Institutional Presentation

Institutional Presentation
FY 2015
1
Corporate Structure
FLOAT
IFISA* and others
37.40%
62.60%
FLOAT
64.30%
35.70%
39.76% FD: 45.5%
29.99% Voting rights: 46.48%
49.00%
95.80%
2
* IFISA holds 17.7% stake in IDBD
Pioneer Agribusiness Company with 79 years of history
1994
1936
Founded as a
subsidiary of a
Belgium
company that
provided rural
loans in
Argentina
REGIONALIZATION
1998
Farmland
Mr. Eduardo
Elsztain
Appointed
Chairman
& Mr. Alejandro
Elsztain CEO
2006
Purchases in
Argentina
~ 9,000 ha
Expansion to Brazil
IPO for USD 276 M
Listed in Novo
Mercado
Main Acquisition
Agroriego San Luis
2008
Expansion to
Bolivia &
Paraguay
Follow on for
USD 288 M
1ST Follow on
for USD 64 M
1936 1960 1994 1997 1998 1999 2000 2001 2002 2003 2004
1997
1960
1999 - 2005
2005 2006 2008 2012 2013
2012
Farmland Purchases &
Sales in Argentina
Listed in the local
stock exchange and
spun-off ot its
parent company
1st Latam Agricultural
Company listed in the US
2nd
Follow on for USD
92 million
1994: 7 Farms
20,000 has
Investment in the
leader real estate
company in
Argentina 22.4%
2014 2015
2014
Sold Paraguay to
Brasilagro
nvestmentI through IRSA
Brasilagro listed in NYSE
1ST brasilian agricultural company
listed abroad
65.5%
2015: ~ 622,256 has in 27 farms
1,282 employees in agriculture related operations
3 leading farmland development cases in Harvard Business School
Due Dilligence for more than 4 million ha in the region
3
6…
CRESUD Business Strategy
FARMLAND DEVELOPMENT
FARMING ACTIVITY
ROIC
Value Creation
Urban
Property
Specialties /
Agriculture
Stable Yielding
Farmland
Development
Agriculture
Farming Activity
Cattle
Bare Land
Time
Time
4
4
CRESUD Diversified Rural Portfolio
~ 900,000 hectares under management in the Region
BOLIVIA
Planted Area & Breakdown (in K ha)
BRAZIL
59
212
6
16
67
107
123
124
FY13
FY 14
FY15e
207
4
21
201
3
22
68
4 farms
11,297 ha
6 farms
124,356 ha
SOYBEAN, CORN &
SUGARCANE
SOYBEAN, CORN &
SUGARCANE
ARGENTINA
PARAGUAY
Argentina
Brazil
8%
Bolivia
Paraguay
5%
4%
4%
3%
17 farms
631,092 ha (*)
52%
1 farm
58,754 ha
24%
SOYBEAN CORN
MEAT & MILK
SOYBEAN & MEAT
(*) 204.679 ha are leased and in concession
LEASING AS A COMPLEMENTARY BUSINESS
Soybean
Corn
Wheat
Sunflower
Sugarcane
Others
Leased to 3rd
5
Strong track record developing & selling Farms
Developed Farm
Over 200k ha developed
Potential to develop 190k ha
190,3
In thousand ha
59,0
28.5
19.1
15.3
7.8
31.0
3.0
30.7
18.0
20.7
13.7
25,2
27.2
3.5
20.3
1.0
11.8
11.3
13.2
10.0
7.7
10.0
7.5
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Argentina
Brazil
Paraguay
15.4
0.0
13.0
2.4
FY 2014
11,5
2,4
7,5
1,7
FY 2015E
Farmland Sales
Avge 2 farms / yr
Gains ~ 200% over BV
110,1
Potential
133.8
USD million
Soybean
72.1
61.7
27.8
20.6
9.0
3.0
10.7
3.9
4.3
1.7
1.4
0.6
10.3
6.9
5.2
3.2
9.7
7.2
7.6
6.6
0.5
0.3
4.7
3.5
13.3
26.1
14.0
21.3
13.1
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
Book Value USD M
Profit USD M
6
6
6
Farmland Sales during FY 2015
ARGENTINA
(in USD million)
BRAZIL
(in USD million)
BOLIVIA
(in USD million)
Lujan - BA
Santa Cruz
de la Sierra
1,058 ha
1,643 ha
89
Boquerón State
27,745 ha
24,624 ha
64
24
23
1
La Adela - Agentina
15
7
3
4
Fon Fon - Bolivia
Profit
NO GAIN
RECOGNITION
Appreciation = 130%
5
10
24
Fraction of Paraguay - Brasil
Cremaq - Brasil
BV
Appreciation = 325%
Appreciation = 70%
IRR (USD) = 11.6%
IRR (USD)= 19.9%
7
Total IRR CREMAQ Sale (USD)
13.1%
7
Regional Farmland Appreciation USD/ha
CAGR (‘05-’15)
9.5%
12.4%
ARGENTINA CORN BELT (USD/ha)
BRASIL MATTO GROSO (USD/ha)
21,538
20,066
22.2%
11.5%
PARAGUAY CORN BELT (USD/ha)
BOLIVIA CORN BELT (USD/ha)
18,136
16,576
17,375
17,000
16,083
9.7%
USA IOWA (USD/ha)
19,628
15,000
15,000
12,792 12,513
9,657
7,201
7,917
7,708
11,825
11,041
10,801
10,533
10,288
9,167
8,777
8,772
8,523
7,985
6,067
5,277
5,120
12,000
3,789
2,486
1,600
1,350
2005
2,654
1,600
1,600
2006
2,928
2,500
2,000
1,850
2007
Purchases
Brazil
2,100
2008
12,000
12,000
10,000
8,500
6,000
2,300
2009
Purchases
Bolivia&Paraguay
7,000
2,500
2010
3,000
2011
3,000
2012
3,500
2013
4,000
2014
4,000
2015e
8
Our largest Farmland Development Case
Los Pozos, Salta ARGENTINA
Turnaround of a Cattle farm into
Cattle & Crop Farmland
Has: 240.000
Cattle infrastructure
Investment USD/ha 250
Bare Land
Acquisition Cost USD/Ha. 10
Crop Investment
USD/ha 650
35,000 heads in 44,000 ha
Land Price: USD/ha 1.500
13,000 ha
Land Price USD/Ha. 2.500
9
IRSA’s Business
10
IRSA Current Diversified Real Estate Portfolio
Rental
Development
International
510.000 sqm GLA
27.5 MM sqm
58.019 sqm GLA
50% of assets
28% of assets
22% of assets
CONDOR HOSP.
TRUST (REIT US)
11
Argentina Real Estate Market´s Strengths
Safeguard against inflation
Unlevered Operations
USD denominated
4,500
Real Estate Prices Evolution
4,200
(USD/sqm)
3,500
3,700
2,800
2,570
2,463
1,750
2000
1,700
2001
2,060
1,800
1,650
1,600 1,500
1,200
2002
Reporte Inmobiliario & LJ Ramos
2003
2004
2,110
1,740
2005
1,930
2006
3,800
3,800
3,498
3,190
3,100
2,280
4,500
2,635
3,407
3,181
2,841
2,090
2007
2008
Residencial Prices New Houses Recoleta (USD)
2009
2010
2011
A+ Offices BA (USD)
2012
2013
2014
12
Creation of IRSA Commercial Properties
A Unique Commercial Real Estate Company
Transfers Office
portfolio to
Renaming
Approved on Feb 5, 2015
(Shareholders’ Meeting)
New Ticker on Nasdaq &
BCBA “IRCP”
Transference of 83,789 sqm of GLA*
Republica
Boston
Inter Plaza Bouchard 710 Suipacha
13
+ 19.597 sqm of Intercontinental II
(Office Land Reserve)
Intercontinetal II
97.8% occupied
Leased at USD/sqm/mth 24.5
Revenues for USD 24,7 million
*18,483 sqm GLA remain under IRSA for potential sale
** Mixed Use Landbank remain under IRSA
Catlinas Plot of Land: Development or Sale?
13
Creation of IRSA Commercial Properties
95.80%
29.99%
HOTELS
LANDBANK
49.00%
INTERNATIONAL
VP 34.00%
SHOPPING
OFFICE
CONDOR HOSP.
Malls
Buildings
TRUST (REIT US)
429,000 sqm of rental GLA
+ Commercial Landbank
Potential to develop: 240,000 sqm of shopping malls
79,000 sqm of offices
14
Shopping Centers:
Strong market position with a diversified portfolio
Positioned in the Most Attractive
Segments of the Population
Targeting different consumer profiles
Buenos Aires
High
(7%)
67%
Mkt share
Mid-High
(17%)
Mid (30%)
Mid-Low (32%)
Mid Income Area
Higher Income Area
Lower Income Area
Low (15%)
Land reserves for future projects
Source: Company Information
15
15
Rental Segment: Strong Operating Figures
Shopping Centers – Annual Tenants’ Sales
(ARS Million)
21,509
16,133
12,482
9,966
+33.3%
(+30.1% SSS)
7,766
3,702
4,194
2008
2009
5,778
2010
2011
2012
Shopping Centers – Quarterly Growth Rate
24.9% 26.0%
22.1%
24.1%
26.3%
2015
(% )
35.6% 35.4%
28.5% 28.6%
2014
Shopping Centers – Revenues Breakdown
(% )
28.9%
2013
29.9% 30.0%
27.1%
FY 2015
34.3%
Brokerage
Fees
3%
1
Other
7%
Admission
rights
9%
Percentage
Rent
27%
Base Rent
54%
Fixed income
16
16
Rental Segment: Strong Operating Figures
Shopping Centers – Portfolio Evolution
(GLA – Th. sqm)
333.9
299.3
309.0
309.0
311.0
FY 12
FY 13
FY14
287.5
232.7
FY 08
FY 09
FY 11
GLA (sqm K)
Distrito Arcos
Shopping Centers – Occupancy Rate
(% )
FY15
Alto Comahue
Shopping Centers – Annual Visitors
(MM)
112
95
99.3% 98.6%
97.5% 97.6%
98.4% 99.1% 98.4% 98.7%
85
74
79
100
86
71
11.6%
2008
2009
2010
2011
2012
2013
2014
2015
2008
2009
2010
2011
2012
2013
2014
2015
17
Openings of Distrito Arcos & Alto Comahue Shopping
 Premium open space Outlet on the Railway Station in Palermo
neighborhood (CABA)
 Opened December 2014 fully occupied
 13,000 sqm (52 stores & 15 stands)
 Capex: ~ ARS 210 million
 Additional 2,000sqm will add 13 stores & 5 stands in a 2nd
development phase (expected opening: FY 2016)
 Capex 2nd phase: ~ ARS 60 million
Source: Company Information
 Leading Shopping mall in the city of Neuquén which experienced
a great progress due to “Vaca Muerta” investment project
 Opened March 2015 90% occupied
 9,500 sqm (104 stores)
 Capex: ~ ARS 280 million
 18,000 additional sqm to develop residential / commercial
18
Shopping Centers Resilient Revenue Model
Revenues from Leases (85%)
% Sales
% Sales
Brokerage Fee
Avge 3X Monthly Base Rent
Admission Fee
% Sales
Avge 6X Monthly Base Rent
BASE RENT
In Advance
Year 1
Year 2
Year 3
Other Revenues (15%)
Stands
Non Traditional Advertising19
Premium portfolio of Office Buildings
9 A+ Office Buildings
111,678 sqm GLA
14 Shopping Centers
309,000
sqm 26.0
GLA
Avge Portfolio
Rent: USD/sqm
Portfolio Occupancy: 98.1%
1,500
stores
Main Tenants:
Danone,
Itaú, Toyota, Kimberly Clark,
Exxon, KPMG,92
Lamillion
Nación, PWC,
Deustche,
Total, etc
annual
visitors
20
Huge Landbank for future commercial projects
Catalinas Norte Offices
~ 35.000 sqm
Shopping San Martín ~ 31.000 sqm
Shopping Tucumán
Shopping Tucumán ~ 15.000 sqm
Shopping Caballito ~ 68.000 sqm
Office Intercontinental II
~ 20.000 sqm
Shopping Paraná ~ 4.000 sqm
Current malls Expansions ~ 115,000 sqm GLA
Shopping Caballito ~ 68.000 sqm
21
Potential to almost double
the current Mall & Office Portfolio
Evolution of Malls’ GLA & Potential
115.0
(Th. sqm)
125.0
49.7
14.0
7.7
2.0
FY 11
FY 12
21.8
2.0
5.2
FY 08
FY 09
FY 13
FY14
FY15
Potential Growth
GLA (sqm K)
Expansions
DOT
Soleil
La Ribera
Arcos Gourmet & Alto Comahue
New Developments
Current Malls' Expansions
Evolution of Offices’ GLA & Potential
236,1
(Th. sqm)
163.7
2008
156.0
2009
140.2
150.9
145.4
2010
2011
2012
Leased Area
*Does not consider Santa Maria, Puerto Retiro (approvals pending)
114.0*
131.8
122,1
2013
2014
Potential Growth
Future Developments
12
22
Mix Uses & residential Landbank for development
Solares de Santa María – Mix Uses
San Martín – Mix Uses
27.5 million total sqm
Espacio Aéreo COTO
Residential
Potential to develop 2,8 MM sqm
Total Book Value: ARS 590 M
Main Landbank Location
Tucumán
GLA: 15.000e
Santa Fe
836 ha
Neuquén
GLA: 10.000e
Paraná (ER)
GLA 4.000e
Caballito
24.300 sqm
USD/sqm* 500
San Martín
160.000 sqm
USD/sqm* 300-400
*Source: Reporte Inmobiliario
Laguna Carrasco - Residential
Puerto Madero
798.000 sqm
USD/sqm* 1.500
Astor Beruti
Astor Caballito
Greenville
~ 50.000 sqm to receive from barter agreements
(137 apartments with its parking spaces & 52 plots of land)
23
International Opportunistic Investments
CONDOR HOSP.
TRUST (REIT US)
14 Shopping Centers
LIPSTICK Building (Stake 49,33%) - 2008
309,000 sqm GLA
GLA: 57,500 sqm
Implict price 1,500
paid: USD/sqm
7,991
stores
(not including ground lease USD/sqm 2500)
Occupancy 92
Jun-15:
91.9%annual visitors
million
IDBD (49% through Dolphin Fund)
US REIT listed in Nasdaq
Settlement: May 11, 2014
IRSA’s indirect stake: 49.0%
Amount Invested by IRSA: USD 300 million
Voting Power in SPPR: 34% 24
IRSA Investment: USD 30 MM
International:
Investment
in Appreciation
IDBD
Urban Real Estate
15 years
Largest Israeli Diversified Holding
Extra
Holdings
IFISA
Dolphin
49,0%
17,7%
14,0%
IDBD
PBC
ADAMA
ELRON
Others
19,0%
One of Israel’s largest and worldclass asset collection
CELLCOM
SHUFERSAL
CLAL
o Feb-15: Addition investment of USD 105 million in the rights offering issued by IDBD. Therefore, Dolphin’s stake in IDBD increased
to 49%. IFISA acquired 12.5% and ETH dilluted to 16.2%
o Election of Eduardo Sergio Elsztain as sole Chairman of the Board of Directors of IDBD
o Dolphin & IFISA exercise the warrants Series 4 issued by IDBD for NIS 150 MM. IFISA increased stake to 17.7% and ETH dilluted to
14.0%
o We are expecting the resolution of an arbitration proceding with ETH for the next days
o IDBD Results on IRSA FY15: Loss of ARS 381.7 millon (vs FY14 Loss of -771.7 & Loss of ARS 944.6 million in 9M15)
25
International: Investment in IDB Development Corp.
Investment & future commitments
Amount invested by IRSA in Dolphin
Underwriting Commitments 2015
Amount
~ USD 300 million
NIS 200 million
Obligations
Tender Offer 2015
NIS 125 million
Tender Offer 2016
NIS 131 million
IDBD Share Evolution
NIS Cents
700
600
Market Value to IRSA
USD Million
1st right
offering
500
Closing
400
300
200
100
-61.0%
2nd right
offering
06/30
195.6
168
03/31
134.4
49.0%
220.5
IRSA stake
68
24.8%
-
FY14
FY15
26
Thanks!
FY 2015
Appendix
Consolidated Debt as of June 30, 2015
Description
Amount
(USD MM)
Cresud Total Debt
IRSA Total Debt
IRSA CP Total Debt (*)
Brasilagro Total Debt
Consolidated Total Debt
Consolidated Cash
Debt Repurchase
Consolidated Net Debt
Net debt / Assets (BV): 45.9%
329.5
380.1
408.1
29.5
900.8
69.7
27.1
803.2
Debt amortization schedule
(Cresud Standalone - USD million)
127.4
68.9
60.6
42.8
18.5
2015
2016
2017
2018
2019-2022
29
IRSA’s Consolidated Debt as of June 30, 2015
IRSA Stand Alone
Debt amortization schedule
USD million
96.4
150.0
77.6
2015
5.1
2016
1.6
2017
0.0
2018
2019
Debt: USD 84.3 MM + USD 300 MM (Bonds)
Cash: USD 41.3 MM
IRSA CP credit for USD 246.4 MM
Debt Repurchase: USD 9.4 MM
Net Debt: USD 87.2 MM
2020
IRSA Commercial Properties Stand Alone
Debt amortization schedule
USD million
Debt: USD 409.0 MM
Cash: USD 33.4 MM
Debt Repurchase: USD 1.7 MM
Net Debt: USD 373.9 MM
EBITDA* FY15: USD 175 MM
Net Debt/EBITDA*: 2.1x
150.0
120.4
38.0
2015
4.1
2016
2017
96.4
0.1
2018
*FY15EBITDA, excluding the effect of the office portfolio transfered on
Dec-14 and considering only 6M of office operations
2019
2020
30