InstitutionalPresentation
IIIQ FY 2019
1
29.9%82.3%
VP 18.9% Dolphin 49.0%
HOTELS
SANTA MARÍA & OTHER
LANDBANK INTERNATIONAL
SHOPPINGMALLS
OFFICEBUILDINGS
COMMERCIAL LANDBANK
100.0% 82.3%
62.4%
IRSA: Leading Real Estate Company in Argentina
2
▪ Leading real estate company in Argentina with opportunistic
assets abroad.
▪ Majority shareholder of IRSA Propiedades Comerciales,
leading commercial real estate company in Argentina with
~447,000 sqm of GLA located in premium locations.
IRCP at a glance▪ Best-in-Class Operator
Shopping Malls
95% occupancy
75% EBITDA Mg
▪ High brand recognition & customer loyalty
Valuable customers information & technology
innovation
110 mnAnnual Mall visitors
2.5xArgentina’s population
15 Shopping Malls
332k sqm GLA
67% Market Share BA City
8 Office Buildings
115k sqm GLA
11% Market Share A+
BA City
▪ Unique Portfolio of Prime Commercial Real Estate
Offices
91% occupancy
80% EBITDA Mg
BEST
Real Estate
Company
Top of mindShopping Malls
3
• Leading commercial real estate company in Argentina• Listed on Nasdaq & ByMA• Controlled 82.3% by IRSA Inversiones y Representaciones
Premium Portfolio of Shopping Malls
High income AreaMid Income AreaLow Income Area
USD 102 MN LTM EBITDAUSD 1.1 BN Book Value mar’19
(USD 2.0 BN dec’17)
BA City Argentina
4
Premium Portfolio of Office Buildings
Expanding Corporate North AreaBusiness CenterAAA LocationBack Office Center
USD 18 MM LTM EBITDAUSD 0.3 BN Book Value
BA City
200 Della Paolera(FY 2020)
Est. EBITDA~USD 10-12 MMZetta Building
(2H FY2019)Est. EBITDA~USD 9MM
5
Offices – Leases USD/sqm/month & OccupancySame Shopping Malls’ Sales
(% Var i.a.)
Shopping Malls & OfficesOperating Figures
25,8 26,5 26,3
98%
91% 91%
IIIQ17 IIIQ18 IIIQ19
337,401 340,111332,119
98% 99%
95%
IIIQ17 IIIQ18 IIIQ19
Offices – Stock (sqm GLA) Shopping Malls – Sqm GLA (Th.) & Occupancy (%)
Mainly due to 12,600 sqm vacancy generated by Walmart in DOT Baires
Shopping
end of concession
Excluding this effect, IIIQ 19 occupancy would have been
98.3%
+ 9.2% - 1.4%
+74.5%
Zetta Building
200 Della Paolera
77,252 84,361 83,205 83,205
115,205
32,000
30,000115,208
145,205
IIIQ17 IIIQ18 IIIQ19 FY19E FY20E
Excluding
IIIQ19Nominal Terms: 31.2%
Real Terms: -13.6%
21,2%18,3% 19,5% 18,3%
22,3% 22,7%27,3% 28,7%
24,4% 24,7%
29,6%
-14,5% -14,1%
-2,9% -2,1%
2,8%-0,1% 1,6% 1,2%
-8,1%
-15,5% -14,7%
IQ 17 IIQ 17 IIIQ 17 IVQ 17 IQ 18 IIQ 18 IIIQ 18 IVQ 18 IQ 19 IIQ 19 IIIQ 19
Nominal terms Real terms
6
Our land reserve will allow us to significantly expand our commercial
real estate portfolio
We have a robust pipeline for shopping malls… …as well as for premium office properties
115 115 115
1062 106
221
Current New developments Current GLA &pipeline
1.9x
332 332
128 130 128
1181 118
580
Current Brownfield Greenfield Current GLA &pipeline
1.7x
~19,000 sqm currently under construction or
to start soon
~35,000 sqm currently under construction
In existing land reserve In existing land reserve7
“200 Della Paolera” Office building (under development in Catalinas)
87%
13%
Current Ownership
35,000 GLA sqm
Total Project
FY 2020 Est. opening
USD 10-12mmEst. EBITDA
51.6% Work Progress*
8
*As of March 31, 2019
32,000 GLA sqm
~ USD 9mmEst. EBITDA
USD 60 mmEst. investment
Fully Leased
9
80%
20%
Zetta building OpeningMay 6, 2019
The first building of the
Office Park developed in
the north area of
BA City
15% Cap Rate
Polo Dot Full Project
Existing Shopping Mall
Zetta BuildingPolo Dot 1st stage
Polo Dot 2nd stage
Polo Dot 3rd stage
Philips BuildingFuture Recycling
Existing Office Building
Future Mall Expansion
10
Shopping malls´ Expansions
Alto Palermo
City of Buenos AiresHighest sales/sqm shopping mall
US$28.5mmestimated investment
FY2020opening date
3,900sqm GLA
11
10.5% Work Progress**As of March 31, 2019
Recent Approval: La Plata Mixed-use Project
Land Plot
78,000 sqm
Capacity to develop
100,000 sqm
La Plata
BA City
La Plata is the 5th
highly populated
city of Argentina
with no shopping
malls 12
Recent Approval: Caballito Project
Land Plot of 23,000 sqmCapacity to develop
Residential: ~ 76,000 sqm Retail: ~ 11,000 sqm
13
LibertadorBA city
IntercontinentalBA city
Llao Llao ResortBariloche city
Argentina Business Center - Hotels
194 198 203
69,6% 71,9% 69,3%
IIIQ17 IIIQ18 IIIQ19
Rate USD/room & Occupancy evolution
69
483
9M18 9M19
EBITDA (ARS MM)
+ 600%
On Feb-19, IRSA acquired 20% of the shares of HotelesArgentinos S.A., owner of the
hotel formerly known as Sheraton Liberatdor
Current stake: 100%14
San Luis
Neuquén
Montevideo
(Uruguay)
Paraná
Tucumán
Pereiraola
Caballito
Pilar
Pontevedra
Mariano Acosta
Merlo
La Adela
Puerto Retiro
UOM LujanLa Plata
Coto Abasto
(air surface)San Martín
Land Plot
Maltería
Hudson
Argentina BA Province
USD 460 MN
Book Value
Santa María del Plata
City of BA
~20 mn sqm
Land Surface
~ 700,000 sq of Premium Real Estate to be developed in the best locations in BA City (Approvals pending)15
Premium mixed-use Landbank for future developments
7 7,6
17,65
12.85
31/3/2017 30/9/2017 31/3/2018 30/9/2018 31/3/2019
Argentina Business Center – Banco Hipotecario
IRSA29.9%
Ownership
Market Value to IRSA(USD million)
Share Price evolution
Results to IRSA
▪ The bank has generated a loss of ARS 533 million during 9M19 comparedto a gain of ARS 348 million during 9M 18.
-27%
IIIQ 19 vs.
IIIQ 18
2019 main work fronts:
• Liabilities: to preserve cash and long term deposits, adjusting rates to market changes.
• Assets: increase of commissions, fees and preservation of the quality of the portfolio in a context of higher delinquency rates.
• Balance Sheet equilibrium: preserving the solvency and liquidity, with focus on the funding.
179
393
133 134
IIIQ17 IIIQ18 IIIQ19 Current as of
May,7
16
Argentina Business Center - International
Leases (USD MM) & Occupancy NOI (USD MM)
26 2627
FY16 FY17 FY18
Market Value to IRSA(USD million)
IRSA18.9%
FLOAT 56.8%STEPSTONE
24.3%
Ownership
Edificio Lipstick
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58,000 sqm of GLA in 34 floors
69 78 77
95% 97% 96%
FY17 FY18 IIIQ19
*3,3mm en preferidas E + 0,7 promissory note
22,6 20,3 21,9
4
25,9
IIIQ 18 IIIQ 19 Current as of
May 9, 2019
Investment in IDB & DIC – IsraelCurrent Corporate Structure (as of mar-19)
100% 82.3%
Indirectly*
68.8%100% 20.3%**19.3% 44.1% 68.8% 59.5% 26.0%
45.4% 51.7%
* There is a non recourse intercompany loan between Dolphin (borrower) and IDB (lender) due to the transference of DIC shares. This loan is guaranteed with DIC shares sold.** 15% of the shares are held by a trustee. IDB sold 24% of Clal shares as part of swap transactions.
Energy Tourism InsuranceFinancial
InvestmentsTelecommunications
Agriculture Rental Properties
Real Estate Technology Supermarket
Working to reduce one more layer of public companies before December 2019, according to Concentration Law requirement
18
4.947
3.452
1.000
2.000
3.000
4.000
5.000
6.000
7.000
Equity
Market cap
Market Cap vs. Book Value(NIS million)
70% BV
Clal Insurance(20.3% IDB current stake + 24.0% through swaps)
Recent Material events
✓ Control permit requested on Mar-19 – under process
✓ Sale agreements signed with third non-related parties
▪~ 10% already sold (5% of the shares held by the trustee and 5% of the Swaps transactions) to 2 private investors, at NIS 47.7.
▪ In the event of gaining control permit, one of the investors received an option to buy another 3% at NIS 50.
▪An additional option was given for a third investor (3-5% at NIS 47.7), financed by 90% seller loan.
✓ After the sale, IDB total exposure reduced to 45.3% (20.3% directly and 24% through SWAPS)
✓ Positive market reaction to thesale: total 20% increase 3 daysfollowing the sale
✓ Current Market Cap / Equity: 70%
USD 967 MM
Mkt Cap
19
PBC (67.5% DIC Stake) & Gav Yam (51.7% PBC Stake)
Leading real estate companies in Israel
Office & hi-tech parkCommercial & RetailIndustrial & LogisticsProperties under constructionResidentialLand reserves
HSBC Building - Manhattan
Matam Park - Haifa
Herzeliva North
Tivoli - Las Vegas
1,160,000 sqmin Israel
97%Occupancy
670,000 sqmLand Bank
142,000 sqmin USA
Market CapUSD 542 MM
USD 1,047MM 20
Real Estate projects under development in Israel
The New Haifa Bay – Logistic CenterOpening during 2H FY 2019
TOHA: 95% already leased. Opening during 2H FY 2019
NEGEV: 3 of 4 buildings finished
MATAM-YAM: Recently finished Amazon main tenant
8 Projects
194,000 sqm
REHOVOT: 3 of 4 buildings finished
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Shufersal (26.0% DIC stake): Israel’s Leading Food Retailer
✓Traded on TASE – Market cap USD 1,589 MM
✓Operates 338 stores nationwide
• Shufersal: 274 stores• New Pharm: 64 stores
✓Holds a real estate portfolio of ~ NIS 3 billion
Private Label - % of Total Sales
22,1%21,6%
22,1% 22,2%
24,0% 24,0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q2 2018 Q3 2018
Online Sales - % of Total Sales
11,8%10,5%
11,2%12,4%
13,5% 13,6%
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q2 2018 Q3 2018
New Pharm recent acquisition2nd largest pharmacy chain in Israel
22
Largest Telecommunications Provider(43.9% DIC stake)
20 37
50
6374
87
99
111
124
137
154
170
184195
206
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Cellcom TV Subscribers (Th.)
✓ Fastest growing company in TV, internet & fixed line services:
• ISP Service for 685k households
• Over 195,000 pay TV subscribers
✓Israel’s largest cellular provider – 2.8 million subscribers26% market share
✓Competition:
•Operates in competitive environment -5 cellular providers.
•Cellular: ARPU NIS 51.8 vs ~ NIS 163 in the US.
✓Transition from cellular company to communication Group:
✓Market cap USD 524 MM 23
Deleverage at IDB & DIC
24
Net Debt (USD million)
Stand alone Stand alone
1290 1312
923
781749
711
613
dec-2012 dec-2013 dec-2014 dec-2015 dec-2016 dec-2017 dec-2018
1321
1466
951 954
740
966
632
dec-2012 dec-2013 dec-2014 dec-2015 dec-2016 dec-2017 dec-2018
Net Debt as of March 31, 2019*(USD millions)
Amortization Schedule
IRSA Net Debt 313.2
*Does not include IRCP & IDB/DIC debt
17.0
204.1
83.2
8.8
FY 2019 FY 2020 FY 2021 FY 2022
Subsequent events:
▪ Credit line with IRCP for up to USD 180 mm, for up to 3 years, at an interest rate equal to IRSA 2020 or future issuances.
▪ In May 2019, we issued a local Bond for USD 96.3 mm at a fixed annual interest rate of 10.0% due November 2020 to refinance short-term debt
96.3Recently
issued
25
Investment Highlights
ROMPECABEZAS BR PROPERTIES
LeadingReal Estate Company
Strong Capital
Markets track record
25 yearsListed in NYSE
2.1 mm sqmworldwide
High standards of
Corporate Governance
Diversified country risk
ArgentinaIsraelUSA
UniquePortfolio of
Real Assetsacross the world Financial
Solvency26