Diapositiva 1

Institutional Presentation
3Q FY2016
Lisptick Building
1
IRSA Commercial Properties + Other diversified assets
94.74%
29.91%
HOTELS
LANDBANK
VP 49%
SHOPPING
OFFICE
Malls
Buildings
INTERNATIONAL
68.3%
49%
414,000 sqm of rental GLA
+ Commercial Landbank
Potential to develop: 240,000 sqm of shopping malls
89,000 sqm of offices
2
Dominant Position in the Local Shopping Malls Sector
Strategic locations of assets has delivered leading market share in Argentina’s most important
markets
Positioned in the Most Attractive Segments of the Population…
Multi-format and targeting different consumer profiles
Buenos Aires
High
(7%)
67%
Market
Share
Mid-High
(17%)
Mid (30%)
Mid-Low (32%)
Low (15%)
Mid Income Area
High Income Area
Lower Income Area
Land reserves
Source: Company information
3
Shopping Centers: Strong Operating Figures
Shopping Centers – Tenants’ Sales
44,5%
(Quarterly Growth Rate - %)
35,6%
25,4%
98.6%
99.0%
98.9%
98.7%
98.6%
feb-16
oct-15
Same Store Sales
sep-15
jul-15
ago-15
jun-15
may-15
abr-15
mar-15
feb-15
dic-14
ene-15
oct-14
nov-14
sep-14
ago-14
jul-14
jun-14
may-14
abr-14
mar-14
feb-14
ene-14
dic-13
nov-13
oct-13
sep-13
ago-13
jul-13
jun-13
abr-13
may-13
feb-13
mar-13
ene-13
dic-12
nov-12
oct-12
sep-12
jul-12
ago-12
jun-12
abr-12
may-12
mar-12
Tenant Sales
Shopping Centers – Occupancy %
29,0%
mar-16
22,1%
27,1%
dic-15
26,3%
24,1%
ene-16
26,0%
24,9%
35,7%
32,5%
31,3%
30,1%
30,0%
29,9%
28,6%
28,5%
36,3%
34,3%
nov-15
28,9%
35,5%
Summary Main Figures
(9M 2016)
Stock (sqm)
Occupancy
Sales (ARS)
Visitors
IIIQ 16
IIQ 16
IQ 16
IVQ 15
IIIQ 15
4
Unique and Iconic Office Buildings Footprint
IRCP owns and operates a unique portfolio of office buildings and presents a strong market position
 Fragmented market
 Low tenant concentration
 Strategic locations in financial district
and high-income areas
Expanding Corporate
North Area
AAA
Location
City of Buenos Aires
Business
Center
Back Office
Center
Land reserves
Source: Company Information, CBRE, LJ Ramos and public filings
5
Office Revenue Model: A Natural hedge against Devaluation
Office Leases (USD/sqm) & Occupancy
25.5
95%
25.3
90%
99%
97%
24.7
24.6
24.3
83%
FY2010
98%
23.5
FY2011
FY2012
FY2013
FY2014
FY2015
Parcial Sale of Intercontinental
Plaza
A+ Office Real Estate Appreciation
4500
Operating Figures IIIQ16
4200
Monthly Lease
Occupancy %
(USD/sqm)
25.9
1600
2001
2002
Source: L.J. Ramos
3500
3700
3800
3800
4000
4200
3100
93.1%
2280
4500
2800
2060
2110
2004
2005
1800
2003
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Mar.
2016
September 2015
 Partial Sale for ARS 324,0
mm
 5,963 sqm sold
 USD/sqm 5,800 – 5.2% Cap
Rate
 Gain recognition: ARS 155.9
million
Feb 2016
 Partial Sale for ARS 41.5 mm
 851 sqm sold
 Gain recognition; ARS 19.8
million (next quarter)
 Remaining sqm: 6,308
6
Resilient Revenue Model
Proven to act as a hedge against inflation and devaluation
Shopping Centers
Office Buildings
Revenue from Leases
Revenues from Leases
In Advance
% Sales
Brokerage Fee
• Avg. 3x
monthly base
rent
Admission Rights
• Avg. 6x
monthly base
rent
% Sales
% Sales
US$
US$
US$
Year 1
Year 2
Year 3
Base Rent
Year 1
Year 2
Year 3
Other Revenues
 3-Year average term
 US$ denominated tenant
agreements
•
~6,370 Parking Lots
charged
~650 Kiosks
Non Traditional Advertising
Source: Company Information
7
Current Mall Expansions
OPENING
100% developed
Tenants are refurbishing their stores
oExpansion of 650 sqm of GLA
oExpansion of 3,564 sqm of GLA
oCapex: ~ ARS 15 million
oCapex: ~ ARS 74 million
oDevelopment Progress: 100% (opened in March)
oAgreements signed: 100%
oAgreements signed: 100%
oNew Tenants: Farmacity, Akiabara, Wendy’s & Megatlon
TO START CONSTRUCTION WORKS
o Expansion of 920 sqm of GLA
o Capex: ~ ARS 22 million
o Start of construction: June 2016 (1 year development)
o New Tenant: Nike
FUTURE
DEVELOPMENT
o Acquisition of adjoining plot of land
o Sqm: 3,822
o Price paid: ~ USD 2 million
o Use: Future expansion of Alto Avellaneda Shopping Mall
8
Capex 2017/2018: Expansion of Alto Palermo Shopping
Alto Palermo Lindero Project
3rd level
~ 4,000 sqm new GLA
Investment: ~ USD 21 million
(includes food court moving and restyling)
9
Attractive Development Pipeline…
Polo Dot: U Building 30,000 sqm
Shopping San Martín ~ 35,000 sqm
Shopping Tucumán
Shopping Tucumán ~ 10,000 sqm
Shopping Paraná ~ 5,000 sqm
Shopping Caballito ~ 68,000 sqm
Current malls
Expansions
115,000 sqm GLA
Polo Dot: Two Office Towers – 38,400 sqm
Intercontinental Plaza II ~ 20,000 sqm
Office Intercontinental II
~ 22,000 sqm
Source: Company Information
10
Capex 2017/2018: 1st Stage MIXED USE “POLO DOT” PROJECT
Adjoining DOT Plot of Land 1
(1st stage) ~ 30,000 sqm GLA
Capex: ~ USD 55 million
Adjoining DOT Plot of Land 2
Two Office Towers / hotels – 2nd Stage ~ 38,400 sqm
2nd Stage
Dot Building
POLO DOT
FULL 5 YRS PROJECT
~ 68,400 leasable sqm
Dot Baires Mall
1st Stage
2017/2018
~ USD 55 MM
2nd Stage
11
IRSA
MainMain
Landbank
across Argentina
IRSA
Landbank
across Argentina
Santa María del Plata
~ 700,000 sqm to be developed
Premium Location in BA City
Mixed Use Project
Approvals pending
Montevideo Project (Uruguay)
Puerto Retiro (BA)
La Adela (Lujan - BA)
12
Catalinas Office Building (to be built)
Partial Sale of Catalinas Office Building (to be built)
Catalinas Office Building
Total sqm of GLA: 35,468 (30 floors)
Total parking units: 316
Delivery of units: Dec-19
Sign of Deed: Dec-20
o Dec 15 - Sale to a non related party of 4 floors at ARS 180 MM + USD 12 MM
o April 2016: Sale to IRSA CP of 16,012 sqm of GLA + its parking units
o 14 floors (from 13th to 16th and from 21th to 30th)
o Purpose: Long-term Lease
Price paid:
Catalinas Office Building
Total sqm of GLA: 35,468 (30 floors)
Total parking units: 316
Delivery of Units: December 2019
Sign of deed: December 2020
o
o
Land acquisition: ARS 455.7 million (~ USD/sqm 1,600)
Real Development cost / sqm to be determined (~USD 40 MM)
o 14,820 sqm remained under IRSA (from 1st to 12th floor)
Purpose: (not defined yet between long-term lease or sale)
13
Sales of Investment Properties 9M 2016
“Dique IV” Office
“Maipú 1300” Office
Isla Sirgadero Plot
(Puerto Madero - BA)
(Retiro – BA)
(Santa Fe Province)
Total
Partial
11,242 sqm
ARS
million
Total
3,451 sqm
826 ha
649
587
9.5x BV
123
62
8.5x BV
110
13
Profit
37
32
4
BV
7.7x
BV
14
Investment in Lipstick Building
Lipstick Operating Figures
Leases USD/sqm & Occupancy
88,9%
67,2
64,7
63,7
FY2014
95,1%
91,9%
FY2015
Rent (USD / sqm)
9M16
Occupancy
 New agreements signed on March 2016 at
USD/sqm 85.
 Occupancy will exceed 97% next quarter
 IIIQ16: The building got the LEED EB: O&M
Gold
Certification
(best
environmental
practices)
15
Investment in Condor Hospitality Trust
New Preferred Shares Serie D issued on Mar-16
New partner inject USD 30 MM
Change its preferred C (USD 30 MM) for D
+ accumulated dividend unpaid
VP: From 34% to 49%
Redemption of Preferred A & B on April 2016
Company’ Strategy:
 Selective hotel sales and replace with better margin & scale hotels
16
Urban
Real Estate
Investment
in IDBD15 years Appreciation
Investment Highlights – 9M 2016
 We have appointed an acting CEO and CFO for IDBD
and DIC.
Ownership Structure
Dolphin
IFISA
68.30%
31.70%
 During December 2015, the sale process of Clal was
cancelled
 In January 2016, Dolphin signed with IFISA an option to
acquire 92.6 million shares of IDBD at NIS 1.64 per
share in a 2 year period + 8,5% annual interest rate
Investment made & Future Commitments
Mar-16: Tender Offers obligation - Approval of new proposal
Float acquisition + Deslisting (last price NIS/share 2.14)
Amount
-NIS/share 1.25 cash
-NIS/share 1.20 bond (Series 9)
- Additional NIS/share 1.05 contingent to Clal Sale
(75% above BV) or premission control
Amount invested by IRSA in Dolphin
~ USD 515 million
No further commitments. Just the contingent
payment of NIS/share 1.05 in case of sale or
permission of CLAL
- Additional cash injection for NIS 348.4 million
17
17
Urban
RealAssets
Estate 15 years Appreciation
IDBD Real
Residential - 1,000 units
Offices & commercial –
27k sqm
1,200 units are in various of
construction
5,300 ha of cultivated land of
which 1,400 ha are leasehold
18
18
Urban
Real Estate 15 years Appreciation
Other assets
Company Overview
• Israel’s leading mobile
communications operator, with over
2.8 million subscribers
• An estimated market share of 27%
• October 2011- Combination with 013
Netvision has created a one stop shop
offering in communication field
including: cellular, ISP and domestic
and international telephony services
Consolidated
Company Overview
• World’s leading manufacturer and
distributor of generic agrochemicals
• Comprehensive product offerings sold in
over 100 countries
• Implementing its strategy of growththrough-acquisition in LATAM, Europe and
Asia
• Production and formulation facilities in
Israel and Brazil
• Global marketing and a distribution
network consisting of 40 centers
worldwide
• Strong post merger integration capabilities
Equity investee
Company Overview
• Israel’s leading insurance, pension and finance
group
• Provides comprehensive financial solutions
including insurance, pension funds, provident
funds, mutual funds, and investments
• Employs over 4,000 insurance agents
• Market share of 15-20% (life & non life & health)
• Gross premiums amounted to $2.5B
• Assets under management (AUM) over USD 43
billion
• Equity Value ~ USD 1.2 billion
Market Value
19
19
Tender Offer + New Bond IRSA CP
Tender Offer
IRSA CP 2017, IRSA 2017 & IRSA 2020 Notes
IRCP17
IRSA17
IRSA20
7.875%
8.500%
11.500%
Aggregate principal amount
(USD MM)
120.0
150.0
150.0
Tender Offer total consideration
100.45
100.50
111.0
Coupon
Amount of tender offers receipt
(USD MM)
59.5
75.5
78.6
% over aggregate principal
amount
49.59
50.30
52.371
New Bond
IRSA CP 2023 Notes
Aggregate principal amount
USD 360 million
Fixed Interest Rate
8,75% annual.
Issue Price
98,722% (YTM 9,0%)
Maturity
2023 (7yr NC42)
Repurchase IRCP 17 Notes
Use of Proceeds
Cancel intercompany loan
with IRSA for USD 240 million
Main Achievements
 Term extension to 2023 of company’s structural debt
 Replacememt of intercompany loan through the international capital markets
 Elimination of restrictive covenants at IRSA level
1 – Approximate Percentage of Consents Received 57.98%
2 - Redemption-Call Option: March, 23 2020 at 104,375%; March, 23 2021 at 102,188%; 2022 and thereafter at 100,0%.
20
Argentina Business Center: Debt as of March 31, 2016
IRSA Inversiones y Representaciones Stand Alone
Debt Amortization schedule (before Deal)
(USD million)
Debt Amortization schedule Proforma
(USD million)
90
119
150
109
60
2016
1
2017
2018
2019
2020
75
2016
2017
0
0
2018
2019
71
2020
IRSA Commercial Properties Stand Alone
Debt Amortization schedule (before Deal)
(USD million)
Debt Amortization schedule Proforma
(USD million)
150,0
360,0
151,2
90,0
15,3
2016
2017
2018
2019
2020
15,3
31,2
2016
2017
2018
2019
2020
2023
21
Israel Business Center: Debt as of December 31, 2015
Debt
IDBD
Amount USD MM
787
DIC
1.174
Shufersal
779
Cellcom
974
PBC
2.442
Others(1)
157
(1) Includes IDB Tourism, Bartan, y IDBG
IDBD Debt Amortization schedule
272
(USD million)
163
177
168
7
2016
2017
2018
2019
2020-2025
22
Contact Information
ALEJANDRO ELSZTAIN – II VP
MATÍAS GAIVIRONSKY– CFO
Tel +(54 11) 4323 7449
Corporate Offices
Intercontinental Plaza
Moreno 877 24° Floor
Tel +(54 11) 4323 7400
Fax +(54 11) 4323 7480
C1091AAQ – City of Buenos Aires – Argentina
NYSE Symbol: IRS
BASE Symbol: IRSA
www.irsa.com.ar
Follow us on Twitter
@irsair
Independent Auditors
PricewaterhouseCoopers
Argentina
Tel +(54 11) 4850 0000
Bouchard 557 7º
C1106ABG – City of Buenos Aires
Argentina
Cautionary Statement
Investing in all equities, including natural resources and real estate-related equities, carries risks which should be
taken into consideration when making an investment.
This institutional presentation contains statements that constitute forward-looking statements, in that they include
statements regarding the intent, belief or current expectations of our directors and officers with respect to our
future operating performance. You should be aware that any such forward looking statements are no guarantees
of future performance and may involve risks and uncertainties, and that actual results may differ materially and
adversely from those set forth in this presentation. We undertake no obligation to release publicly any revisions to
such forward-looking statements to reflect later events or circumstances or to reflect the occurrence of
unanticipated events.
Additional information concerning factors that could cause actual results to differ materially from those in the
forward-looking statements can be found in the companies’ Forms 20-F for Fiscal Year 2014 ended June 30, 2014,
which are available for you in our web sites.