Good morning everyone and welcome to IRSA’s First Quarter 2016 Results Conference Call. Today’s live webcast, both audio and slide show, may be accessed through the Company’s Investor Relations website at www.irsa.com.ar/ir by clicking on the banner, Conference Call. The following presentation and the earnings release issued last week are also available for download on the Company website. After management’s remarks, there will be a question-and-answer session for analysts and investors. At that time, further instructions will be given. [Operator Instructions] You will also have the option of sending your question via webcast by clicking on the question to host tool. Before we begin, I would like to remind you that this call is being recorded, and that information discussed today may include forward-looking statements regarding the Company’s financial and operating performance. All projections are subject to risks and uncertainties, and actual results may differ materially. Please refer to the detailed note in the Company’s earnings release regarding forward-looking statements. I will now turn the call over to Mr. Alejandro Elsztain, Second Vice President. Please go ahead, sir.

Hello. Good morning, everybody. We are beginning our conference call of the first quarter of 2016. If we go to the first page, we can see our main highlights for the quarter. The revenues from sales lease and services for the year were almost ARS 730 million, 21% higher than last year. The EBITDA of the Company was almost ARS 780 million, 14% higher to last year numbers. The net income went to a loss of ARS 316 million compared to a again of last year of ARS 135 million. The mall business, the shopping centers industry, we achieved a growth of 37.8% comparing to last year numbers to a number of ARS 420 million. The office segment to ARS 48 million, it’s increase of 581%; this is because we transferred the business -- it is not comparing year-to-year, it’s actually the same because we transferred in the middle of the year, the office buildings to the Company and that’s the reason. The mall tenant sales increased 44.5% but if we compare exactly the same-store sales was 36%. This is because of the entrance of the two new shopping centers, the Alto Comahue and Arcos. Office leases remained stable at the level of $25.3 per square meter. We had a gain on the sale of the investment properties for ARS 156 million. We sold almost 6,000 square meters of Intercontinental Plaza building. The levels of occupancy in both businesses are still high, 98.9% in shopping, 96.4% in office buildings. As to the balance sheet, this is after the 30th September; we had the sale of Maipú building for $3 million paid outside for a gain for ARS 25.6 million to be recognized in next quarter. In the case of IDBD, our partner Extra Holdings sold its investment, IFISA was the buyer increasing the stake for 31% increase remained at 49% resulting and we have the changing valuation because of the cost and because of the lawsuit we had. And now Matías is going to explain why we recognized ARS 660 million lost in the recognition of that change of valuation method. I will introduce now to Daniel Elsztain, our COO, speaking about Commercial Properties.

Thank you, Alejandro. Good morning everyone. On page number four, we can see our strong operating figures, on the top of the page. Shopping center sales, our tenants were doing very well in this quarter. We see an increase of 44.5% increase. The first effect is because the inclusion of the two new shopping centers. If we compare same-store sales, we see an increase of 36.3% that’s big increase. And the first comment I can make is because we are comparing the last year quarter, we have the low base. On top of that we have very good sales and the electronic consumer appliances also had peak, they were not coming so good. So, that is explaining basically why it increased in sales in our shopping our centers. We also see, on the bottom of the page, we see that we increased our stock by inclusion of these two new shopping centers for about 23,000, 24,000 square meters. And our occupancy is a little bit up, went to 98.9%. So stock is up, occupancy is a little bit up, sales went up, and we also increased business [ph] of course because of the inclusion of the two new shopping centers. On the next page, we can see our today existing development of the second phase of Distrito Arcos Premium Outlet. As you remember, we opened during this year the first phase and we’re very happy the shopping is performing very well; actually it’s performing better than expected. And we are going to finish, during this fiscal year, the second phase, the total approximately investment is about ARS 74 million with an expansion of about 3,500 square meters of GLA. And the development is in progress. We already signed agreements for the tenants of our 60% of the tenants, [indiscernible]. And…

And the floor is now open for questions. [Operator Instructions] Our first question today comes from the line of [indiscernible] from Morgan Stanley. Your line is open.

So, on IDBD, as I understand and the way the new valuation methodology works is that you’re taking the market cap and then you’re subtracting the value of the tender offer obligation and value that tender offer obligation is based on the methodology that you’ve created. Am I understanding it correctly? Matías Gaivironsky: Yes, you simplified a little; it’s a little more complex that because there is no clear price of the tender offer. So, we have to start with the valuation of the shares and try to deduct the pool option. In that methodology, we are using a scenario. Basically the part of the put we are using Black and Scholes but then we apply different scenarios and chances for each scenario. So, we still have 50% chances that we will be succeed in the Supreme Court appeal in that valuation method. But yes, you described it well the idea. But then to give you an idea, we are recognize that the price of the shares around ILS 1.2 per share while price of the share today is ILS 2.2.

So net, it’s about half of the value almost that will be in the tender offer? Matías Gaivironsky: Sorry, can you repeat the question?

We can follow up later with the details. I also had another question on the potential development pipeline for malls. So, in your presentation you say that the potential development pipeline for the malls could CGLA double for this portfolio. I was wondering when would you expect these developments to start taking place, and what returns either IRRs or yield on cost are you targeting?

As you probably know, it’s changing every week and Argentina now is in very much enthusiastic mode because the election is coming. We expect the decrease in the cost of capital of the country. So, this will allow us to speed all of our growth in our existing and new shopping centers. So, we are now probably presenting the next -- you know that always we present when we launch, not before. Now, we are discussing one project in Dutch [ph] that probably will be third of an expansion. So, we are looking for internal rate of return surpassing 10% and we are expecting the decrease on the cost of capital for the country for increasing the speed for our expansions.

[Operator Instructions] And our next question comes from the line of Jonathan Rosenthal from Newfoundland. Your line is open.

Hi guys. How you’re doing? I was going through some Israeli head buy-ins and [indiscernible]. There are actually three bidders for the insurance asset at a substantial premium to at least existing market prices. What I’m wondering is I think the three bidders are Chinese. And in light of that, will this affect the timing of the closure of this transaction, because the way I interpret it is if you’re able to sell a stake, this will pretty much ring fence future cash needs for your Israeli investment. So, if you could give us any color on that, to the extent that you can, that would be most helpful. Thanks.

Yes, it’s true that there are three offers. There is a process that is in place now. Today, we are not controlling that process or there is a trustee that is managing that disposal. There are three offers that came as far as we know from Chinese companies. So, there is a process of the additions right now. So, we can’t assure the timing for the transaction. There is -- the regulator has to approve in Israel any kind of acquisition of an insurance company. So, there is some steps that should be covered. In terms of the pricing yes, the price is much higher than the price of the share today. The shares are trading at the market cap of around ILS 3.2 billion; the offers are around ILS 4.5 billion or more. So yes, they are significantly higher than the market. But we don’t control the timing of the process. So, the process will be managed by the trustee and there are some legal stages that we will monitor of course.

And then one other kind of head buy then I’d like clarified that IDB development is more in the replacement of the share offer with the bond sale. And I guess the company’s holding talks with bondholders currently. Who is in-charge of these talks as well? Is it the creditors or who is representing the company? And how is this possible, if kind of you guys already committed or the company is already committed to issue equity. I mean what’s been it for the bondholders to replace the share offer with more leverage, more debt? Matías Gaivironsky: Okay. I will try to answer the question. There are things that I can’t comment, because…

I know it’s not a fair question, I just -- any incremental clarification helpful. Matías Gaivironsky: Yes. As I described we have a commitment to launch the tender offer and we have an underwriting commitment of the offering. Mainly why we give the underwriting commitment is because the company needs the money before the year-end of ILS 200 million. So, part will go to pay debt, part will go to exercise warrant on BAC. So, it’s ILS 100 million each, more or less. If the company has the money and they don’t need the capital increase, probably they can decide not to issuing equity. So, if they have another sources like what you described, if we should more debt or the company needs money, probably they can replace the capital increase. There are some negotiations around the tender offer obligation. And there are some -- there is a claim in the justice we appeal in the Super Court, so there are some developments around the tender offer obligations and there are negotiations around that. It’s the only thing that I can comment. But if the company -- regarding who participates in that negotiation is not any obligation from the company, the tender offer is an obligation from Dolphin, so people from Dolphin are in-charge of the negotiation and its with the arrangement trustees. And how will be the approving process of that is more uncertain, because there are third-parties and probably they should approve or should verify any agreement that we reach with arrangement practice.

Our next call comes from the line of Alejandra Aranda from Itau. Your line is open.

I have three questions if I may. First of all, I would like to know how you’re seeing commercial dynamics evolving next year, especially given that we saw your tenants going up on the shopping malls. If you could tell us a little bit of what you’re thinking and with your relationships with the tenants what they’re viewing, especially if you could elaborate between differences that you may see between first half and second half of the year? Then my second question would be on other projects or segments that you’re seeing in Argentina specifically. I know you’re coming out with a bond on Hipotecario right after the elections. So, if you could comment on other opportunities that you’re seeing? And the third, back to IDBD; is there a timing, for the Supreme Court ruling?

We’ll start with the projection for next year. We still don’t know what will happen in terms of pricing from our tenants if the valuation happens. And that will trigger -- we mentioned sales in terms of pesos sold. So, we don’t know what’s going to be the main effect. So far, we have not seen -- after the quarter, we have not seen any big change yet. And we also think a trend of international retailers, the big retailers coming to Buenos Aires asking us for potential locations. So, there will be a mixture. At the end, we don’t know. Whatever happens will happen in the first quarter but our shoppings are very stable and we’ll follow the trend of the market and the macro-economy of the country. In terms of the projects, we are producing a lot of cash, the company is a cash producer and also we have opportunities on the market which leverage the company and we did it recently and we can keep on doing, if the opportunity comes. And as Alejandro mentioned, we have many-many opportunities that we still have in our portfolio and opportunities to buy. We are not announcing because we have not made any decision yet but as you know us, every time we see the opportunities we try to take them and we know how to take them. And regarding IDB, Matías? Matías Gaivironsky: Regarding the Banco Hipotecario, the offering, there is increasing confidence from Argentina I think from the investors. Banco Hipotecario has amortization next year and they are trying to replace the bonds in the market. So, they announced the transaction to close after the elections. There is -- probably it’s more a question for Banco Hipotecario regarding the timing. But what I can comment from here is that we see an increasing confidence from the investors and people that are asking for good quality credits to invest. So, we start to be confident on that trend in Argentina. And there is one of our projects for the next year regarding our debt, so this is something that we will try to do next year. And regarding the timing of IDB, Supreme Court decision, the justice in Israel is really fast. So there we have an audience probably next -- probably there the first date of December but I can’t give you exact date because we don’t control. Probably they will try to rule before the year-end that is the day that we have to pay and launch the tender offer.

Just one on the project side on a more general topic, is there anything that you’re -- any sector that you’re finding more enticing or that you think -- that you’re thinking more of or just you’re signing the same wait and time to every single sector?

We are probably trying to do both, you know that we were selling some of our office buildings and now we are thinking on client to quality [ph] because there are some projects they’re yielding very well. And so we are going probably to be launching the office buildings and the shopping centers at the same time.

Thank you very much,

Thank you very much gentlemen. Operator, I think we have to leave. We have another conference call very soon. Thank you very much to everyone. This is the time of changes in the country. The elections are very soon. The country is under a lot of eyes that they’re looking for opportunities. We expect the real estate to be very strong. We expect to be building a lot for the next quarter. So, thank you very much for everyone and have a very good day.

Thank you. This concludes today’s presentation. You may now disconnect your line at this time. And have a nice day.