IRSA Inversiones y Representaciones Sociedad Anónima : Presentation Exchange Offer Series I 10/26/2020

Series I Notes Exchange

Offer presentation

October 2020

ARGENTINA

CENTRAL BANK

RESOLUTION

"A" 7106

• Central Bank (BCRA) Communication "A" 7106 restricts access to the Foreign Exchange Market to obtain US dollars for the payment of debt maturities.
• Companies with capital maturities between 10.15.2020 and 03.31.2021 had to submit to the BCRA a detail of a refinancing plan based on the following criteria:
• • that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the capital amount due in the period.
  • that the rest of the capital be refinanced with a new issuance with an average life of 2 years.
• IRSA's Series I, for an amount of USD 181.5 million, falls within the period contemplated by the provision, given its maturity on 11.15.2020.

2

IRSA's SERIES I EXCHANGE - USD 181.5mm - 10% - Nov 20

OPTION A

• at least USD 0.50 in cash and the rest with a new issuance (SERIES VIII)

For each USD 1

presented in exchange,

you will receive the accrued interest until

settlement date and…

OPTION B

…Early bird (until 10/30/20) 2% in ARS and a new

issuance (SERIES IX)

SERIES VIII

CLASE IX

US Dollars

100% Nominal Value

10% fixed - Quarterly payments

Three equal installments, 36 months

In kind, in exchange of existing SERIES I

CURRENCY & PRICE OF ISSUANCE

INTEREST RATE

AMORTIZATION & MATURITY

SUSCRIPTION

US Dollars

100% Nominal Value

10% fixed - Quarterly payments

Bullet at maturity (3/1/23), ~27 months

In kind, in exchange of existing SERIES I and/or in cash, in US Dollars

USD 108.9 million	SERIES MAXIMUM SIZE	USD 108.9 million (up to USD 181.5 million)
Buenos Aires	PAYMENT LOCATION	New York

The Exchange of the Notes implies consent to the Essential Modifications and/or the Non-Essential Modifications

3

IRSA's SERIES I EXCHANGE - USD 181.5mm - 10% - Nov 20

SCENARIOS*

OPTION A

80%	USD 72.6		USD 72.6		USD 36.3
SERIES VIII	50%	Cash	50%	01 SERIES IX

OPTION B

Base scenario according to the SERIES IX

subscription notifications received from some 20% bondholders.

50%	USD 18.2		USD 72.6		02	USD 90.8	50%
				30%
	SERIES VIII	20%	Cash	80%	SERIES IX

40%	USD 72.6	03	USD 108.9	60%
Cash	SERIES IX

* It is assumed that SERIES IX it is integrated only with exchange, without new subscribers.

4

IRSA's SERIES I EXCHANGE - USD 181.5mm - 10% - Nov 20

ADDITIONAL INFORMATION

Early Bird Series IX		Cash	Exchange closure	Settlement
2% ARS
	suscription*
Oct 30, 2020		Nov 5, 2020	~ Nov 11, 2020
8 PM BA time		8 PM BA time

* Public auction date wil be infomed in a supplementary notice during the Exchange period.

RATING		EXCHANGE AGENT

A (arg)

JOINT-BOOK RUNNERS

5

The Company

IRSA

R E A L E S TAT E L E A D E R I N A R G E N T I N A

• 30 years acquiring, developing and operating real estate in Argentina.
• 25 years listed on the NYSE and accessing capital markets.
• Management with proven track record in the industry.
• Real Estate in Argentina as a value haven - assets denominated in US dollars.

RENTAL PROPERTIES

• Controlling shareholder of IRCP (BYMA:IRCP ; NASDAQ:IRCP), leader in Shopping Centers and Offices in the country.
• Owner of 3 premium hotels in Argentina and investment in CONDOR, US hotel REIT.

(BYMA:CRES ; NASDAQ:CRESY)

62.4%

(BYMA:IRSA ; NYSE:IRS)

DEVELOPMENT PROPERTIES

• ~20 mm sqm premium landbank for future developments, almost to double current rental portfolio.
• Owner of Santa María del Plata - 700th premium sqm in Puerto Madero (BA).
• Investment in Banco Hipotecario - future singergies with the develompent of mortage market in the country.

80.7%

HOTELS

LANDBANK

29.9%

18.9%

(BYMA:IRCP ; NASDAQ:IRCP)

7

SHOPPING MALLS'	ATOMIZED AND DIVERSE TENANT MIX
UNIQUE PORTFOLIO	With low incidence of department stores
TOP FIVE ON SALES		SALES BY TYPE
	6.7%	17.3%	Others
		19,5%
			Department Store
				5,4%
	93.3%	82.7%		10,8%	56,2%
		Restaurants
				8,1%
	BY BASE RENT	BY SQM		Electro	Apparel
				BA CITY	~70%
					Market
					Share
15 MALLS
332,000 sqm GLA
				High income Area	8
				Mid Income Area
				Low Income Area

Dot Building

Philips

Zetta

OFFICES BUILDINGS

Boston Tower	200 Della
Paolera
	(IVQ FY20)

SuipachaRepública

Intercontinental

Expanding Corporate North Area Business Center

AAA Location

Back Office Center

8 BUILDINGS 121,000 sqm GLA

PREMIUM PORTFOLIO

Surface by class

A+ & A 84%

16% B

PREMIUM TENANTS

Others	Technology
46%	31%	75%

International

14%Tenants

9%

Oil & Energy

Banks & Insurance

Intercontinental

3 PREMIUM HOTELS ACROSS THE COUNTRY

Libertador

Llao Llao

Intercontinental

Libertador

Llao Llao Resort

BA city	BA city	Bariloche city
313 rooms	200 rooms	205 rooms

RENTAL PROPERTIES´ RESILIENT REVENUE MODEL

FOR BOT H SHOP P IN G M ALLS AN D OFFICE AGRE E M E N TS

SHOPPING MALLS

OFFICES

ARS

Variable

Base Rent

Base Rent

Fixed

Key money Base Rent

Brokerage fee

In advance

YEAR 1

YEAR 2

YEAR 3

USD

Per sqm	Per sqm	Per sqm

YEAR 1

YEAR 2

YEAR 3

50% Fixed

VARIABLE & FIXED RENT

The company collects the	74%
highest between a % of tenant
of total
monthly sales and a minimum
revenues
fixed rent (base rent)

OTHER REVENUES

26% of total revenues comes from key money, brokerage fee, stands, parking and non-traditional advertising

OFFICE AGREEMENTS

• 3-yearaverage term
• US Dollar based
• Rental rates for renewed terms are negotiated at market

conditions	11

24% Variable

SHOPPING MALLS

OFFICE BUILDINGS

HOTELS

EXPENSES

CAPEX

COVID-19 IN ARGENTINA

IM PACT IN OUR BUSIN ESS

Operations closed since March 20th. The company decided to defer billing and collection of base rent and commercial fund from April to September 30, 2020, supporting tenants and prioritizing long-term relationship. We just charged common expenses.

Normal revenues collection during

lockdown period.

Shutted down since March 20th. Intercontinental Hotel just working under a contingency and emergency plan

Cut of nonessential expenses and services.

Cut of social security taxes and other taxes.

Construction works in Catalinas ("200 Della Paolera") and Alto

Palermo expansion suspended during lockdown. After the end of

the Fiscal Year, construction activity has been reestablished but

with some restrictions.

		Common Expenses;
		20%
		Commercial fund; 8%
		Parking y Otros; 9%
		Key money ; 9%
		Variable rent; 21%
GUARANTEED BY
	Base rent; 33%
CONTRACT
	Situation pre Covid-19
		(6M FY20)

Working together with our tenants giving them all our support and help in this unprecedented

situation

8

SHOPPING MALLS

OP E RAT IN G FIGURES

GLA & OCCUPANCY

(GLA: sqm)	Pre COVID-19
	95.0%

SAME SHOPPING MALLS SALES

(% Var i.a.)

Pre COVID-19

COVID-19

98.5%

94.7%93.2%

IIIQ20 Includes 10

days and IVQ the

full impact from

closure of

operations

344,025	332,150	333,062
		end of
		concession
	FY18			FY19		FY20

SHOPPING MALLS - DELINQUENCY

(ARS MILLION)

	9M 20	IVQ 20	FY 20	FY 19	∆
Delinquency	118	187	305	109	180%
Revenues	5,632	303	5,935	8,541	-30.5%
Delinquency/	2.1%	61.7%	5.1%	1.3%	+3.8bps
Revenues

	22,3%	22,7%	27,3%	28,7%	24,4%	24,7%	29,6%
18,3%
-2,1%	2,8%	-0,1%	1,6%	1,2%
				-8,1%
					-15,5%
							-14,7%

IVQ 17 IQ 18 IIQ 18 IIIQ 18 IVQ 18 IQ 19 IIQ 19 IIIQ 19

	60,5%
	46,2%
35,1%	32,5%
	5,6%
	-5,1%
-13,5%	-11,9%

Nominal terms

Real terms

-90,4%-92,9%

IVQ 19 IQ 20 IIQ 20 IIIQ 20 IVQ 20

13

SHOPPING MALLS' 20 YEARS OPERATIONAL PERFORMANCE

CRISIS	99%	CRISIS

98%

99%	CRISIS…

97%

97%

95%

Occupancy	92%				93%
	43%				43%
			38%	40%
	36%
			36%	34%
		31%
	31%			33%
Tenant sales ARS/sqm				24%
(annual ∆)	20%
		15%			21%
		15%			17%
		11%			7%
				7%

CPI + GDP

-5%

(annual ∆)

-18%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

COVID-19 MALLS´ REOPENING

ACCORD IN G TO IRSA COM M E RCIAL P ROP E RT IES' P ROTOCOL

May

June

July

August

September

October

PORTFOLIO IN OPERATION

85%

BY GLA AND

SALES

PROTOCOL

STRICT SAFETY AND HYGIENE	REDUCED HOURS AND	SOCIAL DISTANCE
COMMUNICATION, TRAINING
MEASURES	TRAFFIC	AND INCENTIVES

15

OFFICE BUILDINGS

STOCK

(GLA: sqm)

				200 Della
				Paolera
			+4.8%
				121,144
				28,000
	Zetta
	Building			Bouchard
	115,378	115,640	710
83,213				93,144
				Boston
				Tower
FY18	FY19	FY20
		IH21E

OP E RAT IN G FIGURES

OCCUPANCY BY CLASS		Pre COVID-19		COVID-19
A+ & A	97,2%		96,6%		97,1%
			93,9%
				93,0%

B
						53,2%		52,4%
				47,5%
		46,2%
45,0%
	IVQ 19		IQ 20		IIQ 20		IIIQ 20		IVQ 20

LEASES	Pre COVID-19	COVID-19
(USD/sqm/month)

26,4

26,6

26,9

26,6

26,6

IVQ 19

IQ20

IIQ 20

IIIQ20

IVQ 20

16

July 2020

BOUCHARD 710

Entire building - 12 floors

15,0145,800

GLA sqmUSD/sqm

USD 87.2 mm	16%
Price	USD IRR

RECENT SALES

OFFICE BUILDINGS

PARTIAL SALES

		June 2020		July and August 2020
		200 DELLA		BOSTON
		PAOLERA		TOWER
		2 floors		6 floors
		2,430		7,482
		GLA sqm		GLA sqm
		USD 16.9 mm		USD 41.4 mm
		Price		Price
		6,940		5,500
		USD/sqm		USD/sqm
		~28,000		~7,380
		Remaining GLA sqm		Remaining GLA sqm

AVERAGE CAP RATE 6.0%

12

ACTIVE PORTFOLIO MANAGEMENT

	CAPITAL CONTROLS		CAPITAL CONTROLS
		Intercontinental	200 Della	Boston
		5,000
		Paolera
Acquisitions	200 Della Paolera	Tower
Sales	4,500

A+ Offices prices															Maipú
	USD/sqm											Rulero									Bouchard 710
		Intercontinental
									Boston Tower
2,450							Bouchard Plaza								Bouchard Plaza	Dique IV
Rulero
							Bouchard 710										Flight to quality
				Yacht V & VI
Maipú									República
						710												Zetta Building		200 Della Paolera
																	Opened in May 2019	Currently under development
1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

Fuente: L.J. Ramos - Colliers

18

PROJECTS

UNDER

DEVELOPMENT

200

DELLA

PAOLERA

ALTO PALERMO

	EXPANSION	3,900
	GLA sqm
		64%
		Works Progress
		FY21
		Est. Opening date
		USD 28.5mm
		Est. Investment
		~USD 6.2mm
		CAPEX deployment pending
200 DELLA PAOLERA
35,000	95%	61%
Total GLA	Works Progress	Commercialization Progress
28,000	IH21	~USD 5.8mm
IRCP GLA	Est. Opening date	CAPEX deployment pending

~USD 90mm	Construction works suspended during COVID-19
lockdown. After the end of the Fiscal Year,
Est. Investment
~USD 10mm	construction activity has been reestablished but
working with protocol restrictions.
Est. Stabilized Revenues
Both openings are delayed.

19

LAND RESERVES

& OTHER INVESTMENTS

20 million sqm in landbank

Capacity to almost double the current commercial property portfolio

San Martín	CEC		CEC
	Punta del Este

Caballito

Intercontinental II

La Adela (Luján)

Córdoba Shopping Adjoining	La Plata	Montevideo
plot

20

20

SANTA MARÍA DEL PLATA (BA City)

Approvals pending

~700,000 sqm

Premium mixed-use Real Estate to be developed in the best location of BA city

Operational and

Financial Performance

22

IRCP - HISTORICAL FREE CASH FLOWS

USD M ILLION

141.9	Adjusted EBITDA		32.9	FCF		28.7	Dividends
FY16-FY20 Average		FY16-FY20 Average		FY16-FY20 Average

CENTROS COMERCIALES		ZETTA BUILDING
OFICINAS		CATALINAS ("200 DELLA PAOLERA")
OTROS		OTRO CAPEX

178	168
	9	162
		4
20		2
		21
					19
							111
							26	90
149							4
	143		141		28
							93
								58
FY 16	FY 17	FY 18	-8
FY 19 FY 20

			99
			16
		69
	58
41	16	27	60	38
5
26	10		14
	37
	32	23	23
15
FY 16	FY 17	FY 18	FY 19	FY 20

68					69	62
	49	49	38	38			45				50	39
								29
									15				15	10
FY 16	FY 17	FY 18	FY 19	FY 20	FY 16	FY 17	FY 18	FY 19	FY 20	FY 16	FY 17	FY 18	FY 19	FY 20

Adjusted EBITDA		CAPEX1

Interests paid + Income tax	FCF -26	Dividends

1.	Includes "200 Della Paolera" (Catalinas)
2.	LTM June 30, 2020. Adjusted Avg. FX: $68.07	23

IRCP - ASSETS VALUATION

FAIR VALUE ACCORD IN G TO FIN AN CIAL STAT E M ENTS AT T HE E N D OF EACH P E RIOD

EVOLUTION BY TYPE OF ASSET

(USD M ILLION - OFFICIAL FX)

2,155	2,170
91	106	1,878
296	337
158			1,669
			334	1,424	174
					158
					459	827
1,769	1,728
			1,387
					807	669
FY16		FY17		FY18		FY19	FY 20
		Shopping Malls		Offices		Land Reserves & Others

EVOLUTION BY SQM
(USD )	Valuation method:
	Shopping Malls: DCF
	Offices: Comparables

5,757 OfficialFX

5,290

5,081
4,003	4,032 4,011	3,979	4,035 Blue-chip
3,740				swap FX

2,431

2,007

FY16	FY17		FY18		FY19	FY 20
			Shopping Malls		Offices

24

IRSA - NET ASSET VALUE

AS OF JUN E 3 0 , 2 0 2 0 - USD M ILLION

1,536 GAV		1,136 NAV		26.7% LTV

NAV

	368	410
27	58
		1,536
1,083		1,136

IRCP NAV

Hotels

Banco Hipotecario1

Landbank & Others 2

Gross Asset Value

Net Debt

Net Asset Value

1. Book value as of June 30, 2020
2. Book value as of June 30, 2020. "Others" includes investment in Condor Hospitality Trust and Israel at zero market value

25

IRSA STAND ALONE

BY CALE NDAR Y EAR AS OF SE P T EMBER 3 0 , 2 0 2 0 - USD M ILLION

Description	Amount	Maturity
Short term debt	22.0	<360 days
Series I	181.5	Nov 2020
Series III	4.6	Feb 2021
Series IV	51.4	May 2021
Series V	9.2	May 2022
Series VI	4.4	Jul 2021
Series VII	33.7	Jan 2022
Other Debt	17.6	Feb 2022
GROSS DEBT	324.4

CURRENT SCHEME			207.8
DOES NOT INCLUDE
INTERCOMPANY LOAN WITH
IRCP	SERIES I
		70.7
To be exchanged for		45.9
	USD 181,5
			2020	2021	2022

PROFORMA AMORTIZATION SCENARIOS

01	80% OPTION A		02		50% OPTION A		03		100% OPTION B
20% OPTION B			50% OPTION B
		99.7														108.9
							88.9
		29.0	74.9					64.1	72.6				70.7
						18.2
			50.8									45.9
			29.0					18.2						108.9
26.3					26.3					26.3
						72.6
70.7					70.7				70.7
		45.9	50.8				45.9				45.9
	26.3				26.3					26.3

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

26

CAPITAL MARKETS TRACK RECORD

NUMBER OF TRANSACTIONS		AMOUNT ISSUED		GROUP LISTED VEHICLES		NON-DEFAULT HISTORY
+200		+USD 17bn		5	New York, Buenos Aires,		Even in the worst
		& Sao Paulo		Argentinean crisis (2001)

IRSA IPO

APSA

APSA IPO (now IRCP)

CRESUD	LIABILITY
FOLLOW ON	MANAGEMENT

Tender offer IRSA bonds New IRCP

LOCAL MARKET

BA & NY LISTING

BA & NY LISTING

APSA & IRSA CONVERTIBLE NOTES

USD 288 MM Regional expansion

USD 360 MM bond IRCP 8% SPO USD 138 MM

DOLLAR LINKED ISSUANCES

USD 265 MM

1994	1997	2000/1	2006	2008	2012	2016/7	2018/9	2020
CRESUD US LISTING	BRASILAGRO IPO	BRASILAGRO US		DEBT	DURING
REFINANCING	COVID-19
	Follow on	USD 276 MM			LISTING
			CRESUD USD 246 MM	PANDEMIC
	USD 92 MM	Company Foundation
				IRSA USD 227 MM

27

Thanks!

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