Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA, and I welcome you to the Second Quarter 2023 Results Conference Call. First of all, I would like to remind you that both audio and slide show may be accessed through company's Investor Relations website at www.irsa.com.ar by clicking on the banner webcast link. The following presentation and the earnings release are also available for download on the Company website. After management remarks, there will be a question-and-answer session for analysts and investors. If you want to make a question, please click the bottom labeled, raise hand or use the tap. 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.

To start, I would like to summarize the main events of the period of the second quarter of 2023 and subsequent events. The Company closes a very good quarter with a strong financial and operational figures, shopping malls kept growing in terms of sales, visitors and margins despite the December that was partially affected by the World Cup. But then January and February, we are seeing very good figures in whole, relevant events that after the closing of the period, we reached 100% occupancy in our office -- in our latest development [indiscernible] in Catalinas. Remember that we opened a building in the middle of the pandemic. We sold approximately half of the building at very big prices, and now what we have is approximately 48% stake in the building is fully leased. The third rental segment, hotels are booming. They are showing record occupancy and EBITDA, mainly Llao Llao that we have seen in the last quarter, a very strong recovery in Buenos Aires hotels, that's the corporate events and the international inflows of tourism is growing in Argentina. So., the three segments are very good. Of course, in offices, we are showing a little lower results because of the assets sold during the last year. On the financial matter, we -- after the closing, IRSA issued Series XV and XVI notes for a total amount of $90 million to cancel short-term liabilities. And the Company redeemed Series II and IX and kept deleveraging the Company that today shows a net debt that is very, very low and very, very, very conservative capital structure and debt ratios. On November last year, November 22, IRSA dividend of ARS4.3 billion, this was a dividend yield of 4.5%. And also, we've seen a share price recovery in the second quarter. We are…

Thank you, Santiago. Good morning, everybody. So, to understand our financial results during the semester, first, it's important to see what happened with inflation and devaluation. In the center of the graph, we can see that the inflation during the semester was 43% and the valuation was 41%, means that the real FX evolution was an appreciation of the peso of 1%. And during the last year, the inflation was 20% and the valuation was 7%. That means that the real appreciation was 11%. On the blue chip swap and the dollar map, the devaluation was 31%. So we have an appreciation of 8%. And during the last year was almost flat 1%. Remember that our liabilities expressed in dollars if we have an appreciation of the pesos generate gains and the assets that we have in dollar terms if we have an appreciation to generate losses. That will explain part of the results of the semester. Going to next page, we can see what happened with our adjusted EBITDA. We have excellent results during the semester. We can see shopping malls growing by 50%. Hotels growing by 150%, and office is decreasing 14% mainly because of the asset disposals that we did during the year. We are very happy with the performance. We can see part of the work that we did before or during the pandemic that is generating now results and is expressed in the increase in margins. You can see the shopping malls with a much better margin than the last year, 78.6% and 70.7% last year. In the office, the same, 81.2% compared with 65.7% and the hotels as well as 34.7% against 25.8% during the last year. If we jump to the next page, the evolution of the operating income, excluding the effect in…

Thank you. Now, it's the time for Q&A session. If you have a question, please use the chat or raise hands, I remind you that questions will be taken in the order we will receive them. Please proceed. Thank you. The first question comes from Luciano Boselli, if the $50 million quarterly EBITDA level is a sustainable one?

Thank you, Luciano. Well, this will depend in different variables. I think regarding the operation, we are seeing a good trend, good levels of sales from our tenants. So, our budget is in line with last quarter. So, the answer is yes then will depend also on the evolution of the FX, right? If there is -- the trend is similar in the recent events. I believe that, that won't affect the EBITDA in dollar terms, but if we have a bigger devaluation than the immediate effect of that is a reduction in dollar terms, basically in the malls, in the offices. I mean the hotels since the tariff is more related to dollars won't have an effect, but in the malls, yes. But our budget, I will say, that is in line on the previous one.

Next question comes from [indiscernible]. In order to pay to hold outs due to access to official FX markets?

Yes. All the cancellations that we did during the last years were all done at the official FX fulfill in the regulation with the Central Bank. There is restrictions that the rule established that we -- the Company has to refinance 60% of the principal amount and 40% we are allowed to pay. Last year, when we did the negotiation with the Central Bank in order to do the exchange in advance, we had access at that moment to pay only up to 30% of the principal amount and the remaining we have to refinance. And at that moment, we created a structure to give two bonds, in one bond, the people receive cash and the other bonds just received only bonds. So that way, we maximize the cash of the people that wanted cash. But the good news is that after the last redemptions that we did, today, we don't have any more or any restrictions with our debt. The principal amount that would expire in the hard-dollar notes will expire in the next year. So, we hope that will be a different regime regarding the cancellations at that moment. But for the near future, we don't have any more -- any restrictions to serve our debt.

Give more details on the sales and development during the quarter. Well, EBITDA from the quarter from sales on six months were just $11.1 million, so together with a rental of 87.3, reached an adjusted EBITDA -- were some losses from others, that you get to almost $80 million EBITDA comparing to last year that was much higher because we had sales for almost $100 million or $95 million that we did more asset sales.

Next question comes from [indiscernible]. In other operating results in the first half of 2023 consolidated statements of income, the recent operating expense for legal matters for ARS3.7 billion. Could you give us more details?

Yes. This is related to a claim that we have regarding our investment in Israel. There is a claim that we receive a demand a couple of weeks ago in Argentina. I mean that -- is a contingency for up to ILS140 million. The Company decided to create a provision of 50% of that no matter our legal advisers will -- and all the legal work that we will present to defend ourselves, we decided to make these provisions to be conservative.

Next question comes from [indiscernible] from Latin Securities. Can you provide an update on the Company's plans for its office portfolio, including any future changes that are being considered? Also, could you give us an update on the current status of the Costa Urbana development? I mean when we can expect to hear more news on that front? I will introduce for this question, at least for the part of question Jorge Cruces, our CIO. So Jorge, can you give us more color on the Costa Urbana development? And what can we expect to be more news on that front?

Good morning, everybody. First of all, regarding the office space, we have a great land next to the -- our shopping mall that we're still analyzing. There's going to be a mixed use. It's going to be residential, but there's going to be office space there also. I can recall that we do have and that building, right, and near to the shopping mall, and we should have more square meters during the near future. And regarding Costa Urbana, there's -- first of all, we have on approval from the project a preliminary design and is completed as well as the Company's and utilities that we're working with the engineers at the moment. The only thing we don't have yet, we're working on it is the electricity. The rest of the utilities, we have all the utilities right at the moment. And Costa Urbana is we -- as somebody know, we have a legal situation going at the moment. There's been a rule in favor of the city of Buenos Aires, and that's our same position that was on February 8. And we're waiting for the ruling from the court. So that's good news, and we continue working as a result.

Thank you, Jorge. I will give one minute more for any additional question that you may have. Okay. If there are no more questions, we conclude the presentation and the Q&A session. I will return back to Mr. Matias Gaivironsky, CFO, for his closing remarks.

Thank you, Santiago. I see here one more question before the closing remarks regarding the short-term debt that is related to amortizations for $99 million. This is more short-term debt. You can see that the cash position of the Company today is more than $160 million, and we have $99 million in short-term debt. This is more a liquidity management for the cancellations. When we show this $99 million is a pro forma numbers on February. So what we believe is more a liquidity management. So using our draft to cancel instead of our own liquidity, but in the near future, that will be different. So we will cancel that $99 million or most part of that. So, to finish the presentation, first, thank you for the participation, we are very happy with the results. The Company is generating good results in all the business lines. We clear during the last year all the liquidity risk and the short-term debt was canceled. So, now we are very well prepared for a new cycle of more growing and we have plenty of projects to launch in the near future. And the cash generation in each of the business lines is very good. So we are ready to keep growing. So we hope to see announcements in the short term. Thank you very much, and have a good day.