IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — IRSA Inversiones y Representaciones Sociedad Anónima — Investor Presentation (April 2021)
33 slides from IRSA Inversiones y Representaciones SA's investor presentation, April 2021
Slide 1: IRSA Equity Follow On Presentation – April 2021
IRSA LEADING REAL ESTATE COMPANY EQUITY FOLLOW ON PRESENTATION – APRIL 2021 1
Slide 2: About Us
ABOUT US LEADING REAL ESTATE IN ARGENTINA ✓ 30 years acquiring, developing and operating real estate ✓ 25 years listed on the NYSE and accessing capital markets ✓ Rental Portfolio of more than 500,000 sqm of GLA RENTAL PROPERTIES Controlling shareholder of IRCP (BYMA:IRCP ; NASDAQ:IRCP), leader in S
Slide 3: Equity Value Opportunity
EQUITY VALUE OPPORTUNITY M E RVA L ( U S D I N D E X ) 1990 - 2020 2018/2020 1800 Argentinian Crisis + COVID19 1600 1400 Post Convertibility Asian Crisis European Sovereign Bubble Debt Crisis 1200 US Financial Crisis 1000 Dot Com Crash 2001-2002 Argentinian 800 Default 600 400 200 Tequila Brazilian
Slide 4: Equity Value Opportunity: Maximum Drawdowns and Recoveries
EQUITY VALUE OPPORTUNITY M E RVA L ( U S D I N D E X ) M A X I M U M D R AW D OW N S A N D 1 2 M O N T H S R ECOV E R I ES 164% 158% 98% 90% 75% 55% -64% -64% -65% -64% -69% -79% -85% 4 Source: Bloomberg / AR partners
Slide 5: Real Estate in Argentina
REAL ESTATE IN ARGENTINA SAV E H EAV E N D E N O M I N AT E D I N D O L L A RS C A S H O P E R AT I O N S ( M O R TG AG E S / G D P < 1 % ) 5.000 5.000 4.900 4.800 4.700 4.350 4.400 -18% 4.200 4.200 4.000 3.400 CABA A+ Office (USD/sqm) 3.100 3.100 CABA used apartments (USD/sqm) 2.800 2.800 2.570 2.2
Slide 6: Track Record Managing Crisis
TRACK RECORD MANAGING CRISIS T H RO U G H A S S E T SA L ES , E X P E N S ES R E D U C T I O N A N D F I N A N C I A L T R A N SAC T I O N S 15,00% ARGENTINE GDP – Real Growth % 10,00% 5,00% 0,00% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 7: Track Record Managing Crisis: COVID Pandemic
TRACK RECORD MANAGING CRISIS 2 0 2 0 COV I D PA N D E M I C 7 M O N T H C LO S U R E O F M A L L S A N D H OT E L S O P E R AT I O N S 486 REAL ESTATE ASSET SALES USD MILLION IRSA&IRCP 2020 405,3 DEBT MATURITIES 16,9 USD MM 217,8 “200 Della Paolera” 2 floors 87,2 83,4 Jun-20 “Bouchard 710” building
Slide 8: Equity Value Opportunity: IRSA Share Price Evolution
EQUITY VALUE OPPORTUNITY I RS S H A R E P R I C E E VO LU T I O N IRSA Portfolio 2002 2008 2020 crisis crisis crisis IRSA (ADR) 40 Investment in IRSA CP 47.9% 63.3% 80.0% Shopping malls 10 – 238k sqm 15 – 333k sqm 7 – 141k sqm GLA GLA GLA 35 Office buildings 4 – 55k sqm GLA 8 – 115k sqm GLA 7 – 114k
Slide 9: Our Strategy
OUR STRATEGY YOUR TITLE 01 YOUR TITLE 02 OPERATING PROFITABILITY INNOVATION AND GROWTH SUSTAINABILITY Our premium locations and our Pioneers in innovative real estate We are part of the communities leadership position in Argentina, developments in Argentina due to where our business units operate. t
Slide 10: Malls' Portfolio
MALLS’ PORTFOLIO 15 67% BA City # Malls Market Share 333,000 GLA sqm 1,557 # Stores 10
Slide 11: Office Portfolio
2 0 0 D E L L A PA O L E R A 30 Floors 35,000 SQM OF GLA OFFICE PORTFOLIO 316 Parking lots 7 28,000 Office buildings IRCP GLA 114,000 75% sqm Occupancy 10% BA City Market Share New headquarters 11 Opened on Dec-20
Slide 12: Office Buildings
OFFICE BUILDINGS AC T I V E P O RT FO L I O M A N AG E M E N T F L I G H T TO Q UA L I T Y S T R AT E G Y CAPITAL CONTROLS CAPITAL CONTROLS Intercontinental 200 Della Boston 200 Della Paolera Paolera Tower 5,000 Acquisitions Sales 4,500 A+ Offices prices Maipú USD/sqm Rulero Bouchard 710 Intercontin
Slide 13: Hotel Portfolio
HOTEL PORTFOLIO 3 18.9% 15 Premium hotels in Argentina IRSA stake in Condor hotels 79,000 8 sqm states across US 718 1,908 rooms rooms 13
Slide 14: Properties for Mixed Use Developments
Caballito (BA city) PROPERTIES FOR MIXED USE DEVELOPMENTS San Martin (BA province) 18 17.4 Polo Dot (BA city) # Land Reserves Total surface (mm sqm) 700k sqm 6.2 Santa María Plot Buildable surface Puerto Madero – BA city (mm sqm) (approvals pending) Capacity to almost double current rental portfolio
Slide 15: Santa María del Plata
SANTA MARÍA DEL PLATA It is a residential and mixed-use project that would include stores, offices, hotels, sport and yachting clubs, large public parks and service support areas such as schools, supermarkets, parking spaces, etc. 700k sqm PREMIUM LOCATION Located in Puerto Madero, the most expensiv
Slide 16: Investment in Banco Hipotecario
INVESTMENT IN Private Sector Loan Diversification1,2 In Ps. mm BANCO 39,948.0 44,876.0 43,274.7 44,466.0 HIPOTECARIO 62.2% 50.9% Full-service commercial bank, focused on household and consumer credit 31.4% 27.6% More than 130 years track record 17.7% 10.2% Nationwide network of 63 branches in 23 201
Slide 17: Environmental Commitment
ENVIRONMENTAL LEED GOLD CERTIFICATION FOR OFFICE BUILDINGS Zetta building, opened in 2019, in the north area of Buenos Aires City, has LEED Gold Core & Shell certification. COMMITMENT 200 Della Paolera building, recently opened, has the characteristics to obtain LEED Gold Core & Shell Certification.
Slide 18: Social Responsibility
SOCIAL RESPONSIBILITY We are part of the communities where our business units are based • We frequently organize CSR actions in malls and offices to disseminate and make visible the topics of interest of the society in general, such us inclusion and assistance to those most in need. • During 2020, a
Slide 19: Financials
FINANCIALS STRONG FINANCIAL TRACK RECORD 19
Slide 20: Rental: LTM Adjusted EBITDA
RENTAL 33% MALLS LTM ADJUSTED EBITDA 16% Of total revenues LTM IIQ21 S&D 67% USD 47 million OFFICE 17% 170 165 162 FX and COVID19 effects Hotels 1 1 Office 20 21 2 19 131 12 140 26 95 (+ S&D) 9 149 143 141 28 47 93 58 24 Shopping Malls 23 FY 16 FY 17 FY 18 FY 19 FY 20 LTM IIQ 21 20 20
Slide 21: Rental Assets Valuation
RENTAL EVOLUTION BY TYPE OF ASSET (USD MILLION – OFFICIAL FX) 2,064 2,064 ASSETS 296 337 1,721 334 1,267 1,290 VALUATION 1,769 1,728 1,387 459 690 807 600 USD 1,3 billion FY16 FY17 Shopping Malls FY18 FY19 Offices IIQ21 EVOLUTION BY SQM SHOPPING MALLS (USD) 6,000 5,757 Official FX 5,290 4,035 DCF va
Slide 22: IRSA Net Asset Value
IRSA NET ASSET VALUE MILLION OFFICIAL USD Dec-2020 Gross Asset Net Asset 1,479 Value 1,156 Value 22% LTV 359 323 60 25 1,479 1,156 1,036 IRCP NAV Hotels Banco Hipotecario Landbank & Others Gross Asset Value Net Debt Net Asset Value 22
Slide 23: IRSA Stand Alone Debt
ARS IRSA STAND ALONE DEBT USD Link 30% 29% USD 323 MILLION DEBT BY NET DEBT AS OF DEC -20 CURRENCY USD 41% STABLE LEVERAGE DEBT AMORTIZATION SCHEDULE USD MILLION USD MILLION 410 328 335 334 323 117,1 90,9 83,8 Recent local issuance 65 31,7 2017 2018 2019 2020 IIQ21 2021 2022 2023 2024 23
Slide 24: Summary of the Offering
SUMMARY OF THE OFFERING Capital increase for up to 80 million shares (8mm GDS) and 80 million warrants COMMON SHARES GDS Right distribution ratio 1 IRSA common share right for each held 1 IRSA GDS right for each IRSA GDS held 1 right will allow holders to subscribe to 1 right will allow holders to s
Slide 25: Summary of the Offering: Warrants and Subscription Period
SUMMARY OF THE OFFERING • Warrant Strike price: + 20% over definitive price • Warrant Maturity: 5 years • Acreetion rights: Holders that subscribe for new common shares and/or GDS may exercise their “accretion” rights by subscribing an amount of new common shares and/or GDS which shall not exceed th
Slide 26: Use of Proceeds
USE OF PROCEEDS EQUITY INVESTMENTS DEBT CANCELLATION & WORKING CAPITAL • Group shares trading at historical mimimum prices, highly discounted 1 IN ARGENTINA • Opportunity to invest in subsidiaries 2 OTHER BUSINESS OPPORTUNITIES 4 REAL ESTATE DEVELOPMENTS • In Argentina and/or abroad that could 3 • H
Slide 27: Contact Us
CONTACT US OUR ADRESS OUR EMAIL OUR PHONE OUR WEBSITE TWITTER Della Paolera 261 9th floor [email protected] (+54) 911 4323-7449 www.irsa.com.ar @IRSAIR 27
Slide 28: Shopping Malls: COVID Pandemic Main Impacts
SHOPPING MALLS C OV I D PA N D E M I C M A I N I M PAC T S COVID LOCKDOWN REOPENINGS REVENUES WAIVE COLLECTION PROGRESSIVE SALES & REVENUES RECOVERY Full reopening Lockdown Since Oct20 Under strict protocols From mar to sep-20 The company decided to waive billing and collection of base rent and comm
Slide 29: Premium Office Sector
PREMIUM OFFICE SECTOR C OV I D PA N D E M I C M A I N I M PAC T S A N D F U T U R E P RO S P EC T S NORMAL REVENUES COLLECTION PREMIUM TENANT MIX DESPITE HOME OFFICE MODALITY GROWING AND ESSENTIAL COMPANIES Others Banks Local 10% 27% 25% Internacional Oil&Gas 3% Tech / 75% 9% 51% E-commerce Health B
Slide 30: Shopping Malls, Office Buildings and Hotels Revenue Model
SHOPPING MALLS OFFICE BUILDINGS Revenue Model Revenue Model 50% Fixed Rental revenues USD 74% • 3-year average term The company collects the highest between a % of tenant monthly sales and a minimum rent (base rent) 74% Others • • US Dollar based Rental rates for renewed terms are Per sqm Per sqm Pe
Slide 31: Shopping Malls Operating Figures
SHOPPING MALLS O P E R AT I N G F I G U R ES As of Dec-20 GLA & OCCUPANCY SAME SHOPPING MALLS SALES Pre COVID-19 COVID-19 (GLA: sqm) (% Var i.a.) Mainly explained by 46,2% Falabella exit from DOT IIQ21 sales recovery due Baires & Alto 46,2% to reopenings, under Avellaneda. Excluding 35,1% strict pro
Slide 32: Shopping Malls Historical Operational Performance
SHOPPING MALLS H I STO R I C A L O P E R AT I O N A L P E R FO R M A N C E 99% 99% CRISIS… 98% CRISIS Occupancy 97% CRISIS 97% 95% 92% 93% 88% 43% 43% 6M21 38% 40% 36% 36% 34% 31% 31% 33% 24% Tenant sales 20% ARS/sqm 15% 21% (∆ annual) 17% 15% 11% 7% 7% GDP + CPI (∆ annual) -5% -18% 1999 2000 2001 2
Slide 33: Office Buildings Operating Figures
OFFICE BUILDINGS O P E R AT I N G F I G U R ES Main effects: - Assets sold, fully occupied - Falabella exit from Zetta building As of Dec-20 - Incorporation of 200 Della Paolera (75% occupied) STOCK OCCUPANCY Pre COVID-19 COVID-19 (GLA: sqm) BY CLASS A+ & A 97,1% 93,9% 93,0% 91,6% 79,5% B 47,5% 53,2
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