IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — Debt Investor Presentation (May 2022)
26 slides from IRSA Inversiones y Representaciones SA's debt investor presentation, May 2022
Slide 1: IRCP23 Notes Exchange Offer
PRESENTATION IRCP23 Notes Exchange Offer Buenos Aires - May 2022
Slide 2: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This material has been prepared by IRSA Inversiones y Representaciones S.A. (the “Company”) solely for use at the presentations in connectio
Slide 3: Transaction Overview
au IRSA TRANSACTION OVERVIEW 1
Slide 4: Transaction Rationale
TRANSACTION RATIONALE BCRA “A” 7466 RESOLUTION • Communication "A" 7466 from the Central Bank of Argentina (“BCRA”) restricts access to the Foreign Exchange Market to obtain US dollars for the payment of debt amortizations • Companies with capital maturities between June 2020 and December 2022 had t
Slide 5: Exchange Offer – Any and All 8.75% Notes Due 2023
EXCHANGE OFFER – ANY AND ALL 8.75% NOTES DUE 2023 Exchanging holders will receive OPTION A1 accrued and unpaid interest and … OPTION B1,2 (Cash + New notes) (New notes) 30% x Total Exchange Participation distributed pro-rata between Option CASH CONSIDERATION - A investors 1.015 times the difference
Slide 6: New Notes Indicative Terms & Conditions
NEW NOTES INDICATIVE TERMS & CONDITIONS ISSUER IRSA Inversiones y Representaciones S.A. EXPECTED ISSUE RATING By Fitch and Fix local rating FORMAT | RANKING Rule 144A / Regulation S | Senior Unsecured AMOUNT Up to USD 262,800,0001 MATURITY June 2028 AMORTIZATION Annual amortizations of 17.5% in year
Slide 7: Exchange Scenario Analysis
EXCHANGE SCENARIO ANALYSIS Assuming 100% participation prior to the early expiration (USD million) OPTION A1,2 OPTION B1 USD 182.7 USD 10890% USD 74.2 80% SERIES XIV Cash 37.5% 1 SERIES XIV 20% USD 73.1 USD 108 USD 185.4 50% SERIES XIV Cash 60% 2 30% SERIES XIV 50% USD 108 30% Cash 100% 3 USD 259.6
Slide 8: Exchange Scenario Analysis
EXCHANGE SCENARIO ANALYSIS For each 1,000 Notes exchanged prior to the Early Expiration OPTION A1,2 OPTION B1,2 1,009.4 634.4 375 1,030 1,030 20% 80% Total New Notes Cash 90% 1 New Notes Total 1,006 406 600 1,030 1,030 50% 50% Total New Notes Cash 2 30% New Notes Total 1,000 1,000 1,030 1,030 70% 30
Slide 9: The Company
IRSA THE COMPANY 2
Slide 10: Main Recent Events
MAIN RECENT EVENTS 1 IRSA MERGED WITH IRSA COMMERCIAL PROPERTIES 2 POST PANDEMIC RENTAL SEGMENT RECOVERY 3 STRONG OFFICE BUILDINGS SALES 4 COSTA URBANA PROJECT APPROVAL
Slide 11: Leading Real Estate Company in Argentina
1 LEADING REAL ESTATE COMPANY IN ARGENTINA Shopping malls 15 335,000 sqm ✓ 30 years acquiring, RENTAL developing and operating SEGMENT 6 Office buildings 84,000 sqm real estate Hotels ✓ Rental portfolio of approx. 500,000 sqm of GLA 3 79,000 sqm across Argentina ✓ 25 years listed on A simplified veh
Slide 12: Rental Performance Since COVID-19
2 RENTAL PERFORMANCE SINCE COVID-19 SAME SHOPPING MALLS SALES OFFICES RENT PRICE (USD/sqm) IN REAL TERMS (ARS million) +21.2% -7.5% 49,322 26.6 25.4 24.6 40,700 35,851 35,973 IIIQ19 IIIQ20 IIIQ21 IIIQ22 IIIQ20 IIIQ21 IIIQ22 OCCUPANCY SAME OFFICE OCCUPANCY (Information compared with pre-pandemic figu
Slide 13: Recent Office Buildings Sales
3 RECENT OFFICE BUILDINGS SALES Bouchard 710 12 Floors 11 Floors* 200 Della Paolera July 2020 June 2020, June & Oct. 2021, 15,014 GLA sqm 13,147 GLA sqm March 2022 87.2 USD MM 110.1 USD MM 5,800 USD/sqm 8,370 USD/sqm ~16% USD IRR ~18,180 remaining GLA TOTAL *Does not include 4 floors sold to Globant
Slide 14: Costa Urbana Project Approval
4 COSTA URBANA PROJECT APPROVAL 70 ~900,000 Total Hectares Buildable sqm 70% Mixed-uses OBELISC For public uses Potential 30% 15 – 20 years NATIONAL PUERTO To develop Project GOVERNMENT MADERO CONTRIBUTIONS TO THE CITY: ▪ 50.8 hectares for public use (71% of the total area of the =1/3 property) PUER
Slide 15: Preliminary render for illustrative purposes
15 Preliminary render for illustrative purposes
Slide 16: Company's Investment Highlights
COMPANY’S INVESTMENT HIGHLIGHTS 1 PREMIUM PORTFOLIO 2 RESILIENT BUSINESS 3 STRONG BALANCE SHEET 4 EXPERIENCED MANAGEMENT TEAM 5 CAPITAL MARKETS TRACK RECORD
Slide 17: Best Quality Assets & Locations
BEST QUALITY ASSETS & LOCATIONS 2022 2022 (under process) 17
Slide 18: Shopping Malls Hedge to Inflation
SHOPPING MALLS HEDGE TO INFLATION REVENUE MODEL TENANTS SALES ARS LINKED TO INFLATION HEDGE TO INFLATION CRISIS CRISIS CRISIS 98.6% 99.0% ARS 92.4% 91.5% Occupancy Variable (%) 66% 3-year average term GDP+CPI 43% VAR (i.a.) ARS based Base Rent (inflation linked) 36% Base Rent Fixed Nominal Tenants S
Slide 19: Offices & Hotels USD Linked Businesses
OFFICES & HOTELS USD LINKED BUSINESSES OFFICES RENT PRICE (USD/SQM) & OCCUPANCY (%) 3 YEARS CONTRACTS COVID-19 A+ & A 81.8% 96.5% 97.1% 98.6% 98.3% 98.6% 96.7% 92.3% 88.3% 93.0% after 80.1% República 74.6% sale 86.1% 74.7% 66.4% 25.2 25.7 24.4 25.1 25.9 24.6 26.1 26.4 26.6 25.7 24.6 2012 2013 2014 2
Slide 20: Liquid USD Denominated Assets
LIQUID USD DENOMINATED ASSETS CAPITAL CONTROLS CAPITAL CONTROLS PREMIUM OFFICE BUILDINGS Intercontinental Della Paolera Boston 261 Tower 200 Della Paolera 5000 5000 200 Della Paolera Acquisitions 4900 4200 Sales A+ Offices prices Maipú 3800 República Bouchard 710 USD/sqm Rulero Intercontinental Bost
Slide 21: Strong Rental EBITDA Generation
STRONG RENTAL EBITDA GENERATION In USD million FINANCIAL + COVID -19 CRISIS 204 190 186 33 4 SHOPPING MALLS 30 172 170 162 1 165 162 30 1 OFFICES 6 17 2 AVG. 15 YEARS 20 21 19 USD 139 MM HOTELS 27 131 125 130 6 12 114 8 Positive despite 25 operations 10 26 29 95 closure due to 24 COVID 89 81 9 4.4 1
Slide 22: Net Asset Value
NET ASSET VALUE 1 In USD million – at official Fx LTV 19.6% 155 67 445 COSTA URBANA 621 893 31 2,267 573 1,822 548 2 Shopping Malls Offices Hotels Land reserves & Prop. Banco Hipotecario JV, Investees & Others Gross Asset Value Net Debt Net Asset Value Under development Notes: 1. Assets and liabilit
Slide 23: Balanced Net Debt Position
BALANCED NET DEBT POSITION In USD million FINANCIAL + COVID-19 CRISIS 755 640 556 566 574 513 515 345 508 492 108 470 80 306 102 231 273 187 212 374 411 428 448 410 448 328 335 334 301 343 258 MERGED 118 C O M PA N Y 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 IIIQ 2022 IIIQ 2022 current less
Slide 24: Debt Amortization Schedule
DEBT AMORTIZATION SCHEDULE Current Debt Profile (USD million) Pro-Forma Debt Profile1 (USD million) 429.9 8.75% Notes Due 2023 Under exchange offer 126.7 80.7 69.9 78.8 61.6 46.0 46.0 27.5 15.6 27.5 46.0 46.0 FY 22 FY 23 FY 24 FY 25 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 Notes: 1. Assuming 100% o
Slide 25: Group Capital Markets Track Record
GROUP CAPITAL MARKETS TRACK RECORD NUMBER OF CAPITAL AMOUNT ISSUED GROUP LISTED VEHICLES NON-DEFAULT HISTORY MARKETS TRANSACTIONS +200 +USD 18bn 5 New York, Buenos Aires, & Sao Paulo Even in the worst Argentinean crisis (2001) & COVID-19 IRSA IPO APSA IPO (now IRCP) CRESUD LIABILITY LOCAL MARKET DOL
Slide 26: 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 26
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