IDBD Consolidation Effect on IRSA s Financial Statements. February 2016

Transcription

1 IDBD Consolidation Effect on IRSA s Financial Statements February

2 IDBD Consolidation on IRSA s Financial Statements Timeline o On October 11, the Group controlled by Eduardo S. Elsztain took effective control of IDB Development Corp; and as such IRSA started consolidating IDBD as from this date. o IRSA s IIQ16 Financial Statements, to be release on February 11, 2016 will only consolidate IDBD Assets and Liabilities as of the date the effective control was gained. o IDBD Results will be consolidated on IRSA s Financial Statements with a three month lag, starting as from the IIIQ16 June 30 September 30 October 11 December 31 March Annual and Last quarter Results (Non consolidation due to lack of control) Effective Control Assets & Liabilities IDBD Consolidation Results IDBD Consolidation Accounting facts o As information is not available on timeline basis, consolidation will be made with a three month lag as permitted by accounting standards. o The consolidation of IDBD assets and liabilities was made based on unaudited preliminary information. The Purchase Price Allocation process is expected to be finalized by June 30, 2016 concurrently with our year-end. o The process includes the harmonization of accounting policies to be used. o The information is to be reviewed / audited by our auditors, PwC. 2

3 IDBD at a Glance Business Description Ownership Structure Largest and most well diversified Conglomerate in Israel Dolphin IFISA Others Controller of Israel s largest telecommunications, agrochemicals and supermarkets company. Controller of PBC, leading real estate company in Israel Controller of the 2 nd insurance company in Israel ~ Listed on Tel Aviv Stock Exchange since May 2014 IDBG 49,0% 31,7% 19,3% 76,5% IDB Tourism DIC 40,0% IDBD PBC ADAMA ELRON 73,9% 55,0% 50,3% CLAL CELLCO M 41,8% SHUFERS AL 47,1% Investment made by IRSA & Future Commitments Amount Amount invested by IRSA in Dolphin ~ USD 350 million Obligations Tender Offer March 2016 Tender Offer June 2016 NIS 257 million NIS 262 million 3

4 Balance Sheet Disclosure o We divided the operations in two Business Centers: Argentina & Israel o All the information of IRSA s operations in Argentina will be disclosed separately from the operations of IDBD (Israel) IRSA Inversiones y Representaciones Sociedad Anónima Argentina Business Center IRSA Propiedades Comerciales S.A. Nuevas Fronteras S.A. Llao Llao Resorts S.A. New Lipstick LLC (i) Condor Hospitality Trust (i) Banco Hipotecario S.A. (i) Israel Business Center IDB Development Corporation Ltd. IDB Group Investment Inc. IDB Tourism (2009) Ltd. Discount Investment Corporation Ltd. CLAL Insurance Enterprices Ltd. (i) Property & Building Corp. Shufersal Ltd. Adama Agricultural Solutions Ltd. (i) Cellcom Israel Ltd. Elron Electronic Industries Ltd. (i) Companies not consolidated (registered as equity investees) 4

5 Balance Sheet Disclosure: Segment information o Segments of IRSA will look separately as follows Segments of IRSA s operations from Argentina looks the same than before consolidation December 31, Argentina Business Center Shopping Centers Revenues... Costs... Office and Others Sales & Development Hotels International Financial Operations & Others Total Gross/Loss Profit... Result on Sales of Investment Properties... G&A... Sales Expenses... Other Net Operating Result... Operating Income... Associates and Joint Venture Results... Segment Profit/Loss... Investment Properties... Property, Plant and Equipment... Properties for sale... Goodwill... Rights to receive future units from barter transactions... Inventories... Investments in associates and Joint Ventures... Operating Assets... Israel Business Center Information to be included next quarter (IIIQ16) Information to be included this quarter (IIQ16) Revenues... Costs... Gross Profit \ (Loss)... Segment Profit \ (Loss)... Operating Assets... Operating Liabilites... Real Estate Supermarkets Agrochemicals Telecommunications Insurance Others Total 5

6 En ARS Bn IDBD Assets & Liabilities Consolidation An accounting effect Assets Liabilities ~13x ~ 17x IDBD debt non recourse to IRSA 10 7 Assets (BV) Debt (IBL) Solares de Santa María Mix Uses o Research Analysts NAV Calculation states that IDBD investment represents ~ 10% of IRSA s Assets at Market Value and agrees that this consolidation is just an accounting matter 6

7 Contact Information Cautionary Statement ALEJANDRO ELSZTAIN II VP MATÍAS GAIVIRONSKY CFO Tel +(54 11) Corporate Offices Intercontinental Plaza Moreno Floor Tel +(54 11) Fax +(54 11) C1091AAQ City of Buenos Aires Argentina NYSE Symbol: IRS BASE Symbol: IRSA Follow us on Independent Auditors PricewaterhouseCoopers Argentina Tel +(54 11) Bouchard 557 7º C1106ABG City of Buenos Aires Argentina 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 ended June 30,, which are available for you in our web sites.