Good morning everyone, and welcome to IRSA's Second Quarter 2017 Results Conference Call. Today's live webcast, both audio and slide show, may be accessed through 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] 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.

Thank you very much, good afternoon everybody. Beginning our second quarter 2017 conference call in Page 2, you can see the main highlights for the six months. The financial consolidated results, we see that the revenues that we are achieving this six months is achieving ARS36.8 billion. From those 2.8 billion comes from Argentina and 35 billion comes from the Israel operations. The EBITDA that we achieved was ARS5.2 billion, 1.2 billion from Argentina and 4 billion from Israel. The net gain for the six months is 4.2 billion, gain of Argentina is almost 200 million and then comparing to the last year loss of 900 million more related to the evaluation of last year and in the [indiscernible] in the six months, Israel brings 4 billion of the net gain. To the shareholders of IRSA, the gain is ARS2.1 billion attributable to the shareholders of IRSA. And when we divide Argentina to Israel, we can see that we have good results in the rental segment. The segment - the EBITDA of the rental segment grew almost 30% comparing to six months to six months of last year, there are some lower results from sales of investment properties. This year we are selling less than last year and there are two main big projects under progress of two office buildings, the Polo Dot and Catalinas office buildings that we are going to show you some pictures later. In the Israel business center, we have shown this quarter very strong results coming mainly for two reasons, one is the ADAMA sale, ADAMA sale we're going to explain later that we brought a lot of cash to the company, and the increase of the share of price of Clal that it's valued still at market value having 55% but still marketing at market value of the share, but a rebound on the share value. In November of 2016, IDB had issued notes in these Israeli market for ILS384 million and this paying an interest of 6.95%, pledging the shares of DIC and there are some more news on this relating the issuing of new debt in Israel that we’re going to show you a little later. So now I will introduce the Daniel Elsztain. Please Danny.

Thank you Alejandro, good afternoon everyone. On the following page, we can see how our sales were doing on the last year; we had a quarter of 18.6% [ph] growth in pesos. The previous quarter was 21% For the six months period we have 19.9% increase in sales. Although we are below inflation, we see our tenants less worried and the marketing is getting normal. It's easier to predict, so we believe that we are now in a new trend in terms of sales. In terms of occupancy, we are still at a very high occupancy levels and our shopping center at 98.4%. We increased a little bit, our stock was about 2,400 square meters. [indiscernible] expansion of Distrito Arcos Premium Outlet. So we think we can hit this occupation and also the sales at this level. On Page 4, talking about the office segment, we are at 100% occupancy level for the second quarter, impossible to beat. The price is going up in our portfolio. So in the market as a whole now we're seeing a [indiscernible] product per square meters per month and our portfolio was used a little bit on this quarter because of the sale of about 1,800 square meters at Intercontinental Plaza building. But remember that we’re going to replace all the non-core place that will sold. We have been selling in the past quarters with local traction in better locations that we consider to be part of our core assets. Those examples that Polo Dot Office Park and the Catalinas building that you can see that we're going to grow our existing 77,000 square meter of GLA in office to 125,000 square meters in GLA that’s 62% increase of our portfolio. That will increase our potential there will be 90% potential increase in our…

Thank you, Daniel, going to Page 9, we have the description of our investment in Israel, our Israel business center. So the main highlight for this squatter definitely was the result of the disposal of ADAMA that generates around ARS4.7 billion of gain from that transaction. On Page 9 we have the structure of IDB. Dolphin that is below IFISA that we control around 99.99% of those Dolphin, we control 68.3% of IDB and IFISA company controlled by our Chairman Eduardo Elsztain, control 31.7%. So IFISA apart from their stake on IDB control 8.8% of the DIC, a subsidiary of IDB where IDB has 67.9%. Then the rest two subsidiaries, important subsidiaries at the IDB level are definitely the main important is Clal Insurance, the insurance company that we value that investment at market value and according to the evaluation of the shares in the Israeli Stock Exchange. And IDB Tourism that is a company that we are in negotiations to dispose. In this quarter, we recognized an impairment for that investment for ARS230 million that is the price that we are negotiating with a third-party. So we already recognized the impairment that in the case that we sell we already recognize it’s a loss. In Page 10 as I said the disposal of ADAMA we sold ChemChina, a 40% of our stake in ADAMA. So that generates - we sold for $230 million in excess of the loan that Chinese bank provide for that acquisition. So DIC received this quarter $230 million in cash that generated a gain on this transaction for IRSA of ARS4.7 billion. In Page 11, we have the other important effect for this quarter that was the improvement in the evaluation of the cloud shares in the market so the shares increased in the semester…

[Operator Instructions] Our first question is from Jorel Guilloty with Morgan Stanley. Please go ahead.

Good afternoon gentlemen. So my first question is regarding IDBD. So you have ILS700 million due in 2017 and ILS655 million due in 2018. And I was just wondering how you expected to pay for these amortizations, would it be directly from IDBD cash flows or is there further asset sales that you're contemplating, renegotiating to extend these debt maturities? So that's my first question. Matías Gaivironsky: Thank you, Jorel. If you remember, we commented in March last year that the idea of the company was that IDB start to refinance itself without any equity in section. So far, the last investment that we did in or the last equity injection that we did in IDB was March 2016. From that, the company issued two series of debt in the market. One with collateral of Clal shares and the other with collateral of DIC shares. Unfortunately, the series with Clal share was rejected by the court and we had to cancel that debt. So the idea and after receiving, we went to the court, appealing that that rule and after that, we decided to issue a new series of debt with the collateral of the potential proceeds of any disposal of Clal shares. So the company now is in the market raising money. So we have a strong demand. In fact, today was institutional tranche of the issuance and we’ll receive a huge demand for that new series, so we are in the process of finishing the issuance or it’s not finished yet, but the company received more than ISL1.4 billion of demand. So we plan to issue the series and with that money, we believe that we will have money to serve our debt in the coming years without any equity injection from our side.

So that debt issuance would cover the ILS1.4 billion due for the next two years? Matías Gaivironsky: It’s not finished yet, so I can’t comment now the final results on the debt, but I can say that we will serve substantially all the next amortizations for the coming years.

Okay. And then, one other question I had, comparing your revenues from malls in IRSA and the releases from IRSA and IRSA commercial properties, we noted that there was a bit of a difference between how they were shown for the quarter. I was -- and more to the fact, it was about, I guess, ARS990 million at the IRSA level and then ARS1.2 billion at the IRSA commercial properties. So I was just trying to understand what the difference was in reporting between the two? Matías Gaivironsky: Jorel, I don’t have the figures what you’re referring in front of me, but I can say that the line of revenues between IRSA and IRSA commercial properties on the commercial side, you have the hotels and some offices that remain at the IRSA level. But why don’t you send me an email with the information and I will address right after.

It's great. And then, the last question, if I may, is looking at total revenues for the hotel segment, it seems like food and beverage is becoming a bigger portion of the total revenues. It seems it was maybe like 40% of total revenues. Should we expect food and beverage to be a bigger portion for hotels? Matías Gaivironsky: One second. Hi, Jorel. Sorry for -- I couldn’t press the mute button, sorry. We see that this year, we had more food and beverages, but I think this is only for the year, I mean what we estimate is [Technical Difficulty]. It is true that F&B is getting more important as a whole especially because of more priorities, more things going on in terms of the corporate, it has hotels, but we estimate that that will keep as it is today where we’re going to grow rooms in the future.

[Operator Instructions] This concludes the question-and-answer session. At this time, I would like to turn the floor back to Mr. Alejandro Elsztain for any closing remarks.

Just for closing, the Israel brought us very good news and brought financing from sales and sales of assets that were hidden value on the company level and we are very happy that the rental is growing, growing at a big pace and more probably in the future, we’re going to be receiving more money at the Argentina level that it’s becoming cheaper and cheaper. So we’re probably going to increase our speed on development and in the Israel side, with the sale of one asset, the company is recovering its financing, its sales are probably, these are very good news, bringing us better results on the balance sheet. So we expect to keep this in the next future. So just to thank everybody and have a very good day. Bye.

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