Good morning, everyone. And welcome to IRSA's Fourth Quarter 2018 Results Conference Call. Today's live webcast, both audio and slide show, maybe accessed through Company's Investor Relations Web site at www.irsa.com.ar by clicking on the banner webcast/link. The following presentation and the earnings release issued yesterday are also available for download on the Company Web site. 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 the 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. At this time, I now would like to turn the call over to Mr. Alejandro Elsztain, Second Vice President. Please go ahead, sir.

Thank you very much. Good morning, everybody. We are now beginning our conference call of the closing of the whole fiscal year 2018. We can begin on the Page number 2, speaking about the financial statements that we are closing. The net income for the whole year, we have reached ARS21 billion that is more than 300% comparing to last year numbers, and the part attributable to IRSA was ARS16 billion comparing to ARS3 billion last year. The adjusted EBITDA, we reached ARS9.3 billion comparing to last year was at 32% higher. When we divide Argentina business center, we can see a gain of ARS14.6 billion and that is mainly explained by its higher rental results and higher results from sales in fair value of investment properties, this gain in peso. From other side, we had bigger comparing to last year financial losses and we have impairment on the Lipstick value. In the case of Israel, we bring a gain of ARS6.7 billion and this is mainly explained by few big things we are going to see later the operational results but some is related to Shufersal stake. We sold a portion of this company and we begun to non-consolidate that and the take of that valuation maybe begin for IRSA, some of that gain was partially offset by the exchange of DIC debt that we did a few months ago and in other quarters, and another thing that gave was fair value of some financial assets and a decrease of the share of Clal that was last quarter, but now without a gain but it's not reflected in our balance sheet. So there was a loss in Clal shares and we are replacing in the delay that we use the three month delay in this balance sheet. Related to Israel too, we had in this IDB sold again 5% of the Clal shares but remember that we are close to 35% third quarter so we sold another 5% recently, so the stake reduced to 29.8%. And in the case of Shufersal, the sale of this 16.6% of the shares made us to raise capital to DIC of ILS853 million. So DIC is very strong in fact after the sale of that, so there is one accounting issue that is the changing of the method, but there is a financial issue that we raised almost ILS850 million for DIC for two other operators. Related to Argentina, the rental was very good and Daniel will explain how good it's comparing to last year and occupation is still in three segments. So now I will introduce Mr. Daniel Elsztain.

Thank you, Alejandro. Good morning, everybody. On Page number 3, we can see our main event for this fiscal year of 2018 at the IRSA commercial property level. Starting first with the operating figures, we see that the sales in shopping centers grew 25.3% compared to the previous fiscal year and occupancy remain very high at levels of 98.5%. The average rent on the office portfolio decreased a little bit, now with $26.1 product per square meter per month. This is net, we’re taking -- I mean all the costs are excluded from this the cost of operation is excluded from this number. And the occupancy was reduced with 92.3% and this is mainly explained by the incorporation of the building in our portfolio. We did smaller rent and also with smaller occupancy occupation. The occupied IR on that building is 69.10% and this is how we acquire. We are working to take the occupation at the level of the other business that we have in the portfolio. In the CapEx side of what we did on this year, we acquired a plot of land in La Plata, which is the fifth largest city in -- and it's in the province of Buenos Aires, the fifth largest city of the country in terms of population, and there are no shopping center and no commercial area, like the shopping center in the city. We paid for this land $7.5 million and this is going to be a mixed use prospect of approximately 100,000 square meters. We’re working with the City of La Plata to get approvals and it's a fantastic land, it’s a fantastic location. We also acquired -- after the closing of this fiscal year, it happened in July. We acquired Maltería Hudson property, this is also a very nice…

Going to Page number 8, speaking about Banco Hipotecario. The main event for the year, the result of that, generated a gain for the whole year of ARS620 million comparing to ARS83 million last year so it's much better result. And mainly explain because of the operational improvement and increasing present value of its financial assets. And two other things that the company did this further in this year, pay divided ARS200 million and EBITDA received almost ARS60 million in April of this year. And on other hand, the company approved the capital increase of 900 million shares, representing 60% of current stock capital and this is to finance future growth. And the company is waiting for the regulatory approvals and better market conditions. And we can see in the right the market conditions on the banking industry make the shares of the company go down, a big decrease and we can see how it today both represent 30% ownership at IRSA brand of the Banco Hipotecario shares. We can move to Page number 9 and we can see the main events about IDB and DIC in Israel, main achievements of the year, risk reduction and I think the improved liquidity in the cash flow of the two made our part of that using what we spoke about the sale of the Shufersal stake that gave us a lot of liquidity, makes much more comfortable this situation, the financial situation of the two. The decrease on the leverage in IDB went from 80% to 66%, it went to 80% in the case of IDB and in case of DIC went to 56%. And because of that decrease in leverage, we have a better credit agent, they're talking about that and DIC went from BB minus to BB plus stable. In…

[Operator Instructions] The first question today comes from Jorel Guilloty with Morgan Stanley. Please go ahead.

I have two questions. My first question is relating to your expectations for the consumer going forward, particularly in lines of the macro stress that Argentina has seen recently and has it accelerated. So what I was wondering, do you expect a decline in sales, going forward? Do you expect it to stay about the same that you’ve seen in the past few months? Just if you can provide some color on your expectations? Matías Gaivironsky: Yes, of course, we are looking very deeply the trend what’s going on. As of today, we didn’t see the changes but remember that every time we saw this movement in the exchange rate, immediately we started to see tourists coming to the city. So the first effect that you can see that is in the high end shopping centers, like for example, Patio Bullrich, we are seeing -- and our sales going up faster than we were expecting. And this is mainly because of tourists and also because of those people that they have the money in dollars. The value of the merchandize is cheap I mean we used to be like expensive compared to the neighbor countries and also with any international brand. And if you translate to one of those, everything looks cheap. So for those that they have the dollars in their pockets, this is a good time to spend. It is true that for the wages, the crisis not today that might look more expensive in the near future. But we think that in between the tourists and the people that it’s not going away, remember that we had thousand and billions of dollars going away the country that were spent in Miami, in Chile, in between the new tourists and those are not going away. And there will be some adjustment in salaries of course it’s going to take some time. We do not expect a big impact of course we can have some but we’re not expecting a big impact.

And then my second question is along the same, I mean -- because obviously recent macro stress has increased the cost of capital. And I was wondering if this effects in any way your expectations for future greenfield and brownfield growth going beyond what you announced on your development pipeline?

Yes, for sure that it affects and what you expect to do or not to do to increase your feeling of what to do or not to do. As you know, we have launched some of office buildings in IRSA commercial properties, one shopping center that is beginning to construct and that is Alto Palermo. And now we have the pipeline of other things and you know that we generally don’t speak after the day we begin them. But it’s true that we’re asking from a little higher return in dollar terms with the new launch. So what we are finishing we’re doing the next we are going to announce, we are asking for a little higher return.

And then one more question if I may. I was wondering if you can provide some color on the concession for Buenos Aires to sign. That expires soon, correct?

Yes, the concession expires on November ’18 of this year. We are supposed to give it back to the city in three months after, so we are working. We did all the things on the legal side to be fully covered, to try to take tenant out of the shopping center. It’s not as easy as it is in some other places here to take tenants out. But we did everything that we have in our hands to do on the legal side. So we are working on that process. Some of them, they are already leaving the center and some of them are trying to leave before that expiration day. Remember that the EBITDA of this shopping center is very little to our number, this is 1% less. But it's taking us a lot of work, because we are taking out the tenants. We are preparing also the shopping center to give it in the right conditions to the city. But what we do not know as of today is what the city is going to do with this property, because they're going to have to do something. And it's going to be something that it's in our line of business. We might be looking at it very deeply but with the interest of maybe to continue to do something in that location. In terms of delinquency, I mean we are showing these numbers some -- a little deterioration on the numbers and what's part of the IRSA commercial properties call, and it's mainly explained because of that. We don’t see any deterioration and delinquency in the other shopping basically. It was more related to the shopping center Buenos Aires designed. But we're working with tenant, so we think we are going to collect the money eventually. And the other aspect that we can mention here is that we have also situation with person of the ownership of this shopping center of this entity belongs to a company that -- they acquired from Banco Provincial, S.A. It's a company that really looked, it's in bankruptcy. So we have trustees from the bankruptcy in the company overlooking and making decisions along with that in this process.

Your next question comes from Alvaro Garcia with BTG. Please go ahead.

My question is on Israel. On the concentration, particularly you mentioned in your comments that next year we'll have to break another layer. So I was wondering if maybe you could walk us through what the corporate structure might look like and what the plan is to appeal the regulators in light of this concentration law? Thank you.

So the concentration law established that you can't control more than two layers of public companies in Israel. So it used to be that or last year the restriction was to not control more than three, so we were using one last year. And the structure is that the first is DIC, the second layer that we have is PBC and the third layer that we have is Gav-Yam and Marion. So from those companies, we need to establish some structure to use the controls of how we structure control on those companies. That means that we can do any transactions, corporate restructuring, mergers, acquisitions, spin-off. So it is not clear yet what we're going to do and probably we won't announce in advance what we're going to do. We will -- at the moment that we decide the structure, we will execute like what we did last year. But it could include any transaction to reduce one layer so there are plenty of different alternatives. So I can’t more than that at this stage.

And just I guess to double check on this one issue that there is no possibility that IRSA would directly, let's say, buy PBC for example. It would all be within the Israeli business structure?

According to the concentration law, it's one of the alternatives. But I can’t comment more on that what -- the path that we will follow. It's much more likely that you will see a solution coming directly from Israel.

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

Just for finishing our annual report, we are happy on the results, the combination of the real estate of Argentina, the real estate global the activities and there are not good stories there what’s happen to the Argentina economy but the companies are in a very good shape. So we expect a new year and a lot of development and in every region, completing the buildings and the construction and keeping the things and deliver the things we need to deliver it. So we expect a very good 2018-2019. So thank you very much 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.