Good morning everyone, and welcome to IRSA’s First Quarter 2018 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 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 morning, everybody. We are beginning our conference call of the first quarter 2018 in the page number 2. We can see the main events that happened on IRSA this quarter. This quarter, we achieved ARS74 million, earnings are decrease of 78% comparing to last year quarter. And the attributable part to IRSA was ARS553 million comparing to last year ARS200 million, so very good result on the quarter. The Argentine Business Center had a gain of almost ARS2.3 billion, sorry mainly because of the higher rental results and the increase on the fair value of the investment properties of commercial properties. And from the other side, we are going to see some good results from Lipstick and Banco Hipotecario later. Form the Israel Business Center, we have received a non-cash loss of ARS2.2 billion that mainly explained by non-cash effect in a debt exchange at DIC level and Matias will explain later. While speaking about the adjusted EBITDA, we have reached ARS3.2 billion which is a increase of 28% comparing last year quarter. Dividing the Argentina Business Center to the Israel Business Center. The Argentina Business Center had very good rental segment this year, combination of 26% completing Israel, occupancy of shopping 98.8%, 96.2% the office building, 68% in hotels. Higher sales and development, because of some sale of apartment and lot of land of Baicom. There was a statement of dividend, but was approved last assembly and was redone today ARS1.4 billion representing an yield of 5% to the Company. There was a subsequent events very importantly in the secondary market, so 10 million shares approximately for Israel Commercial Properties almost $138 million and you know that we have the intention of increasing the liquidity of this Company. And finally we did after the election that the market was much better situation so we sold a 13% of the Company. Now we have 86%, 86.5% of the shares and the rate was done by JPMorgan two weeks ago. That money entered to the Company after the 30 September so we are not seeing today on the figures of this number because it was done in October. From the Israel Business Center, there is a second tranche of DIC dividend paid. Remember we divided in two and was paid and IRSA that payment too for NIS181 million in total for all shareholders. However, there were the non-binding offer from Hong Kong listed company to acquire the stake in CLAL at book value still working and the concentration law we are working on resolving that on DIC transference of the shares to Dolphin in order to meet the requirements of the Israel Law. So with that, I will introduce the Daniel Elsztain.

Thank you, Alejandro, good morning everyone. On page number three we can see our main events at the IRSA Commercial Property levels, we are going to start with the rental operating figures. Shopping malls sales grew by 22.5% on the first quarter of this year versus last year and occupancy increased to 98.8%. we had very good results coming from the office segment due to the devaluation and lower selling expenses. Regarding CapEx, we have the plan to develop about 21,000 squares meters on our existing shopping centers, and also we have in progress the construction of the first stage of Polo Dot and the Catalinas office building, both expected to be ready to produce rents by fiscal year 2019 the first one and 2020 the other one. Other investments that we did on the quarter. During this quarter we acquired convertible note of TGLT for approximately $22 million. Also in the shareholders annual meeting held on October 31 was approved a cash dividend for a NIS680 million that is an approximately dividend yield of 2.2%. The adjusted EBITDA for the first quarter reached ARS755 million an increase of approximately 35% compared to first quarter of 2017. The adjusted EBITDA of mall and offices segment reached ARS648.4 million, an increase of approximately ARS100 million to the previous year an increase of 26.2% and 39.4% respectively. I'm sorry, ARS648 million is for the shopping segment and ARS100 million is the deduct for the office and that was increasing of 26% on the shopping and 39.4% on the office segment. The net income for the quarter reaches ARS1934 million compared to a gain of ARS779.6 million last year mainly explained by the higher results for the changes in the fair value of the investment properties. On Page four, we can see the…

Thank you, Alejandro. Good morning everybody. So if we go to Page 14, we can see a summary of our financial results. So starting with the rental segment, the adjusted EBITDA increased by 26%. So we are happy, we are growing more on inflation achieving ARS754 million in the first quarter. This is the Argentina Business Center. Sales and developments, we only had a few sales during the quarter regarding the routine process in front of Alto Palermo Shopping Center will receive some units on the Baicom plot of land. So limited results here than some costs that we allocate to this segment. Also the financial and corporate expenses, here is basically all our corporate structure that we allocate to the segment. So we have ARS72 million negative, again ARS65 million of the last quarter. Going to Page 15, we can see the impact of the Israeli Business Center. So here we included both figures, adjusted EBITDA and net income and you can see a positive revolution in all the ratios and figures of all the operating subsidiaries. So real estate is growing, supermarket and telecommunication all are growing both in the adjusted EBITDA and the net income. When you include the corporate structure of IDB, all the date of IDB and DIC structure. And this quarter we have a negative impact, because of restructuring that we did under DIC level that we issue new bond and we extend tenure of the bond that generate a negative impact that I would explain in the next two slides. So when you go to Page 16 considering all the facts of Argentina and Israel. There gross profit of the Company increased by 19% achieving ARS6,486 million. Then we have positive source on the fair value of investment properties 44% increased compared with…

Thank you. The floor is now open for question. [Operator Instructions] The first question will come from Alvaro Garcia of BTG. Please go ahead.

Hi Alejandro, Matias thanks for taking the call. Just one quick question regarding your commentary on IDBD in the release. The question is, how should we think about Israel’s ownership in IDBD going forward? Is it something that you would want to consolidated at a 100% in a very short-term or is it something that you would want to sort of sit on, on your third ownership stake over the medium-term? Thank you.

Thank you Alvaro. When we wrote the contract before the year in our financial stake and in June, we include that sentence that said that we may increase our stake in IDB. So the reason why we included that segment is because we today have an option to acquire around 14% of the shares of IDB. Remember that at the moment we used to have a partnership when we entered in Israel 50/50 and then there was a buyback option - buy and sell option that we exercised. And finally, IFISA acquired that stake was around October or July 2015. At that moment, IFISA granted an option to IRSA to acquire those shares at the same price that IFISA acquired plus an interest rate of 8.5%. So that option expired in February 2018. So by February, we should decide, if we will exercise or not that option. But if we exercise, we will increase our stake in IDB. So that is why we included that sentence. So if we do something, we will do it from now until February. So that is the reason why we…

That’s clear. That’s very helpful.

And in terms of cash, that part of the option. Remember that at the same time, IRSA granted a loan to IFISA. So if we exercise the option that is cash less transaction, because we will exercise the option, but at the same time, we will receive the cash. So that won’t represent an increase in the cash for that portion. Then IFISA has another portion around another 18% of the shares of IDB. Remember that today, we control 68% and IFISA almost 32%. So for the other portion, if we decide to acquire, then we will represent some cash, but for the option, not.

Yes. I guess Matias my question was that 18% that sort of second portion that will be remaining, is that something that you would want to take on sooner rather than later or something that you are not very let’s say active about and you would be okay with not controlling that over the longer term?

Alvaro we haven't decided that yet. So I can't comment on that, but the fact is that we have the right and the option to acquire a portion of that. So that is something that we need to decide prior to February.

Perfect, that's a very clear answer. Thank you Matias.

You are welcome.

[Operator Instructions]

So if there are no more questions. We can close the quarter, expecting the momentum of Argentina is the rental segment and the momentum on the rental in Israel too. So good financial and being able to raise capital in a different vehicle. So we thank everybody for the conference of today and we have the next one on the second quarter of 2018. Thank you very much. And have a very good day.

Thank you. This concludes today's presentation. You may disconnect your lines at this time. Have a nice day.