IDBD Consolidation on CRESUD`s Financial Statements

IDBD Consolidation on CRESUD`s Financial Statements

IDBD Consolidation Effect
Institutional
Presentation
on Cresud’sMarch
Financial
Statement
2013
May 2016
1
IDBD Consolidation on CRESUD’s Financial Statements
Timeline
o On October 11, 2015 the Group controlled by Eduardo S. Elsztain (“IRSA”, “Dolphin Fund” and “IFISA”) took effective control of IDB Development
Corp (“IDBD”), and as such CRESUD started consolidating IDBD as from this date.
o CRESUD’s IIIQ16 Financial Statements, to be released on May 11, 2016, will consolidate IDBD Results with a three month lag.
June 30
2015
September 30
2015
Annual and Last quarter Results
(Non consolidation due to lack of control)
October 11
2015
Effective Control
December 31
2015
March 31
2016
Assets & Liabilities
Results
IDBD Consolidation
IDBD Consolidation
Accounting facts
o As information is not available on timeline basis, consolidation will be made with a three month lag as permitted by accounting standardS.
o The Purchase Price Allocation process is expected to be finalized by June 30, 2016 concurrently with our year-end.
2
IDBD at a Glance
Ownership Structure
Business Description
 Largest and most well diversified Conglomerate in Israel
 Controller
of
Israel’s
largest
IFISA
Dolphin
31,7%
68,3%
telecommunications’,
agrochemicals’ and supermarkets’ company.
 Controller of PBC, leading real estate company in Israel
IDBD
73,9%
IDB
Tourism
IDBG
55,0%
DIC
CLAL
 Controller of the 2nd insurance company in Israel
76,5%
 ~ Delisted from Tel Aviv Stock Exchange since March
PBC
40,0%
ADAMA
50,3%
ELRON
41,8%
CELLCO
M
47,1%
SHUFERS
AL
31,2016
Investment made by IRSA
Amount
Amount invested by IRSA in Dolphin
~ USD 515 million
3
3
Balance Sheet Disclosure
o Two Businesses
o Agricultural (Farmland operations in Argentina, Bolivia and through our subsidiary Brasilagro, in Brazil and Paraguay)
o Urban Properties and Investments (IRSA’s operations divided in two different Business Centers: Argentina & Israel)
Agricultural Business
Cresud S.A.C.I.F.y A.
BrasilagroCompanhía
Brasileira de
Propiedades
Agrícolas
Futuros y
Opciones.Com
S.A.
Agropecuarias: Acres
del Sud S.A. Ombú
S.A.
Yatay
S.A. Yuchán S.A.
Agro-Uranga
S.A. (ii)
Sociedad Anónima
Carnes Pampeanas
S.A.
Cresca S.A. (ii)
Urban Properties and Investments
IRSA Inversiones y
Representaciones Sociedad
Anónima
Argentina Business Center
IRSA Propiedades
Comerciales S.A.
Nuevas Fronteras
S.A.
Llao Llao Resorts
S.A.
New Lipstick LLC
(ii)
Condor Hospitality
Trust (ii)
Banco
Hipotecario
S.A. (ii)
Israel Business Center
IDB Development
Corporation Ltd.
IDB Group Investment
Inc.
IDB Tourism
(2009) Ltd.
Discount
Investment
Corporation Ltd.
CLAL Insurance
Enterprices Ltd. (i)
(ii)
Property & Building
Corp.
Shufersal Ltd.
(i) Companies not consolidated (registered as equity investees)
Adama
Agricultural
Solutions Ltd. (ii)
Cellcom Israel Ltd.
Elron Electronic
Industries Ltd.
4
Balance Sheet Disclosure
o CRESUD Consolidated Figures will be separate by Business as follows…
New Exposure of our subsidiary IRSA
between Argentina & Israel Business Center
Urban Properties & Investments Business
Agricultural
Business
Revenues ................................................................................................
Costs .......................................................................................................
Initial Recognition and changes in the fair value of Biological Assets and
agricultural products at point of harvest .................................................
Changes in the net realizable value of agricultural products after harvest
Argentina
Business
Center
Israel
Business
Center
Total
Subtotal
Information to
be included
this quarter
(IIIQ16)
Gross Profit ...........................................................................................
General and administrative expenses ....................................................
Selling expenses .....................................................................................
Other net Operating Results ...................................................................
Profit from operations ..........................................................................
Income/(Loss) from associates and joint ventures .................................
Segment Profit / (Loss) .........................................................................
Investment Properties .................................................................................
Property, Plant & Equipment.......................................................................
Properties for Sale ......................................................................................
Goodwill.......................................................................................................
Rights to receive future units from barter transactions ...............................
Biological Assets .........................................................................................
Inventaries ...................................................................................................
Information
included
since last
quarter
(IIQ16)
Associates and Joint Ventures ...................................................................
Total Assets of the Segment....................................................................
5
Balance Sheet Disclosure: Segment Information
o Segments of CRESUD will look separately between Agricultural and Urban Properties & Investments as follows…
AGRICULTURAL SEGMENT
CRESUD Agricultural Segment looks
the same than before consolidation
December 31, 2015
Agriculture
Leases &
agricultural
Grains
Cattle
Milk
Sugarcane
services
Sales & Land
Subtotal
Transformation Agro-industrial
Others
Total
Revenues .......................................................................................................
Costs ..............................................................................................................
Initial Recognition and changes in the fair value of Biological Assets and
agricultural products at point of harvest .........................................................
Changes in the net realizable value of agricultural products after harvest .....
Gross Profit ...................................................................................................
General and administrative expenses ............................................................
Selling expenses ............................................................................................
Other net Operating Results ...........................................................................
Profit from operations ..................................................................................
Income/(Loss) from associates and joint ventures .........................................
Segment Profit / (Loss) ................................................................................
Investment Properties.....................................................................................
Property, Plant and Equipment.......................................................................
Goodwill ..........................................................................................................
Biological Assets ............................................................................................
Inventories ......................................................................................................
Participation in Associates..............................................................................
Total Assets of the Segment .......................................................................
6
Balance Sheet Disclosure: Segment Information
URBAN PROPERTIES AND INVESTMENT SEGMENT
Segments of IRSA’s operations from Argentina
looks the same than before consolidation
December 31, 2015
Argentina Business Center
Shopping
Centers
Revenues ....................................................................................
Costs ...........................................................................................
Gross/Loss Profit.......................................................................
Result on Sales of Investment Properties.....................................
G&A .............................................................................................
Sales Expenses ...........................................................................
Other Net Operating Result .........................................................
Operating Income ......................................................................
Associates and Joint Venture Results ..........................................
Segment Profit/Loss ..................................................................
Office and
Others
Sales &
Development
Hotels
International
Financial
Operations
& Others
Total
Investment Properties ..................................................................
Property, Plant and Equipment ....................................................
Properties for sale........................................................................
Goodwill .......................................................................................
Rights to receive future units from barter transactions ..................
Inventories ...................................................................................
Investments in associates and Joint Ventures ..............................
Operating Assets .......................................................................
Israel Business Center
Information to
be included
this quarter
(IIIQ16)
Information
included
since last
quarter
(IIQ16)
Real Estate
Supermarkets
Agrochemicals
Telecommunications
Insurance
Others
Total
Revenues..............................................
Costs ....................................................
Gross Profit \ (Loss) ..........................
Segment Profit \ (Loss) .......................
Operating Assets ..................................
Operating Liabilites .............................
7
IDBD Assets & Liabilities Consolidation
An accounting effect
Assets
Liabilities
En ARS Billion
130
123
~ 11x
~ 8x
16
IDBD debt non
recourse to IRSA
11
Assets (BV)
Debt (IBL)
Solares de Santa María – Mix Uses
o Research Analysts’ NAV Calculation states that IDBD investment represents ~ 10% of our subsidiary IRSA’s
Assets at Market Value and agrees that this consolidation is just an accounting matter
8
Land is our Value
Thanks!