Good morning everyone, and welcome to IRSA's Fourth Quarter 2017 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 the banner Conference Call. The following presentation and the earnings release issued last week are also available for download on the Company's 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.

Good morning, everybody. We are beginning our conference call of fiscal year 2017, so we are [reporting] the whole year and we can begin in Page #2, talking about the main highlights for the year. The Company has changed recently in this quarter the method of valuation and now for investment properties on the June 30 of this year. When we think about the financial and consolidated results, we achieved revenue of ARS74 billion and from those we divided in ARS5.8 billion from Argentina operations centers and ARS68 billion from the Israel operations centers. From the adjusted EBITDA 10 billion was the result from those ARS2.4 billion came from Argentina and ARS7.6 from Israel and our net gain is a net gain of ARS5.2 billion. And from those almost half ARS2.7 billion came from Argentina and ARS2.5 billion came from Israel. And from those attributable to the shareholders of IRSA are again of ARS3 billion. Related to Argentina Business Centers there were very good results on the rental segment and we saw that in the presentation of IRSA Commercial Properties that we can follow on the web and the adjusted EBITDA for the rental segment grew by 27.5% compared to this year numbers. There was lower result from sales of investment properties of this year. This year was sales too low than last year and lot of development because of that from ARS128 million this year to the last year about 900 almost ARS900 million and there is a lot of buildings under progress like the Polo Dot and Catalinas office buildings in the Company's new commercial properties level and these are two. So related to Israel Business Center that we are going to speak more deeper in the whole presentation, we saw very strong results due to the ADAMA sale and an increase on the share of price of Clal that is value of market value, as you know having 50% of the share we are still marketing actually at the market value of the share. And a lot of issuance of note and here we only showed one that was the IDBD level, we issued NIS1.1 billion and NIS642 million greater. So two issues at the holding level are 5.4% and 5.3% fixed rate due to 2019 up to 2022. So we will be well financed at the whole level and we are going to expect a lot of issuance as we did at Israel level a little later. Now I will introduce Daniel Elsztain, COO.

Thank you, Alejandro. Good morning everyone. On the following page we can start with Argentina Business Centers. We are going to see the main events of 2017 at the IRSA Commercial Property levels. Starting with the change of the valuation method, we've had to change the valuation method of the investment properties from historical cost to fair value that happened in the third quarter of fiscal 2017. We had on the operating figures on the rental shopping mall sales grew by 19.1% on this fiscal year compared to the previous fiscal year and occupancy is at the level of 98.5%. We had good results coming from the office segment due to the evaluation and positive outlook for the triple A building office market in Buenos Aires. This is an improvement [ph] on prices of this segment. Regarding investments during this fiscal year, we grew the GLA of the 15 shopping centers by approximately 8000 square meters due the expansion, mall expansion on different shopping centers and we plan to build it, and we acquired the Phillips building. It’s an adjacent building to the Polo Dot Office Park. This was a building bought for $29 million and the building and also rights to build 18,000 square meters on the complex. The CapEx for the year [in support] we plan to develop 20,000 square meters of shopping malls expansion during the fiscal year including the regular expansion of Alto Palermo and some others along our portfolio. Based on this work in progress in our office buildings development, the Polo Dot, 1st stage building, the Catalinas that is expected to finalize by fiscal year 2020. Other investments, we increased our stake in La Rural, it is the fair & convention center and by this increase we now have control of the managing company…

Thank you, Daniel. Turning to Page 9, here we have the evolution of our investment in Banco Hipotecario. So we received again this fiscal year of ARS83 million again in the last year of ARS259 million, basically the Bank had lower result, financial result this year when you compare it with the previous year. So in terms of the value, the Bank reached ARS6.7 billion and its consolidated asset around ARS55.3 billion. So the Bank has continued developing sustainable solutions for housing deficit in Argentina. Prospects in Argentina started recovery in mortgage industry. So we hope that the Bank can take part of that evolution. It is increasing also the share in the financial consumer market and trying to boost corporate products businesses. You will remember that the last year the Banco Hipotecario started to convert in a more commercial bank after being 100% of mortgage bank. So, in terms of our investment today at market value our investment is around $180 million against the last year that was $220 million. If we move to Page #10 and we begin the explanation of what happened in Israel this year, we can talk about the main events. One was the sale of Adama. DIC sold its 40% stake in Adama to ChemChina and that stake to $230 million in excess of the total loan cancelation of $1.17 billion. So this is a big situation for DIC and this gain recognizes target ARS4.2 billion. After that there was a signing of Israir, the airline company, that the company had in the past and that transaction was the sale of Israir within the framework of which a net amount of approximately $42 million to $45 million will be received in cash and 20% of the shares of Sun D’or subject to some approvals…

Okay, so if you're going to Page 11 you know that in Israel there is a law that established how many layers of family companies we can control in Israel. So basically they established that we can't have more than three public layers by the end of 2017 and as of today the company controls four layers. So what we propose to do is to create a new vehicle and on the Page 11 you have a graph of the proposed transaction where Dolphin will create a new vehicle that will acquire all the shares of DIC and we will pay that acquisition through a non-recourse loan guaranteed by the DIC share. So we are negotiating with IDB terms and conditions of each transaction, but basically if we are able to fulfil the transaction, after that we will be in compliance with the law. So DIC will be the first layer, PBC will be the second layer and some of the subsidiaries of PBC will be the third layer. So we won’t have any fourth layer. It’s important to mention that this transaction is subject to approval. The IDBD&IRSA and the permanent members should approve the transaction because it is related by transaction and also there is some regulator in Israel that have to give the green light of it, so we can comment that finally we will execute this transaction. If you move to Page number 12, we can see the impact that the Clal insurance market value share change from last year to this year 52% in Shekels and this made a gain in our balance sheet of ARS2.5 billion versus loss of last year of ARS1.8 billion. The two third of the 5% stake of market price through the swap transactions were done through balance sheet, but…

So if we go to Page #17, here we can see what we did regarding our investment properties. So we started to release or change the valuation method of all our investment properties from book value to fair value. So we did it in all the segments in shopping centers, in offices, in land resorts [ph] and all the investment properties from IDB that we put it across since our acquisition. All the assets that remain are at historical book value was all related to property plan and equipment that is basically our hotels. To understand how we changed the valuation method, we restate all the financial statement for the last five years. So what we did is to give the impact since 2011. So, we revalue all the assets in each of the year and so the first impact was that was in 2011went to our reserve in our network and then in 2011 each of the year there we saw the change in the valuation went to the line of accumulated earnings. And in this year starting in and you will see when you see the financial statement of this year in 2016 and 2017 you will have the impact directly in the P&L line, in the line that is the name is Changing the Evaluate in the valuation of investment property. So every year or every quarter you will see from now our results are and the change in evaluate in the fair value for our property directly in the P&L. When you go to Page 18 you can see the impact. There is a huge impact when in each of the lines. The investment properties of IDBD changes from $3.2 is almost $3.3 billion to $3.6 billion, remember that we have to consolidate IDBD last year.…

Thank you. [Operator Instructions] And your first question will be from Jorel Guilloty of Morgan Stanley. Please go ahead.

Good morning gentlemen. I have a few questions on the fair market value adjustments, so first off according to this online presentation land reserves have a value of $325 million. What we were wondering is, what is the value of Solares de Santa María in there? And the second, why are the hotels still valued at cost? And the third question is, when you say that IDBD properties are worth $3.6 billion, what exactly are you referring to, are these only the – only rent paying real estate meaning excluding Clal, supermarkets, et cetera? Thank you.

Thank you, Jorel. Good morning. So regarding Solares de Santa María the value according to appraisal is to have that $214 million that is value that is reflected in the 300 that we have in the presentation. So basically the main number that we have in that field. Regarding the hotels the categories of our hotels we decided to value all investment properties, so the category of the hotels is properties plant and equipment, so we haven’t evaluated that line item. So it’s true that they will allow us to value also properties plant and equipment, but since the results that will be generated by the change in valuation one is due to shareholders because they allow, don’t allow that, the rule that don’t allow us, that we decided to maintain at book value. And finally, the Israel property, the investment property that is the value of all the properties, investment properties of Israel that are basically the assets that are under PBC, all the PBC offices are income producing assets and there are some that are [indiscernible] levels as well that basically remain are the PBC. Sorry and Clal, remember that we are not consolidating Clal. Clal, we are maintaining everything at market value of our shares. So we are not recognizing any results from Clal in the property.

Thanks.

[Operator Instructions] And I’m showing no additional questions. We will conclude the question-and-answer session. At this time, I would like to turn the floor back to Mr. Alejandro Elsztain for any closing remarks.

To finalize our presentation, we were seeing all of the past, and saw a very good recovery in the Israel story and the issuance and refinancing of this financial situation in Israel and the sale of [indiscernible] things. We saw a very good evolution on the rental in Argentina as the development, which development in Argentina in the shopping and the office. Refinancing in Argentina like the bond of [last week], so we have the company is at very good situation having Argentina in a very strong market, a lot of capital coming to the country and the company having a lot of capital to do that and a lot of land plan to do that. And the ability to do it internationally using the capital markets of both. So we are seeing the company is closing a very good year and we expect the company to keep doing the job that it is doing, doing more office everywhere, doing more shopping and doing things, developing the real estate business in the world. So thank you very much and have a very good day. Bye.

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