcane segment, a fall of ARS 11.6 million in the Beef Cattle segment, a fall of ARS 5.6 million in the Milk segment and an increase of ARS 2.6 million in the other Agricultural segments. In turn, gross income from the Urban segment showed a stable growth of 17.5%.

►	On the other hand, we recorded a higher Result from sale of farms thanks to the sale of the “Horizontina” establishment owned by our subsidiary BrasilAgro, compared to the sale of the “Sao Pedro” farm occurred during the first six months of 2012.

►

This was offset by other operating losses related to hedge transactions carried out by our subsidiary BrasilAgro, which had generated income for approximately ARS 25.0 million during the first six months of 2012 compared to income for ARS 0.8 million during the first six months of 2013. It should be noted that these results refer to futures executed to hedge against production for this season.

►	Therefore, operating income grew from a loss of ARS 4.8 million in the first six months of 2012 to an income of ARS 2.4 million for the first six months of 2013 in the Agricultural segment.

►	Through the Urban segment, our subsidiary IRSA recorded significant operating income, which increased 52.0%, to ARS 562.6 million. This increase derives mainly from the Sales and Developments segment and the Shopping Centers segment.

►	In addition, operating income rose driven by income from interests in equity investees and joint businesses, reaching a total segment income of ARS 572.3 million, 49.8% higher than in the last fiscal year.

1 Corresponds to the segments referred to as “Agricultural Business”.

2 Corresponds to the segments referred to as “Urban Properties and Investments”.

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

Summary as of December 31, 2012

Grains and Sugarcane

Grains

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		109.8		113.4		-3.2	%	243.9	254.0		-4.0	%
Costs		-256.5		-151.1		69.7	%	-465.7	-385.0		21.0	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		169.0		69.6		143.0	%	286.5	181.9		57.5	%
Changes in the net realizable value of agricultural produce after harvest		-6.5		-16.1		-59.7	%	6.7	-11.5		-
Gross profit		15.8		15.7		0.9	%	71.4	39.4		81.2	%
General and administrative expenses		-8.6		-21.9		-60.6	%	-26.0	-27.4		-4.8	%
Selling expenses		-22.2		-12.7		75.0	%	-51.8	-38.1		35.9	%
Other operating results, net		21.9		5.3		316.9	%	-4.4	21.5		-
Profit / (loss) from operations		6.9		-13.7		-		-10.8	-4.6		137.4	%
Share of profit of associates and joint businesses		-0.5		1.2		-		-0.2	1.1		-
Segment profit / (Loss)		6.5		-12.5		-		-11.0	-3.4		222.7	%

Sugarcane

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		69.5		30.8		125.9	%	111.8	87.3		28.1	%
Costs		-137.2		-39.9		244.0	%	-214.6	-88.2		143.3	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		76.0		13.8		450.9	%	128.6	5.2		2385.3	%
Changes in the net realizable value of agricultural produce after harvest		-		-		0.0	%	-	-		0.0	%
Gross profit		8.2		4.7		76.8	%	25.8	4.3		503.0	%
General and administrative expenses		-12.0		-6.7		79.4	%	-20.3	-16.9		19.8	%
Selling expenses		-2.2		-		0.0	%	-2.2	-		0.0	%
Other operating results, net		-0.1		-0.0		1142.9	%	-0.1	-0.0		1142.9	%
Profit / (loss) from operations		-6.1		-2.1		197.0	%	3.1	-12.7		-
Share of profit of associates and joint businesses		-0.0		-0.2		-76.3	%	-	-0.2		-
Segment profit / (Loss)		-6.1		-2.2		175.3	%	3.1	-12.9		-

Operations

	Production							Sales
In tons	IIQ 2013		IIQ 2012		YoY var			IIQ 2013		IIQ 2012		YoY var
Wheat		3,109		1,138		173.3	%		3,074		1,994		54.1	%
Corn		3,130		11,437		-72.6	%		60,029		33,270		80.4	%
Sunflower		288		1,072		-73.2	%		525		1,081		-51.4	%
Soybean		3,633		14,673		-75.2	%		5,933		21,145		-71.9	%
Other		7,844		15,164		-48.3	%		5,223		3,322		57.2	%
Total Grains and Other Production		18,003		43,484		-58.6	%		74,784		60,812		23.0	%
Sugarcane		424,113		62,983		573.4	%		562,248		-		0.0	%
Total Agricultural Production		442,116		106,467		315.3	%		637,032		60,812		947.5	%

	Production						Sales
In tons		6M 2013	6M 2012	YoY var				6M 2013	6M 2012	YoY var
Wheat		3,773	2,126		77.5	%		7,444	4,697		58.5	%
Corn		86,392	118,204		-26.9	%		161,875	120,581		34.2	%
Sunflower		288	1,293		-77.8	%		2,196	8,013		-72.6	%
Soybean		3,878	16,856		-77.0	%		21,286	64,731		-67.1	%
Other		35,270	43,204		-18.4	%		29,891	16,300		83.4	%
Total Grain and Other Production		129,600	181,683		-28.7	%		222,692	214,322		3.9	%
Sugarcane		874,448	619,005		41.3	%		917,864	415,842		120.7	%
Total Agricultural Production		1,004,048	800,688		25.4	%		1,140,556	630,164		81.0	%

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

Summary as of December 31, 2012

Total Production 6M 2013 (in tons)	2011/2012 Season		2012/2013 Season
Wheat		14		3,759
Corn		80,911		5,481
Sunflower		-		288
Soybean		195		3,683
Other		22,682		12,588
Total		103,802		25,798

►	The increase of ARS 32.0 million in Gross Income from the Grains segment is explained by higher holding results close to ARS 18.2 million, higher income from sales of ARS 4.4 million and higher production results for ARS 9.4 million.

►

Out of the ARS 18.2 million increase in holding results, ARS 12.0 million refer to operations in Argentina, reflecting the rise in the corn valuation prices considering export prices vs. the values of the same crop in the domestic market, while the balance refers to BrasilAgro, thanks to the rise in corn and soybean prices in general.

►

Income from sales derives mostly from the businesses in Argentina (increase of ARS 9.3 million) offset by a fall in the businesses in Brazil (fall of ARS 5.3 million). In general, this is due to higher sales of grains in Argentina, which grew by 3.9% reaching 222,692 tons, accompanied by higher commodity prices.

►

Production results rose nearly ARS 9.4 million, thanks to an increase of ARS 3.2 million from Argentina and ARS 7.2 million from Brazil, offset by a loss of ARS 1.0 million from Bolivia. Although production amounts fell in general, positive results were recorded thanks to the increase in prices and projected results from sowings.

►

The higher Gross Income in the grains segment was offset by results from hedge transactions carried out by our subsidiary BrasilAgro, which had generated income for approximately ARS 25.0 million during the first six months of 2012 compared to income for ARS 0.8 million during the first six months of 2013. It should be noted that these results refer to futures executed to hedge against production for this season.

►

The Sugarcane segment increased ARS 21.5 million, mainly due to production results that consider projected income from production of this crop in the farms purchased in Bolivia during the past season. During the 2011-2012 season, production of sugarcane in our farms in Bolivia was still incipient. Following land preparation and the implementation of this business model, during the 2012-2013 season we started production with a larger number of hectares assigned to this crop.

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

Summary as of December 31, 2012

Area in Operation – Crops (hectares) 3	As of 12/31/12		As of 12/31/11		YoY var
Own farms		137,155		128,870		6.4	%
Leased farms		46,780		44,601		4.9	%
Farms under concession		10,988		8,768		25.3	%
Own farms and farms under concession leased to third parties		19,932		18,470		7.9	%
Total Area Assigned to Crop Production		214,855		200,709		7.0	%

►

The area in operation projected for the crops segment increased by 7.0%, reaching 214,855 hectares. This was mainly due to an increase in the area in operation in our own farms, close to 6.4% and the increase in the area consisting of leased farms and under concession (4.9% and 25.3% respectively). Additionally, area of own farms and farms under concession leased to third parties grew by 7.9% compared to last season.

►

The area of own farms increased mainly due to the expansion in productive areas in Argentina and Brazil. In the case of Argentina, it involved an expansion made in Los Pozos and in La Suiza. Part of the new agricultural areas in Los Pozos were given on lease to third parties. In Brazil, it involved an expansion, a part of which was given on lease to third parties. Additionally, we have an expansion projected in Paraguay.

►	This was offset by less areas sown for second harvest and by the sell of a farm in Bolivia that took place during Fiscal Year 2012.

►

We have increased the area in operation assigned to agricultural production in the farms of Agropecuaria Anta (long term concession granted to Cresud) with more than 11,000 hectares in operation in this farm during this season. In addition, in this farm we gave 10,785 agricultural hectares on lease to third parties.

Below is a chart explaining the changes in areas assigned to agricultural production. Data are in thousands of hectares.

The figures might not match the developed areas reported below due to that they include areas developed in previous seasons.

3Includes surface area under double cropping totaling 17,820 hectares, excludes our proportional interest in AgroUranga. It includes 100% of Cresca’s farms.

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

Summary as of December 31, 2012

Beef Cattle

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		17.5		31.4		-44.2	%	35.8	54.4		-34.2	%
Costs		-31.5		-42.2		-25.5	%	-62.6	-73.7		-15.1	%
Changes in the reasonable value of biological assets and agricultural produce		16.2		16.0		1.0	%	27.2	31.2		-12.9	%
Changes in the net realizable value of agricultural produce		0.1		0.1		-33.1	%	0.1	0.1		-33.1	%
Gross Income / (Loss)		2.3		5.3		-56.5	%	0.4	12.0		-96.3	%
Operating Income / (Loss)		0.3		-0.3		-		-10.5	-8.9		17.7	%
Segment Income / (Loss)		0.1		1.0		-89.7	%	-10.5	-7.6		38.1	%

Beef Cattle (tons)	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Beef cattle production		2,318		3,228		-28,2	%	3,951	4,486		-11.9	%
Beef cattle sales		2,077		3,776		-45,0	%	4,539	6,929		-34.5	%

►	The fall in Gross Income from the Beef Cattle segment is explained on the one hand by the negative effect in holding results, and on the other, by lower results from sales and production.

►	The fall in holding results reflects the lower beef cattle prices prevailing in the market as compared to the same period of the previous fiscal year.

►	During the first six months of 2012 we sold live beef cattle to realize income derived from the increase in prices; however, during the first six months of 2013 our sales were lower as prices were less attractive. In addition, the fall in beef cattle production is mainly explained by lower stocks.

Area in Operation – Beef Cattle (hectares)	As of 12/31/12		As of 12/31/11		YoY var
Own farms		74,540		85,649		-13.0	%
Leased farms		12,635		12,635		0.0	%
Own farms leased to third parties		13,954		5,543		151.7	%
Total Area Assigned to Beef Cattle Production		101,129		103,827		-2.6	%

►	The decrease in the area is explained by the transformation of areas assigned to beef cattle that were converted into agricultural areas in Los Pozos farm and because we leased to third parties areas in La Suiza that we operated last season.

►	Additionally, we developed new areas in Preferencia that were given as lease to third parties for pastures. As a consequence the areas leased to third parties reached almost 14,000 hectares.

►	Land transformation, in general, led to a fall of 2.6% in the total area assigned to beef cattle production.

Stock of Cattle Heads	As of 12/31/12		As of 12/31/11		YoY var
Breeding stock		56,101		59,809		-6.20	%
Winter grazing stock		13,119		18,777		-30.13	%
Milk farm stock		6,435		6,550		-1.76	%
Total Stock (heads)		75,655		85,136		-11.14	%

►	The fall in beef cattle stocks is explained by sales made at the closing of fiscal year 2012, as referred to above.

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

Summary as of December 31, 2012

Milk

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		9.0		8.1		10.9	%	16.5	14.7		12.6	%
Costs		-17.9		-14.7		21.7	%	-34.1	-27.8		22.5	%
Changes in the reasonable value of biological assets and agricultural produce		8.7		10.7		-19.2	%	18.3	19.4		-5.9	%
Gross Income / (Loss)		-0.3		4.1		-		0.7	6.3		-88.3	%
Operating Income / (Loss)		-0.7		3.9		-		-0.3	5.0		-
Segment Income / (Loss)		-0.7		4.0		-		-0.3	5.1		-

Milk Production	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Milk Production (liters)		5,066		5,118		-1,02	%	9,450	9,211		2.59	%
Milk sales (liters)		4,890		5,041		-3,00	%	9,115	9,063		0.57	%
Daily average milking cows (heads)		2,552		2,368		7,77	%	2,400	2,198		9.19	%
Milk Production / Milking Cow / Day (liters)		21.6		23.5		-8.15	%	21.4	22.8		-6.04	%

►	The decrease in gross income from the milk segment is mainly due to the lower productivity levels of our milking facility, principally caused by excessive rainfall levels recorded in the area, which affected our operations.

►	On the other hand, costs increased due to inflation, whereas prices for the sale of milk grew at a lower rate.

►	There has been a slight fall in the production of milk by milking cow per day. This notwithstanding, the levels of more than 20 liters by milking cow per day still exceed the targets set following the consolidation of operations in our state-of-the-art milking facility.

Area in Operation – Milk (hectares)		As of 12/31/12				As of 12/31/11				YoY var
Own farms			2,780				2,958				-6.02	%

►	We perform our milking business in El Tigre farm. The slight decrease in the area assigned to milking cows is explained by an increase in the areas planted with crops.

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

Summary as of December 31, 2012

Leases and Agricultural Services

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		5.5		-2.4		-327.2	%	12.1	10.9		11.2	%
Costs		-2.0		4.1		-147.8	%	-3.8	-0.9		342.2	%
Gross Income		3.5		1.7		113.1	%	8.3	10.0		-17.0	%
Operating Income		2.3		1.1		97.2	%	6.4	9.5		-32.6	%
Segment Income		2.2		1.1		95.8	%	6.4	9.5		-32.7	%

►	In this segment we report the results from the lease of farms, mainly developed in our Santa Bárbara and La Gramilla farms. Satisfactory results have been recorded, and we expect that this trend will continue.

Sales and Transformation of Lands

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Gross Loss		-1.4		-1.1		26.6	%	-3.1	-2.3		32.7	%
Result from sale of farms		54.0		-6.5		-		54.0	27.8		94.5	%
Operating Income / (Loss)		35.2		-7.7		-		33.6	25.5		31.9	%
Segment Income / (Loss)		35.2		-7.7		-		33.6	25.5		31.9	%

►	Under Result from sale of farms we recognized the sale of “Sao Pedro” farm owned by our subsidiary BrasilAgro during the first quarter of the previous fiscal year, and the sale of the “Horizontina” farm during the second quarter of this fiscal year. Both farms belonged to our subsidiary BrasilAgro.

►

In October, the sale of the “Horizontina” farm, with a surface area of 14,359 hectares, located in the State of Maranhão, was announced. The transaction was agreed upon for a total amount of BRL 75.0 million, BRL 27 million of which were collected upon consummating the sale, and the balance of BRL 48.0 million was paid in January 2013. As of June 30, 2012, the asset was valued at BRL 46.0 million, the results from the sale were ARS 53.9 million. This transaction reflects a full development cycle, in which the acquisition, development, production and sale stages generated an Internal Rate of Return (real estate + production) of approximately 27%.

►

In February 2013, Cresud executed a preliminary sale agreement for a portion of the “La Suiza” farm, which has an area of 5,613 hectares allocated to beef cattle operations and 36,380 hectares intended for mixed activities. The total transaction amount was fixed in the sum of USD 6.7 million, USD 2.7 million of which have been already paid and the balance is payable as follows: (i) USD 1.0 million, upon executing the title deed, in June 2013; (ii) the balance of USD 3.0 million, secured by mortgage, is payable in 3 equal, consecutive, semi-annual installments, with the last installment falling due on January 31, 2015. The accounting result of this transaction will be recorded upon executing the title deed whereby possession of the property will be delivered.

Area under Development (hectares)	Developed in 2011/2012		Projected for 2012/2013
Argentina		10,007		7,624
Brazil		13,700		15,504
Paraguay		4,035		1,000
Total		27,742		24,128

►	During the previous season, we developed more than 27,700 hectares in the region, and we expect to develop 24,128 additional hectares during this season.

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

Summary as of December 31, 2012

Agro-industrial activities

in ARS MM	IIQ2013		IIQ2012		YoY var			6M2013	6M2012	YoY var
Revenues		48.3		53.3		-9.2	%	67.2	97.0		-30.7	%
Costs		-48.5		-52.5		-7.6	%	-70.0	-101.1		-30.8	%
Gross Income / (Loss)		1.0		1.1		-13.1	%	-1.6	-3.8		-56.8	%
Operating Loss		-6.7		-7.4		-10.0	%	-13.5	-13.8		-1.8	%
Segment Loss		-6.7		-7.4		-9.8	%	-13.5	-13.8		-1.8	%

►

In this segment we report the results from our meat packing and feedlot business through our subsidiary Cactus. We see a trend similar to the one experienced during the previous year and we expect that the context of this industry will improve in the future, leading to higher results in the segment.

Other Segments

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		-2.3		5.1		-		40.4	25.3		59.9	%
Costs		1.3		-4.1		-		-34.6	-21.5		60.8	%
Changes in the reasonable value of biological assets and agricultural produce		0.8		0.2		413.9	%	0.7	-0.0		-
Changes in the net realizable value of agricultural produce		0.0		0.1		-57.3	%	-	0.1		-100.0	%
Gross Income		-0.2		1.3		-		6.5	3.8		69.6	%
Management fees		-6.8		-4.5		50.2	%	-6.8	-4.6		46.4	%
Operating Loss		-8.4		-3.8		122.0	%	-5.7	-4.8		17.8	%
Segment Loss		-8.7		-3.7		135.3	%	-5.1	-4.7		7.2	%

►	In this segment we report the results from our controlled company Futuros y Opciones S.A: (“FyO”).

►	Management Fees are also included in this segment.

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

Summary as of December 31, 2012

Urban Properties and Investments: IRSA Inversiones y Representaciones Sociedad Anónima

We develop our Urban Properties and Investments segment through our subsidiary IRSA. As of December 31, 2012, our equity interest in IRSA was 64.50%.

IRSA is one of Argentina’s leading real estate companies in terms of total assets. IRSA is engaged, directly or indirectly through subsidiaries and joint businesses, in a range of diversified real estate related activities in Argentina and abroad, including:

The acquisition, development and operation of shopping centers, through its 95.67% interest in Alto Palermo S.A. (“APSA”) (Nasdaq: APSA, BASE: APSA). APSA is one of Argentina’s leading operators of shopping centers and holds a controlling interest in 13 shopping centers with more than 309,000 square meters of Gross Leaseable Area.

·	The acquisition, development and exploitation of office buildings and other non-shopping center properties primarily for rental, for which purpose it has over 141,000 square meters of office leaseable space.

·	The acquisition and development of residential properties and the acquisition of undeveloped land reserves for future development or sale.

·	The acquisition and exploitation of luxury hotels.

·	Selective investments outside Argentina.

·	Financial investments, including IRSA’s current 29.77% equity interest in Banco Hipotecario, which is one of the leading financial institutions in Argentina.

The following information has been extracted from the financial statements of our controlled company IRSA as of December 31, 2012:

in ARS MM	IIQ 2013		IIQ 2012		YoY var			6M 2013	6M 2012	YoY var
Revenues		599.7		481.3		24.6	%	1.086.0	912.9		19.0	%
Operating Income		360.9		198.3		82.0	%	558.9	372.3		50.1	%
EBITDA		435.8		256.1		70.2	%	666.0	458.1		45.4	%
Net Income		195.1		227.2		-14.2	%	245.9	79.4		209.7	%

Our stake in IRSA has a high impact on our results, therefore we recommend the reading of detailed information on IRSA provided in its website (www.irsa.com.ar), in the Argentine Securities Commission website (www.cnv.gob.ar) and in the Securities and Exchange Commission website (www.sec.gov).

Below is a reconciliation between these results and total consolidated results.

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

Summary as of December 31, 2012

		6M 2013		6M 2012	Variation
	Total Segment Information		Adjustment for Interest in Joint Businesses		Total		Total Segment Information		Adjustment for Interest in Joint Businesses		Total		Total
Revenues		1,692.7		-81.5		1,611.2		1,489.0		-34.0		1,455.0		10.7	%
Costs		-1,494.8		66.7		-1,428.1		-1,170.7		27.5		-1,143.3		24.9	%
Changes in the reasonable value of biological assets and agricultural produce		462.4		-2.9		459.4		238.0		-1.2		236.8		94.0	%
Changes in the net realizable value of agricultural produce		6.8		-		6.8		-11.3		-0.0		-11.3		-160.5	%
Gross Income		667.1		-17.8		649.3		545.0		-7.7		537.3		20.9	%
Result from sale of investment properties		53.7		-		53.7		24.7		-		24.7		117.1	%
Result from sale of farms		54.0		-		54.0		27.8		-		27.8		94.5	%
General and administrative expenses		-177.3		2.5		-174.7		-146.1		1.7		-144.5		21.0	%
Selling expenses		-130.3		6.6		-123.7		-89.9		3.5		-86.5		43.0	%
Management fees		-6.8		-		-6.8		-4.6		-		-4.6		46.4	%
Other operating income, net		104.6		0.5		105.1		8.5		1.3		9.8		974.7	%
Operating income before Income / (Loss) from interests in equity investees and joint businesses		565.0		-8.1		556.9		365.3		-1.2		364.0		53.0	%
Income / (Loss) from interests in equity investees and joint businesses		7.4		5.2		12.5		16.8		-6.7		10.1		24.6	%
Operating income before financial income / (loss) and taxes		572.3		-2.9		569.5		382.1		-8.0		374.1		52.2	%

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

Summary as of December 31, 2012

Financial Indebtedness and Other

As of December 31, 2012 Cresud had a total net indebtedness equivalent to USD 745.4 million, consolidating IRSA. The following table contains a breakdown of this indebtedness:

Description

Currency

Amount

(USD MM)1

Interest Rate

Maturity

Bank overdraft

ARS

16.3

Float

< 365 days

Export prefinancing

USD

14.0

Float

< 365 days

Banco de La Pampa Loan

ARS

4.1

Float

Aug-17

Cresud’s Tranche III Series VI Notes2

USD

8.7

7.50

Mar-13

Cresud’s Tranche III Series VII Notes

USD

2.1

4% + Premium

Mar-13

Cresud’s Tranche IV Series VIII Notes

USD

60.0

7.50

Sep-14

Cresud’s Tranche V Series IX Notes 3

ARS

32.8

Avg. Badlar + 300 bps

Dec-13

Cresud’s Tranche V Series X Notes4

USD

61.5

7.75

Jun-14

Cresud’s Tranche V Series XI Notes5

ARS

16.4

Avg. Badlar + 375 bps

Jun-15

Bolivia farms6

USD

4.6

7.00

May-17

Land Development Financing

USD

15.3

Float

Jan-22

Other loans

ARS

4.9

15.01

Dec-15

Cresud’s total debt

240.6

Bank overdraft

ARS

40.3

Variable

< 180 days

IRSA’s Tranche I Series I Notes

USD

150.0

8.50

Feb-17

IRSA’s Tranche II Series II Notes7

USD

150.0

11.50

Jul-20

IRSA’s Tranche III Series III Notes

ARS

31.2

Badlar + 249 bps

Aug-13

IRSA’s Series III Tranche IV Notes

USD

33.8

7.45

Feb-14

Other loans

USD

0.2

12.00

Apr-13

IRSA’s total debt

405.5

Bank overdraft

ARS

17.4

Variable

< 30 days

APSA’s Tranche I Series I Notes8

USD

120.0

7.88

May-17

Other loans

USD

20.2

5.00

2013/2017

Other loans

29.9

APSA’s total debt9

187.5

BrasilAgro’s debt

41.7

Total Consolidated Debt

875.4

Consolidated Cash

106.7

Debt repurchase

23.2

Net Consolidated Debt

745.4

1 Principal face value in USD at an exchange rate of 4.913 ARS = 1 USD, without considering elimination of balances with subsidiaries.
2 As of December 31, 2012 APSA had repurchased a face value of USD 2.5 million.
3 As of December 31, 2012 APSA had repurchased a face value of ARS 9.0 million.
4 As of December 31, 2012 APSA had repurchased a face value of USD 0.7 million.
5 As of December 31, 2012 APSA had repurchased a face value of ARS 21.0 million.
6 Purchase of farms in Bolivia by Acres del Sud and transaction financing.
7 As of December 31, 2012 APSA had repurchased a face value of USD 3.9 million.
8 As of December 31, 2012 APSA had repurchased a face value of USD 10.0 million.
9 APSA does not include Convertible Notes due 2014. Outstanding principal amount: USD 31.7 million.

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

Summary as of December 31, 2012

Shareholders’ Meeting dated October 31, 2012

On October 31, 2012 our General Ordinary and Extraordinary Shareholders’ Meeting was held, whereby the shareholders resolved to pay ARS 120.0 million as cash dividends, equivalent to ARS 0.2417 per share (ARS 2,417 per ADR). November 27, 2012 was scheduled as record date and November 29, 2012 as ex-date.

IRSA Dividends

On October 31, 2012, IRSA resolved to pay to its shareholders a cash dividend for up to ARS 180 million, equivalent to ARS 0.3111 per share (ARS 3.111 per ADR).

Issue of Series XII and XIII Notes

On February 13, 2013, Cresud started the disclosure period of a new Tranche of Notes, to be tendered on February 19, 2013.

The Tranche will be issued in two series, with the following main features:

►

Series XII will be issued in pesos for a principal amount of up to Ps. 125 million, accruing interest at Badlar rate plus a spread bid by investors. Interest is payable on a quarterly basis and the principal amount is repayable in 3 installments due within 15, 18, and 21 months after the issue date.

►

Series XIII will be issued in dollars (subscribed and repaid in pesos at the applicable exchange rate) for a principal amount of up to PS. 125 million equivalent, accruing interest at a fixed rate. Interest is payable on a quarterly basis and the principal amount is repayable in 2 installments due within 24 and 27 months after the issue date.

The total amount of the tranche may be increased to the total authorized amount of up to Ps. 500 million.

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

Summary as of December 31, 2012

Prospects for the next quarter

The context looks appealing for the agricultural segment in the region. After experiencing a severe drought in 2012 that later extended to the north region of the continent, commodity prices, mainly soybean, evidenced an upward trend, reaching values higher than 500. Moreover, we expect the annual output to be highly satisfactory, reflecting the suitable rainfall levels forecasted. USDA projections for Argentina point to 27 million tons of corn and 53 million tons of soybean during this season, whereas for Brazil, USDA projects 72.5 million tons of corn and 83.5 million tons of soybean during this season. We expect to plant crops in approximately 203,000 hectares in the whole region.

We expect the beef cattle segment to record good output levels, high prices and controlled costs again this year. As concerns the milk business, we will maintain our milk production in our El Tigre state-of-the-art milking facility, where we operate at very high production levels.

As concerns land transformation and value-adding activities, we will make progress in the development of our farms in Salta, Paraguay and Brazil. In our farms located in Salta, we developed 10,007 hectares in 2012 and we expect to develop approximately 7,634 additional hectares during this fiscal year. In Paraguay, we will develop 1,000 hectares and we expect to improve yields even further. In Brazil, we will develop 15,504 hectares. Moreover, we will continue to rotate selectively our regional portfolio as it reaches optimum appreciation levels. We still see sustained prices in land values accompanying the growth in crop prices.

In Argentina, we will continue with our strategy of supplementing agriculture in own farms with agriculture in leased farms and farms under concession. As regards our feedlot and meat packing business, we will continue operations in the expectation that market conditions will be more favorable and the segment becomes profitable again.

Looking ahead to 2013, prospects for the agricultural business are interesting, and Cresud, with its long track record and expertise in the industry, will have excellent chances to take advantage of the best opportunities available in the market.

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Buenos Aires, Argentina.

	Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

March 12, 2013	By:	/s/ Saúl Zang
		Saúl Zang
		Responsible for the Relationship with the Markets