IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — FY2023 Earnings Presentation
25 slides from IRSA Inversiones y Representaciones SA's earnings presentation, Sep 7, 2023
Slide 1: FY 2023 Conference Call
FY 2023 CONFERENCE CALL September 7, 2023 Hosted by: Eduardo S. Elsztain, CEO Matias Gaivironsky, CFO Jorge Cruces, CIO Santiago Donato, Head of IR & ESG
Slide 2: Main Events for FY2023 and Subsequent
MAIN EVENTS FOR FY2023 AND SUBSEQUENT 1 STRONG FINANCIAL & OPERATIONAL PERFORMANCE 2 MALLS’ TENANT SALES GROWTH AND HIGHER OCCUPANCY 3 PREMIUM OFFICES’ OCCUPANCY IMPROVEMENT 100% OCCUPANCY REACHED IN “200 DELLA PAOLERA” 4 HOTELS’ STRONG EBITDA & HIGHER OCCUPANCY 5 STRONG REAL ESTATE ACTIVITY DURING
Slide 3: Same Shopping Malls Sales in Real Terms
SAME SHOPPING MALLS SALES IN REAL TERMS +27.0% +16.0% 636,842 548,935 501,443 371,341 267,946 FY19 FY20 FY21 FY22 FY23 3 COVID IMPACT
Slide 4: Shopping Malls Occupancy Evolution
SHOPPING MALLS OCCUPANCY EVOLUTION Recovering pre-pandemic levels after the impact of the exit of Walmart & Falabella 99.1% 98.8% 98.6% 98.5% 98.7% 97.4% 96.8% 94.9% 95.0% 94.8% 94.5% 94.7% 94.3% 93.7% 93.9% 93.2% 93.1% exit from Argentina 92.8% 91.5% 89.9% 89.5% 89.6% 89.1% 88.3% exit from Argentin
Slide 5: Office Operating Figures
OFFICE OPERATING FIGURES STOCK RENT USD/sqm & OCCUPANCY A+ & A PORTFOLIO* (GLA: sqm) 83,892 -11.3% 1,184 74,392 -26.4% 86.9% 86.9% 85.5% 8,316 83.7% 61,743 82.0% 12,649 26.3 26.4 25.9 1 floor 25.5 25.5 “200 Della 7 floors Suipacha Paolera” “200 Della IVQ 22 IQ 23 IIQ 23 IIIQ 23 IVQ 23 Paolera” 1 flo
Slide 6: Hotels Operating Figures
HOTELS OPERATING FIGURES HOTELS – Portfolio rate & occupancy BA HOTELS – Rate & occupancy (USD/room & %) (USD/room & %) 61.7% 62.4% 64.5% 58.3% 44.6% 52.0% 0.8% 9.1% 135 92 76 109 140 IVQ 19 IVQ 20 IVQ 21 IVQ 22 IVQ 23 COVID LOCKDOWN 12.1% LLAO LLAO – Rate & occupancy 0.6% (USD/room & %) 70.4% 69.7%
Slide 7: ESG Progress
ESG PROGRESS “200 DELLA PAOLERA” BUILDING LEED CERTIFICATION WE INCREASED OUR SOCIAL INVESTMENT ( D I R EC T LY & T H R O UG H F U N DAC I Ó N I R SA ) +200 + 100.000 ARS 270 MM Social actions Beneficiaries Social investment +21% vs PF22 Relationship with +200 NGO WE CELEBRATED THE 75th ANNIVERSY ON
Slide 8: Digitalization Progress
DIGITALIZATION PROGRESS Registered users (million) 39% growth YoY 1.79 1.52 1.61 1.29 1.39 1.00 1.06 1.12 1.16 0.96 apr-21 jul-21 oct-21 jan-22 apr-22 jul-22 oct-22 jan-23 apr-23 jul-23 Accumulated Approved Transactions Monthly Active Users (in million) (thousands) 30% growth YoY 224 3.68 183 3.22 3
Slide 9: Real Estate Acquisition
REAL ESTATE ACQUISITION PASEO COLÓN 245 BUILDING (+ PARKING LOTS IN PASEO COLÓN 275) 13,700 covered sqm LOCATION (13 office floors) Downtown BA 12 Few meters away from the “Casa Rosada” Parking spaces (national government headquarters) USD 7.9 M Paid price ACQUISITION USD/sqm 576 Through an auction
Slide 10: Investment in "200 Della Paolera"
INVESTMENT IN “200 DELLA PAOLERA” USD MILLION TOTAL GLA 35,872 sqm FY 23: 8 floors 9,500 sqm Remaining 100% occupied Floors 28 to 33 revalued USD 93.8 M sqm in FY 23 at sqm sold in FY 23 at (USD/sqm 9,869) 7,332 USD/sqm + 20.4% USD/sqm 30 28,540 11,900 IQ 24: 1 floor 1,184 sqm 79.6% USD 12.2 M (USD/
Slide 11: Subsequent Event: Sale of Suipacha 652/64 Building
SUBSEQUENT EVENT: SALE OF SUIPACHA 652/64 BUILDING PAYMENT 7 11.465 62 USD 3.00 M Cash floors GLA (sqm) parking lots USD 6.75 M USD 0.75 M 3 units Sale price (Córdoba & Maipú building) 10 semi-annual installments USD 2.50 M (1º at 24 months) USD 0.50 M Services provided by the buyer USD 6.75 M Hard
Slide 12: Subsequent Event: Sale of Quality S.A. (San Martín Plot)
SUBSEQUENT EVENT: SALE OF QUALITY S.A. (SAN MARTÍN PLOT) 159,996 sqm 80,027sqm USD 21.5 M Total surface Covered surface Already collected USD 22.9 M Sale price USD 1.4 M To be collected in 3 years term with 7% interest rate 12
Slide 13: Costa Urbana Project Work Progress
COSTA URBANA PROJECT WORK PROGRESS OBELISC NATIONAL PUERTO GOVERNMENT MADERO =1/3 PUERTO MADERO 866,806 Mixed-uses 15 – 20 years Buildable sqm Potential Project Premium ▪ IRSA has complied with the financial commitments with the City location Government and is in the process of transferring the publ
Slide 14: Swap Agreements FY 23
SWAP AGREEMENTS FY 23 COTO AIRSPACE ABASTO SWAP TOWER 2 - (Jun-23) CÓRDOBA ADJOINING PLOT 1 (Aug-22) Residential sqm Market value to be received (USD BNA million) SWAPS OF FY 2023 3,865 11.6 PREVIOUS SWAPS 5,004 25.1 TOTAL SWAPS 8,869 36.7
Slide 15: Financial Results
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Slide 16: FX & Inflation Evolution
FX & INFLATION EVOLUTION Nominal Official FX Evolution Nominal MEP FX Evolution 482,52 93% 105% 256,7 21% 23% 397,37 21% 209,01 18% 8% 327,94 177,16 302,48 20% 21% 18% 51% 147,32 249,59 249,59 31% 31% 125,23 125,23 8% 111,01 16% Inflation index Evolution 176,63 12% 197,19 190,56 3% 98,74 4% 102,72 1
Slide 17: FY23 – Operating Results by Segment
FY23 – OPERATING RESULTS BY SEGMENT ADJUSTED EBITDA RENTAL ADJ. EBITDA MARGINS A RS M I L L I O N Shopping Malls Offices -39.1% Hotels FY 23 FY 22 Var. S&D + Others 59,126 Shopping Malls 74.5% 70.7% +3.8 bps 25,103 36,000 +59.1% 3,741 3,433 2,352 Rental Offices 74.9% 80.3% -5.4 bps 5,266 -34.8% EBIT
Slide 18: FY23 - Consolidated Operating Results
FY23 - CONSOLIDATED OPERATING RESULTS OPERATING INCOME (EXC. CHANGE IN FAIR VALUE ) CHANGE IN FAIR VALUE OF INVESTMENT PROPERTIES ARS MILLION ARS MILLION -267.0% -14.7% 29,427 26,981 23,006 FY 22 FY 23 -49,145 FY 22 FY 23 18
Slide 19: FY23 – Consolidated Financial Results
FY23 – CONSOLIDATED FINANCIAL RESULTS NET FINANCIAL RESULTS INCOME TAX NET RESULT A RS M I L L I O N A RS M I L L I O N A RS M I L L I O N -39.2% Positive impact due to reversal -22.8% of income tax provision because 25,549 of jurisprudence regarding tax inflation adjustment 75,222 15,536 66,075 735
Slide 20: Rental EBITDA Evolution by Segment
RENTAL EBITDA EVOLUTION BY SEGMENT USD MILLION Shopping Malls Surpassing pre-pandemic levels Office buildings 167 15 Hotels 131 14 12 115 26 95 8 18 9 28 139 44 93 0 89 58 25 19 FY19 FY20 FY21 FY22 FY23 C OV I D - 1 9 20
Slide 21: Debt Profile as of June 30, 2023
DEBT PROFILE AS OF JUNE 30, 2023 USD MILLION DEBT AMORTIZATION SCHEDULE Gross Debt 406.9 Cash & Eq. 159.3 Net Debt 247.6 147.3 104.1 80.8 61.75 Series XV Series XVI Notes 28.25 Notes 47.2 Series XVII 25.0 Notes 27.5 Banking 33.0 Debt FY 24 FY 25 FY 26 FY 27 FY 28 21 2121
Slide 22: Deleverage Process Since 2020
DELEVERAGE PROCESS SINCE 2020 NET DEBT EVOLUTION – USD MILLION -67.2% 755 640 566 574 345 306 231 273 323 248 410 335 334 301 FY18 FY19 FY20 FY21 FY22 FY23 COVID-19 NET DEBT / RENTAL EBITDA 13.0x 2.8x 1.5x LTV 28.0% 13.0% 10.5% COVERAGE RATIO 2.0x 5.3x 31.6x 22
Slide 23: Dividends Distribution (May-23)
DIVIDENDS DISTRIBUTION (MAY-23) Next Shareholders’ Meeting proposal (to be held on Oct 5th, 2023) Cash dividend distributed To distribute a cash dividend for up to during FY 2023 ARS 64,000 MM (~USD 175 MM ~15% yield) Amount ARS 4,340 MM ARS 21,900 MM 124.1 Per ordinary DIVIDENDS EVOLUTION ARS 5.414
Slide 24: Shares Repurchase Programs
SHARES REPURCHASE PROGRAMS FY 2022 – FY 2023 Program FY 2023 Program (current) Period From March to September 2022 From June to December 2023 Next Shareholders’ Maximum Meeting proposal Up to ARS 1,000 million Up to ARS 5,000 million (to be held on Oct 5th, 2023) amount to invest Up to ARS 140 per s
Slide 25: Contact Information
CONTACT INFORMATION EDUARDO ELSZTAIN – Chairman & CEO NYSE Symbol: IRS www.irsa.com.ar MATÍAS GAIVIRONSKY – CFO BYMA Symbol: IRSA Contact e-mail: [email protected] SANTIAGO DONATO – Head of IR & ESG Follow us on Twitter Tel +(54 11) 4323 7449 @irsair Independent Auditors Corporate Offices Pricewaterhou
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