IIQ 2016 Conference Call February 17, 2016

Transcription

1 IIQ 2016 Conference Call February 17, 2016 Llao Llao Resort Bariloche (Rio Negro Argentina) Hosted by: Alejandro G. Elsztain, IIVP Daniel R. Elsztain, COO Matías I. Gaivironsky, CFO 1

2 Main Highlights for 6M 2016 Consolidated Basis o On October 11, the Group took control of IDB Development Corp and started consolidating IDBD Assets & Liabilities. Results will be consolidated next quarter IIIQ16 Financial Consolidated Results 6M16 orevenues from Sales, Leases & Services*: ARS 1,570 million (+24.7% vs. 6M15) o EBITDA**: ARS 2,054 million (+15% vs. 6M15) o Net Income: Loss of ARS million (Loss of ARS 487 million to IRSA Shareholders) (mainly due to a decrease in the stock price of IDBD Insurance company Clal, lower financial results and higher exchange rate differences) o We hedged part of our USD denominated debt to avoid higher losses from the currency devaluation - Positive Results of ARS 911 million in 6M16 * Revenues from Sales, Leases & Services (does not include revenues from expenses and common advertising) **EBITDA = Operating Result + D&A 2 2

3 Main Highlights for 6M 2016 o EBITDA Malls 6M16: ARS millon (+36.4% vs 6M15) o EBITDA Offices* 6M16: ARS 87.3 million (+309.7% vs 6M15) o Malls Tenant Sales increased by 39.5% in 6M16 (+32.0% same stores sales) o Office Leases remained stable at USD/sqm 25.6 o Gain on Sale of Investment Properties for ARS MM (5,963 sqm of Intercontinental Plaza Building) o Additional partial sale of 851 sqm of Intercontinental Plaza in February 2016 for ARS 41.5 million. Gain of ~ ARS 19.8 million to be recognized next quarter o Occupancy stood at high levels: 99.0% in shopping malls & 94.0% in offices o We will make a separate webcast for IRSA Commercial Properties since next quarter IIIQ16 o IRSA sold during the quarter 0.7% of IRSA Commercial Properties reducing stake from 95.90% to 95.22% o Sales of Investment Properties for ARS 808 million generating a Gain of ARS 729 million o Partial Sale of Catalinas Office to be built (4 floors + 44 parking lots) for ARS million + USD 12.3 million o Investment in Banco Hipotecario (29,94% stake) generated a gain of ARS million (+ 141% vs 6M15) o Investment in IDBD: In October 2015, Extra Holding Limited soldits investment. IFISA was the buyer increasing stake to 31%. IRSA remained with 49% through Dolphin. Effective control since then. *EBITDA = Operating Result + D&A excluding one shot tax expenses of the transference of assets As a subsequent event, 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 3

4 Management Roadshow CONFIDENTIAL June

5 dic-11 ene-12 feb-12 mar-12 abr-12 may-12 jun-12 jul-12 ago-12 sep-12 oct-12 nov-12 dic-12 ene-13 feb-13 mar-13 abr-13 may-13 jun-13 jul-13 ago-13 sep-13 oct-13 nov-13 dic-13 ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14 ago-14 sep-14 oct-14 nov-14 dic-14 ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 Shopping Centers: Strong Operating Figures Shopping Centers Tenants Sales (Quarterly Growth Rate - %) 44,5% 30,5% 24,9% 26,0% 22,1% 24,1% 28,9% 26,3% 28,5% 28,6% 29,9% 30,0% 27,1% 35,6% 35,4% 34,3% 31,3% 30,1% 36,3% 35,7% 32,5% Tenant Sales Same Store Sales 96,5% Shopping Centers Occupancy % 98,5% 98,7% 98,9% 99,0% Summary Main Figures (6M 2016) Stock (sqm) Occupancy Sales (ARS) Visitors 6M 15 9M 15 FY 15 3M 16 6M 16 5

6 A+ Office Industry Outlook & IRCP main figures A+ Office Market BA Sale Prices (USD/sqm) Parcial Sales of Intercontinental Plaza September Operating Figures IIQ16 Stock: 79,945 sqm Monthly Lease (USD/sqm) Occupancy % % e Partial Sale for ARS 324,0 mm 5,963 sqm sold (7 floors + 56 parking lots) USD/sqm 5, % Cap Rate Gain recognition: ARS million February 2016 (Subsequent Event) Partial Sale for ARS 41.5 mm 851 sqm sold (1 floor + 8 parkings) Gain recognition; ARS 19.8 million (next quarter) Remaining sqm: 6,308 Source: L.J. Ramos 6

7 Development of existing malls Distrito Arcos (BA City) 2 nd Phase and Alto Rosario (Santa Fe) 2 nd Phase Development o Expansion of 3,564 sqm of GLA o Capex: ~ ARS 74 million o Development Period: (May-15 to Mar-16) o Development Progress: 96% o Agreements signed: 60% o New Tenants: Farmacity, Akiabara, Wendy s & Megatlon Expansion Project o Expansion of 650 sqm of GLA o Capex: ~ ARS 15 million o Development Period: (Sep-15 to Mar-16) o Development Progress: 65% o Agreements signed: 100% onew Tenants: Musimundo, Kevingston & Le-Paine UNDER DEVELOPMENT Oct-2015: Opening of Museum FOLA Fototeca latinoamericana UNDER DEVELOPMENT 7

8 Capex 2017/2018: 1 st Stage MIXED USE POLO DOT PROJECT Adjoining DOT Plot of Land 1 (1st stage) ~ 28,000 sqm GLA Capex: ~ USD 50 million Adjoining DOT Plot of Land 2 Two Office Towers / hotels 2nd Stage ~ 38,400 sqm 2nd Stage Dot Building Dot Baires Mall 1st Stage 2017/2018 ~ USD 50 MM 2nd Stage POLO DOT FULL 5 YRS PROJECT ~ 66,400 leasable sqm 8

9 Capex 2017/2018: Current Malls Expansions Alto Palermo Lindero Project Food Court moving to new 3rd level ~ 4,000 sqm new GLA Investment: ~ USD 12 million 9

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11 Sales of Investment Properties 6M 2016 Dique IV Office (Puerto Madero - BA) Maipú 1300 Office (Retiro BA) Isla Sirgadero Plot (Santa Fe Province) Total Partial Total 11,242 sqm 3,451 sqm 826 ha ARS million x BV x BV 7.7x BV 13 4 Profit BV 11

12 Partial Sale of Catalinas Office Building (to be built) ~ 35,000 sqm of GLA Green Building 30 floors, parking and amenities 4,896 sqm sold at ARS 180 MM + USD 12 MM USD/smq ~ 5,000 to deliver in 4y Solares de Santa María Mix Uses Espacio Aéreo COTO Residential Laguna Carrasco - Residential

13 International Opportunistic Investments Lisptick Building Condor Hospitality Trust (Nasdaq: CDOR) 34% Voting Power Supertel Hospitality Inc. (SPPR:Nasdaq) Renamed Condor Hospitality Trust. New Ticker in Nasdaq: CDOR New Management appointed (CEO, CFO & CAO) New Strategy: Selective hotel sales to achieve better margin & scale hotels Lipstick Operating Figures Leases USD/sqm & Occupancy 95,1% 91,9% 63,7 88,9% 64,7 65,3 FY2014 FY2015 6M16 Rent (USD / sqm) Occupancy 13

14 International: Urban Real Estate Investment 15 years in Appreciation IDBD Investment Highlights 6M 2016 On October 2015, IFISA acquired Extra stake increasing to 31.7% its stake in IDBD. Dolphin remained with 49%. Ownership Structure Dolphin IFISA Others 49.00% 31.70% 19.30% During December 2015, we agreed to pospone the launching of the 1st tender offer to March We have appointed an acting CEO for IDBD and DIC and a new CFO for DIC. During December 2015, the sale process of Clal was cancelled As a subsequent event, 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 Amount Amount invested by IRSA in Dolphin ~ USD 350 million Obligations Tender Offer March 2016 NIS 257 million Tender Offer December 2016 NIS 262 million 100% Tender offer obligation recorded as of dec- 15: ARS 1,653 million 14

15 Financial Results 15

16 IDBD Consolidation Timeline o On October 11, 2015 the Group controlled by Eduardo S. Elsztain took effective control of IDB Development Corp; and as such IRSA started consolidating IDBD as of this date. o IRSA s IIQ16 Financial Statements, released on February 11, 2016 consolidates 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 September October December March Annual and Last quarter Results (Non consolidation due to lack of control) Effective Control Assets & Liabilities IDBD Consolidation Results IDBD Consolidation 16

17 IDBD Consolidation Financial Statement Exposure 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) 17 17

18 IDBD Consolidation: Segment information o Segments of IRSA will look separately as follows ARGENTINA Business Center Segments of IRSA s operations from Argentina looks the same than before consolidation Shopping Centers Office and Others Sales & Development Hotels International Financial & Others ISRAEL Business Center Real Estate Supermarkets Agrochemicals Telecommunications Insurance Others 18 18

19 En ARS Bn IRSA s Consolidated Balance Sheet IIQ 2016 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 19

20 Financial Overview Revenues by Segment (ARS million) +37,7% +370,7% 1,193.5 EBITDA* & EBITDA Mg by Segment ARS million +36,4% +309,9% Shopping Centers Offices Shopping Centers Offices 6M15 6M16 6M15 6M16 EBITDA Margin by Segment - % EBITDA Breakdown - % Shoppings* Offices* 11,2% 0,0% Shopping Centers IIQ % 77.6% 7,6% Offices IIQ % 89.1% var YoY -0.7 pp -11.5pp 81,3% S&D Financial and others In November IRSA CP distributed dividends for a total amount of ARS 283 million (div yield 2.4%) EBITDA = Operating Income + D&A, excluding transference of assets taxes 20

21 Consolidated Operating Income by Segment 6M16 Rental Segment (ARS million) Sales & Development (ARS million) Financial & Others (ARS million) +47% +21% 937,0 933,0 774,0 635, % 89 6M 15 6M 16 6M 15 6M 16 6M15 6M16 21

22 Consolidated Financial Results 6M ,586 1,948 Consolidated Financial Results (ARS million) Controlling shareholders Non-controling intereset Operating Income Results of associates and joint ventures -2,224 Net Financial Results Income Tax Net Result Net FX Losses: ARS MM Net Financial Results Main Effects 6M 2016 FV of CLAL: Loss of ARS MM 6M 15 6M 16 Exchange Rate Evolution (ARS/USD) 6M15 +5,1% 6M16 +43,5% Other FV of financial assets: Loss of ARS MM Net Financial Costs: Loss of ARS MM Change in valuation method of IDBD and tender offers: Loss of ARS 389 MM FX Losses: ARS 1,620 MM Hedge Gain: ARS 911 MM FX Gain: ARS 311 MM Net FX Losses: ARS MM 22

23 IRSA s consolidated debt as of December 31, 2015 IRSA Stand Alone Debt amortization schedule USD million 150,0 108,8 90,0 60,0 Debt: USD MM + USD 300 MM (Bonds) Cash & Equivalents: USD 62.6 MM IRSA CP credit for USD MM Debt Repurchase: USD 3.5 MM Net Debt: USD MM 1, IRSA Commercial Properties Stand Alone Debt amortization schedule USD million 150,0 90,0 Debt: USD MM Cash & Equivalents: USD MM Debt Repurchase: USD 1.7 MM Net Debt: USD MM Net Debt/EBITDA*: 1.1x

24 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 2015 ended June 30, 2015, which are available for you in our web sites.