Good afternoon everyone, and welcome to IRSA's Second Quarter 2018 Results Conference Call. Today's live website, both audio and slide show maybe access through the Company's Investor Relations website at www.irsa.com.ar/ir by clicking on the banner Conference Call. The following presentation and 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.

Thank you very much. Good day for everybody. We are beginning our second quarter 2018 conference call. If we go to Page number 2, we can see the main events for the six months of the year. The net income for the six months, we achieved at IRSA level, ARS10.8 billion, almost 59% comparing to last year numbers; and attributable to IRSA, almost ARS9 billion versus ARS3.8 billion of last half year. In Argentine Business Center, the gain was ARS12 billion, mainly explained by the higher change on the fair value of investment properties and higher rental from the rental segments in Argentina plus the results of Lipstick and Banco Hipotecario. In the case of Israel, we received a loss this quarter of -- the first 6 months of ARS1.3 billion. And it's explained mainly because of the debt exchange at DIC level that partially was offset by the sale of small business subsidiaries in Israel. The Adjusted EBITDA for the whole reached ARS7.2 billion, 38% higher of last year numbers. And dividing Argentine Business Center, we can see that the rental segment grew by 18.4%. Our occupancy reached 99.1% in shopping and 93.2% in office buildings, 71.2% in the hotel portfolio. There was a higher service and development compared to last year because of the Beruti, Maipu and Baicom sales. We approved a dividend to shareholders of ARS1.4 billion that represented of annual of almost 5%. The change in the secondary market of 10.2 million shares of commercial authorities, we had the chance to begin to give liquidity to the shares of IRSA commercial property. Today the liquidity is 10.5% and still in line 86% of the share with the intention of even more liquidity to the market. In the case of Israel Business Center, in November of '17, we transferred DIC shares from IDBD to Dolphin in on order to meet the concentration law requirement, and Matias will explain later little more. In December '17, we acquired IRSA acquired through Dolphin, the remaining 100.7% of IDBD, today Dolphin holds 100% of the stake of the Company of IDBD in Israel; and in January of this year, we sold additional 5% of Clal shares through new swap transaction, today the stake that we are running through IDBD it is 39.9% of Clal. So, now I will introduce Daniel.

Thank you, Alejandro, good afternoon everyone. On Page number 3 we can start with the Argentina Business Center starting with the rental of the shopping mall sales. We grew 22.6% on the first six months of this fiscal year compared to the last year and occupancy level went to 99.1%. We grew little bit below inflation but we can say that the activity is normalizing, getting more easy to predict for our tenants and also to import in the country, so routes are clear for the next future. On the case of the offices, our strength of the office portfolio to increase to $26.5 per square meters per month, and the occupancy was reduced to 93.6%. This is mainly the vacancy of two floors, two new empty floors on one of the buildings, and we were not able to sign the contract during the quarter but we have now a lot of prospects and we might see these two floors rented in the near future. The activity in the office segment is still strong and prices are still going up, not as much as they were in the past but still going up. When we see on the right side of the Page number 3, the adjusted EBITDA for shopping malls grew to ARS1.3 billion -- ARS1.3181 million, it's an increase of 23%. And when we see on the office segment, here the adjusted EBITDA looks like the reduction of 3.6, but this is mainly explained because the last year it's included here a one-time effect when the Company acquired a minority stake on the entertainment holding, that is the Company that is dedicated to the exhibition and convention center in Buenos Aires, there was a one-time effect of a gain of ARS44 million. If we exclude that effect, the…

Good afternoon everybody. So going to Page 5, we can see our figures on Banco Hipotecario, remember that we have a stake of around 30% in Banco Hipotecario. We can see this semester very good results when we compare with the previous one. There was a gain of ARS410 million pesos against ARS38 million in the previous year and we have a very good impact even the share of the Banco Hipotecario. You can see on the right, the revolution of the share from 4.71 last year to 16.95 yesterday. So our stake in Banco Hipotecario today was 387 million again 174 that's was the valuations in the previous year. This in terms of price per share represents around $6 for our share. Turning to Page 6 we have main event IDB. As Alejandro mentioned, one important development was the acquisition through Dolphin of the remaining stake of IDB. So to-date, Dolphin controlled 100% of the shares of IDB. There was a transaction that was a payment $33.7 million and debt cancellation on the remaining intercompany loan that we used to have between IRSA and some of the IRSA vehicles and IFISA, so to-date, there is no intercompany loan in any of the structure. Concentration law, there was a good important development. We have been working during the last year to solve a delinquency on the concentration law in Italy. Finally, we find an infrastructure where we try for the DIC share to a new vehicle Dolphin Israel that is controlled 100% by Dolphin. So, it's belong 100% to Dolphin and Dolphin has an intercompany loan with IDB. So there was no -- only a small payment and there was no cash payment, so it's all financed by an intercompany loan that is not recourse to IRSA, it's only guarantee…

Thank you. The floor is now open for questions. [Operator Instructions] And we have a question from Jorel Guilloty of Morgan Stanley. Please go ahead.

I actually have just one question and it's on IDBD and DIC, in the presentation you pointed out that the leverage levels have declined materially for both, and NIS250 each year with the past few year. But I wanted to get a sense of, if you're comfortable at current leverage levels for these companies and if not what is your target for debt?

So, we have been improving significantly the leverage of both companies since we entered both. I would say probably almost all of our investment in the Company were to reuse the debt, now the Company for instance in IDB, they have started to sell shares of Clal that have automatically an improvement in the leverage because you will yield that stake to cancel debt. So in terms of ratio it depend on valuation of Clal, we're evaluating all our stake at market values, market value is significantly lower than book value, so if we yield book value to calculate the leverage, I would say that we are in normal ratios, if we calculate that at the book value, the market value sorry we are like higher than what we expect to be, so the question mark over there. We have some other assets that we can't dispose so that could generate decreasing the leverage. Regarding DIC, the Company has a normal ratio and a lot of fuel to manage the financial situation of the Company, so it's just totally normal, so we in terms of needs of the Company, we don't see any need from the Company in the short term, in fact they have the cash to manage all the short term amortizations and up to the end of 2019, in the case of IDB and in the case of DIC much longer, so we don't anticipate any need from the Company. And on the other side the Company today is running a total of NIS7.5 billion on the hand and we look for the cash position of the group is very strong today in all of the levels, so subsidiaries included.

[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 to thank everybody to the conference and we hope to have the second semester so good. The companies are growing, developing everywhere, so keeping the track we're expecting in the past. Thank you very much and have a great evening.

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