Ladies and gentlemen, thank you for standing by, and welcome to the Bioceres Crop Solutions Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker for today, Máx Goya, Investor Relations. Please go ahead, Mr. Goya. Máximo Goya: Thank you. Good day, everyone, and thank you for joining us. Presenting during today's earnings call will be Federico Trucco, Bioceres' Chief Executive Officer; and Enrique López Lecube, our Chief Financial Officer. Both will be available for the Q&A session. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of today's earnings release and presentation as well as our recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Also, please note that for comparison purposes and better understanding of our company's underlying performance, in addition to discussing as reported results during our presentation today, we will discuss comparable results, which exclude the impact of hyperinflation accounting in Argentina. Additional informations in connection with the application of the rule IAS 29 can be found in our earnings report. I would now like to turn the call over to our CEO, Federico Trucco.

Thank you, Máx. Today's financial and operating results reflect the hard work of our more than 400 collaborators, the commitment of our customers and partners in the 31 countries where our products are sold and the resiliency of our organization and growth strategy. In a year when growers' incomes were under pressure, economic conditions in our key markets had deteriorated and where we witnessed one of the most dramatic disruptions to our lives due to COVID-19, being able to say that we achieved our initial growth and profitability objectives fills me with great pride. We had a strong finish to our fiscal year with comparable revenues growing 46% for the quarter, driving adjusted EBITDA up by 67% in the period. Our fourth quarter performance allowed us to maintain our track record of double-digit annual growth, with revenues rising to $174 million, while adjusted EBITDA increased to $46.5 million. We were able to deliver this performance while significantly strengthening our balance sheet and improving our credit rating. We raised $65 million during the period and reduced our net debt-to-EBITDA ratio from 2.2x to slightly under 2x. Our recurring cash, cash equivalents and short-term investments mean our HB4 ramp-up program is fully financed. I will like to congratulate our corporate finance team for a terrific year. And I would like to thank the community of financial institutions and investors that have supported our growth plans with a special recognition to Solel Capital Partners. We are now in a position to advance our HB4 program from thousands of hectares to hundreds of thousands, further validating the value of this technology from key stakeholders. We anticipate that more than 50% of the growth we project in fiscal year 2021 will be derived from the HB4 program. As a reminder, no revenues were recognized from…

Thanks, Enrique. Fiscal 2020 was a year that presented many challenges that we successfully navigated, but also opportunities that we were able to capitalize on, demonstrating our agility as much as our resiliency. We are a far stronger company today, and our many accomplishments this year have served to strengthen our confidence in our growth plans. Looking ahead, we'll continue to consolidate our HB4 soybean breeding program, while actively engaging with our existing licensees and other breeding partners to expand on our genetics offering and accelerate our international HB4 deployment plans, particularly in the United States and Brazil. As we always emphasize, Bioceres has a well-developed asset base that is the foundation of our near-term growth. We expect to continue to expand production of micro-beaded fertilizers, further expanding Brazil and Paraguay's adjuvant markets as well as further penetrate Europe and South Africa with our integrated seed treatment products. Lastly, we will continue to find new ways to improve our capital efficiency as another way to drive shareholder value. Operator, please open the call for questions.

[Operator Instructions] Your first question today comes from Ben Klieve from National Securities.

All right. First of all, congratulations on the strong end of the year. And first question for you is regarding the capital structure. The -- congratulations on removing the warrants first of all, but I'm wondering where you stand on removing the kind of higher-interest working capital sources? Have these all been eliminated at this point? Or is there some that are still on the balance sheet? Enrique López Lecube: Thanks for joining the call. Good talking again to you. This is Enrique. So to your question, we have been able now to finance all of the working capital with efficient sources. So again, that is showing, if you will, in the interest expense line of Q4. It doesn't show in the full fiscal year because that started -- that restructuring of working capital sources began a couple of quarters ago, and it was not something that was done throughout the full year. But as of now, we are in a position to finance all of our capital -- working capital needs in an efficient way.

Okay. Perfect. That's -- I appreciate the color there. Couple of questions on the HB4 inventory build. First, Federico, in your prepared remarks, you commented that the fiscal 2020 harvest had kind of 50% plus meet your quality standards. I'm curious for those that did not meet your quality standards, what do you attribute that to? Was that issues with specific growers? Was it in processing? Was it that the genetics just didn't deliver as you expected? I mean what really led to that number being as substantial as it was?

Thanks for joining the call. It's actually a very important question, which I thank you for. Essentially, what we're trying to accomplish here is a parallel process that is often done sequentially in the breeding industry where materials that are well-validated from a genetics performance are then multiplied and scaled up. Here, as we are trying to speed up the process, we're doing both things in parallel. So we are bringing materials to multiplication that are probably not extensively validated. And given sort of the high standards that we have put for the HB4 technology, where we want the technology, not only to deliver higher yields in restricted environments, but also not penalize farmers when things go right, we have decided to eliminate varieties that do not provide these 2 components. And this first year, as we scale up, there were some materials that did not meet that criteria. So we expect that as we move forward in the breeding program and materials that go from one year to the next have more extensive validation, the number of materials that are discarded is reduced, and we're only multiplying things that we will then fully deploy. But that is one of the reasons why we provided a range of hectares for the upcoming season where we were targeting 60,000 hectares of multiplication. Now in the next soybean season, we are now saying between 20,000 and 60,000, probably towards the lower part of that range. It's just because of that reason of the parallel tracking process and seeing some varieties that we need to discard because they don't fully meet our criteria. Now when I say this, I'm referring to the background genetics, and I'm not referring to trade performance, which is well validated. I don't know if that's clear.

Yes, that was very helpful. And I guess as a follow-up then, the -- call it, call it, 20,000 hectares that you are expecting to plant this year. How many of those -- how much of that acreage is with varieties that are maybe not as well-developed genetically and therefore, have kind of risk in the extent to which you can build inventory for the following year versus varieties that you feel very comfortable and can be harvested and multiplied at the, kind of, maximum level?

Okay. That's also an excellent question, Ben. And I think there's a slide where we try to show that. So of the 5 materials we are scaling up this year, there are 2 that are coming from last year and were validated and performed as we expected. So there, the risk of sort of not continuing is very, very low, if not negligible. There are other 2 materials that were also used last year, but where we restricted them to areas where drought is almost a certainty because we have doubts about their ability to continue. And that's sort of what we might have at risk. So I would say if last year, going into our multiplication process, 100% of the materials were not tested fully as we would like, this year, it'll be only 50% of the materials in that space. And obviously, there is a new variety that we're bringing from the up season production site in the U.S. that comes from a second-generation of breeding, in which we have very high expectations. So every year, the sort of the risk of discontinuing materials as we scale up should be reduced by 50%.

Our next question comes from Sally Yanchus from Brookline Capital Markets.

Enrique and Federico, congratulations on a strong quarter, very good to see. I'm wondering, you -- so you plan to launch -- you'll start selling the HB4, the EcoSoy seeds this fiscal year 2021. Do you know what quarter we should start to expect to see the initial sales?

Thanks for joining, and thank you for your comments. So what you will see in this fiscal year is basically what we contribute to farmers that are multiplying seed for us. So these might not booked 100% of sales from a revenue recognition perspective, but these are implicit ag inputs that we use in -- as prepayment for services that partners provide. So if these ag input seed were to be booked as sales, you would see that coming up in the next quarter for soybeans, towards the second quarter perhaps and then for wheat towards the end of the fiscal year. I don't know if Enrique wants to add additional color there. Enrique López Lecube: No, no, that's right. Sally, as Federico just mentioned, these were booked. This would be in the second quarter for soybeans and the third and fourth quarter for wheat.

Okay. All right. That's helpful. And then I just wanted to check, earlier in the year. I just wonder, what's the status of China in their ability to import products grown with like EcoSoy seeds. Is there still an issue with them not being able to either buy exports of soybeans grown with EcoSoy or the seeds themselves? What's the status of that?

So Sally, thanks for the question. Obviously, China, it's a key market. And what we reported in the last quarter was that they were initiating the field trials that the government does independently of the company. We expect those results to be in the regulators by the end of the summer season in the Northern Hemisphere and a decision soon after that. Obviously, we have hopes that, that will come this year. And so that we are fully enable on soybeans. We are not anticipating -- for the process that we just indicated, this is not necessary. Obviously, we expect the feed and food clearance to be in place for the following season, not the upcoming one, but the following one, and fully by the end of this year.

Okay. So you said they're initiating their field trials. So does this mean they're actually growing some of these seeds in China, in fields in China?

Yes. So the Chinese regulatory process is different from what is done in other countries. The regulators themselves generate independent data. For that, they need to grow HB4 soybeans. That has already been initiated. The plantings occurred earlier in the year. The results will be in by the end of the summer season.

[Operator Instructions] And gentlemen, as I have no further questions in queue, I'll turn the call back for any closing remarks.

Okay. Well, thanks, everyone, for joining. As I indicated before, we're quite pleased with the results of fiscal year 2020. And we look forward to solid results in the upcoming fiscal year as HB4 becomes a reality that's been in the making with a lot of effort and dedication for the last almost, I should say, 10 years. So this is not a spontaneous process, as everyone knows, but one that today, puts us in a unique position, I believe. So I hope you have a great day and that you're all staying safe in these challenging times. With no further comments, I think we're finishing the call.

Ladies and gentlemen, this does conclude today's conference call. Thank you once more for participating. You may now disconnect.