Good morning, ladies and gentlemen and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro's Third Quarter 2017 Results Conference Call. Today with us, we have Mr. Mariano Bosch, CEO; Mr. Charlie Boero Hughes, CFO; and Mr. Hernan Walker, Investor Relations Manager and Director of the Senior Management team. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question-and-answer section. At that time further instructions will be given. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Adecoagro's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events, and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Adecoagro and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Mariano Bosch, CEO. Mr. Bosch, you may begin your conference.

Good morning and thank you for joining Adecoagro's 2017 third quarter results conference. I would like to start by referring to what I believe was the main highlight of the quarter. By the end of September, Adecoagro made its debut in the debt market by successfully issuing a 10-year $500 million bond with 6% coupon rate. This was by all means an outstanding transaction that it has further strengthened our already solid balance sheet position. Enhancing our availability to execute our strategy and focus on long-term shareholder value creation. At the same time, these are result of market confidence in the company and its availability to continue generating attractive returns. Moving to performance of our business during the quarter I'm proud to present good financial and operational figures. In our sugar, ethanol and energy business faster [ph] increased in Angelica's nominal crushing capacity, we were able to fully offset the first semester delay in crushing activities. Our expansion project is being executed at high speed. Asset investments at the Angelica mill are complete and nominal crushing capacity has now reached 1,050 tons per hour. Works at Ivinhema are advancing according to plan and we expect to conclude them by the end of next year. Regarding sugarcane plantation, almost 50% of the needed land to supply the increased capacity at the mix, are already leased and expansion activities are well underway. At this pace, we feel very confident to reach our initial target of crushing 14.2 million tons by 2023. It's important to remember that since this is a marginal investment that enhances the efficiency of the entire operation. IRR is above 20% given at current commodity prices. Moving to our farming and land transformation business I would first like to comment on our daily operation. We are announcing the completion…

Thank you, Mariano. Good morning, everyone. Let's start on Page 4. As shown in the chart on top left. Milling per day increased by 7% in the third quarter of 2017. And so, we started expansion in nominal crushing capacity at the Angelica mill. This additional capacity allowed us to accelerate the milling phase and crush a total of 4.1 million tons in the third quarter 2017, 8th September 2016 [ph]. As of today, we have crushed more than 8.9 million tons of sugarcane. We're well on track to reach our target during November and December assuming normal weather conditions. Please turn to Page 5 for I would like to highlight a few agriculture and productivity metrics. Assuming seeing a couple of charts [ph], yields per hectare during the quarter had reached 80 tons, 24% lower than last year. Mainly as a result of above average rainfall in November 2015 through February 2016 which were highly beneficial over 2016 crops compared to below average range in the fourth quarter of 2016 and the first quarter of 2017 which has affected the proper development of the current crop. And a longer average growth cycle for the cane harvested in 2016 compared to the current season. TRS per ton reached 137.7 kilos slightly above last year resulting in our 23% reduction in TRS per hectare. We expect higher average [ph] productivity to increase in the fourth quarter as we will be harvesting crops with longer work cycle. Let's move to Page 6, production in the third quarter has been positively affected by the increase in sugarcane crushing. As may see on the bottom left, also production measured in TRS equivalent increased by 12%. In terms of product mix the factors and high growth and average [ph] prices traded during the quarter at…

[Operator Instructions] the first question comes from João Soares of Bradesco. Please go ahead. João Soares: Mariano, what can we assume a little bit better what's happened here with the sugar prices that you reported on this quarter, down 11% year-over-year, continuing that you have already hedged in pursuit amount of this harvest and to much higher prices than last year. Is this just, I don't know if there's something I'm missing here with regards to these prices. And my second question is, considering the potential tax reform in Argentina. The potential reduction in the income tax rate and is there any changes in your planning, any visibility on in terms of you guys are going to fix the payout policy in order to make more clear, how much income tax are you going to pay? Basically, those are my questions. Thank you.

Hi, João. Thank you for your question. Related to your first question, the price of the sugar that we report is a price at which we sell then we have the in the line of other operating income the gain of the mark-to-market of what we've sold before that is almost $30 million something, so in order to have an idea over the benefit of what we hedged before, that should include this mark-to-market gain that this reported in the quarter. That is to answer the first part of your question. And regarding the tax reforms that we see in Argentina, we're still understanding and there is still sometime to finalize what is it that is going to be final outcome in general terms. We see this as a positive for Adecoagro Argentina in general, but we need to understand exactly how this ends up in the negotiation with provisions and different taxes that are being negotiated and with that information finalized I think we will be ready to inform more clearly what's the effect on our final cash flow generation, but in general terms I would say this is, clearly positive for us as a company. João Soares: Perfect, Mariano. Thank you. Very clear.

[Operator Instructions] our next question comes from Augusto Ensiki of HSBC. Please go ahead.

Two questions. Firstly, one kind of general, what's your current view on the sugar market and what we can expect in terms of or rather what you expect in terms of prices going forward into the end of the year and early next year. And secondly and also you included an adjusted net income on the report. I wonder if you could go into a little bit more detail what goes into that calculation and basically how you're going from the regular to these or what are the adjustments involved. Thank you.

Hi, Augusto. Thank you for question. We have Marcelo Sanchez our Commercial Director that will take care of the first part of your question regarding our view on the sugar market. Marcelo, can you share your review please?

Yes. Thank you, Augusto for your question. We have been witnessing recent rally in sugar prices that mainly driven by strong oil prices but that current effects supposed - scenario can result in funds also continuing to cover in their source and pricing rallying further this is for the let's say short-term position in prices and of course for next year, this fundamentally the sentiment remains buries [ph] because of the SMD ranging to surplus and given that this is still the long way until this is going to be materialized, we're expected volatility on the next three months to come, that's basically the glue that we do have on the sugar and next year behavior of the millers regarding the hedge that they do have as of today in terms of sugar that will give us a possibly of switching into ethanol and the ethanol will be the main performer since from our view.

Thank you. Marcelo and now for the second part of your question, Augusto. I will ask Charlie Boero to answer your question. Charlie?

Hi Augusto, basically what we're trying to do is to align [technical difficulty] concept. So, what we've done here is, we deducted the non-cash effects losses to the net income that's the explanation.

So just the effects losses?

Right.

$10,000 non-cash, correct?

Non-cash, right.

Okay, well perfect. That's very helpful. Thank you very much.

Our next question is from Isabella Simonato of Bank of America Merrill Lynch. Please go ahead.

My question is regarding the uses of cash. I understand that most of your CapEx in the coming years is still for sugar and ethanol. But the recently bond you issued, if you could go into more detail the use of proceeds and is further diversifying the business it is something that you think of eventually, we also know that you're expanding a little bit the diary division. What's the growth plans in the long run? Thank you.

Hi, Isabella thank you for your question. Specifically, on the uses of cash of the bond proceeds. Charlie explained 80% of it is to refinance the exit in that. And then this also puts us in a very strong and solid position on our balance sheet. So, I would like to be more specific regarding our growth projects and the uses of our plans on the uses of cash. So, I would like to mention regarding our organic growth projects that have already been announced. And we have already started the construction of this project including 30% increase in our sugar, ethanol and energy blaster [ph] including doubling our daily operations that I mentioned at the beginning of the call that are doing great. Also, our investments already announced on the growing conditions in plants in Argentina. All of them are generating IRR above 20% at current flat scenario of commodity prices. So, it's clear that this project will allow us to increase EBITDA 50% in the next four years. And in addition, with the rest of the cash that we're generating in the company at this level of prices the best use of capital is also to buy enough [ph] shares. So, we will accelerate the pace and then our share repurchase product.

That's very clear. Thank you.

Our next question comes from Thiago Duarte of BTG Pactual. Please go ahead.

Quick one from my side. Basically, a follow-up from the recent calls I think it was one or two quarters ago, Mariano that you - we were discussing the divestment of the monetization of the land transformation business in Argentina it's been a few quarters since we don't see a farm sale and I think one or two quarters ago, you sounded very optimistic about the ongoing negotiations involving. I think two or three farms. So just nice to get an update from that and whether you think you could resume the farm sales in the foreseeable future it will be great, to hear a little bit more. Thank you.

Thank you, Thiago for your question. We still feel very confident on this current negotiations as we've said many times this is relatively liquid market on the buying and selling of farms. So that's why it's been taking a little bit longer than what we were assuming, but we're still very confident on achieving this sales of the already transformed farm and some of these negotiations that are still in the middle of the negotiation.

Thank you.

Our next question comes from [indiscernible] of EMS. Please go ahead.

Mariano, its Edmond Safra. Just following up a little bit on your comments on land sales. I presume they would be at valued at three firms or maybe above your recent NAVs on the land. And that coupled with your comment on share buybacks. How much do you have left on your authorization?

Thank you, Edmond for your question. We have renewed our share buyback program that is 5% share buyback program in by the end of September. So, we still have a very relevant part of this 5% that we just renewed.

Okay, great. Thank you.

[Operator Instructions] our next question comes from Elaine Chow of [indiscernible]. Please go ahead.

Could you explain a little bit about your current hedging position for the upcoming harvest season and what's your outlook for this harvest? Thank you.

Okay, thank you Elaine for your question. I'm going to ask Marcelo Sanchez our Commercial Director to answer your question.

Can you please repeat the question, I couldn't hear it? I'm sorry.

The question is about this coming season harvest season, what's your current hedging? And what's your overall outlook in terms of the price and volume, especially for sugar.

Okay, thank you Elaine. I'm sorry about. We as you saw at the end of the third quarter we had hedged almost 23% of our sugar production and for next year and we are - as of today we took advantage on the recent rally that we witnessed in sugar and we achieved around 40% as of to-date the level operates that is going to be in the average for next year with combining what we already have hedged is in the range of between $0.16 and $0.165 a pound for sugar.

Great. Thank you very much.

[Operator Instructions] this concludes the question-and-answer session. At this time, I would like to turn the floor back to Mr. Bosch for any closing remarks.

So, 2017 is been a good year proven by the accumulated financial and operational figures. We are on the right track to conclude and have a solid fiscal year. Before closing the last ending call of the year. I would like to thank you all for your support and confidence and let you know as we do every year since our inception that we have renewed our commitment to continue with our obsession of create shareholder value by allocating our resources in the projects that generate attractive returns. We have a promising 2018 coming ahead and are ready to accept the challenges. We look forward to seeing you during our next IR event.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines and have a nice day.