IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — Merger or Acquisition (October 2021)
14 slides from IRSA Inversiones y Representaciones SA's merger presentation, October 2021
Slide 1: Merger Proposal Presentation October 2021
MERGER PROPOSAL PRESENTATION OCTOBER 2021
Slide 2: IRSA-IRCP Merger Rationale: Main Historical Events
IRSA-IRCP MERGER RATIONALE MAIN HISTORICAL EVENTS INTERNATIONAL INVESTMENT 2008 2020 Increases stake in 8.1% IRCP Beginning of Partnership with APSA (95%). block sale in operations Parque Arauco Purchase of Parque the secondary Arauco’s stake market Merger MERVAL proposal (USD) 1994 2000 2014 1991 2
Slide 3: IRSA-IRCP Merger Rationale: Main Advantages
IRSA-IRCP MERGER RATIONALE MAIN ADVANTAGES 1 REAL ESTATE LEADER IN ARGENTINA 2 STRUCTURE SIMPLIFICATION 3 VEHICLE’S LIQUIDITY INCREASE 4 SYNERGIES AND COST EFFICIENCY 5 ELIMINATES POTENTIAL CONFLICTS OF INTEREST 6 GROWTH THROUGH MIXED-USE DEVELOPMENTS 3
Slide 4: Real Estate Industry Trends
REAL ESTATE INDUSTRY TRENDS POTENTIAL SYNERGIES IN MIXED-USES DEVELOPMENTS REAL ESTATE TRENDS COMPANY’S FUTURE DEVELOPMENTS HOME OFFICE & HYBRID WORK MODALITY E-COMMERCE TH.Th.Sqm sqm GLA 1930 3.6x 1400* 80% Mixed-uses NEW URBAN PLANNING CODE IN BA CITY URBAN DECENTRALIZATION 530 530 Current Potenti
Slide 5: Transaction Description
TRANSACTION DESCRIPTION EXCHANGE RATIO AND POST MERGER CORPORATE STRUCTURE POST MERGER PROFORMA ▪ The transaction consists of a merger by absorption within CORPORATE STRUCTURE the framework of the Argentine Companies Law 19,550 and the Income Tax Law 20,628. ▪ IRSA (absorbing company) merges with IR
Slide 6: Corporate Structure Simplification
CORPORATE STRUCTURE SIMPLIFICATION* UNIQUE REAL ESTATE VEHICLE LEADER IN ARGENTINA CURRENT STRUCTURE 79.9% HOTELS MIXED-USES LAND 29.9% 21.7% RESERVES Under sale process SHOPPING MALLS OFFICES LAND RESERVES PROFORMA STRUCTURE NEW MERGED VEHICLE 29.9% SHOPPING MALLS OFFICES HOTELS MIXED-USES LAND RES
Slide 7: Transaction Description: Historical Exchange Ratio
TRANSACTION DESCRIPTION HISTORICAL EXCHANGE RATIO BETWEEN IRCP & IRSA ARS 180 VWAP With this Exchange Ration, a IRCP 95.0 holder with 1,000 IRCP common IRSA 67.7 shares will receive 1,400 IRSA common shares. IRCP/IRSA 1.40x 1,90x 1,70x 1,50x 1.40x 1,30x 1,10x 0,90x 30/01/20 29/02/20 31/03/20 30/04/2
Slide 8: Merged Vehicle Liquidity Increase
MERGED VEHICLE LIQUIDITY INCREASE HISTORICAL EVOLUTION OF THE COMPANIES’ FLOAT & LIQUIDITY AVERAGE DAILY LIQUIDITY DAILY AVERAGE BY FISCAL YEAR – USD MM 1.77 1.33 1.20 1.10 0.53 0.49 0.32 0.25 0.22 0.10 0.08 0.07 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FLOAT 36% 36% 36% 38% 38% 38% PROFORMA FLOAT
Slide 9: Synergies and Cost Efficiency
SYNERGIES AND COST EFFICIENCY LISTING, CORPORATE EXPENSES AND TAXES Board, Supervisory & Audit Listing fees Committees Administrative, Legal & Audit Credit Rating Expenses Financial Statements & 20F Websites & IR services CNV, BYMA & SEC filings Taxes 9
Slide 10: Net Asset Value
NET ASSET VALUE1 USD MILLION (AT OFFICIAL RATE) 298 1.528 61 587 21 +289 269 239 671 1.508 1.239 1.239 517 2 3 Shopping Malls Offices Land Reserves & Others JV & Investees IRCP GAV IRCP Net Debt IRCP NAV IRSA Assets IRSA Net Debt POST MERGER NAV Prop. under development 1- Assets and liabilities adju
Slide 11: EBITDA & Net Debt
EBITDA & NET DEBT USD MILLION (AT OFFICIAL RATE) ADJUSTED RENTAL EBITDA NET DEBT LAST 5 FISCAL YEARS´ AVERAGE (2017-2021) AS OF JUNE 30, 2021 LTV 27,3% 120 5 Hotels 23 Offices 298 573 92 Shoppings 275 IRCP IRSA PROFORMA MERGER PROFORMA 11
Slide 12: IRSA, IRCP & Proforma Merged Debt
IRSA, IRCP & PROFORMA MERGED DEBT USD MM (AT OFFICIAL RATE) – AS OF JUNE 30, 2021 MERGER Market Debt* 188.7 Market Debt 433.1 Market Debt 621.8 Debt with IRCP 69.9 Notes owned by IRSA 2.4 Total Gross Debt 621.8 Notes owned by IRCP 51.0 Total Gross Debt 435.5 Cash & Investments (49.2) Total Gross Deb
Slide 13: Estimated Merger Timeline
ESTIMATED MERGER TIMELINE FISCAL YEAR 2022 • F4 presentation • IRSA/IRCP Shareholders’ • SEC approval • CNV to the SEC Meeting • CNV prospectus Compliance* • Definitive Merger Agreement presentation • Definitive Agreement • Call for Shareholders’ presentation to the CNV Meeting (T DAY) • Registratio
Slide 14: Our Address, Email, Phone
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
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