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1Page© 2017 CRESUD. All rights reserved.1
CRESUD & IRSA Investor Day New York City – November 2nd, 2018
2Page© 2017 CRESUD. All rights reserved.
Disclaimer
• This presentation includes general and financial information regarding IDB/ DIC and/or companies held by it (together the
“IDB/DIC Group”), including financial information relevant for Q2-2018, and immediate reports submitted by IDB/ DIC Group to
the Tel Aviv Stock Exchange.
• It is noted that this presentation may include projections, valuations, perspectives and certain other forward-looking statements
and information. Such forward-looking information is based on IDB/ DIC Group's current analysis and valuations, according to the
information known to it. Such projections, valuations, perspectives and other forward-looking statements, and are subject to
changes.
• It should be noted that the information contained herein should not be construed as an offer to buy or sell securities of the IDB
Group, nor an invitation to receive such offers, and is designed, as aforesaid, for the provision of information only.
3Page© 2017 CRESUD. All rights reserved.
Israel’s Macro Economic Key Figures
4Page© 2017 CRESUD. All rights reserved.
Top country in terms of GDP/capita and Doing business Ranking
GDP per-capita in 2017(thousands of USD)
80,8
59,5
44,2
41,2
39,7
31,6
28,2
20,6
Switzerland
US
Germany
Israel
France
Italy
Spain
Portugal
Source: IMF Source: Doing Business Ranking 2017 (World Bank)
Doing business Ranking index 2017(1: Easy– 200: Difficult)
190
188
117
108
94
82
78
60
59
58
55
54
34
33
31
29
28
20
14
7
6
2
1
Somalia
Venezuela
Argentina
Paraguay
Uruguay
Sudáfrica
China
Turquía
Colombia
Perú
Chile
Israel
Japón
Suiza
Francia
Portugal
España
Alemania
Australia
Reino Unido
US
Singapur
Nueva Zelandia
5Page© 2017 CRESUD. All rights reserved.
40% 41% 42% 42% 46% 51% 51% 57% 61% 61% 64% 68% 73% 74% 78% 87% 90% 98% 99% 103%105%126%131%
176%
253%
-30%
20%
70%
120%
170%
220%
270%
40% 41% 42% 42% 46%46% 51%51% 51%51% 5757%% 61% 61% 64% 68% 7373%% 7474%% 7878%% 8787%% 9090%% 98%98% 9999%% 103103%%105%105%126%131%
176%
253%253%
-3-30%0%
20%
70%
120%
170%
220%
270%
6,2%
3,0%
1,5%
5,5%5,2%
2,2%
4,2%
3,5%
2,6%
4,0%
3,3% 3,4% 3,5%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F 2019F
Stable growth of the economy while keeping low leverage
Israel GDP Growth2018 & 2019F
SOURCE: Bank of Israel
OECD – Debt/ GDP
6Page© 2017 CRESUD. All rights reserved.
107,7
80
85
90
95
100
105
110
115
120
125
130
Israel 12 per. media móvil (Israel)
Stable growth of the economy, resilient consumers and low unemployment
Unemployment Rates %Yearly Figures
SOURCES: BNHP Economics Department, Bloomberg
Consumer ConfidenceJanuary 2007 = 100
SOURCE: Bank of Israel
7%
4%
4%
5%
6%
7%
8%Unemployment
7Page© 2017 CRESUD. All rights reserved.
1,5%
2,5%
3,5%
4,5%
5,5%
6,5%
3.7
3
3,5
4
4,5
5
5,5
6
10/2000 10/2002 10/2004 10/2006 10/2008 10/2010 10/2012 10/2014 10/2016 10/2018
Low inflation risks, real exchange appreciation and low cost of financing
Israeli Bond Yields (10 Years)
2,7%
2,2%
1,6%1,8%
-0,2%
-1,0%
-0,2%
0,4%0,7%
2010 2011 2012 2013 2014 2015 2016 2017 2018F
Annual CPI rate of change
SOURCE: CBS SOURCE: Bank of Israel
SOURCE: Bloomberg
Exchange rate against the dollar
Rating Agency 2008 2018
Standard & Poor's A AA-
Moody's A2 A1
Fitch A- A+
8Page© 2017 CRESUD. All rights reserved.
IDB’s & DIC’s portfolio
9Page© 2017 CRESUD. All rights reserved.
100.0% 78.15%
98.7%
Dolphin*
Current Corporate Structure
* There is a non recourse intercompany loan between Dolphin (borrower) and IDB (lender) due to the transference of DIC shares. This loan is guaranteed with ~116 .4 (76.5%).
43.1%100% 29.81%**18.1% 68.8% 64.4% 50.3% 33.5%
IDBG
50.0% 45.4% 51.7% 100%
50.0%
Energy Tourism InsuranceFinancial
InvestmentsTelecommunications Real Estate Technology Supermarket
Agriculture Rental PropertiesShopping center and
offices in Las VegasRetail & Logistics
Steady Growing Businesses
Opportunity & Challenging Businesses
**IDB engaged into swaps transaction on additional 25% of Clal shares.
10Page© 2017 CRESUD. All rights reserved.
PBC & Gav Yam: Leading real estate companies in Israel
Main tenants
1,160,000 sqmin Israel
97%occupancy
670,000 sqmLand reserve
142,000 sqmin USA
HSBC building (Manhattan) Tivoli (Las Vengas)
11Page© 2017 CRESUD. All rights reserved.
Steady growing: PBC Group Leading Real Estate Company In Israel
üOperates in several real estate segments:
•Office and logistic centers in Israel –sqm 1.2million.
•Office USA – owns of HSBC tower in Manhattan.
•Residential developer.
•Shopping centers: Israel & Las vegas.
üGrowth:
•NOI:NIS 705 MM (2018) vs NIS 564 MM (2014).
•GLA: sqm 1.2 million (Q2 2018) vs. sqm 1.0 million (2014).
üHSBC Tower:
• purchase* USD 350 MM (2009) vs USD 920** MM (Q2
2018).
•NOI run rate USD 48 MM.
•Occupancy 100%.*50% purchased in 2009 additional 50% purchased from a related party in 2011.
**book value as of 30.6.2018
11Page
Revenues (NIS MM)
300
400
500
600
700
800
900
2010 2011 2012 2013 2014 2015 2016 2017 2018
70%
HSBC Tower, Manhattan
USD/ILS 3.704 as of 30/10/2018
12Page© 2017 CRESUD. All rights reserved.
Steady growing: Gav Yam - Market Leader
üBusiness focus - Tech Industry:
üTop tier tenants.
üShare price yield 124% over the last 5 years.
üSteady Growth while deleveraging:
•EBITDA:NIS 406 MM (2018) vs NIS 328 MM (2014).
•GLA: sqm 899 k (Q2 2018) vs. sqm 808 k (2014).
•Credit rating: ilAA (2018) vs il A+ (2014).
üOpportunities:
•Assets under development: sqm 194 k.
•Future development : sqm 618 k.
Top Tier Tenants
GLA (thousand sqm)
500
600
700
800
900
1.000
1.100
2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 Q1 2021
e
46%
USD/ILS 3.704 as of 30/10/2018
13Page© 2017 CRESUD. All rights reserved.
Gav Yam: Leading commercial real estate company in Israel
REHOVOT NEGEVMATAM-YAM
TOHA
8 Projects under development, planning & marketing
194,000 sqm
The New Haifa Bay – Logistic Center
14Page© 2017 CRESUD. All rights reserved.
3,0%4,0%
6,0%
9,0%
11,5%
13,5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2013 2014 2015 2016 2017 Q1-Q2
2018
Steady growing : Shufersal Israel’s Largest Retailer
üLargest retailer in Israel - market cap NIS 5.5 billion.
üHolds a real estate portfolio of ~ NIS 3 billion
üShare price yield 36 months – 136%.
üOperational efficiency:
•NIS 400 MM investment in Shoham logistic center.
• EBIT margin 2.5%(2015) vs. 4.4% (Q2 2018)
üStratigic Investments for current and future growth:
•Pharm: acquisition of New Pharm
•Online: logictic centers.
•Private lable: 24% of revenues.
•Shufersal buisness- cash and carry.
•Finance.
•Distribution – American outlets.
Online Sales - % of Total SalesOnline Sales - % of Total Sales
USD/ILS 3.704 as of 30/10/2018
15Page© 2017 CRESUD. All rights reserved.
Opportunity & Challenging: Cellcom Largest Cellular Provider
üIsrael’s largest cellular provider – 2.8 million subscribers.
üCompetition:
•Operates in competitive environment -5 cellular providers.
•Cellular :ARPU NIS 51.8 vs ~ NIS 163 in the US.
üTransition from cellular company to communication Group:
ü Offers bundle package that includes Cellular, TV,
Telephone & Internet.
üInvestment:
•Fiber.
•TV
üOpportunities:
• Infrastructure(fiber & 5G).
•Operational efficiency.
•Lower competition.
20
63
111
170
195
0
20
40
60
80
100
120
140
160
180
200
2014 2015 2016 2017 Q2 2018
Cellcom TV subscribers (thousand)
up:
USD/ILS 3.704 as of 30/10/2018
16Page© 2017 CRESUD. All rights reserved.
-309-266
-335
-248
265
-400
-300
-200
-100
0
100
200
300
Opportunity & Challenging :Clal Insurance
üOne of the largest insurance companies in Israel.
üAssets under management (AUM) over NIS 195
billion.
üMarket cap NIS 3.4 billion 68% on its book value.
üOpportunities and challenges:
• Interest rate: accumulated lost due to low interest
rate NIS 877 MM.
•New management.
•Solvency II.
•Dividend policy.
•Operational efficiency.
•Technology.
Market Cap vs. Book Value
1.000
2.000
3.000
4.000
5.000
6.000
7.000
Equity Market cap
Low Interest effect on Clal income
(NIS MM)
2014 2015 2016 2017 Q1-Q2 2018
NIS -877 MM
USD/ILS 3.704 as of 30/10/2018
17Page© 2017 CRESUD. All rights reserved.
IDB/DIC Main Financial Moves, outcomes, challenges & opportunities
18Page© 2017 CRESUD. All rights reserved.
Assets sales at attractive values, above market expectations
ADAMA: Leading agrochemical company (2016)
ü DIC sold it’s 40% stake in Adamato ChemChina
ü Price: USD 230 million in excess ofloan assignment of USD 1.17 billion
ü Transaction completed onNovember 2016.
ü DIC’s profit NIS 981 million.
40% 60%
Real Estate Assets for NIS 400 million (2017)( )
2017 CRESUD. All rights reserved.
Residential Developments in
India
Hilton Hotels
(London – Cardiff – Birminghan)
Shufersal Stake (2018)
ü DIC sold a 16.6% stake in Shufersalfor NIS 854 million.
ü Reducing Stake & accountingdeconsolidation
ü Gain recognition IVQ 18: ARS 8.5billion.
ü DIC’s profit NIS 1,232 million.
Stake reduced from
50.1% to 33.5%
USD/ILS 3.704 as of 30/10/2018
19Page© 2017 CRESUD. All rights reserved.
Centralization Law
üFinance- Real :
• separation between significant real and significant finance corporations.
üPyramid Structure:
•Maximum 2 layers.
•Current Structure:DIC
Gav Yam MehadrinIspro
PBC
I.
II.
III.
20Page© 2017 CRESUD. All rights reserved.
IDBD & DIC NAV As 31/10/2018
NIS MM Share Market
value
Holding
Value
Book
Value
Clal Insurance 29.8% 3,434 1,024 1,504
Clal swaps 25% 37 436***
Loan to
Dolphin100% 1,197 1,197 2,049**
IDB Tourism 100% 179 179
IDBG 50% 204 204
Modi’in 18.1% 139 25 25
Others 39 39
Total assets 2,705 4,436
Net debt(22.08.2018)* (2,215) (2,215)
NAV 490 2,221
NIS MM Share Market value Holding
Value
Shufersal 33.6% 5,584 1,874
Cellcom 43.1% 2,692 1,161
PBC 64.4% 1,681 1,083
Elron 50.3% 360 181
Epsilon 68.8% 69
Others 112
Total assets 4,478
Net debt(22.08.2018) (2,538)
NAV 1,940
LTV 57%
Book value as of 30.6.18 2,679
Liquidity as of 22.8.2018:
IDB: NIS 1,008 MM
DIC: NIS 2,439 MM
*based on Clal book value as of 30.6.18
**based on DIC book value as of 30.6.18 – 76.5%
***Based on Clal book value per share as the closing price of the swaps transactions
USD/ILS 3.704 as of 30/10/2018
21Page© 2017 CRESUD. All rights reserved.
Thank You