20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
	Date of event requiring this shell company report ___

Commission file number 001-13542

IRSA Inversiones y Representaciones Sociedad Anónima

(Exact name of Registrant as specified in its charter)

IRSA Investments and Representations Inc.

(Translation of Registrant’s name into English)

Republic of Argentina

(Jurisdiction of incorporation or organization)

Carlos M. Della Paolera 261, 9th Floor (C1001ADA)

City of Buenos Aires, Argentina

(Address of principal executive offices)

Matías Iván Gaivironsky, Chief Financial and Administrative Officer

Tel.: +54(11) 4323-7449- ir@irsa.com.ar

Carlos M. Della Paolera 261, 9th Floor, (C1001ADA) - City of Buenos Aires, Argentina

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12 (b) of the Act.

Title of each class	Trading Symbol	Name of each exchange on which registered
Global Depositary Shares, each representing ten shares of Common Stock	IRS	New York Stock Exchange
Common Stock, par value ARS 1.00 per share		New York Stock Exchange*

* Not for trading, but only in connection with the registration of Global Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.

Securities registered or to be registered pursuant to Section 12 (g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15 (d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the Annual Report: 810,879,553.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: ☐ Yes     ☒ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934. ☒ Yes     ☐ No

Note:  Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: ☒ Yes     ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Emerging growth company	☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board included in this filing:☒ Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17 ☐     Item 18 ☐

If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

☐ Yes     ☒ No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court. Yes ☐     No ☐

Please send copies of notices and communications from the Securities and Exchange Commission to:

Carolina Zang	Jaime Mercado Juan M. Naveira
Zang Bergel & Viñes Abogados	Simpson Thacher & Bartlett LLP
Florida 537, 18th Floor C1005AAK City of Buenos Aires Argentina	425 Lexington Avenue New York, NY 10017 United States of America

TABLE OF CONTENTS

	Page
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS	3
AVAILABLE INFORMATION	4
PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION	4
Part I	8
ITEM 1. Identity of Directors, Senior Management, Advisers and Auditors	8
ITEM 2. Offer Statistics and Expected Timetable	8
ITEM 3. Key Information	8
A. Reserved	8
A.1. Local Exchange Market and Exchange Rates	8
B. Capitalization and Indebtedness	8
C. Reasons for the Offer and Use of Proceeds	8
D. Risk Factors	9
ITEM 4. Information on the Company	47
A. History and Development of the Company	47
B. Business Overview	55
C. Organizational Structure	109
D. Property, Plant and Equipment	110
ITEM 4A. Unresolved staff comments	111
ITEM 5. Operating and Financial Review and Prospects	111
A. Operating Results	111
B. Liquidity and Capital Resources	138
C. Research and Development, Patents and Licenses, Etc.	146
D. Trend Information	146
E. Critical Accounting Estimates	148
ITEM 6. Directors, Senior Management and Employees	149
A. Directors and Senior Management	149
B. Compensation	156
C. Board Practices	158
D. Employees	158
E. Share Ownership	159
ITEM 7. Major Shareholders and Related Party Transactions	160
A. Major Shareholders	160
B. Related Party Transactions	162
C. Interests of Experts and Counsel	164
ITEM 8. Financial Information	165
A. Consolidated Statements and Other Financial Information	165
B. Significant Changes	172
ITEM 9. The Offer and Listing	172
A. Offer and Listing Details	172
B. Plan of Distribution	173
C. Markets	173
D. Selling Shareholders	176
E. Dilution	176
F. Expenses of the Issue	176
ITEM 10. Additional Information	176
A. Share Capital	176
B. Memorandum and Articles of Association	176
C. Material Contracts	183
D. Exchange Controls	183
E. Money Laundering	187
F. Taxation	189
G. Dividends and Paying Agents	197

1

H. Statement by Experts	197
I. Documents on display	198
J. Subsidiary Information	198
ITEM 11. Quantitative and Qualitative Disclosures About Market Risk	198
ITEM 12. Description of Securities Other than Equity Securities	198
A. Debt Securities	198
B. Warrants and Rights	198
C. Other Securities	198
D. American Depositary Shares	199
Part II	199
ITEM 13. Defaults, Dividend Arrearages and Delinquencies	199
ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds	199
A. Fair Price Provision	201
B. This section is not applicable	201
C. This section is not applicable	201
D. This section is not applicable	201
E. This section is not applicable	201
ITEM 15. Controls and procedures	201
A. Disclosure Controls and Procedures	201
B. Management’s Annual Report on Internal Control Over Financial Reporting	201
C. Attestation Report of the Registered Public Accounting Firm	202
D. Changes in Internal Control Over Financial Reporting	202
ITEM 16. Reserved	202
A. Audit Committee Financial Expert	202
B. Code of Ethics	202
C. Principal Accountant Fees and Services	202
D. Exemption from the Listing Standards for Audit Committees	203
E. Purchase of Equity Securities by the Issuer and its Affiliates	203
F. Change in Registrant’s Certifying Accountant	204
G. Corporate Governance	204
H. Mine Safety Disclosures	206
I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	206
Part III	207
ITEM 17. Financial Statements	207
ITEM 18. Financial Statements	207
ITEM 19. Exhibit	207

2

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report contains and incorporates by reference statements that constitute estimates and forward-looking statements. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “should,” “plans,” “expects,” “predicts,” “potential,” “seek” and similar words or phrases, or the negative of these terms or other similar expressions, are intended to identify estimates and forward-looking statements. Some of these statements include statements regarding our current intent, belief or expectations. While we consider these expectations and assumptions to be reasonable, forward-looking statements are subject to various risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. Forward-looking statements are not guarantees of future performance. Actual results may be substantially different from the expectations described in the forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

We have based these forward-looking statements on current expectations and assumptions about future events. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. The risks and uncertainties that may affect our forward-looking statements include, among others, the following:

· changes in general economic, financial, business, political, legal, social or other conditions in Argentina and Latin America or changes in developed markets or emerging markets or both;

· changes in capital markets in general that may affect policies or attitudes toward lending to or investing in Argentina or Argentine companies, including volatility in domestic and international financial markets;

· inflation and deflation;

· ongoing economic impacts of the COVID-19 pandemic on the Argentine economy, and the related impacts on our business and financial condition;

· measures adopted by the Argentine government in response to the COVID-19 pandemic and other infectious diseases;

· impact of the COVID-19 pandemic and the spread of other infectious diseases on our business;

· fluctuations in the exchanges rates of the Peso and in the prevailing interest rates in Argentina;

· increases in financing costs or our inability to obtain additional financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities;

· current and future Argentine government regulation and changes in law or in the interpretation by Argentine courts;

· price fluctuations in the real estate market;

· political, civil and armed conflicts;

· adverse legal or regulatory disputes or proceedings;

· fluctuations and declines in the aggregate principal amount of Argentine public debt outstanding and default on Argentina’s of sovereign debt;

3

· the impact of the new agreement with the International Monetary Fund (“IMF”) and the restructuring of Argentina’s sovereign debt with the IMF and the Paris Club;

· governmental intervention in the private sector and in the economy, including through nationalization, expropriation, labor regulation or other actions;

· restrictions on transfer of foreign currencies and other exchange controls;

· increased competition in the shopping mall sector, office or other commercial properties and related industries;

· potential loss of significant tenants at our shopping malls, offices or other commercial properties;

· our ability to take advantage of opportunities in the real estate market on a timely basis;

· restrictions on energy supply or fluctuations in prices of utilities in the Argentine market;

· our ability to meet our debt obligations;

· shifts in consumer purchasing habits and trends;

· technological changes and our potential inability to implement new technologies;

· deterioration of regional, national or global businesses and economic conditions;

· changes to applicable regulations to currency exchange or transfers;

· incidents of government corruption that adversely impact the development of our real estate projects;

· fluctuations and declines in the exchange rate of the Peso and the U.S. dollar against other currencies; and

· the risk factors discussed under “Risk Factors.”

Forward-looking statements refer only to the date of this Annual Report, and neither we undertake any obligation to update or revise any estimate or forward-looking statement due to new information, future events or otherwise. Additional factors or events affecting our business may emerge from time to time, and we cannot predict all of these factors or events, nor can we assess the future.

AVAILABLE INFORMATION

We file annual and current reports and other information with the United States Securities and Exchange Commission (“SEC”). You may obtain any report, information or other document we file electronically with the SEC at the SEC’s website (http://www.sec.gov) or at our website (http://www.irsa.com.ar). The information contained in our website does not form part of this Annual Report.

PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION

In this annual report (the “Annual Report”), references to “IRSA,” the “Company,” “we,” “us” and “our” means IRSA Inversiones y Representaciones Sociedad Anónima and its consolidated subsidiaries, unless the context otherwise requires, or where we make clear that such term refers only to IRSA and not to its subsidiaries.

The term “Argentine government” refers to the federal government of Argentina, the term “Central Bank” refers to the Banco Central de la República Argentina (the Argentine Central Bank), the terms “CNV” and “CNV Rules” refer to the Comisión Nacional de Valores (the Argentine National Securities Commission) and the rules issued by the CNV, respectively.

4

References to “GDSs” are to the Global Depositary Shares, each representing 10 shares of our common stock, issued pursuant to the deposit agreement, dated as of March 19, 1997 (the “deposit agreement”), between us, The Bank of New York, as depositary (the “GDS Depositary”), and the owners and holders of the GDSs issued from time to time thereunder, and references to “GDRs” are to the Global Depositary Receipts, which represent the GDSs.

Corporate Reorganization

On September 30, 2021, IRSA and IRSA Propiedades Comerciales S.A. (“IRSA CP”) executed a Preliminary Merger Agreement pursuant to which IRSA CP would merge into IRSA, by way of absorption by IRSA of IRSA CP, and IRSA would assume, by universal succession, all of the assets and liabilities and succeed to all of the rights and obligations of IRSA CP. On December 22, 2021, the shareholders of IRSA and IRSA CP approved the merger, whose effective date was established on July 1, 2021. On January 30, 2022, IRSA and IRSA CP executed a Definitive Merger Agreement. On May 9, 2022, we disclosed that the CNV informed us that the merger by absorption of IRSA with IRSA CP, and the dissolution without liquidation of IRSA CP was registered, with IRSA as the surviving corporation.

Financial Statements

We prepare and maintain our financial books and records in Pesos (as defined below in section “—Currency”) and in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and the CNV Rules. Our fiscal year begins on July 1 of each year and ends on June 30 of each year thereafter.

Our audited Consolidated Financial Statements as of June 30, 2022 and 2021 and for the years ended June 30, 2022, 2021 and 2020, and the notes thereto (our “Audited Consolidated Financial Statements”) are set forth on pages F-1 through F-87 of this Annual Report.

Our Audited Consolidated Financial Statements have been approved by resolution of the Board of Directors’ meeting held on October 25, 2022 and have been audited by Price Waterhouse & Co S.R.L., Argentina, member of PricewaterhouseCoopers International Limited, an independent registered public accounting firm whose report is included herein.

Deconsolidation of IDBD and DIC

On September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed, therefore, the Company lost control on that date. For comparability purposes and as required by IFRS 5, the results of the Israel Operations Center have been reclassified to discontinued operations for all the years presented.

As of the date of this Annual Report, we no longer own any capital stock of IDBD while we have an investment in DIC that amounts to 2,062,000 of shares representing 1.5% of its capital stock.

Functional and Presentation Currency; Adjustment for Inflation

Our functional and presentation currency is the Peso, and our Audited Consolidated Financial Statements included in this Annual Report are presented in Pesos.

IAS 29, Financial Reporting in Hyperinflationary Economies (“IAS 29”) requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be measured in terms of the current unit of measurement at the closing date of the financial statements, regardless of whether they are based on the historical cost method or the current cost method. This requirement also includes the comparative information of the financial statements.

5

In order to conclude that an economy is “hyperinflationary,” IAS 29 outlines a series of factors, including the existence of an accumulated inflation rate in three years that is approximately or exceeds 100%. As of July 1, 2018, Argentina reported a cumulative three-year inflation rate greater than 100% and therefore financial information published as from that date should be adjusted for inflation in accordance with IAS 29. Therefore, our Audited Consolidated Financial Statements and the financial information included in this Annual Report have been stated in terms of the measuring unit current at the end of the reporting year. For more information, see section “Financial Statements” above and Note 2.1 to our Audited Consolidated Financial Statements.

Effective July 1, 2019, we adopted IFRS 16 “Leases” which establishes the criteria for recognition and valuation of leases for lessees and lessors. The changes incorporated mainly impact the tenant’s accounting. IFRS 16 provides that the lessee recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of lease agreements according to IFRS 16. In accordance with the standard, a lease agreement is one that provides the right to control the use of an identified asset for a specific period. In order for a company to have control over the use of an identified asset: a) it must have the right to obtain substantially all the economic benefits of the identified asset and b) it must have the right to direct the use of the identified asset. The standard allows to exclude the short-term contracts (under 12 months) and those in which the underlying asset has low value. The application of IFRS 16 increased assets and liabilities and generated a decrease in operating costs for leases. On the other hand, the balance of depreciation and financial results generated by the present value of those lease liabilities were increased. This application does not imply changes in comparative information.

Additionally, effective July 1, 2019, in accordance with the amendment to IAS 28, an entity shall implement the provisions of IFRS 9 to Long-term Investments that are essentially part of the entity’s net investment in the associate or in the joint venture according to the definitions of said standard, using the modified retrospective approach. The provisions of IFRS 9 shall apply to such investments with respect to the share of the losses of an associate or a joint venture, as well as with respect to the recognition of the impairment of an investment in an associate or joint venture. In addition, when applying IFRS 9 to such long-term investments, the entity will make it prior to the adjustments made to the carrying amount of the investment in accordance with IAS 28. We opted for an accounting policy where the currency translation adjustments arising from these loans are recorded as part of other comprehensive income.

See Note 2.2 to our Audited Consolidated Financial Statements for more information about the adoption of new standards.

Currency

Unless otherwise specified or the context otherwise requires, references in this Annual Report to “Peso,” “Pesos” or “ARS” are to Argentine pesos, and references to “U.S. dollars,” “dollars” or “USD” are to United States dollars.

We have translated some of the Peso amounts contained in this Annual Report into U.S. dollars for convenience purposes only. Unless otherwise specified or the context otherwise required, the rate used to convert Peso amounts to U.S. dollars is the seller exchange rate quoted by Banco de la Nación Argentina of ARS 125.2300 per USD 1.00 as of June 30, 2022. The average seller exchange rate for fiscal year 2022, quoted by Banco de la Nación Argentina was ARS 105.3712. The seller exchange rate quoted by Banco de la Nación Argentina was ARS 154.74 per USD 1.00 as of October 24, 2022. The U.S. dollar-equivalent information presented in this Annual Report is provided solely for the convenience of the reader and should not be construed as implying that the Peso amounts represent, or could have been or could be converted into, U.S. dollars at such rates or at any other rate. See “Local Exchange Market and Exchange Rates” and “Risk Factors—Risks relating to Argentina—Continuing high rates of inflation may have an adverse effect on the economy and our business, financial condition and the results of our operations.”

6

Certain Measurements

In Argentina, the standard measure of area in the real estate market is the square meters (m2, or “sqm”), while in the United States and certain other jurisdictions the standard measure of area is the square foot (sq. ft.). All units of area shown in this Annual Report (e.g., gross leasable area of buildings (“GLA” or “gross leasable area”), and size of undeveloped land) are expressed in terms of sqm. One sqm is equal to approximately 10.8 square feet. One hectare is equal to approximately 10,000 sqm and to approximately 2.47 acres.

As used in this Annual Report, GLA in the case of shopping malls refers to the total leasable area of the properties, regardless of our ownership interest in such properties (excluding common areas and parking areas and space occupied by supermarkets, hypermarkets, gas stations and co-owners, except where specifically stated otherwise).

Rounding Adjustments

Certain figures which appear in this Annual Report (including percentage amounts) and in our financial statements have been subject to rounding adjustments for ease of presentation. Accordingly, figures shown for the same category presented in different tables or different parts of this Annual Report and in our financial statements may vary slightly, and figures shown as totals in certain tables may not be arithmetic aggregation of the figures that precede them.

Economic, Industry and Market Data

Economic, industry and market data and other statistical information included or incorporated by reference into this Annual Report is based on data compiled by us from internal sources and based on publications such as Bloomberg, the International Council of Shopping Centers, the Argentine Chamber of Shopping Centers (Cámara Argentina de Shopping Centers), and the National Institute of Statistics and Censuses (Instituto Nacional de Estadística y Censos, the “INDEC”). Although we believe these sources are reliable, we have not independently verified the information and cannot guarantee its accuracy or completeness.

7

PART I

ITEM 1. Identity of Directors, Senior Management and Advisers

This item is not applicable.

ITEM 2. Offer Statistics and Expected Timetable

This item is not applicable.

ITEM 3. Key Information

A. Reserved

A.1. Local Exchange Market and Exchange Rates

The Argentine government has established a series of exchange control measures that restrict the free flow of currency and the transfer of funds abroad. These measures significantly curtail access to the foreign exchange market Mercado Único y Libre de Cambios (“MULC”) by both individuals and private sector entities. This makes it necessary, among other things, to obtain prior approval from the Central Bank to enter into certain foreign exchange transactions such as payments relating to royalties, services or fees payable outside Argentina. For more information about exchange controls see, “Item 10. Additional Information—D. Exchange Controls”.

The following table shows the maximum, minimum, average and closing exchange rates for each applicable period to purchases of U.S. dollars.

	Maximum (1) (2)	Minimum (1) (3)	Average (1) (4)	At closing (1)
Fiscal year ended:
June 30, 2020	70.3600	41.5000	59.5343	70.3600
June 30, 2021	95.6200	70.4200	83.8081	95.6200
June 30, 2022	125.1300	95.6600	105.2712	125.1300
Month ended:
July 31, 2022	131.1700	125.3500	128.3519	132.3200
August 31, 2022	138.6300	131.7900	135.2041	138.6300
September 30, 2022	147.2200	138.9300	143.5305	147.2200
October, 2022 (through October 24, 2022)	154.6400	148.1300	151.3364	154.6400

Source: Banco de la Nación Argentina

(1)	Average between the offer exchange rate and the bid exchange rate according to Banco de la Nación Argentina’s foreign currency exchange rate.
(2)	The maximum exchange rate appearing in the table was the highest end-of-month exchange rate in the year or shorter period, as indicated.
(3)	The minimum exchange rate appearing in the table was the lowest end-of-month exchange rate in the year or shorter period, as indicated.
(4)	Average exchange rates at the end of the month.

B. Capitalization and Indebtedness

This section is not applicable.

C. Reasons for the Offer and Use of Proceeds

This section is not applicable.

8

D. Risk Factors

Summary of Risk Factors

The following summarizes some, but not all, of the risks provided below. Please carefully consider all of the information discussed in this Item 3.D. “Risk Factors” in this Annual Report for a more thorough description of these and other risks:

Risks Relating to Argentina

· We depend on macroeconomic and political conditions in Argentina.

· Continuing high rates of inflation may have an adverse effect on the economy and our business, financial condition and results of operations.

· Argentina’s ability to obtain financing in the international capital markets is limited, which may impair our ability to access international credit markets to finance our operations in Argentina.

· Significant fluctuation in the exchange rate of the Peso against foreign currencies may adversely affect the Argentine economy as well as our financial condition and results of operations.

· Property values in U.S. dollars in Argentina could decline significantly.

· Restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to pay dividends and distributions and investors may face restrictions on their ability to collect capital and interest payments in connection with corporate bonds issued by Argentine companies.

· The ongoing COVID-19 pandemic and Argentine government measures to contain the virus are adversely affecting our business and results of operations, preventing us from accurately predicting the ultimate impact on our results of operations.

· The appearance of “monkeypox” and its spread in different countries, including Argentina, and possible Argentine government measures to contain the virus may adversely affect our business and results of operations.

Risks Relating to our Business

· Disease outbreaks or other public health concerns could reduce traffic in our shopping malls.

· We are subject to risks inherent to the operation of shopping malls that may affect our profitability. An adverse economic environment for real estate companies and the credit crisis may adversely affect our results of operations.

· Our assets are highly concentrated in certain geographic areas and an economic downturn in such areas could have a material adverse effect on our results of operations and financial condition.

· The loss of tenants could adversely affect our operating revenue and value of our properties.

· Our level of debt may adversely affect our operations and our ability to pay our debt as it becomes due and our capacity to successfully access the local and international markets on favorable terms affects our cost of funding.

· We may face risks associated with acquisitions of properties, our future acquisitions may not be profitable and the properties we acquire may be subject to unknown liabilities.

· Some of the land we have purchased is not zoned for development purposes, and we may be unable to obtain, or may face delays in obtaining, the necessary zoning permits and other authorizations.

· The increasingly competitive real estate sector in Argentina may adversely affect our ability to rent or sell office space and other real estate and may affect the sale and lease price of our premises.

· We are dependent on our Board of Directors senior management and other key personnel and may face potential conflicts of interest relating to our principal shareholders.

9

Risks Relating to our Investment in Banco Hipotecario

· The short-term structure of Banco Hipotecario’s deposit base could lead to a reduction in liquidity levels and limit the long-term expansion of financial intermediation.

· Banco Hipotecario’s capacity to successfully access the local and international markets on favorable terms affects its cost of funding.

· The asset quality of financial institutions is exposed to the non-financial public sector’s and Central Bank’s indebtedness.

· Banco Hipotecario operates in a highly regulated environment and its operations are subject to capital controls regulations adopted by several regulatory agencies.

· The Covid-19 may negatively impact the operations and financial situation of Banco Hipotecario.

Risks Relating to our GDSs and Common Shares

· Shares eligible for sale could adversely affect the price of our common shares and GDSs.

· If we issue additional equity securities in the future, you may suffer dilution, and trading prices for our equity securities may decline.

· We are subject to certain different corporate disclosure requirements and accounting standards than domestic issuers of listed securities in the United States.

· Investors may not be able to effect service of process within the United States., limiting their recovery of any foreign judgment.

· If we are considered to be a passive foreign investment company for United States federal income tax purposes, United States holders of our common shares or GDSs would suffer negative consequences.

· Holders of the GDS may be unable to exercise voting rights with respect to the common shares underlying their GDSs.

· Under Argentine law, shareholder rights may be fewer or less well defined than in other jurisdictions and our ability to pay dividends is limited by law and our by-laws.

· Restrictions on the movement of capital out of Argentina may impair your ability to receive dividends and distributions on, and the proceeds of any sale of, the common shares underlying the GDSs.

· You might be unable to exercise preemptive or accretion rights with respect to the common shares underlying your GDSs.

· Our shareholders may be subject to liability for certain votes of their securities.

· The warrants are exercisable under limited circumstances and will expire.

10

Risk Factors

You should carefully consider the risks described below, in addition to the other information contained in this Annual Report, before making an investment decision. We also may face additional risks and uncertainties not currently known to us, or which as of the date of this Annual Report we might not consider significant, which may adversely affect our business. In general, you take more risk when you invest in securities of issuers in emerging markets, such as Argentina, than when you invest in securities of issuers in the United States, and certain other markets. You should understand that an investment in our common shares and Global Depositary Shares (“GDSs”) involves a high degree of risk, including the possibility of loss of your entire investment.

Risks Relating to Argentina

We depend on macroeconomic and political conditions in Argentina.

The Argentine economy has experienced significant volatility in recent decades, characterized by periods of low or negative growth, high levels of inflation and depreciation of the currency. As a consequence, our business and operations have been, and could in the future be, affected to varying degrees by economic and political developments and other material events affecting the Argentine economy, such as: inflation; price controls; foreign exchange restrictions; fluctuations in foreign currency exchange rates and interest rates; governmental policies regarding spending and investment, national, provincial or municipal tax increases and other initiatives increasing Argentine government involvement with economic activity; civil unrest and local security concerns. Developments in economic, political, regulatory and social conditions in Argentina, and measures taken by the Argentine government, have had and are expected to continue to have a significant impact on our business, results of operations and financial condition. Argentina is an emerging market and investing in such markets generally carries additional risks.

Historically, Argentina went through periods of severe political, economic and social crisis. Among other consequences, these crises resulted in Argentina defaulting on its foreign debt obligations, introducing emergency measures and numerous changes in economic policies that affected utilities, financial institutions, and many other sectors of the economy. Argentina also suffered a significant real depreciation of the Peso, which in turn caused numerous Argentine private sector debtors with foreign currency exposure to default on their outstanding debt. In the past three years, GDP contracted 2.2% in 2019 and 6.5% in 2020. During 2021, the GDP increased 11.0% with respect to the previous year. On September 17, 2021, the Argentine Treasury announced that it expected GDP to grow 4% in 2022 and the fiscal deficit to reach 3.3%, both figures higher than previously expected.

Legislative elections took place on November 14, 2021, in the context of which one third of the seats in the senate and half of the seats in the house of representatives, were up for election. “Juntos por el Cambio” (the political party of the former administration) obtained 41.7% of the votes and “Frente de Todos” (the political party of the current administration) obtained 33.6% of the votes. As a result, the “Frente de Todos” coalition lost its majority of votes in the house of representatives, but maintained a majority of the seats in the senate. As a result, the administration of President Fernández may not be able to enact new legislation.

11

We can offer no assurances as to the policies that may be implemented by the administration of President Fernández, or that political developments in Argentina will not adversely affect the Argentine economy and our business, financial condition and results of operations. In addition, we cannot assure you that future economic, regulatory, social and political developments in Argentina will not impair our business, financial condition or results of operations, or cause the market value of our shares to decline.

During periods of high uncertainty in the international markets, potential investors choose to invest in high quality assets. This situation has caused adverse effects on the Argentine economy which could continue to do so in the near future.

On June 24, 2021, Morgan Stanley Capital International Inc. (“MSCI”) announced that it would reclassify the MSCI Argentina Index from Emerging Markets to Standalone Markets status in one step during its November 2021 Semi-Annual Index Review. Pursuant to such announcement, on November 11, 2021, MSCI went forward with the reclassification of the MSCI Argentina Index to Standalone Markets.

The success of any measure taken by the Argentine government pursuant to restoring the market’s trust and achieving the stability of the Peso is uncertain. Furthermore, the continuous loss of value of the Peso may have an adverse effect on our financial condition and the results of our operations.

The IMF and the Argentine authorities have reached an understanding on key policies as part of their ongoing discussions of an IMF-supported program in order to renegotiate the principal maturities of the USD 44.1 billion under a stand-by arrangement. On March 25, 2022, the IMF approved the execution of the financing agreement (the “IMF Agreement”) with Argentina for a total amount of USD 44 billion, which includes a disbursement of USD 9.6 billion. We cannot assure that the conditions of the IMF Agreement will not affect Argentina’s ability to implement reforms and public policies and boost economic growth, nor the impact that the IMF Agreement may have in Argentina’s ability to access international capital markets (and indirectly in our ability to access those markets). Moreover, the long-term impact of these measures and any future measures taken by the government on the Argentine economy remains uncertain. It is possible that reforms could be disruptive to the economy and adversely affect the Argentine economy and our business, results of operations and financial condition. We are also unable to predict the measures that the Argentine government may adopt in the future, and how they will impact on the Argentine economy and our results of operations and financial condition.

Sergio Tomas Massa formally took office as Minister of Economy on August 3, 2022, and stated that his program will be based on four pillars: (i) fiscal order; (ii) trade surplus; (iii) strengthening of monetary reserves; and (iv) development with social inclusion. In matters of fiscal order, Mr. Massa has stated that the goal of 2.5% primary deficit established by the budget for the fiscal year 2022 will be met. In turn, he expressed that payment advances from the National Treasury will not be used for the remainder of the year 2022 together with freezing any new hiring in all sectors of the national public administration. Regarding subsidies of public services, Mr. Massa announced that saving for consumption will be promoted together with a request for care of the country’s natural resources.

In the matter of trade surplus, he has stipulated for the promotion - by means of decrees of necessity and urgency - of special regimes for the agroindustry, mining and hydrocarbon sectors due to increased production and the knowledge economy. Related to the strengthening of reserves, he proposed an export advance scheme, with the value chains of fishing, mining, agriculture and other sectors. In addition, he announced that there will be disbursement of funds by international organizations under current programs, and a new program with the CAF - Development Bank of Latin America. On the other hand, he announced that, during the month of August of 2022, the retirement mobility index will be announced with a “reinforcement”, whose objective will be to help retired workers overcome the loss of purchasing power as a result of growing inflation. Such “reinforcement” was granted on August 25, 2022, for an amount of ARS 7,000 to be paid to retirees during the months of September, October and November 2022.

The long-term impact of these measures and any future measures taken by the Argentine government on the Argentine economy, as a whole, remains uncertain. It is possible that such reforms could be disruptive to the economy and adversely affect the Argentine economy, and consequently, our business, results of operations and financial condition. We are also unable to predict the measures that the Argentine government may adopt in the future, and how they will impact on the Argentine economy and our results of operations and financial condition.

Presidential elections will be held in Argentina in October 2023. We cannot predict which policies the new President of Argentina, who assumed office in December, 2023, may adopt or change during his mandate or the effect that any such policies might have on our business and on the Argentinian economy. Any such new policies or changes to current policies may have a material adverse effect on us. The political uncertainty resulting from the presidential elections and the transition to a new government may have an adverse effect on our business, results of operations and financial condition and the price of our shares and GDSs. 

12

Continuing high rates of inflation may have an adverse effect on the economy and our business, financial condition and results of operations.

Historically, high rates of inflation have undermined the Argentine economy and the Argentine government’s ability to foster conditions for stable growth. High rates of inflation may also undermine Argentina’s competitiveness in international markets and adversely affect economic activity and employment, as well as our business, financial condition and results of operations.

The INDEC reported cumulative variation of the consumer price index (“CPI”) of 53.8% for 2019, 36.1% for 2020 and 50.9% for 2021. INDEC reported a CPI of 5.3%, 7.4%, 7% and 6.2% for June, July, August and September 2022, respectively. As of September 30, 2022, the cumulative variation of the CPI was 66.1%.

In recent years, the Argentine government has taken certain measures to curb inflation, such as implementing price controls and limiting wage increases. We cannot assure you that inflation rates will not continue to escalate in the future or that the measures adopted or that may be adopted by the Fernández administration to control inflation will be effective or successful. High rates of inflation remain a challenge for Argentina. Significant increases in the rates of inflation could have a material adverse effect on Argentina’s economy and in turn could increase our costs of operation, in particular labor costs, and may negatively affect our business, financial condition and results of operations.

A high level of uncertainty with regard to these economic variables, and a general lack of stability in terms of inflation, could have a negative impact on economic activity and adversely affect our financial condition.

As of July 1, 2018, the Peso qualified as a currency of a hyperinflationary economy and we were required to restate our historical financial statements in terms of the measuring unit current at the end of the reporting year, which could adversely affect our results of operations and financial condition.

Pursuant to IAS 29 “Financial Reporting in Hyperinflationary Economies”, the financial statements of entities whose functional currency is that of a hyperinflationary economy must be restated for the effects of changes in a suitable general price index. IAS 29 does not prescribe when hyperinflation arises, but includes several characteristics of hyperinflation. The IASB does not identify specific hyperinflationary jurisdictions. However, in June 2018, the International Practices Task Force of the Center for Quality, which monitors “highly inflationary countries”, categorized Argentina as a country with projected three-year cumulative inflation rate greater than 100%. Additionally, some of the other qualitative factors of IAS 29 were present, providing prima facie evidence that the Argentine economy was hyperinflationary for the purposes of IAS 29. Therefore, Argentine companies that prepare financial statements pursuant to IFRS and use the Peso as their functional currency were required to apply IAS 29 to their financial statements for periods ending on and after July 1, 2018.

Adjustments to reflect inflation, including tax indexation, such as those required by IAS 29, are in principle prohibited in Argentina. However, on December 4, 2018, the Argentine government enacted Law No. 27,468, which lifted the ban on indexation of financial statements. Certain regulatory authorities, such as the CNV and the Public Registry of Commerce of the City of Buenos Aires (Inspección General de Justicia) (the “IGJ”), have required that financial statements for periods ended on and after December 31, 2018, be restated for inflation in accordance with IAS 29.

During the first three fiscal years beginning after January 1, 2018, inflation adjustment for tax purposes was applicable if the variation in the CPI exceeds 55% in 2019, 30% in 2020 and 15% in 2021.

Therefore, inflation adjustment for tax purposes:

· Year ended June 30, 2019: one third of the adjustment to be allocated to 2019 and the remaining two thirds to be allocated in equal parts in the following two years.

· Years ended June 30, 2020 and 2021: one sixth of the adjustment to be allocated to 2020 and 2021 and the remaining portions in equal parts in the five following years.

13

As from fiscal year 2022, the inflation adjustment for tax purposes will be applicable if the variation in the accumulated CPI in the 36 months prior to the end of the fiscal year being settled is higher than 100%. In that case, the result of inflation adjustment for tax purposes is fully allocated to the fiscal year in which it originated.

We cannot predict the future impact that the eventual application of inflation adjustment for tax purposes and other related inflation adjustments described above will have on our financial statements or their effects on our business, results of operations and financial condition.

High levels of public spending in Argentina could generate long-lasting adverse consequences for the Argentine economy.

During recent years, the Argentine government has substantially increased public spending. Argentina recorded a primary deficit of 0.4% 6.5% and 3.0% of GDP in 2019, 2020 and 2021, respectively. However, the Fernández administration has indicated that it will seek to foster economic growth, which may require additional public spending. If government spending continues to outpace fiscal revenue, the fiscal deficit is likely to increase.

The Argentine government’s ability to access the long-term financial markets to finance such increased spending is limited given the high levels of public sector indebtedness. The inability to access the capital markets to fund its deficit or the use of other sources of financing may have a negative impact on the economy and, in addition, could limit the access to such capital markets for Argentine companies, which could adversely affect our business, financial condition and results of operations.

Argentina’s ability to obtain financing in the international capital markets is limited, which may impair our ability to access international credit markets to finance our operations in Argentina.

During recent years the Argentine government has faced difficulties in the payment of its sovereign debt. As a result, the Argentine government may not have access to international financing, or its access may be costly, which would limit its ability to make investments and foster economic growth. Additionally, Argentine companies may also have difficulty accessing international financing, at reasonable costs or at all.

In 2018, due to Argentina’s limited access to the international capital and lending markets, the Argentine government and the IMF entered into the Stand-By Agreement. As of the date of this Annual Report, Argentina has received disbursements under the agreement totaling USD 57.1 billion. Notwithstanding the foregoing, the Fernández administration has publicly announced that it will refrain from requesting additional disbursements under this agreement, and instead vowed to renegotiate its terms and conditions in good faith.

During March 2020, the Argentine government initiated discussions with various groups of creditors to discuss a path for Argentina’s debt sustainability. With respect to Argentina’s international bonds, the Argentine executive branch approved the restructuring of certain eligible global bonds issued under foreign laws for up to USD 65 billion. In August 2020, the Argentine government announced that it had obtained the consents required to exchange 99% of the aggregate principal amount outstanding of all series of eligible bonds.

On March 13, 2020, the Minister of Economy addressed a letter to the Paris Club members expressing Argentina’s decision to postpone until May 5, 2021 the USD 2.1 billion payment originally due on May 5, 2020, in accordance with the terms of the settlement agreement Argentina had reached with the Paris Club members on May 29, 2014 (the “Paris Club 2014 Settlement Agreement”). In addition, on April 7, 2020, the Minister of Economy sent the Paris Club members a proposal to modify the existing terms of the Paris Club 2014 Settlement Agreement, seeking mainly an extension of the maturity dates and a significant reduction in the interest rate. In June 2021, the parties agreed that Argentina would pay USD 430 million to the group before the end of July and the rest during the following year to avert default in July 2021. On March 22, 2022, the Argentine government reached an agreement with the Paris Club for a new extension of the agreement reached in June 2021.

14

In June 2018, the Argentine government and the IMF signed a three-year, USD 50 billion loan agreement, as further amended to USD 57.1 billion through 2021 (the “IMF 2018 Agreement”). Following an IMF report in February 2020 stating that Argentina’s debt may not be sustainable, the Argentine government requested to begin discussions with the IMF in order to renegotiate the principal maturities of the USD 44.1 billion disbursed between 2018 and 2019 under a stand-by arrangement. The IMF and the Argentine authorities reached an understanding on key policies as part of their ongoing discussions on an IMF-supported program. On March 25, 2022, the IMF approved the execution of the IMF Agreement with Argentina for a total amount of USD 44 billion, which includes a disbursement of USD9.6 billion. The IMF will monitor Argentina’s compliance with such agreement at the end of each quarter. By means of the IMF Agreement, the Argentine government seeks to decrease the high inflation in Argentina improving public finances and strengthening Argentina’s balance of payments. We cannot assure that the conditions of the IMF Agreement will not affect Argentina’s ability to implement reforms and public policies and boost economic growth, nor the impact that the IMF Agreement may have in Argentina’s ability to access international capital markets (and indirectly in our ability to access those markets).

On January 28, 2022, President Alberto Fernandez announced that an understanding with the IMF pursuant to restructuring the debt incurred as set forth in the Stand-by Agreement was reached. On that same day, President Alberto Fernandez authorized the payment of principal pursuant to such agreement for an amount of USD 731 million.

In addition, during the latter part of June 2022, the IMF made a second disbursement of funds for an amount of USD 4,155 million. Furthermore, a third disbursement of funds for an amount of USD 3.8 million was made on October 7, 2022.

Due to past or future defaults on its indebtedness, we cannot assure you that Argentina will have access to international financing in the future, on favorable terms or at all. If Argentina is not able to access financing, it may not be able to foster economic growth and invest in the country. As a result, we cannot assure you that private companies in Argentina will have access to financing on favorable terms or at all, which could adversely affect our business, financial condition and results of operations.

For more information see “Restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to pay dividends and distributions and investors may face restrictions on their ability to collect capital and interest payments in connection with corporate bonds issued by Argentine companies”.

Significant fluctuation in the exchange rate of the Peso against foreign currencies may adversely affect the Argentine economy as well as our financial condition and results of operations.

Fluctuations in the rates of exchange of the Peso against foreign currencies, particularly the U.S. dollar, may adversely affect the Argentine economy, our financial condition and results of operations. In 2018, 2019, 2020 and 2021, the Peso depreciated by approximately 105%, 59%, 40% and 18%, respectively, against the U.S. dollar. Depreciation of the Peso in real terms can have a negative impact on the ability of Argentine businesses to honor their foreign currency-denominated debt, and also lead to very high inflation and significantly reduced real wages. The depreciation of the Peso can also negatively impact businesses whose success is dependent on domestic market demand, and adversely affect the Argentine government’s ability to honor its foreign debt obligations. A substantial increase in the exchange rate of the Peso against foreign currencies of the Peso against the U.S. dollar also represents risks for the Argentine economy since it may lead to a deterioration of the country’s current account balance and the balance of payments which may have a negative effect on GDP growth and employment, and reduce the revenue of the Argentine public sector by reducing tax revenue in real terms, due to its current heavy dependence on export taxes.

As a result of the greater volatility of the Peso, the former administration announced several measures to restore market confidence and stabilize the value of the Peso. Among them, during 2018, the Argentine government negotiated two agreements with the IMF, increased interest rates and the Central Bank decided to intervene in the exchange market in order to stabilize the value of the Peso. During 2019, based on a new understanding with the IMF, the Argentine government established new guidelines for stricter control of the monetary base, which would remain in place until December 2019, in an attempt to reduce the amount of Pesos available in the market and reduce the demand for foreign currency. Complementing these measures, in September 2019 foreign currency controls were reinstated in Argentina. As a consequence of the re-imposition of exchange controls, the spread between the official exchange rate and other exchange rates resulting implicitly from certain common capital markets operations (“dólar MEP” or “contado con liquidación”) has broadened significantly, reaching a value of approximately 100% above the official exchange rate. As of October 24, 2022, the seller exchange rate quoted by Banco de la Nación Argentina was ARS 154.74 per USD 1.00.

15

The “Dollar Soja” was a special exchange regime created by Decree 576/2022 that was in force during September 2022 and offers ARS 200 for each USD, unlike the currently approx. ARS 142 offered during same time to the rest of the exporters. Said was established for the settlement of foreign currency from soybeans and products associated with it, for those who adhere to the program and that comply with the requirements established in said decree. As of the date of this Annual Report, the aforementioned exchange regime has not been extended and, consequently, the “Dollar Soja” is not currently in effect. As a result of this special exchange regime, the Argentina Central Bank achieved a total of USD 8,123 million.

Furthermore, in early October 2022, the Argentine government announced a special exchange rate for the high-tech industry. Additionally, through the  Federal Administration of Public Revenue (“AFIP”) General Resolution No. 5272/2022, it established two additional exchange rates. In this regard, is a special exchange rate that applies to any expense of more than USD 300 made abroad during a calendar month, pursuant to which an extra 25% advance payment of Income Tax would be applicable. In addition, local concert promoters will be subjected to a special exchange rate pursuant applicable to the payment of foreign entertainers, set in an amount of ARS 204 ARS per USD 1.

The success of any measures taken by the Argentine government to restore market confidence and stabilize the value of the Peso is uncertain and the continued depreciation of the Peso could have a significant adverse effect on our financial condition and results of operations.

Certain measures that may be taken by the Argentine government, or changes in policies, laws and regulations, may adversely affect the Argentine economy and, as a result, our business, financial condition and results of operations.

The Argentine government exercises substantial control over the economy and may increase its level of intervention in certain areas of the economy, including through the regulation of market conditions and prices.

On June 2020, President Alberto Fernández announced a project to intervene and expropriate the cereal exporting company Vicentin S.A.I.C (“Vicentin”) under which the national public administration would take control of 51% of Vicentin, which is in creditor competition as a result of the company’s ARS 350 million debt with state-owned Banco de la Nación Argentina, on a total increase of USD 1.35 billion. However, on June 19, 2020, the holder of the Civil and Commercial Court, responsible for carrying out Vicentin’s call for creditors, decided to restore the company’s original Board of Directors to office for 60 days and to give the observer status to the interventors appointed by the administration of Alberto Fernández.

As for taxes, the Argentine government regulated the “Ley de Aporte Solidario y Extraordinario” to mitigate the effects of the pandemic (Law No. 27,605) - also known as “aporte de las grandes fortunas o impuesto a las riquezas”. It established a one-time contribution of a rate starting at 2% of the assets of individuals who have declared more than ARS 200 million in assets. The contribution will rise up to 3% in the case of assets of between ARS 800 million and ARS 1,500 million; will be extended up to 3.25% for those between ARS 1,500 million and ARS 3,000 million; and those who exceed that value will be taxed at 3.5%. The number of taxpayers covered by the regulations is estimated at 12,000.

Decree 42/2021 also empowered the AFIP to be in charge of “implementing the information regimes for the purpose of collecting data” and thus prevent tax evasion operations. In this sense, when the law was sanctioned and promulgated, some businessmen with large assets threatened to start a fiscal rebellion.

Historically, actions of the Argentine government concerning the economy, including decisions regarding interest rates, taxes, price controls, wage increases, increased benefits for workers, exchange controls and potential changes in the market of foreign currency, have had a substantial adverse effect on Argentina’s economic growth.

16

It is widely reported by private economists that expropriations, price controls, exchange controls and other direct involvement by the Argentine government in the economy have had an adverse impact on the level of investment in Argentina, the access of Argentine companies to international capital markets and Argentina’s commercial and diplomatic relations with other countries. If the level of Government intervention in the economy continues or increases, the Argentine economy and, in turn, our business, results of operations and financial condition could be adversely affected.

On June 6, 2022, the Argentine government sent to the Chamber of Deputies a bill that would establish a one-time “windfall income tax” for companies that obtained extraordinary income from the increase in international prices. Based on the current Argentine political environment, it is uncertain whether the Argentine Congress will approve this bill.

The bill would establish a one-time additional 15% windfall income tax on the excess of the net taxable income resulting from the difference of the (1) net taxable income obtained in the first tax year ended on or after the month immediately following the month in which the bill enters into force, and (2) net taxable income from the previous tax year adjusted by the variation of the CPI, published by the National Institute of Statistics and Census.

The windfall income tax would apply to companies that meet the following requirements:

· The net taxable income or the accounting profits adjusted for inflation for the first financial year ending on or after the month immediately following the month in which the bill enters into force is at least ARS 1 billion; and

· (i) The accounting profits adjusted for inflation for the first financial year ending on or after the month immediately following the month in which the bill enters into force represents at least 10% of the total gross income for that period; or (ii) the ratio between the accounting profits adjusted for inflation for the first financial year ending on or after the month immediately following the month in which the bill enters into force and the total gross income for that period, is at least 20% higher than the same ratio for the previous year.

The bill would exclude the income tax and the extraordinary results from the calculations referred to in the previous paragraph, in accordance with the regulations to be issued after the bill’s enactment.

If approved by the Argentine Congress, the bill would be enacted on the date of publication in the Official Gazette and would apply for the first financial year ending from the first day of the month immediately following enactment and the last day of the 12th month immediately following that date.

However, since such bill has not yet been discussed in the Chamber of Deputies, and doesn’t looks like it will in the near future, the AFIP issued General Resolution No. 5,248, establishing that an extraordinary payment on account of income tax payable in 3 monthly installments shall be in effect for companies that meet any of the following parameters:

· The amount of the tax determined from the tax return corresponding to the fiscal year 2021 or 2022, as the case may be, is equal to or higher than ARS 100,000,000.

· The amount of the tax result arising from the tax return, without applying the deduction corresponding to tax losses of previous years, is equal to or higher than ARS 300,000,000.

Any such payment on account of income tax shall be 25% of the calculation basis of the advance payment, or 15% of the tax result, without considering the losses of previous years.

The aforementioned payment on account of income tax may not be cancelled through a compensation mechanism and shall not be considered when requesting a reduction of tax payments.

The Argentine government may mandate salary increases for private sector employees, which would increase our operating costs.

In the past, the Argentine government has passed laws, regulations and decrees requiring companies in the private sector to maintain minimum wage levels and provide specific benefits to employees. Argentine employers, both in the public and private sectors, have experienced significant pressure from their employees and labor organizations to increase wages and to provide additional employee benefits. Due to high levels of inflation, employees and labor organizations regularly demand significant wage increases.

Through Decree No.11/2022, a staggered increase of the minimum salary was approved as follows: (i) September 1, 2022, ARS 51,200.00 for all full-time monthly workers and ARS 256.00 per hour for day laborers; (ii) October 1, 2022, ARS 54,550.00 for all full-time monthly workers and ARS 272.75 per hour for day laborers; and (iii) November 1, 2022, ARS 57,900.00 for all full-time monthly workers and ARS 289.50 per hour for day laborers. In addition, the Argentine government has arranged various measures to mitigate the impact of inflation and exchange rate fluctuation in wages. In December 2019, Decree No. 34/2019 doubled legally-mandated severance pay for termination of employment. This decree was extended until June 30, 2022, under the provisions of Decree 886/2021. This last decree established a gradual reduction of the double compensation, namely: (i) 75% of the amount of the same, from January 1, 2022 and until January 28, February 2022; (ii) 50% from March 1, 2022 and until April 30, 2022; and (iii) 25% from May 1, 2022 and until June 30, 2022. As of the date of this Annual Report, there has been no further extensions to the payment of double compensations; therefore, the aforementioned rule is no longer in force.

17

It is possible that the Argentine government could adopt measures mandating further salary increases or the provision of additional employee benefits in the future. Any such measures could have a material and adverse effect on our business, results of operations and financial condition.

Property values in U.S. dollars in Argentina could decline significantly.

Property values in U.S. dollars are influenced by multiple factors that are beyond our control, such as a decreased demand for real estate properties due to a deterioration of macroeconomic conditions or an increase in supply of real estate properties that could adversely affect the value in U.S. dollars of real estate properties. We cannot assure you that property values in U.S. dollars will increase or that they will not be reduced. Most of the properties we own are located in Argentina. As a result, a reduction in the value in U.S. dollars of properties in Argentina could materially affect our business and our financial statements due to the valuation of our investment properties at fair market value in U.S. dollars.

Restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to pay dividends and distributions and investors may face restrictions on their ability to collect capital and interest payments in connection with corporate bonds issued by Argentine companies.

On September 1, 2019, the Central Bank issued Communication “A” 6,770, which established various rules for exports of goods and services, imports of goods and services, foreign assets, non-resident operations, financial debt, debts between residents, profits and dividends, and information systems. The Communication was issued in response to the publication of Decree 609/2019, pursuant to which the Argentine government implemented foreign exchange regulations until December 31, 2019. Decree 609/2019 sets forth the obligation to convert the value of goods and services exported into Pesos in the local financial system, in accordance with terms and conditions established by the Central Bank. Through Decree 91/2019, the National Executive Branch resolved to continue with the provisions of Decree 609/2019, this is the obligation to convert the value of exported goods and services to Pesos in the local financial system, in accordance with the terms and conditions established by the Central Bank. Accordingly, through Communication “A” 6,856, Communication “A” 6,770 was modified, establishing that the rules regarding the obligation to enter the country in foreign currency and/or negotiation in the MULC of receipts for exports of goods and services, disseminated through Communication “A” 6,844 remains in force since December 31, 2019.

On September 15, 2020, Communication “A” 7,106 established that companies must refinance the maturities of the capital of the financial debt in the period between October 15, 2020 and December 31, 2023. Subsequently, such period was extended in various opportunities, with the final extension being issued on October 13, 2022, pursuant to Communication “A” 7,621 by which it was further extended until December 31, 2023. In this regard, the Central Bank will grant companies access to the MULC for up to 40% of the maturities and the companies must refinance the remaining 60%within a period of at least two years. In addition, CNV Resolution No. 862/2020 established a minimum holding term requirement of three days for both transfers of securities from local accounts abroad and vice versa.

As of the date of this Annual Report, we have outstanding obligations pursuant to the Series II Notes issued by the Company for USD 121.0 million. We currently cannot predict whether the Government will impose further exchange controls and transfer restrictions that may impair our ability to access the MULC for the repayment of the total amount or part of such obligations.

On January 11, 2021, through Resolution No. 878/21, the CNV reduced the minimum holding term to one business day, both to carry out sales operations of negotiable securities with settlement in foreign currency in the local market, as well as to use in the settlement of operations in foreign currency in the local market the negotiable securities transferred from depositories abroad to depositories of the country.

18

On July 12, 2021, through Resolution No. 895/2021 of the CNV, it was established that in order to carry out sales operations of negotiable securities with settlement in foreign currency and in foreign jurisdiction, a minimum period of holding of said securities must be observed negotiable securities in portfolio of 2 business days counted from its accreditation in the depositary agent. This term shall not apply in the case of purchases of negotiable securities with settlement in foreign currency and in foreign jurisdiction. In the case of sales operations of negotiable securities with settlement in foreign currency and in local jurisdiction, the minimum term of permanence in the portfolio to be observed will be 1 business day to be computed in the same way. This minimum holding period shall not apply in the case of purchases of negotiable securities with settlement in foreign currency. To give effect to transfers of negotiable securities acquired with settlement in national currency to depository entities abroad, a minimum term of holding said negotiable securities in the portfolio of 2 business days must be observed, counted from their accreditation in the depositary agent. The exception is contemplated in those cases in which the accreditation is the product of the primary placement of negotiable securities issued by the National Treasury or in the case of Argentine shares and/or Certificates of Deposit (“Cedears”) with trading in markets regulated by the CNV. As a result of all the exchange restrictions mentioned and all those that may be issued in the future by the Central Bank in the context of the exercise of its powers, it is clarified that there may be possible “withholdings” in the context of the restructuring that Argentine companies are undergoing. obliged to carry out with the consequent possible claims.

In order to comply with the requirements of this regulation, a financial debt refinancing plan had to be presented to the Central Bank, which must be registered until December 31, 2020 before September 30, 2020. In order for maturities to be registered between January 1, 2021 and March 31, 2021, the plan must be presented at least 30 calendar days before the maturity of the principal to be refinanced, which implies a risk to obtain financing for new productive projects. As a consequence, there could be a rise in corporate bond spreads.

Likewise, on February 22, 2021, the Central Bank resolved to extend the validity of point 7 of Communication “A” 7,106, which expired on March 31, 2021. Thus, it established that the provisions of point 7 will be applicable to those who register capital maturities scheduled between April 1, 2021 and December 31, 2021 for the indebtedness detailed therein. Subsequently, through Communication “A” 7,422, it was extended again until June 30, 2022.

And, finally, on October 13, 2022, the Central Bank issued Communication “A” 7,621 by which it was decided to extend the period until December 31, 2023. The refinancing plan had to be presented to the Central Bank before March 15, 2021, for principal maturities scheduled between April 1, 2021, and April 15, 2021. In all other cases, it must be submitted at least 30 calendar days before the maturity of the principal to be refinanced. Specifically, the requirement to renegotiate is maintained, although the monthly maturities that must be rescheduled are raised from USD 1 million to USD 2 million and frees companies that have restructured their debts under the same procedure throughout 2020, and that this year they face maturities of such rescheduling. By the same requirement, the maturities of new loan disbursements entered as of 2020 have not been reached either. In addition, since June 2020, pursuant to Communication “A” 7,030, companies could no longer access the MULC to cancel the financial debt between companies in advance. It is also noted that such possible restructuring proposals will fully comply with the requirements set forth by the applicable and current regulations, as long as the breach brings the application of the foreign exchange criminal law to the members of our board of directors.

Furthermore, on August 13, 2021, through Communication “A” 7,340, the Central Bank incorporated as point 4.3.3. of the regulations of Foreign Trade and Exchange regulations (Texto Ordenado de Exterior y Cambios), that the purchase and sale of securities that are carried out with settlement in foreign currency must be paid by one of the following mechanisms: a) by transfer of funds from and to sight accounts at name of the client in local financial entities, and b) against wire on bank accounts in the name of the client in a foreign entity that is not incorporated in countries or territories where the Recommendations of the Financial Action Task Force do not apply, or do not apply sufficiently. International. In no case is the settlement of these operations permitted by means of payment in foreign currency bills, or by depositing them in custody accounts or in third-party accounts. On December 9, 2021, through Communication “A” 7,416 of the Central Bank, modified by Communication “A” 7,422 and later Communications, most of the foreign exchange restrictions were extended until December 31, 2022.

19

On April 12, 2022, through Communication “A” 7,490, the Central Bank released the ordered text of the Foreign Trade and Exchange regulations (Texto Ordenado de Exterior y Cambios) to replace Communications “A” 7,433, 7,466, 7,469, 7,471, 7,472 and 7,488. Among other things, the aforementioned regulations extended until December 31, 2022, the exchange restrictions applicable to import payments, the prior approval to make payments of foreign financial indebtedness with related creditors and the rules on matters of refinancing foreign liabilities. In addition, they established that the Central Bank will have the possibility of assigning a specific category linked to the way of accessing the MULC.

As of the date of this Annual Report, the restrictions outlined above remain in place. Such measures may negatively affect Argentina’s international competitiveness, discouraging foreign investments and lending by foreign investors or increasing foreign capital outflow which could have an adverse effect on economic activity in Argentina, and which in turn could adversely affect our business and results of operations. Any restrictions on transferring funds abroad imposed by the Argentine government could undermine our ability to pay dividends on our GDSs in U.S. dollars. Furthermore, these measures may cause delays or impose restrictions on the ability to collect payments of capital and interest on bonds issued by us. The challenge will be to achieve acceptance by creditors, in accordance with the Central Bank regulations mentioned above, especially when it has highly diversified and retail creditors.

The company has several dollar-denominated maturities affected by these measures. For more information see “Operating and Financial Review and Prospects—Liquidity and capital resources—Indebtedness”.

The ongoing COVID-19 pandemic and Argentine government measures to contain the virus are adversely affecting our business and results of operations, preventing us from accurately predicting the ultimate impact on our results of operations.

As of the date of this Annual Report, most of the operations and properties are located in Argentina. As a result, the quality of our assets, our financial condition and the results of our operations are dependent upon the macroeconomic, regulatory, social and political conditions prevailing in Argentina.

In order to mitigate the economic impact of the COVID-19 pandemic and mandatory lockdown and shutdown of non-essential businesses, the Argentine government adopted social aid, monetary and fiscal measures, including price controls and the prohibition of dismissals without cause.

As of the date of this Annual Report, the COVID-19 outbreak has caused significant social and market disruption. The long-term effects of the coronavirus pandemic on the global economy, Argentine economy and the Company, are difficult to assess or predict, and may include a decline in market prices (including the market prices of our common shares), risks to employee health and safety and reduced sales in the impacted geographic locations. Any prolonged restrictive measures put in place in order to control an outbreak of a contagious disease or other adverse public health development such as the ongoing COVID-19 outbreak, may have a material and adverse effect on our business operations, financial condition or operational results. In this regard, and due to the restrictions that were in place, we were forced to keep the DirecTV Arena stadium closed throughout the entire 2021 fiscal year.

The Company is currently considering alternatives pursuant to mitigating the effects this outbreak may have had on its operations and ongoing projects, as well as to any measures adopted by the Argentine government, which so far have resulted in a slowdown in economic activity that has further adversely affected economic growth in Argentina during the 2020 and 2021 fiscal years.

We are continuing to monitor the impact of the ongoing COVID-19 pandemic across our businesses. The ultimate impact of the pandemic on our business, results of operations and financial condition remains uncertain and will depend on future developments outside of our control, including whether new variants of the COVID-19 arise and the Argentine government measures in response of the COVID-19 pandemic, including the vaccination program launched in December 2020. To the extent the COVID-19 pandemic adversely affects our business, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section. To the extent the COVID-19 pandemic adversely affects our business, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section.

For more information in connection with the COVID-19 pandemic and their impact on our Company, see “Item 5.A. Operating Results – The Ongoing COVID-19 Pandemic.”

20

The appearance of “monkeypox” and its spread in different countries, including Argentina, and possible Argentine government measures to contain the virus may adversely affect our business and results of operations.

Monkeypox was first detected in humans in 1970 in the Democratic Republic of the Congo, being transmitted from person to person by close contact with infected respiratory secretions or skin lesions of an infected person.

Since then, the majority of reported cases have come from rural rainforest regions of the Congo Basin and West Africa, particularly the Democratic Republic of the Congo, where it is considered endemic. However, in mid-May 2022, cases of monkeypox were identified in countries such as Portugal, Spain and the United Kingdom, in addition to investigations in several countries finding cases without a known source of infection, which suggested the existence of a undetected community spread. In the United States, the cities of New York and San Francisco have declared a state of emergency due to the spike in cases of this disease. As of October 25 2022, the World Health Organization reported that 75,790 have been detected globally. 

In order to mitigate the impact of the spread of monkeypox, the Argentine government may adopt measures, such as mandatory lockdown and shutdown of non-essential businesses. If adopted, we cannot assure you whether these measures will be sufficient to prevent a severe economic downturn in Argentina, particularly if Argentina’s main trading partners are concurrently facing an economic recession, which may adversely affect our business and results of operations.

The Argentine economy could be adversely affected by economic developments in other global markets.

Argentina’s economy is vulnerable to external shocks that could be caused by adverse developments affecting its principal trading partners. A significant decline in the economic growth of any of Argentina’s major trading partners (including Brazil, the European Union, China and the United States), including as a result of the ongoing COVID-19 pandemic, could have a material adverse impact on Argentina’s balance of trade and adversely affect Argentina’s economic growth. In addition, Argentina may be affected by economic and market conditions in other markets worldwide.

General elections in Brazil, including the election of the president, were held on October 2, 2022. Historically, election years in Brazil, and especially presidential elections, are marked by political uncertainty which generates greater instability and volatility. Moreover, the Brazilian Supreme Court recently overturned criminal convictions and restored former President Luis Inácio Lula da Silva’s political rights, allowing him to run in the presidential election. According to the official results, Lula obtained 48.4% of the votes while Bolsonaro obtained 43.2% of the votes. As no presidential candidate received a majority of the votes on 2 October, Lula and Bolsonaro advanced to a runoff election, scheduled for October 30, 2022. As a consequence, we cannot provide certainties of the effects that the results of the election may have on the Brazilian economy and its impact in Argentina, taking not account that both countries are close commercial partners and members of the MERCOSUR.

In addition, financial and securities markets in Argentina have been influenced by economic and market conditions in other markets worldwide. Although economic conditions vary from country to country, investors’ perceptions of events occurring in other countries have in the past substantially affected, and may continue to substantially affect, capital flows into, and investments in securities from issuers in, other countries, including Argentina. International investors’ reactions to events occurring in one market sometimes demonstrate a “contagion” effect in which an entire region or class of investment is disfavored by international investors.

On November 3, 2020, presidential elections took place in the United States. Former Vice President Joseph R. Biden Jr. was the Democratic nominee to challenge President Trump. Finally, on November 7, 2020, Democrat Joe Biden was declared president. Mr. Biden became the 46th president on January 20, 2021. We cannot predict how any measures adopted by the Biden administration may affect Argentina, nor the effect that any other measure taken by the Biden administration could cause on global economic conditions and the stability of global financial markets.

21

In July 2019, the Common Market of the South (“MERCOSUR”) signed a strategic partnership agreement with the European Union (the “EU”), which was expected to enter into force in 2021, once approved by the relevant legislatures of each member country. The objective of this agreement is to promote investments, regional integration, increase the competitiveness of the economy and achieve an increase in GDP. However, the effect that this agreement could have on the Argentine economy and the policies implemented by the Argentine government is uncertain. In October 2020, The European Parliament passed a non-binding resolution opposing the ratification of the trade agreement between the EU and MERCOSUR due to concerns over the environmental policy of the Jair Bolsonaro government. At the same time, the EU was to send MERCOSUR member countries a document with additional requirements on the environmental commitment, a matter that has not been fulfilled and that, in part, has slowed down the implementation of the agreement between both entities. In this regard, it is reported that the definition and implementation of the free trade agreement will be completed next year and not in the second part of 2022, as expected.

Changes in social, political, regulatory and economic conditions in other countries or regions, or in the laws and policies governing foreign trade, could create uncertainty in the international markets and could have a negative impact on emerging market economies, including the Argentine economy. Also, if these countries fall into a recession, the Argentine economy would be impacted by a decline in its exports, particularly of its main agricultural commodities. All of these factors could have a negative impact on Argentina’s economy and, in turn, our business, financial condition and results of operations.

High commodity prices contributed to the increase in Argentine exports and to high Argentine government tax revenue from export withholdings. Consequently, the Argentine economy has remained relatively dependent on the price of its main agricultural products, primarily soy. This dependence has rendered the Argentine economy more vulnerable to commodity prices fluctuations.

A continuous decline in international prices of Argentina’s main commodity exports could have a negative impact on the levels of government revenue and the Argentine government’s ability to service its sovereign debt, and could either generate recessionary or inflationary pressures, depending on the Argentine government’s reaction. Either of these results would adversely impact Argentina’s economy and, therefore, our business, results of operations and financial condition.

The absence of a solid institutional framework and corruption have been pointed out as an important problem for Argentina and continue to be. Recognizing that the failure to address these issues could increase the risk of political instability, distort decision-making processes and adversely affect Argentina’s international reputation and ability to attract foreign investment, the former Macri administration adopted several measures aimed at strengthening Argentina’s institutions and curbing corruption. These measures included the reduction of criminal sentences in exchange for cooperation with the Argentine government in corruption investigations, increased access to public information, the seizing of assets from corrupt officials, increasing the powers of the Anticorruption Office (Oficina Anticorrupción) and the passing of a new public ethics law, among others.

The Russian invasion of Ukraine could have an unpredictable effect on the global economy and on international and local securities markets, and adversely affect our business and results of operations.

The recent outbreak of war in Ukraine has affected global economic markets, including a dramatic increase in the price of oil and gas, and the uncertain resolution of this conflict could result in protracted and/or severe damage to the global economy.

Russia’s recent military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the United States, the European Union and other countries against Russia and possibly countries that support, directly or indirectly, Russia’s incursion. Russia’s military incursion and the resulting sanctions could adversely affect global energy and financial markets, including Argentina’s, and thus could affect our businesses and the businesses of our customers, even though we do not have any direct exposure to Russia or the adjoining geographic regions.

The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions caused by Russian military action or resulting sanctions may magnify the impact of other risks described herein. We cannot predict the progress or outcome of the situation in Ukraine, as the conflict and governmental reactions are rapidly developing and beyond their control. Prolonged unrest, intensified military activities or more extensive sanctions impacting the region, could have a material adverse effect on the global economy, and such effect could in turn have a material adverse effect on our business, financial condition, results of operations and prospects.

22

Our internal policies and procedures might not be sufficient to guarantee compliance with anti-corruption and anti-bribery laws and regulations.

Our operations are subject to various anti-corruption and anti-bribery laws and regulations, including the Corporate Criminal Liability Law and the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”). Both the Corporate Criminal Liability Law and the FCPA impose liability against companies who engage in bribery of Argentine government officials, either directly or through intermediaries. The anti-corruption laws generally prohibit providing anything of value to Argentine government officials for the purposes of obtaining or retaining business or securing any improper business advantage. As part of our business, we may deal with entities in which the employees are considered government officials. We have a compliance program that is designed to manage the risks of doing business in light of these new and existing legal and regulatory requirements.

Although we have internal policies and procedures designed to ensure compliance with applicable anti-corruption and anti-bribery laws and regulations, there can be no assurance that such policies and procedures will be sufficient. Violations of anti-corruption laws and sanctions regulations could lead to financial penalties being imposed on us, limits being placed on our activities, our authorizations and licenses being revoked, damage to our reputation and other consequences that could have a material adverse effect on our business, results of operations and financial condition. Further, litigations or investigations relating to alleged or suspected violations of anti-corruption laws and sanctions regulations could be costly.

Risks Relating to our Business

Disease outbreaks or other public health concerns could reduce traffic in our shopping malls.

As a result of the COVID-19 pandemic, the Argentine government enacted several regulations limiting the operation of schools, cinemas and shopping malls, which has significantly reduced traffic at our shopping malls. See “Risks Relating to Argentina – The ongoing COVID-19 pandemic and government measures to contain the virus are adversely affecting our business and results of operations, and, as conditions are evolving rapidly, we cannot accurately predict the ultimate impact on our results of operation.” We cannot assure you that new disease outbreaks or health hazards will not occur in the future, or that such an outbreak or health hazard would not significantly affect consumer and/or tourists’ activity. The recurrence of such a scenario could adversely affect our business and the results of operations.

We are subject to risks inherent to the operation of shopping malls that may affect our profitability.

Our shopping malls are subject to various factors that affect their development, administration and profitability, including:

· declines in lease prices or increases in levels of default by our tenants due to economic conditions;

· increases in interest rates and other factors outside our control;

· the accessibility and attractiveness of the areas where our shopping malls are located;

· the intrinsic attractiveness of the shopping mall;

· the flow of people and the level of sales of rental units in our shopping malls;

· the increasing competition from internet sales;

· the amount of rent collected from tenants at our shopping malls;

· changes in consumer demand and availability of consumer credit, both of which are highly sensitive to general macroeconomic conditions; and

· fluctuations in occupancy levels in our shopping malls.

23

An increase in our operating costs could also have a material adverse effect on us if our tenants were to become unable to pay higher rent we may be required to impose as a result of increased expenses. Moreover, the shopping mall business is closely related to consumer spending and affected by prevailing economic conditions. All of our shopping malls and commercial properties are located in Argentina, and consequently, these operations may be adversely affected by recession or economic uncertainty in Argentina. Persistently poor economic conditions could result in a decline in consumer spending which could have a material adverse effect on shopping mall revenue.

We could be adversely affected by decreases in the value of our investments.

Our investments are exposed to the risks generally inherent to the real estate industry, many of which are out of our control. Any of these risks could adversely and materially affect our business, financial condition and results of operations. Any returns on capital expenditures associated with real estate are dependent upon sales volumes and/or revenue from leases and the expenses incurred. In addition, there are other factors that may adversely affect the performance and value of a property, including local economic conditions prevailing in the area where the property is located, macroeconomic conditions in Argentina and globally, competition, our ability to find lessees and their ability to perform on their leases, changes in legislation and in governmental regulations (such as the use of properties, urban planning and real estate taxes) as well as exchange controls (given that the real estate market in Argentina relies on the U.S. dollar to determine valuations), variations in interest rates (including the risk of an increase in interest rates that reduces sales of lots for residential development) and the availability of third party financing. In addition and given the relative illiquidity of the Argentine real estate market, we could be unable to effectively respond to adverse market conditions and/or be compelled to undersell one or more properties. Some significant expenses, such as debt service, real estate taxes and operating and maintenance costs do not fall when there are circumstances that reduce the revenue from an investment, increasing our relative expenditures. These factors and events could impair our ability to respond to adverse changes in the returns on the Company’s investments, which in turn could have an adverse effect on our financial position and the results of the Company’s operations.

Our level of debt may adversely affect our operations and our ability to pay our debt as it becomes due and our capacity to successfully access the local and international markets on favorable terms affects our cost of funding.

As of June 30, 2022, our consolidated financial gross debt amounted to ARS 74,734 million. We cannot assure you that we will have sufficient cash flows and adequate financial capacity to finance our business in the future. Although we are generating sufficient funds from our operating cash flows to meet our debt service obligations and our ability to obtain new financing is adequate, considering the current availability of loan financing in Argentina, we cannot assure you that we will have sufficient cash flows and adequate financial structure in the future. For more information see “Item 10. Additional Information—D. Exchange Controls.”

Our leverage may affect our ability to refinance existing debt or borrow additional funds to finance working capital requirements, acquisitions and capital expenditures. In addition, the recent disruptions in the local capital and the macroeconomic conditions of Argentine markets, may adversely impact our ability to refinance existing debt and the availability and cost of credit in the future. In such conditions, access to equity and debt financing options may be restricted and it may be uncertain how long these economic circumstances may last. This would require us to allocate a substantial portion of cash flow to repay principal and interest, thereby reducing the amount of money available to invest in operations, including acquisitions and capital expenditures. Furthermore, our, leverage could also affect our competitiveness and limit our ability to pay our debt due to changes in market conditions, changes in the real estate industry and/or future economic downturns.

The success of our businesses and the feasibility of our transactions depend on the continuity of investments in the real estate markets and our ability to access capital and debt financing. In the long term, lack of confidence in real estate investment and lack of access to credit for acquisitions could restrict growth. As part of our business strategy, we will strive to increase our real estate portfolio through strategic acquisitions of properties at favorable prices and properties with added value which we believe meet the requirements to increase the value of our properties.

24

We may not be able to generate sufficient cash flows from operations to satisfy our debt service requirements or to obtain future financing. If we cannot satisfy our debt service requirements or if we default on any financial or other covenants in our debt arrangements, the lenders and/or holders of our securities will be able to accelerate the maturity of such debt or default under other debt arrangements. Our ability to service debt obligations or to refinance them will depend upon our future financial and operating performance, which will, in part, be subject to factors beyond our control such as macroeconomic conditions and regulatory changes in Argentina. If we cannot obtain future financing, we may have to delay or abandon some or all of our planned capital expenditures, which could adversely affect our ability to generate cash flows and repay our obligations as they become due.

For more information see “Operating and Financial Review and Prospects—Liquidity and capital resources—Indebtedness”.

Our assets are highly concentrated in certain geographic areas and an economic downturn in such areas could have a material adverse effect on our results of operations and financial condition.

As of June 30, 2022, most of our revenue from leases and services provided by the Shopping Malls segment derived from properties located in the City of Buenos Aires and the Greater Buenos Aires metropolitan area. In addition, all of the Company’s office buildings are located in Buenos Aires and a substantial portion of our revenue is derived from such properties. Although we own properties and may acquire or develop additional properties outside Buenos Aires and the Greater Buenos Aires metro area, we expect to continue to be largely affected by economic conditions or by pandemic effects which could affect these high populated areas. Consequently, an economic downturn in those areas could cause a reduction in our rental income and adversely affect its ability to comply with the Company’s debt service and fund operations.

The Company’s performance is subject to the risks associated with our properties and with the real estate industry.

Our operating performance and the value of our real estate assets, and as a result, the value of its securities, are subject to the risk that its properties may not be able to generate sufficient revenue to meet its operating expenses, including debt service and capital expenditures, its cash flow needs and its ability to service our debt service obligations. Events or conditions beyond its control that may adversely affect its operations or the value of its properties include:

· downturns in national, regional and local economies;

· decrease in consumer spending and consumption;

· competition from other shopping malls and sales outlets;

· local real estate market conditions, such as oversupply or lower demand for retail space;

· changes in interest rates and availability of financing;

· the exercise by our tenants of their right to early termination of their leases;

· vacancies, changes in market rental rates and the need to periodically repair, renovate and re-lease space;

· increased operating costs, including insurance expenses, salary increases, utilities, real estate taxes, federal and local taxes and higher security costs;

25

· the impact of losses resulting from civil disturbances, strikes, natural disasters, terrorist acts or acts of war;

· significant fixed expenditures associated with each investment property, such as debt service payments, real estate taxes, insurance and maintenance costs;

· declines in the financial condition of our tenants and our ability to collect rents when due;

· changes in our or our tenants’ ability to provide for adequate maintenance and insurance that result in a reduction in the useful life of a property; and

· changes in law or governmental regulations (such as those governing usage, zoning and real property taxes) or changes in the exchange controls or government action (such as expropriation).

If any one or more of the foregoing conditions were to affect the Company’s activities, this could have a material adverse effect on our financial condition and results of operations, and as a result, on the Company’s results.

An adverse economic environment for real estate companies and the credit crisis may adversely affect the Company’s results of operations.

The success of the Company’s business and profitability of its operations depend on continued investment in real estate and access to long-term financing. A prolonged crisis of confidence in real estate investments and lack of credit for acquisitions may constrain our growth and the maintenance of our current business and operations. As part of the Company’s strategy, we intend to increase our properties portfolio through strategic acquisitions at favorable prices, where we believe the Company can bring the necessary expertise to enhance property values. In order to pursue acquisitions, we may require capital or debt financing. Recent disruptions in the financial markets may adversely impact the Company’s ability to refinance existing debt and the availability and cost of credit in the future. Any consideration of sales of existing properties or portfolio interests may be offset by lower property values. Our ability to make scheduled payments or to refinance the Company’s existing debt obligations depends on our operating and financial performance, which in turn is subject to prevailing economic conditions. If disruptions in financial markets prevail or arise in the future, we cannot provide assurances that Argentine government responses to such disruptions will restore investor confidence, stabilize the markets or increase liquidity and the availability of credit.

The Company’s revenue and profit may be materially and adversely affected by continuing inflation and economic activity in Argentina.

The Company’s business is mainly driven by consumer spending since a portion of the revenue from its Shopping Mall segment derives directly from the sales of our tenants, whose revenue relies on the sales to consumers. As a result, the Company’s revenues and net income are impacted to a significant extent by economic conditions in Argentina, including the development in the textile industry and domestic consumption, which has experienced significant decline during 2019, 2020 and 2021. Consumer spending is influenced by many factors beyond our control, including consumer perception of current and future economic conditions, inflation, political uncertainty, rates of employment, interest rates, taxation and currency exchange rates. Any continuing economic slowdown, whether actual or perceived, could significantly reduce domestic consumer spending in Argentina and therefore adversely affect our business, financial condition and results of operations.

The loss of tenants could adversely affect our operating revenue and value of our properties.

Although no single tenant represents more than 4.3% of the Company’s revenues in any fiscal year, if a significant number of tenants at its retail or office properties were to experience financial difficulties, including bankruptcy, insolvency or a general downturn of business, or if we failed to retain them, our business could be adversely affected. Further, the Company’s shopping malls typically have a significant “anchor” tenant, such as well-known department stores, that generate consumer traffic at each mall. A decision by such tenants to cease operating at any of our shopping mall properties could have a material adverse effect on our financial condition and the results of our operations. In addition, the closing of one or more stores that attract consumer traffic may motivate other tenants to terminate or to not renew their leases, to seek rent concessions and/or close their stores. Moreover, tenants at one or more properties might terminate their leases as a result of mergers, acquisitions, consolidations, dispositions or bankruptcies. The bankruptcy and/or closure of multiple stores, if we are not able to successfully release the affected space, could have a material adverse effect on both the operating revenue and underlying value of the properties involved. See “Item 5.A. Operating Results – The Ongoing COVID-19 Pandemic.”

26

We may face risks associated with acquisitions of properties, our future acquisitions may not be profitable and the properties we acquire may be subject to unknown liabilities.

As part of the Company’s growth strategy, we have acquired, and intend to do so in the future, properties, including large properties (such as Edificio República, Abasto de Buenos Aires and Alto Palermo Shopping), that tend to increase the size of our operations and potentially alter our capital structure. Although we believe that the acquisitions we have completed in the past and that we expect to undertake enhance the Company’s financial performance, the success of such transactions is subject to a number of uncertainties, including the risk that:

· We may not be able to obtain financing for acquisitions on favorable terms;

· acquired properties may fail to perform as expected;

· the actual costs of repositioning or redeveloping acquired properties may be higher than the Company’s estimates;

· acquired properties may be located in new markets where we may have limited knowledge and understanding of the local economy, absence of business relationships in the area or are unfamiliar with local governmental and permitting procedures; and

· We may not be able to efficiently integrate acquired properties, particularly portfolios of properties, into the Company’s organization and to manage new properties in a way that allows it to realize cost savings and synergies.

The Company’s future acquisitions may not be profitable.

We seek to acquire additional shopping malls to the extent we manage to acquire them on favorable terms and conditions and they meet our investment criteria. Acquisitions of commercial properties entail general investment risks associated with any real estate investment, including:

· the Company’s estimates of the cost of improvements needed to bring the property up to established standards for the market may prove to be inaccurate;

· properties we acquire may fail to achieve, within the time frames we project, the occupancy or rental rates we expect to achieve at the time we make the decision to acquire, which may result in the properties’ failure to achieve the returns we projected;

· the Company’s pre-acquisitions evaluation and the physical condition of each new investment may not detect certain defects or identify necessary repairs, which could significantly increase our total acquisition costs; and

· the Company’s investigation of a property or building prior to its acquisition, and any representations we may receive from the seller of such building or property, may fail to reveal various liabilities, which could reduce the cash flow from the property or increase our acquisition cost.

If we acquires a business, we will be required to merge and integrate the operations, personnel, accounting and information systems of such acquired business. In addition, acquisitions of or investments in companies may cause disruptions in our operations and divert management’s attention away from day-to-day operations, which could impair our relationships with our current tenants and employees.

27

The properties we acquire may be subject to unknown liabilities.

The properties that we acquire may be subject to unknown liabilities, in respect to which we may have limited or no recourse to the former owners. If a liability were asserted against us based on the Company’s ownership of an acquired property, we may be required to incur significant expenditures to settle, which could adversely affect the Company’s financial results and cash flow. Unknown liabilities relating to acquired properties could include:

· liabilities for clean-up of undisclosed environmental contamination;

· the costs of changes in laws or in governmental regulations (such as those governing usage, zoning and real property taxes); and

· liabilities incurred in the ordinary course of business.

The Company’s dependence on rental income may adversely affect our ability to meet the Company’s debt obligations.

A substantial part of our revenue is derived from rental income. As a result, our performance depends on our ability to collect rent from the Company’s tenants. Our revenue and profits would be negatively affected if a significant number of our tenants or any significant tenant were to:

· delay lease commencements;

· decline to extend or renew leases upon expiration;

· fail to make rental payments when due; or

· close stores or declare bankruptcy.

Any of these actions could result in the termination of leases and the loss of related rental income. In addition, we cannot assure you that any tenant whose lease expires will renew that lease or that we will be able to re-let the space on economically reasonable terms. The loss of rental revenue from a number of our tenants and the Company’s inability to replace such tenants may adversely affect our profitability and its ability to comply with our debt service obligations. These factors are particularly disruptive in the context of emergency situations, such as the COVID-19 pandemic, which has caused significant adverse impacts on our business as tenants have been required to shut down or significantly reduce their operating activities.

It may be difficult to buy and sell real estate quickly and transfer restrictions may apply to part of the Company’s portfolio of properties.

Real estate investments are relatively illiquid and this tends to limit our ability to change the mix of the Company’s portfolio in response to economic circumstances or other conditions. In addition, significant expenditures associated with each investment, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when an investment generates lower revenue. If revenue from a property declines while expenses remain the same, our results of operations would be adversely affected. Certain properties are mortgaged and if we were unable to meet our underlying payment obligations, we could suffer losses as a result of foreclosures on those mortgaged properties. Furthermore, if we are required to dispose of one or more of our mortgaged properties, we would not be able to obtain release of the mortgage interest without payment of the associated debt. The foreclosure of a mortgage on a property or inability to sell a property could adversely affect our business. In this kind of transactions, we may agree not to sell the acquired properties for a considerable time which could affect our results of operations.

28

Some of the land we have purchased is not zoned for development and we may be unable to obtain, or may face delays in obtaining, the necessary zoning permits and other authorizations.

We own several plots of land which are not zoned for our intended development plans. In addition, we have not yet applied for the required land-use, building, occupancy and other required governmental permits and authorizations for these properties. We cannot assure you that we will continue to be successful in our attempts to rezone land and to obtain all necessary permits and authorizations, or that rezoning efforts and permit requests will not be delayed or rejected. Moreover, we may be affected by building moratorium and anti-growth legislation. If we are unable to obtain the governmental permits and authorizations we need to develop our present and future projects as planned, then we may be forced to make unwanted modifications to such projects or abandon them altogether.

We may face risks associated with land-takings in Argentina.

Land-taking is a long-standing problem in Argentina that has escalated throughout the years with every economic crisis, especially now in the context of the COVID-19 economic crisis.

The spread of land takes has revived in Argentina an old debate in Argentina. There is a conflict between two groups that claim, on the one hand, a right to decent housing, and on the other hand a group that claims that the right to private property should be respected Argentina’s constant and cyclical economic crises over the past 50 years have also caused poverty to rise sharply, so less people can access a roof, resulting in a housing deficit

As a consequence, we cannot provide assurance that Argentine government responses to such disruptions will restore investor confidence in Argentine lands, which could have an adverse impact on our financial condition and results of operations.

The Company’s ability to grow will be limited if we cannot obtain additional financing.

Although the Company is liquid as of the date of this Annual Report, we must maintain liquidity to fund our working capital, service our outstanding indebtedness and finance investment opportunities. Without sufficient liquidity, we could be forced to curtail our operations or we may not be able to pursue new business opportunities.

The Company’s growth strategy is focused on the development and redevelopment of properties we already own and the acquisition of additional properties for development. As a result, we are likely to have to depend to an important degree on the availability of capital financing, which may or may not be available on favorable terms if at all. We cannot assure you that additional financing, refinancing or other capital will be available in the amounts we require or on favorable terms. The Company’s access to debt or equity capital markets depends on a number of factors, including the market’s perception of the Company’s growth potential, its ability to pay dividends, financial condition credit rating and our current and potential future earnings. Depending on these factors, we could experience delays or difficulties in implementing the Company’s growth strategy on satisfactory terms or at all.

The capital and credit markets for Argentina have been experiencing extreme volatility and disruption since the last years. If the Company’s current resources do not satisfy our liquidity requirements, we may have to seek additional financing. The availability of financing will depend on a variety of factors, such as economic and market conditions, the availability of credit and our credit ratings, as well as the possibility that lenders could develop a negative perception of the prospects of risk in Argentina, of our company or the industry generally. We may not be able to successfully obtain any necessary additional financing on favorable terms, or at all.

Adverse incidents that occur in the Company’s shopping malls may result in damage to our reputation and a decrease in the number of customers.

Given that the Company’s shopping malls are open to the public, with ample circulation of people, accidents, theft, robbery, public protest, pandemic effects and other incidents may occur in our facilities, regardless of the preventative measures we adopt. If such an incident or series of incidents occurs, shopping mall customers and visitors may choose to visit other shopping venues that they believe are safer, which may cause a reduction in the sales volume and operating income of our shopping malls.

29

Argentine laws governing leases impose restrictions that limit the Company’s flexibility.

Argentine laws governing leases impose certain restrictions, including the following:

· a prohibition on including automatic price adjustment clauses based on inflation increases in leases; and

· the imposition of a two-year minimum lease term for all purposes, except in particular cases such as embassy, consulate or international organization venues, room with furniture for touristic purposes for less than three months, custody and bailment of goods, exhibition or offering of goods in fairs or in cases where due to the circumstances, the subject matter of the lease requires a shorter term.

As a result, we are exposed to the risk of higher rates of inflation under the Company’s leases, and any exercise of rescission rights by our tenants could materially and adversely affect our business and results of operations. We cannot assure you that the Company’s tenants will not exercise such right, especially if rental rates stabilize or decline in the future or if economic conditions continue to deteriorate.

We may be liable for certain defects in the Company’s buildings.

The Argentine Civil and Commercial Code imposes liability for real estate developers, builders, technical project managers and architects in case of hidden defects in a property for a period of three years from the date title on the property is tendered to the purchaser, even when those defects did not cause significant property damage. If any defect affects the structural soundness or make the property unfit for use, the liability term is ten years.

In the Company’s real estate developments, we usually act as developers and sellers while construction generally is carried out by third party contractors. Absent a specific claim, we cannot quantify the potential cost of any obligation that may arise as a result of a future claim, and we have not recorded provisions associated with them in our financial statements. If we were required to remedy any defects on completed works, our financial condition and results of operations could be adversely affected.

We could have losses if we have to resort to eviction proceedings in Argentina to collect unpaid rent because such proceedings are complex and time-consuming.

Although Argentine law permits filing of an executive proceeding to collect unpaid rent and a special proceeding to evict tenants, eviction proceedings in Argentina are complex and time-consuming. Historically, the heavy workloads of the courts and the numerous procedural steps required have generally delayed landlords’ efforts to evict tenants. Eviction proceedings generally take between six months and two years from the date of filing of the suit to the time of actual eviction.

Historically, we have sought to negotiate the termination of leases with defaulting tenants after the first few months of non-payment in an effort to avoid legal proceedings. Delinquency may increase significantly in the future, and such negotiations with tenants may not be as successful as they have been in the past. Moreover, new Argentine laws and regulations may forbid or restrict eviction, and in each such case they would likely have a material and adverse effect on our financial condition and results of operations.

Climate change may have adverse effects on our business

We, our customers, and communities in which we operate, may be adversely affected by the physical risks of climate change, including increases in temperatures, sea levels, and the frequency and severity of adverse climatic events including fires, storms, floods and droughts. These effects, whether acute or chronic in nature, may directly impact us and our customers through disruptions to business and economic activity or impacts on income and asset values.

30

Initiatives to mitigate or respond to climate change may impact market and asset prices, economic activity, and customer behavior, particularly in emissions intensive industry sectors and geographies affected by these changes.

Failure to effectively manage and disclose these risks could adversely affect our business, prospects, reputation, financial performance or financial condition.

The recurrence of a credit crisis could have a negative impact on the Company’s major customers, which in turn could materially adversely affect our results of operations and liquidity.

The global credit crisis has a significant negative impact on businesses around the world. Similarly, Argentina is undergoing a credit crisis that could negatively impact the Company’s tenants’ ability to comply with their lease obligations. The impact of a future credit crisis on the Company’s major tenants cannot be predicted and may be quite severe. A disruption in the ability of the Company’s significant tenants to access liquidity could pose serious disruptions or an overall deterioration of their businesses, which could lead to a significant reduction in future orders of their products and their inability or failure to comply with their obligations, any of which could have a material adverse effect on our results of operations and liquidity.

We are subject to risks inherent to the operation of office buildings that may affect the Company’s profitability.

Office buildings are exposed to various factors that may affect their development, administration and profitability, including the following factors:

· lower demand for office space;

· a deterioration in the financial condition of our tenants that causes defaults under leases due to lack of liquidity, access to capital or for other reasons;

· difficulties or delays renewing leases or re-leasing space;

· decreases in rents as a result of oversupply, particularly offerings at newer or re-developed properties;

· competition from developers, owners and operators of office properties and other commercial real estate, including sublease space available from our tenants;

· maintenance, repair and renovation costs incurred to maintain the competitiveness of our office buildings;

· exchange controls that may interfere with their ability to pay rents that generally are pegged to the U.S. dollar;

· the consequences of a pandemic, epidemic or disease outbreak that would produce lower demand for offices spaces; and

· an increase in our operating costs, caused by inflation or by other factors could have a material adverse effect on us if our tenants are unable to pay higher rent as a result of increased expenses.

31

The Company’s investment in property development and management activities may be less profitable than we anticipate.

We are engaged in the development and construction of properties to be used for office, residential or commercial purposes, shopping malls and residential complexes, in general through third-party contractors. Risks associated with our development, reconversion and construction activities include the following, among others:

· abandonment of development opportunities and renovation proposals;

· construction costs may exceed our estimates for reasons including higher interest rates or increases in the cost of materials and labor, making a project unprofitable;

· occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, resulting in lower than projected rental revenue and a corresponding lower return on our investment;

· pre-construction buyers may default on their purchase contracts or units in new buildings may remain unsold upon completion of construction;

· lack of affordable financing alternatives in the private and public debt markets;

· sale prices of residential units may be insufficient to cover development costs;

· construction and lease commencements may not be completed on schedule, resulting in increased debt service expense and construction costs;

· failure or delays in obtaining necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, or building moratoria and anti-growth legislation;

· significant time lags between the commencement and completion of projects subjects us to greater risks due to fluctuation in the general economy;

· construction may be delayed because of a number of factors, including weather, strikes or delays in receipt of zoning or other regulatory approvals, or man-made or natural disasters, resulting in increased debt service expense and construction costs;

· changes in our tenants’ demand for rental properties outside of Buenos Aires; and

· We may incur capital expenditures that require considerable time and effort and which may never be completed due to government restrictions or overall market conditions.

In addition, we may face claims for the enforcement of labor laws in Argentina. Many companies hire personnel from third parties that provide outsourced services, and sign indemnity agreements if labor claims from employees of such third company arise. However, in recent years several courts have rejected the existence of independence in those labor relations and ruled that joint and several responsibilities by both companies.

While the Company’s policies with respect to expansion, renovation and development activities are intended to limit some of the risks otherwise associated with such activities, we are nevertheless subject to risks associated with property development, such as cost overruns, design changes and timing delays arising from a lack of availability of materials and labor, weather conditions and other factors outside of our control, as well as financing costs that, may exceed original estimates, possibly making the associated investment unprofitable. Any delays or unanticipated expenses could adversely affect the investment returns from these development projects and harm our operating results.

Greater than expected increases in construction costs could adversely affect the profitability of the Company’s new developments.

The Company’s businesses activities include real estate developments. One of the main risks related to this activity corresponds to potential increases in constructions costs, which may be driven by higher demand and new development projects in the shopping malls and buildings sectors. Increases higher than those included in the original budget may result in lower profitability than expected.

32

The increasingly competitive real estate sector in Argentina may adversely affect our ability to rent or sell office space and other real estate and may affect the sale and lease price of our premises.

The Company’s real estate activities are highly concentrated in the Buenos Aires metropolitan area where the market is highly competitive due to a scarcity of properties in sought-after locations and an increasing number of local and international competitors. The Argentine real estate industry is highly competitive and fragmented and does not have high barriers to entry for new competitors. The main competitive factors in the real estate development business include availability and location of land, price, funding, design, quality, reputation and partnerships with developers. A number of residential and commercial developers and real estate service companies compete in identifying land acquisition opportunities, attracting financial resources, and appealing to prospective purchasers and tenants. Other companies, including joint ventures of foreign and local companies, have become increasingly active in the market, further increasing competition. If one or more of our competitors is able to acquire and develop desirable properties, because it has access to greater financial resources or otherwise, if we are unable to respond to such pressures as promptly as our competitors, or competition increases, our business and financial condition could be adversely affected.

All of the Company’s shopping mall and commercial office properties are located in Argentina. There are other shopping malls and independent retail stores and residential properties that are within the geographic scope of each of our properties. The number of competing properties in a particular area could have a material adverse effect both on our ability to lease retail space in our shopping malls or sell units in our residential complexes and on the amount of rent or the sale price that we are able to charge. We cannot assure you that other shopping mall operators will not invest in Argentina in the near future. If additional competitors become active in the shopping mall segment, such competition could have a material adverse effect on our results of operations.

Substantially all of the Company’s offices and other non-shopping mall rental properties are located in developed urban areas. There are many office buildings, shopping malls, retail and residential premises in the areas where the Company’s properties are located. This is a highly fragmented market, and the abundance of comparable properties in our vicinity may adversely affect our ability to rent or sell office space and other real estate and may affect the sale and lease price of our premises. In the future, both national and foreign companies may participate in Argentina’s real estate development market, competing with us for business opportunities.

Some potential losses are not covered by insurance and certain kinds of insurance coverage may become prohibitively expensive.

We currently carry insurance policies that cover potential risks such as civil liability, fire, lost profit and floods, including extended coverage and losses from leases on all of the Company’s properties. Although we believe the policy specifications and insured limits of these policies are customary, there are certain types of losses, such as lease and other contract claims, terrorism and acts of war that generally are not insured under the insurance policies offered in Argentina. In the event of a loss that was not insured or a loss in excess of insured limits, we could lose all or a portion of the capital we have invested in a property, as well as its anticipated future revenue. In such an event, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the property. We cannot assure you that material losses in excess of insurance proceeds will not occur in the future. If any of the Company’s properties were to experience a catastrophic loss, it could seriously disrupt our operations, delay revenue and result in large expenses to repair or rebuild the property. Insurance companies may no longer offer coverage against certain types of losses, such as losses due to terrorist acts and the existence of mold, or, if offered, these types of insurance may become too expensive.

We do not have life or disability insurance for our key employees. If any of our key employees were to die or become disabled, we could experience losses caused by a disruption in our operations which will not be covered by insurance, and this could have a material adverse effect on our financial condition and results of operations.

33

An uninsured loss or a loss that exceeds policies on the Company’s properties could subject us to lost capital or revenue on those properties.

The terms of our standard form property leases currently in effect, require tenants to indemnify and hold us harmless from liabilities resulting from injury to persons or property at or outside the premises, due to activities conducted on the properties, except for claims arising from negligence or intentional misconduct of the Company’s agents. Tenants are generally required, at the tenant’s expense, to obtain and keep in full force during the term of the lease, liability insurance policies. We cannot provide assurance that the Company’s tenants will be able to properly maintain their insurance policies or have the ability to pay deductibles. If an uninsured loss occurs or a loss arises that exceeds the combined aggregate limits for the policies, or if a loss arises that is subject to a substantial deductible under an insurance policy, we could lose all or part of the Company’s capital invested in, and anticipated revenue from, one or more of the Company’s properties, which could have a material adverse effect on our business, financial condition and results of operations.

Demand for our premium properties, aimed at high-income consumers, may not be sufficient.

We have focused on development projects that cater to affluent consumers and have entered into property barter arrangements pursuant to which we contributed undeveloped land parcels to joint venture entities with developers who agree to deliver units at premium development locations in exchange for the Company’s land contribution. When the developers return these properties to us, demand for premium residential units could be significantly lower. In such case, we would be unable to sell these residential units at the estimated prices or time frame, which could have an adverse effect on the Company’s financial condition and results of operations.

The Company is subject to risks affecting the hotel industry.

The full-service segment of the lodging industry in which our hotels operate is highly competitive. The operational success of our hotels is highly dependent on our ability to compete in areas such as access, location, quality of accommodations, rates, quality food and beverage facilities and other services and amenities. The Company’s hotels may face additional competition if other companies decide to build new hotels or improve their existing hotels to increase their attractiveness.

In addition, the profitability of our hotels depends on:

· our ability to form successful relationships with international and local operators to run our hotels;

· changes in tourism and travel trends, including seasonal changes and changes due to pandemic outbreaks, such as the Influenza A Subtype H1N1 and Zika viruses, a potential Ebola outbreak, COVID-19, monkeypox, among others, or weather phenomenons or other natural events, such as the eruption of the Puyehué and the Calbuco volcano in June 2011 and April 2015, respectively;

· affluence of tourists, which can be affected by a slowdown in global economy; and

· taxes and governmental regulations affecting wages, prices, interest rates, construction procedures and costs.

The shift by consumers to purchasing goods over the internet, where barriers to entry are low, may negatively affect sales at our shopping malls.

In recent years, internet retail sales have grown significantly in Argentina, even though the market share of such sales is still modest. The Internet enables manufacturers and retailers to sell directly to consumers, diminishing the importance of traditional distribution channels such as retail stores and shopping malls. We believe that our target consumers are increasingly using the Internet, from home, work or elsewhere, to shop electronically for retail goods, and this trend is likely to continue. Retailers at the Company’s properties face increasing competition from online sales and this could cause the termination or non-renewal of their leases or a reduction in their gross sales, affecting our percentage rent based revenue. If e commerce and retail sales through the Internet continue to grow, retailers’ and consumers’ reliance on our shopping malls could be materially diminished, having a material adverse effect on our financial condition, results of operations and business prospects. For more information with respect to the COVID-19 pandemic and its impact on our business, see “Item 5.A. Operating Results – The Ongoing COVID-19 Pandemic.”

34

The Company’s business is subject to extensive regulation and additional regulations may be imposed in the future.

Our activities are subject to Argentine federal, state and municipal laws, and to regulations, authorizations and licenses required with respect to construction, zoning, use of the soil, environmental protection and historical landmark preservation, consumer protection, antitrust and other requirements, all of which affect the Company´s ability to acquire land, buildings and shopping malls, develop and build projects and negotiate with customers. In addition, companies in this industry are subject to increasing tax rates, the introduction of new taxes and changes in the taxation regime. We are required to obtain permits from different government agencies in order to carry out our projects. Maintaining the Company’s licenses and authorizations can be costly. If we fail to comply with such laws, regulations, licenses and authorizations, we may face fines, project shutdowns, and cancellation of licenses and revocation of authorizations.

In addition, public agencies may issue new and stricter standards, or enforce or construe existing laws and regulations in a more restrictive manner, which may force us to incur expenditures in order to comply. Development activities are also subject to risks of potential delays in or an inability to obtain all necessary zoning, environmental, land-use, development, building, occupancy and other permits and authorizations. Any such delays or failures to obtain such government approvals may have an adverse effect on our business.

In the past, the Argentine government issued regulations regarding leases in response to housing shortages, high rates of inflation and difficulties in accessing credit. Such regulations limited or prohibited increases on rental prices and prohibited eviction of tenants, even for failure to pay rent. Most of the Company’s leases provide that tenants pay all costs and taxes related to their respective leased areas. In the event of a significant increase in such costs and taxes, the Argentine government may respond to political pressure to intervene by regulating this practice, thereby negatively affecting our rental income. We cannot assure you that the Argentine government will not impose similar or other regulations in the future. Changes in existing laws or the enactment of new laws governing the ownership, operation or leasing of shopping malls and office properties in Argentina could negatively affect the real estate and the rental market and materially and adversely affect our operations and financial condition.

Labor relations may negatively impact the Company.

As of June 30, 2022, 64.0% of our workforce was represented by unions under collective bargaining agreements. Although we currently enjoy good relations with our employees and their unions, we cannot assure you that labor relations will continue to be positive or that deterioration in labor relations will not materially and adversely affect us.

The results of our operations include unrealized revaluation adjustments on investment properties, which may fluctuate significantly over financial periods and may materially and adversely affect our business, results of operations and financial condition.

During the year ended June 30, 2022, we had fair value gain on investment properties of ARS 13,650 million. Although the upward or downward revaluation adjustments reflect unrealized capital gains or losses on our investment properties during the relevant periods, the adjustments do not reflect the actual cash flow or profit or losses generated from the sales or rental of our investment properties. Unless such investment properties are disposed of at similarly revalued amounts, we will not realize the actual cash flow. The amount of revaluation adjustments has been, and will continue to be, significantly affected by the prevailing property markets and macroeconomic conditions prevailing in Argentina and will be subject to market fluctuations in those markets.

We cannot guarantee whether changes in market conditions will increase, maintain or decrease the historical average fair value gains on our investment properties or at all. In addition, the fair value of our investment properties may materially differ from the amount we receive from any actual sale of an investment property. If there is any material downward adjustment in the revaluation of our investment properties in the future or if our investment properties are disposed of at significantly lower prices than their valuation or appraised value, our business, results of operations and financial condition may be materially and adversely affected.

35

Due to the currency mismatches between our assets and liabilities, we have a high currency exposure.

As of June 30, 2022, the majority of our liabilities, such as our Series I, V, VII, VIII, IX, XI, XII and XIII, were denominated in U.S. dollars (as well as Series XIV Notes, which was issued on July 8, 2022) while the Company’s revenues are mainly denominated in Pesos. This currency gap mainly affects our operational flows to pay interests of our U.S. dollar denominated debt, considering our assets are transacted in U.S dollars.  In addition, restrictions to access to MULC to acquire the required U.S. dollars to pay our U.S. dollar denominated debt or future regulations that may be enacted establishing a different exchange rate (higher than the current official exchange rate) to convert the Pesos into U.S. dollars  exposes us to a risk of volatility, which may adversely affect our financial results if the U.S. dollar appreciates against the Peso and may affected our ability to pay interests of our U.S. dollar denominated debt. Any depreciation of the Peso against the U.S. dollar increases the nominal amount of our debt in Pesos, which further adversely affects the results of the Company’s operations and financial conditions and may increase the collection risk of our leases and other receivables from our tenants and mortgages, most of which generate Peso denominated revenue

The Company issues debt in the local and international capital markets as one of its main sources of funding and its capacity to successfully access the local and international markets on favorable terms affects its cost of funding.

The Company’s ability to successfully access the local and international capital markets on acceptable terms depends largely on capital markets conditions prevailing in Argentina and internationally. We have no control over capital markets conditions, which can be volatile and unpredictable. If we are unable to issue debt in the local and/or international capital markets and on terms acceptable to the Company, whether as a result of regulations and foreign exchange restrictions, a deterioration in capital markets conditions or otherwise, we would likely be compelled to seek alternatives for funding, which may include short-term or more expensive funding sources. If this were to happen, we may be unable to fund our liquidity needs at competitive costs and its business results of operations and financial condition may be materially and adversely affected.

Property ownership through joint ventures or investees may limit our ability to act exclusively in our interest.

We develop and acquire properties in joint ventures with other persons or entities or make minority investments in entities when we believe circumstances warrant the use of such structures.

As of June 30 2022, the Company owns 50% of Quality Invest S.A. In the Sales and Developments segment, 50% of the equity of Puerto Retiro and 50% of the equity of Cyrsa S.A. In the Hotel segment, the Company owns 50% of the equity of Hotel Llao Llao and the other 50% is owned by the Sutton Group.

In addition, we hold approximately 29.91% of the equity of Banco Hipotecario, of which the Argentine government is the controlling shareholder.

We could engage in a dispute with one or more of its joint venture partners or controlling shareholder in an investment that might affect its ability to operate a jointly-owned property. Moreover, its joint venture partners or controlling shareholder in an investment may, at any time, have business, economic or other objectives that are inconsistent with its objectives, including objectives that relate to the timing and terms of any sale or refinancing of a property. For example, the approval of certain of its investors is required with respect to operating budgets and refinancing, encumbering, expanding or selling any of these properties. In some instances, its joint venture partners or controlling shareholder in an investment may have competing interests in their markets that could create conflicts of interest. If the objectives of its joint venture partners or controlling shareholder in an investment are inconsistent with our own objectives, we will not be able to act exclusively in our interests.

If one or more of the investors in any of its jointly owned properties were to experience financial difficulties, including bankruptcy, insolvency or a general downturn of business, there could be an adverse effect on the relevant property or properties and in turn, on our financial performance. Should a joint venture partner or controlling shareholder in an investment declare bankruptcy, we could be liable for its partner’s common share of joint venture liabilities or liabilities of the investment vehicle.

36

We are dependent on our Board of Directors senior management and other key personnel.

The Company’s success, to a significant extent, depends on the continued employment of Eduardo S. Elsztain and certain other members of our Board of Directors and senior management, who have significant expertise and knowledge of our business and industry. The loss or interruption of their services for any reason could have a material adverse effect on our business and results of operations. Our future success also depends in part upon our ability to attract and retain other highly qualified personnel. We cannot assure you that we will be successful in hiring or retaining qualified personnel, or that any of our personnel will remain employed by us, which may have a material adverse effect on our financial condition and results of operations.

We may face potential conflicts of interest relating to our principal shareholders.

Our largest beneficial owner is Mr. Eduardo S. Elsztain, according to his indirect shareholding through Cresud S.A.C.I.F. y A. As of June 30, 2022, such beneficial ownership consisted of 434,263,346 common shares held by Cresud S.A.C.I.F. y A. Conflicts of interest between our management and that of our related companies may arise in connection with the performance of their respective business activities. As of June 30, 2022, Mr. Eduardo S. Elsztain also beneficially owned (i) approximately 55.7% of our common shares. We cannot assure you that our principal shareholders and our affiliates will not limit or cause us to forego business opportunities that our affiliates may pursue or that the pursuit of other opportunities will be in our interest.

Risks Relating to our Investment in Banco Hipotecario

As of June 30, 2022, we owned approximately 29.91% of the outstanding capital stock of Banco Hipotecario S.A. (“Banco Hipotecario”). Banco Hipotecario’s assets as of such date were ARS 323,353.1 million. All of Banco Hipotecario’s operations, properties and customers are located in Argentina. Accordingly, the quality of Banco Hipotecario’s loan portfolio, financial condition and results of operations depend on economic, regulatory and political conditions prevailing in Argentina. These conditions include growth rates, inflation rates, exchange rates, changes to interest rates, changes to government policies, social instability and other political, economic or international developments either taking place in, or otherwise affecting, Argentina.

The short-term structure of the deposit base of the Argentine financial system, including Banco Hipotecario, could lead to a reduction in liquidity levels and limit the long-term expansion of financial intermediation.

Given the short-term structure of the deposit base of the Argentine financial system, credit lines are also predominantly short-term, with the exception of mortgages, which represent a low proportion of the existing credit base. Although liquidity levels are currently reasonable, no assurance can be given that these levels will not be reduced due to a future negative economic scenario. Therefore, there is still a risk of low liquidity levels that could increase funding cost in the event of a withdrawal of a significant amount of the deposit base of the financial system, and limit the long-term expansion of financial intermediation including Banco Hipotecario.

The growth and profitability of Argentina’s financial system partially depend on the development of long-term funding. During 2019, Central Bank reserves registered an abrupt fall mainly due to U.S. dollars sales by the Central Bank and the National Treasury to the private sector; cancellation of public debt; and outflow of dollar deposits from the private sector. As a consequence, there is a reduction of loans denominated in U.S. dollars. Since most deposits in the Argentine financial system are short-term, a substantial portion of the loans have the same or similar maturities, and there is a small portion of long-term credit lines. The uncertainty with respect to the level of inflation in future years is a principal obstacle to a faster recovery of Argentina’s private sector long-term lending. This uncertainty has had, and may continue to have a significant impact on both the supply of and demand for long-term loans as borrowers try to hedge against inflation risk by borrowing at fixed rates while lenders hedge against inflation risk by offering loans at floating rates. If longer-term financial intermediation activity does not grow, the ability of financial institutions, including Banco Hipotecario, to generate profits will be negatively affected.

37

Banco Hipotecario issues debt in the local and international capital markets as one of its sources of funding and its capacity to successfully access the local and international markets on favorable terms affects its cost of funding.

In recent years, Banco Hipotecario has diversified its financing sources by increasing deposits. Still, Banco Hipotecario remains having presence in the local and international capital markets. As of June 30, 2022, Banco Hipotecario’s financial indebtedness accounted for 12.6% of its financing. Likewise, as of June 30, 2022, the issuance of notes represented 5.04% of its total liabilities. The ability of Banco Hipotecario to successfully access the local and international capital markets and on acceptable terms depends largely on capital markets conditions prevailing in Argentina and internationally. Banco Hipotecario has no control over capital markets conditions, which can be volatile and unpredictable.

The stability of the financial system depends upon the ability of financial institutions, including Banco Hipotecario, to maintain and increase the confidence of depositors.

The measures implemented by the Argentine government in late 2001 and early 2002, in particular the restrictions imposed on depositors to withdraw money freely from banks and the “pesification” and restructuring of their deposits, were strongly opposed by depositors due to the losses on their savings and undermined their confidence in the Argentine financial system and in all financial institutions operating in Argentina.

If depositors once again withdraw their money from banks in the future, there may be a substantial negative impact on the manner in which financial institutions, including Banco Hipotecario, conduct their business, and on their ability to operate as financial intermediaries. Loss of confidence in the international financial markets may also adversely affect the confidence of Argentine depositors in local banks.

In the future, an adverse economic situation, even if it is not related to the financial system, could trigger a massive withdrawal of capital from local banks by depositors, as an alternative to protect their assets from potential crises. Any massive withdrawal of deposits could cause liquidity issues in the financial sector and, consequently, a contraction in credit supply.

The occurrence of any of the above could have a material and adverse effect on Banco Hipotecario’s expenses and business, results of operations and financial condition.

The asset quality of financial institutions is exposed to the non-financial public sector’s and Central Bank’s indebtedness.

Financial institutions carry significant portfolios of bonds issued by the Argentine government and by provincial governments as well as loans granted to these governments. The exposure of the financial system to the non-financial public sector’s indebtedness had been shrinking steadily, from 49.0% of total assets in 2002 to 15.3% as of June 30, 2022. To an extent, the value of the assets held by Argentine banks, as well as their capacity to generate income, is dependent on the creditworthiness of the non-financial public sector, which is in turn tied to the Argentine government’s ability to foster sustainable long-term growth, generate fiscal revenue and reduce public expenditure.

In addition, financial institutions currently carry securities issued by the Central Bank in their portfolios, which generally are short-term. As of June 30, 2022, such securities issued by the Central Bank represented approximately 28.6% of the total assets of the Argentine financial system. As of June 30, 2022, Banco Hipotecario’s total exposure to the public sector was ARS 48,977 million, which represented 26% of its assets as of that date, and the total exposure to securities issued by the Central Bank was ARS 97,165 million, which represented 51.8% of its total assets as of June 30, 2022.

38

The quality of Banco Hipotecario’s assets and that of other financial institutions may deteriorate if the Argentine private sector is affected by economic events in Argentina or international macroeconomic conditions.

The capacity of many Argentine private sector debtors to repay their loans has in the past deteriorated as a result of certain economic events in Argentina or macroeconomic conditions, materially affecting the asset quality of financial institutions, including Banco Hipotecario. The ratio of non-performing private sector loans has increased in recent years, as Argentina’s economic outlook deteriorated. Banco Hipotecario recorded non-performing loan ratios of 12.3%, 13.4% and 4.2% for June 30, 2020, 2021, and 2022, respectively. The quality of its loan portfolio is highly sensitive to economic conditions prevailing from time to time in Argentina, and as a result if Argentina were to experience adverse macroeconomic conditions, the quality of Banco Hipotecario’s loan portfolio and the recoverability of its loans would likely be adversely affected. This might affect the creditworthiness of Banco Hipotecario’s loan portfolio and the results of operations.

The Consumer Protection Law may limit some of the rights afforded to Banco Hipotecario.

Argentine Law No. 24,240 (the “Consumer Protection Law”) sets forth a series of rules and principles designed to protect consumers, which include Banco Hipotecario’s customers. The Consumer Protection Law was amended by Law No. 26,361 on March 12, 2008 to expand its applicability and the penalties associated with violations thereof. Additionally, Law No. 25,065 (as amended by Law No. 26,010 and Law No. 26,361, the “Credit Card Law”) also sets forth public policy regulations designed to protect credit card holders. Recent Central Bank regulations, such as Communication “A” 5,388, also protects consumers of financial services.

In addition, the Civil and Commercial Code has a chapter on consumer protection, stressing that the rules governing consumer relations should be applied and interpreted in accordance with the principle of consumer protection and that a consumer contract should be interpreted in the sense most favorable to it. The application of both the Consumer Protection Law and the Credit Card Law by administrative authorities and courts at the federal, provincial and municipal levels has increased. This trend has increased general consumer protection levels. If Banco Hipotecario is found to be liable for violations of any of the provisions of these laws, the potential penalties could limit some of Banco Hipotecario’s rights, for example, with respect to its ability to collect payments due from services and financing provided by us, and adversely affect Banco Hipotecario’s financial results of operations.

We cannot assure you that court and administrative rulings based on the newly-enacted regulation or measures adopted by the enforcement authorities will not increase the degree of protection given to Banco Hipotecario’s debtors and other customers in the future, or that they will not favor the claims brought by consumer groups or associations. This may prevent or hinder the collection of payments resulting from services rendered and financing granted by us, which may have an adverse effect on Banco Hipotecario’s business and results of operations.

Class actions against financial institutions for unliquidated amounts may adversely affect the financial system’s profitability.

Certain public and private organizations have initiated class actions against financial institutions in Argentina. The National Constitution and the Consumer Protection Law contain certain provisions regarding class actions. However, their guidance with respect to procedural rules for instituting and trying class action cases is limited. Nonetheless, through an ad hoc doctrine, Argentine courts have admitted class actions in some cases, including various lawsuits against financial entities related to “collective interests” such as alleged overcharging on products, interest rates and advice in the sale of public securities, etc. If class action plaintiffs were to prevail against financial institutions, their success could have an adverse effect on the financial industry in general and indirectly on Banco Hipotecario’s business.

39

Banco Hipotecario operates in a highly regulated environment and its operations are subject to capital controls regulations adopted by several regulatory agencies.

Financial institutions are subject to a major number of regulations concerning functions historically determined by the Central Bank and other regulatory authorities. The Central Bank may penalize Banco Hipotecario and its directors, members of the Executive Committee and members of its Supervisory Committee, in the event of any breach of the applicable regulation. Potential sanctions, for any breach on the applicable regulations may vary from administrative and/or disciplinary penalties to criminal sanctions. Similarly, the CNV, which authorizes securities offerings and regulates the capital markets in Argentina, has the authority to impose sanctions on us and Banco Hipotecario’s Board of Directors for breaches of corporate governance established in the capital markets laws and the CNV Rules. The Financial Information Unit (Unidad de Información Financiera, or “UIF” as per its acronym in Spanish) regulates matters relating to the prevention of asset laundering and has the ability to monitor compliance with any such regulations by financial institutions and, eventually, impose sanctions.

We cannot assure you whether such regulatory authorities will commence proceedings against Banco Hipotecario, its shareholders, directors or its Supervisory Committee, or penalize Banco Hipotecario. Banco Hipotecario has adopted “Know Your Customer” and other policies and procedures to comply with its duties under currently applicable rules and regulations.

In addition to regulations specific to the banking industry, Banco Hipotecario is subject to a wide range of federal, provincial and municipal regulations and supervision generally applicable to businesses operating in Argentina, including laws and regulations pertaining to labor, social security, public health, consumer protection, the environment, competition and price controls. We cannot assure you that existing or future legislation and regulation will not require material expenditures by Banco Hipotecario or otherwise have a material adverse effect on Banco Hipotecario’s consolidated operations.

The effects of legislation that restricts our ability to pursue mortgage foreclosure proceedings could adversely affect us.

The ability to pursue foreclosure proceedings through completion, in order to recover on defaulted mortgage loans, has an impact on financial institutions activities. On December 13, 2006, pursuant to Law No. 26,177, the “Restructuring Unit Law” was created to allow all mortgage loans to be restructured between debtors and the former Banco Hipotecario Nacional, insofar as such mortgages had been granted prior to the effectiveness of the Convertibility Law. Law No. 26,313, the “Pre-convertibility Mortgage Loans Restructuring Law,” was enacted by the Argentine Congress on November 21, 2007 and partially signed into law on December 6, 2007 to establish the procedure to be followed in the restructuring of mortgage loans within the scope of Section 23 of the Mortgage Refinancing System Law in accordance with the guidelines established by the Restructuring Unit Law. To this end, a recalculation was established for certain mortgage loans originated by the former Banco Hipotecario Nacional before April 1, 1991.

Executive Branch Decree No. 2,107/08 issued on December 19, 2008 regulated the Pre-convertibility Mortgage Loans Restructuring Law and established that the recalculation of the debt applies to the individual mortgage loans from global operations in effect on December 31, 2008 and agreed upon prior to April 1, 1991, and in arrears at least since November 2007 and remaining in arrears on December 31, 2008. In turn, the Executive Branch Decree No. 1,366/10, published on September 21, 2010, expanded the universe of Pre-convertibility loans subject to restructuring to include the individual mortgage loans not originating in global operations insofar as they met the other requirements imposed by Executive Branch Decree No. 2,107/08. In addition, Law No. 26,313 and its regulatory decrees also condoned the debts on mortgage loans granted before the Convertibility Law in so far as they had been granted to deal with emergency situations and in so far as they met the arrears requirement imposed on the loans subject to recalculation.

Subject to the Central Bank’s supervision, Banco Hipotecario implemented the recalculation of mortgage loans within the scope of the aforementioned rules by adjusting the value of the new installments to a maximum amount not in excess of 20% of household income. In this respect, we estimate that Banco Hipotecario has sufficient loan loss provisions to face any adverse economic impact on the portfolio involved. We cannot assure that the Argentine government will not enact additional laws restricting our ability to enforce our rights as a creditor and/or imposing a condition or a reduction of principal on the amounts unpaid in our mortgage loan portfolio. Any such circumstance could have a significant adverse effect on our financial condition and the results of our operations.

40

Increased competition and M&A activities in the banking industry may adversely affect Banco Hipotecario.

Banco Hipotecario foresees increased competition in the banking sector. If the trend towards decreasing spreads is not offset by an increase in lending volumes, the ensuing losses could lead to mergers in the industry. These mergers could lead to the establishment of larger, stronger banks with more resources than us. Therefore, although the demand for financial products and services in the market continues to grow, competition may adversely affect Banco Hipotecario’s results of operations, resulting in shrinking spreads and commissions.

Future governmental measures may adversely affect the economy and the operations of financial institutions.

The Argentine government has historically exercised significant influence over the economy, and financial institutions, in particular, have operated in a highly regulated environment. We cannot assure you that the laws and regulations currently governing the economy or the banking sector will remain unaltered in the future or that any such changes will not adversely affect Banco Hipotecario’s business, financial condition or results of operations and Banco Hipotecario’s ability to honor its debt obligations in foreign currency.

Several legislative bills to amend the Financial Institutions Law have been sent to the Argentine Congress. If the law currently in force were to be comprehensively modified, the financial system as a whole could be substantially and adversely affected. If any of these legislative bills were to be enacted or if the Financial Institutions Law were amended in any other way, the impact of the subsequent amendments to the regulations on the financial institutions in general, Banco Hipotecario’s business, its financial condition and the results of operations is uncertain.

Law No. 26,739 was enacted to amend the Central Bank’s charter, the principal aspects of which are: (i) to broaden the scope of the Central Bank’s mission (by establishing that such institution shall be responsible for financial stability and economic development while pursuing social equity); (ii) to change the obligation to maintain an equivalent ratio between the monetary base and the amount of international reserves; (iii) to establish that the Board of Directors of the institution will be the authority responsible for determining the level of reserves required to guarantee normal operation of the MULC based on changes in external accounts; and (iv) to empower the monetary authority to regulate and provide guidance on credit through the financial system institutions, so as to “promote long-term production investment.”

In addition, the Civil and Commercial Code, among other things, modifies the applicable regime for contractual provisions relating to foreign currency payment obligations by establishing that foreign currency payment obligations may be discharged in Pesos. This amends the legal framework, pursuant to which debtors may only discharge their foreign currency payment obligations by making payment in the specific foreign currency agreed upon in their agreements; provided however that the option to discharge in Pesos a foreign currency obligation may be waived by the debtor is still under discussion. However, in recent years some court decisions have established the obligation to pay in foreign currency when it was so freely agreed by the parties. We are not able to ensure that any current or future laws and regulations (including, in particular, the amendment to the Financial Institutions Law and the amendment to the Central Bank’s charter) will not result in significant costs to Banco Hipotecario, or will otherwise have an adverse effect on Banco Hipotecario’s operations.

Banco Hipotecario’s obligations as trustee of the Programa de Crédito Argentino del Bicentenario para la Vivienda Única Familiar (“PROCREAR”) trust are limited.

Banco Hipotecario currently acts as trustee of the PROCREAR Trust, which aims to facilitate access to housing solutions by providing mortgage loans for construction and developing housing complexes across Argentina. Under the terms and conditions of the PROCREAR Trust, all the duties and obligations under the trust have to be settled with the trust estate. Notwithstanding, if the aforementioned is not met, Banco Hipotecario could have its reputation affected. In addition, if the Argentine government decides to terminate the PROCREAR Trust and/or terminate Banco Hipotecario’s role as trustee of the PROCREAR Trust, this may adversely affect Banco Hipotecario’s results of operations.

41

The exposure of Banco Hipotecario to individual borrowers could lead to higher levels of past due loans, allowances for loan losses and charge-offs.

A substantial portion of Banco Hipotecario’s loan portfolio consists of loans to individual customers in the lower-middle to middle income segments of the Argentine population. The quality of Banco Hipotecario’s portfolio of loans to individuals is dependent to a significant extent on economic conditions prevailing from time to time in Argentina. Lower-middle to middle income individuals are more likely to be exposed to and adversely affected by adverse developments in the Argentine economy than corporations and high-income individuals. As a result, lending to these segments represents higher risk than lending to such other market segments. Consequently, Banco Hipotecario may experience higher levels of past due amounts, which could result in higher provisions for loan losses. Therefore, there can be no assurance that the levels of past due amounts and subsequent charge-offs will not be materially higher in the future.

An increase in fraud or transaction errors may adversely affect Banco Hipotecario.

As with other financial institutions, Banco Hipotecario is susceptible to, among other things, fraud by employees or outsiders, unauthorized transactions by employees and other operational errors (including clerical or record keeping errors and errors resulting from faulty computer or telecommunications systems). Given the high volume of transactions that may occur at a financial institution, errors could be repeated or compounded before they are discovered and remedied. In addition, some of our transactions are not fully automated, which may further increase the risk that human error or employee tampering will result in losses that may be difficult to detect quickly or at all. Losses from fraud by employees or outsiders, unauthorized transactions by employees and other operational errors might adversely affect Banco Hipotecario’s reputation, business, the results of operations and financial condition.

Risks Related to the GDSs and the Common Shares

Shares eligible for sale could adversely affect the price of our common shares and GDSs.

The market prices of our common shares and GDS could decline as a result of sales by our existing shareholders of common shares or GDSs in the market, or the perception that these sales could occur. These sales also might make it difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

The GDSs are freely transferable under U.S. securities laws, including common shares sold to our affiliates. Cresud, which as of June 30, 2022, owned approximately 53.6% of our common shares (or approximately 434,263,346 common shares which may be exchanged for an aggregate of 43,426,335 GDSs), is free to dispose of any or all of its common shares or GDSs at any time in its discretion. Sales of a large number of our common shares and/or GDSs would likely have an adverse effect on the market price of our common shares and GDSs.

If we issue additional equity securities in the future, you may suffer dilution, and trading prices for our equity securities may decline.

We may issue additional shares of our common stock for financing future acquisitions or new projects or for other general corporate purposes. Any such issuance could result in a dilution of your ownership stake and/or the perception of any such issuances could have an adverse impact on the market price of the GDSs.

We are subject to certain different corporate disclosure requirements and accounting standards than domestic issuers of listed securities in the United States

There is less publicly available information about the issuers of securities listed on the Argentine stock exchanges than information publicly available about domestic issuers of listed securities in the United States and certain other countries.

42

Although the GDSs are listed on the NYSE, as a foreign private issuer we are able to rely on home country governance requirements rather than relying on the NYSE corporate governance requirements. See “Item 16G. Corporate Governance—Compliance with NYSE listing Standards on Corporate Governance.” Additionally, as a foreign private issuer, we are exempt from certain rules under the Exchange Act including (i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and (iii) the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K, upon the occurrence of specified significant events. In addition, foreign private issuers are not required to file their Annual Report on Form 20-F until four months after the end of each fiscal year, while United States domestic issuers that are accelerated filers are required to file their Annual Report on Form 10-K within 75 days after the end of each fiscal year. Foreign private issuers are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information. As a result of the above, you may not have the same protections afforded to shareholders companies that are not foreign private issuers.

Investors may not be able to effect service of process within the United States, limiting their recovery of any foreign judgment.

We are a publicly held corporation (sociedad anónima) organized under the laws of Argentina. Most of our directors and our senior managers are located in Argentina. As a result, it may not be possible for investors to effect service of process within the United States upon us or such persons or to enforce against us or them in United States courts judgments obtained in such courts predicated upon the civil liability provisions of the United States federal securities laws. We have been advised by our Argentine counsel, Zang, Bergel & Viñes, that there is doubt whether the Argentine courts will enforce, to the same extent and in as timely a manner as a United States or foreign court, an action predicated solely upon the civil liability provisions of the United States federal securities laws or other foreign regulations brought against such persons or against us.

If we are considered to be a passive foreign investment company for United States federal income tax purposes, United States holders of our common shares or GDSs would suffer negative consequences.

Based on the past and projected composition of our income and assets and the valuation of our assets, including goodwill, we do not believe we were a passive foreign investment company (a “PFIC”) for United States federal income tax purposes for the taxable year ending June 30, 2022, and do not currently expect to become a PFIC, although there can be no assurance in this regard. The determination of whether we are a PFIC is made annually. Accordingly, it is possible that we may be a PFIC in the current or any future taxable year due to changes in our asset or income composition or if our projections are not accurate. The volatility and instability of Argentina’s economic and financial system may substantially affect the composition of our income and assets and the accuracy of our projections. In addition, this determination is based on the interpretation of certain United States Treasury regulations relating to rental income, which regulations are potentially subject to different interpretation. If we become a PFIC, U.S. Holders (as defined in “Item 10. Additional Information—Taxation—United States Taxation”) of our common shares or GDSs will be subject to certain United States federal income tax rules that have negative consequences for them such as additional tax and an interest charge upon certain distributions by us or upon a sale or other disposition of our common shares or GDSs at a gain, as well as reporting requirements. See “Item 10. F—Taxation—United States Taxation—Passive Foreign Investment Company” for a more detailed discussion of the consequences if we are deemed a PFIC. You should consult your own tax advisors regarding the application of the PFIC rules to your particular circumstances.

Changes in Argentine tax laws may affect the tax treatment of our common shares or GDSs.

Law No. 26,893, which amended Law No. 20,628 (the “Income Tax Law”), was enacted on September 12, 2013, and published in the Official Gazette on September 23, 2013. According to the amendments, the distribution of dividends by an Argentine corporation was subject to income tax at a rate of 10.0%, unless such dividends were distributed to Argentine corporate entities (the “Dividend Tax”).

43

The Dividend Tax was repealed by Law No. 27,260, published in the Official Gazette on July 22, 2016, and consequently no income tax withholding was applicable on the distribution of dividends in respect of both Argentine and non-Argentine resident shareholders, except when dividends distributed were greater than the income determined according to the application of the Income Tax Law, accumulated at the fiscal year immediately preceding the year in which the distribution is made. In such case, the excess was subject to a rate of 35%, for both Argentine and non-Argentine resident shareholders. This treatment still applies to dividends to be distributed at any time out of retained earnings accumulated until the end of the last fiscal year starting before January 1, 2018.

However, pursuant to Law No. 27,430, as amended by Law No. 27,541 and Law No. 27,630, dividends distributed out of earnings accrued in fiscal years starting on or after January 1, 2018, and other profits paid in cash or in kind —except for stock dividends or quota dividends— by companies and other entities incorporated in Argentina referred to in the Income Tax Law, to Argentine resident individuals, resident undivided estates and foreign beneficiaries are subject to income tax at a 7% rate on profits accrued in fiscal years starting on January 1, 2018 and onwards. If dividends are distributed to Argentine corporate taxpayers (in general, entities organized or incorporated under Argentine law, certain traders and intermediaries, local branches of foreign entities, sole proprietorships and individuals carrying on certain commercial activities in Argentina), no dividend tax would apply.

In addition, capital gains originated from the disposal of shares and other securities, including securities representing shares and deposit certificates, are subject to capital gains tax. Law No. 27,430 effective as of January 1, 2018, provides that capital gains obtained by Argentine resident individuals from the disposal of shares and GDSs are exempt from capital gains tax in the following cases: (i) when the shares are placed through a public offering authorized by the CNV, (ii) when the shares are traded in stock markets authorized by the CNV, under segments that ensure priority of price-time and interference of offers, and/or (iii) when the sale, exchange or other disposition of shares is made through an initial public offering and/or exchange of shares authorized by the CNV.

Such law also provides that the capital gains tax applicable to non-residents for transactions entered into until December 30, 2017 is still due, although no taxes will be claimed to non-residents with respect to past sales of Argentine shares or other securities traded in the CNV’s authorized markets (such as GDSs) as long as the cause of the non-payment was the absence of regulations stating the mechanism of tax collection at the time the transaction was closed. The AFIP ’s General Resolution No. 4,227, which came into effect on April 26, 2018, stipulates the procedures through which the income tax should be paid to the AFIP. The payment of capital gains tax applicable for transactions entered into before December 30, 2017 was due on June 11, 2018.

In addition, Decree No. 824/2019, published in the Official Gazette on December 6, 2019 and which introduced the new consolidated text of the Income Tax Law, maintains the 15% capital gains tax (calculated on the actual net gain or a presumed net gain equal to 90% of the sale price) on the disposal of shares or securities by non-residents. However, non-residents are exempt from the capital gains tax on gains obtained from the sale of (a) Argentine shares in the following cases: (i) when the shares are placed through a public offering authorized by the CNV, (ii) when the shares were traded in stock markets authorized by the CNV, under segments that ensure priority of price-time and interference of offers, and/or (iii) when the sale, exchange or other disposition of shares is made through an initial public offering and/or exchange of shares authorized by the CNV; and (b) depositary shares or depositary receipts issued abroad, when the underlying securities are shares (i) issued by Argentine companies, and (ii) with authorization of public offering. The exemptions will only apply to the extent the foreign beneficiaries reside in, and the funds used for the investment proceed from jurisdictions not considered as not cooperating for purposes of fiscal transparency.

In case the exemption is not applicable and, to the extent foreign beneficiaries neither reside in, nor the funds arise from, jurisdictions considered as not cooperating for purposes of fiscal transparency, the gain realized from the disposition of shares would be subject to Argentine income tax at a 13.5% effective rate on the gross price. In case such foreign beneficiaries reside in, or the funds arise from, jurisdictions considered as not cooperating for purposes of fiscal transparency, a 31.5% effective rate on the gross price should apply.

44

Therefore, holders of our common shares, including in the form of GDSs, are encouraged to consult their tax advisors as to the particular Argentine income tax consequences under their specific facts.

Holders of the GDS may be unable to exercise voting rights with respect to the common shares underlying their GDSs.

As a holder of GDS, we will not treat you as one of our shareholders and you will not have shareholder rights. The depositary will be the holder of the common shares underlying your GDSs and holders may exercise voting rights with respect to the common shares represented by the GDSs only in accordance with the deposit agreement relating to the GDSs. There are no provisions under Argentine law or under our bylaws that limit the exercise by GDS holders of their voting rights through the depositary with respect to the underlying common shares. However, there are practical limitations on the ability of GDS holders to exercise their voting rights due to the additional procedural steps involved in communicating with these holders. For example, holders of our common shares will receive notice of shareholders’ meetings through publication of a notice in the CNV’s website, an Official Gazette in Argentina, an Argentine newspaper of general circulation and the bulletin of the Buenos Aires Stock Exchange, and will be able to exercise their voting rights by either attending the meeting in person or voting by proxy. GDS holders, by comparison, will not receive notice directly from us. Instead, in accordance with the deposit agreement, we will provide the notice to the GDS Depositary. If we ask the GDS Depositary to do so, the GDS Depositary will mail to holders of GDSs the notice of the meeting and a statement as to the manner in which instructions may be given by holders. To exercise their voting rights, GDS holders must then instruct the GDS Depositary as to voting the common shares represented by their GDSs. Under the deposit agreement, the GDS Depositary is not required to carry out any voting instructions unless it receives a legal opinion from us that the matters to be voted would not violate our by-laws or Argentine law. We are not required to instruct our legal counsel to give that opinion. Due to these procedural steps involving the GDS Depositary, the process for exercising voting rights may take longer for GDS holders than for holders of common shares and common shares represented by GDSs may not be voted as you desire.

Under Argentine law, shareholder rights may be fewer or less well defined than in other jurisdictions.

Our corporate affairs are governed by our by-laws and by Argentine corporate law, which differ from the legal principles that would apply if we were incorporated in a jurisdiction in the United States, such as the States of Delaware or New York, or in other jurisdictions outside Argentina. In addition, your rights or the rights of holders of our common shares to protect your or their interests in connection with actions by our Board of Directors may be fewer and less well defined under Argentine corporate law than under the laws of those other jurisdictions. Although insider trading and price manipulation are illegal under Argentine law, the Argentine securities markets are not as highly regulated or supervised as the United States securities markets or markets in some other jurisdictions. In addition, rules and policies against self-dealing and regarding the preservation of shareholder interests may be less well defined and enforced in Argentina than in the United States, putting holders of our common shares and GDSs at a potential disadvantage.

Restrictions on the movement of capital out of Argentina may impair your ability to receive dividends and distributions on, and the proceeds of any sale of, the common shares underlying the GDSs.

Over the last twenty years in Argentina exchange controls and transfer restrictions have been periodically imposed, substantially limiting the ability of companies to retain foreign currency or make payments abroad. Since 2019, new regulations have significantly curtailed access to the foreign exchange market by individuals and private sector entities.

In this regard, the Argentine government imposed restrictions on the conversion of Argentine currency into foreign currencies and on the remittance to foreign investors of proceeds from their investments in Argentina. Argentine law currently permits the Argentine government to impose these kind of restrictions temporarily in circumstances where a serious imbalance develops in Argentina’s balance of payments or where there are reasons to foresee such an imbalance. We cannot assure you that GDS Depositary for the GDSs may hold the Pesos it cannot convert for the account of the GDS holders who have not been paid. No assurance can be given that payments to non-resident investors will not suffered delays under the current foreign exchange market regulations or be subject to any additional restrictions, such as a different exchange rate to convert the Pesos into U.S dollars, that may be higher than the current official exchange rate. In this regard, we suggest consulting with the corresponding custodian banks about the exchange regulations applicable. See “Item 10. Additional Information—D Exchange Controls.”

45

The protections afforded to minority shareholders in Argentina are different from and more limited than those in the United States and may be more difficult to enforce.

Under Argentine law, the protections afforded to minority shareholders are different from, and much more limited than, those in the United States and some other Latin American countries. For example, the legal framework with respect to shareholder disputes, such as derivative lawsuits and class actions, is less developed under Argentine law than under United States law as a result of Argentina’s short history with these types of claims and few successful cases. In addition, there are different procedural requirements for bringing these types of shareholder lawsuits. As a result, it may be more difficult for our minority shareholders to enforce their rights against us or our directors or controlling shareholder than it would be for shareholders of a United States company.

We may not pay any dividends.

In accordance with Argentine corporate law, we may pay dividends to shareholders out of net and realized profits, if any, as set forth in our Audited Financial Statements prepared in accordance with IFRS. The approval, amount and payment of dividends are subject to the approval by our shareholders at our annual ordinary shareholders meeting. The approval of dividends requires the affirmative vote of a majority of the shareholders entitled to vote present at the meeting. As a result, we cannot assure you that we will be able to generate enough net and realized profits so as to pay dividends or that our shareholders will decide that dividends will be paid.

Our ability to pay dividends is limited by law and our by-laws.

In accordance with Argentine corporate law, we may pay dividends in Pesos out of retained earnings, if any, to the extent set forth in our Audited Financial Statements prepared in accordance with IFRS. Our shareholders’ ability to receive cash dividends may be limited by the ability of the GDS Depositary to convert cash dividends paid in Pesos into U.S. dollars. Under the terms of our deposit agreement with the depositary for the GDSs, to the extent that the depositary can in its judgment convert Pesos (or any other foreign currency) into U.S. dollars on a reasonable basis and transfer the resulting U.S. dollars to the United States, the depositary will promptly as practicable convert or cause to be converted all cash dividends received by it on the deposited securities into U.S. dollars. If in the judgment of the depositary this conversion is not possible on a reasonable basis (including as a result of applicable Argentine laws, regulations and approval requirements), the depositary may distribute the foreign currency received by it or in its discretion hold such currency uninvested for the respective accounts of the owners entitled to receive the same. As a result, if the exchange rate fluctuates significantly during a time when the depositary cannot convert the foreign currency, you may lose some or all of the value of the dividend distribution.

You might be unable to exercise preemptive or accretion rights with respect to the common shares underlying your GDSs.

Under Argentine corporate law, if we issue new common shares as part of a capital increase, our shareholders will generally have the right to subscribe for a proportional number of common shares of the class held by them to maintain their existing ownership percentage, which is known as preemptive rights. In addition, shareholders are entitled to the right to subscribe for the unsubscribed common shares of either the class held by them or other classes which remain unsubscribed at the end of a preemptive rights offering, on a pro rata basis, which is known as accretion rights. Under the deposit agreement, the GDS Depositary will not exercise rights on your behalf or make rights available to you unless we instruct it to do so, and we are not required to give that instruction. In addition, you may not be able to exercise the preemptive or accretion rights relating to the common shares underlying your GDSs unless a registration statement under the United States Securities Act of 1933, as amended, is effective with respect to those rights or an exemption from the registration requirements of the Securities Act is available. We are not obligated to file a registration statement with respect to the common shares relating to these preemptive rights, and we cannot assure you that we will file any such registration statement. Unless we file a registration statement or an exemption from registration is available, you may receive only the net proceeds from the sale of your preemptive rights by the GDS Depositary or, if the preemptive rights cannot be sold, they will be allowed to lapse. As a result, U.S. holders of common shares or GDSs may suffer dilution of their interest in our company upon future capital increases.

46

Our shareholders may be subject to liability for certain votes of their securities.

Our shareholders are not liable for our obligations. Instead, shareholders are generally liable only for the payment of the shares they subscribe. However, shareholders who have a conflict of interest with us and do not abstain from voting may be held liable for damages to us, but only if the transaction would not have been approved without such shareholders’ votes. Furthermore, shareholders who willfully or negligently vote in favor of a resolution that is subsequently declared void by a court as contrary to Ley General de Sociedades No. 19,550 (Argentine General Corporation Law) or our bylaws may be held jointly and severally liable for damages to us or to other third parties, including other shareholders.

Our warrants are exercisable under limited circumstances and will expire.

On May 12, 2021, we issued an aggregate of 80,000,000 warrants to purchase 80,000,000 of our common shares, and will expire on May 12, 2026. Each warrant entitles its holder to purchase one common share. Each warrant will be exercisable only if the common share rights or GDS rights to which such warrant relates have been exercised, and such warrant will be exercisable after 90 days following its issuance during the nine-day period from and including the 17th through the 25th day of each February, May, September and November, on the day prior to their expiration and on their expiration date (to the extent such dates are business days in New York City and Buenos Aires, Argentina). As of the date of this Annual Report, there are 79,946,160 warrants outstanding.

ITEM 4. Information on the Company

A. History and Development of the Company

General Information

Our legal and commercial name is IRSA Inversiones y Representaciones Sociedad Anónima. We were incorporated and organized on April 30, 1943, under Argentine law as a stock corporation (sociedad anónima), and we were registered with the Public Registry of Commerce of the City of Buenos Aires (Inspección General de Justicia or “IGJ”) on June 23, 1943, under number 284, on page 291, book 46 of volume A. Pursuant to our bylaws, our term of duration expires on April 5, 2043.

Our common shares are listed and traded on the Bolsas y Mercados Argentinos (“BYMA”) and our GDSs representing our common shares are listed on the New York Stock Exchange (“NYSE”). Our headquarters are located at Carlos M. Della Paolera 261, 9^th Floor, City of Buenos Aires (C1001ADA), Argentina. Our telephone is +54 (11) 4323-7400. Our website is www.irsa.com.ar. Information contained in or accessible through our website is not a part of this Annual Report. We assume no responsibility for the information contained on these sites.

Our depositary agent for the GDSs in the United States is The Bank of New York Mellon whose address is 240 Greenwich Street, New York, NY 10286, and whose telephone numbers are +1-888-BNY-ADRS (+1-888-269-2377) for U.S. calls and +1-201-680-6825 for calls outside U.S.

History

IRSA Inversiones y Representaciones Sociedad Anónima, which was founded in 1943, is one of Argentina’s leading real estate companies and the only Argentine real estate company whose shares are listed both on BYMA and on the NYSE.

Since 1994, our main subsidiary was IRSA CP. On September 30, 2021, we reported that our Board of Directors had approved a corporate reorganization process and IRSA and IRSA CP executed a Preliminary Merger Agreement pursuant to which IRSA CP would merge into IRSA, by way of absorption by IRSA of IRSA CP, and IRSA would assume, by universal succession, all of the assets and liabilities and succeed to all of the rights and obligations of IRSA CP. On December 22, 2021, the shareholders of IRSA and IRSA CP approved the merger, whose effective date was established on July 1, 2021. On January 30, 2022, IRSA and IRSA CP executed a Definitive Merger Agreement. On May 9, 2022, we disclosed that the CNV informed us that the merger by absorption of IRSA with IRSA CP, and the dissolution without liquidation of IRSA CP, have been registered, with IRSA as the surviving corporation.

47

Shopping Malls

We are engaged in the acquisition, development and management of shopping malls. Since 1996, we have expanded our real estate activities in the shopping mall segment, through the acquisition and development of shopping malls.

As of June 30, 2022, we own 15 shopping malls in Argentina: Alto Palermo, Abasto Shopping, Alto Avellaneda, Alcorta Shopping, Patio Bullrich, Dot Baires Shopping, Soleil Premium Outlet, Distrito Arcos, Alto NOA Shopping, Alto Rosario Shopping, Mendoza Plaza Shopping, Córdoba Shopping Villa Cabrera, La Ribera Shopping, Alto Comahue Shopping and Patio Olmos (operated by a third party), totaling 335,666 sqm.

Offices

We own, develop and manage office buildings throughout Argentina.

During 2005, attractive prospects in office business led us to make an important investment in this segment by acquiring Bouchard 710, located in the central area of the City of Buenos Aires, building in fiscal year 2005, covering 15,014 sqm of rentable premium space. On July 30, 2020, we sold the entire building for a total amount of USD 87.2 million approximately.

During 2007, we made several significant acquisitions in the Offices segment. We purchased Bouchard Plaza building, also known as “Edificio La Nación,” located in the central area of the City of Buenos Aires, which was sold during 2015. In 2007, we acquired Dock del Plata building with a gross leasable area of 7,921 sqm, located in the exclusive area of Puerto Madero, which was also sold in December 2015. In addition, we acquired a 50% interest in an office building including current leases with a gross leasable area of 31,670 sqm, known as Torre Bank Boston, which is located in the central area of Buenos Aires, and was designed by the recognized architect Cesar Pelli (who also designed the World Financial Center in New York and the Petronas Towers in Kuala Lumpur), which was sold during fiscal year 2021.

In 2007, through Panamerican Mall S.A. (“Pamsa”), we started the construction of one of our most important projects called “Polo Dot,” a shopping mall, an office building and different plots of land to develop three additional office buildings (one of them may include a hotel). This project is located in the Saavedra neighborhood, at the intersection of General Paz Avenue and the Panamerican Highway. First, the shopping mall Dot Baires was developed and opened in May 2009 and then the office building was opened in July 2010, which marked the beginning of our operations in the growing corridor of rental offices located in the North Zone of Buenos Aires. In addition, on June 5, 2017, we reported the acquisition of the historic Philips Building, adjacent to the Dot Baires Shopping Mall, located in the Saavedra neighborhood in the City of Buenos Aires. It has 4 office floors, a total gross leasable area of approximately 8,017 sqm which has a remaining construction capacity of approximately 20,000 sqm. Likewise, through Pamsa, we developed the Zetta building, A+, which was inaugurated in May 2019, it has 11 office floors with a profitable area of 32,173 sqm, fully leased at the opening date, and obtained the Leed Gold Core & Shell certification.

In April 2008, we acquired one of the most emblematic buildings in the City of Buenos Aires, known as “Edificio República.” This property, designed by the architect César Pelli, is a premium office building in the central area of the City of Buenos Aires, which added approximately 19,885 gross leasable sqm to our portfolio. In April 2022, we sold in block 100% of the building.

On April 29, 2021, we concluded the construction and inaugurated a new office development in Buenos Aires, named “200 Della Paolera”, a AAA-rated office building located in Catalinas, a premium corporate area in Argentina. This 30-story building has a total gross leasable area of 35,000 sqm, 318 parking spaces, services and amenities. We currently own 16,832 sqm. The building is equipped with the latest technology and designed to promote an agile and collaborative working environment.

48

As of June 30, 2022, we own a participation in six office buildings of rental office property totaling 83,892 square meters of gross leasable area.

Hotels

In 1997, we entered the hotel market through the acquisition of a 50% interest in the Llao Llao Hotel in Bariloche Province of Rio Negro and 76.3% in the Intercontinental Hotel in the City of Buenos Aires. In 1998, we also acquired Libertador Hotel in the City of Buenos Aires and subsequently sold a 20% interest in it to an affiliate of Sheraton Hotels, and during the fiscal year 2019, we re-acquired the 20% interest to obtain 100% of the capital of Hoteles Argentinos S.A.U and began to operate the hotel directly under the name “Libertador.”

Sales and Developments

Since 1996, we have also expanded our operations to the residential real estate market through the development and construction of apartment tower complexes in the City of Buenos Aires and through the development of private residential communities in the greater Buenos Aires area.

We own an important 70-hectare property facing the Río de la Plata in the south of Puerto Madero, 10 minutes from the central area of Buenos Aires, denominated “Costa Urbana”, previously known as “Solares de Santa María.” After more than 20 years since we acquired the property, on December 21, 2021 a law was passed by the City of Buenos Aires approving the regulations for the development of the property. The Company will have a construction capacity of approximately 895,000 sqm, which is expected to drive growth for the coming years through the development of mixed-use projects. IRSA will destinate 50.8 hectares for public use, which represents approximately 71% of the total area of the property and will contribute with three additional lots of the property, two for the Sustainable Urban Development Fund and one for the Innovation Trust, Science and Technology of the Government of the City of Buenos Aires.

In March 2011, we bought the Nobleza Piccardo warehouse, through a joint venture in which we have a 50% stake. This property is located in the city of San Martín, Province of Buenos Aires, and due to its size and location represents an excellent venue for the future development of different segments. The total plot area is 160,000 sqm.

We are currently developing the project called “Polo Dot,” through Pamsa, located in the commercial complex adjoining to Dot Baires Shopping Mall. The project will consist of three office buildings (one of them may include a hotel and the Zetta building) on land reserves we own and the expansion of Dot Baires Shopping by approximately 15,000 sqm of gross leasable area. In the first phase, we developed the Zetta building which was inaugurated in May 2019. The second stage of the project consists of two office/ hotel buildings that will add 38,400 sqm of GLA to the complex. We have noticed important demand for premium office spaces in this new commercial center and we are confident that we will be able to generate a quality enterprise similar to the ones that the company has done in the past with attractive income levels and high occupancy.

On March 22, 2018, we acquired, directly and indirectly, 100% of a land of approximately 78,000 sqm of surface located, in La Plata, Province of Buenos Aires. The objective of this acquisition is to develop a mixed-use project given that the land offers location and scale adequate characteristics for the commercial development in a place of great potential.

On February 2022, we acquired a property located at the corner of the intersections of Beruti Street and Coronel Díaz Avenue. Such property is located in front of Alto Palermo Shopping, a shopping center owned by the Company, located in in the neighborhood of Palermo, one of the main commercial corridors of the City of Buenos Aires. The property has an area of approximately 2,387 sqm. Furthermore, it has a total covered area of approximately 8,136.85 sqm with future expansion potential.

In April 2022,  as part of the payment for the sale of the Republica Building, we acquired a property, which is made up of four plots and has a frontage of 851 meters on the Bs As - La Plata Highway, on the side of the urbanized area the property has a frontage of 695 meters on Río Gualeguay Street between Tupungato and La Guarda streets. It has a total area of 465,642 sqm, with a usable area of 242,151 sqm and a buildable area of 521,399 sqm.

Others

Over the years, we have acquired 29.91% of Banco Hipotecario. Banco Hipotecario has historically been Argentina’s leading mortgage lender, provider of mortgage-related insurance and mortgage loan services.

49

In March 2012, we entered into an agreement with Supertel Hospitality Inc. whereby we invested approximately USD 20 million, which was a REIT listed on Nasdaq focused on medium-class hotels located in various states of the United States of America, managed by various operators and franchises. On September 22, 2021, Condor signed a sale agreement for its portfolio and announced a liquidation and dissolution plan, with the intention of distributing certain net income from the sale of the hotel portfolio to the shareholders, which was approved on December 1, 2021. As of December 31, 2021, Condor shares were delisted from the NYSE.

In 2014, we invested in the Israeli market through our acquisition of a controlling equity stake in IDBD. We carried out the acquisition in the context of a debt restructuring transaction related to IDBD’s holding company. We managed our business and operations in Israel through our subsidiaries IDBD and DIC. On September 25, 2020, the District Court in Tel Aviv-Jaffa, in response to a petition from IDBD’s creditors, declared the insolvency of IDBD and initiated liquidation proceedings. As of the date of this Annual Report, we no longer own any capital stock of IDBD while we have an investment in DIC that amounts to 2,062,000 of shares.

Also, as of June 30, 2022, we own 27.8% of TGLT’s capital stock, a construction and real estate company listed on the BYMA. As a subsequent event, TGLT changed its name to GCDI S.A.

In order to expand our business to the digitization, we incorporated on October 8, 2018, We are Appa S.A. (former Pareto S.A.), with the social purpose of design, programming and development of software, mobile and web applications. As of June 30, 2022, IRSA’s interest in We are Appa S.A. was 93.6%. Also, as of June 30, 2022, we indirectly have a participation of 4.1% on Avenida Inc., a company dedicated to the e-commerce business.

Significant acquisitions, dispositions and development of business

Sale of Catalinas Tower building

On November 2, 2021, three medium-height floors of the tower “261 Della Paolera” located in the Catalinas District of the Autonomous City of Buenos Aires were sold for a total area of approximately 3,582 square meters and 36 parking spaces located in the building. The transaction price was approximately USD 32 million.

On December 15, 2021, a medium-height floor and 12 parking spaces were sold. The total of the transaction was USD 9.2 million.

On March 9, 2022, three medium-height floors of the tower were sold for a total leasable area of approximately 3,550 square meters, 30 parking spaces located in the building and other complementary units. The transaction price was approximately USD 31.6 million.

On March 29, 2022, two floors of the tower were sold for a total leasable area of approximately 2,370 square meters and 24 parking spaces located in the building. The transaction price was approximately USD 20.4 million.

50

On August 17, 2022, we sold and transferred one floor of the tower “200 Della Paolera” for a total leasable area of approximately 1,184 sqm and 8 parking lots located in the building. For more information see “Recent Developments – 200 Della Paolera tower floor sale”

Investment in Condor Hospitality Trust

On September 22, 2021, Condor Hospitality Trust S.A. (“Condor”) has signed a sale agreement for its portfolio of 15 hotels in the United States with B9 Cowboy Mezz A LLC, an affiliate of Blackstone Real Estate Partners. Said sale was approved by the Condor Shareholders' Meeting held on November 12, 2021 and was completed on the 19th of the same month for an amount of USD 305 million. Within this framework, Condor announced a Liquidation and Dissolution Plan, with the intention of distributing certain net income from the sale of the hotel portfolio to the shareholders in one or more installments, which was approved by the Condor Shareholders' Meeting held on December 1, 2021.

On December 10, 2021, in accordance with the aforementioned Plan, Condor's Board of Directors approved the distribution of a special dividend of USD 7.94 per share, which payment was made on December 30, 2021, corresponding to IRSA an approximate amount of USD 25.3 million for its direct and indirect holding of 3,191,213 common shares that, as of the date of issuance of the financial statements, have already been fully collected. As of December 31, 2021, Condor shares were delisted from the NYSE. On August 26, 2022, the company issued a statement informing that it had concluded the liquidation process, paying a final liquidation dividend of approximately USD 0.127 per ordinary share, corresponding to IRSA approximately USD 0.41 million.

Merger by absorption of IRSA and IRSA Propiedades Comerciales

On September 30, 2021, IRSA’s Board of Directors approved a corporate reorganization process and IRSA and IRSA CP executed a Preliminary Merger Agreement pursuant to which IRSA CP would merge into IRSA, by way of absorption by IRSA of IRSA CP, and IRSA would assume, by universal succession, all of the assets and liabilities and succeed to all of the rights and obligations of IRSA CP. The merger process must comply with the regulations of the General Companies’ Law in Argentina, as well as those issued by the CNV and the SEC.

The Merger was carried out in order to streamline the technical, administrative, operational and economic resources of both Companies, standing out among others: (a) the operation and maintenance of a single transactional information system and centralization of the entire accounting registration process; (b) presentation of a single financial statement to the different control agencies with the consequent cost savings in accounting and advisory fees, tariffs and other related expenses; (c) simplification of the accounting information reporting and consolidation process, as a consequence of the reduction that the merger would imply for the corporate structure as a whole; (d) removal of the IRSA CP public offering listing on BYMA and NASDAQ with the associated costs that this represents; (e) cost reduction for legal fees and tax filings; (f) increase in the percentage of the capital stock that is listed in the different markets, increasing the liquidity of the listed shares; (g) tax efficiencies and (h) preventively avoid the potential overlap of activities between IRSA and IRSA CP.

In accordance with the commitments assumed in the Preliminary Merger Agreement, having obtained the administrative consent of the SEC, an entity to which both companies are subject, the shareholders' meetings of both companies were called.

On December 22, 2021, the Shareholders' Meetings of IRSA and IRSA CP were held, approving the merger by absorption, whose effective date was established on July 1, 2021. As of that date, all of the assets and liabilities, rights and obligations of the absorbed company were transferred to the absorbing company.

Likewise, and within the framework of the reorganization process, the Board of Directors has approved the exchange ratio, which has been established at 1.40 IRSA shares for each IRSA CP share, which is equivalent to 0.56 IRSA GDS for each ADS of IRSA CP. Within this framework, it was decided to increase the share capital by issuing 152,158,215 new shares in IRSA.

51

As of June 30, 2022, the merger was registered and approved in the corresponding control agencies, the exchange of IRSA CP shares for IRSA shares was carried out, and the listing of IRSA CP shares was canceled.

Acquisition of Beruti real estate

On February 18, 2022, the Company purchased by public auction from the Government of the Autonomous City of Buenos Aires (hereinafter “GCBA”) a property located in Beruti, corner of Av. Coronel Díaz, in front of the Alto Palermo shopping center, owned by the Company, in one of the main commercial corridors of the city, in the neighborhood of Palermo.

The property, built on land with an area of approximately 2,386.63 square meters, consists of a ground floor, six upper levels, a basement and a total covered area of approximately 8,136.85 square meters and has potential for future expansion. The purchase price was ARS 2,159 million, which was paid in full.

As of June 30, 2022, the transfer deed of ownership was signed. Simultaneously with the deed, the Company is required to sign a bailment agreement with the GCBA, with the latter holding the property free of charge for a period of up to 30 months, in accordance with the conditions agreed upon in the auction.

Republica Building Sale

On April 19, 2022, the Company sold in block 100% of the “República” building, located next to “Catalinas Norte” area in the City of Buenos Aires. The tower has 19,885 square meters of gross leasable area on 20 office floors and 178 parking spaces.

The transaction price was set at USD 131.8 million (USD 6,629 per square meters), approximately 80% has already been paid in cash (USD 105.1 million or ARS 11,944.8 million), and the remaining amount has been paid with the delivery of a 46-hectare plot of land located on the Bs. As – La Plata Highway, in the district of Quilmes, Buenos Aires Province. This property has approved regulations and urban indicators to develop a mixed-use project with a construction capacity of approximately 521,400 square meters.

Shares Buyback Program

On March 11, 2022, Board of Directors has decided to establish the terms and conditions for the acquisition of the common shares issued by the Company under the provisions of Section 64 of Law Nº 26,831 and the Rules of the CNV, for an amount up to ARS 1,000 million and, with a daily limitation on market transactions up to 25% of the average volume of the daily transactions for the Shares and ADS in the markets during the previous 90 days, and a payable price up to USD 7.00 per ADS and up to a maximum value in Pesos of ARS 140,00 per Share. The period in which the acquisitions will take place: until 120 days, beginning the day following to the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.

As a subsequent event, on July 12, 2022, the Board of Directors has resolved to extend the term of the shares repurchase plan that was determined by the Board of Directors on March 11, 2022, for an additional period of one hundred and twenty (120) days, maintaining the other terms and conditions that were duly informed.

As of June 30, 2022, we acquired 3,808,472 IRSA ordinary shares for a total amount of ARS 348 million, which represent approximately 34.84% of the approved program. On September 21, 2022, it has completed the share buyback program, having acquired the equivalent of 9,419,623 IRSA ordinary shares, which represent approximately 99.51% of the approved program and 1.16% of the outstanding shares.

52

For information of significant acquisitions, dispositions and development of business after June 30, 2022, please see “Recent Developments”.

Recent Developments:

Exchange Offer - Series II Notes, originally issued by IRSA CP, for Series XIV Notes

On July 7, 2022, we announced the results of the offer to exchange (the “Exchange Offer”) any and all of the USD 360,000,000 aggregate principal amount of outstanding 8.750% Notes due 2023 Series No. 2 (CUSIPs: 463588 AA1 (144A) / P5880U AB6 (Reg S); ISINs: US463588AA16 (144A) / USP5880UAB63 (Reg S)) originally issued by IRSA CP (the “Existing Notes”) for 8.750% Senior Notes due 2028 (the “New Notes”) and cash consideration. USD 238,985,000 aggregate principal amount of the Existing Notes (the “Tendered Notes”) were validly tendered in the Exchange Offer, which represents 66.38% of the outstanding aggregate principal amount of the Existing Notes. Of the aggregate principal amount of Tendered Notes, (i) USD 145,373,500, representing approximately 60.83% of the principal amount of Tendered Notes, were tendered under Option A, which included a cash payment, and (ii) USD 93,611,500, representing approximately 39.17% of the principal amount of Tendered Notes, were tendered under Option B, which included only New Notes as consideration. On July 8, 2022, we issued USD 171,202,815 aggregate principal amount of New Notes and paid USD 77,794,596.59 cash consideration as total consideration for the Tendered Notes.

Following the cancellation of the Tendered Notes, the aggregate principal amount of the outstanding Existing Notes is USD 121,015,000.

The New Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%, with interest payable semi-annually on June 22 and December 22 of each year, until expiration. Amortization will be in annual installments payable on June 22 of each year, each for 17.5% from 2024 to 2027 and the remaining 30% on June 22, 2028. The issue price was 100%.

General Ordinary Shareholders’ Meeting

On September 23, 2022, we informed that our Board of Directors has resolved to call a General Ordinary and Extraordinary Shareholders’ Meeting to be held on October 28, 2022, with the following agenda:

1. Appointment of two shareholders to sign the meeting’s minutes.

2. Consideration of documents contemplated in section 234, paragraph 1, of Law No. 19,550 for the fiscal year ended June 30, 2022.

3. Allocation of net income for the fiscal year ended June 30, 2022 for ARS 34,252,534,791, as follows: (i) to the absorption of the unappropriated retained earnings account for ARS 3,488,229,344: (ii) to the legal reserve for ARS 1,538,215,272, in accordance with the laws in force; (iii) to the distribution of a dividend to the shareholders for up to ARS 4,340,000,000 payable in cash and/or in kind and (iv) the balance of ARS 24,886,090,175, to an optional reserve.

53

4. Consideration of board of directors’ performance for the fiscal year ended June 30, 2022.

5. Consideration of supervisory committee’s performance for the fiscal year ended June 30, 2022.

6. Consideration of compensation payable to the board of directors (ARS 1,278,420,382, allocated sum) for the fiscal year ended June 30, 2022.

7. Consideration of compensation payable to the supervisory committee (ARS 3,919,000, allocated sum) for the fiscal year ended June 30, 2022.

8. Determination of the number and appointment of regular directors and alternate directors for a term of up to three fiscal years, as per section twelve of the bylaws.

9. Appointment of regular and alternate members of the supervisory committee for a term of one fiscal year.

10. Appointment of certifying accountant for the fiscal year ending on June 30, 2023.

11. Approval of compensation payable to certifying accountant for the fiscal year ended June 30, 2022.

12. Amendment to sections sixteen (meetings), twenty-two (committees) and twenty-three (supervisory committee) of the bylaws.

13. Consideration of the allocation of up to 9,419,623 own shares acquired under the shares buyback program approved by the board of directors on march 11, 2022, equivalent to 1.16% of the capital stock, to the implementation of an incentive plan for the company’s employees, management and directors.

14. Authorization to carry out registration proceedings relating to this shareholders’ meeting before the Argentine Securities Commission and the general superintendency of corporations.

Exercise of Warrants

On October 3, 2022, we informed that between September 17 and 25, 2022, certain warrants holders have exercised their right to acquire additional shares. Therefore, a total of 8,962 ordinary shares of the Company will be registered, with a face value of ARS 1. As a result of the aforementioned exercise, USD 3,871.58 were collected by the Company.

After the exercise of these warrants, the number of shares and the capital stock of the Company increased from 810,879,553 to 810,888,515, and the new number of outstanding warrants decreased from 79,955,122 to 79,946,160.

Likewise, the exercise of the warrants has been carried out in accordance with the terms and conditions established in the issuance prospectus dated April 12, 2021, and complementary notices regarding the offer made by the Company of 80,000,000 ordinary book-entry shares and 80,000,000 options to subscribe ordinary shares (warrants).

200 Della Paolera tower floor sale

On August 17, 2022, we informed that it has sold and transferred one floor of the tower “200 Della Paolera” located in the Catalinas district of the Autonomous City of Buenos Aires for a total leasable area of approximately 1,184 sqm and 8 parking lots located in the building.

54

The transaction price was approximately USD 12.6 million (USD/sqm 10,600), which had already been paid.

After this transaction, IRSA retains its rights for 14 floors of the building with an approximate leasable area of 16,832 sqm, in addition to parking lots and other complementary spaces.

The financial result of this operation will be recognized in the Company's Financial Statements for the first quarter of fiscal year 2023.

B. Business Overview

Business strategy

Our business strategy is based on three fundamental pillars:

Operating profitability:

· We maximize the return to our shareholders by generating sustainable cash flow growth and increasing the long-term value through the development and operations of mixed-use properties.

· Our privileged locations and our leadership position in Argentina, together with our knowledge of the shopping center and office industry, allow us to maintain high occupancy levels and an optimal tenant mix.

· We seek to strengthen and consolidate the relationship with our tenants through attractive rental conditions, offering a wide range of products and services, as well as administrative and commercial advice to optimize and simplify their operations.

Growth and Innovation:

· We grow through the acquisition and development of real estate properties, and we have a land reserve with premium locations in Argentina to continue expanding our portfolio with mixed-use projects.

· We are pioneers in innovative real estate developments due to their format and scale, due to their concept, due to the appreciation of the area where they are located and due to the search of future synergies.

· We quickly adapt to changes in context and consumption habits, always focusing on the customer to provide the best service through technology and thus enhance their purchasing experience within our shopping centers.

· We maintain our investment in Banco Hipotecario, the main mortgage loan bank in Argentina, since we believe we can achieve good synergies in the long term with a developed mortgage market.

· We seek investments outside of Argentina that represent an opportunity for long-term capital appreciation and thus diversify our portfolio.

55

Sustainability:

· We are part of the communities where our business units operate. Through Corporate Social Responsibility (“CSR”) actions in our properties, we spread and make visible issues of social interest such as inclusion and assistance to the neediest.

· We plan for the long term and work towards continuous improvement, environmental protection, and sustainable Development, seeking to achieve environmental certification standards in our real estate projects

· We continuously work to achieve the highest standards of corporate Governance, with total transparency and responsibility. We take care of our human capital, and we promote inclusion and diversity both in the governing bodies and in the work teams.

COVID-19 pandemic

In December 2019, a new strain of coronavirus (SARS-COV-2), which caused severe acute respiratory syndrome (COVID-19) appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary measures to contain the spread of the virus, including imposing travel restrictions and closing borders, closing businesses deemed non-essential, instructing residents to practice social distancing, implementing lockdowns, among other measures. The ongoing pandemic and these extraordinary government measures are affecting global economic activity, resulting in significant volatility in global financial markets.

On March 3, 2020, the first case of COVID-19 was registered in the country and as of today, approximately 9,700,000 cases of infections had been confirmed in Argentina, by virtue of which the Argentine government implemented a series of health measures of social, preventive and mandatory lockdown at the national level with the closure of non-essential activities, including shopping malls, as well as the suspension of flights and border closures, for much of the years 2020 and 2021.

Since the beginning of fiscal year 2022, and until the date of this Annual Report, the Company’s shopping malls were fully operational, as well as the office buildings, despite the remote work modality that some tenants continue to apply. Regarding hotels, operating since December 2020, the sector is recovering thanks to domestic tourism and the Argentine government’s incentives to promote it after the prolonged restrictions on air flows that directly affected the influx of international tourism.

The effects of the coronavirus pandemic are not expected to affect business continuity and the Company’s ability to meet its financial commitments for the next twelve months. The Company is closely monitoring the situation and taking all necessary measures to preserve human life and the Company’s businesses.

Merger by absorption of IRSA Propiedades Comerciales S.A.

On September 30, 2021, IRSA and IRSA CP’s Boards of Directors approved the preliminary merger agreement between both companies and the corresponding special financial statements as of June 30, 2021, initiating the corporate reorganization process under the terms of art. 82 et seq. of the General Law of Companies. Since both IRSA and IRSA CP were companies included in the public offering regime, the merger was subject to the General Law of Companies and also to the procedures established regarding reorganization of companies of the Regulations of the CNV and those of the markets, both national and foreign, where their shares were listed. On September 30, 2021, IRSA and IRSA CP executed a Preliminary Merger Agreement pursuant to which IRSA CP would merge into IRSA, by way of absorption by IRSA of IRSA CP, and IRSA would assume, by universal succession, all of the assets and liabilities and succeed to all of the rights and obligations of IRSA CP.

The merger was carried out in order to streamline the technical, administrative, operational and economic resources of both companies, standing out among others: (a) the operation and maintenance of a single transactional information system and centralization of the entire accounting registration process; (b) presentation of a single financial statement to the different control agencies with the consequent cost savings in accounting and advisory fees, tariffs and other related expenses; (c) simplification of the accounting information reporting and consolidation process, as a consequence of the reduction that the merger would imply for the corporate structure as a whole; (d) delisting of IRSA CP shares from BYMA and NASDAQ with the associated costs that this represents; (e) cost reduction for legal fees and tax filings; (f) increase in the percentage of the capital stock that is listed in the different markets, increasing the liquidity of the listed shares; (g) tax efficiencies and (h) preventively avoid the potential overlap of activities between the two companies.

56

On December 22, 2021, the shareholders of IRSA and IRSA CP approved the merger, with an effective date of July 1, 2021, subject to final regulatory approval. On May 9, 2022, we disclosed that the CNV informed us that the merger by absorption of IRSA with IRSA CP, and the dissolution without liquidation of IRSA CP, have been registered, with IRSA as the surviving corporation.

As of June 30, 2022, the merger is registered and approved in the corresponding control agencies, the exchange of IRSA CP shares for IRSA shares was completed, and the listing of IRSA CP shares was canceled.

Operations and principal activities

Founded in 1943, IRSA Inversiones y Representaciones Sociedad Anónima is one of Argentina’s leading real estate companies and the only Argentine real estate company whose shares are listed both on BYMA and on the NYSE.

We are engaged, directly and indirectly through subsidiaries and joint ventures, in a range of diversified activities, primarily in real estate, including:

the acquisition, development and operation of shopping malls,

the acquisition and development of office buildings and other non-shopping mall properties primarily for rental purposes,

the development and sale of residential properties,

the acquisition and operation of luxury hotels,

the acquisition of undeveloped land reserves for future development or sale, and

selective investments outside Argentina.

Modification of the segments

After the merger of the Company with IRSA CP, the structure is made up of the following five segments: (i) Shopping Malls; (ii) Offices; (iii) Hotels; (iv) Sales and Developments; and (v) Others.

The “Offices and Other Rental Properties” segment is renamed “Offices” and will exclusively include the results from the company’s six office buildings. The other rental properties that were part of this segment were allocated to the “Sales and Developments” segment, which will include the results generated by these assets, as well as those from Land Reserves, Barter Agreements and Properties for Sale. Likewise, the “Others” segment is incorporated, which will group the results from investments in associates and foreign companies that were previously allocated in the “Corporate” and “International” segments. The “Shopping Centers” and “Hotels” segments did not undergo any changes.

Our “Shopping Malls” segment includes the operating results from our portfolio of shopping malls principally comprising lease and service revenue from tenants. Our Shopping Malls segment had assets

of ARS 92,069 million and ARS 89,506 million as of June 30, 2022, and 2021, respectively, representing 28.3% and 26.6% of our operating assets at such dates, respectively. Our Shopping Malls segment generated revenues of ARS 17,334 million and ARS 8,727 million for the fiscal years ended June 30, 2022, and 2021, respectively.

57

Our “Offices” segment includes the operating results from lease revenue of offices. Our Offices segment had assets of ARS 70,734 million and ARS 120,852 million as of June 30, 2022, and 2021, respectively, representing 21.7% and 36.0% of our operating assets at such dates, respectively. Our Offices segment generated revenues of ARS 3,041 million and ARS 4,401 million for the fiscal years ended June 30, 2022, and 2021, respectively.

Our “Hotels” segment includes the operating results of our hotels mainly comprised of room, catering and restaurant revenue. Our Hotels segment had assets of ARS 4,183 million and ARS 4,269 million as of June 30, 2022, and 2021, respectively, representing 1.3 % and 1.3 % of our operating assets, respectively. Our Hotels segment generated revenues of ARS 4,300 million and revenues ARS 1,510 million for the fiscal years ended June 30, 2022, and 2021, respectively.

Our “Sales and Developments” segment includes the results generated by other rental properties, the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included. Our Sales and Developments segment had assets of ARS 145,495 million and ARS 105,686 million as of June 30, 2022, and 2021, respectively, representing 44.7 % and 31.5 % of our operating assets. Our Sales and Developments segment generated revenues of ARS 746 million and ARS 1,271 million for the financial years ended June 30, 2022, and 2021, respectively.

Our “Others” Segment includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. y Centro de Convenciones Buenos Aires, We Are Appa, investments in associates like TGLT and the financial activities carried out by Banco Hipotecario and BACS. Our “Others” segment had assets of ARS 13,356 million and ARS 15,660 million as of June 30, 2022, and 2021, respectively, representing 4.1 % and 4.7 % of our, respectively. Our Others segment generated revenues of ARS 172 million and ARS 676 million for the fiscal years ended June 30, 2022, and 2021, respectively.

Overview

Shopping Malls

As of June 30, 2022, IRSA owned a majority interest in, and operated a portfolio of, 15 shopping malls in Argentina, six of which are located in the City of Buenos Aires (Abasto, Alcorta Shopping, Alto Palermo Shopping, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two are located in the greater Buenos Aires area (Alto Avellaneda and Soleil Premium Outlet), and the rest are located in different provinces of Argentina (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera and Patio Olmos (operated by a third party) in the City of Córdoba, La Ribera Shopping in Santa Fe (through a joint venture) and Alto Comahue in the City of Neuquén).

Our portfolio’s leasable area totaled 335,666 sqm of GLA. Real tenants’ sales of our shopping centers reached ARS 254,631 million in the fiscal year 2022, 105.2% higher than in 2021 and 9.5% higher than in 2019, not affected by the pandemic. Sales for the fourth quarter of fiscal year 2022 were ARS 71,292 million, exceeding sales for the same period of 2021 and 2019 by 180.9% and 23.7%, respectively. The tenants’ sales of our shopping centers are relevant to our income and profitability because they are one of the factors that determine the amount of rent that we can collect from them. They also affect the overall occupancy costs of tenants as a percentage of their sales.

The following table shows certain information about IRSA’s shopping malls as of June 30, 2022:

Shopping malls	Date of acquisition/ development	Location	GLA(1)	Number of stores	Occupancy rate(2)	Our ownership interest (3)	Rental revenue
			(sqm)		(%)	(%)	(in millions of ARS)
Alto Palermo	Dec-97	City of Buenos Aires	20,507	142	98.0	100.0	2,765
Abasto Shopping(4)	Nov-99	City of Buenos Aires	37,162	159	98.9	100.0	2,285
Alto Avellaneda	Dec-97	Buenos Aires Province	39,944	123	81.4	100.0	1,557
Alcorta Shopping	Jun-97	City of Buenos Aires	15,812	110	99.7	100.0	1,697
Patio Bullrich	Oct-98	City of Buenos Aires	11,664	90	92.4	100.0	768
Dot Baires Shopping	May-09	City of Buenos Aires	47,296	163	83.5	80.0	1,445
Soleil Premium Outlet	Jul-10	Buenos Aires Province	15,734	74	100.0	100.0	853
Distrito Arcos	Dec-14	City of Buenos Aires	14,457	64	100.0	90.0	1,301
Alto Noa Shopping	Mar-95	Salta	19,388	84	96.7	100.0	577
Alto Rosario Shopping	Nov-04	Santa Fe	33,957	135	96.3	100.0	2,049
Mendoza Plaza Shopping	Dec-94	Mendoza	42,149	127	91.1	100.0	846
Córdoba Shopping	Dec-06	Córdoba	15,368	100	100.0	100.0	614
La Ribera Shopping	Aug-11	Santa Fe	10,531	69	97.1	50.0	139
Alto Comahue	Mar-15	Neuquén	11,697	89	97.4	99.95	421
Patio Olmos(5)	Sep-07	Córdoba		—			—
Total			335,666	1,529	93.1		17,317

(1)	Corresponds to gross leasable area (GLA) at each property. Excludes common areas and parking spaces.
(2)	Calculated dividing occupied square meters by leasable area as of the last day of the fiscal year.
(3)	Company’s effective interest in each of its business units.
(4)	Excludes Museo de los Niños which represents 3,732 square meters in Abasto
(5)	Does not include the rental revenues of Patio Olmos. We own the historic building where the Patio Olmos shopping mall is located in the province of Cordoba. The property is managed by a third party.

Tenant retail sales

During fiscal year 2022, the sales of our shopping malls tenants reached ARS 254,631 million, increasing by 105.2% compared to the previous fiscal year and 47.8% compared to fiscal year 2020.

Tenants’ sales of shopping malls located in the City of Buenos Aires and Greater Buenos Aires increased a 145.3% compared to previous fiscal year, from ARS 71,066 million to ARS 174,303 million during fiscal year 2022, while those in the interior of the country increased a 51.5% compared to previous fiscal year, from ARS 53,015 million to ARS 80,328 million during the fiscal year 2022.

58

The following table sets forth the total retail sales of IRSA’s shopping mall tenants for the fiscal years indicated:

	For the fiscal years ended June 30, (1)
	2022		2021		2020		2019
	(in millions of ARS)
Alto Palermo		31,929		11,970		21,026		28,534
Abasto Shopping		32,619		10,420		21,382		30,262
Alto Avellaneda		22,876		8,671		18,892		27,141
Alcorta Shopping		21,824		9,094		12,536		16,097
Patio Bullrich		11,558		5,856		8,527		10,574
Buenos Aires Design (2)		—		—		—		1,384
Dot Baires Shopping		20,250		7,979		16,795		23,192
Soleil Premium Outlet		14,470		7,005		8,726		12,453
Distrito Arcos		18,777		10,188		9,854		11,456
Alto Noa Shopping		11,534		8,540		8,512		10,275
Alto Rosario Shopping		30,189		18,189		17,797		22,872
Mendoza Plaza Shopping		17,125		14,762		13,889		18,232
Córdoba Shopping Villa Cabrera		9,622		6,058		5,482		7,461
La Ribera Shopping (3)		4,588		2,243		3,632		5,338
Alto Comahue		7,270		3,316		5,202		7,330
Total		254,631		124,291		172,252		232,601

(1)	Retail sales based upon information provided to us by retailers and prior owners. The amounts shown reflect 100% of the retail sales of each shopping mall, although in certain cases we own less than 100% of such shopping malls. Includes sales from stands and excludes spaces used for special exhibitions.
(2)	End of concession term was December 5, 2018.
(3)	Owned by Nuevo Puerto Santa Fé S.A., in which we are a joint venture partner.

Total sales by type of business

The following table sets forth the retail sales of IRSA’s shopping mall tenants by type of business for the fiscal years indicated:

	For the fiscal years ended June 30, (1)
	2022		2021		2020		2019
	(in millions of ARS)
Department Store		—		3,016		9,173		12,589
Clothes and footwear		152,320		71,208		94,247		129,248
Entertainment		6,078		922		5,290		7,797
Home and decoration		6,890		3,727		3,519		5,165
Home Appliances		22,871		9,467		19,402		26,052
Restaurants		24,080		19,842		24,556		29,158
Miscellaneous		38,290		2,094		2,058		2,776
Services		4,102		14,016		14,006		19,816
Total		254,631		124,291		172,252		232,601

(1) Includes sales from stands and excludes spaces used for special exhibitions.

Occupancy rate

The following table sets forth the occupancy rate of IRSA’s shopping malls expressed as a percentage of gross leasable area of each shopping mall for the fiscal years indicated:

	As of June 30,
	2022		2021		2020		2019
	(%)
Alto Palermo		98.0		98.4		91.9		99.1
Abasto Shopping		98.9		99.7		94.9		98.7
Alto Avellaneda		81.4		64.8		97.4		98.6
Alcorta Shopping		99.7		90.6		97.3		97.9
Patio Bullrich		92.4		87.8		91.4		93.5
Dot Baires Shopping		83.5		80.7		74.6		74.5
Soleil Premium Outlet		100.0		90.3		97.1		99.0
Distrito Arcos		100.0		100.0		93.8		99.4
Alto Noa Shopping		96.7		98.1		99.0		99.5
Alto Rosario Shopping		96.3		95.4		97.2		99.6
Mendoza Plaza Shopping		91.1		97.3		97.8		97.3
Córdoba Shopping Villa Cabrera		100.0		91.4		95.4		99.3
La Ribera Shopping		97.1		96.2		99.0		94.6
Alto Comahue		97.4		92.4		96.2		96.2
Total		93.1		89.9		93.2		94.7

59

Rental price

The following table shows the annual average rental price per square meter of our shopping malls for the fiscal years indicated:

	For the fiscal years ended June 30, (1)
	2022		2021		2020		2019
	(in ARS)
Alto Palermo		101,819		43,388		87,524		127,239
Abasto Shopping		50,562		16,984		39,836		62,031
Alto Avellaneda		33,021		11,828		28,517		47,627
Alcorta Shopping		86,770		38,172		56,069		75,324
Patio Bullrich		49,811		21,128		43,972		57,720
Dot Baires Shopping		24,378		7,612		22,108		32,780
Soleil Premium Outlet		46,651		21,351		31,285		48,680
Distrito Arcos		72,560		41,952		61,716		89,526
Alto Noa Shopping		26,718		17,449		20,057		26,775
Alto Rosario Shopping		52,773		28,905		29,605		40,463
Mendoza Plaza Shopping		17,533		12,331		13,620		19,416
Córdoba Shopping Villa Cabrera		36,049		21,083		22,310		32,191
La Ribera Shopping		11,680		3,581		11,141		16,784
Alto Comahue		32,487		8,384		75,452		72,825

(1) Corresponds to consolidated annual accumulated rental prices according to the IFRS divided by gross leasable square meters. Does not include revenue from Patio Olmos.

Revenues from the Shopping Malls segment

When analyzing the composition of the income of the shopping malls segment between 2022 and 2021, we can observe a recovery in the contingent rent, which is the one that depends on our tenants’ sales, which in 2022 represented about 48% of the income of the segment. Also, Base Rent represented approximately 34% of the segment’s income.

The following table sets forth IRSA’s revenue from cumulative leases by revenue category for the fiscal years presented:

	For the fiscal year ended June 30,
	2022		2021			2020			2019
	(in millions of ARS)
Base rent		5,903		4,036			7,704			11,774
Percentage rent		8,376		2,366			3,623			4,383
Total rent		14,279		6,402			11,327			16,157
Non-traditional advertising		398		180			453			548
Revenue from admission rights		1,403		1,292			2,224			2,587
Fees		209		221			259			292
Parking		576		61			729			1,164
Commissions		411		295			382			789
Other		41		294			52			532
Subtotal (1)		17,317		8,745			15,426			22,069
Patio Olmos		17		15			17			25
Adjustments and eliminations (2)		—		(33	)		(828	)		(1,057	)
Total		17,334		8,727			14,615			21,037

(1)	Does not include Patio Olmos.
(2)	Includes indirect incomes and eliminations between segments. In 2019, revenue from Buenos Aires Design is included. End of concession December 5, 2018.

60

Rental revenue

The following table sets forth total rental income for each of IRSA’s shopping malls for the fiscal years indicated:

	For the fiscal years ended June 30, (1)
	2022		2021			2020			2019 (2)
	(in millions of ARS)
Alto Palermo		2,765		1,294			2,455			3,468
Abasto Shopping		2,285		929			2,106			3,233
Alto Avellaneda		1,557		757			1,478			2,321
Alcorta Shopping		1,697		791			1,309			1,706
Patio Bullrich		768		347			757			993
Dot Baires Shopping		1,445		731			1,608			2,736
Soleil Premium Outlet		853		407			610			905
Distrito Arcos		1,301		681			1,130			1,556
Alto Noa Shopping		577		395			455			609
Alto Rosario Shopping		2,049		1,205			1,280			1,681
Mendoza Plaza Shopping		846		632			728			1,008
Córdoba Shopping Villa Cabrera		614		386			436			607
La Ribera Shopping(3)		139		52			145			215
Alto Comahue		421		138			929			1,031
Subtotal		17,317		8,745			15,426			22,069
Patio Olmos(4)		17		15			17			25
Reconciliation adjustments(5)		—		(33	)		(828	)		(1,057	)
Total		17,334		8,727			14,615			21,037

(1)	Includes base rent, percentage rent, admission rights, fees, parking, commissions, revenue from non-traditional advertising and others. Does not include Patio Olmos.
(2)	As comparative effect Revenue from Buenos Aires Design are not included. End of concession December 5, 2018.
(3)	Through our joint venture Nuevo Puerto Santa Fé S.A.
(4)	We own the historic building where the Patio Olmos shopping mall is located in the province of Cordoba. The property is managed by a third party.
(5)	Includes indirect incomes and eliminations between segments. In 2019, revenue from Buenos Aires Design is included. End of concession December 5, 2018.

61

Lease expirations (1)

The following table sets forth the schedule of estimated lease expirations for our shopping malls for leases in effect as of June 30, 2022, assuming that none of our tenants exercises its option to renew or terminate its lease prior to expiration:

	As of June 30, 2022
Agreements’ Expiration	Number of agreements (1)		Square meters to expire		Due to expire		Total lease payments  (2)		Agreements
					(%)		(in millions of ARS)		(%)
Vacant Stores		41		23,283		0.0				0
Expired in-force		80		23,458		7.5		221		3.3
As of June 30, 2023		425		63,008		20.2		1,507		22.4
As of June 30, 2024		315		66,848		21.4		1,053		15.6
As of June 30, 2025		381		56,502		18.1		1,755		26.1
As of June 30, 2026 and subsequent years		287		102,567		32.8		2,195		32.6
Total (3)		1,488		312,383		100		6,731		100

(1)	Includes vacant stores as of June 30, 2022. A lease may be associated with one or more stores.
(2)	The amount expresses the annual base rent as of June 30, 2022 of agreements due to expire.
(3)	Does not include unoccupied stores.

New leases and renewals

The following table shows certain information about IRSA’s leases agreement as of June 30, 2022:

							Average annual base					Annual base rent
	Number of				Annual		rent per sqm			Number of		amount per sqm
Type of business	agreements renewed		Annual base rent		admission rights			New and renewed	Former agreements	non-renewed agreements (1)		Non-renewed agreements (1)
			(in millions of ARS)				(ARS/sqm)					(in millions of ARS)
Clothing and footwear		549		2,121		444		29,630	13,461		273		26,020
Miscellaneous (2)		137		441		92		28,876	14,249		124		32,294
Restaurant		135		417		52		34,615	14,731		97		26,314
Services		21		52		3		11,618	3,702		40		10,796
Home appliances		44		200		17		18,293	8,953		13		17,524
Home and decoration		28		117		17		23,475	5,449		31		13,960
Supermarket		1		8		0		2,727	1,948		1		2,567
Entertainment		22		146		2		3,082	604		13		2,717
Total		937		3,502		628		20,622	9,037		592		19,289

(1)	Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.
(2)	Miscellaneous includes anchor store.

Five largest tenants of the portfolio

The five largest tenants in our portfolio (in terms of sales) account for approximately 9.4% of our gross leasable area as of June 30, 2022 and represent 13.4% of the annual basic rent for the fiscal year ending on that date.

62

The following table describes our portfolio’s five largest tenants:

Tenant	Type of Business	Sales	Gross Leasable Area
		(%)	(sqm)	(%)
Zara	Clothes and footwear	6.7	10,771	3.2
Nike	Clothes and footwear	4.7	8,105	2.4
Fravega	Home appliances	3.5	3,378	1.0
McDonald’s	Restaurant	2.1	4,550	1.4
Adidas	Clothes and footwear	1.9	4,581	1.4
Total		18.9	31,386	9.4

Detailed information regarding our shopping malls

Set forth below is certain information regarding our shopping mall portfolio, including certain key lease provisions.

Alto Palermo, City of Buenos Aires

Alto Palermo is a 142-store shopping mall that opened in 1990 in Palermo, a well-known middle class and densely populated neighborhood in the City of Buenos Aires. Alto Palermo is located at the intersection of Santa Fe and Coronel Díaz avenues, only a few minutes from downtown Buenos Aires with nearby access from the Bulnes subway station. Alto Palermo has a total constructed area of 65,029 square meters (including parking) that consists of 20,507 square meters of gross leasable area spread out over six levels and has a 642-car pay parking space of approximately 30,000 square meters. Alto Palermo’s targeted clientele consists of middle-income individuals between the ages of 28 and 45. In August 2022, a new gastronomic area was inaugurated, giving rise to 14 new proposals that grouped under “BASE, kitchens by ingredients”, a new gastronomic concept that fuses street food, gourmet cuisine, alcoholic beverage bars with a unique outdoor terrace overlooking Santa Fe Avenue.

During the fiscal year ended on June 30, 2022, the public that visited the Alto Palermo shopping mall generated real retail sales totaling approximately ARS 31,929 million, 169.1% higher than the turnover in real terms during the same period of fiscal year 2021. Sales per square meter reached ARS 1,556,981. Total rental income increased from ARS 869 million in real terms for fiscal year ended June 30, 2021, to ARS 2,088 million for fiscal year ended June 30, 2022, which represents an annual revenue per gross leasable square meter of ARS 43,388 in fiscal year 2021 and ARS 101,819 in fiscal year 2022.

As of June 30, 2022, Alto Palermo’s occupancy rate was 98.0%.

Alto Palermo’s tenant mix

The following table sets forth the tenant mix by type of business at Alto Palermo as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		23,119		72.5		12,685		61.9
Home		495		1.5		410		2.0
Restaurant		2,372		7.4		3,318		16.2
Miscellaneous		4,254		13.3		1,647		8.0
Services		179		0.6		1,730		8.4
Home appliances		1,510		4.7		717		3.5
Total		31,929		100.0		20,507		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

63

Alto Palermo’s revenue

The following table sets forth selected information relating to the revenue sources at Alto Palermo for the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		1,064		627		1,198		1,913
Percentage rent(1)		1,024		242		435		458
Total rent		2,088		869		1,633		2,371
Non-traditional advertising		163		45		106		145
Revenue from admission rights(2)		271		272		441		571
Fees		33		34		38		42
Parking		139		11		122		213
Commissions		69		62		111		126
Other		2		1		4		0
Total(3)		2,765		1,294		2,455		3,468

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Abasto Shopping, City of Buenos Aires

Abasto is a 159-store shopping mall located in downtown Buenos Aires with direct access from the Carlos Gardel subway station, six blocks from the Once railway terminal and near the highway to Ezeiza International Airport. Abasto opened on November 10, 1998. The main building is a landmark building that, between 1889 and 1984 was the primary fresh produce market for the City of Buenos Aires. Our Company converted the property into a 114,312 sqm shopping mall (including parking and common areas) with 37,162 square meters of gross leasable area (40,500 square meters if we consider Museo de los Niños). Abasto is the fourth largest shopping mall in Argentina in terms of gross leasable area.

Abasto has a 29-restaurant food court, a 12-screen movie theatre complex with seating capacity of approximately 3,000 people, covering a surface area of 8,021 sqm, entertainment area and Museo de los Niños with a surface area of 3,732 sqm (the latter is not included within the gross leasable area). The shopping mall is distributed over five stories and includes a parking space for 1,180 vehicles with a surface area of approximately 39,690 sqm.

Abasto’s target clientele consists of middle-income individuals between the ages of 25 and 45 which we believe represent a significant portion of the population in this area of the City of Buenos Aires.

During the fiscal year ended June 30, 2022, the public visiting the Abasto shopping mall generated real retail sales that totaled approximately ARS 32,619 million, representing sales per square meter of approximately ARS 877,751, 213.0% higher than sales in real terms recorded in fiscal year 2021. Total rental income increased from ARS 625 million in real terms for the fiscal year ended June 30, 2021, to ARS 1,879 million for fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 16,984 in fiscal year 2021 and ARS 50,562 in fiscal year 2022.

As of June 30, 2022, Abasto Shopping’s occupancy rate was 98.9%.

64

Abasto Shopping’s tenant mix

The following table sets forth the mix of tenants by type of business at Abasto Shopping as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		17,684		54.2		14,275		38.5
Entertainment		1,641		5.0		12,714		34.2
Home		520		1.6		646		1.7
Restaurant		4,065		12.5		3,294		8.9
Miscellaneous		3,722		11.4		2,948		7.9
Services		66		0.2		832		2.2
Home appliances		4,920		15.1		2,453		6.6
Total		32,619		100.0		37,162		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Abasto Shopping’s revenue

The following table sets forth selected information relating to the revenue of Abasto Shopping during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		795		469		1,079		1,732
Percentage rent(1)		1,084		156		386		551
Total rent		1,879		625		1,465		2,283
Non-traditional advertising		43		22		71		71
Revenue from admission rights(2)		162		182		325		458
Fees		36		38		41		46
Parking		115		8		151		261
Commissions		48		30		48		104
Other		2		24		5		10
Total(3)		2,285		929		2,106		3,233

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Alto Avellaneda, Greater Buenos Aires Area

Alto Avellaneda is a 123-store suburban shopping mall that opened in October 1995 and is located in the City of Avellaneda, which is on the southern border of the City of Buenos Aires. This shopping mall is next to a railway terminal and is close to downtown Buenos Aires. Alto Avellaneda has a total constructed area of 108,598.8 square meters (including parking) which consists of 39,944 square meters of GLA. The shopping mall has a multiplex cinema with eight screens, including the largest XD room in the country, a complex of sports fields (soccer, basketball and paddle), an entertainment center (Sacoa) and another one under construction (Neverland Sports & Play), and a food court with 14 restaurants. In addition, the property has the Chango Más hypermarket and branches of Easy, Norauto and Coppel (not included in the gross leasable area), but it pays for its pro rata share of the common expenses of Alto Avellaneda’s parking space. The shopping mall has a 2,400-car free parking spaces consisting of 53,203 square meters. Alto Avellaneda Shopping’s targeted clientele consists of middle-income individuals between the ages of 25 and 40.

During the fiscal year ended June 30, 2022, the public that visited the Alto Avellaneda shopping mall generated real retail sales of approximately ARS 22,876 million, which represents a year-on-year increase of 164.9% in real terms. Sales per square meter was ARS 572,702. Total rental income increased from ARS 472 million in real terms for fiscal year ended June 30, 2021, to ARS 1,319 million for fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 11,828 in fiscal year 2021 and ARS 33,021 in fiscal year 2022.

65

As of June 30, 2022, Alto Avellaneda’s occupancy rate was 81.4%.

Alto Avellaneda’s tenant mix

The following table sets forth the mix of tenants by type of business at Alto Avellaneda as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		12,973		56.8		12,830		32.1
Department store		—		—		7,174		18.0
Entertainment		437		1.9		10,376		26.0
Home		711		3.1		578		1.4
Restaurant		2,880		12.6		2,241		5.6
Miscellaneous		2,202		9.6		2,675		6.7
Services		28		0.1		2,883		7.2
Home appliances		3,645		15.9		1,187		3.0
Total		22,876		100.0		39,944		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Alto Avellaneda’s revenue

The following table sets forth selected information relating to revenue for Alto Avellaneda for the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		549		324		720		1,399
Percentage rent(1)		770		148		373		408
Total rent		1,319		472		1,093		1,807
Non-traditional advertising		33		9		33		36
Revenue from admission rights(2)		140		170		286		302
Fees		28		30		35		39
Parking		0		0		0		0
Commissions		35		32		28		127
Other		2		44		3		10
Total(3)		1,557		757		1,478		2,321

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Alcorta Shopping, City of Buenos Aires

Alcorta Shopping is a 110-store shopping mall which opened in 1992, located in the residential area of Palermo Chico, one of the most exclusive areas in the City of Buenos Aires, and a short drive from downtown Buenos Aires. Alcorta Shopping has a total constructed area of approximately 87,553.8 square meters (including parking) that consists of 15,812 square meters of GLA. Alcorta Shopping has a cinema with two screens, a food court with eleven restaurants, two exclusive restaurants, a Carrefour hypermarket on the ground floor and a Santander bank. The shopping mall is spread out over three levels and has a free for two hours parking spaces for 1,137 cars and an additional parking space in front of the main building with space for 435 vehicles. Alcorta Shopping’s targeted clientele consists of high-income individuals between the ages of 25 and 40.

66

Over the past years, Alcorta Shopping has become a symbol of fashion and avant-garde style in Argentina. It is the place of choice for emerging designers for promoting and selling their new brands.

During the fiscal year ended June 30, 2022, the public that visited the Alcorta Shopping mall generated real retail sales that totaled approximately ARS 21,824 million, which represents fiscal year sales of approximately ARS 1,380,218 per square meter and a year-on-year increase of 140.1% in real terms. Total rental income increased from approximately ARS 604 million in real terms for fiscal year ended June 30, 2021 to ARS 1,372 million for fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 38,172 in fiscal year 2021 and ARS 86,770 in fiscal year 2022.

As of June 30, 2022, Alcorta Shopping’s occupancy rate was 99.7%.

Alcorta Shopping’s tenant mix

The following table sets forth the mix of tenants by type of business at Alcorta Shopping as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		15,384		70.5		8,006		50.6
Entertainment		129		0.6		1,435		9.1
Home		1,167		5.3		1,236		7.8
Restaurant		766		3.5		1,135		7.2
Miscellaneous		2,573		11.8		1,516		9.6
Services		241		1.1		2,405		15.2
Home appliances		1,564		7.2		79		0.5
Total		21,824		100.0		15,812		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Alcorta Shopping’s revenue

The following table sets forth selected information relating to the revenue of Alcorta Shopping during the following fiscal years:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		552		361		583		908
Percentage rent(1)		820		243		298		276
Total rent		1,372		604		881		1,184
Non-traditional advertising		36		13		55		62
Revenue from admission rights(2)		153		120		232		268
Fees		17		18		12		14
Parking		77		11		89		129
Commissions		40		24		37		47
Other		2		1		3		2
Total(3)		1,697		791		1,309		1,706

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Patio Bullrich, City of Buenos Aires

Patio Bullrich is the oldest shopping mall of the City of Buenos Aires and opened in 1988 and it is located in the neighborhood of Recoleta, one of the most prosperous areas of the City of Buenos Aires. This district is a residential, cultural and tourist center that includes distinguished private homes, historical sites, museums, theatres and embassies. The shopping mall has 90 stores and is located within walking distance of the most prestigious hotels of the City of Buenos Aires and the subway, bus and train systems.

Patio Bullrich has a total constructed area of 28,984 square meters (including parking) that consist of 11,664 square meters of GLA and common areas covering 12,472 square meters. The shopping mall is spread out over four levels and has a pay parking spaces for 206 cars in an area consisting of approximately 4,600 square meters. The shopping mall has a four-screen multiplex cinema with 1,381 seats and soon a fifth luxury screen will be incorporated. In addition, it has the first Food Hall in Argentina that offers French and Italian gastronomy, patisserie, seafood and grill cuisine, and a “gourmet” market with specially selected premium brand products. From the point of view of its tenant mix, it concentrates the most important international and national luxury brands such as LV, Salvatore Ferragamo, Hugo Boss, Bally, Omega, Etiqueta Negra, Jazmin Chebar, Calandra, among others.

During the fiscal year ended June 30, 2022, the public visiting the Patio Bullrich shopping mall generated real retail sales that totaled approximately ARS 11,558 million, which represents annual sales of approximately ARS 990,912 per square meter and a year-on-year increase of 96.8% in real terms. Total rental income increased from ARS 241 million in real terms for fiscal year ended June 30, 2021, to ARS 581 million for fiscal year ended June 30, 2022, which represents a monthly revenue per gross leasable square meter of ARS 21,128 in fiscal year 2021 and ARS 49,811 in fiscal year 2022.

As of June 30, 2022, Patio Bullrich’s occupancy rate was 92.4%.

Patio Bullrich’s tenant mix

The following table sets forth the tenant mix by type of business at Patio Bullrich as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		8,587		74.3		5,645		48.5
Entertainment		27		0.2		1,510		12.9
Home		259		2.2		173		1.5
Restaurant		217		1.9		1,776		15.2
Miscellaneous		2,405		20.8		1,586		13.6
Services		64		0.6		924		7.9
Home appliances		—		—		50		0.4
Total		11,558		100.0		11,664		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

67

Patio Bullrich’s revenue

The following table sets forth selected information relating to the revenue of Patio Bullrich during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		176		136		318		470
Percentage rent(1)		405		105		183		188
Total rent		581		241		501		658
Non-traditional advertising		15		8		23		27
Revenue from admission rights(2)		79		58		119		125
Fees		15		16		29		33
Parking		61		9		68		122
Commissions		16		14		16		31
Other		1		1		1		(3	)
Total(3)		768		347		757		993

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Dot Baires Shopping, City of Buenos Aires

Dot Baires Shopping is a shopping mall that opened in May 2009. It has 4 floors and 3 underground levels, a covered surface area of 173,000 square meters, of which 47,296 sqm constitute Gross Leasable Area, comprising 163 retail stores, a 10-screen multiplex cinema and parking space for 2,042 vehicles in a surface of approximately 75,000 square meters.

Dot Baires Shopping is located at the spot where Avenida General Paz meets the Panamerican Highway in the neighborhood of Saavedra, City of Buenos Aires, and is the largest shopping mall in the city in terms of square meters. As of June 30, 2022, our equity interest in Panamerican Mall S.A. was 80%.

During the fiscal year ended June 30, 2022, the public visiting the Dot Baires shopping mall generated real retail sales that totaled approximately ARS 20,250 million, which represents a year-on-year increase of 152.5% in real terms and annual sales of approximately ARS 428,155 per square meter. Total rental income increased from ARS 362 million in real terms in the fiscal year ended June 30, 2021, to ARS 1,153 million in the fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 7,612 in fiscal year 2021 and ARS 24,278 in fiscal year 2022.

As of June 30, 2022, Dot Baires Shopping’s occupancy rate was 83.5%.

68

Dot Baires Shopping’s tenant mix

The following table sets forth the tenant mix in terms of types of business in Dot Baires Shopping as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		10,317		50.9		23,109		48.9
Department store		—		—		1,572		3.3
Entertainment		798		3.9		8,519		18.1
Home		860		4.5		3,460		7.3
Restaurant		2,175		10.7		1,981		4.2
Miscellaneous		2,480		12.2		3,851		8.1
Services		756		3.7		2,984		6.3
Home appliances		2,864		14.1		1,820		3.8
Total		20,250		100.0		47,296		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Dot Baires Shopping’s revenue

The following table sets forth selected information relating to the revenue of Dot Baires Shopping for the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		472		258		756		1,161
Percentage rent(1)		681		104		323		440
Total rent		1,153		362		1,079		1,601
Non-traditional advertising		29		15		51		67
Revenue from admission rights(2)		104		114		193		233
Fees		25		27		25		27
Parking		93		6		228		331
Commissions		39		31		25		92
Other		2		176		7		385
Total(3)		1,445		731		1,608		2,736

(1	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Soleil Premium Outlet, greater Buenos Aires, province of Buenos Aires

Soleil Premium Outlet is located in San Isidro, Province of Buenos Aires. It opened in Argentina in 1986, but in 2010 it began a process of change becoming the first Premium Outlet in the country. It has a surface area of 47,525 square meters, 15,734 square meters of which are GLA. It comprises 74 stores and 2,599 parking spaces.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales that totaled approximately ARS 14,470 million, which represents annual average sales of approximately ARS 919,664 per square meter and a year-on-year turnover increase of 109.2% in real terms. Total rental income increased from ARS 324 million in real terms for the fiscal year ended June 30, 2021 to ARS 734 million for the fiscal year ended June 30, 2022, representing annual income per gross leasable square meter of ARS 21,351 in fiscal year 2021 and ARS 46,651 in fiscal year 2022.

As of June 30, 2022, Soleil Premium Outlet’s occupancy rate was 100.0%.

69

Soleil Premium Outlet’s tenant mix

The following table sets forth the tenant mix in terms of types of business in Soleil Premium Outlet as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		12,758		88.1		11,240		71.5
Entertainment		303		2.1		3,262		20.7
Restaurant		1,050		7.3		745		4.7
Miscellaneous		345		2.4		387		2.5
Home appliances		13		0.1		100		0.6
Total		14,470		100.0		15,734		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Soleil Premium Outlet’s revenue

The following table sets forth selected information relating to the revenue of Soleil Premium Outlet during the following periods:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		312		228		294		475
Percentage rent(1)		422		96		180		263
Total rent		734		324		474		738
Non-traditional advertising		8		5		16		10
Revenue from admission rights(2)		79		63		86		108
Fees		9		10		8		9
Parking		0		0		0		0
Commissions		22		4		24		37
Other		1		1		2		3
Total(3)		853		407		610		905

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Distrito Arcos, City of Buenos Aires

We opened Distrito Arcos on December 18, 2014. Distrito Arcos is a premium outlet located in the neighborhood of Palermo, City of Buenos Aires. It has 14,457 square meters of GLA and it consists of 64 stores, 427 parking spaces and 38 selling stands. In an open urban space, Arcos was consolidated in all its business units with growth above inflation, recovering in 2022 the pre-pandemic public.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales of approximately ARS 18,777 million, which represents a year-on-year increase of 84.4% in real terms and sales per square were approximately ARS 1,298,817. Total rental income increased from ARS 601 million in real terms for the fiscal year ended June 30, 2021, to ARS 1,049 million in fiscal year ended June 30, 2022, representing annual income per gross leasable square meter of ARS 41,952 in fiscal year 2021 and ARS 72,560 in fiscal year 2022. The shopping mall concession is undergoing legal proceedings. For more information, see “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal or Arbitration Proceedings—Arcos del Gourmet”.

70

As of June 30, 2022, Distrito Arcos’ occupancy rate was 100%.

Distrito Arcos’ tenant mix

The following table sets forth the mix of tenants by type of business at Distrito Arcos as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		16,697		88.9		10,814		74.8
Restaurant		781		4.2		728		5.0
Miscellaneous		645		3.4		1,729		12.0
Home appliances		654		3.5		1,186		8.2
Total		18777		100.0		14,457		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Distrito Arcos’ revenue

The following table sets forth selected information relating to the revenue from Distrito Arcos during the following periods:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		374		322		581		977
Percentage rent(1)		675		279		304		306
Total rent		1,049		601		885		1,283
Non-traditional advertising		26		17		13		29
Revenue from admission rights(2)		92		10		148		87
Fees		7		7		6		6
Parking		91		15		70		110
Commissions		34		30		5		38
Other		2		1		3		3
Total(3)		1,301		681		1,130		1,556

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Alto NOA, City of Salta, Province of Salta

Alto Noa is an 84-store shopping mall that opened in 1994. Alto Noa is located in the City of Salta, the capital of the Province of Salta, in the northwest region of Argentina. The province of Salta has a population of approximately 1.3 million inhabitants with approximately 0.8 million inhabitants in the City of Salta. The shopping mall has a total constructed area of approximately 31,046 square meters (including parking) which consists of 19,388 square meters of GLA. Alto Noa has a food court with 12 restaurants, a large entertainment center, a supermarket and a multiplex cinema with eight screens. The shopping mall occupies one floor and has a free parking spaces for 520 cars. Alto Noa’s targeted clientele consists of middle-income individuals between the ages of 28 and 40.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales that totaled approximately ARS 11,534 million, which represents fiscal period sales of approximately ARS 594,904 per square meter and a year-on-year increase of 34.7% in real terms. Total rental income decreased from ARS 337 million in real terms in fiscal year ended June 30, 2021, to ARS 518 million in fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 17,449 in fiscal year 2021 and ARS 26,718 in fiscal year 2022.

71

As of June 30, 2022, Alto Noa’s occupancy rate was 96.7%.

Alto NOA’s tenant mix

The following table sets forth the mix of tenants by type of business at Alto NOA as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		3,651		31.6		4,565		23.4
Entertainment		900		7.8		6,507		33.6
Home		207		1.8		245		1.3
Restaurant		1,376		11.9		1,217		6.3
Services		404		3.5		302		1.6
Miscellaneous		3,927		34.1		5,780		29.8
Home appliances		1,069		9.3		772		4.0
Total		11,534		100.0		19,388		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Alto NOA’s revenue

The following table sets forth selected information relating to the revenue of Alto NOA during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		226		209		247		341
Percentage rent(1)		292		128		140		176
Total rent		518		337		387		517
Non-traditional advertising		11		7		10		9
Revenue from admission rights(2)		29		31		42		47
Fees		4		4		4		4
Parking		0		0		0		0
Commissions		14		10		10		29
Other		1		6		2		3
Total(3)		577		395		455		609

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Alto Rosario, City of Rosario, Province of Santa Fé

Alto Rosario is a 135-store shopping mall located in the City of Rosario, Province of Santa Fe, the third largest city in Argentina in terms of population. It has a total constructed area of approximately 100,750 square meters which consists of 33,957 square meters of gross leasable area. Alto Rosario has a food court with 20 restaurants, a large entertainment center, a supermarket, and a Showcase cinema with 14 state-of-the-art screens. The shopping mall occupies one floor and has a free parking spaces that can accommodate 1,700 cars. Alto Rosario’s targeted clientele consists of middle-income individuals between the ages of 28 and 40.

72

During the fiscal year ended June 30, 2022, the public visitors to the shopping mall generated real retail sales of approximately ARS 30,189 million, which represents a year-on-year increase of 66.5% in real terms. Sales per square meter were approximately ARS 899,036. Total rental income increased from ARS 975 million in real terms in fiscal year ended June 30, 2021, to ARS 1,792 million in fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 28,905 in fiscal year 2021 and ARS 52,773 in fiscal year 2022.

As of June 30, 2022, Alto Rosario’s occupancy rate was 96.3%.

Alto Rosario’s tenant mix

The following table sets forth the tenant mix by type of business at Alto Rosario as of June 30, 2021:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		18,516		61.3		15,865		46.6
Entertainment		482		1.6		9,586		28.2
Home		1,092		3.6		1,143		3.4
Restaurant		3,156		10.5		2,506		7.4
Miscellaneous		3,141		10.4		2,428		7.2
Services		281		0.9		1,180		3.5
Home appliances		3,521		11.7		1,249		3.7
Total		30,189		100.0		33,957		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Alto Rosario’s revenue

The following table sets forth selected information relating to the revenue of Alto Rosario during the following periods:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		682		490		578		861
Percentage rent(1)		1,110		485		419		496
Total rent		1,792		975		997		1,357
Non-traditional advertising		15		15		27		33
Revenue from admission rights(2)		183		161		203		222
Fees		15		16		15		16
Parking		0		0		0		0
Commissions		41		31		35		51
Other		3		7		3		2
Total(3)		2,049		1,205		1,280		1,681

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

73

Mendoza Plaza, City of Mendoza, Province of Mendoza

Mendoza Plaza is a 127-store shopping mall which opened in 1992 and is located in the district of Guaymallén, in the Province of Mendoza. The city of Mendoza has a population of approximately 1.5 million inhabitants, making it the fourth largest City in Argentina. Mendoza Plaza Shopping consists of 42,149 square meters of GLA and has a multiplex cinema covering an area of approximately 3,659 square meters with ten screens, one of them a 4D being the first in the province, a food court with 10 restaurants, 5 restaurants on the street in the new sector called “Shopping District Food”, an entertainment center and a supermarket, which is also a tenant. The shopping mall has two levels and has a free parking spaces for 1,700 cars. Mendoza Plaza’s targeted clientele consists of middle-income individuals between the ages of 28 and 40.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales that totaled approximately ARS 17,125 million, which represents annual sales for approximately ARS 406,297 per square meter and a year-on-year increase of 16.0% in real terms. Total rental income decreased from ARS 534 million in real terms in fiscal year ended June 30, 2021 to ARS 739 million in fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 12,331 in fiscal year 2021 and ARS 17,533 in fiscal year 2022.

As of June 30, 2021, Mendoza Plaza’s occupancy rate was 91.1%.

Mendoza Plaza’s tenant mix

The following table sets forth the mix of tenants by type of business at Mendoza Plaza as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		6,862		40.1		10,104		24.1
Department store		—		—		4,260		10.1
Entertainment		687		4.0		7,351		17.4
Home		729		4.3		2,688		6.4
Restaurant		2,005		11.7		4,276		10.1
Miscellaneous		3,587		20.9		7,633		18.1
Services		31		0.2		2,876		6.8
Home appliances		3,224		18.8		2,961		7.0
Total		17,125		100.0		42,149		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Mendoza Plaza’s revenue

The table sets forth selected information relating to the revenue of Mendoza Plaza during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		318		340		371		514
Percentage rent(1)		421		194		219		318
Total rent		739		534		590		832
Non-traditional advertising		10		13		18		21
Revenue from admission rights(2)		51		48		65		81
Fees		9		9		21		24
Parking		0		0		0		0
Commissions		23		11		21		39
Other		14		17		13		11
Total(3)		846		632		728		1,008

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

74

Córdoba Shopping—Villa Cabrera, City of Córdoba

Córdoba Shopping Villa Cabrera is a shopping mall covering 35,000 square meters of surface area, with 15,368 square meters being gross leasable area. Córdoba Shopping has 100 commercial stores, a 12-screen multiplex cinema and parking spaces for 1,500 vehicles, located in Villa Cabrera, City of Córdoba, Province of Córdoba, the second largest City in Argentina in terms of population.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales of approximately ARS 9,622 million, which represents a year-on-year increase of 60.1% in real terms. Sales per square meter were approximately ARS 626,106. Total rental income increased from ARS 324 million in real terms in fiscal year ended June 30, 2021, to ARS 554 million in fiscal year ended June 30, 2022, which represents annual income per gross leasable square meter of ARS 21,083 in fiscal year 2021 and ARS 36,049 in fiscal year 2022.

As of June 30, 2022, Córdoba Shopping’s occupancy rate was 100.0%.

Córdoba Shopping—Villa Cabrera’s tenant mix

The following table sets forth the tenant mix in terms of types of business in Córdoba Shopping as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		6,944		72.1		6,544		42.5
Entertainment		247		2.6		5,842		38.0
Home		253		2.6		334		2.2
Restaurant		757		7.9		675		4.4
Miscellaneous		900		9.4		746		4.9
Services		53		0.5		730		4.8
Home appliances		468		4.9		497		3.2
Total		9,622		100.0		15,368		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

Revenue from Córdoba Shopping—Villa Cabrera

The following table sets forth selected information relating to the revenue of Córdoba Shopping during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		200		180		185		297
Percentage rent(1)		354		144		158		198
Total rent		554		324		343		495
Non-traditional advertising		6		9		15		21
Revenue from admission rights(2)		32		33		49		53
Fees		5		6		16		19
Parking		0		0		0		0
Commissions		15		10		10		19
Other		2		4		3		0
Total(3)		614		386		436		607

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

75

La Ribera Shopping, City of Santa Fé, Province of Santa Fé

We hold 50% of Nuevo Puerto Santa Fe S.A.’s (“NPSF”) shares, a corporation that is tenant of a building in which it built and currently operates “La Ribera” shopping mall, which has a surface area of 47,506 square meters, comprising 69 retail stores and seven 2D, 3D and XD-screen multiplex cinema with the latest sound and image technology. It also comprises a 510-square meter cultural center and 24,553 square meters in outdoor areas and free parking space. Its gross leasable area is approximately 10,531 square meters. The shopping mall is strategically located in Dock I of the port of the City of Santa Fe in the Province of Santa Fe, just 3 blocks away from its commercial and banking center, the place with the largest development in terms of real estate in the City of Santa Fe, 27 kilometers away from the City of Paraná and 96 kilometers away from the City of Rafaela, its range of influence represents a potential market of over one million people.

During the fiscal year ended June 30, 2022, the public visiting the shopping mall generated real retail sales of approximately ARS 4,588 million, which represents a year-on-year increase of 105.3% and sales per square meter were approximately ARS 435,666. Total rental income increased from ARS 38 million in real terms in fiscal year ended June 30, 2021 to ARS 123 million in fiscal year ended June 30, 2022, representing annual income per gross leasable square meter of ARS 3,581 in fiscal year 2021 and ARS 11,680 in fiscal year 2022.

As of June 30, 2022, La Ribera Shopping’s occupancy rate was 97.1%.

La Ribera Shopping’s tenant mix

The following table sets forth the mix of tenants by type of business at La Ribera Shopping as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		2,114		46.2		3,222		30.6
Entertainment		442		9.6		3,323		31.6
Home		163		3.5		159		1.5
Restaurant		949		20.7		2,247		21.3
Miscellaneous		552		12.0		812		7.7
Services		7		0.1		29		0.3
Home appliances		361		7.9		739		7.0
Total		4,588		100.0		10,531		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

76

La Ribera Shopping’s revenue

The following table sets forth selected information relating to the revenue of La Ribera Shopping during the fiscal years indicated:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		43		28		66		93
Percentage rent(1)		80		10		51		84
Total rent		123		38		117		177
Non-traditional advertising		2		2		7		6
Revenue from admission rights(2)		6		7		9		9
Fees		2		2		3		4
Parking		0		0		0		0
Commissions		6		3		9		19
Other		0		0		0		0
Total(3)		139		52		145		215

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.
(4)	It does not reflect our participation on this property.

Alto Comahue, City of Neuquén, Province of Neuquén

Alto Comahue, was inaugurated on March 17, 2015, and is located in the City of Neuquén, in the Patagonian region of Argentina. It has a total surface of 35,000 square meters and 11,697 square meters of GLA, approximately 1,066 roof-covered and open-air parking spaces and a large entertainment and leisure area. Alto Comahue offers 89 retail stores that house the most prestigious brands in Argentina and has a 6-screen multiplex cinema and a theme restaurant. It is a three-story building consisting of a basement where the parking space and a 1,000 square meters Food Hall are located; the ground floor consisting of 5,000 square meters for retail stores, and the first floor consisting of 1,000 square meters for restaurants with unique views of the city, 2,600 square meters of retail stores and 2,100 square meters of cinemas.

The development is a part of a mixed-use complex that further includes a supermarket that is currently in operation and 2 additional parcels of land. One of these parcels is assigned to development of a hotel and the other, which extends over 18,000 sqm -owned by the company-, to a future housing development.

During this fiscal year, visitors to the shopping mall generated real retail sales that totaled approximately ARS 7,270 million, which represent a year-on-year increase of 120.2% and sales per square meter of approximately ARS 621,527. Total rental income increased from ARS 98 million in real terms in fiscal year ended June 30, 2021 to ARS 380 million in fiscal year ended June 30, 2022, which represents total revenue for the period per gross leasable area of ARS 8,384 in fiscal year 2021 and ARS 32,487 in fiscal year 2021.

As of June 30, 2022, Alto Comahue’s occupancy rate was 97.4%.

Alto Comahue’s tenant mix

The following table sets forth the mix of tenants by type of business at Alto Comahue as of June 30, 2022:

Type of business(1)	Tenant Sales				GLA
	(in millions of ARS)		(%)		(sqm)		(% of total)
Clothes and footwear		3,411		46.8		5,509		47.1
Entertainment		332		4.6		2,350		20.1
Home		288		4.0		326		2.8
Restaurant		1,651		22.7		2,064		17.6
Miscellaneous		1,248		17.2		830		7.1
Services		94		1.3		124		1.1
Home appliances		245		3.4		494		4.2
Total		7,270		100.0		11,697		100.0

(1) Includes vacant stores as of June 30, 2022. Gross leasable area with respect to such vacant stores is included under the type of business of the last tenant to occupy such stores.

77

Alto Comahue’s revenue

The following table sets forth selected information relating to the revenue derived from Alto Comahue during the following periods:

	For the fiscal year ended June 30,
	2022		2021		2020		2019
	(in millions of ARS)
Base rent		141		65		730		632
Percentage rent(1)		239		33		153		220
Total rent		380		98		883		852
Non-traditional advertising		3		3		8		12
Revenue from admission rights(2)		23		23		26		24
Fees		5		5		6		6
Parking		0		0		0		0
Commissions		9		5		3		30
Other		1		4		3		107
Total(3)		421		138		929		1,031

(1)	Contingent rent is revenue based on a specific percentage of gross sales of our tenants.
(2)	Admission rights are the fees required from tenants for entering into a lease or a lease renewal.
(3)	Consolidated rents. Revenue relating to the collective promotion fund are not included.

Principal Terms of our Leases

Under the Civil and Commercial Code of Argentina, the term of the leases cannot exceed twenty years for residential leases and fifty years for the other leases.

Leasable space in our shopping malls is marketed through an exclusive arrangement with our wholly owned subsidiary and real estate broker Fibesa S.A., or “Fibesa.” We use a standard lease agreement for most tenants at our shopping malls, the terms and conditions of which are described below. However, our largest or “anchor” tenants generally negotiate better terms for their respective leases. No assurance can be given that lease terms will be as set forth in the standard lease agreement.

Rent amount specified in our leases generally is the higher of (i) a monthly Base Rent and (ii) a specified percentage of the tenant’s monthly gross sales in the store, which percentage generally ranges between 3% and 12% of tenant’s gross sales. Additionally, under the rent adjustment clause included in most of our rental contracts, the tenant’s basic rent is generally updated monthly or quarterly and cumulatively by the CPI index. These terms and conditions have not been applied during a period when the shopping malls remained closed due to the Social, Preventive and Mandatory Isolation decreed by the government of Argentina as a result of the novel COVID-19 virus since IRSA decided to defer the billing and collection of the Base Rent until September 30, 2020, with some exceptions and IRSA also suspended collection of the collective promotion fund during the same period, prioritizing the long-term relationship with its tenants.

In addition to rent, we charge most of our tenants an admission right, which must be paid upon execution of the lease agreement and upon its renewal. The admission right is normally paid as a lump sum or in a small number of monthly installments. If the tenants pay this fee in installments, the tenants are responsible for paying the balance of any such unpaid amount if they terminate the lease prior to its expiration. In the event of unilateral termination and/or resolution for breach by the tenants, tenants will not be refunded their admission payment without our consent. We lease our stores, kiosks and spaces in our shopping malls through our wholly-owned subsidiary Fibesa. We charge our tenants a fee for the brokerage services, which usually amounts to approximately three months of the Base Rent plus the admission right.

78

We are responsible, except in the mall Distrito Arcos, for providing each unit within our shopping malls with electricity, a main telephone switchboard, central air conditioning and a connection to a general fire detection system. We also provide the food court tenants with sanitation and with gas systems connections. In Distrito Arcos, the connections are managed by the tenants. Each tenant is responsible for completing all necessary installations within its rental unit, in addition to paying direct related expenses, including electricity, water, gas, telephone and air conditioning. Tenants must also pay for a percentage of total expenses and general taxes related to common areas. We determine this percentage based on different factors. The common area expenses include, among others, administration, security, operations, maintenance, cleaning and taxes.

We carry out promotional and marketing activities to draw consumer traffic to our shopping malls. These activities are paid for with the tenants’ contributions to the Collective Promotion Fund, or “CPF,” which is administered by us. Tenants are required to contribute 15% of their rent (Base Rent plus Percentage Rent) to the CPF. We may increase the percentage tenants must contribute to the CPF with up to 25% of the original amount set forth in the corresponding lease agreement for the contributions to the CPF. We may also require tenants to make extraordinary contributions to the CPF to fund special promotional and marketing campaigns or to cover the costs of special promotional events that benefit all tenants. We may require tenants to make these extraordinary contributions up to four times a year provided that each extraordinary contribution may not exceed 25% of the tenant’s preceding monthly lease payment.

Each tenant leases its rental unit as a shell without any fixtures and is responsible for the interior design of its rental unit. Any modifications and additions to the rental units must be pre-approved by us. We have the option to charge the tenant for all costs incurred in remodeling the rental units and for removing any additions made to the rental unit when the lease expires. Furthermore, tenants are responsible for obtaining adequate insurance for their rental units, which must cover, among other things, damage caused by fire, glass breakage, theft, flood, civil liability and workers’ compensation.

Control Systems

IRSA has computer systems equipped to monitor tenants’ sales in all of its shopping malls. IRSA also conducts regular audits of our tenants’ accounting sales records in all of our shopping malls. IRSA uses the information generated from the computer monitoring system to prepare statistical data regarding, among other things, total sales, average sales and peak sale hours for marketing purposes and as a reference for the internal audit. Most of its shopping mall lease agreements require the tenant to have its point of sale system linked to our server.

Competition

IRSA is the largest owner and operator of shopping malls, offices and other commercial properties in Argentina in terms of gross leasable area and number of rental properties. Given that most of our shopping malls are located in highly populated areas, there are competing shopping malls within, or in close proximity to, areas targeted by our real estate portfolio, as well as stores located on avenues or streets. The number of shopping malls in a particular area could have a material effect on the ability to lease space in shopping malls and on the amount of rent that we are able to charge. We believe that due to the limited availability of large plots of land and zoning restrictions in the City of Buenos Aires, it is difficult for other companies to compete in areas through the development of new shopping malls. The principal competitor is Cencosud S.A. which owns and operates Unicenter Shopping and the Jumbo hypermarket chain, among others.

79

The following table shows certain information concerning the most significant owners and operators of shopping malls in Argentina, as of June 30, 2022:

Entity	Shopping malls	Location	GLA	Market share (1)
				(%)
IRSA	Alto Palermo	City of Buenos Aires	20,507	1.76
	Abasto Shopping (2)	City of Buenos Aires	37,162	3.18
	Alto Avellaneda	Province of Buenos Aires	39,944	3.42
	Alcorta Shopping	City of Buenos Aires	15,812	1.35
	Patio Bullrich	City of Buenos Aires	11,664	1.00
	Dot Baires Shopping (3)	City of Buenos Aires	47,296	4.05
	Soleil	Province of Buenos Aires	15,734	1.35
	Distrito Arcos	City of Buenos Aires	14,457	1.24
	Alto Noa	City of Salta	19,388	1.66
	Alto Rosario	City of Rosario	33,957	2.91
	Mendoza Plaza	City of Mendoza	42,149	3.61
	Córdoba Shopping	City of Córdoba	15,368	1.32
	La Ribera Shopping (4)	City of Santa Fe	10,531	0.90
	Alto Comahue	City of Neuquén	11,697	1.00
Subtotal			335,666	28.74
Cencosud S.A.			277,203	23.74
Other operators			555,039	47.52
Total			1,167,908	100

(1)	Corresponding to gross leasable area in respect of total gross leasable area. Market share is calculated dividing sqm over total sqm.
(2)	Does not include Museo de los Niños (3,732 square meters in Abasto).
(3)	Our interest in PAMSA is 80%.
(4)	Owned by Nuevo Puerto Santa Fé S.A., in which we are a joint venture partner.

Source:

INDEC.

Seasonality

Our business is directly affected by seasonality, influencing the level of our tenants’ sales. During Argentine summer holidays (January and February) our tenants’ sales typically reach their lowest level, whereas during winter holidays (July) and in Christmas (December) they reach their maximum level. Clothing retailers generally change their collections in spring and autumn, positively affecting our shopping malls’ sales. Discount sales at the end of each season are also one of the main seasonal factors affecting our business.

Information technology

We keep investing in technological innovation. The advances of society and changes in consumer habits constantly challenge us and motivate us to apply the latest technological trends to serve the visitor’s experience in the shopping malls and learn more about our clients. We continued with the company digital transformation, extending the use of cloud based purchases and auctions platform for cost optimization, Robotic Process Automation or RPA automation in different areas. We also migrated our datacenter, aiming maximum system availability and signed a new lease to renew CCTV cameras, to improve security and enabling future capabilities, such as artificial intelligence of things (AIoT). 

This year we continued the development of APPA, the application that facilitates the experience of consumers in shopping malls, through which you can pay for parking, reserve shifts, enter virtual lines, obtain discounts, benefits and participate in promotions, and prepares to launch payments and gift vouchers. During the year, users of ¡appa! carried out more than 900,000 transactions on the platform, including consumption in shopping malls, use of parking spaces, and redemption of Corporate benefits.

Offices

Management of office buildings

We generally act as the manager of the office properties. We typically own the entire building or a substantial number of floors in the building. The buildings in which we own floors are generally managed pursuant to the terms of a condominium agreement that typically provides for control by a simple majority of the interests based on owned area. As building manager, we handle services such as security, maintenance and housekeeping, which are generally outsourced. The cost of the services is passed through to, and paid for by, the tenants, except in the case of our units that have not been leased, if any, for which we bear the cost. We market our leasable area through commissioned brokers or directly by us.

80

Leases

We usually lease our offices by using contracts with an average term between three to ten years. Contracts for the rental of office buildings and other commercial properties are generally stated in U.S. dollars. Rental rates for renewed periods are negotiated at market value.

Properties

The following table sets forth certain information regarding our office buildings, as of June 30, 2022:

	Date of acquisition/ development	GLA(1)		Occupancy rate(2)		Ownership interest		Total rental income for the fiscal year ended June 30, 2022(4)
		(sqm)		(%)		(%)		(in million of ARS)
Offices
AAA & A buildings
República Building(6)	Dec 14		—		—		—		446.3
Bankboston Tower(6)	Dec 14		—		—		—		1.7
Intercontinental Plaza(3)	Dec 14		2,979		100.0		100		146.6
Dot Building	Nov 06		11,242		92.6		80		324.9
Zetta(5)	May-19		32,173		92.2		80		1.204.8
200 Della Paolera (7)	Dec-20		18,016		67.1		100		730.4
Total AAA & A buildings			64,410		85.5				2,854.7
B buildings
Philips	Jun 17		8,017		81.4		100		175.2
Suipacha 652/64	Dec 14		11,465		—		100		11.2
Total B buildings			19,482		33.5		100		186.4
Total Offices			83,892		73.3				3,041.1

(1)	Corresponds to the total leasable surface area of each property as of June 30, 2022. Excludes common areas and parking spaces.
(2)	Calculated by dividing occupied square meters by total gross leasable area of the relevant property as of June 30, 2022.
(3)	We own 13.2% of the building which covers an area of 22,535 square meters of gross leasable area, meaning we own 2,979 square meters of gross leasable area.
(4)	Corresponds to the accumulated income of the period.
(5)	Excludes 815 square meters from the occupancy calculation because they are under construction for the development of “Flex Offices” project.
(6)	The office buildings were sold during the fiscal year.
(7)	We own 51.4% of the building that has 35,000 square meters of gross leasable area, meaning we own 18,016 square meters of gross leasable area. As a subsequent event, on August 17, 2022, we sold and transferred one floor of the tower “200 Della Paolera” for a total leasable area of approximately 1,184 sqm and 8 parking lots located in the building. For more information see “Recent Developments – 200 Della Paolera tower floor sale”.

Occupancy rate

The following table shows our offices occupancy percentage as of the end of fiscal years ended June 30:

	Occupancy rate(1)
	As of June 30,
	2022		2021		2020		2019
	(%)
Offices:
República Building (2)		—		66.9		86.9		95.2
Bankboston Tower (2)		—		—		96.4		93.5
Intercontinental Plaza		100.0		100.0		100.0		100.0
Bouchard 710 (2)		—		—		92.5		100.0
DOT Building		92.6		84.9		84.9		100.0
Zetta Building (3)		92.2		84.7		97.5		97.5
200 Della Paolera		67.1		80.2		—		—
Philips Building		81.4		93.1		82.7		45.7
Suipacha 652/64		—		17.3		31.2		44.6
Total		73.3		74.7		86.1		88.3

(1)	Leased square meters pursuant to lease agreements in effect as of the end of fiscal year over gross leasable area of offices for the same fiscal year.
(2)	The office buildings were sold during the fiscal year.
(3)	Excludes 815 sqm from the occupancy calculation because they are under construction for the development of “Flex Offices” project.

81

Annual average income per surface area as of June 30, 2022, 2021, 2020 and 2019 (1):

	Income per square meter (1)
	As of June 30,
	2022		2021		2020		2019
	(ARS/sqm)
República Building (2)		—		62,441		61,754		57,791
Bankboston Tower (2)		—		—		55,718		59,289
Intercontinental Plaza		49,196		77,992		33,420		37,929
Bouchard 710 (2)		—		—		65,945		60,343
DOT Building		31,207		47,642		59,997		49,244
Zetta Building		41,685		54,574		59,745		39,223
200 Della Paolera (3)		60,394		36,734		—		—
Philips Building		26,834		30,598		27,554		63,526
Suipacha 652/64		—		47,020		26,860		54,997

(1)	Calculated by dividing annual rental income by the gross leasable area of offices based on our interest in each building as of June 30 for each fiscal period.
(2)	The office buildings were sold during the fiscal year.
(3)	The building became operational in December 2020, due to which the contracts and related revenues are not comparable to previous years.

New agreements and renewals

The following table sets forth certain Information on lease agreements as of June 30, 2022:

Property	Number of lease agreement (1) (5)		Annual rental price (2)		Rental income per sqm (new and renewed) (3)		Previous rental income per sqm (3)		Number of non- renewed leases		Non- renewed leases annual base rent amount (4)
			(in millions of ARS)		(ARS)		(ARS)				(in millions of ARS)
Dot Building		5		135		1,720		2,581		1		38
Philips Building		1		7		1,126		2,763		1		20
Intercontinental Plaza		3		90		2,532		3,011		—		—
200 Della Paolera (6)		4		128		2,982		546		4		162
Zetta Building		1		74		2,208		2,509		1		72
Total (7)		14		434		2,208		2,208		7		292

(1)	Includes new and renewed leases executed in fiscal 2022.
(2)	Leases in U.S. dollars converted to Pesos at the exchange rate prevailing on the first month of the agreement, multiplied by 12 months.
(3)	Monthly value.
(4)	Leases in U.S. dollars converted to Pesos at the exchange rate prevailing on the last month of the agreement, multiplied by 12 months.
(5)	It does not include leases over parking spaces, antennas or terrace area.
(6)	The building became operational in December 2020, due to which the contracts and related revenues are not comparable to previous years.
(7)	Weighted average for total rental income per sqm (new and renewed) and previous rental income per sqm.

82

The following table sets forth the schedule of estimated lease expirations for our offices and other properties for leases in effect as of June 30, 2022. This data is presented assuming that none of our tenants exercises its option to renew or terminate its lease prior to expiration (most leases have renewal clauses):

Expiration year	Number of leases due to expire (1)		Square meters of leases due to expire		Square meter of leases due to expire			Annual rental income amount of leases due to expire		Annual rental income amount of leases to expire
			(sqm)		(%)			(in millions of ARS)		(%)
As of June 30, 2022		—		—		—			—		—
As of June 30, 2023		5		5,922		10	%		213		10	%
As of June 30, 2024		15		34,151		56	%		1,295		61	%
As of June 30, 2025 and thereafter		25		20,842		34	%		600		28	%
Total		45		60,915		100	%		2,109		100	%

(1)	Includes offices with leases that have not been renewed as of June 30, 2022.
(2)	It does not include square meters or revenue from parking spaces, terraces or antennas.

Intercontinental Plaza, City of Buenos Aires

Intercontinental Plaza is a modern 24-story building located next to the Intercontinental Hotel in the historic neighborhood of Monserrat in downtown City of Buenos Aires. We own a 13.2% interest in the building which has footage averaging 22,535 square meters of gross leasable area; meaning we own 2,979 square meters of gross leasable area in this building. The principal tenant currently is Total Austral, and as an added value Banco Supervielle (Bank Branch) and Starbucks Coffee providing different services to the building.

Dot Building, City of Buenos Aires

Our subsidiary Panamerican Mall S.A. developed an office building of 11,242 square meters of gross leasable area next to Dot Baires Shopping. This building was inaugurated in July 2010, which meant our arrival at the growing corridor of the Northern Area with respect to offices for rent. The building’s principal tenants include Farmanet, Astrazeneca S.A., G.E. Healthcare and HP, among others.

Zetta Building

Our subsidiary Panamerican Mall S.A. built an office building of 32,173 square meters of gross leasable area and 11 floors located in the commercial complex “Polo Dot” in Buenos Aires City. This new A+, and potentially LEED, building was inaugurated in May 2019, continuing to consolidate our position in the North Zone corridor of offices for rent. As of June 30, 2022, the building was occupied approximately 91% by Mercado Libre. We are currently developing our first Flex office space in one of the vacant 815 sqm sectors (Ground Floor Office “B”). The project offers private offices, fully equipped, furnished and fully operational, ready to use.

200 Della Paolera Building

200 Della Paolera is a 126-meters high triangular-shaped tower of AAA offices and 55,000 square meters of surface, plus 70 linear meters of Curtain Wall on the Río de la Plata, developed on the last vacant land plot of Catalinas Norte, one of the most premium corporate areas of Argentina. The building has 35,000 square meters of GLA, 318 parking spaces, changing rooms, security, gastronomy services and has become an icon of the city, built sustainability in mind and high quality design. The commercialization process is moving forward with encouraging occupancy from premium tenants such as Globant, Merryl Lynch, Fiserv, La Brioche Dorée and us together with Cresud S.A.C.I. F. y A. (“CRESUD”) as owners and tenants.

83

Suipacha 652/64, City of Buenos Aires

Suipacha 652/64 is a 7-story office building located in the office district of the City of Buenos Aires. We own the entire building and 62 parking spaces. The building has unusually large floors, most measuring 1,580 square meters. The average footage of the building is 11,465 square meters of gross leasable area.

Phillips Building, City of Buenos Aires

The historic Philips Building adjoins our Dot Baires shopping mall, and faces Avenida General Paz, in the City of Buenos Aires. It has 4 office floors, a total GLA of approximately 8,017 sqm, and a remaining construction capacity of approximately 20,000 sqm. IRSA is owner of 100% of the building. It is currently one of the assets with the highest occupancy, with companies such as Philips, Salentein and a Maternity Garden, which opening generates a differential service to the Polo Dot.

Competition

Virtually all our office’s properties and other commercial properties other than shopping malls are in developed urban areas. There is a great number of office buildings, shopping malls, retail stores and residential houses in the zones where our properties are located. It is a highly fragmented market and the abundant number of comparable properties in the vicinities may have an adverse impact on the ability to lease or sell office space and other properties and may have an adverse impact on the sale and rental price of properties.

In the future, both domestic and foreign companies are likely to participate in the real estate market in Argentina, hence competing with us when it comes to business opportunities. In addition, in the future we may participate in the development of a market for foreign real property, and we are likely to find well-established competitors.

In the premium office segment, the Company competes with other relevant market players, such as RAGHSA, who together with IRSA represent the 2 most important players.

Hotels

The hotel activity, one of the most affected by the pandemic, showed a good performance during this recovery exercise, mainly motivated by the boom in domestic tourism. The Llao Llao hotel, which the company owns in the city of Bariloche, in southern Argentina, reached record occupancy levels and is an interesting attraction for high-income international and local tourism. Hotels in Buenos Aires, including the Libertador and Intercontinental, are expected to have a greater influx of international tourism and the full recovery of corporate event and convention activity to reach pre-pandemic revenue levels.

During fiscal year 2022, we kept our 76.34% interest in Intercontinental hotel, 100% interest in Libertador hotel and 50.00% interest in Llao Llao.

The following chart shows certain information regarding our luxury hotels:

Hotels	Date of Acquisition	IRSA’s Interest	Number of rooms	Occupancy (1)	Average Price per Room(2)	Fiscal Year Sales as of June 30 (in millions of ARS)
		(%)		(%)	ARS	2022	2021	2020	2019
Intercontinental (3)	11/01/1997	76.34	313	35.1	11,468	800	215	1,776	2,583
Libertador (4)	03/01/1998	100	200	26.3	9,544	295	71	621	1,456
Llao Llao (5)	06/01/1997	50	205	61.2	37,153	3,205	1,225	2,584	3,234
Total			718	40.1	22,307	4,300	1,511	4,981	7,273

(1)	Accumulated average in the twelve-month period.
(2)	Accumulated average in the twelve-month period.
(3)	Through Nuevas Fronteras S.A.
(4)	Through Hoteles Argentinos S.A.U.
(5)	Through Llao Llao Resorts S.A.

84

Hotel Intercontinental, City of Buenos Aires

In November 1997, we acquired 76.34% of the Hotel Intercontinental. The Hotel Intercontinental is located in the downtown City of Buenos Aires neighborhood of Montserrat, near the Intercontinental Plaza office building. Intercontinental Hotels Corporation, a United States corporation, currently owns 23.66% of the Hotel Intercontinental. The hotel’s meeting facilities include eight meeting rooms, a convention center and a divisible 588 sqm ballroom. Other amenities include a restaurant, a business center, a sauna and a fitness facility with swimming pool. The hotel was completed in December 1994 and has 313 rooms.

Hotel Libertador, City of Buenos Aires

In March 1998 we acquired 100% of the Sheraton Libertador Hotel from Citicorp Equity Investment for an aggregate purchase price of USD 23 million. In March 1999, we sold a 20% interest in the Sheraton Libertador Hotel for USD 4.7 million to Hoteles Sheraton de Argentina.

During the fiscal year 2019, we reacquired 20% of the shares of Hoteles Argentinos S.A.U. (“HASAU”), reaching 100% of the capital stock of HASAU and beginning to operate the hotel directly under the name “Libertador.” The hotel is in downtown Buenos Aires. The hotel contains 193 rooms and 7 suites, eight meeting rooms, a restaurant, a business center, a spa and fitness facilities with a swimming pool.

Hotel Llao Llao, San Carlos de Bariloche, Province of Rio Negro

In June 1997 we acquired the Hotel Llao Llao from Llao Llao Holding S.A. Fifty percent is currently owned by the Sutton Group. The Hotel Llao Llao is located on the Llao Llao peninsula, 25 kilometers from the City of San Carlos de Bariloche, and it is one of the most important tourist hotels in Argentina. Surrounded by mountains and lakes, this hotel was designed and built by the famous architect Bustillo in a traditional alpine style and first opened in 1938. The hotel was renovated between 1990 and 1993 and has a total constructed surface area of 15,000 sqm and 158 original rooms. The hotel-resort also includes an 18-hole golf course, tennis courts, fitness facility, spa, game room and swimming pool. The hotel is a member of The Leading Hotels of the World, Ltd., a prestigious luxury hospitality organization representing 430 of the world’s finest hotels, resorts, and spas. The Hotel Llao Llao is currently being managed by “IRSA- Galerías Pacífico S.A. – UT”, a Transitory Union constituted 50% by IRSA and 50% by Grupo Sutton. During 2007, the hotel was subject to an expansion and the number of suites in the hotel rose to 205 rooms. In 2019, began the remodeling of the Bustillo Wing in the hotel, where 42 rooms that were already operational at the end of the year were modernized and valued.

Bariloche Plot, “El Rancho,” San Carlos de Bariloche, Province of Río Negro

On December 14, 2006, through our hotel operator subsidiary, Llao Llao Resorts S.A., we acquired a land covering 129,533 sqm of surface area in the City of San Carlos de Bariloche in the Province of Río Negro. The total price of the transaction was USD 7 million. The land is in the border of the Lago Gutiérrez, close to the Llao Llao Hotel in an outstanding natural environment and it has a large cottage covering 1,000 sqm of surface area designed by the architect Ezequiel Bustillo.

Sale and Development of Properties and Land Reserves

Residential Development Properties

The acquisition and development of residential apartment complexes and residential communities for sale is one of our core activities. Our development of residential apartment complexes consists of the new construction of high-rise towers or the conversion and renovation of existing structures such as factories or warehouses. In connection with our development of residential communities, we frequently acquire vacant land, develop infrastructure such as roads, utilities, and common areas, and sell plots of land for construction of single-family homes. We may also develop or sell portions of land for others to develop complementary facilities such as shopping areas within residential developments.

85

In fiscal year ended June 30, 2022, revenues from the sale and development of properties amounted to ARS 746 million, compared to ARS 1,271 million posted in the fiscal year ended June 30, 2021.

Construction and renovation works on our residential development properties are performed, under our supervision, by independent Argentine construction companies that are selected through a bidding process. We enter into turnkey contracts with the selected company for the construction of residential development properties pursuant to which the selected company agrees to build and deliver the development for a fixed price and at a fixed date. We are generally not responsible for any additional costs based upon the turnkey contract. All other aspects of the construction, including architectural design, are performed by third parties.

Another modality for the development of residential undertakings is the exchange of land for constructed square meters. In this way, we deliver undeveloped pieces of land and another firm is in charge of building the project. In this case, we receive finished square meters for commercialization, without taking part in the construction works.

The following table shows information about IRSA’s land reserves as of June 30, 2022:

	Ownership Interest		Date of acquisition	Land Surface		Buildable surface		GLA		Salable Surface		Book Value
	(%)			(sqm)								(in millions of ARS)
RESIDENTIAL - BARTER AGREEMENTS
CONIL - Güemes 836 – Mz. 99 & Güemes 902 – Mz. 95 & Commercial stores - Buenos Aires (4)		100	Jul-96		—		—		—		1,461		160
Córdoba Shopping Adjoining plots – Residential		100	May-15		—		—		—		1,080		81
Libertador 7400 (Quantun Bellini) Trust		100	Feb-21		—		—		—		186		91
Ancón (Luis M. Campos)Trust		100	Feb-21		—		—		—		1,014		311
Av Figueroa Alcorta 6464 Trust		100	Feb-21		—		—		—		1,786		812
Coto Abasto air space – Tower 1 - City of Buenos Aires		100	Sep-97		—		—		—		2,018		608
Total Intangibles (Residential)					—		—		—		7,545		2,063
LAND RESERVES:
UOM Luján - Buenos Aires(5)		100	May-08		1,160,000		464,000		—		—		2,238
San Martin Plot (Ex Nobleza Piccardo) - Buenos Aires(5)		50	May-11		159,996		500,000		—		—		11,476
La Adela - Buenos Aires		100	Aug-14		9,868,500		3,951,227		—		—		3,145
Puerto Retiro – City of Buenos Aires (8)		50	May-97		82,051		246,153		—		—		-
Ezpeleta plot (Quilmes)		100	Apr-22		465,642		521,399		—		—		4,065
Costa Urbana – City of Buenos Aires (9)		100	Jul-97		716,180		895,225		—		693,445		89,309
La Plata - Greater Buenos Aires (5)		100	Mar-18		78,614		116,553		—		—		2,390
Caballito plot - City of Buenos Aires		100	Jan-99		23,791		86,387		10,518		75,869		7,782
Subtotal Mixed-uses					12,616,998		6,924,904		99,523		933,091		137,832
Coto Abasto air space – Tower 2 - City of Buenos Aires (2)		100	Sep-97		—		10,768		—		8,193		85
Caballito Block 35 – City of Buenos Aires		100	Oct-98	9879			57,192		—		30,064		1,037
Zetol – Uruguay		90	Jun-09		—		—		—		64,080		763
Vista al Muelle – Uruguay		90	Jun-09		—		—		—		60,360		867
Córdoba Shopping Adjoining plots – Córdoba (2)		100	May-15		2,636		9,000		—		1,080		89
Neuquén - Residential plot – Neuquén (2) (6)		100	Jul-99		13,000		57,000		—		—		196
Subtotal residential					25,515		133,960		—		163,777		3,037
Polo Dot commercial expansion – City of Buenos Aires (7)		80	Nov-06		—		—		15,940		—		3,238
Beruti y Coronel Diaz Building		100	Jun-22		2,387		—		5,067		—		—
Paraná plot - Entre Ríos (3)		100	Aug-10		10,022		5,000		5,000		—		—
Subtotal retail					12,409		5,000		26,007		—		6,369
Polo Dot - Offices 2 & 3 - City of Buenos Aires		80	Nov-06		12,800		—		38,400		—		5,812
Intercontinental Plaza II - City of Buenos Aires		100	Feb-98		6,135		—		19,598		—		2,205
Córdoba Shopping adjoining plots – Córdoba (2)		100	May-15		5,365		5,000		5,000		—		4
Subtotal offices					24,300		5,000		62,998		—		8,021
Total future developments					12,616,998		6,924,904		99,523		933,091		137,832
Other land reserves (1)					3,279,564		—		7,297		262		4,350
Total land reserves					15,896,562		6,924,904		106,820		933,353		142,182

(1) Includes Zelaya 3102-3103, Chanta IV, Anchorena 665, Alto II Condominiums, Ocampo parking spaces, DOT adjoining plot. adjoining plot Mendoza Shopping, Pilar R8 Km 53, Pontevedra, San Luis Land and Llao Llao Land.

86

(2)	These lands are classified as Property for sale; therefore, their value is maintained at book value. The rest of the land is classified as Investment Properties, valued at market value.
(3)	Pending deed subject to certain conditions.
(4)	Classified as Intangible Assets, therefore their value is maintained at book value.
(5)	Estimated maximum buildable area according to the projects, still pending final approvals.
(6)	Estimated buildable area according to the first draft, which to date is about 45,000 sqm according to the latest news from the Municipality.
(7)	Applicable to the expansion of the Zetta Building.
(8)	This land is in judicial litigation.
(9)	Previous of the transfer of lots to the GCBA (in this case the meters will be 693,445 sqm of salable surface and 866,806 sqm of buildable surface).

The following table shows information about IRSA’s expansions on its current assets as of June 30, 2022

Expansions	Ownership interest	Surface	Locations
	(%)	(sqm)
Alto Palermo	100	4,336	City of Buenos Aires
Paseo Alcorta	100	1,337	City of Buenos Aires
Alto Avellaneda	100	23,737	City of Buenos Aires
Alto Noa	100	3,068	City of Buenos Aires
Soleil	100	17,718	City of Buenos Aires
Alto Comahue	100	3,325	City of Buenos Aires
Subtotal future expansions		53,521
Total Shopping Malls		53,521
Patio Bullrich - Offices / Hotel (1)	100	20,000	City of Buenos Aires
Alto Palermo	100	14,119	City of Buenos Aires
Córdoba Shopping	100	7,000	Cordoba
Alto Rosario (2)	100	15,000	Rosario
Philips Building	100	19,706	City of Buenos Aires
Subtotal future expansions		75,905
Total offices + residential		75,905
Total expansions		129,426

Residential Properties (available for sale)

In the residential market, we acquire undeveloped properties strategically located in densely populated areas of the City of Buenos Aires, particularly properties located near shopping malls and hypermarkets or those to be constructed. We then develop multi-building high-rise complexes targeting the middle- and high- income market. These are equipped with modern comforts and services, such as open “green areas,” swimming pools, sports and recreation facilities and 24-hour security.

87

Condominios del Alto II – City of Rosario, Province of Santa Fe

The project will be comprised of two opposing building blocks, commercially divided into 10 sub-blocks. The project consists of a total of 189 apartments distributed over 6 floors and 195 parking spaces located in two basements. Amenities include a swimming pool with sundeck, multipurpose room, sauna, fitness center with locker rooms, and laundry facility. As of June 30, 2022, the works on parcel H have been completed, having received all the units committed to the exchange and being available for sale at this date, 1 parking space.

Horizons, Vicente López, Olivos, Province of Buenos Aires.

The IRSA-CYRELA Project, developed over two adjacent blocks, was launched in March 2008 under the name Horizons. Horizons is one of the most significant developments in Greater Buenos Aires, featuring a new concept in residential complexes given its emphasis on the use of common spaces. This project includes two complexes with a total of six buildings: one complex faces the river and consists of three 14-floor buildings, the “Río” complex, and the other one, facing Libertador Avenue, consists of three 17-floor buildings, it is known as the “Parque” complex, thus totaling 59,000 square meters built of saleable area distributed in 467 units (excluding the units to be delivered as consideration for the purchase of the lands). Horizons is a unique and style-innovating residential complex offering 32 amenities, including a meeting room, work zone, heated swimming pools, mansion with spa, sauna, gym, children room, teen room, thematically landscaped areas, and aerobic trail. The showroom was opened to the public in March 2008 with great success. As of June 30, 2022, all units were sold and the stock available for sale consisted of 1 parking space and 18 storage spaces.

Pereiraola (Greenville), Hudson – Province of Buenos Aires

In April de 2010 we sold Pereiraola S.A., a company owner of certain lands adjacent to Abril Club de Campo that comprised 130 hectares, for USD 11.7 million. The purchaser would develop a project that includes the fractioning into lots, a condo-hotel, two polo fields, and apartment buildings. The delivery to the Company of 39,634 square meters of lots amounting to approximately USD3 million was included in the sale price. As of June 30, 2022, the balance of the price of the sale operation has been received and all the lots that remained to be received have been transferred as the balance of the price of the sale carried out in 2010, the assignment was made on October 14, 2020.

Intangibles – Units to be received under barter agreements

Conil – Avellaneda, Province of Buenos Aire

These plots of land we own, through IRSA, face Alto Avellaneda shopping mall, totaling 2,398 square meters distributed in two opposite corners and, according to urban planning standards, around 6,000 square meters may be built. Its intended use, either through our own development or sale to a third party, is residential with the possibility of a retail space as well. In November 2014, a barter deed was executed to carry out a residential development, in consideration of which IRSA will receive 1,389 square meters of retail stores located on the ground floors of blocks 99 and 95 at Güemes 836 and Güemes 902, respectively. The barter was valued at USD 0.7 million. Considerations for block 95 and 99 were estipulated to be delivered in January 2018 and September 2018, respectively. In June 2018 an extension to the barter agreement was signed. In consideration for the delay and as compensation, IRSA will receive an additional apartment (55.5 square meters) and one parking lot (14 square meters).

88

Mixed uses

Costa Urbana – formerly Solares de Santa María – Costanera Sur, City of Buenos Aires

On December 21, 2021, the law from Buenos Aires City congress approving a New Zoning Regulations for the development of the property, was passed, and published. The Plot of approximately 71 hectares, owned by the Company since 1997, previously known as “Solares de Santa María”, is in the riverfront of the Río de la Plata, in the South Coast of the Autonomous City of Buenos Aires, southeast of Puerto Madero. The published law grants a New Zoning Area, designated: “U73 - Public Park and Costa Urbana Urbanization”, which enables a mixed-use development, combining, residential, office buildings, retail, services, public spaces, education, and entertainment.

The Project will have a construction capacity of approximately 895.000 sqm (28,194 sqm will be transferred, as consideration, to the Government of the Autonomous City of Buenos Aires, leaving a total of 866,806 sqm net), which will drive growth for the coming years through the development of mixed-use project.

IRSA will transfer ownership to the City of 50.8 hectares destinated for public use, which represent approximately 71% of the total area of the property and will contribute with three additional lots of the property, two for the Sustainable Urban Development Fund and one for the Innovation Trust, Science and Technology of the Government of the Autonomous City of Buenos Aires, to which the sum of USD 2,6 million in cash and the amount of 3,000,000 sovereign bonds (AL35) was also contributed according to the terms agreed by the new law.

Likewise, the Company will oversee putting in place the infrastructure and road works on the property serving the new city blocks generated and will carry out the public space works contributing up to USD 40 million, together with the maintenance of the public spaces (assigned for 10 years or until the sum of USD 10 million is completed).

“Costa Urbana” will change the landscape of the City of Buenos Aires, bringing life to an undeveloped area and will be an exceptional project due to its size, location and connectivity, providing the City the possibility of expanding and recovering its access to the Río de la Plata coast with walkable areas, recreation, green spaces and public parks.

On October 29, 2021, a notification was received in relation to a collective legal protection action, requesting the convening of a public hearing prescribed by art. 63 of the Constitution of the City of Buenos Aires and the suspension of the processing of Bill 1831 - J 2021 (Trial Court of Administrative and Tax Law No. 10, Sec. 19 – Cause “Civil Association Observatory of the Right to City and others against GCBA and others on Protection Action (Amparo) – Others” - EXP J-01-00166469-3/2021-0). The Company proceeded to answer the lawsuit on November 12, 2021, requesting its rejection and on March 10, 2022, the court issued a ruling partially upholding the (amparo) legal protection. On March 15, 2022, IRSA as well as the Government of the City of Buenos Aires -codefendant in the case- appealed the ruling. On March 17, 2022, the court granted the appeals with suspensive effect of the contested sentence (in accordance with the provisions of Law No. 2145). As of the date of this Annual Report, the issue is to be resolved by Room IV of the “Contentious-Administrative, Tax and Consumer Relations” Chamber (Room IV).

Ex UOM – Luján, Province of Buenos Aires

This 116-hectare plot of land is located in the 62 Km of the West Highway, in the intersection with Route 5 and was originally purchased by Cresud from Birafriends S.A. for USD 3 million on May 31, 2008. In May 2012, the Company acquired the property through a purchase and sale agreement entered into between related parties, thus becoming the current owner. Our intention is to carry out a mixed-use project, taking advantage of the environment consolidation and the strategic location of the plot. At present, dealings are being carried out so as to change the zoning parameters, thus enabling the consummation of the project.

89

Ex Nobleza Piccardo Plant – San Martín, Province of Buenos Aires

This plot of land is owned by Quality Invest. On May 31, 2011, Quality Invest S.A. and Nobleza Picardo S.A.I.C. y F. (Nobleza) executed the title deed for the purchase of a plot of land extending over 160,000 square meters located in the District of San Martín, Province of Buenos Aires, currently intended for industrial purposes and suitable in terms of characteristics and scales for mixed-use developments.

The Master Plan, by which it is projected to develop a large-scale integral urbanization (residential, commercial, etc.), which includes the construction of approximately 540,000 sqm, was endorsed by the Municipality of San Martin through Decree 1589/19 and registered before the General Directorate of Urbanism and Directorate of Urban Planning of the Municipality. Likewise, the subdivision plan in accordance with the urban indicators was presented to the Directorate of Cadastre of the Province of Bs. As.

Additionally, during fiscal year 2022, Quality Invest S.A. and the Municipality of San Martín signed the following documents:

· Peretz Club Agreement Closing Minutes: The Company paid the certificates owed for the work in question already completed, releasing both parties from any claim regarding the documents signed on January 20, 2015. The amount owed was ARS 18,926,541 and the execution of the works are described, detailed and carried out.

· Complementary Agreement with the Municipality of San Martin: The ending of the Rodriguez Peña work and the relocation and start-up of the Edenor substation are agreed, in accordance with the plan and specifications drawn up by TIS and that are part of the annexes of the same. In return, the certifications owed will be paid as follows: The total is ARS 26,085,086: ARS 15,000,000 have already been paid; and the remaining amount (without any adjustment clause) will be paid at the time of provisional reception of the work, where will sign the Certificate of Delivery.

Córdoba Shopping Mall Project

The Company owns a few plots adjacent to Córdoba Shopping Mall with a construction capacity of approximately 13,500 square meters in the center of the City of Córdoba.

In May 2016, a preliminary barter agreement was signed for 13,500 square meters out of the total construction capacity, subject to certain conditions, for a term of one year, at the end of which the deed will be signed. It will be a mixed residential and office project and, as part of the consideration, the Company will receive 2,160 square meters in apartments, parking spaces, shopping space, plus the management of permits, unifications and subdivisions in 3 plots. The delivery of the consideration will be at most, for Tower I in May 2022, and for Tower II in July 2024. The value of the barter was USD 4 million.

As a subsequent event, in August 2022, a plot of 3,240 sqm was exchanged, where a housing tower will be built. We will receive as consideration, within a period of between 36 and 44 months, functional units that represent 16% of the square meters, with a minimum of 1,080 square meters, together with garage units and, if built, also storage units. The value of the swap is USD 2 million.

La Plata Plot of land

On March 22, 2018, we acquired 100% of a plot of land of 78,000 sqm of surface in the town of La Plata, province of Buenos Aires. The transaction was consummated through the purchase of 100% of the shares of Entertainment Center La Plata S.A. that owns 61.85% of the property and the direct purchase of the remaining 38.15% from unrelated third parties.

90

The price of the acquisition was USD 7.5 million which have been fully paid. The company intend to use the property to develop a mixed-use project, given the property’s characteristics for a commercial development in a district with high potential.

On January 21, 2019, Ordinance No. 11,767 approved by the “Honorable Consejo Deliberante de La Plata” on December 26, 2018, has been enacted. With this enactment, the uses and indicators requested to develop a project of 116,553 square meters were formally confirmed.

As of June 30, 2022, the mixed-use project is advanced.

Caballito Plot – City of Buenos Aires

Caballito is a property of approximately 23,791 sqm in the City of Buenos Aires, neighborhood of Caballito, one of the most densely populated of the city, which the Company purchased in November 1997. This plot will be used for the development of residential with retail and public spaces, with more than 85,000 sqm. This Project is approved by the GCBA authorities.

On December 23, 2019, the Company transferred Parcel 1 of the land reserve located at Av. Avellaneda and Olegario Andrade 367 in the Caballito neighborhood of the City of Buenos Aires to an unrelated third party.

The amount of the operation was set at the sum of USD 5.5 million to be paid in future functional units of Building 1. The aforementioned consideration is guaranteed by a real mortgage right on Parcel 1 and Building 1. The buyer has an Option to acquire Parcel 2 of the same property, subject to certain conditions precedent.

On July 20, 2020, IRSA was notified of the filing of a protection action (amparo) that is processed before the Administrative and Tax Litigation Jurisdiction of the City of Buenos Aires, where the plaintiff has requested the nullity of: 1) Administrative act that grants the certificate of environmental aptitude and 2) Administrative act that registered the plans. On October 1, 2020, the Court of Appeal confirmed the precautionary measure. The Government of the City of Buenos Aires appealed the measure by filing a Constitutional Challenge that was denied filling a complaint appeal, which was denied in October 2021. For more information, see “ITEM 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal or Arbitration Proceedings—Caballito.”

As of June 30, 2022, the development is awaiting the resolution of an appeal filed with the Government of the City of Buenos Aires.

La Adela – Buenos Aires

During 2015 the company acquired the “La Adela” land reserve with an area of approximately 1,058 hectares, located in the District of Luján, Province of Buenos Aires, that was previously owned by Cresud for a total amount of ARS 210 million. Given its degree of development and closeness to the City of Buenos Aires, we intend to develop a new real estate project.

Puerto Retiro – City of Buenos Aires

During fiscal year 1998, the Company initiated negotiations with the authorities of the Government of the City of Buenos Aires in order to obtain a rezoning permit for the property, allowing a change in the use of the property and setting forth new regulations for its development.

At present, Puerto Retiro S.A. has a 8.3 hectare plot of land, which is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.

Puerto Retiro S.A. was involved in a bankruptcy extension judicial action initiated by the Argentine government, to which the Board of Directors is totally unrelated. Management and the Company’s legal advisors consider that there are sufficient legal technical arguments to consider that the request for the extension of bankruptcy will be rejected by the court. However, given the current state of the case, the resolution is uncertain.

91

In turn, Tandanor filed a civil action against Puerto Retiro S.A. and the other defendants in the criminal case for violation of Section 174 (5) based on Section 173 (7) of the Criminal Code. Such action seeks -on the basis of the nullity of the decree that approved the bidding process involving the Dársena Norte property- the restitution of the property and a reimbursement in favor of Tandanor for all such amounts it has allegedly lost as a result of a suspected fraudulent transaction involving the sale of the property. Puerto Retiro has presented the allegation on the merit of the evidence, highlighting that the current shareholders of Puerto Retiro did not participate in any of the suspected acts in the criminal case since they acquired the shares for consideration and in good faith several years after the facts told in the process. Likewise, it was emphasized that the company Puerto Retiro is foreign - beyond its founders - to the bidding / privatization carried out for the sale of Tandanor shares.

On September 7, 2018, the Oral Federal Criminal Court No. 5 released the operative part of the Sentence, from which it follows that the prescription exception filed by Puerto Retiro was allowed. However, in the criminal case, where Puerto Retiro is not a party, it was ordered, among other issues, the confiscation (decomiso) of the property owned by Puerto Retiro known as Planta I. The reasons for the Court’s sentence were read on November 11, 2018. From that moment, all the parties might file the appeals. Faced with this fact, an extraordinary appeal was filed, which was rejected, and as a result, a complaint was filed for a rejected appeal, which was granted. Consequently, the appeal is under study in the Supreme Court of Justice of the Nation.

In the framework of the criminal case, the complainant denounced the non-compliance by Puerto Retiro S.A. of the precautionary measure decreed in the criminal court consisting of the prohibition to innovate and contract with respect to the property that is the object of the civil action. As a result of this complaint, the Oral Federal Criminal Court No. 5 filed an incident and ordered and executed the closure of the property where the lease contracts with Los Cipreses S.A. and Flight Express S.A. were being fulfilled, in order to enforce compliance with the aforementioned measure. As a result of this circumstance, it was learned that the proceedings were turned to the Criminal Chamber for the assignment of a court to investigate the possible commission of a disobedience crime. As of the date of issuance of these financial statements, there have been no news regarding the progress of this case.

In the face of the evolution of the legal cases affecting it and based on the reports of its legal advisors, the Management of Puerto Retiro has decided to record, during fiscal year 2019, an impairment equivalent to 100% of the book value of its investment property, without prejudice to the reversal of the same in the event that a favorable judgment is obtained in the actions brought.

92

Terreno Ezpeleta – Quilmes, Provincia de Buenos Aires

Acquired in April 2022 as part of the payment for the sale of the Republica Building. The property is made up of four plots and has a frontage of 851 meters on the Bs As - La Plata Highway, on the side of the urbanized area the property has a frontage of 695 meters on Río Gualeguay Street between Tupungato and La Guarda streets. It has a total area of 465,642 sqm, with a usable area of 242,151 sqm and a buildable area of 521,399 sqm.

Residential

Coto Residential Project

The Company owns the right to construct above the premises of the Coto hypermarket that is close to Abasto Shopping in the heart of the City of Buenos Aires which we acquired in September 24, 1997. We estimate it has a construction capacity of 23,000 square meters (it also includes the right to receive certain parking units). The premises are located within the area between Agüero, Lavalle, Guardia Vieja and Gallo streets, in the Abasto neighborhood.

On October 25, 2019, IRSA transferred to a non-related third party the rights to develop a residential building (“Tower 1”) on Coto Supermarket airspace located in Abasto neighborhood in the City of Buenos Aires. Tower 1 will have 22 floors of 1 to 3 rooms apartments, totaling an area of 8,400 sqm.

The operation was set for the total of USD 4.5 million: USD 1 million was paid in cash and the balance in at least 35 functional units of departments, representing the equivalent of 24.20% of the square meters to build, with a guaranteed minimum of 1,982 sqm.

As of June 30, 2022, the construction work of Tower 1 has started.

Neuquén Residential Plot– Neuquén, Province of Neuquén

Through Shopping Neuquén S.A., IRSA owns a plot of 13,000 square meters with an estimated construction capacity of 57,000 square meters of residential properties in an area with significant growth potential. This area is located close to the shopping mall Alto Comahue and the hypermarket currently in operation.

93

Caballito Plot – City of Buenos Aires

On June 29, 2011, we and GCDI S.A. (formerly TGLT S.A.), a residential developer, entered into an agreement to barter for the development of a plot of land located at Méndez de Andes street in the neighborhood of Caballito in the City of Buenos AiresA neighborhood association named Asociación Civil y Vecinal SOS Caballito secured a preliminary injunction which suspended the works to be carried out by GCDI S.A. in the abovementioned property. On April 2018 GCDI S.A. and us terminated the barter agreement and we recovered the land. In July 2018, the Supreme Court of Justice issued a favorable final decision allowing the construction of 57,192 sqm of apartments on the plot.

As of June 30, 2022, the completion work for the concrete structure of Tower 3 is in the process of being awarded and should be completed in the first quarter of fiscal year 2023.

Zetol S.A. and Vista al Muelle S.A. – District of Canelones – Uruguay

In the course of fiscal year 2009 we acquired a 100% ownership interest in Liveck S.A., a company organized under the laws of Uruguay. In June 2009, Liveck had acquired a 90% stake in the capital stock of Vista al Muelle S.A. and Zetol S.A., for USD 7.8 million. The remaining 10% ownership interest in both companies is in the hands of Banzey S.A. These companies have undeveloped lands in Canelones, Uruguay, close to the capital city of Uruguay, Montevideo.

We intend to develop in these 13 plots, with a construction capacity of 182,000 sqm, an urban project that consists of the development and comercialization of 1,860 apartments. Such project has the “urban feasibility” status for the construction of approximately 200,000 sqm for a term of 10 years, which was granted by the Mayor’s Office of the Canelones department and by its Local Legislature. Zetol S.A. and Vista al Muelle S.A. agreed to carry out the infrastructure works for USD 8 million as well as minimum amount of sqm of properties. The satisfaction of this commitment under the terms and conditions agreed upon will grant an additional 10-year effective term to the urban feasibility status.

The total purchase price for Zetol S.A. was USD 7 million; of which USD 2 million were paid. Sellers may opt to receive the balance in cash or through the delivery of units in the buildings to be constructed in the land owned by Zetol S.A. equivalent to 12% of the total marketable meters to be constructed.

Besides, Vista al Muelle S.A. owned since September 2008 a plot of land purchased for USD 0.83 million. Then, in February 2010, plots of land were acquired for USD 1 million. In December 2010, Vista al Muelle S.A. executed the title deed of other plots for a total amount of USD 2.66 million, of which USD 0.3 million were paid. The balance will be repaid by delivering 2,334 sqm of units and/or retail stores to be constructed or in cash.

On June 30, 2009, the Company sold a 50% stake in Liveck S.A. to Cyrela Brazil Realty S.A. for USD 1.3 million. On December 17, 2010, together with Cyrela Brazil Realty S.A. we executed a stock purchase agreement pursuant to which we repurchased from Cyrela Brazil Realty S.A. a 50% shareholding in Liveck S.A. for USD 2.7 million. Accordingly, as of June 30, 2022, our stake, through Tyrus, in Liveck is 100%.

As a result of the plot barter agreements executed in due time between the IMC, Zetol S.A. and Vista al Muelle S.A. in March 2014, the parcel redistribution dealing was concluded. This milestone, as set forth in the amendment to the Master Agreement executed in 2013, initiates the 10-year term for the investment in infrastructure and construction of the buildings mentioned above. Construction capacity of the 13 plots is 182,000 sqm.

On November 15, 2018, the translation deed of sale of the first plot where the first Tower of Departments, Villas and single and double parking spaces is currently being built has been signed, the total exchange price was USD 7,298,705 equivalent to 16% of all of the marketable built meters in the first Tower. 12% of it has been used to cancel part of the price balance maintained to date with the sellers of the plots acquired by Zetol S.A in June 2009.

As of June 30, 2022, 6 units were received for the consideration of Tower 1, built on plot 2, and the infrastructure work concerning sectors A and B of the property has been contracted and is 20% complete. Including, among others, the road coastal, roundabouts, lights, landfills and stormwater and sewage connections for USD 3.2 million.

94

Offices

Polo Dot 2^nd and 3^rd Stages – City of Buenos Aires

These two parcels of 6,400 square meters with a construction capacity of 33,485 square meters each, are located adjoining to where the extension of Dot Baires Shopping is planned. In April 2018, both plots were unified into a single one of 12,800 square meters.

Coronel Diaz and Beruti Building – City of Buenos Aires

On February 2022, the Company purchased by means of public auction from the GCBA, a property located at the corner of the intersections of Beruti Street and Coronel Díaz Avenue. Such property is located in front of Alto Palermo Shopping, a shopping center owned by the Company, located in in the neighborhood of Palermo, one of the main commercial corridors of the City of Buenos Aires

The property has an area of approximately 2,386.63 sqm, consisting of a first floor, six upper levels and a basement area. Furthermore, it has a total covered area of approximately 8,136.85 sqm with future expansion potential.

The purchase price was ARS 2,158,647,620, which was paid in full by the Company.

As of June 30, 2022, the transfer deed of ownership was signed. Simultaneously with the deed, the Company is required to sign a bailment agreement with the GCBA, with the latter holding the property free of charge for a period of up to 30 months, in accordance with the conditions agreed upon in the auction.

Intercontinental Plaza II Plot - City of Buenos Aires

In the heart of the neighborhood of Monserrat, just a few meters from the most trafficked avenue in the city and the financial center, is the Intercontinental Plaza complex consisting of an office tower and the exclusive Intercontinental Hotel. In the current plot of 6,135 square meters a second office tower of 19,600 square meters and 25 stories could be built to supplement the tower currently located in the intersection of Moreno and Tacuarí streets.

Other Land Reserves

Other Land Reserves – Pilar, Pontevedra, Mariano Acosta, Merlo, San Luis Plot, Llao Llao Plot and Casona Abril remaining surface.

We grouped here those plots of land with a significant surface area the development of which is not feasible in the short term either due to their current urban and zoning parameters, their legal status or the lack of consolidation of their immediate environment. This group totals around 3.3 million sqm.

Others

La Rural (convention centers and fairs activities) and La Arena (Directv Arena concession)

In relation to the investment in La Rural S.A., its main activity includes the organization of congresses, fairs, exhibitions, events, corporate and incentive trips and is carried out by LRSA, both at the Palermo Fairgrounds and at the “Centro de Exposiciones y Convenciones de la Ciudad Autónoma de Buenos Aires” through a Transitory Union of Companies that obtained, by public tender, the concession of this property for a period of 15 years and the “Punta del Este Convention and Exhibition Center”. IRSA has an indirect participation of 35%.

95

Ogden Argentina S.A (“OASA”), indirectly controlled by IRSA by 70%, owns an 82.85% stake in “La Arena S.A.”, a company that developed and operates the stadium known as “DirecTV Arena”, located in the kilometer 35.5 of the Pilar branch, Tortuguitas, in the province of Buenos Aires.

During this fiscal year, we had different moments in relation to the return to business activity of the fair and entertainment industry after the two years of the pandemic.

During the first quarter of the fiscal year, the prohibition on holding events was maintained and, as of September 2021, through specific protocols, activity was resumed with limitations on both the number of people and indoor space. Exhibitions began at La Rural and different corporate events and congresses were held both at La Rural and at the Buenos Aires Convention Center. As of March 2022, all the protocols for holding events as normal were released and in this way the operations of La Rural, the Buenos Aires and Punta del Este Convention Centers were able to resume their operations.

GCDI S.A. (formerly TGLT S.A.) (real estate)

GCDI S.A. is a construction company listed on the BYMA which is mainly engaged in the construction of third-party projects and residential development projects in Argentina and Uruguay. As of June 30, 2022, IRSA hold a 27.82% interest.

After the end of the fiscal year, TGLT S.A. changed its name to GCDI S.A.

We are appa S.A. (formerly Pareto S.A.)

On October 8, 2018, the company Pareto S.A. was incorporated, with the social purpose of design, programming and development of software, mobile and web applications. As of June 30, 2022, IRSA’s share of We are appa reaches 93.63%.

We are appa’s mission is to minimize the friction of physical shopping by applying data science and artificial intelligence, connecting buyers and sellers in a unique experience.

Through its application, ¡appa!, We are appa provides shopping malls and tenants a 100% digital customer loyalty system that promotes benefits and discounts by facilitating the consumer experience in shopping malls and offices

During the year, users of ¡appa! carried out more than 900,000 transactions on the platform, including consumption in shopping malls, use of parking spaces, and redemption of Corporate benefits. Of these, approximately 242,000 visitor transactions were identified in IRSA shopping malls, corresponding to consumption of more than ARS 2,200 million by 127,600 users. This information allows the teams of the shopping malls to manage their communications and actions in a more efficient and segmented way that results in greater loyalty and attractiveness of the shopping malls’ proposal towards its visitors.

Avenida Inc.

As of June 30, 2022, IRSA indirectly owned 4.1% of Avenida Inc., a company dedicated to the e-commerce business.

Compara en casa

Compara en casa is a digital insurance broker that compares the policies of the main insurers in one place. They operate in Argentina, Brazil, Mexico, Paraguay and Uruguay.

96

As of June 30, 2022, the company indirectly owned 14.87% of Comparaencasa S.A.

Banco Hipotecario

As of June 30, 2022, we held a 29.91% interest in Banco Hipotecario. Established in 1886 by the Argentine government and privatized in 1999, Banco Hipotecario has historically been Argentina’s leading mortgage lender, provider of mortgage-related insurance and mortgage loan services. All its operations are located in Argentina where it operates a nationwide network of 63 branches in the 23 Argentine provinces and the City of Buenos Aires.

Banco Hipotecario is an inclusive commercial bank that provides universal banking services, offering a wide variety of banking products and activities, including a wide range of individual and corporate loans, deposits, credit and debit cards and related financial services to individuals, small-and medium-sized companies, and large corporations. As of April 2022, Banco Hipotecario ranked sixteenth in the Argentine financial system in terms of totals assets and seventeenth in terms of loans. As of June 30, 2022, Banco Hipotecario’s shareholders’ equity was ARS 33,754.5 million, its consolidated assets were ARS 323,353.1 million, and its net income for the six-month period ended June 30, 2022, was ARS 2,737.2 million. Since 1999, Banco Hipotecario’s shares have been listed on the Buenos Aires Stock Exchange in Argentina, and since 2006 it has had a Level I ADR program.

Banco Hipotecario’s business strategy is to continue diversifying its loan portfolio. The Bank’s non-mortgage loans to the non-financial private sector, in nominal terms, were ARS 36,851 millon as of December 31, 2019, ARS 40,522.8 million as of December 31, 2020, ARS 48,760.9 million as of December 31, 2021 and ARS 51,480.9 million as of June 30, 2022.

Also, Banco Hipotecario has diversified its funding sources by developing its presence in the local and international capital markets, as well as increasing its deposit base. Its financial debt in total funding was 12.6% as of June 30, 2022.

Banco Hipotecario’s subsidiaries include BACS Banco de Crédito y Securitización S.A., a bank specialized in investment banking, asset securitization and asset management, from which Banco Hipotecario owns directly 62.3% and IRSA owns directly 37.7%; BHN Vida S.A., a life insurance company; and BHN Seguros Generales S.A., a property insurance company.

Legal Framework

Regulation and Argentine government Supervision

The laws and regulations governing the acquisition and transfer of real estate, as well as municipal zoning ordinances, apply to the development and operation of our properties. Currently, Argentine law does not specifically regulate shopping mall leases. Since our shopping mall leases generally differ from ordinary commercial leases, we have developed contractual provisions which govern the commercial relationship with our shopping mall tenants.

Leases

Argentine law imposes certain restrictions on property owners, including

a minimum lease term of three years for all purposes, except in particular cases such as embassy, consulate or international organization venues, room with furniture for touristic purposes for less than three months, custody and bailment of goods, exhibition or offering of goods in fairs or in cases where due to the circumstances, the subject matter of the lease agreement is the fulfillment of a purpose specified in the agreement and which requires a shorter term.

97

Lease term limits

Under the Argentine Civil and Commercial Code lease terms may not exceed fifty years, irrespective of the intended use of the property (residential use maximum term is twenty years). Generally, terms in our lease agreements go from 3 to 10 years.

Rescission rights

The Argentine Civil and Commercial Code provides that tenants of properties may declare the early termination of lease agreements with other destiny than home destiny after the first six months of the effective date. Such termination is subject to penalties which range from one to one and a half months of rent. If the tenant terminates the agreement during the first year of the lease the penalty is one and a half month’s rent and if the termination occurs after the first year of lease the penalty is one month’s rent.

Other

Most of our leases provide that the tenants pay all costs and taxes related to the property in proportion to their respective leasable areas. Notwithstanding the foregoing, in accordance with the latest amendment to Article 1209 of the Argentine Civil and Commercial Code, the tenant is not responsible for the payment of charges and contributions levied on the property or extraordinary common expenses. In the event of a significant increase in the amount of such costs and taxes, the Argentine government may respond to political pressure to intervene by regulating this practice, thereby adversely affecting our rental income. Although the Argentine Code of Civil and Commercial Procedure allows the landlord, in the event of non-payment of rents, to proceed to collect the rents through an “executory proceeding”, there is a large amount of jurisprudence that holds that shopping center lease agreements do not fulfill the requirements of the law in force to be collected through the executory proceeding. In those cases, in which executory proceedings are granted, debtors have fewer defenses available to prevent foreclosure, making these proceedings substantially shorter than ordinary ones. In executory proceedings the origin of the debt is not under discussion; the trial focuses on the formalities of debt instrument itself. The Code also permits special eviction proceedings, which are carried out in the same way as ordinary proceedings. The Argentine Civil and Commercial Code requires that a notice be given to the tenant demanding payment of the amounts due in the event of breach prior to eviction, of no less than ten days for leases for residential purposes and establishes no limitation or minimum notice for leases for other purposes. However, historically, large court dockets and numerous procedural hurdles have resulted in significant delays to eviction proceedings, which generally last from six months to two years from the date of filing of the suit to the time of actual eviction.

Development and use of the land

Buenos Aires Urban Planning Code. Our real estate activities are subject to several municipal zoning, building, occupation, and environmental regulations. In the City of Buenos Aires, where the vast majority of our real estate properties are located, we are subject to the following regulations:

Buenos Aires Urban Planning Code

The Buenos Aires Urban Planning Code (Código de Planeamiento Urbano de la Ciudad de Buenos Aires) generally restricts the density and use of property and regulates physical features of improvements to property, such as height, design, set back and overhang, consistent with the city’s urban planning policy. The administrative agency in charge of the Urban Planning Code is the Secretary of Urban Planning of the City of Buenos Aires (Secretaría de Planeamiento Urbano) is responsible for implementing and enforcing the Buenos Aires Urban Planning Code.

Buenos Aires Building Code.

The Buenos Aires Building Code (Código de Edificación de la Ciudad de Buenos Aires) complements the Buenos Aires Urban Planning Code and regulates the structural use and development of property in the City of Buenos Aires. The Buenos Aires Building Code requires builders and developers to file applications for building permits, including the submission to the Secretary of Work and Public Services (Secretaría de Obras y Servicios Públicos) of architectural plans for review, to assure compliance therewith.

98

We believe that all of our real estate properties are in material compliance with all relevant laws, ordinances and regulations.

Sales and ownership

Buildings Law. Buildings Law No. 19,724 (Ley de Pre horizontalidad) was repealed by the new Argentine Civil and Commercial Code which became effective on August 1, 2015. The new regulations provide that for purposes of execution of agreements with respect to build units or units to be built under the building’s regime, the owner is required to purchase insurance in favor of prospective purchasers against the risk of frustration of the operation pursuant to the agreement for any reason. A breach of this obligation prevents the owner from exercising any right against the purchaser–such as demanding payment of any outstanding installments due – unless he/she fully complies with their obligations but does not prevent the purchaser from exercising its rights against seller.

Protection for the Disabled Law. The Protection for the Disabled Law No. 22,431, enacted on March 20, 1981, as amended, provides that in connection with the construction and renovation of buildings, obstructions to access must be eliminated in order to enable access by handicapped individuals. In the construction of public buildings, entrances, transit pathways and adequate facilities for mobility impaired individuals must be provided for.

Buildings constructed before the enforcement of the Protection for the Disabled Law must be adapted to provide accesses, transit pathways and adequate facilities for mobility-impaired individuals.

Those pre-existing buildings, which due to their architectural design may not be adapted to the use by mobility-impaired individuals, are exempted from the fulfillment of these requirements.

The Protection for the Disabled Law provides that residential buildings must ensure access by mobility impaired individuals to elevators and aisles. Architectural requirements refer to pathways, stairs, ramps and parking.

Real Estate Installment Sales Law. The Real Estate Installment Sales Law No. 14,005, as amended by Law No. 23,266 and Decree No. 2015/85, imposes a series of requirements on contracts for the sale of subdivided real estate property regarding, for example, the sale price which is paid in installments and the deed, which is not conveyed until final payment of such price. The provisions of this law require, among other things:

The registration of the intention to sell the property in subdivided plots with the Real Estate Registry (Registro de la Propiedad Inmueble) corresponding to the jurisdiction of the property. Registration will only be possible with regard to unencumbered property. Mortgaged property may only be registered where creditors agree to divide the debt in accordance with the subdivided plots. However, creditors may be judicially compelled to agree to the division.

The preliminary registration with the Real Estate Registry of the purchase instrument within 30 days of execution of the agreements.

Once the property is registered, the installment sale may not occur in a manner inconsistent with the Real Estate Installment Sales Act, unless seller registers its decision to desist from the sale in installments with the Real Estate Registry. In the event of a dispute over the title between the purchaser and third-party creditors of the seller, the installment purchaser who has duly registered the purchase instrument with the Real Estate Registry will obtain the deed to the plot. Further, the purchaser can demand conveyance of title after at least 25% of the purchase price has been paid, although the seller may demand a mortgage to secure payment of the balance of the purchase price.

After payment of 25% of the purchase price or the construction of improvements on the property equal to at least 50% of the property value, the Real Estate Installment Sales Act prohibits the rescission of the sales contract for failure by the purchaser to pay the balance of the purchase price. However, in such event the seller may take action under any mortgage on the property.

99

Plan for the Transformation and Reconversion of the City of Buenos Aires Downtown.

In December 2021, the law for the transformation of the downtown area of the City of Buenos Aires was passed in order to convert that area into a residential, intelligent and sustainable urban area, through the promotion of the development of economic activities strategic activities, granting tax benefits to those who make investments aimed at the development of said area (such as the exemption of income derived from the development of strategic activities that will be exempt from gross income until December 2023). Additionally, it is expected that the Banco de la Ciudad will grant lines of credit aimed at promoting the realization of reconversion projects of real estate located within the downtown area (for example, incentives for the acquisition of housing and/or rental, “Move to the Microcentro” program), as well as for the acquisition of equipment related to the strategic activities to be developed in said area. Reconversion projects may be submitted until January 31, 2024.

Otherregulations

Consumer Relationship. Consumer or End User Protection.The Argentine Constitution expressly establishes in Article 42 that consumers and users of goods and services have a right to protection of health, safety and economic interests in a consumer relationship. Consumer Protection Law No. 24,240, as amended, regulates several issues concerning the protection of consumers and end users in a consumer relationship, in the arrangement and execution of contracts.

The Consumer Protection Law, and the applicable sections of the Argentine Civil and Commercial Code are intended to regulate the constitutional right conferred under the Constitution on the weakest party of the consumer relationship and prevent potential abuses deriving from the stronger bargaining position of vendors of goods and services in a mass-market economy where standard form contracts are widespread.

As a result, the Consumer Protection Law and the Argentine Civil and Commercial Code deem void and unenforceable certain contractual provisions included in consumer contracts entered into with consumers or end users, including those which:

· deprive obligations of their nature or limit liability for damages.

· imply a waiver or restriction of consumer rights and an extension of seller rights; and

· impose the shifting of the burden of proof against consumers.

In addition, the Consumer Protection Law imposes penalties ranging from warnings to fines from ARS 100 to ARS 5,000,000, the seizure of merchandise, closing down of establishments for a term of up to 30 days, suspension of up to 5 years in the State suppliers register, the forfeiture of concession rights, privileges, tax regimes or special credits to which the sanctioned party was entitled. These penalties may be imposed separately or jointly.

The Consumer Protection Law and the Argentine Civil and Commercial Code define consumers or end users as the individuals or legal entities that acquire or use goods or services free of charge or for a price for their own final use or benefit or that of their family or social group. In addition, both laws provide that those who though not being parties to a consumer relationship as a result thereof acquire or use goods or services, for consideration or for non-consideration, for their own final use or that of their family or social group are entitled to such protection rights in a manner comparable to those engaged in a consumer relationship.

In addition, the Consumer Protection Law defines the suppliers of goods and services as the individuals or legal entities, either public or private that in a professional way, even occasionally, produce, import, distribute or commercialize goods or supply services to consumers or users.

The Argentine Civil and Commercial Code defines a consumer agreement as such agreement that is entered into between a consumer or end user and an individual or legal entity that acts professionally or occasionally either with a private or public company that manufactures goods or provides services, for the purpose of acquisition, use or enjoyment of goods or services by consumers or users for private, family or social use.

100

It is important to point out that the protection under the laws afforded to consumers and end users encompasses the entire consumer relationship process (from the offering of the product or service) and it is not only based on a contract, including the consequences thereof.

In addition, the Consumer Protection Law establishes a joint and several liability system under which for any damages caused to consumers, if resulting from a defect or risk inherent in the thing or the provision of a service, the producer, manufacturer, importer, distributor, supplier, seller and anyone who has placed its trademark on the thing or service shall be liable.

The Consumer Protection Law excludes the services supplied by professionals that require a college degree and registration in officially recognized professional organizations or by a governmental authority. However, this law regulates the advertisements that promote the services of such professionals.

The Consumer Protection Law determines that the information contained in the offer addressed to undetermined prospective consumers, binds the offeror during the period in which the offer takes place and until its public revocation. Further, it determines that specifications included in advertisements, announcements, prospectuses, circulars or other media bind the offeror and are considered part of the contract entered into by the consumer.

Pursuant to Resolution No. 104/05 issued by the Secretariat of Technical Coordination reporting to the Argentine Ministry of Economy, Consumer Protection Law adopted Resolution No. 21/2004 issued by the MERCOSUR which requires that those who engage in commerce over the Internet (E-Business) shall disclose in a precise and clear manner the characteristics of the products and/or services offered and the sale terms. Failure to comply with the terms of the offer is deemed an unjustified denial to sell and gives rise to sanctions.

On September 17, 2014, a new Consumer Protection Law was enacted by the Argentine Congress –Law No. 26,993. This law, known as “System for Conflict Resolution in Consumer Relationships,” provided for the creation of new administrative and judicial procedures for this field of Law. It created a two-instance administrative system: (i) the Preliminary Conciliation Service for Consumer Relationships (Servicio de Conciliación Previa en las Relaciones de Consumo, COPREC); and (ii) the Consumer Relationship Audit, and a number of courts assigned to resolution of conflicts between consumers and producers of goods and services (Fuero Judicial Nacional de Consumo). In order to file a claim, the amount so claimed should not exceed a fixed amount equivalent to 55 adjustable minimum living wages, which are determined by the Ministry of Labor, Employment and Social Security. The claim is required to be filed with the administrative agency. If an agreement is not reached between the parties, the claimant may file the claim in court. The administrative system known as Preliminary Conciliation Service for Consumer Relationships (COPREC) is currently in full force and effect. However, the court system (fuero judicial nacional de consumo) was transferred to the scope of the City of Buenos Aires. creating the Jurisdiction in Contentious Administrative, Tax and Consumer Relations of the City of Buenos Aires, enacting Law 6407 by which was statutory the New Code of Procedure for Justice in the Consumer Relations of the City of Buenos Aires, which is currently in force, attributing jurisdiction for all consumer disputes that arise in the City of Buenos Airei without disregarding the full force and effect of different instances for administrative claims existing in the provincial sphere and the City of Buenos Aires, which remain in full force and effect, where potential claims related to this matter could also be filed.

Antitrust Law. Law No. 27,442 and its administrative regulation’s goals are to prevent and punish anticompetitive practices and, accordingly, it requires administrative authorization for transactions that according to the Antitrust Law constitute an economic concentration. Pursuant to this law, mergers, transfers of goodwill, acquisitions of property or rights over shares, capital or other convertible securities, or similar operations by which the acquirer controls or substantially influences a company, are considered as an economic concentration. The Antitrust Law provides that whenever an economic concentration involves one or more companies and the total business volume of the group of affected companies -concept that includes the acquiring group and the target company (together with the controlled companies), group or assets subject to the acquisition, but excludes the volume of business of the companies of the selling group-, exceeds in Argentina 100 million mobile units that, according to Resolution 35/2022 of the Secretary of Domestic Trade of the Ministry of Production Development , published in the Official Gazette on February 2, 2022, is equivalent to the sum of ARS 8,345,000,000 (since the adjusted value of each mobile was set by such resolution at ARS 83.45), then the respective concentration must be filed with the CNDC for analysis and authorization. “Total business volume” is understood to be the amounts resulting from the sale of products, the provision of services performed, and the direct subsidies received by the companies affected during the last fiscal year that correspond to their ordinary activities, after the deduction of discounts on sales, as well as on value added tax and other taxes directly related to turnover.

101

The request for authorization may be filed, either prior to the transaction or within a week after its completion. Nevertheless, upon the first anniversary of the establishment of the new National Competition Authority (which is yet to be set up), the filing requesting the authorization may only be submitted in advance.

When a request for approval is filed, the CNDC may (i) authorize the transaction, (ii) subordinate the transaction to the accomplishment of certain conditions, or (iii) reject the authorization.

The Antitrust Law establishes that economic concentrations in which the transaction amount and the value of the assets absorbed, acquired, transferred, or controlled in Argentina, do not exceed, in each case,

20 million mobile units that, according to the Resolution of the Secretary of Domestic Trade of the Ministry of Production Development, currently represent ARS 1,669,000,000, such transactions are exempted from the administrative authorization. Notwithstanding the foregoing, when the transactions effected by the companies concerned during the prior 12-month period exceed 20 million mobile units (as of the date hereof, ARS 1,105,000,800) or 60 million mobile units in the previous 36 months that, according to said Resolution, is currently equivalent to the sum of ARS 5,007,000,000, these operations they must be notified to the CNDC.

As our consolidated annual sales volume and our parent’s consolidated annual sales volume exceed ARS 1,669,000,000, in cases of concentrations in which we are the acquiring party we should give notice to the CNDC of any concentration provided for by the Antitrust Law, except if we were acquiring: (i) companies in which we already controlled more than 50% (so long that such acquisition should not imply a change in the nature of the control); (ii) none voting shares, bonds or debentures; (iii) companies that have registered no activity within the country, provided that the business purpose of the target company is different than ours, which are other exceptions that may apply pursuant to article 11 of Law 27,442.

Money laundering

For more information about money laundering see, “Item 10. Additional Information—E. Money Laundering.”

Environmental Law

Environment. Our activities are subject to several national, provincial, and municipal environmental provisions.

Article 41 of the Argentine Constitution, as amended in 1994, provides that all Argentine inhabitants have the right to a healthy and balanced environment fit for human development and have the duty to preserve it. Environmental damage shall bring about primarily the obligation to restore it as provided by applicable law. The authorities shall control the protection of this right, the rational use of natural resources, the preservation of the natural and cultural heritage and of biodiversity and shall also provide for environmental information and education. The National Argentine government shall establish minimum standards for environmental protection whereas Provincial and Municipal Argentine governments shall fix specific standards and regulatory provisions.

On November 6, 2002, the Argentine Congress passed Law No. 25,675. Such law regulates the minimum standards for the achievement of a sustainable environment and the preservation and protection of biodiversity and fixes environmental policy goals.

Law No. 25,675 establishes the activities that will be subject to an environmental impact assessment procedure and certain requirements applicable thereto. In addition, such Law sets forth the duties and obligations that will be triggered by any damage to the environment and mainly provides for restoration of the environment to its former condition or, if that is not technically feasible, for payment of compensation in lieu thereof. Such Law also fosters environmental education and provides for certain minimum reporting obligations to be fulfilled by natural and legal entities.

102

On August 4, 2004, the Argentine Congress passed Law No. 25,916 by means of which the minimum environmental protection guidelines for the integral management of residential, commercial and industrial waste were established. The law denominate integral management as a set of interdependent and complementary activities, which make up a process of actions for the management of household waste (that includes residence, urban, commercial and/or industrial, among others) in order to protect the environment and the population’s quality life. This law establishes that the integral management of household waste is comprised of the following stages: generation, initial disposal, collection, transfer, transportation, treatment and final disposal. Competent authorities are determined by local jurisdictions.

In addition, the CNV Rules require the obligation to report to the CNV any events of any nature and fortuitous acts that seriously hinder or could potentially hinder performance of our activities, including any events that generate or may generate significant impacts on the environment, providing details on the consequences thereof.

The New Argentine Civil and Commercial Code has introduced as a novel feature the acknowledgement of collective rights, including the right to a healthy and balanced environment. Accordingly, the Argentine Civil and Commercial Code expressly sets forth that the law does not protect an abusive exercise of individual rights if such exercise could have an adverse impact on the environment and the rights with a collective impact in general.

Insurance

We carry all-risk insurance for our shopping malls and other buildings covering damages to the property caused by fire, acts of terrorism, explosion, gas leak, hail, storm and winds, earthquakes, vandalism, theft and business interruption. We also have civil liability insurance covering all potential damages to third parties or goods arising from the development of our businesses throughout the whole Argentine territory. We are in compliance with all the legal requirements relating to mandatory insurance, including statutory coverage under the Occupational Risk Law, life insurance required under collective bargaining agreements and other insurance required by the laws and decrees. Our history of damages is limited to only one claim made as a result of a fire in Alto Avellaneda Shopping in March 2006, in which the loss was substantially recovered from our insurers. These insurance policies have all the specifications, limits and deductibles that are customary in the market and which we believe are adequate for the risks to which we are exposed in our daily operations. We also purchased civil liability insurance to cover our Directors’ and officers’ liability.

Sustainability

Sustainability is a central pillar of our organization. Our policy is based on the United Nations Sustainable Development Goals, and we work in this direction internally within our organization and externally through our value chain, operating as agents of social and environmental change. We seek to achieve high quality standards in our real estate operations through the responsible use of resources and sustainable technologies, and we seek to develop new projects in harmony with the environment.

Our fifteen shopping malls are an ideal space for disseminating topics of interest to society and carrying out community activities, given that more than 100 million people visit them annually. For their part, the office buildings are occupied by national and international organizations, committed to the triple impact of their actions: economic growth together with the care of the society and communities, minimizing the impact to the environment.

We agree on the agenda of topics with the social organizations of each community, the public sector, and the specialists in each subject. In this way, we strengthen links and generate long-term alliances, incorporating actors in the value chain and collaborating with the communities where our business units operate.

103

Environmental Management

Environmental management is a commitment assumed by IRSA, which is declared through its Environmental Policy, and manifests itself in everyday management.

· We innovate in the use of best practices for the development of our activities.

· We work to achieve a balance between the efficient use of resources and a growing real estate development.

· We care about the relationship with our people and the communities where we choose to work, of which we are a part.

· We plan for the long term, seeking to develop in a sustainable way so that our environment can also be enjoyed by future generations.

· We work towards continuous improvement and compliance with current legislation and regulations, including those to which we voluntarily subscribe.

· We are part of a process of cultural change, which we share and extend to the people with whom we interact.

Environmental Certifications

As part of our strategy, we seek to achieve high standards of environmental certification in our real estate projects with the aim of having a modern and sustainable portfolio. Our shopping malls located in the City of Buenos Aires are already part of the Circular Economy Network. It is an initiative of the Government of the City of Buenos Aires that creates an articulated workspace between the different actors that are part of society (companies, NGOs and universities) to build a more sustainable city. Alto Palermo Shopping, Dot Baires Shopping, Alcorta Shopping, Patio Bullrich, Distrito Arcos and Abasto Shopping have already signed the adhesion.

It implies our commitment and effort to work on different actions that strengthen recycling and promote the circular economy. This seeks to redefine what growth is, with an emphasis on the benefits for all of society. This implies separating economic activity from the use of non-renewable resources and reducing (or eliminating) the generation of garbage. It is made up of seven principles: reflect, reject, reduce, redistribute, reclaim, reuse and recycle.

Córdoba Shopping is the first shopping mall where we are implementing a Comprehensive Waste Management Plan from the Circular Economy Paradigm. Through the incorporation of new practices and habits, it is proposed to reduce the generation of waste, increasing reuse and recycling. The Circular Economy helps transform the economy towards a sustainable future. IRSA intends to implement this project in all of the shopping malls it operates across Argentina in the following years.

The Ministry of Public Space and Urban Hygiene of the city of Buenos Aires granted the Green Seal to the Alto Palermo shopping:

· This Seal is part of the initiative of the Circular Economy Network.

· Alto Palermo is the first shopping malls that is certified. It obtained a 2-star rating, which implies good practices and a commitment to responsible waste management.

The certification process includes training for both tenants and their own employees and audits carried out by the local government.

104

This year we will carry out the recertification of Alto Palermo and soon we will add Dot Baires Shopping to become the second shopping mall with a Green Seal. These actions not only benefit the malls but also encourage some tenants to want to certify this Seal. In this way we help a greater number of companies to be part of the Circular Economy Network.

Thanks to the Green Seal certification, our professionals were able to participate in various workshops and work groups, provided by the local government, such as the Training “Green City Ambassadors”, “Waste Management in the City”, among others.

The latest office buildings developed by the Company have the necessary characteristics to achieve LEED certifications. The Zetta building inaugurated in May 2019, located in the Polo Dot shopping complex in the north of the Autonomous City of Buenos Aires, achieved Leed Gold Core & Shell certification and we are in the process of certifying the 200 Della Paolera building, located in the Catalinas area, inaugurated in December 2020.

We work to achieve a balance between the efficient use of resources and growing real estate development. We care about the relationship with our people and the neighbors of the communities where we choose to work, of which we are a part.

Energy, water and waste management

The efficient use of resources, as well as the proper management of the waste generated in our activities, are extremely important in our day to day. For this reason, we carry out various tasks to guarantee proper environmental management:

Energy: Actions are continuously carried out to minimize consumption as much as possible, which includes:

	·	Improvements in air conditioning technologies,
	·	facilities maintenance and constant monitoring,
	·	awareness campaigns on the care of the resource to own personnel, tenants, and customers,
	·	in our offices we automate the meeting rooms lights turning on and off through sensors that detect movement, preventing the light from remaining on when the room is not being used,
	·	we automate the speed of escalators, slowing them down when they are not being used,
	·	regarding luminaires, in all our shopping centers the replacement to LED technology is being carried out.
Water: Water consumption is mainly destined for sanitary supply, food court sector in shopping malls, facilities cleaning and irrigation.
	·	Sanitary facilities have a Pressmatic or similar command system that allows water savings of around 20% compared to past technologies.
	·	In those establishments where it is possible, thanks to the facilities and availability of the place, rainwater is recovered for other uses, mainly irrigation.
	·	Distrito Arcos is an open-air shopping mall with plant beds that are irrigated with rainwater. On rainy days, the water accumulates in underground tanks and is used to irrigate the beds on the days when it does not rain.
	·	The chosen irrigation system is drip, as it is highly efficient. In the latest office buildings developed by the company: 200 Della Paolera and the “Zetta Building”, rainwater is also used to irrigate their flower beds.
	·	In our properties’ toilets, low consumption sanitary fixtures and fittings are chosen, through timers installations, infrared sensors and aerators, making an efficient use of the resource.

105

Waste: We promote the reduction of waste, and we are pioneers in management for recycling. In all our shopping centers, separation is carried out at source into Wet (non-recyclable) and Dry (recyclable) fractions. In four of them, Alto Rosario, Alcorta, Alto Palermo and Arcos Districts, a third fraction called Organic is separated, generated in the preparation of food in gastronomic establishments. These residues are removed by the Municipalities for composting. The material obtained is used for the landscaping of boulevards and public flowerbeds

In the southern part of the City of Buenos Aires, in addition to the separation of organics, arid waste, PET and pruning remains are collected. There is a modern aerobic fermentation plant that speeds up the composting process of organic waste.

We continue working to add more properties and reduce the waste sent to landfills. We work on a waste management system that allows us to recycle a significant fraction of the material produced in our establishments. In turn, we develop new ways and opportunities to integrate with social organizations and cooperatives in order to value the recovered materials.

With a frequency of four times a week, up to daily, the removal of recyclable materials is carried out. We work with cooperatives and local organizations, that through the collection, classification and commercialization of recyclable materials, allow the neighbors to find a mean of subsistence and a source of income.

We work with tenants continuously reinforcing the correct management of waste, communicating through circulars and tours. Remembering the materials to be separated in each of the three fractions (recyclable, humid and organic), the corresponding bag color (according to current regulations) and the sectors where they are collected.

We promote the transformation into biodiesel of the vegetable oil used by the gastronomic tenants of our shopping malls. Used vegetable oils (UVOs) are generated in the kitchens of gastronomic stores that are used in frying and cooking.

Each tenant has a collection and accumulation circuit for these oils to be used as an input in a production process: the production of biodiesel. We work with companies authorized for this purpose such as RBA Ambiental. In this way, contamination of the water is avoided by not draining the oils through the usual kitchen pipes and giving a second use to the resources.

Education and training program

We have developed an education and training program in environmental management, regarding waste, efficient use of resources such as water and energy. Training and actions are carried out aimed at the staff of the shopping malls, the tenants of the establishments and related suppliers, involving the cooperatives of urban waste pickers to share their experience, learn about their work and the importance of carrying out adequate waste management. During the pandemic, virtual training continued through different platforms such as Microsoft Teams and Zoom.

Fundación IRSA

Fundación IRSA was created in 1996 with the purpose of generating programs and accompanying initiatives that promote the integral development of people with a special focus on education, human well-being and social inclusion. Likewise, it supports organizations in society with the conviction that only through joint work and networking can be achieved the true changes necessary to achieve full citizenship and an equitable and inclusive society.

106

The work of the Fundación IRSA is framed in 4 lines of action that open innovative paths in the construction of a sense of community. These pillars are:

Education: training, cultural learning and research in education are promoted to enhance the development of people. With the intention of accompanying and developing projects that provide new training opportunities in the formal and non-formal educational field for the growth of society.

Together with other social organizations, it works for the recognition of the value that exists in identity and respect for diversity, since its inception it finances the “Education Observatory” for the construction of statistical data on Argentine Education with evidence, consensus, and collaboration. Social. And for 6 years, it has been promoting the training of young professionals in technical and bachelor's degrees that make up the Argentine medical care system, with a special focus on nutrition, early childhood and nursing.

Human well-being: understanding human well-being as an aspect that crosses the whole human being and brings it closer to its needs for access to information, material goods, psychological, affective, inspiring to lead a dignified life, good health, food, and good social relations. Fundación IRSA seeks to focus on research and assistance to help reduce differences in a context concerned with health. Since 2014, it has been investing in improving hospital equipment and providing state-of-the-art devices and health supplies to hospitals and health centers in our country. Fundación IRSA, together with other entities, financed the creation of the GDFE Health Observatory, an initiative that seeks to contribute to the construction of public-private consensus for the design, implementation, and support of State policies with health rationality, a legal perspective and effectiveness tested.

Also, with the aim of contributing to the most vulnerable populations having a healthy diet, it allocates economic resources for more than 20 community kitchens and 2,900 people with the objective that they complement the monthly diet with fruits, vegetables, meats, and dairy products and can provide themselves with cleaning and personal hygiene items.

Insertion / inclusion: contributes with special interest in an area that worries society, in the context of an economic and health crisis; with two specific lines of action, associated with “Employability” and “Violence”. “Employability”, associated with the set of skills and talents that allow a person to be able to find and keep a job. With a focus on the age group over 40 years old, generating new opportunities for job insertion and reinvention. And “Violence” through research and generating evidence that can collaborate with the updating and improvement of the public policy system.

Since 2021, Fundación IRSA has been the main investor in the creation of the first “Observatory on First Practices for Addressing Child Abuse”. During the first year, together with “Red por la Infancia”, a first survey was carried out on the regulatory framework and current public policies on all forms of violence that have an impact on the lives of children and adolescents. After completing its first stage, it is proposed to gather evidence to contribute to the construction of a diagnosis of the situation and identify the degree of normative development, the pending challenges at the legislative level, the degree of progress in public policies and in the administration of justice in protection of children against violence.

The need to influence 4 fundamental axes to generate a virtuous circle that produces systemic changes in prevention and response was confirmed:

1. Strengthen regulatory frameworks for the protection of children against violence.

2. Improve the architecture and design of prevention, protection, and response systems for violence against children and adolescents.

3. Influence the customs, beliefs, mandates, and values that tolerate, minimize, and therefore perpetuate violence against children intergenerationally.

4. Involve the private sector and the media in the protection of violence against children and adolescents.

107

Strengthening: strengthens the institutional capacity of non-profit organizations through their cooperation and alliance. In this sense, Fundación IRSA accompanies social organizations throughout the country so that they can achieve their mission, grow and develop.

Since March, for example, more than 1,060 outerwear and 170 items have been delivered to 5 foundations and NGOs through the “Revaluation of Materials” program, in which finds are collected and classified (lost objects of customers in shopping malls) to then be distributed.

Also, it continues with the internal MultipliDAR program through which all employees of the IRSA Group companies are offered the possibility of multiplying their personal donations to civil society organizations in their reference world to strengthen their solidarity initiative. Through the Multiplidar program, the amount that the collaborator has previously donated to the entity is equalized, doubled, and tripled.

During fiscal year 2022, Fundación IRSA worked with 66 civil society organizations making a direct social investment of ARS 93.8 million.

Puerta 18 Foundation

“Puerta 18” Foundation is a free space for artistic and technological creation for young people from 13 to 24 years old. Through a non-formal education proposal, it encourages the development of skills, vocations and talents in young people through the multiple resources offered by technology.

Throughout its 15 years, more than 5,000 young people received free training and today there are more than 250 who have found employment in areas related to their training at the institution. Two years ago, the foundation for pursuing objectives of “common good” achieved recognition from the IGJ (General Inspection of Justice) so that through article 81c, the donations received can be deductible from profits, encouraging more companies to join and amplify the impact.

Our gaze is based on placing the young person at the center of the proposal, which revolves around his interests and needs, and where educators act as facilitators using technology as a tool. Some of the disciplines we work with are: Graphic Design, Photography, UX, Programming, Comprehensive Video Production, 3D Modeling and Animation, Videogames, Robotics, among others.

New normality

After years of pandemic and quarantine, the Foundation resumed face-to-face activities, focusing on “remote” proposals. Slowly, contact with the young people who had not participated so much virtually was resumed, and by June 2022, a level of activity and impact similar to pre-pandemic levels was achieved.

Currently, the Foundation offers activities for +70 young people per day on average, both in the 13-18 age bracket and +18, concentrating all its actions at the headquarters on Zelaya Street. In turn, together with #DigitAR, they awarded scholarships to 12 young people to continue their training studies in other study centers, expanding their social capital, deepening their knowledge, and significantly improving their job opportunities.

Fundación Museo de los Niños

Museo de los Niños Abasto is an interactive museum that recreates the spaces of a city where children can play to be a doctor, cameraman, captain, sailor, banker, cook, broadcaster, journalist, nurse, actress, mom, dad and many more things.

The Museum proposes an enriching and alternative meeting space that integrates play, movement, perception, understanding and expression, encouraging curiosity, interest in knowing and imagination from a transforming point of view. Based on the Declaration of the Rights of the Child, it has been designed to encourage each child to develop their own potential: “learning by doing” and “playing and having fun while learning” are fundamental concepts for the Museum.

108

The Museum is dedicated to children up to 12 years of age, their families, educators and, through all of them, the community. And for the little ones, up to 3 years old, it has two soft rooms specially built to stimulate their activity.

In addition, it has an Exhibition Hall and an Auditorium where shows, film screenings, conferences, book presentations and various events are held.

Museo de los Niños has been declared:

- Of educational interest by the Argentina’s Ministry of Education. Resolution No. 123.

- Of cultural interest by the Secretary of Culture and Communication of the Presidency of Argentina. Resolution No. 1895.

- Of cultural interest by the Secretary of Culture of the Buenos Aires City Government.

- Of cultural interest by the INADI (National Institute against Discrimination, Xenophobia and Racism).

- Of tourist interest by the Secretary of Tourism of the Presidency of Argentina. Resolution No. 281.

- Sponsorship of the secretary of education of the government of the city of buenos aires. resolution no. 537.

C. Organizational Structure

The following table presents information relating to our ownership interest represented by our subsidiaries as of June 30, 2022:

			Ownership interest held by the Company
Name of the entity	Country	Main activity	06.30.2022	06.30.2021	06.30.2020
IRSA's direct interest:			(%)
E-Commerce Latina S.A.	Argentina	Investment	100.00	100.00	100.00
Efanur S.A.	Uruguay	Investment	100.00	100.00	100.00
Hoteles Argentinos S.A.U.	Argentina	Hotel	100.00	100.00	100.00
Inversora Bolívar S.A.	Argentina	Investment	100.00	100.00	100.00
Llao Llao Resorts S.A. (1)	Argentina	Hotel	50.00	50.00	50.00
Nuevas Fronteras S.A.	Argentina	Hotel	76.34	76.34	76.34
Palermo Invest S.A.	Argentina	Investment	100.00	100.00	100.00
Ritelco S.A.	Uruguay	Investment	100.00	100.00	100.00
Tyrus S.A.	Uruguay	Investment	100.00	100.00	100.00
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment	50.00	50.00	50.00
Arcos del Gourmet S.A.	Argentina	Real estate	90.00	90.00	90.00
Emprendimiento Recoleta S.A.	Argentina	Real estate	53.68	53.68	53.68
Fibesa S.A.	Argentina	Real estate	100.00	100.00	100.00
Panamerican Mall S.A.	Argentina	Real estate	80.00	80.00	80.00
Shopping Neuquén S.A.	Argentina	Real estate	99.95	99.95	99.95
Torodur S.A.	Uruguay	Investment	100.00	100.00	100.00
EHSA	Argentina	Investment	70.00	70.00	70.00
Centro de Entretenimiento La Plata	Argentina	Real estate	100.00	100.00	100.00
We Are Appa S.A.	Argentina	Design and software development	93.63	93.63	69.69
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment	99.50	99.50	97.04
IRSA International LLC	the United States	Investment	100.00	100.00	100.00
Jiwin S.A.	Uruguay	Investment	100.00	100.00	100.00
Liveck S.A.	British Virgin Islands	Investment	100.00	100.00	100.00
Real Estate Strategies LLC	the United States	Investment	100.00	100.00	100.00
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment	100.00	100.00	100.00
DFL's and DN BV's direct interest:
Dolphin IL Investment Ltd.	Israel	Investment	100.00	100.00	100.00

(1) The Company has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers its majority of votes in the decision making process.

109

The Company takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant.

D. Property, Plant and Equipment

In the ordinary course of business, the leases property or spaces for administrative or commercial use both under operating lease arrangements. The agreements include several clauses, including but not limited, to fixed, variable or adjustable payments.

The following table sets forth certain information about our properties as of June 30, 2022:

Property(6)	Date of Acquisition	Leasable/ Sale sqm / Rooms	Location	Net Book Value ARS(2)	Use	Occupancy rate
Bankboston Tower(3)(13)	Aug-07	-	City of Buenos Aires	409	Office Rental	N/A
Bouchard 551	Mar-07	-	City of Buenos Aires	644	Office Rental	N/A
Intercontinental Plaza Building	Nov-97	2,979	City of Buenos Aires	2,846	Office Rental	100.0%
Dot Building	Nov-06	11,242	City of Buenos Aires	9,722	Office Rental	92.6%
Zetta Building	Jun-19	32,173	City of Buenos Aires	27,749	Office Rental	92.2%
Phillips Building	Jun-17	8,017	City of Buenos Aires	6,104	Office Rental	81.4%
San Martín plot (ex Nobleza Picardo)	May-11	109,610	Province of Buenos Aires, Argentina	8,818	Other Rentals	22.5%
Other Properties(5)	N/A	N/A	City and Province of Buenos Aires / Detroit U.S	8,173	Other Rentals	N/A
Abasto Shopping	Nov-99	37,162	City of Buenos Aires, Argentina	12,380	Shopping Mall	98.9%
Alto Palermo Shopping	Dec-97	20,507	City of Buenos Aires, Argentina	14,223	Shopping Mall	98.0%
Alto Avellaneda	Dec-97	39,944	Province of Buenos Aires, Argentina	9,231	Shopping Mall	81.4%
Alcorta Shopping (12)	Jun-97	15,812	City of Buenos Aires, Argentina	8,962	Shopping Mall	99.7%
Patio Bullrich	Oct-98	11,664	City of Buenos Aires, Argentina	3,920	Shopping Mall	92.4%
Alto Noa	Nov-95	19,388	City of Salta, Argentina	1,996	Shopping Mall	96.7%
Mendoza Plaza	Dec-94	42,149	Mendoza, Argentina	3,374	Shopping Mall	91.1%
Alto Rosario	Dec-04	33,957	Santa Fe, Argentina	7,487	Shopping Mall	96.3%
Córdoba Shopping –Villa Cabrera(11)	Dec-06	15,368	City of Córdoba, Argentina	2,215	Shopping Mall	100.0%
Dot Baires Shopping	May-09	47,296	City of Buenos Aires, Argentina	11,290	Shopping Mall	83.5%
Soleil Premium Outlet	Jul-10	15,734	Province of Buenos Aires, Argentina	3,384	Shopping Mall	100.0%
La Ribera Shopping	Aug-11	10,531	Santa Fe, Argentina	570	Shopping Mall	97.1%
Distrito Arcos	Dec-14	14,457	City of Buenos Aires, Argentina	4,818	Shopping Mall	100.0%
Alto Comahue	Mar-15	11,697	Neuquén, Argentina	3,632	Shopping Mall	97.4%
Patio Olmos	Sep-97	-	City of Córdoba, Argentina	2,081	Shopping Mall	N/A
Beruti Parking Space	N/A	-	City of Buenos Aires	1,149	Shopping Mall	N/A
Caballito Plot of Land	Nov-97	-	City of Buenos Aires	7,782	Land Reserve	N/A
Costa Urbana	Oct-97	693,445	City of Buenos Aires	89,309	Other Rentals	N/A
Ezpeleta Plot of land	May-22	-	Province of Buenos Aires, Argentina	4,065	Other Rentals	N/A
Beruti and Coronel Diaz Building	Jun-22	-	City of Buenos Aires	3,131	Other Rentals	N/A
Catalinas Building	Dec-20	18,016	City of Buenos Aires	18,691	Offices and Other Rentals	67.1%
Luján plot of land	May-08	1,160,000	Province of Buenos Aires, Argentina	2,238	Mixed uses	N/A
Other Land Reserves(4)	N/A	N/A	City and Province of Buenos Aires	14,717	Land Reserve	N/A
Other Developments(15)	N/A	0	City of Buenos Aires	567	Properties under development	N/A
Buildable potentials(14)	N/A	N/A	City of Buenos Aires, Córdoba and Santa Fé	6,714	Other Rentals	N/A
Intercontinental Hotel(7) (12)	Nov-97	313	City of Buenos Aires	1,273	Hotel	35.1%
Libertador Hotel(8) (12)	Mar-98	200	City of Buenos Aires	526	Hotel	26.3%
Llao Llao Hotel(9) (10) (12)	Jun-97	205	City of Bariloche	2,324	Hotel	61.2%
Others (3)	N/A	N/A	City and Province of Buenos Aires	291	Others	N/A

110

__________________

(1)	Total leasable area for each property. Excludes common areas and parking spaces.
(2)	Shopping Malls, Offices and Land Reserves are valued at fair value. Our Hotels are valued at cost of acquisition or development plus improvements, less accumulated depreciation, less allowances.
(3)	Includes the following properties: EH UT and DirecTV Arena Stadium.
(4)	Includes the following land reserves: Pontevedra plot, San Luis Plot, Pilar plot, Intercontinental Plot, the building and plot annexed to Dot, Mendoza Plot, Luján plot, Mendoza and La Plata plot.
(5)	Includes the following properties: Anchorena 665, Anchorena 545 (Chanta IV), Zelaya 3102, 3103 y 3105, Madero 1020, La Adela, Paseo del Sol, Libertador 498 and Detroit properties.
(6)	Percentage of occupation of each property. Land reserves are assets that the company keeps in the portfolio for future developments.
(7)	Through Nuevas Fronteras S.A.
(8)	Through Hoteles Argentinos S.A.U.
(9)	Through Llao Llao Resorts S.A.
(10)	Includes “Terreno Bariloche.”
(11)	The cinema building located at Córdoba Shopping – Villa Cabrera is included in Investment Properties, which is encumbered by a right of antichresis as a result of loan due to Empalme by NAI INTERNACIONAL II Inc. Includes “Ocampo parking spaces”.
(12)	Express in number of rooms.
(13)	The offices were totally sold during the fiscal year ended June 30, 2021.
(14)	Includes buildable potentials related to the following shopping malls: Patio Bullrich, Alto Palermo, Córdoba Shopping and Alto Rosario.
(15)	Includes the following developments: PH Office Park, Phillips Building and Alto Avellaneda (Wal-Mart).

ITEM 4A. Unresolved staff comments

This item is not applicable.

ITEM 5. Operating and Financial Review and Prospects

A. Operating Results

The following management’s discussion and analysis of our financial condition and results of operations should be read together with our Audited Consolidated Financial Statements and related notes appearing elsewhere in this Annual Report. This discussion and analysis of our financial condition and results of operations contains forward-looking statements that involve risks, uncertainties and assumptions. These forward-looking statements include such words as, “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ materially and adversely from those anticipated in these forward-looking statements as a result of many factors, including without limitation those set forth elsewhere in this Annual Report. See Item 3 “Key Information – D. Risk Factors” for a more complete discussion of the economic and industry-wide factors relevant to us.

The objective of this Management’s Discussion and Analysis section is to provide a description of our economic and financial condition as of June 30 2022, particularly considering that the operating results for fiscal years 2021 and 2020 have been affected by the restrictions due to the COVID19 pandemic. Our shopping malls and hotels were closed for most of the years 2021 and 2020 while the offices remained operational, even though most of the tenants adopted the remote work modality. In this sense, the purpose of this management’s discussion and analysis are to describe the impact of the pandemic and other macroeconomic or operational drivers over our business segments in order to explain the reasons or causes that originate our results of operations.

General

We prepare our Audited Consolidated Financial Statements in pesos and in accordance with IFRS, as issued by the IASB, and with CNV Rules.

Our Audited Consolidated Financial Statements and the financial information included elsewhere in this Annual Report have been prepared in accordance with IFRS. We have determined that, as of July 1, 2018, the Argentine economy qualifies as a hyperinflationary economy according to the guidelines of IAS 29 since the total cumulative inflation in Argentina in the 36 months prior to July 1, 2018 exceeded 100%. IAS 29 requires that the financial information recorded in a hyperinflationary currency be adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) current at the end of the reporting period. Therefore, our Audited Consolidated Financial Statements included in this Annual Report have been adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) current at the end of the reporting period (June 30, 2022). See “Risk Factors—Risks Relating to Argentina—A high level of uncertainty with regard to these economic variables, and a general lack of stability in terms of inflation, could have a negative impact on economic activity and adversely affect our financial condition.

111

Overview

We are engaged, directly and indirectly through subsidiaries and joint ventures, in a range of diversified activities, primarily in real estate, including:

i. the acquisition, development and operation of shopping malls,

ii. the acquisition and development of office buildings and other non-shopping mall properties primarily for rental purposes,

iii. the development and sale of residential properties,

iv. the acquisition and operation of luxury hotels,

v. the acquisition of undeveloped land reserves for future development or sale, and

vi. selective investments outside Argentina.

Effects of the global macroeconomic factors

Most of our assets are located in Argentina, where we conduct our operations. Therefore, our financial condition and the results of our operations are significantly dependent upon economic conditions prevailing in such country.

The table below shows Argentina’s GDP, inflation rates, dollar exchange rates, the appreciation (depreciation) of the Peso against the U.S. dollar for the indicated periods (inter-annual information—which is the 12 month period preceding the dates presented—is presented to conform to our fiscal year periods).

	Fiscal year ended June 30,
	2022			2021			2020
	(inter‑annual data)
GDP(1		6.9	%		17.9	%		(19.1	)%
Inflation (IPIM)(2)		57.3	%		65.1	%		39.7	%
Inflation (CPI)		64.0	%		50.2	%		42.8	%
Depreciation of the Peso against the U.S. dollar	(30.9%)			(35.9%)				(66.1	)%
Average exchange rate per USD 1.00(3)	ARS 125.13			ARS 95.62			ARS 70.36

____________________

(1)	Represents inter annual growth of the second quarter GDP at constant prices (2004). Historical data is maintained, as exposed originally by us in previous 20-Fs.
(2)	IPIM (Índice de Precios Internos al por Mayor) is the wholesale price index as measured by the Argentine Ministry of Treasury.
(3)	Represents average of the selling and buying exchange rate quoted by Banco de la Nación Argentina as of June 30. As of October 24, 2022, the exchange rate was 154.74 per U.S. dollar.

Sources: INDEC and Banco de la Nación Argentina.

112

Argentine GDP increased 6.9% interannually during the second quarter of 2022, compared to an increase of 17.9% in the same period of 2021. Nationally, shopping mall sales at current prices in the month of June 2022 relevant to the survey reached a total of ARS 57,994.6 million, which represents an increased of 266.9% compared to June 2021. Accumulated sales for the first six months, represent a 185.7% in current terms and 70.9% increase in real terms as compared to the same period of 2021. The monthly estimate of economic activity (“EMAE”) as of June 30, 2022, increased by 6.4% compared to the same month in 2021. As of June 30, 2022, the unemployment rate was at 6.9% of the country’s economically active population, compared to 9.6% as of June 30, 2021. On the other hand, in the second quarter of 2022, the activity rate stood at 47.9% compared to 45.9% in the same quarter of the previous year. While the employment rate rose to 44.6% in the second quarter of 2022, compared to 41.5% in the second quarter of the previous year.

Changes in short- and long-term interest rates, unemployment and inflation rates may reduce the availability of consumer credit and the purchasing power of individuals who frequent shopping malls. These factors, combined with low GDP growth, may reduce general consumption rates at our shopping malls. Since most of the lease agreements at our shopping malls, our main source of revenue, require tenants to pay a percentage of their total sales as rent, a general reduction in consumption may reduce our revenue. A reduction in the number of shoppers at our shopping malls and, consequently, in the demand for parking, may also reduce our revenue from services rendered.

Effects of inflation

The following are annual inflation rates during the fiscal years indicated, based on information published by the INDEC, an entity dependent of the Argentine Ministry of Treasury.

	Consumer price index			Wholesale price index
Fiscal year ended June 30,	(inter‑annual data)
2020		42.8	%		39.7	%
2021		50.2	%		65.1	%
2022		64.0	%		57.3	%

The current structure of IRSA lease contracts for shopping mall tenants generally includes provisions that provide for payment of variable rent, which is a percentage of IRSA’s shopping mall tenants’ sales. Therefore, the projected cash flows for these shopping malls generally are highly correlated with GDP growth and consumption power.

For the leases of spaces at our shopping malls we use for most tenants a standard lease agreement, the terms and conditions of which are described elsewhere in this Annual Report. However, our largest tenants generally negotiate better terms for their respective leases. No assurance can be given that lease terms will be as set forth in the standard lease agreement.

The rent specified in our leases generally is the higher of (i) a monthly Base Rent and (ii) a specified percentage of the store’s monthly gross sales, which generally ranges between 3% and 12% of such sales. In addition, pursuant to the rent escalation clause in most of our leases, a tenant’s Base Rent generally increases on a monthly or quarterly and cumulative basis following the IPC index. In the event of litigation regarding these adjustment provisions, there can be no assurance that we may be able to enforce such clauses contained in our lease agreements. See “Information of the Company—Business Overview—Our Shopping Malls—Principal Terms of our Leases.”

Continuing increases in the rate of inflation are likely to have an adverse effect on our operations. Although higher inflation rates in Argentina may increase minimum lease payments, given that tenants tend to pass on any increases in their expenses to consumers, higher inflation may lead to an increase in the prices our tenants charge consumers for their products and services, which may ultimately reduce their sales volumes and consequently the portion of rent we receive based on our tenants’ gross sales. In addition, we measure the fair market value of our shopping malls based upon the estimated cash flows generated by such assets which, as discussed in previous paragraphs, is directly related to consumer spending since a significant component of the rent payment received from our tenants is tied to the sales realized by such tenants (i.e is a percentage of the sales of our tenants). Therefore, macroeconomic conditions in Argentina have an impact in the fair market value of our shopping malls as measured in pesos. Specifically, since our tenant’s products have been adjusted (increased) to account for inflation of the Peso, our expected cash flows from our shopping malls have similarly increased in nominal terms since rent is largely dependent on sales of our tenants in Pesos.

113

Seasonality

Our business is directly affected by seasonality, influencing the level of our tenants’ sales. During Argentine summer holidays (January and February) our tenants’ sales typically reach their lowest level, whereas during winter holidays (July) and in Christmas (December) they reach their maximum level. Clothing retailers generally change their collections in spring and autumn, positively affecting our shopping malls’ sales. Discount sales at the end of each season are also one of the main seasonal factors affecting our business. See “Item 5.A. Operating Results – COVID-19 Pandemic.”

Effects of interest rate fluctuations

Most of our U.S. dollar-denominated debt accrues interest at a fixed rate. An increase in interest rates will result in a significant increase in our financing costs and may materially affect our financial condition or our results of operations.

In addition, a significant increase of interest rates could deteriorate the terms and conditions in which our tenants obtain financing from banks and financial institutions in the market. As a consequence of that, if they suffer liquidity problems the collection of our lease contracts could be affected by an increase in the level of delinquency.

Effects of foreign currency fluctuations

A significant portion of our financial debt is denominated in U.S. dollars. Therefore, a devaluation or depreciation of the Peso against the U.S. dollar would increase our indebtedness measured in Pesos and materially affect our results of operations. Foreign currency exchange restrictions imposed by the Argentine government could prevent or restrict our access to U.S. dollars, affecting our ability to service our U.S. dollar denominated‑ liabilities.

In addition, contracts for the rental of office buildings are generally stated in U.S. dollars, so a devaluation or depreciation of the Peso against the U.S. dollar would increase the risk of delinquency on our lease receivables.

As discussed above, we calculate the fair market value of our office properties based on comparable sales transactions. Typically real estate transactions in Argentina are transacted in U.S. dollars. Therefore, a devaluation or depreciation of the Peso against the U.S. dollar would increase the value of our real estate properties measured in Pesos and an appreciation of the Peso would have the opposite effect. In addition, foreign currency exchange restrictions imposed by Argentine government could prevent or restrict the access to U.S. dollars for the acquisition of real estate properties, which are denominated and transacted in U.S dollars in Argentina, that could affect our ability to sell or acquire real estate properties and could have an adverse impact in real estate prices.

For more information about the evolution of the U.S dollar / Peso exchange rate, see “Exchange Rate and Exchange Controls.”

Fluctuations in the market value of our investment properties as a result of revaluations

Currently, our interests in investment properties are revalued quarterly. Any increase or decrease in the fair value of our investment properties, based on appraisal reports prepared by appraisers, is recorded in our consolidated statement of income and other comprehensive income for the fiscal year during which the revaluation occurs. The revaluation of our properties may therefore result in significant fluctuations in the results of our operations.

Property values are affected by, among other factors, a) shopping malls, which are mainly impacted by the discount rate used (WACC), the projected GDP growth and the projected inflation and devaluation of the Peso for future periods and b) office buildings, which are mostly impacted by the supply and demand of comparable properties and the U.S. dollar / Peso exchange rate at the reporting period, as office buildings fair value is generally established in U.S. dollars. For example:

114

· during the 2020 fiscal year, there was a 66.1% depreciation of the Peso from ARS 42.363 to USD 1.00 as of June 30, 2019 to ARS 70.36 to USD 1.00 as of June 30, 2020;

· during the 2021 fiscal year, there was a 35.9% depreciation of the Peso from ARS 70.36 to USD 1.00 as of June 30, 2020 to ARS 95.62 to USD 1.00 as of June 30, 2021; and

· during the 2022 fiscal year, there was a 30.9% depreciation of the Peso from ARS 95.62 to USD 1.00 as of June 30, 2021 to ARS 125.13 to USD 1.00 as of June 30, 2022.

The value of the Company investment properties is determined in U.S. dollar pursuant to the methodologies further described in “Critical Accounting Policies and estimates” and then determined in Pesos (the Company functional and presentation currency).

In the past, purchases and sales of office buildings were usually settled in U.S. dollars, However, as a consequence of the restrictions imposed by the Central Bank on foreign exchange transactions, purchase and sales of office buildings are now usually settled in Pesos, using an implicit exchange rate that is higher than the official one (as it was the case in the operations carried out by IRSA in the last two years).

Factors Affecting Comparability of our Results

Comparability of information

COVID-19 Pandemic

The impacts of the COVID-19 pandemic on us as of the date of this Annual Report are described below:

· During the fourth quarter of fiscal year 2021, shopping centers in the Buenos Aires Metropolitan Area suspended their operations between April 16 and June 11, operating only those segments considered essential such as pharmacies, supermarkets, and banks. The impact on Revenues for the closing months due to the pandemic was 40.3% in fiscal year 2021. Due to the flexibility that has occurred in the economic activities since the beginning of this fiscal year 2022, and as of the date of this Annual Report, 100% of the shopping malls are operational.

· Regarding the office segment, although most of the tenants continue to work in the home office mode, they are operational with strict safety and hygiene protocols. As of today, we have experienced a slight increase in the vacancy rates, although we have not suffered a deterioration in collections.

· La Rural, the Buenos Aires and Punta del Este Convention Centers and the Arena stadium, establishments that we own directly or indirectly, were closed from March 20, 2020, to July 12, 2021, date from which the protocols for holding events, conferences and exhibitions were activated. Exhibitions began at La Rural and different corporate events and congresses were held both at La Rural and at the Buenos Aires Convention Center. As of March 2022, all the protocols for holding events as normal were released and in this way the operations of La Rural, the Buenos Aires and Punta del Este Convention Centers were able to resume their operations.

· The Libertador and Intercontinental hotels in the City of Buenos Aires have been operating since December 2020, although with low occupancy levels. The Llao Llao Resort, located in Bariloche, was able to operate during the fourth quarter with average occupancy levels thanks to the domestic tourism.

The final extent of the Coronavirus outbreak and its impact on the country’s economy is still uncertain. However, although it has produced significant short-term effects, they are not expected to affect business continuity and the Company’s ability to meet its financial commitments for the next twelve months.

We are closely monitoring the situation and taking all necessary measures to preserve human life and the Company’s businesses.

115

Office buildings

During the year ended June 30, 2020, we have incorporated as an investment property the building “Della Paolera” located in Catalinas District in Buenos Aires. It consists of 35,208 square meters of gross leasable area over 30 office floors and includes 316 parking spaces in 4 basements. On April 29, 2021, the Company inaugurated its newest office development in Buenos Aires, which was operative since December 2020. During the fiscal years 2022 and 2021, we sold and transferred floors of the building for a total area of approximately 9,674 sqm and 2,369 sqm, respectively. As a subsequent event, on August 17, 2022 we sold and transferred one floor for a total leasable area of approximately 1,184 sqm and 8 parking lots located in the building. As of the date of this Annual Report, IRSA retains its rights for 14 floors of the building with an approximate leasable area of 16,832 sqm.

On July 15, 2020, we signed an agreement to sell a mid-rise floor with an area of approximately 1,063 sqm and 5 parking spaces of BankBoston Tower located at 265 Della Paolera in Catalinas district of Buenos Aires City. Likewise, on August 25, 2020, we sold and transferred 5 additional floors with a gross rental area of 6,235 sqm and 25 garages located in the building. On November 5, 2020, we signed a purchase and sale agreement with possession of 4 floors for a gross rental area of approximately 3,892 square meters and 15 parking lots located in the building, and on November 12, 2020, we have entered into a purchase and sale agreement with an unrelated third party pursuant to which it has sold 3 floors for a gross rental area of approximately 3,266 square meters, a commercial space located on the ground floor of approximately 225 square meters and 15 parking lots located in the building. After this transaction, IRSA has no remaining offices leasable area in the building.

On July 30, 2020, we sold the entire “Bouchard 710” tower, located in Plaza Roma District of Buenos Aires City. The building has 15,014 sqm of gross leasable area 12 office floors and 116 parking spaces.

On April 19, 2022, we sold in block 100% of the “República” building, located next to “Catalinas Norte” area in the City of Buenos Aires. The tower has 19,885 sqm of gross leasable area on 20 office floors and 178 parking spaces.

Shopping malls

During the fiscal years ended June 30, 2022, 2021 and 2020, we maintained the same portfolio of operating shopping malls. Business Segment Reporting

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by the President of the Company, Mr. Eduardo S. Elsztain.

Segment information is reported from the perspective of products and services, considering separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks.

After the merger of the Company with IRSA CP, the structure is made up of the following five segments: Shopping Malls, Offices, Hotels, Sales and development, and Others.

The “Offices and Other Rental Properties” segment is renamed “Offices” and will exclusively include the results from the company’s six office buildings. The other rental properties that were part of this segment were allocated to the “Sales and Developments” segment, which will include the results generated by these assets, as well as those from Land Reserves, Barter Agreements and Properties for Sale. Likewise, the “Others” segment is incorporated, which will group the results from investments in associates and foreign companies that were previously allocated in the “Corporate” and “International” segments. The “Shopping Malls” and “Hotels” segments did not undergo any changes.

Below is the segment information which was prepared as follows:

The Company operates in the following segments:

116

· The “Shopping Malls” segment includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Company.

· The “Offices” s segment includes the operating results from lease revenues of offices and other service revenues related to the office activities.

· The “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results and other rental spaces are also included.

· The “Hotels” segment includes the operating results mainly consisting of room, catering and restaurant revenues.

· The “Others” segment includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. and Centro de Convenciones Buenos Aires (concession), We Are Appa investments in associates such as TGLT and the financial activities carried out through BHSA / BACS, as well as other investments in associates.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of joint ventures and associates. The valuation criteria used in preparing this information are consistent with IFRS standards used for the preparation of our Audited Financial Statements, except for the following:

· Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method the profit/loss generated and assets are reported in the Statement of Income line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.

Operating results from Shopping Malls and Offices segments do not include the amounts pertaining to building administration expenses and collective promotion funds (“FPC”, as per its Spanish acronym) as well as total recovered costs, whether by way of expenses or other concepts included under financial results (for example default interest and other concepts). The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and FPC and recoverable expenses). The assets’ categories examined by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, right to receive future units under barter agreements, investment in associates and goodwill. The sum of these assets, classified by business segment, is reported under “assets by segment”. Assets are allocated to each segment based on the operations and/or their physical location.

Most revenue from its operating segments is derived from, and their assets are located in, Argentina, except for some share of profit / (loss) of associates included in the “Others” segment located in the United States.

Revenues for each reporting segment derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.

Until September 2020 we used to report our financial performance separately in two Operations Centers. However, as described in Note 1 to the Consolidated Financial Statements as of June 30, 2020, during September 2020 we lost control of IDBD and, then, have reclassified the results of the Israel Operations Center to discontinued operations. As a consequence of the situation described, from October 1, 2020, we report our financial performance through a single Operation Center. Segment information for the previous fiscal years has been recast for comparability purposes.

Below is a summary of the Company’s lines of business and a reconciliation between the results from operations as per segment information and the results from operations as per the Consolidated Statements of Income and Other Comprehensive Income for the years ended June 30, 2022, 2021 and 2020:

117

	June 30, 2022
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
	(in million of ARS)
Revenues		25,593			(233	)		6,725			-			32,085
Costs		(5,333	)		91			(6,874	)		-			(12,116	)
Gross profit / (loss)		20,260			(142	)		(149	)		-			19,969
Net gain from fair value adjustment of investment properties		12,328			1,322			-			-			13,650
General and administrative expenses		(5,327	)		27			-			23			(5,277	)
Selling expenses		(2,242	)		5			-			-			(2,237	)
Other operating results, net		28			-			56			(23	)		61
Profit / (loss) from operations		25,047			1,212			(93	)		-			26,166
Share of profit / (loss) of associates and joint ventures		466			(821	)		-			-			(355	)
Segment profit / (loss)		25,513			391			(93	)		-			25,811
Reportable assets		325,837			(1,939	)		-			48,894			372,792
Reportable liabilities		-			-			-			(203,065	)		(203,065	)
Net reportable assets		325,837			(1,939	)		-			(154,171	)		169,727

	June 30, 2021
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
	(in million of ARS)
Revenues		16,585			(82	)		4,830			(51	)		21,282
Costs		(5,665	)		115			(5,213	)		-			(10,763	)
Gross profit / (loss)		10,920			33			(383	)		(51	)		10,519
Net (loss) / gain from fair value adjustment of investment properties		(12,542	)		(200	)		-			-			(12,742	)
General and administrative expenses		(5,049	)		22			-			79			(4,948	)
Selling expenses		(2,477	)		34			-			-			(2,443	)
Other operating results, net		(256	)		(33	)		176			(28	)		(141	)
Loss from operations		(9,404	)		(144	)		(207	)		-			(9,755	)
Share of loss of associates and joint ventures		(6,541	)		(641	)		-			-			(7,182	)
Segment loss		(15,945	)		(785	)		(207	)		-			(16,937	)
Reportable assets		335,973			(2,481	)		-			31,833			365,325
Reportable liabilities		-			-			-			(229,672	)		(229,672	)
Net reportable assets		335,973			(2,481	)		-			(197,839	)		135,653

118

	June 30, 2020
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
	(in million of ARS)
Revenues		27,434			(150	)		7,638			(54	)		34,868
Costs		(6,725	)		132			(7,956	)		-			(14,549	)
Gross profit / (loss)		20,709			(18	)		(318	)		(54	)		20,319
Net gain from fair value adjustment of investment properties		83,728			(648	)		-			-			83,080
General and administrative expenses		(5,527	)		35			-			79			(5,413	)
Selling expenses		(3,029	)		41			-			-			(2,988	)
Other operating results, net		29			42			149			(25	)		195
Profit / (loss) from operations		95,910			(548	)		(169	)		-			95,193
Share of profit of associates and joint ventures		17,367			420			-			-			17,787
Segment profit / (loss)		113,277			(128	)		(169	)		-			112,980
Reportable assets (3)		1,498,210			(1,704	)		-			48,303			1,544,809
Reportable liabilities (3)		(987,692	)		-			-			(255,011	)		(1,242,703	)
Net reportable assets (3)		510,518			(1,704	)		-			(206,708	)		302,106

(1)	Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(2)	Includes deferred income tax assets, income tax and minimum presumed income tax credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of ARS 8 million, ARS 12 million and ARS 43 million, as of June 30, 2022, 2021 and 2020, respectively.
(3)	Includes assets and liabilities from IDBD.

Below is a summarized analysis of the lines business for the fiscal years ended June 30, 2022, 2021 and 2020:

	June 30, 2022
	Shopping Malls			Offices			Sales and developments			Hotels			Others			Total
	(in million of ARS)
Revenues		17,334			3,041			746			4,300			172			25,593
Costs		(1,495	)		(293	)		(581	)		(2,456	)		(508	)		(5,333	)
Gross profit / (loss)		15,839			2,748			165			1,844			(336	)		20,260
Net gain / (loss) from fair value adjustment of investment properties		553			(5,391	)		17,106			-			60			12,328
General and administrative expenses		(2,862	)		(341	)		(1,058	)		(730	)		(336	)		(5,327	)
Selling expenses		(847	)		(78	)		(922	)		(340	)		(55	)		(2,242	)
Other operating results, net		(142	)		(23	)		(48	)		(59	)		300			28
Profit / (loss) from operations		12,541			(3,085	)		15,243			715			(367	)		25,047
Share of profit of associates and joint ventures		-			-			-			-			466			466
Segment profit / (loss)		12,541			(3,085	)		15,243			715			99			25,513
Investment properties and trading properties		91,770			68,197			142,511			-			430			302,908
Investment in associates and joint ventures		-			-			-			-			11,578			11,578
Other operating assets		299			2,537			2,984			4,183			1,348			11,351
Reportable assets		92,069			70,734			145,495			4,183			13,356			325,837

119

From all the revenues corresponding to the segments, ARS 25,579 million are originated in Argentina, and ARS 14 million in the U.S. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the segments, ARS 323,901 million are located in Argentina and ARS 1,936 million in other countries, principally in the United States for ARS 296 million and Uruguay for ARS 1,630 million.

	June 30, 2021
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
	(in million of ARS)
Revenues		8,727			4,401			1,271			1,510			676			16,585
Costs		(1,428	)		(236	)		(1,379	)		(1,746	)		(876	)		(5,665	)
Gross profit / (loss)		7,299			4,165			(108	)		(236	)		(200	)		10,920
Net (loss) / gain from fair value adjustment of investment properties		(33,349	)		9,088			11,658			-			61			(12,542	)
General and administrative expenses		(2,348	)		(685	)		(1,164	)		(699	)		(153	)		(5,049	)
Selling expenses		(740	)		(307	)		(1,145	)		(231	)		(54	)		(2,477	)
Other operating results, net		(207	)		(8	)		(8	)		(20	)		(13	)		(256	)
(Loss) / profit from operations		(29,345	)		12,253			9,233			(1,186	)		(359	)		(9,404	)
Share of loss of associates and joint ventures		-			-			(26	)		-			(6,515	)		(6,541	)
Segment (loss) / profit		(29,345	)		12,253			9,207			(1,186	)		(6,874	)		(15,945	)
Investment properties and trading properties		89,070			119,013			102,415			-			423			310,921
Investment in associates and joint ventures		-			-			-			-			14,609			14,609
Other operating assets		436			1,839			3,271			4,269			628			10,443
Reportable assets		89,506			120,852			105,686			4,269			15,660			335,973

(1)    Includes the result for the investment in TGLT y BHSA for ARS (3,496) million and ARS (1,240) million respectively, in the line “Share of loss of associates and joint ventures”.

From all the revenues included in the segments ARS 16,557 million are originated in Argentina and ARS 28 million are originated in the United States. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 328,863 million are located in Argentina and ARS 7,110 million in other countries, principally in the United States for ARS 5,692 million and Uruguay for ARS 1,468 million.

	June 30, 2020
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
	(in million of ARS)
Revenues		14,569			5,616			2,025			4,978			246			27,434
Costs		(1,401	)		(192	)		(1,825	)		(3,066	)		(241	)		(6,725	)
Gross profit		13,168			5,424			200			1,912			5			20,709
Net (loss) / gain from fair value adjustment of investment properties		(5,185	)		54,755			34,495			-			(337	)		83,728
General and administrative expenses		(2,044	)		(601	)		(1,217	)		(897	)		(768	)		(5,527	)
Selling expenses		(1,751	)		(185	)		(502	)		(566	)		(25	)		(3,029	)
Other operating results, net		42			(20	)		(111	)		(49	)		167			29
Profit / (loss) from operations		4,230			59,373			32,865			400			(958	)		95,910
Share of profit of associates and joint ventures		-			-			-			-			17,367			17,367
Segment profit		4,230			59,373			32,865			400			16,409			113,277
Investment properties and trading properties		120,956			147,863			89,401			-			942			359,162
Investment in associates and joint ventures		-			-			1,310			-			21,529			22,839
Other operating assets		500			160			1,931			4,527			702			7,820
Reportable assets		121,456			148,023			92,642			4,527			23,173			389,821

(1)    Includes the result for the investment in New Lipstick for ARS 18,399 million in the line “Share of profit of associates and joint ventures”. Such amount under the previous classification was included in the International segment, however the CODM does not analyze it anymore as an independent segment due to the cessation of the activities of Condor and New Lipstick.

From all the revenues corresponding included in the segments ARS 26,221 million are originated in Argentina, ARS 1,179 million are originated in Uruguay and ARS 34 million are originated in the United States. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 405,499 million are located in Argentina and ARS (15,678) million in other countries, principally in the United States for ARS (17,121) million and Uruguay for ARS 1,433 million.

120

Results of Operations for the fiscal years ended June 30, 2022 and 2021

Below is a summary of the operating segments by geography and a reconciliation between the total of the operating result according to the information by segments and the operating result according to the income statement for the years ended June 30, 2022 and 2021.

	Total Segment  Information									Joint Ventures									Expenses and Collective Promotion Fund									Inter-segment eliminations  and non-reportable  assets / liabilities									Total income  statement / statement  of financial position
	06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.
	(in Million ARS)
Revenues		25,593			16,585			9,008			(233	)		(82	)		(151	)		6,725			4,830			1,895			-			(51	)		51			32,085			21,282			10,803
Costs		(5,333	)		(5,665	)		332			91			115			(24	)		(6,874	)		(5,213	)		(1,661	)		-			-			-			(12,116	)		(10,763	)		(1,353	)
Gross profit / (loss)		20,260			10,920			9,340			(142	)		33			(175	)		(149	)		(383	)		234			-			(51	)		51			19,969			10,519			9,450
Net gain / (loss) from fair value adjustment of investment properties		12,328			(12,542	)		24,870			1,322			(200	)		1,522			-			-			-			-			-			-			13,650			(12,742	)		26,392
General and administrative expenses		(5,327	)		(5,049	)		(278	)		27			22			5			-			-			-			23			79			(56	)		(5,277	)		(4,948	)		(329	)
Selling expenses		(2,242	)		(2,477	)		235			5			34			(29	)		-			-			-			-			-			-			(2,237	)		(2,443	)		206
Other operating results, net		28			(256	)		284			-			(33	)		33			56			176			(120	)		(23	)		(28	)		5			61			(141	)		202
Profit / (loss) from operations		25,047			(9,404	)		34,451			1,212			(144	)		1,356			(93	)		(207	)		114			-			-			-			26,166			(9,755	)		35,921
Share of profit / (loss) of associates and joint ventures		466			(6,541	)		7,007			(821	)		(641	)		(180	)		-			-			-			-			-			-			(355	)		(7,182	)		6,827
Segment profit / (loss)		25,513			(15,945	)		41,458			391			(785	)		1,176			(93	)		(207	)		114			-			-			-			25,811			(16,937	)		42,748
Reportable assets		325,837			335,973			(10,136	)		(1,939	)		(2,481	)		542			-			-			-			48,894			31,833			17,061			372,792			365,325			7,467
Reportable liabilities		-			-			-			-			-			-			-			-			-			(203,065	)		(229,672	)		26,607			(203,065	)		(229,672	)		26,607
Net reportable assets		325,837			335,973			(10,136	)		(1,939	)		(2,481	)		542			-			-			-			(154,171	)		(197,839	)		43,668			169,727			135,653			34,074

Below is a summary analysis of the operating segments by products and services for the years ended June 30, 2022 and 2021

121

	Shopping Malls									Offices									Sales and Developments									Hotels									Others									Total
	06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.			06.30.22			06.30.21			Var.
	(in Million ARS)
Revenues		17,334			8,727			8,607			3,041			4,401			(1,360	)		746			1,271			(525	)		4,300			1,510			2,790			172			676			(504	)		25,593			16,585			9,008
Costs		(1,495	)		(1,428	)		(67	)		(293	)		(236	)		(57	)		(581	)		(1,379	)		798			(2,456	)		(1,746	)		(710	)		(508	)		(876	)		368			(5,333	)		(5,665	)		332
Gross profit / (loss)		15,839			7,299			8,540			2,748			4,165			(1,417	)		165			(108	)		273			1,844			(236	)		2,080			(336	)		(200	)		(136	)		20,260			10,920			9,340
Net gain / (loss) from fair value adjustment of investment properties		553			(33,349	)		33,902			(5,391	)		9,088			(14,479	)		17,106			11,658			5,448			-			-			-			60			61			(1	)		12,328			(12,542	)		24,870
General and administrative expenses		(2,862	)		(2,348	)		(514	)		(341	)		(685	)		344			(1,058	)		(1,164	)		106			(730	)		(699	)		(31	)		(336	)		(153	)		(183	)		(5,327	)		(5,049	)		(278	)
Selling expenses		(847	)		(740	)		(107	)		(78	)		(307	)		229			(922	)		(1,145	)		223			(340	)		(231	)		(109	)		(55	)		(54	)		(1	)		(2,242	)		(2,477	)		235
Other operating results, net		(142	)		(207	)		65			(23	)		(8	)		(15	)		(48	)		(8	)		(40	)		(59	)		(20	)		(39	)		300			(13	)		313			28			(256	)		284
Profit / (loss) from operations		12,541			(29,345	)		41,886			(3,085	)		12,253			(15,338	)		15,243			9,233			6,010			715			(1,186	)		1,901			(367	)		(359	)		(8	)		25,047			(9,404	)		34,451
Share of (loss) / profit of associates and joint ventures		-			-			-			-			-			-			-			(26	)		26			-			-			-			466			(6,515	)		6,981			466			(6,541	)		7,007
Segment profit / (loss)		12,541			(29,345	)		41,886			(3,085	)		12,253			(15,338	)		15,243			9,207			6,036			715			(1,186	)		1,901			99			(6,874	)		6,973			25,513			(15,945	)		41,458
Reportable assets		92,069			89,506			2,563			70,734			120,852			(50,118	)		145,495			105,686			39,809			4,183			4,269			(86	)		13,356			15,660			(2,304	)		325,837			335,973			(10,136	)
Reportable liabilities		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Net reportable assets		92,069			89,506			2,563			70,734			120,852			(50,118	)		145,495			105,686			39,809			4,183			4,269			(86	)		13,356			15,660			(2,304	)		325,837			335,973			(10,136	)

122

Revenue June 2022 vs June 2021

Shopping Malls. Revenues from the Shopping Malls segment increased by 98.6% from ARS 8,727 million during the fiscal year ended June 30, 2021, to ARS 17,334 million during the fiscal year ended June 30, 2022. Such increase is due to the fact that during the fiscal year ended in 2021, a support policy was maintained for tenants in all shopping malls, where, due to the pandemic, the contractual monthly insured value (VMA) was not invoiced, but rather a percentage of sales. In the current fiscal year, although these policies were maintained in the first part of it, in the second half of the fiscal year there was evidence of a recovery in rental income, generating: (i) an increase of ARS 3,365 million in base rent revenue; (ii) an increase of ARS 6,005 million in contingent rent revenue; (iii) an ARS 516 million increase in revenue from parking; partially offset by (iv) an ARS 1,279 million decrease in the revenue from averaging of scheduled rent escalation.

Offices. Revenues from the Offices segment decreased by 30.9% from ARS 4,401 million during the fiscal year ended June 30, 2021, to ARS 3,041 million during the fiscal year ended June 30, 2022. This variation is mainly explained by a decrease in revenue from leases by 30.8%, from ARS 4,299 million during the fiscal year ended June 30, 2021 to ARS 2,974 million during the fiscal year ended June 30, 2022, mainly as a result of less income from leases due to the sale of Bouchard Building and sale of floors in Boston Tower during the fiscal year ended June 30, 2021 and the sale of República Building in the current fiscal year.

Sales and Developments. Revenues from the Sales and Developments segment recorded a 41.3% decrease from ARS 1,271 million during the fiscal year ended June 30, 2021, to ARS 746 million during the fiscal year ended June 30, 2022. This segment often varies significantly from period to period due to the non-recurrence of different sales transactions carried out by us over time.

Hotels. Revenues from our Hotels segment increased by 184.8% from ARS 1,510 million during the fiscal year ended June 30, 2021, to ARS 4,300 million during the fiscal year ended June 30, 2022, mainly due to higher occupancy with the consequent increase in revenue. The Intercontinental and Libertador hotels have not reached the pre-pandemic occupancy levels yet.

Others. Revenues from the Others segment decreased by 74.6% from ARS 676 million during the fiscal year ended June 30, 2021, to ARS 172 million during the fiscal year ended June 30, 2022, mainly due to the sale of Stowe House in USD 3.45 million during the fiscal year ended June 30, 2021, generating a profit of USD 0.3 million.

Costs 2022 vs 2021

Shopping Malls. Costs associated with the Shopping Malls segment increased by 4.7%, from ARS 1,428 million during the fiscal year ended June 30, 2021, to ARS 1,495 million during the fiscal year ended June 30, 2022, mainly due to: (i) an increase in maintenance expenses of ARS 84 million; (ii) an increase in leases and expenses of ARS 37 million and (iii) an increase in taxes, rates and contributions of ARS 14 million; partially offset by: (iv) a decrease in amortization and depreciation charges of ARS 45 million and (v) a decrease of ARS 36 million in salaries, social security charges and other personnel administrative expenses. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, decreased from 16.4% during the fiscal year ended June 30, 2021, to 8.6% during the fiscal year ended June 30, 2022.

Offices. Costs associated with the Offices segment increased by 24.2%, from ARS 236 million during the fiscal year ended June 30, 2021, to ARS 293 million during the fiscal year ended June 30, 2022, mainly due to (i) an increase in amortization and depreciation charges of ARS 39 million; (ii) an increase in leases and expenses of ARS 28 million; (iii) an increase in taxes, rates and contributions of ARS 24 million; partially offset by: (iv) a decrease in maintenance expenses of ARS 15 million and (v) a decrease of ARS 14 million in salaries, social security charges and other personnel administrative expenses. Costs associated with the Offices segment, measured as a percentage of the revenues from this segment, increased from 5.4% during the fiscal year ended June 30, 2021, to 9.6% during the fiscal year ended June 30, 2022.

123

Sales and Developments. Costs associated with our Sales and Developments segment recorded a 57.9% decrease from ARS 1,379 million during the fiscal year ended June 30, 2021, to ARS 581 million during the fiscal year ended June 30, 2022 mainly due to (i) a decrease of ARS 770 million in the cost of sale of goods and services; (ii) a decrease in maintenance expenses of ARS 35 million; and (iii) an ARS 19 million decrease in taxes, rates and contributions; partially offset by: (iv) an increase in leases and expenses of ARS 17 million. Costs in the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 108.5% during the fiscal year ended June 30, 2021, to 77.9% during the fiscal year ended June 30, 2022.

Hotels. Costs in the Hotels segment increased by 40.7%, from ARS 1,746 million during the fiscal year ended June 30, 2021, to ARS 2,456 million during the fiscal year ended June 30, 2022, mainly as a result of (i) an ARS 275 million increase in the costs of salaries, social security and other personnel expenses; (ii) an ARS 244 million increase in food, beverages and other hotel expenses; (iii) an ARS 148 million increase in maintenance expenses; and (iv) an ARS 56 million increase in fees and compensation services. Costs in the Hotels segment, measured as a percentage of revenues from this segment, decreased from 115.6% during the fiscal year ended June 30, 2021, to 57.1% during the fiscal year ended June 30, 2022.

Others.

Costs in the Others segment decreased by 42.0%, from ARS 876 million during the fiscal year ended June 30, 2021, to ARS 508 million during the fiscal year ended June 30, 2022, due to the sale of Stowe House and also due to the development and implementation of Appa Shops generating and increase in salaries, social security costs and other personnel administrative expenses, both events in the comparative fiscal year.

Gross profit 2022 vs 2021

Shopping Malls. Gross profit from the Shopping Malls segment increased by 117.0%, from a profit of ARS 7,299 million during the fiscal year ended June 30, 2021, to an ARS 15,839 million profit million during the fiscal year ended June 30, 2022, mainly as a result of a reopening of shopping malls in the current fiscal year unlike the fiscal year ended June 30, 2021 which had progressive openings and with more restrictions. Gross profit from the Shopping Malls segment, measured as a percentage of revenues from this segment, increased from 83.6% during the fiscal year ended June 30, 2021, to 91.4% during the fiscal year ended June 30, 2022.  

Offices. Gross profit from the Offices segment decreased by 34.0%, from a profit of ARS 4,165 million during the fiscal year ended June 30, 2021, to an ARS 2,748 million profit million during the fiscal year ended June 30, 2022. Gross profit from the Offices segment, measured as a percentage of revenues from this segment, decreased from 94.6% during the fiscal year ended June 30, 2021, to 90.4% during the fiscal year ended June 30, 2022.

Sales and developments. Gross profit / (loss) from the Sales and Developments segment increased by 252.8%, from a loss of ARS 108 million during the fiscal year ended June 30, 2021, to an ARS 165 million profit during the fiscal year ended June 30, 2022. Gross profit / (loss) from the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 8.5% negative during the fiscal year ended June 30, 2021, to 22.1% positive during the fiscal year ended June 30, 2022.

Hotels. Gross profit / (loss) from the Hotels segment increased by 881.4%, from a loss of ARS 236 million during the fiscal year ended June 30, 2021, to an ARS 1,844 million profit during the fiscal year ended June 30, 2022. Gross profit / (loss) from the Hotels segment, measured as a percentage of revenues from this segment, increased from 15.6% negative during the fiscal year ended June 30, 2021, to 42.9% positive during the fiscal year ended June 30, 2022.

Others. Gross loss from the Others segment decreased by 68.0%, from a loss of ARS 200 million during the fiscal year ended June 30, 2021, to an ARS 336 million loss during the fiscal year ended June 30, 2022. Gross loss from the Others segment, measured as a percentage of revenues from this segment, decreased from 29.6% negative during the fiscal year ended June 30, 2021, to 195.3% negative during the fiscal year ended June 30, 2022.

Net gain (loss) from fair value adjustment of investment properties 2022 vs 2021

Total consolidated net gain / (loss) from fair value adjustment of investment properties, according to the income statement, increased by ARS 26,392 million, from a net loss of ARS 12,742 million during the fiscal year ended June 30, 2021, to a net profit of ARS 13,650 million during the fiscal year ended June 30, 2022.

124

According to information by segments, the net gain / (loss) from fair value adjustment of investment properties went from a loss of ARS 12,542 million (out of which an ARS 33,349 million loss derives from our Shopping Malls segment; an ARS 9,088 million gain from our Offices segment; an ARS 11,658 million gain from our Sales and Developments segment and an ARS 61 million gain from our Others segment) during the fiscal year ended June 30, 2021, to a gain of ARS 12,328 million during the fiscal year ended June 30, 2022 (out of which an ARS 553 million profit derives from our Shopping Malls segment; an ARS 5,391 million loss from our Offices segment; an ARS 17,106 million gain from our Sales and Developments segment and an ARS 60 million gain from our Others segment).

The net impact in the peso value of our Shopping Malls was primarily a consequence of: (i) a solid real recovery in the performance of the Shopping Malls during the fiscal year ended June 30, 2022 and better future revenue prospects, (ii) more favorable macroeconomic projections, and (iii) improvements in operating margins, (iv) this was partially offset by a 100 basis point increase in the dollar discount rate at which projected cash flow is discounted.

The offices market in Argentina is a liquid market, in which a great number of counterparties participates carrying out sale-purchase transactions. This situation results in significant and representative sale-purchase prices. Furthermore, lease agreements are denominated in U.S. dollars and are usually executed for three-year terms, hence this business produces stable cash flows in U.S. dollars. In this sense, we use the Market Approach method to determine the fair value of our Offices and Others segment, the value per sqm, being the most representative measurement. The consolidated net (loss) from fair value adjustment of investment properties of our Offices segment was mainly due to the appreciation of the Peso against “dólar MEP”.

The consolidated net gain from fair value adjustment of investment properties of our Sales and development segment was mainly due to the increase in the fair value adjustment of “Costa Urbana” and sales of República Building and floors of Catalinas Building.

General and administrative expenses 2022 vs 2021

Shopping Malls. Administrative expenses  of Shopping Malls increased by 21.9%, from ARS 2,348 million during the fiscal year ended June 30, 2021, to ARS 2,862 million during the fiscal year ended June 30, 2022, mainly due to: (i) an increase of ARS 341 million in salaries, social security charges and other personnel administrative expenses; (ii) an increase of ARS 168 million in fees and compensation for services; and (iii) an increase in travelling, transportation and stationery of ARS 43 million; partially offset by: (v) a decrease of ARS 37 million in taxes, rates and contributions. Administrative expenses of Shopping Malls, measured as a percentage of revenues from such segment, decreased from 26.9% during the fiscal year ended June 30, 2021, to 16.5% during the fiscal year ended June 30, 2022.

Offices. The general and administrative expenses of our Offices segment decreased by 50.2%, from ARS 685 million during the fiscal year ended June 30, 2021, to ARS 341 million during the fiscal year ended June 30, 2022, mainly as a result of: (i) a decrease in fees payable to directors of ARS 149 million; (ii) a decrease of ARS 130 million in salaries, social security charges and other personnel administrative expenses; (iii) an ARS 25 million decrease in maintenance expenses; (iv) a decrease of ARS 20 million in fees and compensation for services; and (v) a decrease in leases and expenses of ARS 16 million. General and administrative expenses, measured as a percentage of revenues from the same segment, decreased from 15.6% during the fiscal year ended June 30, 2021, to 11.2% during the fiscal year ended June 30, 2022.

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 9.1%, from ARS 1,164 million during the fiscal year ended June 30, 2021, to ARS 1,058 million during the fiscal year ended June 30, 2022. General and administrative expenses, measured as a percentage of revenues from the same segment, increased from 91.6% during the fiscal year ended June 30, 2021, to 141.8% during the fiscal year ended June 30, 2022.

125

Hotels. General and administrative expenses associated with our Hotels segment increased by 4.4%, from ARS 699 million during the fiscal year ended June 30, 2021, to ARS 730 million during the fiscal year ended June 30, 2022, mainly as a result of: (i) an ARS 28 million increase in taxes, rates and contributions; (ii) an ARS 13 million increase in fees and compensation for services; and (iii) an ARS 9 million increase in bank expenses; partially offset by: (iv) a decrease of ARS 24 million in salaries, social security charges and other personnel administrative expenses. General and administrative expenses associated with the Hotels segment, measured as a percentage of revenues from this segment, decreased from 46.3% during the fiscal year ended June 30, 2021, to 17.0% during the fiscal year ended June 30, 2022.

Others. General and administrative expenses associated with our Others segment increased by 119.6%, from ARS 153 million during the fiscal year ended June 30, 2021, to ARS 336 million during the fiscal year ended June 30, 2022, mainly due to (i) an increase of ARS 171 million in fees and compensation for services; and (ii) an ARS 28 million increase in taxes, rates and contributions.

Selling expenses 2022 vs 2021

Shopping Malls. Selling expenses of the Shopping Malls segment increased by 14.5%, from ARS 740 million during the fiscal year ended June 30, 2021, to ARS 847 million during the fiscal year ended June 30, 2022, mainly as a result of: (i) an increase in the charge of taxes, rates and contributions of ARS 303 million; ii) an increase in the charge of publicity, advertising and other commercial expenses of ARS 170 million; partially offset by: (iii) a decrease in the charge of doubtful accounts of ARS 326 million, and (iv) a decrease of ARS 40 million in salaries, social security charges and other personnel administrative expenses. Selling expenses, measured as a percentage of revenues from the Shopping Malls segment, decreased from 8.5% during the fiscal year ended June 30, 2021, to 4.9% during the fiscal year ended June 30, 2022.

Offices. Selling expenses associated with our Offices segment decreased by 74.6%, from ARS 307 million during the fiscal year ended June 30, 2021, to ARS 78 million during the fiscal year ended June 30, 2022. Such variation was mainly generated as a result of: (i) an ARS 145 million decrease in the charge of taxes, rates and contributions; (ii) a decrease in the charge of doubtful accounts of ARS 56 million; (iii) an ARS 22 million decrease in salaries, social security and other personnel administrative expenses; and (iv) an ARS 6 million decrease in fees and compensation for services. Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, decreased from 7.0% during the fiscal year ended June 30, 2021, to 2.6% during the fiscal year ended June 30, 2022.

Sales and Developments. Selling expenses associated with our Sales and Developments segment decreased by 19.5%, from ARS 1,145 million during the fiscal year ended June 30, 2021, to ARS 922 million during the fiscal year ended June 30, 2022. Such variation was mainly generated by: (i) an ARS 282 million decrease in the charge of taxes, rates and contributions; partially offset by: (ii) an increase of ARS 36 million in fees and compensation for services, and (iii) an increase of ARS 29 million in the charge of publicity, advertising and other commercial expenses. Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 90.1% during the fiscal year ended June 30, 2021, to 123.6% during the fiscal year ended June 30, 2022.

Hotels. Selling expenses associated with our Hotels segment increased by 47.2%, from ARS 231 million during the fiscal year ended June 30, 2021, to ARS 340 million during the fiscal year ended June 30, 2022, mainly as a result of: (i) an ARS 118 million increase in taxes, rates and contributions; and (ii) an ARS 28 million increase in fees and compensation for services; partially offset by: (iii) an ARS 21 million decrease in salaries, social security and other personnel administrative expenses; and (iv) an ARS 16 million decrease in leases and expenses. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, decreased from 15.3% during the fiscal year ended June 30, 2021, to 7.9% during the fiscal year ended June 30, 2022.

Others. Selling expenses associated with our Others segment increased by 1.9%, from ARS 54 million during the fiscal year ended June 30, 2021, to ARS 55 million during the fiscal year ended June 30, 2022. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, increased from 8.0% during the fiscal year ended June 30, 2021, to 32.0% during the fiscal year ended June 30, 2022.

Other operating results, net 2022 vs 2021

126

Shopping Malls. Other operating results, net associated with our Shopping Malls segment increased by 31.4%, from a net loss of ARS 207 million during the fiscal year ended June 30, 2021, to a net loss of ARS 142 million during the fiscal year ended June 30, 2022, mainly as a result of: (i) an increase of ARS 101 million in interest generated by operating credits, (ii) an increase of ARS 16 million in management fees, partially offset by; (iii) an increase of ARS 62 million in the loss for lawsuits. Other operating results, net, from this segment, as a percentage of revenues from this segment, increased from 2.4% negative during the fiscal year ended June 30, 2021, to 0.8% negative during the fiscal year ended June 30, 2022.

Offices. Other operating results, net associated with our Offices segment decreased by 187.5%, from a net loss of ARS 8 million during the fiscal year ended June 30, 2021, to a net loss of ARS 23 million during the fiscal year ended June 30, 2022, mainly as a consequence of (i) an increase of ARS 51 million in discount generated by operating credits; partially offset by: (ii) a decrease of ARS 19 million in donations; and (iii) a decrease of ARS 10 million in the loss for lawsuits. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 0.2% negative during the fiscal year ended June 30, 2021, to 0.8% negative during the fiscal year ended June 30, 2022.

Sales and Developments. Other operating results, net associated with our Sales and Developments segment decreased by 500.0%, from a net loss of ARS 8 million during the fiscal year ended June 30, 2021, to a net loss of ARS 48 million during the fiscal year ended June 30, 2022, mainly due to (i) a decrease of ARS 60 million due to the sale of shares of Manibil S.A. in the comparative fiscal year; (ii) a decrease of ARS 18 million in management fees; and (iii) an increase of ARS 16 million in the loss for lawsuits; partially offset by: (iv) a decrease of ARS 64 million in donations. Other operating results, net from this segment, as a percentage of the revenues of this segment, decreased from 0.6% negative during the fiscal year ended June 30, 2021, to 6.4% negative during the fiscal year ended June 30, 2022.

Hotels Other operating results, net associated with the Hotels segment decreased by 195.0%, from a net loss of ARS 20 million during the fiscal year ended June 30, 2021, to a net loss of ARS 59 million during the fiscal year ended June 30, 2022, mainly due (i) an increase of ARS 118 million in taxes, rates and contributions; and (ii) an increase of ARS 28 million in fees and compensation for services; partially offset by: (iii) a decrease of ARS 21 million in salaries, social security charges and other personnel administrative expenses; and (iv) an ARS 16 million decrease in leases and expenses. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 1.3% negative during the fiscal year ended June 30, 2021, to 1.4% negative during the fiscal year ended June 30, 2022.

Others. Other operating results, net associated with the Others segment increased by 2,407.7%, from a net loss of ARS 13 million during the fiscal year ended June 30, 2021, to a net profit of ARS 300 million during the fiscal year ended June 30, 2022, mainly due to an ARS 184 million recovery of fees for consultancy in Dolphin for and the income of fee charged to La Rural S.A in the current fiscal year. Other operating results, net from this segment, as a percentage of the revenues from this segment, increased from 1.9% negative during the fiscal year ended June 30, 2021, to 174.4% positive during the fiscal year ended June 30, 2022.

Operating results 2022 vs 2021

Shopping Malls. Operating results associated with the Shopping Malls segment increased by 142.7%, from a net loss of ARS 29,345 million during the fiscal year ended June 30, 2021, to a net profit of ARS 12,541 million during the fiscal year ended June 30, 2022. Such increase is due to the fact of the recovery in rental income due to the end of restrictions from COVID pandemic.

Offices. Operating results associated with our Offices segment decreased by 125.2%, from a net profit of ARS 12,253 million during the fiscal year ended June 30, 2021, to a net loss of ARS 3,085 million during the fiscal year ended June 30, 2022. Such variation was mainly due to an ARS 14,479 million decrease in the net gain / (loss) from fair value adjustments of investment properties. Operating results associated with the Offices segment, as a percentage of revenues from such segment, decreased from 278.4% positive during the fiscal year ended June 30, 2021, to 101.4% negative during the fiscal year ended June 30, 2022.

127

Sales and Developments. Operating results associated with our Sales and Developments segment increased by 65.1%, from a net profit of ARS 9,233 million during the fiscal year ended June 30, 2021, to a net profit of ARS 15,243 million during the fiscal year ended June 30, 2022. Such increase is mainly due to the net gain / (loss) from fair value adjustments of investment properties. Operating results associated with the Sales and Developments segment, as a percentage of revenues from this segment, increased from 726.4% positive during the fiscal year ended June 30, 2021, to 2,043.3% positive during the fiscal year ended June 30, 2022.

Hotels. Operating results associated with the Hotels segment increased by 160.3%, from a net loss of ARS 1,186 million during the fiscal year ended June 30, 2021, to a net profit of ARS 715 million during the fiscal year ended June 30, 2022. Such increase is mainly due to higher occupancy with the consequent increase in income, which was affected in the comparative fiscal year, due to COVID 19 pandemic. The Operating results associated with the Hotels segment, as a percentage of revenues from such segment, increased from 78.5% negative during the fiscal year ended June 30, 2021, to 16.6% positive during the fiscal year ended June 30, 2022.

Others. Operating results associated with the Others segment decreased from a net loss of ARS 359 million during the fiscal year ended June 30, 2021, to a net loss of ARS 367 million during the fiscal year ended June 30, 2022. Such decrease is mainly due to the increase in gross loss and administrative expenses partially offset by a positive result in other operating results, net

Share of profit / (loss) of associates and joint ventures 2022 vs 2021

The share of profit / (loss) of associates and joint ventures, according to the income statement, increased by 95.1%, from a net loss of ARS 7,182 million during the fiscal year ended June 30, 2021 to a net loss of ARS 355 million during the fiscal year ended June 30, 2022, mainly due to the positive results from the Others segment.

Also, the net share of profit / (loss) of joint ventures, mainly from Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment) and Cyrsa S.A. and Puerto Retiro S.A. (Sales and Developments segment), showed a 28.1% decrease, from a loss of ARS 641 million during the fiscal year ended June 30, 2021, to a loss of ARS 821 million during the fiscal year ended June 30, 2022, mainly due to results from the joint venture Quality Invest S.A., mainly attributable to the net gain / (loss) from fair value adjustments of investment properties.

Shopping Malls. In the information by segments, the share of profit / (loss) of the joint venture Nuevo Puerto Santa Fe S.A. is recorded on a consolidated basis, line by line in this segment.

Offices. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

Sales and Developments. The share of profit / (loss) of the joint ventures Quality Invest S.A., Cyrsa S.A. and Puerto Retiro S.A is recorded on a consolidated basis, line by line.

Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

Other. The share of profit / (loss) of associates from the Others segment increased by 107.2%, from a net loss of ARS 6,515 million during the fiscal year ended June 30, 2021, to a net profit of ARS 466 million during the fiscal year ended June 30, 2022, mainly as a result of the variation from our investments in TGLT by ARS 2,783 million positive, Banco Hipotecario by ARS 2,113 positive and New Lipstick by ARS 922 million positive.

Financial results, net

The financial results went from a profit of ARS 5,469 million during the fiscal year ended June 30, 2021 to a profit of ARS 11,851 million during the fiscal year ended June 30, 2022. Such variation is mainly due to the variation of the exchange rate and a decrease in interest expenses.

128

Income Tax

The Company applies the deferred tax method to calculate the income tax for the reported years, thus recognizing temporary differences as tax assets and liabilities. The income tax charge went from an expense of ARS 35,540 million during the fiscal year ended June 30, 2021, to an expense of ARS 2,770 million during the fiscal year ended June 30, 2022, due to the impact on deferred income tax. Such variation is mainly due to the modification in the income tax rates in Argentina according to the Law 27,630 published in the Official Gazette on June 16, 2021, which explains the increase in the expense on income tax during the fiscal year ended June 30, 2021, due to the impact on deferred income tax. During the fiscal year ended June 30, 2022, the deferred income tax was affected by the increase in the net gain from fair value adjustment of investment properties.

Profit for the year

As a result of the factors described above, the profit / (loss) for the year went from a loss of ARS 61,641 million (that includes a loss of ARS 14,633 for the effect of discontinued operations) during the fiscal year ended June 30, 2021, to a profit of ARS 34,892 million during the fiscal year ended June 30, 2022.

129

Results of Operations for the fiscal years ended June 30, 2021 and 2020

Below is a summary of the operating segments by geography and a reconciliation between the total of the operating result according to the information by segments and the operating result according to the income statement for the years ended June 30, 2021 and 2020.

	Total Segment  Information									Joint Ventures									Expenses and Collective  Promotion Fund									Inter-segment eliminations and non-reportable assets / liabilities									Total income  statement / statement of financial position
	06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.
	(in Million ARS)
Revenues		16,585			27,434			(10,849	)		(82	)		(150	)		68			4,830			7,638			(2,808	)		(51	)		(54	)		3			21,282			34,868			(13,586	)
Costs		(5,665	)		(6,725	)		1,060			115			132			(17	)		(5,213	)		(7,956	)		2,743			-			-			-			(10,763	)		(14,549	)		3,786
Gross profit / (loss)		10,920			20,709			(9,789	)		33			(18	)		51			(383	)		(318	)		(65	)		(51	)		(54	)		3			10,519			20,319			(9,800	)
Net (loss) / gain from fair value adjustment of investment properties		(12,542	)		83,728			(96,270	)		(200	)		(648	)		448			-			-			-			-			-			-			(12,742	)		83,080			(95,822	)
General and administrative expenses		(5,049	)		(5,527	)		478			22			35			(13	)		-			-			-			79			79			-			(4,948	)		(5,413	)		465
Selling expenses		(2,477	)		(3,029	)		552			34			41			(7	)		-			-			-			-			-			-			(2,443	)		(2,988	)		545
Other operating results, net		(256	)		29			(285	)		(33	)		42			(75	)		176			149			27			(28	)		(25	)		(3	)		(141	)		195			(336	)
(Loss) / profit from operations		(9,404	)		95,910			(105,314	)		(144	)		(548	)		404			(207	)		(169	)		(38	)		-			-			-			(9,755	)		95,193			(104,948	)
Share of (loss) / profit of associates and joint ventures		(6,541	)		17,367			(23,908	)		(641	)		420			(1,061	)		-			-			-			-			-			-			(7,182	)		17,787			(24,969	)
Segment (loss) / profit		(15,945	)		113,277			(129,222	)		(785	)		(128	)		(657	)		(207	)		(169	)		(38	)		-			-			-			(16,937	)		112,980			(129,917	)
Reportable assets		335,973			1,498,210			(1,162,237	)		(2,481	)		(1,704	)		(777	)		-			-			-			31,833			48,303			(16,470	)		365,325			1,544,809			(1,179,484	)
Reportable liabilities		-			(987,692	)		987,692			-			-			-			-			-			-			(229,672	)		(255,011	)		25,339			(229,672	)		(1,242,703	)		1,013,031
Net reportable assets		335,973			510,518			(174,545	)		(2,481	)		(1,704	)		(777	)		-			-			-			(197,839	)		(206,708	)		8,869			135,653			302,106			(166,453	)

Below is a summary analysis of the operating segments by products and services for the years ended June 30, 2021 and 2020

130

	Shopping Malls									Offices									Sales and Developments									Hotels									Others									Total
	06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.			06.30.21			06.30.20			Var.
	(in Million ARS)
Revenues		8,727			14,569			(5,842	)		4,401			5,616			(1,215	)		1,271			2,025			(754	)		1,510			4,978			(3,468	)		676			246			430			16,585			27,434			(10,849	)
Costs		(1,428	)		(1,401	)		(27	)		(236	)		(192	)		(44	)		(1,379	)		(1,825	)		446			(1,746	)		(3,066	)		1,320			(876	)		(241	)		(635	)		(5,665	)		(6,725	)		1,060
Gross profit / (loss)		7,299			13,168			(5,869	)		4,165			5,424			(1,259	)		(108	)		200			(308	)		(236	)		1,912			(2,148	)		(200	)		5			(205	)		10,920			20,709			(9,789	)
Net (loss) / gain from fair value adjustment of investment properties		(33,349	)		(5,185	)		(28,164	)		9,088			54,755			(45,667	)		11,658			34,495			(22,837	)		-			-			-			61			(337	)		398			(12,542	)		83,728			(96,270	)
General and administrative expenses		(2,348	)		(2,044	)		(304	)		(685	)		(601	)		(84	)		(1,164	)		(1,217	)		53			(699	)		(897	)		198			(153	)		(768	)		615			(5,049	)		(5,527	)		478
Selling expenses		(740	)		(1,751	)		1,011			(307	)		(185	)		(122	)		(1,145	)		(502	)		(643	)		(231	)		(566	)		335			(54	)		(25	)		(29	)		(2,477	)		(3,029	)		552
Other operating results, net		(207	)		42			(249	)		(8	)		(20	)		12			(8	)		(111	)		103			(20	)		(49	)		29			(13	)		167			(180	)		(256	)		29			(285	)
(Loss) / profit from operations		(29,345	)		4,230			(33,575	)		12,253			59,373			(47,120	)		9,233			32,865			(23,632	)		(1,186	)		400			(1,586	)		(359	)		(958	)		599			(9,404	)		95,910			(105,314	)
Share of (loss) / profit of associates and joint ventures		-			-			-			-			-			-			(26	)		-			(26	)		-			-			-			(6,515	)		17,367			(23,882	)		(6,541	)		17,367			(23,908	)
Segment (loss) / profit		(29,345	)		4,230			(33,575	)		12,253			59,373			(47,120	)		9,207			32,865			(23,658	)		(1,186	)		400			(1,586	)		(6,874	)		16,409			(23,283	)		(15,945	)		113,277			(129,222	)
Reportable assets		89,506			121,456			(31,950	)		120,852			148,023			(27,171	)		105,686			92,642			13,044			4,269			4,527			(258	)		15,660			23,173			(7,513	)		335,973			389,821			(53,848	)
Reportable liabilities		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Net reportable assets		89,506			121,456			(31,950	)		120,852			148,023			(27,171	)		105,686			92,642			13,044			4,269			4,527			(258	)		15,660			23,173			(7,513	)		335,973			389,821			(53,848	)

131

Revenue 2021 vs 2020

Shopping Malls. Revenues from the Shopping Malls segment decreased by 40.1% from ARS 14,569 million during the fiscal year ended June 30, 2020, to ARS 8,727 million during the fiscal year ended June 30, 2021. Such fall is mainly attributable to the closing of the Shopping Malls as a consequence of the COVID 19 pandemic, which had  an impact in the fiscal year 2021, generating: (i) a decrease of ARS 3,809 million in base rent revenue; (ii) a decrease of ARS 1,283 million in revenue contingent rent; (iii) an ARS 930 million decrease in revenue from admission rights; (iv) an ARS 669 million decrease in revenue from parking; partially offset by (v) an ARS 813 million increase in the revenue from averaging of scheduled rent escalation.

Offices. Revenues from the Offices segment decreased by 21.6% from ARS 5,616 million during the fiscal year ended June 30, 2020, to ARS 4,401 million during the fiscal year ended June 30, 2021. This variation is mainly explained by a decrease in revenue from leases by 22.8%, from ARS 5,567 million during the fiscal year ended June 30, 2020 to ARS 4,299 million during the fiscal year ended June 30, 2021, mainly as a result of less income from leases due to the sale of Bouchard Building and sale of floors in Boston Tower during the fiscal year ended June 30, 2021.

Sales and Developments. Revenues from the Sales and Developments segment recorded a 37.2% decrease from ARS 2,025 million during the fiscal year ended June 30, 2020, to ARS 1,271 million during the fiscal year ended June 30, 2021. This segment often varies significantly from period to period due to the non-recurrence of different sales transactions carried out by us over time.

Hotels. Revenues from our Hotels segment decreased by 69.7% from ARS 4,978 million during the fiscal year ended June 30, 2020, to ARS 1,510 million during the fiscal year ended June 30, 2021, mainly due to a decrease in revenue as a result of the fall in the tourist industry during this period because of COVID 19.

Others. Revenues from the Others segment increased by 174.8% from ARS 246 million during the fiscal year ended June 30, 2020, to ARS 676 million during the fiscal year ended June 30, 2021, mainly due to the sale of Stowe House in USD 3.45 million, generating a profit of USD 0.3 million.

Costs 2021 vs 2020

Shopping Malls. Costs associated with the Shopping Malls segment increased by 1.9%, from ARS 1,401 million during the fiscal year ended June 30, 2020, to ARS 1,428 million during the fiscal year ended June 30, 2021, mainly due to: (i) an increase in leases and expenses of ARS 232 million and (ii) an increase in taxes, rates and contributions of ARS 39 million; partially offset by: (iii) a decrease in maintenance expenses of ARS 230 million and (iv) an ARS 21 million decrease in fees and compensation services. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, increased from 9.6% during the fiscal year ended June 30, 2020, to 16.4% during the fiscal year ended June 30, 2021.

Offices. Costs associated with the Offices segment increased by 22.9%, from ARS 192 million during the fiscal year ended June 30, 2020, to ARS 236 million during the fiscal year ended June 30, 2021, mainly due to (i) an increase of ARS 16 million in salaries, social security charges and other personnel administrative expenses; (ii) an increase in maintenance cost of ARS 10 million; (iii) an increase in leases and expenses of ARS 9 million; and (iv) an ARS 4 million increase in fees and compensation services. Costs associated with the Offices segment, measured as a percentage the revenues from this segment, increased from 3.4% during the fiscal year ended June 30, 2020, to 5.4% during the fiscal year ended June 30, 2021.

Sales and Developments. Costs associated with our Sales and Developments segment recorded a 24.4% decrease from ARS 1,825 million during the fiscal year ended June 30, 2020, to ARS 1,379 million during the fiscal year ended June 30, 2021 mainly due to (i) a decrease of ARS 241 million in the cost of sale of goods and services; (ii) an ARS 136 million decrease in fees and compensation services; (iii) a decrease in maintenance expenses of ARS 33 million; and (iv) a decrease in taxes, rates and contributions of ARS 17 million. Costs in the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 90.1% during the fiscal year ended June 30, 2020, to 108.5% during the fiscal year ended June 30, 2021.

132

Hotels. Costs in the Hotels segment decreased by 43.1%, from ARS 3,066 million during the fiscal year ended June 30, 2020, to ARS 1,746 million during the fiscal year ended June 30, 2021, mainly as a result of (i) an ARS 564 million decrease in the costs of salaries, social security and other personnel expenses; (ii) an ARS 392 million decrease in maintenance, repair, and services; (iii) an ARS 163 million decrease in food, beverages and other hotel expenses; and (iv) an ARS 112 million decrease in fees and compensation services. Costs in the Hotels segment, measured as a percentage of revenues from this segment, increased from 61.6% during the fiscal year ended June 30, 2020, to 115.6% during the fiscal year ended June 30, 2021.

Others. Costs in the Others segment increased by 263.5%, from ARS 241 million during the fiscal year ended June 30, 2020, to ARS 876 million during the fiscal year ended June 30, 2021, mainly as a result of an increase in cost of selling properties of ARS 502 million due to the sale of Stowe House and also an increase in fees and payments for services and an increase in charge salaries, social security costs and other personnel administrative expenses related to the development and implementation of Appa Shops.

Gross profit 2021 vs 2020

Shopping Malls. Gross profit from the Shopping Malls segment decreased by 44.6%, from a profit of ARS 13,168 million during the fiscal year ended June 30, 2020, to an ARS 7,299 million profit million during the fiscal year ended June 30, 2021, mainly as a result of a decrease in total sales of our leases in real terms, thus resulting in lower percentage rentals under our lease agreements attributable to COVID-19. Gross profit from the Shopping Malls segment as a percentage of the segment revenues, decreased from 90.4% positive during the fiscal year ended June 30, 2020, to 83.6% positive during the fiscal year ended June 30, 2021.  

Offices. Gross profit from the Offices segment decreased by 23.2%, from a profit of ARS 5,424 million during the fiscal year ended June 30, 2020, to an ARS 4,165 million profit million during the fiscal year ended June 30, 2021. Gross profit from the Offices segment, measured as percentage of revenues from this segment, decreased from 96.6% positive during the fiscal year ended June 30, 2020, to 94.6% positive during the fiscal year ended June 30, 2021.

Sales and developments. Gross profit / (loss) from the Sales and Developments segment decreased by 154.0%, from a profit of ARS 200 million during the fiscal year ended June 30, 2020, to an ARS 108 million loss during the fiscal year ended June 30, 2021. Gross profit / (loss) from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 9.9% positive during the fiscal year ended June 30, 2020, to 8.5% negative during the fiscal year ended June 30, 2021.

Hotels. Gross profit / (loss) from the Hotels segment decreased by 112.3%, from a profit of ARS 1,912 million during the fiscal year ended June 30, 2020, to an ARS 236 million loss during the fiscal year ended June 30, 2021. Gross profit / (loss) from the Hotels segment, measured as a percentage of revenues from this segment, decreased from 38.4% positive during the fiscal year ended June 30, 2020, to 15.6% negative during the fiscal year ended June 30, 2021.

Others. Gross profit / (loss) from the Others segment decreased by 4,100.0%, from a profit of ARS 5 million during the fiscal year ended June 30, 2020, to an ARS 200 million loss during the fiscal year ended June 30, 2021. Gross profit / (loss) from the Others segment, measured as a percentage of revenues from this segment, decreased from 2.0% positive during the fiscal year ended June 30, 2020, to 29.6% negative during the fiscal year ended June 30, 2021.

Net gain (loss) from fair value adjustment of investment properties 2021 vs 2020

Total consolidated net gain / (loss) from fair value adjustment of investment properties, according to the income statement, decreased by ARS 95,822 million, from a net profit of ARS 83,080 million during the fiscal year ended June 30, 2020, to a net loss of ARS 12,742 million during the fiscal year ended June 30, 2021.

For the period ended June 30, 2021, the net gain / (loss) from fair value adjustment of investment properties was a loss of ARS 12,542 million (an ARS 33,349 million loss from our Shopping Malls segment; an ARS 9,088 million gain from our Offices segment; an ARS 11,658 million gain from our Sales and Developments segment and an ARS 61 million gain from our Others segment).

133

The net impact in the peso values of our shopping malls was primarily a consequence of: (i) an increase in the income tax rate from 25% to 35%, with a consequent decrease in the projected cash flows; (ii) between June 30, 2020 to June 30, 2021, the Argentinian peso depreciated 36% against U.S. dollar (from ARS 70.26 per U.S. dollar to ARS 95.52 per U.S. dollar), which generated a reduction in the projected cash flows as measured in U.S. dollar terms from our Shopping Malls segment; and (iii) increase of 135 basis points in the discount rate, that is used to discount the projected cash flows from the Shopping Malls segment.

The offices market in Argentina is a liquid market, in which a great number of counterparties participates carrying out sale-purchase transactions. This situation results in significant and representative sale-purchase prices. Furthermore, lease agreements are denominated in U.S. dollars and are usually executed for three-year terms, hence this business produces stable cash flows in U.S. dollars. In this sense, we use the Market Approach method to determine the fair value of our Offices and Others segment, the value per sqm, being the most representative measurement.

Since September 2019, the real estate market experienced certain operational changes due to the adoption of foreign exchange regulations. As a result, it is very likely that office buildings/lands reserved sales be settled in Pesos at an implied exchange rate higher than the official exchange rate, which can be observed in the transactions conducted by the Company before and after closing of these financial statements. Therefore, the Company has valued its office buildings in pesos at the end of the fiscal year considering the situation described above, but such increase in valuation was partially offset by the inflation adjustment during the fiscal year, as a result we recognized a gain of ARS 9,088 million with respect to the values previously recorded.

General and administrative expenses 2021 vs 2020

Shopping Malls. Administrative expenses  of Shopping Malls increased by 14.9%, from ARS 2,044 million during the fiscal year ended June 30, 2020, to ARS 2,348 million during the fiscal year ended June 30, 2021, mainly due to: (i) an increase of ARS 286 million in fees payable to directors; (ii) an increase of ARS 124 million in salaries, social security charges and other personnel administrative expenses; (iii) an increase in maintenance expenses of ARS 25 million; (iv) an increase of ARS 15 million in taxes, rates and contributions; partially offset by: (v) a decrease of ARS 99 million in fees and compensation for services. Administrative expenses of Shopping Malls, measured as a percentage of revenues from such segment, increased from 14.0% during the fiscal year ended June 30, 2020, to 26.9% during the fiscal year ended June 30, 2021.

Offices. The general and administrative expenses of our Offices segment increased by 14.0%, from ARS 601 million during the fiscal year ended June 30, 2020, to ARS 685 million during the fiscal year ended June 30, 2021, mainly as a result of: (i) an increase in fees payable to directors of ARS 75 million; (ii) an increase of ARS 32 million in salaries, social security charges and other personnel administrative expenses; partially offset by (iii) a decrease in fees and compensation for services of ARS 27 million. General and administrative expenses, measured as a percentage of revenues from the same segment, increased from 10.7% during the fiscal year ended June 30, 2020, to 15.6% during the fiscal year ended June 30, 2021.

Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 4.4%, from ARS 1,217 million during the fiscal year ended June 30, 2020, to ARS 1,164 million during the fiscal year ended June 30, 2021. General and administrative expenses, measured as a percentage of revenues from the same segment, increased from 60.1% during the fiscal year ended June 30, 2020, to 91.6% during the fiscal year ended June 30, 2021.

Hotels. General and administrative expenses associated with our Hotels segment decreased by 22.1%, from ARS 897 million during the fiscal year ended June 30, 2020, to ARS 699 million during the fiscal year ended June 30, 2021, mainly as a result of: (i) an ARS 70 million decrease in salaries, social security and other personnel administrative expenses; (ii) an ARS 53 million decrease in maintenance, security, cleaning, repairs and related expenses; (iii) an ARS 34 million decrease in taxes, rates and contributions; and (iv) an ARS 26 million decrease in fees and compensation for services. General and administrative expenses associated with the Hotels segment, measured as a percentage of revenues from this segment, increased from 18.0% during the fiscal year ended June 30, 2020, to 46.3% during the fiscal year ended June 30, 2021.

134

Others. General and administrative expenses associated with our Others segment decreased by 80.1%, from ARS 768 million during the fiscal year ended June 30, 2020, to ARS 153 million during the fiscal year ended June 30, 2021, mainly due to (i) a decrease of ARS 356 million in fees and compensation for services; (ii) an ARS 172 million decrease in salaries, social security and other personnel administrative expenses; and (iii) a decrease of ARS 81 million in maintenance, repairs and services.

Selling expenses 2021 vs 2020

Shopping Malls. Selling expenses of the Shopping Malls segment decreased by 57.7%, from ARS 1,751 million during the fiscal year ended June 30, 2020, to ARS 740 million during the fiscal year ended June 30, 2021, mainly as a result of: (i) a decrease in the charge of taxes, rates and contributions of ARS 470 million; ii) a decrease in the charge of doubtful accounts of ARS 458 million; and iii) a decrease in the charge of publicity, advertising and other commercial expenses of ARS 47 million. Selling expenses, measured as a percentage of revenues from the Shopping Malls segment, decreased from 12.0% during the fiscal year ended June 30, 2020, to 8.5% during the fiscal year ended June 30, 2021.

Offices. Selling expenses associated with our Offices segment increased by 65.9%, from ARS 185 million during the fiscal year ended June 30, 2020, to ARS 307 million during the fiscal year ended June 30, 2021. Such variation was mainly generated as a result of: (i) an ARS 97 million increase in the charge of taxes, rates and contributions; (ii) an increase in the charge of doubtful accounts of ARS 26 million, partially offset by (ii) an ARS 5 million decrease in salaries, social security and other personnel administrative expenses. Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, increased from 3.3% during the fiscal year ended June 30, 2020, to 7.0% during the fiscal year ended June 30, 2021.

Sales and Developments. Selling expenses associated with our Sales and Developments segment increased by 128.1%, from ARS 502 million during the fiscal year ended June 30, 2020, to ARS 1,145 million during the fiscal year ended June 30, 2021. Such variation was mainly generated by: (i) an ARS 388 million increase in fees and compensation; and (ii) an ARS 295 million increase in taxes, rates and contributions, both charges related to the sale of Bouchard Building and sale of floors in Boston Tower; partially offset by: (iii) a decrease of ARS 17 million in the charge of publicity, advertising and other commercial expenses, and, (iv) a decrease of ARS 8 million in salaries, social security and other personnel administrative expenses. Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 24.8% during the fiscal year ended June 30, 2020, to 90.1% during the fiscal year ended June 30, 2021.

Hotels. Selling expenses associated with our Hotels segment decreased by 59.2%, from ARS 566 million during the fiscal year ended June 30, 2020, to ARS 231 million during the fiscal year ended June 30, 2021, mainly as a result of: (i) an ARS 157 million decrease in taxes, rates and contributions; (ii) an ARS 54 million decrease in salaries, social security and other personnel administrative expenses; (iii) an ARS 41 million decrease in publicity, advertising and other commercial expenses; and (iv) an ARS 40 million decrease in fees and compensation for services. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, increased from 11.4% during the fiscal year ended June 30, 2020, to 15.3% during the fiscal year ended June 30, 2021.

Others. Selling expenses associated with our Others segment increased by 116.0%, from ARS 25 million during the fiscal year ended June 30, 2020, to ARS 54 million during the fiscal year ended June 30, 2021. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, decreased from 10.2% during the fiscal year ended June 30, 2020, to 8.0% during the fiscal year ended June 30, 2021.

Other operating results, net 2021 vs 2020

135

Shopping Malls. Other operating results, net associated with our Shopping Malls segment decreased by 592.9%, from a net profit of ARS 42 million during the fiscal year ended June 30, 2020, to a net loss of ARS 207 million during the fiscal year ended June 30, 2021, mainly as a result of: (i) a decrease of ARS 262 million in interest generated by operating credits, (ii) a decrease of ARS 25 million in management fees, partially offset by; (iii) a decrease of ARS 26 million in donations; and (iv) a decrease of ARS 22 million in the loss for lawsuits. Other operating results, net, from this segment, as a percentage of revenues from this segment, decreased from 0.3% positive during the fiscal year ended June 30, 2020, to 2.4% negative during the fiscal year ended June 30, 2021.

Offices. Other operating results, net associated with our Offices segment increased by 60.0%, from a net loss of ARS 20 million during the fiscal year ended June 30, 2020, to a net loss of ARS 8 million during the fiscal year ended June 30, 2021, mainly as a consequence of (i) a decrease of ARS 7 million in donations; and (ii) a decrease of ARS 3 million in the loss for lawsuits. Other operating results, net from this segment, as a percentage of the revenues from this segment, increased from 0.4% negative during the fiscal year ended June 30, 2020, to 0.2% negative during the fiscal year ended June 30, 2021.

Sales and Developments. Other operating results, net associated with our Sales and Developments segment increased by 92.8%, from a net loss of ARS 111,0 million during the fiscal year ended June 30, 2020, to a net loss of ARS 8 million during the fiscal year ended June 30, 2021, mainly due to (i) a decrease of ARS 77 million in the loss for lawsuits; partially offset by: (ii) a decrease of ARS 20 million in interest and discount generated by operating credits and (iii) an increase of ARS 14 million in donations. Other operating results, net from this segment, as a percentage of the revenues of this segment, increased from 5.5% negative during the fiscal year ended June 30, 2020, to 0.6% negative during the fiscal year ended June 30, 2021.

Hotels Other operating results, net associated with the Hotels segment increased by 59.2%, from a net loss of ARS 49 million during the fiscal year ended June 30, 2020, to a net loss of ARS 20 million during the fiscal year ended June 30, 2021, mainly due to lower charges from lawsuits. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 1.0% negative during the fiscal year ended June 30, 2020, to 1.3% negative during the fiscal year ended June 30, 2021.

Others. Other operating results, net associated with the Others segment decreased by 107.8%, from a net profit of ARS 167 million during the fiscal year ended June 30, 2020, to a net loss of ARS 13 million during the fiscal year ended June 30, 2021, mainly due to lack of income of fee charged to La Rural S.A. during the fiscal year ended June 30, 2021. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 67.9% positive during the fiscal year ended June 30, 2020, to 1.9% negative during the fiscal year ended June 30, 2021.

Operating results 2021 vs 2020

Shopping Malls. Operating results associated with the Shopping Malls segment decreased from a profit of ARS 4,230 million during the fiscal year ended June 30, 2020, to a loss of ARS 29,345 million during the fiscal year ended June 30, 2021.

Offices. Operating results associated with our Offices segment decreased by 79.4%, from a net profit of ARS 59,373 million during the fiscal year ended June 30, 2020, to a net profit of ARS 12,253 million during the fiscal year ended June 30, 2021. Such variation was mainly due to an ARS 45,667 million decrease in the net gain / (loss) from fair value adjustments of investment properties. Operating results associated with the Offices segment, as a percentage of revenues from such segment, decreased from 1,057.2% positive during the fiscal year ended June 30, 2020, to 278.4% positive during the fiscal year ended June 30, 2021.

Sales and Developments. Operating results associated with our Sales and Developments segment decreased by 71.9%, from a net profit of ARS 32,865 million during the fiscal year ended June 30, 2020, to a net profit of ARS 9,233 million during the fiscal year ended June 30, 2021. Such decrease is mainly due to the net gain / (loss) from fair value adjustments of investment properties. Operating results associated with the Sales and Developments segment, as a percentage of revenues from this segment, decreased from 1,623.0% positive during the fiscal year ended June 30, 2020, to 726.4% positive during the fiscal year ended June 30, 2021.

136

Hotels. Operating results associated with the Hotels segment decreased by 396.5%, from a net profit of ARS 400 million during the fiscal year ended June 30, 2020, to a net loss of ARS 1,186 million during the fiscal year ended June 30, 2021. Such decrease is mainly due to the fact that revenue was significantly affected by a decline in the activity during the fiscal year ended June 30, 2021, attributable to the COVID-19 pandemic. Operating results associated with the Hotels segment, as a percentage of revenues from such segment, decreased from 8.0% positive during the fiscal year ended June 30, 2020, to 78.5% negative during the fiscal year ended June 30, 2021.

Others. Operating results associated with the Others segment increased from a net loss of ARS 958 million during the fiscal year ended June 30, 2020, to a net loss of ARS 359 million during the fiscal year ended June 30, 2021. Such increase is mainly due to the increase in revenues and an increase in the net gain / (loss) from fair value adjustments of investment properties.

Share of profit / (loss) of associates and joint ventures 2021 vs 2020

The share of (loss) / profit of associates and joint ventures, according to the income statement, decreased by 140.4%, from a net profit of ARS 17,787 million during the fiscal year ended June 30, 2020 to a net loss of ARS 7,182 million during the fiscal year ended June 30, 2021, mainly due to the negative results from the Others segment.

Also, the net share of profit / (loss) of joint ventures, mainly from Nuevo Puerto Santa Fe S.A. (Shopping Malls segment) and Quality Invest S.A., Cyrsa S.A. and Puerto Retiro S.A. (Sales and Developments segment), showed a 252.6% decrease, from a profit of ARS 420 million during the fiscal year ended June 30, 2020, to a loss of ARS 641 million during the fiscal year ended June 30, 2021, mainly due to results from the joint venture Quality Invest S.A., mainly explained by the income tax.

Shopping Malls. In the information by segments, the share of profit / (loss) of the joint venture Nuevo Puerto Santa Fe S.A. is recorded on a consolidated basis, line by line in this segment.

Offices. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

Sales and Developments. The share of profit / (loss) of the joint ventures Quality Invest S.A., Cyrsa S.A. and Puerto Retiro S.A is recorded on a consolidated basis, line by line. The share of profit / (loss) of our associate Manibil S.A., which is recorded in this line, increased by ARS 26 million during the fiscal year ended June 30, 2021

Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.

Other. The share of (loss) / profit of associates from the Others segment decreased by 137.5%, from a net profit of ARS 17,367 million during the fiscal year ended June 30, 2020, to a net loss of ARS 6,515 million during the fiscal year ended June 30, 2021, mainly as a result of the variation from our investments in New Lipstick by ARS 19,187 million negative and TGLT S.A. by ARS 3,264 million negative.

Financial results, net

The financial results went from a loss of ARS 29,902 million during the fiscal year ended June 30, 2020 to a profit of ARS 5,469 million during the fiscal year ended June 30, 2021. Such variation is mainly due to the variation of the exchange rate and the variation in fair value gain of financial assets and liabilities at fair value through profit or loss, net.

Income Tax

The Company applies the deferred tax method to calculate the income tax for the reported years, thus recognizing temporary differences as tax assets and liabilities. The income tax charge went from a loss of ARS 16,505 million during the fiscal year ended June 30, 2020, to a loss of ARS 35,540 million during the fiscal year ended June 30, 2021.

137

(Loss) / profit for the year

As a result of the factors described above, the (loss) / profit for the year went from a profit of ARS 58,641 million (that includes a loss of ARS 8,112 for the effect of discontinued operations) during the fiscal year ended June 30, 2020, to a loss of ARS 61,641 million (that includes a loss of ARS 14,633 for the effect of discontinued operations) during the fiscal year ended June 30, 2021.

C. Liquidity and Capital Resources

Our principal sources of liquidity have historically been:

· Cash generated by operations;

· Cash generated by issuance of debt securities;

· Cash from borrowing and financing arrangements; and

· Cash proceeds from the sale of real estate assets.

Our principal cash requirements or uses (other than in connection with our operating activities) have historically been:

· capital expenditures for acquisition or construction of investment properties and property, plant and equipment;

· interest payments and repayments of debt;

· acquisition of equity interests in companies;

· payments of dividends; and

· acquisition of real estate.

Our liquidity and capital resources include our cash and cash equivalents, proceeds from bank borrowings and long-term debt, capital financing and sales of real estate investments.

As of June 30, 2022 we had a negative working capital of ARS 44,010 million (calculated as current assets less current liabilities as of that date).

On July 6, 2022, the company completed the exchange of its Series II Notes, for an aggregate principal amount of USD 238,985,000, which represents 66.38% of the outstanding aggregate principal amount of the Series II Notes. For more information see “Recent Developments – Exchange Offer – Series II Notes, originally issued by IRSA CP, for Series XIV”.

Also, on August 17, 2022, the Company sold and transferred one floor of the tower “200 Della Paolera” located in the Catalinas district of the Autonomous City of Buenos Aires for a total leasable area of approximately 1,184 sqm and 8 parking lots located in the building. The transaction price was approximately USD 12.6 million (USD/sqm 10,600), which had already been paid. For more information see “Recent Developments – 200 Della Paolera tower floor sale”.

As of the same date, we had cash and cash equivalents for ARS 12,776 million, which represents the total of cash and cash equivalents at a consolidated level.

138

As stated in Note 1 to the consolidated financial statements as of June 30, 2020, on September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed, therefore, we lost control on that date. For comparability purposes and as required by IFRS 5, the results of the Israel Operations Center have been reclassified to discontinued operations for fiscal years ended June 30, 2021 and 2020.

The following table shows our cash flow for the fiscal years ended June 30, 2022, 2021 and 2020:

	Year ended June 30,
	2022			2021			2020
	million of ARS
Net cash generated from operating activities		12,677			2,389			76,630
Net cash generated from investing activities		11,195			110,455			112,306
Net cash used in financing activities		(13,663	)		(79,234	)		(199,697	)
Net increase / (decrease) in cash and cash equivalents		10,209			33,610			(10,761	)

Cash Flow Information

Operating activities

Fiscal year ended June 30, 2022

Our operating activities for the fiscal year ended June 30, 2022 generated net cash inflows of ARS 12,677 million, mainly due to (i) operating income of ARS 12,560 million, (ii) an increase in trade and other payables of ARS 624 million, partially offset by (iii) ARS 492 million related to Income Tax paid.

Fiscal year ended June 30, 2021

Our operating activities for the fiscal year ended June 30, 2021 generated net cash inflows of ARS 2,389 million, of which ARS 5,168 are originated in discontinued operations inflows and ARS 2,779 from continuing operations outflows, mainly due to (i) a decrease in trade and other payables of ARS 5,553 million, and (ii) a decrease in provisions of ARS 176 million, partially offset by (iii) an increase in trade and other receivables of ARS 2,483 million (iii) an operating income of ARS 452 million, and (vi) an increase in salaries and social security liabilities of ARS 87 million.

Fiscal year ended June 30, 2020

Our operating activities for the fiscal year ended June 30, 2020 generated net cash inflows of ARS 76,630 million, of which ARS 61,261 are originated in discontinued operations and ARS 15,369 from continuing operations, mainly due to (i) operating income of ARS 17,786 million, (ii) a decrease in trade and other receivables of ARS 4,680 million , partially offset by (iii) an increase in restricted assets of ARS 2,870 million (iv) a decrease in provisions of ARS 1,309 million, (v) a increase in trading properties of ARS 971 million, (vi) ARS 746 million related to Income Tax paid and (vii) a decrease in trade and other payables of ARS 735 million.

Investment activities

Fiscal year ended June 30, 2022

Our investing activities resulted in net cash inflows of ARS 11,195 million for the fiscal year ended June 30, 2022, mainly due to (i) ARS 25,977 million from sales of investment properties, (ii) ARS 10,501 from proceeds from disposal of investments in financial assets and (iii) ARS 3,586 million from dividends collected from associates and joint ventures, partially offset by (iv) ARS 22,871 million  used in the acquisition of investments in financial assets and (v) ARS 6,134 million used in the acquisitions and improvements of investment properties.

139

Fiscal year ended June 30, 2021

Our investing activities resulted in net cash inflows of ARS 110,455 million, comprised of ARS 72,347 million from discontinued activities inflows and ARS 38,108 million from continuing operations inflows for the fiscal year ended June 30, 2021, mainly due to (i) ARS 29,737 million from sales of investment properties and (ii) ARS 27,285 million from proceeds from disposal of investments in financial assets, partially offset by (iii) ARS 17,453 million  used in the acquisition of investments in financial assets and (iv) ARS 1,638 million used in the acquisitions and improvements of investment properties.

Fiscal year ended June 30, 2020

Our investing activities resulted in net cash inflows of ARS 112,306 million, comprised of ARS 100,302 million discontinued activities inflows and ARS 12,004 million from continuing operations inflows for the fiscal year ended June 30, 2020, mainly due to (i) ARS 49,472 million proceeds from disposal of investments in financial assets, (ii) ARS 12,195 million proceeds of derivative financial instruments, and (iii) ARS 4,434 million proceeds from loans granted, partially offset by (iv) ARS 37,955 million used in the acquisition of investments in financial assets, (v) ARS 6,654 million used for contributions and issuance of capital in associates and joint ventures (vi) ARS 9,058 million used in the acquisitions and improvements of investment properties, (vii) ARS 621 million used in the acquisition and improvements of property, plant and equipment.

Financing activities

Fiscal year ended June 30, 2022

Our financing activities for the fiscal year ended June 30, 2022 resulted in net cash outflows of ARS 13,663 million, mainly due to (i) the payment of loans and principal on notes of ARS 10,926 million, (ii) the payment of interest on short-term and long-term debt of ARS 8,186 million, (iii) ARS 1,726 million from the repurchase of non-convertible notes and (iv) the payment of short term loans of ARS 999 million, partially offset by (v) an increase in borrowings and issuance of non-convertible notes for ARS 4,877 million and (vi) ARS 4,252 million from sales of non-convertible notes in portfolio

Fiscal year ended June 30, 2021

Our financing activities for the fiscal year ended June 30, 2021 resulted in net cash outflows of ARS 79,234 million, of which ARS 29,784 million derive from discontinued operations and ARS 49,450 million derive from continuing activities, mainly due to (i) the payment of borrowings and non-convertible notes of ARS 65,278 million, (ii) the payment of interest on short-term and long-term debt of ARS 13,484 million, (iii) ARS 8,412 million used in the repurchase of non-convertible notes, and (iv) ARS 4,242 million from dividends paid to non-controlling interest in subsidiaries, partially offset by (v) an increase in borrowings and issuance of non-convertible notes for ARS 15,354 million, (vi) ARS 11,574 million from sales of non-convertible notes in portfolio, (vii) ARS 8,409 million from collections of short term loans and (viii) ARS 6,776 million from issuance of shares.

Fiscal year ended June 30, 2020

Our financing activities for the fiscal year ended June 30, 2020 resulted in net cash outflows of ARS 199,697 million, of which ARS 173,386 derive from discontinued operations and ARS 26,311 derive from continuing activities, mainly due to (i) the payment of borrowings and non-convertible notes of ARS 66,463 million; (ii) the payment of interest on short-term and long-term debt of ARS 13,296 million, and (iii) ARS 5,003 million used in the repurchase of non-convertible notes, partially offset by (iv) an increase in borrowings and issuance of non-convertible notes for ARS 54,398 million.

140

Capital expenditures

Fiscal year ended June 30, 2022

During the fiscal year ended June 30, 2022, we invested ARS 9,751 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 335 million, primarily i) ARS 11 million in buildings and facilities, ii) ARS 53 million in machinery and equipment and others, iii) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 11 million, ARS 253 million and ARS 7 million, respectively); (b) improvements in our rental properties for ARS 2,791 million; (c) the development of properties for ARS 6,625 million.

Fiscal year ended June 30, 2021

During the fiscal year ended June 30, 2021, we invested ARS 4,414 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 2,715 million, primarily i) ARS 259 million in buildings and facilities, ii) ARS 953 million in communication networks, iii) ARS 1,341 million in machinery and equipment and others, iv) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 13 million, ARS 33 million and ARS 26 million, respectively) and v) ARS 90 million in agricultural establishments; (b) improvements in our rental properties for ARS 1,699 million, out of which ARS 1,609 million derive from our Operations Center in Argentina and ARS 90 million derive from the Operations Center in Israel.

Fiscal year ended June 30, 2020

During the fiscal year ended June 30, 2020, we invested ARS 27,415 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 13,969 million, primarily i) ARS 817 million in buildings and facilities, ii) ARS 8,416 million in communication networks, iii) ARS 4,354 million in machinery and equipment and others iv) improvements in our hotels Sheraton Libertador, Llao Llao and Intercontinental (ARS 34 million, ARS 151 million and ARS 108 million, respectively) and v) ARS 89 million in agricultural establishments; (b) improvements in our rental properties of ARS 6,651 million, out of which ARS 4,695 million derive from our Operations Center in Argentina and ARS 1,956 million derive from the Operations Center in Israel; (c) the development of properties for ARS 6,795 million.

Indebtedness

The following table sets forth the scheduled maturities of our outstanding debt as of June 30, 2022:

	Total
	(in million of ARS)
Less than 1 year		61,682
More than 1 and up to 2 years		10,470
More than 2 and up to 3 years		2,150
More than 3 and up to 4 years		115
More than 4 and up to 5 years		317
Total		74,734

141

The following table sets forth the scheduled maturities of our outstanding debt as of June 30, 2022:

Description	Currency	Annual Average Interest Rate	Face value	Book value
			(in million of the corresponding currency of the debt)	(in million of ARS)
IRSA’s 2023 Notes – Series I	USD	10.00%	3	389
IRSA’s 2023 Notes – Series II (1)	USD	8.75%	351	44,863
IRSA’s 2023 Notes – Series VIII	USD	10.00%	18	2,364
IRSA’s 2023 Notes – Series IX	USD	10.00%	56	7,339
IRSA’s 2024 Notes – Series XI	USD	5.00%	13	1,583
IRSA’s 2024 Notes – Series XII (2)	UVA	4.00%	44	5,935
IRSA’s 2024 Notes – Series XIII	USD	3.90%	30	3,743
Loans with non-controlling interests	USD	5.0%	1	215
Bank loans	USD	Libor + 1.90%	8	1,012
AABE Debt	ARS	Libor	373	405
Others	USD/ARS	N/A	—	1,015
Bank overdrafts	ARS	Float	—	5,871
Total				74,734

 ___________________

(1)

Originally issued by IRSA CP. On May 16, 2022, we announced the exchange offer of Series II Notes for Series XIV Notes (for more information see “Series XIV Notes (Exchange of Series II Notes))”, in order to carry out the refinancing of Series II Notes. On July 6, 2022, the expiration of the exchange was announced, USD 238,985,000 of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued and the Series II Notes were partially canceled, the outstanding principal amount is USD 121,015,000.

(2)

Series XII denominated in UVA and payable in ARS.

Series II Notes (originally issued by IRSA Propiedades Comerciales S.A.)

On March 23, 2016, Series II Notes were issued in an aggregate principal amount of USD 360 million, under New York Law. Series II Notes accrue interest semi-annually, at an annual fixed rate of 8.75% and mature on March 23, 2023. The issuance price was 98.722% of the nominal value.

Likewise, as a result of the merger between IRSA and IRSA CP, on May 16, 2022, IRSA signed an amendment of the indenture for Series II, where IRSA expressly assumes the obligations under the Series II.

As a consequence of the regulations established by the Central Bank, and once the corresponding authorizations were obtained, on May 16, 2022, we announced the exchange offer of Series II Notes for Series XIV Notes (for more information see “Series XIV Notes (Exchange of Series II Notes)”), in order to carry out the refinancing of Series II Notes.

On July 6, 2022, the expiration of the exchange was announced, USD 238,985,000 of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued and the Series II Notes were partially canceled, with the outstanding principal amount being USD 121,015,000.

Series II Notes due 2023 are subject to certain covenants, events of default and limitations, such as the limitation on incurrence of additional indebtedness, limitation on restricted payments, limitation on transactions with affiliates, and limitation on merger, consolidation and sale of all or substantially all assets.

To incur additional indebtedness, IRSA is required to meet a minimum 2.00 to 1.00 Consolidated Interest Coverage Ratio. The Consolidated Interest Coverage Ratio is defined as Consolidated EBITDA divided by consolidated net interest expense. Consolidated EBITDA is defined as operating income plus depreciation and amortization and other consolidated non-cash charges.

142

The Series II Notes contain financial covenants limiting IRSA’s ability to declare or pay dividends in cash or in kind, unless the following conditions are met at the time of payment:

(a)	no Event of Default shall have occurred and be continuing;
(b)	IRSA may incur at least USD 1.00 worth of additional debt pursuant to the “Restriction on Additional Indebtedness”;
I	and the aggregate amount of such dividend exceeds the sum of:

(i)	100% of cumulative EBITDA for the period (treated as one accounting period) from July 1, 2015 through the last day of the last fiscal quarter ended prior to the date of such Restricted Payment minus an amount equal to 150% of consolidated interest expense for such period; and
(ii)	any reductions of Indebtedness of IRSA on a consolidated basis after the Issue Date any reductions of Indebtedness of after the Issue Date exchanged for to Capital Stock of the IRSA or its Subsidiaries.

Series I Notes

On May 15, 2019, IRSA issued the Note Series I under Argentine law for an amount of USD 96.3 million due on November 15, 2020, at a fixed rate of 10%. The proceeds were mainly used to repay preexisting debt. On August 6, 2019, IRSA reopened the Note Series I under Argentine law for an amount of USD 85.2 million, at a price of 103.77%, which resulted in an internal annual rate of return of 8.75% nominal.

As a consequence of the restrictions on access to the Foreign Exchange Market, on October 22, 2020, IRSA launched an exchange offer on its Series I Notes due on November 15, 2020.

The exchange offer ended on November 10, 2020 with an acceptance of 98.31%, so the percentage to change essential conditions of Series I was reached. On November 12, 2020, IRSA canceled Nominal Value of USD 178,458,188 of Series I Notes, after the cancellation the outstanding principal amount is USD 3,060,519, as was mentioned, expiration date was changed, among others modifications, until March 1, 2023 (for more information see “Series VIII and IX”).

Series VIII and IX Notes

On November 12, 2020, the company carried out an exchange offer of its Series I Notes, for a face value of USD 181.5 million.

Face Value of Series I Notes presented and accepted for the Exchange (for both Series): approximately USD 178.5 which represents 98.31% acceptance, through the participation of 6,571 orders.

As a result of the exchange, Series VIII and IX Notes were issued, which are described below:

· Series VIII: denominated and payable in U.S. Dollars for USD 31.7 million at a fixed rate of 10.0%, with quarterly payments. The principal payment will be in three installments of the capital: 33% on November 12, 2021, 33% on November 12, 2022, and 34% on November 12, 2023. The issuance price was 100.0% of the face value.

· Series IX: denominated and payable in U.S. Dollars for USD 80.7 million (includes USD 6,505,560 that were subscribed in cash) at a fixed rate of 10.0%, with quarterly payments. The principal payment will be in one installment on March 1, 2023. The issuance price was 100.0% of the face value.

143

Also, considering that consent has been obtained for an amount greater than 90% of the capital of the Series I Notes, the Company has modified and replaced the following essential and non-essential terms and conditions of the Series I Note.

By virtue of the implementation of the Proposed Non-Essential Modifications, the entire section of “Certain Commitments” and “Events of Default” is eliminated from the terms and conditions set forth in the prospectus supplements dated May 2, 2019 and dated July 25, 2019 corresponding to the existing notes. Additionally, pursuant to the implementation of the Proposed Essential Modifications, the following terms and conditions of the Existing Notes are modified and replaced: (i) Expiration Date: It will be March 1, 2023, and (ii) Interest Payment Dates: will be the same dates reported for Series IX in the Notice of Results.

Series X, XI and XII Notes

On March 31, 2021, the company issued in the local market a total amount of USD 65.5 million through the following Notes:

· Series X: denominated and payable in pesos for ARS 701.6 million (equivalent at the time of issuance to USD 7.6 million) at a variable rate (private BADLAR + 5.0%) with quarterly payments. Price of issuance was 100.0% of the nominal value. The principal was paid on March 31, 2022.

· Series XI: denominated in USD and payable in ARS at the applicable exchange rate for USD 15.8 million at a fixed rate of 5.0%, with semiannual payments plus, if applicable, the Premium Factor in the first year (as defined in the corresponding prospectus supplement) and principal expiring on March 31, 2024. Price of issuance was 98.39% of the face value (IRR 5.6%).

· Series XII: denominated in UVA and payable in ARS at the applicable UVA value for UVA 53.8 million (equivalent at the time of issuance to ARS 3,868.2 million and USD 42.1 million) at a fixed rate of 4.0%, with semiannual payments and principal expiring on March 31, 2024. Price of issuance was 100.0% of the nominal value.

The proceeds have been used to refinance short-term liabilities and working capital.

On March 31, 2022, Series X denominated in pesos was fully canceled.

Series XIII

On August 26, 2021, the company issued in the local market a total amount of USD 58.1 million through the following Notes:

· Series XIII: denominated in U.S. Dollars and payable in pesos at the applicable exchange rate for USD 58.1 million at a fixed rate of 3.9%, with semi-annual payments. The principal payment will be in three installments, counted from the date of issuance: the first for 25% of the nominal value on August 26, 2023; the second for 25% on February 26, 2024; and the third for 50% of the nominal value on August 26, 2024. Price of issuance was 100.0% of the nominal value.

The proceeds will be used to refinance short-term liabilities.

Series XIV Notes (Exchange of Series II Notes)

As consequence of the regulations established by the Central Bank, on July 6, 2022, the company completed the exchange of its Series II Notes, originally issued by IRSA Propiedades Comerciales S.A., in an aggregate principal amount of USD 360 million, maturing on March 23, 2023. On July 6, 2022, the expiration of the exchange was announced, USD 238,985,000 of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued for an amount of USD 171.2 million and the Series II Notes were partially canceled, the outstanding principal amount is USD 121,015,000.

144

The exchange offered two alternatives:

– Option A: Cash payment for up to 30% of the total amount of participation in the exchange, and the difference to complete the exchanged face value, in Series XIV Notes with a premium of 1,015 times. For each USD 1,000 tendered, the bondholder received USD 493.18 in cash and USD 514.42 in Series XIV Notes. Under Option A, 60.83% of the notes were accepted.

– Option B: For each USD 1,000 of Series II Notes the bondholder received 1,030 of Series XIV Notes. Under Option B, 39.17% of the notes were accepted.

In both options, the interest accrued as of settlement date was paid.

Series XIV Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%, with interest payable semi-annually on June 22 and December 22 of each year, until expiration. Amortization will be in annual installments payable on June 22 of each year, each for 17.5% from 2024 to 2027 and the remaining 30% on June 22, 2028. The issue price was 100%.

Series XIV Notes due 2028 are subject to certain covenants, events of default and limitations, such as the limitation on incurrence of additional indebtedness, limitation on restricted payments, limitation on transactions with affiliates, and limitation on merger, consolidation and sale of all or substantially all assets.

To incur additional indebtedness, IRSA is required to meet a minimum 2.00 to 1.00 Consolidated Interest Coverage Ratio. The Consolidated Interest Coverage Ratio is defined as Consolidated EBITDA divided by consolidated net interest expense. Consolidated EBITDA is defined as operating income plus depreciation and amortization and other consolidated non-cash charges.

The Series XIV Notes contain financial covenants limiting IRSA’s ability to declare or pay dividends in cash or in kind, unless the following conditions are met at the time of payment:

(a)	no Event of Default shall have occurred and be continuing;
(b)	IRSA may incur at least USD 1.00 worth of additional debt pursuant to the “Restriction on Additional Indebtedness”;
(c)	and the aggregate amount of such dividend exceeds the sum of:

(i)	100% of cumulative EBITDA for the period (treated as one accounting period) from July 1, 2020 through the last day of the last fiscal quarter ended prior to the date of such Restricted Payment minus an amount equal to 150% of consolidated interest expense for such period; and
(ii)	any reductions of Indebtedness of IRSA on a consolidated basis after the Issue Date any reductions of Indebtedness of after the Issue Date exchanged for to Capital Stock of the IRSA or its Subsidiaries.

145

For more information related to exchange controls see “Item 10. Additional Information—D. Exchange Controls”.

C. Research and Development, Patents and Licenses, Etc.

We have several trademarks registered with the Instituto Nacional de la Propiedad Industrial, the Argentine institute for industrial property. We do not own any patents nor benefit from licenses from third parties.

D. Trend Information

International Macroeconomic Outlook

As reported in the IMF’s “World Economic Outlook,” world GDP is expected to grow 3.2% in 2022. As with the July 2022 WEO projections, there is a higher-than-usual degree of uncertainty around this forecast. Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide––especially in the United States and major European economies––triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID- 19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine. Nevertheless, the baseline forecast assumed; a reduction in household purchasing power, due to a slower growth than expected, and tighter monetary policy drove a downward in the United States. In China, further lockdowns and the deepening real estate crisis have led growth to be revised down, with major global spillovers. And in Europe, significant downgrades reflect spillovers from the war in Ukraine and tighter monetary policy. Global inflation has been revised up due to food and energy prices as well as lingering supply-demand imbalances and is anticipated to reach 6.6 percent in advanced economies and 9.5 percent in emerging market and developing economies this year. In 2023, disinflationary monetary policy is expected to bite, with global output growing by just 2.9 percent.

The dollar’s appreciation in 2022—by about 5 percent in nominal effective terms as of June compared with December 2021 ––is also likely to have slowed world trade growth, considering the dollar’s dominant role in trade invoicing as well as negative financial balance sheet effects on demand and imports in countries with dollar-denominated liabilities.

On the other hand, Tighter financial conditions trigger debt distress in emerging market and developing economies. As advanced economy central banks raise interest rates to fight inflation, financial conditions worldwide will continue to tighten. The resulting increase in borrowing costs will, without correspondingly tighter domestic monetary policies, put pressure on international reserves and cause depreciation versus the dollar, inducing balance sheet valuation losses among economies with dollar-denominated net liabilities. Such challenges will come at a time when government financial positions in many countries are already stretched, implying less room for fiscal policy support, with 60 percent of low income countries in or at high risk of government debt distress (debt restructuring or accumulation of arrears)––up from about one-fifth a decade ago. Widespread capital flight from emerging market and developing economies could amplify this risk.

Argentine macroeconomic context

Shopping malls sales reached a total ARS 57,994.6 million in June 2022, which represents a 266.9% increase as compared to June 2021. Accumulated sales for the first six months, represent a 185.7% in current terms and 70.9% increase in real terms as compared to the same period of 2021.

The INDEC reported that, for the eight months ended August 30, 2022, industrial activity in Argentina increased by 6.1% compared to the same period in 2021. The textile industry accumulated a 18.2% growth during the first eight months of 2022 as compared to the same period last year. Moreover, the monthly estimation of economic activity (“EMAE”) as of July 31, 2021, increased by 5.6% compared to the same month in 2021.

Regarding the balance of payments, in the second quarter of 2022 the current account deficit reached USD 894 million, with USD 1,446 million allocated to the goods and services trade balance, and USD 2,904 million to the net primary deficit, and a surplus of USD 563 million to net secondary income.

146

During the second quarter of 2022, the financial account showed net outflow of USD 2,119 million, explained by the net acquisition of financial assets for USD 2,791 million, and net issuance of liabilities of USD 4,910 million. The sectors that have explained these outflows have been Central Bank for USD 1,283 million, offset by the net income of the Deposit-taking companies or USD 1,304 million, Government for USD 397 million and Other sectors for USD 1,701 million. The international reserves increased by USD 1,283 million during the second quarter of 2022.

In local financial markets, the Private Badlar rate in Pesos ranged from 34.13% to 50.63% in the period from July 2021 to June 2022, averaging 38.06% in June 2022 compared to 32.56% in June 2021. As of June 30, 2022, the seller exchange rate quoted by Banco de la Nación Argentina was ARS 125.2300 pesos per USD 1.00. As of June 30, 2022, Argentina’s country risk increased by 832 basis points in year-on-year terms. The debt premium paid by Argentina was 2,428 basis points in June 2022, compared to 357 basis points paid by Brazil and 473 basis points paid by Mexico.

As of October 21, 2022, the Private Badlar rate in Pesos peaked at 69.125%. As of October 24, 2022, the seller exchange rate quoted by Banco de la Nación Argentina was of ARS 154.7400 pesos per USD 1.00. As of October 21, 2022, Argentina’s country risk increased by 993 basis points in year-on-year terms. The debt premium paid by Argentina was at 2,646 basis points as of October 13, 2022, compared to 267 basis points paid by Brazil and 448 basis points paid by Mexico as of that same date.

Likewise, in the national and international framework described above, the Company periodically analyzes alternatives to appreciate its shares value. In that sense, the Board of Directors of the Company will continue focusing on the evaluation of financial, economic and / or corporate tools that allow the Company to improve its position in the market in which it operates and have the necessary liquidity to meet its obligations. Within the framework of this analysis, the indicated tools may be linked to corporate reorganization processes (merger, spin-off or a combination of both), disposal of assets in public and / or private form that may include real estate as well as negotiable securities owned by the Company, incorporation of shareholders through capital increases through the public offering of shares to attract new capital, repurchase of shares and instruments similar to those described that are useful to the proposed objectives.

Evolution of Shopping Malls in Argentina

In August 2022, the Consumer Confidence Index (CCI) showed a 6.6% increase compared to July 2022, and a 6.8% decrease compared to August 2021. Shopping mall sales increased 266,9% in the fiscal 2022 compared to fiscal 2021. Accumulated sales for the first six months, represent a 185.7% in current terms and 70.9% increase in real terms as compared to the same period of 2021.

Evolution of Office Properties in Argentina

The corporate activity carried out remotely or virtual work that characterized this stage of confinement by COVID19 brought with it a combination of lower demand, increased vacancies, and a slight decrease in the rental prices of category A + and A office buildings in Buenos Aires.

According to Colliers, the second quarter of 2022 closes with a vacancy in the order of 18.8% regarding the premium market of the City of Buenos Aires, slightly decreasing when compared to the previous quarter. Rental prices did not undergo major changes during the second quarter of the year 2022. Category A+ properties have an average price of 24.4 USD/sqm and class A properties of 19.3 USD/sqm. Regarding the average price per submarket, Catalinas and Norte CABA reflect the highest with records of 27.9 USD/sqm and 26.6 USD/sqm respectively.

Evolution of the Hotel industry in Argentina

According to the Hotel Vacancy Survey (EOH) prepared by INDEC, in June 2022, overnight stays at hotel and para-hotel establishments were estimated at 2.87 million, 355.8% more than the same month the previous year. Overnight stays by resident and nonresident travelers increased by 295.4% and 3,135.9%, respectively. Total travelers who stayed at hotels during June 2022 were 1.28 million, a 346.7% increase compared to the same month the previous year. The number of resident and nonresident travelers increased by 293.3% and 3,121.5%, respectively. The Room Occupancy Rate in June 2022 was 40.7%, compared to a 15.7% of the same month the previous year. Moreover, the Bed Occupancy Rate for the same period was 31.0%, compared to a 10.8% of the same month the previous year.

147

E. Critical Accounting Estimates

Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Control, joint control or significant influence	Judgment relative to the determination that the Group holds an interest in the shares of investees (considering the existence and influence of significant potential voting rights), its right to designate members in the executive management of such companies (usually the Board of directors) based on the investees’ bylaws; the composition and the rights of other shareholders of such investees and their capacity to establish operating and financial policies for investees or to take part in the establishment thereof.	Accounting treatment of investments as subsidiaries (consolidation) or associates (equity method)	Note 2.3
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	Should any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 8 – Investments in associates and joint ventures Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 10.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 21 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Improper recognition of charges / reimbursements of the allowance for bad debt.	Note 15 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: · Discounted projected income by interest rate · Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. · Comparable market multiple (EV/GMV ratio). · Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 14 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions
Qualitative considerations for determining whether or not the replacement of the debt instrument involves significantly different terms	The entire set of characteristics of the exchanged debt instruments, and the economic parameters represented therein: Average lifetime of the exchanged liabilities; Extent of effects of the debt terms (linkage to index; foreign currency; variable interest) on the cash flows from the instruments.	Classification of a debt instrument in a manner whereby it will not reflect the change in the debt terms, which will affect the method of accounting recording.	Note 14 – Financial instruments by category

148

ITEM 6. Directors, Senior Management and Employees

A. Directors and Senior Management

Board of Directors

Under the Argentine General Corporation Law, corporations are managed by a board of directors elected at a shareholders’ meeting. Pursuant to section 59 of the Argentine General Corporation Law, directors have the obligation to perform their duties with the loyalty and the diligence of a prudent business person. Directors are jointly and severally liable to the company, the shareholders and third parties for the improper performance of their duties, for violating the law, the company’s by-laws or regulations, if any, and for any damage caused to these parties by fraud, abuse of authority or negligence, as provided for in Section 274 of the Argentine General Corporation Law. The following concepts are considered an integral part of a director’s duty of loyalty: (i) the prohibition to use the company’s assets and confidential information for private purposes; (ii) the prohibition to take advantage of, or allow others to take advantage, by action or omission, of the company’s business opportunities; (iii) the obligation to exercise their powers only for the purposes set forth by law, the bylaws of the company, or the resolutions of the shareholders or the board of directors; (iv) the obligation to act diligently in the preparation and disclosure of the information provided to the market and to ensure the independence of the company’s external auditors; and (v) the obligation to look after the company’s best interests, so that the actions of the board of directors are not contrary, directly or indirectly, to those interests. In accordance with the Argentine General Corporation Law, specific functions may be assigned to a director by statute or a resolution of the general shareholders’ meeting. In such cases, the attribution of responsibility will be based on individual performance, provided that the assignment of specific functions had been registered in the Public Registry. Under the Argentine General Corporation Law, directors cannot perform activities in competition with the company without the express authorization of the shareholders’ meeting. Directors must inform the board and the supervisory committee about any conflict of interest they may have regarding a proposed transaction, and must abstain from voting on such matter.

A director shall not be responsible for the decisions taken in a board of directors’ meeting as long as he or she states his or her opposition in writing and informs the supervisory committee before any claim arises. Except in the event of a mandatory liquidation or bankruptcy, a director’s performance approved by the company’s shareholders releases such director of any liability for his performance, unless shareholders representing 5% or more of the company’s capital stock object to that approval, or the decision is taken in violation of the applicable laws or the company’s by-laws. The company is entitled to file judicial actions against a director if a majority of the company’s shareholders at a shareholders’ meeting requests that action. If the company doesn’t initiate a legal claim within three (3) months since the shareholders resolution was approved, any shareholder will be entitled to file the claim on the company’s behalf.

Under the Argentine General Corporation Law, the board of directors is in charge of the management of the company and, therefore, makes any and all decisions in connection therewith, as well as those decisions expressly provided for in the Argentine General Corporation Law, our by-laws and other applicable regulations. Furthermore, our board of directors is generally responsible for the execution of the resolutions passed by shareholders’ meetings and for the performance of any particular task expressly delegated by the shareholders. Under the Argentine General Corporation Law, the duties and responsibilities of an alternate director, when acting in the place of a director on a temporary or permanent basis, are the same as those discussed above for directors, and they have no other duties or responsibilities as alternate directors.

Our bylaws provide that our board of directors will consist of a minimum of six and a maximum of fifteen regular directors and the same or fewer number of alternate directors. Our directors are elected for three-fiscal year terms by a majority vote of our shareholders at a general ordinary shareholders’ meeting and may be re-elected indefinitely.

As of the date of this Annual Report, our board of directors is composed of twelve regular directors and four alternate directors. Alternate directors will be summoned to exercise their functions in case of absence, vacancy or death of a regular director or until a new director is appointed.

149

The table below shows the composition of our board or directors:

Name	Date of Birth	Position	Year Last Appointed	Term Expiration	Position Held Since
Eduardo S. Elsztain	01/26/1960	Chairman	2021	2024	1991
Saúl Zang	12/30/1945	Vice-Chairman I	2021	2024	1994
Alejandro G. Elsztain	03/31/1966	Vice-Chairman II	2019	2022	2001
Fernando Adrián Elsztain	01/04/1961	Director	2020	2023	1999
David Williams(*)(1)(2)	12/07/1955	Director	2022	2022	2022
Mauricio E. Wior	10/23/1956	Director	2021	2024	2006
Daniel Ricardo Elsztain	12/22/1972	Director	2020	2023	2007
Maria Julia Bearzi(*)	11/15/1975	Director	2019	2022	2019
Demian Brener(*)	06/20/1990	Director	2019	2022	2019
Oscar Pedro Bergotto(*)	07/19/1943	Director	2019	2022	2019
Liliana L. De Nadai(*)(1)	01/11/1959	Director	2019	2022	2019
Ben Iosef Elsztain	01/16/1997	Director	2021	2024	2021
Gastón Armando Lernoud	06/04/1968	Alternate Director	2020	2023	2014
Enrique Antonini	03/16/1950	Alternate Director	2019	2022	2007
Gabriel A. G. Reznik	11/18/1958	Alternate Director	2019	2022	2019
Iair Elsztain	03/05/1995	Alternate Director	2020	2023	2020

___________________

(*)	Independent directors.
(1)	Ms. Liliana L. De Nadai and Mr. David Williams were appointed by the ordinary and extraordinary general shareholders’ meeting held on December 12, 2019.
(2)	At a board of directors meeting held on January 31, 2022 it was resolved that Mr. David Williams, who was previously an alternate director of the Company appointed at the meeting held of December 12, 2019, would assume the position of director in replacement of Mr. Marcos Oscar Moisés Fischman until the expiration of the mandate, on June 30, 2022.

Our chairman Mr. Eduardo S. Elsztain is the father of Iair Elsztain and Ben Elsztain. Eduardo S. Elsztain is the brother of Vice-Chairman II Alejandro G. Elsztain and of director Daniel R. Elsztain, and a cousin of director Fernando A. Elsztain.

Set forth below are brief descriptions of the relevant background and experience of our directors:

Eduardo S. Elsztain. Mr. Eduardo S. Elsztain has been engaged in the real estate business for more than thirty years. He is the Chairman of the Board of Directors of Cresud S.A.C.I.F. y A., Banco Hipotecario S.A., BrasilAgro Companhia Brasileira de Propriedades Agrícolas Ltda., Austral Gold Ltd. and Consultores Assets Management S.A., among other companies. He also Chairs Fundación IRSA, is a member of the World Economic Forum, the Council of the Americas, the Group of Fifty and the Argentine Business Association (AEA), among others. He is co-founder of Endeavor Argentina and serves as Vice President of the World Jewish Congress.

Saúl Zang. Mr. Zang holds a law degree from the Universidad de Buenos Aires. He is a member of the International Bar Association and of the Interamerican Federation of Lawyers. He is a founding partner of Zang, Bergel & Viñes Law Firm. Mr. Zang is Vice-Chairman of Cresud, Consultores Assets Management S.A. and other companies such as Fibesa S.A. and Chairman at Puerto Retiro S.A. He is also director of Banco Hipotecario S.A., BrasilAgro Companhia Brasileira de Propriedades Agrícolas Ltda., BACS Banco de Crédito & Securitización S.A., Nuevas Fronteras S.A., and Palermo Invest S.A., among other companies.

Alejandro Gustavo Elsztain

. Mr. Alejandro Gustavo Elsztain holds an agricultural engineer degree from the Universidad de Buenos Aires. He completed the Advanced Management Program at Harvard Business School. He is currently serving as Vice-President II and CEO of Cresud, and Vice President of Fibesa S.A., Nuevas Fronteras S.A. and Hoteles Argentinos S.A.U. He is also director of BrasilAgro, a Brazilian agricultural company FYO and Agrofy. He is also the president of Fundación Hillel Argentina.

150

Fernando Adrián Elsztain. Mr. Fernando Adrián Elsztain holds an architecture degree from Universidad de Buenos Aires. He has been engaged in the real estate business as a consultant and as managing officer of a real estate company. He is Chairman of the Board of Directors of Palermo Invest S.A. and Nuevas Fronteras S.A. He is also a director of Cresud, Hoteles Argentinos S.A.U. and Llao Llao Resorts S.A., and an alternate director of Puerto Retiro S.A.

David Williams. Mr. Williams holds a bachelor’s degree in business administration from Tufts University and a law degree from Georgetown University School of Law. He has focused on cross-border corporate transactions in Latin America for more than 25 years. He specializes in mergers and acquisitions, corporate and project finance, restructuring, corporate governance, and other complex corporate matters.

Mauricio Elías Wior. Mr. Wior holds bachelor’s degrees in economics and accounting, and a master’s degree in finance from Tel Aviv University. Mr. Wior is currently a member of the board of directors of Banco Hipotecario S.A. and Chaiman in BHN Vida Sociedad de Inversión S.A. He has held positions at Bellsouth where he was Vice President for Latin America from 1995 to 2004. Mr. Wior was also Chief Executive Officer of Movicom Bellsouth from 1991 to 2004. In addition, he led the operations of various cellular phone companies in Uruguay, Chile, Peru, Ecuador and Venezuela. He was president of the Asociación Latinoamericana de Celulares (ALCACEL), American Chamber of Commerce in Argentina, and the Israeli Argentine Chamber of Commerce. He was director of Instituto para el Desarrollo Empresarial de la Argentina (IDEA), Fundación de Investigaciones Económicas Latinoamericanas (FIEL) and Tzedaka. He was also Director of GCDI S.A. (formerly TGLT S.A.), Chairman of Shufersal Israel and Vice Chairman of Cellcom Israel.

Daniel Ricardo Elsztain

. Mr. Daniel Ricardo Elsztain holds a degree in economic sciences from Universidad Torcuato Di Tella and a master’s degree in business administration from Universidad Austral IAE. He previously held the position of Commercial and Marketing Manager and has been in charge of the real estate investments in New York between 2008 and 2011 and he has been the Company Executive Officer of IRSA Propiedades Comerciales S.A. He is also Chairman of Entertainment Holdings S.A., Entretenimiento Universal S.A., Boulevard Norte S.A. and Ogden Argentina S.A., as well as regular director of Nuevo Puerto Santa Fe S.A., and Panamerican Mall S.A., among other companies.

Maria Julia Bearzi. Ms. Bearzi holds a degree in business administration from the Universidad Nacional de La Plata. She has more than 15 years of experience working for entrepreneurial development at the Endeavor Foundation. She was responsible for institutional development and since 2016 she has been the Executive Director of this organization. In addition, for three years she was an associate professor of entrepreneurial development at the UMET (Universidad Metropolitana para la Educación y el Trabajo). She led the Entrepreneurship by Endeavor program at the Universidad Catolica Argentina and the UTDT Factory entrepreneurial training course at Universidad Torcuato Di Tella.

Demian Brener. Mr. Brener holds a degree in industrial engineering and completed studies at Instituto Tecnologico de Buenos Aires and Lund University, in Sweden. He is the co-founder and CEO of Zeppelin, a company focused on blockchain technology and security. His work has been featured in major publications, including Forbes and Bloomberg. He is also an Endeavor Entrepreneur, advisor to several technology companies, and a member of the Voltaire and Sandbox communities. He has worked in Quasar Ventures, a Venture Capital firm, and Despegar, the leading online travel agency in Latin America.

Oscar Pedro Bergotto. Mr. Bergotto has worked as auditor at the Banco de la Nación Argentina and CFO in Isaac Elsztain e Hijos SCA. Between 1987 and 2008 he worked as treasurer of IRSA Inversiones y Representaciones S.A.

Liliana De Nadai. Ms. De Nadai holds an accounting degree from the Universidad de Buenos Aires. Since 2003, she has advised various companies such as banks, accounting, tax and money laundering prevention consultants. Throughout her career, she has completed several professional practice courses at the Professional Council of Economic Sciences of the City of Buenos Aires.

Ben Iosef Elsztain. Mr. Ben Iosef Elsztain studied social media at ORT Technical School. He founded and was Commercial Manager of Torch Argentina until 2017. He worked for a year in search and selection of entrepreneurs for Endeavor Argentina. He is also a director of Soluciones de Seguridad Vial S.A. as representative of the Israeli Mobileye and a member of the board of directors of Turismocity, one of the largest travel buyers in Latin America.

151

Gastón Armando Lernoud. Mr. Lernoud holds a law degree from Universidad El Salvador and master’s degree in corporate law in Universidad de Palermo. He was a senior associate at Zang, Bergel & Viñes Law Firm until June 2002, when he was legal counsel Cresud as until August 2022.

Enrique Antonini. Mr. Antonini holds a law degree from the School of Law of Universidad de Buenos Aires. He has been a director of Banco Mariva S.A. since 1992 and alternate director of Mariva Bursátil S.A. since 2015. He is a member of the Argentine Banking Lawyers Committee and the International Bar Association. He is alternate director in Cresud.

Gabriel A. G. Reznik. Mr. Reznik holds a civil engineering degree from Universidad de Buenos Aires. He worked for us from 1992 until May 2005, when he resigned. He had previously worked for an independent construction company in Argentina. He is a director of Banco Hipotecario and alternate director in Cresud.

Iair Elsztain. Mr. Elsztain is currently studying for a degree in industrial engineering at the UADE Faculty of Engineering. He previously served as general manager at Iaacob House Hostel, he is currently working on the Israel Startup Experience (ISE) Entrepreneurship Project, which offers travel for young people to Israel. He has also interned at Olive Tree Venture Capital (Tel Aviv), an investment fund dedicated to companies in the technology and healthcare industry.

Employment Contracts with certain members of our Board of Directors

Messrs. Eduardo S. Elsztain, Saúl Zang, Alejandro Gustavo Elsztain and Fernando A. Elsztain are employed by us pursuant to Labor Contract Law No. 20,744. In addition, our alternate director Gastón Armando Lernoud provides services to us under a corporate services agreement. Law No. 20,744 governs certain conditions of the labor relationship, including remuneration, protection of wages, hours of work, holidays, paid leave, maternity protection, and suspension and termination of the contract.

Executive Committee

Pursuant to our bylaws, our day-to-day business is managed by an executive committee consisting of five directors and one alternate director, of which one is the Chairman, one is Vice-Chairman I and one is Vice-Chairman II of our board of directors. The current members of the executive committee are Messrs. Eduardo S. Elsztain, Saúl Zang, Alejandro Elsztain, Daniel Ricardo Elsztain and Fernando Elsztain, as regular members. The executive committee meets as needed by our business, or at the request of one or more of its members.

The executive committee is responsible for the management of our business pursuant to the authority delegated by our board of directors in accordance with applicable law and our bylaws. Pursuant to Section 269 of the Argentine General Corporation Law, the executive committee is only responsible for the management of the day-to-day business. Our bylaws authorize the executive committee to: designate the managers of our Company and establish the duties and compensation of such managers; grant and revoke powers of attorney on behalf of our Company; hire, discipline and fire personnel and determine wages, salaries and compensation of personnel; enter into contracts related to our business; manage our assets; enter into loan agreements for our business and establish liens to secure our obligations; and perform any other acts necessary to manage our day-to-day business.

Senior Management

152

Our board of directors appoints and removes senior management. The following table shows information regarding our senior management appointed by our board of directors:

Name	Date of Birth	Position	Position Held Since
Eduardo S. Elsztain	01/26/1960	Chief Executive Officer	1991
Matías I. Gaivironsky	02/23/1976	Chief Administrative and Financial Officer	2011
Jorge Cruces	11/07/1966	Chief Investment Officer	2020
Arnaldo Jawerbaum	08/13/1966	Chief Operating Officer	2020

For the relevant background and experience of our senior management, see “Board of Directors” in this section. The following is a brief biographical description of our senior managers who are not part of our boards of directors:

Matías Iván Gaivironsky. Mr. Gaivironsky holds a degree in business administration from Universidad de Buenos Aires and a master’s degree in finance from Universidad del CEMA. Since 1997 he has served in various positions at Tarshop, Cresud and the Company, and was appointed Chief Financial Officer in December 2011 and in early 2016 he was appointed as Chief Financial and Administrative Officer.

Jorge Cruces. Mr. Cruces serves as Chief Investment Officer. He has been Manager of Urban Development at Banco Hipotecario S.A. He is a member of the Board of Directors of the Business Chamber of Urban Developers. He is also the Coordinator of the Executive Program of Real Estate Management at Universidad Torcuato Di Tella. Mr. Cruces is an architect and graduated from the Universidad de Belgrano with a master’s degrees in Business Administration, with a focus on Finance and Strategic Administration.

Arnaldo Jawerbaum. Mr. Jawerbaum holds an architecture degree from Universidad de Belgrano. With a career of more than 20 years in the Company, he has served as Commercial Manager from 1997 to 2002, Marketing Manager in Fibesa S.A. from 2003 to 2017 and Chief Investment Officer from 2017 to 2020.

Supervisory Committee

The Argentine General Corporation Law and the Argentine Capital Market Law require any corporation that has made a public offering in Argentina, such as us, to have a supervisory committee (comisión fiscalizadora). Pursuant to the Argentine General Corporation Law, only lawyers and accountants admitted to practice in Argentina or civil partnerships composed of such persons may serve as statutory auditors in an Argentine sociedad anónima.

The primary responsibilities of the supervisory committee are to monitor the management’s compliance with the Argentine General Corporation Law, the applicable bylaws, regulations, if any, and the shareholders’ resolutions, and to perform other functions, including, but not limited to: (i) supervise and inspect the corporate books and records whenever necessary, but at least quarterly; (ii) attend meetings of the directors, executive committee, audit committee and shareholders; (iii) prepare an annual report concerning our financial condition and submit it to our shareholders at the ordinary annual meeting; (iv) provide certain information regarding the company, in response to the request of shareholders representing at least 2% of the capital stock; (v) call an extraordinary shareholders’ meeting when necessary, on its own initiative or at the request of the shareholders, or an ordinary one when our boards of directors fails to do so; (vi) supervise and monitor compliance with laws and regulations, the applicable bylaws and the shareholders’ resolutions; and (vii) investigate written complaints made by shareholders representing at least 2% of the capital stock.

In performing these functions, our supervisory committees do not control our operations or assess the merits of the decisions made by the directors. The duties and responsibilities of an alternate statutory auditor, when acting in the place of a statutory auditor on a temporary or permanent basis, are the same as those discussed above for statutory auditors. They have no other duties or responsibilities as alternate statutory auditors.

Our supervisory committee (comisión fiscalizadora) is responsible for reviewing and supervising our administration and affairs and verifying compliance with our bylaws and resolutions adopted at the shareholders’ meetings. The members of our supervisory committee are appointed at our annual general ordinary shareholders’ meeting for a one-fiscal year term. Our supervisory committee is composed of three regular members and three alternate members and pursuant to Section 294 of the Argentine General Corporation Law must meet at least every three months.

153

The following table shows information about the members of our supervisory committee, who were elected at the annual ordinary shareholders’ meeting held on October 26, 2020.

Name	Date of Birth	Position	Term Expiration	Position Held Since
José D. Abelovich	07/20/1956	Member	2023	1992
Marcelo H. Fuxman	11/30/1955	Member	2023	1992
Noemí I. Cohn	05/20/1959	Member	2023	2010.
Roberto D. Murmis	04/07/1959	Alternate Member	2023	2005
Ariela Levy	08/07/1979	Alternate Member	2023	2020
Paula Sotelo	10/08/1971	Alternate Member	2023	2020

Set forth below are brief descriptions of the relevant background and experience of the members of our supervisory committee:

José Daniel Abelovich. Mr. Abelovich holds an accounting degree from the Universidad de Buenos Aires. He is a founding member and partner of Abelovich, Polano & Asociados S.R.L., a member firm of Nexia International. Formerly, he was manager of Harteneck, López y Cía/Coopers & Lybrand and has served as a senior advisor in Argentina for the United Nations and the World Bank. He is a member of the Supervisory Committees of Cresud S.A.C.I.F. y A., Pampa Energía SA, Hoteles Argentinos S.A.U. and Banco Hipotecario S.A., among other companies.

Marcelo Héctor Fuxman. Mr. Fuxman holds an accounting degree from the Universidad de Buenos Aires. He is a partner of Abelovich, Polano & Asociados S.R.L., a member firm of Nexia International. He is also a member of the Supervisory Committees of Cresud S.A.C.I.F. y A., Inversora Bolívar and Banco Hipotecario, among other companies.

Noemí Ivonne Cohn. Ms. Cohn holds an accounting degree from the Universidad de Buenos Aires. She is a partner at Abelovich, Polano & Asociados S.R.L., a member firm of Nexia International, where she works in the auditor’s department. Ms. Cohn worked in the audit area of Harteneck, Lopez y Cía., Coopers & Lybrand in Argentina and Los Angeles, California. She is also a member of the Supervisory Committees of Cresud S.A.C.I.F. y A., Futuros y Opciones.com S.A. and Pan American Mall S.A., among other companies.

Roberto Daniel Murmis. Mr. Murmis holds accounting and law degrees from the Universidad de Buenos Aires. He is a partner at Abelovich, Polano & Asociados S.R.L., a member firm of Nexia International. He is a member of the Tax Affairs Commission and of the General Council of the Argentine Chamber of Commerce. He formerly served as an advisor to the Secretariat of Public Revenue (Secretaría de Ingresos Públicos) of the Argentine Ministry of Economy. Mr. Murmis also is a member of the supervisory committees of Cresud, among other companies.

Ariela Levy. Ms. Levy holds an accounting degree from the Universidad de Buenos Aires. She is director of the audit department of Abelovich, Polano y Asociados S.R.L. – NEXIA, an accounting firm from Argentina that is a member of Nexia International, a global network of accounting and consulting firms. She is a member of the Supervisory Committees of BACS Administradora de Activos S.A. SGF among others.

Paula Sotelo. Ms. Sotelo holds an accounting degree from Universidad de Buenos Aires. She is Director of the audit department of Abelovich, Polano y Asociados S.R.L. – NEXIA, an accounting firm from Argentina that is a member of Nexia International, a global network of accounting and consulting firms. Previously, she was Senior Manager in the audit area of KPMG Argentina and KPMG New York. She is a member of the Supervisory Committees of Cresud S.A.C.I.F. y A., Futuros y Opciones.Com S.A., FyO Acopio S.A., among others.

154

Internal Control

Management uses the Integrated Framework-Internal Control issued by the Committee of Sponsoring Organizations of the Treadway Commission (“2013 COSO Report”) to assess the effectiveness of internal control over financial reporting.

The 2013 COSO Report sets forth that internal control is a process performed by the Board of Directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of the entity’s objectives in the following categories:

· Effectiveness and efficiency of operations

· Reliability of financial reporting, and

· Compliance with applicable laws and regulations

Based on the above, the company’s internal control system involves all the levels actively involved in exercising control:

· the Board of Directors, by establishing the objectives, principles and values, setting the tone at the top and making the overall assessment of results;

· the management of each area is responsible for the internal control in relation to objectives and activities of the relevant area, i.e. the implementation of policies and procedures to achieve the results of the areas and, therefore, those of the entity as a whole;

· the rest of the personnel plays a role in exercising control, by generating information used in the control system or taking action to ensure control.

Audit Committee

In accordance with currently established by the Capital Market Law No. 26,831 (the “Argentine Capital Market Law”), its regulatory decree 1,023 and the CNV Rules the Board of Directors has an Audit Committee. The main function of this committee is to assist the Board of Directors in: (i) exercising its duty of care, diligence and competence in issues relating to us, specifically as concerns the enforcement of accounting policies, and disclosure of accounting and financial information, (ii) management of our business risk, the management of our internal control systems, (iii) behavior and ethical conduct of the Company’s businesses, (iv) monitoring the sufficiency of our financial statements, (v) our compliance with the laws, (vi) independence and competence of independent auditors, (vii) performance of our internal audit duties both by our Company and the external auditors and (viii) it may render, upon request of the Board of Directors, its opinion on whether the conditions of the related parties’ transactions for relevant amounts may be considered reasonably sufficient under normal and habitual market conditions.

In accordance with the provisions of the Argentine Capital Market Law, the CNV Rules and the applicable rules of the SEC, our Audit Committee is made up by three Board members who qualify as independent directors.

Currently, we have a fully independent Audit Committee composed of Messrs. Oscar Pedro Bergotto, Liliana De Nadai and Maria Julia Bearzi, who is also designated as financial expert in compliance with the requirements of the SEC regulations.

Aspects related to the decision-making processes and internal control system of the Company

The decision-making process is led in the first place by the Executive Committee in exercise of the duties and responsibilities granted to it under the bylaws. As part of its duties, a material aspect of its role is to draft the Company’s strategic plan and annual budget projections, which are submitted to the Board of Directors for review and approval.

The Executive Committee analyzes the objectives and strategies that will be later considered and resolved by the Board of Directors and outlines and defines the main duties and responsibilities of the various management departments.

155

The Company’s internal control system also involves all levels that participate in active control: the Board of Directors establishes the objectives, principles and values, it provides general guidance and assesses global results; the Departments are responsible for compliance with internal policies, procedures and controls to achieve results within their sectors and –of course- achieve the results for the entire organization, and the other personnel members also have a role in exercising control upon generating information used by the control system, or by taking certain actions to ensure control.

In addition, the Company has an Internal Audit Department reporting to the CEO that is responsible for overseeing compliance with internal controls by the departments above mentioned issuing reports that are also presented to the Audit Committee.

B. Compensation

Board of Directors

Under the Argentine General Corporation Law, if the compensation of the members of the Board of Directors and the Supervisory Committee is not established in the bylaws of the Company, it should be determined by the shareholders’ meeting. The maximum amount of total compensation to the members of the Board of Directors and the Supervisory Committee, including compensation for technical or administrative permanent activities, cannot exceed 25% of the earnings of the company. That amount should be limited to 5% when there is no distribution of dividends to shareholders and will be increased in proportion to the distribution up to such limit if all earnings are distributed. For purposes of applying this provision, the reduction in the distribution of dividends derived from reducing the Board of Directors’ and Supervisory Committee’s fees will not be considered.

When one or more directors perform special commissions or technical or administrative activities, and there are no earnings to distribute, or they are reduced, the shareholders meeting may approve compensation in excess of the above mentioned limits. The compensation of our directors for each fiscal year is determined pursuant to the Argentine Corporation Law and taking into consideration whether the directors performed technical or administrative activities and our fiscal year’s results. Once the amounts are determined, they are considered at the shareholders’ meeting.

At our annual ordinary shareholders meeting held on October 21, 2021, the shareholders agreed to pay an aggregate compensation of ARS 100.1 million to all the members of the Board of Directors for the fiscal year ended June 30, 2021 and ARS 723,9 million to all the members of IRSA CP Board of Directors for the fiscal year ended June 30, 2021.

This compensation approved by the annual ordinary shareholders’ meeting pertains to IRSA Inversionesy Representaciones individual board and does not consider inflation adjustment. For accounting purposes, the consolidated compensation for the Boards of Directors accrued during the fiscal year ended June 30, 2021 and 2022 was ARS 1,386 million and ARS 1,316 million, respectively.

Senior Management

We pay our senior management pursuant to a fixed amount, established by taking into consideration their background, capacity and experience and an annual bonus which varies according to their individual performance and the Company’s overall results.

The total aggregate compensation paid to our Senior Management for the fiscal year ended June 30, 2022 was ARS 329.0 million.

Supervisory Committee

The shareholders meeting held on October 21, 2021, approved by majority vote the payment of fees to the Supervisory Committee for the duties performed during the fiscal year ended June 30, 2021 for an aggregate amount of ARS 2.4 million.

Audit Committee

The members of our Audit Committee do not receive compensation in addition to those received for their services as members of our Board of Directors.

156

Compensation Plan for Executive Management

We have a defined contribution plan covering the members of our management team. The Plan became effective on January 1, 2006. Employees may begin participation voluntarily on monthly enrollment dates. Participants may make pre‑tax contributions to the Plan of up to 2.5% of their monthly salary, or the “Base Contributions”. Employee contributions are transferred to a mutual fund. Employee contributions are held in a mutual fund. Individual participants may direct the trustee to invest their accounts in authorized investment alternatives. Participants or their assignees, as the case may be, may have access to 100% of our contributions under the following circumstances:

1.	ordinary retirement in accordance with applicable labor regulations;
2.	total or permanent incapacity or disability; or
3.	death.

In case of resignation or unjustified termination, the beneficiary may redeem the amounts contributed by us only if the participant has participated in the Plan for at least five years. In case that the conditions are not met, the contributed funds remain at the participant’s disposal.

Incentive Program

The Shareholders’ Meetings held on October 31, 2011, October 31, 2012 and October 31, 2013 ratified the resolutions approved thereat as regards the incentive plan for the Company’s executive officers, up to 1% of its shareholders’ equity by allocating the same number of own treasury stock (the “Executive Plan”), and delegated on the Board of Directors the broadest powers to fix the price, term, form, modality, opportunity and other conditions to implement such Executive Plan.

In this sense and in accordance with the new Capital Markets Law, the Company has made the relevant filing with the CNV and pursuant to the comments received from such entity, it has made the relevant amendments to the Executive Plan which, after the CNV had stated to have no further comments, were explained and approved at the Shareholders’ Meeting held on November 14, 2014, where the broadest powers were also delegated to the Board of Directors to implement such Executive Plan.

The Company has developed a medium and long term incentive and retention stock program for its management team and key employees under which share-based contributions (after tax and social contributions) were calculated based on the annual bonus for the years 2011, 2012, 2013 and 2014.

The beneficiaries under the Executive Plan were invited to participate by the Board of Directors and their decision to access the Executive Plan is voluntary.

In the future, the Executive Participants or their successors in interest will have access to 100% of the benefit (IRSA’s shares contributed by the Company) in the following cases:

· if an employee resigns or is dismissed for no cause, he or she will be entitled to the benefit only if 5 years have elapsed from the moment of each contribution;

· retirement;

· total or permanent disability;

· death.

While Executive Participants are part of the program and until the conditions mentioned above are met to receive the shares corresponding to the contributions based on the 2011 to 2013 bonus, Executive Participants will receive the economic rights corresponding to the shares assigned to them. In case that the conditions are not met, the contributed funds remain at the participant’s disposal.

157

As regards the year 2014, the program sets forth an extraordinary reward consisting of freely available stock payable in a single opportunity on a date to be determined by the Company. The date was fixed for June 26, 2015 for payroll employees of IRSA, IRSA CP, PAMSA, Emprendimiento Recoleta S.A., ARCOS and FIBESA S.A. who received IRSA’s shares.

Besides, the Company has decided to grant a bonus in shares to all the personnel with more than two years of seniority and who do not participate in the program described above, which bonus consists of a number of shares equivalent to their compensation for June 2014.

The shares allocated to the Executive Plan by the Company are shares purchased in 2009, which the Shareholders’ Meeting held on October 31, 2011 has specifically decided to allocate to the Executive Program.

On October 30, 2019, the shareholders’ meeting approved the implementation of a new incentive plan for directors, management and employees based on the granting of shares for the long term remuneration of its executives, directors and employees, which accomplish certain requirements in terms of seniority and internal category. In that sense, the shareholders approved a capital increase for up to 1% of the capital stock at the time of the execution of the plan. As of the date of this Annual Report, the incentive plan was not executed and thus, no shares were issued or allocated to it.

C. Board Practices

For information about the date of expiration of the current term of office and the period during which each director has served in such office see “Item 6. Directors, Senior Management and employees – A. Directors and Senior Management.”

Benefits upon Termination of Employment

There are no contracts providing for benefits to Directors upon termination of employment, other than those described under the following sections: (i) ITEM 6: Directors, Senior Management and Employees – B. Compensation – Capitalization Plan and (ii) ITEM 6: Directors, Senior Management and Employees – B. Compensation – Incentive Plan for Managers.

D. Employees

As of June 30, 2022, we had 1,401 employees. Our employees of the segments our Shopping Mall, Offices, Sales and Developments and Other business had 651 employees with 260 represented by the Union of Commerce Employees (Sindicato de Empleados de Comercio). Our Hotels segment had 750 employees, with 638 represented by the Tourism, Hotel and Gastronomic Workers Union (Unión de Trabajadores del Turismo, Hoteleros y Gastronómicos de la República Argentina, UTHGRA).

	Year ended on June 30,
	2022		2021		2020
Shopping Malls, Offices, Sales and Developments and Other businesses (1)		651		629		807
Hotels (2)		750		652		701
Total		1,401		1,281		1,508

______________

(1)	Includes We are Appa S.A.
(2)	Includes Hotel Intercontinental, Libertador Hotel and Llao Llao.

158

E. Share Ownership

The following table sets forth the amount and percentage of our common shares beneficially owned by our directors, senior managers and members of the supervisory committee as of June 30, 2022.

		Share ownership
Name	Position	Number of Shares		Percentage			Number of Warrants (2)		Percentage fully diluted
Directors
Eduardo S. Elsztain (1)	Chairman		451,774,511		55.7	%		50,512,505		56.4	%
Saúl Zang	Vice-Chairman I		1,428,237		0.2	%		68,795		0.2	%
Alejandro G. Elsztain	Vice- Chairman II		7,931,612		1.0	%		315,107		1.0	%
Fernando A. Elsztain	Regular Director		—		—			—		—
David Williams	Regular Director		—		—			—		—
Mauricio E. Wior	Regular Director		—		—			—		—
Daniel R. Elsztain	Regular Director		333,280		0.0	%		—		0.0	%
Oscar Pedro Bergotto	Regular Director		—		—			—		—
Damian Brener	Regular Director		—		—			—		—
María Julia Bearzi	Regular Director		—		—			—		—
Liliana De Nadai	Regular Director		—		—			—		—
Ben Elsztain	Regular Director		—		—			—		—
Gaston A. Lernoud	Alternate Director		31,546		0.0	%		27,778		0.0	%
Enrique Antonini	Alternate Director		—		—			—		—
Gabriel A. G. Reznik	Alternate Director		—		—			—		—
Iair Elsztain	Alternate Director		1,114		0.0	%		—		0.0	%
Senior Management
Matías I. Gaivironsky	Chief Financial and Administrative Officer		192,562		0.0	%		130,558		0.0	%
Jorge Cruces	Chief Investment Officer		—		—			—		—
Arnaldo Jawerbaum	Chief Operating Officer		—		—			—		—
Supervisory Committee
José D. Abelovich	Member		—		—			—		—
Marcelo H. Fuxman	Member		—		—			—		—
Noemí I. Cohn	Member		—		—			—		—
Roberto D. Murmis	Alternate member		—		—			—		—
Paula Sotelo	Alternate member		—		—			—		—
Ariela Levy	Alternate member		—		—			—		—

 _________________

(1)	Includes (i) 431,737,584 common shares beneficially owned by Cresud and ii) 2,525,762 common shares owned by Helmir (iii) 8,932,830 common shares owned by Consultores Venture Capital Uruguay S.A., iv) 1,263,190 common shares owned by Consultores Asset Management S.A. and v) 7,315,145 common shares directly owned by Mr. Eduardo Elsztain.
(2)	In May 2021, 80 million options were issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares. As of June 30, 2022, the warrants outstanding common was 79,955,122 warrants outstanding.

159

Option Ownership

No options to purchase common shares have been granted to our Directors, Senior Managers, members of the Supervisory Committee, or Audit Committee.

Employee Participation in our share Capital

There are no arrangements for involving our employees in our capital stock or related to the issuance of options, common shares or securities, other than those described under the following sections: (i) Item 6 – B. Compensation – Capitalization Plan and (ii) Item 6 – B. Compensation –Incentive Program.

ITEM 7. Major Shareholders and Related Party Transactions

A. Major Shareholders

Information about Major Shareholders

Share Ownership

The following table sets forth information regarding ownership of our capital stock by each person known to us to own beneficially at least 5% of our common shares and all our directors and officers as a group.

	Share Ownership as of June 30, 2022
Shareholder	Number of Shares		Percentage (2)			Number of Warrants		Percentage fully diluted
Cresud (1)		434,263,346		53.6	%		49,644,626		54.3	%
Directors and officers		27,429,516		3.4	%		1,410,117		3.2	%
ANSES		42,920,735		5.3	%		3,781,213		5.2	%
683 Capital Management (3)		48,879,150		6.0	%		1,695,800		5.7	%
Others (less than 5%)		257,386,806		31.7	%		23,423,366		31.6	%
Total		810,879,553		100.0	%		79,955,122		100.0	%

 _______________

(1)	Eduardo S. Elsztain is the beneficial owner of 216,884,083 common shares of Cresud, representing 36.6% of its total share capital, which include (i) 93,119,671 common shares beneficially owned by IFISA, 1,100 common shares owned by Consultores Venture Capital Uruguay S.A. for which Mr. Eduardo S. Elsztain is deemed to be the beneficial owner, (iii) 45,667,750 common shares owned by Agroinvestment S.A. for which Mr. Eduardo S. Elsztain is deemed beneficial owner and (iv) 78,095,562 common shares directly owned by Mr. Eduardo S. Although Mr. Elsztain does not own a majority of the common shares of Cresud, he is its largest shareholder and exercises substantial influence over it. If Mr. Elsztain is considered to be the beneficial owner of Cresud due to his substantial influence over it, he would be the beneficial owner of 55.7% of our common shares by virtue of his investment in Cresud of 431,737,584 common shares, Consultores Venture Capital Uruguay S.A. of 8,932,830 common shares, Consultores Asset Management S.A. of 1,263,190, Helmir S.A. 2,525,762 common shares, and directly owned shares of 7,315,145. Cresud is a leading Argentine producer of basic agricultural products. Cresud’s common shares began trading in the BYMA on December 12, 1960, under the trading symbol “CRES” and on March 1997 its GDSs began trading in the Nasdaq under the trading symbol “CRESY.”
(2)	As of June 30, 2022, the number of outstanding common shares was 810,879,553 and 79,955,122 warrants outstanding. As of June 30, 2022, the company owns 5,749,704 treasury shares.
(3)	Ownership in IRSA according to the Form filed with the SEC.

160

Changes in Share Ownership

Shareholder (3)	June 30, 2022		June 30, 2021		June 30, 2020		June 30, 2019		June 30, 2018
	%
Cresud (1		53.6		62.1		62.1		62.1		63.4
Directors and officers (2)		3.4		1.6		1.4		1.5		0.2
ANSES		5.3		4.5		4.5		4.5		4.5
683 Capital Management (4)		6.0		1.8		1.6		1.5		0.8
Others		31.7		30.0		30.4		30.4		31.1
Total		100.0		100.0		100.0		100.0		100.0

 _____________

(1)	Eduardo S. Elsztain is the beneficial owner of 216,884,083 common shares of Cresud, representing 36.6% of its total share capital, which include (i) 93,119,671 common shares beneficially owned by IFISA, 1,100 common shares owned by Consultores Venture Capital Uruguay S.A. for which Mr. Eduardo S. Elsztain is deemed to be the beneficial owner, (iii) 45,667,750 common shares owned by Agroinvestment S.A. for which Mr. Eduardo S. Elsztain is deemed beneficial owner and (iv) 78,095,562 common shares directly owned by Mr. Eduardo S. Although Mr. Elsztain does not own a majority of the common shares of Cresud, he is its largest shareholder and exercises substantial influence over it. If Mr. Elsztain is considered to be the beneficial owner of Cresud due to his substantial influence over it, he would be the beneficial owner of 55.7% of our common shares by virtue of his investment in Cresud of 431,737,584 common shares, Consultores Venture Capital Uruguay S.A. of 8,932,830 common shares, Consultores Asset Management S.A. of 1,263,190, Helmir S.A. 2,525,762 common shares, and directly owned shares of 7,315,145.
(2)	Includes only direct ownership of our directors and senior management.
(3)	As of June 30, 2022, the number of outstanding common shares was 810,879,553 and 79,955,122 warrants outstanding. As of June 30, 2022, the company owns 5,749,704 treasury shares.
(4)	Ownership in IRSA according to the Form filed with the SEC.

Differences in Voting Rights

Our major shareholders do not have different voting rights.

Arrangements for change in control

We are not aware of any arrangements that may, when in force, result in a change in control.

Securities held in the host country

As of June 30, 2022, our total issued capital stock outstanding consisted of 810,879,553 common shares. As of June 30, 2022, there were approximately 30,409,672 Global Depositary Shares (representing 304,096,720 of our common shares, or 37.5% of all or our outstanding common shares) held in the United States by approximately 43 registered holders.

Offer and Listing Details

The following summary provides information concerning our share capital.

Stock Exchanges in which our securities are listed

Our common shares are listed in the BYMA and our GDSs in the NYSE.

The following description of the material terms of our capital stock is subject to our certificate of incorporation and bylaws, which are included as exhibits to this Form 20-F, and the provisions of applicable Argentine Law.

As of that date of this Annual Report: (1) we had no other shares of any class or series issued and outstanding; and (2) there are no outstanding convertible notes to acquire our shares. Our common shares have one vote per share. All outstanding shares are validly issued, fully paid and non-assessable. As of June 30, 2022, there were approximately 9,077 holders of our common shares.

161

Price history of our stock in the BYMA and NYSE

Our common shares are traded in Argentina on the BYMA, under the trading symbol “IRSA.” Since 1994, our GDSs, each presenting 10 common shares, have been listed in the NYSE under the trading symbol “IRS.” The Bank of New York Mellon is the depositary with respect to the GDSs.

B. Related Party Transactions

A related party transaction is any transaction entered into directly or indirectly by us or any of our subsidiaries that is material based on the value of the transaction to: (a) us or any director, officer or member of our management or shareholders; (b) any entity in which any person described in clause (a) is interested; or (c) any person who is connected or related to any person described in clause (a).

Offices and Shopping Mall Leases

Cresud rents office space for its executive offices located at the Della Paolera tower at Della Paolera 261, floor 9th, City of Buenos Aires, Argentine which IRSA CP has owned. The offices of Eduardo S. Elsztain, the Chairman of our Board of Directors and our controlling shareholder, are located at Bolivar 108, City of Buenos Aires, Argentina. This property has been rented to a company controlled by family members of Mr. Elsztain and to a company controlled by Fernando A. Elsztain, one of our directors and the cousin of Mr. Eduardo S. Elsztain, and members of his family.

In addition, Cresud, BACS Banco de Crédito y Securitización S.A. (“BACS”), BHN Sociedad de Inversión S.A., BHN Seguros Generales S.A. and BHN Vida S.A. rents offices owned by us in different buildings.

Furthermore, we also lease various stores, stands, storage space or advertising spaces in our shopping malls to third parties and related parties such as Banco Hipotecario S.A.

Lease agreements entered into with affiliates have included similar provisions and amounts to those included in agreements with unaffiliated third parties.

Agreement for the Exchange of Corporate Services with Cresud

Considering that each of Cresud and us have operations that overlap to a certain extent, our Board of Directors deemed it advisable to implement alternatives designed to reduce certain fixed costs of our combined activities and mitigate their impact on our operating results while seizing and optimizing the individual efficiencies of each of them in the different areas comprising the management of operations.

To such end, on June 30, 2004, we and Cresud entered into a Master Agreement for the Exchange of Corporate Services, or the “Framework Agreement,” which has been amended several times in line with evolving operating requirements. The Framework Agreement had an initial term of 24 months and is renewable automatically for additional 24-month terms, unless terminated by any of the parties upon prior notice.

Annually, a review of the criteria used in the determination of pricing for corporate services, as well as the bases of cost distribution and supporting documentation used in the aforementioned process. The risk management and audit area coordinate the review, which, in turn, periodically delegated the review to an external consultant.

The operations described above allow Cresud and us to keep our strategic and commercial decisions fully independent and confidential, with cost and profit apportionment allocated on the basis of operating efficiency and equity, without any one company benefiting at the expense of the others.

162

Hospitality Services

We and our related parties hire, on certain occasions, hotel services and lease conference rooms for events held at our subsidiaries, Nuevas Fronteras S.A. and Llao Llao Resorts S.A., all on arm’s-length terms and conditions.

Financial and Service Operations

We work with several financial entities in Argentina for operations including, but not limited to, credit, investment, other financial services, purchase and sale of securities and financial derivatives. Such entities include Banco Hipotecario S.A. and its subsidiaries. Furthermore, Banco Hipotecario and BACS usually act as underwriters in capital market transactions we undertake. In addition, we invest from time to time our cash in mutual funds managed by BACS Administradora de Activos S.A. S.G.F.C.I., which is a subsidiary of Banco Hipotecario S.A., among other entities.

Hiring of GCDI S.A. (formerly TGLT S.A.)

We hired GCDI S.A. to carry out the completion work of the resistant reinforced concrete structure of the building called “Manzana 35 Torre 3”, in the City of Buenos Aires owned by us. The work includes the execution of preliminary works, removal of non-structural elements, reinforced concrete structure from the slab on the eleventh floor to the finish and channeling embedded electrical installations, for an estimated amount of ARS 64.7 million (base May 2021, with price adjustment according to variation in the Argentine Chamber of Construction Index), resulting in the best offer that was receive. The Audit Committee concluded that the reported conditions of the operation under treatment are reasonable considering those offered between independent parties, and consequently, it has no observations.

Donations to Fundación IRSA and Fundación Museo de los Niños

Fundación IRSA is a non-profit charity that seeks to support and generate initiatives concerning education, the promotion of corporate social responsibility and the entrepreneurial spirit of young adults. It carries out corporate volunteer programs and fosters donations from our employees. The main members of Fundación IRSA’s Board of Directors are: Eduardo S. Elsztain (President); Saúl Zang (Vice President I); Alejandro Elsztain (Vice President II); Mariana C. de Elsztain (Secretary), Oscar Marcos Barylka (Director) and Marcos Slipakoff (Treasurer). It finances its activities with donations from us, Cresud and other related companies.

On October 31, 1997, we entered into an agreement with Fundación IRSA, whereby 3,800 square meters of the developed area at Abasto Shopping Mall was granted under a gratuitous bailment agreement for a term of 30 years. Subsequently, on October 29, 1999, Fundación IRSA assigned free of cost all the rights of use over such space and its respective obligations to Fundación Museo de los Niños.

On November 29, 2005, we signed another agreement with Fundación Museo de los Niños granting under gratuitous bailment 2,670 square meters of the developed area at Alto Rosario shopping mall for a term of 30 years.

Fundación Museo de los Niños is a non-profit institution created by the founders of Fundación IRSA and its members are the same as those of Fundación IRSA.

Fundación Museo de los Niños has used these spaces to set up Abasto Shopping Mall and Museo de los Niños and Rosario, two interactive learning centers intended for children and adults. The agreements described above establish that the payment of common charges and direct expenses related to the services performed by these spaces must be borne by Fundación Museo de los Niños.

Borrowings

In the ordinary course of our business, we enter into loan agreements or credit facilities with related companies. The loans under these loan agreements and credit facilities accrue interest at prevailing market rates.

163

Purchase of financial assets

We usually invest excess cash in instruments that may include those issued by related companies, acquired at issuance, or from unrelated third parties in secondary market transactions.

Investment in Dolphin Fund Ltd.

On August 31, 2021, Torodur S.A., an Uruguayan company wholly owned by IRSA, entered into a subscription agreement with Dolphin Fund Ltd., an investment fund, constituted under the laws of Bermuda, controlled through equity shares by Tyrus S.A., an Uruguayan company wholly owned by us and whose administrator is Consultores Venture Capital Uruguay S.A., an Uruguayan company indirectly controlled by Mr. Eduardo Elsztain, through the subscription of Class C Participating Shares of face value USD 0.01 without voting rights, with possibility of redemption on the last day of each month with prior notification by the investor, for an amount of USD 1.8 million. The focus of Class C is to invest in a Commodity super cycle.

Legal Services

We receive legal services from ZBV Abogados, a law firm composed of partners who were part of Estudio Zang, Bergel & Viñes, of which Saúl Zang was a founding partner. Mr. Zang is a member of our Board of Directors and those of certain related companies. See “Directors, Senior Management and Employees—Directors and Senior Management—Board of Directors.”

Purchases and sales of properties and hiring or provision of services

In the ordinary course of our business, we may acquire from or sell to our related parties certain real estate properties used for rental purposes or otherwise or contract or provide services from related parties, subject to our Audit Committee’s approval. Our Audit Committee must render an opinion as to whether the terms of these transactions can reasonably be expected to have been obtained by us in a comparable transaction on an arms-length basis with unrelated parties. In addition, if our Audit Committee so requires, valuation reports by independent specialist third parties must be obtained or quotes from other service providers.

Investment in Dolphin Netherlands B.V.

We had invested in Dolphin Netherlands B.V. through our subsidiaries. Dolphin Fund Ltd is an investment fund controlled indirectly by our Chairman, Eduardo S. Elsztain. Dolphin Netherlands B.V. is incorporated in the Netherlands and is a subsidiary of Dolphin Fund Ltd.). Such investment was made in order to carry out our investment in IDBD. We agreed with Dolphin Netherlands B.V. not to pay any fee to Dolphin Fund Ltd related to this investment.

Loan between Tyrus S.A. and Yad Leviim Ltd.

On April 1, 2022, an extension was reported for a period of 2 years, of a loan granted by our subsidiary Tyrus S.A. to Yad Leviim Ltd., in a principal amount of USD 16.2 million at a rate interest of 5% per year. Yad Leviim Ltd. is a company controlled by Eduardo Elsztain.

For further information regarding related party transactions see Note 30 to our Audited Financial Statements.

C. Interests of Experts and Counsel

This section is not applicable

164

ITEM 8. Financial Information

A. Consolidated Statements and Other Financial Information

See Item 18 for our Audited Consolidated Financial Statements.

Legal or Arbitration Proceedings

Legal Proceedings

Set forth below is a description of certain material legal proceedings to which we are a party. The company is not a party to any significant litigation or arbitration and we are not aware of any significant litigation or claim that is pending or imminent against the company outside of what is described below.

Puerto Retiro

On November 18, 1997, in connection with our acquisition of our subsidiary Inversora Bolívar, we indirectly acquired 35.2% of the capital stock of Puerto Retiro. Inversora Bolívar had purchased such common shares of Puerto Retiro from Redona Investments Ltd. N.V. in 1996. In 1999, we, through Inversora Bolívar, increased our interest in Puerto Retiro to 50.0% of its capital stock. On April 18, 2000, Puerto Retiro was served notice of a filing made by the Argentine government, through the Ministry of Defense, seeking to extend the bankruptcy of Indarsa to the Company. Upon filing of the complaint, the bankruptcy court issued an order restraining the ability of Puerto Retiro to dispose of, in any manner, the real property it had purchased in 1993 from Tandanor. Puerto Retiro appealed the restraining order which was confirmed by the Court on December 14, 2000.

In 1991, Indarsa had purchased 90% of Tandanor, a former government-owned company, which owned a piece of land near Puerto Madero of approximately 8 hectares, divided into two parcels: Planta 1 and 2. After the purchase of Tandanor by Indarsa, in June 1993, Tandanor sold “Planta 1” to Puerto Retiro, for a sum of USD18 million pursuant to a valuation performed by J.L. Ramos, a well-known real estate brokerage firm in Argentina. Indarsa failed to pay to the Argentine government the price for its purchase of the stock of Tandanor, and as a result the Ministry of Defense requested the bankruptcy of Indarsa. Since the only asset of Indarsa was its holding in Tandanor, the Argentine government is seeking to extend Indarsa’s bankruptcy to other companies or individuals which, according to its view, acted as a single economic group. In particular, the Argentine government has requested the extension of Indarsa’s bankruptcy to Puerto Retiro which acquired Planta 1 from Tandanor.

The deadline for producing evidence in relation to these legal proceedings has expired. The parties have submitted their closing arguments and are awaiting a final judgment. However, the judge has delayed his decision until a final judgment in the criminal proceedings against the former Defense Minister and former directors of Indarsa has been delivered. It should be noticed, regarding the abovementioned criminal procedure, that on February 23, 2011 it was resolved to declare its expiration, and to dismiss certain defendants. However, this resolution is not final because it was appealed. We cannot give you any assurance that we will prevail in this proceeding, and if the plaintiff’s claim is upheld by the courts, all of the assets of Puerto Retiro would likely be used to pay Indarsa’s debts and our investment in Puerto Retiro, would be lost. As of June 30, 2022, we had not established any reserve with respect of this contingency.

Currently Puerto Retiro S.A., has a plot of 8.3 hectares, which is affected by a zoning regulation defined as U.P. that prevents the property from being used for any purpose other than strictly port activities. The Company was involved in a bankruptcy extension lawsuit initiated by the Argentine government, to which the Board is totally alien.

In the context of the criminal case, the complaining party denounced Puerto Retiro S.A.’s failure to comply with the precautionary measure decreed at criminal headquarters consisting in the prohibition of innovating and contracting with respect to the property subject to civil action. Following this complaint, Tribunal Oral Federal No. 5 formed an incident and ordered and executed the closure of the property where the location contracts (a helipad and a mooring) were being fulfilled in order to enforce the above measure. As a result of this circumstance, it was learned that the proceedings were referred to the Criminal Court for the assignment of a court to investigate the possible commission of a crime of disobedience. As of the date of issuance of these financial statements, there have been no further developments in this case.

165

In the face of the evolution of the legal cases affecting it and based on the reports of its legal advisors, the Directorate of Puerto Retiro has decided to record in the 2019 financial year a forecast equivalent to 100% of the book value of its investment property, without prejudice that it will reverse in case of finally obtaining a favorable judgment in the actions brought.

Tandanor has filed a civil action against Puerto Retiro and the people charged in the referred criminal case looking forward to be reimbursed from all the losses which have arisen upon the fraud committed. On March 7, 2015 Puerto Retiro responded filing certain preliminary objections, such as limitation, lack of information to respond the lawsuit, lack of legitimacy (active and passive). On July 12, 2016 Puerto Retiro was legally notified of the decision adopted by the Tribunal Oral Federal No. 5 related to the preliminary objections above mentioned. Two of them were rejected –lack of information and lack of legitimacy (passive). We filed an appeal with regard to this decision, which was rejected. The other two objections would be considered in the verdict.

On September 7, 2018, Court read its verdict, according to which the preliminary objection of limitation filed by Puerto Retiro was successful. Nevertheless, in the criminal procedure –where Puerto Retiro is not a party- Court ordered the seizure confiscation (“decomiso”) of the land known as “Planta 1.” This Court’s verdict is not final, as it is subject to further appeals Puerto Retiro filed an appeal with regard to the confiscation of Planta I. This appeal has not yet been decided.

On December 27, 2018, an action for annulment was filed against the judgment that ordered the confiscation of the property named “Planta 1.” On March 1, 2019 we were notified of the “in limine” rejection of the action for annulment filed. Subsequently, on March 8, 2019, a motion for restitution was filed against said resolution. On March 19, 2019, we were notified of the Court’s decision that rejected the replacement and declared the appeal filed in a subsidiary inadmissible. On March 22, 2019, a complaint was filed for appeal denied (before the Federal Criminal Cassation Chamber), the caul was granted, which is why the appeal filed is currently pending. In that sense, in April the appeal was maintained and subsequently, its foundations were expanded.

On February 21, 2020, an electronic document was received from the Federal Court of Criminal notifying the decision rejecting the appeals brought by Puerto Retiro against the verdict of the Federal Oral Court 5 that provided for the confiscation of the property Plant I and the distribution of costs in the order caused as regards the exception for the limitation of civil action brought by Puerto Retiro to which the Oral Court took place. Against that decision of appeal, Puerto Retiro was brought in a timely and form of Federal Extraordinary Appeal. In addition, Federal Criminal Cassation Chamber upheld the above limitation period by rejecting, to that effect, the appeal brought by the National State and Tandanor. Notwithstanding the fact that it is not possible to ensure with certainty the result of the denied federal extraordinary appeal, filed before the CSJN by Tandanor and the National State, against the Cassation decision that resolved to confirm the statute of limitations exception of the related civil action With the claim for damages filed by both subjects against Puerto Retiro S.A., it is estimated that the possibility that the aforementioned complaint resource prospers and, consequently, the CSJN revokes the exception of prescription of the civil action for damages, it is low.

In the face of the evolution of the legal cases affecting it and based on the reports of its legal advisors, the Management of Puerto Retiro has decided to record a impairment equivalent to 100% of the book value of its investment property, without prejudice to the reversal of the same in the event that a favorable judgment is obtained in the actions brought.

166

Arcos del Gourmet

IRSA has been named as a party in a case titled “Federación de Comercio e Industria de la Ciudad de Buenos Aires y Otros c/ Gobierno de la Ciudad Autónoma de Buenos Aires s/ Amparo.” The plaintiff filed a petition for injunctive relief against the local government claiming that the Arcos del Gourmet project lacked the necessary environmental approvals and did not meet zoning requirements. On August 29, 2014, the lower court rendered a decision dismissing the case. This resolution was appealed but affirmed in December 2014. Therefore, on December 18, 2014, the “Arcos” Project was opened to the public, and currently is operating normally. Notwithstanding, the plaintiff appealed before the Superior Court of the City of Buenos Aires to request the review of the case based on constitutional matters allegedly at issue. On July 4, 2017, the Superior Court ordered the Appeals Court to review the case on certain grounds. The Appeals Court rendered a new sentence on February 14, 2019. This new sentence rules that Arcos del Gourmet has to yield a portion of land to build a green park. Arcos del Gourmet filed an appeal before the Superior Court. This appeal has been decided and Arcos del Gourmet filed an appeal complaint for appeal denied. On 04/22/2022, the Company was notified by certificate of the ruling issued by the Superior Court of Justice of the CABA (TSJ) in the records: “Arcos del Gourmet SA s/ complaint for appeal of unconstitutionality denied in the Federation of Commerce and Industry of the City of Buenos Aires (FECOBA) and others c/GCBA and others s/ amparo” (QTS 16501/2019-0) by which it was resolved to partially uphold the appeal of unconstitutionality filed by Arcos del Gourmet S.A. against the judgment issued by the Chamber of Appeals in the CAyTRC Chamber III (the “Chamber”) issued on 02/14/2019 action 11587856/2018. Through its ruling, the TSJ ruled that the demolition of the works carried out on the Property where the “Arcos District” Shopping Center is currently located, as the Chamber had ordered, is not appropriate, and instead the Company must allocate to the City a portion of land, in accordance with the provisions of article 3.1.2 of the CPU, to be reserved for public use and utility, with unrestricted access and destined ‘specially and preferably to the generation of new landscaped green spaces. This area may come totally or partially from the property in which the shopping center is in operation or, where appropriate, from land surrounding the area. In the event that the company cannot allocate the entire fraction of land, it must pay, after carrying out an expert opinion, the sum of money necessary for the Administration to proceed with the search for a property with the aim of complying with the purpose established during the term of the concession contract. Our legal advisors are analyzing the procedural steps to follow.

On May 18, 2015, we were notified that the AABE, revoked the concession agreement granted to IRSA’s subsidiary Arcos del Gourmet S.A., through Resolution No. 170/2014. On June 2, 2015, IRSA’s former subsidiary, IRSA CP, filed before the AABE a request to declare the notification void, as certain formal proceedings required under Argentine law were not complied with by the AABE. Furthermore, Arcos del Gourmet S.A. filed an administrative appeal requesting the dismissal of the revocation of the concession agreement and a lawsuit seeking to declare Resolution No. 170/2014 void. Recently, a judgment of first instance was issued, rejecting the legal action promoted by Arcos del Gourmet S.A. For this reason Arcos del Gourmet S.A. filed an appeal that has not been resolved as of the date of this Annual Report. Arcos del Gourmet S.A. also filed a lawsuit in order to judicially pay the monthly rental fees of the property. As of the date of this Annual Report, the “Distrito Arcos” shopping mall continues to operate normally.

In addition, we note that AABE filed an eviction proceeding against Arcos del Gourmet. On May 11, 2022, the Court of First Instance decreed the eviction of Arcos del Gourmet S.A. from the property where the shopping mall operates and, in turn, ordered Playas Ferroviarias to take steps to guarantee the continuity of the commercial activities of the occupants (tenants). This resolution has been appealed and is currently in the process of sentencing.

Caballito

On December 23, 2019, IRSA CP, IRSA’s former subsidiary, transferred to an unrelated third-party Parcel 1 of the land reserve located at Av. Avellaneda y Olegario Andrade 367 in the neighborhood of Caballito in the City of Buenos Aires.

The consideration is guaranteed by a mortgage on plot 1 and building 1 and the buyer has the option to acquire plot 2 of the same property until August 31, 2020 and plots 3 and 4 until March 31, 2021, subject to certain conditions precedent. For further information, see “Information on the Issuer – Description of the Business – Caballito Land-Ciudad de Buenos Aires”. On July 20, 2020 IRSA CP, IRSA’s former subsidiary, was notified of the filing of a protection action (amparo) that is processed before the Administrative and Tax Litigation Jurisdiction of the City of Buenos Aires, Court 24, Secretariat 47 where the plaintiff has requested the nullity of: 1) Administrative act that grants the certificate of environmental aptitude and 2) Administrative act that registered the plans of the work called –Caballito Chico– located on Avellaneda 1400, City of Buenos Aires, because it is understood that they contain defects in their essential elements, for being violative of the provisions contained in the Urban Planning Code and of the complementary regulations in force at the time of initiating the process and for causing irreparable damage to the environment and rights of collective incidence. The transfer was answered by the precautionary measure and by the substantive action. The transfer of said presentation was answered. On August 13, 2020, the following precautionary measure was decreed that orders: a) the suspension of the effects of the administrative acts granted by the CCA (DI-2018-1865-DGEVA and that registered the plans and; b) the stoppage of construction work carried out on the property located at Avellaneda 1400, City of Buenos Aires. The issuance of said precautionary measure was appealed. On October 1, 2020, the Court of Appeal confirmed the precautionary measure. The Government of the City of Buenos Aires appealed the measure by filing a Constitutional Challenge that was denied filling a complaint appeal, in October 2021. Regarding the main proceeding, it is in process of trial. For more information see “Legal Proceedings –Terreno Caballito – Ciudad de Buenos Aires”. As of the date hereof, the file is in the evidentiary stage.

167

Ex Ciudad Deportiva Boca - Convenio Urbanístico.

On October 29, 2021, a notification was received in relation to a collective legal protection action, requesting the convening of a public hearing prescribed by art. 63 of the Constitution of the City of Buenos Aires and the suspension of the processing of Bill 1831 - J 2021 (Trial Court of Administrative and Tax Law No. 10, Sec. 19 – Cause “Civil Association Observatory of the Right to City and others against GCBA and others on Protection Action (Amparo) – Others” - EXP J-01-00166469-3/2021-0). The Company proceeded to answer the lawsuit on November 12, 2021, requesting its rejection and on March 10, 2022, the court issued a ruling partially upholding the (amparo) legal protection. On March 15, 2022, IRSA as well as the Government of the City of Buenos Aires -codefendant in the case- appealed the ruling. On March 17, 2022, the court granted the appeals with suspensive effect of the contested sentence (in accordance with the provisions of Law No. 2145). As of the date of this Annual Report, the issue is to be resolved by Room IV of the “Contentious-Administrative, Tax and Consumer Relations” Chamber (Room IV).

Operations Center in Israel 

As of the date of this Annual Report, we no longer own any capital stock of IDBD while we have an investment in DIC that amounts to 2,062,000 of shares.

Legal proceedings relating to IDBD liquidation and the receivership over DIC shares

On September 25, 2020 the Court passed a judgment pursuant to which an order was awarded for the opening of proceedings against IDBD as well as an order for its liquidation. Pursuant to the judgment, a trustee was appointed to IDBD, and thereafter the Court appointed receivers for the DIC shares constituting approximately 82% of the issued share capital of DIC. As part of the receivership process, a group of purchasers led by Mega Or Ltd., purchased approx. 82% of DIC issued share capital (after such purchase was approved by the Court on November 20, 2020). Therefore, on November 23, 2020 all officers that were appointed by Dolphin BV resigned from their positions in DIC and its subsidiaries.

Litigation filed by IDBD against Dolphin Netherlands B.V. and IRSA

On September 21, 2020, a claim was filed by IDBD against Dolphin Netherlands B.V. (“Dolphin BV”) and IRSA to the District Court in Tel- Aviv Jaffa (civil case no. 29694-09-20). The amount claimed by IDBD is NIS 70 million, claiming that Dolphin BV and IRSA breached a purported legally binding commitment to transfer to IDBD an installment of NIS 70 million on September 2, 2020.

On December 24, 2020, and upon the insolvency’s court approval, IDBD’s trustee filed a motion to strike the claim, while keeping the right, as IDBD’s trustee, to file a new claim, inter alia,in the same matter, after conducting an inquiry concerning the reasons for IDBD’s insolvency.

On December 24, 2020, the court issued a judgment to strike the claim as requested.

On October 31, 2021, the Insolvency Commissioner notified that he did not oppose the motion, and on that same date, the court affirmed the motion initiated by the trustee of IDBD.

On December 26, 2021 IDBD filed the lawsuit against Dolphin BV and IRSA for the sum of NIS 140 million.

168

We have not been formally notified of the lawsuit and, with the information currently available, the Management of the Company and its legal advisors consider that there are legal arguments for an eventual defense.

Class action against IDBD, Dolphin IL and Eduardo Elsztain regarding the sale of DIC

On October 3, 2018, a motion was initiated by an applicant alleging to hold shares in DIC, against IDBD, Dolphin IL, and Mr. Eduardo Elsztain seeking an injunction to annul the sale of shares of DIC to Dolphin and to appoint a trustee to hold those shares while the action is pending. The applicant claims that the sale was not in compliance with the provisions of the Concentration Law and the applicant is seeking an order for payment of monetary damages to the shareholders of DIC of between NIS 58 and 73 million. In addition, and following its liquidation process, IDBD was removed from the claim by the applicant.

Since the motion was initiated, and as of the date of this Annual Report, the following milestones of the proceedings have taken place:

On March 3, 2019, a response to the motion initiated by the applicant was submitted by the respondents.

On March 4, 2019, the court decided to grant the Attorney General a 45 day in which to decide whether he would be taking part of the proceedings.

On June 26, 2019, the Attorney General’s stance was submitted, announcing that he will be taking part in the proceedings. In addition, the Attorney General noted that due to the threshold arguments awaiting a ruling from the court, at this stage, he will not be his position on the proceedings.

On July 2, 2019, the court ruled that, in the event that the Attorney General chooses to submit his position to the court, he must do so in writing and no later than August 8, 2019.

On July 17, 2019, the applicant submitted an evidential disclosure request.

On September 23, 2019, the respondents submitted a motion deemed “resistance to the evidential disclosure request”, and on December 15, 2019, the applicant submitted his response to the Respondent’s motion.

On December 31, 2019, the court decided that, in order to rule on the evidential disclosure request, it must first rule on existing threshold arguments request. Therefore, the court set a schedule in which the Parties must submit their stance regarding the threshold arguments.

On January 20, 2020, the respondents submitted a notice regarding their threshold arguments, and on February 10, 2020, the applicant submitted his stance regarding the respondents notice.

On March 18, 2020, the Attorney General submitted a notice pursuant to which he informed that he will not be taking a stance regarding the threshold arguments.

On May 12, 2020, the respondents submitted their response to the applicant’s response to their notice regarding the threshold arguments.

On August 10, 2020, the court held a hearing with the Parties regarding the threshold arguments.

On November 30, 2020, the court ruled that the motion should not be dismissed, and that all claims of the Parties are maintained. In addition, the court further ruled that as long as the controversial matter concerns the violation of the Concentration Law, the respondents are correct in claiming that the applicant, who holds Second Layer Company shares, is not eligible to file a motion under the Concentration Law.

On January 19, 2021, the applicant filed an amended evidential disclosure request (the “Amended Request”). On February 11, 2021, the respondents submitted a response to the Amended Request denying the applicant's claims, and, on February 18, 2021, the applicant submitted his response. On April 9, 2021, the court denied the Amended Request ruling that the applicant must pay the respondents’ request expenses in the amount of NIS 6,500.

169

On November 4 and 24, 2021, two evidence hearings were held pursuant to cross-examining the expert appointed on behalf of the applicant and the applicant himself.

On May 29, 2022, a third evidence hearing was held on the motion pursuant to which the witnesses, on behalf of the respondents, were cross-examined.

On June 14, 2022, the court approved the settlement agreed by the Parties, pursuant to which the applicant would be submitting his closing arguments no later than November 1, 2022, with the respondents submitting their closing arguments no later than February 28, 2023.

Class action against DIC and Mr. Eduardo Elsztain and other directors of IRSA regarding exit of the DIC’s share from indexes

On October 2, 2018, DIC was served with an action and a motion to approve that action as class action, which had been filed with the District Court of Tel Aviv-Yafo against the DIC, Mr. Eduardo Elsztain, and against additional directors and officers serving in DIC, in connection with the exit of DIC’s share on February 1, 2018 from the TA90 and TA 125 indexes of the TASE, whereon it had been traded on the Tel Aviv Stock Exchange Ltd. up to that date alleging to have held DIC’s shares prior to February 1, 2018 and thereafter. The Court is requested, inter alia, to approve the action as a class action and to charge the respondents with compensating the members of the Company according to the damage caused estimated at approximately NIS 17.6 million.

On April 10, 2021, a preliminary hearing was held on the applicant's request to receive documents of the independent committee of IDBD that was established as part of the centralization transaction. The disclosure of these documents was approved by the court in the past, but the documents were not given to the applicant after a trustee was appointed for IDBD and the documents were not in the control of the respondents (and they could not hand them to the applicant). IDBD's trustee attended the preliminary hearing and claimed that he cannot hand over the documents until his investigation in connection with the centralization transaction is completed.

Therefore, the court ruled that IDBD's trustee shall hand over the documents to the applicant and the respondents by September 2022, assuming that the investigation will be concluded by then. As to the date of this Annual Report, the documents have not been delivered to the applicant.

In addition, and notwithstanding the above, two evidence hearings are scheduled to be held during December 2022.

Derivative claim against DIC, Dolphin IL and certain directors regarding performance of a prohibited distribution

In May 2019, DIC received a claim and a motion to approve it as a derivative claim which had been filed with the District Court of Tel Aviv-Yafo against DIC, Dolphin IL and  directors who hold office in DIC, by a petitioner claiming to hold Series J debentures of DIC on the grounds of performance of a prohibited distribution, with respect to a dividend distribution in cash in the amount of approximately NIS 40 million, and a payment in kind dividend in the amount of approximately NIS 64 million, which was performed by DIC in February 2019, and regarding self-purchases of shares which were performed by DIC (from the date of the resolution regarding the distribution) in the amount of approximately NIS 36 million, in accordance with a purchase plan, which was approved by DIC’s board of directors in January 2019. 

170

In the motion, the Court was requested, inter alia, to declare and to determine that the distribution and the self-purchases did not fulfill the profit test (a test which constitutes a condition for a distribution in accordance with section 302 of the Companies Law, 5759-1999), and that they constitute a prohibited distribution, and to order the respondents to compensate DIC for the damages which it has incurred due to the prohibited distribution, with the damages allegedly caused by the respondents being estimated at a total of NIS 140 million. The Court was also requested to order Dolphin IL to repay to DIC the dividend amount which it received in the distribution, in the amount of NIS 85 million (in accordance with its rate of holding in DIC). In January 2021 the Motion was denied by the Court, and thereafter in March 2021 an appeal was filed by the plaintiff to the Supreme Court, with a hearing scheduled for December 27, 2022.

Dividend Policy

Pursuant to Argentine law, the distribution and payment of dividends to shareholders is allowed only if they result from realized and net profits of the company pursuant to annual financial statements approved by our shareholders. The approval, amount and payment of dividends are subject to the approval by our shareholders at our annual ordinary shareholders’ meeting. The approval of dividends requires the affirmative vote of a majority of the shares entitled to vote at the meeting.

In accordance with Argentine law and our by-laws, net and realized profits for each fiscal year are allocated as follows:

1.	5% to our legal reserve, up to 20% of our adjusted capital stock;
2.	a certain amount determined at a shareholders’ meeting is allocated to compensation of our directors and the members of our Supervisory Committee;
3.	to an optional reserve, a contingency reserve, a new account or for whatever other purpose our shareholders may determine.

According to the CNV Rules, cash dividends must be paid to shareholders within 30 days of the resolution approving their distribution. In the case of stock dividends, the shares must be delivered to shareholders within three months of the annual ordinary shareholders’ meeting that approved them.

The following table sets forth the total and per share amounts paid as dividends on each fully paid‑in share for the fiscal years mentioned. The amounts stated in Pesos correspond to nominal Pesos on their respective dates of payment and refers to our unconsolidated dividends. See “Item 3. Key Information—Local Exchange Market and Exchange Rates.”

Fiscal year	Dividend Paid stated in terms of the measuring unit current as of June, 30, 2021		Dividend per share paid stated in terms of the measuring unit current as of June 30, 2021		Dividend paid stated in terms of the measuring unit current as of the date of the each corresponding Shareholders’ meeting (1)		Dividend per share paid stated in terms of the measuring unit current as of the date of the each corresponding Shareholders’ meeting (1)
	(in millions of ARS)		(ARS)		(in millions of ARS)		(ARS)
2018		9,302.2		161.7014		1,400.0		24.3365
2019 (2)		—		—		—		—
2020 (3)		—		—		—		—
2021 (4)		—		—		—		—
2022		—		—		—		—

 ________________

(1)	The decisions made on the basis of years’ results prior to the application of IAS 29, are not subject to be revised.
(2)	Dividend in kind paid in IRSA CP shares. Dividend per share: 0.01109 shares of IRSA CP per share of IRSA.
(3)	Dividend in kind paid in IRSA CP shares. Dividend per share: 0.004046 shares of IRSA CP per share of IRSA.
(4)	Dividend in kind paid in IRSA CP shares. Dividend per share: 0.002614 shares of IRSA CP per share of IRSA.

171

Central Bank authorization is required for the transfer of profits and/or dividends outside of Argentina. For more information about exchange controls see, “Item 10. Additional Information—D. Exchange Controls.”

B. Significant Changes.

For information about significant changes see, “ITEM 4. Recent Developments”.

ITEM 9. The Offer and Listing

A. Offer and Listing Details

The following summary provides information concerning our share capital.

Stock Exchanges in which our securities are listed

Our common shares are listed in the BYMA and our GDSs in the NYSE.

The following description of the material terms of our capital stock is subject to our certificate of incorporation and bylaws, which are included as exhibits to this Form 20-F, and the provisions of applicable Argentine Law.

On April 12, 2021, the Company announced the launch of its public offering of shares for up to 80 million shares (or its equivalent 8 million GDS) and 80 million warrants to subscribe for new common shares, to registered holders as of April 16, 2021. Each right corresponding to one share (or GDS) allowed its holder to subscribe 0.1382465082 new ordinary shares and receive free of charge an option with the right to subscribe 1 additional ordinary share in the future. The final subscription price for the new shares was ARS 58.35 or USD 0.36 and for the new GDS it was USD 3.60. The new shares, registered, of ARS 1 of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.

On May 6, 2021, having finished the preemptive rights subscription period, the Company’s shareholders have subscribed the amount of 79,144,833 new additional shares, that is 99% of the shares offered, and have requested through the accretion right 15,433,539 additional new shares, for which 855,167 new shares will be issued, completing the total issuance of 80 million new shares (or their equivalent in GDS) offered. Likewise, 80 million options will be issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares.

The exercise price of the warrants is USD 0.432. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year on the business day prior to maturity and on the date of maturity (if dates are business days in the city of New York and in the City of Buenos Aires) until their expiration 5 years from the date of issue. The warrants are available for trading on which are listed on BYMA and NYSE under the tickers IRS2W and IRSWS, respectively.

Finally, the Company received all the funds in the amount of USD 28.8 million and issued the new shares, increasing the capital stock to 658,676,460.

Likewise, and within the framework of the reorganization process, the Board of Directors has approved the exchange ratio, which has been established at 1.40 IRSA shares for each IRSA CP share, which is equivalent to 0.56 IRSA GDS for each ADS of IRSA CP. Within this framework, it was decided to increase the share capital by issuing 152,158,215 new shares in IRSA.

172

As of June 30, 2022, the capital stock were 810,879,553 ordinary shares and there were 79,955,122 warrants outstanding. On October 3, 2022, we informed that between September 17 and 25, 2022, certain warrants holders have exercised their right to acquire additional shares. Therefore, 8,962 options were exercised, which resulted in 8,962 shares of common stock being issued. After the exercise of these warrants, the number of shares and the capital stock of the Company increased from 810,879,553 to 810,888,515, and the new number of outstanding warrants reduced from 79,955,122 to 79,946,160. For more information see “Recent Developments – Warrants exercise.”

As of that date of this Annual Report: (1) we had no other shares of any class or series issued and outstanding; and (2) there are no outstanding convertible notes to acquire our shares. Our common shares have one vote per share. All outstanding shares are validly issued, fully paid and non-assessable. As of June 30, 2022, there were approximately 9,077 holders of our common shares.

Price history of our stock in the BYMA and NYSE

Our common shares are traded in Argentina on the BYMA, under the trading symbol “IRSA.” Since 1994, our GDSs, each presenting 10 common shares, have been listed in the NYSE under the trading symbol “IRS.” The Bank of New York Mellon is the depositary with respect to the GDSs.

The following chart shows, for the period indicated, the maximum and minimum closing listed prices of our common shares on the ByMA and of our GDSs on the NYSE.

B. Plan of Distribution

This item is not applicable.

C. Markets

Argentine Securities Markets

In December 2012, the Argentine government enacted Argentine Capital Market Law, which sets out the rules governing capital markets, its participants, and the rules by which securities traded therein are subject to regulation and monitoring by the CNV. In September 2013, the CNV issued General Resolution No. 622/2013 (the “CNV Rules”) a new set of rules further implementing and administering the requirements of the Capital Markets Law. On May 9, 2018, the Argentine Chamber of Deputies approved Law No. 27,440 called “Ley de Financiamiento Productivo”, which creates a new financing regime for MiPyMEs and modifies the Argentine Capital Market Law, Investment Funds Law No. 24,083 and Law No. 23,576, among others, as well as certain related tax provisions, and establishes regulations for derivative instruments, all with the aim of achieving a modern and transparent financial regulatory framework that contributes to the development of the Argentine economy. On May 21, 2018, the Argentine government issued Decree No. 471/2018, which regulates certain aspects of the Capital Markets Law as amended by Law No. 27,440.

The Capital Markets Law, as currently in effect, sets forth, the following key goals and principles:

· Promoting the participation of small investors, employee unions, industry groups and trade associations, professional associations and all public savings entities in the capital markets, promoting mechanisms designed to promote domestic savings and channel such funds toward the development of production;

· Strengthening mechanisms to prevent abuses and protect small investors;

· Promoting access to the capital market by small and medium-sized companies;

· Using state-of-the-art technology to foster creation of an integrated capital market through mechanisms designed to achieve interconnection of computer systems among trading markets;

· Encouraging simpler trading procedures available to users to increase liquidity and competitiveness to develop favorable conditions for transaction execution;

· Reducing systemic risk in the Argentine capital markets through actions and resolutions aimed at implementing international best practices;

· Promoting the integrity and transparency of the Argentine capital markets; and

· Promoting financial inclusion.

173

The CNV is a self-administered agency of the Argentine government with jurisdiction covering the territory of Argentina, governed by the provisions of the Capital Markets Law, and the CNV Rules among other related statutory regulations. The relationship of the CNV and the Argentine Executive branch is maintained through the Ministerio de Finanzas (Ministry of Finance), which hears any appeals filed against decisions made by the CNV, notwithstanding any other legal actions and remedies contemplated in the Capital Markets Law.

The CNV supervises and regulates the authorized markets in which the securities and the collective investment products are traded, the corporations authorized in the public offer regime, and all the other players authorized to operate in the public offer regime, as the registered agents, the trading agents, the financial advisors, the underwriters and distributors, the brokers, the settlement and clearing agents, the managers of collective investment products, the custodians of collective investment products, the collective depositories, and the risk rating agencies, among others. Argentine institutional investors and insurance companies are regulated by separate government agencies, whereas financial institutions are regulated mainly by the Central Bank.

Before offering securities to the public in Argentina, an issuer must meet certain requirements established by the CNV with regard to its assets, operating history and management. Only securities offerings approved by the CNV may be listed on a stock exchange. However, CNV approval does not imply certification as to the quality of the securities or the solvency of the issuer issuers of listed securities are required to file unaudited quarterly financial statements and audited annual financial statements prepared in accordance with IFRS, as issued by the IASB (excluding financial institutions under the supervision of the Central Bank, insurance companies under the supervision of the Insurance Superintendence and medium and small enterprises) and various other periodic reports with the CNV and the stock exchange on which their securities are listed. In addition, issuers must report to the CNV and the relevant stock exchange any event related to the issuer and its shareholders that may affect materially the value of the securities traded.

In Argentina, debt and equity securities traded on an exchange must, unless otherwise instructed by their shareholders, be deposited with a Central Securities Depository based in Argentina. Currently the only depositary authorized to act in accordance with the Capital Markets Law and CNV Rules is Caja de Valores S.A., a corporation owned by ByMA which provides central depositary facilities, as well as acting as a clearinghouse for securities trading and as a transfer and paying agent for securities transactions.

Law No. 27,440 streamlines the regulation of mutual funds, public offerings of securities, of negotiable obligations and regulation of intermediaries and securities markets, while incorporating a long-awaited regulation for derivative instruments and the margins and guarantees that cover them. Below is a summary of the main amendments to the Capital Markets Law introduced by Law No. 27,440:

174

· Eliminates the CNV’s power to appoint supervisors with veto power over resolutions adopted by an issuer’s Board of Directors without a judicial order.

· Grants the CNV the power to issue regulations to mitigate situations of systemic risk, set maximum fees to be received by securities exchanges, create or modify categories of agents, encourage the simplification of the negotiation of securities and promote the transparency and integrity of the capital markets, while prohibiting the CNV from denying an issuer’s public offer authorization request solely because of opportunity, merit or convenience.

· Empowers the CNV to regulate private offerings of securities.

· Grants federal commercial courts jurisdiction to review resolutions or sanctions issued by the CNV.

· Strengthens due process guarantees in favor of persons on entities sanctioned by the CNV and increases the amount of the fines, between ARS 100,000 and ARS 100 million, which can be increased up to five times the benefits perceived with the infraction.

· Returns functions such as supervision, inspection and control of agents and operations, to the stock exchanges and clearing houses without this implying delegation of the powers of the CNV.

· Allows the CNV to regulate and set ownership limits of authorized markets to restrict control concentration. Preemptive rights may be exercised through the placement procedure determined in a public offering prospectus, instead of the procedure set forth in the Argentine General Companies Law. Preemptive right holders have the right to subscribe for newly issued shares in proportion to their shareholding prior to the capital increase. The subscription price for the newly issued shares may not be less than the public offering price. In order to use the public offering regime for a preemptive rights offering the issuer must (i) have an express provision in its bylaws adopting this regime in lieu of the regime set forth in the Argentine General Companies Law; and (ii) the issuer’s shareholders must approve any issuance of equity securities or convertible debt securities.

· Eliminates share accretion rights, unless expressly provided for in a listed company’s bylaws.

· Allows foreign entities to participate in all shareholder meetings through authorized agents.

· Establishes guidelines to set the offer price in a mandatory tender offer.

· Allows the offeror to freely set the offer price in a voluntary tender offer.

Information regarding the BYMA ⁽¹⁾

	As of June 30,
	2022		2021
Market capitalization (in billions of ARS)		4,379		3,265
Average daily trading volume (2) (in millions of ARS		1,299		1,668
Number of listed companies (3)		83		87

 _____________

(1)	Reflects Merval historical data.
(2)	During the month of June.
(3)	Includes companies that received authorization for listing.

Although companies may list all of their capital stock on the ByMA, in many cases a controlling block is retained by the listed company’s shareholders, resulting in a relatively small percentage of many companies’ stock being available for active trading by the public.

As of June 30, 2022, approximately 87 companies had equity securities listed on, or being transitioned to the ByMA. The Argentine securities markets generally have substantially more volatility than securities markets in the United States and certain developed countries. The S&P Merval index experienced a 37.6% increase in 2019, a 22.9% increase in 2020 and a 63.0% increase in 2021. In order to avoid large fluctuations in securities prices of traded securities, the ByMA operates a system pursuant to which the negotiation of a particular security is suspended for 15 minutes when the price of the security registers a variation between 10% and 15% and between 15% and 20%, during any trading session. Any additional 5% variation in the price of the security results in additional 10 minutes successive suspension periods.

175

The NYSE

Our Global Depositary Shares are listed on the NYSE under the trading symbol “IRS.”

D. Selling Shareholders

This item is not applicable.

E. Dilution

This item is not applicable.

F. Expenses of the Issue

This item is not applicable.

ITEM 10. Additional Information

A. Share Capital

This item is not applicable.

B. Memorandum and Articles of Association

Our corporate purpose

Our legal name is IRSA Inversiones y Representaciones Sociedad Anónima. We were incorporated under the laws of Argentina on April 30, 1943 as a sociedad anónima (stock corporation) and were registered with the Public Registry in the City of Buenos Aires (Inspección General de Justicia or “IGJ”) on June 23, 1943 under number 284, on page 291, book 46 of volume A. Pursuant to our bylaws, our term of duration expires on April 5, 2043.

Pursuant to article 4 of our bylaws our purpose is to perform the following activities:

· Invest, develop and operate real estate developments;

· Invest, develop and operate personal property, including securities;

· Construct and operate works, services and public property;

· Agency activities;

· Manage real or personal property, whether owned by us or by third parties;

· Build, recycle, or repair real property whether owned by us or by third parties;

· Advise third parties with respect to the aforementioned activities;

· Finance projects, undertakings, works and/or real estate transactions of third parties;

· Finance, create, develop and operate projects related to Internet.

176

Board of Directors

Voting on proposals in which directors have material interest

· shall not be allowed to make use of any corporate assets or confidential information for his/her own private purposes;

· shall not be allowed to profit or permit a third party to profit, whether by an action or an omission to act, from any business opportunities available to the company;

· shall be required to exercise any powers conferred to them solely for the purposes for which they were conferred under the law or the corporate bylaws or by a shareholders’ meeting or the Board of Directors; shall be required to meticulously ensure that no conflict of interest, whether direct or indirect, shall under any circumstances arise between his/her actions and the company’s interests. In case of doubt as to a director’s compliance with his/her duty of loyalty, the burden of proof shall be borne by such person.

The Argentine General Corporation Law establishes in Section 271 that directors may enter into agreements with the company, that concern the business in which the company engages, always provided that they are entered into under market conditions. The agreements that do not fulfill the requirements mentioned above may only be executed with the prior approval of the Board of Directors, and subject to the approval of the shareholders’ meeting.

Furthermore, the Capital Markets Law No. 26,381 in Section 72 states for companies authorized in the public offer regime, that any acts performed or contracts executed between the company and a related party and involving a significant amount shall be performed or executed pursuant to the procedure set forth below:

a) A “related party” shall mean any of the following persons with respect to the issuer:

i.	Directors, members of the supervisory body or surveillance committee, as well as chief executive officers or special managers of the issuing company appointed under section 270 of the Argentine General Corporation Law;
ii.	Natural persons or legal entities controlling or holding a substantial interest, as determined by the CNV, in the capital stock of the issuer or the issuer’s controlling entity;
iii.	Any other company under the common control of the same controlling entity;
iv.	The ascendants, descendants, spouses or siblings of any of the natural persons referred to in paragraphs i) and ii) above;
v.	Companies in which any of the persons referred to in paragraphs i) to iv) above hold a significant direct or indirect interest. Provided none of the circumstances described above is present, a subsidiary of the issuer shall not be deemed a “related party.”

b) A “significant amount” shall be deemed involved in an act or contract when such amount exceeds 1% of the company’s shareholders’ equity as shown in the most recently approved balance sheet.

The Board of Directors or any members thereof shall request the Audit Committee to state whether in its opinion the terms of a transaction may be reasonably deemed adapted to regular and usual market conditions. The Audit Committee shall issue its pronouncement within 5 business days.

177

Notwithstanding the above inquiry from the Audit Committee, a resolution may be adopted by the company on the basis of a report from 2 independent evaluation companies, which shall express their opinion on the same matter and other terms of the transaction.

Nevertheless that, Section 272 of the Argentine Corporations Law provides that when a director has an opposite interest to the one of the company, he or she should notify that situation to the Board of Directors and the supervisory committee and abstain to vote in that respect. The violation of this provision results in the director being jointly and severally unlimitedly liable.

Approval of compensation of the members of the Board of Directors, Senior Management and Supervisory Committee

Our bylaws do not establish the compensation to be paid to members of the Board of Directors and the Supervisory Committee, and therefore pursuant to Section 261 of the Argentine General Corporation Law, it should be approved by the shareholders. The maximum amount that may be paid as compensation to members of the Board of Directors and the supervisory committee should not exceed 25% of the realized and net earnings of the company and 5% when there is no distribution of dividends. If the company does not distribute the total earnings, the amount of the compensation should be proportional to that distribution and within the mentioned limits. These limits may only be surpassed by express approval of the shareholders.

Powers of directors

Our bylaws establish, in Section 18, that the Board of Directors has full and broad powers to organize, manage and direct us to fulfilling the corporate purpose.

Retirement of directors

Our bylaws do not establish any requirements or provisions regarding age limits for director’s retirement, nor do they require a number of common shares a director must own to qualify for the position.

Meetings of the Board of Directors

Through the shareholders’ meeting held on October 31, 2012, the bylaws were amended to incorporate the possibility of holding meetings at a distance. To these effects, the Board of Directors shall adopt its resolutions by a majority vote of those present whose count shall include the directors present through the simultaneous means of simultaneous transmission of sound or image and sound or to be created in the future and according to the current legislation. In case of a tie, the President, or whoever replaces him, has the right to double vote.

Rights, preferences and restrictions attaching to the common shares

Dividend rights

The Corporations Law establishes that the distribution and payment of dividends to shareholders is valid only if they result from realized and net earnings of the company pursuant to an annual financial statement approved by the shareholders. The approval, amount and payment of dividends are subject to the approval of our annual ordinary shareholders meeting of the company. That approval requires the affirmative vote of the majority of the present votes with right to vote at the meeting.

178

Pursuant to the Corporations Law and Section 29 of our bylaws, liquid and realized profits of each fiscal year shall be distributed as follows:

· allocate 5% of such net profits to legal reserve, until the amount of such reserve equals 20% of the capital stock;

· the sum established by the shareholders’ meeting as remuneration of the of Directors and the supervisory committee;

· dividends, additional dividends to preferred shares if any, or to optional reserve funds or contingency reserves or to a new account, or for whatever purpose the shareholders’ meeting determines.

Under the applicable CNV Rules, dividends are distributed pro rata in accordance with the number of shares held by each holder within 30 days of being declared by the shareholders for cash dividends and within 90 days of approval in the case of dividends distributed as shares. The right to receive payment of dividends expires five years after the date on which they were made available to shareholders.

The shareholders’ meeting may authorize payment of dividends on a quarterly basis provided no applicable regulations are violated. In that case, all and each of the members of the Board of Directors and the supervisory committee will be jointly and severally liable for the refund of those dividends if, as of the end of the respective fiscal year, the realized and net earnings of the company are not sufficient to allow the payment of dividends.

Regardless of the term for dividend’s payment established by CNV, regulations enacted by the Buenos Aires Stock Exchange set forth that cash dividends must be paid within 10 days after their approval by a shareholders’ meeting.

Voting rights and staggered elections

Our stock capital is composed by book-entry common shares with face value of ARS 1 per share and entitled to one vote each. All directors and alternate directors are elected for a three-year term.

Our by laws do not consider staggered elections however, the members of the Board of Directors are elected by thirds each year with a term of office of three years each.

Rights to share in IRSA’s profits

The holders of our common shares have the right to participate in our net and realized profits on a pro rata basis of their respective interests.

Pursuant to the Corporations Law and Section 29 of our bylaws, liquidated and realized profits of each fiscal year shall be distributed as follows:

· allocate 5% of such net profits to legal reserve, until the amount of such reserve equals 20% of our capital stock;

· the sum established by the shareholders’ meeting as remuneration of the Board of Directors and the Supervisory Committee; and dividends, additional dividends to preferred shares if any, or to optional reserve funds or contingency reserves or to a new account, or for whatever purpose the shareholders determine at the shareholders’ meeting.

Rights to share in any surplus in the event of liquidation

In the event of liquidation, dissolution or winding-up of our company, our assets are:

· to be applied to satisfy our liabilities; and

· to be proportionally distributed among holders of preferred stock in accordance with the terms of the preferred stock, if any. If any surplus remains, our shareholders are entitled to receive and share proportionally in all net assets available for distribution to our shareholders, subject to the order of preference established by our by-laws.

179

Provisions related to a shareholder’s ownership of certain amount of common shares

Section 9 of our by-laws provides that the acquisition by any person or group, directly or indirectly of our common shares, convertible securities, rights to receive any of those securities that may grant that person the control of our company or 35% or more of our capital stock may only be done by complying with certain tender offer rules for all of our common shares, except for:

· acquisitions by persons holding or controlling common shares or convertible securities in accordance to Argentine Capital Market Law (amended by Law 27,440 in 2018), notwithstanding the provisions of the CNV; and

· holdings of more than 35%, which derive from the distribution of common shares or dividends paid in shares approved by the shareholders, or the issuance of common shares as a result of a merger approved by the shareholders; in both cases, the excess holding shall be disposed of within 180 days of its registration in the relevant shareholder’s account, or prior to the holding of our shareholders meeting, whatever occurs first.

Directors, senior managers, executive officers, members of the supervisory committee, and controlling shareholders of an Argentine company whose securities are publicly listed, should notify the CNV on a monthly basis, of their beneficial ownership of common shares, debt securities, and call and put options related to securities of such companies and their controlling, controlled or affiliated companies.

In addition, the CNV must be immediately notified of transactions which cause a person’s holdings of capital stock of an Argentine company whose securities are publicly listed to hold 5% or more of the voting power and of every change in the holdings of such person that represents a multiple of 5% of the voting power. Holders of more than 50% of the common shares of a company or who otherwise have voting control of a company, as well as directors, officers and members of the supervisory committee, must provide the CNV with Annual Reports setting forth their holdings in the capital stock of such companies and monthly reports of any change in their holdings.

Procedure to change the rights of stockholders

The rights of holders of stock are established in the Argentine General Corporation Law and in the bylaws. The rights of shareholders provided for by the Argentine General Corporation Law may not be diminished by the bylaws. Section 235 of the Argentine General Corporation Law establishes that the amendment of the bylaws should be approved by the absolute majority of our shareholders at an extraordinary shareholders meeting.

Ordinary and extraordinary shareholders’ meetings

Our by-laws provide that shareholders’ meetings may be called by our Board of Directors or by our Supervisory Committee or at the request of the holders of common shares representing no less than 5% of the common shares. Any meetings called at the request of shareholders must be held within 30 days after the request is made. Any shareholder may appoint any person as its duly authorized representative at a shareholders meeting, by granting a proxy. Co-owners of common shares must have single representation.

In general, the following matters can be considered only at special shareholders’ meeting (asamblea extraordinaria):

· matters that may not be approved at an ordinary shareholders’ meeting;

· the amendment of our by-laws;

· reductions in our share capital;

· redemption, reimbursement and amortization of our shares;

· mergers, and other corporate changes, including dissolution and winding-up;

· limitations or suspensions to preemptive rights to the subscription of the new shares; and issuance of debentures and bonds that not qualify as notes (obligaciones negociables).

180

In addition, pursuant to the Capital Markets Law, at an ordinary shareholders’ meeting, our shareholders must consider (i) the disposition of, or creation of any lien over, our assets as long as such decision has not been performed under the ordinary course of business; (ii) the execution of administration or management agreements; and (iii) whether to approve the payment of any agreement providing assets or services to us as long as such payment is material when measured against the volume of the ordinary course of business and our shareholders’ equity.

In accordance with our by-laws, ordinary and special shareholders’ meetings (asamblea extraordinaria) are subject to a first and second quorum call, the second to occur upon the failure of the first. The first and second notice of ordinary shareholders’ meetings may be made simultaneously. In the event that both are made on the same day, the second must occur at least one hour after the first. If simultaneous notice was not given, the second notice must be given within 30 days after the failure to reach quorum at the first. Such notices must be given in compliance with applicable regulations.

Quorum for an ordinary shareholders’ meeting on the first call requires the presence of a number of shareholders holding a majority of the common shares entitled to vote and, on the second call, the quorum consists of the number of shareholders present, whatever that number. Decisions at ordinary shareholders’ meetings must be approved by a majority of the votes validly exercised by the shareholders.

A quorum for a special shareholders’ meeting (asamblea extraordinaria) on the first call requires the presence of persons holding 60% of the shares entitled to vote and, on the second call, the quorum consists of the number of shareholders present, whatever that number. Decisions at special shareholders’ meeting (asamblea extraordinaria) generally must be approved by a majority of the votes validly exercised.

However, pursuant to the Argentine General Corporation Law, all shareholders’ meetings, whether convened on a first or second quorum call, require the affirmative vote of the majority of shares with right to vote in order to approve the following decisions:

· advanced winding-up of the company;

· transfer of the domicile of the company outside of Argentina;

· fundamental change in the purpose of the company; total or partial mandatory repayment by the shareholders of the paid-in capital; and

· a merger or a spin-off, when our company will not be the surviving company.

Holders of common shares are entitled to one vote per share. Owners of common shares represented by GDRs exercise their voting rights through the GDR Depositary, who acts upon instructions received from such shareholders and, in the absence of instructions, votes in accordance with the instructions given to the GDR Depositary by the Board of Directors as set forth in a written notice delivered to the GDR Depositary prior to the meeting.

The holders of preferred stock are not entitled to voting rights. However, in the event that no dividends are paid to such holders for their preferred stock, the holders of preferred stock are entitled to voting rights. Holders of preferred stock are also entitled to vote on certain special matters, such as a transformation of the corporate type, early dissolution, change to a foreign domicile, fundamental change in the corporate purposes, total or partial replacement of capital losses, mergers in which our company is not the surviving entity, and spin-offs. The same exemption will apply in the event the preferred stock is traded on any stock exchange and such trading is suspended or canceled.

181

Limitations to own securities by non-resident or foreign shareholders

There are no legal limitations on ownership of securities or exercise of voting rights, by non-resident or foreign shareholders. Through Resolution No. 789/2019, currently incorporated to CNV’s rules, ruled out the requirement of registration for foreign companies under Section 118 (branches) and 123 (foreign companies only acting as shareholders) of the Argentine General Corporation Law. After the referred resolution were enacted the registration procedure is no longer required for foreign companies acting as shareholders of local companies whose securities are publicly offered. In lieu of those requirements, any foreign shareholder which is an entity shall properly exercise its voting rights through a representative duly empowered without any additional registration requirement. The definition of representative includes: (i) the legal representative duly registered in Argentina pursuant to Sections 118 or 123 of the Argentine General Corporation Law; (ii) the attorney-in-fact duly authorized through a proxy by the legal representative in Argentina under the provisions set forth in of Section 239 of the Argentina General Corporation Law; (iii) the attorney-in-fact duly authorized through a proxy granted in Argentina by a person entitled to grant a proxy under the laws of his country of origin, pursuant the provisions set forth in of Section 239 of the Argentina General Corporation Law; or (iv) the attorney-in-fact duly authorized by a proxy granted overseas by authorized person, under the law of the country of origin. In this case, the proxy shall be legalized abroad and apostilled pursuant to the provisions of the Hague Convention for foreign documents or legalized by the Ministry of Foreign Affairs and translated by a public translator in Argentina.

Ownership threshold above which ownership should be disclosed

CNV Rules require that transactions, which cause a person’s holdings of capital stock of a registered Argentine company, to equal or exceed 5% of the voting power, should be immediately notified to the CNV. Thereafter, every change in the holdings that represents a multiple of 5% of the voting power should also be notified.

Directors, senior managers, executive officers, members of the supervisory committee, and controlling shareholders of an Argentine company whose securities are publicly offered, should notify the CNV on a monthly basis, of their beneficial ownership of common shares, debt securities, and call and put options related to securities of such companies and their controlling, controlled or affiliated companies.

Furthermore, the CNV must be immediately notified of transactions which cause a person’s holdings of capital stock of an Argentine company whose securities are publicly offered to equal or exceed 5% of the voting power and every change in the holdings that represents a multiple of 5% of the voting power. Holders of more than 50% of the common shares or who otherwise control decision making in shareholders’ meetings, as well as directors, officers and members of the supervisory committee must provide the CNV with Annual Reports of their holdings in the capital stock of such companies and monthly reports of any change in their holdings.

Amendment to the by-laws

On the shareholders’ meeting held on October 25, 2007, our shareholders decided to amend the following sections of the by-laws: (i) Section Twelve in order to adapt the performance bonds granted by directors to current rules and regulations, and (ii) Section Fifteen in order to incorporate the possibility of holding remote board meetings pursuant to the provisions of section 65 of Decree 677/01. Such amendment is attached hereto as Exhibit 1.2.

On October 31, 2012, the annual shareholders meeting passed an amendment to the corporate by-laws which allowed the Board of Directors to celebrate their meetings using teleconference technology. An absolute majority of the directors will constitute the quorum. Only the directors physically present at the time and those using teleconference technologies will be taken into consideration for the quorum. The resolutions of the Board of Directors will be passed by the vote of the majority present at the meeting. Such amendment is attached hereto of Exhibit 1.3 to this Annual Report.

182

On November 14, 2014, the shareholder’s meeting decided to amend the following sections of the by-laws: (i) Section First in order to comply with the Argentine Capital Market Law, and (ii) Section Twenty-Four in order to incorporate the regulation of the shareholders’ meeting held with shareholders present or communicated through teleconference technologies. The Section First was approved in the shareholder’s meeting in October 31, 2014 and the Section Twenty-Four was approved in the shareholder’s meeting in October 31, 2016. Such amendment is attached hereto of Exhibit 1.4 to this Annual Report.

On the shareholder’s meeting held on October 29,2018 our shareholders decided to amend the following sections of the by-laws in order to adapt them to certain new legal provisions: (i) Section Eighth, establishing that if there is an Issuance of Shares, the shareholders’ preemptive right will be exercised as established in the prospect of the issuance; (ii) Section Ninth, adapting the wording of such section to the new regulations applicable to the Tender Offers Law No. 26,831, as amended; (iii) Section Eleventh, establishing the issuance of Negotiable Obligations may be decided by the Board of Directors; and (iv) Section Twenty-Second describing the duties of the Audit Committee as well as authorizing the Audit Committee to hold meeting via conference, teleconference of any other electronic means. Such amendments are pending of approval by the Public Registry of the City of Buenos Aires.

On the shareholder’s meeting held on December 12, 2019 our shareholders decided to amend the following section of the by-laws in order to increase the maximum number of members of the board of directors: (i) Section Twelve increasing to sixteen the regular members of the board of directors.

On the shareholder’s meeting held on December 21, 2021 our shareholders decided to amend the following section of the by-laws in order to reduce the maximum number of members of the board of directors: (i) Section Twelve reducing to fifteen the regular members of the board of directors.

C. Material Contracts

We do not have any material contract entered into outside the ordinary course of business other than some of the operations previously described under the sections Related Party Transactions, Recent Developments, and Our Indebtedness.

D. Exchange Controls

On September 1, 2019, the Argentine government issued Decree No. 609/2019, pursuant to which foreign exchange controls were temporarily imposed until December 31, 2019. On January 3, 2020, the Argentine government issued Decree No. 91/2019, which permanently extended the foreign exchange controls that expired on December 31, 2019.

At present, foreign exchange regulations are included in the Consolidated Text on Foreign Trade and Exchange issued by the Central Bank pursuant Communication “A” 6,844 as supplemented.

A brief summary of the exchange control regulations in force as of the date of this Form Annual Report is set forth below.

Exports of Goods

As a general rule, exporters of goods must repatriate, and settle in pesos through the foreign exchange market, the proceeds from exports cleared through customs after September 2, 2019 within different deadlines, depending on certain factors (nature of goods, relationship between exporter and importer, etc.). In certain cases (e.g. certificate of increase of exports against 2020, projects falling under the Investment Promotion Regime for Exports set out by the Executive Order 234/21, etc.) exporters have greater access to the foreign exchange market.

The “Dollar Soja” is a special exchange regime created by Decree 576/2022 that will be in force during September 2022 and offers ARS 200 for each USD, unlike the currently approx. ARS 142 offered during same time to the rest of the exporters. Said was established for the settlement of foreign currency from soybeans and products associated with it, for those who adhere to the program and that comply with the requirements established in said decree. As of the date of this Annual Report, the aforementioned exchange regime has not been extended and, consequently, the “Dollar Soja” is not currently in effect.

183

Sale of Non-Financial Assets

Proceeds in foreign currency from the sale of non-financial assets must be repatriated and settled in pesos in the foreign exchange market within five business days from the date of collection in Argentina or abroad, or the date of deposit of such amounts in foreign bank accounts.

Exports of Services

Exporters of services must repatriate, and settle in pesos through the foreign exchange market, the proceeds from their exports within five business days from the date of collection in Argentina or abroad, or the date of deposit of such amounts in foreign bank accounts.

Imports of Goods and Services

Except for certain exceptions current regulations provide for, importers of goods and/or services must obtain prior authorization from the Central Bank for the settlement of foreign currency-denominated debts in connection with the import of goods and services.

Foreign Assets

Prior authorization from the Central Bank is required for the acquisition of foreign assets (e.g., purchase of foreign currency, among others) and for derivative transactions by Argentine companies, Argentine local governments, Argentine mutual funds, trusts and other Argentine entities. Individuals must request authorization when the value of such assets exceed USD 200 (in the case of withdrawals from Argentine bank accounts) or USD 100 (in the case of cash purchases) in any calendar month.

External Financial Indebtedness

Pursuant to section 3.5 of the Consolidated Text on Foreign Trade and Exchange, Argentine residents may access the foreign exchange market to pay principal and interest on external financial indebtedness, provided that:

(i)	The funds disbursed have been repatriated and converted into ARS in the exchange market. This requirement is not applicable to certain exceptions, including, but not limited to, (a) any funds disbursed before September 1, 2019; and (b) any external financial indebtedness incurred as of September 1, 2019 that does not have disbursements for being a refinancing of financial debts that would have had access to the foreign exchange market under the applicable regulations, to the extent that the new indebtedness’ maturity date is not earlier than the maturity date of the original
(ii)	The debt is registered in the Survey of External Assets and Liabilities.
(iii)	Access to the exchange market occurs on a date that is not earlier than 3 (three) business days before the date of maturity of the applicable principal or interest payment, with some exceptions.

Communication “A” 7,030, and its amendments, establishes the prior agreement of the Central Bank, until December 31, 2023, for the cancellation of capital services of financial debts abroad, provided that the creditor is a related counterparty, with limited exceptions. Pursuant to this, the Central Bank may grant companies access to the MULC for up to 40% of any such debt, with the companies being required to refinance the outstanding 60% within a period of at least two years

Indebtedness Between Residents

Prior authorization from the Central Bank is required for the payment of foreign currency-denominated obligations between Argentine residents after September 1, 2019, with limited exceptions. However, no prior authorization is required for the payment of foreign currency-denominated obligations to Argentine financial entities, including, among others, payments made in respect of credit cards.

184

Profits and Dividends

Prior authorization from the Central Bank is required for the transfer of profits and/or dividends outside of Argentina, unless certain requirements expressly provided for by current regulation are met.

Non-Residents

Non-residents must obtain prior authorization from the Central Bank to access the foreign exchange market to purchase foreign currency, with limited exceptions.

Reporting Regime

In all cases, access to the foreign exchange market for the payment of financial or commercial debts will be granted to the extent that such debts were disclosed in accordance with the Central Bank’s reporting regime established through Communication “A” 6,401, if applicable.

Outgoings

Outflow of funds

Consolidated Text on Foreign Trade and Exchange provides for prior approval of the Central Bank in order to carry out any outflow of funds, unless the clients submit several affidavits related to (i) foreign currency holdings and liquid external assets; (ii) own and controlling company’s securities transactions (blue chip swap, “dolar MEP”, etc.); (iii) economic benefits granted by the State; and (iv) delivery of funds in local currency or local assets (except funds in foreign currency deposited in local financial entities) to any human or legal person, resident or non-resident, related or not, receiving as prior or subsequent consideration, in a manner directly or indirectly, by itself or through a related, controlled or controlling entity, foreign assets, crypto assets or securities deposited abroad..

The Central Bank Communication “A” 7,030 also establishes the prior approval of the Central Bank to carry out any outflow of funds through the foreign exchange market from May 29, 2020 onwards, with some exceptions.

In addition, Communication “A” 7,030, as amended, established the prior approval of the Central Bank for certain outflow of funds through the foreign exchange market, unless the entity has an affidavit from the client stating that at the time of access to the foreign exchange market:

(a)	All of its local foreign currency holdings are deposited in accounts in financial institutions and that it did not have liquid external assets available at the beginning of the day that access to the foreign exchange market is requested for a higher amount equivalent to USD 100,000 (with some exceptions, expressly provided for by the regulation).
(b)	Undertakes to settle in pesos through the foreign exchange market, within five working days of its availability, those funds received abroad resulting from the collection of loans granted to third parties, the collection of a term deposit or the sale of any type of asset, when the asset has been acquired, the deposit constituted or the loan granted after May 28, 2020.

Indeed, for access to the Foreign Exchange Market, an affidavit is required, among others, stating that they have not made sales of securities through the settlement of foreign currency, nor their transfer to deposit institutions abroad, nor exchanged securities for other foreign liquid assets, nor purchased securities in the country with Argentine pesos, nor have obtained Cedars or securities representing private debt issued in foreign jurisdiction, the 90 (ninety) calendar days prior to access to the Exchange Market ; and also that the applicants undertake not to carry out said operations during the following 90 (ninety) calendar days and; (ii) have not delivered local currency funds or local assets (except foreign currency funds deposited in other local financial institutions) to any person or legal entity, resident or non-resident, related or not, that they receive as prior or subsequent consideration, directly or indirectly, by itself or through a related, controlled or controlling entity, during foreign assets, crypto assets or securities deposited abroad, the 90 (ninety) calendar days prior to access to the Foreign Exchange Market; and also that the applicants undertake not to carry out said transactions during the following 90 (ninety) calendar days.

185

On October 5, 2021, by means of General Resolution 907/21, a limit on the sale of securities which are denominated in U.S. dollars and issued under local law was established at the end of each week for those transactions that had a concurrence of tenders received with a priority of price and time. This limit may not exceed the amount of fifty thousand nominal values settled. Plus, it was also established as prior condition for those transactions that the orders may only be given if no sales have been made with foreign settlement in the previous thirty days, and a commit not to do so within thirty subsequent calendar days.

Securities trading

Central Bank Communication “A” 7,422, as amended by Communication “A” 7,308, established that securities transactions performed in Argentina, unlike securities transactions performed abroad, can be settled in ARS in Argentina.

Central Bank Communication “A” 7,340 and its amendments provides that securities sale transactions settled in foreign currency must be paid by one of the following mechanisms:

· By transfer of funds to and from demand accounts held in the customer’s name with local financial institutions;

· Against wire transfers on bank accounts in the customer’s name with a foreign entity that is not incorporated in countries or territories where the Recommendations of the Financial Action Task Force do not apply, or do not sufficiently apply.

This Communication “A” 7,340 and its amendments also prohibits the settlement of purchase and sale transactions of securities with settlement in foreign currency through payment in foreign currency cash, or through their deposit in custody accounts or accounts of third parties.

No sales of securities with settlement in foreign currency may be executed in Argentina, and such securities may not be transferred to foreign depositaries or exchanged for other external assets, by persons that were granted with certain benefits (beneficiaries of refinancings contemplated under Section 2.1.1. of the regulations on “Financial services under the scope of the health emergency ordered by Decree No. 260/2020 Coronavirus (COVID-19”, etc.).

On July 8, 2021, CNV, approved General Resolution 895/2021, to increase the minimum holding periods for the settlement of securities against foreign currency and in foreign jurisdiction. Said General Resolution does not incorporate modifications for the settlement of securities against local currency.

The minimum holding period, locally known as “Parking Period”, for securities in the local custodian to be applied to the settlement of transactions in foreign currency and in foreign jurisdiction (i.e., settlement against “Dollar Cable” in a foreign account) was set to two business days. This Parking Period does not apply in the case of purchases of securities with settlement in foreign currency and in a foreign jurisdiction.

In the case of sales of securities with settlement in foreign currency, but in local jurisdiction (i.e., settlement against a MEP transfer to a local account), the Parking Period remains one (1) business day. This Parking Period shall not apply in the case of purchases of securities settling in foreign currency.

The Parking Period prior to settlement against foreign currency and in foreign jurisdiction (i.e. settlement against “Dollar Cable” in a foreign account) for locally credited securities from foreign depositories (i.e. acquired from foreign agents) has also been set to two business days. In the case of transactions with settlement in foreign currency and in local jurisdiction (i.e., settlement against a MEP transfer to a local account), the Parking Period remains at one business day.

186

Finally, the CNV also modified the maximum limits for weekly transactions in sovereign securities issued by the Argentine Republic for each principal sub-account in the time-priority bidding segment (BYMA), which prior to the entry into force of the General Resolution was one hundred thousand (100,000) nominal amounts (only for securities issued under local law). According to the new General Resolution, the limit was split into (i) fifty thousand (50,000) nominals for securities issued under local law, purchased with settlement in such currency and jurisdiction, and (ii) fifty thousand (50,000) nominals for securities issued under foreign law. These limits continue not to apply to wholesale transactions (MAE/SENEBI).

For more information see “Risk Factors—Restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to pay dividends and distributions and investors may face restrictions on their ability to collect capital and interest payments in connection with corporate bonds issued by Argentine companies.”

E. Money Laundering

Argentine Law No. 25,246, as amended and/or complemented by Laws Nos. 26,087, 26,119, 26,268, 26,683, 26,831, 26,860 and 27,304 (the “Anti‑Money Laundering Law”), categorizes money laundering as a crime, which is defined as the exchange, transfer, management, sale or any other use of money or other assets obtained through a crime, by a person who did not take part in such original crime, with the potential result that such original assets (or new assets resulting from such original assets) have the appearance of having been obtained through legitimate means. In spite of the fact that there is a specific amount for the money laundering category (ARS 300,000), the crimes committed for a lower amount are also punished, but the prison sentence is reduced.

After the enactment of Law No. 26,683, money laundering was included in the Penal Code as an independent crime against economic and financial order and it was split from the title “Concealment” as originally disposed. Therefore, money laundering is a crime which may be prosecuted independently. The Anti‑Money Laundering Law created the Financial Information Unit, or “UIF,” is responsible for the analysis, treatment and procurement of information to prevent money laundering originating from, among others:

· Crimes related to the traffic and illegal commercialization of drugs (Law No. 23,737);

· Crimes related to arms traffic (Law No. 22,415);

· Crimes related to illegal association or terrorist association;

· Crimes committed by illegal associations organized to commit crimes for political or racial purposes;

· Crimes against Public Administration;

· Crimes of minor’s prostitution and child pornography; and

· Crimes related to terrorism financing.

The UIF analyzes the information received from entities that have the obligation to report suspicious activities or operations and, as the case may be, inform the Public Ministry to carry out the investigations that may be considered relevant or necessary.

The UIF analyzes the information it receives and informs the Public Prosecutor as to whether it should carry out any investigations. Once the information is received, the UIF may request additional information and any undertake action it deems useful for the fulfillment of its functions. In the context of the analysis, respondents may not rely on bank, tax, stock or professional secrecy, or contractual confidentiality commitments to oppose a request for information from the UIF. Once the analysis is completed, the UIF is empowered to (i) receive voluntary declarations, which in no case may be anonymous, (ii) require the collaboration of all State information services, which are required to provide it in the terms of the current procedural regulations, (iii) request the Public Prosecutor’s Office to require the competent judge to resolve the suspension of execution of any transaction, (iv) request the Public Prosecutor’s Office to require search warrants it deems useful for the investigation, (v) request the Public Ministry to manage all the legal means necessary to obtain information from any source or origin, and (vi) apply sanctions.

187

The anti‑money laundering framework in Argentina also assigns information and control duties to certain private sector entities, such as banks, non‑profit organizations, stock exchanges, and insurance companies, including the Central Bank. These regulations apply to many Argentine companies, including us. These obligations consist mainly of: (i) maintaining internal policies and procedures for money laundering prevention and financing of terrorism, including “know your client” procedures, as appropriate; (ii) reporting suspicious activity; and (iii) acting according to the Anti‑Money Laundering Law with respect to the confidentiality of the information obtained from the clients. For that purpose, each entity involved must appoint an officer responsible for the monitoring and control under the Anti‑Money Laundering Law.

As part of a more comprehensive modification of the rules that govern the scope of supervision of CNV, derived from the enactment of the revised Capital Markets Law and the CNV Rules, which established a new regime for the public offer of securities, CNV issued a revision of its rules to incorporate a new chapter of Anti‑Money Laundering Laws including provisions related to the fulfillment of duties to be complied by “Agentes de Negociación,” “Agentes de Liquidación y Compensación,” “Agentes de Distribución y Colocación” and “Agentes de Administración de Productos de Inversión Colectiva,” each of which is considered mandatory under the terms of sections 4, 5 and 22 of article 20 of Law No. 25,246. Such agents are required to comply with Law No. 25,246 and its amendments, regulations enacted by UIF, including executive orders with reference to the decisions adopted by the United Nations Security Council in the fight against terrorism and to comply with the resolutions issued by the Ministry of Foreign Affairs, International Trade and Religion. Furthermore, “Agentes de Custodia de Productos de Inversión Colectiva (Sociedades Depositarias de Fondos Comunes de Inversión),” “Agentes de corretaje,” “Agentes de depósito colectivo” and listed companies with respect to contribution, irrevocable contributions or indebtedness made by a shareholder or a third person to become a shareholder in the future, are also reached by the resolution.

Each of these entities must send by internet (through the online application of CNV) their tax identification number. Additionally, in case of companies, the personal data of the “Compliance Officer” (both regular and alternate) must also be disclosed.

The CNV Rules provide that entities it regulates may only take action relating to public offerings of securities, stipulated, future or optional contracts of any nature and other instruments and financial products with registered, domiciled or domestic counterparties known to CNV or foreign counterparties in jurisdictions included on the list of cooperating countries provided in article 2º, subsection b) of Decree No. 589/2013.

Where a counterparty is not included in the referred list and is from a jurisdiction where it is regulated by an entity similar to CNV, validity of the transactions will be granted if the foreign regulator has signed a memorandum of understanding, cooperation and exchange of information with the CNV.

With the purpose of strengthening the requirements applicable to the grant of authorization to operate in the capital markets, additional requirements were established in connection with: (i) competence and capacity; (ii) moral integrity and honesty and (iii) solvency. Such requirements are subject to the appraisal of CNV and must be fulfilled by managers, directors, auditors and any other individual who performs duties or activities within the company.

Pursuant to Decree 360/2016 dated February 16, 2016, the Argentine government created the National Coordination Program for Combating Money Laundering and Terrorist Financing within the purview of the Ministry of Justice and Human Rights. Its purpose is to rearrange, coordinate and strengthen the anti‑money laundering and anti‑terrorist financing system at the national level, in light of the actual risks that could impact Argentina territory and the global requirements to be met under the scope of the obligations and international recommendations of the United Nations and FATF standards.

Moreover, Law No. 27,260, which introduced certain tax modifications and a new regime for residents to disclose undeclared assets, established that the UIF would now be within the purview of the Ministry of Economy and Finances. Nowadays, as a result of the reorganization of said ministry, the UIF depends on the Ministry of Finance. For its part, the UIF recently issued Resolution No. 4/2017, which requires certain specific due diligence procedures (commonly called “know your client”) to be performed when a national or foreign depositor opens a bank account for the purpose of investment.

188

On March 5, 2018, the UIF Resolution No. 21/2018 on guidelines for the management of risks of money laundering and financing of terrorism and on the minimum compliance to be adopted for the prevention of laundering was published in the Official Gazette. In line with UIF Resolution No. 30-E/17 addressed to the financial sector, UIF Resolution No. 21/2018 also moves from a formalistic compliance approach to a risk-based approach, in order to ensure that the measures implemented are commensurate with the risks identified. In this way, the obligated subjects must identify and evaluate their risks and, depending on this, adopt management and mitigation measures. In this framework, they are enabled to implement accredited technological platforms that allow carrying out procedures at a distance, without personal display of the documentation, without this conditioning the fulfillment of due diligence duties.

Likewise, it is reported that in August 2018, in accordance with Resolution No. 97/2018 of the UIF, the regulation of the Central Bank’s duty of cooperation with the UIF was approved to adapt said regulation to Resolution No. 30-E/2017.

On November 19, 2019, the UIF issued Resolution No. 117/2019, updating certain thresholds established in past Resolutions with the purpose of achieving an effective prevention of money laundering and terrorism financing and from a risk-based approach, all of it in accordance with the international standards promoted by the Financial Action Task Force. Such update was incorporated into Argentine legislation by Law No. 25,246, which was in turn the basis of the update of thresholds established in UIF Resolutions No. 21/2011, 28/2011, 30/2011, 30/2011, 65/2011, 70/2011, 199/2011, 199/2011, 11/2012, 16/2012, 17/2012, 18/2012, 22/2012, 23/2012, 32/2012, 66/2012, 140/2012, 50/2013, 30/2017, 21/2018 and 28/2018. Furthermore, on April 13, 2022, the thresholds established in Resolution No. 117/2019 were updated by the publication of Resolution No. 50/2022.

On October 19, 2021, UIF Resolution No. 112/2021 established certain measures and procedures that all regulated entities must observe pursuant to identifying the Beneficial Owner and, pursuant to the new changes, it incorporated a new definition of Beneficial Owner, indicating that these shall be any “human person/s who own/s at least 10% of the capital or voting rights of a legal person, a trust, an investment fund, an affectation patrimony and/or of any other legal structure; and/or to the human person/s who by other means exercise/s the final control of such entity.”

Finally, on January 13, 2022, UIF Resolution No. 6/2022 amended UIF Resolutions No. 30/2017, 21/2018 and 28/2018, which are applicable to entities regulated by the Central Bank, the CNV and/or the Superintendence of Insurance of the Nation, respectively.

189

F. Taxation

United States Taxation

The following summary describes the material United States federal income tax consequences of the ownership and disposition of our common shares and GDSs. The discussion set forth below is applicable only to U.S. Holders (as defined below) that hold the common shares or GDSs as capital assets. This summary does not represent a detailed description of the United States federal income tax consequences applicable to you if you are subject to special treatment under the United States federal income tax laws, including if you are:

· a bank or other financial institution;

· a dealer in securities or currencies;

· a regulated investment company;

· a real estate investment trust;

· an insurance company;

· a tax-exempt organization;

· a person holding the common shares or GDSs as part of a hedging, integrated or conversion transaction, constructive sale or straddle;

· a trader in securities that has elected the mark-to-market method of accounting for your securities;

· a person liable for alternative minimum tax;

· a person who owns or is deemed to own 10% or more of our stock (by vote or value);

· a person required to accelerate the recognition of any item of gross income with respect to the common shares or GDSs as a result of such income being recognized on an applicable financial statement;

· a partnership or other pass–through entity for United States federal income tax purposes; or

· a person whose “functional currency” is not the U.S. dollar.

Furthermore, the discussion below is based upon the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations, rulings and judicial decisions thereunder as of the date hereof, and such authorities may be repealed, revoked or modified (possibly on a retroactive basis) so as to result in United States federal income tax consequences different from those discussed below. This summary does not contain a detailed description of all the United States federal income tax consequences to you in light of your particular circumstances and does not address the Medicare tax on net investment income, United States federal estate and gift taxes or the effects of any state, local or non-United States tax laws. In addition, this summary assumes that the deposit agreement governing the GDSs, and all other related agreements, will be performed in accordance with their terms.

As used herein, the term “U.S. Holder” means a beneficial owner of common shares or GDSs that is for United States federal income tax purposes:

· an individual who is a citizen or resident of the United States;

· a corporation created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

· an estate the income of which is subject to United States federal income taxation regardless of its source; or

· a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person.

If a partnership (or other entity or arrangement treated as a partnership for United States federal income tax purposes) holds the common shares or GDSs, the tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership holding the common shares or GDSs, you should consult your tax advisors.

YOU SHOULD CONSULT YOUR OWN TAX ADVISORS CONCERNING THE UNITED STATES FEDERAL INCOME TAX CONSEQUENCES TO YOU OF THE OWNERSHIP AND DISPOSITION OF COMMON SHARES OR GDSS AS WELL AS ANY CONSEQUENCES ARISING UNDER OTHER UNITED STATES FEDERAL TAX LAWS AND THE LAWS OF ANY OTHER TAXING JURISDICTION.

190

GDSs

If you hold GDSs, for United States federal income tax purposes, you generally will be treated as the owner of the underlying common shares that are represented by such GDSs. Accordingly, deposits or withdrawals of common shares for GDSs by U.S. Holders will not be subject to United States federal income tax.

Distributions on Common Shares or GDSs

Subject to the discussion under “—Passive Foreign Investment Company” below, the gross amount of distributions on our common shares or GDSs (including amounts withheld to reflect Argentine withholding taxes, if any) will be taxable as dividends to the extent paid out of our current or accumulated earnings and profits, as determined under United States federal income tax principles. Such dividends will be includable in your gross income as ordinary income on the day actually or constructively received by you, in the case of our common shares, or by the GDS Depositary, in the case of our GDSs. Such dividends will not be eligible for the dividends received deduction allowed to corporations under the Code.

Subject to applicable limitations (including a minimum holding period requirement), dividends received by non-corporate U.S. Holders from a qualified foreign corporation may be treated as “qualified dividend income” that is subject to reduced rates of taxation. A foreign corporation is treated as a qualified foreign corporation with respect to dividends paid by that corporation on common shares (or GDSs representing such common shares) that are readily tradable on an established securities market in the United States. United States Treasury Department guidance indicates that our GDSs (which are listed on the NYSE) are readily tradable on an established securities market in the United States. Thus, we believe that dividends that we pay on our GDSs to United States Holders will be potentially eligible for these reduced tax rates. However, since our common shares are not listed on an established securities market in the United States, we do not believe that dividends that we pay on our common shares that are not represented by GDSs currently meet the conditions required for these reduced tax rates. There also can be assurance that our GDSs will be considered readily tradable on an established securities market in the United States in later years. Non-corporate U.S. Holders should consult their own tax advisors regarding the application of these rules given their particular circumstances.

The amount of any dividend paid in pesos will equal the U.S. dollar value of the pesos received calculated by reference to the exchange rate in effect on the date the dividend is actually or constructively received by you, in the case of our common shares, or by the GDS Depositary, in the case of our GDSs, regardless of whether the pesos are converted into U.S. dollars. If the pesos received as a dividend are not converted into U.S. dollars on the date of receipt, you will have a tax basis in the pesos equal to their U.S. dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the pesos will be treated as United States source ordinary income or loss.

Subject to certain complex conditions and limitations (including a minimum holding period requirement) and the Foreign Tax Credit Regulations (as defined below), Argentine withholding taxes on dividends, if any, may be treated as foreign taxes eligible for credit against your United States federal income tax liability. For purposes of calculating the foreign tax credit, dividends paid on our common shares or GDSs will be treated as income from sources outside the United States and will generally constitute passive category income. However, recently issued United States Treasury regulations that apply to taxes paid or accrued in taxable years beginning on or after December 28, 2021 (the “Foreign Tax Credit Regulations”) impose additional requirements for foreign taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied. Instead of claiming a foreign tax credit, you may be able to deduct Argentine withholding taxes on dividends, if any, in computing your taxable income, subject to generally applicable limitations under United States law (including that a U.S. Holder is not eligible for a deduction for foreign income taxes paid or accrued in a taxable year if such U.S. Holder claims a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year). The rules governing the foreign tax credit and deductions for foreign taxes are complex. You are urged to consult your tax advisors regarding the Foreign Tax Credit Regulations and the availability of the foreign tax credit or a deduction under your particular circumstances.

191

To the extent that the amount of any distribution (including amounts withheld to reflect Argentine withholding taxes, if any) exceeds our current and accumulated earnings and profits for a taxable year, as determined under United States federal income tax principles, the distribution will first be treated as a tax-free return of capital, causing a reduction in the adjusted basis of our common shares or GDSs, and thereafter as capital gain recognized on a sale or exchange (as discussed below under “—Taxation of Capital Gains”). However, we do not expect to keep earnings and profits in accordance with United States federal income tax principles. Therefore, you should expect that a distribution will generally be reported as a dividend (as discussed above).

Distributions of our common shares that are received as part of a pro rata distribution to all of our shareholders generally will not be subject to United States federal income taxes.

Passive Foreign Investment Company

Based on the past and projected composition of our income and assets and the valuation of our assets, including goodwill, we do not believe we were a PFIC for United States federal income tax purposes for the taxable year ending June 30, 2022, and we do not currently expect to become a PFIC, although there can be no assurance in this regard. The determination of whether we are a PFIC is made annually. Accordingly, it is possible that we may be a PFIC in the current or any future taxable year due to changes in our asset or income composition or if our projections are not accurate. The volatility and instability of Argentina’s economic and financial system may substantially affect the composition of our income and assets and the accuracy of our projections. In addition, this determination is based on the interpretation of certain United States Treasury regulations relating to rental income, which regulations are potentially subject to different interpretation.

In general, we will be a PFIC for any taxable year in which:

· at least 75% of our gross income is passive income; or

· at least 50% of the value (generally determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income.

For this purpose, cash is generally a passive asset and passive income generally includes dividends, interest, royalties and rents (other than royalties and rents derived in the active conduct of a trade or business and not derived from a related person), annuities and gains from assets that produce passive income. If we own at least 25% by value of the stock of another corporation, we will be treated, for purposes of the PFIC tests, as owning our proportionate share of that other corporation’s assets and receiving our proportionate share of its income. If we are a PFIC for any taxable year during which you hold our common shares or GDSs, unless you make the mark-to-market election discussed below, you will be subject to special tax rules discussed below.

If we are a PFIC for any taxable year during which you hold our common shares or GDSs, you will be subject to special tax rules with respect to any “excess distributions” received and any gain realized from a sale or other disposition, including a pledge, of such common shares or GDSs. Distributions received in a taxable year that are greater than 125% of the average annual distributions received during the shorter of the three preceding taxable years or your holding period for the common shares or GDSs will be treated as excess distributions. Under these special tax rules:

· the excess distribution or gain will be allocated ratably over your holding period for the common shares or GDSs;

· the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we become a PFIC, will be treated as ordinary income; and

· the amount allocated to each other year will be subject to tax at the highest tax rate in effect for that year for individuals or corporations, as applicable, and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

192

If we are a PFIC for any taxable year during which you hold our common shares or GDSs and any of our non-United States subsidiaries is also a PFIC, you would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application of these rules. You are urged to consult your tax advisors about the application of the PFIC rules to any of our subsidiaries.

In addition, non-corporate U.S. Holders will not be eligible for reduced rates of taxation on any dividends received from us if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year. You will generally be required to file Internal Revenue Service Form 8621 if you hold our common shares or GDSs in any year in which we are classified as a PFIC.

In certain circumstances, in lieu of being subject to the rules discussed above with respect to excess distributions and realized gains, you may make an election to include gain on the stock of a PFIC as ordinary income under a mark-to-market method, provided that such stock is regularly traded on a qualified exchange. Under current law, the mark-to-market election is only available for stock traded on certain designated United States exchanges and foreign exchanges which meet certain trading, listing, financial disclosure and other requirements to be treated as a qualified exchange under applicable United States Treasury regulations. Our common shares are listed on the ByMA, which must meet the trading, listing, financial disclosure and other requirements under applicable United States Treasury regulations for purposes of the mark-to-market election, and no assurance can be given that the common shares are or will be “regularly traded” for purposes of the mark-to-market election. Our GDSs are currently listed on the NYSE, which constitutes a qualified exchange under the United States Treasury regulations, although there can be no assurance that the GDSs are or will be “regularly traded.”

If you make an effective mark-to-market election, you will include in ordinary income each year that we are a PFIC the excess, if any, of the fair market value of our common shares or GDSs at the end of the year over your adjusted tax basis in our common shares or GDSs. You will be entitled to deduct as an ordinary loss in each such year the excess, if any, of your adjusted tax basis in our common shares or GDSs over their fair market value at the end of the year, but only to the extent of the net amount previously included in income as a result of the mark-to-market election. Any gain or loss on the sale of the common shares or GDSs in a year that we are a PFIC will be ordinary income or loss, except that such loss will be ordinary loss only to the extent of the previously included net mark-to-market gain.

Your adjusted tax basis in our common shares or GDSs will be increased by the amount of any income inclusion and decreased by the amount of any deductions under the mark-to-market rules. If you make a mark-to market election, it will be effective for the taxable year for which the election is made and all subsequent taxable years unless our common shares or GDSs are no longer regularly traded on a qualified exchange or the Internal Revenue Service consents to the revocation of the election. Mark-to-market inclusions and deductions will be suspended during taxable years in which we are not a PFIC, but would resume if we subsequently become a PFIC. You are urged to consult your tax advisors about the availability of the mark-to-market election, and whether making the election would be advisable in your particular circumstances. However, because a mark-to-market election cannot be made for any lower-tier PFICs that we may own (as discussed above), you will generally continue to be subject to the special tax rules discussed above with respect your indirect interest in any such lower-tier PFIC.

In some cases, holders of common shares or GDSs in a PFIC may be able to avoid the rules described above by electing to treat the PFIC as a “qualified electing fund” under Section 1295 of the Code. This option will not be available to you because we do not intend to comply with certain calculation and reporting requirements necessary to permit you to make this election.

You are urged to consult your tax advisors concerning the United States federal income tax consequences of holding our common shares or GDSs if we are considered a PFIC in any taxable year.

Taxation of Capital Gains

Subject to the discussion under “—Passive Foreign Investment Company” above, for United States federal income tax purposes, you will generally recognize capital gain or loss on any sale, exchange or other taxable disposition of our common shares or GDSs in an amount equal to the difference between the U.S. dollar value of the amount realized for the common shares or GDSs and your tax basis in the common shares or GDSs determined in U.S. dollars. Capital gains of non-corporate U.S. Holders derived with respect to capital assets held for more than one year are eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations under the Code.

193

Any gain or loss recognized by you will generally be treated as United States source gain or loss for United States foreign tax credit purposes. Consequently, in the case of gain from the disposition of common shares or GDSs that is subject to Argentine income tax, you may not be able to benefit from the foreign tax credit for that Argentine income tax (i.e., because the gain from the disposition would be United States source), unless you can apply the credit (subject to applicable limitations) against United States federal income tax payable on other income from foreign sources. However, pursuant to the Foreign Tax Credit Regulations, any such Argentine income tax would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is derived from foreign sources). In such case, however, the non-creditable Argentine income tax may reduce the amount realized on the sale, exchange or other taxable disposition of the common shares or GDSs. You are urged to consult your tax advisors regarding the tax consequences if Argentine income tax is imposed on a disposition of common shares or GDSs, including the effect of the Foreign Tax Credit Regulations and the availability of the foreign tax credit under your particular circumstances.

Argentine Personal Assets Tax

Amounts paid on account of the Argentine Tax on Personal Assets, if any, will not be eligible as a credit against your United States federal income tax liability, but may be deductible subject to applicable limitations in the Code.

Information Reporting and Backup Withholding

In general, information reporting will apply to dividends in respect of our common shares or GDSs and the proceeds from the sale, exchange or other disposition of our common shares or GDSs that are paid to you within the United States (and in certain cases, outside the United States), unless you are an exempt recipient. A backup withholding tax may apply to such payments if you fail to provide a correct taxpayer identification number or certification of exempt status or fail to report in full dividend and interest income.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against your United States federal income tax liability provided the required information is timely furnished to the Internal Revenue Service.

Argentine Taxation

The following discussion is a summary of certain Argentine tax considerations associated with an investment in, ownership or disposition of, the common shares or the GDSs by (i) an individual holder that is resident in Argentina, (ii) an individual holder that is neither domiciled nor resident in Argentina, (iii) a legal entity organized under the laws of Argentina, (iv) a permanent establishment in Argentina of a foreign entity and (v) a legal entity that is not organized under the laws of Argentina, that does not have a permanent establishment in Argentina and is not otherwise doing business in Argentina on a regular basis. The discussion is for general information only and is based on current Argentine tax laws. Moreover, while this summary is considered to be a correct interpretation of existing laws in force as of the date of this filing, no assurance can be given that the courts or administrative authorities responsible for the administration of such laws will agree with this interpretation or that changes in such laws or interpretations will not occur.

PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISOR REGARDING THE PARTICULAR TAX CONSEQUENCES ARISING UNDER ANY TAXING JURISDICTION.

194

Income Tax

Law No. 27,430, enacted on December 27, 2017 and published in the Official Gazette on December 29, 2017, had introduced several amendments to Income Tax Law No. 20,628, among others, a corporate tax rate reduction in two phases. For fiscal years beginning on or after January 1, 2018 until December 31, 2019, there had been a reduction of the tax rate from 35% to 30%. Beginning on or after January 1, 2020 the tax rate would have been further reduced to 25%. Additionally, a withholding of 7% or 13% had been established for the fiscal years mentioned above, on the dividends distributed by local entities in favor of their shareholders provided they are resident individuals or undivided estates, or are foreign beneficiaries.

On June 16, 2021, Law 27,630 was enacted and published in the Official Gazette. This law increases corporate income tax rates for tax years beginning January 1, 2021 and onwards. The new law increases tax rates by replacing the fixed tax rate with a progressive tax scale. It also extends the 7% withholding tax rate currently in force to dividends from profits accrued in tax years beginning January 1, 2021, and thereafter.

Taxation of Dividends

Dividends distributions which source are profits generated in fiscal years beginning before January 1, 2018, whether in cash, in shares or in kind, are not subject to income tax withholding except for the application of the “Equalization Tax” described below.

An income tax withholding will be applied to the amount of dividends distributed in excess of a company’s net taxable income determined in accordance with general income tax regulations for the fiscal years preceding the date of the distribution of such dividends (the “Equalization Tax”). The legislation requires that companies withhold 35% of the amount of distributed dividends in excess of the net taxable income of such distribution, as determined in accordance with the Income Tax Law No. 20,628. Dividends distributed by an Argentine company are not subject to this tax to the extent that those dividends arise from dividend income or other distributions received by such company from other Argentine companies.

Dividend distributions made in kind (other than cash) will be subject to the same tax rules as cash dividends. Stock dividends on fully paid shares are not subject to Equalization Tax.

Equalization Tax will not be applicable on profits generated from fiscal years beginning on or after January 1, 2018.

Dividends distributions, other than stock dividends, which source are profits generated in fiscal years beginning on or after January 1, 2018, whether in cash, in shares or in kind, made by local entities to resident individuals, resident undivided estates and foreign beneficiaries are subject to a withholding tax at a rate of 7%.

Certain tax treaties contemplate the application of a ceiling tax rate on dividends (i.e. 10% on gross dividends).

Taxation of Capital Gains

Resident individuals

Capital gains obtained by resident individuals or undivided estates situated in Argentina from the sale or disposition of common shares and other securities are subject to income tax at a 15% rate on net income, unless such securities were traded in stock exchange under the supervision of the CNV, in which case an exemption applies.

Losses arising from the sale, exchange or other disposition of common shares or GDSs can be applied only to offset such capital gains arising from the sale, exchange or other disposition of these securities, for a five-year carryover period.

195

Foreign beneficiaries

Capital gains of Argentine source (as it is the case of both IRSA’s GDSs and shares) obtained by non-Argentine individuals or non-Argentine entities from the sale, exchange or other disposition of shares are subject to income tax at a 15% rate on the net capital gain or at a 13.5% rate on the gross price at the seller’s election. Notwithstanding, Law No. 27,430 established an exemption for foreign beneficiaries participating in the sale of publicly traded shares traded in stock exchanges under the supervision of the CNV. Said Law also established an exemption for capital gains derived from the sale, exchange or other disposition of share certificates issued abroad that represent shares issued by Argentine companies (i.e. GDRs). The exemptions will apply only if the foreign beneficiaries do not reside in, and the funds do not arise from, “non-cooperating” jurisdictions for tax transparency purposes.

The sale of an equity interest in a foreign entity could represent a taxable indirect transfer of Argentine assets (including shares), if (i) the value of the Argentine assets exceed 30% of the transaction’s overall value, and (ii) the equity interest sold (in the foreign entity) exceeds 10%. The tax will also be due if any of these thresholds were met during the twelve month period prior to the sale.

The applicable rate is generally 15% on the net capital gain or at a 13.5% rate on the gross price at the seller’s election, of the proportional value that corresponds to the Argentine assets.

The indirect transfer of Argentine assets within the same economic group would also not trigger taxation, provided the requirements set by regulations have been met.

Argentine entities

Capital gains obtained in tax years beginning from January 1, 2022 by Argentine entities (in general entities organized or incorporated under Argentine law, certain traders and intermediaries, local branches of non-Argentine entities, sole proprietorships and individuals carrying on certain commercial activities in Argentina) derived from the sale, exchange or other disposition of shares or GDSs are subject to the following tiered structure of corporate income tax rates for different brackets of earnings:

Annual taxable income (ARS)	Tax due on lower limit (ARS)	Marginal rate on the excess of the lower limit
0 to 7,604,948.57	0	25%
Over 7,604,948.57 up to 76,049,485.68	1,901,237.14	30%
Over 76,049,485.68	22,434,598.28	35%

Losses arising from the sale, exchange or other disposition of shares or GDSs can be applied only to offset such capital gains arising from the sale, exchange or other disposition of these securities, for a five-year carryover period.

WE RECOMMEND PROSPECTIVE INVESTORS TO CONSULT THEIR OWN TAX ADVISOR REGARDING THE PARTICULAR TAX CONSEQUENCES CONCERNING THE SALE OR OTHER DISPOSITIONS OF SHARES AND GDSs.

Value Added Tax

The sale, exchange, disposition, or transfer of common shares or GDSs is not subject to value added tax. Dividend distributions are not levied with value added tax either.

196

Tax on Personal Assets

Argentine entities, such as us, have to pay the Tax on Personal Assets (“TAP”) corresponding to Argentine and foreign individuals and foreign entities for the holding of our shares at December 31 of each year. The applicable tax rate is 0.50% for fiscal years starting in 2019, inclusive. Notwithstanding the foregoing, the tax shall not be paid if it is equal to or less than ARS 250. The tax is levied on the proportional net worth value (“valor patrimonial proporcional” in Spanish), or the book value, of the shares arising from the last balance sheet of the Argentine entity calculated under Argentine GAAP. Pursuant to the TAP Law, the Argentine company is entitled to seek reimbursement of such paid tax from the applicable Argentine domiciled individuals and/or foreign domiciled shareholders.

Turnover Tax

The gross turnover tax is a local tax; therefore, the rules of the relevant provincial jurisdiction should be considered, which may levy this tax on the purchase and sale, exchange or other disposition of common shares or GDSs, and/or the collection of dividends at an average rate between 6% and 10%, unless an exemption is applicable. In the particular case of the City of Buenos Aires, any transaction involving common shares and/or the collection of dividends and revaluations is exempt from this tax.

To date, there is no withholding regime provided for foreign holders of common shares and GDSs.

To the extent that the activities are carried out in more than one jurisdiction, there is a Multilateral Agreement that establishes the way to distribute the taxable income among those jurisdictions.

Stamp Tax

Stamp taxes may apply in the City of Buenos Aires and in certain Argentine provinces in case transfer of common shares or GDSs is performed or executed in such jurisdictions by means of written agreements.

Other Taxes

There are no Argentine federal inheritance or succession taxes applicable to the ownership, transfer or disposition of our common shares or GDSs. The province of Buenos Aires established a tax on free transmission of assets, including inheritance, legacies, donations, etc. Free transmission of our shares could be subject to this tax at rates that vary from 1.6% to 9.5%, depending on the value of the transferred assets and the relationship between the transferor and the transferee.

In the case of litigation regarding the shares before a court of the City of Buenos Aires, a 3% court fee would be charged, calculated on the basis of the claim.

Tax treaties

Argentina has signed tax treaties for the avoidance of double taxation currently in force with Australia, Belgium, Bolivia, Brazil, Canada, Chile, Denmark, Finland, France, Germany, Italy, Mexico, the Netherlands, Norway, Qatar, Russia, Spain, Sweden, Switzerland, the United Kingdom, United Arab Emirates and Uruguay. There is currently no tax treaty or convention in effect between Argentina and the United States. It is not clear when, if ever, a treaty will be ratified or entered into effect. As a result, the Argentine tax consequences described in this section will apply, without modification, to a holder of our common shares or GDSs that is a United States resident. Foreign shareholders located in certain jurisdictions with a tax treaty in force with Argentina may be (i) exempted from the payment of the personal assets tax and (ii) entitled to apply for reduced withholding tax rates on payments to be made by Argentine parties.

G. Dividends and Paying Agents

This Section is not applicable.

H. Statement by Experts

This section is not applicable.

197

I. Documents on display

We file annual and current reports and other information with the SEC. You may read and copy any document we file with the SEC at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The SEC maintains a website at http://www.sec.gov that contains reports and other information regarding issuers that file electronically with the SEC.

Our website is www.irsa.com.ar. The information contained in our website does not form part of this Annual Report. Any such request or a copy of these filings at no cost, should be directed to us at our principal office at Carlos M. Della Paolera 261, 9th Floor (C1001ADA), City of Buenos Aires, Argentina, or by e-mail at ir@irsa.com.ar.

We are also required periodically to furnish certain information in Spanish with the CNV, the BYMA and the MAE such as quarterly and annual reports and notices of material events (hechos relevantes). All such reports and notices are available at the website of the CNV (http://www.argentina. gob.ar/cnv), at BYMA through the website of the Bolsa de Comercio de Buenos Aires (http://www.bolsar.info) and the website of the MAE (http://www.mae.com.ar). The documents filed with the CNV, the BYMA and the MAE are not a part of this Annual Report and are not incorporated by reference herein.

J. Subsidiary Information

This section is not applicable.

ITEM 11. Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business, we are exposed to foreign exchange risk, interest rate risks and other price risk, primarily related to changes in exchange rates and interest rates. We manage our exposure to these risks through the use of various financial instruments, none of which are entered into for trading purposes. We have established policies and procedures governing the use of financial instruments, specifically as they relate to the type and volume of such financial instruments. For further information on our market risks, please see Note 5 to our Audited Consolidated Financial Statements.

ITEM 12. Description of Securities Other than Equity Securities

A. Debt Securities

This item is not applicable

B. Warrants and Rights

This item is not applicable

C. Other Securities

This item is not applicable

D. American Depositary Shares

The Bank of New York Mellon, as depositary for the GDSs (the “Depositary”) collects its fees for delivery directly from investors depositing shares or surrendering GDSs for the purpose of withdrawal. The Depositary also collects taxes and governmental charges from the holders of GDSs. The Depositary collects these fees and charges by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees (after attempting by reasonable means to notify the holder prior to such sale).

The Depositary has agreed to reimburse or pay on our behalf, certain reasonable expenses related to our GDS program and incurred by us in connection with the program (such as NASDAQ listing fees, legal and accounting fees incurred with preparation of Form 20-F and ongoing SEC compliance and listing requirements, distribution of proxy materials, investor relations expenses, etc).

The amounts the Depositary reimbursed or paid are not perforce related to the fees collected by the depositary from GDSs holders.

We agree to pay the fees, reasonable expenses and out-of-pocket charges of the Depositary and those of any registrar only in accordance with agreements in writing entered into between the Depositary and the Company from time to time. The Depositary shall present its statement for such charges and expenses to the Company once every three months. The charges and expenses of the custodian are for the sole account of the Depositary.

The following charges shall be incurred by any party depositing or withdrawing common shares or by any party surrendering receipts or to whom receipts are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Issuer or an exchange regarding the receipts or deposited securities or a distribution of receipts), whichever applicable: (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of common shares generally on our common share register or foreign registrar and applicable to transfers of common shares to the name of the Depositary or its nominee or the custodian or its nominee on the making of deposits or withdrawals hereunder, (3) such cable, telex and fax transmission expenses as are expressly provided in the deposit agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency (5) a fee of USD 5.00 or less per 100 GDS (or portion), (6) a fee of USD 0.02 or less per GDS (or portion) for any cash distribution made pursuant to the deposit agreement, and (7) a fee for the distribution of securities, such fee being in an amount equal to the fee for the excecution and delivery of GDS referred to above which would have been charged as a result of the deposit of such securities, but wich securities are instead distributed by the Depositary to owners.

198

PART II

ITEM 13. Defaults, Dividend Arrearages and Delinquencies

This item is not applicable.

ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds

A. Fair Price Provision

At our annual meeting held on October 30, 2000, our shareholders approved an amendment to our bylaws which included the adoption of a fair price provision (the “Fair Price Provision”). On March 8, 2002 our shareholders decided to make a new amendment to Article Nine of our bylaws including, among others, an increase in the minimum percentage of capital obliged to comply with the Fair Price Provision, from twenty percent (20%) to thirty five percent (35%), according to Decree No. 677/2001. On October 10, 2007, our shareholders decided to make a new amendment to Article Nine of our bylaws, to include the control concept under Decree No. 677/2001, which provides for the effective control regularly held in addition to the legal control.

The following description is a summary of the main provisions of the Fair Price Provision, which constitutes Article Nine of our bylaws and does not contain a description of all of the terms of the Fair Price Provision. The Fair Price Provision prohibits a party seeking to acquire, directly or indirectly, either control or (together with such party’s other holdings) thirty five percent (35%) or more of our capital stock without complying with the procedural and price requirements described below. Acquisitions made in violation of the Fair Price Provision are deemed ineffective against us and will not be registered in our share registry. Common shares acquired in violation of the Fair Price Provision shall have no voting or equity rights until the Fair Price Provision has been complied with. The Fair Price Provision applies to transactions involving shares of our common stock and any securities convertible in shares of our common stock, including, without limitation, convertible debentures and bonds and our GDRs. The Fair Price Provision excludes certain acquisitions of common shares in certain limited circumstances.

The Fair Price Provision provides that a party seeking to acquire, directly or indirectly, control of our company or thirty five percent (35%) or more of our capital stock shall be required to make a public tender offer for all of the outstanding common stock of us and any shares of common stock into which outstanding securities of ourcompany are presently convertible or exchangeable in accordance with the procedural and price terms of the Fair Price Provision and in accordance with applicable law. For purposes of the thirty five percent threshold contained in the Fair Price Provision parties acting in concert or which are under common control or administration are deemed a single party.

There are cases excluded from the tender offer requirements:

· acquisitions by existing shareholders or by those exercising control over shares or convertible securities in accordance with CNV Rules; and

· holdings of more than 35%, which derive from the distribution of common shares or dividends paid in shares approved by the shareholders, or the issuance of common shares as a result of a merger approved by the shareholders; in both cases, the excess holding shall be disposed of within 180 days of its registration in the relevant shareholder’s account, or prior to the holding of our shareholders meeting, whatever occurs first.

The Fair Price Provision requires the offering party to notify use of the tender offer simultaneously with its filing of the public tender offer with the CNV. The notice to us is required to set forth all of the terms and conditions of any agreement that the offering party has made with any other of our shareholders with respect to the proposed transaction and to provide, among other things, the following information:

199

· the identity and nationality of the offering party and, in the event the offer is made by a group, the identity of each member of the group;

· the terms and conditions of the offering, including the price, the tender offer period and the requirements for accepting the tender offer;

· accounting documentation required by Argentine law relating to the offering party;

· details of all prior acquisitions by the offering party of common shares or securities convertible into shares of our capital stock.

We will distribute the information provided by the offering party to our shareholders.

The CNV Rules require that transactions which cause a person’s holdings of capital stock of a registered Argentine company, to hold 5% or more of the voting power, should be immediately notified to the CNV. Thereafter, every change in the holdings that represents a multiple of 5% of the voting power should also be notified.

The Fair Price Provision requires that the consideration paid in the tender offer be paid in cash and that the price paid for each common share in the tender offer be the same and not less than the highest price per common share derived from the five following alternative valuation methods:

· the highest price per share of our common stock paid by the offering party, or on behalf of the offering party, for any acquisition of shares or convertible securities within the 2 years prior to the commencement of the tender offer;

· the highest closing selling price of a share of our common stock on the BASE during the thirty day period immediately preceding the commencement of the tender offer;

· the highest price resulting from the calculations made according to the provisions of (i) and (ii) above multiplied by a fraction the numerator of which is such highest price and the denominator of which is the lowest closing price of a share of our common stock on the BASE during the two-year period prior to the period referred to in sub-sections (i) or (ii), as applicable;

· our aggregate net earnings per common share during our preceding four completed fiscal quarters prior to the commencement of the tender offer, multiplied by our highest price to earnings ratio during the two-year period immediately preceding the commencement of the tender offer. Such multiples shall be determined considering the average closing selling price of our common stock in the BASE, and our aggregate net income from our preceding four completed fiscal quarters; and,

· the book value per share of our common stock at the time the tender offer is commenced, multiplied by the highest ratio determined by a fraction the numerator of which is the closing selling price of a share of our common stock on the BASE on each day during the two year period prior to the commencement of the tender offer and the denominator of which is the latest known book value per share of our common stock on each such date.

200

B. This section is not applicable.

C. This section is not applicable.

D. This section is not applicable.

E. This section is not applicable.

ITEM 15. Controls and procedures

A. Disclosure Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial and Administrative Officer, to allow our management to make timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective. In connection with the preparation of this Annual Report on Form 20-F, we carried out an evaluation under the supervision and with the participation of members of our management team, including our Chief Executive Officer and Chief Financial and Administrative Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2022. Based upon this evaluation our Chief Executive Officer and Chief Financial and Administrative Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 20-F were effective at the reasonable assurance level.

B. Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate Internal Control over Financial Reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our Internal Control over Financial Reporting includes a series of procedures designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external purposes, in accordance with International Financial Reporting Standards and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated Financial Statements in accordance with International Financial Reporting Standards and that a company’s receipts and expenditures are being made only in accordance with authorizations of our management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our Consolidated Financial Statements.

Because of its inherent limitations, Internal Control over Financial Reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

Management assessed the effectiveness of our Internal Control over Financial Reporting as of June 30, 2022. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control–Integrated Framework (2013). Based on this evaluation, management concluded that our Internal Control over Financial Reporting was effective as of June 30, 2022.

201

C. Attestation Report of the Registered Public Accounting Firm

The effectiveness of the Company’s internal control over financial reporting as of June 30, 2022 has been audited by Price Waterhouse & Co S.R.L, Buenos Aires Argentina (PCAOB ID 1349)- member firm of PricewaterhouseCoopers International Limited, an independent registered public accounting firm, as stated in their report which appears herein.

D. Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the fiscal year ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16. Reserved

ITEM 16. A. Audit Committee Financial Expert

Pursuant to the former applicable rules regarding the Capital Markets Law (formerly the Transparency Decree) and the applicable Rules of the CNV at such moment, our Board of Directors has established on May 2004 an Audit Committee. The main functions of the Audit Committee are to assist the Board of Directors in performing their duty of exercising due care, diligence and competence in issues relating to us, specifically in the enforcement of the accounting policy and in the issue of accounting and financial information, the management of business risk and of internal control systems, the conduct and ethical soundness of the company’s business, the supervision of the integrity of our financial statements, the compliance by our company with the legal provisions, the independence and capability of the independent auditor and the performance of the internal audit function of our company and of the external auditors. Also, according to the applicable regulations, we may request to our Audit Committee to render its opinion in certain transactions, and its conditions, as is the case of related party transactions, as may be reasonably considered adequate according to normal market conditions.

As from December 12, 2019, our Board of Directors appointed the members of the Audit Committee which are Oscar Pedro Bergotto, Liliana Luisa De Nadai and Maria Julia Bearzi, all of them as independent members. María Julia Bearzi is the financial expert in accordance with the relevant SEC rules. We have a fully independent Audit Committee as per the standard provided in Rule 10 (A)-3(B) (1).

ITEM 16. B. Code of Ethics

We have adopted a code of ethics that applies to our directors, officers and employees. Our code of ethics is posted on our website www.irsa.com.ar. On July 25, 2005, our Code of Ethics was amended by our Board of Directors. The amendment was reported in a report on Form 6-K on August 1, 2005.

If we make any substantive amendment to the code of ethics or grant any waivers, including any implicit waiver to any of its provision we will disclose the nature of such amendment or waiver in a report on Form 6-K or in our next Annual Report and we will post it in our website.

ITEM 16. C. Principal Accountant Fees and Services

Audit Fees

During the fiscal years ended June 30, 2022 and 2021, we were billed a total amount of ARS 59.8 million and ARS 62.4 million respectively in the Operation Center in Argentina and NIS 0.1 million for the fiscal year 2021, in the Operation Center in Israel, for professional services rendered by our principal accountants for the audit of our annual Audited Consolidated Financial Statements, performance of the audit of internal controls over financial reporting of the company and other services normally provided in connection with regulatory filings or engagements.

202

Audit-Related Fees

During the fiscal year ended June 30, 2022 and 2021 we were billed a total amount of ARS 5.1 million and ARS 28.1 million in the Operation Center in Argentina for professional services rendered by our principal accountants.

Tax Fees

During the fiscal years ended June 30, 2022 and 2021, we were billed a total amount of ARS 0.3 and ARS 0.0 million, respectively, for professional services rendered by our principal accountants for tax compliance, tax advice and tax planning.

All Other Fees

During the fiscal year ended June 30, 2022 and June 30, 2021 no fees related to other services were billed by our principal accountants.

Audit Committee Pre-Approval Policies and Procedures

Audit Committee pre-approves all services and fees provided by the external auditors to ensure auditors’ independence. One of the main tasks of the Audit Committee is to give it opinion in relation to the appointment of the external auditors, proposed by the Board of Directors to the General Shareholder’s Meeting. In order to accomplish such task, the Audit Committee shall:

· Require any additional and complementary documentation related to this analysis.

· Verify the independence of the external auditors;

· Analyze different kinds of services that the external auditor would provide to the company. This description must also include an estimate of the fees payable for such services, specifically in order to maintain the principle of independence;

· Inform the fees billed by the external auditor, separating the services related to the audit services and other special services that could be not included in the audit services previously mentioned.

· Analyze and supervise the working plan of the external auditors considering the business’ reality and the estimated risks;

· Propose adjustments (if necessary) to such working plan;

· Hold meetings with the external auditors in order to: (a) analyze the difficulties, results and conclusions of the proposed working plan; (b) analyze eventual possible conflicts of interests, related party transactions, compliance with the legal framework and information transparency; and

· Evaluate the performance of external auditors and their opinion regarding our Financial Statements.

ITEM 16. D. Exemption from the Listing Standards for Audit Committees

This section is not applicable.

ITEM 16. E. Purchase of Equity Securities by the Issuer and its Affiliates

On March 11, 2022, our Board of Directors has decided to establish the terms and conditions for the acquisition of the common shares issued by the Company (the “2022 Plan”), under the terms of Article 64 of the Capital Markets Law and the rules of the CNV, for a maximum amount of the investment up to ARS 1,000 million. Such repurchases will be made with realized and liquid earnings pending of distribution of the Company and/or freely available reserves and/or facultative reserves.

203

As of September 21, 2022, we finalized the 2022 Plan having repurchased a total of 9,419,623 shares, representing approximately 99.51% of the approved program and 1.16% of the share capital.

Period	Total Number of Common Shares Purchased(1)		Average Price Paid per Share		Total Number of ADS’s Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of the Publicly Announced Plan (2)		Maximum amount that may yet be purchased under the plan
			(ARS)				(USD)				(In million of ARS)
03/15 – 03/31/2022		339,622		96.83		—		—		339,622		967.1
04/01 – 04/30/2022		408,902		98.08		—		—		408,902		927.0
05/01 – 05/31/2022		438,704		96.29		—		—		438,704		884.8
06/01 – 06/30/2022		2,621,244		88.94		—		—		2,621,244		651.6
07/01 – 07/31/2022		2,607,793		105.06		—		—		2,607,793		377.6
08/01 – 08/31/2022		2,079,358		122.76		—		—		2,079,358		122.4
09/01 – 09/21/2022		924,000		127.11		—		—		924,000		4.9
Total		9,419,623		105.64		—		—		9,419,623

 ________________

(1)	As of the settlement date of the transaction.
(2)	Correspond to the sum of common shares and ADS’s purchased. Each ADS represents 10 common shares.

As of June 30, 2022, we own our shares in an amount equal to 0.7% of our capital stock, and after completion of the 2022 plan we owned our shares in an amount equal to 1.4% of our capital stock.

ITEM 16. F. Change in Registrant’s Certifying Accountant

This section is not applicable.

ITEM 16. G. Corporate Governance

Compliance with NYSE listing standards on corporate governance

NYSE and Argentine Corporate Governance Requirements

Our corporate governance practices are governed by the applicable Argentine law; particularly, the Argentine Corporation Law, Capital Markets Law Nº 26,831 and CNV Rules, as well as by our bylaws. We have securities that are registered with the SEC and are NYSE, and is therefore subject to corporate governance requirements applicable to NYSE-listed non-U.S. companies (a “NYSE-listed” company).

NYSE-listed non-U.S. companies that are categorized as “Foreign Private Issuers” may, in general, follow their home country corporate governance practices in lieu of most of the new NYSE corporate governance requirements (the “NYSE Sections”) codified in Section 303A of the NYSE’s Listed Company Manual. However, Foreign Private Issuers must comply with NYSE Sections 303A.06, 303A.11 and 303A.12(b) and 303A.12(c). Foreign Private Issuers must comply with Section 303A.06 prior to July 31, 2005 and with Sections 303A.11 and 303A.12(b) prior to the first annual meeting of shareholders held after January 15, 2004, or by October 31, 2004.

204

NYSE Section 303A.11 requires that Foreign Private Issuers disclose any significant ways in which their corporate governance practices differ from U.S. companies under NYSE standards. A Foreign Private Issuer is simply required to provide a brief, general summary of such significant differences to its U.S. investors either 1) on the company’s website (in English) or 2) in Form 20-F as distributed to their U.S. investors. In order to comply with Section 303A.11, we have prepared and have updated the comparison in the table below.

The most relevant differences between our corporate governance practices and NYSE standards for listed companies are as follows:

NYSE Standards for U.S. companies Listed Companies Manual Section 303.A	IRSA’s Corporate Practices
Section 303A.01 A NYSE-listed company must have a majority of independent directors on its Board of Directors.	We follow Argentine law which does not require that a majority of the Board of Directors be comprised of independent directors. Argentine law instead requires that public companies in Argentina have a sufficient number of independent directors to be able to form an Audit Committee of at least three members, the majority of which must be independent pursuant to the criteria established by CNV Rules
Section 303A.02 This section establishes general standards to evaluate directors’ independence (no director qualifies as “independent” unless the Board of Directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the company), and emphasizes that the concern is independence from management. The board is also required to express an opinion with regard to the independence or lack of independence, on a case by case basis, of each individual director.	CNV standards for purposes of identifying an independent director are substantially similar to NYSE’s standards. CNV standards provide that independence is required with respect to the company itself and to its shareholders with direct or indirect material holdings (35% or more). To qualify as an independent director, such person must not perform executive functions within the company. Close relatives of any persons who would not qualify as “independent directors” shall also not be considered “independent.” When directors are appointed, each shareholder that nominates a director is required to report at the meeting whether or not such director is independent.
Section 303A.03 Non-management directors must meet at regularly scheduled executive meetings not attended by management.	Neither Argentine law nor our by-laws require that any such meetings be held. Our Board of Directors as a whole is responsible for monitoring the company’s affairs. In addition, under Argentine law, the Board of Directors may approve the delegation of specific responsibilities to designated directors or non-director managers of a company. Also, it is mandatory for public companies to form a supervisory committee (composed of syndics) which is responsible for monitoring legal compliance by a company under Argentine law and compliance with its by-laws.
Section 303A.05(a) Listed companies shall have a “Compensation Committee” comprised entirely of independent directors.	Neither Argentine law nor our by-laws require the formation of a “Compensation Committee.” Under Argentine law, if the compensation of the members of the Board of Directors and the supervisory committee is not established in the by-laws of a company, it should be determined at the shareholders meeting.

205

NYSE Standards for U.S. companies Listed Companies Manual Section 303.A	IRSA’s Corporate Practices
Section 303A.05(b). The “Compensation Committee” shall have a written charter addressing the committee’s purpose and certain minimum responsibilities as set forth in Section 303A.05(b)(i) and (ii).	Neither Argentine law nor our by-laws require the formation of a “Compensation Committee.”
Section 303A.06 Listed companies must have an “Audit Committee” that satisfies the requirements of Rule 10 A-3 under the 1934 Exchange Act (the “Exchange Act”). Foreign private issuers must satisfy the requirements of Rule 10 A-3 under the Exchange Act as of July 31, 2005.	Pursuant to the Capital Markets Law and the CNV Rules, from May 27, 2004, we have appointed an “Audit Committee” composed of three of the members of the Board of Directors. Since December 21, 2005 all of its members are independent as per the criteria of Rule 10 A-3 under the Exchange Act.
Section 303A.07(a) The Audit Committee shall consist of at least three members. All of its members shall be financially literate or must acquire such financial knowledge within a reasonable period and at least one of its members shall have experience in accounting or financial administration.	In accordance with Argentine law, a public Company must have an Audit Committee with a minimum of three members of the Board of Directors, the majority of which shall be independent pursuant to the criteria established by the CNV. There is no requirement related to the financial expertise of the members of the Audit Committee. However, our Audit Committee has a financial expert. The committee creates its own written internal code that addresses among others: (i) its purpose; (ii) an annual performance evaluation of the committee; and (iii) its duties and responsibilities.

ITEM 16. H. Mine Safety Disclosures

This section is not applicable.

ITEM 16. I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

This section is not applicable.

206

PART III

A. Financial Statements

We have responded to Item 18 in lieu of responding to this Item.

B. Financial Statements

Reference is made to pages F-1 through F-87

Index to Financial Statements (see page F-1).

C. Exhibits

INDEX OF EXHIBITS

Exhibit No.	Description of Exhibit
1.1	Amended and restated “Estatutos” of the registrant, which serve as the registrant’s articles of incorporation and bylaws, and an English translation thereof.
2.1 (1)	Deposit Agreement among us, The Bank of New York Mellon, as Depositary, and the holders from time to time of Global Depositary Receipts issued there under.
2.2 (18)	Warrant Agent Agreement dated as of April 29, 2021, between IRSA Inversiones y Representaciones Sociedad Anónima, and Computershare, Inc. and Computershare Trust Company N.A., collectively as warrant agent.
2.3	Indenture, dated March 23, 2016, between IRSA Propiedades Comerciales S.A. as Issuer, The Bank of New York Mellon as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent, and Banco Santander Río S.A. as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina, with respect to IRSA Propiedades Comerciales S.A.’s USD500,000,000 Global Note Program, pursuant to which USD360,000,000 aggregate principal amount of IRSA Propiedades Comerciales S.A.’s 8.750% Notes due 2023, Series No. 2, were issued).
2.4	First Supplemental Indenture, dated March 23, 2016, between IRSA Propiedades Comerciales S.A., as Issuer and The Bank of New York Mellon, as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent, The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent and Luxembourg Transfer Agent and Banco Santander Río S.A., as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina to the Indenture, dated March 23, 2016, between IRSA Propiedades Comerciales S.A. as Issuer, The Bank of New York Mellon as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent, and Banco Santander Río S.A. as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina, with respect to IRSA Propiedades Comerciales S.A.’s USD500,000,000 Global Note Program, pursuant to which USD360,000,000 aggregate principal amount of IRSA Propiedades Comerciales S.A.’s 8.750% Notes due 2023, Series No. 2, were issued.
2.5	Second Supplemental Indenture, dated as of May 16, 2022, among IRSA Inversiones y Representaciones Sociedad Anónima, IRSA Propiedades Comerciales S.A., The Bank of New York Mellon, as Trustee, and Banco Santander Río S.A., as representative of the Trustee in Argentina.
2.6	Indenture between IRSA Inversiones y Representaciones Sociedad Anónima, as Issuer, The Bank of New York Mellon as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent, and Banco Santander Argentina S.A. as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina, dated as of July 8, 2022, pursuant to which US$171,202,815 of 8.750% Senior Notes due 2028 were issued.
4.1 (2)	Agreement for the exchange of Corporate Service between us, IRSA and Cresud dated June 30, 2004.

207

Exhibit No.	Description of Exhibit
4.2 (4)	English translation of the Amendment to the Agreement for the exchange of Corporate Service between us, IRSA and Cresud dated August 23, 2007.
4.3 (5)	English translation of the Second Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement, dated August 14, 2008.
4.4 (6)	English translation of the Third Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement, dated November 27, 2009.
4.5 (7)	English translation of the Amendment to the Agreement for the exchange of Corporate Service between us, IRSA and Cresud, dated March 12, 2010.
4.6 (8)	English translation of the Amendment to the Agreement for the exchange of Corporate Service between us, IRSA and Cresud, dated July 11, 2011.
4.7 (9)	English translation of the Fifth Agreement for the implementation of Amendments to the Corporate Services Master Agreement, October 15, 2012.
4.8 (10)	English translation of the Sixth Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated November 12, 2013.
4.9 (11)	English translation of the Second Amendment to the exchange of Operating Services Agreement between the Company, Cresud and Alto Palermo, dated February 24, 2014.
4.10 (12)	English translation of the Seventh Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated February 18, 2015.
4.11 (13)	English translation of the Eighth Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated November 12, 2015.
4.12 (14)	English translation of the Ninth Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated May 5, 2017.
4.13 (15)	English translation of the Tenth Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated June 29, 2018.
4.14 (16)	English translation of the Eleventh Agreement for the Implementation of the Amendment to the Corporate Services Master Agreement dated June 28, 2019.
4.15 (17)	English translation of the Twelfth Agreement for the Implementation of the Amendment to the Agreement for the Exchange of Corporate Services between us, IRSA and Cresud, dated June 30, 2020.
4.16 (19)	English translation of the Thirteenth Agreement for the Implementation of the Amendment to the Agreement for the Exchange of Corporate Services between us, IRSA and Cresud, dated June 30, 2021.
4.17	English translation of the Fourteenth Agreement for the Implementation of the Amendment to the Agreement for the Exchange of Corporate Services between IRSA and Cresud, dated July 12, 2022.
8.1	List of Subsidiaries.
11.1 (3)	Code of Ethics of the Company.
12.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act 2002.
12.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act 2002.
13.1	Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
13.2	Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1	Consent of independent appraiser Newmark.
99.2	Summary of investment properties by type as of June 30, 2022 (in accordance with Regulation S-X 12-28 (1))

208

(1)	Incorporated herein by reference to the same-numbered exhibit to the registrant’s registration statement on Form 20-F (File N° 000-30982).
(2)	Incorporated herein by reference to the registrant’s registration statement on Form 6-K (SEC File N° 000-30982).
(3)	Incorporated herein by reference to the registrant’s registration statement on Form 6-K reported on August 1, 2005.
(4)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 128 0-30982) filed with the SEC on December 27, 2007.
(5)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 128 0-30982) filed with the SEC on December 30, 2008.
(6)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on December 30, 2009.
(7)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on December 30, 2010.
(8)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on December 28, 2011.
(9)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 26, 2012.
(10)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 31, 2014.
(11)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on November 17, 2015.
(12)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on November 17, 2015.
(13)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on November 1, 2016.
(14)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 31, 2017.
(15)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 31, 2018.
(16)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 31, 2019.
(17)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on November 16, 2020.
(18)	Incorporated by reference to the registrant’s registration statement on Form 8-A filed on May 26, 2021.
(19)	Incorporated herein by reference to the Annual Report on Form 20-F (File N° 1280-30982) filed with the SEC on October 20, 2021.

209

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

	IRSA Inversiones y Representaciones Sociedad Anónima
Date: October 26, 2022	By:	/s/ Matías I. Gaivironsky
		Name Matías I. Gaivironsky
		Title Chief Financial and Administrative Officer

210

Index

Report of Independent Registered Public Accounting Firm	F-2
Glossary	F-3
Consolidated Statements of Financial Position	F-4
Consolidated Statements of Income and Other Comprehensive Income	F-5
Consolidated Statements of Changes in Shareholders’ Equity	F-6
Consolidated Statements of Cash Flows	F-9
Notes to Consolidated Financial Statements	F-10
Note 1 – The Group’s business and general information	F-10
Note 2 – Summary of significant accounting policies	F-11
Note 3 – Significant judgments, key assumptions and estimates	F-32
Note 4 – Acquisitions and dispositions	F-33
Note 5 – Financial risk management and fair value estimates	F-34
Note 6 – Segment information	F-39
Note 7 – Information about the main subsidiaries	F-44
Note 8 – Investments in associates and joint ventures	F-47
Note 9 – Investment properties	F-52
Note 10 – Property, plant and equipment	F-57
Note 11 – Trading properties	F-57
Note 12 – Intangible assets	F-58
Note 13 – Right-of-use assets	F-58
Note 14 – Financial instruments by category	F-59
Note 15 – Trade and other receivables	F-63
Note 16 – Cash flow information	F-64
Note 17 – Shareholders’ Equity	F-66
Note 18 – Trade and other payables	F-68
Note 19 – Provisions	F-68
Note 20 – Borrowings	F-69
Note 21 – Taxes	F-71
Note 22 – Leases	F-75
Note 23 – Revenues	F-75
Note 24 – Expenses by nature	F-76
Note 25 – Cost of goods sold and services provided	F-76
Note 26 – Other operating results, net	F-77
Note 27 – Financial results, net	F-77
Note 28 – Earnings per share	F-77
Note 29 – Employee benefits and share-based payments	F-78
Note 30 – Related party transactions	F-79
Note 31 – Foreign currency assets and liabilities	F-84
Note 32 – Results from discontinued operations	F-85
Note 33 – Other relevant events of the year	F-86
Note 34 – Subsequent Events	F-87

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of

IRSA Inversiones y Representaciones Sociedad Anónima

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of IRSA Inversiones y Representaciones Sociedad Anónima and its subsidiaries (the “Company”) as of June 30, 2022 and 2021, and the related consolidated statements of income and other comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended June 30, 2022, including the related notes and the summary of investment properties by type as of June 30, 2022 listed in the index appearing under Item 19 (99.2)  (collectively referred to as the “consolidated financial statements”).  We also have audited the Company’s internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2022 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. 

v 

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. 

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other procedures as we considered necessary in the circumstances.  We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (i)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Level 3 Investment Properties Valued Using Discounted Cash Flows

As described in Note 9 to the consolidated financial statements, the Company used a discounted cash flow model to value its Level 3 investment properties, which account for approximately 29% of the Company’s AR$ 293,294 million in investment properties at June 30, 2022. These properties are valued using assumptions that management believes a hypothetical market participant would use to determine a current transaction price. The significant assumptions used by management to value these investment properties included determining appropriate discount rates and projecting macroeconomic variables such as inflation, exchange rates and gross domestic product. These valuation techniques require management to make estimates and judgments regarding the future behavior of multiple interrelated variables and changes in these assumptions could have a significant impact on the determination of the fair value of these properties.

The principal consideration for our determination that performing procedures relating to the Level 3 investment properties valued using a discounted cash flows method is a critical audit matter is the significant judgment by management to determine the fair value of these properties due to the use of a valuation model that included significant assumptions related to the determination of discount rates and projecting macroeconomic variables such as inflation, exchange rates and gross domestic product; this in turn led to a high degree of auditor subjectivity and judgment to evaluate the audit evidence obtained related to the valuation, and this audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of Level 3 investment properties valued using a discounted cash flows method, including controls over the Company’s methods, significant assumptions used and data. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in developing an independent range of values for all significant assumptions and comparison of management’s estimate to the independently developed ranges. Developing the independent estimate involved testing the completeness and accuracy of data provided by management and evaluating management’s assumptions related to future behavior of certain macroeconomic variables, such as inflation, exchange rates and gross domestic product, and independently developing the discount rate assumption.

/s/ PRICE WATERHOUSE & Co. S.R.L

(Partner)

/s/ Carlos Javier Brondo

Buenos Aires, Argentina

October 25, 2022

We have served as the Company’s auditor since 1992.

F-2

Glossary

The following are not technical definitions but help the reader to understand certain terms used in the wording of the notes to the Group’s Consolidated Financial Statements.

Terms	Definitions
ARCOS	Arcos del Gourmet S.A.
BACS	Banco de Crédito y Securitización S.A.
BCRA	Central Bank of the Argentine Republic
BHSA	Banco Hipotecario S.A.
BYMA	Buenos Aires Stock Exchange
Clal	Clal Holdings Insurance Enterprises Ltd.
CNV	Securities National Commission
CODM	Chief Operating Decision Maker
Condor	Condor Hospitality Trust Inc.
CPF	Collective Promotion Funds
CPI	Consumer Price Index
Cresud	Cresud S.A.C.I.F. y A.
DFL	Dolphin Fund Ltd.
DIC	Discount Investment Corporation Ltd.
DIL	Dolphin IL Investment Ltd.
DN B.V.	Dolphin Netherlands B.V.
ECLASA	E-Commerce Latina S.A.
EHSA	Entertainment Holdings S.A.
ERSA	Emprendimiento Recoleta S.A.
Fibesa	Fibesa S.A.
GAV-YAM	Gav-Yam Bayside Land Corporation Ltd.
IAS	International Accounting Standards
IASB	International Accounting Interpretations Board
IDBD	IDB Development Corporation Ltd.
IFRIC	International Financial Reporting Standards Interpretation Committee
IFRS	International Financial Reporting Standards
IRSA CP	IRSA Propiedades Comerciales S.A.
IRSA, “The Company”, “Us”, “We”	IRSA Inversiones y Representaciones Sociedad Anónima
Metropolitan	Metropolitan 885 Third Avenue Leasehold LLC
NCN	Non-Convertible Notes
New Lipstick	New Lipstick LLC
NIS	New Israeli Shekel
NYSE	New York Stock Exchange
PAMSA	Panamerican Mall S.A.
PBC	Property & Building Corporation Ltd.
Puerto Retiro	Puerto Retiro S.A.
Quality	Quality Invest S.A.
Shufersal	Shufersal Ltd.
TGLT FACPCE	TGLT S.A. Argentine Federation of Accountant

F-3

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Financial Position

as of June 30, 2022 and 2021

(All amounts in millions of Argentine Pesos, except otherwise indicated)

	Note		06.30.2022		06.30.2021
ASSETS
Non-current assets
Investment properties		9		293,294		300,337
Property, plant and equipment		10		7,990		6,799
Trading properties		11,25		3,041		2,696
Intangible assets		12		3,379		3,936
Right-of-use assets		13		1,242		1,330
Investments in associates and joint ventures		8		16,134		19,948
Deferred income tax assets		21		76		731
Income tax credit				24		49
Trade and other receivables		14,15		4,336		4,669
Investments in financial assets		14		857		1,997
Total non-current assets				330,373		342,492
Current assets
Trading properties		11,25		193		187
Inventories		25		125		118
Income tax credit				54		271
Trade and other receivables		14,15		10,831		13,898
Investments in financial assets		14		18,440		5,192
Cash and cash equivalents		14		12,776		3,167
Total current assets				42,419		22,833
TOTAL ASSETS				372,792		365,325
SHAREHOLDERS’ EQUITY
Shareholders' equity attributable to equity holders of the parent (according to corresponding statement)				158,853		101,394
Non-controlling interest				10,874		34,259
TOTAL SHAREHOLDERS’ EQUITY				169,727		135,653
LIABILITIES
Non-current liabilities
Borrowings		14,20		13,052		76,619
Lease liabilities				1,148		1,397
Deferred income tax liabilities		21		98,590		112,735
Trade and other payables		14,18		3,557		2,274
Provisions		19		196		187
Derivative financial instruments		14		-		15
Salaries and social security liabilities				93		141
Total non-current liabilities				116,636		193,368
Current liabilities
Borrowings		14,20		61,682		25,268
Lease liabilities				80		89
Trade and other payables		14,18		8,524		8,368
Income tax liabilities				15,118		1,543
Provisions		19		198		241
Derivative financial instruments		14		16		79
Salaries and social security liabilities				811		716
Total current liabilities				86,429		36,304
TOTAL LIABILITIES				203,065		229,672
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES				372,792		365,325

The accompanying notes are an integral part of these Consolidated Financial Statements.

F-4

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Income and Other Comprehensive Income

for the fiscal years ended June 30, 2022, 2021 and 2020

(All amounts in millions of Argentine Pesos, except otherwise indicated)

	Note		06.30.2022			06.30.2021			06.30.2020
Revenues		23		32,085			21,282			34,868
Costs		24,25		(12,116	)		(10,763	)		(14,549	)
Gross profit				19,969			10,519			20,319
Net gain / (loss) from fair value adjustment of investment properties		9		13,650			(12,742	)		83,080
General and administrative expenses		24		(5,277	)		(4,948	)		(5,413	)
Selling expenses		24		(2,237	)		(2,443	)		(2,988	)
Other operating results, net		26		61			(141	)		195
Profit / (loss) from operations				26,166			(9,755	)		95,193
Share of loss of associates and joint ventures		8		(355	)		(7,182	)		17,787
Profit / (loss) before financial results and income tax				25,811			(16,937	)		112,980
Finance income		27		463			592			525
Finance costs		27		(9,193	)		(11,968	)		(15,170	)
Other financial results		27		17,792			19,215			(15,231	)
Inflation adjustment		27		2,789			(2,370	)		(26	)
Financial results, net				11,851			5,469			(29,902	)
Profit / (loss) before income tax				37,662			(11,468	)		83,078
Income tax expense		21		(2,770	)		(35,540	)		(16,505	)
Profit / (loss) for the year from continuing operations				34,892			(47,008	)		66,573
Loss for the year from discontinued operations		32		-			(14,633	)		(8,112	)
Profit / (loss) for the year				34,892			(61,641	)		58,461
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment (i)				(538	)		(610	)		1,127
Revaluation surplus				361			626			992
Other comprehensive (loss) / income for the year from continuing operations				(177	)		16			2,119
Other comprehensive (loss) / income for the year from discontinued operations (i)				-			(18,764	)		32,810
Total other comprehensive (loss) / income for the year				(177	)		(18,748	)		34,929
Total comprehensive income / (loss) for the year				34,715			(80,389	)		93,390
Total comprehensive income / (loss) from continuing operations				34,715			(46,992	)		68,693
Total comprehensive (loss) / income from discontinued operations				-			(33,397	)		24,697
Total comprehensive income / (loss) for the year				34,715			(80,389	)		93,390
Profit / (loss) for the year attributable to:
Equity holders of the parent				34,552			(49,077	)		35,100
Non-controlling interest				340			(12,564	)		23,361
Profit / (loss) from continuing operations attributable to:
Equity holders of the parent				34,552			(37,515	)		49,084
Non-controlling interest				340			(9,493	)		17,489
Total comprehensive income / (loss) attributable to:
Equity holders of the parent				34,374			(57,080	)		32,677
Non-controlling interest				341			(23,309	)		60,713
Total comprehensive income / (loss) from continuing operations attributable to:
Equity holders of the parent				34,375			(36,343	)		56,590
Non-controlling interest				340			(10,649	)		12,103
Profit / (loss) per share attributable to equity holders of the parent: (ii)
Basic				42.73			(83.41	)		61.00
Diluted				38.79			(83.41	)		60.66
Profit / (loss) per share from continuing operations attributable to equity holders of the parent:
Basic				42.73			(63.76	)		85.31
Diluted				38.79			(63.76	)		84.82

The accompanying notes are an integral part of these Consolidated Financial Statements.

(i)

The components of other comprehensive (loss) / income do not generate an impact on income tax.

(ii)

The basic profit / (loss) per share have been calculated using 808,602,760 shares at 06.30.22, 588,409,377 shares at 06.30.21 and 575,377,891 shares at 06.30.20. If 808,602,760 shares had been used for the calculation, the result per share would be (ARS 60.69) and ARS 43.41 for 06.30.21 and 06.30.20, respectively. The diluted profit/ (loss) per share have been calculated using 890,834,683 shares at 06.30.22, 599,579,210 shares at 06.30.21 and 578,676,471 shares at 06.30.20. If 890,834,683 shares had been used for the calculation, the result per share would be (ARS 60.69) and ARS 39.40 for 06.30.21 and 06.30.20 respectively. See note 17 to these Consolidated Financial Statements.

F-5

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2022, 2021 and 2020

(All amounts in millions of Argentine Pesos, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital
	Outstanding shares			Treasury shares		Inflation adjustment  of share capital and treasury shares (i)		Warrants (ii)			Share premium		Additional paid-in capital from treasury shares		Legal reserve		Special reserve Resolution CNV 609/12 (iii)		Other reserves (vi)			Retained earnings			Subtotal			Non-controlling interest			Total Shareholders’ equity
Balance as of July 1, 2021		657			2		34,236		2,917			39,535		243		2,629		23,164		44,753			(46,742	)		101,394			34,259			135,653
Net profit for the year		-			-		-		-			-		-		-		-		-			34,552			34,552			340			34,892
Other comprehensive (loss) / income for the year		-			-		-		-			-		-		-		-		(178	)		-			(178	)		1			(177	)
Total profit and other comprehensive (loss) / income for the year		-			-		-		-			-		-		-		-		(178	)		34,552			34,374			341			34,715
Assignment of results according to Shareholders´ Meeting		-			-		-		-			-		-		-		-		(50,332	)		50,332			-			-			-
Warrants exercise (ii)		-			-		-		(2	)		6		-		-		-		-			-			4			-			4
Repurchase of own shares (iv)		(4	)		4		-		-			-		-		-		-		(325	)		-			(325	)		-			(325	)
Capitalization of irrevocable contributions		-			-		-		-			-		-		-		-		-			-			-			43			43
Dividend distribution		-			-		-		-			-		-		-		-		-			-			-			(176	)		(176	)
Incorporated by merger (v)		152			-		55		-			26,373		-		489		-		(175	)		(3,488	)		23,406			(23,593	)		(187	)
Balance as of June 30, 2022		805			6		34,291		2,915			65,914		243		3,118		23,164		(6,257	)		34,654			158,853			10,874			169,727

(i)	Includes ARS 2 of Inflation adjustment of treasury shares. See Note 17 to these Consolidated Financial Statements.
(ii)	As of June 30, 2022, the remaining warrants to exercise amount to 79,955,122, equivalent to the same number of shares. See Note 33 to these Consolidated Financial Statements.
(iii)	Related to CNV General Resolution N° 609/12.
(iv)	Related to the Shares Buyback Program approved by the Board on March 11, 2022. As of June 30, 2022 the Company has bought 3,808,472 shares. See Note 17 to these Consolidated Financial Statements.
(v)	See Note 4.C to these Consolidated Financial Statements.
(vi)	Group’s other reserves for the year ended June 30, 2022 were as follows:

	Cost of treasury stock			Reserve for future dividends		Currency translation adjustment reserve			Special reserve			Other reserves (1)			Total Other reserves
Balance as of July 1, 2021		(419	)		4,168		1,062			51,669			(11,727	)		44,753
Other comprehensive loss for the year		-			-		(539	)		-			361			(178	)
Total comprehensive loss for the year		-			-		(539	)		-			361			(178	)
Assignment of results according to Shareholders´ Meeting		-			-		-			(50,332	)		-			(50,332	)
Repurchase of own shares		(325	)		-		-			-			-			(325	)
Incorporated by merger		-			-		(19	)		-			(156	)		(175	)
Balance as of June 30, 2022		(744	)		4,168		504			1,337			(11,522	)		(6,257	)

(1) Includes revaluation surplus.

The accompanying notes are an integral part of these Consolidated Financial Statements.

F-6

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2022, 2021 and 2020

(All amounts in millions of Argentine Pesos, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital
	Outstanding shares		Treasury shares		Inflation adjustment  of share capital and treasury shares (i)		Warrants (ii)		Share premium		Additional paid-in capital from treasury shares		Legal reserve		Special reserve Resolution CNV 609/12 (iii)		Other reserves (iv)			Accumulated deficit			Subtotal			Non-controlling interest			Total Shareholders’ equity
Balance as of July 1, 2020		577		2		34,177		-		35,813		233		1,194		23,164		14,515			31,026			140,701			161,397			302,098
Net loss for the year		-		-		-		-		-		-		-		-		-			(49,077	)		(49,077	)		(12,564	)		(61,641	)
Other comprehensive loss for the year		-		-		-		-		-		-		-		-		(8,003	)		-			(8,003	)		(10,745	)		(18,748	)
Total loss and other comprehensive loss for the year		-		-		-		-		-		-		-		-		(8,003	)		(49,077	)		(57,080	)		(23,309	)		(80,389	)
Assignment of results according to Shareholders´ Meeting		-		-		-		-		-		-		1,435		-		26,067			(27,502	)		-			-			-
Reserve for share-based payments		-		-		-		-		-		10		-		-		(10	)		-			-			-			-
Issuance of shares (ii)		80		-		59		2,917		3,722		-		-		-		-			-			6,778			-			6,778
Distribution of dividends in shares		-		-		-		-		-		-		-		-		-			(1,189	)		(1,189	)		-			(1,189	)
Capitalization of irrevocable contributions		-		-		-		-		-		-		-		-		-			-			-			84			84
Dividend distribution		-		-		-		-		-		-		-		-		-			-			-			(4,400	)		(4,400	)
Decrease due to loss of control		-		-		-		-		-		-		-		-		-			-			-			(102,520	)		(102,520	)
Other changes in equity		-		-		-		-		-		-		-		-		12,884			-			12,884			1,572			14,456
Changes in non-controlling interest		-		-		-		-		-		-		-		-		(700	)		-			(700	)		1,435			735
Balance as of June 30, 2021		657		2		34,236		2,917		39,535		243		2,629		23,164		44,753			(46,742	)		101,394			34,259			135,653

(i)	Includes ARS 2 of Inflation adjustment of treasury stock. See Note 17 to these Consolidated Financial Statements.
(ii)	See Note 34 to the Consolidated Financial Statements as of June 30, 2021.
(iii)	Related to CNV General Resolution N° 609/12.
(iv)	Group’s other reserves for the year ended June 30, 2021 were as follows:

	Cost of treasury stock			Reserve for future dividends		Currency translation adjustment reserve			Special reserve		Other reserves (1)			Total Other reserves
Balance as of July 1, 2020		(422	)		4,168		(1,793	)		25,602		(13,040	)		14,515
Other comprehensive loss for the year		-			-		(8,671	)		-		668			(8,003	)
Total comprehensive loss for the year		-			-		(8,671	)		-		668			(8,003	)
Reserve for share-based payments		3			-		-			-		(13	)		(10	)
Assignment of results according to Shareholders´ Meeting		-			-		-			26,067		-			26,067
Changes in non-controlling interest		-			-		-			-		(700	)		(700	)
Other changes in equity		-			-		11,526			-		1,358			12,884
Balance as of June 30, 2021		(419	)		4,168		1,062			51,669		(11,727	)		44,753

(1) Includes revaluation surplus.

The accompanying notes are an integral part of these Consolidated Financial Statements.

F-7

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Changes in Shareholders’ Equity

for the fiscal years ended June 30, 2022, 2021 and 2020

(All amounts in millions of Argentine Pesos, except otherwise indicated)

	Attributable to equity holders of the parent
	Share capital
	Outstanding shares		Treasury shares		Inflation adjustment  of share capital and treasury shares (i)		Share premium		Additional paid-in capital from treasury shares		Legal reserve		Special reserve Resolution CNV 609/12 (ii)		Other reserves (iii)			Retained earnings			Subtotal			Non-controlling interest			Total Shareholders’ equity
Balance as of July 1, 2019		577		2		34,177		35,813		190		1,194		23,164		167,601			(149,808	)		112,910			189,192			302,102
Adjustments previous years (IFRS 16 and IAS 28)		-		-		-		-		-		-		-		-			(3,217	)		(3,217	)		(2,117	)		(5,334	)
Restated balance as of July 1, 2019		577		2		34,177		35,813		190		1,194		23,164		167,601			(153,025	)		109,693			187,075			296,768
Net profit for the year		-		-		-		-		-		-		-		-			35,100			35,100			23,361			58,461
Other comprehensive (loss) / income for the year		-		-		-		-		-		-		-		(2,423	)		-			(2,423	)		37,352			34,929
Total profit and other comprehensive (loss) / income for the year		-		-		-		-		-		-		-		(2,423	)		35,100			32,677			60,713			93,390
Loss absorption		-		-		-		-		-		-		-		(148,896	)		148,896			-			-			-
Reserve for share-based payments		-		-		-		-		43		-		-		(43	)		-			-			-			-
Distribution of dividends in shares		-		-		-		-		-		-		-		(1,455	)		-			(1,455	)		-			(1,455	)
Capitalization of contributions		-		-		-		-		-		-		-		-			-			-			77			77
Dividend distribution		-		-		-		-		-		-		-		-			-			-			(5,623	)		(5,623	)
Decrease due to loss of control		-		-		-		-		-		-		-		-			-			-			(106,654	)		(106,654	)
Other changes in equity		-		-		-		-		-		-		-		(292	)		55			(237	)		614			377
Incorporation by business combination		-		-		-		-		-		-		-		-			-			-			18,332			18,332
Changes in non-controlling interest		-		-		-		-		-		-		-		23			-			23			6,863			6,886
Balance as of June 30, 2020		577		2		34,177		35,813		233		1,194		23,164		14,515			31,026			140,701			161,397			302,098

(i)	Includes ARS 2 of Inflation adjustment of treasury stock. See Note 17 to these Consolidated Financial Statements.
(ii)	Related to CNV General Resolution N° 609/12.
(iii)	Group’s other reserves for the year ended June 30, 2020 were as follows:

	Cost of treasury stock			Reserve for future dividends		Currency translation adjustment reserve			Special reserve			Other reserves (1)			Total Other reserves
Balance as of July 1, 2019		(404	)		4,168		648			175,953			(12,764	)		167,601
Other comprehensive loss for the year		-			-		(2,149	)		-			(274	)		(2,423	)
Total comprehensive loss for the year		-			-		(2,149	)		-			(274	)		(2,423	)
Reserve for share-based payments		(18	)		-		-			-			(25	)		(43	)
Distribution of dividends in shares		-			-		-			(1,455	)		-			(1,455	)
Changes in non-controlling interest		-			-		-			-			23			23
Other changes in equity		-			-		(292	)		-			-			(292	)
Loss absorption		-			-		-			(148,896	)		-			(148,896	)
Balance as of June 30, 2020		(422	)		4,168		(1,793	)		25,602			(13,040	)		14,515

(1) Includes revaluation surplus.

The accompanying notes are an integral part of these Consolidated Financial Statements.

F-8

IRSA Inversiones y Representaciones Sociedad Anónima

Consolidated Statements of Cash Flows

for the fiscal years ended June 30, 2022, 2021 and 2020

 (All amounts in millions of Argentine Pesos, except otherwise indicated)

	Note		06.30.2022			06.30.2021			06.30.2020
Operating activities:
Net cash generated from / (used in) continuing operating activities before income tax paid		16		13,169			(2,710	)		16,115
Income tax and minimum presumed income tax paid				(492	)		(69	)		(746	)
Net cash generated from / (used in) continuing operating activities				12,677			(2,779	)		15,369
Net cash generated from discontinued operating activities				-			5,168			61,261
Net cash generated from operating activities				12,677			2,389			76,630
Investing activities:
Contributions and issuance of capital in associates and joint ventures				(125	)		(69	)		(6,654	)
Acquisition and improvements of investment properties				(6,134	)		(1,638	)		(9,058	)
Contributions and issuance of capital in associates and joint ventures pending of susbscription				(57	)		-			-
Proceeds from sales of investment properties				25,977			29,737			443
Acquisitions and improvements of property, plant and equipment				(335	)		(503	)		(621	)
Proceeds from sales of property, plant and equipment				4			572			-
Acquisitions of intangible assets				(65	)		(85	)		(107	)
Dividends collected from associates and joint ventures				3,586			-			566
Proceeds from loans granted				453			15			4,434
(Payment)/ Proceeds of derivative financial instruments				(77	)		(857	)		12,195
Net increase of restricted assets, net				-			-			(515	)
Acquisitions of investments in financial assets				(22,871	)		(17,453	)		(37,955	)
Proceeds from disposal of investments in financial assets				10,501			27,285			49,472
Interest received from financial assets				338			1,104			211
Loans granted to related parties				-			-			(407	)
Net cash generated from continuing investing activities				11,195			38,108			12,004
Net cash generated from discontinued investing activities				-			72,347			100,302
Net cash generated from investing activities				11,195			110,455			112,306
Financing activities:
Borrowings and issuance of non-convertible notes				4,877			15,354			54,398
Payment of borrowings and non-convertible notes				(10,926	)		(65,278	)		(66,463	)
(Payment) / collections of short term loans, net				(999	)		8,409			6,197
Interests paid				(8,186	)		(13,484	)		(13,296	)
Repurchase of non-convertible notes				(1,726	)		(8,412	)		(5,003	)
Capital contributions from non-controlling interest in subsidiaries				40			43			-
Acquisition of non-controlling interest in subsidiaries				-			(123	)		(1,482	)
Issuance of shares				-			6,776			-
Loans received from associates and joint ventures, net				24			-			-
Payment of borrowings to related parties				(481	)		-			-
Dividends paid to non-controlling interest in subsidiaries				(181	)		(4,242	)		(546	)
Warrants exercise				4			-			-
Proceeds from sales of own non-convertible notes				4,252			11,574			-
Payment of financial leases				(36	)		(67	)		(116	)
Repurchase of treasury shares				(325	)		-			-
Net cash used in continuing financing activities				(13,663	)		(49,450	)		(26,311	)
Net cash used in discontinued financing activities				-			(29,784	)		(173,386	)
Net cash used in financing activities				(13,663	)		(79,234	)		(199,697	)
Net increase / (decrease) in cash and cash equivalents from continuing activities				10,209			(14,121	)		1,062
Net increase / (decrease) in cash and cash equivalents from discontinued activities				-			47,731			(11,823	)
Net increase / (decrease) in cash and cash equivalents				10,209			33,610			(10,761	)
Cash and cash equivalents at beginning of the year				3,167			222,556			212,910
Cash and cash equivalents reclassified as held-for-sale				-			-			(1,109	)
Inflation adjustment				(399	)		(371	)		(500	)
Deconsolidation of subsidiaries				-			(238,316	)		-
Foreign exchange (loss)/gain on cash and unrealized fair value result for cash equivalents				(201	)		(14,312	)		22,016
Cash and cash equivalents at end of the year		14		12,776			3,167			222,556

The accompanying notes are an integral part of these Consolidated Financial Statements.

F-9

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to Consolidated Financial Statements

(Amounts in millions of Argentine Pesos, except otherwise indicated)

1. The Group’s business and general information

IRSA was founded in 1943, and it is engaged in diverse real estate activities in Argentina since 1991. IRSA and its subsidiaries are collectively referred to hereinafter as “the Group”. Cresud is our direct parent company, whose main shareholder is Consultores Asset Management S.A., whose final beneficiary is Eduardo Sergio Elsztain.

These Consolidated Financial Statements have been approved for issuance by the Board of Directors on October 25,2022.

As of the end of these Consolidated Financial Statements, the Group owns 15 shopping malls, 6 office buildings, three hotels and an extensive land reserve for future mixed-use developments. Additionally, the Group holds a 29.91% interest in Banco Hipotecario S.A. (BHSA), which is a leading commercial bank in the provision of mortgaged loans in Argentina. BHSA's shares are listed on the BYMA.

The Group operates and holds a majority interest (with the exception of La Ribera Shopping Center, of which it has a 50% ownership interest) in a portfolio of 14 shopping malls in Argentina, six of which are located in the Autonomous City of Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet) and the rest are situated in different provinces (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera in the City of Córdoba, Alto Comahue in the City of Neuquén and La Ribera Shopping in the City of Santa Fe). The Group also owns the historic building where the Patio Olmos Shopping Mall is located, operated by a third party.

Likewise, the Group manages a 6 office buildings portfolio and has majority stakes in three luxury hotels including the Libertador and Intercontinental hotels in the Autonomous City of Buenos Aires and the exclusive Llao Llao resort, in the city of Bariloche, in southern Argentina. Additionally, the Group participates in the development of residential properties for sale, as well as in other investments.

Operations Center in Israel

As stated in Note 1 to the consolidated financial statements as of June 30, 2020, on September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed from its functions, therefore, the Group lost control on that date. For comparability purposes and as required by IFRS 5, the results of the Israel Operations Center have been reclassified to discontinued operations for all the years presented.

F-10

IRSA Inversiones y Representaciones Sociedad Anónima

2. Summary of significant accounting policies

2.1. Basis of preparation of the Consolidated Financial Statement

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB and interpretations issued by the IFRIC. All IFRS applicable as of the date of these Consolidated Financial Statements have been applied.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting fiscal year, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude whether economy is categorized as hyperinflationary the provisions of IAS 29, details a series of factors to be considered, including the existence of a cumulative inflation rate in the three years preceding the measurement that approximates or exceeds 100%. It is for this reason that, in accordance with IAS 29, Argentina must be considered a country with highly inflationary economy starting July 1, 2018.

In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the measuring unit current at the end of the reporting period set forth in IAS 29 in their annual, interim and special financial statements closed on or after December 31, 2018. Thus, these Consolidated Financial Statements have been reported in terms of the measuring unit current as of June 30, 2022 accordingly to IAS 29.

Pursuant to IAS 29, the Financial Statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the date of the Financial Statements. All the amounts included in the Consolidated Statements of Financial Position which are not stated in terms of the measuring unit current as of the date of the Financial Statements should be restated applying the general price index. All items in the Consolidated Statements of Income and Other Comprehensive Income should be stated in terms of the measuring unit current as of the date of the Financial Statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the Financial Statements.

Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the FACPCE based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).

The principal inflation adjustment procedures are the following:

- Monetary assets and liabilities that are already recorded at the measuring unit of the balance sheet closing date are not restated because they are already stated in terms of the measuring unit current as of the date of the financial statements.

- Non-monetary assets, and liabilities recorded at cost as of the balance sheet date and equity component are restated by applying the relevant adjustment coefficients.

- All items in the Consolidated Statements of Income and Other Comprehensive Income are restated applying the relevant conversion factors.

- The effect of inflation on the Group’s net monetary position is included in the Consolidated Statements of Income and Other Comprehensive Income under Financial results, net, in the item “Inflation adjustment”.

- Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.

F-11

IRSA Inversiones y Representaciones Sociedad Anónima

Upon initially applying inflation adjustment, the equity accounts were restated as follows:

- Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later. The resulting amount was included in the “Comprehensive Inflation adjustment of share capital and treasury shares adjustment” account.

- Translation difference was restated in current terms.

- Other comprehensive income / (loss) was restated as from each accounting allocation.

- The other reserves in the Consolidated Statements of Income and Other Comprehensive Income were restated from the initial application.

The inflation index to be used and in accordance with the FACPCE Resolution No. 539/18, it will be determined based on the Wholesale Price Index (IPIM) until 2016, considering for the months of November and December 2015 the average variation of Consumer Price indices (CPI) of the Autonomous City of Buenos Aires, because during those two months there were no national IPIM measurements. Since January 2017, the National Consumer Price Index (National CPI) will be considered. The tables below show the evolution of these indices in the last two fiscal years and as of June 30, 2022 according to official statistics (INDEC) following the guidelines described in Resolution 539/18.

Annual price variation	June 30, 2020			June 30, 2021			June 30, 2022			Cumulative as of June 30, 2022 (3 years)
		43	%		50	%		64	%		252	%

As a consequence of the aforementioned, these Consolidated Financial Statements as of June 30, 2022 were restated in accordance with IAS 29.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its Consolidated Statement of Financial Position according to the operating cycle of each activity. Current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax liabilities) are presented separately from each other and from other assets and liabilities, classified as current and non-current, respectively.

(c) Presentation currency

The Consolidated Financial Statements are presented in millions of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to “Peso amounts” or “ARS”, are millions of Argentine Pesos, references to “US$” or “US Dollars” are millions of US Dollars and references to "NIS" are millions of New Israeli Shekel.

(d) Fiscal year-end

The fiscal year begins on July 1st and ends on June 30 of each year.

(e) Accounting criteria

See Notes 2.2 to 2.25 with the accounting policies of each item.

(f) Reporting cash flows

The Group reports operating activities cash flows using the indirect method. Interest paid is presented within financing activities. Interest received for financing of operating activities is presented within operating activities whereas the rest is presented within investing activities. The acquisitions and disposals of investment properties are disclosed within investing activities as this most appropriately reflects the Group’s business activities. Cash flows in respect to trading properties are disclosed within operating activities because these items are sold in the ordinary course of business.

F-12

IRSA Inversiones y Representaciones Sociedad Anónima

(g) Use of estimates

The preparation of Financial Statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the year. Actual results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimations and significant judgments are described in Note 3.

2.2. New accounting standards

The following standards and amendments have been issued by the IASB. Below we outline the standards and amendments that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group

Standards and amendment	Description	Date of mandatory adoption for the Group in  the year ended on
Covid-19 - related Rent Concessions - Amendments to IFRS 16.	As a result of the COVID-19 pandemic, rent concessions have been granted to lessees. Such concessions might take a variety of forms, including payment holidays and deferral of lease payments. In May 2020, the IASB made an amendment to IFRS 16 Leases which provides lessees with an option to treat qualifying rent concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concessions as variable lease payments in the period in which they are granted. Entities applying the practical expedients must disclose this fact, whether the expedient has been applied to all qualifying rent concessions or, if not, information about the nature of the contracts to which it has been applied, as well as the amount recognized in profit or loss arising from the rent concessions.	06-30- 2021

The adoption of these amendment has not had a material impact for the Group.

F-13

IRSA Inversiones y Representaciones Sociedad Anónima

Standards and amendments not yet adopted by the Group:

Standards and amendment	Description	Date of mandatory adoption for the Group in the year ended on
Amendment to IAS 1.	The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g., the receipt of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities, particularly for entities that previously considered management’s intentions to determine classification and for some liabilities that can be converted into equity. They must be applied retrospectively in accordance with the normal requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.	06-30-2024
Amendment to IAS 37.	The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. Before recognizing a separate provision for an onerous contract, the entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract.	06-30-2023
Property, plant and equipment: Proceeds before intended use - Amendments to IAS 16.	The amendment to IAS 16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment.	06-30-2023
Reference to the Conceptual Framework – Amendments to IFRS 3	Minor amendments were made to IFRS 3 Business Combinations to update the references to the Conceptual Framework for Financial Reporting and add an exception for the recognition of liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation 21 Levies. The amendments also confirm that contingent assets should not be recognized at the acquisition date.	06-30-2023
Annual Improvements to IFRS 2018-2020	The following improvements were finalized in May 2020: •        IFRS 9 Financial Instruments: clarifies which fees should be included in the 10% test for derecognition of financial liabilities. •        IFRS 16 Leases – amendment of illustrative example 13 to remove the illustration of payments from the lessor relating to leasehold improvements, to remove any confusion about the treatment of lease incentives. •        IFRS 1 First-time Adoption of International Financial Reporting Standards – allows entities that have measured their assets and liabilities at carrying amounts recorded in their parent’s books to also measure any cumulative translation differences using the amounts reported by the parent. This amendment will also apply to associates and joint ventures that have taken the same IFRS 1 exemption.	06-30-2023

F-14

IRSA Inversiones y Representaciones Sociedad Anónima

Deferred tax - Amendments to IAS 12.	The IASB issued amendments to IAS 12 that clarifies how companies account for deferred tax related to assets and liabilities that arise from a single transaction. The effects of these amendments essentially mean that the initial recognition exception is not available for transactions that involve the recognition of both an asset and a liability, such as leases and decommissioning obligations.	06-30-2024
Accounting Policy Disclosures - Amendment to IAS 1 and Practical Statement 2	The IASB amended IAS 1 to require entities to disclose their material accounting policies rather than their significant accounting policies. The amendments define what it implies and how to identify material accounting policy information. They also clarify that it is not necessary to disclose immaterial accounting policy. If it is disclosed should not overshadow material accounting information. To support this amendment, the IASB also amended IFRS Practical Statement 2 on "Making materiality related judgments" to advise on how to apply the concept of materiality to disclosure of accounting policies.	06-30-2024
Definition of accounting estimates - Amendments to IAS 8.	The amendment to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" clarifies how entities should distinguish changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events, as well as to the current exercise.	06-30-2024
Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28	The IASB has made limited scope amendments to IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures. The amendments clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the nonmonetary assets sold or contributed to an associate or joint venture constitute a ‘business’ (as defined in IFRS 3 Business Combinations). Where the non-monetary assets constitute a business, the investor will recognize the full gain or loss on the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is recognized by the investor only to the extent of the other investor’s interests in the associate or joint venture. The amendments apply prospectively.	N/A. In December 2015 the IASB decided to defer the application date of this amendment until the IASB has finalized its research project on the equity method.

Management is evaluating the impact that these new standards and amendments will have for the Group.

At the date of issuance of these consolidated financial statements, there are no other standards or modifications issued by the IASB which must be analyzed.

2.3. Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity but does have capacity to define its relevant activities because of de-facto control.

F-15

IRSA Inversiones y Representaciones Sociedad Anónima

The Group uses the acquisition method of accounting for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on a case-by-case base.

The excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the Consolidated Statements of Income and Other Comprehensive Income as “Bargain purchase gains”.

The Group conducts its business through several operating and investment companies, the main ones are listed below:

			% of ownership interest held by the Group
Name of the entity	Country	Main activity	06.30.2022			06.30.2021			06.30.2020
IRSA's direct interest:
E-Commerce Latina S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Hoteles Argentinos S.A.U.	Argentina	Hotel		100.00	%		100.00	%		100.00	%
Inversora Bolívar S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Llao Llao Resorts S.A. (1)	Argentina	Hotel		50.00	%		50.00	%		50.00	%
Nuevas Fronteras S.A.	Argentina	Hotel		76.34	%		76.34	%		76.34	%
Palermo Invest S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Ritelco S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Tyrus S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment		50.00	%		50.00	%		50.00	%
Arcos del Gourmet S.A.	Argentina	Real estate		90.00	%		90.00	%		90.00	%
Emprendimiento Recoleta S.A.	Argentina	Real estate		53.68	%		53.68	%		53.68	%
Fibesa S.A. (2)	Argentina	Real estate		100.00	%		100.00	%		100.00	%
Panamerican Mall S.A.	Argentina	Real estate		80.00	%		80.00	%		80.00	%
Shopping Neuquén S.A.	Argentina	Real estate		99.95	%		99.95	%		99.95	%
Torodur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
EHSA	Argentina	Investment		70.00	%		70.00	%		70.00	%
Centro de Entretenimiento La Plata	Argentina	Real estate		100.00	%		100.00	%		100.00	%
We Are Appa S.A.	Argentina	Design and software development		93.63	%		93.63	%		69.69	%
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment		99.50	%		99.50	%		97.04	%
IRSA International LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Jiwin S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Liveck S.A. (4)	British Virgin Islands	Investment		100.00	%		100.00	%		100.00	%
Real Estate Strategies LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment		100.00	%		100.00	%		100.00	%
DFL's and DN BV's direct interest:
IDB Development Corporation Ltd. (3)	Israel	Investment		-			-			100.00	%
Dolphin IL Investment Ltd.	Israel	Investment		100.00	%		100.00	%		100.00	%
DIL's direct interest:
Discount Investment Corporation Ltd. (3)	Israel	Investment		-			-			83.72	%
IDBD's direct interest:
IDB Tourism (2009) Ltd. (3)	Israel	Tourism services		-			-			100.00	%
IDB Group Investment Inc (3)	Israel	Investment		-			-			100.00	%
DIC's direct interest:
Property & Building Corporation Ltd. (3)	Israel	Real estate		-			-			72.40	%
Cellcom Israel Ltd. (3)	Israel	Telecommunications		-			-			46.20	%
Elron Electronic Industries Ltd. (3)	Israel	Investment		-			-			61.06	%
Bartan Holdings and Investments Ltd. (3)	Israel	Investment		-			-			55.68	%
Epsilon Investment House Ltd. (3)	Israel	Investment		-			-			68.75	%
Mehadrin Ltd. (3)	Israel	Agricultural		-			-			43.75	%
PBC's direct interest:
Gav-Yam Bayside Land Corporation Ltd. (3)	Israel	Real estate		-			-			-
Ispro The Israeli Properties Rental Corporation Ltd. (3)	Israel	Real estate		-			-			100.00	%
Matam - Scientific Industries Center Haifa Ltd. (3)	Israel	Real estate		-			-			50.10	%
Hadarim Properties Ltd. (3)	Israel	Real estate		-			-			100.00	%
Property & Building (Commercial Centers) Ltd. (3)	Israel	Real estate		-			-			100.00	%
PBC USA Investments Inc (3)	USA	Real estate		-			-			100.00	%

(1)	The Group has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers it majority of votes in the decision-making process.
(2)	Includes interest held through Ritelco S.A. and Torodur S.A.
(3)	Control was lost in September 2020. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.
(4)	Includes Tyrus’ and IRSA S.A.’s equity interests.

F-16

IRSA Inversiones y Representaciones Sociedad Anónima

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant. In quantitative terms, the Group considers significant those investments that individually represent at least 20% of the total equity attributable to non-controlling interest in subsidiaries at each year-end. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each of them has for the Group.

Summarized financial information on subsidiaries with material non-controlling interests and other information are included in Note 7.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – i.e., as transactions with the owners in their capacity as owners. The recorded value corresponds to the difference between the fair value of the consideration paid and/or received and the relevant share acquired and/or transferred of the carrying value of the net assets of the subsidiary.

(c) Disposal of subsidiaries with loss of control

When the Group ceases to have control any retained interest in the entity is re-measured at its fair value at the date when control is lost, with changes in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, usually representing an interest between 20% and at least 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, except as otherwise indicated as explained below. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

As of each year-end or upon the existence of evidence of impairment, a determination is made as to whether there is any objective indication of impairment in the value of the investments in associates. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the Associates and its carrying value and recognizes the amount adjacent to "Share of profit / (loss) of associates and joint ventures " in the Statement of Income and Other Comprehensive Income.

Profit and losses resulting from transactions between the Group and the associate are recognized in the Group's financial statements only to the extent of the interests in the associates of the unrelated investor. Unrealized losses are eliminated unless the transaction reflects signs of impairment of the value of the asset transferred. The accounting policies of associates are modified to ensure uniformity within Group policies.

Note 8 includes summary financial information and other information of the Group's associates.

The Group takes into account quantitative and qualitative aspects to determine which investments in associates are considered significant.

F-17

IRSA Inversiones y Representaciones Sociedad Anónima

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method of accounting, pursuant to which interests in joint ventures are initially recognized in the Consolidated Statements of Financial Position at cost and adjusted thereafter to recognize the Group’s share of post-acquisition profits or losses and other comprehensive income in the Statements of Income and Other Comprehensive Income.

The Group determines at each reporting date whether there is any objective evidence that the investment in a joint ventures is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes such difference in "Share of profit / (loss) of associates and joint ventures" in the Consolidated Statements of Income and Other Comprehensive Income.

2.4. Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (“CODM”), responsible for allocating resources and assessing performance. The operating segments are described in Note 6.

2.5. Foreign currency translation

(a) Functional and presentation currency

Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities nominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the Consolidated Statements of Income and Other Comprehensive Income within other financial income, as appropriate, unless they have been capitalized.

(c) Group companies

The results and financial position of all the Group entities that have a functional currency different from the presentation currency (none of which has the currency of a hyperinflationary economy) are translated into the presentation currency as follows:

(i)	assets, liabilities and goodwill for each Statement of Financial Position presented are translated at the closing rate at the date of that financial position;
(ii)	income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and
(iii)	all resulting exchange differences are recognized in the Consolidated Statements of Income and Other Comprehensive Income.

F-18

IRSA Inversiones y Representaciones Sociedad Anónima

The accounting policy of the Group consists in accounting for the translation difference of its subsidiaries by the “step-by-step” method according to IAS 21.

2.6. Investment properties

Investment properties are those properties owned by the Group that are held either to earn long-term rental income or for capital appreciation, or both, and that are not occupied by the Group for its own operations. Investment property also includes property that is being constructed or developed for future use as investment property. The Group also classifies as investment properties land whose future use has not been determined yet. The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and undeveloped land.

Additionally, the Group reflects the value of economically “buildable potentials” in those properties that meet the following requirements: a) have buildable potential that are legally viable based on the application of approved Planning Codes and / or specific Ordinances. and b) have a commercial viability either due to their realization market or their constructive feasibility (see Note 9). If due to regulatory or legal regulations and commercial and/or economic aspects, the buildable potential can only be made by the Group and it has not been built yet, the asset value is not recognized.

When a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment properties under IAS 40 “Investment Properties”.

Investment properties are measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in condition to start operating.

Direct expenses related to lease contract negotiation (such as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. Capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only where activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. On the other hand, properties under construction for which the fair value cannot be determined reliably, but for which the Group expects it to be determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of office buildings and land reserves is based on comparable active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset (Level 2).

F-19

IRSA Inversiones y Representaciones Sociedad Anónima

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations (Level 3).

As required by CNV 576/10 Resolution, valuations are performed as of the financial position date by accredited externals appraisers who have recognized professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the Consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditures are capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the Consolidated Statements of Income and Other Comprehensive Income under the line item “Net (loss) / gain from fair value adjustment of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The transfer of investment properties to other items is carried out at the fair value of the asset on the date of change of use and said fair value is the cost of the property for the purposes of subsequent accounting according to the applicable standard. If an owner-occupied property is converted to investment property, the Group values the property at the corresponding carrying amount prior to transfer and classifies it as investment property at fair value on the date of change of use. The Group will treat any difference, as of that date, between the determined carrying amount of the property and the fair value, in the same way in which it would record a revaluation applying IAS 16. A transfer from inventories to Investment properties, will be accounted by recognizing the result between its previous book value and its fair value and any difference between the fair value of the property at that date and its previous carrying amount will be recognized in the result of the fiscal year.

The Group may sell its investment property when it considers that such property no longer forms part of the lease business. The carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the Consolidated Statements of Income and Other Comprehensive Income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposals. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are accounted for when title to property passes to the buyer and the buyer intends to make the respective payment. In the case of conditional agreements, disposal are accounted for when the conditions the agreements is subject to has been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value. The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "Other operating results, net" in the Consolidated Statements of Income and Other Comprehensive Income at the time they are incurred.

2.7. Property, plant and equipment

This category primarily comprises, buildings or portions of a building used for administrative purposes, machines, computers, and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

F-20

IRSA Inversiones y Representaciones Sociedad Anónima

The Group has also several hotel properties. Based on the respective contractual arrangements with hotel managers and / or given their direct operators nature, the Group considers it retains significant exposure to the variations in the cash flows of the hotel operations, and accordingly, hotels are treated as owner-occupied properties and classified under "Property, plant and equipment".

All property, plant and equipment (“PPE”) is stated at acquisition cost restated as of the closing date less accumulated depreciation and impairment, if any. The acquisition cost includes expenditures which are directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and the property is in conditions to start operating.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized. The carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged as incurred in the Consolidated Statements of Income and Other Comprehensive Income. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

The remaining useful life as of June 30, 2022 is as follows:

Buildings and facilities	Between 5 and 50 years
Machinery and equipment	Between 3 and 24 years
Communication networks	Between 4 and 20 years
Others	Between 3 and 25 years

As of each fiscal year-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each fiscal year-end, the residual useful life of assets is estimated and adjusted, if necessary. The book amount of an asset is reduced to its recoverable value if the book value greater than its estimated recoverable value.

Gains from the sale of these assets are recognized when control is transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied. Gains and losses on disposals are determined by comparing the proceeds net of direct expenses related to such sales, with the carrying amount as of the date of each transaction. Gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

When assets of property, plant and equipment are transferred to investment property, the difference between the value at cost transferred and the fair value of the investment property is allocated to a reserve within equity.

2.8. Leases

Leases are recorded pursuant to IFRS 16. The Group recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of a lease in accordance with the standard and the rate used will be the implicit rate in the contract if it can be determined.

A Group company is the lessor:

Properties leased out to tenants under operating leases are included in “Investment Properties” in the Consolidated Statement of Financial Position. See Note 2.21 for the recognition of rental income.

F-21

IRSA Inversiones y Representaciones Sociedad Anónima

A Group company is the lessee:

The Group acquires certain specific assets (especially machinery, computer equipment and real property exploitation concessions) under leases pursuant to IFRS 16. Assets so acquired are recorded as an asset at the present value of the minimum future lease payments (the rate used by the Group is between 10.61% and 52.94%). Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Leases falling within the IFRS 16 exemption, where the Group acts as lessee are charged to results at the time they accrue. They mainly include contracts for less than one year and/or for non-material items.

2.9. Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

Goodwill is not amortized but tested for impairment at each fiscal year-end, or more frequently if there is an indication of impairment.

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units (“CGU”). In order to determine whether any impairment loss should be recognized, the book value of CGU or CGU groups is compared against its recoverable value. Net book value of CGU and CGU groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are not reversed in a subsequent period.

The recoverable amount of a CGU is the higher of the fair value less costs-to-sell and the value-in-use. The fair value is the amount at which a CGU may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from CGU or CGU groups.

Goodwill is assigned to the Group's cash generating units on the basis of operating segments. The recoverable amount of a cash generating unit is determined based on fair value calculations. These calculations use the price of the CGU assets and they are compared with the book values plus the goodwill assigned to each cash generating unit.

No material impairment was recorded as a result of the analysis performed. (Note 12).

(b) Computer software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

F-22

IRSA Inversiones y Representaciones Sociedad Anónima

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed 3 years.

(c) Branding and client relationships

This relates to the fair value of brands and client relationships arising at the time of the business combination with IDBD. They are subsequently valued at cost, less the accumulated amortization or impairment. Client relationships have an average twelve-year useful life, while one of the brands have an indefinite useful life and the other ten-year useful life.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where it normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and are not adjusted later, unless there is any sign of impairment.

At each year-end, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any of such signs exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. For intangible assets with indefinite useful lives, the Group annually reviews the existence of an impairment, or more frequently if signs of impairment are identified.

2.10. Trading properties

Trading properties comprises those properties either intended for sale or in the process of construction for subsequent sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

2.11. Inventories

Inventories include assets held for sale in the ordinary course of the Group's business activities, assets in production or construction process for sale purposes, and materials, agricultural products, supplies or other assets held for consumption in the process of producing sales and/or services.

Inventories are measured at the lower of cost or net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business less selling expenses. It is determined on an ongoing basis, taking into account the product type and aging, based on the accumulated prior experience with the useful life of the product. The Group periodically reviews the inventory and its aging and books an allowance for impairment, as necessary.

The cost of consumable supplies, materials and other assets is determined using the weighted average cost method, the cost of inventories of mobile phones, related accessories and spare parts is priced under the moving average method, and the cost of the remaining inventories is priced under the first in, first out (FIFO) method.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories and materials are initially recognized at cash price, and the difference being charged as finance cost.

F-23

IRSA Inversiones y Representaciones Sociedad Anónima

2.12. Financial instruments

The Group classifies financial assets in the following categories: those to be measured subsequently at fair value, and those to be measured at amortized cost. This classification depends on whether the financial asset is an equity investment or a debt investment.

Debt investments

A debt investment is classified at amortized cost only if both of the following criteria are met: (i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt investment are considered in determining whether the cash derives solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria mentioned in the previous paragraph is not met, the debt instrument is classified at fair value through profit or loss. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

Equity investments

All equity investments, which are neither subsidiaries nor associate companies nor joint venture of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity investments through changes in profit or loss.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value though profit or loss are expensed in the Consolidated Statements of Income and Other Comprehensive Income.

In general, the Group uses the transaction price to ascertain the fair value of a financial instrument on initial recognition. In the other cases, the Group records a gain or loss on initial recognition only if the fair value of the financial instrument can be supported by other comparable transactions observable in the market for the same type of instrument or if based on a technical valuation that only inputs observable market data. Unrecognized gains or losses on initial recognition of a financial asset are recognized later on, only to the extent they arise from a change in factors (including time) that market participants would consider upon setting the price.

Gains/losses on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized, and during the amortization process under the effective interest method. The Group is required to reclassify all affected debt investments when and only when its business model for managing those assets changes.

The Group assesses at the end of each reporting period the expected losses for impairment of a financial asset or group of financial assets measured at amortized cost. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

F-24

IRSA Inversiones y Representaciones Sociedad Anónima

2.13. Derivative financial instruments and hedging activities and options

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide coverage. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used put and call options, foreign currency future and forward contracts and interest rate swaps, as appropriate.

The Group’s policy is to apply hedge accounting where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting year.

2.14. Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

An allowance for doubtful accounts is recorded based on the expected loss of the receivables portfolio. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

For significant non-homogeneous receivables, the Group generally measures impairment based on an individual analysis. When they are evaluated individually, the Group recognizes the provision for impairment as the difference between the book value of the receivable and the present value of future cash flows, taking into account the existing guarantees, if applicable. This allowance for doubtful accounts considers the financial situation of the debtor, their resources, the payment history and, if applicable, the value of the guarantees provided.

For non-significant homogeneous receivables, the Group assesses the impairment by grouping these receivables based on characteristics of similar risks, considering the type of asset, the delinquency condition and other relevant factors. The Group considers different factors to calculate the amount of the allowance for impairment, which, in its opinion, represents the expected losses over the life of the receivables. When determining the allowance for doubtful accounts, the Group considers, among other factors: (i) the delinquency of the receivables, (ii) the history of losses and the general behavior of the clients, (iii) the trends in volumes and terms of the receivables, (iv) the Group's experience in credit management, (v) national and local economic trends, (vi) credit concentrations by individual size and type of credit, and (vii) the effect of other external factors.

The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of a separate account, and the amount of the loss is recognized in the Consolidated Statements of Income and Other Comprehensive Income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the Consolidated Statements of Income and Other Comprehensive Income.

2.15. Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

2.16. Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

F-25

IRSA Inversiones y Representaciones Sociedad Anónima

2.17. Provisions

Provisions are recognized when: (i) the Group has a present (legal or constructive) obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The Group bases its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel´s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized in the Consolidated Statements of Income and Other Comprehensive Income.

2.18. Employee benefits

(a) Defined contribution plans

The Group operates a defined contribution plan, which is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current year or prior periods. The contributions are recognized as employee benefit expense in the Consolidated Statements of Income and Other Comprehensive Income in the fiscal year they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or as a result of an offer made to encourage voluntary termination as a result of redundancy.

(c) Bonus plans

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Defined benefit plans

The Group’s net obligation concerning defined benefit plans are calculated on an individual basis for each plan, estimating the future benefits employees have gained in exchange for their services in the current and prior periods. The benefit is disclosed at its present value, net of the fair value of the plan assets. Calculations are made on an annual basis by a qualified actuary.

(e) Share-based payments

The fair value of share-based payments is measured at the date of grant. The Group measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioral considerations.

F-26

IRSA Inversiones y Representaciones Sociedad Anónima

The fair value of the share-based payment is expensed and charged to income under the straight-line method over the vesting period in which the right to the equity instrument becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of equity instruments expected to vest. Such estimate is revised if subsequent information available indicates that the number of equity instruments expected to vest differs from original estimates.

2.19. Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred income. Income tax is recognized in the Consolidated Statements of Income and Other Comprehensive Income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax expense is calculated on the basis of the tax laws enacted or substantially enacted at the date of the Statements of Financial Position in the countries where the Company and its subsidiaries operate and generate taxable income. The Group periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the deferred tax liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the Statements of Financial Position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence, deferred tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Statements of Financial Position, dividends have been accrued as receivable a binding agreement to distribute past earnings in future has been entered into by the subsidiary or there are sale plans in the foreseeable future.

Entities in Argentina were subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. Any excess of the MPIT over the income tax is carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, recognizes the MPIT as a current or non-current receivable, within “Trade and other receivables” in the Consolidated Statements of Financial Position.

The minimum presumed income tax was repealed by Law N ° 27,260 in its article 76 for the periods that begin as of January 1,2019.

2.20. Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less and that they are subject to a negligible risk of change in value. Bank overdrafts are not included.

F-27

IRSA Inversiones y Representaciones Sociedad Anónima

2.21. Revenue recognition

The group identifies contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.

Revenue from satisfaction of performance obligations at a given time is recognized when the client obtains control of the committed asset or service considering whether there is a right to collection, if the client has the physical possession, if the client has the legal right and if they have the transferred the risks and benefits.

In accordance with IFRS 15, the Group recognizes revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Group has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed, depending on the case, when the risk transfers are completed, the collection is reasonably assured and there is a price already determined.

Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Group uses the input method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.

The Group's revenue is recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.

· Rental and services - Shopping malls portfolio

Revenues derived from business activities developed in the Group’s shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to the Group’s lessees.

The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect the Group.

The Group has determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. The Group concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. The Group considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. The Group reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of the Group’s investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where the Group’s investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of the Group’s tenants only have stores in shopping malls with a few or none street stores. See details in Note 22.

Lessees of rental space located within shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 12% of the lessees’ gross sales. In addition, in accordance with the standard terms of the typical commercial lease, the Base Rent is usually increased at that time by the Consumer Price Index (CPI) in Argentina.

In addition, some leases include provisions that set forth variable rent based on specific volumes of sales revenue and other types of ratios.

F-28

IRSA Inversiones y Representaciones Sociedad Anónima

Rental income from shopping mall, admission rights and commissions, are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, i.e. lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent increases are recognized when such increases have been agreed with tenants.

Tenants in the Group’s shopping mall are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the Consolidated Statements of Income and other Comprehensive Income on a straight-line basis over the term of the respective lease agreement.

The Group acts as its own leasing agent for arranging and closing lease agreements for its shopping malls properties and consequently earns letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by the Group are treated as additional rental income and are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the lease agreements.

The Group’s lease contracts also provide that common area maintenance charges and collective promotion funds of the Group’s shopping malls are borne by the corresponding lessees, generally on a proportionally basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Under the terms of the leases, lessees also agree to participate in collective promotion funds (“CPF”) to be used in advertising and promoting the Group’s shopping malls. Each lessee’s participation generally equals a percentage calculated based on the monthly accrued rental prices. Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.

On the other hand, revenue includes income from managed operations and other services such as car parking spaces. Those revenues are recognized on an accrual basis as services are provided.

· Rental and services - Offices and other rental properties

Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.

Rental income from offices and other rental properties is recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

A substantial portion of the Group’s leases require the tenant to reimburse the Group for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. The Group manages its own rental properties. The Group makes the original payment for these expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. The Group accrues reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

F-29

IRSA Inversiones y Representaciones Sociedad Anónima

· Revenue from communication services and sale of communication equipment

Revenue derived from the use of communication networks by the Group, including mobile phones, Internet services, international calls, fixed line calls, interconnection rates, roaming service rates and television, are recognized when the service is provided, proportionally to the extent the transaction has been realized, and provided all other criteria have been met for revenue recognition.

Revenue from the sale of mobile phone cards is initially recognized as deferred revenue and then recognized as revenue as they are used or upon expiration, whichever takes place earlier.

A transaction involving the sale of equipment to a final user normally also involves a service sale transaction. In general, this type of sale is performed without a contractual obligation by the client to consume telephone services for a minimum amount over a predetermined period. As a result, the Group records the sale of equipment separately of the performance obligations and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services is recognized and accounted for as they are provided over time. When the client is bound to make a minimum consumption of services during a predefined period, the contract formalizes a transaction of several elements and, therefore, revenue from the sale of equipment is recorded at an amount that should not exceed its fair value, and is recognized upon delivery of the equipment to the client and provided the criteria for recognition are met. The Group ascertains the fair value of individual elements, based on the price at which it is normally sold, after taking into account the relevant discounts.

Revenue derived from long-term contracts is recognized at the present value of future cash flows, discounted at market rates prevailing on the transaction date. Any difference between the original credit and its net present value is accounted for as interest income over the credit term.

These revenues have been recognized in discontinued operations. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.

· Sales and Development activities

Revenue from sale and developments of real estate properties primarily comprises the results from the sale of trading properties. Results from the sale of properties are recognized only when the control has been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion, the Group also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. The Group generally requires the developer to issue insurances or to mortgage the land in favor of the Group as performance guarantee. In the event the developer does not fulfil its obligations, the Group forecloses on the land through the execution of the mortgage or the surety insurances, together with a cash penalty.

The Group determines that its barters have commercial substance and that the conditions for recording the income from the transfer of parcels or land are met at the time the swap operation is carried out. Revenues are recorded at the fair value of the goods delivered, adjusted as appropriate by the amount of cash received. In exchange for the parcels or land transferred, the Group generally receives cash and / or a right to receive future units that are part of the projects to be built on the parcels or land exchanged. This right is initially recognized at cost (this being the fair value of the land transferred) as an intangible asset in the statements of financial position. Said intangible asset is not adjusted in subsequent years unless it is impaired.

The Group may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the control is transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.

F-30

IRSA Inversiones y Representaciones Sociedad Anónima

However, the Group may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to the Group with the remaining amount being paid when the developer completes the property and transfers it to the Group, and the Group in turn transfers it to the buyer. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, the Group is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. The Group may then seek legal remedy against the developer for non-performance of its obligations under the agreement. The Group exercised judgment and considers that the most significant risk associated with the asset the Group holds (i.e. the right to receive the apartments) consisting of the non-fulfillment of the developer's obligations (i.e. to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.

· Revenue from hotels

Revenue income from hotel operations mainly includes room services, gastronomy and other services. Revenue from the sale of products is recognized when the product is delivered and the significant risks and rewards of ownership are transferred to the buyer. Revenue from the sale of services is recognized when the service is provided. When the sale of products or services is covered by a customer loyalty program, revenues billed to the customer are allocated between the product or service sold and the award credits granted by the third party that awards the program points. The consideration assigned to the credits, which is measured in reference to the fair value of the points awarded, is deferred and recognized as income when the customer redeems the credits, that is, when a prize is received in exchange for converting the program points.

2.22. Cost of sales

The cost of sales, includes the acquisition costs and the operational and management costs for shopping malls and offices held by the Group as part of its real estate investments.

The Group’s cost of sales in relation to the supply of communication services mainly includes the costs to purchase equipment, salaries and related expenses, service costs, royalties, ongoing license dues, interconnection and roaming expenses, cell tower lease costs, depreciation and amortization expenses and maintenance expenses directly related to the services provided and they are classified in discontinued operations.

The cost of sales of supermarkets, includes the acquisition costs for the products less discounts granted by suppliers, as well as all expenses associated with storing and handling inventories and is classified as discontinued operations.

2.23. Cost of borrowings and capitalization

The costs for general and specific loans that are directly attributable to the acquisition, construction or production of suitable assets for which a prolonged period is required to place them in the conditions required for their use or sale, are capitalized as part of the cost of those assets until the assets are substantially ready for use or sale. The general loan costs are capitalized according to the average debt rate of the Group. Foreign exchange differences for loans in foreign currency are capitalized if they are considered an adjustment to interest costs. The interest earned on the temporary investments of a specific loan for the acquisition of qualifying assets are deducted from the eligible costs to be capitalized. The rest of the costs from loans are recognized as expenses in the period in which they are incurred.

2.24. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new common shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any Group’s subsidiary purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such common shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

F-31

IRSA Inversiones y Representaciones Sociedad Anónima

2.25. Comparability of information

The balances as of June 30, 2021 and 2020 that are disclosed for comparative purposes were restated in accordance with IAS 29. See Note 2.1. Certain items from prior fiscal years have been reclassified for consistency purposes. Additionally, the Group has redefined the operating segments, see Note 6 to these Consolidated Financial Statements.

3. Significant judgments, key assumptions and estimates

Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Control, joint control or significant influence	Judgment relative to the determination that the Group holds an interest in the shares of investees (considering the existence and influence of significant potential voting rights), its right to designate members in the executive management of such companies (usually the Board of directors) based on the investees’ bylaws; the composition and the rights of other shareholders of such investees and their capacity to establish operating and financial policies for investees or to take part in the establishment thereof.	Accounting treatment of investments as subsidiaries (consolidation) or associates (equity method)	Note 2.3
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	Should any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 8 – Investments in associates and joint ventures Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 10.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 21 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Improper recognition of charges / reimbursements of the allowance for bad debt.	Note 15 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: ·     Discounted projected income by interest rate ·     Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. ·     Comparable market multiple (EV/GMV ratio). ·     Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 14 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions
Qualitative considerations for determining whether or not the replacement of the debt instrument involves significantly different terms	The entire set of characteristics of the exchanged debt instruments, and the economic parameters represented therein: Average lifetime of the exchanged liabilities; Extent of effects of the debt terms (linkage to index; foreign currency; variable interest) on the cash flows from the instruments.	Classification of a debt instrument in a manner whereby it will not reflect the change in the debt terms, which will affect the method of accounting recording.	Note 14 – Financial instruments by category

F-32

IRSA Inversiones y Representaciones Sociedad Anónima

4. Acquisitions and disposals

A) Sale of Catalinas Tower building

On November 2, 2021, three medium-height floors of the tower "261 Della Paolera" located in the Catalinas District of the Autonomous City of Buenos Aires were sold for a total area of approximately 3,582 square meters and 36 parking spaces located in the building. The transaction price was approximately USD 32 million.

On December 15, 2021, a medium-height floor and 12 parking spaces were sold. The total of the operation was USD 9.2 million.

On March 9, 2022, three medium-height floors of the tower were sold for a total leasable area of approximately 3,550 square meters, 30 parking spaces located in the building and other complementary units. The transaction price was approximately USD 31.6 million.

On March 29, 2022, two floors of the tower were sold for a total leasable area of approximately 2,370 square meters and 24 parking spaces located in the building. The transaction price was approximately USD 20.4 million.

B) Investment in Condor Hospitality Trust

 On September 22, 2021, Condor Hospitality Trust S.A. (“Condor”) has signed a sale agreement for its portfolio of 15 hotels in the United States with B9 Cowboy Mezz A LLC, an affiliate of Blackstone Real Estate Partners. Said sale was approved by the Condor Shareholders' Meeting held on November 12, 2021 and was completed on the 19th of the same month for an amount of USD 305 million. Within this framework, Condor announced a Liquidation and Dissolution Plan, with the intention of distributing certain net income from the sale of the hotel portfolio to the shareholders in one or more installments, which was approved by the Condor Shareholders' Meeting held on December 1, 2021.

 On December 10, 2021, in accordance with the aforementioned Plan, Condor's Board of Directors approved the distribution of a special dividend of USD 7.94 per share, which payment was made on December 30, 2021, corresponding to IRSA an approximate amount of USD 25.3 million for its direct and indirect holding of 3,191,213 common shares that, as of the date of issuance of the financial statements, have already been fully collected. As of December 31, 2021, Condor shares were delisted from the NYSE. On August 26, 2022, the company issued a statement informing that it had concluded the liquidation process, paying a final liquidation dividend of approximately USD 0.127 per common share, corresponding to IRSA approximately USD 0.41 million.

C) Merger by absorption of IRSA and IRSA Propiedades Comerciales

On September 30, 2021, IRSA & IRSA Propiedades Comerciales (former subsidiary) Boards of Directors approved the prior merger agreement between both companies and the corresponding special financial statements as of June 30, 2021, initiating the corporate reorganization process under the terms of art. 82 et seq. of the General Law of Companies. The merger process has particular characteristics given that they are two companies included in the public offering regime, reason why, not only apply the current provisions of the General Law of Companies but also the procedures established regarding reorganization of companies of the Regulations of the “Comisión Nacional de Valores” (National Securities Commission) and the markets, both national and foreign, where their shares are listed.

F-33

IRSA Inversiones y Representaciones Sociedad Anónima

The Merger was carried out in order to streamline the technical, administrative, operational and economic resources of both Companies, standing out among others: (a) the operation and maintenance of a single transactional information system and centralization of the entire accounting registration process; (b) presentation of a single financial statement to the different control agencies with the consequent cost savings in accounting and advisory fees, tariffs and other related expenses; (c) simplification of the accounting information reporting and consolidation process, as a consequence of the reduction that the merger would imply for the corporate structure as a whole; (d) removal of the IRSA CP public offering listing on BYMA and NASDAQ with the associated costs that this represents; (e) cost reduction for legal fees and tax filings; (f) increase in the percentage of the capital stock that is listed in the different markets, increasing the liquidity of the listed shares; (g) tax efficiencies and (h) preventively avoid the potential overlap of activities between the Companies.

In accordance with the commitments assumed in the Prior Merger Commitment, having obtained the administrative consent of the United States Securities and Exchange Commission, an entity to which they are subject because both companies list their shares in markets that operate in said jurisdiction, The shareholders' meetings of both companies were called.

On December 22, 2021, the Shareholders' Meetings of IRSA and IRSA CP were held, approving the merger by absorption, whose effective date was established on July 1, 2021. As of that date, the transfer to the absorbent of the totality of the equity of the absorbed company, thereby incorporating all its rights and obligations, assets and liabilities into the equity of the absorbing company.

Likewise, and within the framework of the reorganization process, the Board of Directors has approved the exchange ratio, which has been established at 1.40 IRSA shares for each IRSA CP share, which is equivalent to 0.56 IRSA GDS for each ADS of IRSA CP. Within this framework, it was decided to increase the share capital by issuing 152,158,215 new shares in IRSA.

As of June 30, 2022, the merger is registered and approved in the corresponding control agencies, the exchange of IRSA CP shares for IRSA shares was carried out, and the listing of IRSA CP shares was cancelled.

D) Acquisition of Beruti real estate

On February 18, 2022, the Company purchased by public auction from the Government of the Autonomous City of Buenos Aires (hereinafter "GCABA") a property located in Beruti, corner of Av. Coronel Díaz, in front of the Alto Palermo shopping center, owned by the Company, in one of the main commercial corridors of the city, in the neighborhood of Palermo.

The property, built on land with an area of approximately 2,386.63 square meters, consists of a ground floor, six upper levels, a basement and a total covered area of approximately 8,136.85 square meters and has potential for future expansion. The purchase price was ARS 2,159, which was paid in full.

As of June 30, 2022, the transfer deed of ownership was signed. Simultaneously with the deed, the Company is required to sign a bailment agreement with the GCABA, with the latter holding the property free of charge for a period of up to 30 months, in accordance with the conditions agreed upon in the auction.

E) Republica Building Sale

On April 19, 2022, the Company sold in block 100% of the “República” building, located next to “Catalinas Norte” area in the City of Buenos Aires. The tower has 19,885 square meters of gross leasable area on 20 office floors and 178 parking spaces.

The transaction price was set at USD 131.8 million (USD/square meters 6,629), approximately 80% has already been paid in cash (USD 105,1 million or ARS 11,944.8 million), and the remaining amount has been paid with the delivery of a 46-hectare plot of land located on the Bs. As – La Plata Highway, in the district of Quilmes, Buenos Aires Province. This property has approved regulations and urban indicators to develop a mixed-use project with a construction capacity of approximately 521,400 square meters.

5. Financial risk management and fair value estimates

The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, indexing risk due to specific clauses and other price risks), credit risk, liquidity risk and capital risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

The general risk management policies of the Group seek both to minimize adverse potential effects on the financial performance of the Group and to manage and control the financial risks effectively. The Group uses financial instruments to hedge certain risk exposures when deemed appropriate based on its internal management risk policies, as explained below.

F-34

IRSA Inversiones y Representaciones Sociedad Anónima

The Group’s principal financial instruments comprise cash and cash equivalents, receivables, payables, interest bearing assets and liabilities, other financial liabilities, other investments and derivative financial instruments. The Group manages its exposure to key financial risks in accordance with the Group’s risk management policies.

The Group’s management framework includes policies, procedures, limits and allowed types of derivative financial instruments. The Group has established a Risk Committee, composed of the CEO, the CFO, the compliance manager and certain directors, which reviews and oversees management’s compliance with these policies, procedures and limits and has overall accountability for the identification and management of risk across the Group.

This section provides a description of the principal risks that could have a material adverse effect on the Group’s strategy, performance, results of operations and financial condition. The risks facing the businesses, set out below, do not appear in any particular order of potential materiality or probability of occurrence.

The analysis of sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice this is unlikely to occur, and changes in some of the factors may be correlated – for example, changes in interest rate and changes in foreign currency rates.

This sensitivity analysis provides only a limited, point-in-time view. The actual impact on the Group’s financial instruments may differ significantly from the impact shown in the sensitivity analysis.

(a) Market risk management

The market risk is the risk of changes in the market price of financial instruments with which the Group operates. The Group’s market risks arise from open positions in foreign currencies, interest-bearing assets and liabilities and equity securities of certain companies, to the extent that these are exposed to market value movements. The Group sets limits on the exposure to these risks that may be accepted, which are monitored on a regular basis.

Foreign Exchange risk and associated derivative financial instruments

The Group publishes its Consolidated Financial Statements in Argentine pesos but conducts operations and holds positions in other currencies. As a result, the Group is exposed to foreign currency exchange risk through exchange rate movements, which affect the value of the Group’s foreign currency positions. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

The real estate, commercial and/or financial activities of the Group’s subsidiaries have the Argentine Peso as functional currency. An important part of the business activities of these subsidiaries is conducted in that currency, thus not exposing the Group to foreign exchange risk. Other Group's subsidiaries have other functional currencies, principally US Dollar. In the ordinary course of business, the Group, through its subsidiaries, transacts in currencies other than the respective functional currencies of the subsidiaries. These transactions are primarily denominated in US Dollars. Net financial position exposure to the functional currencies is managed on a case-by-case basis, partly by entering into foreign currency derivative instruments and/or by borrowings in foreign currencies, or other methods, considered adequate by the Management, according to circumstances.

Financial instruments are considered sensitive to foreign exchange rates only when they are not in the functional currency of the entity that holds them. The following table shows the net carrying amounts of the Company’s financial instruments nominated in US$, broken down by the functional currencies in which the Company operates for the years ended June 30, 2022 and 2021. The amounts are presented in Argentine Pesos, the presentation currency of the Group:

	Net monetary position liability
Functional currency	06.30.2022			06.30.2021
Argentine Peso		(44,735	)		(71,843	)
Total		(44,735	)		(71,843	)

F-35

IRSA Inversiones y Representaciones Sociedad Anónima

The Group estimates that, other factors being constant, a 10% appreciation of the foreign currency against Argentine Peso at year-end would have an impact in the Statement of Income and Other Comprehensive Income before income tax for the years ended June 30, 2022 and 2021 for an amount of ARS 4,474 (loss) and ARS 7,184 (loss), respectively.

On the other hand, the Group also uses derivatives, such as future exchange contracts, to manage its exposure to foreign currency risk. There were no such contracts as of June 30, 2022 and 2021.

Interest rate risk

The Group is exposed to interest rate risk on its investments in debt instruments, short-term and long-term borrowings and derivative financial instruments.

The primary objective of the Group’s investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, the Group diversifies its portfolio in accordance with the limits set by the Group. The Group maintains a portfolio of cash equivalents and short-term investments in a variety of securities, including both government and corporate obligations and money market funds.

The Group’s interest rate risk principally arises from long-term borrowings (Note 20). Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.

As of June 30, 2022 and 2021, 99.1% and 96.3% of the Group’s long-term financial loans have a fixed interest rate so that IRSA is not significantly exposed to the fluctuation risk of the interest rate.

The Group manages this risk by maintaining an appropriate mix between fixed and floating rate interest bearing liabilities. These activities are evaluated regularly to determine that the Group is not exposed to interest rate fluctuations that could adversely impact its ability to meet its financial obligations and to comply with its borrowing covenants.

The Group occasionally manages its cash flow interest rate risk exposure by different hedging instruments, including but not limited to interest rate swap, depending on each particular case. For example, interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates or vice versa.

The interest rate risk policy is approved by the Board of Directors. Management analyses the Group’s interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions. Trade payables are normally interest-free and have settlement dates within one year. The simulation is done on a regular basis to verify that the maximum potential loss is within the limits set by management.

Note 20 shows a breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2022 and 2021.

The Group estimates that, other factors being constant, a 1% increase in floating rates at year-end would increase net loss before income tax for the years ended June 30, 2022 and 2021 in the amount of ARS 4.2 and ARS 4.4, respectively. A 1% decrease in floating rates would have an equal and opposite effect on the Consolidated Statements of Income and Other Comprehensive Income.

Other price risks

The Group is exposed to equity securities price risk or derivative financial instruments because of investments held in entities that are publicly traded, which were classified on the Consolidated Statements of Financial Position at “fair value through profit or loss”. The Group regularly reviews the prices evolution of these equity securities in order to identify significant movements.

As of June 30, 2022 and 2021 the total value of Group’s investments in shares of public companies amounts to ARS 1,346 and ARS 1,600, respectively.

F-36

IRSA Inversiones y Representaciones Sociedad Anónima

The Group estimates that, other factors being constant, a 10% decrease in quoted prices of equity securities and in derivative financial instruments portfolio at year-end would generate a loss before income tax for the year ended June 30, 2022, of ARS 135 (ARS 160 in 2021). An increase of 10% on these prices would have an equal and opposite effect in the Statement of Income.

(b) Credit risk management

The credit risk arises from the potential non-performance of contractual obligations by the parties, with a resulting financial loss for the Group. Credit limits have been established to ensure that the Group deals only with approved counterparties and that counterparty concentration risk is addressed and the risk of loss is mitigated. Counterparty exposure is measured as the aggregate of all obligations of any single legal entity or economic entity to the Group.

The Group is subject to credit risk arising from deposits with banks and financial institutions, investments of surplus cash balances, the use of derivative financial instruments and from outstanding receivables

The credit risk is managed on a country-by-country basis. Each local entity is responsible for managing and analyzing the credit risk.

The Group’s policy is to manage credit exposure from deposits, short-term investments and other financial instruments by maintaining diversified funding sources in various financial institutions. All the institutions that operate with the Group are well known because of their experience in the market and high credit quality. The Group places its cash and cash equivalents, investments, and other financial instruments with various high credit quality financial institutions, thus mitigating the amount of credit exposure to any one institution. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents and short-term investments in the Consolidated Statements of Financial Position.

Trade receivables related to leases and services provided by the Group represent a diversified tenant base and account for 96.6% and 95.6% of the Group’s total trade receivables of the operations center as of June 30, 2022 and 2021, respectively. The Group has specific policies to ensure that rental contracts are transacted with counterparties with appropriate credit quality. The majority of the Group’s shopping mall, offices and other rental properties’ tenants are well recognized retailers, diversified companies, professional organizations, and others. Owing to the long-term nature and diversity of its tenancy arrangements, the credit risk of this type of trade receivables is considered to be low. Generally, the Group has not experienced any significant losses resulting from the non-performance of any counterpart to the lease contracts and, as a result, the allowance for doubtful accounts balance is low. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Group. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its past experience, financial position, actual experience and other factors. Based on the Group’s analysis, the Group determines the size of the deposit that is required from the tenant at inception. Management does not expect any material losses from non-performance by these counterparties. See details on Note 15.

On the other hand, property receivables related to the sale of trading properties represent 2.3% and 4.1% of the Group’s total trade receivables as of June 30, 2022 and 2021, respectively. Payments on these receivables have generally been received when due. These receivables are generally secured by mortgages on the properties. Therefore, the credit risk on outstanding amounts is considered very low.

(c) Liquidity risk management

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature, the risk that borrowing facilities are not available to meet cash requirements, and the risk that financial assets cannot readily be converted to cash without loss of value. Failure to manage liquidity risks could have a material impact on the Group’s cash flow and Consolidated Statements of Financial Position.

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding its existing and prospective debt requirements by maintaining diversified funding sources.

F-37

IRSA Inversiones y Representaciones Sociedad Anónima

The Group monitors current and projected financial position using several key internally generated reports: cash flow; debt maturity; and interest rate exposure. The Group also undertakes sensitivity analysis to assess the impact of proposed transactions, movements in interest rates and changes in property values on the key profitability, liquidity and balance sheet ratios.

The debt and the derivative positions are continually reviewed to meet current and expected debt requirements. Each operation center maintains a balance between longer-term and shorter-term financings. Short-term financing is principally raised through bank facilities and overdraft positions. Medium- to longer-term financing comprises public and private bond issues, including private placements. Financing risk is spread by using a variety of types of debt. The maturity profile is managed in accordance with each operation center needs, by spreading the repayment dates and extending facilities, as appropriate.

The tables below show financial liabilities, including each operation center derivative financial liabilities groupings based on the remaining period at the Statements of Financial Position to the contractual maturity date. The amounts disclosed in the tables are the contractual undiscounted cash flows and does not include advances and other concepts already disbursed since they are not future cash flows, as a result, they do not reconcile to the amounts disclosed on the Statements of Financial Position. However, undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the Consolidated Statements of Financial Position, as the impact of discounting is not significant. The tables include both interest and principal flows.

Where the interest payable is not fixed, the amount disclosed has been determined by reference to the existing conditions at the reporting date.

June 30, 2022	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,625		103		40		26		40		4,834
Borrowings		61,682		10,470		2,150		115		317		74,734
Finance leases obligations		87		88		93		99		2,095		2,462
Derivative Financial Instruments		16		-		-		-		-		16
Total		66,410		10,661		2,283		240		2,452		82,046

June 30, 2021	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,900		171		2		-		-		5,073
Borrowings		25,268		66,631		9,338		346		304		101,887
Finance leases obligations		153		143		146		148		2,898		3,488
Derivative Financial Instruments		79		15		-		-		-		94
Total		30,400		66,960		9,486		494		3,202		110,542

See Note 20 for a description of the commitments and restrictions related to loans and the ongoing renegotiations.

(d) Capital risk management

The capital structure of the Group consists of shareholders’ equity and net borrowings. The Group’s equity is analyzed into its various components in the Consolidated Statements of Changes in Shareholders’ Equity. Capital is managed so as to promote the long-term success of the business and to maintain sustainable returns for shareholders. The Group seeks to manage its capital requirements to maximize value through the mix of debt and equity funding, while ensuring that Group entities continue to operate as going concerns, comply with applicable capital requirements and maintain strong credit ratings.

The Group assesses the adequacy of its capital requirements, cost of capital and gearing (i.e., debt/equity mix) as part of its broader strategic plan. The Group continuously reviews its capital structure to ensure that (i) sufficient funds and financing facilities are available to implement the Group’s property development and business acquisition strategies, (ii) adequate financing facilities for unforeseen contingencies are maintained, and (iii) distributions to shareholders are maintained within the Group’s dividend distribution policy. The Group also protects its equity in assets by obtaining appropriate insurance.

F-38

IRSA Inversiones y Representaciones Sociedad Anónima

The Group’s strategy is to maintain key financing metrics (net debt to total equity ratio or gearing and debt ratio) in order to ensure that asset level performance is translated into enhanced returns for shareholders whilst maintaining an appropriate risk reward balance to accommodate changing financial and operating market cycles.

The following tables details the Group’s key metrics in relation to managing its capital structure. The ratios are within the ranges previously established by the Group’s strategy.

	June 30, 2022			June 30, 2021
Gearing ratio (i)		31.99	%		50.12	%
Debt ratio (ii)		24.31	%		32.37	%

(i)	Calculated as total of borrowings over total borrowings plus equity attributable equity holders of the parent company.
(ii)	Calculated as total borrowings over total properties (including trading properties, property, plant and equipment, investment properties and rights to receive units under barter agreements).

6. Segment information

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by the President of the Group, Mr. Eduardo S. Elsztain.

Segment information is reported from the perspective of products and services, considering separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks.

After the merger of the Company with IRSA CP, the structure is made up of the following five segments:

-Shopping Malls

-Offices

-Hotels

-Sales and development

-Others

The “Offices and Other Rental Properties” segment is renamed “Offices” and will exclusively include the results from the company’s six buildings. The other rental properties that were part of this segment were allocated to the “Sales and Developments” segment, which will include the results generated by these assets, as well as those from Land Reserves, Barter Agreements and Properties for Sale. Likewise, the “Others” segment is incorporated, which will group the results from investments in associates and foreign companies that were previously allocated in the “Corporate” and “International” segments. The “Shopping Malls” and “Hotels” segments did not undergo any changes.

Below is the segment information which was prepared as follows:

· The Group operates in the following segments:

o The “Shopping Malls” segment includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Group.

o  The “Offices” segment includes the operating results from lease revenues of offices and other service revenues related to the office activities.

o  The “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results and other rental spaces are also included.

o  The "Hotels" segment includes the operating results mainly comprised of room, catering and restaurant revenues.

o  The “Others” segment includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. and Centro de Convenciones Buenos Aires (concession), We Are Appa investments in associates such as TGLT and the financial activities carried out through BHSA / BACS, as well as other investments in associates.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of joint ventures and associates. The valuation criteria used in preparing this information are consistent with IFRS standards used for the preparation of the Consolidated Financial Statements, except for the following:

F-39

IRSA Inversiones y Representaciones Sociedad Anónima

· Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method the profit/loss generated and assets are reported in the Statement of Income line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.

· Operating results from Shopping Malls and Offices segments do not include the amounts pertaining to building administration expenses and collective promotion funds (“FPC”, as per its Spanish acronym) as well as total recovered costs, whether by way of expenses or other concepts included under financial results (for example default interest and other concepts). The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and FPC and recoverable expenses).

The assets’ categories examined by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, right to receive future units under barter agreements, investment in associates and goodwill. The sum of these assets, classified by business segment, is reported under “assets by segment”. Assets are allocated to each segment based on the operations and/or their physical location.

Most revenue from its operating segments is derived from, and their assets are located in, Argentina, except for some share of profit / (loss) of associates included in the “Others” segment located in USA.

Revenues for each reporting segments derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.

Until September 2020 the Group used to report its financial performance separately in two Operations Centers. However, as described in Note 1 to the Consolidated Financial Statements as of June 30, 2020, during September 2020 the Group lost control of IDBD and, then, has reclassified the results of Operations Center in Israel to discontinued operations. As a consequence of the situation described, from October 1, 2020, the Group reports its financial performance through a single Operation Center. Segment information for the previous fiscal years has been recast for the purposes of comparability with the present fiscal year.

Below is a summary of the Group’s lines of business and a reconciliation between the results from operations as per segment information and the results from operations as per the Consolidated Statements of Income and Other Comprehensive Income for the years ended June 30, 2022, 2021 and 2020:

	June 30, 2022
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		25,593			(233	)		6,725			-			32,085
Costs		(5,333	)		91			(6,874	)		-			(12,116	)
Gross profit / (loss)		20,260			(142	)		(149	)		-			19,969
Net gain from fair value adjustment of investment properties		12,328			1,322			-			-			13,650
General and administrative expenses		(5,327	)		27			-			23			(5,277	)
Selling expenses		(2,242	)		5			-			-			(2,237	)
Other operating results, net		28			-			56			(23	)		61
Profit / (loss) from operations		25,047			1,212			(93	)		-			26,166
Share of profit / (loss) of associates and joint ventures		466			(821	)		-			-			(355	)
Segment profit / (loss)		25,513			391			(93	)		-			25,811
Reportable assets		325,837			(1,939	)		-			48,894			372,792
Reportable liabilities		-			-			-			(203,065	)		(203,065	)
Net reportable assets		325,837			(1,939	)		-			(154,171	)		169,727

F-40

IRSA Inversiones y Representaciones Sociedad Anónima

	June 30, 2021
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		16,585			(82	)		4,830			(51	)		21,282
Costs		(5,665	)		115			(5,213	)		-			(10,763	)
Gross profit / (loss)		10,920			33			(383	)		(51	)		10,519
Net (loss) / gain from fair value adjustment of investment properties		(12,542	)		(200	)		-			-			(12,742	)
General and administrative expenses		(5,049	)		22			-			79			(4,948	)
Selling expenses		(2,477	)		34			-			-			(2,443	)
Other operating results, net		(256	)		(33	)		176			(28	)		(141	)
Loss from operations		(9,404	)		(144	)		(207	)		-			(9,755	)
Share of loss of associates and joint ventures		(6,541	)		(641	)		-			-			(7,182	)
Segment loss		(15,945	)		(785	)		(207	)		-			(16,937	)
Reportable assets		335,973			(2,481	)		-			31,833			365,325
Reportable liabilities		-			-			-			(229,672	)		(229,672	)
Net reportable assets		335,973			(2,481	)		-			(197,839	)		135,653

	June 30, 2020
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		27,434			(150	)		7,638			(54	)		34,868
Costs		(6,725	)		132			(7,956	)		-			(14,549	)
Gross profit / (loss)		20,709			(18	)		(318	)		(54	)		20,319
Net gain from fair value adjustment of investment properties		83,728			(648	)		-			-			83,080
General and administrative expenses		(5,527	)		35			-			79			(5,413	)
Selling expenses		(3,029	)		41			-			-			(2,988	)
Other operating results, net		29			42			149			(25	)		195
Profit / (loss) from operations		95,910			(548	)		(169	)		-			95,193
Share of profit of associates and joint ventures		17,367			420			-			-			17,787
Segment profit / (loss)		113,277			(128	)		(169	)		-			112,980
Reportable assets (3)		1,498,210			(1,704	)		-			48,303			1,544,809
Reportable liabilities (3)		(987,692	)		-			-			(255,011	)		(1,242,703	)
Net reportable assets (3)		510,518			(1,704	)		-			(206,708	)		302,106

(1)	Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(2)	Includes deferred income tax assets, income tax and minimum presumed income tax credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of ARS 8, ARS 12 and ARS 43, as of June 30, 2022, 2021 and 2020, respectively.
(3)	Includes assets and liabilities from IDBD.

F-41

IRSA Inversiones y Representaciones Sociedad Anónima

Below is a summarized analysis of the lines of Group business for the fiscal years ended June 30, 2022, 2021 and 2020:

	June 30, 2022
	Shopping Malls			Offices			Sales and developments			Hotels			Others			Total
Revenues		17,334			3,041			746			4,300			172			25,593
Costs		(1,495	)		(293	)		(581	)		(2,456	)		(508	)		(5,333	)
Gross profit / (loss)		15,839			2,748			165			1,844			(336	)		20,260
Net gain / (loss) from fair value adjustment of investment properties		553			(5,391	)		17,106			-			60			12,328
General and administrative expenses		(2,862	)		(341	)		(1,058	)		(730	)		(336	)		(5,327	)
Selling expenses		(847	)		(78	)		(922	)		(340	)		(55	)		(2,242	)
Other operating results, net		(142	)		(23	)		(48	)		(59	)		300			28
Profit / (loss) from operations		12,541			(3,085	)		15,243			715			(367	)		25,047
Share of profit of associates and joint ventures		-			-			-			-			466			466
Segment profit / (loss)		12,541			(3,085	)		15,243			715			99			25,513
Investment properties and trading properties		91,770			68,197			142,511			-			430			302,908
Investment in associates and joint ventures		-			-			-			-			11,578			11,578
Other operating assets		299			2,537			2,984			4,183			1,348			11,351
Reportable assets		92,069			70,734			145,495			4,183			13,356			325,837

F-42

IRSA Inversiones y Representaciones Sociedad Anónima

From all the revenues corresponding to the segments, ARS 25,579 are originated in Argentina, and ARS 14 in the U.S. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the segments, ARS 323,901 are located in Argentina and ARS 1,936 in other countries, principally in USA for ARS 296 and Uruguay for ARS 1,630.

	June 30, 2021
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		8,727			4,401			1,271			1,510			676			16,585
Costs		(1,428	)		(236	)		(1,379	)		(1,746	)		(876	)		(5,665	)
Gross profit / (loss)		7,299			4,165			(108	)		(236	)		(200	)		10,920
Net (loss) / gain from fair value adjustment of investment properties		(33,349	)		9,088			11,658			-			61			(12,542	)
General and administrative expenses		(2,348	)		(685	)		(1,164	)		(699	)		(153	)		(5,049	)
Selling expenses		(740	)		(307	)		(1,145	)		(231	)		(54	)		(2,477	)
Other operating results, net		(207	)		(8	)		(8	)		(20	)		(13	)		(256	)
(Loss) / profit from operations		(29,345	)		12,253			9,233			(1,186	)		(359	)		(9,404	)
Share of loss of associates and joint ventures		-			-			(26	)		-			(6,515	)		(6,541	)
Segment (loss) / profit		(29,345	)		12,253			9,207			(1,186	)		(6,874	)		(15,945	)
Investment properties and trading properties		89,070			119,013			102,415			-			423			310,921
Investment in associates and joint ventures		-			-			-			-			14,609			14,609
Other operating assets		436			1,839			3,271			4,269			628			10,443
Reportable assets		89,506			120,852			105,686			4,269			15,660			335,973

(i) Includes the result for the investment in TGLT y BHSA for ARS (3,496) and ARS (1,240) respectively, in the line “Share of loss of associates and joint ventures”.

From all the revenues included in the segments ARS 16,557 are originated in Argentina and ARS 28 are originated in USA. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 328,863 are located in Argentina and ARS 7,110 in other countries, principally in USA for ARS 5,692 and Uruguay for ARS 1,468.

	June 30, 2020
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		14,569			5,616			2,025			4,978			246			27,434
Costs		(1,401	)		(192	)		(1,825	)		(3,066	)		(241	)		(6,725	)
Gross profit		13,168			5,424			200			1,912			5			20,709
Net (loss) / gain from fair value adjustment of investment properties		(5,185	)		54,755			34,495			-			(337	)		83,728
General and administrative expenses		(2,044	)		(601	)		(1,217	)		(897	)		(768	)		(5,527	)
Selling expenses		(1,751	)		(185	)		(502	)		(566	)		(25	)		(3,029	)
Other operating results, net		42			(20	)		(111	)		(49	)		167			29
Profit / (loss) from operations		4,230			59,373			32,865			400			(958	)		95,910
Share of profit of associates and joint ventures		-			-			-			-			17,367			17,367
Segment profit		4,230			59,373			32,865			400			16,409			113,277
Investment properties and trading properties		120,956			147,863			89,401			-			942			359,162
Investment in associates and joint ventures		-			-			1,310			-			21,529			22,839
Other operating assets		500			160			1,931			4,527			702			7,820
Reportable assets		121,456			148,023			92,642			4,527			23,173			389,821

(ii) Includes the result for the investment in New Lipstick for ARS 18,399 in the line “Share of profit of associates and joint ventures”. Such amount under the previous classification was included in the International segment, however the CODM does not analyze it anymore as an independent segment due to the cessation of the activities of Condor and New Lipstick.

From all the revenues corresponding included in the segments ARS 26,221 are originated in Argentina, ARS 1,179 are originated in Uruguay and ARS 34 are originated in USA. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 405,499 are located in Argentina and ARS (15,678) in other countries, principally in USA for ARS (17,121) and Uruguay for ARS 1,433.

F-43

IRSA Inversiones y Representaciones Sociedad Anónima

7. Information about the main subsidiaries

The Group conducts its business through several operating and holding subsidiaries. The Group considers that the subsidiaries below are the ones with significant non-controlling interests to the Group.

Restrictions, commitments and other matters in respect of subsidiaries

According to Law N° 19,550, 5% of the profit in each fiscal year must be separated to constitute a legal reserve until they reach legal capped amounts (20% of the nominal value of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. The Group has not reached the legal limit of this reserve. Dividends are paid across the Group’s subsidiaries based on their individual accounting statements.

Arcos del Gourmet

In December 2013, the Judicial Branch confirmed a precautionary measure that suspended the opening of the Shopping mall because it considered that it did not have certain government permits within the framework of two judicial proceedings. However, by virtue of the result of the ordinary instances of the cases, this precautionary measure was dismissed and the shopping mall has been operating for more than five years.

Notwithstanding the foregoing, one of these judicial proceedings continued its process in an extraordinary instance, as the plaintiff filed an appeal for unconstitutionality before the Superior Court of Justice of the Autonomous City of Buenos Aires. Although that appeal was initially rejected, the plaintiff filed a complaint for denied appeal and finally it was granted. Within that framework, the Superior Court of Justice of the Autonomous City of Buenos Aires decided to refer the proceedings to the Chamber so that it may issue a new sentence contemplating certain parameters set by said Court regarding the transfer of green spaces to the City. On February 14, 2019, the Chamber decided to condemn the Government of the City of Buenos Aires ("GCBA") and Arcos, providing for the partial annulment of resolution 157 / APRA / 14 at the point that it did not consider appropriate for Arcos to transfer 65% of the land for use and public utility with unrestricted access and destined "especially and preferably to the generation of new landscaped green spaces". Consequently, it was resolved that the GCBA must issue an administrative act that provides for this assignment. If it does not do so, Arcos must also comply with said assignment, either on the premises where the commercial center is currently located, be it totally or partially on land adjacent to the area. Failing to do this, Arcos del Gourmet S.A. ("Arcos") must pay, prior to the realization of an expert report to be ordered in the execution stage, the sum of money necessary in order for the Administration to proceed to the search for a property with the objective of fulfilling the aforementioned purpose. If none of the aforementioned forms of compliance are specified, the power to order will be expedited - prior intervention of the relevant experts and / or technical departments of the corresponding GCBA - the demolition of the necessary works in order to comply with the ordered assignment.

Against that judgment, an appeal for local unconstitutionality was filed on March 11, 2019 and a federal extraordinary appeal on March 15, 2019. After the relevant transfers were made, the Chamber decided to reject the appeal for unconstitutionality raised, which is why on May 29, 2019, a complaint was lodged due to an appeal of unconstitutionality denied. Said appeal is pending before the Superior Court of Justice of the City of Buenos Aires (SCJ). On June 10, 2019, said the Court urged Arcos to accompany additional documentation. This documentation consists of provisions dictated by different departments of the Government of the City of Buenos Aires. Such intimation was fulfilled in a timely manner. By virtue of this, a transfer was sent to the Attorney General's Office so that it can issue an opinion on the formal origin of the complaint, after which the aforementioned appeal will be resolved. On October 26, 2019, the Deputy Attorney General's Office ruled: “(…) admit the complaint, allow the unconstitutionality appeal filed and reject the lawsuit. (…)”. On January 22, 2022, Arcos was notified of the SCJ's resolution partially revoking the Chamber's ruling, insofar as it established demolition as the last alternative sentence given the impossibility of complying with the provisions of the Urban Planning Code. Consequently, Arcos del Gourmet SA must comply with the resolution of February 14, 2019 without this implying the demolition of the building.

Concession Status

In November 2008, the Arcos del Gourmet S.A. signed a contract with the Agencia de Administración de Bienes del Estado (State Assets Administration Office, or AABE in Spanish) for which the Company had been granted the concession to use the properties located in the jurisdiction of Estación Palermo, ex Línea San Martín - Palermo loading deck (on Juan B. Justo Avenue from Santa Fe Avenue to Paraguay Street) until December 31, 2025 (the “Arcos concession agreement”).

F-44

IRSA Inversiones y Representaciones Sociedad Anónima

Subsequently, in September 2011, a Contract for the Readjustment of this Concession was entered into with the Railway Infrastructure Administrator (ADIF in Spanish) (to which the rail assets were transferred in the jurisdiction of AABE), pursuant to the term of the Arcos concession agreement was extended until December 31, 2030. This new agreement provides for an automatic extension of 3 years and 4 months in the event that the Company complies with the agreement and ADIF so finds. Likewise, a new extension is established for an additional 3 years if the Company so declares and ADIF corroborates compliance with the obligations. This agreement established an initial monthly fee of ARS 0.2 million (plus VAT) until December 31, 2025, and ARS 0.25 million (plus VAT) as of January 1, 2026, these values being adjustable every 2 years until the end of the term of the concession.

The Argentine government issued Executive Order 1723/2012, whereby several plots of land located in prior rail yards of Palermo, Liniers and Caballito were designated for development and urbanization projects.

In this respect and as part of several measures related to other licensed persons and/or concessionaires, the Company was notified, of Resolution 170/2014 revoking of the Arcos Concession agreement.

It should further be pointed out that such measure:

(i) it is not related to a breach by Arcos.

(ii) there is any interruption of the commercial development or operation of the shopping mall, which continues to operate under normal conditions.

 Notwithstanding the foregoing, Arcos del Gourmet S.A. has filed the relevant administrative resources (appeal) and has also filed a judicial action requesting that the revocation of the Arcos Concession agreement be overruled. In the framework of this process, the National Government has already answered the transfer of the claim. Likewise, the administrative appeal has been withdrawn (legal imperative for having initiated legal action).

Once the evidence had been produced and the arguments made, on August 24, 2022, a judgment of first instance was issued, in which the claim for annulment was rejected, and it was affirmed that, since the contract provided the ability to terminate the agreement for reasons of opportunity and merit, the AABE’s decision to terminate to carry out urban projects was not arbitrary.

On August 25, 2022, that sentence was appealed by Arcos, so it is not final. The main grievance of the company consists of the violation of its property rights due to the untimely nature of the revocation, as well as the arbitrariness that it has been arranged before there is a specific urban project to be carried out.

At the same time, the National Government filed a lawsuit to launch Law No. 17,901 against Arcos. On May 11, the Court decided to decree the immediate release of Arcos and/or occupants and/or intruders of the properties. On May 12, 2022, Arcos appealed said resolution and that same day, the Court admitted the appeal, which is pending resolution. In turn, and due to the possibility that the eviction of the Arcos District property would be resolved in a short time, a precautionary measure was filed in order to avoid the eviction until the annulment action is resolved. On June 28, 2019, the interim precautionary measure was granted, which is why the opening of the property has been suspended. The amount of ARS 60,500,000 was set as a real surety, which was fulfilled with the constitution of a surety policy. However, it should be noted that the resolution that granted the precautionary measure has been appealed. On March 3, 2020, the CNACAF (National Chamber of Appeals in Federal Administrative Dispute) decided that since the six-month period originally established by the Court of First Instance for the validity of the precautionary measure had expired, the treatment of appeals was devoid of purpose. Faced with this resolution, an appeal for reconsideration was presented in extremis and the First Instance Courts was simultaneously requested to order the extension of the precautionary measure. On October 23, 2020, the extension of the precautionary measure for six months was resolved, which was later appealed by Playas Ferroviarias de Buenos Aires S.A. and the AABE, pending resolution of the appeal filed by both. In view of the impending expiration of the six-month period set by the Judge of First Instance when granting the precautionary measure, on March 8, 2021, the Company requested that an extension of the validity of the measure. On May 6, 2021, the precautionary measure was extended. However, this measure was appealed by Playas Ferroviarias and AABE. On September 7, 2021, the Chamber revoked the granting of the new extension to the precautionary measure. Arcos filed an extraordinary appeal against said resolution on November 17, 2021, which was denied by the Chamber.

Likewise, it has also initiated a consignment lawsuit in which Arcos del Gourmet S.A. is depositing in due time and form the rental fees corresponding to the Contract for the Readjustment of the Use and Exploitation Concession that Arcos interprets has been improperly revoked. In this process, the claim was transferred, which was answered by Trenes Argentinos with exceptions. These exceptions were answered by Arcos.

F-45

IRSA Inversiones y Representaciones Sociedad Anónima

Emprendimiento Recoleta S.A.

As a result of a public auction, in February 1991, the City of Buenos Aires granted to ERSA a 20-year concession to use a plot of land in Centro Cultural Recoleta, which was set to expire in November 2013.

Pursuant to Decree No. 867/10 dated November 25, 2010, a five-year extension was granted so the agreement expired on November 18, 2018.

 On April 12, 2018, ERSA was notified by the Federal National Criminal and Correctional Court No. 1, Secretariat No. 2 in the case entitled “Blaksley Enrique and others s / infraction art. 303 ” of the judicial intervention for a period of six months, ordering the appointment of collecting and informants overseers and decreeing their general inhibition of assets. On July 20, 2018 and subsequently, on August 10, 2018, ERSA received two new notifications from the same Court in which it was ordered: 1) to transfer to the Court's account 7.36% of the income received by the company for any concept and 2) designate as representatives of the minority of 46.316% in all shareholders' meetings, board meetings, the interveners. On January 8, 2019, the Federal National Criminal and Correctional Court No. 1 decreed the preventive seizure for the purpose of confiscation of 46.31% of all value obtained from the sale and / or liquidation of the assets of ERSA after deduction of taxes and any other expense. Although these measures were appealed in a timely manner, all of them are in force as of the date of these Consolidated Financial Statements.

On November 16, 2018, the Ordinary and Extraordinary General Shareholders meeting resolved the early dissolution and the beginning of the liquidation process of ERSA, appointing Messrs. Gastón Armando Lernoud and Juan Manuel Quintana as liquidator.

On December 5, 2018, the property was returned to the competent authorities, who from that date have control of the property, terminating the concession.

It should be noted that the end of ERSA’s concession has no significant impact on the Group’s Financial Statements.

IDBD

As indicated in Note 1. to these Consolidated Financial Statements, the Group lost control of IDBD on September 25, 2020.

On September 21, 2020, IDBD filed a lawsuit against Dolphin Netherlands B.V. (“Dolphin BV”) and IRSA before the Tel-Aviv Jaffa District Court (civil case no. 29694-09-20). The amount claimed by IDBD is NIS 140 million, alleging that Dolphin BV and IRSA breached an alleged legally binding commitment to transfer to IDBD 2 installments of NIS 70 million. On December 24, 2020, and following approval by the insolvency court, the IDBD trustee filed a motion to dismiss the claim, maintaining the right as IDBD trustee, to file a new inter alia claim in the same matter, after conduct an investigation into the reasons for IDBD's insolvency. On December 24, 2020, the court entered a judgment to dismiss the claim as requested. On October 31, 2021, the Insolvency Commissioner notified that he did not oppose the motion, and on that same date, the court affirmed the motion initiated by the trustee of IDBD.

On December 26, 2021 IDBD filed the lawsuit against Dolphin BV and IRSA for the sum of NIS 140 million.

We have not been formally notified of the lawsuit and, with the information currently available, the Management of the Company and its legal advisors consider that there are legal arguments for an eventual defense.

Panamerican Mall S.A.

Below is the summarized financial information of subsidiaries with material non-controlling interests which are considered significant for the Group, presented before intercompany eliminations.

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held by non-controlling interests			Book value of non-controlling interests		% of ownership interest held by controlling interests			Book value of controlling interests
06.30.22		760		59,599		2,054		15,344		42,961		20	%		8,592		80	%		34,369
06.30.21		973		64,049		3,050		17,882		44,090		20	%		8,818		80	%		35,272

F-46

IRSA Inversiones y Representaciones Sociedad Anónima

	Revenues		Comprehensive loss for the year			Cash of Operating activities		Cash of investing activities			Cash of financial activities			Net Increase / (decrease) in cash and cash equivalents			Dividends distribution to non-controlling shareholders
06.30.22		3,766		(1,129	)		2,415		(292	)		(2,112	)		11			-
06.30.21		3,230		(3,754	)		1,428		(391	)		(1,123	)		(86	)		-

The non-controlling interests of the remaining subsidiaries summarize ARS 4,309 and ARS 25,441 (out of witch ARS 1,579 corresponds to PAMSA and ARS 23,862 corresponds to IRSA CP, see Note 4.C) as of June 30, 2022 and 2021, respectively. None of these subsidiaries has a non-controlling interest that individually is considered significant for the Group.

8. Investments in associates and joint ventures

Changes of the Group’s investments in associates and joint ventures for the fiscal years ended June 30, 2022 and 2021 were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		19,936			183,192
Capital contributions		1,035			69
Decrease of interest in associate (iv)		-			(71,905	)
Deconsolidation (i)		-			(79,438	)
Share of loss		(355	)		(4,977	)
Impairment (iii)		-			(1,027	)
Currency translation adjustment		(473	)		(5,869	)
Dividends		(3,586	)		-
Other comprehensive loss		-			(89	)
Others		(431	)		(20	)
End of the year (ii)		16,126			19,936

(i)	See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.
(ii)	Includes ARS (8) and ARS (12) reflecting interests in companies with negative equity as of June 30, 2022 and 2021, respectively, which are disclosed in “Provisions” (see Note 19).
(iii)	Corresponds to investment in TGLT S.A.
(iv)	Corresponds to the sale of the remaining equity interest in Shufersal in July 2020.

Below is a detail of the investments and the values of the stake held by the Group in associates and joint ventures for the years ended as of June 30, 2022 and 2021, as well as the Group's share of the comprehensive results of these companies for the years ended on June 30, 2022, 2021 and 2020:

Name of the entity	% ownership interest									Value of Group's interest in equity				Group's interest in comprehensive income / (loss)
	June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2022		June 30, 2021		June 30, 2022			June 30, 2021			June 30, 2020
Associates and joint ventures
New Lipstick		49.96	%		49.96	%		49.96	%		143		357		69			(787	)		18,801
BHSA (1)		29.91	%		29.91	%		29.91	%		9,665		8,792		873			(1,240	)		(936	)
Condor		21.70	%		18.89	%		18.89	%		-		2,657		425			(679	)		295
Quality (2)		50.00	%		50.00	%		50.00	%		3,858		4,800		(983	)		(425	)		456
La Rural SA		50.00	%		50.00	%		50.00	%		243		277		(42	)		(221	)		251
TGLT (3)		27.82	%		27.82	%		30.20	%		813		1,537		(723	)		(3,537	)		(285	)
Other joint ventures		N/A			N/A			N/A			1,404		1,516		(447	)		(3,957	)		2,896
Total associates and joint ventures											16,126		19,936		(828	)		(10,846	)		21,478

F-47

IRSA Inversiones y Representaciones Sociedad Anónima

Name of the entity

Place of business / Country of incorporation

Main activity

Common shares 1 vote

Share capital (nominal value)

Profit / (loss) for the year

Latest financial statements issued Shareholders’ equity

Associates and joint ventures

New Lipstick

U.S.

Real estate

N/A

-

(*) (1

)

(*) (42

)

BHSA (1)

Argentina

Financial

448,689,072

(**) 1,500

(**) 2,920

(**) 31,251

Quality (2)

Argentina

Real estate

225,146,912

406

(1,965

)

7,563

La Rural SA

Argentina

Organization of events

714,998

1

(58

)

339

TGLT (3)

Argentina

Real estate

257,330,595

925

(2,950

)

4,084

(1)	BHSA is a commercial bank of comprehensive services that offers a variety of banking and financial services for individuals, small and medium businesses and large companies. The market price of the share is 7.78 pesos per share. The effect of the treasury shares in the BHSA portfolio is considered for the calculation.
(2)	Quality is dedicated to the exploitation of the San Martín property (former property of Nobleza Piccardo S.A.I.C. and F.).
(3)	See Note 8 to the Consolidated Financial Statements as of June 30, 2021
(*)	Amounts in millions of US Dollars under USGAAP. Condor’s year-end falls on December 31, so the Group estimates their interest with a three-month lag, including material adjustments, if any.
(**)	Information as of June 30, 2022 according to IFRS

New Lipstick:

On August 7, 2020, as a consequence of negotiations conducted in the context of an increased lease price effective as of May 2020, as set forth in the lease (hereinafter, “Ground Lease”), Metropolitan (a company where IRSA holds, indirectly, a 49.96% interest) executed an agreement with the Ground Lease lessor to conclude the relationship and terminate the ground lease, abandoning the administration of the building. As a consequence of the foregoing, Metropolitan derecognized the liability associated to the Ground Lease, as well as all assets and liabilities associated to the building and the administration as of June 30, 2020.

TGLT S.A.:

During the fiscal year ended at June 30, 2020, TGLT S.A. and the Company entered into a recapitalization agreement, based on which IRSA increased its holding in TGLT S.A. reason why it began to be considered an associate company.

During the fiscal year ended at June 30, 2021, TGLT S.A. yielded significant losses and its business was affected by different factors related to the context in which it finds itself. Therefore, the Company decided to re-evaluate the recoverability of this asset.

For this reason and considering that the events are public and have been openly disclosed to the market, it is considered that the market value of the shares is more suitable indicator to determine the value of this holding.

La Rural S.A.

 In connection with the Fairground, as publicly known, in December 2012 the National Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which had approved the sale of the Fairground to the Sociedad Rural Argentina (SRA); the effect of this new order was to revoke the sale transaction. Subsequent, on March 21, 2012, the National Executive Branch notified the SRA of said executive order and further ordered that the property be returned to the Argentine government within 30 subsequent days. Then, the SRA issued a press release publicly disclosing the initiation of legal actions and the obtaining of a precautionary measure for which Decree 2552/12 was suspended. Furthermore, as it has become publicly known, on August 21, 2013, the Supreme Court of Justice rejected the appeal filed by the Argentine government against the interim measure timely requested by the SRA.

Neither has IRSA been served notice formally nor is it a party involved in the legal actions brought by the SRA.

Given the potential dimension of the dispute, as it has been known to the public, we estimate that if Executive Order 2552/12 was found to be unconstitutional, such order shall have no legal effects either in Entertainment Holdings S.A. (EHSA) or in the acquisition by IRSA of an equity interest in EHSA. However, should the opposite happen, that is, a court order declaring the Executive Order 2699/91, this could have a real impact on acquired assets. In this scenario, the judicial decision may render the purchase of the Plot of Land by SRA null and void, and all acts executed by SRA in relation to the Plot of Land, including the right of use currently held by the entity where EHSA has an indirect equity interest, through vehicle entities, would also become null and void.

F-48

IRSA Inversiones y Representaciones Sociedad Anónima

On June 1, 2015, a ruling was issued in case 4573/2012 SOCIEDAD RURAL ARGENTINA vs. NATIONAL STATE – EXECUTIVE POWER ON DECLARATORY ACTION, whereby the injunction staying the effects of Executive Order 2552/12 were lifted.

On June 2, 2015 the SRA filed a writ of appeals against the ruling indicated above and on that same date the appeal was admitted with staying effects. While the appeal filed by SRA was filed in the Appellate court, the decision of the judge of first instance who decided to lift the precautionary measure had no effect and was suspended.

On September 17, 2015, the court of appeals revoked the decision and rejected in the motion by of the Argentine government to lift the precautionary measure and the Law N° 26,854 was declared inapplicable to the case of precautionary measures against the Government. As a result, the injunction issued on January 4, 2013 was confirmed. The National Government filed an extraordinary federal appeal and subsequently a complaint, both were dismissed, therefore, the precautionary measure was reaffirmed.

On March 11, 2016 La Rural S.A. was summoned as third party in the case referred to above, and filed an answer to such summons on April 6, 2017. 

On April 21, 2016 the National Government presented itself, requested the annotation of litis as a precautionary measure, opposed the exception of incompetence, raised the inadmissibility of the declaratory action of certainty, in subsidy, proceeded to answer the complaint. It also requested the suspension of the sentence until the criminal case is resolved and opposed, as a counterclaim, a motion declare the annulment of Decree 2699/91, as well as all those acts enacted in consequence of said decree.

By order of April 29, 2016, the National Government was presented, opposed to the exception raised, the claim in subsidy was contested and the action of injuriousness filed, and it ordered the transfer of the different Government proposals to the SRA.

On the same occasion, the precautionary measure for the annotation of the requested litigation was admitted under the responsibility of the National Government regarding the individualized properties in the process.

On November 22, 2016, SRA answered the transfer of the injuriousness action filed by the National Government, which was considered as answered on December 1.

On December 21, 2016, the National Government, for its part, answered the exception of expiration opportunely opposed. Nevertheless, it was indicated that confirmation with La Rural S.A. was pending.

On June 19, 2017, the transfer of the exception of incompetence raised by the National Government was substantiated, which was answered by La Rural S.A. in June 2017. On the same occasion, SRA accused expiry of that previous exception in the terms of article 310 CPCCN, which was resolved by order of July 14, 2017.

On that occasion it was resolved to sustain the expiration filed by Sociedad Rural Argentina regarding the incident of exception of incompetence filed by the National Government. Therefore, the process was settled in the Civil and Commercial Federal jurisdiction.

On August 28, 2017, the National Government notified the transfer of the request of certain sections of the SRA's submission that answered the counterclaim and was transferred to the third party of the prescription exception opposed by the SRA at the time of answer the counterclaim. Both substations were answered by SRA and La Rural S.A. on September 4, 2017.

On October 5, 2017, the Federal Oral Criminal Court No. 2 requested the referral of the proceedings in the context of the case: "Menem, Carlos Saúl and other s / inf. Art. 261, first paragraph of the CP ". For presentations of December 2017 and March 2018, SRA requested the Oral Court to return the proceedings in order to continue with the process.

On March 27, 2018, the Court decided to convict various Administration officials, including former President Carlos S. Menem and former Minister Domingo F. Cavallo, as necessary participants in the crime of peculation. Additionally, it resolved to acquit the authorities of the imputed Argentine Rural Society and it was decided to reject the request for restitution of the property requested by the AABE, leaving the decision on that matter in the hands of the Federal Civil and Commercial Court involved. The basics of the decision were published on May 28, 2018.

F-49

IRSA Inversiones y Representaciones Sociedad Anónima

On February 27, 2020, the proceedings were considered returned to the Federal Civil and Commercial Court and the parties were ordered to notify their return.

On July 30, 2020, the SRA and La Rural S.A. were notified about the return of the proceedings.

 On August 13, 2020, the Oral Court was released to send the entirety of the evidence to the Civil Court.

On August 19, 2021, the Civil and Commercial Court decided to defer the treatment of the prescription exception opposed by Sociedad Rural with respect to the counterclaim of the government for the moment of sentencing, and also decided to reject the examination request of the paragraphs by the government. Against this last resolution, the government filed an appeal, which was admitted by resolution of September 8, 2021.Finally, on February 2, 2022, the Chamber of Appeals upheld the proposal of the government and ordered that the considerations expressed by the SRA in Chapter 8 of the presentation of the response to the action of harmfulness be omitted, considering that such response was not admitted by the procedural system. On March 7, 2022, the case was returned to the court of origin.

On May 11, 2022, the trial was opened.

Set out below is summarized financial information of the associates and joint ventures considered to be material to the Group:

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held			Interest in associate and joint venture		Goodwill and others			Book value
As of 06.30.22
Associates
BHSA		241,536		79,939		280,495		8,961		32,019		29.91	%		9,577		88			9,665
TGLT		7,511		12,371		8,176		7,677		4,029		27.82	%		1,121		(308	)		813
Joint ventures
Quality Invest (ii)		61		11,490		70		3,919		7,562		50.00	%		3,781		77			3,858
.
As of 06.30.21
Associates
BHSA		188,185		116,578		256,477		19,122		29,164		29.91	%		8,723		69			8,792
TGLT		8,460		19,366		8,117		12,635		7,074		27.82	%		1,968		(431	)		1,537
Joint ventures
Quality Invest (ii)		8		14,499		164		4,898		9,445		50.00	%		4,723		77			4,800

F-50

IRSA Inversiones y Representaciones Sociedad Anónima

	Revenues		Net income / (loss)			Total comprehensive income / (loss)			Dividend distribution		Cash of operating activities			Cash of investing activities			Cash of financing activities			Changes in cash and cash equivalents
As of 06.30.22 (i)
Associates
BHSA		54,043		2,920			2,920			-		33,208			(240	)		(24,583	)		8,385
TGLT		4,198		(2,129	)		(2,089	)		-		(1,322	)		4,209			(2,530	)		357
Joint ventures
Quality Invest (ii)		206		(1,965	)		(1,965	)		-		(1	)		24			(2	)		21
As of 06.30.21 (i)
Associates
BHSA		47,976		(4,145	)		(4,145	)		-		7,081			(212	)		(46,143	)		(39,274	)
TGLT		4,196		(3,142	)		(3,155	)		-		185			108			(746	)		(453	)
Joint ventures
Quality Invest (ii)		74		(849	)		(849	)		-		(97	)		(7	)		104			-

(i)

Information under GAAP applicable in the associate and joint ventures´ jurisdiction.

(ii)

In March 2011, Quality acquired an industrial plant located in San Martín, Province of Buenos Aires. The facilities are suitable for multiple uses. On January 20, 2015, Quality agreed with the Municipality of San Martin on certain re zoning and other urban planning matters (“the Agreement”) to surrender a non-significant portion of the land and a monetary consideration of ARS 40 million, payable in two installments of ARS 20 each, the first of which was actually paid on June 30, 2015. In July 2017, the Agreement was amended as follows: 1) a revised zoning plan must be submitted within 120 days as from the amendment date, and 2) the second installment of the monetary considerations was increased to ARS 76 million payables in 18 equal monthly installments. On March 8, 2018, it was agreed with the well-known Gehl Study (Denmark) - Urban Quality Consultant - the elaboration of a Master Plan, generating a modern concept of New Urban District of Mixed Uses. On July 20, 2020 we were notified of the granting of the Hydraulic Aptitude in pre-feasibility instance. On August 5, 2021, they were signed between Quality Invest S.A. and the Municipality of San Martín the following documents: 1) CLUB PERETZ CLUB AGREEMENT ACT CLOSING: It is agreed that within 48 hours of signing the same Quality will pay the certificates owed for the work in question already completed, releasing both parties from any claim regarding the Minutes signed on January 20, 2015 The amount owed (already checked and agreed between the parties) is ARS 18,926,541. and the execution of the works are described, detailed and carried out. As of June 30, 2022, the amount owed and the works are completed and paid, as well as the closing act signed. 2) COMPLEMENTARY AGREEMENT WITH THE MUNICIPALITY OF SAN MARTIN: In this agreement the completion of the Rodriguez Peña expansion work and the relocation and start-up of the EDENOR substation are agreed, according to the plan and specifications drawn up by TIS and that they are part of its annexes. In return, the certifications owed will be paid as follows: The total is for ARS 26,085,086: ARS 15,000,000.- are paid 48 hours after signing this document and the balance (without any adjustment clause) at the time of the provisional reception of the work, where the definitive reception and Delivery Certificate will be signed. As of June 30, 2022, the $15,000,000 have already been paid and the work is not yet finished (being executed by more than 85%). The balance due is $11,085,086, which will be paid at the time of provisional reception of the work, when it and the Delivery Certificate will be signed.

BHSA

BHSA is subject to certain restrictions on the distribution of profits, as required by BCRA regulations.

The Annual Shareholders' Meeting decided to allocate 35.1 million of Class D shares of a par value of ARS 1, to an employee compensation plan pursuant to Section 67 of Law 26,831. As of June 30, 2022, BHSA has a remnant of 26.8 million of such treasury shares. As of June 30, 2022, considering the effect of such treasury shares, the Group’s interest in BHSA amounts to 29.91%.

The Group estimated that the value in use of its investment in BHSA as of June 30, 2022 and 2021 amounted to ARS 9,680, ARS 11,043, respectively. The value in use was estimated based on the present value of future business cash flows. The main assumptions used were the following:

- The Group considered 9 years as the horizon for the projection of BHSA cash flows, including perpetual value.

- The “Private BADLAR” interest rate was projected based on internal data and information gathered from external advisors.

- The projected exchange rate was estimated in accordance with internal data and external information provided by independent consultants.

- The discount rate used to discount actual dividend flows was 15.64% in 2022 and 14.02% in 2021.

- The sensitivity to a 1% increase in the discount rate would be a reduction in the value in use of ARS 760 for 2022 and of ARS 625 for 2021.

 The estimated value in use exceeds the book value of the investment, because of that, no adjustment was necessary on the recorded value of the investment.

F-51

IRSA Inversiones y Representaciones Sociedad Anónima

Puerto Retiro (joint venture):

At present, this 8.3-hectare plot of land, is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.

Puerto Retiro was involved in a judicial bankruptcy action brought by the National Government. The current Board of Directors would not be held personally liable with regard to this action. Management and legal counsel of the Company believe that there are sufficient legal and technical arguments to consider that the petition for extension of the bankruptcy case will be dismissed by the court. However, in view of the current status of the action, its result cannot be predicted.

Moreover, Tandanor filed a civil action against Puerto Retiro S.A. and the other defendants in the criminal case for violation of Section 174 (5) based on Section 173 (7) of the Criminal Code of Argentina. Such action seeks -on the basis of the nullity of the decree that approved the bidding process involving the Dársena Norte property- the restitution of the property and a reimbursement in favor of Tandanor for all such amounts it has allegedly lost as a result of a suspected fraudulent transaction involving the sale of the property. Puerto Retiro has presented the allegation on the merit of the evidence, highlighting that the current shareholders of Puerto Retiro did not participate in any of the suspected acts in the criminal case since they acquired the shares for consideration and in good faith several years after the facts told in the process. Likewise, it was emphasized that the company Puerto Retiro is foreign to the bidding / privatization carried out for the sale of Tandanor shares. On September 7, 2018, the Oral Federal Criminal Court No. 5 rendered a decision. According to the sentence read by the president of the Court, Puerto Retiro won the preliminary objection of limitation filed in the civil action. However, in the criminal case, where Puerto Retiro is not a party, it was ordered, among other issues, the confiscation (“decomiso”) of the property owned by Puerto Retiro known as Planta I. The grounds of the Court's judgment were read on November 11, 2018. From that moment, all the parties were able to present the appeals. Given this fact, an extraordinary appeal was filed, which was rejected, and as a result, a complaint was filed for a rejected appeal, which was granted. Consequently, the appeal is under study in the Argentine Supreme Court of Justice.

In the criminal action, the claimant reported the violation by Puerto Retiro of the injunction ordered by the criminal court consisting in an order to stay (“prohibición de innovar”) and not to contract with respect to the property disputed in the civil action. As a result of this complaint, the Federal Oral Court No. 5 formed an incident and ordered and executed the closure of the property where the lease agreements were being executed (a heliport and a mooring), in order to enforce compliance with the measure before mentioned. As a result of this circumstance, it was learned that the proceedings were turned over to the Criminal Chamber for the allocation of the court to investigate the possible commission of a crime of disobedience. As of the date of issuance of these Consolidated Financial Statements there has been no news about the progress of this cause.

Faced with the evolution of the legal cases that affect it and based on the reports of its legal advisors, Puerto Retiro Management has decided to register in fiscal year 2019 an allowance equivalent to 100% of the book value of its investment property, without prejudice to reverse it when a favorable ruling is obtained in the interposed actions.

9. Investment properties

Changes in the Group’s investment properties according to the fair value hierarchy for the years ended June 30, 2022 and 2021 were as follows:

	June 30, 2022						June 30, 2021
	Level 2			Level 3			Level 2			Level 3
Fair value at the beginning of the year		153,474			146,863			179,631			380,822
Additions		7,364			2,052			449			1,250
Capitalized leasing costs		23			19			21			15
Amortization of capitalized leasing costs (i)		(36	)		(9	)		(11	)		(10	)
Transfers / Reclassification to assets held for sale (iv)		62,350			(63,306	)		(869	)		-
Deconsolidation (ii)		-			-			-			(192,757	)
Disposals (iii)		(29,116	)		-			(35,135	)		-
Currency translation adjustment		(34	)		-			(20	)		(20,262	)
Net gain / (loss) from fair value adjustment		14,533			(883	)		9,408			(22,195	)
Fair value at the end of the year		208,558			84,736			153,474			146,863

(i)	As of June 30, 2022 and 2021, amortization charges of capitalized leasing costs were recognized: ARS 38 and ARS 21 in "Costs" and ARS 7 in "General and administrative expenses", respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24).
(ii)	As of June 30, 2021 corresponds to IDBD.
(iii)	See Notes 4.A and 4.E to these Consolidated Financial Statements.
(iv)	Includes the transfer from level 3 to level 2 of Costa Urbana, see note below.

F-52

IRSA Inversiones y Representaciones Sociedad Anónima

The following is the balance by type of investment property of the Group as of June 30, 2022 and 2021:

	06.30.2022		06.30.2021
Shopping Malls		90,142		83,331
Offices and other rental properties		74,338		122,477
Undeveloped parcels of land		127,956		88,851
Properties under development		567		5,441
Others		291		237
Total		293,294		300,337

Certain investment property assets of the Group have been mortgaged or restricted to secure some of the Group’s borrowings and other payables. The net book value of those properties as of June 30, 2022 and 2021 is as follows:

	06.30.2022		06.30.2021
Córdoba Shopping (i)		2,215		2,832
Total		2,215		2,832

(i) A portion of the Córdoba Shopping mall property is encumbered with an antichresis right as collateral for an advance rent received from NAI International II Inc. amounting to ARS 272 million and ARS 276 million, as of June 30, 2022 and 2021, respectively, (included in “Trade and other payables” in the Consolidated Statements of Financial Position).

The following amounts have been recognized in the Consolidated Statements of Income and Other Comprehensive Income:

	06.30.2022			06.30.2021			06.30.2020
Rental and services income		27,281			18,093			28,092
Direct operating expenses		(9,191	)		(7,264	)		(19,909	)
Development reimbursements		186			187			277
Net realized gain from fair value adjustment of investment properties (i) (ii)		13,980			17,745			2,793
Net unrealized (loss) / gain from fair value adjustment of investment properties		(330	)		(30,487	)		80,287

(i)

As of June 30, 2022, includes ARS 18 for the sale of Casona Hudson, ARS 83 for the sale of Merlo Land, ARS 75 for the sale of Mariano Acosta Land, ARS 113 for the sale of parking spaces in Libertador building, ARS 5,223 for the sale of Catalinas building’s floors and ARS 8,468 for the sale of República building. As of June 30, 2021, includes ARS 8,911 for the sale of Torre Boston, ARS 8,803 for the sale of Bouchard 710 and ARS 31 for the sale of parking spaces in Bouchard 557. As of June 30 ,2020 includes ARS 8 and ARS 887 for the monetary and non-monetary benefit, respectively, corresponding to the barter transaction related to Caballito Ferro land, ARS 1,413 for the sale of floors 10th and 11th of the office building “200 Della Paolera”, and ARS 485 for the deconsolidation of La Maltería S.A.

(ii)

As of June 30, 2022, ARS (9,513) corresponds to the result for changes in the fair value realized for the year ((ARS 103) from the sale of Casona Hudson, (ARS 22) from the sale of Merlo land, (ARS 25) from the sale of Mariano Acosta land, (ARS 104) from the sale of parking spaces in Libertador 498 building, (ARS 2,733) from the sale of Catalinas building and (ARS 6,526) from the sale of República building) and ARS 23,493 from the result of changes in the fair value made in previous years (ARS 121 from the Casona Hudson sale, ARS 105 from the Merlo land sale, ARS 100 from the Mariano Acosta land sale, ARS 217 from the sale of parking spaces in Libertador 498 building, ARS 7,956 from the sale of Catalinas building’s floors and ARS 14,994 from the sale of República Building). As of June 30, 2021, ARS (2,552) corresponds to the result for changes in the fair value realized for the year ((ARS 1,756) from the sale of Torre Boston, (ARS 771) from the sale of Bouchard 710 and (ARS 25) for the sale of parking spaces in Bouchard 557) and ARS 20,297 from the result of changes in the fair value made in previous years (ARS 10,667 from the Boston Tower sale and ARS 9,574 from the Bouchard 710 and ARS 56 from the Bouchard 557 sale). As of June 30, 2020, ARS 1,641 corresponds to net realized gain from fair value on investment properties for the year (ARS 228 from the sale of the Caballito Ferro land and ARS 1,413 from the sale of the “200 Della Paolera” building) and ARS 1,152 net realized gain from fair value on investment properties in previous years (ARS 667 attributable to the Caballito Ferro land and ARS 485 to the deconsolidation of La Maltería S.A.).

See note 5 (liquidity schedule) for detail of contractual commitments related to investment properties.

Valuation processes

The Group’s investment properties were valued at each reporting date by independent professionally qualified appraisers who hold a recognized relevant professional qualification and have experience in the locations and segments of the investment properties appraised. For all investment properties, their current use equates to the highest and best use.

The Group has a team which reviews the appraisals performed by the independent appraisers (the “review team”). The review team: i) verifies all major and important assumptions relevant to the appraisal in the valuation report from the independent appraisers; ii) assesses property valuation movements compared to the valuation report from the prior period; and iii) holds discussions with the independent appraisers.

Changes in Level 2 and 3 fair values, if any, are analyzed at each reporting date during the valuation discussions between the review team and the independent appraisers. The Board of Directors ultimately approves the fair value calculation for recording into the Financial Statements.

F-53

IRSA Inversiones y Representaciones Sociedad Anónima

During the annual investment property valuation process, the following circumstances were identified, among other aspects: i) entry into force of the modifications in the urban planning code of the Autonomous City of Buenos Aires (CABA) with the new urban code law sanctioned in November 2020 and which entered into force in February 2021 modifying approximately one third of the current code, ii) new construction potential, iii) consolidation of new paradigms of the sector imposed by the pandemic, the general economic situation and the situation of the real estate sector that make technical, legal or economically viable buildable potentials or surpluses for alternative uses of the entire portfolio of properties.

In this sense, the shopping malls were the most affected by the aforementioned circumstances, taking into account the size of their plots and their unique and strategic locations, considering an alternative potential realization market.

The impact of the pandemic and the long-term closure of shopping malls led to a reconsideration of the possibility of mixed uses in the buildable potentials of such shopping malls, seeking a new centrality and enhancing the attractiveness in replacement of anchor stores.

On the other hand, the analysis of opening towards its surroundings and the generation of open spaces produced a new distribution of the value of the existing square meters, producing a change of focus on how to maximize said surplus square meters.

This led to reevaluate the analysis of the value of surplus square meters that were potentially marketable, (being that historically they were the most profitable), to reconvert them to other complementary uses. The buildable potentials analyzed have unique, irreplaceable locations, with high potentials, feasible realization and very attractive from an economic point of view. As a data, the value of construction during 2020 improved the relationship of the construction cost and its future sale speculation of square meters.

The identified buildable potentials are included in the value of the investment property based on the methodology established for other Level 2 properties:

1.	Patio Bullrich, CABA
2.	Alto Palermo, CABA
3.	Córdoba Shopping, Córdoba
4.	Alto Rosario, Rosario, Santa Fe.
5.	Beruti 3345/47, CABA.

Valuation techniques used for the estimation of fair value of the investment property

The Group has defined valuation techniques according to the characteristics of each property and the type of market in which these assets are located, in order to maximize the use of observable information available for the determination of fair value.

For the Shopping Malls there is no liquid market for the sale of properties with these characteristics that can be taken as a reference of value. Likewise, the Shopping Malls, a business whose revenue is denominated in Argentine Pesos, are highly related to the fluctuation of macroeconomic variables in Argentina, the purchasing power of individuals, the economic cycle of Gross Domestic Product (GDP) growth, the evolution of inflation, among others. Consequently, the methodology adopted by the Group for the valuation of Shopping Malls is the discounted cash flow model (“DCF”), which allows the volatility of the Argentine economy to be taken into account and its correlation with the revenue streams of the Malls and the inherent risk of the Argentine macroeconomy. The DCF methodology contemplates the use of certain unobservable valuation assumptions, which are determined reliably based on the information and internal sources available at the date of each measurement. These assumptions mainly include the following:

· Future projected income flow based on the current locations, type and quality of the properties, supported by the rental contracts that the Company has signed with its tenants. Because the Company's income arises from the higher value between a Minimum Insured Fixed Value (“VMA”) and a percentage of the sales of the tenants in each Shopping Mall, estimates of the evolution of GDP and Inflation of the Argentine economy provided by external consultants to estimate the evolution of tenant sales, which present a high correlation with these macroeconomic variables. Said macroeconomic projections were contrasted with the projections prepared by the International Monetary Fund (“IMF”), the Organization for Economic Cooperation and Development (“OECD”) and with the Market Expectations Survey (“REM”), which consists of a survey prepared by the Central Bank of the Argentine Republic (“BCRA”) aimed at local and foreign specialized analysts in order to allow a systematic monitoring of the main macroeconomic forecasts in the short and medium term on the evolution of the Argentine economy.

F-54

IRSA Inversiones y Representaciones Sociedad Anónima

· The income from all Shopping Malls was considered to grow with the same elasticity in relation to the evolution of the GDP and the projected inflation. The specific characteristics and risks of each Shopping Mall are captured through the use of the historical average EBITDA Margin of each of them.

· Cash flows from future investments, expansions or improvements in Shopping Mall were not contemplated.

· Terminal value: a perpetuity calculated from the cash flow of the last year of useful life was considered.

· The cash flow for concessions was projected until the termination date of the concession stipulated in the current contract.

· Given the prevailing inflationary context and the volatility of certain macroeconomic variables, a reference long term interest rate in Argentine Pesos is not available to discount the projected cash flows from shopping malls. Consequently, the projected cash flows were dollarized through the future ARS / US$ exchange rate curve provided by an external consultant, which are contrasted to assess their reasonableness with those of the IMF, OECD, REM and the On-shore Exchange Rate Futures Market (ROFEX). Finally, dollarized cash flows were discounted with a long-term dollar rate, the weighted average capital cost rate (“WACC”), for each valuation date.

· The estimation of the WACC discount rate was determined according to the following components:

a)	United State Governments Bonds risk-free rate;
b)	Industry beta, considering comparable companies from the United States, Brazil, Chile and Mexico, in order to contemplate the Market Risk on the risk-free rate;
c)	Argentine country risk considering the EMBI + Index; and
d)	Cost of debt and capital structure, considering that information available from the Argentine corporate market (“blue chips”) was determined as a reference, since sovereign bonds have a history of defaults. Consequently, and because IRSA CP, based on its representativeness and market share represents the most important entity in the sector, we have taken its indicators to determine the discount rate.

For offices, other rental properties, plot of lands and buildable potentials the valuation was determined using transactions of comparable market assets, since the market for offices and land banks in Argentina is liquid and has market transactions that can be taken as reference. These values are adjusted to reflect differences in key attributes such as location, property size and quality of interior fittings (incidence adjustments). The most significant input to the comparable market approach is the price per square meter that derives from the supply and demand in force in the market at each valuation date.

Since September 2019, the real estate market has faced certain changes in terms of its operation as a consequence of the implementation of regulations applicable to the foreign exchange market. In general terms, the measure adopted on September 1, 2019 by the BCRA sets forth that exporters of goods and services should settle foreign currency from abroad in the local exchange market 5 days after the collection of such funds, at the latest. Furthermore, it provides that legal entities residing in Argentina may buy foreign currency without restrictions for imports or payments of debts on the maturity date thereof, although they shall apply for the BCRA´s prior authorization for the purposes of: buying foreign currency in order to form external assets, prepaying debts, making remittances of profits and dividends abroad or transferring funds abroad. Likewise, pursuant to such regulations, access to the market by natural persons for the purchase of dollars was restricted. Afterwards, the BCRA implemented stricter measures, further limiting access to the foreign exchange market (see Note 33).

From the previous year, it is observed that the purchase and sales transactions for office buildings may be settled in Argentine Pesos (by using an implicit foreign exchange rate higher than the official one) or in dollars. Consequently, the most probable scenario is that any sale of office buildings/reserves be settled in Argentine Pesos at an implicit foreign exchange rate higher than the official one. This is evidenced by the transactions consummated by the Group prior to and after the closing of these Consolidated Financial Statements. Therefore, the Group has valued its office buildings, land reserves and buildable potentials in Argentine Pesos at the end of the year considering the situation described above, considering an implicit exchange rate higher than the official one.

In certain situations, it is complex to determine reliably the fair value of developing properties. In order to assess whether the fair value of a developing property can be determined reliably, management considers the following factors, among others:

· The provisions of the construction contract.

· The stage of completion.

· Whether the project / property is standard (typical for the market) or non-standard.

· The level of reliability of cash inflows after completion.

· The specific development risk of the property.

· Previous experience with similar constructions.

· Status of construction permits.

F-55

IRSA Inversiones y Representaciones Sociedad Anónima

There were no changes in the valuation techniques during the year.

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3):

				06.30.22						06.30.21						06.30.20
Description	Valuation technique	Parameters	Range fiscal year 2021 / 2019	Increase			Decrease			Increase			Decrease			Increase			Decrease
Shopping Malls (Level 3)	Discounted cash flows	Discount rate	14.53% / 12.18%		(5,864	)		6,890			(6,297	)		7,525			(10,474	)		12,825
		Growth rate	2.4% / 2.3%		2,636			(2,234	)		2,884			(2,414	)		4,993			(4,077	)
		Inflation	(*)		10,516			(8,704	)		13,399			(11,052	)		21,803			(17,936	)
		Devaluation	(*)		(7,758	)		9,482			(7,145	)		8,732			(10,136	)		12,389

(*) Fiscal year 2022: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 163.65 (corresponding to the year ended June 30, 2023) and arriving at ARS 622.06 in 2028. In the long term, a nominal devaluation rate of 5.57% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 70.9% (corresponding to the year ended June 30, 2023) and stabilizes at 8.0% after 5 years.

Fiscal year 2021: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 116.94 (corresponding to the year ended June 30, 2022) and arriving at ARS 376.56 in 2027. In the long term, a nominal devaluation rate of 27.5% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 44.1% (corresponding to the year ended June 30, 2022) and stabilizes at 30.0% after 5 years.

Fiscal year 2020: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 86.21 (corresponding to the year ended June 30, 2021) and arriving at ARS 243.89 in 2026. In the long term, a nominal devaluation rate of 21.1% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 47.9% (corresponding to the year ended June 30, 2021) and stabilizes at 23.2% after 5 years.

(i) Considering an increase or decrease of: 100 points for the discount and growth rate in Argentina, 10% for the incidence and inflation and 10% for the devaluation.

Costa Urbana –former Solares de Santa María– Costanera Sur, Buenos Aires City (IRSA)

On December 21, 2021, it was published the law from Buenos Aires City congress approving the Regulations for the development of the property of approximately 70 hectares, owned by the Company since 1997, previously known as “Solares de Santa María”, located in front of the Río de la Plata in the South Coast of the Autonomous City of Buenos Aires, southeast of Puerto Madero. The published law grants a New Standard, designated: “U73 - Public Park and Costa Urbana Urbanization”, which enables the combination of diverse uses such as homes, offices, retail, services, public spaces, education, and entertainment.

The Company will have a construction capacity of approximately 895,000 sqm, which will drive growth for the coming years through the development of mixed-use projects.

IRSA will destinate 50.8 hectares for public use, which represents approximately 71% of the total area of the property and will contribute with three additional lots of the property, two for the Sustainable Urban Development Fund and one for the Innovation Trust, Science and Technology of the Government of the Autonomous City of Buenos Aires, to which the sum of USD 2 million in cash and the amount of 3,000,000 sovereign bonds (AL35) will also be contributed. Likewise, the Company will be in charge of the infrastructure and road works on the property and will carry out the public space works contributing up to USD 40 million together with the maintenance of the public spaces assigned for 10 years or until the sum of USD 10 million is completed.

“Costa Urbana” will change the landscape of the City of Buenos Aires, giving life to an undeveloped area and will be in an exceptional property due to its size, location and connectivity, providing the City the possibility of expanding and recovering access to the Río de la Plata coast with areas for walks, recreation, green spaces, public parks and mixed uses.

On October 29, 2021, a notification was received in relation to a collective protective petition requesting the convening of a public hearing prescribed by art. 63 of the Constitution of the City of Buenos Aires and the suspension of the treatment of Bill 1831 - J 2021 (first Instance trail in contentious Administrative and Tax matters No. 10, Sec. 19 - Cause "Civil Association Observatory of the Right to the city and others against GCBA and Others on protection - others" - EXP J-01-00166469-3/2021-0). The Company proceeded to answer the notification on November 12, 2021, requesting its rejection and on March 10, 2022, the court issued a ruling partially upholding the protective petition. On March 15, 2022, IRSA appealed said ruling, as did the Government of the Autonomous City of Buenos Aires, co-defendant in the case. On March 17, 2022, the court granted the appeals in relation and with suspensive effect, of the contested sentence (in accordance with the provisions of Law No. 2145). The matter is to be resolved by the in Administrative, Tax and Consumer Relations Litigation- Room IV.

F-56

IRSA Inversiones y Representaciones Sociedad Anónima

10. Property, plant and equipment

Changes in the Group’s property, plant and equipment for the years ended June 30, 2022 and 2021 were as follows:  

	Agricultural establishments			Buildings and facilities			Machinery and equipment			Communication networks			Others (i)			Total
Net book amount at the June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Costs		23,397			29,746			11,043			248,594			31,754			344,534
Accumulated depreciation		(12,674	)		(17,057	)		(9,308	)		(196,589	)		(15,977	)		(251,605	)
Balances at June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Additions		90			331			105			953			1,236			2,715
Disposals		-			(46	)		(11	)		(90	)		-			(147	)
Deconsolidation		(10,006	)		(7,027	)		(1,304	)		(46,443	)		(13,914	)		(78,694	)
Reclassification to assets assets held for sale		-			(46	)		-			-			-			(46	)
Currency translation adjustment		(761	)		(562	)		(101	)		(3,749	)		(1,117	)		(6,290	)
Transfers		-			1,622			-			-			-			1,622
Depreciation charges (ii)		(46	)		(702	)		(146	)		(2,676	)		(1,720	)		(5,290	)
Net book amount at the June 30, 2021		-			6,259			278			-			262			6,799
Costs		-			11,603			4,121			-			949			16,673
Accumulated depreciation		-			(5,344	)		(3,843	)		-			(687	)		(9,874	)
Balances at June 30, 2021		-			6,259			278			-			262			6,799
Additions		-			282			51			-			2			335
Disposals		-			(2	)		(1	)		-			-			(3	)
Currency translation adjustment		-			-			-			-			(3	)		(3	)
Transfers		-			1,492			19			-			-			1,511
Depreciation charges (ii)		-			(499	)		(111	)		-			(39	)		(649	)
Net book amount at the June 30, 2022		-			7,532			236			-			222			7,990
Costs		-			13,375			4,190			-			948			18,513
Accumulated depreciation		-			(5,843	)		(3,954	)		-			(726	)		(10,523	)
Balances at June 30, 2022		-			7,532			236			-			222			7,990

(i)

Includes furniture and fixtures and vehicles.

(ii)

As of June 30, 2022 and 2021, depreciation charges of property, plant and equipment were recognized: ARS 463 and ARS 515 in "Costs", ARS 182 and ARS 164 in "General and administrative expenses" and ARS 4 and ARS 7 in "Selling expenses", respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). Likewise, a charge of ARS 4,604 has been made in “Discontinued operations” as of June 30, 2021.

11. Trading properties

Changes in the Group’s trading properties for the fiscal years ended June 30, 2022 and 2021 were as follows:

	Completed properties			Properties under development			Undeveloped sites			Total
At June 30, 2020		4,985			2,043			10,638			17,666
Additions		-			669			651			1,320
Deconsolidation		(3,490	)		(233	)		(8,887	)		(12,610	)
Currency translation adjustment		(320	)		(206	)		(612	)		(1,138	)
Transfers		318			(318	)		-			-
Disposals		(1,295	)		(640	)		(420	)		(2,355	)
At June 30, 2021		198			1,315			1,370			2,883
Additions		-			471			37			508
Currency translation adjustment		-			(157	)		-			(157	)
At June 30, 2022		198			1,629			1,407			3,234

	June 30, 2022		June 30, 2021
Non-current		3,041		2,696
Current		193		187
Total		3,234		2,883

(i) Includes Zetol and Vista al Muelle plots of land, which have been mortgaged to secure Group's borrowings. The net book value amounted to ARS 1,629 and ARS 1,315 as of June 30, 2022 and 2021, respectively. Additionally, the Group has contractual obligations not provisioned related to these plots of lands committed when certain properties were acquired or real estate projects were approved, and amount to ARS 953 and ARS 1,486, respectively. As of June 30, 2022, the infrastructure work regarding to sectors A and B of the property has been completed and is in the process of being received, including, among others, the coastal road, roundabouts, lights, landfills, and stormwater and sewage connections for an amount of USD 3.2 MM.

F-57

IRSA Inversiones y Representaciones Sociedad Anónima

12. Intangible assets

Changes in the Group’s intangible assets for the years ended June 30, 2022 and 2021 were as follows:

	Goodwill			Trademarks			Licenses			Customer relations			Information systems and software			Contracts and others			Total
Balance at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Costs		13,899			20,742			27,805			58,450			19,494			32,913			173,303
Accumulated amortization		-			(1,953	)		(21,844	)		(52,355	)		(9,093	)		(19,625	)		(104,870	)
Net book amount at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Additions		-			-			-			46			728			2,793			3,567
Disposals		-			-			-			-			(182	)		-			(182	)
Deconsolidation		(13,904	)		(17,405	)		(5,398	)		(5,151	)		(7,632	)		(10,439	)		(59,929	)
Impairment		(66	)		-			-			-			-			-			(66	)
Currency translation adjustment		292			(1,338	)		(427	)		(446	)		(1,159	)		(981	)		(4,059	)
Amortization charges (i)		-			(46	)		(136	)		(544	)		(1,820	)		(1,282	)		(3,828	)
Balance at June 30, 2021		221			-			-			-			336			3,379			3,936
Costs		221			-			-			-			1,294			3,884			5,399
Accumulated amortization		-			-			-			-			(958	)		(505	)		(1,463	)
Net book amount at June 30, 2021		221			-			-			-			336			3,379			3,936
Additions		-			-			-			-			65			38			103
Disposals		-			-			-			-			-			(471	)		(471	)
Impairment		-			-			-			-			(40	)		-			(40	)
Amortization charges (i)		-			-			-			-			(148	)		(1	)		(149	)
Balance at June 30, 2022		221			-			-			-			213			2,945			3,379
Costs		221			-			-			-			1,319			3,451			4,991
Accumulated amortization		-			-			-			-			(1,106	)		(506	)		(1,612	)
Net book amount at June 30, 2022		221			-			-			-			213			2,945			3,379

(i) Amortization charge was recognized in the amount of ARS 40 and ARS 34 under "Costs", in the amount of ARS 109 and ARS 166 under "General and administrative expenses" as of June 30, 2022 and 2021, respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). Likewise, ARS 3,628 has been charged to the result of discontinued operations as of June 30, 2021.

13. Right-of-use assets

 Below is the composition of the Group´s right-of-use assets as of June 30, 2022 and 2021:

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		17		18
Machinery and equipment		2		7
Convention center		1,223		1,305
Total Right-of-use assets		1,242		1,330
Non-current		1,242		1,330
Total		1,242		1,330

Changes in the Group´s right-of-use assets during the fiscal years ended June 30, 2022 and 2021, were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		1,330			48,913
Additions		-			1,458
Disposals		-			(136	)
Amortization charges		(88	)		(3,135	)
Deconsolidation		-			(42,394	)
Currency translation adjustment		-			(3,376	)
Total		1,242			1,330

F-58

IRSA Inversiones y Representaciones Sociedad Anónima

Depreciation charge for right-of-use assets is detailed below:

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		78		2,119
Telecommunications		-		485
Others		10		531
Total depreciation of right-of-use assets (i)		88		3,135

(i) As of June 30, 2022, depreciation charges were recognized as follows: ARS 79 in "Costs" and ARS 9 in "General and administrative expenses" in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). As of June 30, 2021 includes ARS 2,991 in “discontinued operations”.

Other charges to income related to right-of-use assets were as follows:

	June 30, 2022			June 30, 2021
Lease liabilities interests		(120	)		(458	)
Results from short-term leases		(43	)		(59	)

 The average discount rate and the term of liability for lease recognized as of June 30, 2022 are detailed below:

Average discount rate	Maturity date
10.61%	2023-2041

14. Financial instruments by category

The following note presents the financial assets and financial liabilities by category and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Since the line items “Trade and other receivables” and “Trade and other payables” contain both financial instruments and non-financial assets or liabilities (such as prepayments, trade receivables, trade payables in-kind and tax receivables and payables), the reconciliation is shown in the columns headed “Non-financial assets” and “Non-financial liabilities”. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy.

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels.

In the case of Level 1, valuation is based on quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company can refer to at the date of valuation. In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period. In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no market data is available. The inputs used reflect the Group’s assumptions regarding the factors which market players would consider in their pricing.

The Group’s Finance Division has a team in place in charge of estimating the valuation of financial assets required to be reported in the Consolidated Financial Statements, including the fair value of Level-3 instruments. The team directly reports to the Chief Financial Officer ("CFO"). The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, as of the end of each reporting period.

According to the Group’s policy, transfers among the several categories of valuation are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

F-59

IRSA Inversiones y Representaciones Sociedad Anónima

Financial assets and financial liabilities as of June 30, 2022 are as follows:

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2022
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,057		-		-		-		12,057		3,963		16,020
Investments in financial assets:
- Public companies’ securities		-		1,346		-		-		1,346		-		1,346
- Mutual fonds		-		13,870		-		-		13,870		-		13,870
- Bonds		-		3,806		-		-		3,806		-		3,806
- Others		10		265		-		-		275		-		275
Cash and cash equivalents:
- Cash at bank and on hand		10,015		-		-		-		10,015		-		10,015
- Short-term investments		-		2,761		-		-		2,761		-		2,761
Total assets		22,082		22,048		-		-		44,130		3,963		48,093

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2022
Liabilities as per Statements of Financial Position
Trade and other payables		4,440		-		-		-		4,440		7,641		12,081
Borrowings		74,734		-		-		-		74,734		-		74,734
Derivative financial instruments:
- Swaps		-		-		16		-		16		-		16
Total liabilities		79,174		-		16		-		79,190		7,641		86,831

Financial assets and financial liabilities as of June 30, 2021 were as follows:

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2021
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		11,858		-		-		-		11,858		8,104		19,962
Investments in financial assets:
- Public companies’ securities		-		1,600		-		-		1,600		-		1,600
- Bonds		-		4,446		-		-		4,446		-		4,446
- Investments in financial assets with quotation		16		1,048		-		79		1,143		-		1,143
Cash and cash equivalents:
- Cash at bank and on hand		1,850		-		-		-		1,850		-		1,850
- Short term investments		-		1,317		-		-		1,317		-		1,317
Total assets		13,724		8,411		-		79		22,214		8,104		30,318

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2021
Liabilities as per Statements of Financial Position
Trade and other payables		4,729		-		-		-		4,729		5,913		10,642
Borrowings		101,887		-		-		-		101,887		-		101,887
Derivative financial instruments:		-
- Swaps		-		-		94		-		94		-		94
Total liabilities		106,616		-		94		-		106,710		5,913		112,623

(i) The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 20).

F-60

IRSA Inversiones y Representaciones Sociedad Anónima

The following are details of the book value of financial instruments recognized, which were offset in the statements of financial position:

	As of June 30, 2022							As of June 30, 2021
	Gross amounts recognized		Gross amounts offset			Net amount presented		Gross amounts recognized		Gross amounts offset			Net amount presented
Financial assets
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,587		(530	)		12,057		15,221		(3,363	)		11,858
Financial liabilities
Trade and other payables		3,910		530			4,440		1,366		3,363			4,729

Income, expense, gains and losses on financial instruments can be assigned to the following categories:

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss		Total
June 30, 2022
Interest income		463			-		463
Interest expense		(8,171	)		-		(8,171	)
Interest expense on lease liabilities		(120	)		-		(120	)
Foreign exchange gains, net		14,406			-		14,406
Gain from repurchase of NCN		1,460			-		1,460
Fair value gain on financial assets at fair value through profit or loss		-			1,454		1,454
Interest and discount generated by operating credits		128			-		128
Gain on derivative financial instruments, net		-			33		33
Other finance costs		(463	)		-		(463	)
Total financial instruments (i)		7,703			1,487		9,190

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2021
Interest income		591			-			591
Interest expense		(10,511	)		-			(10,511	)
Interest expense on lease liabilities		(158	)		-			(158	)
Foreign exchange gains, net		11,512			-			11,512
Dividend income		1			-			1
Loss from repurchase of NCN		(156	)		-			(156	)
Fair value gain on financial assets at fair value through profit or loss		-			8,720			8,720
Interest and discount generated by operating credits		157			-			157
Loss on derivative financial instruments, net		-			(740	)		(740	)
Other finance costs		(1,420	)		-			(1,420	)
Total financial instruments (i)		16			7,980			7,996

F-61

IRSA Inversiones y Representaciones Sociedad Anónima

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2020
Interest income		491			-			491
Interest expense		(14,114	)		-			(14,114	)
Interest expense on lease liabilities		(133	)		-			(133	)
Foreign exchange gains, net		(15,386	)		-			(15,386	)
Dividend income		34			-			34
Gain from repurchase of NCN		228			-			228
Fair value gain on financial assets at fair value through profit or loss		-			828			828
Interest and discount generated by operating credits		417			-			417
Loss on derivative financial instruments, net		-			(901	)		(901	)
Other finance costs		(923	)		-			(923	)
Total financial instruments (i)		(29,386	)		(73	)		(29,459	)

(i) Included within “Financial results, net“ in the Consolidated Statements of Income and Other Comprehensive Income, with the exception of interest and discount generated by operating assets, which are included within "Other operating results, net".

The following table presents the changes in Level 3 financial instruments as of June 30, 2022 and 2021:

	Derivative financial instruments - Forwards			Investments in financial assets - Private companies' securities			Investments in financial assets - Others			Derivative financial instruments			Total
Balances at June 30, 2020		(49	)		7,164			571			349			8,035
Deconsolidation		49			(7,164	)		(500	)		(349	)		(7,964	)
Currency translation adjustment		-			-			(7	)		-			(7	)
Gain for the year (i)		-			-			15			-			15
Balances at June 30, 2021		-			-			79			-			79
Currency translation adjustment		-			-			(8	)		-			(8	)
Write off		-			-			(96	)		-			(96	)
Gain for the year (i)		-			-			25			-			25
Balances at June 30, 2022		-			-			-			-			-

(i) Included within “Financial results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

During the fiscal year ended June 30, 2021, there were no transfers between levels of hierarchy of the fair value. During the fiscal year ended June 30, 2022, there were no transfers between levels of hierarchy of the fair value. When there are no quoted prices available in an active market, fair values (especially derivative instruments) are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table.

Description	Pricing model / method	Parameters	Fair value hierarchy	Range
Derivative financial instruments Swaps	Theoretical price	Underlying asset price and volatility	Level 2 and 3		-

As of June 30, 2022, there are no changes in economic or business circumstances that affect the fair value of the Group's financial assets and liabilities that were not considered in the fair value estimation.

F-62

IRSA Inversiones y Representaciones Sociedad Anónima

15. Trade and other receivables

Group’s trade and other receivables as of June 30, 2022 and 2021 were as follows:

	June 30, 2022			June 30, 2021
Sale, leases and services receivables		8,012			7,532
Less: Allowance for doubtful accounts		(853	)		(1,395	)
Total trade receivables		7,159			6,137
Prepaid expenses		339			1,320
Borrowings, deposits and others		4,661			6,017
Advances to suppliers		917			1,558
Tax receivables		935			1,912
Others		1,156			1,623
Total other receivables		8,008			12,430
Total trade and other receivables		15,167			18,567
Non-current		4,336			4,669
Current		10,831			13,898
Total		15,167			18,567

Book amounts of Group's trade and other receivables in foreign currencies are detailed in Note 31.

The fair value of current receivables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant.

Trade accounts receivables are generally presented in the Consolidated Statements of Financial Position net of allowances for doubtful accounts. Impairment policies and procedures by type of receivables are discussed in detail in Note 2. Movements on the Group’s allowance for doubtful accounts were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		1,395			9,199
Additions (i)		250			1,238
Recovery (i)		(282	)		(376	)
Currency translation adjustment		73			(452	)
Deconsolidation		-			(7,614	)
Receivables written off during the year as uncollectable		(12	)		(46	)
Inflation adjustment		(571	)		(554	)
End of the year		853			1,395

(i) The creation and release of the provision for impaired receivables have been included in “Selling expenses” in the Consolidated Statements of Income and Other Comprehensive Income (Note 24).

The Group’s trade receivables comprise several classes. The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables (see Note 5). The Group also has receivables from related parties neither of them is due nor impaired.

Due to the distinct characteristics of each type of receivables, an aging analysis of past due unimpaired and impaired receivables is shown by type and class, as of June 30, 2022 and 2021 (a column of non-past due receivables is also included so that the totals can be reconciled with the amounts appearing on the Consolidated Statement of Financial Position):

F-63

IRSA Inversiones y Representaciones Sociedad Anónima

	Past due
	Up to 3 months		From 3 to 6 months		Over 6 months		Non-past due		Impaired		Total		% of representation
Leases and services		391		238		649		5,607		853		7,738		96.58	%
Consumer financing		-		-		-		87		-		87		1.09	%
Sale of properties and developments		40		-		20		127		-		187		2.33	%
Total as of June 30, 2022		431		238		669		5,821		853		8,012		100.00	%
Leases and services		554		405		1,077		3,794		1,369		7,199		95.58	%
Consumer financing		-		-		-		-		26		26		0.35	%
Sale of properties and developments		-		-		-		307		-		307		4.07	%
Total as of June 30, 2021		554		405		1,077		4,101		1,395		7,532		100.00	%

16. Cash flow information

Following is a detailed description of cash flows generated by the Group’s operations for the years ended June 30, 2022, 2021 and 2020:

	Note		06.30.2022			06.30.2021			06.30.2020
Profit / (loss) for the year				34,892			(61,641	)		58,461
Profit for the year from discontinued operations				-			14,633			8,112
Adjustments for:
Income tax		21		2,770			35,540			16,505
Amortization and depreciation		24		931			1,051			1,174
Net (gain) / loss from fair value adjustment of investment properties				(13,650	)		12,742			(83,080	)
Gain from disposal of associates				-			(61	)		-
Financial results, net				(14,298	)		(10,840	)		32,366
Provisions and allowances				1,560			1,846			2,035
Share of loss / (profit) of associates and joint ventures		8		355			7,182			(17,787	)
Changes in operating assets and liabilities:										-
(Increase) / decrease in inventories				(7	)		43			10
Decrease / (increase) in trading properties				89			(46	)		(971	)
Increase in restricted assets				-			-			(2,870	)
(Increase) / decrease in trade and other receivables				(31	)		2,483			4,680
Increase / (decrease) in trade and other payables				624			(5,553	)		(735	)
Increase / (decrease) in salaries and social security liabilities				31			87			(476	)
Decrease in provisions				(97	)		(176	)		(1,309	)
Net cash generated by / (used in) continuing operating activities before income tax paid				13,169			(2,710	)		16,115
Net cash generated by discontinued operating activities before income tax paid				-			5,577			62,117
Net cash generated by operating activities before income tax paid				13,169			2,867			78,232

F-64

IRSA Inversiones y Representaciones Sociedad Anónima

The following table shows balances incorporated as result of business combination or deconsolidation of subsidiaries:

	June 30, 2022		June 30, 2021			June 30, 2020
Investment properties		-		192,757			383,250
Property, plant and equipment		-		78,694			(12,432	)
Trading properties		-		12,610			382
Intangible assets		-		59,929			7,940
Investments in associates and joint ventures		-		79,438			6,200
Deferred income tax assets		-		931			-
Restricted assets		-		13,775			526
Income tax and MPIT credit		-		699			108
Trade and other receivables		-		115,924			(22,298	)
Right-of-use assets		-		42,394			(9,795	)
Investments in financial assets		-		51,889			33,359
Derivative financial instruments		-		603			(92	)
Inventories		-		7,727			(6,166	)
Group of assets held for sale		-		90,236			-
Borrowings		-		(697,452	)		(216,942	)
Lease liabilities		-		(38,857	)		-
Deferred income tax liabilities		-		(26,665	)		(49,767	)
Trade and other payables		-		(50,426	)		5,697
Lease liabilities		-		-			5,116
Provisions		-		(11,635	)		141
Employee benefits		-		(1,023	)		264
Derivative financial instruments		-		(1,023	)		-
Salaries and social security liabilities		-		(7,260	)		339
Group of liabilities held for sale		-		(47,235	)		-
Income tax expense		-		(977	)		(264	)
Net value of deconsolidated / incorporated assets that do not affect cash		-		(134,947	)		125,566
Cash and cash equivalents		-		(238,316	)		(14,786	)
Non-controlling interest		-		(102,520	)		124,986
Goodwill		-		-			(927	)
Net value of deconsolidated / incorporated assets		-		(475,783	)		234,839
Seller Financed Amount		-		-			-
Net (outflow) / inflow of cash and cash equivalents		-		(475,783	)		234,839

The following table shows a detail of significant non-cash transactions occurred in the years ended June 30, 2022, 2021 and 2020:

	06.30.2022		06.30.2021		06.30.2020
Decrease of associates and joint ventures through an increase of assets held for sale		-		-		5,101
Increase of investment properties through a decrease of financial assets		-		-		685
Increase of trading properties through an increase in borrowings		-		100		30
Increase of property, plant and equipment through an increase of trade and other payables		-		-		1,820
Increase of intangible assets through an increase of trade and other payables		12		-		1,217
Distribution of dividends in shares		-		1,193		1,451
Increase of investment properties through a decrease in trade and other receivables		-		-		69
Issuance of NCN		4,304		-		-
Decrease of property, plant and equipment through an increase of tax receivables and tax debts		-		136		-
Distribution of dividends to non-controlling interest pending payment		-		-		4,337
Decrease in borrowings through a decrease in financial assets		-		-		6,044
Increase in investment properties through an increase in trade and other payables		185		-		1,751
Increase of investment properties through an increase of borrowings		-		668		247
Increase in right-of-use assets through an increase in lease liabilities - Adjustment of opening balances (IFRS 16)		-		-		34,787
Increase in right-of-use assets through an increase in lease liabilities		-		-		19,929
Increase in intangible assets through a decrease in investment in associates		-		1,340		-
Currency translation adjustment		177		18,748		34,929
Increase in investment properties under barter agreements		3,139		-		-
Payment of non-convertible notes		633		-		-
Decrease in lease liabilities through a decrease in trade and other receivables		3		-		-
Decrease in investment properties through an increase in property, plant and equipment		1,558		-		-
Decrease in property, plant and equipment through an increase in investment properties		600		-		-
Decrease in property, plant and equipment through an increase in revaluation surplus		556		-		-
Decrease in revaluation surplus through an increase in deferred income tax liabilities		195		-		-
Increase in intangible assets through an increase salaries and social security liabilities		26		-		-
Increase in investments in associates through a decrease in investments in financial assets		865		-		-
Decrease in borrowings through a decrease in credits for trade and other receivables		441		-		-
Increase in investments in associates and joint ventures through a decrease in investments in financial assets		45		-		-
Capital contributions from non-controlling interest through a decrease of borrowings		4		-		-
Capital contributions from non-controlling interest through an increase in trade and other receivables		5		-		-

F-65

IRSA Inversiones y Representaciones Sociedad Anónima

17. Shareholders’ Equity

Share capital and share premium

The share capital of the Group is represented by common shares with a nominal value of ARS 1 per share and one vote each.

On April 12, 2021, the Company announced the launch of its public offering of shares for up to 80 million shares (or its equivalent 8 million GDS) and 80 million warrants to subscribe for new common shares, to registered holders as of April 16, 2021. Each common share right entitles its holder to subscribe for 0.1382465082 new common shares and to receive free of charge, for each new common share that it purchases pursuant to this offering, one warrant to purchase one additional common share. The final subscription price for the new shares was ARS 58.35 or USD 0.36 and for the new GDS it was USD 3.60. The new shares, registered, of ARS 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.

The 80,000,000 new shares (or its equivalent 8 million GDS) offered were totally subscribed.

Likewise, 80,000,000 warrants were issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares. The exercise price of the warrants is USD 0.432. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year on the business day prior to maturity and on the date of maturity (if dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue. These warrants have been considered as equity instruments.

The Company received all the funds in the amount of USD 28.8 million and issued the new shares, increasing the capital stock to 658,676,460 shares.

By Extraordinary Shareholders’ Meeting dated December 22, 2021, an increase of the capital stock of the company was approved, as a result of the merger by absorption with IRSA Propiedades Comerciales S.A. in the amount of ARS 152,158,215 through the issuance of 152,158,215 common shares of ARS 1 par value each and one vote per share. See Note 4.C to these Consolidated Financial Statements.

As of the date of these Consolidated Financial Statements, the total number of shares issued by the Company amounts to 810,879,553 shares.

Treasury shares

On March 11, 2022, the IRSA Board of Directors approved the shares buyback program issued by the Company and established the terms and conditions for the acquisition of shares issued by the Company, under the terms of Article 64 of Law No. 26,831 and the regulations of the CNV, for up to a maximum amount of ARS1,000 million and up to 10% of the capital stock, up to a daily limit of up to 25% of the average volume of daily transactions experienced by the Company's shares, jointly in the listed markets, during the previous 90 business days, and up to a maximum price of USD 7 per ADS and ARS 140 per share. Likewise, the buyback term was set at up to 120 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.

As of March 31, 2022 the Company has acquired 3,808,472 common shares of ARS 1 par value each for an amount of ARS 348 million approximately, representing the 34.84% of the program. As of the date of issuance of these Consolidated Financial Statements there is no due date for the disposal of the shares acquired.

See Note 34 to these Consolidated Financial Statements, for repurchases after the closing date of the fiscal year.

F-66

IRSA Inversiones y Representaciones Sociedad Anónima

Inflation adjustment of share capital and treasury shares

The inflation adjustment related to share capital is allocated to an inflation adjustment reserve that forms part of shareholders' equity. The balance of this reserve could be applied only towards the issuance of common stock to shareholders of the Company.

Warrants

Common stock purchase options (warrants), issued by IRSA with common shares during the fiscal year and treated as equity instruments, are recorded as a separate component of the equity and are measured at cost; represented by fair value on the issue date using the Black-Scholes pricing model, which incorporates certain inputs assumptions, including shares price and volatility, risk-free interest rate, and warrant maturity.

At the time of the exercise of the warrants by the holders, the warrants are transferred to share capital for the nominal value of the issued shares and the difference with the product is recognized in the share premium.

Legal reserve

According to Law N° 19,550, 5% of the profit of the year is destined to the constitution of a legal reserve until it reaches the legal capped amount (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses.

Special reserve Resolution CNV 609/12 - Retained earnings

The CNV, through General Ruling N° 562/9 and 576/10, has provided for the application of Technical Resolutions N° 26 and 29 of the FACPCE, which adopt the IFRS, as issued by the IASB, for companies subject to the public offering regime ruled by Law 17,811, due to the listing of their shares or corporate notes, and for entities that have applied for authorization to be listed under the mentioned regime. The Group has applied IFRS, as issued by the IASB, for the first time in the year beginning July 1^st, 2012, being its transition date July 1^st, 2011. Pursuant to CNV General Ruling N° 609/12, the Company set up a special reserve reflecting the positive difference between the balance of retained earnings disclosed in the first Financial Statements prepared according to IFRS and the balance of retained earnings disclosed in the last Financial Statements prepared in accordance with previously effective accounting standards. The reserve recorded amounted to ARS 425, which as of June 30, 2017 were fully used to absorb the negative balances in the retained earnings account. During fiscal year ended June 30, 2017, the Company’s Board of Directors decided to change the accounting policy of investment property from the cost method to the fair value method, as allowed by IAS 40. For this reason, as of the transition date, figures have been modified and, hence, the special reserve as set forth by General Ruling CNV N° 609/12 has been increased to ARS 23,164, which may only be reversed to be capitalized or to absorb potential negative balances under retained earnings.

Special reserve

The Ordinary and Extraordinary General Meeting of Shareholders on October 31, 2017 constituted a special reserve which was subsequently utilized to absorb losses and as of June 30, 2022 amounts to ARS 1,337.

Additional paid-in capital from treasury shares

Upon sale of treasury shares, the difference between the net realizable value of the treasury shares sold and the acquisition cost will be recognized, whether it is a gain or a loss, under the non-capitalized contribution account and will be known as “Treasury shares trading premium”.

Dividends

On October 26, 2020, our shareholders held an Ordinary and Extraordinary Meeting and approved an in kind dividend distribution equivalent to ARS 484 million (representative of ARS 0.84 per share) and payable in shares of IRSA CP. Our shareholders decided to consider IRSA CP’s ’quoted price per share as of October 23, 2020, which resulted amounted ARS 320 per share. Pursuant to that shareholders’ decision, we distributed 1,512,500 common shares of IRSA CP. We reflected this transaction on our financial statements as a change in equity, which generated a reduction of the equity attributable to the controlling shareholders totalling ARS 1,189 million restated for inflation as of June 30, 2022.

During the fiscal year ended June 30, 2022 there was no distribution of dividends.

F-67

IRSA Inversiones y Representaciones Sociedad Anónima

18. Trade and other payables

Group’s trade and other payables as of June 30, 2022 and 2021 were as follows:

	June 30, 2022		June 30, 2021
Customers´ advances (*)		3,641		2,894
Trade payables		1,599		1,687
Accrued invoices		1,179		1,409
Admission fees (*)		2,575		1,771
Other income to be accrued		96		128
Tenant deposits		67		148
Total trade payables		9,157		8,037
Taxes payable		1,329		1,120
Other payables		1,595		1,485
Total other payables		2,924		2,605
Total trade and other payables		12,081		10,642
Non-current		3,557		2,274
Current		8,524		8,368
Total		12,081		10,642

(*) Corresponds mainly to admission rights and rents collected in advance, which will accrue in an average term of 3 to 5 years. The variation is mainly due to the new contracts signed and an extraordinary rent in Alto Avellaneda.

The fair value of payables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).

19. Provisions

The Group is subject to claims, lawsuits and other legal proceedings in the ordinary course of business, including claims from clients where a third party seeks reimbursement or damages. The Group’s responsibility under such claims, lawsuits and legal proceedings cannot be estimated with certainty. From time to time, the status of each major issue is evaluated and its potential financial exposure is assessed. If the potential loss involved in the claim or proceeding is deemed probable and the amount may be reasonably estimated, a liability is recorded. The Group estimates the amount of such liability based on the available information and in accordance with the provisions of the IFRS. If additional information becomes available, the Group will make an evaluation of claims, lawsuits and other outstanding proceeding, and will revise its estimates.

The following table shows the movements in the Group's provisions categorized by type:

	Legal claims			Investments in associates and joint ventures (ii)			Site dismantling and remediation			Other provisions			Total
As of 06.30.20		6,144			43			1,102			6,266			13,555
Additions (i)		151			-			46			(182	)		15
Deconsolidation		(5,072	)		-			(1,071	)		(5,492	)		(11,635	)
Recovery (i)		(54	)		(31	)		-			-			(85	)
Used during the year		(166	)		-			-			(46	)		(212	)
Inflation adjustment		(187	)		-			-			-			(187	)
Currency translation adjustment		(400	)		-			(77	)		(546	)		(1,023	)
As of 06.30.21		416			12			-			-			428
Additions (i)		341			-			-			-			341
Share of loss of associates		-			(4	)		-			-			(4	)
Recovery (i)		(79	)		-			-			-			(79	)
Used during the year		(97	)		-			-			-			(97	)
Inflation adjustment		(195	)		-			-			-			(195	)
As of 06.30.22		386			8			-			-			394

	June 30, 2022		June 30, 2021
Non-Current		196		187
Current		198		241
Total		394		428

(i)	Additions and recoveries are included in "Other operating results, net".
(ii)	Corresponds to the equity interest in Puerto Retiro in 2022 and 2021. Additions and recoveries are included in "Share of profit / (loss) of associates and joint ventures".

F-68

IRSA Inversiones y Representaciones Sociedad Anónima

20. Borrowings

The breakdown and the fair value of the Group borrowings as of June 30, 2022 and 2021 was as follows:

	Total as of June 30, 2022		Total as of June 30, 2021		Fair value as of June 30, 2022		Fair value as of June 30, 2021
NCN		66,216		85,081		62,411		79,987
Bank loans		1,012		5,110		1,018		5,131
Bank overdrafts		5,871		8,665		5,871		8,665
Other borrowings		1,015		2,267		1,015		2,267
AABE Debt		405		423		405		423
Loans with non-controlling interests		215		341		215		341
Total borrowings		74,734		101,887		70,935		96,814
Non-current		13,052		76,619
Current		61,682		25,268
Total		74,734		101,887

As of June 30, 2022 and 2021, total borrowings include collateralized liabilities (seller financing, leases and bank loans) of ARS 953 and ARS 1,169, respectively. These borrowings are mainly collateralized by investment properties and property, plant and equipment of the Group (Notes 9 and 10).

The terms of the loans include standard covenants for this type of financial operations. As of the date of these Consolidated Financial Statements, the Group has complied with the covenants contemplated in its respective loan agreements.

The maturity of the Group's borrowings is as follows:

	June 30, 2022		June 30, 2021
Capital
Less than 1 year (i)		60,208		23,234
Between 1 and 2 years		10,470		66,542
Between 2 and 3 years		2,087		9,317
Between 3 and 4 years		106		272
Between 4 and 5 years		253		97
Later than 5 years		-		142
		73,124		99,604
Interest
Less than 1 year (i)		1,474		2,034
Between 1 and 2 years		-		89
Between 2 and 3 years		63		21
Between 3 and 4 years		9		74
Between 4 and 5 years		64		10
Later than 5 years		-		55
		1,610		2,283
		74,734		101,887

(i) On July 6, 2022, the Company completed the exchange of the Series II Notes, for which it canceled and/or extended the amount of USD 239 million of said class. See Note 34 to these Consolidated Financial Statements.

F-69

IRSA Inversiones y Representaciones Sociedad Anónima

The following table shows a breakdown of Group’s borrowing by type of fixed-rate and floating-rate, per currency denomination and per functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2022 and 2021.

	June 30, 2022
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		11,818		-		11,818
US Dollar		-		62,249		62,249
Subtotal fixed-rate borrowings		11,818		62,249		74,067
Floating rate:
Argentine Peso		418		-		418
US Dollar		-		249		249
Subtotal floating-rate borrowings		418		249		667
Total borrowings as per analysis		12,236		62,498		74,734
Total borrowings as per Statement of Financial Position		12,236		62,498		74,734

	June 30, 2021
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		16,605		-		16,605
US Dollar		-		81,573		81,573
Subtotal fixed-rate borrowings		16,605		81,573		98,178
Floating rate:
Argentine Peso		444		-		444
US Dollar		-		3,265		3,265
Subtotal floating-rate borrowings		444		3,265		3,709
Total borrowings as per analysis		17,049		84,838		101,887
Total borrowings as per Statement of Financial Position		17,049		84,838		101,887

The following describes the debt issuances made by the Group for the years ended June 30, 2022 and 2021:

Entity	Series	Issuance / expansion date	Amount in original currency	Maturity date	Interest	Principal payment	Interest payment
					rate
IRSA	Series I	nov-20	USD 3.1	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series VIII	nov-20	USD 31.7	11/12/2023	10.00% n.a.	33% in November 21, 33% in November 22, 34% in November 23	Quarterly
IRSA	Series IX	nov-20	USD 80.7	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series XI	mar-21	USD 15.81	3/1/2024	5.00% n.a.	At expiration	Biannual
IRSA	Series XII	mar-21	UVAs 53.78	03/31/2024	4.00% n.a.	At expiration	Biannual
IRSA	Series XIII	aug-21	USD 58.1	08/26/2024	3.90% n.a	Biannual	Quarterly

The following table shows a detail of evolution of borrowing during the years ended June 30, 2022 and 2021:

	June 30, 2022			June 30, 2021
Balance at the beginning of the year		101,887			926,487
Borrowings		7,427			43,119
Payment of borrowings		(11,834	)		(96,340	)
(Payment) / Collection of short term loans, net		(999	)		6,605
Interests paid		(8,204	)		(23,535	)
Deconsolidation		-			(697,452	)
Accrued interests		7,722			19,465
Cumulative translation adjustment and exchange differences, net		22,656			(71,995	)
Inflation adjustment		(42,666	)		(4,455	)
Reclassifications and other movements		(1,255	)		(12	)
Balance at the end of the year		74,734			101,887

F-70

IRSA Inversiones y Representaciones Sociedad Anónima

Issuance of IRSA Non-convertible Notes

On August 26, 2021, the Company issued USD 58.1 Non-convertible Notes in the local market. The main characteristics of the issue are detailed below:

· Series XIII: denominated in USD and payable in ARS at the applicable exchange rate for USD 58.1 at a fixed rate of 3.9%, with semiannual payments plus. The principal will be paid in three installments, counted from the date of issue: the first one - equal to 25% of the par value of the notes - payable on the date that is 12 (twelve) months after the Issue, on August 26, 2023; the second one - equal to 25% of the par value of the notes - payable on the date that is 30 (thirty) months after the Issue, on February 26, 2024 and the third one - equal to 50% of the par value of the notes - payable on the relevant due date, i.e. August 26, 2024. Price of issuance was 100.0% of the nominal value.

The funds have been used to refinance short-term liabilities.

IRSA´s Series VII Non-convertible Notes Redemption

The Company resolved to early redeem the Series VII Notes maturing last January 21, 2022.

The redemption took place on November 25, 2021, in accordance with the terms and conditions detailed in the Prospectus Supplement for Series VII Notes.

The redemption price was 100% of the face value of the Series VII Notes, plus accrued and unpaid interest, as of the date set for redemption.

21. Taxes

The Group’s income tax has been calculated on the estimated taxable profit for each year at the rates prevailing in the respective tax jurisdictions. The subsidiaries of the Group in the jurisdictions where the Group operates are required to calculate their income taxes on a separate basis; thus, they are not permitted to compensate subsidiaries’ losses against subsidiaries income.

Argentine tax reform

Due to the enactment of Law 27630 published in the Official Gazette on June 16, 2021 and effective for the years beginning on January 1, 2021, the current rates for corporate income tax are modified according to the following scale:

Accumulated net taxable profit				Will pay		More of %			On the surplus of
More of		To
	-		5,000,000		-		25	%		-
	5,000,000		50,000,000		1,250,000		30	%		5,000,000
	50,000,000	Onwards			14,750,000		35	%		50,000,000

The amounts provided for in the scale will be adjusted annually, as of January 1, 2022, considering the annual variation of the Consumer Price Index (CPI), corresponding to the month of October of the year prior to the adjustment, with respect to the same month. from the previous year. The amounts determined by application of the described mechanism will be applicable for the fiscal years that begin after each update.

The Argentine Tax Authority established through the resolution 5248/2022 an extraordinary payment on account of the income tax payable in 3 monthly installments, for companies that meet any of the following requirements:

(i)	The amount of the tax determined from the affidavit corresponding to the fiscal period 2021 (closing between August and December 2021) or 2022 (closing between January and July 2022), as applicable, is equal to or greater than ARS 100 million.
(ii)	The amount of the tax result that arises from the affidavit, without applying the deduction of tax losses from previous years, is equal to or greater than ARS 300 million.

The payment on account will be 25% of the base for calculating the advance if point 1 is met, or 15% of the tax result without taking into account losses from previous years if point 2 is met.

F-71

IRSA Inversiones y Representaciones Sociedad Anónima

The aforementioned payment on account may not be canceled through the compensation mechanism and, furthermore, should not be taken into account when a request for reduction of advances is made.

The expiration of the first installment is in October 2022 for those of the fiscal period 2021 and April 2023 for those of the fiscal period 2022.

The companies that would be paying the extraordinary payment on account are: IRSA, PAMSA, Fibesa and Arcos, all maturing after April 2023.

Submission of income tax presentation – IRSA

Dated November 15, 2021 IRSA CP hereinafter "the taxpayer", which according to what is detailed in the Note. 4.1 has been absorbed by the Company, filed to the Argentine Tax Authority the income tax for the fiscal year ended June 30, 2021 applying the systemic and comprehensive inflation adjustment mechanism as detailed: restating tax amortizations according to articles 87 and 88; updating the computable cost of real estate acquired or built prior to July 1, 2018 and sold in this fiscal year under the terms of article 63; updating the loss of the fiscal period 2018, until the limit of the tax result of the exercise, following the methodology provided in article 25 and updating the costs of inventories as established in article 59, all articles mentioned belong to the income tax law (ordered text in 2019).

The non-application of the aforementioned mechanisms would have implied that the tax to be paid amounted to ARS 1,377, in this way the effective rate to be paid would have consumed a substantial portion of the income obtained by the taxpayer exceeding the reasonable limit of taxation, being configured in the opinion of the taxpayer and his tax and legal advisors an assumption of confiscation, an assumption that at the date of issuance of these Consolidated Financial Statements has not been validated or challenged by the Argentine Tax Authority or by higher courts. Together with the aforementioned income tax presentation, a multinote form was presented in which the application of the mechanisms was reported, arguing that the effective tax rate would represent a percentage that would exceed the reasonable limits of taxation, setting up a situation of confiscation, in violation of art. 17 of the National Constitution (according to doctrine of the judgment "Candy S.A. c/AFIP and another a/ protection action", judgment of 07/03/2009, Judgments 332:1571, and subsequent precedents).

The aforementioned legal doctrine of the national supreme court is fully applicable to the particular case of IRSA, since the application of the regulations that do not allow the application of the integral and systematic inflation adjustment would prevent, as happened in the "Candy case", recognizing the totality of the inflationary effect in its tax balance causing the company to pay taxes on fictitious income.

Notwithstanding what is detailed in the previous paragraph, and given the existing background, the taxpayer timely determined and accounted for the income tax for the fiscal year ended June 30, 2021 without considering the aforementioned adjustment mechanisms, considering that , in the opinion of their tax advisors, the Argentine Tax Authority could challenge the presentation and said challenge could be validated by higher courts because there is no uniform jurisprudence to date that irrefutably validates the taxpayer's position. In this sense, after the merger process detailed in Note 4.1, the Company's Board of Directors has reassessed, together with its tax advisors, the characteristics of the presentation, the existing background and the analysis that the taxpayer made in a timely manner, having concluded in the same sense and therefore it has decided to keep the liability accounted for, which at the closing date of these Consolidated Financial Statements with the computation of accrued interest amounts to ARS 1,743, and is disclosed in the item Income tax liabilities in the Consolidated Statements of Financial Position. As of the date of issuance of these Consolidated Financial Statements, the Company has not received any challenge or formal rejection by the Tax Authority.

The details of the provision for the Group’s income tax, is as follows:

	June 30, 2022			June 30, 2021			June 30, 2020
Current income tax		(16,508	)		(1,571	)		(633	)
Deferred income tax		13,738			(33,969	)		(15,539	)
Minimum presumed income tax		-			-			(333	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

F-72

IRSA Inversiones y Representaciones Sociedad Anónima

The statutory taxes rates in the countries where the Group operates for all of the years presented are:

Tax jurisdiction	Income tax rate
Argentina	25% - 35%
Uruguay	0% - 25%
U.S.A.	0% - 40%
Bermuda / British Virgin Islands / Netherlands	0%
Israel	23% - 24%

Below is a reconciliation between income tax expense and the tax calculated applying the current tax rate, applicable in the respective countries, to profit before taxes for years ended June 30, 2022, 2021 and 2020:

	June 30, 2022			June 30, 2021			June 30, 2020
(Profit) / loss from continuing operations at tax rate applicable in the respective countries		(13,080	)		3,442			(26,437	)
Permanent differences:
Share of (profit) / loss of associates and joint ventures		(155	)		(2,155	)		2,189
Tax loss carryforwards recovery / (unrecognized tax loss carryforwards)		4,649			(3,872	)		(2,055	)
Inflation adjustment permanent difference		15,637			5,774			4,088
Tax rate differential		-			(24,902	)		6,115
Non-taxable profit, non-deductible expenses and others		(328	)		(131	)		4,360
Fiscal transparency		-			(275	)		372
Tax inflation adjustment		(9,493	)		(13,421	)		(5,137	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

Deferred tax assets and liabilities of the Group as of June 30, 2022 and 2021 will be recovered as follows:

	June 30, 2022		June 30, 2021
Deferred income tax asset to be recovered after more than 12 months		963		2,622
Deferred income tax asset to be recovered within 12 months		1,031		7,250
Deferred income tax assets		1,994		9,872

	June 30, 2022			June 30, 2021
Deferred income tax liability to be recovered after more than 12 months		(100,056	)		(121,046	)
Deferred income tax liability to be recovered within 12 months		(452	)		(830	)
Deferred income tax liability		(100,508	)		(121,876	)
Deferred income tax liabilities, net		(98,514	)		(112,004	)

The movement in the deferred income tax assets and liabilities during the years ended June 30, 2022 and 2021, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

	06.30.21			Charged / (Credited) to the statements of income			Revaluation surplus reserve			06.30.22
Assets
Investment properties and Property, plant and equipment		838			(793	)		-			45
Trade and other payables		1,234			279			-			1,513
Tax loss carry-forwards		382			82			-			464
Borrowings		1,765			(1,594	)		-			171
Trade and other receivables		4,814			(5,008	)		-			(194	)
Others		839			(844	)		-			(5	)
Subtotal assets		9,872			(7,878	)		-			1,994
Liabilities
Investment properties and Property, plant and equipment		(94,812	)		5,809			(248	)		(89,251	)
Trade and other receivables		(5,393	)		5,011			-			(382	)
Investments		(4	)		(27	)		-			(31	)
Tax inflation adjustment		(21,318	)		11,106			-			(10,212	)
Borrowings		3			(3	)		-			-
Intangible assets		(123	)		(557	)		-			(680	)
Others		(229	)		277			-			48
Subtotal liabilities		(121,876	)		21,616			(248	)		(100,508	)
Assets (Liabilities), net		(112,004	)		13,738			(248	)		(98,514	)

F-73

IRSA Inversiones y Representaciones Sociedad Anónima

	06.30.20			Currency translation adjustment			Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income			Revaluation surplus reserve			Deconsolidation			Incorporation by business combination		06.30.21
Assets
Investment properties and Property, plant and equipment		730			121			92			-			(105	)		-		838
Trade and other payables		13,096			3,995			(80	)		-			(15,777	)		-		1,234
Tax loss carry-forwards		21,049			3,804			(9,649	)		-			(14,822	)		-		382
Borrowings		379			-			1,386			-			-			-		1,765
Trade and other receivables		162			-			4,652			-			-			-		4,814
Others		3,834			856			(438	)		-			(3,475	)		62		839
Subtotal assets		39,250			8,776			(4,037	)		-			(34,179	)		62		9,872
Liabilities
Investment properties and Property, plant and equipment		(127,242	)		(2,447	)		(11,825	)		(136	)		46,838			-		(94,812	)
Trade and other receivables		(2,271	)		-			(3,122	)		-			-			-		(5,393	)
Investments		(175	)		-			171			-			-			-		(4	)
Tax inflation adjustment		(10,644	)		-			(10,674	)		-			-			-		(21,318	)
Borrowings		(2,350	)		(779	)		154			-			2,978			-		3
Intangible assets		(5,895	)		(1,934	)		275			-			7,431			-		(123	)
Others		2,424			(862	)		(4,457	)		-			2,666			-		(229	)
Subtotal liabilities		(146,153	)		(6,022	)		(29,478	)		(136	)		59,913			-		(121,876	)
Assets (Liabilities), net		(106,903	)		2,754			(33,515	)		(136	)		25,734			62		(112,004	)

Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefits through future taxable profits is probable. Tax loss carry-forwards may have expiration dates or may be permanently available for use by the Group depending on the tax jurisdiction where the tax loss carry-forward is generated. Tax loss carry forwards in Argentina and Uruguay generally expire within 5 years.

As of June 30, 2022, the Group's recognized tax loss carry forward prescribed as follows:

Date	Total
2022		9
2023		130
2024		261
2025		441
2026		308
2027		747
Total		1,896

In order to fully realize the deferred tax asset, the respective companies of the Group will need to generate future taxable income. To this aim, a projection was made for future years when deferred assets will be deductible. Such projection is based on aspects such as the expected performance of the main macroeconomic variables affecting the business, production issues, pricing, yields and costs that make up the operational flows derived from the regular exploitation of fields and other assets of the group, the flows derived from the performance of financial assets and liabilities and the income generated by the Group’s strategy of crop rotation. Such strategy implies the purchase and/or development of fields in marginal areas or areas with a high upside potential and periodical sale of such properties that are deemed to have reached their maximum appreciation potential.

Based on the estimated and aggregate effect of all these aspects on the companies’ performance, Management estimates that as at June 30, 2022, it is probable that the Company will realize all of the deferred tax assets.

The Group did not recognize deferred income tax assets (tax loss carry forwards) of ARS 185 as of June 30, 2022 and ARS 3,056 as of June 30, 2021. Although the Management estimates that the business will generate sufficient income, pursuant to IAS 12, management has determined that, as a result of the recent loss history and the lack of verifiable and objective evidence due to the subsidiary’s results of operations history, there is sufficient uncertainty as to the generation of sufficient income to be able to offset losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

F-74

IRSA Inversiones y Representaciones Sociedad Anónima

22. Leases

The Group as lessee

In the ordinary course of business, the Group leases property or spaces for administrative or commercial use. The agreements entered into include several clauses, including but not limited, to fixed, variable or adjustable payments. Some leases were agreed upon with related parties (Note 30).

The future minimum payments that the Group must pay under leases are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		-		-		5,685
Later than one year and not later than five years		-		-		12,971
Later than five years		-		-		5,907
		-		-		24,563

The Group as lessor

Leases:

In the Shopping Malls segment and Offices segment, the Group enters into operating lease agreements typical in the business. Given the diversity of properties and lessees, and the various economic and regulatory jurisdictions where the Group operates, the agreements may adopt different forms, such as fixed, variable, adjustable leases, etc. For example, operating lease agreements with lessees of Shopping Malls generally include escalation clauses and contingent payments. Income from leases are recorded in the Statement of Income and Other Comprehensive Income under rental and service income in all of the filed fiscal years.

Rental properties are considered to be investment property. Book value is included in Note 9. The future minimum proceeds under non-cancellable operating leases from Group’s shopping malls, offices and other buildings are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		2,709		6,597		1,796
Later than one year and not later than five years		7,066		13,215		50,938
Later than five years		1,274		3,716		23,899
		11,049		23,528		76,633

Revenues from contingent rent for the fiscal years ended June 30, 2022, 2021 and 2020 were as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
Contingent rent		8,296		2,360		3,604

23. Revenues

	June 30, 2022		June 30, 2021		June 30, 2020
Rental and services income		27,281		18,093		28,092
Sales of trading properties and developments		505		1,679		1,796
Revenue from hotels operation and tourism services		4,299		1,510		4,980
Total Group’s revenues		32,085		21,282		34,868

F-75

IRSA Inversiones y Representaciones Sociedad Anónima

24. Expenses by nature

The Group disclosed expenses in the Consolidated Statements of Income and Other Comprehensive Income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following tables provide additional disclosure regarding expenses by nature and their relationship to the function within the Group as of June 30, 2022, 2021 and 2020:

	Costs		General and administrative expenses		Selling expenses			Total as of June 30, 2022
Cost of sale of goods and services		609		-		-			609
Salaries, social security costs and other personnel expenses		4,311		2,012		151			6,474
Depreciation and amortization		620		307		4			931
Fees and payments for services		252		675		505			1,432
Maintenance, security, cleaning, repairs and others		3,497		445		3			3,945
Advertising and other selling expenses		1,327		-		312			1,639
Taxes, rates and contributions		1,092		213		1,277			2,582
Director´s fees		-		1,316		-			1,316
Leases and service charges		257		84		7			348
Allowance for doubtful accounts, net		-		-		(32	)		(32	)
Other expenses		151		225		10			386
Total as of June 30, 2022		12,116		5,277		2,237			19,630

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2021
Cost of sale of goods and services		1,639		-		-		1,639
Salaries, social security costs and other personnel expenses		3,671		1,896		239		5,806
Depreciation and amortization		675		367		9		1,051
Fees and payments for services		208		374		484		1,066
Maintenance, security, cleaning, repairs and others		2,754		448		4		3,206
Advertising and other selling expenses		587		-		66		653
Taxes, rates and contributions		837		204		1,290		2,331
Director´s fees		-		1,386		-		1,386
Leases and service charges		310		59		23		392
Allowance for doubtful accounts, net		-		-		318		318
Other expenses		82		214		10		306
Total as of June 30, 2021		10,763		4,948		2,443		18,154

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2020
Cost of sale of goods and services		1,540		-		-		1,540
Salaries, social security costs and other personnel expenses		4,692		1,968		330		6,990
Depreciation and amortization		800		369		5		1,174
Fees and payments for services		369		928		108		1,405
Maintenance, security, cleaning, repairs and others		4,247		558		8		4,813
Advertising and other selling expenses		1,269		-		169		1,438
Taxes, rates and contributions		1,112		220		1,530		2,862
Director´s fees		-		1,005		-		1,005
Leases and service charges		328		57		48		433
Allowance for doubtful accounts, net		-		-		761		761
Other expenses		192		308		29		529
Total as of June 30, 2020		14,549		5,413		2,988		22,950

F-76

IRSA Inversiones y Representaciones Sociedad Anónima

25. Cost of goods sold and services provided

	Total as of June 30, 2022			Total as of June 30, 2021			Total as of June 30, 2020
Inventories at the beginning of the year (*)		3,001			29,200			24,625
Purchases and expenses		12,631			2,278			141,883
Capitalized finance costs		-			-			30
Currency translation adjustment		(157	)		(9,485	)		20,350
Transfers		-			(502	)		495
Deconsolidation		-			(7,727	)		(382	)
Incorporated by business combination		-			-			651
Inventories at the end of the year (*)		(3,359	)		(3,001	)		(29,200	)
Total costs		12,116			10,763			158,452

The following table presents the composition of the Group’s inventories for the years ended June 30, 2022 and 2021:

	Total as of June 30, 2022		Total as of June 30, 2021
Real estate		3,234		2,883
Others		125		118
Total inventories at the end of the year (*)		3,359		3,001

(*) Includes trading properties and inventories.

26. Other operating results, net

	June 30, 2022			June 30, 2021			June 30, 2020
Result from purchase / sale of subsidiary and associates		-			59			(15	)
Donations		(150	)		(223	)		(244	)
Lawsuits and other contingencies		(276	)		(142	)		(269	)
Administration fees		37			16			37
Interest and discount generated by operating credits		128			157			417
Others		322			(8	)		269
Total other operating results, net		61			(141	)		195

27. Financial results, net

	June 30, 2022			June 30, 2021			June 30, 2020
Finance income:
- Interest income		463			591			491
- Dividend income		-			1			34
Total finance income		463			592			525
Finance costs:
- Interest expenses		(8,291	)		(11,437	)		(14,524	)
- Other finance costs		(902	)		(1,299	)		(923	)
Subtotal finance costs		(9,193	)		(12,736	)		(15,447	)
Capitalized finance costs		-			768			277
Total finance costs		(9,193	)		(11,968	)		(15,170	)
Other financial results:
- Fair value gain of financial assets and liabilities at fair value through profit or loss, net		1,454			8,720			828
- Exchange rate differences, net		14,406			11,512			(15,386	)
- Gain / (loss) from repurchase of NCN		1,460			(156	)		228
- Gain / (loss) from derivative financial instruments, net		33			(740	)		(901	)
- Other financial results		439			(121	)		-
Total other financial results		17,792			19,215			(15,231	)
- Inflation adjustment		2,789			(2,370	)		(26	)
Total financial results, net		11,851			5,469			(29,902	)

28. Earnings per share

Below is a reconciliation between the weighted-average number of common shares outstanding and the diluted weighted-average number of common shares.

	June 30, 2022		June 30, 2021		June 30, 2020
Weighted - average outstanding shares		809		588		575
Adjustments for calculation of diluted earnings per share
Treasury shares		2		-		2
Warrants		80		-		-
Weighted - average diluted common shares		891		588		577

F-77

IRSA Inversiones y Representaciones Sociedad Anónima

(a) Basic

Basic earnings per share amounts are calculated in accordance with IAS 33 "Earning per share" by dividing the profit attributable to equity holders of the Group by the weighted average number of common shares outstanding during the year.

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		809		588			575
Basic earnings per share		42.73		(83.41	)		61.00

(b) Diluted

Diluted earnings per share amounts are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential shares. The Group holds treasury shares and, as of fiscal year 2021, warrants associated with incentive plans with potentially dilutive effect.

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year per share attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		891		588			579
Diluted earnings per share		38.79		(83.41	)		60.66

29. Employee benefits and share-based payments

Incentive Plan

The Group has an equity incentives plan (“Incentive Plan”), created in September 30, 2011, which is aimed at certain employees, directors and top management of the Company and Cresud (the “Participants”). Engagement was voluntary and by invitation of the Board of Directors.

Under the Incentive Plan, over the years 2011, 2012 and 2013, Participants will be entitled to receive shares ("Contributions") of the Company and Cresud based on a percentage of their annual bonus for the years 2011, 2012 and 2013, providing they remain as employees of the Company for at least five years, among other conditions required, to qualify for such Contributions. Contributions shall be held by the Company and Cresud, and as the conditions established by the Plan are verified, such contributions shall be transferred to the Participants. In spite of this, the economic rights of the shares in the portfolio assigned to said participants will be received by them.

Regarding the shares to be delivered by Cresud to the employees of the company, and for the shares to be delivered by IRSA to Cresud employees, the Group accounts the active or passive position measured at the closing date of the financial statements.

For the fiscal years ended June 30, 2021, the Group has incurred a charge related to the Incentive Plan of ARS 1.0.

Movements in the number of matching shares outstanding under the incentive plan corresponding to the Company´s contributions are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
At the beginning		2.1		2.4		2.8
Granted		-0.1		-0.3		-0.4
At the end		2		2.1		2.4

F-78

IRSA Inversiones y Representaciones Sociedad Anónima

The fair value determined at the time of granting the plan after obtaining all the corresponding authorizations was ARS 25.3 per share of IRSA. This fair value was estimated by taking into account the market price of the shares of the Company on said date.

Defined contribution plan

The Group operates a defined contribution plan (the “Plan”) which covers certain selected managers. The Plan was effective as from January 1, 2006. Participants can make pre-tax contributions to the Plan of up to 2.5% of their monthly salary (“Base Contributions”) and up to 15% of their annual bonus (“Extraordinary Contributions”). Under the Plan, the Group matches employee contributions to the plan at a rate of 200% for Base Contributions and 300% for Extraordinary Contributions.

All contributions are invested in funds administered outside of the Group. Participants or their assignees, as the case may be, will have access to the 100% of the Company contributions under the following circumstances:

(i)	ordinary retirement in accordance with applicable labor regulations;
(ii)	total or permanent incapacity or disability;
(iii)	death.

In case of resignation or termination without fair cause, the manager will receive the Group’s contribution only if he or she has participated in the Plan for at least 5 years.

Contributions made by the Group under the Plan amount to ARS 101 and ARS 94 for the fiscal years ended June 30, 2022 and 2021, respectively.

30. Related party transactions

In the normal course of business, the Group conducts transactions with different entities or parties related to it.

Remunerations of the Board of Directors

The Business Companies Act of Argentina (Law N° 19,550), provides that the remuneration to the Board of Directors, where it is not set forth in the Company’s by-laws, shall be fixed by the Shareholders' Meetings. The maximum amount of remuneration that the members of the Board are allowed to receive, including salary and other performance-based remuneration of permanent technical-administrative functions, may not exceed 25% of the profits.

Such maximum amount is limited to 5% where no dividends are distributed to the Shareholders, and will be increased proportionately to the distribution, until reaching such cap where total profits are distributed, except that such remunerations were expressly agreed by the Shareholders' Meeting, for which purpose the matter must be included as one of the items on the agenda.

Some of the Group's Directors are hired under the Employment Contract Law N° 20,744. This Act rules on certain conditions of the work relationship, including remuneration, salary protection, working hours, vacations, paid leaves, minimum age requirements, workmen protection and forms of suspension and contract termination. The remuneration of directors for each fiscal year is based on the provisions established by the Business Companies Act, taking into consideration whether such directors perform technical-administrative functions and depending upon the results recorded during the fiscal year. Once such amounts are determined, they should be approved by the Shareholders’ Meeting.

Senior Management remuneration

The members of the Group’s senior management are appointed and removed by the Board of Directors and perform functions in accordance with the instructions delivered by the Board itself.

F-79

IRSA Inversiones y Representaciones Sociedad Anónima

The Company’s Senior Management is composed of as follows:

Name	Date of Birth	Position	Current position since
Eduardo S. Elsztain	01/26/1960	General Manager	1991
Arnaldo Jawerbaum	08/13/1966	Operating Manager	2022
Jorge Cruces	11/07/1966	Investment Manager	2020
Matías I. Gaivironsky	02/23/1976	Administrative and Financial Manager	2011

The total remuneration paid to members of senior management for their functions consists of a fix salary that takes account of the manager's backgrounds capacity and experience, plus an annual bonus based on their individual performance and the Group's results. Members of senior management participate in defined contributions and share-based incentive plans that are described in Note 29.

The aggregate compensation to the Senior Management for the year ended June 30, 2022 amounts to ARS 77.

Corporate Service Agreement with Cresud

Considering that IRSA and Cresud have operating overlapping areas, the Board of Directors considered it convenient to implement alternatives that allow reducing certain fixed costs of its activity, in order to reduce its impact on operating results, taking advantage of and optimizing the individual efficiencies of each of the companies in the different areas that make up the operational administration.

For this purpose, on June 30, 2004, a Framework Agreement for the Exchange of Corporate Services (“Framework Agreement”) was signed, between IRSA, Cresud and IRSA CP. On December 22, 2021, were held the shareholders' meeting approving the merger by absorption of IRSA and IRSA CP, for which IRSA, in its capacity as absorbing company, is the successor of all the rights and obligations assumed by IRSA CP by the Framework Agreement. The last modification to the Framework Agreement was made on July 12, 2022.

Under this Framework Agreement, corporate services are currently provided for different areas including: Corporate Human Resources, Administration and Finance, Planning, Institutional Relations, Compliance and others.

Under this agreement, the companies entrusted to an external consultant the semi-annual review and evaluation of the criteria used in the process of apportionment of costs to be settled for corporate services, as well as the distribution bases and supporting documentation used in the aforementioned process, through the preparation of a semi-annual report.

It should be noted that the operation under comment allows Cresud and IRSA to maintain absolute independence and confidentiality in their strategic and commercial decisions, being the allocation of costs and benefits made on the basis of operational efficiency and equity, without pursuing individual economic benefits for each of the companies.

Offices and Shopping Malls spaces leases

The offices of our President are located at 108 Bolivar, in the Autonomous City of Buenos Aires. The property has been rented to Isaac Elsztain e Hajes S.A., a company controlled by some family members of Eduardo Sergio Elsztain, our president, and to Hamonet S.A., a company controlled by Fernando A. Elsztain, one of our directors, and some of his family members.

Furthermore, we also let various spaces in our shopping malls (stores, stands, storage space or advertising space) to third parties and related parties such as BHSA.

Donations granted to Fundación IRSA and Fundación Museo de los Niños

Fundación IRSA is a non-profit charity institution that seeks to support and generate initiatives concerning education, the promotion of corporate social responsibility and the entrepreneurial spirit of the youth. It carries out corporate volunteering programs and fosters donations by the employees. The main members of Fundación IRSA's Board of Directors are: Eduardo S. Elsztain (President); Saul Zang (Vice President I), Alejandro Elsztain (Vice President II) and Mariana C. de Elsztain (secretary). It funds its activities with the donations made by us and Cresud.

F-80

IRSA Inversiones y Representaciones Sociedad Anónima

Fundación Museo de los Niños is a non-profit association, created by the same founders of Fundación IRSA and its Management Board is formed by the same members as Fundación IRSA. Fundación Museo de los Niños acts as special vehicle for the development of "Museo de los Niños, Abasto" and "Museo de los Niños, Rosario". On October 29, 1999, our shareholders approved the award of the agreement “Museo de los Niños, Abasto” to Fundación Museo de los Niños. On October 31, 1997, IRSA CP entered into an agreement with Fundación IRSA whereby it loaned 3,800 square meters of the area built in the Abasto Shopping mall for a total term of 30 years, and on November 29, 2005, shareholders of IRSA CP approved another agreement entered into with Fundación Museo de los Niños whereby 2,670.11 square meters built in the Alto Rosario shopping mall were loaned for a term of 30 years. Fundación IRSA has used the available area to house the museum called “Museo de los Niños, Abasto” an interactive learning center for kids and adults, which was opened to the public in April 1999.

Legal Services

The Group hires legal services from Estudio Zang, Bergel & Viñes, at which Saúl Zang was a founding partner and sits at the Board of Directors of the Group companies.

Purchase and sale of goods and/or service hiring

In the normal course of its business and with the aim of making resources more efficient, in certain occasions purchases and/or hires services which later sells and/or recovers for companies or other related parties, based upon their actual utilization.

Sale of advertising space in media

Our company and our related parties frequently enter into agreements with third parties whereby we sell/acquire rights of use to advertise in media (TV, radio stations, newspapers, etc.) that will later be used in advertising campaigns. Normally, these spaces are sold and/or recovered to/from other companies or other related parties, based on their actual use.

Purchase and sale of financial assets

The Group usually invests excess cash in several instruments that may include those issued by related companies, acquired at issuance or from unrelated third parties through secondary market deals.

Investment in investment funds managed by BACS

The Group invests part of its liquid funds in mutual funds managed by BACS among other entities.

Borrowings

In the normal course of its activities, the Group enters into diverse loan agreements or credit facilities between the group’s companies and/or other related parties. These borrowings generally accrue interests at market rates.

Financial and service operations with BHSA

The Group works with several financial entities in the Argentine market for operations including, but not limited to, credit, investment, purchase and sale of securities and financial derivatives. Such entities include BHSA and its subsidiaries. BHSA and BACS usually act as underwriters in Capital Market transactions. In addition, we have entered into agreements with BHSA, who provides collection services for our shopping malls.

The following is a summary presentation of the balances with related parties as of June 30, 2022 and 2021:

Item	June 30, 2022			June 30, 2021
Trade and other receivables		4,382			4,888
Investments in financial assets		2,834			2,583
Borrowings		(166	)		(1,479	)
Lease liabilities		-			(10	)
Trade and other payables		(1,114	)		(740	)
Total		5,936			5,242

F-81

IRSA Inversiones y Representaciones Sociedad Anónima

Related party	June 30, 2022	June 30, 2021	Description of transaction	Item
New Lipstick LLC	30	38	Reimbursement of expenses receivable	Trade and other receivable
Condor	-	902	Public companies securities	Trade and other receivable
	-	469	Loans granted	Trade and other receivable
	-	8	Others	Trade and other receivable
	-	79	Others	Investment in financial assets
Comparaencasa Ltd.	273	-	Other investments	Investments in financial assets
	(41)	-	Others	Trade and other payables
Galerias Pacifico	703	214	Others	Trade and other receivable
Lipstick Management LLC	-	(262)	Loans obtained	Borrowings
Metropolitan 885 Third Av. LLC (1)	-	(774)	Loans obtained	Borrowings
La Rural S.A.	246	120	Loans granted	Trade and other receivable
	204	335	Dividends	Trade and other receivable
	(5)	-	Others	Trade and other payables
	4	-	Others	Trade and other receivable
	-	(21)	Leases and/or rights of use payable	Trade and other payables
Other associates and joint ventures	1	3	Reimbursement of expenses receivable	Trade and other receivable
	(61)	(60)	Loans obtained	Borrowings
	7	10	Leases and/or rights of use receivable	Trade and other receivable
	-	(3)	Unpaid contributions	Trade and other payables
	19	10	Management Fee	Trade and other receivable
	(63)	(172)	NCN	Borrowings
	(42)	(120)	Others	Trade and other payables
	50	40	Others	Trade and other receivable
	1	2	Share based payments	Trade and other payables
	-	(10)	Lease liabilities	Lease liabilities
	-	11	Loans granted	Trade and other receivable
Total associates and joint ventures	1,326	819
Cresud	5	21	Reimbursement of expenses receivable	Trade and other receivable
	(416)	(146)	Corporate services receivable	Trade and other payables
	2,561	2,504	NCN	Investment in financial assets
	(205)	(236)	Others	Trade and other payables
	(3)	(5)	Share based payments	Trade and other payables
Total parent company	1,942	2,138
Futuros y Opciones S.A.	-	(156)	Loans obtained	Borrowings
	2	5	Others	Trade and other receivable
Helmir S.A.	(42)	(52)	NCN	Borrowings
Total subsidiaries of parent company	(40)	(203)
Directors	(364)	(207)	Fees for services received	Trade and other payables
	603	8	Advances	Trade and other receivable
Yad Levim LTD (2)	2,209	2,638	Loans granted	Trade and other receivable
Others (3)	(13)	(2)	Leases and/or rights of use receivable	Trade and other payables
	-	(3)	Loans obtained	Borrowings
	274	25	Others	Trade and other receivable
	(14)	-	Others	Trade and other payables
	(12)	(2)	Management Fee	Trade and other payables
	25	31	Reimbursement of expenses receivable	Trade and other receivable
Total directors and others	2,708	2,488
Total at the end of the year	5,936	5,242

(1)	On January 31, 2022 Metropolitan 885 3rd Av, LLC was liquidated.
(2)	On March 22, 2022 the loan between Tyrus S.A. and YAD LEVIIM LTD was renovated fot 2 more years preserving the same conditions.
(3)	Includes CAMSA, Estudio Zang, Bergel & Viñes, Austral Gold, Fundación IRSA, Hamonet S.A., CAM Communication LP, Gary Gladstein and Fundación Museo de los Niños.

F-82

IRSA Inversiones y Representaciones Sociedad Anónima

The following is a summary of the results with related parties for the years ended June 30, 2022, 2021 and 2020:

Related party	June 30, 2022	June 30, 2021	June 30, 2020		Description of transaction
BACS	58	128	126		Financial operations
Metropolitan 885 Third Av. LLC (1)	31	25	(11)		Financial operations
BHN Vida S.A	25	25	25		Leases and/or rights of use
BHN Seguros Generales S.A.	24	10	25		Leases and/or rights of use
Lipstick Management LLC	20	14	(36)		Financial operations
Comparaencasa Ltd.	192	-	-		Financial operations
La Rural S.A.	-	(25)	-		Leases and/or rights of use
Condor	27	418	-		Financial operations
Otras asociadas y negocios conjuntos	136	19		82	Financial operations
	(14)	(13)	23		Leases and/or rights of use
	31	-	(323)		Corporate services
Total associates and joint ventures	530	601	(89)
Cresud	61	59	48		Leases and/or rights of use
	(1,139)	(1,169)	(1,154)		Corporate services
	(25)	540	551		Financial operations
Total parent company	(1,103)	(570)	(555)
Helmir	1	157	-		Financial operations
Total subsidiaries of parent company	1	157	-
Directors	(1,316)	(1,386)	(1,005)		Fees and remunerations
Senior Management	(77)	(72)	(74)		Fees and remunerations
Yad Leviim LTD	113	-	-		Corporate services
Otras (2)	6	-	-		Corporate services
	10	(26)	-		Leases and/or rights of use
	17	(3)	-		Financial operations
	(63)	(87)	-		Donations
	(15)	-	(57)		Fees and remuneration
	(49)	(49)	(72)		Legal services
Total others	(1,374)	(1,623)	(1,208)
Total at the end of the year	(1,946)	(1,435)	(1,852)

(1)   On January 31, 2022 Metropolitan 885 3rd Av, LLC was liquidated. 

(2)   It includes Isaac Elsztain e Hijos, CAMSA, Hamonet S.A., Ramat Hanassi, Estudio Zang, Bergel & Viñes, and Fundación IRSA. 

The following is a summary of the transactions with related parties for the years ended June 30, 2022 and 2021:

Related party	June 30, 2022	June 30, 2021	Description of the operation
Cresud	-	289	Dividends granted
Total dividends distribution	-	289
Quality	41	(49)	Capital contributions
Condor	865	-	Exchange of shares
Puerto Retiro	-	(20)	Capital contributions
Comparaencasa	129	-	Capital contributions
Total capital contributions	1,035	(69)
Condor	3,586	-	Dividends received
Total other transactions	3,586	-

F-83

IRSA Inversiones y Representaciones Sociedad Anónima

31. Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Item / Currency (3)	Amount (1)		Peso exchange rate (2)		Total as of 06.30.22		Total as of 06.30.21
Assets
Trade and other receivables
US Dollar		27		125.03		3,413		5,329
Euros		-		130.88		11		39
Receivables with related parties:
US Dollar		18		125.23		2,264		3,152
Total trade and other receivables						5,688		8,520
Investments in financial assets
US Dollar		14		125.03		1,723		1,107
Pounds		1		130.95		98		164
New Israel Shekel		16		35.93		574		1,000
Investments with related parties:
US Dollar		23		125.23		2,864		3,676
Total investments in financial assets						5,259		5,947
Cash and cash equivalents
US Dollar		74		125.03		9,224		1,728
Euros		-		130.88		1		2
Total cash and cash equivalents						9,225		1,730
Total Assets						20,172		16,197
Liabilities
Trade and other payables
US Dollar		9		125.23		1,073		1,983
Euros		-		131.40		1		52
Payables to related parties:
US Dollar		-		125.23		60		87
Total Trade and other payables						1,134		2,122
Borrowings
US Dollar		499		125.23		62,503		82,145
Borrowings with related parties
US Dollar		1		125.23		139		2,386
Total Borrowings						62,642		84,531
Derivative financial instruments
US Dollar		-		125.23		16		95
Total derivative financial instruments						16		95
Lease liabilities
US Dollar		9		125.23		1,115		1,282
Lease liabilities with related parties
US Dollar		-		125.23		-		10
Total lease liabilities						1,115		1,292
Total Liabilities						64,907		88,040

(1)	Stated in millions of units in foreign currency. Considering foreign currencies those that differ from each Group’s functional currency at each year-end.
(2)	Exchange rate as of June 30, 2022, according to Banco Nación Argentina records.
(3)	The Group uses derivative instruments as complement in order to reduce its exposure to exchange rate movements (see Note 14).

F-84

IRSA Inversiones y Representaciones Sociedad Anónima

32. Results from discontinued operations

The results of discontinued operations include the operations of IDBD / DIC which were deconsolidated in previous years (see Note 4.G to the Consolidated Financial Statements as of June 30, 2021) and the results of the comparative fiscal years have been reclassified.

	June 30, 2022		June 30, 2021			June 30, 2020
Revenues		-		62,057			255,065
Costs		-		(50,353	)		(182,872	)
Gross profit		-		11,704			72,193
Net loss from fair value adjustment of investment properties		-		(45	)		(7,363	)
General and administrative expenses		-		(7,143	)		(24,309	)
Selling expenses		-		(6,805	)		(33,302	)
Impairment of associates and joint ventures		-		-			(6,084	)
Other operating results, net		-		2,322			879
Profit from operations		-		33			2,014
Share of profit of associates and joint ventures		-		1,178			3,567
Profit before financial results and income tax		-		1,211			5,581
Finance income		-		862			3,316
Finance cost		-		(11,316	)		(41,940	)
Other financial results		-		749			(19,789	)
Financial results, net		-		(9,705	)		(58,413	)
Loss before income tax		-		(8,494	)		(52,832	)
Income tax		-		454			(413	)
Loss from operations that are discontinued		-		(8,040	)		(53,245	)
(Loss) / gain for loss of control		-		(6,593	)		45,133
Loss from discontinued operations		-		(14,633	)		(8,112	)
(Loss) / profit for the year from discontinued operations attributable to:
Equity holders of the parent		-		(11,562	)		(13,984	)
Non-controlling interest		-		(3,071	)		5,872
Loss per share from discontinued operations attributable to equity holders of the parent:
Basic		-		(19.65	)		(24.30	)
Diluted		-		(19.65	)		(24.30	)

F-85

IRSA Inversiones y Representaciones Sociedad Anónima

33. Other relevant events of the year

Ordinary Shareholders’ Meeting

On October 21, 2021, the Ordinary Shareholders’ Meeting approved among others:

- Partially write off the special reserve in the amount of ARS 30,693 which, restated for inflation, amounts to the sum of ARS 50,332, and use it for the total absorption of the negative result for the fiscal year ended June 30, 2021.

Warrants exercise

During the present fiscal year, certain warrant holders exercised their right to acquire additional shares. As of June 30, 2022, USD 19,837 was received, for a converted warrants of 44,878 to common shares.

Economic context in which the Group operates

The Company does business in a complex framework due to the macroeconomic conditions, whose main variables have recently shown high volatility, and also due to regulatory, social and political conditions, both at a national and international level.

Its operating income may be affected by the fluctuations in the inflation rate and in the exchange rate at which the peso is converted into other currencies, mainly the US dollar, the variations in interest rates, which have an impact on the cost of capital, the changes in governmental policies, capital controls and other local and international political or economic events.

The main indicators of the Argentine economy are described below:

· In June 2022, the Monthly Economic Activity Estimator (“EMAE” in Spanish) reported by the National Institute of Statistics and Censuses (“INDEC” in Spanish), registered a variation of 6.4% compared to the same month of 2021, and 1.1% compared to the previous month.

· The annual retail inflation reached 63.98% in the last 12 months. The survey on market expectations prepared by the Argentine Central Bank in July 2022, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 90.2% i.a. for December 2022 and 76.6% for December 2023. Analysts participating in the REM forecast a rebound in economic activity in 2022, reaching an economic growth of 3.4%.

· In the period from June 2021 to June 2022, the Argentine peso depreciated 30.8% against the US dollar according to the wholesale average exchange rate of Banco de la Nación Argentina. Given the exchange restrictions in force since August 2019, as of June 30, 2022, there is an exchange gap of approximately 99.3% between the official price of the dollar and its price in parallel markets, which impacts the level of activity in the economy and affects the level of reserves of the Argentine Central Bank. Additionally, these exchange restrictions, or those that may be dictated in the future, could affect the Group’s ability to access the Single Free Exchange Market (“MULC” in Spanish) to acquire the necessary currencies to meet its financial obligations.

On March 3, 2022, the Central Bank of the Argentine Republic (“BCRA”) published the Communication “A” 7466 which establishes that those who register financial debts with capital maturities in foreign currency scheduled between June and December 2022, must submit a refinancing plan to the BCRA based on the following criteria: (a) that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the principal amount due in the indicated period above, and (b) that the rest of the capital is, at least, refinanced with a new external debt with an average life of 2 years, provided that the new debt is settled in the exchange market.

After the end of the fiscal year, on July 21, 2022, the BCRA published the Communication “A” 7552 through which it includes within the limit of USD 100,000 in available liquid foreign assets that entities may have to access the Foreign Exchange Market, the holding of Argentine deposit certificates representing foreign shares (“Cedears”). Likewise, the rule establishes that the holding of Cedears acquired until 07.21.2022 that exceed said combined limit of USD 100,000 may be held until 08.19.2022. After this period, the companies must get rid of the Cedears positions when they exceed the indicated limit.

F-86

IRSA Inversiones y Representaciones Sociedad Anónima

COVID-19 Pandemic

In December 2019, a new strain of coronavirus (SARS-COV-2), which caused severe acute respiratory syndrome (COVID-19) appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary measures to contain the spread of the virus, including imposing travel restrictions and closing borders, closing businesses deemed non-essential, instructing residents to practice social distancing, implementing lockdowns, among other measures. The ongoing pandemic and these extraordinary government measures are affecting global economic activity, resulting in significant volatility in global financial markets.

On March 3, 2020, the first case of COVID-19 was registered in the country and as of today, approximately 9,500,000 cases of infections had been confirmed in Argentina, by virtue of which the Argentinian Government implemented a series of health measures of social, preventive and mandatory lockdown at the national level with the closure of non- essential activities, including shopping malls, as well as the suspension of flights and border closures, for much of the years 2020 and 2021.

Since the beginning of fiscal year 2022, and until the date of presentation of the financial statements, the Company’s shopping malls are fully operational, as well as the office buildings, despite the remote work modality that some tenants continue to apply. Regarding hotels, operating since December 2020, the sector is recovering thanks to domestic tourism and the government’s incentives to promote it after the prolonged restrictions on air flows that directly affected the influx of international tourism.

The effects of the coronavirus pandemic are not expected to affect business continuity and the Group’s ability to meet its financial commitments for the next twelve months. The Group is closely monitoring the situation and taking all necessary measures to preserve human life and the Group’s businesses.

34. Subsequent events

Series XIV Notes (Exchange of Series II Notes)

As consequence of the regulations established by the BCRA, on July 6, 2022, the company completed the exchange of its Series II Notes, originally issued by IRSA CP, in an aggregate principal amount of USD 360 million, maturing on March 23, 2023. On July 6, 2022, the expiration of the exchange was announced, USD 239 million of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued for an amount of USD 171.2 million and the Series II Notes were partially canceled, the outstanding principal amount is USD 121 million.

The exchange offered two alternatives:

-Option A: Cash payment for up to 30% of the total amount of participation in the exchange, and the difference to complete the exchanged face value, in Series XIV Notes with a premium of 1,015 times. For each USD 1,000 tendered, the bondholder received USD 493.18 million in cash and USD 514.42 million in Series XIV Notes. Under Option A, 60.83% of the notes were accepted.

-Option B: For each USD 1,000 of Series II Notes the bondholder received 1,030 of Series XIV Notes. Under Option B, 39.17% of the notes were accepted.

In both options, the interest accrued as of settlement date was paid.

Series XIV Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%, with interest payable semi-annually on June 22 and December 22 of each year, until expiration. Amortization will be in annual installments payable on June 22 of each year, each for 17.5% from 2024 to 2027 and the remaining 30% on June 22, 2028. The issue price was 100%.

Shares Buyback Program extension and completion

As a subsequent event, on July 12, 2022, the Board of Directors has resolved to extend the term of the shares repurchase plan that was determined by the Board of Directors on March 11, 2022, for an additional period of one hundred and twenty (120) days, maintaining the other terms and conditions that were duly informed.

On September 22, 2022, the Company completed the share buyback program, having acquired the equivalent of 9,419,623 IRSA common shares, which represent approximately 99.51% of the approved program and 1.16% of the outstanding shares.

“Della Paolera 261” floor sale

On August 17, the Company has sold and transferred one floor of the tower “200 Della Paolera” for a total leasable area of approximately 1,184 square meters and 8 parking spaces located in the building. The transaction price was set at approximately USD 12.6 million (USD/square meters 10,600), which had already been paid.

F-87

EX-1.1

EXHIBIT 1.1

RESTATED BY-LAWS OF IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANÓNIMA.

TITLE I. NAME, TERM OF DURATION AND DOMICILE. SECTION ONE: NAME. The Company shall operate under the name of "IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANÓNIMA". A company not adhered to the Optional Statutory Regime of Mandatory Public Tender Offer. SECTION TWO: TERM OF DURATION: The term of duration of the Company shall expire on April 5, 2043. SECTION THREE: DOMICILE: The Company’s registered office shall be located in the City of Buenos Aires, Republic of Argentina, provided, however, that it shall be entitled to set up branches, agencies or any kind of representative offices within Argentina or abroad. TITLE II. PURPOSE. SECTION FOUR: PURPOSE: The Company’s purpose shall be to engage itself, either per se or through third parties, with third parties or associated with third parties or under contracts entered into with public or private physical or artificial persons, or by means of the organization and/or acquisition of artificial persons in the Republic of Argentina or abroad, in the following businesses: I) REAL ESTATE INVESTMENTS, OPERATION AND DEVELOPMENT: through the purchase, sale, swap, acquisition and/or conveyance for any valuable consideration, including permissions acquired by purchase, assignment, conveyance, possession, merger or a grant by the Government and the Company being, to that end, authorized to apply to the national, provincial and municipal governments, for permits and concessions for real estate fit for any use whatsoever, whether urban or rural, within or without Argentina, and/or through the creation, acquisition and/or conveyance, for any valuable consideration, of companies owning such real estate; development, subdivision, (including through the regime of condominium property), urbanization, lotting, organization, use, exploitation, marketing, and/or disposal (including through the regime of condominium property) pursuant to any legal means, contemplated in codified law or not, including purchase and sale, lease, trust, concession, lodging agreement, garage agreement, assignment, agreements pursuant to which real property and/or personal property or credits are created and/or conveyed, etc., over all kinds of real property, whether owned by the Company or by third parties, whether urban or rural, located within or without Argentina, for the purposes and/or uses which, subject to current rules and regulations, are deemed most advisable on a case by case basis, including but not limited to, homes, offices for enterprises and/or professionals, retail stores and/or shopping malls of any size, operation of hotels, apart-hotels, hostels, time-sharing, shopping centers, malls, business strips, multi-storey car parks, parking lots, lots, country clubs, private neighborhoods, private cemeteries, sports centers, entertainment centers, tourist attractions and/or entertainment centers, etc.; II) INVESTMENTS IN SECURITIES of any kind: through the purchase, sale, exchange, lease or any other type of authorized transaction involving shares, negotiable obligations, corporate or Government bonds, certificates of ownership interests in any type of assets, any type of securities, issued by the public or private sector, in Argentina or abroad, personal property and animals of any kind, intellectual property, letters patent, trademarks and industrial rights, designs, power supply and, overall, any other type of personal property and/or rights and the operation and use of such personal property and/or rights; III) CONSTRUCTION AND/OR OPERATION OF PUBLIC WORKS, SERVICES AND PROPERTY: to build, implement, carry out, operate and/or manage public works, public utilities and/or public property, either as a concessionaire, licensee or under any other legal title or modality, irrespective of the use of such, to participate in concessions and/or licenses for public works and/or services and/or property and/or assets and to acquire ownership interests in investment companies that own interests in licensees or concessionaires; IV) REPRESENTATIONS: to accept and carry out representation assignments, agencies, commissions, consignments and/or business management; V) MANAGEMENT: to manage all types of real or personal property, funds, portfolios of loans, real or personal property, assets of any type, either the Company’s or a third party’s, to run homeowners’ associations, parking spaces, garages, multi-storey car parks and parking lots, to carry out agency agreements and/or management assignments, to accept the position of trustee, etc.; VI) CONSTRUCTIONS: to build, recycle, refurbish, revamp, carry out, develop, etc. real property, either the Company’s or a third party’s, in the private and in the public sector, irrespective of their use and in compliance with the applicable rules and regulations, through one or more professionals and/or representatives who are duly qualified and licensed to do so; VII) Advice: advise third parties on the activities mentioned in paragraphs I) to VI) of this Section, as well as on the planning and development of any kind of works, in all cases, as applicable, in compliance with the applicable laws, through qualified and duly licensed experts and/or representatives; and VIII) FINANCING for Real Estate Ventures and/or Projects and/or Works and/or Transactions: To grant loans to be applied to funding real estate undertakings, projects, works and/or developments, to third parties in the private or public sector and/or for the acquisition of real estate, either new or used, irrespective of the use to be given to such real estate, to make capital and/or technology and/or know how contributions for the same purposes already quoted, requesting, in each case, the collateral deemed advisable; this expressly includes granting loans to the Company’s personnel, irrespective of their position and in accordance with the credit rating of each employee and subject to the establishment of a security interest, either personal or real; all of which shall be in compliance with the applicable rules and regulations and to the extent such transactions are not within the scope of the Law of Financial Institutions of Argentina. IX) FINANCING, CREATION, DEVELOPMENT AND OPERATION OF INTERNET-RELATED UNDERTAKINGS, SITES OR PROJECTS: To finance, create, develop and/or operate any type of Internet undertaking, project or site, related, supplementary or ancillary to any of the activities

1

described in the preceding paragraphs I) through VIII). SECTION FIVE: MEANS FOR FULFILLMENT OF CORPORATE PURPOSE: A) For a better fulfillment of its corporate purpose, the Company shall have full legal capacity to acquire rights, undertake obligations and carry out any kind of legal acts related to its corporate purpose and not expressly prohibited by the laws or these Bylaws. B) In particular, the Company may: 1) Acquire through purchase or under any other title, real or personal property and any kind of rights, titles, shares or securities and sell, assign, exchange or otherwise dispose of them under any title, or give them as collateral and encumber them, including by way of guarantee trusts, mortgage, pledge or any other in rem right, and set up easements thereon; 2) Associate with third parties, be they physical or artificial persons, by organizing companies or acquiring interests in companies, entering into temporary business union or pooling agreements; 3) Enter into any kinds of contracts; 4) undertake any kind of obligations, including loans, and execute any kind of transactions with official or private banks, whether national or foreign, international credit agencies and/or any other kind of institutions; 5) Grant commercial loans related to its business; 6) Take and grant powers of attorney; 7) Accept and make donations; 8) Issue negotiable obligations and other debt securities, in Argentina or abroad, denominated in any currency, either secured or unsecured and convertible or not into shares of the Company, as well as other securities. C) In furtherance of the development of the activities included in its corporate purpose, the Company shall be entitled to organize companies or have interests in public or private artificial persons, domiciled in Argentina or abroad. TITLE III. CAPITAL AND SHARES. SECTION SIX: CAPITAL: The movements in the corporate capital shall be reflected in the Company’s balance sheets, indicating authorized amount, class and category of shares, par value and number of votes per share. SECTION SEVEN: SHARES: A) The Company’s shares are designated as common, book-entry shares of one peso ($1) par value each, entitled to one (1) vote per share. B) The Company may issue preferred shares, either with or without voting rights, which shall be issued in book-entry form. Preferred shares shall be entitled to a preferred dividend, either cumulative or not, pursuant to their terms of issue. Preferred shares may also be entitled to an additional share in the net income. SECTION EIGHT: ISSUE OF SHARES: A) The capital may be increased by resolution of the general ordinary shareholders’ meeting. B) Each issue of shares shall be implemented in compliance with the rules of the Argentine Securities Commission, the Exchanges where the Company’s shares are listed, and the Superintendency of Corporations, as well as such foreign rules as may applicable. Any resolution to increase the stock capital shall be cast into a public deed, unless otherwise resolved by the Shareholders’ Meeting on each opportunity, and recorded in the Public Registry of Commerce. C) The Shareholders’ Meeting that resolves upon the issue shall determine the features of the shares to be issued, and may delegate on the Board of Directors the power to determine the time of issue, method and conditions of payment, and delegate any other powers permitted by applicable laws and regulations. D) In the event of an increase in the capital stock or convertible negotiable obligations publicly offered pursuant to Law No. 27,440, the preemptive right set forth in Section 194, Law No. 19,550, restated in 1984, as amended, and Section 11, Law No. 23,576, as amended, shall be exercised exclusively through the placement procedure established in the relevant public offering memorandum without giving effect to the term set forth in such section; holders of shares and convertible negotiable obligations who are beneficiaries of preemptive rights shall have priority in the allocation up to the amount of shares to which they are entitled based on their shareholdings percentages. This shall apply always provided that the purchase orders submitted by the shareholders or holders of convertible negotiable obligations who are beneficiaries of preemptive rights (i) contain such price as arises from the placement procedure or a specified price equal to or higher than the subscription price specified in the public offering; and/or (ii) the shareholders or holders of convertible negotiable obligations who are beneficiaries of preemptive rights express their intention to subscribe the shares at such placement price as determined pursuant to the placement procedure used. In addition, the holders of shares who exercise their preemptive rights shall have accretion rights for the same term as the preemptive rights in the event that, upon expiration of the term for exercising preemptive rights, there is a remaining balance of unsubscribed shares; accretion rights shall be exercised concurrently with preemptive rights. E) Should any capital increase be levied by any tax in the future, it shall be paid on the date of execution of the corresponding registration documents. SECTION NINE: SHARE TRANSFERS: 1. Share Transferability. 1.1. Freedom of conveyance; Limitations. The transfer of Company shares is not subject to any limitation, except in the situations described in paragraphs 2. and 3. as in such cases the relevant provisions under this section shall apply. Such relevant provisions are related in scope to the limitations upon transferability contemplated in section 214 of Law No. 19,550. It is expressly clarified that such limitation shall apply to: (i) the tender offers regulated by Law No. 26,831, as amended, the General Resolutions issued by the Argentine Securities Commission (CNV) and/or any other regulation that may amend, supplement or replace them; (ii) the subscription of shares or any other mechanism that permits the effective acquisition or subscription of shares. 1.2. Scope of application. In the application of this section to the mandatory requirements imposed on tender offers, shares shall be understood to refer to (i) share coupons that confer the right to the delivery of shares; (ii) overall, any other instrument or right exercised that entitles to the delivery of shares, including warrants or purchase options, convertible securities or similar securities that enable the acquisition of shares with voting rights; and (iii) Global Depositary Receipts or American Depositary Receipts. From this point onwards, the use in this section of the term securities, shares or

2

any variation thereof shall be understood to have the scope described in the preceding paragraphs. 2. Takeovers. 2.1. Acquisitions of Controlling Interests. Relevant Acquisitions. For the benefit of the Company and of the shareholders who would be adversely affected by a takeover of the Company without payment of sufficient valuable consideration (control premium) if the provisions in paragraph 3. are not complied with, direct or indirect acquisitions of shares that may allow the purchaser to obtain a controlling interest over the Company (takeovers) shall be prohibited. And, even if such control were not conferred, if the shares intended for acquisition were to represent, in the aggregate, thirty-five per cent (35%) or more of capital stock, with the intended acquisition being for such percentage or for a lower percentage which on top of previously acquired shareholdings would reach or exceed 35% (relevant acquisitions), acquisitions shall be prohibited. 2.2. Exclusions. The following cases shall be excluded from the requirements described in paragraph 3: (i) acquisitions by existing shareholders or by those exercising control over shares or convertible securities in accordance with the provisions of Law No. 26,831, as amended, irrespective of the application of the regulations imposed by the Argentine Securities Commission; and (ii) when shareholdings exceed thirty-five per cent (35%) of the Company’s capital stock, to the extent such excess is due to a distribution of shares or share dividends resolved by the Company’s Shareholders’ Meeting with the requisite majorities mandatory when dealing with extraordinary points in the agenda or in the framework of an issuance of shares as a result of a merger approved by the Company’s Shareholders’ Meeting, subject, in both cases, to the disposal of such excess shareholdings on the earlier of a term of one hundred and eighty days (180 days) counted from the moment the shareholdings were credited to the shareholders’ account or prior to holding any Shareholders’ Meeting. 3. Takeover Bid (“OPA” in Spanish). 3.1. Definition. For all purposes of this section and irrespective of the application of the Regulations of the Argentine Securities Commission to other cases not included herein, as is the case of sub-paragraph 2.2. in the preceding paragraph, tender offers (OPA in Spanish) shall be understood to refer to those pursuant to which, considering all the actions taken, an individual, a legal entity or a group of individuals or legal entities that make the tender offer, aim to obtain an amount of shares such that control over the Company shall be obtained or either a portion of the capital stock equal to or higher than thirty-five per cent (35%), even when such portion of capital stock were not in itself sufficient to obtain control over the Company. For all the purposes of this section, the following holdings shall be accumulated: those in the possession of individuals or legal entities acting in concert or under common management, or being the bidder’s controlling or controlled companies as well as holdings in trusts in which the bidder and/or any individual or legal entity acting in concert or under common management or being the bidder’s controlling or controlled company are directly or indirectly beneficiaries or holders of voting rights. Without prejudice to any penalties that may be imposed on the parties that acting in concert though failing to express such actions in conformity with applicable statutory and regulatory requirements and the definition of action in concert as set forth in Law No. 26,831 and the regulations of the Argentine Securities Commission, an action in concert shall be presumed to exist when: (i) in the case of individuals, there is relationship either by blood or by marriage up to the fourth degree; (ii) in the case of legal entities or other bodies corporate, when there is a common controlling entity, or when, at least a third of management members are the same in those legal entities or bodies corporate. The above notwithstanding, it is expressly understood that no action in concert shall be presumed when there are holdings accumulated by group investment entities with at least 100 members in each one which, and even while under common management, such holdings do not exceed forty-five per cent (45%) of the Company’s capital stock and such institutions expressly represent that they do not aim to obtain or exercise control over the Company. 3.2. Requirements and Procedure. 3.2.1. Notice to the Company; content, elements and information. Irrespective of the submission of the tender offer to the Argentine Securities Commission by the bidder, the bidder must simultaneously with such submission, serve the Company with a written notice of the tender offer it intends to make. The notice shall notify the Company, through a presentation addressed to its Board of Directors, of all the terms and conditions of any agreement or preliminary agreement entered or intended to be entered between the bidder and a Company shareholder under which the bidder would be in the situation described in subparagraph 2.1. of the preceding paragraph (hereinafter the “Preliminary Agreement”) in the event of consummation. In addition, the notice to be served upon the Company shall be accompanied through any reliable means by the following information and elements: (i) The bidder’s identity, nationality, domicile and telephone number; (ii) Should the bidder be a group of individuals, the identity and domicile of each one and those of the managers of each person or entity making up the group, including the identity of the controlling entity of the bidder; (iii) The consideration offered in exchange for the shares and/or securities, expressly itemized pursuant to the relevant mechanism chosen from amongst those described in paragraph 4 (Price) as well as the origin of the funds required to comply with the covenants arising from the tender offer, together with the guarantees to be granted for compliance with the obligations under the tender offer. If the tender offer were subject to the effective acquisition of a minimum number of shares or convertible securities, such minimum number is to be stated, except in the event that, due to their characteristics, such requirement were not applicable to them, pursuant to the provisions set forth in Law No. 26,831, as amended, and the regulations of the Argentine Securities Commission; (iv) The term during which the tender offer shall be in force, which should be the maximum term authorized by the regulations of the Argentine Securities Commission, computed as therein established; (v) An express statement that the tender offer

3

is to be open to all shareholders and that the bidder takes on an irrevocable obligation to acquire all the shares offered subject to the sole condition that the aggregate bid is to exceed the minimum amount informed, except in the event referred to in subsection (iii) above; (vi) An express waiver of the right to assert any claim whatsoever that may arise from the withdrawal of any acceptance provided that such withdrawal were to take place during the term of legal validity of the tender offer (vii) The formal requirements to be met by the acceptance of the tender offer, which must necessarily include the complete identity of the shareholder, the number of shares whose sale has been accepted as well as the establishment by the shareholder tendering acceptance of a domicile of choice for purposes of this section nine; (viii) The accounting records provided for in sections 67 and 234, sub-section 1 of Law No. 19,550 for the last three (3) fiscal years of the bidder or bidders and of their controlling entities, with the minutes documenting approval, if applicable, or the filing of similar documentation in the event the bidder were a person not governed by the provisions of Law No. 19,550; (ix) The policies that the bidder and its controlling entities have in place as regards the distribution of dividends, the formation of reserves, either voluntary or pursuant to the by-laws, if any, when such policies may not be clearly surmised from the accounting documentation or when they have been agreed upon pursuant to agreements amongst the shareholders, and if this were the case, a copy of these agreements must be provided as well and the policies in that respect that the bidder intends to establish in the event the tender offer were successful; (x) The funds necessary for the Company to incur the expenses inherent in transmitting such information to the shareholders; (xi) The statement by the bidder that the tender offer is not within the scope of Law No. 25,156, Defense of Competition or any rule that replaces it, or, if applicable, a copy of all the documentation filed with the antitrust authorities or a commitment to file such documentation simultaneously with the antitrust authorities and with the Company; (xii) a covenant by the bidder that it will provide the Company with any documentation required to be filed with the Argentine Securities Commission or other regulatory agencies in Argentina or abroad in relation to the tender offer simultaneously upon filing such documentation with any such authorities; and; (xiii) a detail of any prior acquisition of shares in the Company by the bidder, by all the individuals or legal entities that had acted in concert or under common management, either as the bidder’s controlled or controlling entities, and the acquisitions of shares by trusts in which the bidder, all the individuals or legal entities that may have acted in concert or under common management, either as the bidder’s controlled or controlling entities are beneficiaries or holders of voting rights, with a copy of any filing with the Argentine Securities Commission or any other foreign regulatory agency in relation with such acquisition. As a condition precedent for the procedure to continue, and within a term no shorter than 5 (five) business days, the Board of Directors shall require, if applicable, that any related information be completed or clarified and it may also request any other additional information or elements when the Board deems it necessary to be better informed and to proceed to a better assessment of the bid, in compliance with the Board’s fiduciary duties to the shareholders and for the benefit of the Company’s interests. 3.2.2. Publications. Term of the tender offer. Upon filing the tender offer with the Argentine Securities Commission and serving notice thereof on the Company, the bidder must simultaneously publish a notice containing substantially all the information detailed above, as well as all other information as determined by the regulations of the Argentine Securities Commission. The notice is to be published for the term and in the media determined by the regulations of the Argentine Securities Commission and additionally, for three (3) days, at minimum, in a newspaper of general circulation in the City of New York and in any other city in whose stock exchange or market the Company’s shares or securities are listed or traded, without prejudice of the bidder’s duty to comply with any applicable rules and regulations established by foreign authorities. The term of the tender offer shall be the maximum admitted by the regulations of the Argentine Securities Commission and, once the authorization to make the tender offer has been granted by the Argentine Securities Commission, it shall start to run the day immediately after the last publication referred to above. 3.2.3. Report by the Board of Directors. Notice to the addressees of the tender offer. Within ten (10) business days of receipt of the communication mentioned in 3.2.1., or, if longer, such other term as set forth in the regulations of the Argentine Securities Commission, or, if all its requirements have been met, as applicable, the Board of Directors shall draft and approve an in-depth report of the implications and likely forecasts that in the opinion of the Board the tender offer would imply for the Company and the shareholders with a specific and duly grounded opinion on the suitability of the transaction proposed to the interests of the Company and the consequential recommendation that the Board of Directors deems advisable, which shall be accompanied by one or more independent appraisal reports. Such report must also contain (i) the Board of Directors’ opinion on the reasonableness of the price offered in the tender offer and a technical recommendation whether to accept or reject the bid, (ii) information on any decision, either made or to be made or under study that has a reasonable likelihood of succeeding and that in the opinion of the Board is relevant for the purpose of accepting or rejecting the bid and, (iii) information on the acceptance or rejection of the tender offer intended by the Directors - including the Directors members of the Executive Committee - and by first line managers who are shareholders in the Company, complying with the publications and filings with the Argentine Securities Commission and Bolsas y Mercados Argentinos S.A. or authorized exchange where the Company’s securities are listed or traded. 4. Price. The price per share shall be the same, it shall be monetary and may not be less than the highest price per share or security resulting from any of the following: (i) the highest price per share paid by the bidder, or on behalf of the bidder,

4

for any acquisition of shares within 2 (two) years preceding the notice mentioned in 3.2.1., adjusted to reflect any stock-split, share dividend, subdivision, creation of classes and/or reclassification thereof or any reclassification that affects or relates to the shares; (ii) the highest selling price at closing during the thirty-day period immediately preceding the notice mentioned above, of one share as listed in Bolsas y Mercados Argentinos S.A., in each case adjusted to reflect any of the contingencies listed in the preceding (i) affecting or relating to the shares and/or convertible securities; (iii) the highest price resulting from the calculation made as explained in (i) and (ii), multiplied by the coefficient resulting from such price and the lowest price in the two-year period prior to the period referred in (i) above or (ii) above, as applicable. In each case, the price shall be adjusted taking into account any of the contingencies explained in (i) affecting or relating to the shares and/or convertible securities; (iv) earnings per share recorded by the Company during the last four fiscal quarters complete and known and immediately preceding the date on which the notice of the tender offer was served upon the Company multiplied by the highest price/earnings ratio recorded by the Company in the two-year period immediately preceding the date of the notice referred to above. Said figures shall be determined on the basis of the average listed price of the Company’s shares and the earnings of the last four fiscal quarters known upon determination; and (v) the book value of the Company’s shares at the time it was served with the notice of the tender offer, multiplied by the highest coefficient resulting from the ratio between the price of the Company’s share and the most recent book value known at the time of each calculation in the two years preceding the notice of the tender offer served on the Company. 5. Withdrawal. The shareholders or holders of securities who accepted the tender offer may withdraw such acceptance throughout the remaining period of validity of the tender offer and the bidder shall have no right to assert any claim whatsoever. Withdrawals of the acceptance are to be notified to the bidder in the domicile informed in the notice of the tender offer served on the Company; in the event there was more than one bidder, such notice of withdrawal shall be valid when served upon any of them. 6. Scope of the acquisition. The bidder shall acquire all the shares in the possession of all the shareholders who accepted the tender offer. If the number of such shares were less than the minimum number fixed by the bidder as a condition to proceed to the acquisition, the bidder may withdraw the bid, provided that it is not a tender offer exempted from such requirement pursuant to subsection 3.2.1.(iii) above. 7. Outcome of the tender offer. Within 48 (forty-eight) hours of expiration of the term of legal validity of the tender offer, or simultaneously with the communications that are to be sent in conformity with the regulations of the Argentine Securities Commission, the bidder must notify the Company, by any reliable means, of the acceptances tendered, detailing for each one the information related to the party tendering the acceptance as described in 3.2.1. (vii). The Board of Directors shall make such information available to the shareholders in the Company's registered office and shall publish it for one (1) day in the same media referred to in 3.2.2. 8. Non-compliance with the requirements. The acquisitions that do not meet the requirements set forth in this section may not be enforced against the Company and they shall not be entered in the Company’s Stock Register irrespective of whether this register is kept by the Company or by a third party. If the Stock Register were kept by a third party, any relevant entries shall be made only when the Board of Directors has by any reliable means notified the entity responsible for keeping the Stock Register that the procedure is complete and that all applicable requirements have been met. Irrespective of this preceding sentence, shares acquired in breach of the provisions in this section, even if entered in the Stock Register, shall have no political or economic rights until the situation relating to acquisition thereof has been duly regularized. Neither shall they be computed in order to determine quorum in the Company’s shareholders’ meetings. 9. Consideration of tender offers in which consideration does not meet the requirements specified in paragraph 4 of this Section Nine. If all other requirements imposed on tender offers in accordance with this Section Nine have been met but the consideration tendered in exchange for the shares does not meet the requirements specified in paragraph 4 of this Section Nine, and if such tender offer were exempted pursuant to subsection 3.2.1. (iii) above, the Board of Directors shall publish the existence of such tender offer for two (2) days in the Bulletin of the Buenos Aires Stock Exchange and in two other publications of general information for investors. If, within 45 (forty-five) days subsequent to publication of the tender offer, at minimum 15% (fifteen per cent) of the shareholders so requested, at its cost the Company shall: (i) hire a leading investment bank to be proposed by the shareholders who made the request for the bank to analyze the tender offer and to issue an opinion on the value of the Company’s shares and (ii) call, as soon as practicable after receipt of such opinion, a shareholders’ meeting in order to consider any amendments to the by-laws that may be required to accept the bid. Irrespective of these provisions, the limitations upon transfers of shares contemplated in this Section Nine as regards the consideration tendered in exchange, shall not be applicable when the bidder has obtained the express and written agreement of the shareholders representing a percentage of capital stock and votes not below 51% (fifty-one per cent), in which assumption there shall be no need to hire an investment bank or to obtain a resolution by the shareholders’ meeting. For all the purposes of this section nine, the shares acquired by the Company shall be considered excluded from the calculation bases used to compute majorities. SECTION TEN: PUBLIC OFFERING. The Company may publicly offer its shares in any Argentine or foreign Stock Exchange or Securities or Over-the-Counter Market, by fulfilling all the necessary requirements and procedures. TITLE IV. NEGOTIABLE OBLIGATIONS AND OTHER SECURITIES. SECTION ELEVEN: NEGOTIABLE OBLIGATIONS. OTHER SECURITIES. (A) The

5

Company may issue in Argentina or abroad, negotiable obligations or other securities, either typical or atypical in accordance with Law No. 19,550 and any special statutes that may apply. (B) The issue may be decided (i) by an ordinary or extraordinary general shareholders’ meeting, whichever applies, according to the applicable legislation, or (ii) by the Board of Directors as long as it is authorized under the legislation in force. When the decision is made by the Shareholders’ Meeting, it may delegate upon the Board of Directors to decide on any or all of the conditions of the issue, pursuant to the applicable legislation. (C) The Company may issue other securities permitted by applicable laws which may be convertible into shares or not. In the case of convertible securities, shareholders shall have preemptive rights, to the extent permitted by the applicable legislation. (D) The Company is also authorized to create classes of shares representing an ownership interest in compliance with the regulations set forth by the Argentine Securities Commission. TITLE V. MANAGEMENT AND ADMINISTRATION. SECTION TWELVE: BOARD OF DIRECTORS: A) Management and administration of the Company’s business is vested in the Board of Directors consisting of such number of members as determined by the shareholders’ meeting, between a minimum of six (6) and a maximum of fifteen (15) regular members, and an equal or smaller number of Alternate Directors who shall replace Regular Directors for any reason, in their order of election. B) One third out of the total number of Directors shall be replaced each year, and each third will serve for a term of three fiscal years. Directors may be reelected indefinitely. For such purpose, the General Ordinary Shareholders’ Meeting that deals with the financial statements as of June 30, 2022 shall determine the initial term of office of the Directors to be elected and shall appoint, for such time only, one third for one fiscal year, one third for two fiscal years, and one third for three fiscal years, so as to satisfy the above mentioned requirement. Without detriment to the foregoing, each Ordinary Shareholders’ Meeting to be held thereafter may decide in each particular case an increase or reduction in the number of Directors (within the minimum and maximum number set forth in this Section) for a term of three fiscal years or such lesser number of fiscal years as may be applicable to give effect to the renewal by thirds at the next ordinary shareholders’ meeting. If at any Ordinary Shareholders’ Meeting the number of directors established were such that, divided by three, would not result in a whole number, such Shareholders’ Meeting may establish the term of office of the Board members so that the term of one third of them expires at the closing of the following fiscal year, the term of the second third of the Board members expires at the closing of the second following fiscal year, and the term of remaining number of Board members expires in the third fiscal year. For purposes of calculating each third, the whole number that is closest to one third shall be considered. C) Notwithstanding rules requiring election by cumulative vote, the Directors shall be elected by slate, so long as no shareholder objects. In the event a shareholder objects, voting shall be for each individual nominee. The slate or individual nominees, as the case may be, shall be elected upon receiving a majority of votes. If no slate were to obtain a majority, there shall be a new vote between the two slates or individual nominees receiving the most votes, and the slate or individual nominees with the most votes shall be deemed elected. SECTION THIRTEEN: Regular directors shall deposit in guarantee for the performance of their duties at least Pesos ten thousand ($ 10,000) or its equivalent in government securities, or where appropriate, through any of the options permitted by the applicable law. SECTION FOURTEEN: VACANCIES. If any position on the Board of Directors becomes vacant in the event of death, disability, disqualification, resignation, removal or temporary absence of one or more Regular Directors, and there are no Alternate Directors available, preventing the Board from holding sessions validly, the Supervisory Committee shall designate Directors to fill all such vacancies until the next general ordinary shareholders’ meeting is held. SECTION FIFTEEN: DISTRIBUTION OF POSITIONS. At the first Board of Directors’ meeting, after each general ordinary shareholders’ meeting, the Board of Directors shall appoint, from amongst its members, the Regular Directors who shall hold the offices of Chairman, First Vice-Chairman and Second Vice-Chairman. SECTION SIXTEEN: MEETINGS. A) The Board of Directors shall hold meetings with the minimum frequency required by applicable law, provided, however, that the Chairman or his substitute may call a meeting when it is deemed advisable or upon request by any member. B) Notices of meetings shall be made by reliable means by the Chairman, or his substitute, at least five days prior to such meeting, indicating the agenda. Items not included in the agenda may be considered if originated after notice of such meeting was made and were considered an urgent matter. C) The Board of Directors shall register all decisions adopted in a minute book legalized for such purpose. The Company’s Board of Directors may act with members present in person, or communicated with each other by other means of simultaneous transmission of sound or images and sound, either existing or to be created in the future and in accordance with the laws in force. The supervisory committee shall put on record the legality of the resolutions adopted. In any event, board minutes shall reflect the kind of participation in the case of members participating from a remote location. SECTION SEVENTEEN: QUORUM AND MAJORITIES. (A) A quorum for a meeting of the Board of Directors is an absolute majority of its regular members or alternates substituting for regular members. (B) Resolutions of the Board of Directors shall be passed upon the affirmative vote of a majority of the Directors in attendance. In case of an impasse, the Chairman or the person substituting for the Chairman shall be entitled to casting vote. (C) The Resolutions of the Board of Directors shall be deemed handed down if quorum had been formed with the directors physically in attendance in the place where the meeting is held, with the remaining directors being authorized to take part in the resolutions adopted to

6

the extent they are able to communicate with the directors physically present through a mechanism that allows them to voice their opinions and cast their votes simultaneously, such as videoconferencing and similar means. SECTION EIGHTEEN: POWERS OF THE BOARD OF DIRECTORS. The Board of Directors has broad powers to organize, manage and direct the Company, including matters requiring special powers, according to section 1881 of the Civil Code and section 9 of Decree-Law No. 5965/63. As a result, the Board of Directors may enter into any legal act necessary to fulfill the corporate purpose on behalf of the Company, such as purchase, sell, exchange, lease personal or real property of any kind, being entitled to set up any kind of in rem rights, grant or receive any pledge, mortgage, personal or other guarantees; enter into any kind of private contracts necessary to fulfill the corporate purpose; give or receive money or security loans, operate with any kind of state or private bank, financial company or entity, national or foreign; issue, endorse or discount promissory notes, bills of exchange and checks on funds or overdrafts; grant and revoke general and special powers of attorney, for court matters, management or others, with broad powers, with or without substitution authority; appoint and remove managers, fixing their salaries and powers; commence, pursue, respond or withdraw complaints or criminal actions; and in general, take any legal step necessary related to the purpose of the Company. The Board of Directors shall be further empowered to call shareholders’ meetings, either general or special, ordinary or extraordinary, as the case may be, establishing the agenda, and shall annually submit to the consideration of the annual ordinary shareholders’ meeting, the annual report and financial statements corresponding to the running fiscal year within the legal term and under due form. The foregoing enumeration is not limitative. Therefore the Board of Directors may, in general, enter into any transaction, act or contract related to the corporate purpose in compliance with the laws. The authority to answer interrogatories during legal proceedings or arbitration shall be vested on the Chairman or on the First or Second Vice-Chairman or on the person/s generally or specially appointed by the Board of Directors. SECTION NINETEEN: REPRESENTATION OF THE COMPANY. The representation of the Company is exercised: (A) by the Chairman of the Board of Directors or his (her) substitute in accordance with these By-laws, or (B) by any two of the remaining Regular Directors acting jointly. In this latter case, the Directors acting on behalf of the Company shall require authorization pursuant to a minute of the meeting of the Board of Directors in which the act involved is authorized. In order to respond to interrogatories in legal proceedings on behalf of the Company, the provisions in the final part of SECTION EIGHTEEN shall apply. SECTION TWENTY: CHAIRMAN. In addition to the powers and duties concerning any Regular Director, the Chairman shall represent the Company under the provisions set forth in the previous section, and has a casting vote in the event of a tie at a meeting of the Board of Directors. The Chairman shall have the duty to comply with and cause the Company to comply with applicable laws, decrees and other regulations, these By-laws and shareholders’ and Board of Directors’ resolutions. SECTION TWENTY-ONE: VICE-CHAIRMAN: (A) The First Vice Chairman shall replace the Chairman in the event of death, disability, disqualification, resignation, removal, or absence, whether permanent or temporary. (B) Should the First Vice Chairman be unable to assume the duties of the Chairman for any of the foregoing reasons, the Second Vice Chairman shall replace the Chairman. (C) In any event, with the exception of a temporary absence, the Board of Directors shall elect a new Chairman within thirty days of a vacancy arising. SECTION TWENTY-TWO: COMMITTEES. A) AUDIT COMMITTEE. The Company shall have an Audit Committee which shall act collectively. It shall be composed of a minimum of three regular directors, who shall be elected by the Board of Directors from among its members, and an equal or lower number of alternate directors, who shall be elected by the Board of Directors from among its members (either regular or alternate directors). All of its members shall be independent. The Audit Committee may act with the members present in person, or communicated with each other by means of simultaneous transmission of sound, images and words, either existing at present or to be created in the future and in accordance with the laws in force. Members communicated remotely shall be computed for the purposes of quorum. The Audit Committee shall adopt resolutions by a majority vote of those present, computing as well the members communicated remotely. In any event, the minutes shall state the kind of participation in the case of members participating from a remote location, indicating the characteristics of the means of communication used. In the case of Audit Committee’s meetings held remotely, the minutes shall be drafted and signed within five (5) business days from the date of the meeting by the present members and the representative of the Supervisory Committee, who shall put on record their attendance to the meeting and verification that the same has been held pursuant to the bylaws and attesting to the resolutions of such committee. The Audit Committee shall make its own regulations. The provisions stated herein for the operation of the Board of Directors and the rules applicable to the Board of Directors shall be applicable to the Audit Committee’s discussions, its minutes books and the frequency of its meetings. The remaining members of the Board of Directors and the statutory auditors may attend and participate in the Committee’s meetings but they are not entitled to vote. The Audit Committee’s rights and duties shall be those set forth in Section 110, Law No. 26,831 on Capital Markets and in Article V, Chapter III, Title II of the Argentine Securities Commission Rules, and all other rights and duties that may be determined in the future. B) EXECUTIVE COMMITTEE. (A) The day-to-day business of the Company is managed by an Executive Committee consisting of no fewer than five (5) and not more than nine (9) regular members. Regular members of the Executive Committee are elected from among the Board of Directors

7

at the first meeting held after the annual ordinary general shareholders’ meeting. The Chairman, Vice Chairman and Second Vice Chairman of the Board of Directors have to, necessarily, be members of the Executive Committee; an alternate member, also selected from the Board of Directors, serves on the Executive Committee in the event of a temporary vacancy of any of the regular members. Stepping down from the office of Regular Director for any reason whatsoever shall automatically imply stepping down from the office of member of the Executive Committee with no need of an express decision. (B) The Executive Committee shall, at its first meeting, designate from among its members a Chairman and a Vice-Chairman, with the latter substituting for the former in the event of absence or permanent or temporary inability to discharge functions. (C) A quorum is achieved at a meeting of the Executive Committee by the presence of three (3) members and adoption of a resolution requires a majority of these three members. In the event of an impasse, the Chairman or the person substituting for the Chairman is entitled to two votes. (D) The Executive Committee, in its first meeting, shall establish the frequency of its meetings, irrespective of the meetings to be held when summoned by its Chairman or the person substituting for the Chairman or in response to a request by any of its members, which requested meeting is to be held within forty-eight (48) hours of the request. Under no circumstances shall these meetings require an agenda previously established and informed. Evidence of these meetings shall be recorded in a book of minutes specially legalized for such purpose. (E) The Executive Committee may divide its functions by creating special three-member (3) Sub-committees and any of these three members may be replaced by the alternate member referred to above. The sub-committees shall abide by the rules of operation previously set forth. (F) Notwithstanding the powers granted to the Board of Directors either by law or these By-laws, the Executive Committee shall manage the day-to-day businesses which are not directly managed by the Board of Directors by reason of its original powers or by delegation. As a result, the Executive Committee may: (1) subject to the strategic objectives established and the decisions made by the Board of Directors, lay down and implement the business, loan, financial and human resources policies to be abided by the Company, as well as any other policy related to the Company’s corporate purpose, executing and conducting any agreement and transaction necessary, including those requiring instrumentation through a notarial deed, (2) subject to the structural guidelines established by the Board of Directors, create, maintain, remove, restructure or transfer any administrative and functional areas and departments within the Company; (3) Create Special Committees, appoint Executive Vice Chairmen, Executive Directors and/or analogous functional structures or levels, appoint the persons who shall fill such positions and determine the scope of their duties; 4) Approve the Company’s headcount, appoint managers, including the general managers and deputy managers and determine their duties, hire personnel of any rank or hierarchy, establish the levels of compensation to be earned by each position in the payroll as well as working conditions and make any other decision related to the Company’s human resources, including promotions and dismissals, with the Chairman of the Executive Committee being authorized to decide transfers, relocations and/or removals and to impose any penalties applicable; 5) Propose to the Board of Directors the creation, opening, transfer or closure of branches, agencies or representative offices within or without Argentina, as well as any involvement in the creation of other companies, including pursuant to acquisitions in other companies domiciled in Argentina or abroad and the disposal, either in whole or in part, of any ownership interests related thereto and supervise the operation of all of them, imparting instructions as applicable in relation to the exercise of corporate rights; 6) Manage and dispose of corporate property on the basis of the general guidelines established by the Board of Directors and irrespective of the attributes of the Board and, with the same scope, borrow funds to apply them to the Company’s operations; 7) Prepare and submit to the consideration of the Board of Directors any plans necessary to develop the policies referred to in sub-section 1) of this paragraph as well as the regime applicable to agreements, the annual budget and the estimates related to expenses, investments and levels of indebtedness; 8) Approve reductions, waiting periods, refinancings, novations, debt cancellations and/or waivers of rights whenever necessary and/or advisable to the Company’s day to day operations; 9) Establish its own internal regulations, if deemed necessary. The preceding list is merely illustrative and the Executive Committee is authorized to carry out any actions necessary inherent in the day-to-day conduct of its corporate business. It is expressly understood that the above functions may be discharged by assigning them to the Special Committees whose creation is contemplated in paragraph E). Irrespective of the attributes of the Board of Directors and of the attributes vested in the Company’s legal representatives, the Minutes of the Executive Committee shall be sufficient documentation to authorize the conduct of any ordinary transaction of the Company, and the only transactions excluded from this requirement are those whose amounts exceed 10% of the Company’s net shareholders’ equity, calculated in accordance with the most recent audited financial statements available at the time of the transaction. TITLE VI. SUPERVISION. SECTION TWENTY-THREE: SUPERVISORY COMMITTEE. A) The Company’s supervision is the responsibility of a Supervisory Committee composed of three (3) regular and three (3) alternate members. Members are elected at the general ordinary shareholders’ meeting. In the first meeting following the General Ordinary Shareholders’ Meeting, the Supervisory Committee shall appoint a Chairman among its members. B) Members shall be elected for a term of one (1) fiscal year. C) The Supervisory Committee shall meet and adopt its resolutions upon the presence and favorable vote of a majority of its members. Pursuant to these By-laws, the Supervisory Committee shall meet whenever it is so

8

required to fulfill its responsibilities and to comply with any applicable rules and regulations. E) The resolutions adopted at such meetings shall be registered in an officially validated minute book. F) In the event of death, disability, disqualification, resignation, removal or absence, whether permanent or temporary of the regular members, the alternate members shall substitute for them in the order of appointment. G) The members of the Supervisory Committee shall have the powers and duties set forth under the Argentine Companies Law. H) The General Ordinary Shareholders’ Meeting shall fix the Supervisory Committee’s compensation pursuant to the provisions of the applicable laws. TITLE VII. SHAREHOLDERS’ MEETINGS. SECTION TWENTY-FOUR: NOTICE OF MEETING. (A) Shareholders’ meetings are convened by the Board of Directors or the Supervisory Committee as required by law or as requested by the holders of at least five percent (5%) of the capital stock of the Company. A meeting requested by the shareholders must be held within thirty (30) days after receipt of such request. B) The first and second notice of ordinary shareholders’ meetings may be made simultaneously pursuant to Section 237 of Law No. 19,550, notwithstanding the provision for unanimous meetings. If simultaneous notice was not given, a Shareholders’ Meeting that is held on second notice for failure to reach quorum at its first notice must be held within thirty (30) days thereafter, in compliance with the publications of notices required by the laws. C) Shareholders’ Meetings, irrespective of their kind, may be held from remote locations and may proceed with shareholders present in person or communicated with each other by means of simultaneous transmission of sound, images and words, such as video conferences or other comparable means, always provided that the accreditation, registration, quorum and representation rules are observed and the virtual confluence and simultaneous participation of the attendants, as well as immediacy in the oral communication and vote casting processes, are ensured. The Supervisory Committee shall put on record the legality of the resolutions adopted. The Board of Directors shall establish the rules and further technical matters governing remote attendance at such meetings and their correct registration, all in compliance with the laws in force and the rules issued by the controlling authority. In all cases, remote Shareholders’ Meetings shall maintain the same jurisdiction as the Company’s. The computation of quorum at remote Shareholders’ Meetings shall include the shareholders who are present through the means of simultaneous transmission of sound or image and sound, either existing at present or to be created in the future, and in accordance with the laws in force. SECTION TWENTY-FIVE: SHAREHOLDERS’ REPRESENTATION. A) Shareholders may be represented at any shareholders’ meeting by granting a proxy by private instrument certified by a notary, judicial or bank officer. B) The rights to shares held jointly must be exercised in unison. SECTION TWENTY-SIX: CHAIRMANSHIP. Shareholders’ Meetings shall be presided by the Chairman of the Board of Directors, or the Director then acting as Chairman of the Board of Directors. SECTION TWENTY-SEVEN: QUORUM AND MAJORITIES. Quorum and majority systems are ruled by Sections 243 and 244 of Law No. 19,550 according to the meeting, except for the quorum for an Extraordinary Shareholders’ Meeting on second notice which shall be held regardless of the number of shareholders with a right to vote present at the meeting. TITLE VIII. BALANCE SHEETS AND ACCOUNTS. SECTION TWENTY-EIGHT: FISCAL YEAR. Fiscal years shall begin on July 1 and end on June 30 of the following year. The financial statements required by law and by legal and technical resolutions in force shall be drawn up as of such date. SECTION TWENTY-NINE: ALLOCATION OF PROFITS. (A) Net income shall be allocated in the following order: (1) 5% (five per cent) is retained in a legal reserve until the amount of such reserve equals 20% (twenty per cent) of the Company’s subscribed capital; (2) such amount as fixed by the Shareholders’ Meeting is allocated to fees payable to the Board of Directors and the Supervisory Committee; and (3) the balance to dividends on shares and to the additional share in profits conferred to preferred shares, as applicable, and to dividends on common shares, or to voluntary reserve or contingency reserve funds, carried forward or used for any purpose as determined by the shareholders’ meeting. B) Cash dividends shall be paid proportionally to the corresponding holdings within thirty (30) days of their approval and the right to receive payment on dividends shall expire three (3) years after they were made available to the shareholders. (C) Annual dividends may be paid in cash or in shares and in cash, jointly, except for those corresponding to employee stock ownership programs, if issued, which shall be paid solely in cash in the term established in sub-paragraph (B). Any other dividends are to be made available to the shareholders in a term not in excess of the term established by the regulations of the Argentine Securities Commission, computed in the manner therein established. Irrespective of the provisions under Section 7, when the terms and conditions of issuance of preferred shares do not expressly provide for the manner of payment of the economic preference, the Shareholders’ meeting may establish that it should be paid in shares of the same class as those issued. (D) Quarterly dividend payments may be made in accordance with applicable rules and regulations and the by-laws. (E) Should distribution of dividends in cash be approved, upon including the issue in the agenda as deserving special consideration, payment thereof may be established to be paid in as many installments as the shareholders’ meeting may have decided, subject to the formalities and in the conditions and the total term applicable in conformity with the regulations in force upon making each decision. TITLE IX. DISSOLUTION AND WINDING-UP. SECTION THIRTY: DISSOLUTION AND WINDING-UP. A) When the Company shall decide its dissolution, liquidation shall be performed by the Board of Directors and the Supervisory Committee, unless the shareholders’ meeting shall appoint a liquidation committee, in which case, the Shareholders’ Meeting shall establish the liquidators’ powers. B) Once corporate liabilities have been met and the capital repaid, the surplus amount shall be distributed ratably among the shareholders according to their respective holdings, with the preferences as herein stated.

9

EX-2.3

EXHIBIT 2.3

EXECUTION VERSION

IRSA Propiedades Comerciales S.A.

as Issuer,

The Bank of New York Mellon

as Trustee, Co-Registrar,

Principal Paying Agent and Transfer Agent,

and

Banco Santander Río S.A.

as Registrar, Paying Agent, Transfer Agent and

Representative of the Trustee in Argentina

INDENTURE

Dated as of March 23, 2016

US$500,000,000 Global Note Program

For Notes Due No Less Than 30 Days

From Date of Original Issue

TABLE OF CONTENTS

	Page
ARTICLE I GENERAL
Section 1.1. Definitions.	2
Section 1.2. Agents.	13
ARTICLE II SECURITIES	14
Section 2.1. Forms.	14
Section 2.2. Form of Trustee’s Certificate of Authentication.	16
Section 2.3. Maximum Aggregate Principal Amount of Securities; Terms of Securities.25	16
Section 2.4. Authentication and Delivery of Securities.	18
Section 2.5. Execution of Securities.	19
Section 2.6. Certificate of Authentication.	19
Section 2.7. Global Securities.	19
Section 2.8. Denomination and Date of Securities.	20
Section 2.9. Payments of Principal and Interest.	20
Section 2.10. Registration, Transfer and Exchange of Securities.	21
Section 2.11. Mutilated, Defaced, Destroyed, Stolen and Lost Securities; Cancellation and Destruction of Securities.	26
Section 2.12. Purchase and Cancellation.	26
ARTICLE III COVENANTS OF IRSA PC	26
Section 3.1. Payment of Principal and Interest.	26
Section 3.2. Offices for Payments, etc.	26
Section 3.3. Appointment to Fill a Vacancy in Office of Trustee.	27
Section 3.4. Payments and Paying Agents.	27
Section 3.5. Taxation.	29
Section 3.6. Maintenance of Books and Records.	29
Section 3.7. Status and Ranking.	30
Section 3.8. Listing.	30
Section 3.9. Maintenance of Corporate Existence; Properties.	30
Section 3.10. Compliance with Law.	30
Section 3.11. Reports to Holders.	30
Section 3.12. Other Information.	31
Section 3.13. Notice of Default.	31
Section 3.14. Further Actions.	31
Section 3.15. Suspension of Covenants.	31
Section 3.16. Limitation on Incurrence of Additional Indebtedness	32

ii

Section 3.17. Limitation on Restricted Payments.	34
Section 3.18. Limitation on Liens.	35
Section 3.19. Limitation on Transactions with Affiliates.	35
Section 3.20. Conduct of Business.	35
Section 3.21. Change of Control.	35
ARTICLE IV DEFAULTS AND REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	36
Section 4.1. Events of Default.	36
Section 4.2. Collection of Indebtedness by Trustee.	38
Section 4.3. Application of Proceeds.	38
Section 4.4. Suits for Enforcement.	39
Section 4.5. Restoration of Rights on Abandonment of Proceedings.	39
Section 4.6. Limitations on Suits by Securityholders.	39
Section 4.7. Unconditional Right of Securityholders to Institute Certain Suits.	39
Section 4.8. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.	40
Section 4.9. Control by Securityholders.	40
Section 4.10. Waiver of Past Defaults.	40
Section 4.11. Payments after a Default.	40
Section 4.12. Notice of Events of Default.	41
ARTICLE V CONCERNING THE TRUSTEE	47
Section 5.1. Duties and Responsibilities of the Trustee.	47
Section 5.2. Certain Rights of the Trustee.	47
Section 5.3. Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof.	47
Section 5.4. Trustee and Agents May Hold Securities; Collections, etc.	47
Section 5.5. Moneys Held By Trustee.	48
Section 5.6. Compensation and Indemnification of Trustee and Its Prior Claim.	48
Section 5.7. Right of Trustee to Rely on Officer’s Certificate, etc.	50
Section 5.8. Persons Eligible for Appointment as Trustee.
Section 5.9. Resignation and Removal; Appointment of Successor Trustee.
Section 5.10. Acceptance of Appointment by Successor Trustee.
Section 5.11. Merger, Conversion, Consolidation or Succession to Business of Trustee.
Section 5.12. Representative of the Trustee in Argentina.
Section 5.13. Application to Agents and to the Representative of the Trustee in Argentina.
Section 5.14. Application to Agents.
ARTICLE VI CONCERNING THE SECURITYHOLDERS	50
Section 6.1. Evidence of Action Taken by Securityholders.	50
Section 6.2. Proof of Execution of Instruments and of Holding of Securities; Record Date.	52
Section 6.3. Holders to Be Treated as Owners.	52
Section 6.4. Securities Owned by IRSA PC Deemed Not Outstanding.	52
Section 6.5. Right of Revocation of Action Taken.	52
Section 6.6. Securityholders’ Meetings.
Section 6.7. Preservation of Information; Communications to Holders.
Section 6.8. Reports by IRSA PC.

iii

ARTICLE VII SUPPLEMENTAL INDENTURES	53
Section 7.1. Supplemental Indentures Without Consent of Securityholders.	53
Section 7.2. Supplemental Indentures With Consent of Securityholders.	53
Section 7.3. Effect of Supplemental Indenture.	53
Section 7.4. Documents to Be Given to the Trustee.
Section 7.5. Notation on Securities in Respect of Supplemental Indentures.
Section 7.6. Conformity with Negotiable Obligations Law.
ARTICLE VIII MERGER, CONSOLIDATION, SALE OR CONVEYANCE	54
Section 8.1. IRSA PC May Consolidate, etc., on Certain Terms.	54
Section 8.2. Surviving Entity Substituted.	54
Section 8.3. Documents to Trustee.	54
ARTICLE IX SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS	55
Section 9.1. Satisfaction and Discharge of Indenture.	55
Section 9.2. Application by Trustee of Funds Deposited for Payment of Securities.	56
Section 9.3. Repayment of Moneys Held by Paying Agent.	56
Section 9.4. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.	57
ARTICLE X REDEMPTION AND REPURCHASE OF SECURITIES	57
Section 10.1. Notice of Redemption; Partial Redemptions.	57
Section 10.2. Payment of Securities Called for Redemption.	57
Section 10.3. Exclusion of Certain Securities from Eligibility for Selection for Redemption.	58
Section 10.4. Redemption at the Option of IRSA PC for Taxation Reasons.	58
ARTICLE XI DEFEASANCE	60
Section 11.1. IRSA PC’s Option to Effect Total Defeasance or Partial Defeasance.	60
Section 11.2. Total Defeasance.	61
Section 11.3. Partial Defeasance.	61
Section 11.4. Conditions to Total Defeasance and Partial Defeasance.	61
Section 11.5. Deposit in Trust; Miscellaneous.	62
Section 11.6. Reinstatement.	63
ARTICLE XII MISCELLANEOUS
Section 12.1. Shareholders, Officers and Directors of IRSA PC Not Subject to Individual Liability.
Section 12.2. Provisions of Indenture for the Sole Benefit of Parties and Securityholders.
Section 12.3. Successors and Assigns of IRSA PC Bound by Indenture.
Section 12.4. Notices and Demands on IRSA PC, Trustee and Securityholders.
Section 12.5. Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein.
Section 12.6. Payments Due on Non-Business Days.
Section 12.7. Governing Law; Consent to Jurisdiction; Waiver of Immunity; Currency Indemnity.
Section 12.8. Waiver of Jury Trial.
Section 12.9. Severability.
Section 12.10. Counterparts.
Section 12.11. Effect of Headings.
Section 12.12. USA PATRIOT Act.

iv

EXHIBITS

Exhibit A -- Form of Global Security

Exhibit B -- Form of Certificate Security

Exhibit C -- Form of Reverse of Securities — Terms and Conditions

Exhibit D -- Form of Certificate for Exchange or Transfer from Rule 144A Global Security to Regulation S Global Security during the Restricted Period

Exhibit E -- Form of Certificate for Exchange or Transfer from Rule 144A Global Security to Regulation S Global Security after the Restricted Period

Exhibit F -- Form of Certificate for Exchange or Transfer from Regulation S Global Security to Rule 144A Global Security

v

THIS INDENTURE, dated as of March 23, 2016 (this “Indenture”), among IRSA Propiedades Comerciales S.A., a sociedad anónima organized under the laws of the Republic of Argentina (“Argentina”) and domiciled at Moreno 877, 22nd Floor, (C1091AAQ) City of Buenos Aires, Argentina (“IRSA PC”), incorporated, organized and registered with the Public Registry of Commerce of the City of Buenos Aires (IGJ) on August 29, 1889, under Number 323, Page 6, Book 85 of the Stock Corporations Volume, with a term of duration which expires on August 28, 2087, The Bank of New York Mellon, a corporation organized under the laws of the State of New York authorized to conduct a banking business, as trustee (in such capacity, the “Trustee”), co-registrar (in such capacity, the “Co-Registrar”), principal paying agent (in such capacity, the “Principal Paying Agent”, and together with any other paying agents appointed by IRSA PC in their respective capacities as such, the “Paying Agents”) and transfer agent (in such capacity, a “Transfer Agent”, and together with any other transfer agents appointed by IRSA PC in their respective capacities as such, the “Transfer Agents”), and Banco Santander Río S.A., a bank duly incorporated and existing under the laws of Argentina, as registrar (in such capacity, the “Registrar”), Paying Agent, Transfer Agent and representative of the Trustee in Argentina (in such capacity, the “Representative of the Trustee in Argentina”).

W I T N E S S E T H :

WHEREAS, IRSA PC has duly authorized, by resolution of its shareholders at meetings held on October 31, 2011, October 31, 2013, March 26, 2015 and October 30, 2015 and resolution of its Board of Directors at meetings held on July 23, 2012, March 17, 2014, July 28, 2015 and January 6, 2016, its Global Note Program (the “Program”) for the issuance from time to time of up to an aggregate principal amount outstanding at any one time of US$500,000,000 (or its equivalent in other currencies) of debt securities (the “Securities”) in one or more series as may be determined by IRSA PC from time to time; provided, however, that the total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under this Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders;

WHEREAS, the Program has been authorized by the Argentine Comisión Nacional de Valores (the “CNV”) (National Securities Commission) by its Resolution No. 17,375 dated June 18, 2014 and Resolution No. 17,775 dated August 21, 2015;

WHEREAS, the Securities will qualify as “obligaciones negociables simples no convertibles” under Argentine Law No. 23,576, as amended (the “Negotiable Obligations Law”), Argentine Law No. 26,831 (the “Capital Markets Law”) and the rules of the CNV;

WHEREAS, IRSA PC has duly authorized the execution and delivery of this Indenture to provide, among other things, for the authentication, delivery and administration of Securities issued on and after the date hereof;

WHEREAS, the Trustee has agreed to act as Trustee under this Indenture on the following terms and conditions; and

WHEREAS, all things necessary to make this Indenture a valid indenture and agreement according to its terms have been done.

NOW, THEREFORE, in consideration of the premises and the purchases of the Securities by the Holders (as defined below) thereof, IRSA PC and the Trustee mutually covenant and agree for the equal and proportionate benefit of the Holders from time to time of the Securities as follows:

1

ARTICLE I

GENERAL

Section 1.1. Definitions. The following terms (except as otherwise expressly provided or unless the context otherwise clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.1. References to the schedules and exhibits shall be construed to refer to the schedules and exhibits to this Indenture. The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article I have the meanings assigned to them in this Article I and include the plural as well as the singular.

“Acquired Indebtedness” means Indebtedness of a Person existing at the time such Person merges or consolidates with IRSA PC or is assumed by IRSA PC in connection with the acquisition of assets from such Person. Such Indebtedness will be deemed to have been Incurred at the time such Person merges or consolidates with IRSA PC or at the time such Indebtedness is assumed by IRSA PC in connection with the acquisition of assets from such Person.

“Additional Amounts” has the meaning set forth in Section 3.5.

“Additional Securities” means, with respect to a Series of Securities, additional Securities of such Series that IRSA PC may create and issue from time to time without the consent of the Holders of the Securities of such Series; provided that: (i) the creation and issuance of such Additional Securities are permitted pursuant to the terms of such Series of Securities established pursuant to Section 2.3; (ii) such Additional Securities have the same terms and conditions as the Securities of the relevant Series (except for the date of issue, the issue price, the applicable legends, the date from which interest accrues and, if applicable, the first payment of interest); and provided further that: if the Additional Securities are not fungible for U.S. federal income tax purposes with the previously outstanding Securities of the relevant Series, such Additional Securities shall have a separate CUSIP number. Such Additional Securities shall be consolidated with and form a single Series with the previously outstanding Securities of such Series.

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

“Agent” or “Agents” means any Registrar, Co-Registrar, Transfer Agent, Paying Agent, Calculation Agent, Exchange Rate Agent or other agent appointed by IRSA PC pursuant to this Indenture.

“Amortized Face Amount” means, with respect to the optional redemption of an Original Issue Discount Security, an amount equal to the sum of (i) the issue price of such Security (as set forth therein) and (ii) the product of the accrual yield specified in the terms of such Security established as set forth in Section 2.3 hereto related to the Securities of such Series (compounded annually) and the issue price from (and including) the issue date to (but excluding) the Redemption Date (or, in the case of an early redemption for taxation reasons, the Redemption Date) and computed in accordance with generally accepted United States bond yield computation principles, but in no event will the Amortized Face Amount exceed the principal amount of such Security due at Stated Maturity thereof, together with any accrued but unpaid interest and any Additional Amounts to the Redemption Date (which date may be required to be an Interest Payment Date if so specified in the terms of such Securities established as set forth in Section 2.3 hereto).

“Applicable Tax Law” has the meaning set forth in Section 3.1(b).

“Argentina” means the Republic of Argentina.

“Argentine Companies Law” means the Argentine Law No. 19,550, as amended and supplemented from time to time (Ley de Sociedades Comerciales).

“Argentine Taxes” has the meaning set forth in Section 3.5.

“Argentine Discount Bonds” means the Discount Bonds due December 2033 denominated in U.S. dollars, euro and Pesos, issued by Argentina.

“Argentine Par Bonds” means the Par Bonds due December 2038 denominated in U.S. dollars, euro and Pesos, issued by Argentina.

“Asset Acquisition” means:

(1) an investment by IRSA PC or any Subsidiary in any other Person pursuant to which such Person becomes a Subsidiary, or is merged with or into IRSA PC or any Restricted Subsidiary; or

2

(2) the acquisition by IRSA PC or any Subsidiary of the assets of any Person (other than a Subsidiary of IRSA PC) which constitute all or substantially all of the assets of such Person or comprises any division or line of business of such Person or any other properties or assets of such Person other than in the ordinary course of business.

“Asset Sale” means any direct or indirect sale, disposition, issuance, conveyance, transfer, lease, assignment or other transfer, including a sale and leaseback transaction (each, a “disposition”) by IRSA PC or any Subsidiary of:

(a) any Capital Stock of any Subsidiary (but not Capital Stock of IRSA PC); or

(b) any property or assets (other than cash or cash equivalents or Capital Stock of IRSA PC) of IRSA PC or any Subsidiary;

Notwithstanding the foregoing, the following items will not be deemed to be Asset Sales:

(1) the disposition of all or substantially all of the assets of IRSA PC and its Subsidiaries as permitted under Article VIII;

(2) sales, leases, conveyances or other dispositions, including, without limitation, exchanges or swaps of real estate (including properties under development for sale and completed properties for sale) in the ordinary course of business;

(3) a disposition to IRSA PC or a Subsidiary, including a Person that is or will become a Subsidiary immediately after the disposition;

(4) any transaction that involves assets or Capital Stock of a Subsidiary of IRSA PC having a Fair Market Value of less than US$2,000,000 (or the equivalent thereof in another currency at the time of determination);

(5) an issuance or sale of Capital Stock by a Subsidiary of IRSA PC that is offered on a pro rata basis to IRSA PC and its Subsidiaries, on the one hand, and minority holders of Capital Stock of a Subsidiary, on the other hand (or on less than a pro rata basis to any minority holder);

(6) any sale or other disposition of damaged, worn-out, obsolete or no longer useful assets or properties in the ordinary course of business;

(7) any sale or other disposition of assets received by IRSA PC or any of its Subsidiaries upon the foreclosure on a Lien in the ordinary course of business;

(8) any transfer, assignment or other disposition deemed to occur in connection with creating or granting any Permitted Lien; a disposition of accounts receivable in connection with a Receivables Transaction; and

(9) the good faith surrender or waiver of contract rights, tort claims or statutory rights in connection with a settlement.

“Asset Sale Transaction” means any Asset Sale and, whether or not constituting an Asset Sale, (1) any sale or other disposition of Capital Stock and (2) any sale or other disposition of property or assets excluded from the definition of Asset Sale.

“Authorized Person” means (i) in the case of the execution of any Security on behalf of IRSA PC, a member of the Board of Directors and a member of the Supervisory Committee of IRSA PC, and (ii) in the case of any other action to be taken by or on behalf of IRSA PC pursuant hereto, any Officer of IRSA PC duly authorized in writing to take actions under this Indenture on behalf of IRSA PC and notified to the Trustee in writing.

3

“Board of Directors” means, as to IRSA PC, the board of directors, management committee or similar governing body of such Person or any duly authorized committee thereof.

“Business Day” means, with respect to any Series of Securities, unless otherwise specified in the terms of such Securities established as set forth in Section 2.3 hereto related to the Securities of such Series, any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in New York City or the City of Buenos Aires; provided that, with respect to Securities denominated in a Specified Currency other than U.S. dollars, “Business Day” shall also not be a day on which commercial banks are authorized or required by law, regulation or executive order to close in the principal financial center of the country issuing the Specified Currency (or, if the Specified Currency is the euro, such day is also a day on which the Trans-European Automated Real Time Gross Settlement Express Transfer (“TARGET”) System is open; and provided further, that, with respect to a LIBOR Note (as defined in Exhibit C hereto), “Business Day” shall also be a London Banking Day.

“Calculation Agent” means, with respect to any Securities of a Series, the Person specified in the terms of such Securities established as set forth in Section 2.3 hereto, and any successors and assigns thereto.

“Capital Markets Law” has the meaning set forth in the third recital to this Indenture.

“Capital Stock” means:

(1) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of Common Stock and Preferred Stock of such Person; with respect to any Person that is not a corporation, any and all partnership or other equity or ownership interests of such Person; and

(2) any warrants, rights or options to purchase any of the instruments or interests referred to in clause (1) or (2) above.

“Capitalized Lease Obligations” means, as to any Person, the obligations of such Person under a lease that are required to be classified and accounted for as capital lease obligations under IFRS. For purposes of this definition, the amount of such obligations at any date will be the capitalized amount of such obligations at such date, determined in accordance with IFRS.

“Certificated Security” means a Security issued in certificated, non-global form, substantially in the form of Exhibit B hereto, or such other form as shall be established pursuant to Section 2.1 with respect to a particular Series of Securities.

“Change in Tax Law” has the meaning set forth in Section 10.4.

“Change of Control” shall be deemed to occur if any Person (as defined below) or Group other than one or more of the Permitted Holders is or becomes the Beneficial Owner (as defined below), directly or indirectly, in the aggregate of more than 50% of the total voting power of the Voting Stock of IRSA PC and such other Person or Group is entitled to elect a majority of the Board of Directors of IRSA PC (including a Surviving Entity, if applicable).

For purposes of this definition:

(a) “Beneficial Owner” will have the meaning specified in Rules 13d-3 and 13d-5 under the Exchange Act;

(b) “Person” will have the meaning for “person” as used in Sections 13(d) and 14(d) of the Exchange Act; and

(c) the Permitted Holders or any other Person or Group will be deemed to be Beneficial Owners of any Voting Stock of a corporation held by any other corporation (the “parent corporation”) so long as the Permitted Holders or such other Person or Group, as the case may be, beneficially own, directly or indirectly, in the aggregate at least 50% of the voting power of the Voting Stock of the parent corporation.

“Change of Control Payment” has the meaning set forth under Section 3.21.

“Change of Control Payment Date” has the meaning set forth under Section 3.21.

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Decline.

“Clearstream” means Clearstream Banking, société anonyme.

4

“CNV” has the meaning set forth in the second recital to this Indenture.

“Code” means the United States Internal Revenue Code of 1986, as amended as of the date hereof.

“Commodity or Raw Material Agreement” means any commodity or raw material futures contract, commodity or raw materials option, or any other agreement designed to protect against or manage exposure to fluctuations in commodity or raw materials prices.

“Common Depositary” means a bank or a bank branch outside of the United States as designated by Euroclear and Clearstream to serve as common depositary for any Euroclear/Clearstream Global Security.

“Common Stock” of any Person means any and all shares, interests or other participations in, and other equivalents (however designated and whether voting or non-voting) of such Person’s common equity interests, whether outstanding on the Issue Date or issued after the Issue Date, and includes, without limitation, all series and classes of such common equity interests.

“Company Order” means a written statement, request or order of IRSA PC signed in its name by an Officer of IRSA PC, and delivered to the Trustee.

“Consolidated EBITDA” of any Person means, on any date of determination, on a consolidated basis, the sum of the following, without duplication:

(1) Consolidated operating income of such Person and its Subsidiaries for the twelve (12)-month period ending on the fiscal quarter immediately preceding such date of determination, plus

(2) Depreciation and amortization and any other Consolidated Non-cash Charges of such Person and its Subsidiaries (to the extent deducted in determining consolidated operating income) for such period,

in each case, as determined in accordance with IFRS.

“Consolidated Interest Coverage Ratio” means, for any Person as of any date of determination, the ratio of the aggregate amount of Consolidated EBITDA of such Person and its Subsidiaries for the four most recent full fiscal quarters for which financial statements are available ending prior to the date of such determination (the “Four Quarter Period”) to Consolidated Interest Expense for such Person for such Four Quarter Period. For purposes of this definition, “Consolidated EBITDA” and “Consolidated Interest Expense” will be calculated after giving effect on a pro forma basis in accordance with Regulation S-X under the Securities Act for the period of such calculation to:

(1) the Incurrence or repayment or redemption of any Indebtedness (including Acquired Indebtedness) of such Person or any of its Subsidiaries, and the application of the proceeds thereof, including the Incurrence of any Indebtedness (including Acquired Indebtedness), and the application of the proceeds thereof, giving rise to the need to make such determination, occurring during such Four Quarter Period or at any time subsequent to the last day of such Four Quarter Period and on or prior to such date of determination, to the extent, in the case of an Incurrence, such Indebtedness is outstanding on the date of determination, as if such Incurrence and the application of the proceeds thereof, and any repayment or redemption of any Indebtedness occurred on the first day of such Four Quarter Period; and

(2) any Asset Sale Transaction or Asset Acquisition by such Person or any of its Subsidiaries, including any Asset Sale Transaction or Asset Acquisition giving rise to the need to make such determination occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to such date of determination, as if such Asset Sale Transaction or Asset Acquisition occurred on the first day of the Four Quarter Period.

Furthermore, in calculating “Consolidated Interest Expense” for purposes of determining the denominator (but not the numerator) of this “Consolidated Interest Coverage Ratio,”

(a) interest on outstanding Indebtedness determined on a fluctuating basis as of the date of determination and which will continue to be so determined thereafter will be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on such date of determination;

5

(b) if interest on any Indebtedness actually Incurred on such date of determination may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on such date of determination will be deemed to have been in effect during the Four Quarter Period;

(c) notwithstanding clause (a) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by Hedging Transactions, will be deemed to accrue at the rate per annum resulting after giving effect to the operation of such agreements;

(d) interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of IRSA PC to be the rate of interest implicit in such Capital Lease Obligation in accordance with IFRS; and

(e) for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.

“Consolidated Interest Expense” means, for any Person for any period, the cash and non-cash interest expense of such Person and its Subsidiaries for such period, net of all interest income for such period, determined on a consolidated basis in accordance with IFRS.

“Consolidated Non-cash Charges” means, for any Person for any period, the aggregate depreciation, amortization and other non-cash expenses or losses of such Person and its Subsidiaries for such period, determined on a consolidated basis in accordance with IFRS.

“Consolidated Tangible Assets” means, for any Person at any time, the total consolidated assets of such Person and its Subsidiaries as set forth on the balance sheet as of the most recent fiscal quarter of such Person, prepared in accordance with IFRS, less Intangible Assets.

“Control” of any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

“Co-Registrar” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Corporate Trust Office” means in the case of the Trustee or the Registrar, the office of the Trustee or the Registrar at which the corporate trust business of the Trustee or Registrar, as the case may be, shall, at any particular time, be principally administered, which office, in the case of the Trustee, is located on the date hereof at 101 Barclay Street, 7E, New York, New York 10286, Attention: Corporate Trust Department, and means, in the case of the Registrar, the office or agency of the Registrar at which at any particular time the corporate trust business of the Registrar shall be principally administered, which office, at the date of this Indenture is located at Bartolomé Mitre 480, 11th Floor, City of Buenos Aires, Argentina, or such other location as the Trustee or the Registrar may advise IRSA PC in writing.

“Covenant Suspension Event” has the meaning set forth in Section 3.15.

“Currency Agreement” means, in respect of any Person, any foreign exchange contract, currency swap agreement or other similar agreement as to which such Person is a party designed to hedge foreign currency risk of such Person.

“Dealer” means any dealer, underwriter, selling or placement agent or similar entity named in any program, underwriting, subscription, distribution, syndicated trade or similar agreement executed in connection with any issuance and sale of Securities. Unless the context otherwise requires, the term “Dealer” shall be deemed to include any purchaser of a Security of any Series which is not otherwise a Dealer and purchases such Security directly from IRSA PC.

“Deeply Subordinated Indebtedness” means all Indebtedness of IRSA PC (1) which will not have the benefit of any negative pledge covenant, collateral or security interest, (2) the terms of which provide that, in the event that (a) an installment of interest with respect to such Indebtedness is not paid on the applicable interest payment date or (b) the principal of, or premium, if any, on any such Indebtedness is not paid on the stated maturity or other date set for redemption, then the obligation to make such payment on such interest payment date, maturity date or other redemption date will not be a default under such Indebtedness until after the maturity date of the Securities of any Series, and (3) the terms of which provide that no amount will be payable in bankruptcy, liquidation or any similar proceeding with respect to IRSA PC until all claims of senior creditors of IRSA PC, including, without limitation, the Holders of the Securities, admitted in such proceeding have been satisfied.

6

“Defeasance Trustee” has the meaning set forth in Section 11.4.

“Default” means an event or condition the occurrence of which is, or with the lapse of time or the giving of notice or both would be, an Event of Default.

“Depositary” means any of DTC, Euroclear or Clearstream or any other depositary institution hereinafter appointed by IRSA PC that is a clearing agency registered under the Exchange Act or other applicable statute or legislation.

“Dollar Equivalent” with respect to any currency other than U.S. dollars means the amount of U.S. dollars obtained by converting such other currency into U.S. dollars at the Exchange Rate for the applicable Payment Date or the date for which such amount is otherwise required to be determined.

“DTC” means The Depository Trust Company (or its successors).

“DTC Global Security” means a Global Security deposited with a custodian for, and registered in the name of a nominee of, DTC.

“Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear System, and its successors.

“Euroclear/Clearstream Global Security” means a Global Security deposited with a Common Depositary for, and registered in the name of a nominee of, Euroclear and/or Clearstream.

“Euro MTF” has the meaning set forth in Section 3.2.

“Event of Default” means any event or condition specified as such in Section 4.1.

“Exchange Act” means the United States Securities Exchange Act of 1934 (or any successor statute), as amended, and the rules and regulations of the SEC promulgated thereunder.

“Exchange Rate” has the meaning set forth in Section 2.3(i).

“Exchange Rate Agent” means, with respect to a Series of Securities denominated or payable in a Specified Currency other than U.S. dollars, the Person specified in the terms of such Securities established as set forth in Section 2.3 hereto, and any successors and assigns thereto.

“Fair Market Value” means, with respect to any asset, the price (after deducting any liabilities relating to such assets) which could be negotiated in an arm’s-length free market transaction, for cash, between an informed and willing seller and an informed and willing buyer, neither of which is under any compulsion to complete the transaction; provided that the Fair Market Value of any such asset or assets will be determined conclusively by the Board of Directors of IRSA PC acting in good faith; and provided further that with respect to any asset having a price less than US$10,000,000 (or the equivalent thereof in another currency at the time of determination), only the good faith determination of IRSA PC’s senior management shall be required.

“FATCA” means (a) Sections 1471 to 1474 of the Code (including regulations and official guidance thereunder), (b) any successor version thereof that is substantially comparable and not materially more onerous to comply with, (c) any agreement entered into pursuant to Section 1471 (b) of the Code or (d) any law, regulation, rule or practice implementing an intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.

“Fitch” means Fitch Ratings Ltd. and its successors and assigns.

“Fourth Quarter Period” has the meaning set forth in the definition of Consolidated Interest Coverage Ratio.

“Global Security” means a Security issued in global form and registered in the name of a Depositary or its nominee, substantially in the form of Exhibit A hereto, or such other form established pursuant to Section 2.1 with respect to a particular Series of Securities. The term “Global Security” includes any Rule 144A Global Security, Regulation S Global Security or Unrestricted Global Security (whether such Security is a DTC Global Security or an Euroclear/Clearstream Global Security).

“Government Agency” means any public legal entity or public agency, created by federal, state or local government, or any other legal entity now existing or hereafter created, or now or hereafter owned or controlled, directly or indirectly, by any public legal entity or public agency, including any central bank.

“Group” means two or more Persons that act together as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding, voting or disposing of Capital Stock of another Person.

7

“Hedging Transactions” means the obligations of any Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodity or Raw Material Agreement.

“Holder”, “Holder of Securities”, “Securityholder” or other similar terms mean, with respect to any Security, the Person in whose name at the time such Security is registered in the Register.

“IFRS” means International Financial Reporting Standards, as issued by the International Accounting Standards Board, as in effect from time to time.

“Incur” means, with respect to any Indebtedness or other obligation of any Person, to create, issue, incur (including by conversion, exchange or otherwise), assume, guarantee or otherwise become liable in respect of such Indebtedness or other obligation on the balance sheet of such Person (and “Incurrence,” “Incurred” and “Incurring” will have meanings correlative to the preceding).

“Indebtedness” means, with respect to any Person, without duplication: (a) all obligations of such Person for borrowed money; (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (c) all obligations of such Person under any lease that are required to be classified and accounted for as capital lease obligations under IFRS; (d) all obligations of such Person issued or assumed as the deferred purchase price of property or services, all conditional sale obligations and all obligations under any title retention agreement (but excluding accounts payable and other accrued liabilities arising in the ordinary course of business); (e) all obligations due and payable under letters of credit, banker’s acceptances or similar credit transactions, including reimbursement obligations in respect thereof; (f) guarantees of such Person in respect of Indebtedness referred to in clauses (a) through (e) above and clause (g) below; and (g) all Indebtedness of any other Person of the type referred to in clauses (a) through (f) which is secured by any Lien on any property or asset of such Person.

“Indenture” means this instrument as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or supplemented or both, and such term shall include any such amendment or supplement as well as the forms and terms of particular Securities established as contemplated hereunder.

“Independent Financial Advisor” means an accounting firm, appraisal firm, investment banking firm or consultant of recognized standing that is, in the judgment of IRSA PC’s Board of Directors, qualified to perform the task for which it has been engaged and which is independent in connection with the relevant transaction.

“Intangible Assets” means with respect to any Person, all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights and all other items which would be treated as intangibles on the consolidated balance sheet of such Person prepared in accordance with IFRS.

“Interest Payment Date” means, with respect to each Series of Securities, any date designated for the payment of interest on such Securities.

“Interest Rate Agreement” of any Person means any interest rate hedging agreement (including, without limitation, interest rate swaps, caps, floors, collars, derivative instruments and similar agreements) and/or other types of hedging agreements designed to hedge interest rate risk of such Person.

“Investment Grade Rating” means a rating equal to or higher than (i) Baa3 (or the equivalent) by Moody’s, and its successors and assigns or (ii) BBB– (or the equivalent) by S&P or Fitch, and their successors and assigns; in each case at international level.

“IRSA PC” has the meaning set forth in the preamble to this Indenture.

“Issue Date” means the first date of issuance of Securities under this Indenture.

 “Lien” means any lien, mortgage, pledge, security interest or similar encumbrance.

“London Banking Day” means any day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

“MAE” means the Mercado Abierto Electrónico S.A.

“Merval” means the Mercado de Valores de Buenos Aires S.A.

“Moody’s” means Moody’s Investors Service, Inc. and its successors and assigns.

“Negotiable Obligations Law” has the meaning set forth in the third recital to this Indenture.

8

“Offering Memorandum” means (i) the Offering Memorandum dated March 17, 2016 and (ii) the Prospecto dated February 5, 2016 and prepared by IRSA PC in connection with the Program, as the same may be amended or supplemented from time to time by Pricing Supplements relating to specific Series of Securities or otherwise.

“Officer” means, when used in connection with any action to be taken by IRSA PC, the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, and any member of the Board of Directors of IRSA PC.

“Officer’s Certificate” means, when used in connection with any action to be taken by IRSA PC, a certificate signed by an Officer of IRSA PC and delivered to the Trustee.

“Opinion of Counsel” means an opinion in writing signed by legal counsel who, unless otherwise indicated, may be an employee of or counsel to IRSA PC, and who shall be reasonably acceptable to the Trustee.

“Original Issue Date” of any Security (or portion thereof) means the earlier of (a) the date of such Security or (b) the date of any Security (or portion thereof) for which such Security was issued (directly or indirectly) on registration of transfer or exchange or in substitution.

“Original Issue Discount Security” has the meaning set forth in Exhibit C hereto.

“Outstanding” when used with reference to Securities, subject to the provisions of Section 6.4, shall mean, as of any particular time, all Securities authenticated and delivered by the Trustee under this Indenture, except:

(1) Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

(2) Securities or portions thereof that have been called for redemption in accordance with their terms or which have become due and payable at maturity or otherwise and with respect to which monies sufficient to pay the principal thereof and any premium, interest, Additional Amounts or other amount thereon shall have been therefor deposited with the Trustee; provided that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; or

(3) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to Section 2.11.

“Paying Agents” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Payment Date” means, with respect to each Series of Securities, each Interest Payment Date, the date on which payment of principal, interest or any other amount is due or any date fixed for redemption or repurchase of the Securities of such Series.

“Permitted Business” means any business or activity in which IRSA PC or any of its Subsidiaries or Affiliates is directly or indirectly engaged (including though the ownership of Capital Stock) on the Issue Date, any real estate or retail business or activity and/or any business or activity related, ancillary or complementary to any of the foregoing including, without limitation, any such activities outside of Argentina.

“Permitted Holders” means any one or more of (i) Eduardo S. Elsztain, Saúl Zang and Alejandro G. Elsztain and their respective parents, brothers, sisters, children and other family members and any of the descendants, heirs, legatees and successors and any spouses or former spouses of any of the foregoing, (ii) any estate, guardian, custodian and other legal representative of any of the foregoing and (iii) any Affiliates of any of the foregoing or any other Persons (including any trust, partnership or other entity) controlled by or for the benefit of any of the foregoing.

“Permitted Indebtedness” has the meaning set forth under clause (2) of Section 3.16.

“Permitted Lien” means:

(a) any Lien existing on the Issue Date;

(b) any landlord’s, workmen’s, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other Liens arising in the ordinary course of business;

(c) pledges or deposits under workers’ compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts or leases, or deposits to secure public or statutory obligations or deposits of cash or government bonds to secure surety or appeal bonds, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case Incurred in the ordinary course of business;

9

(d) Liens in favor of issuers of surety or performance bonds or letters of credit or bankers’ acceptances or similar obligations issued in the ordinary course of business;

(e) encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning, building codes or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances) as to the use of real properties or Liens incidental to the conduct of the business of IRSA PC or to the ownership of its properties that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of IRSA PC;

(f) Liens securing Hedging Transactions otherwise permitted under this Indenture;

(g) leases, licenses, subleases and sublicenses of assets (including, without limitation, real property and intellectual property rights) that do not materially interfere with the ordinary conduct of the business of IRSA PC;

(h) any Lien securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of constructing, acquiring or improving any asset, which Lien attaches to such asset or to other assets of IRSA PC or any of its Subsidiaries concurrently with or within 180 days after the acquisition or the completion of the construction or improvement thereof;

(i) any Lien in favor of IRSA PC or any of its Subsidiaries;

(j) any Lien on any asset or property (including Capital Stock) (1) existing thereon at the time of acquisition of such asset or property or (2) of any Person, at the time such Person is acquired by, or is merged or otherwise consolidated or combined with or into, IRSA PC or any of its Subsidiaries;

(k) any Lien securing an extension, renewal or refunding of Indebtedness secured by a Lien permitted hereunder; provided that such new Lien is limited to the property which was subject to the prior Lien immediately before such extension, renewal or refunding; and provided further that the principal amount of Indebtedness secured by the prior Lien immediately before such extension, renewal or refunding is not increased;

(l) (1) any inchoate Lien for taxes, assessments or governmental charges or levies not yet due (including any relevant extensions) or contested in good faith, (2) any Lien arising or incurred in connection with judgments or assessments under circumstances not constituting an Event of Default or (3) any tax or statutory Lien or any Lien arising by operation of law;

(m) Liens arising in connection with Receivables Transactions; and

(n) any additional Lien; provided that on the date of the creation or assumption of such Lien, the Indebtedness secured by such Lien, together with all of IRSA PC’s Indebtedness secured by any Lien under this clause (n), will have an aggregate principal amount outstanding of no greater than 15% of IRSA PC’s total consolidated assets as set forth in the consolidated financial statements for its most recent fiscal quarter.

“Person” means an individual, partnership, limited partnership, corporation, company, limited liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof.

“Ps.” and “Pesos” means the currency of Argentina.

“Preferred Stock” of any Person means any Capital Stock of such Person that has preferential rights over any other Capital Stock of such Person with respect to dividends, distributions or redemptions or upon liquidation.

“Pricing Supplement” means a pricing supplement to the Offering Memorandum setting forth details of the terms of the Securities of a Series to be issued, which may be in (i) the form annexed to the Offering Memorandum or (ii) such other form as may be agreed between IRSA PC and the relevant Dealers (and, to the extent that their respective duties or obligations are affected thereby, the Trustee and Agents).

“principal” whenever used with reference to the Securities or any Security or any portion thereof, shall be deemed to include premium, if any, and redemption amount, if any, and in the case of Original Issue Discount Securities, the Amortized Face Amount or other amount payable in respect thereof.

“Principal Paying Agent” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Process Agent” has the meaning set forth in Section 12.7.

“Program” has the meaning set forth in the first recital of this Indenture.

10

“Purchase Money Indebtedness” means Indebtedness Incurred for the purpose of financing all or any part of the purchase price, or other cost of construction or improvement of any property; provided that the aggregate principal amount of such Indebtedness does not exceed the lesser of the Fair Market Value of such property or such purchase price or cost, including any Refinancing of such Indebtedness that does not increase the aggregate principal amount (or accreted amount, if less) thereof as of the date of Refinancing.

“Qualified Institutional Buyer” means a qualified institutional buyer within the meaning of Rule 144A.

“Qualified Merger Jurisdiction” means any of (i) Argentina; (ii) the United States, any State thereof or the District of Columbia; (iii) any member state of the European Union; or (iv) any other nation that has an Investment Grade Rating on its sovereign debt rating from two or more Rating Agencies.

“Rating Agency” means any one of Moody’s, S&P or Fitch, or their respective successors.

“Rating Decline” shall be deemed to have occurred if within ninety (90) days after the date of public notice of a Change of Control or, if earlier, of IRSA PC’s intention that any Person effect a Change of Control, one of the Rating Agencies assigns a rating to the Securities of a Series that is lower than the applicable rating of the Securities of such Series (domestically or internationally) immediately preceding the rating date; provided that such Rating Decline results from a Change of Control.

“Receivables Transaction” means any securitization, factoring, discounting or similar financing transaction or series of transactions that may be entered into by IRSA PC or any of its Subsidiaries in the ordinary course of business pursuant to which IRSA PC or any of its Subsidiaries may sell, convey or otherwise transfer to any Person, or may grant a security interest in, any receivables (whether existing as of the Issue Date or arising in the future) of IRSA PC or any of its Subsidiaries, and any assets related thereto, including all collateral securing such receivables, all contracts and all guarantees or other obligations in respect of such receivables, the proceeds of such receivables and other assets which are customarily transferred, or in respect of which security interests are customarily granted, in connection with securitization, factoring or discounting involving receivables.

“Redemption Date” has the meaning set forth in Section 10.1.

“Refinance” means, in respect of any Indebtedness, to issue any Indebtedness in exchange for or to refinance, replace, defease or refund such Indebtedness in whole or in part. “Refinanced” and “Refinancing” will have correlative meanings.

“Refinancing Indebtedness” means Indebtedness of IRSA PC or any Subsidiary issued to Refinance any other Indebtedness of IRSA PC or a Subsidiary so long as:

(1) the aggregate principal amount (or initial accreted value, if applicable) of such new Indebtedness as of the date of such proposed Refinancing does not exceed the aggregate principal amount (or initial accreted value, if applicable) of the Indebtedness being Refinanced (plus the amount of any premium required to be paid under the terms of the instrument governing such Indebtedness and the reasonable fees, expenses, defeasance costs and accrued but unpaid interest payable by IRSA PC in connection with such Refinancing);

(2) such new Indebtedness has:

(1 )a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of the Indebtedness being Refinanced, and

(2 )a final maturity that is equal to or later than the final maturity of the Indebtedness being Refinanced; and

(3 )if the Indebtedness being Refinanced is Subordinated Indebtedness, then such Refinancing Indebtedness shall be subordinate to the Securities, if applicable, at least to the same extent and in the same manner as the Indebtedness being Refinanced.

“Register” has the meaning set forth in Section 2.10.

“Registrar” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

11

“Regular Record Date” means, with respect to each Series of Securities, each date designated in the Securities for the determination of the Holders to whom interest shall be payable on the subsequent Interest Payment Date, and, if no such date is so designated, as defined in Section 2.9.

“Regulation S” means Regulation S under the Securities Act.

“Regulation S Global Security” means a Global Security initially sold in reliance on Regulation S, deposited (a) in the case of a DTC Global Security, with the Trustee, as custodian for DTC, and registered in the name of Cede & Co., as nominee of DTC and (b) in the case of an Euroclear/Clearstream Global Security, with the specified Common Depositary of Euroclear and Clearstream, and registered in the name of the Common Depositary (or its nominee), and in each case bearing the applicable Restrictive Legend.

“Representative of the Trustee in Argentina” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Responsible Officer” when used with respect to the Trustee, means any vice president, any assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or assistant trust officer, assigned to the Trustee’s Corporate Trust Office or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

“Restricted Payment” has the meaning set forth in Section 3.17.

“Restricted Period” means, with respect to any Security, the period of forty (40) days after the completion of the distribution of all Securities of the same Series, as notified by IRSA PC to the Trustee in writing.

“Restrictive Legend” has the meaning set forth in Section 2.10.

“Reversion Date” has the meaning set forth in Section 3.15.

“Rule 144” means Rule 144 under the Securities Act.

“Rule 144A” means Rule 144A under the Securities Act.

“Rule 144A Global Security” means a Global Security initially sold in the United States in reliance on Rule 144A, deposited with the Trustee, as custodian for DTC, and registered in the name of Cede & Co., as nominee of DTC, and bearing the applicable Restrictive Legend.

“S&P” means Standard & Poor’s Ratings Services and its successors and assigns.

“SEC” means the United States Securities and Exchange Commission.

“Securities Act” means the United States Securities Act of 1933 (or any successor statute), as amended, and the rules and regulations of the SEC promulgated thereunder.

“Security” or “Securities” has the meaning stated in the first recital of this Indenture, or, as the context may require, means Securities that have been authenticated and delivered under this Indenture, including any Additional Securities.

“Series” has the meaning set forth in Section 2.3.

“Specified Currency” has the meaning set forth in Section 2.3.

“Stated Maturity” means the date, shown on the face of a Security, on which the principal of such Security and the other Securities of the same Series is payable or, if the principal of such Security is payable in installments, on which the last installment of principal of such Security and the other Securities of the same Series is payable, falling no less than thirty (30) days from the Original Issue Date of such Security, as specified in the terms of such Series of Securities, established as set forth in Section 2.3.

“Subordinated Indebtedness” means, with respect to IRSA PC, any Indebtedness of IRSA PC which is expressly subordinated in right of payment to the Securities, as the case may be.

“Subsidiary” means, with respect to any Person, any other Person in which such Person owns, directly or indirectly, more than 50% of the voting power of the other Person’s outstanding Voting Stock.

“Supervisory Committee” means the Comisión Fiscalizadora of IRSA PC.

“Surviving Entity” has the meaning set forth under Section 8.1.

“Suspended Covenants” has the meaning set forth under Section 3.15.

“Suspension Period” has the meaning set forth under Section 3.15.

“Taxes” has the meaning set forth in Section 3.5.

12

“Transfer Agents” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Trustee” means the Person identified as the “Trustee” in the preamble to this Indenture and, subject to the provisions of Article V, shall also include any successor trustee.

“Unrestricted Global Security” means a Global Security representing Securities that do not bear or are not required to bear the Restrictive Legend.

“US$” and “U.S. dollars” means the currency of the United States of America which at the relevant time is legal tender for the payment of public or private debts.

“U.S. Government Obligations” has the meaning set forth in Section 11.4(a).

“Voting Stock” with respect to any Person, means securities of any class of Capital Stock of such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock has voting power by reason of any contingency) to vote in the election of members of the board of directors (or equivalent governing body) of such Person.

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years (calculated to the nearest one-twelfth) obtained by dividing:

(1) the then outstanding aggregate principal amount or liquidation preference, as the case may be, of such Indebtedness into

(2) the sum of the products obtained by multiplying:

(a) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal or liquidation preference, as the case may be, including payment at final maturity, in respect thereof, by

(b) the number of years (calculated to the nearest one-twelfth) which will elapse between such date and the making of such payment.

Agents.

 IRSA PC hereby appoints each of the Registrar, the Co-Registrar, the Transfer Agents and the Paying Agents as its agent in relation to the Securities for the purposes specified in this Indenture and in the terms of the Securities applicable thereto and all matters incidental thereto. Each of the Agents shall have the powers and authority granted to and conferred upon it herein and in the Securities, and such further powers and authority to act on behalf of IRSA PC as IRSA PC and such Agent may hereafter agree in writing. By execution of this Indenture, each of the Agents accepts its appointment as agent of IRSA PC in relation to the Securities and shall comply with the provisions of this Indenture and the Securities applicable thereto.

Subject to Section 3.2, IRSA PC may terminate the appointment of any Agent at any time and from time to time upon giving at least thirty (30) days written notice to such Agent and to the Trustee. Each Agent may at any time resign by giving no less than thirty (30) days written notice to IRSA PC of such intention on its part, specifying the date on which its desired resignation shall become effective. In the event that IRSA PC fails to appoint a new Agent to succeed the resigning Agent within thirty (30) days after receiving notice of such resignation, the resigning Agent shall have the power to appoint a successor Agent.

In acting under this Indenture and in connection with the Securities, the Agents are each acting solely as an agent of IRSA PC and do not assume any responsibility for the correctness of the recitals in the Securities or this Indenture, or the offering materials related thereto or any obligation or relationship of agency for or with any of the Holders of the Securities.

Each of the Agents shall be protected and shall incur no liability for or in respect of any action taken or thing suffered by it in reliance upon any Security, notice, direction, consent, certificate, affidavit, statement or other document to the extent that such communication conforms to the provisions set forth herein, and is believed by it, in good faith, to be genuine and to have been passed or signed by the proper parties.

Each of the Agents may become the owner of, or acquire any interest in, any Securities, with the same rights that it would have if it were not acting in such capacity, and may engage or be interested in any financial or other transaction with IRSA PC.

IRSA PC agrees to indemnify, hold harmless and defend each of the Agents against any loss, liability, cost, claim, action, demand or expense (including reasonable fees and expenses of legal counsel) arising out of or in connection with its appointment, or the exercise of its powers and rights and performance of its duties hereunder, or performance of any other duties pursuant to the terms and conditions hereof, except such as may result from its negligence or willful misconduct or that of its officers or employees, declared as such by a final decision, order or award of a competent court. The indemnity set forth in this paragraph shall survive the payment of the Securities, the resignation or removal of any Agent and/or the termination of this Indenture.

None of the Agents shall be liable for any action taken or omitted by it without negligence or willful misconduct.

13

Each Agent may execute any of its powers or perform any of its duties hereunder either directly or by or through agents or attorneys not regularly in its employ and such Agent shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed with due care by it hereunder.

IRSA PC covenants and agrees to pay to each Agent from time to time, and each Agent shall be entitled to, such compensation as shall be agreed upon in writing by IRSA PC and such Agent for all services rendered by it hereunder. IRSA PC covenants and agrees promptly to pay all such compensation and to reimburse each of the Agents for reasonable and documented out-of-pocket expenses (including the reasonable fees and expenses of its counsel) incurred by it in connection with the services rendered by it hereunder, including, without limitation, any payments made in connection with taxes or other charges.

None of the provisions contained in this Indenture shall require any of the Agents to expend, advance or risk its own funds or otherwise incur any personal financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The duties and obligations of each Agent with respect to the Securities and this Indenture shall be determined solely by the express provisions of this Indenture, and each Agent shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against each such Agent. The duties and obligations of each Agent are several and not joint.

ARTICLE II

SECURITIES

Section 2.1. Forms.

Generally. The form of any Security to be authenticated hereunder shall be designated in the resolutions of the Board of Directors and an Officer’s Certificate or supplemental indenture hereto and the Trustee shall have no liability for IRSA PC’s designation so made notwithstanding the provisions of this Section 2.1. The Securities shall be issued as registered Securities without interest coupons; provided that if permitted by applicable law, the Securities may be issued as bearer Securities if in connection with the issuance thereof IRSA PC and the Trustee shall have entered into an indenture supplemental hereto providing for the issuance of bearer Securities. IRSA PC shall ensure that such supplemental indenture shall provide for compliance by IRSA PC with United States, Argentine and any other laws applicable to bearer Securities, and the Trustee shall have no duty whatsoever, express or implied, to ensure compliance of such supplemental indenture or bearer Securities with the laws of any jurisdiction.

The Securities may be issued in the form of one or more Global Securities in an aggregate principal amount equal to the principal amount of the Securities of a Series to be authenticated as specified in the relevant Company Order, which shall be exchangeable for Certificated Securities only in the limited circumstances set forth in Section 2.10, or Securities may be issued in the form of Certificated Securities, which shall be exchangeable for beneficial interests in a Global Security only in the limited circumstances set forth in Section 2.7. The Securities initially sold within the United States to U.S. Persons that are Qualified Institutional Buyers will be issued in the form of one or more Rule 144A Global Securities. The Securities initially sold outside the United States in reliance on Regulation S under the Securities Act will be issued in the form of one or more Regulation S Global Securities. In each case, Securities may be issued in such other form as shall be established by or pursuant to resolutions of the Board of Directors, or one or more indentures supplemental hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules of any securities exchange or to conform to general usage, all as may be determined by the Authorized Persons executing such Securities, as evidenced by their execution of such Securities, and all of which shall not affect the rights, duties or obligations of the Trustee or the Agents under this Indenture. The Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plan as the Authorized Persons executing the same may determine as evidenced by the execution thereof.

14

The Certificated Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange on which the Securities may be listed and subject to the prior approval of the CNV where applicable, all as determined by the Authorized Persons executing such Securities as evidenced by their execution of such Securities.

IRSA PC agrees to cause the Securities to comply with Article 7 of the Negotiable Obligations Law.

(a) DTC Global Securities. The Trustee shall hold on deposit each DTC Global Security executed and authenticated as provided herein as custodian for DTC, acting as the Depositary for such DTC Global Security, for credit on the date of settlement to the account of the Person(s) entitled thereto. Each DTC Global Security to be deposited with DTC or a custodian for DTC shall be registered in the name of Cede & Co, as DTC’s nominee, and shall bear legends substantially to the following effect:

“UNLESS (1) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO IRSA PROPIEDADES COMERCIALES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND (3) ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF INTERESTS IN THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.”

Upon the issuance of any DTC Global Security, the Co-Registrar shall record Cede & Co., as DTC’s nominee, as the registered Holder of such DTC Global Security.

(b) Euroclear/Clearstream Global Securities. The Common Depositary shall hold on deposit each Euroclear/Clearstream Global Security executed and authenticated as provided herein as custodian for Euroclear and Clearstream for credit on the date of settlement to the account of the Person(s) entitled thereto. Any Euroclear/Clearstream Global Security shall be a Regulation S Global Security. Each Euroclear/Clearstream Global Security to be deposited with the specified Common Depositary of Euroclear and Clearstream shall be registered in the name of the Common Depositary or a nominee specified by Euroclear and/or Clearstream and shall bear legends substantially to the following effect:

“UNLESS (1) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF [NAME OF THE COMMON DEPOSITARY], OR ANY SUCCESSOR THERETO, AS COMMON DEPOSITARY (“COMMON DEPOSITARY”) FOR EUROCLEAR BANK S.A./N.V. (“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM”) TO IRSA PROPIEDADES COMERCIALES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY NOTE ISSUED IS REGISTERED IN THE NAME OF THE COMMON DEPOSITARY OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY AND (3) ANY PAYMENT IS MADE TO THE COMMON DEPOSITARY OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, THE COMMON DEPOSITARY, HAS AN INTEREST HEREIN.

15

TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO THE COMMON DEPOSITARY FOR EUROCLEAR AND CLEARSTREAM TO NOMINEES OF THE COMMON DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF INTERESTS IN THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.”

Upon the issuance of any Euroclear/Clearstream Global Security, the Co-Registrar shall record the Common Depositary or its nominee as the registered Holder of such Euroclear/Clearstream Global Security.

(c) Certificated Securities. The Trustee shall deliver or make available each Certificated Security executed and authenticated as provided herein in accordance with the relevant Company Order. On the Original Issue Date, the relevant Dealer or Dealers, if any, will deliver payment for Securities delivered to it or them, if any, in immediately available funds to IRSA PC in an amount equal to the issue price of the Securities less the applicable Dealer’s or Dealers’ commission. Under no circumstances shall the Trustee be responsible for any failures by the purchaser either to remit payment for the Securities or to return Securities to the Trustee in the event the purchaser fails to remit payment for such Securities. Upon the issuance of any Certificated Security, the Co-Registrar shall record the Person who is designated by IRSA PC in the Company Order as the registered Holder of such Certificated Security.

Section 2.2. Form of Trustee’s Certificate of Authentication.

 The Trustee’s certificate of authentication on all Securities shall be in substantially the following form:

This is one of the Securities referred to in the within-mentioned Indenture.

The Bank of New York Mellon,as Trustee
By:
	Name:
	Title:

Section 2.3. Maximum Aggregate Principal Amount of Securities; Terms of Securities.

The maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under this Indenture is US$500,000,000 (which will include, in the case of Securities not denominated in U.S. dollars, the Dollar Equivalent of such Securities as determined by IRSA PC on the respective Original Issue Date thereof). The total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under this Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders. For purposes of the foregoing limitation, the Dollar Equivalent of any Securities denominated in a Specified Currency other than U.S. dollars will be determined (i) on the basis of the Exchange Rate Agent’s offer (U.S. dollar bid) quotation for such Specified Currency at or prior to 11:00 a.m. (New York City time) on the second (2nd) Business Day next preceding the applicable Payment Date or date for which the Dollar Equivalent is required to be determined or (ii) if no such rate is quoted for any reason, the rate determined by the Exchange Rate Agent based on an average of quotations given to the Exchange Rate Agent by commercial banks which conduct foreign exchange operations or based on such other method as the Exchange Rate Agent may reasonably determine to calculate a market exchange rate on the second (2nd) Business Day next preceding the applicable Payment Date or date for which the Dollar Equivalent is required to be determined (the rate determined in accordance with clause (i) or (ii) above, the “Exchange Rate”) (or, if such Exchange Rate is not then available, the Exchange Rate most recently available prior thereto). The Exchange Rate Agent shall not be liable for any determination, bid or offer made or omitted by it hereunder in the absence of manifest error on its part. Neither the Trustee nor any Agent shall be liable or responsible for determining if the aggregate principal amount of Securities issued under this Indenture (together with any other notes issued pursuant to the Program) exceed the maximum amount of notes issuable pursuant to the Program. IRSA PC’s delivery of Securities to the Trustee for authentication from time to time pursuant to Section 2.4 shall constitute a representation and warranty by IRSA PC that the issuance and authentication of such Securities shall not cause the maximum aggregate principal amount of outstanding notes allowed under the Program to be exceeded.

16

(i) Securities may be issued from time to time hereunder by IRSA PC. All Securities having the same maturity, interest rate and other terms shall constitute a single Series of Securities (each, a “Series”). If specified in the terms of a Series of Securities established pursuant to Section 2.3, IRSA PC may from time to time, without the consent of Holders of Securities Outstanding, create and issue Additional Securities of such Series; provided that such Additional Securities have the same terms and conditions as the Securities of such Series (except for the Original Issue Date, the issue price, the applicable legends, the date from which interest accrues and, if applicable, the first payment of interest); and provided further that if the Additional Securities are not fungible for U.S. federal income tax purposes with the previously outstanding Securities of the relevant Series, such Additional Securities shall have a separate CUSIP number. The Additional Securities shall be consolidated with and form a single Series with the previously outstanding Series of Securities.

(ii) There shall be established (i) in or pursuant to resolutions of the Board of Directors and set forth in an Officer’s Certificate or (ii) in one or more indentures supplemental hereto, prior to the issuance of any Series of Securities, the following terms of the Securities of such Series:

(1) the coin or currency (including composite currencies) in which the Securities of such Series shall be denominated (the “Specified Currency”), and, if other than the Specified Currency of denomination, the Specified Currency or Currencies in which the principal and any interest in respect of the Securities of such Series is payable;

(2) the Stated Maturity of the Securities of such Series, which will be no less than thirty (30) days from the Original Issue Date, and, if applicable, the method by which such Stated Maturity shall be determined;

the rate or rates, if any, at which the Securities of such Series shall bear interest, or the method by which such rate shall be determined (including, where applicable, the interest rate basis, the Calculation Agent, the index maturity, the spread or spread multiplier, the maximum rate, the minimum rate, calculation dates, interest determination dates, the interest reset period and interest reset dates), the date or dates from which such interest shall accrue, the date or dates on which such interest shall be payable, the Regular Record Dates for the determination of the Holders to whom interest shall be payable (if other than as set forth in Section 2.9) and the basis upon which interest shall be calculated if other than a 360-day year of twelve (12) 30-day months;

(3) if the amount of payments of principal of and interest on the Securities of such Series may be determined with reference to an index, formula or otherwise, the manner in which such amounts shall be determined;

(4) the place or places where the principal of and any interest on the Securities of such Series shall be payable (if other than as provided in Section 3.2);

(5) the price or prices at which, the period or periods within which and the terms and conditions upon which the Securities of such Series may be redeemed, in whole or in part, at the option of IRSA PC, pursuant to any sinking fund or otherwise;

(6) the right or obligation, if any, of IRSA PC to redeem, repurchase or repay the Securities of such Series at the option of IRSA PC or at the option of the Holder thereof and the price or prices at which, the period or periods within which and the terms and conditions upon which the Securities of such Series shall be redeemed, repurchased or repaid, in whole or in part, pursuant to such right or obligation;

(7) the denomination or denominations in which the Securities of such Series shall be issuable;

(8) the applicability, non-applicability, or variation, of Article XI with respect to the Securities of such Series;

17

(9) any deletions from, modifications of or additions to the Events of Default or covenants, financial or otherwise, of IRSA PC with respect to the Securities of such Series;

(10) any trustees and any Agents with respect to the Securities of such Series (if other than as provided in Section 3.2) and the identity of any Exchange Rate Agent, Calculation Agent or other Agent, as applicable;

(11) the form of the Securities of such Series and, if such Securities shall be Global Securities, the Depositary for such Securities; the terms and conditions, if any, upon which such Securities may be exchanged for or converted into other securities issued by IRSA PC or any other Person; and

(12) any other terms and conditions of the Securities of such Series.

Section 2.4. Authentication and Delivery of Securities.

 At any time and from time to time after the execution and delivery of this Indenture, IRSA PC may deliver one or more Securities executed by IRSA PC to the Trustee for authentication together with the applicable documents referred to below in this Section 2.4, and the Trustee shall thereafter authenticate and deliver such Securities to or upon the order of IRSA PC (contained in the Company Order referred to below in this Section 2.4). Such Company Order may provide written instructions or provide for further instructions from IRSA PC as to the form and terms of such Securities. In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive and shall be fully protected in relying upon:

(1) a Company Order requesting such authentication setting forth instructions as to delivery;

(2) any resolutions of the Board of Directors, or, if applicable, an executed supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant to which the forms and terms of such Securities were established;

(3) to the extent the forms and terms of such Securities are determined pursuant to (and are not set forth in) any resolutions of the Board of Directors or supplemental indentures pursuant to Sections 2.1 and 2.3, an Officer’s Certificate, prepared in accordance with Section 12.5, setting forth the form or forms and terms of the Securities; and

(4) an Opinion or Opinions of Counsel, in accordance with Section 12.5, which shall also state (a) that the form or forms and terms of such Securities have been or will, when established in compliance with procedures therein described, be duly authorized in conformity with the provisions of this Indenture; (b) that such Securities, when authenticated and delivered by the Trustee and issued by IRSA PC in the manner and subject to any conditions specified in such Opinion(s) of Counsel, will have been duly executed and delivered and will constitute valid and binding obligations of IRSA PC, enforceable against IRSA PC in accordance with and subject to such matters as counsel may therein specify; and (c) such other matters as the Trustee may reasonably request.

The Trustee shall have the right to decline to authenticate and deliver any Securities under this Section 2.4 if the Trustee, (x) being advised by counsel, and after having consulted with counsel to IRSA PC, determines that such action may not lawfully be taken, (y) acting in good faith through its board of directors or board of trustees, executive committee, or a trust committee of directors or trustees or a Responsible Officer shall determine that such action would expose the Trustee to personal liability to existing Holders or (z) determines that such action will affect its rights, duties, obligations or immunities hereunder in a manner not reasonably acceptable to it.

18

Section 2.5. Execution of Securities.

The Securities shall be executed on behalf of IRSA PC by each of a member of its Board of Directors and a member of its Supervisory Committee. Such signatures, in accordance with applicable laws and regulations, shall be the manual or facsimile signatures of such Authorized Persons. Typographical and other minor errors or defects in any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.

In case any Authorized Person of IRSA PC who shall have executed any of the Securities shall cease to be such Authorized Person before the Security so executed shall be authenticated and delivered by the Trustee or disposed of by or on behalf of IRSA PC, such Security nevertheless may be authenticated and delivered or disposed of as though the Person who executed such Security had not ceased to be such Authorized Person of IRSA PC; and any Security may be executed on behalf of IRSA PC by such Persons as, at the actual date of the execution of such Security, shall be proper Authorized Persons of IRSA PC, although at the date of the execution and delivery of this Indenture any such Person was not such an Authorized Person.

Section 2.6. Certificate of Authentication.

Only such Securities as shall bear thereon a certificate of authentication substantially in the form herein before recited, executed by the Trustee by the manual signature of one of its authorized signatories, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon any Security executed by or on behalf of IRSA PC shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by IRSA PC, and IRSA PC shall deliver such Security to the Trustee for cancellation together with a written statement executed by an Authorized Person (which need not comply with Section 12.5 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by IRSA PC, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

Section 2.7. Global Securities.

Global Securities shall be subject to the following terms:

(a) Interests in a Global Security deposited with a Depositary pursuant to this Section 2.7 shall be exchanged for Certificated Securities only if such exchange complies with Section 2.10 and in the case of a DTC Global Security, DTC notifies IRSA PC and the Trustee that it is unwilling or unable to continue as Depositary for such Global Security or if at any time DTC ceases to be a “clearing agency” registered under the Exchange Act, and a successor depositary so registered is not appointed by IRSA PC within ninety (90) days of such notice, in the case of a Euroclear/Clearstream Global Security, if the Depositary through which it is cleared and settled is closed for business for a continuous period of fourteen (14) days (other than by reason of holidays, statutory or otherwise) or announces an intention to cease business permanently or does in fact do so, an Event of Default has occurred and is continuing with respect to the Series of Securities represented by such Global Security or IRSA PC in its sole discretion notifies the Trustee in writing that Certificated Securities shall be delivered in exchange for such Global Security with respect to the Series of the Securities represented by such Global Security.

(b) If interests in any Global Security in whole or, from time to time, in part, are to be exchanged for Securities in the form of Certificated Securities pursuant to Section 2.10, such Global Security shall be surrendered by the relevant Depositary to the Trustee to be so exchanged, without charge, and the Trustee shall authenticate and deliver, upon such exchange of interests in such Global Security, an equal aggregate principal amount of Certificated Securities. The Certificated Securities exchanged pursuant to this Section 2.7 shall be registered by the Co-Registrar in such names as the relevant Depositary shall direct in writing in accordance with its records. Any Certificated Security delivered in exchange for any interest in any Rule 144A Global Security or Regulation S Global Security shall, except as provided by Section 2.10, bear the applicable Restrictive Legend as set forth on the face of the form of the Certificated Securities set forth in Exhibit B hereto.

(c) Until exchanged in full, a Global Security of a Series shall in all respects be entitled to the same benefits under this Indenture as Certificated Securities of such Series authenticated and delivered hereunder.

(d) None of the Trustee or any Agent shall have any responsibility or obligation to any beneficial owner of an interest in a Global Security, a member of, or a participant in, any Depositary or other Person with respect to the accuracy of the records of any Depositary or its nominee or of any participant member thereof, with respect to any ownership interest in the Securities or with respect to the delivery to any participant, member, beneficial owner or other person (other than the relevant Depositary) of any notice (including any notice of redemption) or the payment of any amount or delivery of any Securities (or other security or property) under or with respect to such Securities. All notices and communications to be given to the Holders and all payments to be made to Holders in respect of the Securities shall be given or made only to or upon the order of the registered Holders (which shall be the relevant Depositary or its nominee in the case of a Global Security). The rights of beneficial owners in any Global Security shall be exercised only through the relevant Depositary subject to the applicable rules and procedures of such Depositary. The Trustee and each Agent may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and any beneficial owners.

19

Section 2.8. Denomination and Date of Securities.

Subject to applicable laws and regulations, Securities shall be issued in such denominations as are set forth in the terms of such Securities established pursuant to Section 2.3. Each Security shall be dated the date of its authentication.

Section 2.9. Payments of Principal and Interest.

(a) Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration, redemption or repurchase) shall be paid in immediately available funds to the Person in whose name a Security is registered at the close of business on the Regular Record Date next preceding each Interest Payment Date notwithstanding the cancellation of such Securities upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Interest Payment Date; provided that interest payable at Stated Maturity or upon acceleration, redemption or repurchase shall be paid to the Person to whom principal will be payable; provided further that if and to the extent IRSA PC defaults in the payment of the interest, including any Additional Amounts, due on such Interest Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Person in whose names such Securities are registered at the end of a subsequent record date established by IRSA PC by notice given by or on behalf of IRSA PC to the Holders of the Securities in accordance with Section 12.4 not less than fifteen (15) days preceding such subsequent record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest. Unless otherwise specified in the terms of Securities of a Series established as set forth in Section 2.3, the first payment of interest on any Security originally issued between a Regular Record Date and an Interest Payment Date shall be made on the Interest Payment Date following the next succeeding Regular Record Date to the registered owner at the close of business on such next succeeding Regular Record Date. Unless otherwise specified in the terms of Securities of a Series established as set forth in Section 2.3, the “Regular Record Date” with respect to any Security will be the date next preceding each Interest Payment Date, whether or not such date is a Business Day.

(b) Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of any Security at Stated Maturity or upon acceleration, redemption or repurchase shall be made to the registered Holder on such date in immediately available funds upon surrender of such Security at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Security is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of Securities to be made other than at Stated Maturity or upon redemption shall be made by wire transfer or check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that the applicable Depositary (or its nominee), as Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds, a Holder of US$1,000,000 (or the approximate equivalent thereof in a Specified Currency other than U.S. dollars) in aggregate principal or face amount of Securities of the same Series shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due and to the extent that the Holder of a Security issued and denominated in a Specified Currency other than U.S. dollars elects to receive payment of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of such Security at Stated Maturity or upon redemption or repurchase in such Specified Currency, such payment, except in circumstances described in terms of the Securities of such Series established pursuant to Section 2.3, shall be made by wire transfer of immediately available funds to an account specified in writing not less than fifteen (15) days prior to the relevant Payment Date by the Holder to the Trustee. Unless such designation is revoked in writing, any such designation made by such Holder with respect to such Securities shall remain in effect with respect to any future payments with respect to such Securities payable to such Holder.

20

(c) If the principal of or any premium, interest, Additional Amounts or other amounts on any Security is payable in a Specified Currency other than U.S. dollars and such Specified Currency is not available due to the imposition of exchange controls or other circumstances beyond IRSA PC’s control, or is no longer used by the government of the country issuing such currency or for settlement of transactions by public institutions of or within the international banking community, then IRSA PC, until such currency is again available or so used, will be entitled, to the extent permitted by Argentine law, to satisfy its obligations to the Holder of such Securities by making such payment in U.S. dollars at the Exchange Rate for such Specified Currency on the Payment Date. The making of any payment in respect of any Security in U.S. dollars under the foregoing circumstances will not constitute an Event of Default under such Security.

(d) If so specified in the terms of a Series of Securities established pursuant to Section 2.3, Securities denominated in a Specified Currency other than U.S. dollars, payments of principal, interest, Additional Amounts or other amounts on or in respect of any such Security shall, to the extent permitted by applicable law, be made in U.S. dollars, calculated at the Exchange Rate for the Payment Date, if the Holder of such Security on the relevant Regular Record Date or at Stated Maturity, as the case may be, has transmitted a written request for such payment in U.S. dollars to the Trustee and the applicable Paying Agent delivered in accordance with Section 12.4 on or prior to such Regular Record Date or the date that is fifteen (15) days prior to the Stated Maturity, as the case may be. Any such request made with respect to any Security by a Holder will remain in effect with respect to any further payments of principal, interest, Additional Amounts or other amounts on or in respect of such Security payable to such Holder, unless such request is revoked on or prior to the relevant Regular Record Date or the date that is fifteen (15) days prior to the Stated Maturity, as the case may be.

(e) The U.S. dollar amount to be received by a Holder of a Security denominated in a Specified Currency other than U.S. dollars who elects to receive payment in U.S. dollars will be based on the Exchange Rate, on the second (2nd) Business Day next preceding the applicable Payment Date. If Exchange Rate quotations are not available on the second (2nd) Business Day preceding the applicable Payment Date, such payment will be made in the Specified Currency. All currency exchange costs associated with any payment in U.S. dollars on any Security denominated in a Specified Currency other that U.S. dollars will be borne by the Holder thereof by deductions from payment of the currency exchange being effected on behalf of the Holder by the Exchange Rate Agent.

(f) Unless otherwise specified in the terms of a Series of Securities, Securities denominated in a Specified Currency other than U.S. dollars will provide that, in the event of an official redenomination of such currency, the obligations of IRSA PC with respect to payments on such Securities shall, in all cases, be deemed immediately following such redenomination to provide for payment of that amount of the redenominated currency representing the amount of such obligations immediately before such redenomination.

Section 2.10. Registration, Transfer and Exchange of Securities.

The Co-Registrar will keep a register (the “Register”) in the English language at its office in New York City for the registration of ownership, exchange and transfer of Securities. In the case of the replacement of any of the Securities, the Register will include notations of the Security so replaced, and the Security issued in replacement thereof. In the case of the cancellation of any of the Securities, the Register will include notations of the Security so cancelled and the date on which such Security was cancelled. The Register will show the amount of the Securities, the date of issue, all subsequent transfers and changes of ownership in respect thereof and the names, tax identification numbers (if relevant to a specific Holder) and addresses of the Holders of the Securities and any payment instructions with respect thereto (if different from a Holder’s registered address). The Co-Registrar shall at all reasonable times during office hours make the Register available to IRSA PC or any Person authorized by IRSA PC in writing for inspection and for taking copies thereof or extracts therefrom, and at the expense and written direction of IRSA PC, the Co-Registrar shall deliver to such Persons all lists of Holders of Securities, their addresses and amounts of such holdings as IRSA PC may request.

The Registrar shall maintain a duplicate register at its office in the City of Buenos Aires, Argentina to the extent permitted by applicable Argentine law in written or electronic form in the Spanish language.

21

(i) Subject to Section 2.10(b)(ii) and such reasonable and customary regulations as IRSA PC may from time to time prescribe, transfers of any Certificated Security in whole or in part pursuant to this Section 2.10(a) must be made at the relevant office of the Co-Registrar or the relevant Transfer Agent that may be appointed by IRSA PC, by delivery of such Certificated Security with the form of transfer thereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to IRSA PC and the Co-Registrar or any other Transfer Agent, as the case may be, duly executed by the registered Holder thereof or such registered Holder’s attorney-in-fact duly authorized in writing. In exchange for any Certificated Security properly presented for transfer, the Trustee shall promptly authenticate and deliver or cause to be authenticated and delivered at the Corporate Trust Office or at the office of the Co-Registrar or at the office of any Transfer Agent, as the case may be, to the transferee or send by mail (at the risk of the transferee) to such address as the transferee may request, a Certificated Security or Securities in the name of such transferee and for the same aggregate principal amount as shall have been transferred. Subject to the minimum denomination requirements, if any, set forth in the terms of a particular Series of Securities established pursuant to Section 2.3, in the case of the transfer of any Certificated Security in part, the Trustee shall also promptly authenticate and deliver or cause to be authenticated and delivered at the Corporate Trust Office or at the office of the Co-Registrar or at the office of any Transfer Agent, as the case may be, to the transferor or send by mail (at the risk of the transferor) to such address as the transferor may request, a Certificated Security or Securities registered in the name of the transferor and for the aggregate principal amount that was not transferred. Certificated Securities may also be exchanged for other Certificated Securities of the same Series in any authorized denominations and of equal aggregate principal amount of Securities of such Series, subject to, if any, the minimum denomination requirements set forth in the applicable resolution of the Board of Directors or an indenture supplemental hereto. Unless otherwise specified in the applicable resolution of the Board of Directors or an indenture supplemental hereto, Certificated Securities held by Qualified Institutional Buyers may be exchanged for beneficial interests in a Rule 144A Global Security representing Securities of the same Series. In exchange for any such Certificated Security, the Trustee will increase the amount of the relevant Rule 144A Global Security by the amount of such Certificated Security and will cause the Co-Registrar to make the appropriate entries in the Register indicating a transfer of a beneficial interest to such Qualified Institutional Buyer or to a participant in the relevant Depositary specified by such Qualified Institutional Buyer. Except as specified in this paragraph and in Section 2.11, Certificated Securities will not be exchangeable for interests in Global Securities.

(ii) If IRSA PC notifies the Trustee in writing that Certificated Securities are issued in reliance on the exemption from registration afforded by Rule 144A, issued upon transfer or exchange of any such Security (other than in accordance with clause 2 of this Section 2.10(a)(ii)) or issued upon exchange of a Rule 144A Global Security pursuant to Section 2.7, prior to the date which is one (1) year after the Original Issue Date of any such Security (or of such Rule 144A Global Security, as the case may be) (provided that IRSA PC or any affiliate thereof has not acquired such Security during such one (1) year period) or in the case of any other “restricted security” (as defined in Rule 144), the Co-Registrar, as Transfer Agent, shall not register the transfer or exchange of such Security (other than pursuant to Section 2.11) unless:

(1) either the registered Holder presenting such Security for transfer, or its attorney-in-fact, shall have advised the Co-Registrar in writing that such registered Holder intends to rely or is relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A thereunder in making such transfer or the Person presenting such Security for transfer (if other than the registered Holder or its attorney-in-fact), or its attorney-in-fact, shall have advised the Co-Registrar in writing that the Person in whose name the Security is to be registered in the Register upon transfer (and each beneficial owner of such Security) is a Qualified Institutional Buyer and that such Person or Persons have been advised that the Security has been sold or transferred to it in reliance upon Rule 144A; or either the registered Holder presenting such Security for transfer, or its attorney-in-fact, shall have advised the Co-Registrar in writing that the registered Holder intends to rely or is relying on the exemption from the registration requirements of the Securities Act provided by Regulation S or the Person presenting such Security for transfer (if other than the registered Holder or its attorney-in-fact), or its attorney-in-fact, shall have advised the Co-Registrar in writing that the Security has been sold or transferred to it in reliance upon the exemption from the registration requirements of the Securities Act provided by Regulation S; or

22

(2) such Security is to be registered in the Register upon transfer in the name of a Dealer, its nominee or IRSA PC; or

(3) the Person presenting the Security for transfer, or its attorney-in-fact, shall have advised the Trustee in writing that another exemption from the registration requirements of the Securities Act is available, including the exemption provided by Rule 144, which is confirmed in an opinion of counsel, and the Co-Registrar has received the written consent of IRSA PC to the registration of such transfer, in which event the Co-Registrar shall register such transfer only in accordance with the conditions of such consent.

For purposes of this Section 2.10(a)(ii), any such advice to the Trustee in writing may be in the form of a letter, notice or other written document, including, with respect to clauses (1), (2) and (3) above, by appropriate notation on the transfer notice set forth on such Security.

None of the Trustee, the Co-Registrar or any Transfer Agent shall register the transfer of or exchange of Certificated Securities for a period of fifteen (15) days preceding the due date for any payment of interest on the Security or during the period of thirty (30) days ending on the due date for any payment of principal on the Security. Neither the Co-Registrar or any Transfer Agent shall register the transfer of or exchange any Securities previously called for redemption or tendered for repurchase.

DTC Global Securities — DTC Book Entry Provisions. Interests in DTC Global Securities will be transferable in accordance with the rules and procedures from time to time of DTC. Members of, or participants in, DTC shall have no rights under this Indenture with respect to any DTC Global Security held on their behalf by DTC, and DTC or its nominee may be treated by IRSA PC, the Trustee, any Agent or any other agent hereunder as the absolute owner of such DTC Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent IRSA PC, the Trustee, any Agent or any other agent hereunder from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its agent members, the operation of customary practices governing the exercise of the rights of a Holder of any DTC Global Security.

(iii) Global Securities — Euroclear and Clearstream Book Entry Provisions. Insofar as interests in any Euroclear/Clearstream Global Security are held by the agent members of Euroclear or Clearstream, the provisions of the “Operating Procedures of the Euroclear System” and the “Terms and Conditions Governing Use of Participants” of Euroclear and Clearstream, respectively, shall be applicable to such Euroclear/Clearstream Global Security. Notwithstanding the foregoing, nothing herein shall prevent IRSA PC, the Trustee, any Agent or any other agent hereunder from giving effect to any written certification, proxy or other authorization furnished by Euroclear or Clearstream or impair, as between Euroclear or Clearstream and their respective agent members, the operation of customary practices governing the exercise of the rights of a Holder of any Euroclear/Clearstream Global Security.

(iv) Transfers of Global Securities in Whole. Subject to the provisions of Section 2.10(c), transfers of a Global Security shall be limited to (i) transfers of a DTC Global Security in whole, but not in part, to DTC, nominees of DTC or to a successor of DTC or such successor’s nominee (including, without limitation, pursuant to Section 2.10(b)(iv), or (ii) transfers of a Euroclear/Clearstream Global Security in whole, but not in part, to the Common Depositary for Euroclear and Clearstream, nominees of the Common Depositary or to a successor to the Common Depositary or such successor’s nominee (including, without limitation, pursuant to Section 2.10(b)(v)).

(v) Transfer of DTC Global Security to Euroclear and/or Clearstream. If the Securities of any Series are at any time represented by both a DTC Global Security and an Euroclear/Clearstream Global Security and an authorized representative of DTC presents the DTC Global Security to the Trustee or any Transfer Agent, accompanied by a written instrument of transfer in form satisfactory to the Trustee or such Transfer Agent, as applicable, executed by DTC or by DTC’s attorney thereunto duly authorized in writing, for the purpose of registration of transfer of all or any portion of such DTC’s interest in such DTC Global Security to Euroclear and/or Clearstream, such DTC Global Security or the relevant interest therein shall be transferred upon the Register, and the Trustee shall endorse the DTC Global Security to reflect the reduction of its principal amount by the aggregate principal amount so transferred, and the appropriate Euroclear/Clearstream Global Security shall be endorsed by the Trustee to reflect the increase of its principal amount by the aggregate principal amount so transferred. The Trustee is hereby authorized on behalf of IRSA PC (1) to endorse or to arrange for the endorsement of the relevant DTC Global Security to reflect the reduction in the principal amount represented thereby by the amount so transferred and to endorse the appropriate Euroclear/Clearstream Global Security to reflect the increase in the principal amount represented thereby by the amount so transferred and, in either case, to sign in the relevant space on the relevant Security recording such reduction or increase and (2) in the case of a total exchange, to cancel or arrange for the cancellation of the DTC Global Security.

23

(vi) Transfer of Euroclear/Clearstream Global Security to DTC. If the Securities of any Series are for the time being represented by both a DTC Global Security and a Euroclear/Clearstream Global Security and an authorized representative of the Common Depositary for Euroclear or Clearstream presents the Euroclear/Clearstream Global Security to the Trustee or the relevant Transfer Agent, as applicable, accompanied by a written instrument of transfer in form satisfactory to the Trustee or such Transfer Agent, executed by the Common Depositary for Euroclear and Clearstream, as the case may be, or by the Common Depositary’s attorney thereunto duly authorized in writing, for the purpose of registration of transfer of all or any portion of Euroclear’s or Clearstream’s interest in such Euroclear/Clearstream Global Security to DTC, such Euroclear/Clearstream Global Security or the relevant interest therein shall be transferred upon the Register, and the Trustee shall endorse the Euroclear/Clearstream Global Security to reflect the reduction of its principal amount by the aggregate principal amount so transferred, and the appropriate DTC Global Security shall be endorsed by the Trustee to reflect the increase of its principal amount by the aggregate principal amount so transferred. The Trustee is hereby authorized on behalf of IRSA PC (i) to endorse or to arrange for the endorsement of the relevant Euroclear/Clearstream Global Security to reflect the reduction in the principal amount represented thereby by the amount so transferred and to endorse the appropriate DTC Global Security to reflect the increase in the principal amount represented thereby by the amount so transferred, and in either case, to sign in the relevant space on the relevant Security recording such reduction or increase and (ii) in the case of a total exchange, to cancel or arrange for the cancellation of the Euroclear/Clearstream Global Security.

(e) Notwithstanding any provision to the contrary herein, so long as Global Securities of a Series remain Outstanding and are held by or on behalf of a Depositary, transfers or exchanges of interests between Global Securities of a Series, in whole or in part, shall only be made in accordance with this Section 2.10(c) or Section 2.11.

(i) Transfers From Rule 144A Global Security to Regulation S Global Security. If Securities of a Series are issued in the form of a Regulation S Global Security and a Rule 144A Global Security, and if a holder of a beneficial interest in the Rule 144A Global Security deposited with the relevant Depositary or its custodian wishes at any time to exchange its interest in such Rule 144A Global Security for an interest in the Regulation S Global Security of the same Series, or to transfer its interest in such Rule 144A Global Security to a Person who wishes to take delivery thereof in the form of an interest in the Regulation S Global Security, such holder may, subject to the rules and procedures of DTC and, to the extent applicable, Euroclear and Clearstream, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Regulation S Global Security of the same Series. Upon receipt by the Trustee, of (1) written instructions given in accordance with procedures of DTC and/or, to the extent applicable, Euroclear and Clearstream from a participant, directing the Trustee to credit or cause to be credited a beneficial interest in the Regulation S Global Security in an amount equal to the beneficial interest in the Rule 144A Global Security of the same Series to be exchanged or transferred, such instructions to contain information regarding the participant account of DTC or, to the extent applicable, Euroclear or Clearstream, to be credited with such increase and information regarding the participant account with DTC to be debited with such decrease and (2) a certificate which:

(I) for transfers or exchanges made during the Restricted Period, is in the form of Exhibit D hereto given by the holder of such beneficial interest stating that the exchange or transfer of such interest has been made in compliance with the transfer restrictions applicable to the Securities and pursuant to, and in accordance with, Regulation S; or

(II) for transfers or exchanges made after the expiration of the Restricted Period, is in the form of Exhibit E hereto given by the holder of such beneficial interest stating that the exchange or transfer of such interest has been made in compliance with the transfer restrictions applicable to the Securities and (A) that such transfer or exchange has been made pursuant to, and in accordance with, Regulation S or (B) that such transfer or exchange has been made in a transaction permitted by Rule 144, then the Trustee or Transfer Agents shall instruct DTC to reduce the Rule 144A Global Security by the aggregate principal amount of the beneficial interest to be so exchanged or transferred, and the Trustee shall instruct DTC or, to the extent applicable, Euroclear or Clearstream, concurrently with such reduction, to increase the principal amount of the Regulation S Global Security of the same Series by the aggregate principal amount of the beneficial interest in the Rule 144A Global Security to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Regulation S Global Security equal to the reduction in the principal amount of the Rule 144A Global Security of the same Series.

(ii) Transfers From Regulation S Global Security to Rule 144A Global Security. If Securities of any Series are issued in the form of a Regulation S Global Security and a Rule 144A Global Security, and if a holder of a beneficial interest in the Regulation S Global Security deposited with the relevant Depositary or its custodian wishes at any time to exchange its interest in such Security for an interest in the Rule 144A Global Security of the same Series, or to transfer its interest in such Regulation S Global Security to a Person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Security of the same Series, such holder may, subject to the rules and procedures of DTC or, to the extent applicable, Euroclear and Clearstream, exchange or transfer such interest for an equivalent beneficial interest in the Rule 144A Global Security of the same Series. Upon receipt by the Trustee of (1) written instructions given in accordance with the procedures of DTC and/or, to the extent applicable, Euroclear and Clearstream from a participant, directing the Trustee to credit or cause to be credited a beneficial interest in the Rule 144A Global Security in an amount equal to the beneficial interest in the Regulation S Global Security of the same Series to be exchanged or transferred, such instructions to contain information regarding the participant’s account with DTC to be credited with such increase, and information regarding the participant’s account with DTC or, to the extent applicable, Euroclear or Clearstream, to be debited with such decrease, and (2) with respect to an exchange or transfer of an interest in the Regulation S Global Security during the Restricted Period for an interest in the Rule 144A Global Security of the same Series, a certificate in the form of Exhibit F hereto given by the holder of such beneficial interest and stating that the Person transferring such interest in the Regulation S Global Security reasonably believes that the Person acquiring such interest in the Rule 144A Global Security of the same Series is a Qualified Institutional Buyer and is obtaining such beneficial interest in a transaction meeting the requirements of Rule 144A, the Trustee or applicable Transfer Agent shall instruct DTC or, to the extent applicable, Euroclear or Clearstream, to reduce the Regulation S Global Security by the aggregate principal amount of the beneficial interest to be so exchanged or transferred, and the Trustee shall instruct DTC, concurrently with such reduction, to increase the principal amount of the Rule 144A Global Security of the same Series by the aggregate principal amount of the beneficial interest in the Regulation S Global Security to be so exchanged or transferred, and to credit the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security equal to the reduction in the principal amount of the Regulation S Global Security of the same Series.

(f) If Securities are issued upon the transfer, exchange or replacement of Securities not bearing the restrictive legends set forth in the respective applicable form of Security attached hereto (collectively, a “Restrictive Legend”), the Securities so issued shall not bear a Restrictive Legend. If Securities are issued upon the transfer, exchange or replacement of Securities bearing a Restrictive Legend, or if a request is made to remove a Restrictive Legend of a Security, the Securities so issued shall bear a Restrictive Legend as set forth on the applicable form of Security attached hereto, or the Restrictive Legend shall not be removed, as the case may be, unless:

24

(i) in the case of Certificated Securities issued pursuant to Section 2.10(a)(ii), the provisions of clause (2) thereof shall have been satisfied; or

(ii) in any other case there is delivered to IRSA PC and the Trustee such evidence as shall be satisfactory to IRSA PC, which may include an opinion of New York counsel, as may be reasonably required by IRSA PC (at the Holder’s expense) that neither the Restrictive Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply, as the case may be, with the provisions of Rule 144A, Rule 144 or Regulation S or that such Securities are not “restricted securities” within the meaning of Rule 144.

In the case of either clause (i) or (ii) above, the Trustee, at the written direction of IRSA PC, shall authenticate and deliver a Security that does not bear the Restrictive Legend. If the Restrictive Legend is removed from the face of a Security and such Security is subsequently held by IRSA PC or an Affiliate of IRSA PC and a Responsible Officer of the Trustee subsequently receives written notice from IRSA PC that such Security is a “restricted security” within the meaning of Rule 144, the Restrictive Legend shall be reinstated.

(g) Prior to satisfaction of the applicable requirements in this Section 2.10 for registration of transfer, IRSA PC, the Trustee and each Agent may deem and treat the registered Holder as appears in the Register of any Security as the absolute owner of such Security, in each case for the purpose of receiving payment of the principal and any interest in respect of such Security and for all other purposes whatsoever.

(h) Transfer, registration and exchange of any Security or Securities shall be permitted and executed as provided in this Section 2.10 without any charge to the Holder of any such Security or Securities, other than any taxes or governmental charges payable on transfers or exchanges.

(i) Neither the Trustee nor any Agent shall have any obligation or duty to monitor, determine or inquire as to compliance with any tax or securities laws with respect to any restrictions on transfer imposed under this Indenture or under applicable law (including any transfers between or among any Depositaries or any Depositary’s participant, members or beneficial owners in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

(j) All the provisions and undertakings set forth above concerning registration of ownership, exchange and transfer of Securities shall be exclusively performed by The Bank of New York Mellon, acting as Co-Registrar.

If the Registrar is required to perform any of the provisions and undertakings set forth above concerning registration of ownership, exchange and transfer of Securities, with the agreement of IRSA PC, the Registrar may delegate such duties to another entity acting in Argentina with legal capacity to carry out such activities in accordance with the provisions of this Indenture and applicable Argentine law. The Registrar shall promptly notify IRSA PC if it is required to undertake any such activities so that IRSA PC shall designate the entity to whom the Registrar shall delegate such duties. All costs related to the delegation of such activities shall be borne by the Registrar.

Once any such delegation is made, and is accepted by the delegated entity, the Registrar shall not be liable for the breach of any of the obligations assumed by such delegated entity pursuant to this Indenture and shall be indemnified by IRSA PC for and held harmless against, any and all losses, damages, liabilities, judgments, claims, causes of action, costs and expenses (including reasonable and documented fees and disbursements of legal counsel) incurred directly or indirectly, without negligence or bad faith on the part of the Registrar, arising out of or in connection with the performance of the duties assumed by the delegate Registrar under this Indenture.

For the avoidance of doubt, the obligations of the Registrar and Co-Registrar hereunder are several and not joint.

25

Section 2.11. Mutilated, Defaced, Destroyed, Stolen and Lost Securities; Cancellation and Destruction of Securities.

IRSA PC shall execute and deliver to the Trustee Certificated Securities in such amounts and at such times as to enable the Trustee to fulfill its responsibilities under this Indenture and the Securities.

(a) The Trustee shall, in accordance with any terms and conditions set forth in the Securities, and upon provision of evidence satisfactory to the Trustee and to IRSA PC that any Security was mutilated, defaced, destroyed, stolen or lost, together with such indemnity as the Trustee and IRSA PC may require to hold each of them harmless, authenticate and deliver from time to time such Securities in exchange for or in lieu of such Securities that become mutilated, defaced, destroyed, stolen or lost. Each Security delivered in exchange for or in lieu of any other Security shall carry all the rights to interest (including rights to accrued and unpaid interest and Additional Amounts) that were carried by such other Security.

(b) All Securities surrendered for payment, transfer or exchange shall be delivered to the Trustee. The Trustee shall cancel and destroy all such Securities surrendered for payment, transfer or exchange, in accordance with its security destruction policy, and shall, upon written request, deliver a certificate of destruction to IRSA PC.

(c) Upon the issuance of any substitute Security, the Holder of such Security, if so requested by IRSA PC, will pay a sum sufficient to cover any stamp duty, tax or other governmental charge that may be imposed in relation thereto and any other expense (including the fees and expenses of the Trustee, its counsel and its agents) in connection with the preparation and issuance of the substitute Security.

(d) All Securities issued upon any transfer or exchange of Securities shall be valid obligations of IRSA PC, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.

Section 2.12. Purchase and Cancellation.

IRSA PC, its Affiliates and its Subsidiaries may at any time purchase or otherwise acquire any Security in the open market or otherwise at any price and may resell or otherwise dispose of such Security at any time.

ARTICLE III

COVENANTS OF IRSA PC

Section 3.1. Payment of Principal and Interest.

IRSA PC covenants and agrees for the benefit of the Holders of the Securities that it will duly and punctually pay or cause to be paid the principal of and interest on each of the Securities (including Additional Amounts), and any other payments to be made by IRSA PC under the Securities and this Indenture, at the place or places, at the respective times and in the manner provided in such Securities and this Indenture.

(a) In order to comply with applicable tax laws (inclusive of rules, regulations and interpretations promulgated by competent authorities) related to the Securities and this Indenture in effect from time to time (“Applicable Tax Law”) that a foreign financial institution, IRSA PC, the Trustee or any Paying Agent is or has agreed to be subject, IRSA PC hereby covenants with the Trustee and each Paying Agent that it will use commercially reasonable efforts to provide each of the Trustee and the Paying Agents with sufficient information so as to enable the Trustee and the Paying Agents to determine whether or not the Trustee or such Paying Agent, as applicable, has tax related obligations under Applicable Tax Law. The Trustee and each Paying Agent shall be entitled to make any withholding or deduction from payments to the extent necessary to comply with Applicable Tax Law for which the Trustee and each Paying Agent shall not have any liability.

Section 3.2. Offices for Payments, etc.

So long as any of the Securities remain Outstanding, IRSA PC will maintain in New York City the following: an office or agency where the Securities may be presented for payment, where the Securities may be presented for exchange, transfer or registration of transfer as in this Indenture provided and where notices and demands to or upon IRSA PC (other than the type contemplated by Section 12.7) in respect of the Securities or of this Indenture may be served. Unless otherwise specified in accordance with Section 2.3, IRSA PC hereby initially appoints the Trustee at its office or agency for each such purpose and designates the Corporate Trust Office as the office to be maintained by it for each such purpose. In case IRSA PC shall fail to so designate or maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations and demands may be made and notices may be served at all times at the Corporate Trust Office and IRSA PC hereby appoints the Trustee as its agent to receive all such presentations, demands and notices. If and for so long as any Series of Securities are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, the alternative market of the Luxembourg Stock Exchange (the “Euro MTF”), and the Luxembourg Stock Exchange so requires, IRSA PC will maintain a Paying Agent and a Transfer Agent in Luxembourg. As required by Argentine law and by the CNV, IRSA PC will maintain a Registrar, a Paying Agent and a Transfer Agent in Argentina. Banco Santander Río S.A. at its office at Bartolomé Mitre 480, 11th Floor, City of Buenos Aires, Argentina, will initially act as such Registrar, Paying Agent and Transfer Agent in Argentina, as well as the Representative of the Trustee in Argentina. The Registrar, the Co-Registrar, each of the Paying Agents and each of the Transfer Agents may change their respective specified offices set forth herein to some other specified offices in the same city. IRSA PC will promptly give to the Trustee and the Holders (and, if so required, the CNV, the Luxembourg Stock Exchange, the Merval or such other securities exchange on which a Series of Securities may be listed) written notice of any change of location of specified offices, or of any resignation, termination or appointment of any Agent.

26

Section 3.3. Appointment to Fill a Vacancy in Office of Trustee.

IRSA PC, whenever necessary to avoid or fill a vacancy in the office of the Trustee, will appoint, in the manner provided in Section 5.9, a Trustee, so that there shall, at all times, be a Trustee with respect to the Securities.

Section 3.4. Payments and Paying Agents.

IRSA PC will, on or before 10:00 AM (New York City time) at least one (1) Business Day prior to each Payment

Date deposit with the Trustee a sum sufficient to pay such principal, premium or interest (including Additional Amounts) so becoming due. IRSA PC shall request that the bank through which any such payment is to be made agrees to supply to the Trustee two (2) Business Days prior to the due date for any such payment an irrevocable confirmation (by tested telex or authenticated SWIFT) of its intention to make such payment.

(a) At least five (5) Business Days prior to the first Payment Date of interest or principal and, if there has been any change with respect to the matters set forth in the below-mentioned Officer’s Certificate, at least five (5) Business Days prior to each Payment Date of interest or principal thereafter, IRSA PC shall furnish the Trustee with an Officer’s Certificate instructing the Trustee as to any circumstances in which payments of principal of or interest on any Securities (including Additional Amounts) due on such Payment Date shall be subject to deduction or withholding for or on account of any taxes and the rate of any such deduction or withholding. If any such deduction or withholding shall be required and if IRSA PC therefore becomes liable to pay Additional Amounts pursuant to the terms of such Securities, then such Officer’s Certificate shall specify the amount required to be withheld on such Payment Date to Holders of such Securities and the Additional Amounts due to Holders of such Securities and that IRSA PC shall pay in a timely manner such amount to be withheld to the appropriate governmental authority, and IRSA PC will pay to the Trustee such Additional Amounts as shall be required to be paid to such Holders. IRSA PC agrees to indemnify the Trustee and each Paying Agent for, and to hold each harmless against, any loss, claim, damage, cost liability or expense reasonably incurred by them without negligence or willful misconduct on their respective parts, arising out of or in connection with actions taken or omitted by them in reliance on any Officer’s Certificate furnished pursuant to this Section 3.4(b) or the failure to furnish any such certificate. The obligations of IRSA PC under the preceding sentence shall survive the payment of the Securities, the resignation or removal of the Trustee or any Paying Agent and/or the termination of this Indenture.

(b) Each of the Paying Agents hereby agrees (and whenever IRSA PC shall appoint a Paying Agent with respect to the Securities other than those specified in Section 3.2, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Agent shall agree), subject to the provisions of this Section 3.4:

(i) that it will hold all sums received by it as such agent for the payment of the principal of or interest due on any Securities (whether such sums have been paid to it by or on behalf of IRSA PC or by any other obligor on the Securities) in trust for the benefit of the Holders of such Securities or of the Trustee,

(ii) that it will give the Trustee written notice of any failure by IRSA PC (or by any other obligor on the Securities) to make any payment of the principal of or interest on any Securities (including Additional Amounts) and any other payments to be made by or on behalf of IRSA PC under this Indenture or such Securities when the same shall be due and payable, and that it will transfer any such sums so held in trust by it to the Trustee upon the Trustee’s written request at any time during the continuance of the failure referred to in clause (ii) above.

27

IRSA PC shall give, at its expense, notice of the appointment of any Paying Agents (other than those specified in Section 3.2) to the Holders as specified in Section 12.4, and to the CNV if required under Argentine law.

The Trustee, in its capacity as the Principal Paying Agent, shall arrange with all such Paying Agents for the payment, from funds furnished by IRSA PC to the Trustee pursuant to this Indenture, of the principal of and interest on the Securities (including Additional Amounts).

If IRSA PC shall act as its own paying agent with respect to any Securities, it will, on or before each Payment Date on such Securities, set aside, segregate and hold in trust for the benefit of the Holders of such Securities a sum sufficient to pay such principal or interest (including Additional Amounts) so becoming due. IRSA PC will promptly notify the Trustee in writing of any failure to take such action.

Anything in this Section 3.4 to the contrary notwithstanding, IRSA PC may at any time, for the purpose of obtaining a satisfaction and discharge with respect to any Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for such Securities by IRSA PC or any Paying Agent hereunder, as required by this Section 3.4, such sums to be held by the Trustee upon the trusts herein contained.

Anything in this Section 3.4 to the contrary notwithstanding, the agreements to hold sums in trust as provided in this Section are subject to the provisions of Sections 9.3 and 9.4.

Section 3.5. Taxation.

All payments of principal, premium or interest by IRSA PC in respect of each Security shall be made without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatever nature (including penalties and interest related thereto) (“Taxes”), unless IRSA PC is compelled by law to deduct or withhold such Taxes. If any withholding or deduction from payments made with respect to the Securities is required for or on account of Taxes imposed or levied by or on behalf of Argentina, or any political subdivision thereof or any authority therein having power to tax (“Argentine Taxes”), IRSA PC shall pay such additional amounts (“Additional Amounts”) in respect of such Argentine Taxes as may be necessary to ensure that the net amounts received by the Holders of such Securities after such withholding or deduction shall equal the respective amounts that would have been receivable in respect of such Securities in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable:

(i) to or on behalf of a Holder or beneficial owner of a Security that is liable for Argentine Taxes in respect of such Security by reason of having a present or former connection with Argentina other than merely holding or beneficially owning such Security or enforcing rights with respect to such Security or the receipt of income or any payments in respect thereof;

(ii) to or on behalf of a Holder or beneficial owner of a Security in respect of Argentine Taxes that would not have been imposed but for the failure of the Holder or beneficial owner of a Security to comply with any certification, identification, information, documentation or other reporting requirement (within thirty (30) calendar days following a written request from IRSA PC to the Holder for compliance) if such compliance is required by applicable law, regulation, administrative practice or an applicable treaty as a precondition to exemption from, or reduction in the rate of deduction or withholding of, Argentine Taxes;

(iii) to or on behalf of a Holder or beneficial owner of a Security in respect of any estate, inheritance, gift, sales, transfer, personal assets or similar tax, assessment or other governmental charge;

(iv) to or on behalf of a Holder or beneficial owner of a Security in respect of Argentine Taxes payable otherwise than by withholding from payment of principal of, premium, if any, or interest on the Securities;

(v) to or on behalf of a Holder or beneficial owner of a Security in respect of Argentine Taxes that would not have been imposed but for the fact that the Holder presented such Security for payment (where presentation is required) more than thirty (30) days after the later of (x) the date on which such payment became due and (y) if the full amount payable has not been received by the Trustee on or prior to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Securityholders by the Trustee;

28

(vi) with respect to any Security presented for payment (where presentation is required) at an office of a Paying Agent in Argentina (provided the Securities can also be presented at an office of a Paying Agent outside of Argentina without any such withholding or deduction);

(vii) where such withholding or deduction is imposed on a payment and is required to be made pursuant to European Council Directive 2003/48/EC or any other directive implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 or any law implementing or complying with, or introduced in order to conform to, any such directive;

(viii) any taxes imposed under FATCA; or

(ix) for any combination of items (i) through (viii) above; nor shall Additional Amounts be paid with respect to any payment of the principal of, or any premium or interest on, any Securities to any Holder or beneficial owner of a Security who is a fiduciary or partnership (including an entity treated as a partnership for United States federal income tax purposes) or limited liability company or any person other than the sole beneficial owner of such payment to the extent that a beneficiary or settlor with respect to such fiduciary or a member of such partnership or limited liability company or beneficial owner of such payment would not have been entitled to such Additional Amounts had it been the Holder of such Securities.

All references in this Indenture to principal, premium or interest payable hereunder shall be deemed to include references to any Additional Amounts payable under this Section 3.5 with respect to such principal, premium or interest. IRSA PC will provide the Trustee with documentation reasonably satisfactory to the Trustee evidencing the payment of any amounts deducted or withheld in accordance with this Section 3.5 promptly upon IRSA PC’s payment thereof, and copies of such documentation will be made available by the Trustee to Holders upon written request to the Trustee.

(c) IRSA PC will pay promptly when due any present or future stamp, court or documentary taxes or any excise or property taxes, charges or similar levies that arise in any jurisdiction from the execution, delivery or registration of each Security or any other document or instrument referred to herein or therein, excluding any such taxes, charges or similar levies imposed by any jurisdiction outside Argentina except those resulting from, or required to be paid in connection with, the enforcement of such Security after the occurrence and during the continuance of any Event of Default with respect to the Security in default.

Section 3.6. Maintenance of Books and Records.

 IRSA PC will maintain books, accounts and records in accordance with IFRS.

Section 3.7. Status and Ranking.

IRSA PC will ensure that its obligations under each Security will rank at least pari passu in right of payment with all other existing and future unsecured and unsubordinated indebtedness of IRSA PC (other than obligations preferred by statute or by operation of law, including, without limitation, tax and labor related claims).

(a) IRSA PC will ensure that each Security will at all times qualify as “obligaciones negociables simples no convertibles” under the Negotiable Obligations Law and will be entitled to the benefits set forth therein and subject to the procedural requirements thereof.

Section 3.8. Listing.

IRSA PC will use all reasonable efforts to assist the relevant Dealers in arranging to cause the Securities to be eligible for settlement through the facilities of DTC, Euroclear and Clearstream, as applicable, and, if so specified in the terms of a Series of Securities established pursuant to Section 2.3, to be accepted for trading on the Merval and the MAE, as applicable. In connection with any Series of Securities to be listed on the Luxembourg Stock Exchange for trading on the Euro MTF, the Merval or on another securities exchange or securities exchanges, IRSA PC will use all reasonable efforts to have such Series of Securities accepted for listing and/or trading on such securities exchange or securities exchanges no later than the date on which the Securities of such Series are to be issued and sold (or as soon thereafter as possible in accordance with the requirements of such securities exchange or securities exchanges); and IRSA PC will use all reasonable efforts to cause such listing to be maintained for so long as any of the Securities of such Series are Outstanding and to furnish to each specified securities exchange all documents, information and undertakings that may be reasonably necessary in order to effect or continue such listing; provided that if, as a result of the European Union regulated market amended Directive 2001/34/EC (the “Transparency Directive”) or any legislation implementing the Transparency Directive or other directives or legislation, IRSA PC could be required to publish financial information either more regularly than it otherwise would be required to or according to accounting principles which are materially different from the accounting principles which IRSA PC would otherwise use to prepare its published financial information, IRSA PC may delist the Securities from trading on the Euro MTF in accordance with the rules of the Luxembourg Stock Exchange and seek an alternative admission to listing, trading and/or quotation for the Securities on a different market of the Luxembourg Stock Exchange or by such other listing authority, securities exchange and/or quotation system inside or outside the European Union as the Board of Directors of IRSA PC may decide.

29

Section 3.9. Maintenance of Corporate Existence; Properties.

IRSA PC will, and will cause each of its Subsidiaries to, maintain in effect its corporate existence and all registrations necessary therefore (except for transactions not otherwise prohibited by Article VIII), take all actions to maintain all rights, privileges, titles to property or franchises necessary in the normal conduct of its business and keep all its property used or useful in the conduct of its business in good working order and condition; provided that this covenant shall not require IRSA PC to do so if in each case the Board of Directors of IRSA PC shall determine in good faith that the maintenance or preservation thereof is no longer necessary or desirable in the conduct of business of IRSA PC or the failure to so comply would not have a material adverse effect on the business, assets, operations or financial condition of IRSA PC and its Subsidiaries taken as a whole.

Section 3.10. Compliance with Law.

IRSA PC will, and will cause each of its Subsidiaries to, comply with all applicable laws, rules, regulations, orders and resolutions of each Government Agency having jurisdiction over it or its business except where the failure to so comply would not have a material adverse effect on the business, assets, operations or financial condition of IRSA PC and its Subsidiaries taken as a whole.

Section 3.11. Reports to Holders.

 For so long as any Securities remain Outstanding, IRSA PC will:

(a) Provide the Trustee with copies of its (i) annual financial statements audited by an internationally recognized firm of independent public accountants within 135 days after the end of IRSA PC’s fiscal year (which, as of the date of this Indenture, is June 30 of each year) and (ii) quarterly financial statements (including a balance sheet, income statement and statement of cash flow for the fiscal quarter or quarters then ended and the corresponding fiscal quarter or quarters from the prior year) within 60 days of the end of each of the first three (3) fiscal quarters of each fiscal year. Such annual and quarterly financial statements will be accompanied by a “management’s discussion and analysis” or other report of management providing an overview in reasonable detail of the results of operations and financial condition of IRSA PC and its Subsidiaries for the periods presented. English translations of the foregoing documents will be provided for any documents prepared in a language other than English; provided that IRSA PC will not be required to provide such copies of public filings which may be obtained from the SEC via EDGAR System or the CNV or their respective successors; and

(b) Provide the Trustee with copies (including English translations of documents prepared in a language other than English) of certain material public filings made with any securities exchange or securities regulatory agency or authority promptly after such filing; provided that IRSA PC will not be required to provide such copies of public filings which may be obtained from the SEC via the EDGAR System or its successor or through the CNV via its Financial Information System (Autopista de Información Financiera), or its successor.

In addition, at any time when IRSA PC is not subject to Section 13 or 15(d) of the Exchange Act or is exempt from the reporting requirements thereunder pursuant to Rule 12g3-2(b) of the Exchange Act, IRSA PC will make available, upon request, to the Trustee the information required pursuant to Rule 144A(d)(4) under the Securities Act.

If the Securities of any Series are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, IRSA PC will make available the information specified in clause (b) above at the specified office of the Paying Agent in Luxembourg for the Securities of such Series.

30

Delivery of the above reports and the information described in this Section 3.11 to the Trustee is for informational purposes only and the Trustee’s receipt of such reports shall not constitute actual or constructive notice of any information contained therein or determinable from information contained therein, including IRSA PC’s or any Subsidiary’s compliance with any of the covenants in this Indenture (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate). The Trustee shall have no obligation to monitor IRSA PC’s compliance with its obligations under this Section 3.11.

Section 3.12. Other Information.

For so long as any of the Securities remain Outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, IRSA PC will, during any period in which it is neither subject to Section 13 or 15(d) under the Exchange Act nor exempt from reporting under the Exchange Act pursuant to Rule 12g3-2(b) thereunder, make available to any Holder or any owner of a beneficial interest in a Global Security, to a prospective purchaser of a Security or beneficial interest therein who is a Qualified Institutional Buyer, or to the Trustee for delivery, at IRSA PC’s expense, to such Holder or beneficial owner or prospective purchaser, as the case may be, in connection with any sale thereof, in each case at the Holder’s written request to IRSA PC, the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act.

Section 3.13. Notice of Default.

IRSA PC will notify the Trustee in writing promptly after IRSA PC becomes aware of the occurrence and continuance of any Event of Default. Each notice pursuant to this Section 3.13 shall state that it constitutes a “notice of default” hereunder and shall be accompanied by an Officer’s Certificate signed by the Chief Executive Officer or the Chief Financial Officer of IRSA PC setting forth the details of such Event of Default and stating what action IRSA PC proposes to take with respect thereto.

Section 3.14. Further Actions.

 IRSA PC will use its reasonable efforts to take any action, satisfy any condition or do anything (including the obtaining or effecting of any necessary consent, approval, authorization, exemption, filing, license, order, recording or registration) at any time required in accordance with the applicable laws and regulations to be taken, fulfilled or done in order to enable it lawfully to enter into, exercise its rights and perform and comply with its payment obligations under the Securities and this Indenture, as the case may be, to ensure that those obligations are legally binding and enforceable and to make the Securities and this Indenture admissible in evidence in the courts of Argentina.

Section 3.15. Suspension of Covenants.

During any period of time that the Securities of any Series achieve Investment Grade Ratings from at least two of the three Rating Agencies and no Default or Event of Default has occurred and is continuing (the occurrence of the events described in the foregoing clauses (i) and (ii) being collectively referred to as a “Covenant Suspension Event”), with respect to the Securities of such Series, IRSA PC will not be subject to the provisions described under Sections 3.16, 3.17; and 3.19 (collectively, the “Suspended Covenants”).

In the event that IRSA PC and its Subsidiaries are not subject to the Suspended Covenants for any period of time as a result of the foregoing, and on any subsequent date (the “Reversion Date”) one of the Rating Agencies withdraws its Investment Grade Rating or downgrades its rating assigned to the Securities of the affected Series below an Investment Grade Rating, and as a result of such withdrawal or downgrade, the Securities of such Series no longer have Investment Grade Ratings from at least two (2) of the three (3) Rating Agencies, then with respect to such Series of Securities IRSA PC will thereafter again be subject to the Suspended Covenants. The period of time between the Suspension Date and the Reversion Date is referred to as the “Suspension Period.” Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of Default under any Series of Securities will be deemed to have occurred as a result of a failure to comply with the Suspended Covenants during the Suspension Period (or upon termination of the Suspension Period or after that time based solely on events that occurred during the Suspension Period).

On the Reversion Date, all Indebtedness incurred during the Suspension Period will be classified to have been Incurred pursuant to the first paragraph of Section 3.16 (to the extent such Indebtedness would be permitted to be incurred thereunder as of the

31

Reversion Date and after giving effect to Indebtedness incurred prior to the Suspension Period and outstanding on the Reversion Date). To the extent such Indebtedness would not be so permitted to be Incurred pursuant to the first paragraph of Section 3.16 such Indebtedness will be deemed to have been outstanding on the Issue Date, so that it is classified as permitted under clause (f) of the second paragraph of Section 3.16.

IRSA PC shall promptly notify the Trustee in writing of the occurrence of any Covenant Suspension Event pursuant to this Section 3.15. In the absence of such notice, the Trustee shall assume that the Suspended Covenants are in full force and effect. IRSA PC shall promptly notify the Trustee in writing upon the reinstatement of the Suspended Covenants after a Reversion Date. In the absence of such notice, the Trustee shall assume that the Suspension Period continues to remain in effect. The Trustee will have no obligation to (i) independently determine or verify if any of the events described in this Section 3.15 have occurred, (ii) make any determination regarding the impact of actions taken during the Suspension Period on IRSA PC’ s or any of its Subsidiary’s future compliance with their covenants or (iii) notify the Holders of the commencement of the Suspension Period or the Reversion Date.

Section 3.16. Limitation on Incurrence of Additional Indebtedness.

IRSA PC will not Incur any Indebtedness, including Acquired Indebtedness, except that IRSA PC may Incur Indebtedness, including Acquired Indebtedness, if, at the time of and immediately after giving pro forma effect to the Incurrence thereof and the application of the proceeds therefrom, the Consolidated Interest Coverage Ratio of IRSA PC is greater than 2.00 to 1, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence.

(1) Notwithstanding clause (1) above, IRSA PC may Incur the following Indebtedness (“Permitted Indebtedness”):

(a) Indebtedness in respect of the Securities, including Additional Securities;

(b) Guarantees of obligations permitted to be Incurred in accordance with this covenant;

(c) Hedging Transactions entered into in the ordinary course of business and not for speculative purposes, including, without limitation, Hedging Transactions in respect of the Securities;

(d) Indebtedness Incurred for the purpose of financing all or any part of the cost of constructing, acquiring or improving any asset used or useful in a Permitted Business of IRSA PC or a Subsidiary in an aggregate outstanding principal amount not to exceed 10% of total Consolidated Tangible Assets of IRSA PC, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence;

(e) Indebtedness between or among IRSA PC, on the one hand, and any of its Subsidiaries, on the other hand;

(f) Indebtedness outstanding on the Issue Date;

(g) Indebtedness in respect of any obligations under workers’ compensation claims, severance payment obligations, payment obligations in connection with health or other types of social security benefits, unemployment or other insurance or self-insurance obligations, reclamation, statutory obligations, bankers’ acceptances, performance, surety or similar bonds, letters of credit or completion or performance guarantees and factoring and other financing of payables or receivables or other similar obligations in the ordinary course of business;

(h) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within five Business Days of its Incurrence;

(i) Refinancing Indebtedness in respect of:

(1) Indebtedness (other than Indebtedness owed to any Subsidiary of IRSA PC) Incurred pursuant to clause (1) of this Section 3.16 (it being understood that no Indebtedness outstanding on the Issue Date is Incurred pursuant to such clause (1)), or

32

(2) Indebtedness Incurred pursuant to clauses (2)(a), (d), (f), (i) or (j) of this Section 3.16;

(j) Acquired Indebtedness if the Consolidated Interest Coverage Ratio for IRSA PC’s most recently completed four fiscal quarters determined immediately after giving effect to such Incurrence and the related acquisition (including through a merger, consolidation or otherwise) is equal to or greater than the Consolidated Interest Coverage Ratio of IRSA PC determined immediately before giving effect to such Incurrence and the related acquisition;

(k) Indebtedness arising from agreements providing for indemnification, adjustment of purchase price or similar obligations, in each case, Incurred in connection with the disposition of any business, assets or Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Subsidiary for the purpose of financing such acquisition; provided that the maximum aggregate liability in respect of all such Indebtedness will at no time exceed the gross proceeds actually received by IRSA PC in connection with such disposition;

(l) Indebtedness to the extent the net proceeds thereof are promptly used to redeem the Securities in full or deposited to defease or discharge the Securities, in each case in accordance with this Indenture;

(m) Deeply Subordinated Indebtedness;

(n) Indebtedness represented by working capital Indebtedness in an aggregate outstanding principal amount not to exceed US$40,000,000 (or the equivalent thereof in another currency at the time of determination); and

(o) Additional Indebtedness in an aggregate outstanding principal amount not to exceed 15.0% of consolidated total assets of IRSA PC, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence.

(3) For purposes of determining compliance with, and the outstanding principal amount of, any particular Indebtedness Incurred pursuant to and in compliance with this covenant, the amount of Indebtedness issued at a price that is less than the principal amount thereof will be equal to the amount of the liability in respect thereof determined in accordance with IFRS. Accrual of interest, the accretion or amortization of original issue discount, the payment of regularly scheduled interest in the form of additional Indebtedness of the same instrument with the same terms will not be deemed to be an Incurrence of Indebtedness for purposes of this Section 3.16; provided that any such outstanding additional Indebtedness paid in respect of Indebtedness Incurred pursuant to any provision of clause (2) of this Section 3.16 will be counted as Indebtedness outstanding thereunder for purposes of any future Incurrence under such provision. For purposes of determining compliance with this Section 3.16, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in clauses (2)(a) through (2)(o) of this Section 3.16, or is entitled to be incurred pursuant to paragraph (1) of this Section 3.16, IRSA PC will be permitted to classify such item of Indebtedness on the date of its incurrence and may, in its sole discretion, divide and classify an item of Indebtedness in one or more of the types of Indebtedness and may later re-divide or reclassify all or a portion of such item of Indebtedness in any manner that complies with this covenant. Notwithstanding any other provision of this Section 3.16, the maximum amount of Indebtedness that IRSA PC may incur pursuant to this Section 3.16 shall not be deemed to be exceeded as a result solely of fluctuations in exchange rates or currency values.

33

Section 3.17. Limitation on Restricted Payments.

IRSA PC shall not take any of the following actions (each, a “Restricted Payment”): declare or pay any dividend or make any distribution, whether in cash or in kind, on or in respect of shares of Capital Stock of IRSA PC to holders of such Capital Stock (other than dividends or distributions payable in Capital Stock of IRSA PC); or

(a) purchase, redeem or otherwise acquire or retire for value any shares of Capital Stock of IRSA PC (other than any such shares held by IRSA PC or a Subsidiary);

unless, at the time of the Restricted Payment and immediately after giving effect thereto:

(i) no Event of Default shall have occurred and be continuing;

(ii) IRSA PC is able to Incur at least US$1.00 of additional Indebtedness pursuant to clause (1) of Section 3.16; and

(iii) The aggregate amount of such Restricted Payment and all other Restricted Payments made subsequent to the Issue Date (excluding those permitted to be made pursuant to the further provisions below) exceeds the sum of:

(A) 100% of cumulative EBITDA for the period (treated as one accounting period) from July 1, 2015 through the last day of the last fiscal quarter ended prior to the date of such Restricted Payment minus an amount equal to 150% of cumulative Consolidated Interest Expense for such period; and

(B) any reductions of Indebtedness of IRSA PC or its Subsidiaries after the Issue Date (other than Indebtedness of Subsidiaries owed to IRSA PC) by conversion or exchange to Capital Stock of IRSA PC or its Subsidiaries.

Notwithstanding the preceding paragraph, this Section 3.17 will not prohibit:

(1) the payment of any dividend or distribution or redemption within sixty (60) days after the date of declaration of such dividend or distribution or notice of redemption if such payment would have been permitted on the date of such declaration or notice;

(2) the purchase, redemption or other acquisition or retirement of any Capital Stock of IRSA PC made in exchange for or out of the proceeds of the issuance or sale of Capital Stock of IRSA PC;

(3) the purchase, redemption or other acquisition or retirement of any Capital Stock or other securities exercisable or convertible into Capital Stock from any current or former employees, officers, directors or consultants of IRSA PC or any of its Subsidiaries or their authorized representatives upon the death, disability or termination of employment or directorship of such employees, officers or directors, or the termination of retention of any such consultants; the purchase, redemption or other acquisition or retirement of any Capital Stock deemed to occur upon the exercise of stock options, warrants or similar rights if such Capital Stock represents a portion of the exercise price of those stock options, warrants or similar rights;

(4) the purchase, redemption or other acquisition or retirement of any fractional shares arising out of stock dividends, splits or combinations or business combinations;

(5) payments or distributions to dissenting stockholders of Capital Stock of IRSA PC or its Subsidiaries pursuant to applicable law in connection with a consolidation, merger or similar transaction that complies with the provisions of this Indenture;

(6) Restricted Payments in an amount not to exceed the sum of the aggregate net proceeds and the Fair Market Value of any property or other assets received by IRSA PC or any Subsidiary after the Issue Date from (i) contributions of capital or the issuance or sale of Capital Stock or (ii) the issuance of any Indebtedness of IRSA PC or any of its Subsidiaries that has been converted into or exchanged for Capital Stock after the Issue Date; or

(7) Restricted Payments in an aggregate amount taken together with all other Restricted Payments made subsequent to the Issue Date pursuant to this clause (8) not to exceed the greater of US$50.0 million (or the equivalent in other currencies) and 10% of the consolidated total assets of IRSA PC as of the last date of the most recent fiscal quarter of IRSA PC.

34

Section 3.18. Limitation on Liens. IRSA PC will not Incur any Liens (except for Permitted Liens) against or upon any of its properties or assets, whether owned on the Issue Date or acquired after the Issue Date, or any proceeds therefrom, to secure any Indebtedness, without expressly providing that the Securities are secured equally and ratably with the obligations so secured for so long as such obligations are so secured.

Section 3.19. Limitation on Transactions with Affiliates. IRSA PC will not enter into any transaction or series of related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each an “Affiliate Transaction”), unless the terms of such Affiliate Transaction are not materially less favorable than those that could reasonably be expected to be obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of IRSA PC; provided that the foregoing limitation will not apply to:

(a) Affiliate Transactions with or among IRSA PC and any of its Subsidiaries;

(b) fees and compensation paid to, and any indemnity provided on behalf of, officers, directors, employees, consultants or agents of IRSA PC or any Subsidiary as determined in good faith by IRSA PC’s Board of Directors; Affiliate Transactions undertaken pursuant to any contractual obligations or rights in existence on the Issue Date and any amendment, modification or replacement of such agreement (so long as such amendment, modification or replacement is not materially more disadvantageous to the Holders of the Securities, taken as a whole, than the original agreement as in effect on the Issue Date);

(c) loans and advances to officers, directors and employees of IRSA PC or any Subsidiary in the ordinary course of business in an aggregate outstanding principal amount not exceeding US$1,000,000 (or the equivalent in other currencies); and

(d) transactions in which IRSA PC delivers to the Trustee a written opinion from an Independent Financial Advisor stating that such transaction or series of transactions is fair to IRSA PC from a financial point of view or stating that that the terms thereof are not materially less favorable to IRSA PC than those that could reasonably be expected to have been obtained by IRSA PC in a comparable transaction at the time of the Affiliate Transaction in arm’s length dealings with a Person who is not an Affiliate.

Section 3.20. Conduct of Business.

IRSA PC and its Subsidiaries, taken as a whole, will remain primarily engaged in Permitted Businesses.

Section 3.21. Change of Control.

 Upon the occurrence of a Change of Control Triggering Event, each Holder will have the right to require that IRSA PC purchase all or a portion (in integral multiples of US$1,000 or in the minimum denominations of any Specified Currency) of the Holder’s Securities at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon to (and excluding) the date of purchase (the “Change of Control Payment”).

(b) Within thirty (30) days following the date upon which the Change of Control Triggering Event occurred, IRSA PC must deliver a notice to each Holder, with a copy to the Trustee, offering to purchase the Securities of each Series as described above (a “Change of Control Offer”). The Change of Control Offer shall state, among other things, the purchase date, which must be no earlier than thirty (30) days nor later than sixty (60) days from the date the notice is given, other than as may be required by law (the “Change of Control Payment Date”).

(c) On the Change of Control Payment Date, IRSA PC will, to the extent lawful:

(1) accept for payment all Securities or portions thereof properly tendered and not withdrawn pursuant to the Change of Control Offer;

(2) deposit with the Paying Agent funds in an amount equal to the Change of Control Payment in respect of all Securities or portions thereof so tendered and not withdrawn; and deliver or cause to be delivered to the Trustee the Securities so accepted together with an Officer’s Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by IRSA PC.

(d) If only a portion of a Security is purchased pursuant to a Change of Control Offer, a new Security in a principal amount equal to the portion thereof not purchased will be issued in the name of the Holder thereof upon cancellation of the original Security (or appropriate adjustments to the amount and beneficial interests in a Global Note will be made, as appropriate). In all cases Holders of the Securities shall be treated on an equal basis.

35

(e) IRSA PC will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by IRSA PC and purchases all Securities properly tendered and not withdrawn under the Change of Control Offer, or (2) notice of redemption has been given pursuant to this Indenture as described under Section 10.1 unless and until there is a default in payment of the applicable redemption price.

(f) In the event that Holders of not less than 95% of the aggregate principal amount of the Outstanding Securities of a Series accept a Change of Control Offer and IRSA PC or a third party purchases all of the Securities held by such Holders, IRSA PC will have the right, on not less than thirty (30) nor more than sixty (60) days’ prior notice, given not more than thirty (30) days following the Change of Control Payment Date described above, to redeem all of the Securities of that Series that remain Outstanding following such purchase at a purchase price equal to the Change of Control Payment plus, to the extent not included in the Change of Control Payment, accrued and unpaid interest, if any, on the Securities that remain Outstanding, to the date of repurchase (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date).

(g) Holders, by acceptance of the Securities, are deemed to acknowledge that other existing and future Indebtedness of IRSA PC may contain prohibitions on the occurrence of events that would constitute a Change of Control or require that Indebtedness to be repurchased upon a Change of Control. Moreover, the exercise by the Holders of their right to require IRSA PC to repurchase the Securities upon a Change of Control Triggering Event may cause a default under such Indebtedness even if the Change of Control itself does not.

Holders, by acceptance of the Securities, are deemed to acknowledge that if a Change of Control Triggering Event occurs, there can be no assurance that IRSA PC will have available funds sufficient to make the Change of Control Payment for all the Securities that might be delivered by Holders seeking to accept the Change of Control Offer.

(h) Holders will not be entitled to require IRSA PC to purchase their Securities in the event of a takeover, recapitalization, leveraged buyout or similar transaction which does not result in a Change of Control Triggering Event.

(i) IRSA PC will comply with the requirements of Rule 14e-l under the Exchange Act and any other applicable securities laws and regulations to the extent such laws and regulations are applicable in connection with a Change of Control Offer. To the extent that the provisions of any securities laws or regulations conflict with this Section 3.21, IRSA PC will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Indenture by doing so.

(j) Holders by acceptance of the Securities, are deemed to acknowledge that the definition of Change of Control includes a phrase relating to the direct or indirect sale, lease, transfer, conveyance or other disposition of “all or substantially all” of the properties or assets of IRSA PC and its Subsidiaries taken as a whole. Although there is a limited body of case law interpreting the phrase “substantially all,” there is no precise established definition of the phrase under applicable law. Accordingly, the ability of a Holder to require IRSA PC to repurchase its Securities as a result of a sale, lease, transfer, conveyance or other disposition of less than all of the assets of IRSA PC and its Subsidiaries taken as a whole to another Person or group may be uncertain.

ARTICLE IV

DEFAULTS AND REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

Section 4.1. Events of Default.

Unless otherwise specified in the terms of a Series of Securities established pursuant to Section 2.3, as long as any of the Securities of a Series are Outstanding, if any of the following events (each an “Event of Default”) shall have occurred and be continuing with respect to the Securities of such Series:

(a) IRSA PC shall fail to pay any principal or interest (or Additional Amounts, if any) on the Securities of such Series on the date when it becomes due and payable in accordance with the terms thereof, and such failure shall continue for a period of seven days (in the case of principal) or fourteen (14) days (in the case of interest or Additional Amounts, if any);

(b) IRSA PC shall fail duly to perform or observe any other covenant or obligation applicable to such Series under this Indenture or such Securities, and such failure shall continue for a period of ninety (90) days after written notice to that effect is received by IRSA PC or by IRSA PC and the Trustee from the Holders of at least 25% in aggregate principal amount of the Outstanding Securities of such Series specifying such failure and requiring it to be remedied and stating that such notice constitutes a “notice of default” under this Indenture;

36

(c) IRSA PC shall fail to pay when due at the final scheduled maturity thereof principal of any of its Indebtedness in an aggregate past due principal amount of at least US$40,000,000 (or the equivalent thereof in another currency at the time of determination) and such failure shall continue after the grace period, if any, applicable thereto, or any other event of default shall occur under any agreement or instrument relating to any such Indebtedness in an aggregate principal amount of at least US$40,000,000 (or the equivalent thereof in another currency at the time of determination), and in each case such other event of default shall result in the acceleration of the final scheduled maturity thereof in an aggregate past due principal amount of at least US$40,000,000 (or the equivalent thereof at the time of determination);

(d) a court having jurisdiction enters a final decree or order for (1) relief in respect of IRSA PC in an involuntary case under the Argentine Law No. 24,522, as amended (the “Bankruptcy Law”), or any other applicable bankruptcy, insolvency or other similar law now or hereafter in effect or (2) the appointment under any applicable bankruptcy, insolvency or other similar law of an administrator, receiver or trustee for IRSA PC for all or substantially all of the property of IRSA PC and, in each case, such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or

(e) IRSA PC (1) commences a voluntary case under the Bankruptcy Law or any other applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or (2) consents to the appointment under any applicable bankruptcy, insolvency or other similar law of or taking possession by an administrator, receiver, trustee or intervenor for IRSA PC for all or substantially all of the properties of IRSA PC; then the Trustee shall, upon the request of the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities of such Series, by written notice to IRSA PC, declare all the Securities of such Series then Outstanding to be immediately due and payable. If an Event of Default set forth in Section 4.1(c) has occurred and is continuing with respect to the Securities of any Series, such Event of Default shall be automatically rescinded and annulled once the event of default or payment default triggering such Event of Default pursuant to Section 4.1(c) shall be remedied or cured by IRSA PC or waived by the holders of the relevant Indebtedness. No such rescission and annulment shall affect any subsequent Event of Default or impair any right consequent thereto. Upon any such declaration of acceleration, the principal of the Securities so accelerated and the interest accrued thereon and all other amounts payable with respect to such Securities shall become and be immediately due and payable. If the Event of Default or Events of Default giving rise to any such declaration of acceleration are cured following such declaration, such declaration may be rescinded by the Holders of such Securities in the manner set forth in this Indenture.

At any time after a declaration of acceleration has been made with respect to the Securities of any Series, the Holders of a majority in aggregate principal amount of the Outstanding Securities of such Series, by written notice to IRSA PC and the Trustee, may rescind and annul such declaration and its consequences if the rescission would not conflict with any judgment or decree; IRSA PC has paid or deposited with the Trustee a sum sufficient to pay all overdue installments of interest on the Securities of such Series, the principal of (and premium, if any, on) any Securities of such Series which has become due otherwise than by such declaration of acceleration, and interest thereon at the rate or rates prescribed therefore by the terms of the Securities of such Series, to the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates prescribed therefore by the terms of the Securities of such Series, to the extent that payment of such interest is lawful and all sums paid or advanced by the Trustee and the Agents hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, the Agents and their respective agents and counsel; and all Events of Default with respect to such Series of Securities, other than the nonpayment of the principal, premium or interest on the Securities of such Series that has become due solely because of such acceleration, have been cured or waived. No such rescission shall affect any subsequent Event of Default or impair any right consequent thereto.

37

Section 4.2. Collection of Indebtedness by Trustee.

IRSA PC covenants that in case there shall be a default in the payment of any installment of interest (including Additional Amounts) on any of the Securities of any Series when such interest (including Additional Amounts) shall have become due and payable, and such default shall have continued for a period of fourteen (14) days or in case there shall be a default in the payment of all or any part of the principal of any of the Securities of any Series when the same shall have become due and payable, whether upon maturity or by declaration or otherwise, and such default continues for a period of seven (7) days; then upon demand by the Trustee, IRSA PC will pay to the Trustee for the benefit of the Holders of any such Security the whole amount that then shall have become due and payable on any such Security for principal or interest (including Additional Amounts), as the case may be (with interest to the date of such payment upon the overdue principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest at the rate or rates of interest specified in any such Security); and in addition thereto, IRSA PC will pay such further amount as shall be sufficient to cover the reasonable costs and expenses of collection, including reasonable compensation to, and reimbursement of the expenses of, the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and any expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee, as provided in Section 5.6, except as a result of its negligence or willful misconduct.

In case IRSA PC shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment or final decree against IRSA PC or other obligor upon the Securities of such Series and collect in the manner provided by law out of the property of IRSA PC or other obligor upon such Securities, wherever situated, the moneys adjudged or decreed to be payable.

All rights of action and of asserting claims under this Indenture or under the Securities of any Series may be enforced by the Trustee without the possession of any of the Securities of such Series or the production thereof on any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities of the Series in respect of which such action was taken.

In any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee shall be held to represent all the Holders of the Securities of the Series in respect to which such action was taken, and it shall not be necessary to make any Holders of such Securities parties to any such proceedings.

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of any Series or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 4.3. Application of Proceeds.

Any moneys collected by the Trustee pursuant to this Article IV in respect of a Series of Securities shall be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (including Additional Amounts), upon presentation of the Securities of such Series in respect of which moneys have been collected and stamping (or otherwise noting) thereon the payment, or issuing Securities in reduced principal amounts in exchange for the presented Securities if only partially paid, or upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due to the Trustee and/or any predecessor Trustee under Section 5.6, except for any such amounts that result from its own negligence or willful misconduct;

SECOND: To the payment of all amounts due to the Agents under Section 1.2;

THIRD: In case the principal of the Securities in respect of which moneys have been collected shall not have become and be then due and payable, to the payment of overdue interest (including Additional Amounts) on such Securities in default in the order of the maturity of the installments of such interest (including Additional Amounts), with interest upon the overdue installments of interest (including Additional Amounts) at the rate or rates of interest specified in such Securities, such payments to be made ratably to the Persons entitled thereto, without discrimination or preference;

38

FOURTH: In case the principal of the Securities of such Series in respect of which moneys have been collected shall have become and shall be then due and payable, to the payment of the whole amount then owing and unpaid upon all such Securities for principal and interest (including Additional Amounts), with interest upon the overdue principal, and upon overdue installments of interest (including Additional Amounts), at the rate or rates of interest specified in such Securities; and in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon such Securities of such Series, then to the payment of such principal and interest (including Additional Amounts), without preference or priority of principal over interest (including Additional Amounts), or of interest over principal, or of any installment of interest over any other installment of interest, or of such Security over any other such Security, ratably to the aggregate of such principal and accrued and unpaid interest (including Additional Amounts); and

FIFTH: To the payment of the remainder, if any, to IRSA PC or any other Person lawfully entitled thereto of which the Trustee has received written notice.

Section 4.4. Suits for Enforcement.

In case an Event of Default has occurred, has not been waived and is continuing, the Trustee may in its discretion (but is not required to) proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

Section 4.5. Restoration of Rights on Abandonment of Proceedings.

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case IRSA PC, the Holders and the Trustee shall, subject to any determination in such proceeding and to applicable law, be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of IRSA PC, the Trustee and the Securityholders shall continue as though no such proceedings had been taken.

Section 4.6. Limitations on Suits by Securityholders.

Except as provided in Section 4.7, no Holder of any Security of any Series shall have any right by virtue or by availing itself of any provision of this Indenture or of the Securities of such Series, to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy hereunder, unless (i) such Holder previously shall have given to the Trustee written notice of default and of the continuance thereof with respect to the Securities of such Series, (ii) Holders of not less than 25% in aggregate principal amount of the Securities of such Series then Outstanding shall have made written request upon the Trustee to institute such action or proceedings in its own name as trustee hereunder and shall have offered to the Trustee such indemnity and/or security satisfactory to the Trustee as it may require against the costs, expenses and liabilities to be incurred therein or thereby, (iii) the Trustee for ninety (90) days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceeding and (iv) no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 4.9; it being understood and intended that no Holder of Securities of such Series shall have any right in any manner whatever by virtue of any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Securities of such Series, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities of such Series.

Section 4.7. Unconditional Right of Securityholders to Institute Certain Suits.

Notwithstanding any other provision in this Indenture and any provision of any Security, the right of any Holder of any Security to receive payment of the principal of and interest on such Security (including Additional Amounts) on or after the respective due dates expressed in such Security, or to institute suit, including a summary judicial proceeding (acción ejecutiva individual) in Argentina pursuant to Article 29 of the Negotiable Obligations Law, for the enforcement of any such payment on or after such respective due dates, shall not be impaired or adversely affected without the consent of such Holder.

39

Section 4.8. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.

 Except as provided in Section 4.6, no right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

No delay or omission of the Trustee or of any Securityholder to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to Section 4.6, every power and remedy given by this Indenture or by law to the Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

Section 4.9. Control by Securityholders.

Subject to Section 5.1(e), the Holders of a majority in aggregate principal amount of the Securities of any Series at the time Outstanding shall have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Securities of such Series by this Indenture; provided that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture and shall not expose the Trustee to personal liability and shall not be unduly prejudicial to the interests of Holders of the Securities of such Series not joining in the giving of said direction, it being understood that (subject to Section 5.1) the Trustee shall have no duty to ascertain whether or not such actions or forbearance are unduly prejudicial to such Holders.

Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction or directions by Securityholders.

Waiver of Past Defaults.

At a meeting duly convened at which a quorum is present as provided in Section 6.6, the Holders of a majority in aggregate principal amount of the Outstanding Securities of a Series represented and voting at such meeting may, on behalf of the Holders of all the Securities of such Series, waive any past or present default or Event of Default with respect to such Series and its consequences, except a default in respect of a covenant or provision hereof that cannot be modified or amended without the consent of each Holder of Securities of such Series affected as provided in Section 7.2. In the case of any such waiver, IRSA PC, the Trustee and the Holders of the Securities of such Series shall be restored to their former positions and rights hereunder, respectively.

Upon any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred with respect to such Series, and any Event of Default arising therefrom shall be deemed to have been cured, and not to have occurred with respect to such Series for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon or affect any other Series of Securities.

Section 4.10. Payments after a Default.

Upon the occurrence of an Event of Default with respect to the Securities of a Series and the subsequent declaration by the Trustee or the relevant Holders that the principal amount of all the Securities of such Series is due and payable immediately, the Trustee may by notice in writing: to IRSA PC and any Paying Agent, require each Paying Agent to deliver all Securities of such Series and all moneys, documents and records held by it with respect to the Securities of such Series to the Trustee or as the Trustee otherwise directs in such notice; and require any Paying Agent to act as agent of the Trustee under this Indenture and the Securities of such Series, and thereafter to hold all Securities of such Series and all moneys, documents and records held by it in respect to such Securities of such Series to the order of the Trustee; provided that the Trustee shall not thereby become obligated, or have any obligation, to compensate or indemnify such Paying Agent or to reimburse such Paying Agent for any expense.

Section 4.11. Notice of Events of Default.

If an Event of Default occurs and is continuing with respect to the Securities of any Series of which the Trustee is deemed to have knowledge in accordance with Section 5.2, the Trustee shall give to Holders of such Series of Securities a notice of the Event of Default in accordance with Section 12.4 within ninety (90) days after the Trustee is deemed to have knowledge unless such Event of Default shall have been cured or waived. Except in the case of a default in payment on any Security, the Trustee may withhold the notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders.

40

CONCERNING THE TRUSTEE

Section 4.12. Duties and Responsibilities of the Trustee.

Except during the continuance of an Event of Default,

(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

(2) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

(f) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent man would exercise under the circumstances in the conduct of his own affairs.

(g) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligence or willful misconduct, except that

(1) this Subsection shall not be construed to limit the effect of Section 5.1(a);

(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in aggregate principal amount of the Outstanding Securities of any Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and

(4) none of the provisions contained in this Indenture shall require the Trustee to expend, advance or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

(h) Whether or not herein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee is subject to this Article V.

(i) The Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture unless such Securityholders shall have offered to the Trustee security and/or indemnity satisfactory to the Trustee against the costs, expenses and liabilities that might be incurred thereby.

Section 4.13. Certain Rights of the Trustee.

(a) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution of the Board of Directors, Officer’s Certificate or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties.

41

(b) Any request, direction, order or demand of IRSA PC mentioned herein shall be sufficiently evidenced by a Company Order (unless other evidence in respect thereof is herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the secretary of the Board of Directors of IRSA PC.

(c) The Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights or powers conferred upon it by this Indenture.

(d) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, guarantee, note, coupon, security, or other paper or document unless requested in writing so to do by the Holders of not less than a majority in aggregate principal amount of the Securities of a Series then Outstanding; provided that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not satisfactorily assured to the Trustee, the Trustee may require from the Securityholders indemnity satisfactory to the Trustee against such costs, expenses or liabilities as a condition to proceeding; the reasonable costs, expenses and liabilities of every such investigation shall be paid by IRSA PC or, if paid by the Trustee or any predecessor trustee, shall be repaid by IRSA PC promptly upon demand.

The Trustee may consult with counsel at IRSA PC’s expense and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

(e) The Trustee may execute any of its powers or perform any of its duties hereunder either directly or by or through agents or attorneys not regularly in its employ and the Trustee shall not be responsible for any negligence or willful misconduct on the part of any such agent or attorney appointed with due care by it hereunder.

(f) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by the Trustee in each of its capacities hereunder.

(g) Anything in this Indenture to the contrary notwithstanding, in no event shall the Trustee or any Agent be liable under or in connection with this Indenture and the Securities for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever, including but not limited to lost profits, whether or not foreseeable, even if the Trustee or such Agent has been advised of the possibility thereof and regardless of the form of action in which such damages are sought.

(h) The Trustee shall not be deemed to have notice of any Event of Default with respect to the Securities unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.

(i) The Trustee may at any time request, and IRSA PC shall, deliver an Officer's Certificate setting forth the specimen signatures and the names of individuals and/or titles of Officers and Authorized Persons authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any Person authorized to sign an Officer's Certificate, including any Person specified as so authorized in any such certificate previously delivered and not superseded.

(j) Notwithstanding any provision herein to the contrary, in no event shall the Trustee be liable for any failure or delay in the performance of its obligations under this Indenture because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services contemplated by this Indenture, inability to obtain material, equipment, or communications or computer facilities, or the failure of equipment or interruption of communications or computer facilities, and other causes beyond its control whether or not of the same class or kind as specifically named above.

42

(k) Neither the Trustee nor any Agent shall have any liability or responsibility with respect to, or obligation or duty to monitor, determine or inquire as to IRSA PC’s compliance with any covenant under this Indenture (other than the covenant to make payment on the Securities).

(l) Any resolutions of the Board of Directors of IRSA PC required to be delivered to the Trustee pursuant to this Indenture or any Series of Securities may be in Spanish and need not be accompanied by an English translation and the Trustee shall have not duty or obligation to review such resolutions or otherwise inquire as to or confirm the content thereof, and the Trustee may conclusively rely upon the receipt of any such Board Resolutions as to the requisite authority for the action relating to purpose for which they were delivered.

(m) To the extent that the consent or authorization of the CNV or any other Argentine governmental or regulatory authority or compliance with the Negotiable Obligations Law is required for IRSA PC's, the Trustee's or any Agent's performance under the Securities or this Indenture, none of the Trustee or any Agent shall have any duty or obligation to determine whether such approval, consent or authorization or compliance is required or any duty or obligation to obtain any consent, approval or authorization or ensure such compliance. IRSA PC shall notify the Trustee and the Agents, as applicable, in writing if the approval, consent or authorization of the CNV or such other Argentine governmental or regulatory authority or compliance with the Negotiable Obligations Law, as applicable, is required for IRSA PC's or the Trustee's performance under the Securities or this Indenture and, if applicable, whether or not such consent has been obtained by IRSA PC.

Section 4.14. Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof.

The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of IRSA PC, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Indenture, or any offering materials (including the Offering Memorandum and any Pricing Supplement) or of the Securities. The Trustee shall not be accountable for the use or application by IRSA PC of any of the Securities or of the proceeds thereof.

Section 4.15. Trustee and Agents May Hold Securities; Collections, etc.

The Trustee or any agent of IRSA PC or the Trustee, in its individual or any other capacity, may become the owner or pledgee of the Securities with the same rights it would have if it were not the Trustee or such agent and may otherwise deal with IRSA PC and receive, collect, hold and retain collections from IRSA PC with the same rights it would have if it were not the Trustee or such agent. If the Trustee has or shall acquire a conflicting interest, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by this Indenture. The Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more than one Series.

Section 4.16. Moneys Held By Trustee.

Subject to the provisions of Section 9.4, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. None of the Trustee, any Agent or any other agent of IRSA PC or the Trustee shall be under any liability for interest on or investment of any moneys received by it hereunder.

Section 4.17. Compensation and Indemnification of Trustee and Its Prior Claim.

IRSA PC covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such amount as shall have been agreed in writing by IRSA PC and the Trustee (such compensation not to be limited by any provision of law in regards to the compensation of a trustee of an express trust) and reimbursement of its reasonable, documented and invoiced out-of-pocket expenses, disbursements and advances (including the reasonable fees and expenses, disbursements and advances of its agents and counsel) incurred by it in connection with the services rendered by it hereunder.

43

IRSA PC also covenants to indemnify and defend the Trustee for, and to hold it harmless against, any loss, damage, claim, cost liability or expense (including, without limitation, the reasonable compensation and the expenses and disbursements of its counsel) arising out of or in connection with the acceptance or administration of this Indenture or the trusts hereunder and the performance of its duties and the exercise of its rights hereunder, including the reasonable costs and expenses of defending itself against or investigating any claim of liability in the premises, except to the extent such loss, liability or expense is due to its own negligence or willful misconduct. The obligations of IRSA PC under this Section 5.6 to compensate and indemnify the Trustee and each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall survive payment of the Securities, the resignation or removal of such Trustee and/or the satisfaction and discharge of this Indenture. As security for the performance of IRSA PC’s obligations under this Indenture, the Trustee shall have a lien prior to the Securities on all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (and premium, if any) or interest on particular Securities.

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 4.1(d) or (e) occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any bankruptcy law.

Section 4.18. Right of Trustee to Rely on Officer’s Certificate, etc.

Whenever in the administration of the trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof shall be herein specifically prescribed) may, in the absence of bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee, and such certificate, in the absence of bad faith on the part of the Trustee, shall be full warranty to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.

Section 4.19. Persons Eligible for Appointment as Trustee.

The Trustee for each Series of the Securities issued hereunder shall at all times be a Person that has a combined capital and surplus of at least US$50,000,000, is authorized under the laws of the jurisdiction in which it is doing business to exercise corporate trust powers, and is subject to supervision or examination by federal, state, territorial or other governmental authority. If such Person publishes reports of condition at least annually, pursuant to the law or to the requirements of such federal, state, territorial or other governmental authority, then for the purposes of this Section 5.8, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

Section 4.20. Resignation and Removal; Appointment of Successor Trustee.

Subject to Section 5.9(d), the Trustee, or any trustee or trustees hereafter appointed, may at any time resign with respect to the Securities of any Series by giving thirty (30) days’ written notice of resignation to IRSA PC. If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 5.8, it shall resign immediately in the manner and with the effect hereinafter specified in this Section 5.9. Upon receiving such notice of resignation, IRSA PC shall promptly appoint a successor trustee or trustees with respect to the Securities of such Series by written instrument in duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee or trustees. If no successor trustee shall have been so appointed with respect to the Securities of such Series and have accepted appointment within thirty (30) days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee, or the Holders of at least 10% in aggregate principal amount of the Outstanding Securities of such Series may petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and as it may prescribe, appoint a successor trustee.

(a) In case at any time any of the following shall occur:

(i) the Trustee shall cease to be eligible in accordance with the provisions of Section 5.8 and shall fail to resign after written request therefor by or on behalf of IRSA PC or by any Securityholder; or

44

(ii) the Trustee shall become incapable of acting with respect to the Securities of any Series, or shall be adjudged a bankrupt or insolvent, or a receiver or liquidator of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; then, in any such case, (i) IRSA PC may, by a resolution of the Board of Directors and written notice to the Trustee, remove the Trustee with respect to the Securities of such Series and appoint a successor trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or (ii) the Holders of at least 10% in aggregate principal amount of the Outstanding Securities of such Series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee with respect to such Securities. Such court may thereupon, after such notice, if any, as it may deem proper and as it may prescribe, remove the Trustee and appoint a successor trustee.

(b) The Holders of a majority in aggregate principal amount of the Securities of any Series at the time Outstanding may at any time remove the Trustee with respect to such Securities and appoint a successor trustee by delivering to the Trustee so removed, to the successor trustee so appointed and to IRSA PC the evidence provided for in Section 6.1 of the action in that regard taken by such Securityholders.

(c) Any resignation or removal of the Trustee with respect to any Securities and any appointment of a successor trustee pursuant to any of the provisions of this Section 5.9 shall not become effective prior to acceptance of appointment by the successor trustee as provided in Section 5.10.

Section 4.21. Acceptance of Appointment by Successor Trustee.

Any successor trustee appointed as provided in Section 5.9 shall execute and deliver to IRSA PC and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee with respect to the Securities of such Series shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations with respect to the Securities of such Series of its predecessor hereunder, with like effect as if originally named as trustee for the Securities of such Series hereunder; but, nevertheless, on the written request of IRSA PC or of the successor trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section 9.4, pay over to the successor trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee all such rights, powers, duties and obligations. Upon request of any such successor trustee, IRSA PC shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a prior lien upon all property or funds held or collected by such trustee to secure any amounts then due it pursuant to the provisions of Section 5.6.

If a successor trustee is appointed with respect to the Securities of one or more (but not all) Series, IRSA PC, the predecessor Trustee and each successor trustee with respect to the Securities of any applicable Series shall execute and deliver an indenture supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect to the Securities of any Series as to which the predecessor Trustee is not withdrawing shall continue to be vested in the predecessor Trustee, and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such trustees co-trustees of the same trust and that each such trustee shall be trustee of a trust or trusts under separate indentures.

Upon acceptance of appointment by any successor trustee as provided in this Section 5.10, IRSA PC shall give, at its expense, notice thereof to the Securityholders as specified in Section 12.4 and the CNV, which notice shall include the name of the successor trustee and the address of its Corporate Trust Office. If IRSA PC fails to give such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given at the expense of IRSA PC.

No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article V, to the extent operative.

Section 4.22. Merger, Conversion, Consolidation or Succession to Business of Trustee.

Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to substantially all the corporate trust business of the Trustee, including this transaction, shall be the successor of the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided that such Person shall be eligible under the provisions of Section 5.8.

45

In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee and deliver such Securities so authenticated as if such successor to the Trustee had itself authenticated such Securities; and, in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificate shall have the full force as provided in the Securities or in this Indenture as the certificate of the Trustee shall have; provided that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

Section 4.23. Representative of the Trustee in Argentina.

As long as it is required by Argentine law or by the CNV, the Trustee will have a representative in Argentina for the sole purpose of receiving notices from the CNV and/or Holders. Banco Santander Río S.A. will initially act as the Representative of the Trustee in Argentina for such purposes. The Representative of the Trustee in Argentina accepts its appointment in relation to the Securities and shall perform all matters expressed to be performed by it in, and otherwise comply with, the provisions of Section 5.13.

Application to Agents and to the Representative of the Trustee in Argentina.

The Representative of the Trustee in Argentina need perform only those duties that are specifically set forth in this Section 5.13, and such duties shall be determined solely by the express provisions of this Section 5.13, or as Representative of the Trustee in Argentina may agree in writing from time to time with the Trustee and IRSA PC. No implied covenants or obligations shall be read into this Section 5.13, against the Representative of the Trustee in Argentina. The Representative of the Trustee in Argentina shall have only the rights and powers stated below. It is further acknowledged that the Representative of the Trustee in Argentina is not and shall not be considered as if it were the Trustee’s general attorney.

The duties of the Representative of the Trustee in Argentina up to the date hereof are solely to: receive from Holders, IRSA PC, the Agents and any governmental or regulatory authority or entity, all letters, claims, requests, memoranda or any other document required by Argentine law or by the CNV Rules to be sent to, and received by, the Trustee, within three (3) Business Days of receipt, notify and/or deliver to the Trustee by facsimile all such letters, claims, requests, memoranda or documents, and following the express instructions of the Trustee, respond to or answer such letters, claims, requests, memoranda or documents.

The Representative of the Trustee in Argentina shall not be liable for any action it takes or omits to take in good faith, which it believes to be authorized or within its discretion, rights or powers.

IRSA PC shall pay to the Representative of the Trustee in Argentina from time to time, and the Representative of the Trustee in Argentina shall be entitled to, such compensation for its acceptance of this Section 5.13 and its services hereunder. The fees of the Representative of the Trustee in Argentina shall be in an amount agreed between IRSA PC and the Representative of the Trustee in Argentina. IRSA PC shall reimburse the Representative of the Trustee in Argentina promptly upon request for all reasonable disbursements, advances and expenses incurred or made by or on behalf of it in addition to the compensation for its services. Such expenses may include the reasonable compensation, disbursements and expenses of the Representative of the Trustee in Argentina’s agents, counsel and other persons not regularly in its employ.

IRSA PC agrees to indemnify the Representative of the Trustee in Argentina for, and to hold it harmless against, any loss, liability or expense, including, without limitation, the fees and expenses of legal counsel, reasonably incurred without negligence, bad faith or willful misconduct on its part, arising out of or in connection with the acceptance of its commitments hereunder, the performance of its duties hereunder and/or the exercise of its rights hereunder, including, without limitation, the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

46

Section 4.24. Application to Agents.

IRSA PC hereby agrees that the provisions of Sections 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.12 shall apply to the Agents and to the Representative of the Trustee in Argentina as if each of the Agents and the Representative of the Trustee in Argentina were expressly named therein.

ARTICLE V

CONCERNING THE SECURITYHOLDERS

Section 5.1. Evidence of Action Taken by Securityholders.

Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by a specified percentage in principal amount of the Securityholders of any Series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such specified percentage of such Securityholders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments is or are delivered to the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and IRSA PC, if made in the manner provided in this Article VI.

Section 5.2. Proof of Execution of Instruments and of Holding of Securities; Record Date.

The execution of any instrument by a Securityholder or his agent or proxy may be proved in accordance with Section 6.6 and such reasonable applicable rules and regulations or in such manner as shall be satisfactory to the Trustee. The holding of Securities shall be proved by the Register maintained pursuant to Section 2.10. IRSA PC, by or pursuant to a resolution of its Board of Directors, may set a record date for purposes of determining the identity of Holders of Securities entitled to vote or consent to any action referred to in Section 6.1, which record date may be set by IRSA PC at any time or from time to time. Any such record date shall be notified to the Trustee in writing not more than sixty (60) days nor less than five (5) days prior to the proposed date of such vote or consent. Notwithstanding any other provisions hereof, only Holders of Securities of record on such record date shall be entitled to so vote or give such consent or revoke such vote or consent. The Trustee shall provide to IRSA PC at its request a written notice with the details of the Holders of record of each relevant record date.

Section 5.3. Holders to Be Treated as Owners.

Subject to the rights of the relevant Holders as of a Regular Record Date to receive payments to which they are entitled on the relevant Interest Payment Date and Section 2.9, IRSA PC, the Trustee, the Agents and any agent of IRSA PC, the Trustee or the Agents may deem and treat any Person in whose name any Security shall be registered upon the Register as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of and, subject to the provisions of this Indenture, interest on such Security (including Additional Amounts) and for all other purposes; and none of IRSA PC, the Trustee, any Agent and any agent of IRSA PC, the Trustee or any Agent shall be affected by any notice to the contrary. All such payments so made to any such Person, or upon its order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Security. Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall prevent IRSA PC, the Trustee, the Agents or any agent of IRSA PC, the Trustee or any Agent, from giving effect to any written certification, proxy or other authorization furnished by any Depositary, as Holder of such Global Security, or impair, as between such Depositary and owners of beneficial interests in such Global Security, the operation of customary practices governing the exercise of the rights of such Depositary (or its nominee), as Holder of such Global Security.

Section 5.4. Securities Owned by IRSA PC Deemed Not Outstanding.

In determining whether quorum has been established in accordance with Section 6.6 or whether the Holders of the requisite aggregate principal amount of Outstanding Securities of a Series have concurred in any request, consent or waiver under this Indenture, Securities of such Series that are owned by IRSA PC or any of its Subsidiaries or any other obligor on the Securities of such Series with respect to which such determination is being made shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such request, consent or waiver, only Securities of such Series with respect to which a Responsible Officer of the Trustee has received written notice that such Securities are so owned shall be so disregarded. Securities of a Series so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not IRSA PC or any of its Subsidiaries or any other obligor upon such Securities. In case of a dispute as to such right, the advice of counsel shall be full protection in respect of any decision made by the Trustee in accordance with such advice. Upon request of the Trustee, IRSA PC shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all Securities, if any, known by IRSA PC to be owned or held by or for the account of any of the above-described Persons, and the Trustee shall be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not listed therein are Outstanding for the purpose of any such determination.

47

Section 5.5. Right of Revocation of Action Taken.

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 6.1, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Securities of any Series or of the percentage of votes cast, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided in this Article VI, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in aggregate principal amount of the Securities or of the percentage of votes cast, as the case may be, specified in this Indenture in connection with such action shall be conclusively binding upon IRSA PC, the Trustee and the Holders of all the Securities affected by such action.

Section 5.6. Securityholders’ Meetings.

Each of IRSA PC (through the Board of Directors or the Supervisory Committee of IRSA PC) and the Trustee may at any time call a meeting of the Holders of the Securities of any Series for the purpose of entering into a supplemental indenture as provided in Section 7.2 or waiving a past default as provided in Section 4.10. In addition, a meeting of the Holders of Securities of a Series may be called by the Trustee or IRSA PC (through the Board of Directors or the Supervisory Committee of IRSA PC) at its discretion or upon the request of the Holders of at least 5% in aggregate principal amount of the Outstanding Securities of such Series, to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by the Securities of such Series to be made, given or taken by the Holders of the Securities of such Series, including the modification of any of the terms and conditions of such Securities of such Series. In the case of a request to call a meeting by Holders, IRSA PC shall notify the Trustee in writing of such request. In the event the Board of Directors or the Supervisory Committee of IRSA PC shall fail to call a meeting requested by the Trustee or the Holders as provided in the immediately preceding sentence, the meeting may be called by the CNV or by a competent court at the request of the Holders of the Securities. In any case, meetings shall be held at such time and at such place as IRSA PC shall determine; provided that the meetings will be held in the City of Buenos Aires in accordance with the Negotiable Obligations Law. Any resolution duly passed at a meeting held in accordance with this Section 6.6 of the Holders of Securities of a Series will be binding on all Holders of the Securities of such Series (whether or not they were present at the meeting at which such resolution was passed). If a meeting is being held pursuant to the written request of Holders, the agenda for the meeting shall be that set forth in the request made by such Holders and such meeting shall be convened within forty (40) days from the date such written request is received by the Trustee or IRSA PC, as the case may be. Any such meeting held pursuant to written request of the Holders will be held simultaneously in the City of Buenos Aires and New York City by means of telecommunications which permit the participants to hear and speak to each other. Notice of any meeting of Holders of Securities of a Series (which shall include the date, place and time of the meeting, the agenda therefor and the requirements to attend) shall be given by IRSA PC not less than ten (10) days nor more than thirty (30) days prior to the date fixed for the meeting in accordance with Section 12.4 and in the Official Gazette of Argentina (Boletín Oficial), in one other newspaper of wide circulation in Argentina, and also in the manner provided under Section 12.4 and any publication thereof shall be for five (5) consecutive Business Days in each place of publication. Meetings of Holders of the Securities of a Series may be simultaneously convened for two (2) dates, in case the initial meeting were to be adjourned for lack of quorum. However, for meetings that include in the agenda items requiring unanimous approval by the Holders, notice of a new meeting resulting from adjournment of the initial meeting for lack of quorum shall be given not less than eight (8) days prior to the date fixed for such new meeting and shall be published for three (3) Business Days in the Official Gazette of Argentina, a newspaper of wide circulation in Argentina and the Merval’s Informative Bulleting (as long as the Securities are listed and traded on the Merval). To be entitled to vote at any meeting of Securityholders a Person shall be a

48

Holder of one or more Securities as of the relevant record date determined pursuant to Section 6.2 or a Person appointed by an instrument in writing as proxy by such Holder. The only Persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of IRSA PC and its counsel and the Trustee and its counsel. With respect to all matters not contemplated in this Indenture, meetings of Securityholders will be held in accordance with Argentine Companies Law.

(a) The quorum at any meeting of Holders of the Securities of a Series called to adopt a resolution will be Persons holding or representing a majority in aggregate principal amount of the Outstanding Securities of such Series and at any reconvened adjourned meetings will be the Persons present at such reconvened adjourned meeting. At a meeting or a reconvened adjourned meeting duly convened and at which a quorum is present, any resolution to modify or amend, or to waive compliance with, any provision of the Securities of a Series (other than items requiring consent of each Holder of a Security of such Series) will be validly passed and decided if approved by the Persons entitled to vote a majority in aggregate principal amount of the Securities of such Series then Outstanding represented and voting at the meeting. Any instrument given by or on behalf of any Holder of a Security in connection with any consent to any such modification, amendment or waiver will be irrevocable once given and will be conclusive and binding on all subsequent Holders of such Security. Any modifications, amendments or waivers to this Indenture or to the Securities of a Series will be conclusive and binding upon all Holders of Securities of such Series whether or not they have given such consent or were present at any meeting, and on all Securities of such Series; provided that no such modifications, amendments or waivers, without consent of each Holder of a Security of such Series at the time Outstanding directly and adversely affected thereby, shall modify, amend or waive any of the items included in clauses (a) through (g) of Section 7.2.

(b) Any Securityholder who has executed an instrument in writing appointing a Person as proxy shall be deemed to be present for the purposes of determining a quorum and be deemed to have voted; provided that such Securityholder shall be considered as present or voting only with respect to the matters covered by such instrument in writing. Any resolution passed or decision taken at any meeting of Securityholders of a Series duly held in accordance with this Section 6.6 shall be binding on all the Securityholders of such Series whether or not present or represented at the meeting.

(c) The appointment of any proxy shall be proved by having the signature of the Person executing the proxy guaranteed or certified by any notary public, bank or trust company or judicially certified in the manner provided under Argentine law. The following persons may not act as proxies: members of the Board of Directors or of the Supervisory Committee of IRSA PC and managers and other employees of IRSA PC. The holding of Securities shall be proved by the Register maintained in accordance with Section 2.10; provided that the holding of a beneficial interest in a DTC Global Security shall be proved by a certificate or certificates of DTC and the holding of a beneficial interest in an Euroclear/Clearstream Global Security shall be proved by a certificate or certificates of Euroclear or Clearstream, as the case may be, or the Common Depositary therefor.

(d) The Trustee, acting as a representative of the Holders, may appoint a representative to act as the chairman of each meeting of the Holders of the Securities of a Series. If the Trustee elects not to designate a representative to act as chairman of a meeting, the chairman of the meeting shall be: (i) a member of the Supervisory Committee designated by IRSA PC; (ii) should IRSA PC fail to designate a member of the Supervisory Committee, a representative designated by the controlling government agency; or (iii) should the controlling government agency fail to designate a representative, a Person appointed by a competent court. Notwithstanding the foregoing, if the meeting is called by the CNV or by a competent court at the request of the Holders of the Securities of a Series, the CNV or the competent court shall designate a Person to act as chairman. The secretary of the meeting shall be elected by vote of the Holders of a majority in aggregate principal amount of the Securities of the relevant Series represented at the meeting. At any meeting of Securityholders of a Series, each Securityholder of such Series or proxy shall be entitled to cast one vote for each U.S. dollar or, if the Securities are denominated in a Specified Currency other than U.S. dollars, one vote for each unit of such Specified Currency, of the Securities held by such Holder or represented by such proxy. Notwithstanding the foregoing, at any meeting of Holders of more than one Series of Securities, a Holder of a Security which does not specify regular payments of interest, including without limitation, Original Issue Discount Securities, shall be entitled to one vote at any such meeting for each U.S. dollar or, if the Securities are denominated in a Specified Currency other than U.S. dollars, one vote for each unit of such Specified Currency of the redemption value of such Security calculated by the Exchange Rate Agent as of the date of such meeting or, in the case of written consents or notices, on such dates as IRSA PC shall designate for such purpose. No vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote except as a Holder or proxy. Any meeting of Holders duly called at which a quorum is present may be adjourned from time to time, and the meeting may be held as so adjourned without further notice.

49

(e) The vote upon any resolution submitted to any meeting of Securityholders shall be by written ballot on which shall be subscribed the signatures of the Securityholders or proxies and on which shall be inscribed the serial number or numbers of the Securities held or represented by them. A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be attached to said record the ballots of the votes. The record shall be signed and verified by the chairman and secretary of the meeting and one of the duplicates shall be delivered to IRSA PC and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.

(f) If and for so long as the Securities of any Series are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, the Merval or any other securities exchange, and for negotiation in the MAE, meetings of Holders of such Securities and notices thereof shall comply with the applicable rules of the Luxembourg Stock Exchange, the Merval, the MAE or such other securities exchange, as applicable.

(g) For avoidance of doubt, the Trustee shall not be required or otherwise obligated to attend any meeting of the Holders of the Securities of any Series; provided however that in the event IRSA PC or the Holders notify the Trustee that a meeting of the Holders of the Securities will be held, upon request of IRSA PC, the Trustee shall deliver written notice to the requesting party indicating whether or not the Trustee shall attend such meeting.

Section 5.7. Preservation of Information; Communications to Holders.

  The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee and the names and addresses of Holders received by the Trustee in its capacity as Co- Registrar. The Trustee may destroy any list furnished to it upon receipt of a new list so furnished.

(a) Every Holder of Securities, by receiving and holding the same, agrees with IRSA PC and the Trustee that neither IRSA PC nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the provisions of this Indenture.

Section 5.8. Reports by IRSA PC.

IRSA PC shall file with the Trustee, and transmit to Holders, such information, documents and other reports, and such summaries thereof, if any, as may be required pursuant to this Indenture.

Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt thereof shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including compliance by IRSA PC or its Subsidiaries with any of their respective covenants hereunder.

ARTICLE VI

SUPPLEMENTAL INDENTURES

Section 6.1. Supplemental Indentures Without Consent of Securityholders.

IRSA PC, when authorized by a resolution of the Board of Directors of IRSA PC, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for one or more of the following purposes:

(a) adding to the covenants of IRSA PC such further covenants, restrictions, conditions or provisions as are for the benefit of the Holders of the Securities of any Series;

(b) surrendering any right or power conferred upon IRSA PC hereunder; securing the Securities of any Series pursuant to the requirements thereof or otherwise;

50

(c) evidencing the succession of another Person to IRSA PC and the assumption by any such successor of the covenants and obligations of IRSA PC in the Securities and in this Indenture pursuant to Article VIII;

(d) establishing the form or terms of Securities of any new Series as permitted by Sections 2.1 and 2.3;

(e) complying with any requirement of the CNV, the Merval and/or the MAE in order to effect and maintain the qualification of this Indenture under Argentine law with such institution;

(f) making any modification to conform this Indenture to the “Description of the Notes” in the Offering Memorandum and/or the applicable Pricing Supplement, as the case may be;

(g) making any modification which is of a minor or technical nature or correcting or supplementing any ambiguous, inconsistent or defective provision contained in this Indenture or in the Securities of any Series; or

(h) making any other modification or granting any waiver or authorization of any breach or proposed breach hereunder of any of the terms and conditions of the Securities of any Series or any other provisions of this Indenture applicable to such Series in any manner which does not adversely affect the interests of the Holders of Securities of such Series in any material respect.

The Trustee is hereby authorized to join with IRSA PC in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but neither the Trustee nor any Agent shall be obligated to enter into any such supplemental indenture that adversely affects the Trustee’s own or such Agent’s own rights, duties or immunities under this Indenture or otherwise; provided, however, that no supplemental indenture shall amend, modify or supplement the rights, duties or immunities of any Agent unless executed by such Agent.

Any supplemental indenture authorized by the provisions of this Section 7.1 may be executed without the consent of the Holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 7.2.

Promptly after the execution by IRSA PC and the Trustee of any supplemental indenture pursuant to the provisions of this Section 7.1, IRSA PC, at its expense, shall give notice thereof to the Holders of the relevant Series as specified in Section 12.4, and shall give notice to the CNV, the Merval and the MAE, as applicable, setting forth in general terms the substance of such supplemental indenture. Any failure of IRSA PC to give notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

Supplemental Indentures With Consent of Securityholders.

Without limiting the provisions of Section 7.1, IRSA PC, when authorized by a resolution of the Board of Directors of IRSA PC, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture, the Securities of any Series or of modifying in any manner the rights of the Holders of the Securities of any Series, with the affirmative vote, at a meeting of Holders of such Series or an adjourned meeting duly convened at which a quorum is present as provided in Section 6.6, of a majority in aggregate principal amount of the Securities of such Series then Outstanding represented and voting at such meeting; provided that no such supplemental indenture shall, without the consent of the Holders of all of the Outstanding Securities of a Series directly and adversely affected thereby, extend the scheduled due date for the payment of principal of, premium, if any, or any installment of interest on any such Security, reduce the principal amount of, the stated rate of interest on or the premium payable upon redemption of any such Security, reduce the obligation of IRSA PC to pay Additional Amounts on any such Security, shorten the period during which IRSA PC is not permitted to redeem any such Security, change the Specified Currency in which or the required places at which any such Security or the premium or interest thereon is payable, reduce the percentage of the aggregate principal amount of such Securities necessary to modify, amend or supplement this Indenture or such Securities, or for waiver of compliance with certain provisions thereof or for waiver of certain defaults or reduce the percentage of the aggregate principal amount of Outstanding Securities of a Series required for the adoption of a resolution or the quorum required at any meeting of Holders of such Securities at which a resolution is adopted.

51

Upon the request of IRSA PC and upon the filing with the Trustee of evidence of the consent of Securityholders as aforesaid and other documents, if any, required by Section 6.1 and upon the Trustee’s receipt of the documents required by Section 7.4, the Trustee shall join with IRSA PC in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture; provided, however, that no supplemental indenture shall amend, modify or supplement the rights, duties or immunities of any Agent unless executed by such Agent.

It shall not be necessary for the consent of the Securityholders under this Section 7.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

Promptly after the execution by IRSA PC and the Trustee of any supplemental indenture pursuant to the provisions of this Section 7.2, IRSA PC, at its expense, shall give notice thereof to the Holders of the relevant Series as provided in Section 12.4, and to the CNV, setting forth in general terms the substance of such supplemental indenture. If IRSA PC shall fail to give such notice to the Holders within fifteen (15) days after the execution of such supplemental indenture and a Responsible Officer of the Trustee shall have notice of such failure, the Trustee shall give notice to the Holders as provided in Section 12.4 at the expense of IRSA PC. Any failure of IRSA PC or the Trustee to give such notice, or defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

Section 6.2. Effect of Supplemental Indenture.

Upon the execution of any supplemental indenture pursuant to the provisions hereof and upon receipt of any necessary approval of the CNV, if applicable, this Indenture and the Securities of the applicable Series shall be and shall be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture with respect to the applicable Series of Securities of the Trustee, IRSA PC and the Holders of Securities of such Series shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

Section 6.3. Documents to Be Given to the Trustee.

In connection with any amendment or supplemental indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively relying upon, an Officer’s Certificate and an Opinion of Counsel and receipt of resolutions of the Board of Directors as conclusive evidence that any supplemental indenture executed pursuant to this Article VII has been duly authorized by IRSA PC, complies with the applicable provisions of this Indenture and is authorized or permitted by the terms of this Indenture.

Section 6.4. Notation on Securities in Respect of Supplemental Indentures.

Securities authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article VII may and shall if required by IRSA PC, bear a notation in form and manner approved by IRSA PC as to any matter provided for by such supplemental indenture or as to any action taken at any such meeting. If IRSA PC shall so determine, new Securities modified so as to conform to any modification of this Indenture contained in any such supplemental indenture may be prepared by IRSA PC at its expense, authenticated by the Trustee and delivered in exchange for the Securities then Outstanding.

Section 6.5. Conformity with Negotiable Obligations Law.

Every supplemental indenture executed pursuant to this Article VII shall conform to the requirements of the Negotiable Obligations Law, the Capital Markets Law and the rules of the CNV, as then in effect.

52

ARTICLE VII

MERGER, CONSOLIDATION, SALE OR CONVEYANCE

Section 7.1. IRSA PC May Consolidate, etc., on Certain Terms.

IRSA PC covenants that it will not, in a single transaction or series of related transactions, consolidate with or merge into, any Person (whether or not IRSA PC is the surviving or continuing Person), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of IRSA PC’s properties and assets (determined on a consolidated basis for IRSA PC and its Subsidiaries), to any Person unless either:

(1) IRSA PC shall be the surviving or continuing corporation; or

(2) the Person (if other than IRSA PC) formed by such consolidation or into which IRSA PC is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties and assets of IRSA PC and of IRSA PC’s Subsidiaries (the “Surviving Entity”):

(A) shall be a corporation, organized and validly existing under the laws of a Qualified Merger Jurisdiction or any political subdivision thereof, and

(B) shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on all of the Securities and the performance and observance of every covenant of the Securities and this Indenture on the part of IRSA PC to be performed or observed.

For purposes of this Section 8.1, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of related transactions) of all or substantially all of the properties or assets of one or more Subsidiaries of IRSA PC, the Capital Stock of which constitutes all or substantially all of the properties and assets of IRSA PC (determined on a consolidated basis for IRSA PC and its Subsidiaries), will be deemed to be the transfer of all or substantially all of the properties and assets of IRSA PC.

Section 7.2. Surviving Entity Substituted.

Upon any such consolidation, merger, sale, transfer, lease or other conveyance or disposal in which IRSA PC is not the continuing entity, such Surviving Entity formed by such consolidation or into which IRSA PC is merged or to which such conveyance, lease or transfer is made, shall succeed to and be substituted for, and may exercise every right and power of IRSA PC under this Indenture and the Securities with the same effect as if such Surviving Entity had been named as such.

In case of any such consolidation, merger, sale, transfer, lease or conveyance, such changes in phraseology and form (but not in substance) may be made in this Indenture and/or the Securities thereafter to be issued as may be appropriate.

In the event of any such sale or conveyance (other than a conveyance by way of lease) and assumption by the Surviving Entity, IRSA PC shall be discharged from all obligations and covenants under this Indenture and the Securities to be performed by IRSA PC and may be liquidated and dissolved.

No Surviving Entity shall have the right to redeem any Securities Outstanding unless IRSA PC would have been entitled to redeem such Securities pursuant to this

Indenture in the absence of any such merger, consolidation, sale, transfer, lease or conveyance permitted under Section 8.1.

By purchasing Securities, Holders expressly waive their right to objection contemplated in Section 83, 88 and related provisions of Argentine Law No. 19,550 and Section 4 of Argentine Law No. 11,867, in the event that the merger or consolidation or the sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all the properties and assets of IRSA PC (determined on a consolidated basis) is made under the terms and conditions permitted by this Article VIII.

Section 7.3. Documents to Trustee.

The Trustee may request, and IRSA PC shall provide, an Opinion of Counsel stating that any such consolidation, merger, sale, transfer, lease or other conveyance or disposition, and any such liquidation or dissolution, complies with the applicable provisions of this Indenture, the Securities and applicable law and an Opinion of Counsel and an Officer’s Certificate stating that all conditions precedent relating to such transaction and the execution of such supplemental indenture, if any, have been met in all material respects, and the Trustee may conclusively rely on such Opinion of Counsel and Officer’s Certificate as conclusive evidence of the matters described therein.

53

ARTICLE VIII

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

Section 8.1. Satisfaction and Discharge of Indenture.

If at any time IRSA PC shall have paid or caused to be paid the principal of and interest (including Additional Amounts) on all the Securities Outstanding hereunder (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.11) as and when the same shall have become due and payable, or IRSA PC shall have delivered to the Trustee for cancellation all Securities theretofore authenticated (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.11 or all the Securities not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one (1) year or are to be called for redemption within one (1) year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and IRSA PC shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds the entire amount in cash (other than moneys repaid by the Trustee or any Paying Agent to IRSA PC in accordance with Section 9.3 or 9.4) sufficient to pay at maturity or upon redemption all Securities (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.11) not theretofore delivered to the Trustee for cancellation, including principal and interest (including Additional Amounts) due or to become due on or prior to such date of maturity or redemption, as the case may be, and if, in any such case, IRSA PC shall also pay or cause to be paid all other sums payable hereunder by IRSA PC with respect to the Securities, then this Indenture shall cease to be of further effect (except as to (i) rights of registration of transfer, exchange and replacement of Securities, and IRSA PC’s right of optional redemption, if any, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of Holders to receive payments of principal thereof and interest thereon (including Additional Amounts), and remaining rights of the Holders to receive mandatory sinking fund payments, if any, (iv) the rights, protections, indemnities, obligations and immunities of the Trustee, each of the Agents and the Representative of the Trustee in Argentina hereunder and the obligations of IRSA PC with respect thereto (v) the rights of the Securityholders as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them), and the Trustee, on written demand of IRSA PC accompanied by an Officer’s Certificate and an Opinion of Counsel and at the cost and expense of IRSA PC, shall execute instruments acknowledging such satisfaction of and discharging this Indenture; provided that the rights of Holders of the Securities to receive amounts in respect of principal of and interest on the Securities held by them shall not be delayed longer than required by then-applicable mandatory rules or policies of any securities exchange upon which the Securities are listed. IRSA PC agrees to reimburse the Trustee for any costs or expenses thereafter reasonably incurred (including reasonable fees and expenses of counsel) and to compensate the Trustee for any services thereafter rendered by the Trustee in accordance with the terms of this Indenture or the Securities. Notwithstanding the satisfaction and discharge of this Indenture, the obligations of IRSA PC to the Trustee, the Agents and the Representative of the Trustee in Argentina under Sections 1.2, 3.4(b), 5.6, 5.13, 5.14 and 11.5 shall survive.

Section 8.2. Application by Trustee of Funds Deposited for Payment of Securities.

 Subject to Section 9.4, all moneys deposited with the Trustee pursuant to Section 9.1 shall be held in trust and applied by it to the payment, either directly or through any Paying Agent (including IRSA PC acting as its own paying agent), to the Holders of the particular Securities for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon as principal and interest (including Additional Amounts); but such money need not be segregated from other funds except to the extent required by law and the Trustee shall have no liability for interest thereon or the investment thereof.

Section 8.3. Repayment of Moneys Held by Paying Agent.

 In connection with the satisfaction and discharge of this Indenture with respect to the Securities, all moneys then held by any Paying Agent under the provisions of this Indenture with respect to the Securities shall, upon written demand of IRSA PC, be repaid to it or paid to the Trustee and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.

54

Section 8.4. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.

Any moneys deposited with or paid to the Trustee or any Paying Agent for the payment of the principal of or interest on any Security (including Additional Amounts) and not applied but remaining unclaimed for two (2) years after the date upon which such principal or interest (including Additional Amounts) or other amounts shall have become due and payable, shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to IRSA PC, upon written request, by the Trustee or such Paying Agent, and the Holder of such Security shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to IRSA PC for any payment that such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such moneys shall thereupon cease.

ARTICLE IX

REDEMPTION AND REPURCHASE OF SECURITIES

Section 9.1. Notice of Redemption; Partial Redemptions.

Notice of redemption to the Holders of Securities to be redeemed as a whole or in part at the option of IRSA PC pursuant to Section 10.4 or otherwise pursuant to the terms of such Securities established as contemplated by Section 2.3 shall be given to Holders as specified in Section 12.4 and to the CNV. Each notice of redemption at the option of IRSA PC shall specify the provision pursuant to which the redemption is being made, the aggregate principal amount of each Security held by such Holders to be redeemed, the date fixed for redemption (the “Redemption Date”), the redemption price, the place or places of payment, the CUSIP, ISIN, Common Code or other identifying codes, if any, that no representation is made as to the correctness or accuracy of the CUSIP, ISIN, Common Code or other identifying codes listed on such notice or printed on such Securities, that payment will be made upon presentation and surrender of such Securities, that interest accrued to the Redemption Date and any Additional Amounts will be paid as specified in such notice, that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue (unless IRSA PC defaults in the payment of any amounts due and owing under such Securities) and any other matter required to be specified therein by Argentine law or regulation. In case any Security is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the Redemption Date, upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion thereof will be issued.

(a) IRSA PC shall deliver to the Trustee any notice of redemption specifying the information set forth above at least five (5) days prior to the date on which such notice of redemption will be given to the Holders or such later date as the Trustee shall agree. The notice of redemption of Securities to be redeemed at the option of IRSA PC shall be given to Holders by IRSA PC or, at IRSA PC’s written request at least two (2) Business Days prior to the date notice of redemption is deliverable to the Holders of the relevant Securities, which such request shall include all of the information required to be set forth in the notice of redemption, by the Trustee in the name and at the expense of IRSA PC at least five (5) days but not more than sixty (60) days before the Redemption Date (unless otherwise specified pursuant to the terms of such Securities established as contemplated by Section 2.3). Such notice shall be irrevocable.

(b) If less than all the Securities of a Series are to be redeemed at the option of IRSA PC, the particular Securities of such Series to be redeemed shall be selected by the Trustee from the Outstanding Securities of such Series not previously called for redemption individually pro rata, by lot or in such other manner as the Trustee deems appropriate (and in the case of Securities represented by a Global Security, in accordance with the provisions of the relevant Depositary) not more than sixty (60) days prior to the Redemption Date and a list of the Securities called for redemption will be notified to IRSA PC and the Holders in accordance with Section 12.4 not less than three (3) days prior to the Redemption Date. Upon any partial redemption of Securities of such Series, the Trustee shall (i) in the case of Securities represented by a DTC Global Security, cancel the existing DTC Global Security or Securities and authenticate and hold as custodian for DTC a new DTC Global Security or Securities, as applicable, to reflect the aggregate principal amount of Securities of such Series Outstanding after such redemption and (ii) in the case of Certificated Securities, to the extent required, authenticate and deliver in exchange therefor one or more Securities of such Series, of any authorized denomination as requested by the Holder thereof, in an aggregate principal amount equal to the unredeemed portion of the principal of such partially redeemed Security. In the case of Securities represented by an Euroclear/Clearstream Global Security, the Common Depositary shall cancel the existing Euroclear/Clearstream Global Security or Securities, and the Trustee shall authenticate and the Common Depositary shall hold as custodian for Euroclear and Clearstream a new Euroclear/Clearstream Global Security or Securities, as applicable, to reflect the aggregate principal amount of Securities of such Series Outstanding after such redemption. Securities may be redeemed in part in multiples equal to the minimum authorized denomination for Securities or any multiple thereof. The Trustee shall promptly notify IRSA PC in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security that has been or is to be redeemed.

55

Section 9.2. Payment of Securities Called for Redemption.

On or before 10:00 AM (New York City time) one (1) Business Day prior to the redemption date specified in the notice of redemption given as provided in this Section 10.2, IRSA PC will deposit with the Trustee (or, if IRSA PC is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 3.4) an amount of money sufficient to redeem on the redemption date all the Securities so called for redemption at the appropriate redemption price, together with accrued and unpaid interest, if any, to, but excluding the Redemption Date and any Additional Amounts. If notice of redemption has been given to the Holders as provided in Section 10.1, the Securities or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the Redemption Date and any Additional Amounts, and on and after said Redemption Date (unless IRSA PC shall default in the payment of such Securities at the redemption price, together with interest accrued to said date and any Additional Amounts) interest on the Securities or portions of Securities so called for redemption shall cease to accrue and, except as provided in Section 9.4, such Securities shall cease from and after the date fixed for redemption to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except the right to receive the redemption price thereof and unpaid interest accrued to the Redemption Date and any Additional Amounts. On presentation and surrender, pursuant to the terms of

 such Securities, of such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be paid and redeemed by IRSA PC at the applicable redemption price, together with interest accrued thereon to the Redemption Date and any Additional Amounts; provided that any payment of interest becoming due on the Redemption Date and any Additional Amounts shall be payable to the Holders of such Securities registered as such on the relevant Regular Record Date subject to the terms and provisions of Section 2.4.

From and after the redemption date, if moneys for the redemption of the Securities called for redemption shall have been made available as provided herein for redemption on the redemption date, such Securities shall cease to bear interest, and the only right of the Holders of such Securities shall be to receive payment of the redemption price and all unpaid interest accrued to the Redemption Date and any Additional Amounts.

Notwithstanding any provision to the contrary in this Section 10.2, if any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the Redemption Date at the rate specified in the Security.

Upon presentation of any Security redeemed in part only, IRSA PC shall execute and the Trustee shall authenticate and deliver to or on the order of the Holder thereof, at the expense of IRSA PC, a new Security or Securities, of authorized denominations, in principal amount equal to the unredeemed portion of the Security so presented.

Section 9.3. Exclusion of Certain Securities from Eligibility for Selection for Redemption.

Securities shall be excluded from eligibility for selection for redemption if they are identified by registration and certificate number in an Officer’s Certificate delivered to the Trustee at least ten (10) days prior to the date on which notice of redemption will be given as being owned of record and beneficially by, and not pledged or hypothecated by either IRSA PC or a Person specifically identified in such written statement as directly or indirectly controlled by IRSA PC.

56

Section 9.4. Redemption at the Option of IRSA PC for Taxation Reasons.

The Securities of any Series may be redeemed at the option of IRSA PC in whole, but not in part, at any time, on giving not less than five (5) nor more than sixty (60) days’ written notice (which shall be irrevocable) to the Holders, the Trustee and, if applicable, the CNV as required by Section 10.1, at the principal amount thereof (or, in the case of Original Issue Discount Securities, at the Amortized Face Amount thereof), together with any accrued but unpaid interest and any Additional Amounts to the Redemption Date, if, as a result of any change in, or amendment to, the laws (or any regulations or rulings issued thereunder) of Argentina or any political subdivision of or any taxing authority in Argentina or any change in the application, administration or official interpretation of such laws, regulations or rulings, including without limitation the holding of a court of competent jurisdiction, IRSA PC has or will become obligated to pay Additional Amounts (a “Change in Tax Law”) on or in respect of such Securities, which change or amendment becomes effective on or after the date of issuance of the Securities of such Series, and IRSA PC determines in good faith that such obligation cannot be avoided by IRSA PC taking reasonable measures available to it; provided that reasonable measures shall not include changing IRSA PC’s jurisdiction of organization or the location of its principal executive office or incurring any cost or expense that IRSA PC deems in good faith to be material; and provided further that no such notice of redemption shall be given earlier than ninety (90) days prior to the earliest date on which IRSA PC would be obliged to pay such Additional Amounts were a payment in respect of the Securities then due.

(a) Prior to the distribution of any notice of redemption pursuant to this Section 10.4, IRSA PC shall deliver to the Trustee (i) an Officer’s Certificate stating that IRSA PC has or will become obligated to pay Additional Amounts as a result of a Change in Tax Law and that such obligation cannot be avoided by IRSA PC taking reasonable measures available to it and (ii) an opinion of independent legal counsel qualified under the laws of Argentina to the effect that IRSA PC would become obligated to pay Additional Amounts as a result of a Change in Tax Law. The Trustee shall be entitled to accept such certificate and Opinion of Counsel as sufficient evidence of the satisfaction of the conditions to redemption by IRSA PC pursuant to this Section 10.4, in which event it will be conclusive and binding on the Holders of such Series of Securities.

ARTICLE X

DEFEASANCE

Section 10.1. IRSA PC’s Option to Effect Total Defeasance or Partial Defeasance.

IRSA PC may at its option, by written notice executed by an Authorized Person of IRSA PC delivered to the Trustee, elect to have either Section 11.2 or Section 11.3 applied to any Series of Securities, unless otherwise designated pursuant to the terms of such Securities established as set forth in Section 2.3, in each case upon compliance with the conditions set forth below in this Article XI; provided that the provisions of this Article XI shall apply only to Securities of a Series that are denominated and payable in U.S. dollars and have a fixed rate of interest.

Section 10.2. Total Defeasance.

If IRSA PC shall exercise the option provided in Section 11.1 to have this Section 11.2 apply with respect to all Outstanding Securities of any Series of Securities denominated and payable in U.S. dollars and having a fixed rate of interest, IRSA PC shall be deemed to have been discharged from its obligations with respect to such Series of Securities on the date the conditions set forth in Section 11.4 with respect to total defeasance are satisfied with respect to such Securities (hereinafter, “total defeasance”). For this purpose, total defeasance means (except as otherwise may be provided pursuant to the terms of the Securities of such Series established pursuant to Section 2.3) that IRSA PC shall be deemed to have paid and discharged the entire indebtedness represented by such Series of Securities and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Series of Securities are concerned (and IRSA PC and the Trustee, upon the written request of IRSA PC, shall execute instruments acknowledging the same), except for the following, which shall survive until otherwise terminated or discharged hereunder: the right of Holders of such Securities to receive, solely from the trust fund described in Section 11.4 and as more fully set forth in such Section, payments in respect of the principal of and interest on such Securities when such payments are due, IRSA PC’s obligations under Sections 1.2, 2.10, 2.11, 3.2, 3.3, 3.4(b), 3.5, 3.13, 5.6, 5.9, 5.10, 5.14 and 12.7; any other provisions specified pursuant to the terms of the Securities of such Series established pursuant to Section 2.3; and the provisions of Section 1.2, Article V and this Article XI. Subject to compliance with this Article XI, IRSA PC may exercise its option under Section 11.1 to have this Section 11.2 apply to any Series of Securities notwithstanding the prior exercise of its option under Section 11.1 to have Section 11.3 apply to such Series of Securities.

57

Section 10.3. Partial Defeasance.

Upon IRSA PC’s exercise of the option provided in Section 11.1 to have this Section 11.3 applied to all the Outstanding Securities of any Series denominated in U.S. dollars and having a fixed rate of interest, except as otherwise may be provided pursuant to the terms of the Securities established pursuant to Section 2.3: IRSA PC shall be released from its obligations under Sections 3.14 and 3.15 and the occurrence of any event with respect to such Series of Securities specified in Section 4.1(b) shall not be deemed an Event of Default (but only insofar as such event relates to the obligations under Sections 3.14 and 3.15 from which IRSA PC has been expressly released pursuant to Section 11.3(i)), in each case, on and after the date the conditions set forth in Section 11.4 are satisfied with respect to such Series of Securities (hereinafter, “partial defeasance”). For this purpose, partial defeasance means that IRSA PC may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such paragraph to the extent specified above, whether directly or indirectly by reason of any reference elsewhere herein or in the Securities to any such paragraph or by reason of any reference in any such paragraph to any other provision herein or in the Securities of such Series or in any other document, but the remainder of IRSA PC’s obligations shall be unaffected thereby.

Section 10.4. Conditions to Total Defeasance and Partial Defeasance.

The following shall be the conditions to application of either Section 11.2 or Section 11.3 to any Securities:

(a) IRSA PC shall irrevocably have deposited or caused to be deposited with a trustee, who may be the Trustee and who shall agree to comply with the provisions of this Article XI applicable to it (the “Defeasance Trustee”), as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, freely transferable U.S. dollars, or U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms shall provide, not later than one day before the due date of any payment, money, or a combination thereof, in each case in an amount sufficient, to pay and discharge, and which shall be applied by the Defeasance Trustee to pay and discharge, the principal of and each installment of interest on such Securities on the maturity of such principal or installment of interest (whether at the stated maturity or by acceleration, redemption or otherwise) in accordance with the terms of this Indenture and of such Securities. For this purpose, “U.S. Government Obligations” means securities that are (x) direct obligations of the United States of America for the payment of which its full faith and credit are pledged or (y) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof or any other obligor thereon, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any such U.S. Government Obligation, or any specific payment of principal of or interest on any such U.S. Government Obligation, held by such custodian for the account of the holder of such depositary receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation, or the specific payment of principal of and premium or interest on the U.S. Government Obligation, evidenced by such depositary receipt.

(b) IRSA PC shall have delivered to the Trustee a certificate from a firm of independent certified public accountants of internationally recognized standing expressing their opinion that the payments of principal and interest when due and without reinvestment of the deposited U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities to maturity or redemption, as the case may be.

(c) in the case of an election to have Section 11.2 apply to such Securities, IRSA PC shall have delivered to the Defeasance Trustee and the Trustee opinions of independent U.S. counsel of nationally recognized standing experienced in such tax matters stating that (x) IRSA PC has received from, or there has been published by, the U.S. Internal Revenue Service a ruling or (y) since the date of the Offering Memorandum, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the beneficial owners of such Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit, total defeasance and discharge and will be subject to U.S. federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, total defeasance and discharge had not occurred and if so specified in the terms of the Securities of such series established pursuant to Section 2.3, independent Argentine counsel of nationally recognized standing experienced in such tax matters to the effect that the beneficial owners of such Securities will not recognize income, gain or loss for Argentine federal income tax purposes as a result of such deposit, total defeasance and discharge and will be subject to Argentine federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, total defeasance and discharge had not occurred.

58

(d) in the case of an election to have Section 11.3 apply to such Securities, IRSA PC shall have delivered to the Defeasance Trustee and the Trustee opinions of independent U.S. and if so specified in the terms of the Securities of such Series established pursuant to Section 2.3, Argentine counsel of nationally recognized standing experienced in such tax matters to the effect that the beneficial owners of such Securities will not recognize income, gain or loss for U.S. or Argentine, as the case may be, federal income tax purposes as a result of such deposit and partial defeasance and will be subject to U.S. or Argentine, as the case may be, federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit and partial defeasance had not occurred.

(e) IRSA PC shall have delivered to the Defeasance Trustee and the Trustee an Opinion of Counsel to the effect that payment of amounts deposited in trust with the Defeasance Trustee as provided in clause (a) will not be subject to Argentine Taxes except to the extent that Additional Amounts in respect thereof shall have been deposited in trust with the Defeasance Trustee as provided in clause (a).

(f) no Event of Default under such Securities or event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing on the date of such deposit or at any time on or prior to the 123rd day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until such 123rd day).

(g) such total defeasance or partial defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which IRSA PC is a party or by which it is bound, and IRSA PC shall have delivered to the Trustee and the Defeasance Trustee an Opinion of Counsel to that effect.

(h) IRSA PC shall have delivered to the Trustee and the Defeasance Trustee an Officer’s Certificate stating that all conditions precedent relating to either the total defeasance under Section 11.2 or the partial defeasance under Section 11.3, as the case may be, have been complied with.

(i) IRSA PC shall have delivered to the Trustee and the Defeasance Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the United States Investment Company Act of 1940, as amended, the Holders have a valid first priority perfected security interest in the trust funds, and after passage of 123 days following the deposit (except, with respect to any trust funds for the account of any Holder who may be deemed to be an “insider” for purposes of the U.S. Bankruptcy Code, after one year following the deposit), the trust funds will not be subject to the effect of Section 547 of the U.S. Bankruptcy Law or Section 15 of the New York Debtor and Creditor Law in a case commenced by or against IRSA PC under either such statute, and either the trust funds will no longer remain the property of IRSA PC (and therefore, will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally) or if a court were to rule under any such law in any case or proceeding that the trust funds remained property of IRSA PC, assuming such trust funds remained in the possession of the Defeasance Trustee prior to such court ruling to the extent not paid to Holders, the Defeasance Trustee will hold, for the benefit of the Holders, a valid first priority perfected security interest in such trust funds that is not avoidable in bankruptcy or otherwise except for the effect of Section 552(b) of the U.S. Bankruptcy Law on interest on the trust funds accruing after the commencement of a case under such statute.

59

(j) IRSA PC shall have delivered to the Trustee a certificate signed by an Authorized Person to the effect that such Securities, if then listed on any securities exchange, will not be delisted by such exchange as a result of such deposit.

(k) IRSA PC shall have paid the Trustee, the Agents and the Representative of the Trustee in Argentina all amounts outstanding to the Trustee, the Agents and the Representative of the Trustee in Argentina (which may include the reasonable fees and expenses of counsel) in connection with defeasance or otherwise.

Section 10.5. Deposit in Trust; Miscellaneous.

All money and U.S. Government Obligations (including the proceeds thereof) deposited with the Defeasance Trustee pursuant to Section 11.4 in respect of any Securities shall be held in trust and applied by the Defeasance Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent as the Defeasance Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal and any premium and interest, and such money shall be segregated from other funds. Any money deposited with the Defeasance Trustee for the payment of the principal of and any premium or interest on any such Security and remaining unclaimed for two (2) years after such principal, premium or interest has become due and payable shall, upon IRSA PC’s written request, be paid to IRSA PC; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to IRSA PC for payment thereof, and all liability of the Defeasance Trustee with respect to such trust money shall thereupon cease.

IRSA PC shall pay and indemnify the Defeasance Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited by IRSA PC pursuant to Section 11.4 or the principal, premium and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Securities.

Anything in this Article XI to the contrary notwithstanding, the Defeasance Trustee shall deliver or pay to IRSA PC from time to time upon the written request of IRSA PC any money or U.S. Government Obligations held by it on behalf of IRSA PC as provided in Section 11.4 which, in the opinion of a firm of independent certified public accountants of internationally recognized standing expressed in a written certification thereof delivered to the Defeasance Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent total defeasance or partial defeasance.

Section 10.6. Reinstatement.

If the Defeasance Trustee is unable to apply any money in accordance with Sections 11.2 or 11.3 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then all the obligations of IRSA PC under this Indenture and the Securities with respect to which such money was deposited shall be revived and reinstated as though no deposit had occurred pursuant to this Article XI until such time as the Defeasance Trustee is permitted to apply all such money in accordance with Sections 11.2 or 11.3; provided that if IRSA PC makes any payment of principal of or any premium or interest on any such Security following the reinstatement of its obligations, IRSA PC shall be subrogated to the rights of the Holder of such Security to receive such payment from the money held by the Defeasance Trustee and the Defeasance Trustee shall be entitled to promptly make such payment to IRSA PC.

ARTICLE XI

MISCELLANEOUS

Section 11.1. Shareholders, Officers and Directors of IRSA PC Not Subject to Individual Liability.

No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any past, present or future shareholder, officer or director, as such, of IRSA PC or of any successor, either directly or through IRSA PC or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders thereof and as part of the consideration for the issue of the Securities; provided that under Section 34 of the Negotiable Obligations Law, the directors and members of the Supervisory Committee shall be jointly and severally liable for damages to the Securityholders arising from any violation of the Negotiable Obligations Law.

60

Section 11.2. Provisions of Indenture for the Sole Benefit of Parties and Securityholders.

Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and their successors and the Holders of the Securities, any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Securities.

Section 11.3. Successors and Assigns of IRSA PC Bound by Indenture.

All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of IRSA PC shall bind its successors and assigns, whether so expressed or not.

Section 11.4. Notices and Demands on IRSA PC, Trustee and Securityholders.

Any notice, demand or request that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on IRSA PC shall be sufficient for every purpose hereunder if given or served by hand, facsimile transmission or by internationally recognized overnight courier (except as otherwise specifically provided herein) addressed (until another address of IRSA PC is filed by IRSA PC with the Trustee) to IRSA Propiedades Comerciales S.A., Moreno 877, 22nd Floor (C1091AAQ), City of Buenos Aires, Argentina, Attention: Chief Financial and Administrative Officer, Telephone: 5411-4323-7444. Any notice, direction, request or demand by IRSA PC or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, upon actual receipt and if in English and in writing and given or made at the Corporate Trust Office by hand, facsimile an internationally recognized courier.

All notices regarding the Securities will be deemed to have been duly given to the Holders of the Securities with respect to Holders of Certificated Securities, if sent to them by first class mail (or, in the case of joint Holders, to the first named in the Register) at their respective addresses as recorded in the Register, and will be deemed to have been validly given on the fourth Business Day after the date of such mailing, and for notices mailed to Holders of Certificated Securities located in Argentina, upon receipt, with respect to Holders of Global Securities, if delivered to the Depositary thereof, or its nominee (or any successor), in accordance with its applicable procedures, for so long as such Securities are listed and traded on the Merval, upon publication in the City of Buenos Aires in Merval’s Informative Bulletin and in a widely circulated newspaper in Argentina, and for so long as such Securities are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, upon provision of such notice to the Luxembourg Stock Exchange in accordance with the rules of such Exchange. Any such notice will be deemed to have been given on the date of such publication or, if published more than once or on different dates, on the last date on which publication is required and made as so required. In the case of notices delivered to a Depositary, or its nominee (or any successor). Such Depositaries will communicate such notices to its participants in accordance with its applicable procedures.

In addition, IRSA PC shall be required to cause all such other publications of such notices as may be required from time to time by applicable law of Argentina. Any and all notices required to be delivered to the CNV shall be the sole responsibility of IRSA PC.

Any aforementioned notice (a) if sent by internationally recognized overnight courier to IRSA PC as provided above shall be deemed to have been given, made or served on the day on which such courier confirms delivery to the address specified above and (b) if given by facsimile transmission to IRSA PC, when such facsimile is transmitted to the telephone number specified in this Section 12.4 and telephone confirmation of receipt thereof is received.

Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

Except as otherwise provided herein or in the Securities, IRSA PC agrees to give the Trustee the English text of any notice that IRSA PC is required to provide to the Securityholders pursuant hereto and to the Securities, at least two (2) days prior to the earliest date on which such notice is required to be given.

61

In case, by reason of the suspension of or irregularities in regular mail service, the temporary suspension of publication or general circulation of any newspaper or otherwise, it shall be, in the opinion of the Trustee, impracticable to mail or publish notice to IRSA PC and Securityholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

In respect of this Indenture, the Trustee shall not have any duty or obligation to verify or confirm that the Person sending notices, consents, instructions, requests, directions, resolutions, certificates, statements, acknowledgements, orders, instruments, documents, communications or other information by electronic transmission is, in fact, a Person authorized to give such notices, consents, instructions, requests, directions, resolutions, certificates, statements, acknowledgements, orders, instruments, documents, communications or other information on behalf of the party purporting to send such electronic transmission; and the Trustee shall not have any liability for any losses, liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon or compliance with such instructions, directions, reports, notices or other communications or information. Each other party agrees to assume all risks arising out of the use of electronic methods to submit notices, consents, instructions, requests, directions, resolutions, certificates, statements, acknowledgements, orders, instruments, documents, communications or other information to the Trustee, including without limitation the risk of the Trustee acting on unauthorized notices, consents, instructions, requests, directions, resolutions, certificates, statements, acknowledgements, orders, instruments, documents, communications or other information, and the risk of interception and misuse by third parties.

Section 11.5. Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein.

Upon any application or demand by or on behalf of IRSA PC to the Trustee to take any action under any of the provisions of this Indenture, IRSA PC shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with in all material respects, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished. Each such certificate or opinion shall comply with the requirements set forth in this Indenture.

Any certificate, statement or opinion of an Officer of IRSA PC may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such Officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous. Any certificate, statement or Opinion of Counsel may be based, insofar as it relates to factual matters or information with respect to which is in the possession of IRSA PC, upon the certificate, statement or opinion of or representations by an officer of officers of IRSA PC, unless such counsel knows that the certificate, statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include substantially:

(1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(3) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

(4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

Any certificate, statement or opinion of an Officer of IRSA PC or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of IRSA PC, unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous.

Any certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that such firm is independent.

62

The Trustee shall make available to any Securityholder as soon as practicable at the Corporate Trust Office or at the office of any Paying Agent, upon request and upon presentation by such Holder of such evidence of its ownership of its Securities as may be satisfactory to the Trustee, copies of all financial statements and certificates delivered to the Trustee by IRSA PC pursuant to this Indenture or the Securities; provided that the Trustee shall have no liability with respect to any information contained therein or omitted therefrom.

Section 11.6. Payments Due on Non-Business Days.

Unless otherwise set forth in the terms of the Securities of a Series, if the Stated Maturity of such Securities or the Redemption Date or date fixed for repayment of such Securities shall not be a Business Day in the relevant locations specified in the terms of such Securities and the place of payment, then payments of interest or principal in respect of such Securities need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Stated Maturity or the date fixed for redemption or repayment, and no interest shall accrue on such payment for the period after such date on account of such delay. Unless otherwise set forth in the terms of the Securities of a Series, if any date on which a payment of interest is due on such Securities shall not be a Business Day in the relevant locations specified in the terms of such Securities and the place of payment, then such payment of interest in respect of such Securities need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on such date and no interest shall accrue on such payment for the period after such date on account of such delay.

Section 11.7. Governing Law; Consent to Jurisdiction; Waiver of Immunity; Currency Indemnity.

This Indenture and the Securities shall be governed by, and construed in accordance with, the law of the State of New York; provided that all matters relating to the due authorization, execution, issuance and delivery of the Securities by IRSA PC, and matters relating to the legal requirements necessary in order for the Securities to qualify as “obligaciones negociables simples no convertibles” under Argentine law, shall be governed by the Negotiable Obligations Law, together with the Argentine Companies Law, the Capital Markets Law and the rules of the CNV and other applicable Argentine laws and regulations.

(a) IRSA PC hereby irrevocably submits to the non-exclusive jurisdiction of any state or federal court sitting in the Borough of Manhattan, City and State of New York, of any Argentine court sitting in the City of Buenos Aires, including the ordinary courts for commercial matters and the Tribunal de Arbitraje General de la Bolsa de Comercio de Buenos Aires (Permanent Arbitral Tribunal of the Buenos Aires Stock Exchange) under the provisions of Section 46 of the Capital Markets Law, and any competent court in the place of its corporate domicile for purposes of any suit, action or proceeding arising out of or related to this Indenture or the Securities. IRSA PC hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may have to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. IRSA PC also agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment; provided that service of process is effected upon IRSA PC in the manner specified herein.

(b) IRSA PC acknowledges and agrees that the activities contemplated by the provisions of this Indenture are commercial in nature rather than governmental or public and, therefore, acknowledges and agrees that it is not entitled to any right of immunity on the grounds of sovereignty or otherwise with respect to any such activities or in any legal action or proceeding arising out of or in any way relating to this Indenture. IRSA PC, in respect of itself and its properties and revenues, expressly and irrevocably waives any such right of immunity (including any immunity from the jurisdiction of any court or from service of process or from any execution of judgment or from attachment prior to judgment or in aid of execution or otherwise) or claim thereto which may now or hereafter exist, and agrees not to assert any such right or claim in any such action or proceeding, whether in the United States or otherwise.

63

IRSA PC agrees that service of all writs, claims, process and summonses in any suit, action or proceeding described above against it in the State of New York may be made upon CT Corporation System at 111 Eighth Avenue, New York, New York 10011, as its authorized agent in the Borough of Manhattan, New York (the “Process Agent”), and IRSA PC irrevocably appoints the Process Agent as its agent and true and lawful attorneys-in-fact in its name, place and stead to accept such service of any and all such writs, claims, process and summonses, and agrees that the failure of the Process Agent to give any notice to it of any such service of process shall not impair or affect the validity of such service or of any judgment based thereon. IRSA PC agrees to maintain at all times an agent with offices in New York City to act as its Process Agent. Nothing herein shall in any way be deemed (i) to limit the ability to serve any such writs, process or summonses in any other manner permitted by applicable law or (ii) to require IRSA PC to appoint such Process Agent prior to the issuance of the first Series of Securities hereunder.

(c) If a judgment or order given or made by any court for the payment of any amount in respect of any Security or this Indenture is expressed in a currency (the “judgment currency”) other than the currency (the “denomination currency”) in which such Securities are denominated or in which such amount is payable, IRSA PC will indemnify each of the Trustee and the relevant Holder, as applicable, against any deficiency arising or resulting from any variation in rates of exchange between the date as of which the amount in the denomination currency is notionally converted into the amount in the judgment currency for the purposes of such judgment or order and the date of actual payment thereof. This indemnity will constitute a separate and independent obligation from the other obligations contained in the terms and conditions of the Securities and this Indenture, will give rise to a separate and independent cause of action, will apply irrespective of any indulgence granted from time to time and will continue in full force and effect notwithstanding any judgment or order for a liquidated sum or sums in respect of amounts due in respect of the relevant Security, this Indenture or under any such judgment or order.

Section 11.8. Waiver of Jury Trial.

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 11.9. Severability.

If any provision of this Indenture shall be held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable as applied in any particular case in any or all jurisdictions because its conflicts with any provision of any constitution, statute, rule or public policy or for any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case, circumstances or jurisdiction, or of rendering any other provision or provisions of this Indenture invalid, inoperative or unenforceable to any extent whatsoever.

Counterparts.

This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

Section 11.10. Effect of Headings.

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

Section 11.11. USA PATRIOT Act.

The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the USA PATRIOT Act.

64

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of March 23, 2016.

IRSA PROPIEDADES COMERCIALES S.A.
By:
	Name:
	Title:

THE BANK OF NEW YORK MELLON, as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent
By:
	Name:
	Title:

BANCO SANTANDER RÍO S.A., as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina
By:
	Name:
	Title:
By:
	Name:
	Title:

65

EXHIBIT A

FORM OF GLOBAL SECURITY

Registered No.: ___________

CUSIP No.: ___________

ISIN No.: _____________

Registered Holder: _____________

IRSA PROPIEDADES COMERCIALES S.A.

IRSA Propiedades Comerciales S.A. was organized as a stock corporation (sociedad anónima) under the laws of Argentina for a term expiring on August 28, 2087 and was registered on August 29, 1889 under No. 323, Page 6, Book 85, of the Stock Corporations Volume of the Public Registry of Commerce of the City of Buenos Aires, Argentina, and its registered domicile is at Moreno 877, 22nd Floor, City of Buenos Aires, Argentina.

GLOBAL SECURITY

representing

[Currency] [Aggregate principal amount]

NOTES DUE [Stated Maturity Date]

[INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A RULE 144A GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE): THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. (“IRSA PC”) THAT THIS NOTE OR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) TO IRSA PC OR TO ANY DEALERS APPOINTED BY IRSA PC WITH RESPECT TO A PARTICULAR SERIES OF NOTES (EACH, A “DEALER” AND COLLECTIVELY, THE “DEALERS”) OR BY, THROUGH OR IN A TRANSACTION APPROVED BY A DEALER, (II) SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN ACCORDANCE WITH RULE 144A, (III) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AFFORDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED

66

STATES OR OTHER APPLICABLE JURISDICTION. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, REPRESENTS AND AGREES FOR THE BENEFIT OF IRSA PC THAT IT WILL NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN.]

[INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A REGULATION S GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE): THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. THAT NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE AFTER FORTY (40) CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DAY ON WHICH THE NOTES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS NOTE.]

[INCLUDE FOR A DTC GLOBAL SECURITY: UNLESS (1) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO IRSA PROPIEDADES COMERCIALES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND (3) ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHER WISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF INTERESTS IN THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]

[INCLUDE FOR A EUROCLEAR/CLEARSTREAM GLOBAL SECURITY: UNLESS (1) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF [NAME OF THE COMMON DEPOSITARY], OR ANY SUCCESSOR THERETO, AS COMMON DEPOSITARY (“COMMON DEPOSITARY”) FOR EUROCLEAR BANK S.A./N.V. (“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM”) TO IRSA PROPIEDADES COMERCIALES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY NOTE ISSUED IS REGISTERED IN THE NAME OF THE COMMON DEPOSITARY OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY AND (3) ANY PAYMENT IS MADE TO THE COMMON DEPOSITARY OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, THE COMMON DEPOSITARY, HAS AN INTEREST HEREIN.

TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO THE COMMON DEPOSITARY FOR EUROCLEAR AND CLEARSTREAM TO NOMINEES OF THE COMMON DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF INTERESTS IN THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]

[INCLUDE FOR ORIGINAL ISSUE DISCOUNT SECURITIES: THE “TOTAL AMOUNT OF OID” “YIELD TO MATURITY” AND “INITIAL ACCRUAL PERIOD” SET FORTH IN THE PRICING SUPPLEMENT REFERRED TO HEREIN HAVE BEEN COMPLETED SOLELY FOR THE PURPOSE OF APPLYING THE U.S. FEDERAL INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES.

THIS NOTE HAS BEEN ISSUED WITH OID FOR U.S. FEDERAL INCOME TAX PURPOSES. THE FOLLOWING INFORMATION IS PROVIDED SOLELY FOR PURPOSES OF APPLYING THE U.S. FEDERAL INCOME TAX OID RULES TO THIS NOTE:

ISSUE PRICE: US$_______ PER US$1,000 OF PRINCIPAL AMOUNT

ORIGINAL ISSUE DISCOUNT: $_______ PER US$1,000 OF PRINCIPAL AMOUNT

YIELD TO MATURITY: ___.___%

ORIGINAL ISSUE DATE: _________ ___, _____]

SERIES:

SPECIFIED CURRENCY:

PRINCIPAL AMOUNT:

ISSUE DATE:

67

STATED MATURITY:

ORIGINAL ISSUE DISCOUNT SECURITY: YES [  ] NO [  ]

OTHER TERMS AND CONDITIONS:

[If Note is a Fixed Rate Note:

FIXED RATE OF INTEREST:]

[If Note is a Floating Rate Note:

INITIAL INTEREST RATE:

INTEREST DETERMINATION DATE(S):

INTEREST PERIOD:]

INTEREST COMMENCEMENT DATE:

INTEREST PAYMENT DATE(S):

REGULAR RECORD DATE(S):

[THE TERMS OF THE PRICING SUPPLEMENT ATTACHED HERETO ARE INCORPORATED BY REFERENCE HEREIN IN THEIR ENTIRETY.]

This [Rule 144A] [Regulation S] Global Security (this “Note”) is issued in accordance with the Indenture dated as of March 23, 2016, among IRSA Propiedades Comerciales S.A., as issuer (“IRSA PC”), The Bank of New York Mellon, as trustee (the “Trustee”), co-registrar, paying agent and transfer agent and Banco Santander Río S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina (as amended or supplemented from time to time, the “Indenture”) and is subject to the Terms and Conditions set forth on reverse hereof (the “Terms and Conditions”) and the terms and conditions set forth in the attached Pricing Supplement. Such provisions shall for all purposes have the same effect as if set forth in this Note.

Copies of the Indenture and the Terms and Conditions are on file and available for inspection at the Corporate Trust Office of the Trustee and at the office of the Registrar in the City of Buenos Aires and, if and for so long as the Notes are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, and such Exchange shall so require, at the office of the Paying Agent in Luxembourg, in each case as specified in the Indenture. The Holder of this Note is entitled to the benefit of, is bound by, and is deemed to have notice of, all the provisions of the Indenture and the Terms and Conditions applicable to it.

This Global Security is a global security representing an issue of duly authorized Securities of IRSA PC issued and to be issued in one or more Series pursuant to the Indenture. This Global Security has been issued in the initial principal amount shown above (as adjusted from time to time on Schedule A hereto, the “Principal Amount”) and with the Specified Currency, Issue Date, Stated Maturity, redemption and other provisions specified above, and bearing interest on said Principal Amount at the rate of interest specified above.

68

In the event of any conflict between the provisions stated herein or the provisions of the Terms and Conditions included herein and the terms and conditions set forth in the Indenture, the terms and conditions stated herein and in the Pricing Supplement will prevail. Terms used but not defined herein are used as defined in the Indenture and the Terms and Conditions.

IRSA PC, for value received, hereby promises to pay [IF DTC GLOBAL SECURITY INSERT: Cede & Co.] [IF EUROCLEAR/CLEARSTREAM GLOBAL SECURITY INSERT NAME OF COMMON DEPOSITARY OR ITS NOMINEE] or its registered assigns, the Principal Amount in the Specified Currency at the Stated Maturity specified above, unless earlier redeemed in accordance with the terms hereof, and unless this Global Security is an Original Issue Discount Security, to pay interest from the Interest Commencement Date of this Global Security specified above (or from the most recent date to which interest has been paid or made available for payment) on the unpaid Principal Amount (and, to the extent lawful, on overdue principal (including premium or redemption amount, if any, and if this is an Original Issue Discount Security, the Amortized Face Amount, or other amount)) and any interest in respect hereof at (i) if this Note is a Fixed Rate Note, the Fixed Rate of Interest per annum specified above on the Interest Payment Date or Dates specified above in each year, commencing, unless otherwise specified above, with the first such Interest Payment Date falling at least fifteen (15) days after the Issue Date of this Global Security specified above and at Stated Maturity or any redemption date, until the principal hereof shall be paid or made available for payment, or (ii) if this Note is a Floating Rate Note, a rate per annum equal to the Initial Interest Rate specified above until the first Interest Reset Date so specified, or if none is specified, until the first Interest Payment Date, following the Issue Date and thereafter at a rate determined in accordance with the provisions in the Terms and Conditions and the Pricing Supplement or (iii) otherwise as determined by the method set forth in the Pricing Supplement, until the principal hereof is paid or made available for payment. Such interest on a Floating Rate Note shall be payable by IRSA PC monthly, quarterly, semi-annually or annually, or at such other intervals, in each case as specified above under “Interest Period”, on the dates specified above under “Interest Payment Date(s)”, and at Stated Maturity or any redemption date, commencing, unless otherwise specified in the Pricing Supplement, with the first such Interest Payment Date falling at least 15 days after the Issue Date hereof.

This Global Security is exchangeable in whole or in part for duly executed and issued Certificated Securities in the form established pursuant to the Indenture, with the applicable legends as marked thereon, only if such exchange complies with Section 2.7 of the Indenture. Interests in this Global Security are exchangeable or transferable in whole or in part for interests in another Global Security of the same Series, only if such exchange or transfer complies with Section 2.10 of the Indenture.

This Global Security is one of the Series designated above, which term shall mean each original issue of Notes and shall be deemed to include any other Global Securities in respect of such Series issued pursuant to the Indenture referred to on the face of this Note. These Notes, together with any other Securities of IRSA PC issued under the Indenture (“Outstanding Notes”) are limited to an aggregate principal amount outstanding at any one time of US$500,000,000 or the equivalent thereof in one or more Specified Currencies; provided, however, that the total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under the Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders.

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee by manual signature of one of its authorized signatures, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

This Global Security shall be governed by, and construed in accordance with, the law of the State of New York; provided that all matters relating to the due authorization, execution, issuance and delivery of the Securities by IRSA PC, and matters relating to the legal requirements necessary in order for the Securities to qualify as “obligaciones negociables simples no convertibles” under Argentine law, shall be governed by the Negotiable Obligations Law, together with the Argentine Companies Law, the Capital Markets Law and the rules of the CNV and other applicable Argentine laws and regulations.

69

IN WITNESS WHEREOF, IRSA Propiedades Comerciales S.A. has caused this Global Security to be duly executed.

Date:

IRSA PROPIEDADES COMERCIALES S.A.
By:
	Name:
	Title:
By:
	Name:
	Title:

70

CERTIFICATE OF AUTHENTICATION

This Note is one of the Securities referred to in the within mentioned Indenture.

THE BANK OF NEW YORK MELLON,as Trustee
By:
	Name:
	Title:

71

[ATTACH TERMS AND CONDITIONS IN THE

FORM SET FORTH IN EXHIBIT C TO THE INDENTURE]

[ATTACH APPLICABLE PRICING SUPPLEMENT]

72

SCHEDULE A

Date Principal Amount of Certificated Securities issued in exchange for or upon transfer of an interest in this Global Security Principal Amount of this Global Security Redeemed or Repurchased Increase in Principal Amount of this Global Security due to the exchange or transfer of another Global Security (or an interest therein) for an interest in this Global Security Remaining Principal Amount of this Global Security Notation made on behalf of the Trustee by

73

EXHIBIT B

FORM OF CERTIFICATED SECURITY

CUSIP No.: ____________

ISIN No.: ______________

IRSA PROPIEDADES COMERCIALES S.A.

IRSA Propiedades Comerciales S.A. was organized as a stock corporation (sociedad anónima) under the laws of Argentina for a term expiring on August 28, 2087 and was registered on August 29, 1889 under No. 323, Page 6, Book 85, of the Stock Corporations Volume of the Public Registry of Commerce of the City of Buenos Aires, Argentina, and its registered domicile is at Moreno 877, 22nd Floor, City of Buenos Aires, Argentina.

CERTIFICATED SECURITY

representing

[Currency] [Aggregate principal amount]

NOTES DUE [Stated Maturity Date]

[INCLUDE THE FOLLOWING PARAGRAPHS IF THIS SECURITY IS SOLD IN RELIANCE ON RULE 144A OR IN A TRANSACTION OTHERWISE EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. (“IRSA PC”) THAT THIS NOTE OR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) TO IRSA PC OR TO ANY DEALERS APPOINTED BY IRSA PC WITH RESPECT TO A PARTICULAR SERIES OF NOTES (EACH, A “DEALER” AND COLLECTIVELY, THE “DEALERS”) OR BY, THROUGH OR IN A TRANSACTION APPROVED BY A DEALER, (II) SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN ACCORDANCE WITH RULE 144A, (III) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AFFORDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, REPRESENTS AND AGREES FOR THE BENEFIT OF

IRSA PC THAT IT WILL NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN.]

[INCLUDE FOLLOWING PARAGRAPHS IF THIS SECURITY IS SOLD IN RELIANCE ON REGULATION S OR IN A TRANSACTION OTHERWISE EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. THAT NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE AFTER FORTY (40) CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DAY ON WHICH THE NOTES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS NOTE.]

THIS NOTE MAY BE TRANSFERRED ONLY IN MINIMUM PRINCIPAL AMOUNTS SPECIFIED IN THE APPLICABLE PRICING SUPPLEMENT.

[INCLUDE FOR ORIGINAL ISSUE DISCOUNT SECURITIES: THE “TOTAL AMOUNT OF OID”, “YIELD TO MATURITY” AND “INITIAL ACCRUAL PERIOD SET FORTH IN THE PRICING SUPPLEMENT REFERRED TO HEREIN HAVE BEEN COMPLETED SOLELY FOR THE PURPOSE OF APPLYING THE U.S. FEDERAL INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES.

THIS NOTE HAS BEEN ISSUED WITH OID FOR U.S. FEDERAL INCOME TAX PURPOSES. THE FOLLOWING INFORMATION IS PROVIDED SOLELY FOR PURPOSES OF APPLYING THE FEDERAL INCOME TAX OID RULES TO

THIS NOTE:

ISSUE PRICE: $________ PER $1,000 OF PRINCIPAL AMOUNT

ORIGINAL ISSUE DISCOUNT: $________ PER $1,000 OF PRINCIPAL AMOUNT

YIELD TO MATURITY: ___.__%

ORIGINAL ISSUE DATE: _______ ___, ____]

SERIES:

SPECIFIED CURRENCY:

74

PRINCIPAL AMOUNT:

ORIGINAL ISSUE DATE:

STATED MATURITY DATE:

ORIGINAL ISSUE DISCOUNT NOTE: YES ☑ NO ☑

OTHER TERMS AND CONDITIONS:

[If Note is a Fixed Rate Note:

FIXED RATE OF INTEREST:]

[If Note is a Floating Rate Note:

INITIAL INTEREST RATE:

INTEREST DETERMINATION DATE(S):

INTEREST PERIOD:]

INTEREST COMMENCEMENT DATE:

INTEREST PAYMENT DATE(S):

REGULAR RECORD DATES:

OTHER TERMS AND CONDITIONS:

This Certificated Security (this “Note”) is issued in accordance with the Indenture dated as of March 23, 2016, among IRSA Propiedades Comerciales S.A., as issuer (“IRSA PC”), The Bank of New York Mellon, as trustee (the “Trustee”), co-registrar, paying agent and transfer agent and Banco Santander Río S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina (as amended or supplemented from time to time, the “Indenture”) and is subject to the Terms and Conditions set forth on reverse hereof (the “Terms and Conditions”) and the terms and conditions set forth in the attached Pricing Supplement. Such provisions shall for all purposes have the same effect as if set forth in this Note.

Copies of the Indenture and the Terms and Conditions are on file and available for inspection at the Corporate Trust Office of the Trustee and at the office of the Registrar in the City of Buenos Aires and, if and for so long as the Notes are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, and such Exchange shall so require, at the office of the Paying Agent in Luxembourg, in each case as specified in the Indenture. The Holder of this Note is entitled to the benefit of, is bound by, and is deemed to have notice of, all the provisions of the Indenture and the Terms and Conditions applicable to it.

In the event of any conflict between the provisions stated herein or the provisions of the Terms and Conditions included herein and the terms and conditions set forth in the Indenture, the terms and conditions stated herein and in the attached Pricing Supplement will prevail. Terms used but not defined herein are used as defined in the Indenture and the Terms and Conditions.

75

IRSA PC, for value received, hereby promises to pay to _______________ or its registered assigns the Principal Amount stated above or the Redemption Amount if specified in the attached Pricing Supplement, in the Specified Currency at the Stated Maturity specified above, unless earlier redeemed in accordance with the terms hereof, and unless this Note is an Original Issue Discount Security, to pay interest from the Interest Commencement Date of this Note specified in the Pricing Supplement (or from the most recent date to which interest has been paid or made available for payment) on the unpaid Principal Amount (and, to the extent lawful, on overdue principal (including premium or redemption amount, if any, and if this is an Original Issue Discount Security, the Amortized Face Amount, or other amount)) at, (i) if this Note is a Fixed Rate Note, the Fixed Rate of Interest per annum specified above on the Interest Payment Date or Dates specified above in each year, commencing, unless otherwise specified above, with the first such Interest Payment Date falling at least fifteen days after the Issue Date of this Note specified above and at Stated Maturity or any redemption date, until the principal hereof shall be paid or made available for payment, or (ii) if this Note is a Floating Rate Note, a rate per annum equal to the Initial Interest Rate specified above until the first Interest Reset Date so specified, or if none is specified, until the first Interest Payment Date, following the Issue Date and thereafter at a rate determined in accordance with the provisions of the Terms and Conditions and the Pricing Supplement or (iii) otherwise as determined by the method set forth in the Pricing Supplement, until the principal hereof is paid or made available for payment. Such interest on a Floating Rate Note shall be payable by IRSA PC monthly, quarterly, semi-annually or annually, or at such other intervals, in each case as specified above under “Interest Period”, on the dates specified above under “Interest Payment Date(s)”, and at Stated Maturity or any redemption date, commencing, unless otherwise specified in the Pricing Supplement, with the first such Interest Payment Date falling at least fifteen (15) days after the Issue Date hereof.

As used herein, the term “Holder” means the person in whose name a Note is registered in the Register.

This Note is one of the Series designated above, which term shall mean each original issue of Notes and shall be deemed to include any Global Securities in respect of such Series issued pursuant to the Indenture referred to on the face of this Note. These Notes, together with any other debt securities of IRSA PC issued under the Indenture (“Outstanding Notes”) are limited to an aggregate principal amount outstanding at any one time of US$500,000,000 or the equivalent thereof in one or more Specified Currencies; provided, however, that the total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under the Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders.

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee by manual signature of one of its authorized signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose.

This Note shall be governed by and construed in accordance with the laws of the State of New York; provided that all matters relating to the due authorization, execution,

issuance and delivery of the Notes by IRSA PC, and matters relating to the legal requirements necessary in order for the Notes to qualify as “obligaciones negociables simples no convertibles” under Argentine law, shall be governed by the Argentine Negotiable Obligations Law No. 23,576, as amended, together with Argentine Companies Law No. 19,550, as amended, the Capital Markets Law No. 26,831 and the rules of the CNV and other applicable Argentine laws and regulations.

115

IN WITNESS WHEREOF, IRSA Propiedades Comerciales S.A. has caused this Note to be duly executed.

Date:

IRSA PROPIEDADES COMERCIALES S.A.
By:
	Name:
	Title:
By:
	Name:
	Title:

76

CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within mentioned Indenture.

THE BANK OF NEW YORK MELLON,as Trustee
By:
	Name:
	Title:

77

[ATTACH TERMS AND CONDITIONS IN THE

FORM SET FORTH IN EXHIBIT C TO THE INDENTURE]

[ATTACH APPLICABLE PRICING SUPPLEMENT]

78

FORM OF TRANSFER

[Include the following for Notes not bearing a Restrictive Legend]

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder hereby sells, assigns and transfers unto

(Please print or typewrite name and address including postal code of assignee)

this Note and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer such amount of said Note on the books of IRSA PC with full power of substitution in the premises.

Date:

Signed:

NOTICE: The signature to this

assignment must correspond with the

name as written upon the face of the

within instrument in every particular,

without alteration or enlargement or any

change whatsoever.

79

FORM OF TRANSFER

[Include the following for Notes bearing Restrictive Legends]

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder hereby sells, assigns and transfers unto

(Please print or typewrite name and address including postal code of assignee)

Insert Taxpayer Identification No.:

this Note and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer such amount of said Note on the books of IRSA PC with full power of substitution in the premises.

In connection with any transfer of this Note occurring prior to the date that is one year after the Original Issue Date of this Note (provided that IRSA PC or any affiliate of IRSA PC has not acquired this Note during such one-year period), the undersigned confirms that without utilizing any general advertising or general solicitation:

(check one)

☒ This Note is being transferred pursuant to the exception from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), provided by Rule 144A thereunder (“Rule 144A”) and, upon registration of such transfer, each beneficial owner of this Note will be a “qualified institutional buyer” (as defined in Rule 144A), and each such person has been advised that this Note is being sold or transferred to it in reliance upon Rule 144A and has received the information, if any, requested by it pursuant to Rule 144A; or

☒ This Note is being transferred pursuant to the exemption from registration under the Securities Act provided by Regulation S under the Securities Act (“Regulation S”), and the address of the person in whose name this Note is to be registered upon transfer is an address outside the United States (as defined in Regulation S); or

☒ This Note is being transferred to a Dealer or to IRSA PC; or

☒ This Note is being transferred other than in accordance with (a), (b) or (c) above, and documents are being furnished to the Trustee or the transfer agent which comply with the conditions of transfer set forth in this Note and the Indenture.

80

If none of the foregoing boxes is checked, the Trustee shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until the conditions to any such registration of transfer set forth herein and in the Indenture shall have been satisfied.

Date:

Signed: ______________________________________

NOTICE: The signature to this assignment

must correspond with the name as written

upon the face of the within instrument in

every particular, without alteration or

enlargement or any change whatsoever.

81

EXHIBIT C                                 

FORM OF REVERSE OF SECURITIES—TERMS AND CONDITIONS

IN THE EVENT OF ANY CONFLICT BETWEEN THE PROVISIONS STATED HEREIN AND THE TERMS AND CONDITIONS SET FORTH IN A PRICING SUPPLEMENT, IF ANY, ATTACHED TO THIS NOTE, THE PROVISIONS OF THE PRICING SUPPLEMENT WILL PREVAIL.

General

The Securities are to be issued under an Indenture, dated as of March 23, 2016 (as amended, supplemented or otherwise modified from time to time, the “Indenture”), among IRSA PC, The Bank of New York Mellon, as trustee (in such capacity, the “Trustee”), co-registrar (in such capacity, the “Co-Registrar”), principal paying agent (in such capacity, the “Principal Paying Agent,” and together with any other paying agents under the Indenture, the “Paying Agents”) and transfer agent (in such capacity, a “Transfer Agent”, and together with any other transfer agents under the Indenture, the “Transfer Agents”), and Banco Santander Río S.A., as registrar (in such capacity, the “Registrar”), Paying Agent, Transfer agent and representative of the Trustee in Argentina (in such capacity, the “Representative of the Trustee in Argentina”).

The following summaries of certain provisions of the Indenture and the Securities do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all of the provisions of the Indenture and the Securities, including the definitions therein of certain terms. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Indenture.

Securities may be issued from time to time in one or more Series under the Indenture. The Securities of all Series outstanding at any one time under the Program are limited to an aggregate amount of up to US$500,000,000 (or its equivalent in a Specified Currency) outstanding at any time; provided, however, that the total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under the Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders. The particular terms of each issue of Securities, including, without limitation, the date of issue, issue amount, issue price, currency of denomination and payment, maturity, interest rate or interest rate formula, if any, payment method, and, if applicable, redemption, repayment and index or other macroeconomic ratio provisions, will be set forth for each such issue in the Securities and in the applicable Pricing Supplement. With respect to any particular Security, the description of the Securities herein is qualified in its entirety by reference to, and to the extent inconsistent therewith is superseded by, such Security and the applicable Pricing Supplement.

The Securities will qualify as “obligaciones negociables simples no convertibles” under the Negotiable Obligations Law and will be entitled to the benefits set forth therein and subject to the procedural requirements thereof. The Securities will rank pari passu in right of payment with all other existing and future unsecured and unsubordinated indebtedness of IRSA PC (other than obligations preferred by statute or by operation of law).

Unless previously redeemed, the Securities will mature on the date (the “Stated Maturity”) no less than thirty (30) days from their date of issue as specified on the face thereof and in the applicable Pricing Supplement.

The Securities may be denominated in any currency (a “Specified Currency”) as shall be specified on the face thereof and in the applicable Pricing Supplement. Unless otherwise specified in the applicable Pricing Supplement, payments on the Securities will be made in the applicable Specified Currency; provided that in certain circumstances, as may be described in the applicable Pricing Supplement, payments on any such Securities denominated in a currency other than U.S. dollars may, to the extent permitted by Argentine law, be made in U.S. dollars. See “—Payment of Principal and Interest” below.

The Securities will bear interest, if any, at the interest rate or interest rate formula set forth on the face thereof and in the applicable Pricing Supplement. The Securities may bear interest at a fixed rate (a “Fixed Rate Note”) or at a rate determined by reference to an interest rate basis or other interest rate formula (a “Floating Rate Note”) or may bear no interest (a “Zero Coupon Note”). See “Interest Rate” below.

The Securities may also be issued with principal and/or interest payable, to the extent permitted by Argentine law, in one or more currencies different from the currency in which such Securities are denominated (“Dual Currency Notes”), or linked to an index and/or a formula (“Indexed Notes”). Dual Currency and Indexed Notes may be issued to bear interest on a fixed or floating rate basis or on a non-interest bearing basis or a combination of such bases, in which case provisions relating to Fixed Rate Notes, Floating Rate Notes, Zero Coupon Notes or a combination thereof, respectively, shall, where the context so permits, apply to such Dual Currency or Indexed Notes. References herein to Securities denominated in a Specified Currency shall, unless the context otherwise requires, include Dual Currency Notes payable in such Specified Currency.

82

The Securities may be issued as Original Issue Discount Securities. An “Original Issue Discount Security,” including, without limitation, any Zero Coupon Note, is a Note which is issued at a price lower than the principal amount thereof, and which provides that upon redemption or acceleration of the Stated Maturity thereof, the amount payable to the Holder of such Note will be determined in accordance with the terms of such Note, and will be an amount that is less than the amount payable on the Stated Maturity of such Note.

Unless otherwise specified in the applicable Pricing Supplement, the Securities will not be subject to any sinking fund and will not be redeemable prior to their Stated Maturity, except in the event of certain changes involving Argentine taxes.

If specified in the applicable Pricing Supplement with respect to a Series of Securities, IRSA PC may from time to time, without the consent of Holders of Securities outstanding, create and issue additional Securities of such Series (“Additional Securities”); provided such Additional Securities have the same terms and conditions as the Securities of that Series (except for the date of issue, the issue price, the applicable legends, the date from which interest accrues and, if applicable, the first payment of interest); and provided further that if the Additional Securities are not fungible for U.S. federal income tax purposes with the previously Outstanding Securities of the relevant Series, such Additional Securities shall have a separate CUSIP number. The Additional Securities shall form a single Series with the previously outstanding Series of Securities.

Interest Rate

General. Unless otherwise specified in the applicable Pricing Supplement, each Fixed Rate Note or Floating Rate Note (each as defined below) will bear interest from (and including) the issue date or such other date (the “Interest Commencement Date”) specified in the applicable Pricing Supplement or from the most recent Interest Payment Date (or, if such Note is a Floating Rate Note and the Interest Reset Period (as each such term is defined below) is daily or weekly, from the day following the most recent Regular Record Date) to which interest on such Note has been paid or duly provided for at the fixed rate per annum, or at the rate per annum determined pursuant to the interest rate formula, stated in the applicable Pricing Supplement, until the principal thereof is paid or made available for payment. Interest will be payable on each Interest Payment Date and at Stated Maturity or upon redemption or acceleration, as specified under “Payment of Principal and Interest” below.

Each Note bearing interest will bear interest at either (a) a fixed rate or (b) a variable rate determined by reference to an interest rate basis (including LIBOR (a “LIBOR Note”), the Treasury Rate (a “Treasury Rate Note”) or such other interest rate basis as is set forth in the applicable Pricing Supplement), which may be adjusted by adding or subtracting the Spread and/or multiplying by the Spread Multiplier. The “Spread” is the number of basis points specified in the applicable Pricing Supplement as being applicable to the interest rate for such Note, and the “Spread Multiplier” is the percentage specified in the applicable Pricing Supplement as being applicable to the interest rate for such Note. A Floating Rate Note may also have either or both of the following as specified in the applicable Pricing Supplement: (a) a maximum numerical interest rate limitation, or ceiling, on the rate of interest which may accrue during any interest period (a “Maximum Rate”); and (b) a minimum numerical interest rate limitation, or floor, on the rate of interest which may accrue during any interest period (a “Minimum Rate”).

“Index Maturity” means, with respect to a Floating Rate Note, the period to maturity of the instrument or obligation on which the interest rate formula is based, as specified in the applicable Pricing Supplement.

Fixed Rate Notes

Fixed Rate Notes shall bear interest from (and including) the Interest Commencement Date specified in the applicable Pricing Supplement at the rate or rates per annum so specified (the “Fixed Rate(s) of Interest”) payable in arrears on the Interest Payment Date(s) in each year and on the Stated Maturity or upon redemption or acceleration. The first payment of interest will be made on the Interest Payment Date next following the Interest Commencement Date and, if the period from the Interest Commencement Date to the Interest Payment Date differs from the period between subsequent Interest Payment Dates, will equal the “Initial Broken Amount” specified in the applicable Pricing Supplement. If the Stated Maturity is not an Interest Payment Date, interest from and including the preceding Interest Payment Date (or the Interest Commencement Date, as the case may be) to (but excluding) the Stated Maturity will equal the “Final Broken Amount” specified in the applicable Pricing Supplement.

Floating Rate Notes

General. The applicable Pricing Supplement relating to a Floating Rate Note will designate an interest rate basis (the “Interest Rate Basis”) for such Floating Rate Note. The Interest Rate Basis for each Floating Rate Note will be: (a) LIBOR, in which case such Note will be a LIBOR Note: (b) the Treasury Rate, in which case such Note will be a Treasury Rate Note; or (c) such other interest rate basis as is set forth in such Pricing Supplement. The Pricing Supplement for a Floating Rate Note will also specify, if applicable, the Calculation Agent, the Index Maturity, the Spread and/or Spread Multiplier, the Maximum Rate, the Minimum Rate, the Regular Record Dates and the Initial Interest Rate, the Interest Payment Dates, the Calculation Dates, the Interest Determination Dates, the Interest Reset Period and the Interest Reset Dates (each as defined below) with respect to such Note.

83

The rate of interest on each Floating Rate Note will be reset and become effective daily, weekly, monthly, quarterly, semi-annually or annually or otherwise, as specified in the applicable Pricing Supplement (each an “Interest Reset Period”); provided that (a) the interest rate in effect from the date of issue to the first Interest Reset Date with respect to a Floating Rate Note will be the initial interest rate as set forth in the applicable Pricing Supplement (the “Initial Interest Rate”) and (b) unless otherwise specified in the applicable Pricing Supplement, the interest rate in effect for the ten (10) days immediately prior to Stated Maturity of a Note will be that in effect on the tenth day preceding such Stated Maturity. The dates on which the rate of interest will be reset (each an “Interest Reset Date”) will be specified in the applicable Pricing Supplement. If any Interest Reset Date for any Floating Rate Note would otherwise be a day that is not a Business Day with respect to such Floating Rate Note, the Interest Reset Date for such Floating Rate Note shall be postponed to the next day that is a Business Day with respect to such Floating Rate Note, except that, in the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such Interest Reset Date shall be the next preceding Business Day.

Unless otherwise specified in the applicable Pricing Supplement, “Interest Determination Dates” will be as set forth below. The Interest Determination Date pertaining to an Interest Reset Date for a LIBOR Note (the “LIBOR Interest Determination Date”) will be the second (2nd) Business Day preceding such Interest Reset Date. The Interest Determination Date pertaining to an Interest Reset Date for a Treasury Rate Note (the “Treasury Interest Determination Date”) will be the day of the week in which such Interest Reset Date falls and on which Treasury bills would normally be auctioned. Treasury bills are usually sold at auction on the Monday of each week, unless that day is a legal holiday, in which case the auction is usually held on the following Tuesday, except that such auction may be on the preceding Friday. If, as the result of a legal holiday, an auction is so held on the preceding Friday, such Friday will be the Treasury Interest Determination Date pertaining to the Interest Reset Date occurring in the next succeeding week. If an auction date shall fall on any Interest Reset Date for a Treasury Rate Note, then such Interest Reset Date shall instead be the first (1st) Business Day immediately following such auction date.

All percentages resulting from any calculations referred to in the applicable Pricing Supplement will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and all Specified Currency amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent rounded upward) or nearest equivalent in Specified Currencies other than U.S. dollars.

In addition to any Maximum Rate which may be applicable to any Floating Rate Note pursuant to the above provisions, the interest rate on Floating Rate Notes will in no event be higher than the maximum interest rate permitted by applicable law; provided that in no event shall the Calculation Agent have any obligation to determine whether or not any such interest rate is higher than the maximum interest rate permitted by applicable law.

Upon the request of the Holder of any Floating Rate Note, the Calculation Agent will provide the interest rate then in effect, and, if determined, the interest rate which will become effective on the next Interest Reset Date with respect to such Floating Rate Note. The Calculation Agent’s determination of any interest rate will be final and binding in the absence of manifest error.

The Calculation Agent will cause notice of the rate of interest and the amount of interest for each interest period and the relevant Interest Payment Date to be given to IRSA PC and the Trustee as soon as possible after their determination but in no event later than the fourth (4th) Business Day thereafter and, in the case of Securities listed on the Luxembourg Stock Exchange for trading on the Euro MTF, no later than the first day of the relevant Interest Reset Period. Such notice will be in accordance with the provisions of the Securities relating to notices to Holders of Securities. The amount of interest and the Interest Payment Date may subsequently be amended (or appropriate alternative arrangements as may be made by way of adjustment) without notice in the event of an extension or shortening of the Interest Reset Period.

The manner in which the interest rate for any Floating Rate Note that is not a LIBOR Note or a Treasury Rate Note will be determined as set forth in the applicable Pricing Supplement.

LIBOR Notes. LIBOR Notes will bear interest at the interest rates (calculated with reference to LIBOR and the Spread and/or Spread Multiplier, if any, subject to the Maximum Rate or the Minimum Rate, if any), and will be payable on the dates, specified on the face of the LIBOR Note and in the applicable Pricing Supplement.

Unless otherwise indicated in the applicable Pricing Supplement, LIBOR with respect to any Interest Reset Date will be determined by the Calculation Agent in accordance with the following provisions. On the relevant LIBOR Interest Determination Date, LIBOR will be determined on the basis of either of the following or otherwise, as specified in the applicable Pricing Supplement:

84

(a) the offered rates for deposits in the Specified Currency having the specified Index Maturity, commencing on the next succeeding Interest Reset Date, which appear on the display designated as page “LIBOR01” or “LIBOR02,” as applicable, on the Reuters Monitor Money Rates Service (or such other page as may replace such pages on that service for the purpose of displaying London interbank offered rates of major banks for deposits in the Specified Currency) (each, a “Reuters Screen LIBOR Page”) as of 11:00 a.m., London time, on such LIBOR Interest Determination Date. If at least two (2) such offered rates appear on the applicable Reuters Screen LIBOR Page, LIBOR with respect to such Interest Reset Date will be the arithmetic mean of such offered rates as determined by the Calculation Agent. If fewer than two (2) offered rates appear, LIBOR with respect to such Interest Reset Date will be determined as described in (ii) below; or

(b) the offered rates for deposits in the Specified Currency having the specified Index Maturity, commencing on the next succeeding Interest Reset Date, which appear on the display designated as page “BBAM1” on the Bloomberg Service (or such other page as may replace any such page on that service for the purpose of displaying London interbank offered rates of major banks for deposits in the Specified Currency) (“Bloomberg Page”) as of 11:00 a.m., London time, on such LIBOR Interest Determination Date. If no such offered rate appears, LIBOR with respect to such Interest Reset Date will be determined as described in (ii) below.

If neither a “Reuters Screen LIBOR Page” nor a “Bloomberg Page” is specified in the applicable Pricing Supplement, LIBOR will be determined as if a Reuters Screen LIBOR Page had been so specified.

With respect to a LIBOR Interest Determination Date on which fewer than two offered rates for the applicable Index Maturity appear on a Reuters Screen LIBOR Page as described in (a) above, or on which no rate appears on the Bloomberg Page as described in (b) above, as applicable, LIBOR will be determined on the basis of the rates

at approximately 11:00 a.m., London time, on such LIBOR Interest Determination Date at which deposits in the Specified Currency having the specified Index Maturity are offered to prime banks in the London interbank market by four (4) major banks in the London interbank market selected by IRSA PC (and notified to the Calculation Agent in writing) commencing on the second (2nd) Business Day immediately following such LIBOR Interest Determination Date and in a principal amount equal to an amount of not less than US$1,000,000 (or its approximate equivalent in a Specified Currency other than U.S. dollars) that in IRSA PC’s judgment is representative for a single transaction in such market at such time (a “Representative Amount”). IRSA PC will request the principal London office of each of such banks to provide a quotation of its rates which such rates IRSA PC shall notify to the Calculation Agent in writing. If at least two (2) such quotations are provided, LIBOR with respect to such Interest Reset Date will be the arithmetic mean of such quotations. If fewer than two (2) quotations are provided, LIBOR with respect to such Interest Reset Date will be the arithmetic mean of the rates quoted at approximately 11:00 A.M., New York City time, on such LIBOR Interest Determination Date by three major banks in New York City, selected by IRSA PC (and notified to the Calculation Agent in writing), for loans in the Specified Currency to leading European banks having the specified Index Maturity on the Interest Reset Date and in a Representative Amount; provided that if fewer than three (3) banks selected as aforesaid by IRSA PC are quoting as mentioned in this sentence, LIBOR with respect to such Interest Reset Date will be LIBOR in effect on such LIBOR Interest Determination Date.

Treasury Rate Notes. Treasury Rate Notes will bear interest at the interest rates (calculated with reference to the Treasury Rate and the Spread and/or Spread Multiplier, if any, subject to the Maximum Rate or Minimum Rate, if any) and will be payable on the dates specified in the applicable Pricing Supplement. Unless otherwise specified in the applicable Pricing Supplement, the “Calculation Date” with respect to a Treasury Interest Determination Date will be the tenth day after such Treasury Interest Determination Date or, if any such day is not a Business Day, the next succeeding Business Day.

85

Unless otherwise indicated in the applicable Pricing Supplement, “Treasury Rate” means, with respect to any Interest Reset Date, the rate for the auction on the relevant Treasury Interest Determination Date of direct obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the applicable Pricing Supplement, as such rate appears on the display of Moneyline Telerate, Inc. (or any successor service) on page 56 (or any other page as may replace such page) or page 57 (or any other page as may replace such page), under the heading “INVESTMENT RATE.” In the event that such rate does not appear by 3:00 p.m., New York City time, on the Calculation Date pertaining to such Treasury Interest Determination Date, then the Treasury Rate for such Interest Reset Date shall be the rate on such date as published in H.15 Daily Update under the heading “U.S. government securities—Treasury bills—Auction high.” In the event that the foregoing rates do not so appear or are not so published by 3:00 p.m., New York City time, on the Calculation Date pertaining to such Treasury Interest Determination Date, then the Treasury Rate for such Interest Reset Date shall be the “Investment Rate” (expressed as a bond equivalent yield, on the basis of a year of 365 or 366 days, as applicable, and applied on a daily basis) as announced by the

United States Department of the Treasury for the auction held on such Treasury Interest Determination Date, currently available on the worldwide web at: http://www.publicdebt.treas.gov/AI/OFBills. In the event that the results of the auction of Treasury Bills having the Index Maturity specified in the applicable Pricing Supplement are not published or reported as provided above by 3:00 p.m., New York City time, on such Calculation Date or if no such auction is held on such Treasury Interest Determination Date, then the Treasury Rate shall be calculated by the Calculation Agent and shall be the rate for such Treasury Interest Determination Date for the issue of Treasury Bills with a remaining maturity closest to the specified Index Maturity (expressed as a bond equivalent yield, on the basis of a year of 365 or 366 days, as applicable, and applied on a daily basis) as published in H.15(519), under the heading “U.S. government securities—Treasury bills (secondary market).” In the event that the foregoing rates do not so appear or are not so published by 3:00 p.m., New York City time, on the Calculation Date pertaining to such Treasury Interest Determination Date, then the Treasury Rate for such Interest Reset Date shall be the rate for such Treasury Interest Determination Date for the issue of Treasury Bills with a remaining maturity closest to the specified Index Maturity, as published in H.15 Daily Update or another recognized electronic source used for the purpose of displaying such rate, under the heading “U.S. government securities—Treasury bills (secondary market).” In the event that the foregoing rates do not so appear or are not so published by 3:00 p.m., New York City time, on the Calculation Date pertaining to such Treasury Interest Determination Date, then the Treasury Rate shall be calculated by the Calculation Agent and shall be a yield to maturity (expressed as a bond equivalent yield, on the basis of a year of 365 or 366 days, as applicable, and applied on a daily basis) of the arithmetic mean of the secondary market bid rates, at approximately 3:30 p.m., New York City time, on such Treasury Interest Determination Date, quoted to IRSA PC by three leading primary United States government securities dealers selected by IRSA PC (and notified to the Calculation Agent in writing) for the issue of Treasury Bills with a remaining maturity closest to the specified Index Maturity; provided that if the dealers selected as aforesaid by IRSA PC are not quoting as mentioned in this sentence, the Treasury Rate for such Interest Reset Date shall be the Treasury Rate in effect on such Treasury Interest Determination Date.

Payment of Principal and Interest

General. Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration or redemption) shall be payable in immediately available funds to the Person in whose name a Note is registered at the close of business on the Regular Record Date next preceding each Interest Payment Date notwithstanding the cancellation of such Securities upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Interest Payment Date; provided that interest payable at Stated Maturity or upon acceleration or redemption shall be payable to the Person to whom principal will be payable; and provided further, that if and to the extent IRSA PC defaults in the payment of the interest, including any Additional Amounts, due on such Interest Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Person in whose names such Securities are registered at the end of a subsequent record date established by IRSA PC by notice given by or on behalf of IRSA PC to the Holders of the Securities not less than fifteen (15) days preceding such special record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest. Unless otherwise specified in the applicable Pricing Supplement, the first payment of interest on any Note originally issued between a Regular Record Date and an Interest Payment Date shall be made on the Interest Payment Date following the next succeeding Regular Record Date to the registered owner at the close of business on such next succeeding Regular Record Date. Unless otherwise specified in the applicable Pricing Supplement, the “Regular Record Date” with respect to any Security will be the date 15 calendar days prior to each Interest Payment Date, whether or not such date is a Business Day.

86

Payment of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of any Note at Stated Maturity or upon acceleration or redemption shall be made to the registered Holder on such date in immediately available funds to the person in whose name such note is registered upon surrender of such Note at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Note is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of Securities to be made other than at Stated Maturity or upon redemption shall be made by check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that (a) DTC and the Common Depositary, as Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds, (b) a Holder of at least US$1,000,000 (or the approximate equivalent thereof in a Specified Currency other than U.S. dollars) in aggregate principal or face amount of Securities of the same Series shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due and (c) to the extent that the Holder of a Note issued and denominated in a Specified Currency other than U.S. dollars elects to receive payment of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of such Note at Stated Maturity or upon redemption in such Specified Currency, such payment, except in circumstances described in the applicable Pricing Supplement, shall be made by wire transfer of immediately available funds to an account specified in writing not less than fifteen (15) days prior to the date such payment is due by the Holder to the Trustee. Unless such designation is revoked, any such designation made by such Holder with respect to such Securities shall remain in effect with respect to any future payments with respect to such Securities payable to such Holder.

Payments of interest on any Fixed Rate Note or Floating Rate Note with respect to any Interest Payment Date will include interest accrued to but excluding such Interest Payment Date; provided, that, unless otherwise specified in the applicable Pricing Supplement, if the Interest Reset Dates with respect to any Floating Rate Note are daily or weekly, interest payable on such Note on any Interest Payment Date, other than interest payable on the date on which principal on any such Note is payable, will include interest accrued to but excluding the day following the next preceding Regular Record Date.

With respect to a Floating Rate Note, accrued interest from the date of issue or from the last date to which interest has been paid is calculated by multiplying the principal or face amount of such Floating Rate Note by an accrued interest factor. Such accrued interest factor is computed by adding the interest factor calculated for each day from the date of issue, or from the last date to which interest has been paid, to but excluding the date for which accrued interest is being calculated. Unless otherwise specified in the applicable Pricing Supplement, the interest factor (expressed as a decimal) for each such day is computed by dividing the interest rate (expressed as a decimal) applicable to such date by 360, in the case of LIBOR Notes, or by the actual number of days in the year, in the case of Treasury Rate Notes.

Unless otherwise specified in the applicable Pricing Supplement, interest on Fixed Rate Notes will be calculated on the basis of a 360-day year consisting of twelve (12) months of thirty (30) days each and, in the case of an incomplete month, the number of days elapsed.

Unless otherwise specified in the applicable Pricing Supplement, if any Interest Payment Date (other than the Stated Maturity) for any Floating Rate Note would otherwise be a day that is not a Business Day in the relevant locations specified in the Pricing Supplement and the place of payment, such Interest Payment Date shall be the next Business Day succeeding such Business Day (except that, in the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such Interest Payment Date shall be the next Business Day preceding such Business Day). If the Stated Maturity for any Fixed Rate Note or Floating Rate Note or the Interest Payment Date for any Fixed Rate Note falls on a day which is not a Business Day in the relevant locations specified in the Pricing Supplement and the place of payment, payment of principal (and premium, if any) and interest with respect to such Note will be made on the next succeeding Business Day in the place of payment with the same force and effect as if made on the due date and no interest on such payment will accrue from and after such due date.

87

Specified Currency Other Than U.S. Dollars

If any Note is to be denominated in a Specified Currency other than U.S. dollars, certain provisions with respect thereto will be set forth in the applicable Pricing Supplement, which will specify the foreign currency or currency unit in which the principal or any premium or interest with respect to such Note are to be paid, along with any other terms relating to the non-U.S. dollar denomination.

If IRSA PC offers Indexed Notes or Dual Currency Notes, the applicable Pricing Supplement and such Indexed Notes or Dual Currency Notes will set forth the method by and the terms on which the amount of principal (payable on or prior to Stated Maturity), interest and/or any premium, will be determined, any additional tax consequences to the

Holder of such Note, a description of certain risks associated with investment in such Note and other information relating to such Note.

Unless otherwise specified in the terms of a Series of Securities, Securities denominated in a Specified Currency other than U.S. dollars will provide that, in the event of an official redenomination of the currency, the obligations of IRSA PC with respect to payments on such Securities shall, in all cases, be deemed immediately following such redenomination to provide for payment of that amount of the redenominated currency representing the amount of such obligations immediately before such redenomination.

If the principal of or any premium, interest, Additional Amounts or other amounts on any note is payable in a Specified Currency other than U.S. dollars and such Specified Currency is not available due to the imposition of exchange controls or other circumstances beyond IRSA PC’s control, or is no longer used by the government of the country issuing such currency or for settlement of transactions by public institutions of or within the international banking community, then IRSA PC, until such currency is again available or so use, will be entitled, to the extent permitted by Argentine law, to satisfy its obligations to the Holder of such Securities by making such payment in U.S. dollars at the Exchange Rate for the Payment Date. The making of any payment in respect of any Note in U.S. dollars under the foregoing circumstances shall not constitute an Event of Default under such Note.

Payments of the principal and any premium, interest, Additional Amounts or other amounts to Holders of a note denominated in a Specified Currency other than U.S. dollars who hold the Note through DTC will, to the extent permitted by Argentine law, be made in U.S. dollars. However, any DTC Holder of a Note denominated in a Specified Currency other than U.S. dollars may elect to receive payments by wire transfer in the Specified Currency other than U.S. dollars by delivering a written notice to the DTC participant through which it holds its beneficial interest, not later than the Regular Record Date, in the case of an interest payment, or at least fifteen (15) calendar days before the Stated Maturity, specifying wire transfer instructions to an account denominated in the Specified Currency. The DTC participant must notify DTC of the election and wire transfer instructions on or before the twelfth (12th) Business Day before the applicable payment of the principal.

If so specified in the applicable Pricing Supplement, payments of principal, interest, Additional Amounts or other amounts on or in respect of any Note denominated in a Specified Currency other than U.S. dollars shall, to the extent permitted by Argentine law, be made in U.S. dollars, calculated at the Exchange Rate for the Payment Date, if the Holder of such Note on the relevant Regular Record Date or at Stated Maturity, as the case may be, has transmitted a written request for such payment in U.S. dollars to the Trustee and the applicable Paying Agent on or prior to such Regular Record Date or the date that is fifteen (15) days prior to the Stated Maturity, as the case may be. Such request may be in writing (mailed or hand delivered) or by facsimile transmission. Any such request made with respect to any Note by a Holder will remain in effect with respect to any further payments of principal and any premium, interest, Additional Amounts or

other amounts on or in respect of such Note payable to such Holder, unless such request is revoked on or prior to the relevant Regular Record Date or the date that is fifteen (15) days prior to the Stated Maturity, as the case may be. Holders of Securities denominated in a Specified Currency other than U.S. dollars that are registered in the name of a broker or nominee should contact such broker or nominee to determine whether and how an election to receive payments in U.S. dollars may be made.

The U.S. dollar amount to be received by a Holder of a Note denominated in a Specified Currency other than U.S. dollars who elects to receive payment in U.S. dollars will be based on the Exchange Rate, on the second (2nd) Business Day next preceding the applicable Payment Date. If Exchange Rate quotations are not available on the second (2nd) Business Day preceding the date of payment of principal or any premium, interest, Additional Amounts or other amounts with respect to any Note, such payment will be made in the Specified Currency. All currency exchange costs associated with any payment in U.S. dollars on any Note denominated in a Specified Currency other than U.S. dollars will be borne by the Holder thereof by deductions from payment of the currency exchange being effected on behalf of the Holder by the Exchange Rate Agent.

88

Unless otherwise specified in the applicable Pricing Supplement, (i) a Note denominated in Euro may only be presented for payment on a day on which the TARGET system is operating and (ii) if interest is required to be calculated for a period of less than one (1) year, unless otherwise specified in the applicable Pricing Supplement, it will be calculated on the basis of the actual number of days elapsed divided by 365 (or, if any of the days elapsed fall in a leap year, the sum of (A) the number of those days falling in a leap year divided by 366 and (B) the number of those days falling in a non-leap year divided by 365).

In the event of any foreign exchange restriction or prohibition in Argentina, IRSA PC shall make any and all payments in respect of interest on, or principal of, the Securities, to the extent permitted by applicable law, in U.S. dollars by:

(a)           purchasing, with Pesos any series of Argentine Discount Bonds or Argentine Par Bonds or any other securities or public or private bonds issued in Argentina and denominated in U.S. dollars and transferring and selling such securities outside Argentina for U.S. dollars, or

(b)           by means of any other legal procedure existing in Argentina for the purchase of U.S. dollars and their subsequent transfer abroad.

All costs and taxes payable in connection with the procedures referred to above shall be borne by IRSA PC. IRSA PC’s payment obligations may only be deemed satisfied and discharged upon receipt by the relevant Holder or the Trustee, as the case may be, of the U.S. dollar amounts obtained through the transactions specified above necessary to satisfy the relevant amount owing on the Securities.

89

EXHIBIT D

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY DURING THE RESTRICTED PERIOD

(Exchanges or Transfers pursuant to

Section 2.10(c)(i) of the Indenture)

The Bank of New York Mellon,

as Trustee

101 Barclay Street, 7E

New York, New York 10286

Attention: Corporate Trust Department

Re:           IRSA Propiedades Comerciales S.A. Reference is hereby made to the Indenture dated as of March 23, 2016 (as amended, modified or supplemented from time to time the “Indenture”), among IRSA Propiedades Comerciales S.A. (“IRSA PC”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Río S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to [currency amount] principal amount of [Describe Notes] (the “Securities”) that represent a beneficial interest in the Rule 144A Global Security (CUSIP No. ______) beneficially owned by the undersigned (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Regulation S Global Security (CUSIP No. _____) (Common Code No. __________; ISIN No. _____________).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in the Securities and pursuant to and in accordance with Regulation S, and accordingly the Transferor does hereby certify that:

(1) the offer of the Notes was not made to a person in the United States;

(2) either (i) the transaction was executed in, on or through a physical trading floor of an established foreign securities exchange that is located outside the United States, (ii) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on the Transferor’s behalf knows that the transaction was pre-arranged with a transferee in the United States or (iii) the transferee is outside the United States, or the Transferor and any person acting on its behalf reasonably believes that the transferee is outside the United States;

(3) no directed selling efforts have been made in contravention of the requirement of

(4) the additional conditions set forth in Rule 903(b) or 904(b), as applicable, have been satisfied; and

(5) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.

To the extent applicable, the terms used in clauses (1) through (5) above have the meanings given to them in Regulation S.

Rule 903(a)(2) or 904(a)(2) of Regulation S, as applicable;

90

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA PC.

[Insert name of Transferor]
By:
	Name:
	Title:

Dated: , 20

91

EXHIBIT E                                 

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY AFTER THE restricted PERIOD

(Exchanges or Transfers pursuant to

Section 2.10(c)(i) of the Indenture)

The Bank of New York Mellon,

as Trustee

101 Barclay Street,7E

New York, New York 10286

Attention: Corporate Trust Department

Re:           IRSA Propiedades Comerciales S.A. Reference is hereby made to the Indenture dated as of March 23, 2016 (as amended, modified or supplemented from time to time, the “Indenture”), among IRSA Propiedades Comerciales S.A. (“IRSA PC”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Río S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to [currency amount] principal amount of [Describe Notes] (the “Securities”) that represent a beneficial interest in the Rule 144A Global Security (CUSIP No. ______) beneficially owned by the undersigned (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Regulation S Global Security (CUSIP No. _____) (Common Code No. __________; ISIN No. _____________).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in the Securities and that:

(a) With respect to transfers made in reliance on Regulation S:

(1) The offer of the Notes was not made to a person in the United States;

(2) either (i) the transaction was executed in, on or through a physical trading floor of an established foreign securities exchange that is located outside the United States, (ii) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on the Transferor’s behalf knows that the transaction was pre-arranged with a transferee in the United States or (iii) the transferee is outside the United States, or the Transferor and any person acting on its behalf reasonably believes that the transferee is outside the United States;

(3) no directed selling efforts have been made in contravention of the requirement of Rule 903(a)(2) or 904(a)(2) of Regulation S, as applicable;

(4) the additional conditions set forth in Rule 903(b) or 904(b), as applicable, have been satisfied; and

(5) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; or

(b) With respect to transfers made in reliance on Rule 144 under the Securities Act, the Notes are being transferred in a transaction permitted by Rule 144 under the Securities Act.

To the extent applicable, the terms used in clauses (a)(1) through (5) above have the meanings given to them in Regulation S.

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA PC.

[Insert name of Transferor]
By:
	Name:
	Title:

Dated: , 20

92

EXHIBIT F

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM REGULATION S GLOBAL SECURITY TO RULE 144A GLOBAL SECURITY

(Exchanges or Transfers pursuant to

Section 2.10(c)(ii) of the Indenture)

The Bank of New York Mellon

as Trustee

101 Barclay Street, 7E

New York, New York 10286

Attention: Corporate Trust Department

Re:           IRSA Propiedades Comerciales S.A.

Reference is hereby made to the Indenture dated as of March 23, 2016 (as amended, modified or supplemented from time to time, the “Indenture”), among IRSA Propiedades Comerciales S.A. (“IRSA PC”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Río S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to [currency amount] principal amount of 8.750% Notes due 2023, Series No. 2 (the “Securities”) that represent a beneficial interest in the Regulation S Global Security (CUSIP No. _____) (Common Code No. __________; ISIN No. ______) beneficially owned by the undersigned [transferor] (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Rule 144A Global Security (CUSIP No. ______).

In connection with such request, and in respect of such Securities, the Transferor does hereby certify that such Securities are being transferred in accordance with Rule 144A under the Securities Act to a transferee that the Transferor reasonably believes is purchasing the Securities for its own account or an account with respect to which the transferee exercises sole investment discretion, in each case in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction. The transferee and any such account are “qualified institutional buyers” within the meaning of Rule 144A, and each such person has been advised that these Securities is being sold or transferred to it in reliance upon Rule 144A and has received the information, if any, requested by it pursuant to Rule 144A.

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA PC.

[Insert name of Transferor]
By:
	Name:
	Title:

Dated: , 20

93

EX-2.4

EXHIBIT 2.4

EXECUTION COPY

IRSA PROPIEDADES COMERCIALES S.A.,

as Issuer

and

The Bank of New York Mellon,

as Trustee, Co-Registrar,

Principal Paying Agent and Transfer Agent,

The Bank of New York Mellon (Luxembourg) S.A.,

as Luxembourg Paying Agent and

Luxembourg Transfer Agent

and

Banco Santander Río S.A.,

as Registrar, Paying Agent, Transfer Agent and

Representative of the Trustee in Argentina

First Supplemental Indenture

Dated as of March 23, 2016

TABLE OF CONTENTS

		Page
ARTICLE I	DEFINITIONS SECTION	3
Section 1.1.	Certain Terms Defined in the Indenture.	3
Section 1.2.	Definitions.	4
ARTICLE II	FORM AND TERMS OF THE NOTES	4
Section 2.1.	Form and Dating.	4
Section 2.2.	Terms of the Notes.	5
Section 2.3.	Optional Redemption.	7
ARTICLE III	MISCELLANEOUS	7
Section 3.1.	Governing Law.	7
Section 3.2.	Multiple Counterparts.	7
Section 3.3.	Severability.	7
Section 3.4.	Ratification.	7
Section 3.5.	Rights, Protections and Immunities of the Trustee.	7
Section 3.6.	Trustee Not Responsible for Recitals.	7
EXHIBIT A	Form of 8.750% Notes due 2023, Series No. 2	A-1

2

FIRST SUPPLEMENTAL INDENTURE

FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated as of March 23, 2016, between IRSA PROPIEDADES COMERCIALES S.A., a sociedad anónima organized under the laws of the Republic of Argentina (“Argentina”) and domiciled at Moreno 877, 22nd Floor, (C1091AAQ) City of Buenos Aires, Argentina (“IRSA PC”) , incorporated, organized and registered with the Public Registry of Commerce of the City of Buenos Aires (IGJ) on August 29, 1889, under Number 323, Page 6, Book 85 of the Stock Corporations Volume, with a term of duration which expires on August 28, 2087, The Bank of New York Mellon, a corporation organized under the laws of the State of New York authorized to conduct a banking business, as trustee (in such capacity, the “Trustee”), co-registrar (in such capacity, the “Co-Registrar”), principal paying agent (in such capacity, the “Principal Paying Agent” and, together with the Luxembourg Paying Agent (as defined below) and any other paying agents appointed by IRSA PC in their respective capacities as such, the “Paying Agents”) and transfer agent (in such capacity, a “Transfer Agent” and, together with the Luxembourg Transfer Agent (as defined below) and any other transfer agents appointed by IRSA PC in their respective capacities as such, the “Transfer Agents”), The Bank of New York Mellon (Luxembourg) S.A., as paying agent in Luxembourg (the “Luxembourg Paying Agent”) and transfer agent in Luxembourg (the “Luxembourg Transfer Agent”) and Banco Santander Río S.A., a bank duly incorporated and existing under the laws of Argentina, as registrar (in such capacity, the “Registrar”), Paying Agent, Transfer Agent and representative of the Trustee in Argentina (in such capacity, the “Representative of the Trustee in Argentina”).

RECITALS OF IRSA PC

WHEREAS, IRSA PC, the Trustee and the Representative of the Trustee in Argentina executed and delivered an Indenture, dated as of March 23, 2016 (the “Base Indenture” and, as supplemented by this First Supplemental Indenture, the “Indenture”), to provide for the issuance by IRSA PC from time to time of Securities to be issued in one or more Series as provided in the Indenture;

WHEREAS, the issuance and sale of US$360,000,000 aggregate principal amount of a new Series of the Securities of IRSA PC designated as its “8.750% Notes due 2023, Series No. 2” (the “Notes”) have been authorized by resolutions adopted by the Board of Directors of IRSA PC;

WHEREAS, IRSA PC desires to issue and sell US$360,000,000 aggregate principal amount of the Notes on the date hereof;

WHEREAS, Sections 2.1, 2.3 and 7.1 of the Base Indenture provide that IRSA PC, when authorized by a resolution of the Board of Directors of IRSA PC, and the Trustee may amend or supplement the Base Indenture to provide for the issuance of and to establish the form or terms and conditions of Securities of any Series as permitted by the Base Indenture;

WHEREAS, IRSA PC desires to establish the form, terms and conditions of the Notes; and

WHEREAS, all things necessary to make this First Supplemental Indenture a valid supplement to the Base Indenture according to its terms and the terms of the Base Indenture have been done;

NOW, THEREFORE, IRSA PC, the Trustee, the Co-Registrar, the Paying Agents, the Transfer Agents, the Registrar and the Representative of the Trustee in Argentina hereby agree that the following provisions shall supplement the Base Indenture solely with respect to the Notes:

ARTICLE I

DEFINITIONS SECTION

Section 1.1. Provisions of the Base Indenture.

Except insofar as otherwise expressly provided herein, all of the definitions, provisions, terms and conditions of the Base Indenture shall remain in full force and effect. The Base Indenture and this First Supplemental Indenture shall be read, taken and considered as one and the same instrument for all purposes and every Holder of Notes authenticated and delivered hereunder shall be bound hereby. Notwithstanding any other provision of this Section 1.1 or the Base Indenture or this First Supplemental Indenture to the contrary, to the extent any provisions of this First Supplemental Indenture or any Notes issued hereunder shall conflict with any provision of the Base Indenture, the provisions of this First Supplemental Indenture or the Notes, as applicable, shall control in respect of the Notes but not any other Series of Securities.

3

Section 1.2. Definitions.

For all purposes of this First Supplemental Indenture and the Notes, except as otherwise expressly provided or unless the subject matter or context otherwise requires:

(a)	any reference to an “Article” or a “Section” refers to an Article or Section, as the case may be, of this First Supplemental Indenture;
(b)	the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this First Supplemental Indenture as a whole and not to any particular Article, Section or other subsection;
(c)	all terms used in this First Supplemental Indenture and not defined herein have the meanings assigned to them in the Base Indenture;
(d)	the term “Securities,” as defined in the Base Indenture and as used therein (including in any definition therein), shall be deemed to include or refer to, as applicable, the Notes;
(e)	the following terms shall have the meanings given to them in this Section 1.2:

“Comparable Treasury Issue” means the United States Treasury security or securities selected by the Independent Investment Banker as having an actual or interpolated maturity from the applicable Redemption Date to March 23, 2023 that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a maturity most nearly equal to March 23, 2023.

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotation or (2) if fewer than four such Reference Treasury Dealer Quotations are obtained, the average of all such quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by IRSA PC.

”Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

“Pricing Supplement” means the pricing supplement dated March 17, 2016 relating to the Notes, including the accompanying Offering Memorandum dated March 17, 2016.

“Reference Treasury Dealer” means (a) each of Citigroup Global Markets Inc. and J.P. Morgan Securities LLC (or their respective affiliates that are primary U.S. government securities dealers in New York City (each, a “Primary Treasury Dealer”)) and their respective successors and (b) not less than three other Primary Treasury Dealers reasonably designated by the Issuer; provided that if any of the foregoing ceases to be a Primary Treasury Dealer, the Issuer will substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m. (New York City time) on the third Business Day preceding such Redemption Date.

”S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, or any successor thereto.

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

ARTICLE II

FORM AND TERMS OF THE NOTES

Section 2.1. Form and Dating.

The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto. The Notes shall be executed on behalf of IRSA PC by a member of the Board of Directors of IRSA PC and a member of the Supervisory Committee of IRSA PC. The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage. Each Note shall be dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be in minimum denominations of US$500 and integral multiples of US$500 in excess thereof.

The terms and conditions contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture and IRSA PC and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and conditions and to be bound thereby.

(a) Global Securities. The Notes designated herein shall be issued initially in the form of one or more fully registered DTC Global Securities, which shall be deposited with The Depository Trust Company, New York, New York (the “Depositary”) and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by IRSA PC and authenticated by the Trustee.

4

In accordance with Section 2.1 of the Base Indenture, the Notes initially sold within the United States to U.S. Persons that are Qualified Institutional Buyers will be issued in the form of one or more Rule 144A Global Securities. The Notes initially sold outside the United States in reliance on Regulation S under the Securities Act will be issued in the form of one or more Regulation S Global Securities, each in book-entry form without interest coupons, deposited with a custodian for the Depositary and registered in the name of the Depositary or its nominee and otherwise comply with the provisions of Section 2.1 of the Base Indenture. Each of the Global Securities shall be dated the date of its authentication. Global Securities may not be transferred except by the Depositary, in whole and not in part, to another nominee of the Depositary or to a successor of the Depositary or its nominee except as set forth below.

(b) Book-Entry Provisions. This Section 2.1(b) shall apply only to the Global Securities deposited with or on behalf of the Depositary.

Depositary participants shall have no rights either under the Indenture or with respect to any Global Securities held on their behalf by the Depositary or under such Global Securities. The Depositary shall be treated by IRSA PC, the Trustee and any agent of IRSA PC or the Trustee as the absolute owner of such Global Security for all purposes under the Indenture. Notwithstanding the foregoing, nothing herein shall prevent IRSA PC or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and the Depository participants, the operation of customary practices of such Depositary governing the exercise of the rights of an owner of a beneficial interest in the Global Securities.

(c) Certificated Notes. Notes issued in the form of Certificated Securities shall be substantially in the form of Exhibit A hereto, but without including the text referred to therein as applying only to Global Securities. Except as provided in Section 2.7 of the Base Indenture, owners of beneficial interests in the Global Securities will not be entitled to receive physical delivery of Certificated Securities.

(d) Transfer and Exchange of the Notes. The transfer and exchange of beneficial interests in the Global Securities shall be effected through the Depositary, in accordance with the Indenture and the procedures of the Depositary therefor. Beneficial interests in the Global Securities may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the Global Securities in accordance with the terms of the Base Indenture.

Section 2.2. Terms of the Notes.

The following terms relating to the Notes are hereby established:

(a) Title. The Notes shall constitute a Series of Securities having the title “8.750% Notes due 2023, Series No. 2”.

(b) Principal Amount. The aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes in accordance with the Indenture) shall be US$360,000,000. IRSA PC may from time to time, without the consent of the Holders of the Notes, issue additional Notes (in any such case “Additional Notes”) of the same Series as the Notes; provided that such Additional Notes have the same terms and conditions as the Notes (except for the date of issue, the issue price, the applicable legends, the date from which interest accrues and, if applicable, the first payment of interest); and provided further that if the Additional Notes are not fungible for U.S. federal income tax purposes with the previously outstanding Notes, such Additional Notes shall have a separate CUSIP number. Such Additional Notes shall be consolidated with and form a single Series with the previously outstanding Notes.

(c) Stated Maturity. The entire outstanding principal of the Notes shall be payable on March 23, 2023, unless earlier redeemed or repurchased.

(d) Interest Rate; Place and Method of Payment. The rate at which the Notes shall bear interest shall be 8.750% per annum; the date from which interest shall accrue on the Notes shall be March 23, 2016, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for the Notes shall be March 23 and September 23 of each year, beginning September 23, 2016; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in whose names the Notes (or one or more predecessor Notes) are registered at the close of business on the Regular Record Date for such interest, which shall be March 22 or September 22, as the case may be, next preceding such Interest Payment Date (whether or not such date is a Business Day). Interest on the Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Any such interest not punctually paid or duly provided for shall forthwith cease to be payable to the respective Holders on such Regular Record Date, and such defaulted interest, may be paid to the Persons in whose names the Notes (or one or more predecessor Notes) is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than fifteen (15) days prior to such special record date, or may be paid at any time in any other lawful manner not inconsistent with requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in Section 2.9 of the Indenture. Payment of principal and interest on this Note will be made at the Corporate Trust Office of the Trustee or such other office or agency of IRSA PC as may be designated for such purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that each installment of interest and principal on the Notes may at IRSA PC’s option be paid in immediately available funds by transfer to an account maintained by the payee located in the United States.

5

(e) Redemption. The Notes are redeemable at the option of IRSA PC in accordance with Article X of the Base Indenture and Section 2.3 hereof. The Notes are not redeemable at the option of the Holders.

(f) Luxembourg Paying Agent and Transfer Agent. The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg Paying Agent and Luxembourg Transfer Agent, hereby agrees and accepts the terms of, and undertakes to perform its obligations and the specific powers and duties delegated to it (together with such powers and duties that are incidental thereto) under, the Indenture, in each case, subject to the rights, protections, immunities and indemnities granted to it as an “Agent” under the Indenture . As of the date of this First Supplemental Indenture, the office of the Luxembourg Paying Agent and the Luxembourg Transfer Agent is: The Bank of New York Mellon (Luxembourg) S.A., Vertigo Building – Polaris, 2-4 rue Eugène Ruppert, L-2453 Luxembourg.

(g) Sinking Fund Obligation. The Notes will not be subject to any sinking fund.

(h) Mandatory Redemption or Repurchase. IRSA PC shall be required to make an offer to repurchase the Notes as provided in Section 3.21 of the Base Indenture.

(i) Form and Denomination of Notes. The Notes shall be issued in registered form in the denominations specified in Section 2.1 hereof.

(j) Specified Currency. The currency of denomination of the Notes is U.S. dollars. Payment of principal of and interest and premium, if any, Additional Amounts and all other amounts due and owning under the Notes shall be payable in U.S. dollars.

(k) Payment Not Made by Reference to Index. Payments of principal of or interest or premium, if any, on the Notes shall not be determined by reference to any index.

(l) Meetings, Modifications and Waivers. The terms of the Notes and the Indenture may be modified or waived as provide in Article VII of the Base Indenture.

(m) Additional/Different Covenants; Modification to Events of Default. There is no addition to, deletion of or change in any covenants or Events of Default set forth in the Base Indenture as applicable to the Notes.

(n) Other Terms of the Notes. The Notes will benefit from the other terms and conditions set forth in the Base Indenture, as supplemented and/or modified by this First Supplemental Indenture only with respect to the Notes.

(o) Conversion. The Notes are not convertible or exchangeable for shares of common stock or preferred stock of IRSA PC.

(p) Agents. The provisions of Section 3.2 of the Base Indenture shall apply to the Notes.

(q) Defeasance. The Notes are defeasible pursuant to Article XI of the Base Indenture.

Section 2.3. Optional Redemption.

(a) The provisions of Article X of the Base Indenture shall apply to the Notes and shall be supplemented by the following clauses (b) and (c).

(b) Optional Redemption with a Make-Whole Premium. Prior to March 23, 2020, IRSA PC may, at its option, to redeem the Notes, in whole or in part, at any time or from time to time at a redemption price equal to the greater of (1) 100% of the outstanding principal amount of such Notes, and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (excluding accrued but unpaid interest to, but excluding, the applicable Redemption Date), discounted to the applicable Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points (the “Make-Whole Amount”) plus, in either case, accrued and unpaid interest to, but excluding, the applicable Redemption Date, subject to the right of Holders of Notes of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date.

6

(c) Optional Redemption Without a Make-Whole Premium. On and after March 23, 2020, IRSA PC may, at its option, redeem the Notes, in whole or in part, at any time or from time to time at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon, if any, to but excluding the applicable Redemption Date, subject to the right of Holders of Notes of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date, if redeemed during the twelve-month period commencing on March 23 of each of the years indicated below:

Year	Percentage
2020		104.375	%
2021		102.188	%
2022 and thereafter		100.000	%

(d) On and after the Redemption Date for the Notes, interest will cease to accrue on the Notes or any portion thereof called for redemption, unless IRSA PC defaults in the payment of the applicable redemption price. In the event IRSA PC elects to redeem the Notes, IRSA PC will deposit with a Paying Agent, or the Trustee, funds sufficient to pay the applicable redemption price of the Notes to be redeemed on such Redemption Date in accordance with Section 10.2 of the Base Indenture. If less than all of the Notes are to be redeemed, the Notes to be redeemed will be selected in accordance with Section 10.1(d) of the Base Indenture.

(e) All redemption prices with respect to the Notes shall be calculated by IRSA PC.

ARTICLE III

MISCELLANEOUS

Section 3.1. Governing Law.

This First Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York; provided that all matters relating to the due authorization, execution, issuance and delivery of the Notes by IRSA PC, and matters relating to the legal requirements necessary in order for the Notes to qualify as “obligaciones negociables simples no convertibles” under Argentine law, shall be governed by the Negotiable Obligations Law, together with the Argentine Companies Law, the Capital Markets Law and the rules of the CNV and other applicable Argentine laws and regulations.

Section 3.2. Multiple Counterparts.

The parties may sign multiple counterparts of this First Supplemental Indenture. Each signed counterpart shall be deemed an original, but all of them together represent one and the same First Supplemental Indenture.

Section 3.3. Severability.

Each provision of this First Supplemental Indenture shall be considered separable and if for any reason any provision which is not essential to the effectuation of the basic purpose of this First Supplemental Indenture or the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and a Holder shall have no claim therefor against any party hereto.

Section 3.4. Ratification.

The Trustee accepts the trusts created by the Indenture, as supplemented by this First Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented by this First Supplemental Indenture.

Section 3.5. Rights, Protections and Immunities of the Trustee.

All of the rights, protections, benefits, immunities and indemnities afforded or given to the Trustee and the Agents pursuant to the Base Indenture shall apply to and be enforceable by the Trustee and each Agent acting in their respective capacities relating to the Notes and pursuant to this First Supplemental Indenture mutatis mutandi as if set forth and incorporated herein. The Trustee is acting hereunder, not in its individual capacity, but solely in its capacity as Trustee for the Notes under the Indenture.

Section 3.6. Trustee Not Responsible for Recitals.

The recitals contained herein and in the Notes, shall be taken as the statements of IRSA PC, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this First Supplemental Indenture, or any offering materials or of the Notes. The Trustee shall not be accountable for the use or application by IRSA PC of any of the Notes or of the proceeds thereof.

[Remainder of page intentionally left blank.]

7

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first above written.

IRSA PROPIEDADES COMERCIALES S.A.
By:
	Name:
	Title:

By:
	Name:
	Title:

[Signature page to the First Supplemental Indenture]

8

THE BANK OF NEW YORK MELLON, as Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent.
By:
	Name:
	Title:

[Signature page to the First Supplemental Indenture]

9

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A., as Luxembourg Paying Agent and Transfer Agent.
By:
	Name:
	Title:

[Signature page to the First Supplemental Indenture]

10

BANCO SANTANDER RÍO S.A., as Registrar, Paying Agent, Transfer Agent and Representative of the Trustee in Argentina.
By:
	Name:
	Title:
By:
	Name:
	Title:

[Signature page to the First Supplemental Indenture]

11

EXHIBIT A

[FORM OF FACE OF GLOBAL SECURITY]

Registered No.: [R-[__]][S-[__]]

CUSIP No.: [Rule 144A: 463588 AA1][ Regulation S: P5880U AB6]

ISIN No.: [Rule 144A: US463588AA16][ Regulation S: USP5880UAB63]

Registered Holder: [Cede & Co., or registered assigns]

IRSA PROPIEDADES COMERCIALES S.A.

IRSA Propiedades Comerciales S.A. was organized as a stock corporation (sociedad anónima) under the laws of Argentina for a term expiring on August 28, 2087 and was registered on August 29, 1889 under No. 323, Page 6, Book 85, of the Stock Corporations Volume of the Public Registry of Commerce of the City of Buenos Aires, Argentina, and its registered domicile is at Moreno 877, 22nd Floor, City of Buenos Aires, Argentina.

[RULE 144A/ REGULATION S] GLOBAL SECURITY

representing

US$[Aggregate principal amount]

8.750% NOTES DUE 2023, SERIES NO. 2

UNLESS (1) THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO IRSA PROPIEDADES COMERCIALES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND (3) ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF INTERESTS IN THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.

[INCLUDE THE FOLLOWING RESTRICTIVE LEGEND FOR A RULE 144A GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE): THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. (“IRSA PC”) THAT THIS NOTE OR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) TO IRSA PC OR TO ANY DEALERS APPOINTED BY IRSA PC WITH RESPECT TO A PARTICULAR SERIES OF NOTES (EACH, A “DEALER” AND COLLECTIVELY, THE “DEALERS”) OR BY, THROUGH OR IN A TRANSACTION APPROVED BY A DEALER, (II) SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN ACCORDANCE WITH RULE 144A, (III) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AFFORDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, REPRESENTS AND AGREES FOR THE BENEFIT OF IRSA PC THAT IT WILL NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

A-1

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN.]

[INCLUDE THE FOLLOWING RESTRICTIVE LEGEND FOR A REGULATION S GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE): THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF IRSA PROPIEDADES COMERCIALES S.A. THAT NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE AFTER FORTY (40) CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DAY ON WHICH THE NOTES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS NOTE.]

8.750% NOTES DUE 2023, SERIES NO. 2

SERIES: No. 2

SPECIFIED CURRENCY: U.S. dollars

PRINCIPAL AMOUNT: US$[_________]

ORIGINAL ISSUE DATE: [March 23, 2016]

STATED MATURITY: March 23, 2023

OTHER TERMS AND CONDITIONS: As set forth below and in the Indenture

FIXED RATE OF INTEREST: 8.750%

INTEREST COMMENCEMENT DATE: [March 23, 2016]

INTEREST PAYMENT DATE(S): March 23 and September 23

REGULAR RECORDS DATE(S): March 22 and September 22 immediately preceding the relevant Interest Payment Date (whether or not a Business Day)

This [Rule 144A] [Regulation S] Global Security (this “Note” and, together with any other Securities of the same Series as this Note, the “Notes”) is issued pursuant to the Indenture referred to herein.

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

Copies of the Indenture and this Global Security are on file and available for inspection at the Corporate Trust Office of the Trustee and at the office of the Registrar in the City of Buenos Aires and, if and for so long as the Notes are listed on the Luxembourg Stock Exchange for trading on the Euro MTF, and such Exchange shall so require, at the office of the Paying Agent in Luxembourg, in each case as specified in the Indenture. The Holder of this Note is entitled to the benefit of, is bound by, and is deemed to have notice of, all the provisions of the Indenture and the Notes applicable to it. Terms used but not defined herein are used as defined in the Indenture and the on the reverse of this Note.

This Note is a Global Security representing an issue of duly authorized Securities of IRSA PC issued and to be issued in one or more Series pursuant to the Indenture. This Note has been issued in the initial principal amount shown above (as adjusted from time to time on Schedule A hereto, the “Principal Amount”) and with the Specified Currency, Issue Date, Stated Maturity, redemption and other provisions specified herein and in the Indenture, and bearing interest on such Principal Amount at the rate of interest specified herein.

In the event of any conflict between the provisions stated or incorporated herein and the terms and conditions set forth in the Pricing Supplement (as such term is defined in the First Supplemental Indenture referred to herein), the terms and conditions in the Pricing Supplement will prevail. Accordingly, in any such circumstances this Note shall be deemed to have incorporated by reference those terms and conditions set forth in the Pricing Supplement.

A-2

IRSA PC, for value received, hereby promises to pay Cede & Co. or its registered assigns, the Principal Amount in the Specified Currency at the Stated Maturity specified above, unless earlier redeemed in accordance with the terms hereof, and to pay interest from the Interest Commencement Date of this Note specified above (or from the most recent date to which interest has been paid or made available for payment) on the unpaid Principal Amount (and, to the extent lawful, on overdue principal (including premium or redemption amount, if any)) and any interest in respect hereof at the Fixed Rate of Interest per annum specified above on the Interest Payment Date or Dates specified above in each year, commencing with the first such Interest Payment Date falling at least fifteen (15) days after the Issue Date of this Note specified above and at Stated Maturity or any Redemption Date, until the principal hereof shall be paid or made available for payment.

This Note is one of the Series designated above, which term shall mean each original issue of Notes and shall be deemed to include any other Securities in respect of such Series issued pursuant to the Indenture. The Notes, together with any other debt Securities of IRSA PC issued under the Indenture are limited to an aggregate principal amount outstanding at any one time of US$500,000,000 or the equivalent thereof in one or more Specified Currencies; provided, however, that the total amount of the Program and the maximum aggregate principal amount of Securities of all Series that may be Outstanding at any one time under the Indenture may be increased by a resolution of the shareholders of IRSA PC and without the consent of the Holders.

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee by manual signature of one of its authorized signatures, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK; PROVIDED THAT ALL MATTERS RELATING TO THE DUE AUTH

ORIZATION, EXECUTION, ISSUANCE AND DELIVERY OF THE NOTES BY IRSA PC, AND MATTERS RELATING TO THE LEGAL REQUIREMENTS NECESSARY IN ORDER FOR THE NOTES TO QUALIFY AS “OBLIGACIONES NEGOCIABLES SIMPLES NO CONVERTIBLES” UNDER ARGENTINE LAW, SHALL BE GOVERNED BY THE NEGOTIABLE OBLIGATIONS LAW, TOGETHER WITH THE ARGENTINE COMPANIES LAW, THE CAPITAL MARKETS LAW AND THE RULES OF THE CNV AND OTHER APPLICABLE ARGENTINE LAWS AND REGULATIONS.

A-3

IN WITNESS WHEREOF, IRSA PC has caused this Global Security to be duly executed.

Dated: March , 2016		IRSA PROPIEDADES COMERCIALES S.A.
		By:
	Name:
	Title:
		By:
	Name:
	Title:

A-4

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes of the Series designated and referred to in the within-mentioned Indenture, as such is supplemented by the within-mentioned First Supplemental Indenture.

THE BANK OF NEW YORK MELLON, as Trustee

		By:
	Name:
	Title:
Dated: March [ ], 2016

A-5

[FORM OF REVERSE OF GLOBAL SECURITY]

TERMS AND CONDITIONS

General

The Notes are issued as a Series of Securities under the Indenture, dated as of March 23, 2016, among IRSA PC, The Bank of New York Mellon, as trustee (in such capacity, the “Trustee”), co-registrar, principal paying agent and transfer agent (in such capacity, a “Transfer Agent”, and together with any other transfer agents under the Indenture, the “Transfer Agents”), and Banco Santander Río S.A., as registrar (in such capacity, the “Registrar”), Paying Agent, Transfer agent and representative of the Trustee in Argentina, as amended and supplemented by the First Supplemental Indenture thereto, dated as of March 23, 216, among IRSA PC, the Trustee, the Representative of the Trustee in Argentina and The Bank of New York Mellon (Luxembourg) S.A., as paying agent and transfer agent in Luxembourg (as amended or supplemented from time to time, the “Indenture”). Capitalized terms used herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the Indenture, and Holders are referred to the Indenture for a statement of all such terms. To the extent permitted by applicable law, in the event of inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Notes will control.

The following summaries of certain provisions of the Indenture and the Notes do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all of the provisions of the Indenture and the Notes, including the definitions therein of certain terms. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Indenture.

The Notes will qualify as “obligaciones negociables simples no convertibles” under the Negotiable Obligations Law and will be entitled to the benefits set forth therein and subject to the procedural requirements thereof. The Notes will rank pari passu in right of payment with all other existing and future unsecured and unsubordinated indebtedness of IRSA PC (other than obligations preferred by statute or by operation of law).

Unless previously redeemed, the Notes will mature on the date (the “Stated Maturity”) no less than thirty (30) days from their date of issue as specified on the face hereof.

The Notes shall be denominated in the currency (a “Specified Currency”) as specified on the face hereof. Payments on the Notes will be made in the Specified Currency.

The Notes shall bear interest at a fixed rate (a “Fixed Rate Note”). See “Interest Rate” below.

The Notes will not be subject to any sinking fund and will not be redeemable prior to their Stated Maturity, except as provided in the Indenture.

IRSA PC may from time to time, without the consent of Holders of Notes outstanding, create and issue additional Notes of such Series (“Additional Notes”); provided such Additional Notes have the same terms and conditions as the Notes of that Series (except for the date of issue, the issue price, the applicable legends, the date from which interest accrues and, if applicable, the first payment of interest); and provided further that if the Additional Notes are not fungible for U.S. federal income tax purposes with the previously outstanding Notes of the relevant Series, such Additional Notes shall have a separate CUSIP number. The Additional Notes shall be consolidated with and form a single Series with the previously outstanding Series of Notes.

Global Securities are exchangeable in whole or in part for duly executed and issued Certificated Securities in the form established pursuant to the Indenture, with the applicable Restrictive Legends as marked thereon, only if such exchange complies with Section 2.7 of the Base Indenture. Interests in Global Securities are exchangeable or transferable in whole or in part for interests in another Global Security of the same Series, only if such exchange or transfer complies with Section 2.10 of the Base Indenture.

Interest Rate

Each Fixed Rate Note will bear interest from (and including) the issue date (the “Interest Commencement Date”) or from the most recent Interest Payment Date to which interest on such Note has been paid or duly provided for at the fixed rate per annum, until the principal thereof is paid or made available for payment. Interest will be payable on each Interest Payment Date and at Stated Maturity or upon redemption or acceleration, as specified under “Payment of Principal and Interest” below.

A-6

Fixed Rate Notes

Fixed Rate Notes shall bear interest from (and including) the Interest Commencement Date specified above at the rate or rates per annum so specified (the “Fixed Rate(s) of Interest”) payable in arrears on the Interest Payment Date(s) in each year and on the Stated Maturity or upon redemption or acceleration. The first payment of interest will be made on the Interest Payment Date next following the Interest Commencement Date.

Payment of Principal and Interest

Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration or redemption) shall be payable in immediately available funds to the Person in whose name a Security is registered at the close of business on the Regular Record Date next preceding each Interest Payment Date notwithstanding the cancellation of such Securities upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Interest Payment Date; provided that interest payable at Stated Maturity or upon acceleration or redemption shall be payable to the Person to whom principal will be payable; and provided further, that if and to the extent IRSA PC defaults in the payment of the interest, including any Additional Amounts, due on such Interest Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Person in whose names such Notes are registered at the end of a subsequent record date established by IRSA PC by notice given by or on behalf of IRSA PC to the Holders of the Notes not less than fifteen (15) days preceding such special record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest. The first payment of interest on any Note originally issued between a Regular Record Date and an Interest Payment Date shall be made on the Interest Payment Date following the next succeeding Regular Record Date to the registered owner at the close of business on such next succeeding Regular Record Date. The interest so payable, and punctually paid or made available for payment, on any Interest Payment Date, will, as provided in the Indenture, be paid, in immediately available funds, to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on September 22 or March 22 (whether or not a Business Day, as defined in the Indenture), as the case may be, next preceding such Interest Payment Date (the “Regular Record Date”).

Payment of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of any Note at Stated Maturity or upon acceleration or redemption shall be made to the registered Holder on such date in immediately available funds to the person in whose name such note is registered upon surrender of such Note at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Note is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of the Notes to be made other than at Stated Maturity or upon redemption shall be made by check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that (a) the Depositary, as Holder of Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds and (b) a Holder of at least US$1,000,000 in aggregate principal or face amount of Securities shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due. Unless such designation is revoked, any such designation made by such Holder with respect to such Notes shall remain in effect with respect to any future payments with respect to such Notes payable to such Holder.

Payments of interest on any Fixed Rate Note with respect to any Interest Payment Date will include interest accrued to but excluding such Interest Payment Date.

Interest on Fixed Rate Notes will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

If the Stated Maturity for any Fixed Rate Note or the Interest Payment Date for any Fixed Rate Note falls on a day which is not a Business Day, payment of principal (and premium, if any) and interest with respect to such Note will be made on the next succeeding Business Day with the same force and effect as if made on the due date and no interest on such payment will accrue from and after such due date.

A-7

SCHEDULE A

Date   Principal Amount of Certificated Securities or other Global Securities issued in exchange for or upon transfer of an interest in this Global Security   Principal Amount of this Global Security Redeemed or Repurchased   Increase in Principal Amount of this Global Security due to the exchange or transfer of another Global Security (or an interest therein) for an interest in this Global Security   Remaining Principal Amount of this Global Security   Notation made on behalf of the Trustee by  

FORM OF TRANSFER

[Include the following for Notes bearing Restrictive Legends]

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder hereby sells, assigns and transfers unto

(Please print or typewrite name and address including postal code of assignee)

Insert Taxpayer Identification No.:

this Note and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer such amount of said Note on the books of IRSA PC with full power of substitution in the premises.

In connection with any transfer of this Note occurring prior to the date that is one year after the Original Issue Date of this Note (provided that IRSA PC or any affiliate of IRSA PC has not acquired this Note during such one-year period), the undersigned confirms that without utilizing any general advertising or general solicitation:

(check one)

☒ This Note is being transferred pursuant to the exception from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), provided by Rule 144A thereunder (“Rule 144A”) and, upon registration of such transfer, each beneficial owner of this Note will be a “qualified institutional buyer” (as defined in Rule 144A), and each such person has been advised that this Note is being sold or transferred to it in reliance upon Rule 144A and has received the information, if any, requested by it pursuant to Rule 144A; or

<>ÎýáC¨l°NÛèÖÆ ÒY9

‚ã’

☐„³yª çüFš?RÍ5☒ This Note is being transferred pursuant to the exemption from registration under the Securities Act provided by Regulation S under the Securities Act (“Regulation S”), and the address of the person in whose name this Note is to be registered upon transfer is an address outside the United States (as defined in Regulation S); or

☒ This Note is being transferred to a Dealer or to IRSA PC; or

☒ This Note is being transferred other than in accordance with (a), (b) or (c) above, and documents are being furnished to the Trustee or the Transfer Agent which comply with the conditions of transfer set forth in this Note and the Indenture.

If none of the foregoing boxes is checked, the Trustee shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until the conditions to any such registration of transfer set forth herein and in the Indenture shall have been satisfied.

Date:

Signed: ______________________________________

NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatsoever.

A-8

EX-2.5

EXHIBIT 2.5

SECOND SUPPLEMENTAL INDENTURE

SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of May 16, 2022, among IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”), a sociedad anónima organized under the laws of Argentina, IRSA Propiedades Comerciales S.A. (“IRSA PC”), a sociedad anónima organized under the laws of Argentina, The Bank of New York Mellon, a corporation organized under the laws of the State of New York authorized to conduct a banking business, as trustee (the “Trustee”), and Banco Santander Río S.A., a bank duly incorporated and existing under the laws of Argentina, as representative of the Trustee in Argentina (the “Representative of the Trustee in Argentina”).

W I T N E S S E T H

WHEREAS, IRSA PC, the Trustee and the Representative of the Trustee in Argentina executed and delivered an indenture, dated as of March 23, 2016 (as amended, supplemented, waived or otherwise modified prior to the date hereof, the “Indenture”), providing for the issuance by IRSA PC of an aggregate principal amount of US$360,000,000 8.750% Notes due 2023, Series No. 2 (the “Notes”);

WHEREAS, Section 8.1 of the Indenture permits the merger of IRSA PC with and into another Person, provided that the Person into which IRSA PC is merged (i) is a corporation, organized and validly existing under the laws of a Qualified Merger Jurisdiction or any political subdivision thereof and (ii) shall expressly assume, by a supplemental indenture, (x) the due and punctual payment of the principal of, and premium, if any, and interest on all of the Notes, and (y) the performance and observance of every covenant of the Notes and the Indenture on the part of IRSA PC to be performed or observed;

WHEREAS, on September 30, 2021, IRSA and IRSA PC entered into a preliminary merger agreement for the merger of IRSA PC with and into IRSA, with IRSA being the surviving entity, subject to registration by the Argentine securities commission, which merger was approved by the shareholders of IRSA and IRSA PC on December 22, 2021;

WHEREAS, on January 27, 2022, IRSA and IRSA CP entered into a definitive merger agreement and on May [10], 2022, the Argentine securities commission confirmed the registration of the merger with immediate effect;

WHEREAS, IRSA is a a sociedad anónima organized under the laws of Argentina, a Qualified Merger Jurisdiction pursuant to the terms of the Indenture;

WHEREAS, pursuant to Section 7.1(d) of the Indenture, each of IRSA, IRSA PC, the Trustee and the Representative of the Trustee in Argentina is authorized to execute and deliver this Second Supplemental Indenture to amend or supplement the Indenture without the consent of any Holder in order to evidence the assumption of another Person to IRSA PC and the assumption by any such successor of the covenants and obligations of IRSA PC under the Notes and in the Indenture pursuant to Article VIII of the Indenture;

WHEREAS, each of IRSA PC and IRSA has duly authorized the execution and delivery of this Second Supplemental Indenture at Board of Directors’ meeting of each of IRSA PC and IRSA, dated as of September 30, 2021, November 19, 2021 and December 22, 2021 and copies of such resolutions have been delivered to the Trustee;

1

WHEREAS, there has been delivered to the Trustee the Officer’s Certificates and the Opinions of Counsel described in Sections 7.4, 8.3 and 12.5 of the Indenture;

WHEREAS, all other acts and proceedings required by law and the Indenture necessary to authorize the execution and delivery of this Second Supplemental Indenture and to make this Second Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in accordance with its terms, have been complied with or have been duly done or performed; and

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1) Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned such terms in the Indenture.

(2) Agreement to Assume Obligations. IRSA hereby expressly and unconditionally (a) assumes IRSA PC’s obligations for the due and punctual payment of the principal of, and premium, if any, and interest on all of the Notes, and the performance and observance of every covenant of the Notes and the Indenture on the part of IRSA PC to be performed or observed under the Indenture, on the terms and subject to the conditions set forth in the Indenture and (b) agrees to be bound by all other provisions of the Indenture applicable to IRSA PC and to perform all of the obligations and agreements of the IRSA PC under the Indenture and the Notes. IRSA shall be considered the “issuer” under the Notes and the Indenture and assumes all of IRSA PC’s liabilities as the principal debtor under the Indenture and the Notes and to be bound by the terms and conditions therein as fully as if IRSA had been named in the Notes and the Indenture, in place of IRSA PC, as the principal debtor. IRSA hereby agrees that the Notes shall remain in full force and effect notwithstanding the absence of the endorsement of any notation by IRSA on the Notes.

(3) Amendments to Definitions in the Indenture and the Notes. The term “IRSA PC” in the Indenture and the Notes is hereby amended by replacing it with “IRSA”, which shall be defined as “IRSA Inversiones y Representaciones Sociedad Anónima, a sociedad anónima organized under the laws of Argentina and domiciled at Carlos M. Della Paolera 261, 9th Floor, Ciudad Autónoma de Buenos Aires (C1091AAQ), Argentina, incorporated, organized and registered with the Public Registry of Commerce of the City of Buenos Aires (IGJ) on on June 23, 1943, under number 284, on page 291, book 46 of volume A, with a term of duration that expires on April 5, 2043”, and any and all references to “IRSA PC” in the Indenture and/or the Notes shall be replaced with “IRSA”. For the avoidance of doubt, IRSA shall be considered the “issuer” under the Indenture and the Notes.

(4) Effectiveness. This Second Supplemental Indenture shall become effective on the date hereof upon execution of this Second Supplemental Indenture by all of the parties hereto.

2

(5) Governing Law; Waiver of Jury Trial. This Second Supplemental Indenture will be governed by and subject to the provisions of Section 12.7 and Section 12.8 of the Indenture.

(6) Counterparts. This Second Supplemental Indenture may be executed in one or more duplicate counterparts and by electronic transmission and when signed by all of the parties listed below shall constitute a single binding agreement. The words “execution,” “execute,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Second Supplemental Indenture shall be deemed to include electronic signatures, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

(7) Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

(8) Ratification Of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. Upon the execution and delivery of this Indenture by the parties hereto, each reference in the Indenture to “this Indenture,” “hereunder,” “herein” or words of like import shall mean and be a reference to the Indenture, as affected and amended by this Second Supplemental Indenture. This Second Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of a Note heretofore or hereafter authenticated and delivered shall be bound hereby.

(9) Address for Notices. All notices or other communications to be addressed to IRSA PC as contemplated by Section 12.4 of the Indenture shall be addressed to IRSA as follows:

IRSA Inversiones y Representaciones Sociedad Anónima

Carlos M. Della Paolera 261, 9th Floor, Ciudad Autónoma de Buenos Aires

(C1091AAQ), Argentina

Attn.: Chief Financial and Administrative Officer

Email: mgaivironsky@irsa.com.ar / lmagliocco@irsa.com.ar

Tel.: 5411-4323-7444

With a copy (that shall not constitute notice to):

Simpson Thacher & Bartlett LLP

425 Lexington Ave

New York, NY 10017

United States

Attn.: Jaime Mercado / Juan M. Naveira

Email: jmercado@stblaw.com / jnaveira@stblaw.com

Tel.: 212-455-2000

3

(10) The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of, and makes representations with respect to, (a) the validity or sufficiency of this Second Supplemental Indenture, (b) the proper authorization hereof by the other parties hereto by corporate action or otherwise, (c) the due execution hereof by any other party hereto, (d) the consequences (direct or indirect and whether deliberate or inadvertent) of the assumption by IRSA of IRSA PC’s obligations under the Indenture and the Notes provided for herein, (e) the form or substance of this Second Supplemental Indenture, or (f) the validity, sufficiency or correctness of the recitals contained herein, all of which recitals are made solely by IRSA and IRSA PC. All of the provisions contained in the Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of this Second Supplemental Indenture as fully and with like effect as if set forth herein in full. IRSA hereby affirms its obligations under Section 5.6 of the Indenture to indemnify the Trustee against any and all loss, liability or expense (including reasonable attorneys’ fees) incurred by the Trustee in connection with its execution and performance of this Second Supplemental Indenture. This indemnity shall survive the payment of the Notes, the satisfaction and discharge of the Indenture and/or the resignation or removal of the Trustee as expressly provided in Section 5.6 of the Indenture.

(11) Sanctions. Each of IRSA and IRSA PC covenants and represents that neither it nor any of its affiliates, subsidiaries, directors or officers are the target or subject of any sanctions enforced by the U.S. Government, (including, the Office of Foreign Assets Control of the U.S. Department of the Treasury), the United Nations Security Council, the European Union, HM Treasury, or other relevant sanctions authority (collectively “Sanctions”). Each of IRSA and IRSA PC covenants and represents that neither it nor any of its affiliates, subsidiaries, directors or officers will use any payments made pursuant to the Indenture, (i) to fund or facilitate any activities of or business with any person who, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business with any country or territory that is the target or subject of Sanctions, or (iii) in any other manner that will result in a violation of Sanctions by any person.

[Signatures on following page.]

4

IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly executed, all as of the date first above written.

IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANÓNIMA
By:
	Name:
	Title:
By:
	Name:
	Title:

[Signature Page to Second Supplemental Indenture]

5

IRSA PROPIEDADES COMERCIALES S.A. by IRSA Inversiones y Representaciones Sociedad Anónima, as successor
By:
	Name:
	Title:
By:
	Name:
	Title:

[Signature Page to Second Supplemental Indenture]

6

THE BANK OF NEW YORK MELLON
as Trustee
By:
	Name:
	Title:

[Signature Page to Second Supplemental Indenture]

7

BANCO SANTANDER RIO S.A.
as Representative of the Trustee in Argentina
By:
	Name:
	Title:
By:
	Name:
	Title:

[Signature Page to Second Supplemental Indenture]

8

EX-2.6

EXHIBIT 2.6

IRSA Inversiones y Representaciones Sociedad Anónima

as Issuer,

The Bank of New York Mellon

as Trustee, Co-Registrar,

Principal Paying Agent and Transfer Agent,

and

Banco Santander Argentina S.A.

as Registrar, Paying Agent, Transfer Agent and

Representative of the Trustee in Argentina

INDENTURE

Dated as of July 8, 2022

US$171,202,815

8.750% Senior Notes due 2028

1

TABLE OF CONTENTS

		Page
ARTICLE I GENERAL		3
Section 1.1.	Definitions.	3
Section 1.2.	Agents.	20
ARTICLE II SECURITIES		21
Section 2.1.	Forms.	21
Section 2.2.	Form of Trustee’s Certificate of Authentication.	23
Section 2.3.	Additional Securities.	23
Section 2.4.	Authentication and Delivery of Securities.	23
Section 2.5.	Execution of Securities.	24
Section 2.6.	Certificate of Authentication.	24
Section 2.7.	Global Securities.	24
Section 2.8.	Denomination and Date of Securities.	25
Section 2.9.	Payments of Principal and Interest.	25
Section 2.10.	Registration, Transfer and Exchange of Securities.	26
Section 2.11.	Mutilated, Defaced, Destroyed, Stolen and Lost Securities; Cancellation and Destruction of Securities.	31
Section 2.12.	Purchase.	31
ARTICLE III COVENANTS OF IRSA		31
Section 3.1.	Payment of Principal and Interest.	31
Section 3.2.	Offices for Payments, etc.	31
Section 3.3.	Appointment to Fill a Vacancy in Office of Trustee.	33
Section 3.4.	Payments and Paying Agents.	33
Section 3.5.	Taxation.	35
Section 3.6.	Maintenance of Books and Records.	37
Section 3.7.	Status and Ranking.	37
Section 3.8.	Listing.	37
Section 3.9.	Maintenance of Corporate Existence; Properties.	37
Section 3.10.	Compliance with Law.	37
Section 3.11.	Reports to Holders.	38
Section 3.12.	Other Information.	38
Section 3.13.	Notice of Default.	39
Section 3.14.	Further Actions.	39
Section 3.15.	Suspension of Covenants.	39
Section 3.16.	Limitation on Incurrence of Additional Indebtedness.	40
Section 3.17.	Limitation on Restricted Payments.	43
Section 3.18.	Limitation on Liens.	44
Section 3.19.	Limitation on Transactions with Affiliates.	44
Section 3.20.	Conduct of Business.	45
Section 3.21.	Change of Control.	45

i

ARTICLE IV DEFAULTS AND REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT		47
Section 4.1.	Events of Default.	47
Section 4.2.	Collection of Indebtedness by Trustee.	49
Section 4.3.	Application of Proceeds.	50
Section 4.4.	Suits for Enforcement.	51
Section 4.5.	Restoration of Rights on Abandonment of Proceedings.	51
Section 4.6.	Limitations on Suits by Securityholders.	51
Section 4.7.	Unconditional Right of Securityholders to Institute Certain Suits.	51
Section 4.8.	Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.	52
Section 4.9.	Control by Securityholders.	52
Section 4.10.	Waiver of Past Defaults.	52
Section 4.11.	Payments after a Default.	53
Section 4.12.	Notice of Events of Default.	53
ARTICLE V CONCERNING THE TRUSTEE		53
Section 5.1.	Duties and Responsibilities of the Trustee.	53
Section 5.2.	Certain Rights of the Trustee.	55
Section 5.3.	Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof.	57
Section 5.4.	Trustee and Agents May Hold Securities; Collections, etc.	57
Section 5.5.	Moneys Held By Trustee.	58
Section 5.6.	Compensation and Indemnification of Trustee and Its Prior Claim.	58
Section 5.7.	Right of Trustee to Rely on Officer’s Certificate, etc.	58
Section 5.8.	Persons Eligible for Appointment as Trustee.	59
Section 5.9.	Resignation and Removal; Appointment of Successor Trustee.	59
Section 5.10.	Acceptance of Appointment by Successor Trustee.	59
Section 5.11.	Merger, Conversion, Consolidation or Succession to Business of Trustee.	60
Section 5.12.	Representative of the Trustee in Argentina.	61
Section 5.13.	Application to Agents and to the Representative of the Trustee in Argentina.	61
Section 5.14.	Application to Agents.	62
ARTICLE VI CONCERNING THE SECURITYHOLDERS		62
Section 6.1.	Evidence of Action Taken by Securityholders.	62
Section 6.2.	Proof of Execution of Instruments and of Holding of Securities; Record Date.	63
Section 6.3.	Holders to Be Treated as Owners.	63
Section 6.4.	Securities Owned by IRSA Deemed Not Outstanding.	63
Section 6.5.	Right of Revocation of Action Taken.	64
Section 6.6.	Securityholders’ Meetings.	65
Section 6.7.	Preservation of Information; Communications to Holders.	67
Section 6.8.	Reports by IRSA.	67

ii

ARTICLE VII SUPPLEMENTAL INDENTURES		68
Section 7.1.	Supplemental Indentures Without Consent of Securityholders.	68
Section 7.2.	Supplemental Indentures With Consent of Securityholders.	69
Section 7.3.	Effect of Supplemental Indenture.	70
Section 7.4.	Documents to Be Given to the Trustee.	70
Section 7.5.	Notation on Securities in Respect of Supplemental Indentures.	70
Section 7.6.	Conformity with Negotiable Obligations Law.	70
ARTICLE VIII MERGER, CONSOLIDATION, SALE OR CONVEYANCE		71
Section 8.1.	IRSA May Consolidate, etc., on Certain Terms.	71
Section 8.2.	Surviving Entity Substituted.	71
Section 8.3.	Documents to Trustee.	72
ARTICLE IX SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS		72
Section 9.1.	Satisfaction and Discharge of Indenture.	73
Section 9.2.	Application by Trustee of Funds Deposited for Payment of Securities.	73
Section 9.3.	Repayment of Moneys Held by Paying Agent.	73
Section 9.4.	Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years.	74
ARTICLE X REDEMPTION AND REPURCHASE OF SECURITIES		74
Section 10.1.	Notice of Redemption; Partial Redemptions.	74
Section 10.2.	Payment of Securities Called for Redemption.	75
Section 10.3.	Exclusion of Certain Securities from Eligibility for Selection for Redemption.	76
Section 10.4.	Redemption at the Option of IRSA for Taxation Reasons.	76
ARTICLE XI DEFEASANCE		79
Section 11.1.	IRSA’s Option to Effect Total Defeasance or Partial Defeasance.	79
Section 11.2.	Total Defeasance.	79
Section 11.3.	Partial Defeasance.	79
Section 11.4.	Conditions to Total Defeasance and Partial Defeasance.	80
Section 11.5.	Deposit in Trust; Miscellaneous.	82
Section 11.6.	Reinstatement.	83

iii

ARTICLE XII MISCELLANEOUS		83
Section 12.1.	Shareholders, Officers and Directors of IRSA Not Subject to Individual Liability.	83
Section 12.2.	Provisions of Indenture for the Sole Benefit of Parties and Securityholders.	83
Section 12.3.	Successors and Assigns of IRSA Bound by Indenture.	84
Section 12.4.	Notices and Demands on IRSA, Trustee and Securityholders.	84
Section 12.5.	Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein.	86
Section 12.6.	Payments Due on Non-Business Days.	87
Section 12.7.	Governing Law; Consent to Jurisdiction; Waiver of Immunity; Currency Indemnity.	87
Section 12.8.	Waiver of Jury Trial.	89
Section 12.9.	Severability.	89
Section 12.10.	Counterparts.	89
Section 12.11.	Effect of Headings.	90
Section 12.12.	USA PATRIOT Act.	90

iv

EXHIBITS

Exhibit A	--	Form of Global Security
Exhibit B	--	Form of Certificated Security
Exhibit C	--	Form of Certificate for Exchange or Transfer from Rule 144A Global Security to Regulation S Global Security during the Restricted Period
Exhibit D	--	Form of Certificate for Exchange or Transfer from Rule 144A Global Security to Regulation S Global Security after the Restricted Period
Exhibit E	--	Form of Certificate for Exchange or Transfer from Regulation S Global Security to Rule 144A Global Security

v

THIS INDENTURE, dated as of July 8, 2022 (this “Indenture”), among IRSA Inversiones y Representaciones Sociedad Anónima, a sociedad anónima organized under the laws of the Republic of Argentina (“Argentina”) and domiciled at Carlos M. Della Paolera 261, 9^th Floor (C1001ADA), City of Buenos Aires, Argentina (“IRSA”), incorporated, organized and registered with the Public Registry of Commerce of the City of Buenos Aires (IGJ) on June 23, 1943, under Number 284, Page 291, Book 66, volume A, with a term of duration which expires on April 5, 2043, The Bank of New York Mellon, a corporation organized under the laws of the State of New York authorized to conduct a banking business, as trustee (in such capacity, the “Trustee”), co-registrar (in such capacity, the “Co-Registrar”), principal paying agent (in such capacity, the “Principal Paying Agent”, and together with any other paying agents appointed by IRSA in their respective capacities as such, the “Paying Agents”) and transfer agent (in such capacity, a “Transfer Agent”, and together with any other transfer agents appointed by IRSA in their respective capacities as such, the “Transfer Agents”), and Banco Santander Argentina S.A., a bank duly incorporated and existing under the laws of Argentina, as registrar (in such capacity, the “Registrar”), Paying Agent, Transfer Agent and representative of the Trustee in Argentina (in such capacity, the “Representative of the Trustee in Argentina”).

W I T N E S S E T H :

WHEREAS, IRSA has duly authorized the issuance of its 8.750% Senior Notes due 2028 (the “Securities”) pursuant to the Board of Directors meeting held on May 16, 2022;

WHEREAS, the Securities will be issued under IRSA’s Global Security Program, authorized, by resolution of its shareholders at meetings held on October 31, 2017, October 30, 2019, and December 22, 2021, and resolution of its Board of Directors at meetings held on July 3, 2018 and March 2, 2022, (the “Program”) which provides for the issuance from time to time of up to an aggregate principal amount outstanding at any one time of US$750,000,000 (or its equivalent in other currencies or units of value) of debt securities in one or more series as may be determined by IRSA from time to time;

WHEREAS, the Program has been authorized by the Argentine Comisión Nacional de Valores (the “CNV”) (National Securities Commission) by its Resolution No. RESFC-2019-20153-APN-DIR#CNV dated March 20, 2019, Disposition No. DI-2020-32-APN-GE#CNV dated June 29, 2020, and Disposition No. DI-2022-8-APN-GE#CNV dated April 22, 2022;

WHEREAS, the Securities will qualify as “obligaciones negociables simples no convertibles” under Argentine Law No. 23,576, as amended among others, by the Productive Financing Law No. 27,440 (the “Negotiable Obligations Law”), Argentine Law No. 26,831, as amended, (the “Capital Markets Law”), the rules of the CNV and any other Argentine applicable laws and regulations;

2

WHEREAS, IRSA has duly authorized the execution and delivery of this Indenture to provide, among other things, for the authentication, delivery and administration of Securities issued on and after the date hereof;

WHEREAS, IRSA is an Argentine company engaged in the real estate business in Argentina, and as of March 31, 2022, its (i) capital stock was Ps. 811 million; (ii) its net worth was Ps. 126,283 million; and (iii) its unsecured indebtedness was Ps. 62,972 million and it had no secured indebtedness;

WHEREAS, the Trustee has agreed to act as Trustee under this Indenture on the following terms and conditions; and

WHEREAS, all things necessary to make this Indenture a valid indenture and agreement according to its terms have been done.

NOW, THEREFORE, in consideration of the premises and the purchases of the Securities by the Holders (as defined below) thereof, the parties hereto mutually covenant and agree for the equal and proportionate benefit of the Holders from time to time of the Securities as follows:

ARTICLE I

GENERAL

 Section 1.1. Definitions. The following terms (except as otherwise expressly provided or unless the context otherwise clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.1. References to the schedules and exhibits shall be construed to refer to the schedules and exhibits to this Indenture. The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article I have the meanings assigned to them in this Article I and include the plural as well as the singular.

“Acquired Indebtedness” means Indebtedness of a Person existing at the time such Person merges or consolidates with IRSA or is assumed by IRSA in connection with the acquisition of assets from such Person.  Such Indebtedness will be deemed to have been Incurred at the time such Person merges or consolidates with IRSA or at the time such Indebtedness is assumed by IRSA in connection with the acquisition of assets from such Person.

“Additional Amounts” has the meaning set forth in Section 3.5.

“Additional Securities” means IRSA’s  8.750% Senior Notes due 2028 originally issued after the Issue Date pursuant to Section 2.3, including any replacement Securities issued therefor.

3

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person.  The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.  For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

“Agent” or “Agents” means any Registrar, Co-Registrar, Transfer Agent, Paying Agent or other agent appointed by IRSA pursuant to this Indenture.

 “Applicable Jurisdiction” has the meaning set forth in Section 10.4(a).

“Applicable Tax Law” has the meaning set forth in Section 3.1(b).

“Applicable Taxes” has the meaning set forth in Section 3.5.

“Argentina” means the Republic of Argentina.

“Argentine Civil and Commercial National Code” means the Argentine Law No. 26,994, as amended and supplemented from time to time (Código Civil y Comercial de la Nación).

“Argentine Companies Law” means the Argentine Law No. 19,550, as amended and supplemented from time to time (Ley General de Sociedades).

“Argentine Discount Bonds” means the Discount Bonds due December 2033 denominated in U.S. dollars, euro and Pesos, issued by Argentina.

“Argentine Par Bonds” means the Par Bonds due December 2038 denominated in U.S. dollars, euro and Pesos, issued by Argentina.

“Asset Acquisition” means:   

(1)	an investment by IRSA or any Subsidiary in any other Person pursuant to which such Person becomes a Subsidiary, or is merged with or into IRSA or any Subsidiary; or
(2)	the acquisition by IRSA or any Subsidiary of the assets of any Person (other than a Subsidiary of IRSA) which constitute all or substantially all of the assets of such Person or comprises any division or line of business of such Person or any other properties or assets of such Person other than in the ordinary course of business.

4

“Asset Sale” means any direct or indirect sale, disposition, issuance, conveyance, transfer, lease, assignment or other transfer, including a sale and leaseback transaction (each, a “disposition”) by IRSA or any Restricted Subsidiary of:

(a)	any Capital Stock of any Subsidiary (but not Capital Stock of IRSA); or
(b)	any property or assets (other than cash or cash equivalents or Capital Stock of IRSA) of IRSA or any Subsidiary;

Notwithstanding the foregoing, the following items will not be deemed to be Asset Sales:

(1)	the disposition of all or substantially all of the assets of IRSA and its Subsidiaries as permitted under Article VIII;
(2)	sales, leases, conveyances or other dispositions, including, without limitation, exchanges or swaps of real estate (including properties under development for sale and completed properties for sale) in the ordinary course of business;
(3)	a disposition to IRSA or a Subsidiary, including a Person that is or will become a Subsidiary immediately after the disposition;
(4)	any transaction that involves assets or Capital Stock of a Subsidiary of IRSA having a Fair Market Value of less than US$2,000,000 (or the equivalent thereof in another currency at the time of determination);
(5)	an issuance or sale of Capital Stock by a Subsidiary of IRSA that is offered on a pro rata basis to IRSA and its Subsidiaries, on the one hand, and minority holders of Capital Stock of a Subsidiary, on the other hand (or on less than a pro rata basis to any minority holder);
(6)	any sale or other disposition of damaged, worn-out, obsolete or no longer useful assets or properties in the ordinary course of business;
(7)	any sale or other disposition of assets received by IRSA or any of its Subsidiaries upon the foreclosure on a Lien in the ordinary course of business;
(8)	any transfer, assignment or other disposition deemed to occur in connection with creating or granting any Permitted Lien;
(9)	a disposition of accounts receivable in connection with a Receivables Transaction; and
(10)	the good faith surrender or waiver of contract rights, tort claims or statutory rights in connection with a settlement.

“Asset Sale Transaction” means any Asset Sale and, whether or not constituting an Asset Sale, (1) any sale or other disposition of Capital Stock and (2) any sale or other disposition of property or assets excluded from the definition of Asset Sale.

5

 “Authorized Person” means (i) in the case of the execution of any Security on behalf of IRSA, a member of the Board of Directors and a member of the Supervisory Committee of IRSA, and (ii) in the case of any other action to be taken by or on behalf of IRSA pursuant hereto, any Officer of IRSA duly authorized in writing to take actions under this Indenture on behalf of IRSA and notified to the Trustee in writing.

“Board of Directors” means, as to any Person, the board of directors, management committee or similar governing body of such Person or any duly authorized committee thereof.

“BYMA” means Bolsas y Mercados Argentinos S.A.

“Business Day” means, any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in New York City or the City of Buenos Aires.

“Capital Markets Law” has the meaning set forth in the fourth recital to this Indenture.

“Capital Stock” means:

(1)	with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of Common Stock and Preferred Stock of such Person;
(2)	with respect to any Person that is not a corporation, any and all partnership or other equity or ownership interests of such Person; and
(3)	any warrants, rights or options to purchase any of the instruments or interests referred to in clause (1) or (2) above.

“Capital Lease Obligations” means, as to any Person, the obligations of such Person under a lease that are required to be classified and accounted for as capital lease obligations under IFRS.  For purposes of this definition, the amount of such obligations at any date will be the capitalized amount of such obligations at such date, determined in accordance with IFRS.

“Certificated Security” means a Security issued in certificated, non-global form, substantially in the form of Exhibit B hereto.

“Change in Tax Law” has the meaning set forth in Section 10.4.

“Change of Control” shall be deemed to occur if any Person (as defined below) or Group other than one or more of the Permitted Holders is or becomes the Beneficial Owner (as defined below), directly or indirectly, in the aggregate of more than 50% of the total voting power of the Voting Stock of IRSA and such other Person or Group is entitled to elect a majority of the Board of Directors of IRSA (including a Surviving Entity, if applicable).

6

For purposes of this definition:

(a)	“Beneficial Owner” will have the meaning specified in Rules 13d-3 and 13d-5 under the Exchange Act;
(b)	“Person” will have the meaning for “person” as used in Sections 13(d) and 14(d) of the Exchange Act; and
(c)	the Permitted Holders or any other Person or Group will be deemed to be Beneficial Owners of any Voting Stock of a corporation held by any other corporation (the “parent corporation”) so long as the Permitted Holders or such other Person or Group, as the case may be, beneficially own, directly or indirectly, in the aggregate at least 50% of the voting power of the Voting Stock of the parent corporation.

“Change of Control Payment” has the meaning set forth under Section 3.21.

“Change of Control Payment Date” has the meaning set forth under Section 3.21.

“Change of Control Triggering Event” means the occurrence of a Change of Control.

“CNV” has the meaning set forth in the third recital to this Indenture.

“Code” means the United States Internal Revenue Code of 1986, as amended as of the date of the Exchange Offer Memorandum.

“Commodity or Raw Material Agreement” means any commodity or raw material futures contract, commodity or raw materials option, or any other agreement designed to protect against or manage exposure to fluctuations in commodity or raw materials prices.

 “Common Stock” of any Person means any and all shares, interests or other participations in, and other equivalents (however designated and whether voting or non-voting) of such Person’s common equity interests, whether outstanding on the Issue Date or issued after the Issue Date, and includes, without limitation, all series and classes of such common equity interests.

“Company Order” means a written statement, request or order of IRSA signed in its name by an Officer of IRSA, and delivered to the Trustee.

7

“Consolidated EBITDA” of any Person means, on any date of determination, on a consolidated basis, the sum of the following, without duplication:

(1)	Consolidated operating income of such Person and its Subsidiaries for the twelve (12)-month period ending on the fiscal quarter immediately preceding such date of determination, plus
(2)	Depreciation and amortization and any other Consolidated Non-cash Charges of such Person and its Subsidiaries (to the extent deducted in determining consolidated operating income) for such period,

 in each case, as determined in accordance with IFRS.

“Consolidated Interest Coverage Ratio” means, for any Person as of any date of determination, the ratio of the aggregate amount of Consolidated EBITDA of such Person and its Subsidiaries for the four most recent full fiscal quarters for which financial statements are available ending prior to the date of such determination (the “Four Quarter Period”) to Consolidated Interest Expense for such Person for such Four Quarter Period.  For purposes of this definition, “Consolidated EBITDA” and “Consolidated Interest Expense” will be calculated after giving effect on a pro forma basis in accordance with Regulation S-X under the Securities Act for the period of such calculation to:

(1)

the Incurrence or repayment or redemption of any Indebtedness (including Acquired Indebtedness) of such Person or any of its Subsidiaries, and the application of the proceeds thereof, including the Incurrence of any Indebtedness (including Acquired Indebtedness), and the application of the proceeds thereof, giving rise to the need to make such determination, occurring during such Four Quarter Period or at any time subsequent to the last day of such Four Quarter Period and on or prior to such date of determination, to the extent, in the case of an Incurrence, such Indebtedness is outstanding on the date of determination, as if such Incurrence and the application of the proceeds thereof, and any repayment or redemption of any Indebtedness occurred on the first day of such Four Quarter Period; and

(2)

any Asset Sale Transaction or Asset Acquisition by such Person or any of its Subsidiaries, including any Asset Sale Transaction or Asset Acquisition giving rise to the need to make such determination occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to such date of determination, as if such Asset Sale Transaction or Asset Acquisition occurred on the first day of the Four Quarter Period.

8

Furthermore, in calculating “Consolidated Interest Expense” for purposes of determining the denominator (but not the numerator) of this “Consolidated Interest Coverage Ratio,”

(a)	interest on outstanding Indebtedness determined on a fluctuating basis as of the date of determination and which will continue to be so determined thereafter will be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on such date of determination;
(b)	if interest on any Indebtedness actually Incurred on such date of determination may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on such date of determination will be deemed to have been in effect during the Four Quarter Period;
(c)	notwithstanding clause (a) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by Hedging Transactions, will be deemed to accrue at the rate per annum resulting after giving effect to the operation of such agreements;
(d)	interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of IRSA to be the rate of interest implicit in such Capital Lease Obligation in accordance with IFRS; and
(e)	for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.

“Consolidated Interest Expense” means, for any Person for any period, the cash and non-cash interest expense of such Person and its Subsidiaries for such period, net of all interest income for such period, determined on a consolidated basis in accordance with IFRS.

“Consolidated Non-cash Charges” means, for any Person for any period, the aggregate depreciation, amortization and other non-cash expenses or losses of such Person and its Subsidiaries for such period, determined on a consolidated basis in accordance with IFRS.

“Consolidated Tangible Assets” means, for any Person at any time, the total consolidated assets of such Person and its Subsidiaries as set forth on the balance sheet as of the most recent fiscal quarter of such Person, prepared in accordance with IFRS, less Intangible Assets.

“Control” of any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

“Co-Registrar” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Corporate Trust Office” means in the case of the Trustee or the Registrar, the office of the Trustee or the Registrar at which the corporate trust business of the Trustee or Registrar, as the case may be, shall, at any particular time, be principally administered, which office, in the case of the Trustee, is located on the date hereof at 240 Greenwich Street, 7E, New York, New York 10286, Attention: Corporate Trust Department, and means, in the case of the Registrar, the office or agency of the Registrar at which at any particular time the corporate trust business of the Registrar shall be principally administered, which office, at the date of this Indenture is located at Av. Juan de Garay 151, City of Buenos Aires, Argentina, or such other location as the Trustee or the Registrar may advise IRSA in writing.

9

“Covenant Suspension Event” has the meaning set forth in Section 3.15.

“Currency Agreement” means, in respect of any Person, any foreign exchange contract, currency swap agreement or other similar agreement as to which such Person is a party designed to hedge foreign currency risk of such Person.

 “Deeply Subordinated Indebtedness” means all Indebtedness of IRSA (1) which will not have the benefit of any negative pledge covenant, collateral or security interest, (2) the terms of which provide that, in the event that (a) an installment of interest with respect to such Indebtedness is not paid on the applicable interest payment date or (b) the principal of, or premium, if any, on any such Indebtedness is not paid on the stated maturity or other date set for redemption, then the obligation to make such payment on such interest payment date, maturity date or other redemption date will not be a default under such Indebtedness until after the maturity date of the Securities, and (3) the terms of which provide that no amount will be payable in bankruptcy, liquidation or any similar proceeding with respect to IRSA until all claims of senior creditors of IRSA, including, without limitation, the Holders of the Securities, admitted in such proceeding have been satisfied.

“Defeasance Trustee” has the meaning set forth in Section 11.4.

“Default” means an event or condition the occurrence of which is, or with the lapse of time or the giving of notice or both would be, an Event of Default.

“Depositary” means DTC or any other depositary institution hereinafter appointed by IRSA that is a clearing agency registered under the Exchange Act or other applicable statute or legislation.

“DTC” means The Depository Trust Company (or its successors).

“Electronic Means” has the meaning set forth in Section 12.4.

“Event of Default” means any event or condition specified as such in Section 4.1.

“Exchange Act” means the United States Securities Exchange Act of 1934 (or any successor statute), as amended, and the rules and regulations of the SEC promulgated thereunder.

10

“Exchange Offer Memorandum” means the exchange offer memorandum prepared by IRSA, dated as of May 16, 2022, as amended by the early participation results press release dated June 2, 2022, and as further amended by the extension press releases dated June 16 and 28, 2022, in connection with the offer to exchange the Existing Notes for the Securities.

“Existing Notes” means the 8.750% notes due 2023 originally issued by IRSA PC  pursuant to the terms of the indenture dated March 23, 2016, as supplemented and amended by the first supplemental indenture on March 23, 2016, entered among IRSA PC, as issuer, The Bank of New York Mellon, as trustee and the representative of the trustee in Argentina, among others.

“Fair Market Value” means, with respect to any asset, the price (after deducting any liabilities relating to such assets) which could be negotiated in an arm’s-length free market transaction, for cash, between an informed and willing seller and an informed and willing buyer, neither of which is under any compulsion to complete the transaction; provided that the Fair Market Value of any such asset or assets will be determined conclusively by the Board of Directors of IRSA acting in good faith; and provided further that with respect to any asset having a price less than US$10,000,000 (or the equivalent thereof in another currency at the time of determination), only the good faith determination of IRSA’s senior management shall be required.

“FATCA” means (a) Sections 1471 to 1474 of the Code (including regulations and official guidance thereunder), (b) any successor version thereof that is substantially comparable and not materially more onerous to comply with, (c) any agreement entered into pursuant to Section 1471 (b) of the Code or (d) any law, regulation, rule or practice implementing an intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.

“First Call Date” has the meaning set forth in Section 10.4.

“Fitch” means Fitch Ratings Ltd. and its successors and assigns.

“Four Quarter Period” has the meaning set forth in the definition of Consolidated Interest Coverage Ratio.

“Global Security” means a Security issued in global form and registered in the name of a Depositary or its nominee, substantially in the form of Exhibit A.  The term “Global Security” includes any Rule 144A Global Security and any Regulation S Global Security.

“Government Agency” means any public legal entity or public agency, created by federal, state or local government, or any other legal entity now existing or hereafter created, or now or hereafter owned or controlled, directly or indirectly, by any public legal entity or public agency, including any central bank.

11

“Group” means two or more Persons that act together as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding, voting or disposing of Capital Stock of another Person.

“Hedging Transactions” means the obligations of any Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodity or Raw Material Agreement.

“Holder”, “Holder of Securities”, “Securityholder” or other similar terms mean, with respect to any Security, the Person in whose name at the time such Security is registered in the Register.

“IFRS” means International Financial Reporting Standards, as issued by the International Accounting Standards Board, as in effect from time to time.

“Incur” means, with respect to any Indebtedness or other obligation of any Person, to create, issue, incur (including by conversion, exchange or otherwise), assume, guarantee or otherwise become liable in respect of such Indebtedness or other obligation on the balance sheet of such Person (and “Incurrence,” “Incurred” and “Incurring” will have meanings correlative to the preceding).

“Indebtedness” means, with respect to any Person, without duplication: (a) all obligations of such Person for borrowed money; (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (c) all obligations of such Person under any lease that are required to be classified and accounted for as capital lease obligations under IFRS; (d) all obligations due and payable under letters of credit, banker’s acceptances or similar credit transactions, including reimbursement obligations in respect thereof; (e) guarantees of such Person in respect of Indebtedness referred to in clauses (a) through (d) above and clause (f) below; and (f) all Indebtedness of any other Person of the type referred to in clauses (a) through (e) which is secured by any Lien on any property or asset of such Person.

“Indenture” means this instrument as originally executed and delivered or, if amended or supplemented as herein provided, as so amended or supplemented or both, and such term shall include any such amendment or supplement.

“Independent Financial Advisor” means an accounting firm, appraisal firm, investment banking firm or consultant of recognized standing that is, in the judgment of IRSA’s Board of Directors, qualified to perform the task for which it has been engaged and which is independent in connection with the relevant transaction.

“Instructions” has the meaning set forth in Section 12.4.

“Intangible Assets” means with respect to any Person, all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights and all other items which would be treated as intangibles on the consolidated balance sheet of such Person prepared in accordance with IFRS.

12

“Interest Payment Date” means July 8 and January 8 of each year.

“Interest Rate Agreement” of any Person means any interest rate hedging agreement (including, without limitation, interest rate swaps, caps, floors, collars, derivative instruments and similar agreements) and/or other types of hedging agreements designed to hedge interest rate risk of such Person.

“Investment Grade Rating” means a rating equal to or higher than (i) Baa3 (or the equivalent) by Moody’s, and its successors and assigns or (ii) BBB– (or the equivalent) by S&P or Fitch, or the equivalent of such global ratings.

“IRSA” has the meaning set forth in the preamble to this Indenture.

“IRSA PC” means IRSA Propiedades Comerciales S.A., the original issuer of the Existing Notes, which entity was merged by absorption with IRSA.

“Issue Date” means the first date of issuance of Securities under this Indenture.

“Lien” means any lien, mortgage, pledge, security interest or similar encumbrance.

“MAE” means the Mercado Abierto Electrónico S.A.

“Moody’s” means Moody’s Investors Service, Inc. and its successors and assigns.

“Negotiable Obligations Law” has the meaning set forth in the fourth recital to this Indenture.

“Officer” means, when used in connection with any action to be taken by IRSA, the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, and/or any member of the Board of Directors of IRSA.

“Officer’s Certificate” means, when used in connection with any action to be taken by IRSA, a certificate signed by an Officer of IRSA and delivered to the Trustee.

“Opinion of Counsel” means an opinion in writing signed by legal counsel who, unless otherwise indicated, may be an employee of or counsel to IRSA, and who shall be reasonably acceptable to the Trustee.

“Outstanding” when used with reference to Securities, subject to the provisions of Section 6.4, shall mean, as of any particular time, all Securities authenticated and delivered by the Trustee under this Indenture, except:

(1)	Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;
(2)	Securities or portions thereof that have been called for redemption or tendered for repurchase in accordance with their terms or which have become due and payable at maturity or otherwise and with respect to which monies sufficient to pay the principal thereof and any premium, interest, Additional Amounts or other amount thereon shall have been therefor deposited with the Trustee; or
(3)	Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to Section 2.11.

13

“Paying Agents” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Payment Date” means each Interest Payment Date, each Redemption Date, the Stated Maturity, any date fixed for repurchase and any other date on which any payment of principal, interest or any other amount is due.

“Permitted Business” means any business or activity in which IRSA or any of its Subsidiaries or Affiliates is directly or indirectly engaged (including though the ownership of Capital Stock) on the Issue Date, any real estate or retail business or activity and/or any business or activity related, ancillary or complementary to any of the foregoing including, without limitation, any such activities outside of Argentina.

“Permitted Holders” means any one or more of (i) Eduardo S. Elsztain, Saúl Zang and Alejandro G. Elsztain and their respective parents, brothers, sisters, children and other family members and any of the descendants, heirs, legatees and successors and any spouses or former spouses of any of the foregoing, (ii) any estate, guardian, custodian and other legal representative of any of the foregoing and (iii) any Affiliates of any of the foregoing or any other Persons (including any trust, partnership or other entity) controlled by or for the benefit of any of the foregoing.

“Permitted Indebtedness” has the meaning set forth under clause (2) of Section 3.16.

“Permitted Lien”  means:

(a) any Lien existing on the Issue Date;

(b) any landlord’s, workmen’s, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other Liens arising in the ordinary course of business;

(c) pledges or deposits under workers’ compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts or leases, or deposits to secure public or statutory obligations or deposits of cash or government bonds to secure surety or appeal bonds, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case Incurred in the ordinary course of business;

(d) Liens in favor of issuers of surety or performance bonds or letters of credit or bankers’ acceptances or similar obligations issued in the ordinary course of business;

14

(e) encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning, building codes or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances) as to the use of real properties or Liens incidental to the conduct of the business of IRSA or to the ownership of its properties that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of IRSA;

(f) Liens securing Hedging Transactions otherwise permitted under this Indenture;

(g) leases, licenses, subleases and sublicenses of assets (including, without limitation, real property and intellectual property rights) that do not materially interfere with the ordinary conduct of the business of IRSA;

(h) any Lien securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of constructing, acquiring or improving any asset, which Lien attaches to such asset or to other assets of IRSA or any of its Subsidiaries concurrently with or within 180 days after the acquisition or the completion of the construction or improvement thereof;

(i) any Lien in favor of IRSA or any of its Subsidiaries;

(j) any Lien on any asset or property (including Capital Stock) (1) existing thereon at the time of acquisition of such asset or property or (2) of any Person, at the time such Person is acquired by, or is merged or otherwise consolidated or combined with or into, IRSA or any of its Subsidiaries;

(k) any Lien securing an extension, renewal or refunding of Indebtedness secured by a Lien permitted hereunder; provided that such new Lien is limited to the property which was subject to the prior Lien immediately before such extension, renewal or refunding; and provided further that the principal amount of Indebtedness secured by the prior Lien immediately before such extension, renewal or refunding is not increased;

(l) (1) any Lien for taxes, assessments or governmental charges or levies not yet due (including any relevant extensions) or contested in good faith, or (2) any Lien arising or incurred in connection with judgments or assessments under circumstances not constituting an Event of Default;

(m) Liens arising in connection with Receivables Transactions; and

(n) any additional Lien; provided that on the date of the creation or assumption of such Lien, the Indebtedness secured by such Lien, together with all of IRSA’s Indebtedness secured by any Lien under this clause (n), will have an aggregate principal amount outstanding of no greater than 15% of IRSA’s total consolidated assets as set forth in the consolidated financial statements for its most recent fiscal quarter.

15

“Person” means an individual, partnership, limited partnership, corporation, company, limited liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof.

“Ps.” and “Pesos” means the currency of Argentina.

“Preferred Stock” of any Person means any Capital Stock of such Person that has preferential rights over any other Capital Stock of such Person with respect to dividends, distributions or redemptions or upon liquidation.

“Principal Paying Agent” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Process Agent” has the meaning set forth in Section 12.7.

“Program” has the meaning set forth in the second recital of this Indenture.

“Purchase Money Indebtedness” means Indebtedness Incurred for the purpose of financing all or any part of the purchase price, or other cost of construction or improvement of any property; provided that the aggregate principal amount of such Indebtedness does not exceed the lesser of the Fair Market Value of such property or such purchase price or cost, including any Refinancing of such Indebtedness that does not increase the aggregate principal amount (or accreted amount, if less) thereof as of the date of Refinancing.

“Qualified Institutional Buyer” means a qualified institutional buyer within the meaning of Rule 144A.

“Qualified Merger Jurisdiction” means any of (i) Argentina; (ii) the United States, any State thereof or the District of Columbia; (iii) any country which is a member country of the Organization for Economic Cooperation and Development; or (iv) any other nation that has an Investment Grade Rating on its sovereign debt rating from two or more Rating Agencies.

“Rating Agency” means any one of Moody’s, S&P or Fitch, or their respective successors.

“Receivables Transaction” means any securitization, factoring, discounting or similar financing transaction or series of transactions that may be entered into by IRSA or any of its Subsidiaries in the ordinary course of business pursuant to which IRSA or any of its Subsidiaries may sell, convey or otherwise transfer to any Person, or may grant a security interest in, any receivables (whether existing as of the Issue Date or arising in the future) of IRSA  or any of its Subsidiaries, and any assets related thereto, including all collateral securing such receivables, all contracts and all guarantees or other obligations in respect of such receivables, the proceeds of such receivables and other assets which are customarily transferred, or in respect of which security interests are customarily granted, in connection with securitization, factoring or discounting involving receivables.

16

“Redemption Date” has the meaning set forth in Section 10.1.

“Refinance” means, in respect of any Indebtedness, to issue any Indebtedness in exchange for or to refinance, replace, defease or refund such Indebtedness in whole or in part. “Refinanced” and “Refinancing” will have correlative meanings.

“Refinancing Indebtedness” means Indebtedness of IRSA or any Subsidiary issued to Refinance any other Indebtedness of IRSA or a Subsidiary so long as:

(1)

the aggregate principal amount (or initial accreted value, if applicable) of such new Indebtedness as of the date of such proposed Refinancing does not exceed the aggregate principal amount (or initial accreted value, if applicable) of the Indebtedness being Refinanced (plus the amount of any premium required to be paid under the terms of the instrument governing such Indebtedness and the reasonable fees, expenses, defeasance costs and accrued but unpaid interest payable by IRSA in connection with such Refinancing);

(2)

such new Indebtedness has:

(1)	a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of the Indebtedness being Refinanced, and
(2)	a final maturity that is equal to or later than the final maturity of the Indebtedness being Refinanced; and
(3)	if the Indebtedness being Refinanced is Subordinated Indebtedness, then such Refinancing Indebtedness shall be subordinate to the Securities, if applicable, at least to the same extent and in the same manner as the Indebtedness being Refinanced.

“Register” has the meaning set forth in Section 2.10.

“Registrar” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Regular Record Date” means July 7 and January 7 preceding each Interest Payment Date, whether or not a Business Day.

“Regulation S” means Regulation S under the Securities Act.

“Regulation S Global Security” means a Global Security representing Securities initially sold in reliance on Regulation S, deposited with the Trustee, as custodian for DTC, and registered in the name of Cede & Co., as nominee of DTC and in each case bearing the applicable Restrictive Legend.

17

“Representative of the Trustee in Argentina” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Responsible Officer” when used with respect to the Trustee, means any vice president, any assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or assistant trust officer, assigned to the Trustee’s Corporate Trust Office or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

“Restricted Payment” has the meaning set forth in Section 3.17.

“Restricted Period” means, with respect to any Security, the period of forty (40) days after the completion of the distribution of all Securities, as notified by IRSA to the Trustee in writing.

“Restrictive Legend” has the meaning set forth in Section 2.10.

“Reversion Date” has the meaning set forth in Section 3.15.

“Rule 144” means Rule 144 under the Securities Act.

“Rule 144A” means Rule 144A under the Securities Act.

“Rule 144A Global Security” means a Global Security representing Securities initially sold in the United States in reliance on Rule 144A, deposited with the Trustee, as custodian for DTC, and registered in the name of Cede & Co., as nominee of DTC, and bearing the applicable Restrictive Legend.

“S&P” means Standard & Poor’s Ratings Services and its successors and assigns.

“Sanctions” has the meaning set forth in Section 12.13.

“SEC” means the United States Securities and Exchange Commission.

“Securities Act” means the United States Securities Act of 1933 (or any successor statute), as amended, and the rules and regulations of the SEC promulgated thereunder.

“Security” or “Securities” has the meaning stated in the first recital of this Indenture, or, as the context may require, means Securities that have been authenticated and delivered under this Indenture, including any Additional Securities.  

“Stated Maturity” means the final maturity date of the Securities, which is July 8, 2028.

18

“Subordinated Indebtedness” means, with respect to IRSA, any Indebtedness of IRSA which is expressly subordinated in right of payment to the Securities, as the case may be.

“Subsidiary” means, with respect to any Person, any other Person in which such Person owns, directly or indirectly, more than 50% of the voting power of the other Person’s outstanding Voting Stock.

“Supervisory Committee” means the Comisión Fiscalizadora of IRSA.

“Surviving Entity” has the meaning set forth under Section 8.1.

“Suspended Covenants” has the meaning set forth under Section 3.15.

“Suspension Period” has the meaning set forth under Section 3.15.

“Taxes” has the meaning set forth in Section 3.5.

“Transfer Agents” has the meaning set forth in the preamble to this Indenture and any successors and assigns thereto.

“Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as amended.

“Trustee” means the Person identified as the “Trustee” in the preamble to this Indenture and, subject to the provisions of Article V, shall also include any successor trustee.

“US$” and “U.S. dollars” and “U.S. Dollars” means the currency of the United States of America which at the relevant time is legal tender for the payment of public or private debts.

“U.S. Government Obligations” has the meaning set forth in Section 11.4(a).

“Voting Stock” with respect to any Person, means securities of any class of Capital Stock of such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock has voting power by reason of any contingency) to vote in the election of members of the board of directors (or equivalent governing body) of such Person.

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years (calculated to the nearest one-twelfth) obtained by dividing:

(1) the then outstanding aggregate principal amount or liquidation preference, as the case may be, of such Indebtedness into

19

(2) the sum of the products obtained by multiplying:

(a)	the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal or liquidation preference, as the case may be, including payment at final maturity, in respect thereof, by
(b)	the number of years (calculated to the nearest one-twelfth) which will elapse between such date and the making of such payment.

 Section 1.2. Agents. IRSA hereby appoints each of the Registrar, the Co-Registrar, the Transfer Agents and the Paying Agents as its agent in relation to the Securities for the purposes specified in this Indenture and in the terms of the Securities applicable thereto and all matters incidental thereto.  Each of the Agents shall have the powers and authority granted to and conferred upon it herein and in the Securities, and such further powers and authority to act on behalf of IRSA as IRSA and such Agent may hereafter agree in writing.  By execution of this Indenture, each of the Agents accepts its appointment as agent of IRSA in relation to the Securities and shall comply with the provisions of this Indenture and the Securities applicable thereto.

Subject to Section 3.2, IRSA may terminate the appointment of any Agent at any time and from time to time upon giving at least thirty (30) days written notice to such Agent and to the Trustee.  Each Agent may at any time resign by giving no less than thirty (30) days written notice to IRSA of such intention on its part, specifying the date on which its desired resignation shall become effective.  

In acting under this Indenture and in connection with the Securities, the Agents are each acting solely as an agent of IRSA and do not assume any responsibility for the correctness of the recitals in the Securities or this Indenture, or the offering materials related thereto or any obligation or relationship of agency for or with IRSA or any of the Holders of the Securities.

Each of the Agents shall be protected and shall incur no liability for or in respect of any action taken or thing suffered by it in reliance upon any Security, notice, direction, consent, certificate, affidavit, statement or other document to the extent that such communication conforms to the provisions set forth herein, and is believed by it, in good faith, to be genuine and to have been passed or signed by the proper parties.

Each of the Agents may become the owner of, or acquire any interest in, any Securities, with the same rights that it would have if it were not acting in such capacity, and may engage or be interested in any financial or other transaction with IRSA.

IRSA agrees to indemnify, hold harmless and defend each of the Agents against any loss, liability, cost, claim, action, demand or expense (including reasonable fees and expenses of legal counsel) arising out of or in connection with its respective appointment, or the exercise of its respective powers and rights and performance of its respective duties hereunder, or performance of any other duties pursuant to the terms and conditions hereof, except such as may result from its own negligence or willful misconduct or that of its officers or employees, declared as such by a final decision, order or award of a competent court.  The indemnity set forth in this paragraph shall survive the payment of the Securities, the resignation or removal of any Agent and/or the termination of this Indenture.

20

None of the Agents shall be liable for any action taken or omitted by it without negligence or willful misconduct.

Each Agent may execute any of its powers or perform any of its duties hereunder either directly or by or through agents or attorneys not regularly in its employ and such Agent shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed with due care by it hereunder.

IRSA covenants and agrees to pay to each Agent from time to time, and each Agent shall be entitled to, such compensation as shall be agreed upon in writing by IRSA and such Agent for all services rendered by it hereunder.  IRSA covenants and agrees promptly to pay all such compensation and to reimburse each of the Agents for reasonable and documented out-of-pocket expenses (including the reasonable fees and expenses of its counsel) incurred by it in connection with the services rendered by it hereunder, including, without limitation, any payments made in connection with taxes (other than taxes based upon, measured by or determined by the income of an Agent) or other charges.

None of the provisions contained in this Indenture shall require any of the Agents to expend, advance or risk its own funds or otherwise incur any personal financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The duties and obligations of each Agent with respect to the Securities and this Indenture shall be determined solely by the express provisions of this Indenture, and each Agent shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against each such Agent.  The duties and obligations of each Agent are several and not joint.

ARTICLE II

SECURITIES

 Section 2.1. Forms. (a) Generally.  The Securities shall be issued in one series to be known as the 8.750% Senior Notes due 2028.  The Securities shall be issued as registered Securities without interest coupons. 

The Securities shall initially be issued in the form of one or more Global Securities substantially in the form of Exhibit A, which shall be exchangeable for Certificated Securities substantially in the form of Exhibit B only in the limited circumstances set forth in Section 2.7, in each case, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with any rules of any securities exchange or to conform to general usage, all as may be determined by the Authorized Persons executing such Securities, as evidenced by their execution of such Securities, and all of which shall not affect the rights, duties or obligations of the Trustee or the Agents under this Indenture.  The Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plan as the Authorized Persons executing the same may determine as evidenced by the execution thereof. 

21

The Securities initially sold within the United States to U.S. Persons that are Qualified Institutional Buyers will be issued in the form of one or more Rule 144A Global Securities.  The Securities initially sold outside the United States in reliance on Regulation S under the Securities Act will be issued in the form of one or more Regulation S Global Securities. 

The Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange on which the Securities may be listed and subject to the prior approval of the CNV where applicable, all as determined by the Authorized Persons executing such Securities as evidenced by their execution of such Securities.

IRSA agrees to cause the Securities to comply with Article 7 of the Negotiable Obligations Law.

(b) The Trustee shall hold on deposit each Global Security executed and authenticated as provided herein as custodian for DTC, acting as the Depositary for such Global Security, for credit on the date of settlement to the account of the Person(s) entitled thereto. Each Global Security to be deposited with DTC or a custodian for DTC shall be registered in the name of Cede & Co, as DTC’s nominee, and shall bear a legend substantially to the following effect:

“UNLESS (1) THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO IRSA INVERSIONES Y REPRESENTACIONES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND (3) ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

22

TRANSFERS OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF INTERESTS IN THIS SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.”

Upon the issuance of any Global Security, the Co-Registrar shall record Cede & Co., as DTC’s nominee, as the registered Holder of such Global Security.

 Section 2.2. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of authentication on all Securities shall be in substantially the following form:

This is one of the Securities referred to in the within-mentioned Indenture.

The Bank of New York Mellon, as Trustee
By:
	Name:
	Title:

 Section 2.3. Additional Securities. IRSA may from time to time, without the consent of Holders of Securities outstanding, create and issue Additional Securities; provided that such Additional Securities have the same terms and conditions as the previously outstanding Securities (except for the date of issue, the issue price, the applicable legends, and the initial Payment Date); and provided further that if the Additional Securities are not fungible for U.S. federal income tax purposes with the previously outstanding Securities, such Additional Securities shall have separate CUSIP numbers and ISINs. The Additional Securities shall be consolidated with and form a single series with the previously outstanding Securities.

 Section 2.4. Authentication and Delivery of Securities. At any time and from time to time after the execution and delivery of this Indenture, the Trustee shall authenticate and make available for delivery Securities upon receipt of a Company Order.  A Company Order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated.  The Trustee shall have the right to decline to authenticate and deliver any Securities under this Section 2.4 if the Trustee (x) being advised by counsel, and after having consulted with counsel to IRSA, determines that such action may not lawfully be taken, (y) acting in good faith through its board of directors or board of trustees, executive committee, or a trust committee of directors or trustees or a Responsible Officer shall determine that such action would expose the Trustee to personal liability to existing Holders or (z) determines that such action will affect its rights, duties, obligations or immunities hereunder in a manner not reasonably acceptable to it.

23

 Section 2.5. Execution of Securities. The Securities shall be executed on behalf of IRSA by each of (a) a member of its Board of Directors and (b) a member of its Supervisory Committee.  Such signatures, in accordance with applicable laws and regulations, shall be the manual or facsimile signatures of such Authorized Persons.  Typographical and other minor errors or defects in any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.

In case any Authorized Person of IRSA who shall have executed any of the Securities shall cease to be such Authorized Person before the Security so executed shall be authenticated and delivered by the Trustee or disposed of by or on behalf of IRSA, such Security nevertheless may be authenticated and delivered or disposed of as though the Person who executed such Security had not ceased to be such Authorized Person of IRSA; and any Security may be executed on behalf of IRSA by such Persons as, at the actual date of the execution of such Security, shall be proper Authorized Persons of IRSA, although at the date of the execution and delivery of this Indenture any such Person was not such an Authorized Person.

 Section 2.6. Certificate of Authentication. Only such Securities as shall bear thereon a certificate of authentication substantially in the form herein before recited, executed by the Trustee by the manual, facsimile or electronic signature of one of its authorized signatories, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee upon any Security executed by or on behalf of IRSA shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.  Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by IRSA, and IRSA shall deliver such Security to the Trustee for cancellation together with a written statement executed by an Authorized Person (which need not comply with Section 12.5 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by IRSA, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

 Section 2.7. Global Securities. Global Securities shall be subject to the following terms:

(a) Interests in a Global Security deposited with a Depositary pursuant to this Section 2.7 shall only be exchanged for Certificated Securities only if such exchange complies with Section 2.10 and (i) DTC notifies IRSA and the Trustee that it is unwilling or unable to continue as Depositary for such Global Security or if at any time DTC ceases to be a “clearing agency” registered under the Exchange Act, and a successor depositary so registered is not appointed by IRSA within ninety (90) days of such notice, (ii) an Event of Default has occurred and is continuing with respect to the Securities, or (iii) IRSA in its sole discretion notifies the Trustee in writing that Certificated Securities shall be delivered in exchange for such Global Security.

24

(b) If interests in any Global Security in whole or, from time to time, in part, are to be exchanged for Securities in the form of Certificated Securities pursuant to Section 2.7(a), such Global Security shall be surrendered by the Depositary to the Trustee to be so exchanged, without charge, and the Trustee shall, upon receipt of a Company Order, authenticate and deliver, upon such exchange of interests in such Global Security, an equal aggregate principal amount of Certificated Securities. The Certificated Securities exchanged pursuant to this Section 2.7 shall be registered by the Co-Registrar in such names as the Depositary shall direct in writing in accordance with its records. Any Certificated Security delivered in exchange for any interest in any Rule 144A Global Security or Regulation S Global Security shall, except as provided by Section 2.10, bear the applicable Restrictive Legend as set forth on the face of the form of the Certificated Securities set forth in Exhibit B hereto.

(c) None of the Trustee or any Agent shall have any responsibility or obligation to any beneficial owner of an interest in a Global Security, a member of, or a participant in, the Depositary or other Person with respect to the accuracy of the records of the Depositary or its nominee or of any participant member thereof, with respect to any ownership interest in the Securities or with respect to the delivery to any participant, member, beneficial owner or other person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount or delivery of the Securities (or other security or property) under or with respect to the Securities. All notices and communications to be given to the Holders and all payments to be made to Holders in respect of the Securities shall be given or made only to or upon the order of the registered Holders (which shall be the Depositary or its nominee in the case of a Global Security). The rights of beneficial owners in any Global Security shall be exercised only through the Depositary subject to the applicable rules and procedures of the Depositary. The Trustee and each Agent may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and any beneficial owners.

 Section 2.8. Denomination and Date of Securities. The Securities shall be issued only in minimum denominations of US$1.00 and integral multiples of US$1.00 in excess thereof. Each Security shall be dated the date of its authentication.

 Section 2.9. Payments of Principal and Interest. (a) Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration or repurchase) shall be paid in immediately available funds to the Person in whose name a Security is registered at the close of business on the Regular Record Date next preceding each Payment Date notwithstanding the cancellation of such Securities upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Payment Date; provided that interest payable at Stated Maturity or upon acceleration or repurchase shall be paid to the Person to whom principal will be payable; provided further that if and to the extent IRSA defaults in the payment of the interest, including any Additional Amounts, due on such Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Persons in whose names such Securities are registered at the end of a subsequent record date established by IRSA by notice given by or on behalf of IRSA to the Holders of the Securities in accordance with Section 12.4 not less than fifteen (15) days preceding such subsequent record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest.

25

(b) Payments of the principal of and any premium, Additional Amounts and other amounts on or in respect of any Security at Stated Maturity or upon acceleration, or repurchase shall be made to the registered Holder on such date in immediately available funds upon presentation (and if final payment) surrender of such Security at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Security is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of Securities to be made other than at Stated Maturity or upon redemption shall be made by wire transfer or check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that (a) DTC, as registered Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds, and (b) a Holder of US$1,000,000 in aggregate principal of Certificated Securities shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due.

 Section 2.10. Registration, Transfer and Exchange of Securities. (a) The Co-Registrar will keep a register (the “Register”) in the English language at its office in New York City for the registration of ownership, exchange and transfer of Securities.  In the case of the replacement of the Securities, the Register will include notations of the Security so replaced, and the Security issued in replacement thereof.  In the case of the cancellation of the Securities, the Register will include notations of the Security so cancelled and the date on which such Security was cancelled.  The Register will show the amount of the Securities, the date of issue, all subsequent transfers and changes of ownership in respect thereof and the names, tax identification numbers (if relevant to a specific Holder) and addresses of the Holders of the Securities and any payment instructions with respect thereto (if different from a Holder’s registered address).  The Co-Registrar shall at all reasonable times during office hours make the Register available to IRSA or any Person authorized by IRSA in writing for inspection and for taking copies thereof or extracts therefrom, and at the expense and written direction of IRSA, the Co-Registrar shall deliver to such Persons all lists of Holders of Securities, their addresses and amounts of such holdings as IRSA may request.

The Registrar shall maintain a duplicate register at its office in the City of Buenos Aires, Argentina to the extent permitted by applicable Argentine law in written or electronic form in the Spanish language.

None of the Trustee, the Co-Registrar or any Transfer Agent shall register the transfer of or exchange of Certificated Securities for a period of fifteen (15) days preceding the due date for any payment of interest on the Security or during the period of thirty (30) days ending on the due date for any payment of principal on the Security.  Neither the Co-Registrar or any Transfer Agent shall register the transfer of or exchange any Securities previously called for redemption or tendered for repurchase.

26

(b) (i) Global Securities — DTC Book Entry Provisions. Interests in Global Securities will be transferable in accordance with the rules and procedures from time to time of DTC. Members of, or participants in, DTC shall have no rights under this Indenture with respect to any Global Security held on their behalf by DTC, and DTC or its nominee may be treated by IRSA, the Trustee, any Agent or any other agent hereunder as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent IRSA, the Trustee, any Agent or any other agent hereunder from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its agent members, the operation of customary practices governing the exercise of the rights of a Holder of any Global Security.

(ii) Transfers of Global Securities in Whole. Subject to the provisions of Section 2.10(c), transfers of a Global Security shall be limited to transfers of a Global Security in whole, but not in part, to DTC, nominees of DTC or to a successor of DTC or such successor’s nominee.

(c) Notwithstanding any provision to the contrary herein, so long as Global Securities remain Outstanding and are held by or on behalf of a Depositary, transfers or exchanges of interests between Global Securities, in whole or in part, shall only be made in accordance with this Section 2.10(c).

(i) Transfers From Rule 144A Global Security to Regulation S Global Security. If a holder of a beneficial interest in the Rule 144A Global Security wishes at any time to exchange its interest in the Rule 144A Global Security for an interest in the Regulation S Global Security, or to transfer its interest in the Rule 144A Global Security to a Person who wishes to take delivery thereof in the form of an interest in the Regulation S Global Security, such holder may, subject to the rules and procedures of DTC, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Regulation S Global Security. Upon receipt by the Trustee, of (1) written instructions given in accordance with procedures of DTC, directing the Trustee to credit or cause to be credited a beneficial interest in the Regulation S Global Security in an amount equal to the beneficial interest in the Rule 144A Global Security to be exchanged or transferred, such instructions to contain information regarding the participant account of DTC to be credited with such increase and information regarding the participant account with DTC to be debited with such decrease and (2) a certificate which:

(I) for transfers or exchanges made during the Restricted Period, is in the form of Exhibit C hereto given by the holder of such beneficial interest stating that the exchange or transfer of such interest has been made in compliance with the transfer restrictions applicable to the Securities and pursuant to, and in accordance with, Regulation S; or

(II) for transfers or exchanges made after the expiration of the Restricted Period, is in the form of Exhibit D hereto given by the holder of such beneficial interest stating that the exchange or transfer of such interest has been made in compliance with the transfer restrictions applicable to the Securities and (A) that such transfer or exchange has been made pursuant to, and in accordance with, Regulation S or (B) that such transfer or exchange has been made in a transaction permitted by Rule 144,

27

then, subject to the rules and procedures of DTC, the Trustee or applicable Transfer Agent shall instruct DTC to reduce the Rule 144A Global Security by the aggregate principal amount of the beneficial interest to be so exchanged or transferred, and the Trustee shall instruct DTC concurrently with such reduction, to increase the principal amount of the Regulation S Global Security by the aggregate principal amount of the beneficial interest in the Rule 144A Global Security to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Regulation S Global Security equal to the reduction in the principal amount of the Rule 144A Global Security.

(ii) Transfers From Regulation S Global Security to Rule 144A Global Security. If a holder of a beneficial interest in the Regulation S Global Security wishes at any time to exchange its interest in the Regulation S Global Security for an interest in the Rule 144A Global Security, or to transfer its interest in the Regulation S Global Security to a Person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Security, such holder may, subject to the rules and procedures of DTC exchange or transfer such interest for an equivalent beneficial interest in the Rule 144A Global Security. Upon receipt by the Trustee of (1) written instructions given in accordance with the procedures of DTC from a participant, directing the Trustee to credit or cause to be credited a beneficial interest in the Rule 144A Global Security in an amount equal to the beneficial interest in the Regulation S Global Security to be exchanged or transferred, such instructions to contain information regarding the participant’s account with DTC to be credited with such increase, and information regarding the participant’s account with DTC to be debited with such decrease, and (2) with respect to an exchange or transfer of an interest in the Regulation S Global Security during the Restricted Period for an interest in the Rule 144A Global Security, a certificate in the form of Exhibit E hereto given by the holder of such beneficial interest and stating that the Person transferring such interest in the Regulation S Global Security reasonably believes that the Person acquiring such interest in the Rule 144A Global Security is a Qualified Institutional Buyer and is obtaining such beneficial interest in a transaction meeting the requirements of Rule 144A, then, subject to the rules and procedures of DTC, the Trustee or applicable Transfer Agent shall instruct DTC to reduce the Regulation S Global Security by the aggregate principal amount of the beneficial interest to be so exchanged or transferred, and the Trustee shall instruct DTC, concurrently with such reduction, to increase the principal amount of the Rule 144A Global Security by the aggregate principal amount of the beneficial interest in the Regulation S Global Security to be so exchanged or transferred, and to credit the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security equal to the reduction in the principal amount of the Regulation S Global Security.

28

(d) Certificated Security Transfers. Certificated Securities may be exchanged or transferred in whole or in part in the principal amount of authorized denominations by surrendering such Certificated Securities at the Corporate Trust Office, the office of the Trustee or the office of any Transfer Agent with a written instrument of transfer as provided in the assignment form attached to the form of Certificated Securities in Exhibit B hereto duly executed by the Holder thereof or his attorney duly authorized in writing. The provisions of Section 2.10(c)(i) for transfer or exchange of an interest in the Rule 144A Global Security for an interest in the Regulation S Global Security and the provisions of Section 2.10(c)(ii) for transfer or exchange of an interest in the Regulation S Global Security for an interest in the Rule 144A Global Security shall also apply for the same types of transfers with respect to Certificated Securities.

In exchange for any Certificated Security properly presented for transfer, the Trustee shall, upon Company Order, promptly authenticate and deliver or cause to be authenticated and delivered at the Corporate Trust Office or at the office of the Co-Registrar or at the office of any Transfer Agent, as the case may be, to the transferee or send by mail (at the risk of the transferee) to such address as the transferee may request, a Certificated Security or Securities in the name of such transferee and for the same aggregate principal amount as shall have been transferred. No transfer of any Certificated Securities shall be made unless the request for such transfer is made by the registered Holder or his attorney duly authorized in writing at the Corporate Trust Office and is accompanied by a completed instrument of transfer in the form of assignment form attached to the form of Certificated Securities in Exhibit B hereto.

(e) Legends. If Securities are issued upon the transfer, exchange or replacement of Securities not bearing the restrictive legends set forth in the respective applicable form of Security attached hereto (collectively, a “Restrictive Legend”), the Securities so issued shall not bear a Restrictive Legend. If Securities are issued upon the transfer, exchange or replacement of Securities bearing a Restrictive Legend, or if a request is made to remove a Restrictive Legend of a Security, the Securities so issued shall bear a Restrictive Legend as set forth on the applicable form of Security attached hereto, or the Restrictive Legend shall not be removed, as the case may be, unlessthere is delivered to IRSA and the Trustee such evidence as shall be satisfactory to IRSA, which may include an opinion of New York counsel, as may be reasonably required by IRSA (at the Holder’s expense) that neither the Restrictive Legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply, as the case may be, with the provisions of Rule 144A, Rule 144 or Regulation S or that such Securities are not “restricted securities” within the meaning of Rule 144, and the Trustee, upon Company Order, shall authenticate and deliver a Security that does not bear the Restrictive Legend. If the Restrictive Legend is removed from the face of a Security and such Security is subsequently held by IRSA or an Affiliate of IRSA and a Responsible Officer of the Trustee subsequently receives written notice from IRSA that such Security is a “restricted security” within the meaning of Rule 144, the Restrictive Legend shall be reinstated.

29

(f) Prior to satisfaction of the applicable requirements in this Section 2.10 for registration of transfer, IRSA, the Trustee and each Agent may deem and treat the registered Holder as appears in the Register of any Security as the absolute owner of such Security, in each case for the purpose of receiving payment of the principal and any interest in respect of such Security and for all other purposes whatsoever.

(g) Transfer, registration and exchange of any Security or Securities shall be permitted and executed as provided in this Section 2.10 without any charge to the Holder of any such Security or Securities, other than any taxes or governmental charges payable on transfers or exchanges.

(h) Neither the Trustee nor any Agent shall have any obligation or duty to monitor, determine or inquire as to compliance with any tax or securities laws with respect to any restrictions on transfer imposed under this Indenture or under applicable law (including any transfers between or among any clearing systems or the Depositary’s participant, members or beneficial owners in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

(i) All the provisions and undertakings set forth above concerning registration of ownership, exchange and transfer of Securities shall be exclusively performed by The Bank of New York Mellon, acting as Co-Registrar.

If the Registrar is required to perform any of the provisions and undertakings set forth above concerning registration of ownership, exchange and transfer of Securities, with the agreement of IRSA, the Registrar may delegate such duties to another entity acting in Argentina with legal capacity to carry out such activities in accordance with the provisions of this Indenture and applicable Argentine law. The Registrar shall promptly notify IRSA if it is required to undertake any such activities so that IRSA shall designate the entity to whom the Registrar shall delegate such duties. All costs related to the delegation of such activities shall be borne by the Registrar.

Once any such delegation is made, and is accepted by the delegated entity, the Registrar shall not be liable for the breach of any of the obligations assumed by such delegated entity pursuant to this Indenture and shall be indemnified by IRSA for and held harmless against, any and all losses, damages, liabilities, judgments, claims, causes of action, costs and expenses (including reasonable and documented fees and disbursements of legal counsel) incurred directly or indirectly, without negligence or bad faith on the part of the Registrar, arising out of or in connection with the performance of the duties assumed by the delegate Registrar under this Indenture.

For the avoidance of doubt, the obligations of the Registrar and Co-Registrar hereunder are several and not joint.

30

Section 2.11. Mutilated, Defaced, Destroyed, Stolen and Lost Securities; Cancellation and Destruction of Securities. (a) The Trustee shall, in accordance with any terms and conditions set forth in this Indenture, and upon provision of evidence satisfactory to the Trustee and to IRSA that any Security was mutilated, defaced, destroyed, stolen or lost, together with such indemnity as the Trustee and IRSA may require to hold each of them harmless, upon receipt of a Company Order, authenticate and deliver from time to time such Securities in exchange for or in lieu of such Securities that become mutilated, defaced, destroyed, stolen or lost. Each Security delivered in exchange for or in lieu of any other Security shall carry all the rights to interest (including rights to accrued and unpaid interest and Additional Amounts) that were carried by such other Security.

(b) All Securities surrendered for payment, transfer or exchange shall be delivered to the Trustee. The Trustee shall cancel and dispose of all such Securities surrendered for payment, transfer or exchange, in accordance with its security destruction policy, and shall, upon written request, deliver written confirmation thereof to IRSA.

(c) Upon the issuance of any substitute Security, the Holder of such Security, if so requested by IRSA, will pay a sum sufficient to cover any stamp duty, tax or other governmental charge that may be imposed in relation thereto and any other expense (including the fees and expenses of the Trustee, its counsel and its agents) in connection with the preparation and issuance of the substitute Security.

(d) All Securities issued upon any transfer or exchange of Securities shall be valid obligations of IRSA, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.

Section 2.12. Purchase. IRSA, its Affiliates and its Subsidiaries may at any time purchase or otherwise acquire any Security in the open market or otherwise at any price and may resell or otherwise dispose of such Security at any time, provided that if any such Securities that are resold are not fungible with the Securities initially offered for U.S. federal securities laws or income tax purposes, such resold Securities will have one or more separate CUSIP numbers and ISINs.

ARTICLE III

COVENANTS OF IRSA

Section 3.1. Payment of Principal and Interest. (a) IRSA covenants and agrees for the benefit of the Holders of the Securities that it will duly and punctually pay or cause to be paid the principal of and interest on the Securities (including Additional Amounts), and any other payments to be made by IRSA under the Securities and this Indenture, at the place or places, at the respective times and in the manner provided in the Securities and this Indenture.

31

(b) In order to comply with applicable tax laws (inclusive of rules, regulations and interpretations promulgated by competent authorities) related to the Securities and this Indenture in effect from time to time (“Applicable Tax Law”) that a foreign financial institution, IRSA, the Trustee or any Paying Agent is or has agreed to be subject, IRSA hereby covenants with the Trustee and each Paying Agent that it will use commercially reasonable efforts to provide each of the Trustee and the Paying Agents with sufficient information so as to enable the Trustee and the Paying Agents to determine whether or not the Trustee or such Paying Agent, as applicable, has tax related obligations under Applicable Tax Law. The Trustee and each Paying Agent shall be entitled to make any withholding or deduction from payments to the extent necessary to comply with Applicable Tax Law for which the Trustee and each Paying Agent shall not have any liability.

(c) In the event of any foreign exchange restriction (including, but not limited to de facto restrictions) or prohibition in Argentina, IRSA shall make any and all payments in respect of interest on, or principal of, the Securities, to the extent permitted by applicable law, in U.S. dollars by:

(i) purchasing, with Pesos any series of Argentine Discount Bonds or Argentine Par Bonds or any other securities or public or private bonds issued in Argentina and denominated in U.S. dollars and transferring and selling such securities outside Argentina for U.S. dollars, or

(ii) by means of any other legal procedure existing in Argentina for the purchase of U.S. dollars and their subsequent transfer abroad.

All costs and taxes payable in connection with the procedures referred to above shall be borne by IRSA. IRSA’s payment obligations may only be deemed satisfied and discharged upon receipt by the relevant Holder or the Trustee, as the case may be, of the U.S. dollar amounts obtained through the transactions specified above necessary to satisfy the relevant amount owing on the Securities.

(d) IRSA covenants and agrees that Section 765 of the Argentine Civil and Commercial Code is not applicable with respect to any payments to be made in connection with the Securities and forever and irrevocably waives any right that might assist IRSA in any claim that payments made or to be made in connection with the Securities and this Indenture are payable in any currency other than in U.S. dollars. IRSA hereby waives and renounces the applicability of Section 765 of the Argentine Civil and Commercial Code to any payments made or to be made in connection with the Securities and this Indenture.

32

Section 3.2. Offices for Payments, etc. So long as any of the Securities remain Outstanding, IRSA will maintain in New York City the following: an office or agency (a) where the Securities may be presented for payment, (b) where the Securities may be presented for exchange, transfer or registration of transfer as in this Indenture provided and (c) where notices and demands to or upon IRSA (other than the type contemplated by Section 12.7) in respect of the Securities or of this Indenture may be served. IRSA hereby initially appoints the Trustee at its office or agency for each such purpose and designates the Corporate Trust Office as the office to be maintained by it for each such purpose. In case IRSA shall fail to so designate or maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations and demands (other than the type contemplated by Section 12.7) may be made and notices may be served at all times at the Corporate Trust Office and IRSA hereby appoints the Trustee as its agent to receive all such presentations, demands and notices. As required by Argentine law and by the CNV, IRSA will maintain a Registrar, a Paying Agent and a Transfer Agent in Argentina. Banco Santander Argentina S.A. at its office at Av. Juan de Garay 151, City of Buenos Aires, Argentina, will initially act as such Registrar, Paying Agent and Transfer Agent in Argentina, as well as the Representative of the Trustee in Argentina. The Registrar, the Co-Registrar, each of the Paying Agents and each of the Transfer Agents may change their respective specified offices set forth herein to some other specified offices in the same city. IRSA will promptly give to the Trustee and the Holders (and, if so required, the CNV, BYMA, MAE or such other securities exchange on which the Securities may be listed) written notice of any change of location of specified offices, or of any resignation, termination or appointment of any Agent.

Section 3.3. Appointment to Fill a Vacancy in Office of Trustee. IRSA, whenever necessary to avoid or fill a vacancy in the office of the Trustee, will appoint, in the manner provided in Section 5.9, a Trustee, so that there shall, at all times, be a Trustee with respect to the Securities.

Section 3.4. Payments and Paying Agents. (a) IRSA will, on or before 10:00 AM (New York City time) at least one (1) Business Day prior to each Payment Date deposit with the Trustee a sum in U.S. Dollars sufficient to pay such principal, premium or interest (including Additional Amounts) so becoming due. IRSA shall request that the bank through which any such payment is to be made agrees to supply to the Trustee two (2) Business Days prior to the due date for any such payment an irrevocable confirmation (by tested telex or authenticated SWIFT) of its intention to make such payment.

(b) At least five (5) Business Days prior to the first Payment Date of interest or principal and, if there has been any change with respect to the matters set forth in the below-mentioned Officer’s Certificate, at least five (5) Business Days prior to each Payment Date of interest or principal thereafter, IRSA shall furnish the Trustee with an Officer’s Certificate instructing the Trustee as to any circumstances in which payments of principal of or interest on any Securities (including Additional Amounts) due on such Payment Date shall be subject to deduction or withholding for or on account of any taxes and the rate of any such deduction or withholding. If any such deduction or withholding shall be required and if IRSA therefore becomes liable to pay Additional Amounts, then such Officer’s Certificate shall specify (i) the amount required to be deducted or withheld and the Additional Amounts due to Holders of such Securities, (ii) that IRSA shall pay in a timely manner such amount to be deducted or withheld to the appropriate governmental authority, and (iii) that IRSA will pay to the Trustee such Additional Amounts as shall be required to be paid to such Holders. IRSA agrees to indemnify the Trustee and each Paying Agent for, and to hold each harmless against, any loss, claim, damage, cost, liability or expense reasonably incurred by them without negligence or willful misconduct on their respective parts, arising out of or in connection with actions taken or omitted by them in reliance on any Officer’s Certificate furnished pursuant to this Section 3.4(b) or the failure to furnish any such certificate. The obligations of IRSA under the preceding sentence shall survive the payment of the Securities, the resignation or removal of the Trustee or any Paying Agent and/or the termination of this Indenture.

33

(c) Each of the Paying Agents hereby agrees (and whenever IRSA shall appoint a Paying Agent with respect to the Securities other than those specified in Section 3.2, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Agent shall agree), subject to the provisions of this Section 3.4:

(i) that it will hold all sums received by it as such agent for the payment of the principal of or interest due on any Securities (whether such sums have been paid to it by or on behalf of IRSA or by any other obligor on the Securities) in trust for the benefit of the Holders of such Securities or of the Trustee,

(ii) that it will give the Trustee written notice of any failure by IRSA (or by any other obligor on the Securities) to make any payment of the principal of or interest on any Securities (including Additional Amounts) and any other payments to be made by or on behalf of IRSA under this Indenture or such Securities when the same shall be due and payable, and

(iii) that it will transfer any such sums so held in trust by it to the Trustee upon the Trustee’s written request at any time during the continuance of the failure referred to in clause (ii) above.

IRSA shall give, at its expense, notice of the appointment of any Paying Agents (other than those specified in Section 3.2) to the Holders as specified in Section 12.4, and to the CNV if required under Argentine law.

The Trustee, in its capacity as the Principal Paying Agent, shall arrange with all such Paying Agents for the payment, from funds furnished by IRSA to the Trustee pursuant to this Indenture, of the principal of and interest on the Securities (including Additional Amounts).

If IRSA shall act as its own Paying Agent with respect to any Securities, it will, on or before each Payment Date on the Securities, set aside, segregate and hold in trust for the benefit of the Holders of the Securities a sum sufficient to pay such principal or interest (including Additional Amounts) so becoming due.  IRSA will promptly notify the Trustee in writing of any failure to take such action.

34

Anything in this Section 3.4 to the contrary notwithstanding, IRSA may at any time, for the purpose of obtaining a satisfaction and discharge with respect to any Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for such Securities by IRSA or any Paying Agent hereunder, as required by this Section 3.4, such sums to be held by the Trustee upon the trusts herein contained.

Anything in this Section 3.4 to the contrary notwithstanding, the agreements to hold sums in trust as provided in this Section are subject to the provisions of Sections 9.3 and 9.4.

Section 3.5. Taxation. (a) All payments of principal, premium or interest by IRSA in respect of each Security shall be made without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatever nature (including penalties and interest related thereto) (“Taxes”), unless IRSA is compelled by law to deduct or withhold such Taxes. If any withholding or deduction from payments made with respect to the Securities is required for or on account of Taxes imposed or levied by or on behalf of an Applicable Jurisdiction (“Applicable Taxes”), IRSA shall pay such additional amounts (“Additional Amounts”) in respect of such Applicable Taxes as may be necessary to ensure that the net amounts received by the Holders of the Securities after such withholding or deduction shall equal the respective amounts that would have been receivable in respect of the Securities in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable:

(i) to or on behalf of a Holder or beneficial owner of a Security that is liable for Applicable Taxes in respect of such Security by reason of having a present or former connection with an Applicable Jurisdiction other than merely holding or beneficially owning such Security or enforcing rights with respect to such Security or the receipt of income or any payments in respect thereof;

(ii) to or on behalf of a Holder or beneficial owner of a Security in respect of Applicable Taxes that would not have been imposed but for the failure of the Holder or beneficial owner of a Security to comply with any certification, identification, information, documentation or other reporting requirement (within thirty (30) calendar days following a written request from IRSA to the Holder for compliance) if such compliance is required by applicable law, regulation, administrative practice or an applicable treaty as a precondition to exemption from, or reduction in the rate of deduction or withholding of, Applicable Taxes;

(iii) to or on behalf of a Holder or beneficial owner of a Security in respect of any estate, inheritance, gift, sales, use, excise, value added, transfer, personal assets or similar tax, assessment or other governmental charge;

(iv) to or on behalf of a Holder or beneficial owner of a Security in respect of Applicable Taxes payable otherwise than by withholding from payment of principal of, premium, if any, or interest on the Securities;

35

(v) to or on behalf of a Holder or beneficial owner of a Security in respect of Applicable Taxes that would not have been imposed but for the fact that the Holder presented such Security for payment (where presentation is required) more than thirty (30) days after the later of (x) the date on which such payment became due and (y) if the full amount payable has not been received by the Trustee on or prior to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Securityholders by the Trustee;

(vi) with respect to any Security presented for payment (where presentation is required) at an office of a Paying Agent in Argentina (provided the Securities can also be presented at an office of a Paying Agent outside of Argentina without any such withholding or deduction);

(vii) with respect to any Taxes imposed under FATCA;

(viii) with respect to any Applicable Taxes imposed by Argentina or any political subdivision thereof or any authority therein to the extent that IRSA has determined, based on information obtained directly from the recipient or from third parties, that such Applicable Taxes are imposed (x) due to the residence of the foreign recipient of the payment in a jurisdiction designated as a non-cooperating jurisdiction (jurisdicción no cooperante), or (y) due to the fact that the funds invested by the foreign recipient of the payment are originated in a jurisdiction designated as a non-cooperating jurisdiction (jurisdicción no cooperante), in each case as determined under applicable Argentine laws or regulation; or

(ix) with respect to any combination of items (i) through (viii) above;

nor shall Additional Amounts be paid with respect to any payment of the principal of, or any premium or interest on, any Securities to any Holder of a Security who is a fiduciary or partnership (including an entity treated as a partnership for United States federal income tax purposes) or limited liability company or any person other than the sole beneficial owner of such payment to the extent that a beneficiary or settlor with respect to such fiduciary or a member of such partnership or limited liability company or the beneficial owner of such payment would not have been entitled to such Additional Amounts had it been the Holder of such Securities.

All references in this Indenture to principal, premium or interest payable with respect to the Securities shall be deemed to include references to any Additional Amounts payable under this Section 3.5 with respect to such principal, premium or interest. IRSA will provide the Trustee with documentation reasonably satisfactory to the Trustee evidencing the payment of any amounts deducted or withheld in accordance with this Section 3.5 promptly upon IRSA’s payment thereof, and copies of such documentation will be made available by the Trustee to Holders upon written request to the Trustee.

36

(b) IRSA will pay promptly when due any present or future stamp, court or documentary taxes or any excise or property taxes, charges or similar levies that arise in any jurisdiction from the execution, delivery or registration of the Securities or any other document or instrument referred to herein or therein, excluding any such taxes, charges or similar levies imposed by any jurisdiction outside any Applicable Jurisdiction except those resulting from, or required to be paid in connection with, the enforcement of the Securities after the occurrence and during the continuance of any Event of Default.

Section 3.6. Maintenance of Books and Records. IRSA will maintain books, accounts and records in accordance with IFRS.

Section 3.7. Status and Ranking. (a) IRSA will ensure that its obligations under each Security will rank at least pari passu in right of payment with all other existing and future unsecured and unsubordinated indebtedness of IRSA (other than obligations preferred by statute or by operation of law, including, without limitation, tax and labor related claims).

(b) IRSA will ensure that each Security will at all times qualify as “obligaciones negociables simples no convertibles” under the Negotiable Obligations Law and will be entitled to the benefits set forth therein and subject to the procedural requirements thereof.

Section 3.8. Listing. IRSA will use all reasonable efforts to cause the Securities to be accepted for trading on BYMA and the MAE, as applicable.

Section 3.9. Maintenance of Corporate Existence; Properties. IRSA will, and will cause each of its Subsidiaries to, (a) maintain in effect its corporate existence and all registrations necessary therefore (except for transactions not otherwise prohibited by Article VIII), (b) take all actions to maintain all rights, privileges, titles to property or franchises necessary in the normal conduct of its business and (c) keep all its property used or useful in the conduct of its business in good working order and condition; provided that this covenant shall not require IRSA to do so if in each case (i) the Board of Directors of IRSA shall determine in good faith that the maintenance or preservation thereof is no longer necessary or desirable in the conduct of business of IRSA or (ii) the failure to so comply would not have a material adverse effect on the business, assets, operations or financial condition of IRSA and its Subsidiaries taken as a whole.

Section 3.10. Compliance with Law. IRSA will, and will cause each of its Subsidiaries to, comply with all applicable laws, rules, regulations, orders and resolutions of each Government Agency having jurisdiction over it or its business except where the failure to so comply would not have a material adverse effect on the business, assets, operations or financial condition of IRSA and its Subsidiaries taken as a whole.

37

Section 3.11. Reports to Holders. For so long as any Securities remain Outstanding, IRSA will:

(a) Provide the Trustee with copies of its(i) annual financial statements audited by an internationally recognized firm of independent public accountants within 135 days after the end of IRSA’s fiscal year (which, as of the date of this Indenture, is June 30 of each year) and (ii) quarterly financial statements (including a balance sheet, income statement and statement of cash flow for the fiscal quarter or quarters then ended and the corresponding fiscal quarter or quarters from the prior year) within 60 days of the end of each of the first three (3) fiscal quarters of each fiscal year. Such annual and quarterly financial statements will be accompanied by a “management’s discussion and analysis” or other report of management providing an overview in reasonable detail of the results of operations and financial condition of IRSA and its Subsidiaries for the periods presented. English translations of the foregoing documents will be provided for any documents prepared in a language other than English; provided that IRSA will not be required to provide such copies of public filings which may be obtained from the SEC via EDGAR System or the CNV via its Financial Information System (Autopista de Información Financiera), or their respective successors; and

(b) Provide the Trustee with copies (including English translations of documents prepared in a language other than English) of certain material public filings made with any securities exchange or securities regulatory agency or authority promptly after such filing; provided that IRSA will not be required to provide such copies of public filings which may be obtained from the SEC via the EDGAR System or its successor or through the CNV via its Financial Information System (Autopista de Información Financiera), or its successor.

In addition, at any time when IRSA is not subject to Section 13 or 15(d) of the Exchange Act or is exempt from the reporting requirements thereunder pursuant to Rule 12g3-2(b) of the Exchange Act, IRSA will make available, upon request, to the Holders or prospective purchasers the information required pursuant to Rule 144A(d)(4) under the Securities Act.

Delivery of the above reports and the information described in this Section 3.11to the Trustee is for informational purposes only and the Trustee’s receipt of such reports shall not constitute actual or constructive notice or knowledge of any information contained therein or determinable from information contained therein, including IRSA’s or any Subsidiary’s compliance with any of the covenants in this Indenture (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate). The Trustee shall have no obligation to monitor IRSA’s compliance with its obligations under this Section 3.11.

Section 3.12. Other Information. For so long as any of the Securities remain Outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, IRSA will, during any period in which it is neither subject to Section 13 or 15(d) under the Exchange Act nor exempt from reporting under the Exchange Act pursuant to Rule 12g3-2(b) thereunder, make available to any Holder or any owner of a beneficial interest in a Global Security, to a prospective purchaser of a Security or beneficial interest therein who is a Qualified Institutional Buyer, or to the Trustee for delivery, at IRSA’s expense, to such Holder or beneficial owner or prospective purchaser, as the case may be, in connection with any sale thereof, in each case at the Holder’s written request to IRSA, the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act.

38

Section 3.13. Notice of Default. IRSA will notify the Trustee in writing promptly after IRSA becomes aware of the occurrence and continuance of any Event of Default. Each notice pursuant to this Section 3.13 shall state that it constitutes a “notice of default” hereunder and shall be accompanied by an Officer’s Certificate signed by the Chief Executive Officer or the Chief Financial Officer of IRSA setting forth the details of such Event of Default and stating what action IRSA proposes to take with respect thereto.

Section 3.14. Further Actions. IRSA will use its reasonable efforts to take any action, satisfy any condition or do anything (including the obtaining or effecting of any necessary consent, approval, authorization, exemption, filing, license, order, recording or registration) at any time required in accordance with the applicable laws and regulations to be taken, fulfilled or done in order (a) to enable it lawfully to enter into, exercise its rights and perform and comply with its payment obligations under the Securities and this Indenture, as the case may be, (b) to ensure that those obligations are legally binding and enforceable and (c) to make the Securities and this Indenture admissible in evidence in the courts of Argentina.

Section 3.15. Suspension of Covenants. During any period of time that (i) the Securities achieve Investment Grade Ratings from at least two of the three Rating Agencies and (ii) no Default or Event of Default has occurred and is continuing (the occurrence of the events described in the foregoing clauses (i) and (ii) being collectively referred to as a “Covenant Suspension Event”), with respect to the Securities, IRSA will not be subject to the provisions described under Sections3.16, 3.17 and 3.19 (collectively, the “Suspended Covenants”).

In the event that IRSA and its Subsidiaries are not subject to the Suspended Covenants for any period of time as a result of the foregoing, and on any subsequent date (the “Reversion Date”) one of the Rating Agencies withdraws its Investment Grade Rating or downgrades its rating assigned to the Securities below an Investment Grade Rating, and as a result of such withdrawal or downgrade, the Securities no longer have Investment Grade Ratings from at least two (2) of the three (3) Rating Agencies, then IRSA will thereafter again be subject to the Suspended Covenants. The period of time between the Suspension Date and the Reversion Date is referred to as the “Suspension Period.” Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of Default will be deemed to have occurred as a result of a failure to comply with the Suspended Covenants during the Suspension Period (or upon termination of the Suspension Period or after that time based solely on events that occurred during the Suspension Period).

On the Reversion Date, all Indebtedness incurred during the Suspension Period will be classified to have been Incurred pursuant to the first paragraph of Section 3.16(to the extent such Indebtedness would be permitted to be incurred thereunder as of the Reversion Date and after giving effect to Indebtedness incurred prior to the Suspension Period and outstanding on the Reversion Date). To the extent such Indebtedness would not be so permitted to be Incurred pursuant to the first paragraph of Section 3.16 such Indebtedness will be deemed to have been outstanding on the Issue Date, so that it is classified as permitted under clause (f) of the second paragraph of Section 3.16.

39

IRSA shall promptly notify the Trustee in writing of the occurrence of any Covenant Suspension Event pursuant to this Section 3.15. In the absence of such notice, the Trustee shall assume that the Suspended Covenants are in full force and effect. IRSA shall promptly notify the Trustee in writing upon the reinstatement of the Suspended Covenants after a Reversion Date. In the absence of such notice, the Trustee shall assume that the Suspension Period continues to remain in effect. The Trustee will have no obligation to (i) independently determine or verify if any of the events described in this Section 3.15 have occurred, (ii) make any determination regarding the impact of actions taken during the Suspension Period on IRSA’ s or any of its Subsidiary’s future compliance with their covenants or (iii) notify the Holders of the commencement of the Suspension Period or the Reversion Date.

Section 3.16. Limitation on Incurrence of Additional Indebtedness.

(1) IRSA will not Incur any Indebtedness, including Acquired Indebtedness, except that IRSA may Incur Indebtedness, including Acquired Indebtedness, if, at the time of and immediately after giving pro forma effect to the Incurrence thereof and the application of the proceeds therefrom, the Consolidated Interest Coverage Ratio of IRSA is greater than 2.00 to 1, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence.

(2) Notwithstanding clause (1) above, IRSA may Incur the following Indebtedness (“Permitted Indebtedness”):

(a) Indebtedness in respect of the Securities, including Additional Securities;

(b) Guarantees of obligations permitted to be Incurred in accordance with this covenant;

(c) Hedging Transactions entered into in the ordinary course of business and not for speculative purposes, including, without limitation, Hedging Transactions in respect of the Securities;

(d) Indebtedness Incurred for the purpose of financing all or any part of the cost of constructing, acquiring or improving any asset used or useful in a Permitted Business of IRSA or a Subsidiary in an aggregate outstanding principal amount not to exceed 10% of total Consolidated Tangible Assets of IRSA, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence;

40

(e) Indebtedness between or among IRSA on the one hand, and any of its Subsidiaries, on the other hand;

(f) Indebtedness outstanding on the Issue Date, including, for the avoidance of doubt, any Existing Notes that have not been accepted for exchange pursuant to the Exchange Offer and any other Indebtedness of IRSA PC prior to its merger with and into IRSA;

(g) Indebtedness in respect of any obligations under workers’ compensation claims, severance payment obligations, payment obligations in connection with health or other types of social security benefits, unemployment or other insurance or self-insurance obligations, reclamation, statutory obligations, bankers’ acceptances, performance, surety or similar bonds, letters of credit or completion or performance guarantees and factoring and other financing of payables or receivables or other similar obligations in the ordinary course of business;

(h) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within five Business Days of its Incurrence;

(i) Refinancing Indebtedness in respect of:

(1) Indebtedness (other than Indebtedness owed to any Subsidiary of IRSA) Incurred pursuant to clause (1) of this Section 3.16 (it being understood that no Indebtedness outstanding on the Issue Date is Incurred pursuant to such clause (1)), or

(2) Indebtedness Incurred pursuant to clauses (2)(a), (d), (f), (i) or (j) of this Section 3.16;

(j) Acquired Indebtedness if the Consolidated Interest Coverage Ratio for IRSA’s most recently completed four fiscal quarters determined immediately after giving effect to such Incurrence and the related acquisition (including through a merger, consolidation or otherwise) is equal to or greater than the Consolidated Interest Coverage Ratio of IRSA determined immediately before giving effect to such Incurrence and the related acquisition;

(k) Indebtedness arising from agreements providing for indemnification, adjustment of purchase price or similar obligations, in each case, Incurred in connection with the disposition of any business, assets or Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Subsidiary for the purpose of financing such acquisition; provided that the maximum aggregate liability in respect of all such Indebtedness will at no time exceed the gross proceeds actually received by IRSA in connection with such disposition;

41

(l) Indebtedness to the extent the net proceeds thereof are promptly used to redeem the Securities in full or deposited to defease or discharge the Securities, in each case in accordance with this Indenture;

(m) Deeply Subordinated Indebtedness;

(n) Indebtedness represented by working capital Indebtedness in an aggregate outstanding principal amount not to exceed US$40,000,000 (or the equivalent thereof in another currency at the time of determination); and

(o) Additional Indebtedness in an aggregate outstanding principal amount not to exceed 15.0% of consolidated total assets of IRSA, calculated as of the end of the most recent fiscal quarter ending prior to the date of such Incurrence.

(3) For purposes of determining compliance with, and the outstanding principal amount of, any particular Indebtedness Incurred pursuant to and in compliance with this covenant, the amount of Indebtedness issued at a price that is less than the principal amount thereof will be equal to the amount of the liability in respect thereof determined in accordance with IFRS. Accrual of interest, the accretion or amortization of original issue discount, the payment of regularly scheduled interest in the form of additional Indebtedness of the same instrument with the same terms will not be deemed to be an Incurrence of Indebtedness for purposes of this Section 3.16; provided that any such outstanding additional Indebtedness paid in respect of Indebtedness Incurred pursuant to any provision of clause (2) of this Section 3.16 will be counted as Indebtedness outstanding thereunder for purposes of any future Incurrence under such provision. For purposes of determining compliance with this Section 3.16, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in clauses (2)(a) through (2)(o) of this Section 3.16, or is entitled to be incurred pursuant to paragraph (1) of this Section 3.16, IRSA will be permitted to classify such item of Indebtedness on the date of its incurrence and may, in its sole discretion, divide and classify an item of Indebtedness in one or more of the types of Indebtedness and may later re-divide or reclassify all or a portion of such item of Indebtedness in any manner that complies with this covenant. Notwithstanding any other provision of this Section 3.16, the maximum amount of Indebtedness that IRSA may incur pursuant to this Section 3.16 shall not be deemed to be exceeded as a result solely of fluctuations in exchange rates or currency values.

42

Section 3.17. Limitation on Restricted Payments. IRSA shall not take any of the following actions (each, a “Restricted Payment”):

(a) declare or pay any dividend or make any distribution, whether in cash or in kind, on or in respect of shares of Capital Stock of IRSA to holders of such Capital Stock (other than dividends or distributions payable in Capital Stock of IRSA); or

(b) purchase, redeem or otherwise acquire or retire for value any shares of Capital Stock of IRSA (other than any such shares held by IRSA or a Subsidiary);

unless, at the time of the Restricted Payment and immediately after giving effect thereto:

(i) no Event of Default shall have occurred and be continuing;

(ii) IRSA is able to Incur at least US$1.00 of additional Indebtedness pursuant to clause (1) of Section3.16; and

(iii) The aggregate amount of such Restricted Payment and all other Restricted Payments made subsequent to the Issue Date (excluding those permitted to be made pursuant to the further provisions below) exceeds the sum of:

(A) 100% of cumulative Consolidated EBITDA for the period (treated as one accounting period) from July 1, 2020 through the last day of the last fiscal quarter ended prior to the date of such Restricted Payment minus an amount equal to 150% of cumulative Consolidated Interest Expense for such period; and

(B) any reductions of Indebtedness of IRSA or its Subsidiaries after the Issue Date (other than Indebtedness of Subsidiaries owed to IRSA) by conversion or exchange to Capital Stock of IRSA or its Subsidiaries.

Notwithstanding the preceding paragraph, this Section 3.17 will not prohibit:

(1) the payment of any dividend or distribution or redemption within sixty (60) days after the date of declaration of such dividend or distribution or notice of redemption if such payment would have been permitted on the date of such declaration or notice;

(2) the purchase, redemption or other acquisition or retirement of any Capital Stock of IRSA made in exchange for or out of the proceeds of the issuance or sale of Capital Stock of IRSA;

(3) the purchase, redemption or other acquisition or retirement of any Capital Stock or other securities exercisable or convertible into Capital Stock from any current or former employees, officers, directors or consultants of IRSA or any of its Subsidiaries or their authorized representatives upon the death, disability or termination of employment or directorship of such employees, officers or directors, or the termination of retention of any such consultants;

43

(4) the purchase, redemption or other acquisition or retirement of any Capital Stock deemed to occur upon the exercise of stock options, warrants or similar rights if such Capital Stock represents a portion of the exercise price of those stock options, warrants or similar rights;

(5) the purchase, redemption or other acquisition or retirement of any fractional shares arising out of stock dividends, splits or combinations or business combinations;

(6) payments or distributions to dissenting stockholders of Capital Stock of IRSA or its Subsidiaries pursuant to applicable law in connection with a consolidation, merger or similar transaction that complies with the provisions of this Indenture;

(7) Restricted Payments in an amount not to exceed the sum of the aggregate net proceeds and the Fair Market Value of any property or other assets received by IRSA or any Subsidiary after the Issue Date from (i) contributions of capital or the issuance or sale of Capital Stock or (ii) the issuance of any Indebtedness of IRSA or any of its Subsidiaries that has been converted into or exchanged for Capital Stock after the Issue Date; or

(8) Restricted Payments in an aggregate amount made subsequent to the Issue Date not to exceed the greater of US$50.0 million (or the equivalent in other currencies) and 10% of the consolidated total assets of IRSA as of the last date of the most recent fiscal quarter of IRSA.

Section 3.18. Limitation on Liens. IRSA will not Incur any Liens (except for Permitted Liens) against or upon any of its properties or assets, whether owned on the Issue Date or acquired after the Issue Date, or any proceeds therefrom, to secure any Indebtedness, without expressly providing that the Securities are secured equally and ratably with the obligations so secured for so long as such obligations are so secured.

Section 3.19. Limitation on Transactions with Affiliates. IRSA will not enter into any transaction or series of related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each an “Affiliate Transaction”), unless the terms of such Affiliate Transaction are not materially less favorable than those that could reasonably be expected to be obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of IRSA; provided that the foregoing limitation will not apply to:

(a) Affiliate Transactions with or among IRSA and any of its Subsidiaries;

44

(b) fees and compensation paid to, and any indemnity and insurance provided on behalf of (and entering into related agreement with), officers, directors, employees, consultants or agents of IRSA or any Subsidiary as determined in good faith by IRSA’s Board of Directors;

(c) Affiliate Transactions undertaken pursuant to any contractual obligations or rights in existence on the Issue Date and any amendment, modification or replacement of such agreement (so long as such amendment, modification or replacement is not materially more disadvantageous to the Holders of the Securities, taken as a whole, than the original agreement as in effect on the Issue Date);

(d) loans and advances to officers, directors and employees of IRSA or any Subsidiary in the ordinary course of business in an aggregate outstanding principal amount not exceeding US$1,000,000 (or the equivalent in other currencies); and

(e) transactions in which IRSA delivers to the Trustee a written opinion from an Independent Financial Advisor stating that such transaction or series of transactions is fair to IRSA from a financial point of view or stating that that the terms thereof are not materially less favorable to IRSA than those that could reasonably be expected to have been obtained by IRSA in a comparable transaction at the time of the Affiliate Transaction in arm’s length dealings with a Person who is not an Affiliate.

Section 3.20. Conduct of Business. IRSA and its Subsidiaries, taken as a whole, will remain primarily engaged in Permitted Businesses.

Section 3.21. Change of Control. (a) Upon the occurrence of a Change of Control Triggering Event, each Holder will have the right to require that IRSA purchase all or a portion (in integral multiples of US$1.00) of the Holder’s Securities at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon to (and excluding) the date of purchase (the “Change of Control Payment”).

(b) Within thirty (30) days following the date upon which the Change of Control Triggering Event occurred, IRSA must deliver a notice to each Holder, with a copy to the Trustee, offering to purchase the Securities as described above (a “Change of Control Offer”). The Change of Control Offer shall state, among other things, the purchase date, which must be no earlier than thirty (30) days nor later than sixty (60) days from the date the notice is given, other than as may be required by law (the “Change of Control Payment Date”).

(c) On the Business Day immediately preceding the Change of Control Payment Date, IRSA will, to the extent lawful deposit with the Paying Agent funds in an amount equal to the Change of Control Payment in respect of all Securities or portions thereof so tendered and not withdrawn. On the Change of Control Payment Date, IRSA will, to the extent lawful:

(1) accept for payment all Securities or portions thereof properly tendered and not withdrawn pursuant to the Change of Control Offer; and

45

(2) deliver or cause to be delivered to the Trustee the Securities so accepted together with an Officer’s Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by IRSA.

(d) If only a portion of a Security is purchased pursuant to a Change of Control Offer, a new Security in a principal amount equal to the portion thereof not purchased will be issued in the name of the Holder thereof upon cancellation of the original Security (or appropriate adjustments to the amount and beneficial interests in a Global Security will be made, as appropriate). In all cases Holders of the Securities shall be treated on an equal basis.

(e) IRSA will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by IRSA and purchases all Securities properly tendered and not withdrawn under the Change of Control Offer, or (2) notice of redemption has been given pursuant to this Indenture as described under Section 10.1 unless and until there is a default in payment of the applicable redemption price.

(f) In the event that Holders of not less than 95% of the aggregate principal amount of the Outstanding Securities accept a Change of Control Offer and IRSA or a third party purchases all of the Securities held by such Holders, IRSA will have the right, on not less than thirty (30) nor more than sixty (60) days’ prior notice, given not more than thirty (30) days following the Change of Control Payment Date described above, to redeem all of the Securities that remain Outstanding following such purchase at a purchase price equal to the Change of Control Payment plus, to the extent not included in the Change of Control Payment, accrued and unpaid interest, if any, on the Securities that remain Outstanding, to, but excluding, the date of repurchase (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date).

(g) Holders, by acceptance of the Securities, are deemed to acknowledge that other existing and future Indebtedness of IRSA may contain prohibitions on the occurrence of events that would constitute a Change of Control or require that Indebtedness to be repurchased upon a Change of Control. Moreover, the exercise by the Holders of their right to require IRSA to repurchase the Securities upon a Change of Control Triggering Event may cause a default under such Indebtedness even if the Change of Control itself does not.

Holders, by acceptance of the Securities, are deemed to acknowledge that if a Change of Control Triggering Event occurs, there can be no assurance that IRSA will have available funds sufficient to make the Change of Control Payment for all the Securities that might be delivered by Holders seeking to accept the Change of Control Offer.

46

(h) Holders will not be entitled to require IRSA to purchase their Securities in the event of a takeover, recapitalization, leveraged buyout or similar transaction which does not result in a Change of Control Triggering Event.

(i) IRSA will comply with the requirements of Rule 14e-l under the Exchange Act and any other applicable securities laws and regulations to the extent such laws and regulations are applicable in connection with a Change of Control Offer. To the extent that the provisions of any securities laws or regulations conflict with this Section 3.21, IRSA will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Indenture by doing so.

(j) Holders by acceptance of the Securities, are deemed to acknowledge that the definition of Change of Control includes a phrase relating to the direct or indirect sale, lease, transfer, conveyance or other disposition of “all or substantially all” of the properties or assets of IRSA and its Subsidiaries taken as a whole. Although there is a limited body of case law interpreting the phrase “substantially all,” there is no precise established definition of the phrase under applicable law. Accordingly, the ability of a Holder to require IRSA to repurchase its Securities as a result of a sale, lease, transfer, conveyance or other disposition of less than all of the assets of IRSA and its Subsidiaries taken as a whole to another Person or group may be uncertain.

ARTICLE IV

DEFAULTS AND REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

Section 4.1. Events of Default. If one or more of the following events (each an “Event of Default”) shall have occurred and be continuing with respect to the Securities:

(a) IRSA shall fail to pay any principal, premium or interest (or Additional Amounts, if any) on the Securities on the date when it becomes due and payable in accordance with the terms thereof, and such failure shall continue for a period of seven days (in the case of principal) or fourteen (14) days (in the case of interest or Additional Amounts, if any);

(b) IRSA shall fail duly to perform or observe any other covenant or obligation under this Indenture or the Securities, and such failure shall continue for a period of ninety (90) days after written notice to that effect is received by IRSA or by IRSA and the Trustee from the Holders of at least 25% in aggregate principal amount of the Outstanding Securities specifying such failure and requiring it to be remedied and stating that such notice constitutes a “notice of default” under this Indenture;

(c) IRSA shall fail to pay when due at the final scheduled maturity thereof principal of any of its Indebtedness in an aggregate past due principal amount of at least US$40,000,000 (or the equivalent thereof in another currency at the time of determination) and such failure shall continue after the cure period, if any, applicable thereto, or any other event of default shall occur under any agreement or instrument relating to any such Indebtedness in an aggregate principal amount of at least US$40,000,000 (or the equivalent thereof in another currency at the time of determination), and in each case such other event of default shall result in the acceleration of the final scheduled maturity thereof in an aggregate past due principal amount of at least US$40,000,000 (or the equivalent thereof at the time of determination) provided, that a failure to pay any amounts due under Existing Notes that are not accepted for exchange pursuant to the exchange offer described in the Exchange Offer Memorandum will not constitute an Event of Default under this clause (c);

47

(d) a court having jurisdiction enters a final decree or order for (1) relief in respect of IRSA in an involuntary case under the Argentine Law No. 24,522, as amended (the “Bankruptcy Law”), or any other applicable bankruptcy, insolvency or other similar law now or hereafter in effect or (2) the appointment under any applicable bankruptcy, insolvency or other similar law of an administrator, receiver or trustee for IRSA for all or substantially all of the property of IRSA and, in each case, such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or

(e) IRSA (1) commences a voluntary case under the Bankruptcy Law or any other applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or (2) consents to the appointment under any applicable bankruptcy, insolvency or other similar law of or taking possession by an administrator, receiver, trustee or intervenor for IRSA for all or substantially all of the properties of IRSA;

then the Trustee shall, upon the request of the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities, by written notice to IRSA, declare all the Securities then Outstanding to be immediately due and payable. If an Event of Default set forth in Section 4.1(c) has occurred and is continuing with respect to the Securities, such Event of Default shall be automatically rescinded and annulled once the event of default or payment default triggering such Event of Default pursuant to Section 4.1(c) shall be remedied or cured by IRSA or waived by the holders of the relevant Indebtedness. No such rescission and annulment shall affect any subsequent Event of Default or impair any right consequent thereto. Upon any such declaration of acceleration, the principal of the Securities and the interest accrued thereon and all other amounts payable with respect to such Securities shall become and be immediately due and payable. If the Event of Default or Events of Default giving rise to any such declaration of acceleration are cured following such declaration, such declaration may be rescinded by the Holders of such Securities in the manner set forth in this Indenture.

At any time after a declaration of acceleration has been made with respect to the Securities, the Holders of a majority in aggregate principal amount of the Outstanding Securities, by written notice to IRSA and the Trustee, may rescind and annul such declaration and its consequences if (i) the rescission would not conflict with any judgment or decree; (ii) IRSA has paid or deposited with the Trustee a sum sufficient to pay (A) all overdue installments of interest on the Securities, (B) the principal of (and premium, if any, on) the Securities which has become due otherwise than by such declaration of acceleration, and interest thereon at the rate or rates prescribed therefore by the terms of the Securities, to the extent that payment of such interest is lawful, and (C) all sums paid or advanced by the Trustee and the Agents hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, the Agents and their respective agents and counsel; and (iii) all Events of Default with respect to the Securities, other than the nonpayment of the principal, premium or interest on the Securities that has become due solely because of such acceleration, have been cured or waived. No such rescission shall affect any subsequent Event of Default or impair any right consequent thereto.

48

Section 4.2. Collection of Indebtedness by Trustee. IRSA covenants that (a) in case there shall be a default in the payment of any installment of interest (including Additional Amounts) on the Securities when such interest (including Additional Amounts) shall have become due and payable, and such default shall have continued for a period of fourteen (14) days or (b) in case there shall be a default in the payment of all or any part of the principal of the Securities when the same shall have become due and payable, whether upon maturity or by declaration or otherwise, and such default continues for a period of seven (7) days; then upon demand by the Trustee, IRSA will pay to the Trustee for the benefit of the Holders of the Securities the whole amount that then shall have become due and payable for principal or interest (including Additional Amounts), as the case may be (with interest to the date of such payment upon the overdue principal) and in addition thereto, IRSA will pay such further amount as shall be sufficient to cover the reasonable costs and expenses of collection, including reasonable compensation to, and reimbursement of the expenses of, the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and any expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee, as provided in Section 5.6, except as a result of its own negligence or willful misconduct.

In case IRSA shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment or final decree against IRSA or other obligor upon the Securities and collect in the manner provided by law out of the property of IRSA or other obligor upon such Securities, wherever situated, the moneys adjudged or decreed to be payable.

All rights of action and of asserting claims under this Indenture or under the Securities may be enforced by the Trustee without the possession of the Securities or the production thereof on any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities in respect of which such action was taken.

In any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee shall be held to represent all the Holders of the Securities in respect to which such action was taken, and it shall not be necessary to make any Holders of such Securities parties to any such proceedings.

49

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 4.3. Application of Proceeds. Any moneys collected by the Trustee pursuant to this Article IV in respect of Securities shall be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (including Additional Amounts), upon presentation of the Securities in respect of which moneys have been collected and stamping (or otherwise noting) thereon the payment, or issuing Securities in reduced principal amounts in exchange for the presented Securities if only partially paid, or upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due to the Trustee and/or any predecessor Trustee under Section 5.6, except for any such amounts that result from its own negligence or willful misconduct;

SECOND: To the payment of all amounts due to the Agents under Section 1.2;

THIRD: In case the principal shall not have become and be then due and payable, to the payment of overdue interest (including Additional Amounts) on the Securities in the order of the maturity of the installments of such interest (including Additional Amounts), with interest upon the overdue installments of interest (including Additional Amounts) at the rate or rates of interest specified in the Securities, such payments to be made ratably to the Persons entitled thereto, without discrimination or preference;

FOURTH: In case the principal shall have become and shall be then due and payable, to the payment of the whole amount then owing and unpaid upon all the Securities for principal and interest (including Additional Amounts), with interest upon the overdue principal, and upon overdue installments of interest (including Additional Amounts), at the rate or rates of interest specified in the Securities; and in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon the Securities, then to the payment of such principal and interest (including Additional Amounts), without preference or priority of principal over interest (including Additional Amounts), or of interest over principal, or of any installment of interest over any other installment of interest, or of the Security over any other Security, ratably to the aggregate of such principal and accrued and unpaid interest (including Additional Amounts); and

FIFTH: To the payment of the remainder, if any, to IRSA or any other Person lawfully entitled thereto of which the Trustee has received written notice.

50

Section 4.4. Suits for Enforcement. In case an Event of Default has occurred, has not been waived and is continuing, the Trustee may in its discretion (but is not required to) proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

Section 4.5. Restoration of Rights on Abandonment of Proceedings. In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case IRSA, the Holders and the Trustee shall, subject to any determination in such proceeding and to applicable law, be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of IRSA, the Trustee and the Securityholders shall continue as though no such proceedings had been taken.

Section 4.6. Limitations on Suits by Securityholders. Except as provided in Section 4.7, no Holder of any Security shall have any right by virtue or by availing itself of any provision of this Indenture or of the Securities, to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy hereunder, unless (i) such Holder previously shall have given to the Trustee written notice of default and of the continuance thereof with respect to the Securities, (ii) Holders of not less than 25% in aggregate principal amount of the Securities then Outstanding shall have made written request upon the Trustee to institute such action or proceedings in its own name as trustee hereunder and shall have offered to the Trustee such indemnity and/or security satisfactory to the Trustee as it may require against the costs, expenses and liabilities to be incurred therein or thereby, (iii) the Trustee for ninety (90) days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceeding and (iv) no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 4.9; it being understood and intended that no Holder of Securities shall have any right in any manner whatever by virtue of any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of the Securities.

Section 4.7. Unconditional Right of Securityholders to Institute Certain Suits. Notwithstanding any other provision in this Indenture and any provision of any Security, the right of any Holder of any Security to receive payment of the principal of and interest on such Security (including Additional Amounts) on or after the respective due dates expressed in such Security, or to institute suit, including a summary judicial proceeding (acción ejecutiva individual) in Argentina pursuant to Article 29 of the Negotiable Obligations Law, for the enforcement of any such payment on or after such respective due dates, shall not be impaired or adversely affected without the consent of such Holder.

51

Section 4.8. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default. Except as provided in Section 4.6, no right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

No delay or omission of the Trustee or of any Securityholder to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to Section 4.6, every power and remedy given by this Indenture or by law to the Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

Section 4.9. Control by Securityholders. Subject to Section 5.1(e), the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding shall have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Securities by this Indenture; provided that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture and shall not expose the Trustee to personal liability and shall not be unduly prejudicial to the interests of Holders of the Securities not joining in the giving of said direction, it being understood that (subject to Section 5.1) the Trustee shall have no duty to ascertain whether or not such actions or forbearance are unduly prejudicial to such Holders.

Nothing in this Indenture shall impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction or directions by Securityholders.

Section 4.10. Waiver of Past Defaults. At a meeting duly convened at which a quorum is present as provided in Section 6.6 or by any other reliable means as provided in such Section, the Holders of a majority in aggregate principal amount of the Outstanding Securities represented and voting at such meeting may, on behalf of the Holders of all the Securities, waive any past or present default or Event of Default with respect to such Securities and its consequences, except a default in respect of a covenant or provision hereof that cannot be modified or amended without the consent of greater than a majority of the Holders of Outstanding Securities as provided in Section 7.2. In the case of any such waiver, IRSA, the Trustee and the Holders of Securities shall be restored to their former positions and rights hereunder, respectively.

52

Upon any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred with respect to the Securities, and any Event of Default arising therefrom shall be deemed to have been cured, and not to have occurred for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon or affect the Securities.

Section 4.11. Payments after a Default. Upon the occurrence of an Event of Default with respect to the Securities and the subsequent declaration by the Trustee or the relevant Holders that the principal amount of all the Securities is due and payable immediately, the Trustee may by notice in writing: (a) to IRSA and any Paying Agent, require each Paying Agent to deliver all Securities and all moneys, documents and records held by it with respect to the Securities to the Trustee or as the Trustee otherwise directs in such notice; and (b) require any Paying Agent to act as agent of the Trustee under this Indenture and the Securities, and thereafter to hold all Securities and all moneys, documents and records held by it in respect to such Securities to the order of the Trustee; provided that the Trustee shall not thereby become obligated, or have any obligation, to compensate or indemnify such Paying Agent or to reimburse such Paying Agent for any expense.

Section 4.12. Notice of Events of Default. If an Event of Default occurs and is continuing with respect to the Securities of which the Trustee is deemed to have knowledge in accordance with Section 5.2, the Trustee shall give to Holders of Securities a notice of the Event of Default in accordance with Section 12.4 within ninety (90) days after the Trustee is deemed to have knowledge unless such Event of Default shall have been cured or waived. Except in the case of a default in payment on any Security, the Trustee may withhold the notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders.

ARTICLE V

 CONCERNING THE TRUSTEE

Section 5.1. Duties and Responsibilities of the Trustee. (a) Except during the continuance of an Event of Default,

(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

(2) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

53

(b) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent man would exercise under the circumstances in the conduct of his own affairs.

(c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligence or willful misconduct, except that

(1) this Subsection shall not be construed to limit the effect of Section 5.1(a);

(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in aggregate principal amount of the Outstanding Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and

(4) none of the provisions contained in this Indenture shall require the Trustee to expend, advance or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

(d) Whether or not herein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee is subject to this Article V.

(e) Notwithstanding any provision herein to the contrary, the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture unless such Securityholders shall have offered to the Trustee security and/or indemnity satisfactory to the Trustee against the costs, expenses and liabilities that might be incurred thereby.

54

Section 5.2. Certain Rights of the Trustee.

(a) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution of the Board of Directors, Officer’s Certificate or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties.

(b) Any request, direction, order or demand of IRSA mentioned herein shall be sufficiently evidenced by a Company Order (unless other evidence in respect thereof is herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the secretary of the Board of Directors of IRSA.

(c) The Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights or powers conferred upon it by this Indenture.

(d) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, guarantee, note, coupon, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document but, in the case of any document which is specifically required to be furnished to the Trustee pursuant to any provision hereof, the Trustee shall examine the document to determine whether it conforms to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein). The Trustee, in its discretion, may make further inquiry or investigation into such facts or matters as it sees fit.

(e) The Trustee may consult with counsel at IRSA’s expense and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

(f) The Trustee may execute any of its powers or perform any of its duties hereunder either directly or by or through agents or attorneys not regularly in its employ and the Trustee shall not be responsible for any negligence or willful misconduct on the part of any such agent or attorney appointed with due care by it hereunder.

(g) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by the Trustee in each of its capacities hereunder.

55

(h) Anything in this Indenture to the contrary notwithstanding, in no event shall the Trustee or any Agent be liable under or in connection with this Indenture and the Securities for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever, including but not limited to lost profits, whether or not foreseeable, even if the Trustee or such Agent has been advised of the possibility thereof and regardless of the form of action in which such damages are sought.

(i) The Trustee shall not be deemed to have notice of any Event of Default with respect to the Securities unless written notice of any event which is in fact such a default is received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.

(j) The Trustee may at any time request, and IRSA shall, deliver an Officer's Certificate setting forth the specimen signatures and the names of individuals and/or titles of Officers and Authorized Persons authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any Person authorized to sign an Officer's Certificate, including any Person specified as so authorized in any such certificate previously delivered and not superseded.

(k) Notwithstanding any provision herein to the contrary, in no event shall the Trustee be liable for any failure or delay in the performance of its obligations under this Indenture because of circumstances beyond its control, including, but not limited to, acts of God, epidemics, pandemics, flood, war (whether declared or undeclared), terrorism, fire, riot, strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services contemplated by this Indenture, inability to obtain material, equipment, or communications or computer facilities, or the failure of equipment or interruption of communications or computer facilities, and other causes beyond its control whether or not of the same class or kind as specifically named above.

(l) Neither the Trustee nor any Agent shall have any liability or responsibility with respect to, or obligation or duty to monitor, determine or inquire as to IRSA’s compliance with any covenant under this Indenture (other than the covenant to make payment on the Securities).

(m) Any resolutions of the Board of Directors of IRSA required to be delivered to the Trustee pursuant to this Indenture may be in Spanish and need not be accompanied by an English translation and the Trustee shall have not duty or obligation to review such resolutions or otherwise inquire as to or confirm the content thereof, and the Trustee may conclusively rely upon the receipt of any such resolutions as to the requisite authority for the action relating to purpose for which they were delivered.

56

(n) To the extent that the consent or authorization of the CNV or any other Argentine governmental or regulatory authority or compliance with the Negotiable Obligations Law is required for IRSA's, the Trustee's or any Agent's performance under the Securities or this Indenture, none of the Trustee or any Agent shall have any duty or obligation to determine whether such approval, consent or authorization or compliance is required or any duty or obligation to obtain any consent, approval or authorization or ensure such compliance. IRSA shall notify the Trustee and the Agents, as applicable, in writing if the approval, consent or authorization of the CNV or such other Argentine governmental or regulatory authority or compliance with the Negotiable Obligations Law, as applicable, is required for IRSA's or the Trustee's or any Agent’s performance under the Securities or this Indenture and, if applicable, whether or not such consent has been obtained by IRSA.

(o) Neither the Trustee nor any Agent shall be liable or responsible for determining if the aggregate principal amount of Securities issued under this Indenture (together with any other debt securities issued pursuant to the Program) exceed the maximum amount of debt securities issuable pursuant to the Program. IRSA’s delivery of Securities to the Trustee for authentication for time to time pursuant to Section 2.4 shall constitute a representation and warranty by IRSA that the issuance and authentication of such Securities shall not cause the maximum aggregate principal amount of outstanding debt securities allowed under the Program to be exceeded.

Section 5.3. Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof. The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of IRSA, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Indenture, the Exchange Offer Memorandum or any offering materials or of the Securities; provided that the Trustee represents that (i) it is duly authorized to execute this Indenture and perform its obligations hereunder, and (ii) it has reviewed the English translations of IRSA´s shareholders’ meeting minutes and IRSA´s Board of Directors’ meeting minutes referenced in the first and second recitals to this Indenture authorizing the creation of the Program and the issuance of the Securities. The Trustee shall not be accountable for the use or application by IRSA of any of the Securities or of the proceeds thereof.

Section 5.4. Trustee and Agents May Hold Securities; Collections, etc. The Trustee or any agent of IRSA or the Trustee, in its individual or any other capacity, may become the owner or pledgee of the Securities with the same rights it would have if it were not the Trustee or such agent and may otherwise deal with IRSA and receive, collect, hold and retain collections from IRSA with the same rights it would have if it were not the Trustee or such agent. If the Trustee has or shall acquire a conflicting interest (within the meaning of the Trust Indenture Act), the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by this Indenture.

57

Section 5.5. Moneys Held By Trustee. Subject to the provisions of Section 9.4, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. None of the Trustee, any Agent or any other agent of IRSA or the Trustee shall be under any liability for interest on or investment of any moneys received by it hereunder.

Section 5.6. Compensation and Indemnification of Trustee and Its Prior Claim. IRSA covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, (a) such amount as shall have been agreed in writing by IRSA and the Trustee (such compensation not to be limited by any provision of law in regards to the compensation of a trustee of an express trust) and (b) reimbursement of its reasonable, documented and invoiced out-of-pocket expenses, disbursements and advances (including the reasonable fees and expenses, disbursements and advances of its agents and counsel) incurred by it in connection with the services rendered by it hereunder.

IRSA also covenants to indemnify and defend the Trustee for, and to hold it harmless against, any loss, damage, claim, cost liability or expense (including, without limitation, the reasonable compensation and the expenses and disbursements of its counsel) arising out of or in connection with the acceptance or administration of this Indenture or the trusts hereunder and the performance of its duties and the exercise of its rights hereunder, including the reasonable costs and expenses of defending itself against or investigating any claim of liability in the premises, except to the extent such loss, liability or expense is due to its own negligence or willful misconduct. The obligations of IRSA under this Section 5.6 to compensate and indemnify the Trustee and each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute additional Indebtedness hereunder and shall survive payment of the Securities, the resignation or removal of such Trustee and/or the satisfaction and discharge of this Indenture. As security for the performance of IRSA’s obligations under this Indenture, the Trustee shall have a lien prior to the Securities on all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (and premium, if any) or interest on particular Securities.

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 4.1(d) or (e) occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any bankruptcy law.

Section 5.7. Right of Trustee to Rely on Officer’s Certificate, etc. Whenever in the administration of the trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof shall be herein specifically prescribed) may be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee, and such certificate shall be full warranty to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.

58

Section 5.8. Persons Eligible for Appointment as Trustee. The Trustee for the Securities hereunder shall at all times be a Person that has a combined capital and surplus of at least US$50,000,000, is authorized under the laws of the jurisdiction in which it is doing business to exercise corporate trust powers, and is subject to supervision or examination by federal, state, territorial or other governmental authority. If such Person publishes reports of condition at least annually, pursuant to the law or to the requirements of such federal, state, territorial or other governmental authority, then for the purposes of this Section 5.8, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

Section 5.9. Resignation and Removal; Appointment of Successor Trustee. (a) Subject to Section 5.9(d), the Trustee, or any trustee hereafter appointed, may at any time resign with respect to the Securities by giving thirty (30) days’ written notice of resignation to IRSA. If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 5.8, it shall resign immediately in the manner and with the effect hereinafter specified in this Section 5.9. Upon receiving such notice of resignation, IRSA shall promptly appoint a successor trustee for the Securities by written instrument in duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee or trustees. If no successor trustee shall have been so appointed and have accepted appointment within thirty (30) days after the giving of such notice of resignation, the resigning Trustee may, at the expense of IRSA, petition any court of competent jurisdiction for the appointment of a successor trustee, or the Holders of at least 10% in aggregate principal amount of the Outstanding Securities may petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and as it may prescribe, appoint a successor trustee.

(b) In case at any time any of the following shall occur:

(i) the Trustee shall cease to be eligible in accordance with the provisions of Section 5.8 and shall fail to resign after written request therefor by or on behalf of IRSA or by any Securityholder; or

(ii) the Trustee shall become incapable of acting with respect to the Securities, or shall be adjudged a bankrupt or insolvent, or a receiver or liquidator of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation;

then, in any such case, (i) IRSA may, by a resolution of the Board of Directors and written notice to the Trustee, remove the Trustee with respect to the Securities and appoint a successor trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or (ii) the Holders of at least 10% in aggregate principal amount of the Outstanding Securities may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee with respect to such Securities. Such court may thereupon, after such notice, if any, as it may deem proper and as it may prescribe, remove the Trustee and appoint a successor trustee.

59

(c) The Holders of a majority in aggregate principal amount of the Securities at the time Outstanding may at any time remove the Trustee and appoint a successor trustee by delivering to the Trustee so removed, to the successor trustee so appointed and to IRSA the evidence provided for in Section 6.1 of the action in that regard taken by such Securityholders.

(d) Any resignation or removal of the Trustee and any appointment of a successor trustee pursuant to any of the provisions of this Section 5.9 shall not become effective prior to acceptance of appointment by the successor trustee as provided in Section 5.10.

Section 5.10. Acceptance of Appointment by Successor Trustee. Any successor trustee appointed as provided in Section 5.9 shall execute and deliver to IRSA and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as trustee for the Securities hereunder; but, nevertheless, on the written request of IRSA or of the successor trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section 9.4, pay over to the successor trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee all such rights, powers, duties and obligations. Upon request of any such successor trustee, IRSA shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a prior lien upon all property or funds held or collected by such trustee to secure any amounts then due it pursuant to the provisions of Section 5.6.

Upon acceptance of appointment by any successor trustee as provided in this Section 5.10, IRSA shall give, at its expense, notice thereof to the Securityholders as specified in Section 12.4 and the CNV, which notice shall include the name of the successor trustee and the address of its Corporate Trust Office. If IRSA fails to give such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given at the expense of IRSA.

No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article V, to the extent operative.

Section 5.11. Merger, Conversion, Consolidation or Succession to Business of Trustee. Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to substantially all the corporate trust business of the Trustee, including this transaction, shall be the successor of the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided that such Person shall be eligible under the provisions of Section 5.8.

60

In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee and deliver such Securities so authenticated as if such successor to the Trustee had itself authenticated such Securities; and, in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificate shall have the full force as provided in the Securities or in this Indenture as the certificate of the Trustee shall have; provided that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

Section 5.12. Representative of the Trustee in Argentina. As long as it is required by Argentine law or by the CNV, the Trustee will have a representative in Argentina for the sole purpose of receiving notices from the CNV and/or Holders. Banco Santander Argentina S.A. will initially act as the Representative of the Trustee in Argentina for such purposes. The Representative of the Trustee in Argentina accepts its appointment in relation to the Securities and shall perform all matters expressed to be performed by it in, and otherwise comply with, the provisions of Section 5.13.

Section 5.13. Application to Agents and to the Representative of the Trustee in Argentina. The Representative of the Trustee in Argentina need perform only those duties that are specifically set forth in this Section 5.13, and such duties shall be determined solely by the express provisions of this Section 5.13, or as Representative of the Trustee in Argentina may agree in writing from time to time with the Trustee and IRSA. No implied covenants or obligations shall be read into this Section 5.13, against the Representative of the Trustee in Argentina. The Representative of the Trustee in Argentina shall have only the rights and powers stated below. It is further acknowledged that the Representative of the Trustee in Argentina is not and shall not be considered as if it were the Trustee’s general attorney.

The duties of the Representative of the Trustee in Argentina up to the date hereof are solely to: (i) receive from Holders, IRSA, the Agents and any governmental or regulatory authority or entity, all letters, claims, requests, memoranda or any other document required by Argentine law or by the CNV Rules to be sent to, and received by, the Trustee, (ii) within three (3) Business Days of receipt, notify and/or deliver to the Trustee by facsimile all such letters, claims, requests, memoranda or documents, and (iii) following the express instructions of the Trustee, respond to or answer such letters, claims, requests, memoranda or documents.

61

The Representative of the Trustee in Argentina shall not be liable for any action it takes or omits to take in good faith, which it believes to be authorized or within its discretion, rights or powers.

IRSA shall pay to the Representative of the Trustee in Argentina from time to time, and the Representative of the Trustee in Argentina shall be entitled to, such compensation for its acceptance of this Section 5.13 and its services hereunder. The fees of the Representative of the Trustee in Argentina shall be in an amount agreed between IRSA and the Representative of the Trustee in Argentina. IRSA shall reimburse the Representative of the Trustee in Argentina promptly upon request for all reasonable disbursements, advances and expenses incurred or made by or on behalf of it in addition to the compensation for its services. Such expenses may include the reasonable compensation, disbursements and expenses of the Representative of the Trustee in Argentina’s agents, counsel and other persons not regularly in its employ.

IRSA agrees to indemnify the Representative of the Trustee in Argentina for, and to hold it harmless against, any loss, liability or expense, including, without limitation, the fees and expenses of legal counsel, reasonably incurred without negligence, bad faith or willful misconduct on its part, arising out of or in connection with the acceptance of its commitments hereunder, the performance of its duties hereunder and/or the exercise of its rights hereunder, including, without limitation, the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

Section 5.14. Application to Agents. IRSA hereby agrees that the rights, protections, immunities and indemnities in the provisions of Sections 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.12 shall apply to the Agents and to the Representative of the Trustee in Argentina as if each of the Agents and the Representative of the Trustee in Argentina were expressly named therein.

ARTICLE VI

 CONCERNING THE SECURITYHOLDERS

Section 6.1. Evidence of Action Taken by Securityholders. Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by the Securityholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments is or are delivered to the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and IRSA, if made in the manner provided in this Article VI.

62

Section 6.2. Proof of Execution of Instruments and of Holding of Securities; Record Date. The execution of any instrument by a Securityholder or his agent or proxy may be proved in accordance with Section 6.6 and such reasonable applicable rules and regulations or in such manner as shall be satisfactory to the Trustee. The holding of Securities shall be proved by the Register maintained pursuant to Section 2.10. IRSA, by or pursuant to a resolution of its Board of Directors, may set a record date for purposes of determining the identity of Holders of Securities entitled to vote or consent to any action referred to in Section 6.1, which record date may be set by IRSA at any time or from time to time. Any such record date shall be notified to the Trustee in writing not more than sixty (60) days nor less than five (5) days prior to the proposed date of such vote or consent. Notwithstanding any other provisions hereof, only Holders of Securities of record on such record date shall be entitled to so vote or give such consent or revoke such vote or consent. The Trustee shall provide to IRSA at its request a written notice with the details of the Holders of record of each relevant record date.

Section 6.3. Holders to Be Treated as Owners. Subject to the rights of the relevant Holders as of a Regular Record Date to receive payments to which they are entitled on the relevant Payment Date and Section 2.9, IRSA, the Trustee, the Agents and any agent of IRSA, the Trustee or the Agents may deem and treat any Person in whose name any Security shall be registered upon the Register as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of and, subject to the provisions of this Indenture, interest on such Security (including Additional Amounts) and for all other purposes; and none of IRSA, the Trustee, any Agent and any agent of IRSA, the Trustee or any Agent shall be affected by any notice to the contrary. All such payments so made to any such Person, or upon its order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Security. Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall prevent IRSA , the Trustee, the Agents or any agent of IRSA, the Trustee or any Agent, from giving effect to any written certification, proxy or other authorization furnished by any Depositary, as Holder of such Global Security, or impair, as between such Depositary and owners of beneficial interests in such Global Security, the operation of customary practices governing the exercise of the rights of such Depositary (or its nominee), as Holder of such Global Security.

Section 6.4. Securities Owned by IRSA Deemed Not Outstanding. In determining whether quorum has been established in accordance with Section 6.6 or whether the Holders of the requisite aggregate principal amount of Outstanding Securities have concurred in any request, consent or waiver under this Indenture, Securities that are owned by IRSA or any of its Subsidiaries or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such request, consent or waiver, only Securities with respect to which a Responsible Officer of the Trustee has received written notice that such Securities are so owned shall be so disregarded. Securities so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not IRSA or any of its Subsidiaries or any other obligor upon such Securities. In case of a dispute as to such right, the advice of counsel shall be full protection in respect of any decision made by the Trustee in accordance with such advice. Upon request of the Trustee, IRSA shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all Securities, if any, known by IRSA to be owned or held by or for the account of any of the above-described Persons, and the Trustee shall be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not listed therein are Outstanding for the purpose of any such determination.

63

Section 6.5. Right of Revocation of Action Taken. At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 6.1, of the taking of any action by the Holders of the Securities or of the percentage of votes cast, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided in this Article VI, revoke such action so far as concerns such Security; provided, however, that such action may only be revoked in respect of such Security if any applicable withdrawal deadline in respect of the applicable consent solicitation or waiver request related to such action has not already passed. Except as aforesaid any such action taken by the Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in aggregate principal amount of the Securities or of the percentage of votes cast, as the case may be, specified in this Indenture in connection with such action shall be conclusively binding upon IRSA, the Trustee and the Holders of all the Securities affected by such action.

64

Section 6.6. Securityholders’ Meetings. (a) Each of IRSA (through the Board of Directors or the Supervisory Committee of IRSA) and the Trustee may at any time call a meeting of the Holders of the Securities for the purpose of entering into a supplemental indenture as provided in Section 7.2 or waiving a past default as provided in Section 4.10. In addition, a meeting of the Holders of Securities may be called by the Trustee or IRSA (through the Board of Directors or the Supervisory Committee of IRSA) at its discretion or upon the request of the Holders of at least 5% in aggregate principal amount of the Outstanding Securities, to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by the Holders. In the case of a request to call a meeting by Holders, IRSA shall notify the Trustee in writing of such request. In the event the Board of Directors or the Supervisory Committee of IRSA shall fail to call a meeting requested by the Trustee or the Holders as provided in the immediately preceding sentence, the meeting may be called by the CNV or by a competent court at the request of the Holders. In any case, meetings shall be held at such time and at such place as IRSA shall determine; provided that the meetings will be held in the City of Buenos Aires in accordance with the Negotiable Obligations Law. Any resolution duly passed at a meeting held in accordance with this Section 6.6 of the Holders of Securities will be binding on all Holders of the Securities (whether or not they were present at the meeting at which such resolution was passed). If a meeting is being held pursuant to the written request of Holders, the agenda for the meeting shall be that set forth in the request made by such Holders and such meeting shall be convened within forty (40) days from the date such written request is received by the Trustee or IRSA, as the case may be. Any such meeting held pursuant to written request of the Holders will be held simultaneously in the City of Buenos Aires and New York City by means of telecommunications which permit the participants to hear and speak to each other. Notice of any meeting of Holders of Securities (which shall include the date, place and time of the meeting, the agenda therefor and the requirements to attend) shall be given by IRSA not less than ten (10) days nor more than thirty (30) days prior to the date fixed for the meeting in accordance with Section 12.4 and in the Official Gazette of Argentina (Boletín Oficial), in one other newspaper of wide circulation in Argentina, and also in the manner provided under Section 12.4 and any publication thereof shall be for five (5) consecutive Business Days in each place of publication. Meetings of Holders may be simultaneously convened for two (2) dates, in case the initial meeting were to be adjourned for lack of quorum. However, for meetings that include in the agenda items requiring a specified majority approval by the Holders, notice of a new meeting resulting from adjournment of the initial meeting for lack of quorum shall be given not less than eight (8) days prior to the date fixed for such new meeting and shall be published for three (3) Business Days in the Official Gazette of Argentina, a newspaper of wide circulation in Argentina and the BCBA’s Informative Bulleting (as long as the Securities are listed and traded on the BYMA) or such other informative systems of the markets in which the Securities are listed as is applicable. To be entitled to vote at any meeting of Securityholders a Person shall be (i) a Holder of one or more Securities as of the relevant record date determined pursuant to Section 6.2 or (ii) a Person appointed by an instrument in writing as proxy by such Holder. The only Persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of IRSA and its counsel and the Trustee and its counsel. With respect to all matters not contemplated in this Indenture, meetings of Securityholders will be held in accordance with Argentine Companies Law. Holders entitled to vote, as described above, may vote and consent to any amendments through any other reliable means that ensure Securityholders prior access to information and allow them to vote, in accordance with Section 14 of the Argentine Negotiable Obligations Law (as amended by Section 151 of the Argentine Productive Financing Law No. 27,440), as amended. Notwithstanding the method of approval by Securityholders of the Securities, whether at a meeting of Securityholders or by written action, any modification, amendment or waiver to any provision of this Indenture or to the Securities must be approved by Securityholders holding the applicable aggregate principal amount of Outstanding Securities required by this Indenture.

(b) The quorum at any meeting of Holders of the Securities called to adopt a resolution will be Persons holding or representing a majority in aggregate principal amount of the Outstanding Securities and at any reconvened adjourned meetings will be the Persons present at such reconvened adjourned meeting. At a meeting or a reconvened adjourned meeting duly convened and at which a quorum is present, any resolution to modify or amend, or to waive compliance with, any provision of the Securities (other than items requiring consent of the Holders of 90% in aggregate principal amount of the Outstanding Securities) will be validly passed and decided if approved by the Persons entitled to vote a majority in aggregate principal amount of the Securities then Outstanding represented and voting at the meeting. Any instrument given by or on behalf of any Holder of a Security in connection with any consent to any such modification, amendment or waiver will be irrevocable once given and will be conclusive and binding on all subsequent Holders of such Security. Any modifications, amendments or waivers to this Indenture or to the Securities will be conclusive and binding upon all Holders of Securities whether or not they have given such consent or were present at any meeting, and on all Securities; provided, that no such modifications, amendments or waivers, without the consent of the Holders of 90% in aggregate principal amount of the Outstanding Securities shall modify, amend or waive any of the items included in clauses (a) through (g) of Section 7.2.

65

(c) Any Securityholder who has executed an instrument in writing appointing a Person as proxy shall be deemed to be present for the purposes of determining a quorum and be deemed to have voted; provided that such Securityholder shall be considered as present or voting only with respect to the matters covered by such instrument in writing. Any resolution passed or decision taken at any meeting of Securityholders duly held or by any other reliable means, in accordance with this Section 6.6, shall be binding on all the Securityholders whether or not present or represented at the meeting or participated in the other reliable means.

(d) The appointment of any proxy shall be proved by having the signature of the Person executing the proxy guaranteed or certified by any notary public, bank or trust company or judicially certified in the manner provided under Argentine law. The following persons may not act as proxies: members of the Board of Directors or of the Supervisory Committee of IRSA and managers and other employees of IRSA. The holding of Securities shall be proved by the Register maintained in accordance with Section 2.10; provided that the holding of a beneficial interest in a Global Security shall be proved by a certificate or certificates of DTC.

(e) The Trustee, acting as a representative of the Holders, may appoint a representative to act as the chairman of each meeting of the Holders of the Securities. If the Trustee elects not to designate a representative to act as chairman of a meeting, the chairman of the meeting shall be: (i) a member of the Supervisory Committee designated by IRSA; (ii) should IRSA fail to designate a member of the Supervisory Committee, a representative designated by the controlling government agency; or (iii) should the controlling government agency fail to designate a representative, a Person appointed by a competent court. Notwithstanding the foregoing, if the meeting is called by the CNV or by a competent court at the request of the Holders of the Securities, the CNV or the competent court shall designate a Person to act as chairman. The secretary of the meeting shall be elected by vote of the Holders of a majority in aggregate principal amount of the Securities represented at the meeting. At any meeting of Securityholders, each Securityholder or proxy shall be entitled to cast one vote for each U.S. dollar in the principal amount of the Securities held by such Holder or represented by such proxy. No vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote except as a Holder or proxy. Any meeting of Holders duly called at which a quorum is present may be adjourned from time to time, and the meeting may be held as so adjourned without further notice.

66

(f) The vote upon any resolution submitted to any meeting of Securityholders shall be by written ballot on which shall be subscribed the signatures of the Securityholders or proxies and on which shall be inscribed the serial number or numbers of the Securities held or represented by them. A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be attached to said record the ballots of the votes. The record shall be signed and verified by the chairman and secretary of the meeting and one of the duplicates shall be delivered to IRSA and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.

(g) For avoidance of doubt, the Trustee shall not be required or otherwise obligated to attend any meeting of the Holders of the Securities; provided however that in the event IRSA or the Holders notify the Trustee that a meeting of the Holders of the Securities will be held, upon request of IRSA, the Trustee shall deliver written notice to the requesting party indicating whether or not the Trustee shall attend such meeting.

Section 6.7. Preservation of Information; Communications to Holders. (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee and the names and addresses of Holders received by the Trustee in its capacity as Co- Registrar. The Trustee may destroy any list furnished to it upon receipt of a new list so furnished.

(b) Every Holder of Securities, by receiving and holding the same, agrees with IRSA and the Trustee that neither IRSA nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the provisions of this Indenture.

Section 6.8. Reports by IRSA. IRSA shall file with the Trustee, and transmit to Holders, such information, documents and other reports, and such summaries thereof, if any, as may be required pursuant to this Indenture.

Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt thereof shall not constitute actual or constructive notice or knowledge of any information contained therein or determinable from information contained therein, including compliance by IRSA or its Subsidiaries with any of their respective covenants hereunder.

67

ARTICLE VII

 SUPPLEMENTAL INDENTURES

Section 7.1. Supplemental Indentures Without Consent of Securityholders. IRSA, when authorized by a resolution of the Board of Directors of IRSA, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for one or more of the following purposes:

(a) adding to the covenants of IRSA such further covenants, restrictions, conditions or provisions as are for the benefit of the Holders of the Securities;

(b) surrendering any right or power conferred upon IRSA hereunder;

(c) evidencing the succession of another Person to IRSA and the assumption by any such successor of the covenants and obligations of IRSA in the Securities and in this Indenture pursuant to Article VIII;

(d) complying with any requirement of the CNV, BYMA and/or the MAE in order to effect and maintain the qualification of this Indenture under Argentine law with such institution;

(e) complying with any requirements of the SEC in order to qualify this Indenture under the Trust Indenture Act;

(f) making any modification to conform this Indenture to the “Description of the New Notes” in the Exchange Offer Memorandum;

(g) making any modification which is of a minor or technical nature or correcting or supplementing any ambiguous, inconsistent or defective provision contained in this Indenture or in the Securities; or

(h) making any other modification or granting any waiver or authorization of any breach or proposed breach hereunder of any of the terms and conditions of the Securities or any other provisions of this Indenture in any manner which does not adversely affect the interests of the Holders of Securities in any material respect.

The Trustee is hereby authorized to join with IRSA in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but neither the Trustee nor any Agent shall be obligated to enter into any such supplemental indenture that adversely affects the Trustee’s own or such Agent’s own rights, duties or immunities under this Indenture or otherwise; provided, however, that no supplemental indenture shall amend, modify or supplement the rights, duties or immunities of any Agent unless executed by such Agent.

68

Any supplemental indenture authorized by the provisions of this Section 7.1 may be executed without the consent of the Holders of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 7.2.

Promptly after the execution by IRSA and the Trustee of any supplemental indenture pursuant to the provisions of this Section 7.1, IRSA, at its expense, shall give notice thereof to the Holders as specified in Section 12.4, and shall give notice to the CNV, BYMA and the MAE, as applicable, setting forth in general terms the substance of such supplemental indenture. Any failure of IRSA to give notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

Section 7.2. Supplemental Indentures With Consent of Securityholders. Without limiting the provisions of Section 7.1, IRSA, when authorized by a resolution of the Board of Directors of IRSA, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture, the Securities or of modifying in any manner the rights of the Holders of the Securities, with the affirmative vote, at a meeting of Holders or an adjourned meeting duly convened at which a quorum is present as provided in Section 6.6, or by any other reliable means as provided in such Section, of a majority in aggregate principal amount of the Securities then Outstanding represented and voting at such meeting or through any such other reliable means; provided that no such supplemental indenture shall, without the consent of at least 90% of the Holders of all of the Outstanding Securities directly and adversely affected thereby, (a) extend the scheduled due date for the payment of principal of, premium, if any, or any installment of interest on any such Security, (b) reduce the principal amount of, the stated rate of interest on or the premium payable upon redemption of any such Security, (c) reduce the obligation of IRSA to pay Additional Amounts on any such Security, (d) shorten the period during which IRSA is not permitted to redeem any such Security, (e) change the required places at which any such Security or the premium or interest thereon is payable, (f) reduce the percentage of the aggregate principal amount of such Securities necessary to modify, amend or supplement this Indenture or such Securities, or for waiver of compliance with certain provisions hereof or thereof or for waiver of certain defaults, or (g) reduce the percentage of the aggregate principal amount of Outstanding Securities required for the adoption of a resolution or the quorum required at any meeting of Holders of such Securities at which a resolution is adopted or to consent to any amendments through written consent.

Upon the request of IRSA and upon the filing with the Trustee of evidence of the consent of Securityholders as aforesaid and other documents, if any, required by Section 6.1 and upon the Trustee’s receipt of the documents required by Section 7.4, the Trustee shall join with IRSA in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture; provided, however, that no supplemental indenture shall amend, modify or supplement the rights, duties or immunities of any Agent unless executed by such Agent.

69

It shall not be necessary for the consent of the Securityholders under this Section 7.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

Promptly after the execution by IRSA and the Trustee of any supplemental indenture pursuant to the provisions of this Section 7.2, IRSA, at its expense, shall give notice thereof to the Holders as provided in Section 12.4, and to the CNV, setting forth in general terms the substance of such supplemental indenture. If IRSA shall fail to give such notice to the Holders within fifteen (15) days after the execution of such supplemental indenture and a Responsible Officer of the Trustee shall have notice of such failure, the Trustee shall give notice to the Holders as provided in Section 12.4 at the expense of IRSA. Any failure of IRSA or the Trustee to give such notice, or defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

Section 7.3. Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof and upon receipt of any necessary approval of the CNV, if applicable, this Indenture and the Securities shall be and shall be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture with respect to the Trustee, IRSA and the Holders of Securities shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

Section 7.4. Documents to Be Given to the Trustee. In connection with any amendment or supplemental indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively relying upon, an Officer’s Certificate and an Opinion of Counsel and receipt of resolutions of the Board of Directors as conclusive evidence that any supplemental indenture executed pursuant to this Article VII has been duly authorized by IRSA, complies with the applicable provisions of this Indenture and is authorized or permitted by the terms of this Indenture.

Section 7.5. Notation on Securities in Respect of Supplemental Indentures. Securities authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article VII may and shall if required by IRSA, bear a notation in form and manner approved by IRSA as to any matter provided for by such supplemental indenture or as to any action taken at any such meeting. If IRSA shall so determine, new Securities modified so as to conform to any modification of this Indenture contained in any such supplemental indenture may be prepared by IRSA at its expense, authenticated by the Trustee and delivered in exchange for the Securities then Outstanding.

Section 7.6. Conformity with Negotiable Obligations Law. Every supplemental indenture executed pursuant to this Article VII shall conform to the requirements of the Negotiable Obligations Law, the Capital Markets Law and the rules of the CNV, as then in effect.

70

ARTICLE VIII

MERGER, CONSOLIDATION, SALE OR CONVEYANCE

Section 8.1. IRSA May Consolidate, etc., on Certain Terms. IRSA covenants that it will not, in a single transaction or series of related transactions, consolidate with or merge into, any Person (whether or not IRSA is the surviving or continuing Person), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of IRSA’s properties and assets (determined on a consolidated basis for IRSA and its Subsidiaries), to any Person unless either:

(1) IRSA shall be the surviving or continuing corporation; or

(2) the Person (if other than IRSA) formed by such consolidation or into which IRSA is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties and assets of IRSA and of IRSA’s Subsidiaries (the “Surviving Entity”):

(A) shall be a corporation, organized and validly existing under the laws of a Qualified Merger Jurisdiction or any political subdivision thereof, and

(B) shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on all of the Securities and the performance and observance of every covenant of the Securities and this Indenture on the part of IRSA to be performed or observed.

For purposes of this Section 8.1, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of related transactions) of all or substantially all of the properties or assets of one or more Subsidiaries of IRSA, the Capital Stock of which constitutes all or substantially all of the properties and assets of IRSA (determined on a consolidated basis for IRSA and its Subsidiaries), will be deemed to be the transfer of all or substantially all of the properties and assets of IRSA.

Section 8.2. Surviving Entity Substituted. Upon any such consolidation, merger, sale, transfer, lease or other conveyance or disposal in which IRSA is not the continuing entity, such Surviving Entity formed by such consolidation or into which IRSA is merged or to which such conveyance, lease or transfer is made, shall succeed to and be substituted for, and may exercise every right and power of IRSA under this Indenture and the Securities with the same effect as if such Surviving Entity had been named as such.

71

In case of any such consolidation, merger, sale, transfer, lease or conveyance, such changes in phraseology and form (but not in substance) may be made in this Indenture and/or the Securities thereafter to be issued as may be appropriate.

In the event of any such sale or conveyance (other than a conveyance by way of lease) and assumption by the Surviving Entity, IRSA shall be discharged from all obligations and covenants under this Indenture and the Securities to be performed by IRSA and may be liquidated and dissolved.

No Surviving Entity shall have the right to redeem any Securities Outstanding unless IRSA would have been entitled to redeem such Securities pursuant to this Indenture in the absence of any such merger, consolidation, sale, transfer, lease or conveyance permitted under Section 8.1.

By purchasing Securities, Holders expressly waive their right to objection contemplated in Section 83, 88 and related provisions of Argentine Companies Law and Section 4 of Argentine Law No. 11,867, in the event that the merger or consolidation or the sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all the properties and assets of IRSA (determined on a consolidated basis) is made under the terms and conditions permitted by this Article VIII.

Section 8.3. Documents to Trustee. The Trustee may request, and IRSA shall provide, an Opinion of Counsel stating that any such consolidation, merger, sale, transfer, lease or other conveyance or disposition, and any such liquidation or dissolution, complies with the applicable provisions of this Indenture, the Securities and applicable law and an Opinion of Counsel and an Officer’s Certificate stating that all conditions precedent relating to such transaction and the execution of such supplemental indenture, if any, have been satisfied, and the Trustee may conclusively rely on such Opinion of Counsel and Officer’s Certificate as conclusive evidence of the matters described therein.

ARTICLE IX

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

72

Section 9.1. Satisfaction and Discharge of Indenture. If at any time (a) IRSA shall have paid or caused to be paid the principal of and interest (including Additional Amounts) on all the Securities Outstanding hereunder (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.11) as and when the same shall have become due and payable, or (b) IRSA shall have delivered to the Trustee for cancellation all Securities theretofore authenticated (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.11, or (c) (i) all the Securities not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one (1) year or are to be called for redemption within one (1) year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and (ii) IRSA shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds the entire amount in cash (other than moneys repaid by the Trustee or any Paying Agent to IRSA in accordance with Section9.3 or 9.4) sufficient to pay at maturity or upon redemption all Securities (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.11) not theretofore delivered to the Trustee for cancellation, including principal and interest (including Additional Amounts) due or to become due on or prior to such date of maturity or redemption, as the case may be, and if, in any such case, IRSA shall also pay or cause to be paid all other sums payable hereunder by IRSA, then this Indenture shall cease to be of further effect (except as to (i) rights of registration of transfer, exchange and replacement of Securities, and IRSA’s right of optional redemption, if any, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of Holders to receive payments of principal thereof and interest thereon (including Additional Amounts), (iv) the rights, protections, indemnities, and immunities of the Trustee, each of the Agents and the Representative of the Trustee in Argentina hereunder and the obligations of IRSA with respect thereto, and (v) the rights of the Securityholders as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them), and the Trustee, on written demand of IRSA accompanied by an Officer’s Certificate and an Opinion of Counsel and at the cost and expense of IRSA, shall execute instruments acknowledging such satisfaction of and discharging this Indenture; provided that the rights of Holders of the Securities to receive amounts in respect of principal of and interest on the Securities held by them shall not be delayed longer than required by then-applicable mandatory rules or policies of any securities exchange upon which the Securities are listed. IRSA agrees to reimburse the Trustee for any costs or expenses thereafter reasonably incurred (including reasonable fees and expenses of counsel) and to compensate the Trustee for any services thereafter rendered by the Trustee in accordance with the terms of this Indenture or the Securities. Notwithstanding the satisfaction and discharge of this Indenture, the obligations of IRSA to the Trustee, the Agents and the Representative of the Trustee in Argentina under Sections 1.2, 3.4(b), 5.6, 5.13, 5.14 and 11.5 shall survive.

Section 9.2. Application by Trustee of Funds Deposited for Payment of Securities. Subject to Section 9.4, all moneys deposited with the Trustee pursuant to Section 9.1 shall be held in trust and applied by it to the payment, either directly or through any Paying Agent (including IRSA acting as its own paying agent), to the Holders for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon as principal and interest (including Additional Amounts); but such money need not be segregated from other funds except to the extent required by law and the Trustee shall have no liability for interest thereon or the investment thereof.

Section 9.3. Repayment of Moneys Held by Paying Agent. In connection with the satisfaction and discharge of this Indenture, all moneys then held by any Paying Agent under the provisions of this Indenture with respect to the Securities shall, upon written demand of IRSA, be repaid to it or paid to the Trustee and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.

73

Section 9.4. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years. Any moneys deposited with or paid to the Trustee or any Paying Agent for the payment of the principal of or interest on any Security (including Additional Amounts) and not applied but remaining unclaimed for two (2) years after the date upon which such principal or interest (including Additional Amounts) or other amounts shall have become due and payable, shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to IRSA, upon written request, by the Trustee or such Paying Agent, and the Holder of such Security shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to IRSA for any payment that such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such moneys shall thereupon cease.

ARTICLE X

REDEMPTION AND REPURCHASE OF SECURITIES

Section 10.1. Notice of Redemption; Partial Redemptions. (a) IRSA may redeem the Securities in accordance with this Article X. Notice of redemption to the Holders of Securities to be redeemed pursuant to Section 10.4, Section 10.5, Section 10.6 or Section 3.21(f) shall be given to Holders as specified in Section 12.4 and, if applicable, to the CNV. Each notice of redemption at the option of IRSA shall specify the provision of this Indenture pursuant to which the redemption is being made, the aggregate principal amount of each Security held by the Holders to be redeemed, the date fixed for redemption (the “Redemption Date”), the redemption price, the place or places of payment, the CUSIP, ISIN, Common Code or other identifying codes, if any, that no representation is made as to the correctness or accuracy of the CUSIP, ISIN, Common Code or other identifying codes listed on such notice or printed on the Securities, that payment will be made upon presentation and surrender of such Securities, that interest accrued to (but excluding) the Redemption Date and any Additional Amounts will be paid as specified in such notice, that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue (unless IRSA defaults in the payment of any amounts due and owing under such Securities) and any other matter required to be specified therein by Argentine law or regulation. In case any Security is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the Redemption Date, upon surrender of any Certificated Security to be redeemed in part, a new Certificated Security or Securities in principal amount equal to the unredeemed portion thereof will be issued.

(b) IRSA shall deliver to the Trustee any notice of redemption specifying the information set forth above at least five (5) days prior to the date on which such notice of redemption will be given to the Holders or such later date as the Trustee shall agree. The notice of redemption of Securities to be redeemed at the option of IRSA shall be given to Holders by IRSA or, at IRSA’s written request at least two (2) Business Days prior to the date notice of redemption is deliverable to the Holders, which such request shall include all of the information required to be set forth in the notice of redemption, by the Trustee in the name and at the expense of IRSA. Notice of redemption shall be given the Holders of the Securities to be redeemed at least five (5) days but not more than sixty (60) days before the Redemption Date; provided, however, that notice of redemption pursuant to Section 3.21(f) shall be given to the Holders of the Securities at least thirty (30) days but not more than sixty (60) days before the Redemption Date. Such notice of redemption shall be irrevocable.

74

(c) If less than all the Securities are to be redeemed at the option of IRSA, the particular Securities to be redeemed shall be selected (a) in the case of Global Securities, in accordance with the applicable procedures of the Depositary and (b) in the case of Certificated Securities, by the Trustee from the Outstanding Securities not previously called for redemption (i) if the Securities are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Securities are listed or (ii) on a pro rata basis to the extent practicable. Upon any partial redemption of Securities, the Trustee shall (i) in the case of Securities represented by a Global Security, cancel the existing Global Security or Securities and authenticate and hold as custodian for DTC a new Global Security or Securities, as applicable, to reflect the aggregate principal amount of Securities Outstanding after such redemption and (ii) in the case of Certificated Securities, to the extent required, authenticate and deliver in exchange therefor one or more Securities, of any authorized denomination as requested by the Holder thereof, in an aggregate principal amount equal to the unredeemed portion of the principal of such partially redeemed Security. Securities may be redeemed in part in multiples equal to the minimum authorized denomination for Securities or any multiple thereof. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security that has been or is to be redeemed.

Section 10.2. Payment of Securities Called for Redemption. On or before 10:00 AM (New York City time) one (1) Business Day prior to the Redemption Date specified in the notice of redemption given as provided in Section 10.1, IRSA will deposit with the Trustee (or, if IRSA is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 3.4) an amount of money sufficient to redeem on the Redemption Date all the Securities so called for redemption at the appropriate redemption price, together with accrued and unpaid interest, if any, to, but excluding the Redemption Date and any Additional Amounts. If notice of redemption has been given to the Holders as provided in Section 10.1, the Securities or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to, but excluding, the Redemption Date and any Additional Amounts, and on and after said Redemption Date (unless IRSA shall default in the payment of such Securities at the redemption price, together with interest accrued to said date and any Additional Amounts) interest on the Securities or portions of Securities so called for redemption shall cease to accrue and, except as provided in Section9.4, such Securities shall cease from and after the date fixed for redemption to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except the right to receive the redemption price thereof and unpaid interest accrued to the Redemption Date and any Additional Amounts. On presentation and surrender, of such Securities at a place of payment specified in said notice, said Securities or the specified portions thereof shall be paid and redeemed by IRSA at the applicable redemption price, together with interest accrued thereon to, but excluding, the Redemption Date and any Additional Amounts (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date).

75

From and after the Redemption Date, if moneys for the redemption of the Securities called for redemption shall have been made available as provided herein for redemption on the Redemption Date, such Securities shall cease to bear interest, and the only right of the Holders of such Securities shall be to receive payment of the redemption price and all unpaid interest accrued to the Redemption Date and any Additional Amounts.

Notwithstanding any provision to the contrary in this Section 10.2, if any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the Redemption Date at the rate specified in the Security.

Upon presentation of any Certificated Security redeemed in part only, IRSA shall execute and the Trustee shall authenticate and deliver to or on the order of the Holder thereof, at the expense of IRSA, a new Certificated Security or Securities, of authorized denominations, in principal amount equal to the unredeemed portion of the Certificated Security so presented.

Section 10.3. Exclusion of Certain Securities from Eligibility for Selection for Redemption. Securities shall be excluded from eligibility for selection for redemption if they are identified by registration and certificate number in an Officer’s Certificate delivered to the Trustee at least ten (10) days prior to the date on which notice of redemption will be given as being owned of record and beneficially by, and not pledged or hypothecated by either (a) IRSA or (b) a Person specifically identified in such written statement as directly or indirectly controlled by IRSA.

Section 10.4. Redemption at the Option of IRSA for Taxation Reasons. (a)The Securities may be redeemed at the option of IRSA in whole, but not in part, at any time, on giving not less than five (5) nor more than sixty (60) days’ written notice (which shall be irrevocable) to the Holders and, if applicable, the CNV as required by Section 10.1, at 100% of the principal amount thereof, together with any accrued but unpaid interest and any Additional Amounts to, but excluding, the Redemption Date, if, as a result of any change in, or amendment to, the laws (or any regulations or rulings issued thereunder) of Argentina or any other jurisdiction in which IRSA is organized or is resident for tax purposes or through which payment on the Securities is made, or any political subdivision thereof or any authority therein (each an “Applicable Jurisdiction”), or any change in the application, administration or official interpretation of such laws, regulations or rulings, including without limitation the holding of a court of competent jurisdiction (a “Change in Tax Law”), IRSA has or will become obligated to pay Additional Amounts on or in respect of the Securities, which change or amendment is announced and becomes effective on or after the date of issuance of the Securities, and IRSA determines in good faith that such obligation cannot be avoided by IRSA taking reasonable measures available to it; provided that reasonable measures shall not include changing IRSA’s jurisdiction of organization or the location of its principal executive office or incurring any cost or expense that IRSA deems in good faith to be material; and provided further that no such notice of redemption shall be given earlier than ninety (90) days prior to the earliest date on which IRSA would be obliged to pay such Additional Amounts were a payment in respect of the Securities then due.

76

(b) Prior to the distribution of any notice of redemption pursuant to this Section 10.4, IRSA shall deliver to the Trustee (i) an Officer’s Certificate stating that IRSA has or will become obligated to pay Additional Amounts as a result of a Change in Tax Law and that such obligation cannot be avoided by IRSA taking reasonable measures available to it and (ii) an opinion of independent legal counsel qualified under the laws of Argentina to the effect that IRSA is or would become obligated to pay Additional Amounts as a result of a Change in Tax Law. The Trustee shall be entitled to accept such certificate and opinion of counsel as sufficient evidence of the satisfaction of the conditions to redemption by IRSA pursuant to this Section 10.4, in which event it will be conclusive and binding on the Holders. In all cases, Holders will be treated on an equal basis.

Section 10.5. Optional Make-Whole Redemption. (a) Prior to July 8, 2025 (the “First Call Date”), IRSA may, at its option, redeem the Securities, in whole at any time or in part from time to time, at a redemption price equal to the greater of (1) 100% of the outstanding principal amount of the Securities and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (excluding accrued but unpaid interest to, but excluding, the Redemption Date), discounted to the Redemption Date on a semi- annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

(b) “Treasury Rate” means, with respect to any Redemption Date, the yield determined by IRSA in accordance with the following two paragraphs.

The Treasury Rate shall be determined by IRSA after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, IRSA shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the First Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the First Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date.

77

If on the third Business Day preceding the Redemption Date H.15 or any successor designation or publication is no longer published, IRSA shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the First Call Date, as applicable. If there is no United States Treasury security maturing on the First Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the First Call Date, one with a maturity date preceding the First Call Date and one with a maturity date following the First Call Date, IRSA shall select the United States Treasury security with a maturity date preceding the First Call Date. If there are two or more United States Treasury securities maturing on the First Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, IRSA shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semiannual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

IRSA’s actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error. The Trustee shall have no obligation to calculate or verify any calculation of the redemption price.

Section 10.6. Optional Scheduled Redemption. On and after July 8, 2025, IRSA may redeem the Securities, at its option, in whole at any time or in part from time to time, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest to, but excluding, the Redemption Date (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date), if redeemed during the 12-month period commencing on July 8 of any year set forth below:

Year	Redemption Price
2025		104.3750	%
2026		102.1875	%
2027 and thereafter		100.000	%

78

ARTICLE XI

 
DEFEASANCE

Section 11.1. IRSA’s Option to Effect Total Defeasance or Partial Defeasance. IRSA may at its option, by written notice executed by an Authorized Person of IRSA delivered to the Trustee, elect to have either Section 11.2 or Section 11.3 applied to of the Securities in each case upon compliance with the conditions set forth below in this Article XI.

Section 11.2. Total Defeasance. If IRSA shall exercise the option provided in Section 11.1 to have this Section 11.2 apply with respect to all Outstanding Securities, IRSA shall be deemed to have been discharged from its obligations with respect to the Securities on the date the conditions set forth in Section 11.4 with respect to total defeasance are satisfied with respect to the Securities (hereinafter, “total defeasance”). For this purpose, total defeasance means that IRSA shall be deemed to have paid and discharged the entire indebtedness represented by the Securities and to have satisfied all its other obligations under the Securities and this Indenture insofar as the Securities are concerned (and IRSA and the Trustee, upon the written request of IRSA, shall execute instruments acknowledging the same), except for the following, which shall survive until otherwise terminated or discharged hereunder: (i) the right of Holders to receive, solely from the trust fund described in Section 11.4 and as more fully set forth in such Section, payments in respect of the principal of and interest on the Securities when such payments are due, (ii) IRSA’s obligations under Sections1.2, 2.10, 2.11, 3.2, 3.3, 3.4(b), 3.5, 3.13, 5.6, 5.9, 5.10, 5.14 and 12.7; and (iii) the provisions of Section 1.2, Article V and this Article XI. Subject to compliance with this Article XI, IRSA may exercise its option under Section 11.1 to have this Section 11.2 apply to of the Securities notwithstanding the prior exercise of its option under Section 11.1 to have Section 11.3 apply to the Securities.

Section 11.3. Partial Defeasance. Upon IRSA’s exercise of the option provided in Section 11.1 to have this Section 11.3 applied to all the Outstanding Securities: (i) IRSA shall be released from its obligations under Sections3.14 and 3.15 and (ii) the occurrence of any event with respect to the Securities specified in Section 4.1(b) shall not be deemed an Event of Default (but only insofar as such event relates to the obligations under Sections3.14 and 3.15 from which IRSA has been expressly released pursuant to Section 11.3(i)), in each case, on and after the date the conditions set forth in Section 11.4 are satisfied (hereinafter, “partial defeasance”). For this purpose, partial defeasance means that IRSA may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such paragraph to the extent specified above, whether directly or indirectly by reason of any reference elsewhere herein or in the Securities to any such paragraph or by reason of any reference in any such paragraph to any other provision herein or in the Securities or in any other document, but the remainder of IRSA’s obligations shall be unaffected thereby.

79

Section 11.4. Conditions to Total Defeasance and Partial Defeasance. The following shall be the conditions to application of either Section 11.2 or Section 11.3 to the Securities:

(a) IRSA shall irrevocably have deposited or caused to be deposited with a trustee, who may be the Trustee and who shall agree to comply with the provisions of this Article XI applicable to it (the “Defeasance Trustee”), as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders, (A) freely transferable U.S. dollars, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms shall provide, not later than one day before the due date of any payment, money, or (C) a combination thereof, in each case in an amount sufficient, to pay and discharge, and which shall be applied by the Defeasance Trustee to pay and discharge, the principal of and each installment of interest on the Securities on the maturity of such principal or installment of interest (whether at the stated maturity or by acceleration, redemption or otherwise) in accordance with the terms of this Indenture and of the Securities. For this purpose, “U.S. Government Obligations” means securities that are (x) direct obligations of the United States of America for the payment of which its full faith and credit are pledged or (y) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof or any other obligor thereon, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any such U.S. Government Obligation, or any specific payment of principal of or interest on any such U.S. Government Obligation, held by such custodian for the account of the holder of such depositary receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation, or the specific payment of principal of and premium or interest on the U.S. Government Obligation, evidenced by such depositary receipt.

(b) IRSA shall have delivered to the Trustee a certificate from a firm of independent certified public accountants of internationally recognized standing expressing their opinion that the payments of principal and interest when due and without reinvestment of the deposited U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities to maturity or redemption, as the case may be.

80

(c) In the case of an election to have Section 11.2 apply to the Securities, IRSA shall have delivered to the Defeasance Trustee and the Trustee opinions of (A) independent U.S. counsel of nationally recognized standing experienced in such tax matters stating that (x) IRSA has received from, or there has been published by, the U.S. Internal Revenue Service a ruling or (y) since the date of the Exchange Offer Memorandum, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the beneficial owners of the Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit, total defeasance and discharge and will be subject to U.S. federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, total defeasance and discharge had not occurred and (B) independent Argentine counsel of nationally recognized standing experienced in such tax matters to the effect that the beneficial owners of the Securities will not recognize income, gain or loss for Argentine federal income tax purposes as a result of such deposit, total defeasance and discharge and will be subject to Argentine federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, total defeasance and discharge had not occurred.

(d) In the case of an election to have Section 11.3 apply to the Securities, IRSA shall have delivered to the Defeasance Trustee and the Trustee opinions of independent U.S. and Argentine counsel of nationally recognized standing experienced in such tax matters to the effect that the beneficial owners of the Securities will not recognize income, gain or loss for U.S. or Argentine, as the case may be, federal income tax purposes as a result of such deposit and partial defeasance and will be subject to U.S. or Argentine, as the case may be, federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit and partial defeasance had not occurred.

(e) IRSA shall have delivered to the Defeasance Trustee and the Trustee an Opinion of Counsel to the effect that payment of amounts deposited in trust with the Defeasance Trustee as provided in clause (a) will not be subject to Applicable Taxes except to the extent that Additional Amounts in respect thereof shall have been deposited in trust with the Defeasance Trustee as provided in clause (a).

(f) no Event of Default or event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing on the date of such deposit or at any time on or prior to the 123rd day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until such 123rd day).

(g) such total defeasance or partial defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which IRSA is a party or by which it is bound, and IRSA shall have delivered to the Trustee and the Defeasance Trustee an Opinion of Counsel to that effect.

(h) IRSA shall have delivered to the Trustee and the Defeasance Trustee an Officer’s Certificate stating that all conditions precedent relating to either the total defeasance under Section 11.2 or the partial defeasance under Section 11.3, as the case may be, have been complied with.

81

(i) IRSA shall have delivered to the Trustee and the Defeasance Trustee an Opinion of Counsel to the effect that (i) the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the United States Investment Company Act of 1940, as amended, (ii) the Holders have a valid first priority perfected security interest in the trust funds, and (iii) after passage of 123 days following the deposit (except, with respect to any trust funds for the account of any Holder who may be deemed to be an “insider” for purposes of the U.S. Bankruptcy Code, after one year following the deposit), the trust funds will not be subject to the effect of Section 547 of the U.S. Bankruptcy Law or Section 15 of the New York Debtor and Creditor Law in a case commenced by or against IRSA under either such statute, and either (A) the trust funds will no longer remain the property of IRSA (and therefore, will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally) or (B) if a court were to rule under any such law in any case or proceeding that the trust funds remained property of IRSA, assuming such trust funds remained in the possession of the Defeasance Trustee prior to such court ruling to the extent not paid to Holders, the Defeasance Trustee will hold, for the benefit of the Holders, a valid first priority perfected security interest in such trust funds that is not avoidable in bankruptcy or otherwise except for the effect of Section 552(b) of the U.S. Bankruptcy Law on interest on the trust funds accruing after the commencement of a case under such statute.

(j) IRSA shall have delivered to the Trustee a certificate signed by an Authorized Person to the effect that the Securities, if then listed on any securities exchange, will not be delisted by such exchange as a result of such deposit.

(k) IRSA shall have paid the Trustee, the Agents and the Representative of the Trustee in Argentina all amounts outstanding to the Trustee, the Agents and the Representative of the Trustee in Argentina (which may include the reasonable fees and expenses of counsel) in connection with defeasance or otherwise.

Section 11.5.      Deposit in Trust; Miscellaneous.  All money and U.S. Government Obligations (including the proceeds thereof) deposited with the Defeasance Trustee pursuant to Section 11.4 in respect of any Securities shall be held in trust and applied by the Defeasance Trustee, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent as the Defeasance Trustee may determine, to the Holders of the Securities, of all sums due and to become due thereon in respect of principal and any premium and interest, and such money shall be segregated from other funds.  Any money deposited with the Defeasance Trustee for the payment of the principal of and any premium or interest on any such Security and remaining unclaimed for two (2) years after such principal, premium or interest has become due and payable shall, upon IRSA’s written request, be paid to IRSA; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to IRSA for payment thereof, and all liability of the Defeasance Trustee with respect to such trust money shall thereupon cease.

IRSA shall pay and indemnify the Defeasance Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited by IRSA pursuant to Section 11.4 or the principal, premium and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Securities.

82

Anything in this Article XI to the contrary notwithstanding, the Defeasance Trustee shall deliver or pay to IRSA from time to time upon the written request of IRSA any money or U.S. Government Obligations held by it on behalf of IRSA as provided in Section 11.4 which, in the opinion of a firm of independent certified public accountants of internationally recognized standing expressed in a written certification thereof delivered to the Defeasance Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent total defeasance or partial defeasance.

Section 11.6. Reinstatement.  If the Defeasance Trustee is unable to apply any money in accordance with Sections 11.2 or 11.3 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then all the obligations of IRSA under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Article XI until such time as the Defeasance Trustee is permitted to apply all such money in accordance with Sections 11.2 or 11.3; provided that if IRSA makes any payment of principal of or any premium or interest on any such Security following the reinstatement of its obligations, IRSA shall be subrogated to the rights of the Holder of the Security to receive such payment from the money held by the Defeasance Trustee and the Defeasance Trustee shall be entitled to promptly make such payment to IRSA.

ARTICLE XII

MISCELLANEOUS

Section 12.1. Shareholders, Officers and Directors of IRSA Not Subject to Individual Liability. No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any Indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any past, present or future shareholder, officer or director, as such, of IRSA or of any successor, either directly or through IRSA or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders thereof and as part of the consideration for the issue of the Securities; provided that under Section 34 of the Negotiable Obligations Law, the directors and members of the Supervisory Committee shall be jointly and severally liable for damages to the Securityholders arising from any violation of the Negotiable Obligations Law.

Section 12.2. Provisions of Indenture for the Sole Benefit of Parties and Securityholders. Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and their successors and the Holders of the Securities, any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Securities.

83

Section 12.3. Successors and Assigns of IRSA Bound by Indenture. All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of IRSA shall bind its successors and assigns, whether so expressed or not.

Section 12.4. Notices and Demands on IRSA, Trustee and Securityholders. Any notice, demand or request that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on IRSA shall be sufficient for every purpose hereunder if given or served by hand, facsimile transmission or by internationally recognized overnight courier (except as otherwise specifically provided herein) addressed (until another address of IRSA is filed by IRSA with the Trustee) to IRSA Inversiones y Representaciones S.A., Carlos M. Della Paolera 261, 9^th Floor, City of Buenos Aires, Argentina, Attention: Chief Financial and Administrative Officer, Telephone: +54 11 4814-7800. Any notice, direction, request or demand by IRSA or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, upon actual receipt and if in English and in writing and given or made at the Corporate Trust Office by hand, facsimile or electronic transmission or by internationally recognized overnight courier in accordance with this Indenture.

All notices regarding the Securities will be deemed to have been duly given to the Holders of the Securities (i) with respect to Holders of Certificated Securities, if sent to them by first class mail (or, in the case of joint Holders, to the first named in the Register) at their respective addresses as recorded in the Register, and will be deemed to have been validly given on the fourth Business Day after the date of such mailing, and for notices mailed to Holders of Certificated Securities located in Argentina, upon receipt, (ii) with respect to Holders of Global Securities, if delivered to the Depositary, or its nominee (or any successor), in accordance with its applicable procedures, and (iii) for so long as the Securities are listed and traded on BYMA, upon publication in the City of Buenos Aires in BCBA’s Informative Bulletin, the bulletin of the MAE and in a widely circulated newspaper in Argentina, and to the extent required by applicable law, in the Official Gazette of Argentina. Any such notice will be deemed to have been given on the date of such publication or, if published more than once or on different dates, on the last date on which publication is required and made as so required. In the case of Global Securities, notices shall be delivered by the Depositary to its participants in accordance with its applicable procedures.

In addition, IRSA shall be required to cause all such other publications of such notices as may be required from time to time by applicable law of Argentina.  Any and all notices required to be delivered to the CNV shall be the sole responsibility of IRSA. Neither the failure to give notice nor any defect in any notice given to any particular Holder of a Security will affect the sufficiency of any notice with respect to any other Security.

84

Any aforementioned notice (a) if sent by internationally recognized overnight courier to IRSA as provided above shall be deemed to have been given, made or served on the day on which such courier confirms delivery to the address specified above; (b) if given by facsimile transmission to IRSA, when such facsimile is transmitted to the telephone number specified in this Section 12.4 and telephone confirmation of receipt thereof is received; and (iii) if given by publication or by mail, as provided above.

Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

Except as otherwise provided herein or in the Securities, IRSA agrees to give the Trustee the English text of any notice that IRSA is required to provide to the Securityholders pursuant hereto and to the Securities, at least two (2) days prior to the earliest date on which such notice is required to be given.

In case, by reason of the suspension of or irregularities in regular mail service, it shall be, in the opinion of the Trustee, impracticable to mail notice to the Securityholders when such notice is required to be given by mailing pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

In case, by reason of the temporary suspension of publication or general circulation of any newspaper or otherwise, it shall be, in the opinion of IRSA, impracticable to publish notice to Securityholders when such notice is required to be published pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to IRSA shall be deemed to be a sufficient publication of such notice.

85

The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Indenture and the Securities and delivered using the following communications methods: e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder (collectively, “Electronic Means”); provided, however, that IRSA shall provide to the Trustee an incumbency certificate listing Authorized Persons with the authority to provide such Instructions and containing specimen signatures of such Authorized Persons, which incumbency certificate shall be amended by IRSA whenever a person is to be added or deleted from the listing.  If IRSA elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling.  IRSA understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an Authorized Person listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Person.  IRSA shall be responsible for ensuring that only Authorized Persons transmit such Instructions to the Trustee and that IRSA and all Authorized Persons are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by IRSA.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction.  IRSA agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by IRSA; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.

Section 12.5. Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein. Upon any application or demand by or on behalf of IRSA to the Trustee to take any action under any of the provisions of this Indenture, IRSA shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with in all material respects, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished. Each such certificate or opinion shall comply with the requirements set forth in this Indenture.

Any certificate, statement or opinion of an Officer of IRSA may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such Officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous. Any certificate, statement or Opinion of Counsel may be based, insofar as it relates to factual matters or information with respect to which is in the possession of IRSA, upon the certificate, statement or opinion of or representations by an officer of officers of IRSA, unless such counsel knows that the certificate, statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include substantially:

86

(1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(3) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

(4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

Any certificate, statement or opinion of an Officer of IRSA or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of IRSA, unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous.

Any certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that such firm is independent.

The Trustee shall make available to any Securityholder as soon as practicable at the Corporate Trust Office or at the office of any Paying Agent, upon request and upon presentation by such Holder of such evidence of its ownership of its Securities as may be satisfactory to the Trustee, copies of all financial statements and certificates delivered to the Trustee by IRSA pursuant to this Indenture or the Securities; provided that the Trustee shall have no liability with respect to any information contained therein or omitted therefrom.

Section 12.6. Payments Due on Non-Business Days. If any Payment Date falls on a day which is not a Business Day, then payments of interest or principal (and premium, if any) need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on such Payment Date, and no interest shall accrue on such payment for the period after such date on account of such delay.

Section 12.7. Governing Law; Consent to Jurisdiction; Waiver of Immunity; Currency Indemnity. (a) This Indenture and the Securities shall be governed by, and construed in accordance with, the law of the State of New York; provided that all matters relating to the due authorization, execution, issuance and delivery of the Securities by IRSA, and matters relating to the legal requirements necessary in order for the Securities to qualify as “obligaciones negociables simples no convertibles” under Argentine law, shall be governed by the Negotiable Obligations Law, together with the Argentine Companies Law, the Capital Markets Law and the rules of the CNV and other applicable Argentine laws and regulations.

87

(b) IRSA hereby irrevocably submits to the non-exclusive jurisdiction of any state or federal court sitting in the Borough of Manhattan, City and State of New York, of any Argentine court sitting in the City of Buenos Aires, including the ordinary courts for commercial matters and the Tribunal de Arbitraje General de la Bolsa de Comercio de Buenos Aires (Permanent Arbitral Tribunal of the Buenos Aires Stock Exchange) under the provisions of Section 46 of the Capital Markets Law, and any competent court in the place of its corporate domicile for purposes of any suit, action or proceeding arising out of or related to this Indenture or the Securities. IRSA hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may have to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. IRSA also agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment; provided that service of process is effected upon IRSA in the manner specified herein.

(c) IRSA acknowledges and agrees that the activities contemplated by the provisions of this Indenture are commercial in nature rather than governmental or public and, therefore, acknowledges and agrees that it is not entitled to any right of immunity on the grounds of sovereignty or otherwise with respect to any such activities or in any legal action or proceeding arising out of or in any way relating to this Indenture. IRSA, in respect of itself and its properties and revenues, expressly and irrevocably waives any such right of immunity (including any immunity from the jurisdiction of any court or from service of process or from any execution of judgment or from attachment prior to judgment or in aid of execution or otherwise) or claim thereto which may now or hereafter exist, and agrees not to assert any such right or claim in any such action or proceeding, whether in the United States or otherwise.

(d) IRSA agrees that service of all writs, claims, process and summonses in any suit, action or proceeding described above against it in the State of New York may be made upon Cogency Global Inc. at 122 East 42^nd Street, 18^th Floor, New York, New York 10168, as its authorized agent in the Borough of Manhattan, New York (the “Process Agent”), and IRSA irrevocably appoints the Process Agent as its agent and true and lawful attorneys-in-fact in its name, place and stead to accept such service of any and all such writs, claims, process and summonses, and agrees that the failure of the Process Agent to give any notice to it of any such service of process shall not impair or affect the validity of such service or of any judgment based thereon. IRSA agrees to maintain at all times an agent with offices in New York City to act as its Process Agent. Nothing herein shall in any way be deemed to limit the ability to serve any such writs, process or summonses in any other manner permitted by applicable law.

88

(e) If a judgment or order given or made by any court for the payment of any amount in respect of any Security or this Indenture is expressed in a currency (the “judgment currency”) other than U.S. dollars (the “denomination currency”) in which the Securities are denominated or in which such amount is payable, IRSA will indemnify each of the Trustee and the relevant Holder, as applicable, against any deficiency arising or resulting from any variation in rates of exchange between the date as of which the amount in the denomination currency is notionally converted into the amount in the judgment currency for the purposes of such judgment or order and the date of actual payment thereof. This indemnity will constitute a separate and independent obligation from the other obligations contained in the terms and conditions of the Securities and this Indenture, will give rise to a separate and independent cause of action, will apply irrespective of any indulgence granted from time to time and will continue in full force and effect notwithstanding any judgment or order for a liquidated sum or sums in respect of amounts due in respect of the relevant Security, this Indenture or under any such judgment or order.

Section 12.8. Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 12.9. Severability. If any provision of this Indenture shall be held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable as applied in any particular case in any or all jurisdictions because its conflicts with any provision of any constitution, statute, rule or public policy or for any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case, circumstances or jurisdiction, or of rendering any other provision or provisions of this Indenture invalid, inoperative or unenforceable to any extent whatsoever.

Section 12.10.  Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile or by electronic transmission shall constitute effective execution and delivery of this Indenture. The words “execution,” “signed,” “signature,” and words of like import in this Indenture shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code; provided that, notwithstanding anything herein to the contrary, the Trustee is not under any obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Trustee pursuant to procedures approved by the Trustee.

89

Section 12.11.  Effect of Headings. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

Section 12.12.  USA PATRIOT Act. The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, record and update information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee and Agents. The parties to this Indenture agree that they will provide each of the Trustee and the Agents with such information as it may request in order for the Trustee and Agents to satisfy the requirements of the USA PATRIOT Act.

Section 12.13. Sanctions. (a) IRSA covenants and represents that neither it nor any of its Affiliates, Subsidiaries, directors or officers are the target or subject of any sanctions enforced by the U.S. Government, (including, the Office of Foreign Assets Control of the U.S. Department of the Treasury), the United Nations Security Council, the European Union, HM Treasury, or other relevant sanctions authority (collectively “Sanctions”).

(b) IRSA covenants and represents that neither it nor any of its Affiliates, Subsidiaries, directors or officers will use any payments made pursuant to this Indenture, (i) to fund or facilitate any activities of or business with any person who, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business with any country or territory that is the target or subject of Sanctions, or (iii) in any other manner that will result in a violation of Sanctions by any person.

90

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of July 8, 2022.

	IRSA INVERSIONES Y REPRESENTACIONES  S.A
By:
	Name:
	Title:

	THE BANK OF NEW YORK MELLON, as  Trustee, Co-Registrar, Principal Paying Agent and Transfer Agent
By:
	Name:
	Title:

	BANCO SANTANDER ARGENTINA S.A., as Registrar, Paying Agent, Transfer  Agent and Representative of the Trustee in Argentina
By:
	Name:
	Title:
By:
	Name:
	Title:

91

EXHIBIT A

FORM OF FACE OF GLOBAL SECURITY

IRSA INVERSIONES Y REPRESENTACIONES S.A.

[Rule 144A][Regulation S] Global Security

[INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A RULE 144A GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE):  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES THAT THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) TO IRSA INVERSIONES Y REPRESENTACIONES S.A. OR ITS SUBSIDIARIES (II) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN ACCORDANCE WITH RULE 144A, (III) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.]

[INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A REGULATION S GLOBAL SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE):  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES THAT NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

A-1

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY AFTER FORTY (40) DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS SECURITY.]

UNLESS (1) THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO IRSA INVERSIONES Y REPRESENTACIONES S.A. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (2) ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND (3) ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF INTERESTS IN THIS SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.

[INCLUDE THE FOLLOWING LEGEND FOR A SECURITY THAT IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES

THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. UPON REQUEST, THE ISSUER WILL PROMPTLY MAKE AVAILABLE TO A HOLDER OF THIS SECURITY (1) THE ISSUE PRICE AND ISSUE DATE OF THE SECURITY, (2) THE AMOUNT OF OID ON THE SECURITY, AND (3) THE ORIGINAL YIELD TO MATURITY OF THE SECURITY. SUCH REQUEST SHOULD BE SENT TO THE ISSUER AT CARLOS M. DELLA PAOLERA 261, 9TH FLOOR, CITY OF BUENOS AIRES, ARGENTINA, ATTN: MATÍAS I. GAIVIRONSKY / LEONARDO MAGLIOCCO.]

A-2

IRSA INVERSIONES Y REPRESENTACIONES S.A.

8.750% Senior Notes due 2028

IRSA Inversiones y Representaciones S.A. was organized as a stock corporation (sociedad anónima) under the laws of Argentina for a term expiring on April 5, 2043 and was registered on June 23, 1943 under No. 284, Page 291, Book 66, volume A of the Public Registry of Commerce of the City of Buenos Aires, Argentina, and its registered domicile is at Carlos M. Della Paolera 261, 9^th Floor, City of Buenos Aires, Argentina.

No. [A-][S-][  ]                                               

CUSIP No.:    [Rule 144A, CUSIP No. 450047 AH8

                        [Regulation S, CUSIP No. P58809 BH9]

ISIN No.:        [Rule 144A, ISIN US450047AH8]

                        [Regulation S, ISIN USP58809BH95]

Common Code No:

IRSA Inversiones y Representaciones S.A., a sociedad anónima organized under the laws of Argentina (“IRSA”), for value received, promises to pay to Cede & Co., the nominee for The Depository Trust Company, or registered assigns, the principal sum of __________________ U.S. Dollars (U.S.$[___]), as revised by the Schedule of Increases or Decreases in Global Security attached hereto on each Principal Payment Date in accordance with the amortization table set forth below..

Interest Rate:	8.750%
Interest Payment Dates:	July 8 and January 8 of each year, commencing January 8, 2022
Regular Record Dates:	July 7 and January 7 preceding each Interest Payment Date, whether or not a Business Day
Stated Maturity Date:	July 8, 2028

Principal Payment Date	Percentage of Original Outstanding Principal Amount Payable
July 8, 2024	17.5%
July 8, 2025	17.5%
July 8, 2026	17.5%
July 8, 2027	17.5%
July 8, 2028	30%

A-3

Additional provisions of this Security are set forth on the other side of this Security.

[Signature page follows]

A-4

IN WITNESS WHEREOF, IRSA Inversiones y Representaciones S.A. has caused this Global Security to be duly executed.

	IRSA INVERSIONES Y REPRESENTACIONES S.A.
By:
	Name:
	Title:
By:
	Name:
	Title:

A-5

CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

	THE BANK OF NEW YORK MELLON, as Trustee
By:
	Name:
	Title:
	Date:

A-6

FORM OF REVERSE OF SECURITY

8.750% Senior Notes Due 2028

1. Principal and Interest

IRSA Inversiones y Representaciones S.A., a sociedad anónima organized under the laws of Argentina (“IRSA”) will issue the Securities in denominations of U.S.$1.00 and denominations of U.S.$1.00 in excess thereof. The Stated Maturity Date of the Securities is July 8, 2028.

The principal amount of the Securities will be payable in consecutive annual installments commencing on July 8, 2024, and annually on every other Principal Payment Date thereafter. The final installment of the principal will, in any event, equal the then outstanding aggregate principal balance of the Securities and will be payable together with the accrued and unpaid interest thereon and any other amounts then owing by IRSA under the Securities.

Principal Payment Date	Percentage of Original Outstanding Principal Amount Payable
July 8, 2024	17.5%
July 8, 2025	17.5%
July 8, 2026	17.5%
July 8, 2027	17.5%
July 8, 2028	30%

In the case of any partial redemption or repurchase of Securities, the reduction in the principal balance of the Securities will be applied to reduce the remaining scheduled payment of installments of principal and corresponding percentages on a pro rata basis. The foregoing percentages shall also be adjusted pro rata upon the issuance of Additional Securities.

IRSA promises to pay interest on the principal amount of this Security on July 8 and January 8 of each year, commencing January 8, 2023 (each, an “Interest Payment Date”, and together with the Principal Payment Dates, each Redemption Date, the Stated Maturity Date, any date fixed for repurchase and any other date on which any payment of principal, interest or any other amount is due, the “Payment Dates”) at the rate of 8.750% per year. Interest shall accrue from the most recent date to which interest has been paid on the Securities, or, if no interest has been paid, from and including July 8, 2022.

2. Payment of Principal and Interest

A-7

Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration or repurchase) shall be payable in immediately available funds to the Person in whose name a Security is registered at the close of business on the Record Date next preceding each Payment Date notwithstanding the cancellation of such Security upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Payment Date; provided that interest payable at Stated Maturity or upon acceleration or repurchase shall be payable to the Person to whom principal will be payable; and provided further, that if and to the extent IRSA defaults in the payment of the interest, including any Additional Amounts, due on such Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Person in whose names such Securities are registered at the end of a subsequent record date established by IRSA by notice given by or on behalf of IRSA to the Holders of the Securities not less than fifteen (15) days preceding such special record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest.

Payment of the principal of and any premium, Additional Amounts and other amounts on or in respect of any Security at Stated Maturity or upon acceleration or repurchase shall be made to the registered Holder on such date in immediately available funds to the person in whose name such Security is registered upon presentation (and if final payment) surrender of such Security at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Security is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of Securities to be made other than at Stated Maturity or upon redemption shall be made by check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that (a) DTC, as Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds, and (b) a Holder of at least US$1,000,000 in aggregate principal or face amount of Securities shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due.

Payments of interest with respect to any Payment Date will include interest accrued to but excluding such Payment Date. Interest will be calculated on the basis of a 360-day year consisting of twelve (12) months of thirty (30) days each and, in the case of an incomplete month, the number of days elapsed.

If any Payment Date is not a Business Day, such Payment Date shall be the next Business Day succeeding such Business Day with the same force and effect as if made on the due date and no interest on such payment will accrue from and after such due date.

A-8

In the event of any foreign exchange restriction or prohibition in Argentina, IRSA shall make any and all payments in respect of interest on, or principal of, the Securities, to the extent permitted by applicable law, in U.S. dollars by:

(a) purchasing, with Pesos any series of Argentine Discount Bonds or Argentine Par Bonds or any other securities or public or private bonds issued in Argentina and denominated in U.S. dollars and transferring and selling such securities outside Argentina for U.S. dollars, or

(b) by means of any other legal procedure existing in Argentina for the purchase of U.S. dollars and their subsequent transfer abroad.

All costs and taxes payable in connection with the procedures referred to above shall be borne by IRSA. IRSA’s payment obligations may only be deemed satisfied and discharged upon receipt by the relevant Holder or the Trustee, as the case may be, of the U.S. dollar amounts obtained through the transactions specified above necessary to satisfy the relevant amount owing on the Securities.

3. Trustee and Agents

Initially, The Bank of New York Mellon shall act as trustee (the “Trustee”), Co-Registrar, Principal Paying Agent and Transfer Agent. Banco Santander Argentina S.A. shall act as Registrar, Paying Agent, Transfer Agent and representative of the Trustee in Argentina (the “Representative of the Trustee in Argentina”). IRSA may appoint and change any Paying Agent, Registrar or Co-Registrar without notice to any Holder. IRSA may act as Paying Agent, Registrar or Co-Registrar.

4. Indenture

IRSA originally issued the Securities under an Indenture, dated as of July 8, 2022 (as it may be amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”), among IRSA, the Trustee and the Representative of the Trustee in Argentina. The terms of the Securities include those stated in the Indenture. Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Holders are referred to the Indenture for a statement of those terms. Each Holder by accepting a Security, agrees to be bound by all of the terms and provisions of the Indenture, as amended or supplemented from time to time.

The Securities are senior unsecured obligations of IRSA. Subject to the conditions set forth in the Indenture and without the consent of the Holders, IRSA may issue Additional Securities. All Securities shall be treated as a single class of securities under the Indenture. The Indenture imposes certain limitations, subject to certain exceptions, on, among other things, the ability of IRSA to incur additional Indebtedness, make Restricted Payments, incur in certain Liens, enter into certain Affiliate transactions, or consolidate or merge or transfer or convey all or substantially all of IRSA’s assets.

A-9

5. Optional Redemption

Redemption for Taxation Reasons

The Securities may be redeemed at IRSA’s option in whole, but not in part, at any time, on giving not less than 5 nor more than 60 days’ written notice (which will be irrevocable) to the Trustee and the Holders and, if applicable, the CNV, at 100% of the principal amount thereof, together with any accrued but unpaid interest and any Additional Amounts to, but excluding, the date fixed for redemption, if, as a result of any change in, or amendment to, the laws (or any regulations or rulings issued thereunder) of Argentina or any other jurisdiction in which IRSA is organized or is resident for tax purposes or through which payment on the Securities is made, or any political subdivision thereof or any authority therein (each, an “Applicable Jurisdiction”), or any change in the application, administration or official interpretation of such laws, regulations or rulings, including, without limitation, the holding of a court of competent jurisdiction (a “Change in Tax Law”), IRSA has or will become obligated to pay Additional Amounts on or in respect of the Securities, which change or amendment is announced and becomes effective on or after the date of issuance of the Securities, and IRSA determines in good faith that such obligation cannot be avoided by taking reasonable measures available to IRSA (providedthat reasonable measures shall not include changing IRSA’s jurisdiction of organization or the location of IRSA’s principal executive office or incurring any cost or expense that IRSA deems in good faith to be material). Prior to the distribution of any notice of redemption pursuant to this paragraph, IRSA will deliver to the Trustee (i) an Officer’s Certificate stating that IRSA has or will become obligated to pay Additional Amounts as a result of a Change in Tax Law, and that such obligation cannot be avoided by IRSA taking reasonable measures available to IRSA and (ii) an opinion of independent legal counsel qualified under the laws of Argentina to the effect that IRSA is or would become obligated to pay Additional Amounts as a result of a Change in Tax Law. The Trustee will be entitled to accept such certificate and opinion of counsel as sufficient evidence of the satisfaction of the conditions precedent contained in the second preceding sentence, in which event it will be conclusive and binding on the Holders of the Securities. In all cases Holders of the Securities shall be treated on an equal basis.

Optional Make-Whole Redemption

Prior to July 8, 2025, (the “First Call Date”) IRSA may, at its option, redeem the Securities, in whole at any time or in part from time to time, at a redemption price equal to the greater of (1) 100% of the outstanding principal amount of the Securities and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (excluding accrued but unpaid interest to, but excluding, the Redemption Date), discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

A-10

“Treasury Rate” means, with respect to any Redemption Date, the yield determined by IRSA in accordance with the following two paragraphs:

The Treasury Rate shall be determined by IRSA after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, IRSA shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the First Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the First Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date.

If on the third Business Day preceding the Redemption Date H.15 or any successor designation or publication is no longer published, IRSA shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the First Call Date, as applicable. If there is no United States Treasury security maturing on the First Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the First Call Date, one with a maturity date preceding the First Call Date and one with a maturity date following the First Call Date, IRSA shall select the United States Treasury security with a maturity date preceding the First Call Date. If there are two or more United States Treasury securities maturing on the First Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, IRSA shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semiannual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

A-11

IRSA’s actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.  The Trustee shall have no obligation to calculate or verify any calculation of the redemption price.

Optional Scheduled Redemption

On and after July 8, 2025, IRSA may redeem the Securities, at its option, in whole at any time or in part from time to time, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest to, but excluding, the Redemption Date (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Payment Date), if redeemed during the 12-month period commencing on July 8 of any year set forth below:

Year	Redemption Price
2025		104.3750	%
2026		102.1875	%
2027 and thereafter		100.000	%

Redemption Procedures

If IRSA is redeeming less than all of the Securities at any time, Securities in global form to be redeemed shall be selected for redemption in accordance with the applicable procedures of DTC, or, in the case of Securities in certificated form, the Trustee will select the Securities to be redeemed (a) if the Securities are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Securities are listed or (b) on a pro rata basis to the extent practicable.

Notices of redemption shall be mailed by first-class mail, postage prepaid, at least 5 but not more than 60 days before the Redemption Date (or, at least 30 but not more than 60 days before the Redemption Date in the event of a redemption as described in Section 3.21(f) of the Indenture) to each Holder of Securities at such Holder’s registered address (or, in the case of Securities in global form, given electronically in accordance with the applicable procedures of DTC), except that redemption notices may be given more than 60 days prior to a Redemption Date if the notice is issued in connection with a defeasance of the Securities or a satisfaction and discharge of the Indenture. If any Security is to be purchased or redeemed in part only, any notice of redemption that relates to such Security shall state the portion of the principal amount thereof that has been or is to be purchased or redeemed.

A-12

6. Mandatory Repurchase Provisions – Change of Control Offer

Upon the occurrence of a Change of Control Triggering Event, each Holder of Securities shall have the right to require that IRSA purchase all or a portion (in integral multiples of U.S.$1.00) of the Holder’s Securities at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to (and excluding) the date of purchase. Within 30 days following the date upon which the Change of Control Triggering Event occurs, IRSA must make a Change of Control Offer pursuant to a notice in accordance with the Indenture. This notice shall state, among other things, the Change of Control Payment Date, which must be no earlier than 30 days nor later than 60 days from the date the notice is given, other than as may be required by applicable law.

7. Denominations; Transfer; Exchange

The Securities are in fully registered form without coupons, and only in minimum denominations of U.S.$1.00 and integral multiples of U.S.$1.00 in excess thereof. A Holder may transfer or exchange Securities in accordance with the Indenture. The Co-Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Co-Registrar shall be entitled to request such evidence reasonably satisfactory to it documenting the identity and/or signatures of the transferor and the transferee. The Co-Registrar need not register the transfer of or exchange (i) any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) for a period beginning 15 days before the giving of a notice of Securities to be redeemed and ending on the date of such notice or (ii) any Securities for a period beginning 15 days before a Payment Date and ending on such Payment Date.

8. Persons Deemed Owners

The registered Holder of this Security shall be treated as the owner of it for all purposes.

9. Unclaimed Money

If money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to IRSA at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to IRSA and not to the Trustee for payment.

10. Discharge Prior to Redemption or Maturity

A-13

Subject to certain conditions set forth in the Indenture, IRSA at any time may terminate some or all of its obligations under the Securities and the Indenture if IRSA deposits with the Trustee U.S. Dollars and/or U.S. Government Obligations for the payment of principal of and interest on the Securities to redemption or maturity, as the case may be.

11. Amendment, Waiver

(a) Without the consent of any Holder, IRSA, when authorized by a resolution of its Board of Directors, and the Trustee may, among other things, supplement the Indenture or the Securities to add to the covenants of IRSA further covenants, restrictions, conditions or provisions for the benefit of the Holders or to surrender any right or power herein conferred upon IRSA; to evidence the succession for another Person to IRSA and the assumption by any such successor of the covenants and obligations of IRSA in the Securities and in the Indenture; to comply with any requirements of the CNV, BYMA, MAE or the SEC in specific cases; to conform the text of the Indenture to any provision of the Offering Memorandum; to make modifications which are minor or technical nature, or correcting or supplementing any ambiguous, inconsistent or defective provision; or to make any other changes which do not adversely affect the rights of any of the Holders in any material respect.

(b) Pursuant to and in accordance with the Indenture, (i) the Indenture or the Securities may be amended or supplemented with the written consent of the Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any Default or Event of Default under the Indenture may be waived with the written consent of the Holders of a majority in aggregate principal amount of the then Outstanding Securities. However, without the consent of at least 90% of the Holders of the Outstanding Securities directly affected thereby, no amendment may, among other things, extend the scheduled due date for the payment of principal of, premium, if any, or any installment of interest on any such Security; reduce the principal amount of, the stated rate of interest on or the premium payable upon redemption of the Securities, reduce IRSA’s obligation to pay Additional Amounts on the Securities, shorten the period during which IRSA is not permitted to redeem the Securities, change the required places at which the Securities or the premium or interest thereon is payable, reduce the percentage of the aggregate principal amount of the Securities necessary to modify, amend or supplement the Indenture or the Securities, or for waiver of compliance with certain provisions thereof or for waiver of certain defaults or reduce the percentage of aggregate principal amount of Outstanding Securities required for the adoption of a resolution or the quorum required at any meeting of Holders of such Securities at which a resolution is adopted or to consent to any amendments through written consent.

12. Defaults and Remedies

A-14

If an Event of Default occurs and is continuing, the Trustee at the direction of the Holders of at least 25% in aggregate principal amount of the then Outstanding Securities may declare all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default, which shall result in the Securities being due and payable immediately upon the occurrence of such Events of Default. Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity and/or security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in aggregate principal amount of the outstanding Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except a Default or Event of Default in payment of principal or interest) if it determines that withholding notice is in their interest.

13. Trustee Dealings with IRSA

Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by IRSA and may otherwise deal with IRSA with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

No past, present or future incorporator, director, officer, employee, shareholder or controlling person, as such, of IRSA, shall have any liability for any obligations of IRSA under the Securities, or the Indenture or for any claims based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities.

15. Authentication

This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its behalf) signs the certificate of authentication on the other side of this Security by manual, facsimile or electronic signature.

16. Abbreviations

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors Act).

17. CUSIP or ISIN Numbers

A-15

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures IRSA has caused CUSIP or ISIN numbers to be printed on the Securities and has directed the Trustee to use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

This Security shall be governed by, and construed in accordance with, the laws of the State of New York.

19. Currency of Account; Conversion of Currency

U.S. Dollars is the sole currency of account and payment for all sums payable by IRSA under or in connection with the Securities, or the Indenture. IRSA shall indemnify the Holders and the Trustee as provided in respect of the conversion of currency relating to the Securities and the Indenture.

20. Agent for Service; Submission to Jurisdiction; Waiver of Immunities.

IRSA has agreed that any suit, action or proceeding arising out of or based upon the Indenture or the Securities may be instituted in any New York state or U.S. federal court in The City of New York, New York. IRSA has irrevocably submitted to the jurisdiction of such courts for such purpose and waived, to the fullest extent permitted by law, trial by jury, any objection it may now or hereafter have to the laying of venue of any such proceeding, and any claim it may now or hereafter have that any proceeding in any such court is brought in an inconvenient forum and any right to the jurisdiction of any other courts to which any of them may be entitled, on account of place of residence or domicile. IRSA has appointed Cogency Global Inc., 122 East 42nd Street, 18th Floor, New York, New York, 10168, as its authorized agent upon whom all writs, process and summonses may be served in any suit, action or proceeding arising out of or based upon the Indenture or the Securities which may be instituted in any New York state or U.S. federal court in The City of New York, New York. To the extent that IRSA has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set-off or any legal process (whether service or notice, attachment in aid or otherwise) with respect to it or any of their property, IRSA has irrevocably waived and agreed not to plead or claim such immunity in respect of its obligations under the Indenture or the Securities.

Nothing in the preceding paragraph shall affect the right of the Trustee or any Holder of the Securities to serve process in any other manner permitted by law.

A-16

IRSA shall furnish to any Holder upon written request and without charge to the Holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to:

IRSA Inversiones y Representaciones S.A.

Carlos M. Della Paolera 261, 9th floor,

City Of Buenos Aires, Argentina

Attn: Matías I. Gaivironsky / Leonardo Magliocco

A-17

Table of Contents

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The initial principal amount of this Global Security is U.S.$ [_].  The following increases or decreases in this Global Security have been made:

Date of Increase or Decrease Amount of decrease in Principal Amount of this Global Security Amount of increase  in Principal Amount  of this Global  Security Principal Amount of  this Global Security  following such  decrease or increase Signature of authorized  signatory of Trustee  or Custodian

A-18

EXHIBIT B

FORM OF FACE OF GLOBAL SECURITY

IRSA INVERSIONES Y REPRESENTACIONES S.A.

 [Rule 144A][Regulation S] Certificated Security

INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A RULE 144A SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE):  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES THAT THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) TO IRSA INVERSIONES Y REPRESENTACIONES S.A. OR ITS SUBSIDIARIES (II) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN ACCORDANCE WITH RULE 144A, (III) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF SUCH CASES IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.]

[INCLUDE FOLLOWING RESTRICTIVE LEGEND FOR A REGULATION S SECURITY (UNLESS SUCH LEGEND MAY BE REMOVED PURSUANT TO THE INDENTURE):  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES THAT NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY AFTER FORTY (40) DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS SECURITY.]

B-1

            [INCLUDE THE FOLLOWING LEGEND FOR A SECURITY THAT IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES:

            THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. UPON REQUEST, THE ISSUER WILL PROMPTLY MAKE AVAILABLE TO A HOLDER OF THIS SECURITY (1) THE ISSUE PRICE AND ISSUE DATE OF THE SECURITY, (2) THE AMOUNT OF OID ON THE SECURITY, AND (3) THE ORIGINAL YIELD TO MATURITY OF THE SECURITY. SUCH REQUEST SHOULD BE SENT TO THE ISSUER AT CARLOS M. DELLA PAOLERA 261, 9TH FLOOR, CITY OF BUENOS AIRES, ARGENTINA, ATTN: MATÍAS I. GAIVIRONSKY / LEONARDO MAGLIOCCO.]

IRSA INVERSIONES Y REPRESENTACIONES S.A.

8.750% Senior Notes due 2028

IRSA Inversiones y Representaciones S.A. was organized as a stock corporation (sociedad anónima) under the laws of Argentina for a term expiring on April 5, 2043 and was registered on June 23, 1943 under No. 284, Page 291, Book 66, volume A of the Public Registry of Commerce of the City of Buenos Aires, Argentina, and its registered domicile is at Carlos M. Della Paolera 261, 9^th Floor, City of Buenos Aires, Argentina.

No. [A-] [S-] [  ]                                               

CUSIP No.:    [Rule 144A, CUSIP No. 450047 AH8

                        [Regulation S, CUSIP No. P58809 BH9]

ISIN No.:        [Rule 144A, ISIN US450047AH8]

                        [Regulation S, ISIN USP58809BH95]

Common Code No: [Rule 144A, 248993537]

[Regulation S, 248993553]

IRSA Inversiones y Representaciones S.A., a sociedad anónima organized under the laws of Argentina (“IRSA”), for value received, promises to pay to ________________________, or registered assigns, the principal sum of __________________ U.S. Dollars (U.S.$[___]), on each Principal Payment Date in accordance with the amortization table set forth below.

B-2

Interest Rate:	8.750%
Interest Payment Dates:	July 8 and January 8 of each year, commencing January 8, 2022
Regular Record Dates:	July 7 and January 7 preceding each Interest Payment Date, whether or not a Business Day
Stated Maturity Date:	July 8, 2028

Principal Payment Date	Percentage of Original Outstanding Principal Amount Payable
July 8, 2024	17.5%
July 8, 2025	17.5%
July 8, 2026	17.5%
July 8, 2027	17.5%
July 8, 2028	30%

Additional provisions of this Security are set forth on the other side of this Security.

[Signature page follows]

B-3

IN WITNESS WHEREOF, IRSA Inversiones y Representaciones S.A. has caused this Certificated Security to be duly executed.

	IRSA INVERSIONES Y REPRESENTACIONES S.A.
By:
	Name:
	Title:
By:
	Name:
	Title:

B-4

CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

	THE BANK OF NEW YORK MELLON, as Trustee
By:
	Name:
	Title:
	Date:

B-5

FORM OF REVERSE OF SECURITY

8.750% Senior Notes Due 2028

1. Principal and Interest

IRSA Inversiones y Representaciones S.A., a sociedad anónima organized under the laws of Argentina (“IRSA”) will issue the Securities in denominations of U.S.$1.00 and denominations of U.S.$1.00 in excess thereof. The Stated Maturity Date of the Securities is July 8, 2028.

The principal amount of the Securities will be payable in consecutive annual installments commencing on July 8, 2024, and annually on every other Principal Payment Date thereafter. The final installment of the principal will, in any event, equal the then outstanding aggregate principal balance of the Securities and will be payable together with the accrued and unpaid interest thereon and any other amounts then owing by IRSA under the Securities.

Principal Payment Date	Percentage of Original Outstanding Principal Amount Payable
July 8, 2024	17.5%
July 8, 2025	17.5%
July 8, 2026	17.5%
July 8, 2027	17.5%
July 8, 2028	30%

In the case of any partial redemption or repurchase of Securities, the reduction in the principal balance of the Securities will be applied to reduce the remaining scheduled payment of installments of principal and corresponding percentages on a pro rata basis. The foregoing percentages shall also be adjusted pro rata upon the issuance of Additional Securities.

IRSA promises to pay interest on the principal amount of this Security on July 8 and January 8 of each year, commencing January 8, 2023 (each, an “Interest Payment Date”, and together with the Principal Payment Dates, each Redemption Date, the Stated Maturity Date, any date fixed for repurchase and any other date on which any payment of principal, interest or any other amount is due, the “Payment Dates”) at the rate of 8.750% per year. Interest shall accrue from the most recent date to which interest has been paid on the Securities, or, if no interest has been paid, from and including July 8, 2022.

2. Payment of Principal and Interest

B-6

Interest (and principal, if any, payable other than at Stated Maturity or upon acceleration or repurchase) shall be payable in immediately available funds to the Person in whose name a Security is registered at the close of business on the Record Date next preceding each Payment Date notwithstanding the cancellation of such Security upon any transfer or exchange thereof subsequent to such Regular Record Date and prior to such Payment Date; provided that interest payable at Stated Maturity or upon acceleration or repurchase shall be payable to the Person to whom principal will be payable; and provided further, that if and to the extent IRSA defaults in the payment of the interest, including any Additional Amounts, due on such Payment Date, such defaulted interest, including any Additional Amounts, shall be paid to the Person in whose names such Securities are registered at the end of a subsequent record date established by IRSA by notice given by or on behalf of IRSA to the Holders of the Securities not less than fifteen (15) days preceding such special record date, such record date to be not less than fifteen (15) days preceding the date of payment in respect of such defaulted interest.

Payment of the principal of and any premium, Additional Amounts and other amounts on or in respect of any Security at Stated Maturity or upon acceleration or repurchase shall be made to the registered Holder on such date in immediately available funds to the person in whose name such Security is registered upon presentation (and if final payment) surrender of such Security at the Corporate Trust Office or at the specified office of any other Paying Agent; provided that the Security is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of the principal of and any premium, interest, Additional Amounts and other amounts on or in respect of Securities to be made other than at Stated Maturity or upon redemption shall be made by check mailed on or before the due date for such payments to the address of the Person entitled thereto as it appears in the Register; provided that (a) DTC, as Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds, and (b) a Holder of at least US$1,000,000 in aggregate principal or face amount of Securities shall be entitled to receive payments of interest by wire transfer of immediately available funds to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such Holder to the Trustee in writing no later than fifteen (15) days prior to the date such payment is due.

Payments of interest with respect to any Payment Date will include interest accrued to but excluding such Payment Date. Interest will be calculated on the basis of a 360-day year consisting of twelve (12) months of thirty (30) days each and, in the case of an incomplete month, the number of days elapsed.

If any Payment Date is not a Business Day, such Payment Date shall be the next Business Day succeeding such Business Day with the same force and effect as if made on the due date and no interest on such payment will accrue from and after such due date.

In the event of any foreign exchange restriction or prohibition in Argentina, IRSA shall make any and all payments in respect of interest on, or principal of, the Securities, to the extent permitted by applicable law, in U.S. dollars by:

(a) purchasing, with Pesos any series of Argentine Discount Bonds or Argentine Par Bonds or any other securities or public or private bonds issued in Argentina and denominated in U.S. dollars and transferring and selling such securities outside Argentina for U.S. dollars, or

B-7

(b) by means of any other legal procedure existing in Argentina for the purchase of U.S. dollars and their subsequent transfer abroad.

All costs and taxes payable in connection with the procedures referred to above shall be borne by IRSA. IRSA’s payment obligations may only be deemed satisfied and discharged upon receipt by the relevant Holder or the Trustee, as the case may be, of the U.S. dollar amounts obtained through the transactions specified above necessary to satisfy the relevant amount owing on the Securities.

3. Trustee and Agents

Initially, The Bank of New York Mellon shall act as trustee (the “Trustee”), Co-Registrar, Principal Paying Agent and Transfer Agent. Banco Santander Argentina S.A. shall act as Registrar, Paying Agent, Transfer Agent and representative of the Trustee in Argentina (the “Representative of the Trustee in Argentina”). IRSA may appoint and change any Paying Agent, Registrar or Co-Registrar without notice to any Holder. IRSA may act as Paying Agent, Registrar or Co-Registrar.

4. Indenture

IRSA originally issued the Securities under an Indenture, dated as of July 8, 2022 (as it may be amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”), among IRSA, the Trustee and the Representative of the Trustee in Argentina. The terms of the Securities include those stated in the Indenture. Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Holders are referred to the Indenture for a statement of those terms. Each Holder by accepting a Security, agrees to be bound by all of the terms and provisions of the Indenture, as amended or supplemented from time to time.

The Securities are senior unsecured obligations of IRSA. Subject to the conditions set forth in the Indenture and without the consent of the Holders, IRSA may issue Additional Securities. All Securities shall be treated as a single class of securities under the Indenture. The Indenture imposes certain limitations, subject to certain exceptions, on, among other things, the ability of IRSA to incur additional Indebtedness, make Restricted Payments, incur in certain Liens, enter into certain Affiliate transactions, or consolidate or merge or transfer or convey all or substantially all of IRSA’s assets.

5. Optional Redemption

Redemption for Taxation Reasons

B-8

The Securities may be redeemed at IRSA’s option in whole, but not in part, at any time, on giving not less than 5 nor more than 60 days’ written notice (which will be irrevocable) to the Trustee and the Holders and, if applicable, the CNV, at 100% of the principal amount thereof, together with any accrued but unpaid interest and any Additional Amounts to, but excluding, the date fixed for redemption, if, as a result of any change in, or amendment to, the laws (or any regulations or rulings issued thereunder) of Argentina or any other jurisdiction in which IRSA is organized or is resident for tax purposes or through which payment on the Securities is made, or any political subdivision thereof or any authority therein (each, an “Applicable Jurisdiction”), or any change in the application, administration or official interpretation of such laws, regulations or rulings, including, without limitation, the holding of a court of competent jurisdiction (a “Change in Tax Law”), IRSA has or will become obligated to pay Additional Amounts on or in respect of the Securities, which change or amendment is announced and becomes effective on or after the date of issuance of the Securities, and IRSA determines in good faith that such obligation cannot be avoided by taking reasonable measures available to IRSA (providedthat reasonable measures shall not include changing IRSA’s jurisdiction of organization or the location of IRSA’s principal executive office or incurring any cost or expense that IRSA deems in good faith to be material). Prior to the distribution of any notice of redemption pursuant to this paragraph, IRSA will deliver to the Trustee (i) an Officer’s Certificate stating that IRSA has or will become obligated to pay Additional Amounts as a result of a Change in Tax Law, and that such obligation cannot be avoided by IRSA taking reasonable measures available to IRSA and (ii) an opinion of independent legal counsel qualified under the laws of Argentina to the effect that IRSA is or would become obligated to pay Additional Amounts as a result of a Change in Tax Law. The Trustee will be entitled to accept such certificate and opinion of counsel as sufficient evidence of the satisfaction of the conditions precedent contained in the second preceding sentence, in which event it will be conclusive and binding on the Holders of the Securities. In all cases Holders of the Securities shall be treated on an equal basis.

Optional Make-Whole Redemption

Prior to July 8, 2025, (the “First Call Date”) IRSA may, at its option, redeem the Securities, in whole at any time or in part from time to time, at a redemption price equal to the greater of (1) 100% of the outstanding principal amount of the Securities and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (excluding accrued but unpaid interest to, but excluding, the Redemption Date), discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

“Treasury Rate” means, with respect to any Redemption Date, the yield determined by IRSA in accordance with the following two paragraphs:

B-9

The Treasury Rate shall be determined by IRSA after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, IRSA shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the First Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the First Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date.

If on the third Business Day preceding the Redemption Date H.15 or any successor designation or publication is no longer published, IRSA shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the First Call Date, as applicable. If there is no United States Treasury security maturing on the First Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the First Call Date, one with a maturity date preceding the First Call Date and one with a maturity date following the First Call Date, IRSA shall select the United States Treasury security with a maturity date preceding the First Call Date. If there are two or more United States Treasury securities maturing on the First Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, IRSA shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semiannual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

IRSA’s actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.  The Trustee shall have no obligation to calculate or verify any calculation of the redemption price.

Optional Scheduled Redemption

On and after July 8, 2025, IRSA may redeem the Securities, at its option, in whole at any time or in part from time to time, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest to, but excluding, the Redemption Date (subject to the right of Holders on the relevant Regular Record Date to receive interest due on the relevant Payment Date), if redeemed during the 12-month period commencing on July 8 of any year set forth below:

B-10

Year	Redemption Price
2025		104.3750	%
2026		102.1875	%
2027 and thereafter		100.000	%

Redemption Procedures

If IRSA is redeeming less than all of the Securities at any time, Securities in global form to be redeemed shall be selected for redemption in accordance with the applicable procedures of DTC, or, in the case of Securities in certificated form, the Trustee will select the Securities to be redeemed (a) if the Securities are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Securities are listed or (b) on a pro rata basis to the extent practicable.

Notices of redemption shall be mailed by first-class mail, postage prepaid, at least 5 but not more than 60 days before the Redemption Date (or, at least 30 but not more than 60 days before the Redemption Date in the event of a redemption as described in Section 3.21(f) of the Indenture) to each Holder of Securities at such Holder’s registered address (or, in the case of Securities in global form, given electronically in accordance with the applicable procedures of DTC), except that redemption notices may be given more than 60 days prior to a Redemption Date if the notice is issued in connection with a defeasance of the Securities or a satisfaction and discharge of the Indenture. If any Security is to be purchased or redeemed in part only, any notice of redemption that relates to such Security shall state the portion of the principal amount thereof that has been or is to be purchased or redeemed.

6. Mandatory Repurchase Provisions – Change of Control Offer

Upon the occurrence of a Change of Control Triggering Event, each Holder of Securities shall have the right to require that IRSA purchase all or a portion (in integral multiples of U.S.$1.00) of the Holder’s Securities at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to (and excluding) the date of purchase. Within 30 days following the date upon which the Change of Control Triggering Event occurs, IRSA must make a Change of Control Offer pursuant to a notice in accordance with the Indenture. This notice shall state, among other things, the Change of Control Payment Date, which must be no earlier than 30 days nor later than 60 days from the date the notice is given, other than as may be required by applicable law.

7. Denominations; Transfer; Exchange

The Securities are in fully registered form without coupons, and only in minimum denominations of U.S.$1.00 and integral multiples of U.S.$1.00 in excess thereof. A Holder may transfer or exchange Securities in accordance with the Indenture. The Co-Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Co-Registrar shall be entitled to request such evidence reasonably satisfactory to it documenting the identity and/or signatures of the transferor and the transferee. The Co-Registrar need not register the transfer of or exchange (i) any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) for a period beginning 15 days before the giving of a notice of Securities to be redeemed and ending on the date of such notice or (ii) any Securities for a period beginning 15 days before a Payment Date and ending on such Payment Date.

B-11

8. Persons Deemed Owners

The registered Holder of this Security shall be treated as the owner of it for all purposes.

9. Unclaimed Money

If money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to IRSA at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to IRSA and not to the Trustee for payment.

10. Discharge Prior to Redemption or Maturity

Subject to certain conditions set forth in the Indenture, IRSA at any time may terminate some or all of its obligations under the Securities and the Indenture if IRSA deposits with the Trustee U.S. Dollars and/or U.S. Government Obligations for the payment of principal of and interest on the Securities to redemption or maturity, as the case may be.

11. Amendment, Waiver

(a) Without the consent of any Holder, IRSA, when authorized by a resolution of its Board of Directors, and the Trustee may, among other things, supplement the Indenture or the Securities to add to the covenants of IRSA further covenants, restrictions, conditions or provisions for the benefit of the Holders or to surrender any right or power herein conferred upon IRSA; to evidence the succession for another Person to IRSA and the assumption by any such successor of the covenants and obligations of IRSA in the Securities and in the Indenture; to comply with any requirements of the CNV, BYMA, MAE or the SEC in specific cases; to conform the text of the Indenture to any provision of the Offering Memorandum; to make modifications which are minor or technical nature, or correcting or supplementing any ambiguous, inconsistent or defective provision; or to make any other changes which do not adversely affect the rights of any of the Holders in any material respect.

B-12

(b) Pursuant to and in accordance with the Indenture, (i) the Indenture or the Securities may be amended or supplemented with the written consent of the Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any Default or Event of Default under the Indenture may be waived with the written consent of the Holders of a majority in aggregate principal amount of the then Outstanding Securities. However, without the consent of at least 90% of the Holders of the Outstanding Securities directly affected thereby, no amendment may, among other things, extend the scheduled due date for the payment of principal of, premium, if any, or any installment of interest on any such Security; reduce the principal amount of, the stated rate of interest on or the premium payable upon redemption of the Securities, reduce IRSA’s obligation to pay Additional Amounts on the Securities, shorten the period during which IRSA is not permitted to redeem the Securities, change the required places at which the Securities or the premium or interest thereon is payable, reduce the percentage of the aggregate principal amount of the Securities necessary to modify, amend or supplement the Indenture or the Securities, or for waiver of compliance with certain provisions thereof or for waiver of certain defaults or reduce the percentage of aggregate principal amount of Outstanding Securities required for the adoption of a resolution or the quorum required at any meeting of Holders of such Securities at which a resolution is adopted or to consent to any amendments through written consent.

12. Defaults and Remedies

If an Event of Default occurs and is continuing, the Trustee at the direction of the Holders of at least 25% in aggregate principal amount of the then Outstanding Securities may declare all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default, which shall result in the Securities being due and payable immediately upon the occurrence of such Events of Default. Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity and/or security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in aggregate principal amount of the outstanding Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except a Default or Event of Default in payment of principal or interest) if it determines that withholding notice is in their interest.

13. Trustee Dealings with IRSA

Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by IRSA and may otherwise deal with IRSA with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

B-13

No past, present or future incorporator, director, officer, employee, shareholder or controlling person, as such, of IRSA, shall have any liability for any obligations of IRSA under the Securities, or the Indenture or for any claims based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities.

15. Authentication

This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its behalf) signs the certificate of authentication on the other side of this Security by manual, facsimile or electronic signature.

16. Abbreviations

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors Act).

17. CUSIP or ISIN Numbers

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures IRSA has caused CUSIP or ISIN numbers to be printed on the Securities and has directed the Trustee to use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

This Security shall be governed by, and construed in accordance with, the laws of the State of New York.

19. Currency of Account; Conversion of Currency

U.S. Dollars is the sole currency of account and payment for all sums payable by IRSA under or in connection with the Securities, or the Indenture. IRSA shall indemnify the Holders and the Trustee as provided in respect of the conversion of currency relating to the Securities and the Indenture.

20. Agent for Service; Submission to Jurisdiction; Waiver of Immunities.

B-14

IRSA has agreed that any suit, action or proceeding arising out of or based upon the Indenture or the Securities may be instituted in any New York state or U.S. federal court in The City of New York, New York. IRSA has irrevocably submitted to the jurisdiction of such courts for such purpose and waived, to the fullest extent permitted by law, trial by jury, any objection it may now or hereafter have to the laying of venue of any such proceeding, and any claim it may now or hereafter have that any proceeding in any such court is brought in an inconvenient forum and any right to the jurisdiction of any other courts to which any of them may be entitled, on account of place of residence or domicile. IRSA has appointed Cogency Global Inc., 122 East 42nd Street, 18th Floor, New York, New York, 10168, as its authorized agent upon whom all writs, process and summonses may be served in any suit, action or proceeding arising out of or based upon the Indenture or the Securities which may be instituted in any New York state or U.S. federal court in The City of New York, New York. To the extent that IRSA has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set-off or any legal process (whether service or notice, attachment in aid or otherwise) with respect to it or any of their property, IRSA has irrevocably waived and agreed not to plead or claim such immunity in respect of its obligations under the Indenture or the Securities.

Nothing in the preceding paragraph shall affect the right of the Trustee or any Holder of the Securities to serve process in any other manner permitted by law.

IRSA shall furnish to any Holder upon written request and without charge to the Holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to:

IRSA Inversiones y Representaciones S.A.

Carlos M. Della Paolera 261, 9th floor,

City Of Buenos Aires, Argentina

Attn: Matías I. Gaivironsky / Leonardo Magliocco

B-15

FORM OF TRANSFER

[Include the following for Certificated Securities not bearing a Restrictive Legend]

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder hereby sells, assigns and transfers unto

(Please print or typewrite name and address including postal code of assignee)

this Security and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer such amount of said Security on the books of IRSA with full power of substitution in the premises.

Date:
	Signed:
		NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatsoever.

B-16

FORM OF TRANSFER

[Include the following for Certificated Securities bearing Restrictive Legends]

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder hereby sells, assigns and transfers unto

(Please print or typewrite name and address including postal code of assignee)

Insert Taxpayer Identification No.:

this Security and all rights thereunder, hereby irrevocably constituting and appointing

attorney to transfer such amount of said Security on the books of IRSA with full power of substitution in the premises.

In connection with any transfer of this Security occurring prior to the date that is one year after the original issue date of this Security (provided that IRSA or any affiliate of IRSA has not acquired this Security during such one-year period), the undersigned confirms that without utilizing any general advertising or general solicitation:

(check one)

☐ (a) This Security is being transferred pursuant to the exception from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), provided by Rule 144A thereunder (“Rule 144A”) and, upon registration of such transfer, each beneficial owner of this Security will be a “qualified institutional buyer” (as defined in Rule 144A), and each such person has been advised that this Security is being sold or transferred to it in reliance upon Rule 144A and has received the information, if any, requested by it pursuant to Rule 144A; or

☐ (b) This Security is being transferred pursuant to the exemption from registration under the Securities Act provided by Regulation S under the Securities Act (“Regulation S”), and the address of the person in whose name this Security is to be registered upon transfer is an address outside the United States (as defined in Regulation S); or

☐ (c) This Security is being transferred to IRSA; or

☐ (d) This Security is being transferred other than in accordance with (a), (b) or (c) above, and documents are being furnished to the Trustee or the transfer agent which comply with the conditions of transfer set forth in this Security and the Indenture.

If none of the foregoing boxes is checked, the Trustee shall not be obligated to register this Security in the name of any person other than the Holder hereof unless and until the conditions to any such registration of transfer set forth herein and in the Indenture shall have been satisfied.

B-17

Date:
	Signed:
		NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatsoever.

B-18

EXHIBIT C

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM RULE 144A

GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY DURING THE

RESTRICTED PERIOD

(Exchanges or Transfers pursuant to

Section 2.10(c)(i)(I) of the Indenture)

The Bank of New York Mellon,

as Trustee

240 Greenwich Street, 7E

New York, New York 10286

Attention: Corporate Trust Department

Re:  IRSA Inversiones y Representaciones S.A.

Ladies and Gentlemen:

Reference is hereby made to the Indenture dated as of July 8, 2022 (as amended, modified or supplemented from time to time the “Indenture”), among IRSA Inversiones y Representaciones S.A. (“IRSA”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Argentina S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to U.S.$[ ] principal amount of IRSA’s 8.750% Notes due 2028 (the “Securities”) that represent a beneficial interest in the Rule 144A Global Security (CUSIP No. 450047 AH8) (Common Code No. 248993537; ISIN No. US450047AH86) beneficially owned by the undersigned (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Regulation S Global Security (CUSIP No. P58809 BH9) (Common Code No. 248993553; ISIN No. USP58809BH95).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in the Securities and pursuant to and in accordance with Regulation S, and accordingly the Transferor does hereby certify that:

(1) the offer of the Securities was not made to a person in the United States;

(2) either (i) the transaction was executed in, on or through a physical trading floor of an established foreign securities exchange that is located outside the United States, (ii) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on the Transferor’s behalf knows that the transaction was pre-arranged with a transferee in the United States or (iii) the transferee is outside the United States, or the Transferor and any person acting on its behalf reasonably believes that the transferee is outside the United States;

C-1

(3) no directed selling efforts have been made in contravention of the requirement of Rule 903(a)(2) or 904(a)(2) of Regulation S, as applicable;

(4) the additional conditions set forth in Rule 903(b) or 904(b), as applicable, have been satisfied; and

(5) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.

To the extent applicable, the terms used in clauses (1) through (5) above have the meanings given to them in Regulation S.

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA.

		[Insert name of Transferor]
	By:
		Name:
		Title:
Dated: , 20

C-2

EXHIBIT D

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM RULE 144A

GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY AFTER THE

RESTRICTED PERIOD

(Exchanges or Transfers pursuant to

Section 2.10(c)(i)(II) of the Indenture)

The Bank of New York Mellon,

as Trustee

240 Greenwich Street, 7E

New York, New York 10286

Attention: Corporate Trust Department

Re:  IRSA Inversiones y Representaciones S.A.

Ladies and Gentlemen:

Reference is hereby made to the Indenture dated as of July 8, 2022 (as amended, modified or supplemented from time to time the “Indenture”), among IRSA Inversiones y Representaciones S.A. (“IRSA”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Argentina S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to U.S.$[ ] principal amount of IRSA’s 8.750% Notes due 2028 (the “Securities”) that represent a beneficial interest in the Rule 144A Global Security (CUSIP No. 450047 AH8) (Common Code No. 248993537; ISIN No. US450047AH86) beneficially owned by the undersigned (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Regulation S Global Security (CUSIP No. P58809 BH9) (Common Code No. 248993553; ISIN No. USP58809BH95).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in the Securities and that:

(a) With respect to transfers made in reliance on Regulation S:

(1) The offer of the Securities was not made to a person in the United States;

(2) either (i) the transaction was executed in, on or through a physical trading floor of an established foreign securities exchange that is located outside the United States, (ii) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on the Transferor’s behalf knows that the transaction was pre-arranged with a transferee in the United States or (iii) the transferee is outside the United States, or the Transferor and any person acting on its behalf reasonably believes that the transferee is outside the United States;

D-1

(3) no directed selling efforts have been made in contravention of the requirement of Rule 903(a)(2) or 904(a)(2) of Regulation S, as applicable;

(4) the additional conditions set forth in Rule 903(b) or 904(b), as applicable, have been satisfied; and

(5) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; or

(b) With respect to transfers made in reliance on Rule 144 under the Securities Act, the Securities are being transferred in a transaction permitted by Rule 144 under the Securities Act.

To the extent applicable, the terms used in clauses (a)(1) through (5) above have the meanings given to them in Regulation S.

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA.

		[Insert name of Transferor]
	By:
		Name:
		Title:
Dated: , 20

D-2

EXHIBIT E

FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER FROM

REGULATION S GLOBAL SECURITY TO RULE 144A GLOBAL SECURITY

(Exchanges or Transfers pursuant to

Section 2.10(c)(ii) of the Indenture)

The Bank of New York Mellon

as Trustee

240 Greenwich Street, 7E

New York, New York 10286

Attention: Corporate Trust Department

Re:  IRSA Inversiones y Representaciones S.A.

Reference is hereby made to the Indenture dated as of July 8, 2022 (as amended, modified or supplemented from time to time, the “Indenture”), among IRSA Inversiones y Representaciones S.A. (“IRSA”), The Bank of New York Mellon, as Trustee, co-registrar, principal paying agent and transfer agent and Banco Santander Argentina S.A., as registrar, paying agent, transfer agent and representative of the Trustee in Argentina. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

This letter relates to U.S.$[ ] principal amount of IRSA’s 8.750% Senior Notes due 2028, series No. XIV (the “Securities”) that represent a beneficial interest in the Regulation S Global Security (CUSIP No. 450047 AH8) (Common Code No. 248993537; ISIN No. US450047AH86) beneficially owned by the undersigned [transferor] (the “Transferor”). The Transferor has requested an exchange or transfer of such beneficial interest for an interest in the Rule 144A Global Security (CUSIP No. P58809 BH9) (Common Code No. 248993553; ISIN No. USP58809BH95).

In connection with such request, and in respect of such Securities, the Transferor does hereby certify that such Securities are being transferred in accordance with Rule 144A under the Securities Act to a transferee that the Transferor reasonably believes is purchasing the Securities for its own account or an account with respect to which the transferee exercises sole investment discretion, in each case in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction. The transferee and any such account are “qualified institutional buyers” within the meaning of Rule 144A, and each such person has been advised that these Securities is being sold or transferred to it in reliance upon Rule 144A and has received the information, if any, requested by it pursuant to Rule 144A.

E-3

This certificate and the statements contained herein are made for your benefit and the benefit of IRSA.

		[Insert name of Transferor]
	By:
		Name:
		Title:
Dated: , 20

E-4

EX-4.17

  EXHIBIT 4.17

TRADUCCIÓN PÚBLICA

SWORN TRANSLATION

[All the pages of the original document are initialed at the bottom.]

FOURTEENTH AGREEMENT FOR THE IMPLEMENTATION OF         

AMENDMENTS

TO THE CORPORATE SERVICES MASTER AGREEMENT

Agreement made in the Autonomous City of Buenos Aires on the 12^th day of July of 2022 by and between:       

(i) CRESUD S.A.C.I.F. y A., domiciled at Della Paolera 261, 9th Floor, Autonomous City of Buenos Aires, represented hereat by the undersigned attorneys-in-fact (hereinafter “CRESUD”), party of the first part;

(ii) IRSA Inversiones y Representaciones Sociedad Anónima, domiciled at Della Paolera 261, 9th Floor, Autonomous City of Buenos Aires, acting on its behalf and on behalf of IRSA Propiedades Comerciales S.A. (IRSA PC), as merger administrator, represented hereat by the undersigned attorneys-in-fact, party of the second part (hereinafter “IRSA” and collectively with CRESUD referred to as “THE PARTIES”).         

WHEREAS:

(i) On June 30, 2004 CRESUD, IRSA and IRSA PC (hereinafter referred to as “THE ORIGINAL PARTIES” executed a Master Agreement for the Exchange of Corporate Services (hereinafter “the Master Agreement”);     

(ii) On August 23, 2007 THE ORIGINAL PARTIES executed the First Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “First Agreement”), whereby certain amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases, and new Individually Responsible Persons were appointed;

(iii) On August 14, 2008 and November 27, 2009, THE ORIGINAL PARTIES executed the Second Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Second Agreement”) and the Third Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Third Agreement”), respectively, whereby new amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases;

(iv) On March 12, 2010, THE ORIGINAL PARTIES executed an Addendum to the Master Agreement for the Exchange of Corporate Services (hereinafter the “Addendum”) whereby THE ORIGINAL PARTIES agreed to unify in CRESUD the services of the Areas of Exchange of Corporate Services, for which purposes the employment agreements of most of the employees of such areas were transferred and the procedure to allocate the costs of potential labor expenses arising from departure of employees was established;

1

(v) On July 11, 2011, THE ORIGINAL PARTIES executed the Fourth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Fourth Agreement”); on October 15, 2012, THE ORIGINAL PARTIES executed the Fifth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the "Fifth Agreement"); on November 12, 2013, THE ORIGINAL PARTIES executed the Sixth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Sixth Agreement”); and on February 18, 2015, THE ORIGINAL PARTIES executed the Seventh Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Seventh Agreement” and together with the First Agreement, the Second Agreement, the Third Agreement, the Fourth Agreement, the Fifth Agreement and the Sixth Agreement, the “Agreements”), whereby new amendments were introduced to the Areas of Exchange of Corporate Services and the Cost Distribution Bases;

(vi) Pursuant to the structuring process of a new organizational model of division of areas by business, an agreement was reached to transfer to IRSA and/or IRSAPC the employment agreements of those employees who render services related to the Technical, Infrastructure and Services, Purchases, Architecture and Design and Works Development Area, Real Estate Business Management, Real Estate Business Human Resources, Safety and Real Estate Areas, all of them related to the real estate business. On February 24, 2014 THE ORIGINAL PARTIES executed a Second Addendum to the Master Agreement for the Exchange of Corporate Services (hereinafter the “Second Addendum”) whereby the mechanisms to be used for the allocation of the costs of potential labor expenses that such process would involve were established.

(vii) On November 12, 2015, THE ORIGINAL PARTIES executed the Eighth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Eighth Agreement”)        

(viii) On May 5, 2017, THE ORIGINAL PARTIES executed the Ninth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Ninth Agreement”). 

(ix) On June 29, 2018, THE ORIGINAL PARTIES executed the Tenth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Tenth Agreement”). 

(x) On June 28, 2019, THE ORIGINAL PARTIES executed the Eleventh Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Eleventh Agreement”).        

(xi) On June 30, 2020, THE ORIGINAL PARTIES executed the Twelfth Agreement for the Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Twelfth Agreement”).          

(xii) On June 30, 2021, THE ORIGINAL PARTIES executed the Thirteenth Agreement for Implementation of Amendments to the Corporate Services Master Agreement (hereinafter the “Thirteenth Agreement”).      

2

(xiii) On September 30, 2021 IRSA and IRSA PC executed a preliminary merger agreement whereby they initiated a merger process between both companies. In such process, IRSA would be the merging company and IRSA PC would be merged company, which would be dissolved without liquidation. Subsequently, on December 22, 2021, IRSA and IRSA PC held their respective shareholders’ meetings resolving the final approval of the merger. Subsequently, on January 27, 2022 both companies executed the final merger agreement (the “FMA”) giving effect to the corporate reorganization process above mentioned. 

(xiv) Therefore, starting on January 1, 2022 IRSA, as merging company of IRSA PC, became the surviving company assuming all rights and obligations of IRSA PC under the Master Agreement, its addenda and amendments.      

(xv) First THE ORIGINAL PARTIES and then the PARTIES have been performing the Master Agreement based on an Implementation Manual originally drafted by Deloitte & Co. S.R.L., updated in due time;  

(xvi) In accordance with the recommendations made in due course by Deloitte on its reports and currently by external auditors, new operational changes have been implemented in the Areas of Exchange of Corporate Services and the Cost Distribution Bases throughout year 2021, which THE PARTIES wish to acknowledge in writing;  

(xvii) THE PARTIES have disclosed the content of this FOURTEENTH AGREEMENT FOR THE IMPLEMENTATION OF AMENDMENTS TO THE CORPORATE SERVICES MASTER AGREEMENT (hereinafter the “Fourteenth Agreement”) to their respective Audit Committees; and    

(xviii) THE PARTIES execute this Fourteenth Agreement ad referendum the effective approval thereof by the Board of Directors of THE PARTIES;

NOW IN CONSIDERATION OF THE FOREGOING, THE PARTIES hereby agree to execute this Fourteenth Agreement subject to the following terms and conditions:

ONE: THE PARTIES ratify that the Areas (as defined in the Master Agreement) and the calculation method applicable to the Exchange of Operational Services (also as defined in the Master Agreement) have been changed as from the dates listed below, amending therefore Exhibits I and II, as amended by the Agreements, to the Master Agreement as per the following detail:

(i) Starting in January 2022, as a result of the merger between IRSA and IRSA PC referred to in (xiii) above, the following areas cease to take part in the Shared Services Agreement: Proceeding and Permits, Investments, Rental Offices, Real Estate Business Management, Real Estate Business Analysis, Real Estate Legal Affairs, Real Estate Budget and Management Control, Real Estate Business HR; and Technical, Infrastructure and Services. As a consequence, Exhibits I and II were modified.

(ii) Starting in January 2022, the corporate Legal area changed its Cost distribution method from “Weighted between the number of minutes of board of directors’ meetings and premium amount of the annual insurance program” to “Weighted between Number of Meetings of board of directors, liquidators and shareholders’ meetings and premium amount of the annual insurance program.” As a consequence, Exhibits I and II were modified.      

3

(iii) Starting in January 2022, the Bolivar, Board of Directors’ Safety and General Management Department areas to be distributed changed the distribution cost method from “Proportional among the three companies” to “66.66% IRSA and 33.33% CRESUD. As a consequence, Exhibits I and II were modified.

In consideration of the foregoing, the PARTIES hereby put on record that, subject to the clarifications detailed in the preceding clauses and for purposes of updating Exhibits I and II, they shall be read as hereto attached for the periods and as from the dates indicated.

TWO: THE PARTIES represent that all the sections of the Master Agreement, the Agreements, the Addendum and the Second Addendum that have not been amended pursuant to this Fourteenth Agreement continue to be in full force and effect.

In witness whereof, this Agreement has been executed in two (2) counterparts of the same tenor and to a single effect in the place and on the date first written.

CRESUD S.A.C.I.F.y A.

__________/ ____________

Attorneys-in-fact

IRSA Inversiones y Representaciones Sociedad Anónima

___________/ ____________

Attorneys-in-fact

4

Exhibit I

Description of Corporate Services Exchange Areas

Corporate Human Resources

The Human Resources sector renders to THE PARTIES the service consisting in Human Resources Administration; Human Resources Management, and Organizational Culture Management. Within the main activities of the sector we may mention labor relationships, selection of managerial positions, leadership training and interpersonal skills, compensation and benefits, internal communications, etc.

Administration and Finance

The Administration and Finance sector renders to THE PARTIES the service consisting in Investor Relations, Capital Markets, Financial Risk and Management of Financial Transactions. In addition, it renders to THE PARTIES the service consisting in planning and defining the companies’ fiscal policies.

Planning

The Planning area is responsible for medium- and long-term planning, for aligning THE PARTIES’ objectives and individual goals, for coordinating THE PARTIES’ investment analysis, controlling the Shared Services Center’s, the Board’s and Corporate expenses management and budgeting, and for coordinating all the management information flowing through the businesses and submitted to the respective Boards of Directors.

Institutional Relations

The Institutional Relations department renders to THE PARTIES the service consisting in relations with the media and communities where the company does business, consisting in drafting of newsletters and statements, preparation of brochures and institutional events, CSR strategy, relationship with NGOs and planning and preparation of CSR actions.

Compliance

The Compliance sector is responsible for information security and Internal Control, controlling the proper management of the different processes that constitute the administrative and accounting system and participating in their continuous improvement. In addition, it is in charge of verifying compliance with controls defined in the processes as well as with the regulations, principles and procedures that govern the governing bodies of THE PARTIES. In addition, it provides support and assistance to the Audit Committee for compliance with its duties. Furthermore, it renders to THE PARTIES Corporate Fraud Prevention services.

Shared Services Center

The Shared Services Center provides THE PARTIES with all the transactional and operational services associated with income and expense management, to the services inherent in managing human resources benefits and payroll processing, in commercial contract management, in errand running services and in general services. And it is also responsible for managing, maintaining and providing support to systems, technology and processes and the companies’ tax calculation processes.

Safety

The Safety sector renders to THE PARTIES the surveillance service.

Legal Affairs - Corporate

The Legal Affairs - Corporate sector renders to THE PARTIES the service consisting in aid to the preparation, analysis of and answer to legal briefs, agreements, official letters, etc. In addition, it renders to THE PARTIES the service consisting in managing their assets’ coverage by negotiating, purchasing and monitoring insurance policies, dealing with claims in terms of coverage, collection, etc.    

5

Purchases and Hirings

The Purchases and Hirings sector renders to THE PARTIES the services consisting in procuring the most appropriate goods and/or service for the purpose for which they will be used. Quality, costs and terms of delivery are essential when taking the decision to hire. In addition, this sector deals with the necessary means to obtain appropriate financing of the purchases from suppliers.           

Corporate Quality and Environment

The Corporate Environment Sector assesses the environmental impact of projects and activities in order to determine preventive and corrective actions. This sector seeks to minimize potential impacts, following the working methodology set forth in an Environmental Management System. This area also manages the Parties’ environmental records that are required by law.                               

Bolívar

Bolívar includes the employees performing activities of support and assistance to THE PARTIES’ Board of Directors.            

Attorneys-in-Fact

The Attorneys-in-Fact sector groups the employees who perform activities consisting in representing THE PARTIES before different governmental agencies.

General Management Department to be Distributed

The General Management Department to be Distributed sector includes employees performing activities of support and assistance to THE PARTIES’ General Management Departments.

Board of Directors’ Safety

The Board of Directors’ Safety sector renders to THE PARTIES the service consisting in comprehensive safety for the main officers acting in their Board of Directors.

Accounting and Reporting

The Accounting and Reporting sector renders to THE PARTIES the services consisting in accounting and preparation of non-consolidated and consolidated financial statements of IRSA Inversiones y Representaciones S.A. and CRESUD S.A.C.I.F. y A. and of the respective managed subsidiaries.

6

Exhibit II

Cost Distribution Bases

Corporate Departments	Department	Division / Subdivision	Distribution Method
Corporate Human Resources	Corporate Human Resources		By headcount (non-corporate personnel) and weighting the percentages of other areas (corporate personnel).
Administration and Finance	Finance Department		The percentages of all the sectors making up the area are weighted.
	Capital Markets		Number of financial transactions conducted in the period weighted at 70% and the remaining 30% corresponds to updates of offering memoranda and “horizontal” works (20F, annual reports, Press Release, etc.)
	Relations with Investors		Number of business highlights during the six-month period, number of earnings releases, number of meetings with investors (current or potential) to discuss the companies’ business and strategy, number of active coverages, number of earnings release conferences, the complexity of the website of each company, number of material events published in the Argentine Securities Commission and the US Securities and Exchange Commission, and number of Roadshows (Deal or Non-Deal). All items involved are weighted in equal parts.
	Financial Planning and Risks		Fifty percent (50 %) for Financial Risks will be distributed pro rata based on the following: Number of risk notes made for balance sheets, Valuation of instruments, Fair Value of Liabilities (number of valued debts), yield/risk analysis for assets and Liabilities. Fifty percent (50%) for Financial Planning will be distributed pro rata based on the number of consolidated companies in each cash report submitted on a monthly basis and those companies in which a quarterly report is separately sent for the company because there is a partner.
	Financial Administration		Total Assets weighted at 60% and total Liabilities weighted at 40%. The resulting percentage shall be weighted at 50% over the total. Thirty percent (30%) corresponds to the number of transactions performed for each vehicle and its subsidiaries. The remaining 20% will correspond to the number of vehicles for which transactions are performed and number of inquiries for special transactions.
	Corporate Tax		Salaries are weighted by position and by tasks performed (by company)

7

Corporate Departments	Department	Division / Subdivision	Distribution Method
Planning	Planning Department		Each one of the sectors making up the area is weighted.
	Corporate Budget and Management Control		Overhead expenses budget for the period is pro-rated.
	Strategic Analysis		Tasks performed and the time spent in each.
Institutional Relations			Area expenses budget for the period is pro-rated
Compliance	Compliance Department		Each sector comprising the Management is weighted.
	Risk Management and Audit		Time estimated/projected in the annual plan.
	Information security		Incidents closed by company.
Shared Services Center (CSC)	CSC Department		The percentage corresponding to each sector falling within the scope of the CSC area is weighted on the basis of the impact exerted by the relevant sector’s projected salaries on the total salaries of the CSC.
	Revenues Administration		Number of Revenue Transactions performed for each Company + Direct Allocation of Resources
	Expenses Administration		Number of Expense Transactions performed for each Company + Direct Allocation of Resources
	Customer Administration		Direct Allocation of Resources
	Collections Administration		Direct Allocation of Resources
	Treasury Administration		Number of Treasury Transactions performed for each Company.
	Own Account Administration		Number of Transactions performed for each Company.
	Technology		Weighting of time spent in each task (related to the services).
	IT Services		Number of CASTI incidents processed for each Company.
	Master Data		Number of transactions processed by each Company.
	Systems and Applications		Hours devoted to each task.
	Project Systems		Hours devoted to each task.
	Systems Maintenance		Hours devoted to each task.
	Commercial Transactions		Number of agreements signed by Company
	Data Management		Hours devoted to each task.
	Process Quality		Weighting of time spent in each task.
	CSC Human Resources		75% weighting of % of CSC sectors; and 25% weighting % of Corporate sectors.
	Errand Running Service		Number of errands run.
	Back office		Hours spent in each task.
	General Services		Hours spent in each task.
	Administrative operations		The percentage of each sector served is weighted.
	Services Control		Number of documents controlled by company
	CSC Taxes		Salaries are weighted by position and by tasks performed (by company)
Safety			Per hour
Legal Affairs - Corporate			Weighted between number of Meetings of board of directors, liquidators and shareholders’ meetings and premium amount of the annual insurance program.
Corporate Environment and Quality			Area expenses budget for the period is pro-rated.
Purchases and Hirings			Purchase orders through a weighting of their volume and amount.
Attorneys-in-fact			Time spent in tasks performed.
Bolívar			66.66% IRSA and 33.33% CRESUD.
Board of Directors’ Safety			66.66% IRSA and 33.33% CRESUD
General Management to be distributed			66.66% IRSA and 33.33% CRESUD
Accounting and Reporting			Weighted between payroll for tasks performed and number of vouchers recorded for the three companies and their managed subsidiaries.

THIS DOCUMENT IS A TRUE AND ACCURATE TRANSLATION into English of the document in Spanish I have had before me in Buenos Aires, on this 12^th day of August, 2022.

[For authentication purposes only:]

ES TRADUCCIÓN FIEL al inglés del documento adjunto redactado en español que he tenido ante mí y al cual me remito en Buenos Aires, a los 12 días de agosto de 2022.

8

EX-8.1

 EXHIBIT 8.1

 LIST OF SUBSIDIARIES

The following table lists our subsidiaries and their jurisdiction of incorporation as of June 30, 2022:

Name of the entity	Country	Main activity	Stake at 06.30.2022
IRSA's direct interest:
E-Commerce Latina S.A.	Argentina	Investment		100.00	%
Efanur S.A.	Uruguay	Investment		100.00	%
Hoteles Argentinos S.A.U.	Argentina	Hotel		100.00	%
Inversora Bolívar S.A.	Argentina	Investment		100.00	%
Llao Llao Resorts S.A. (1)	Argentina	Hotel		50.00	%
Nuevas Fronteras S.A.	Argentina	Hotel		76.34	%
Palermo Invest S.A.	Argentina	Investment		100.00	%
Ritelco S.A.	Uruguay	Investment		100.00	%
Tyrus S.A.	Uruguay	Investment		100.00	%
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment		50.00	%
Arcos del Gourmet S.A.	Argentina	Real estate		90.00	%
Emprendimiento Recoleta S.A.	Argentina	Real estate		53.68	%
Fibesa S.A. (2)	Argentina	Real estate		100.00	%
Panamerican Mall S.A.	Argentina	Real estate		80.00	%
Shopping Neuquén S.A.	Argentina	Real estate		99.95	%
Torodur S.A.	Uruguay	Investment		100.00	%
EHSA	Argentina	Investment		70.00	%
Centro de Entretenimiento La Plata	Argentina	Real estate		100.00	%
We Are Appa S.A.	Argentina	Design and software development		93.63	%
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment		99.50	%
IRSA International LLC	USA	Investment		100.00	%
Jiwin S.A.	Uruguay	Investment		100.00	%
Liveck S.A. (3)	British Virgin Islands	Investment		100.00	%
Real Estate Strategies LLC	USA	Investment		100.00	%
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment		100.00	%
DFL's and DN BV's direct interest:
Dolphin IL Investment Ltd.	Israel	Investment		100.00	%

(1)	The Group has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers it majority of votes in the decision-making process.
(2)	Includes interest held through Ritelco S.A. and Torodur S.A.
(3)	Includes Tyrus’ and IRSA S.A.’s equity interests.

 

EX-12.1

EXHIBIT 12.1

SECTION 302 CERTIFICATION

I, Eduardo S. Elsztain, certify that:

1.	I have reviewed this annual report on Form 20-F of IRSA Inversiones y Representaciones S.A. (the “Company”) for the fiscal year ended June 30, 2022;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period converted by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial position results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4.	The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervisions, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
	d.	Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
5.	The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

	IRSA Inversiones y Representaciones S.A.
October 26, 2022.	By:	/s/ Eduardo S. Elsztain
		Eduardo S. Elsztain
		Chief Executive Officer

EX-12.2

EXHIBIT 12.2

SECTION 302 CERTIFICATION

I, Matias Gaivironsky, certify that:

1.	I have reviewed this annual report on Form 20-F of IRSA Inversiones y Representaciones S.A. (the "Company") for the fiscal year ended June 30, 2022;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period converted by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial position results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4.	The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervisions, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
	d.	Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
5.		The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

	IRSA Inversiones y Representaciones S.A.
October 26, 2022.	By:	/s/ Matias I. Gaivironsky
		Matias I. Gaivironsky Chief Financial and Administrative Officer

EX-13.1

EXHIBIT 13.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C.

SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 20-F of IRSA Inversiones y Representaciones S.A. (the “Company”) for the fiscal year ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Eduardo S. Elsztain, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that;

(1) The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	IRSA Inversiones y Representaciones S.A.
October 26, 2022.	By:	/s/ Eduardo S. Elsztain
		Eduardo S. Elsztain
		Chief Executive Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except as to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended

EX-13.2

EXHIBIT 13.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C.

SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 20-F of IRSA Inversiones y Representaciones S.A. (the “Company”) for the fiscal year ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Matias Gaivironsky, as Chief Financial and Administrative Officer of the company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that;

(1)	The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities and Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	IRSA Inversiones y Representaciones S.A.
October 26, 2022.	By:	/s/ Matias I. Gaivironsky
		Matias I. Gaivironsky
		Chief Financial and Administrative Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except as to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended.

EX-99.1

EXHIBIT 99.1

Buenos Aires, September 21, 2022

IRSA Inversiones y Representaciones S.A.

Carlos M. Della Paolera 261, 9^th Floor

(C1001ADA)

Ciudad Autónoma de Buenos Aires, Argentina

CONSENT OF INDEPENDENT APPRAISER

Newmark Grubb Knight Frank (“NGKF”) hereby consents to the reference to NGFK’s name, valuation methodologies, assumptions and value conclusions for accounting purposes, with respect to its appraisal reports addressed and previously delivered to the board of directors of IRSA Inversiones y Representaciones S.A. (the “Company”), in the Company’s Annual Report on Form 20-F (together with any amendments thereto, the “Annual Report”) to be filed with the U.S. Securities and Exchange Commission. NGKF also hereby consents to the filing of this letter as an exhibit to the Annual Report.

NEWMARK GRUBB KNIGHT FRANK
By:	/s/  Domingo Speranza
	Name: Domingo Speranza Title: CEO – Executive Director

EX-99.2

  EXHIBIT 99.2

Schedule I

The following is a summary of the Group’s investment properties as of June 30, 2022 prepared in accordance with SEC Regulation S-X 12-28 (all amounts are in millions of Argentine Pesos):

			Initial Costs				Subsequent Costs		Costs at the end of the year
Name	Encumbrances		Plot of land (**)		Buildings, facilities and improvement (**)		Improvements / Additions / Disposals / Transfers (**)		Plot of land (**)		Buildings, facilities and improvements (**)		Total (**)		Capitalized cost, net (**)		Fair Value adjustments		Fair value at the end of the year (*)		Date of construction		Date of acquisition
Shopping malls:
Abasto		-		469		12,212		695		469		12,907		13,376		-		-996		12,380	nov-98		jul-94
Alto Palermo Shopping		-		418		19,685		6,624		418		26,309		26,727		2		-12,506		14,223	oct-90		nov-97
Alto Avellaneda		-		835		8,049		2,472		835		10,521		11,356		2		-2,127		9,231	oct-95		dic-97
Alcorta Shopping		-		504		5,654		1,756		504		7,410		7,914		-		1,048		8,962	jun-92		jun-97
Alto Noa		-		17		2,124		484		17		2,608		2,625		1		-630		1,996	sep-94		mar-95
Patio Bullrich		-		405		7,435		829		405		8,264		8,669		-		-4,749		3,920	sep-88		oct-98
Alto Rosario		-		1,817		894		2,266		1,817		3,160		4,977		-1		2,511		7,487	nov-04		nov-04
Mendoza Plaza		-		507		3,613		2,461		507		6,074		6,581		-3		-3,204		3,374	jun-94		dic-94
Dot Baires Shopping		-		1,549		1,127		11,153		1,549		12,280		13,829		1		-2,540		11,290	may-09		nov-06
Córdoba Shopping	Antichresis			185		3,316		643		185		3,959		4,144		1		-1,930		2,215	mar-90		dec-06
Distrito Arcos		-		-		-		5,220		-		5,220		5,220		-		-402		4,818	nov-09		nov-09
Alto Comahue		-		126		357		5,852		126		6,209		6,335		-		-2,703		3,632	may-06		may-06
Patio Olmos		-		382		711		2		382		713		1,095		-		986		2,081	may-95		sep-07
Soleil Premium Outlet		-		408		1,375		1,254		408		2,629		3,037		15		332		3,384	jul-10		jul-10
Others		-		-		83		-		-		83		83		-		1,066		1,149		n/a		n/a
Shopping malls				7,622		66,635		41,711		7,622		108,346		115,968		18		-25,844		90,142

1

Schedule I (Continued)

			Initial Costs				Subsequent Costs		Costs at the end of the year
Name	Encumbrances		Plot of land (**)		Buildings, facilities and improvement (**)		Improvements / Additions / Disposals / Transfers (**)		Plot of land (**)		Buildings, facilities and improvements (**)		Total (**)		Capitalized cost, net (**)		Fair Value adjustments		Fair value at the end of the year (*)		Date of construction		Date of acquisition
Office and other rental properties:
Abasto Offices		-		-		-		249		-		249		249		-		351		600	mar-13		jul-94
Zetta building		-		1,058		-		8,303		1,058		8,303		9,361		67		18,321		27,749	dec-18		dec-18
Dot building		-		351		112		4,646		351		4,758		5,109		-11		4,624		9,722	sep-10		nov-06
Bouchard Plaza 551		-		166		99		-		166		99		265		-		379		644		-	mar-07
Others		-		576		1,285		163		576		1,448		2,024		-		2,322		4,346		n/a		n/a
La Adela		-		2,862		-		915		2,862		915		3,777		-		-632		3,145		-	abr-15
Beruti 3330 paseo del sol		-		-		232		40		-		272		272		-		-190		82		-	may-22
Intercontinental Plaza building		-		96		1,348		485		96		1,833		1,929		-1		918		2,846	jun-96		dec-14
Bank Boston Tower		-		214		172		-		214		172		386		-		23		409	dec-14		dec-14
Phillips building		-		-		3,326		2		-		3,328		3,328		2		2,774		6,104	jun-17		jun-17
Catalinas building		-		3,325		-		6,758		3,325		6,758		10,083		16		8,592		18,691			dic-20
Office and other rental properties				8,648		6,574		21,970		8,648		28,544		37,192		73		37,073		74,338

2

Schedule I (Continued)

			Initial Costs				Subsequent Costs		Costs at the end of the year
Name	Encumbrances		Plot of land (**)		Buildings, facilities and improvement (**)		Improvements / Additions / Disposals / Transfers (**)		Plot of land (**)		Buildings, facilities and improvements (**)		Total (**)		Capitalized cost, net (**)		Fair Value adjustments		Fair value at the end of the year (*)		Date of construction		Date of acquisition
Undeveloped parcels of land
Building annexed to Dot		-		1,628		-		-		1,628		-		1,628		-		7,421		9,049		-	nov-06
Luján plot of land		-		827		-		87		914		-		914		-		1,324		2,238		-	may-12
Caballito –Ferro plot of land		-		1,791		-		506		2,297		-		2,297		-		5,485		7,782		-	nov-97
Annexed to Dot plot of land		-		15		-		-		15		-		15		-		16		31		-	feb-17
Mendoza plot of land		-		27		-		-		27		-		27		-		12		39		-	dec-16
Intercontinental plot of land Tower B		-		820		-		1,315		2,135		-		2,135		-		70		2,205		-	dec-14
Mendoza Av Este 2992 plot of land		-		-		-		165		165		-		165		-		86		251		-	mar-18
La Plata plot of land		-		918		-		29		947		-		947		-		-35		912		-	mar-18
Casona Hudson		-		106		-		-		106		-		106		-		-106		-		-	dec-20
Alto Palermo Shopping - buildable potential		-		-		-		-		-		-		-		-		2,481		2,481		-	nov-97
Patio Bullrich - buildable potential		-		-		-		-		-		-		-		-		2,695		2,695		-	oct-98
Alto Rosario - buildable potential		-		-		-		-		-		-		-		-		1,009		1,009		-	nov-04
Cordoba Shopping - buildable potential		-		-		-		-		-		-		-		-		529		529		-	dec-06
Terreno Ezpeleta (Quilmes - Nueva Costa Urbana)		-		3,189		-		-		3,189		-		3,189		-		876		4,065		-	may-22
Beruti N° 3345/47 esq. Coronel Diaz 2110/20		-		-		2,525		-		-		2,525		2,525		-		606		3,131		-	jun-22
Costa urbana		-		7,653		625		880		8,532		626		9,158		1		80,150		89,309		-	may-07
Pilar		-		49		-		-		49		-		49		-		482		531		-	jun-14
Pontevedra		-		67		-		-		67		-		67		-		97		164		-	feb-98
TERRENO SAN LUIS		-		23		-		-		23		-		23		-		36		59		-	mar-08
Terreno La Plata CELAP		-		-		-		-		-		-		-		-		1,476		1,476		-	mar-18
Undeveloped parcels of land				17,113		3,150		2,982		20,094		3,151		23,245		1		104,710		127,956

3

 Schedule I (Continued)

			Initial Costs				Subsequent Costs		Costs at the end of the year
Name	Encumbrances		Plot of land (**)		Buildings, facilities and improvement (**)		Improvements / Additions / Disposals / Transfers (**)		Plot of land (**)		Buildings, facilities and improvements (**)		Total (**)		Capitalized cost, net (**)		Fair Value adjustments		Fair value at the end of the year (*)		Date of construction		Date of acquisition
Properties under development
PH Office Park		-		-		-		31		-		31		31		-		5		36	in progress			-
Alto Palermo Shopping annex		-		1,385		-		3,099		1,385		3,099		4,484		-		-4,484		-	in progress			-
Phillips building		-		-		-		138		-		138		138		-		2		140	in progress			-
Alto Avellaneda		-		-		-		228		-		228		228		-		163		391	in progress			-
Properties under development				1,385		-		3,496		1,385		3,496		4,881		-		-4,314		567
Others
DirecTV Arena Stadium		-		-		-		674		-		674		674		-		-674		-		-	feb-18
EH UT		-		-		-		262		-		262		262		-		29		291		-	sep-17
Others				-		-		936		-		936		936		-		-645		291
Total				34,768		76,359		71,095		37,749		144,473		182,222		92		110,980		293,294

(*) For the reconciliation of the carrying amount and its variations during the years ended June 30, 2022 and 2021 please refer to note 9 to the Consolidated Financial Statements. For variations during the year ended June 30, 2020 please refer to note 9 to the Consolidated Financial Statements as of June 30, 2021.

(**) Restated for inflation as of June 30, 2022.

4

XML

Cover - shares	12 Months Ended
	Jun. 30, 2022	Oct. 02, 2021
Document Information Line Items
Entity Registrant Name	IRSA Investments and Representations Inc.
Entity Central Index Key	0000933267
Document Type	20-F
Amendment Flag	false
Entity Voluntary Filers	Yes
Current Fiscal Year End Date	--06-30
Entity Well Known Seasoned Issuer	No
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2022
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		810,879,553
Document Annual Report	true
Document Transition Report	false
Entity File Number	001-13542
Entity Incorporation State Country Code	C1
Entity Address Address Line 1	Carlos M. Della Paolera 261
Entity Address Address Line 2	9th Floor (C1001ADA)
Entity Address City Or Town	City of Buenos Aires
Entity Address State Or Province	AR
Auditor Name	PRICE WATERHOUSE & Co. S.R.L
Auditor Location	Buenos Aires, Argentina
Auditor Firm Id	1349
Security 12b Title	Common Stock, par value ARS 1.00 per share
Trading Symbol	IRS
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes
Document Shell Company Report	false
Document Registration Statement	false
Document Accounting Standard	International Financial Reporting Standards
Business Contact [Member]
Document Information Line Items
Entity Address Address Line 1	Carlos M. Della Paolera 261
Entity Address Address Line 2	9th Floor, (C1001ADA)
Entity Address City Or Town	City of Buenos Aires
City Area Code	11
Local Phone Number	4323-7449
Contact Personnel Email Address	ir@irsa.com.ar
Contact Personnel Name	Matías Iván Gaivironsky

XML

Consolidated Statements of Financial Position - ARS ($)	Jun. 30, 2022	Jun. 30, 2021
Non-current assets
Investment properties	$ 293,294,000,000	$ 300,337,000,000
Property plant and equipment	7,990,000,000	6,799,000,000
Trading Properties	3,041,000,000	2,696,000,000
Intangible assets	3,379,000,000	3,936,000,000
Right-of-use assets	1,242,000,000	1,330,000,000
Investments in associates and joint ventures	16,134,000,000	19,948,000,000
Deferred income tax assets	76,000,000	731,000,000
Income tax credit	24,000,000	49,000,000
Trade and other receivables	4,336,000,000	4,669,000,000
Investments in financial assets	857,000,000	1,997,000,000
Total non-current assets	330,373,000,000	342,492,000,000
Current assets
Trading properties	193,000,000	187,000,000
Inventories	125,000,000	118,000,000
Income tax credit	54,000,000	271,000,000
Trade and other receivables	10,831,000,000	13,898,000,000
Investments in financial assets	18,440,000,000	5,192,000,000
Cash and cash equivalents	12,776,000,000	3,167,000,000
Total current assets	42,419,000,000	22,833,000,000
TOTAL ASSETS	372,792,000,000	365,325,000,000
SHAREHOLDERS' EQUITY
Shareholders' equity attributable to equity holders of the parent (according to corresponding statement)	158,853,000,000	101,394,000,000
Non-controlling interest	10,874,000,000	34,259,000,000
TOTAL SHAREHOLDERS' EQUITY	169,727,000,000	135,653,000,000
Non-current liabilities
Borrowings	13,052,000,000	76,619,000,000
Lease liabilities	1,148,000,000	1,397,000,000
Deferred income tax liabilities	98,590,000,000	112,735,000,000
Trade and other payables	3,557,000,000	2,274,000,000
Provisions	196,000,000	187,000,000
Derivative financial instruments	0	15,000,000
Salaries and social security liabilities	93,000,000	141,000,000
Total non-current liabilities	116,636,000,000	193,368,000,000
Current liabilities
Borrowings	61,682,000,000	25,268,000,000
Lease liabilities	80,000,000	89,000,000
Trade and other payables	8,524,000,000	8,368,000,000
Income tax liabilities1	15,118,000,000	1,543,000,000
Provisions	198,000,000	241,000,000
Derivative financial instruments	16,000,000	79,000,000
Salaries and social security liabilities	811,000,000	716,000,000
Total current liabilities	86,429,000,000	36,304,000,000
TOTAL LIABILITIES	203,065,000,000	229,672,000,000
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	$ 372,792,000,000	$ 365,325,000,000

XML

Consolidated Statements of Income and Other Comprehensive Income - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Consolidated Statements of Income and Other Comprehensive Income
Revenues	$ 32,085	$ 21,282	$ 34,868
Costs	(12,116)	(10,763)	(14,549)
Gross profit	19,969	10,519	20,319
Net gain / (loss) from fair value adjustment of investment properties	13,650	(12,742)	83,080
General and administrative expenses	(5,277)	(4,948)	(5,413)
Selling expenses	(2,237)	(2,443)	(2,988)
Other operating results, net	61	(141)	195
Profit / (loss) from operations	26,166	(9,755)	95,193
Share of loss of associates and joint ventures	(355)	(7,182)	17,787
Profit / (loss) before financial results and income tax	25,811	(16,937)	112,980
Finance income	463	592	525
Finance costs	(9,193)	(11,968)	(15,170)
Other financial results	17,792	19,215	(15,231)
Inflation adjustment	2,789	(2,370)	(26)
Financial results, net	11,851	5,469	(29,902)
Profit / (loss) before income tax	37,662	(11,468)	83,078
Income tax expense	(2,770)	(35,540)	(16,505)
Profit / (loss) for the year from continuing operations	34,892	(47,008)	66,573
Loss for the year from discontinued operations	0	(14,633)	(8,112)
Profit / (loss) for the year	34,892	(61,641)	58,461
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment (i)	(538)	(610)	1,127
Revaluation surplus	361	626	992
Other comprehensive (loss) / income for the year from continuing operations	(177)	16	2,119
Other comprehensive (loss) / income for the year from discontinued operations (i)	0	(18,764)	32,810
Total other comprehensive (loss) / income for the year	(177)	(18,748)	34,929
Total comprehensive income / (loss) for the year	34,715	(80,389)	93,390
Total comprehensive income / (loss) from continuing operations	34,715	(46,992)	68,693
Total comprehensive (loss) / income from discontinued operations	0	(33,397)	24,697
Total comprehensive income / (loss) for the year	34,715	(80,389)	93,390
Profit / (loss) for the year attributable to:
Equity holders of the parent	34,552	(49,077)	35,100
Non-controlling interest	340	(12,564)	23,361
Profit / (loss) from continuing operations attributable to:
Equity holder of the parent	34,552	(37,515)	49,084
Non-controlling interest	340	(9,493)	17,489
Total comprehensive income / (loss) attributable to:
Equity holders of the parent	34,374	(57,080)	32,677
Non-controlling interest	341	23,309	60,713
Total comprehensive income / (loss) from continuing operations attributable to:
Equity holders of the parent	34,375	(36,343)	56,590
Non-controlling interest	$ 340	$ (10,649)	$ 12,103
Profit / (loss) per share attributable to equity holders of the parent: (ii)
Basic	$ 42.73	$ (83.41)	$ 61.00
Diluted	38.79	(83.41)	60.66
Profit / (loss) per share from continuing operations attributable to equity holders of the parent:
Basic	42.73	(63.76)	85.31
Diluted	$ 38.79	$ (63.76)	$ 84.82

XML

Statement Of Changes in Stockholder's Equity shares in Millions	ARS ($) shares	Share Capital [Member] USD ($) shares	Share Capital [Member] ARS ($) shares	Treasury Shares [Member] USD ($) shares	Treasury Shares [Member] ARS ($) shares	Additional Paid In Capital From Treasury Shares [Member] USD ($) shares	Additional Paid In Capital From Treasury Shares [Member] ARS ($) shares	Special Reserve Resolution C N V60912 (iii)[Member] USD ($) shares	Special Reserve Resolution C N V60912 (iii)[Member] ARS ($) shares	Reserve For Future Dividends [Member] USD ($) shares	Reserve For Future Dividends [Member] ARS ($) shares	Currency Translation Adjustment Reserve [Member] USD ($) shares	Currency Translation Adjustment Reserve [Member] ARS ($) shares	Special Reserve [Member] USD ($) shares	Special Reserve [Member] ARS ($) shares	Total Other Reserves [Member] USD ($) shares	Total Other Reserves [Member] ARS ($) shares	Inflation Adjustment Of Share Capital And Treasury Shares i [Member] USD ($) shares	Inflation Adjustment Of Share Capital And Treasury Shares i [Member] ARS ($) shares	Share Premium [Member] USD ($) shares	Share Premium [Member] ARS ($) shares	Legal Reserves [Member] USD ($) shares	Legal Reserves [Member] ARS ($) shares	Warrants (ii) [Member] USD ($) shares	Warrants (ii) [Member] ARS ($) shares	Cost Of Treasury Stock [Member] USD ($)	Cost Of Treasury Stock [Member] ARS ($)	Other Reserves 1 [Member] USD ($) shares	Other Reserves 1 [Member] ARS ($) shares	Retained Earnings [Member] USD ($) shares	Retained Earnings [Member] ARS ($) shares	Subtotal [Member] USD ($) shares	Subtotal [Member] ARS ($) shares	Non-Controlling Interests [Member] USD ($) shares	Non-Controlling Interests [Member] ARS ($) shares	Other Reserves (vi) [Member] USD ($) shares	Other Reserves (vi) [Member] ARS ($) shares
Balance, shares at Jun. 30, 2019 | shares		577	577	2	2	190	190	23,164	23,164	4,168	4,168	648	648	175,953	175,953	167,601	167,601	34,177	34,177	35,813	35,813	1,194	1,194					12,764	12,764	149,808	149,808	112,910	112,910	189,192	189,192	167,601	167,601
Balance, amount at Jun. 30, 2019	$ 302,102,000,000	$ 577,000,000		$ 2,000,000		$ 190,000,000		$ 23,164,000,000		$ 4,168,000,000		$ 648,000,000		$ 175,953,000,000		$ 167,601,000,000		$ 34,177,000,000		$ 35,813,000,000		$ 1,194,000,000				$ (404,000,000)		$ (12,764,000,000)		$ (149,808,000,000)		$ 112,910,000,000		$ 189,192,000,000		$ 167,601,000,000
Statement [Line Items]
Adjustments of previous years		0			$ 0		$ 0		$ 0										$ 0		$ 0		$ 0								$ (3,217,000,000)		$ (3,217,000,000)		$ (2,117,000,000)		$ 0
Restated balance	296,768,000,000	$ 577,000,000			2,000,000		190,000,000		23,164,000,000										34,177,000,000		35,813,000,000		1,194,000,000								(153,025,000,000)		109,693,000,000		187,075,000,000		167,601,000,000
Net Income (Loss)	58,461,000,000		$ 0		0		0	0											0		0		0							35,100,000,000		35,100,000,000		23,361,000,000			0
Other comprehensive (loss) / income for the year	34,929,000,000		0		0		0		0		$ 0		$ (2,149,000,000)		$ 0		$ (2,423,000,000)		0		0		0				$ 0		$ (274,000,000)		0		(2,423,000,000)		37,352,000,000		(2,423,000,000)
Total profit / (loss) and other comprehensive income for the year	93,390,000,000		0		0		0		0		0		(2,149,000,000)		0		(2,423,000,000)		0		0		0				0		(274,000,000)		35,100,000,000		32,677,000,000		60,713,000,000		(2,423,000,000)
Loss absorption	0		0		0		0		0		0		0		(148,896,000,000)		(148,896,000,000)		0		0		0				0		0		148,896,000,000		0		0		(148,896,000,000)
Reserve for share-based payments	0		0		0		43,000,000		0		0		0		0		(43,000,000)		0		0		0				(18,000,000)		(25,000,000)		0		0		0		(43,000,000)
Distribution of dividends in shares	(1,455,000,000)		0		0		0		0		0		0		(1,455,000,000)		(1,455,000,000)		0		0		0				0		0		0		(1,455,000,000)		0		(1,455,000,000)
Capitalization of contributions	77,000,000		0		0		0		0										0		0		0								0		0		77,000,000		0
Dividend distribution	(5,623,000,000)		0		0		0		0										0		0		0								0		0		(5,623,000,000)		0
Decrease due to loss of control	(106,654,000,000)		0		0		0		0										0		0		0								0		0		(106,654,000,000)		0
Other changes in equity	377,000,000		0		0		0		0		0		(292,000,000)		0		(292,000,000)		0		0		0				0		0		55,000,000		(237,000,000)		614,000,000		(292,000,000)
Incorporation by business combination	18,332,000,000		0		0		0		0										0		0		0								0		0		18,332,000,000		0
Changes in non-controlling interest	6,886,000,000		$ 0		$ 0		$ 0		0		0		0		0		23,000,000		$ 0		$ 0		0				0		23,000,000		0		23,000,000		6,863,000,000		23,000,000
Balance, shares at Jun. 30, 2020 | shares		577	577	2	2	233	233											34,177	34,177	35,813	35,813
Balance, amount at Jun. 30, 2020	302,098,000,000							23,164,000,000		4,168,000,000		(1,793,000,000)		25,602,000,000		14,515,000,000						1,194,000,000				(422,000,000)		(13,040,000,000)		31,026,000,000		140,701,000,000		161,397,000,000		14,515,000,000
Statement [Line Items]
Net Income (Loss)	(61,641,000,000)	$ 0		$ 0		$ 0		0										$ 0		$ 0		0								(49,077,000,000)		(49,077,000,000)		$ (12,564,000,000)		0
Other comprehensive (loss) / income for the year	(18,748,000,000)	0			$ 0		$ 0		0		0		(8,671,000,000)		0		(8,003,000,000)		$ 0		$ 0		0				0		668,000,000		0		(8,003,000,000)		(10,745,000,000)		(8,003,000,000)
Total profit / (loss) and other comprehensive income for the year		0			0		0		0		0				0		(8,003,000,000)		0		0		0				0		668,000,000		(49,077,000,000)		(57,080,000,000)		(23,309,000,000)		(8,003,000,000)
Reserve for share-based payments		0			0		10,000,000		0		0		0		0		(10,000,000)		0		0		0				3,000,000		(13,000,000)		0		0		0		(10,000,000)
Dividend distribution	(1,189,000,000)				0		0		0		0		0		0		0		0		0		0	$ 0			0		0		(1,189,000,000)		(1,189,000,000)		0		0
Decrease due to loss of control	(102,520,000,000)	0			0		0		0				0				0		0		0		0				0		0				0		0		0
Other changes in equity	14,456,000,000	0			0		0		0		0		0		0		0		0		0		0				0		0		0		12,884,000,000		0		12,884,000,000
Changes in non-controlling interest	14,456,000,000												0		0		0		0		0		0												1,572,000,000		0
Assignment of results according to Shareholders? Meeting		0			0		0		0		0		0		26,067,000,000		26,067,000,000		0		0		1,435,000,000				0		0		(27,502,000,000)		0		0		26,067,000,000
Issuance of shares, shares | shares																								2,917	2,917
Issuance of shares, Amount	$ 6,778,000,000	80,000,000			0		0		0		0		11,526,000,000		0		0		59,000,000		3,722,000,000		0				0		0		0		6,778,000,000		$ 0		0
Issuance of shares, shares | shares	84																																	84	84
Capitalization of irrevocable contributions	$ (4,400,000,000)	0			0		0		0		0		0		0		0		0		0		0				0		0		0		0		$ (4,400,000,000)		0
Decrease due to loss of control		0			0		0						0				0				0						0		0		0
Balance, shares at Jun. 30, 2021 | shares																								2,917	2,917
Balance, amount at Jun. 30, 2021	135,653,000,000	657,000,000		2,000,000		243,000,000		23,164,000,000		4,168,000,000		1,062,000,000		51,669,000,000		44,753,000,000		34,236,000,000		39,535,000,000		2,629,000,000				(419,000,000)		(11,727,000,000)		(46,742,000,000)		101,394,000,000		$ 34,259,000,000		44,753,000,000
Statement [Line Items]
Net Income (Loss)	34,892,000,000	0		0		0		0		0		0		0				0		0		0				0		0		34,552,000,000		34,552,000,000		340,000,000		0
Other comprehensive (loss) / income for the year	(177,000,000)	0			0		0		0		0		(539,000,000)		0		(178,000,000)		0		0		0				0		361,000,000		0		(178,000,000)		1,000,000		(178,000,000)
Total profit / (loss) and other comprehensive income for the year	34,715,000,000	0			0		0		0		0		(539,000,000)		0		(178,000,000)		0		0		0				0		361,000,000		34,552,000,000		34,374,000,000		341,000,000		(178,000,000)
Dividend distribution	(176,000,000)	0			0		0		0		0		0		0		0		0		0		0				0		0		0		0		(176,000,000)		0
Assignment of results according to Shareholders? Meeting		0			0		0		0		0		0		(50,332,000,000)		(50,332,000,000)		0		0		0				0		0		50,332,000,000		0		0		(50,332,000,000)
Capitalization of irrevocable contributions	43,000,000	0			0		0		0		0		0		0		0		0		0		0				0		0		0		0		43,000,000		0
Warrants exercise	4,000,000	0			0		0		0		0		0		0		0		0		6,000,000		0		$ (2,000,000)		0		0		0		4,000,000		0		0
Repurchase of own shares, Amount	(325,000,000)		$ (4,000,000)		4,000,000		0		0		0		0		0		(325,000,000)		0		0		0				(325,000,000)		0		0		(325,000,000)		0		(325,000,000)
Incorporated by merger	(187,000,000)	152,000,000			$ 0		$ 0		$ 0		$ 0		$ (19,000,000)		$ 0		$ (175,000,000)		$ 55,000,000		$ 26,373,000,000		$ 489,000,000				$ 0		$ (156,000,000)		$ (3,488,000,000)		$ 23,406,000,000		$ (23,593,000,000)		$ (175,000,000)
Balance, shares at Jun. 30, 2022 | shares																								2,915	2,915
Balance, amount at Jun. 30, 2022	$ 169,727,000,000	$ 805,000,000		$ 6,000,000		$ 243,000,000		$ 23,164,000,000		$ 4,168,000,000		$ 504,000,000		$ 1,337,000,000		$ (6,257,000,000)		$ 34,291,000,000		$ 65,914,000,000		$ 3,118,000,000				$ (744,000,000)		$ (11,522,000,000)		$ 34,654,000,000		$ 158,853,000,000		$ 10,874,000,000		$ (6,257,000,000)

XML

Consolidated Statements of Cash Flows - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net cash generated from / (used in) continuing operating activities before income tax paid	$ 13,169	$ (2,710)	$ 16,115
Income tax and minimum presumed income tax paid	(492)	(69)	(746)
Net cash generated from / (used in) continuing operating activities	12,677	(2,779)	15,369
Net cash generated from discontinued operating activities	0	5,168	61,261
Net cash generated from operating activities	12,677	2,389	76,630
Investing activities:
Contributions and issuance of capital in associates and joint ventures	(125)	(69)	(6,654)
Acquisition and improvements of investment properties	(6,134)	(1,638)	(9,058)
Contributions and issuance of capital in associates and joint ventures pending of susbscription	(57)	0	0
Proceeds from sales of investment properties	25,977	29,737	443
Acquisitions and improvements of property, plant and equipment	(335)	(503)	(621)
Proceeds from sales of property, plant and equipment	4	572	0
Acquisitions of intangible assets	(65)	(85)	(107)
Dividends collected from associates and joint ventures	3,586	0	566
Proceeds from loans granted	453	15	4,434
(Payment)/ Proceeds of derivative financial instruments	(77)	(857)	12,195
Net increase of restricted assets, net	0	0	(515)
Acquisitions of investments in financial assets	(22,871)	(17,453)	(37,955)
Proceeds from disposal of investments in financial assets	10,501	27,285	49,472
Interest received from financial assets	338	1,104	211
Loans granted to related parties	0	0	(407)
Net cash generated from / (used in) continuing investing activities	11,195	38,108	12,004
Net cash generated from discontinued investing activities	0	72,347	100,302
Net cash generated from investing activities	11,195	110,455	112,306
Financing activities:
Borrowings and issuance of non-convertible notes	4,877	15,354	54,398
Payment of borrowings and non-convertible notes	(10,926)	(65,278)	(66,463)
(Payment) / collections of short term loans, net	(999)	8,409	6,197
Interests paid	(8,186)	(13,484)	(13,296)
Repurchase of non-convertible notes	(1,726)	(8,412)	(5,003)
Capital contributions from non-controlling interest in subsidiaries	40	43	0
Acquisition of non-controlling interest in subsidiaries	0	(123)	(1,482)
Issuance of shares	0	6,776	0
Loans received from associates and joint ventures, net	24	0	0
Payment of borrowings to related parties	(481)	0	0
Dividends paid to non-controlling interest in subsidiaries	(181)	(4,242)	(546)
Warrants exercise	4	0	0
Proceeds from sales of own non-convertible notes	4,252	11,574	0
Payment of financial leases	(36)	(67)	(116)
Repurchase of treasury shares	(325)	0	0
Net cash used in continuing financing activities	(13,663)	(49,450)	(26,311)
Net cash used in discontinued financing activities	0	(29,784)	(173,386)
Net cash used in financing activities	(13,663)	(79,234)	(199,697)
Net increase / (decrease) in cash and cash equivalents from continuing activities	10,209	(14,121)	1,062
Net increase / (decrease) in cash and cash equivalents from discontinued activities	0	47,731	(11,823)
Net increase / (decrease) in cash and cash equivalents	10,209	33,610	(10,761)
Cash and cash equivalents at beginning of the year	3,167	222,556	212,910
Cash and cash equivalents reclassified as held-for-sale	0	0	(1,109)
Inflation adjustment	(399)	(371)	(500)
Deconsolidation of subsidiaries	0	(238,316)	0
Foreign exchange (loss)/gain on cash and unrealized fair value result for cash equivalents	(201)	(14,312)	22,016
Cash and cash equivalents at end of the year	$ 12,776	$ 3,167	$ 222,556

XML

The Group's business and general information

12 Months Ended

Jun. 30, 2022

1. The Group's business and general information

1. The Group’s business and general information

IRSA was founded in 1943, and it is engaged in diverse real estate activities in Argentina since 1991. IRSA and its subsidiaries are collectively referred to hereinafter as “the Group”. Cresud is our direct parent company, whose main shareholder is Consultores Asset Management S.A., whose final beneficiary is Eduardo Sergio Elsztain.

These Consolidated Financial Statements have been approved for issuance by the Board of Directors on October 25,2022.

As of the end of these Consolidated Financial Statements, the Group owns 15 shopping malls, 6 office buildings, three hotels and an extensive land reserve for future mixed-use developments. Additionally, the Group holds a 29.91% interest in Banco Hipotecario S.A. (BHSA), which is a leading commercial bank in the provision of mortgaged loans in Argentina. BHSA's shares are listed on the BYMA.

The Group operates and holds a majority interest (with the exception of La Ribera Shopping Center, of which it has a 50% ownership interest) in a portfolio of 14 shopping malls in Argentina, six of which are located in the Autonomous City of Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet) and the rest are situated in different provinces (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera in the City of Córdoba, Alto Comahue in the City of Neuquén and La Ribera Shopping in the City of Santa Fe). The Group also owns the historic building where the Patio Olmos Shopping Mall is located, operated by a third party.

Likewise, the Group manages a 6 office buildings portfolio and has majority stakes in three luxury hotels including the Libertador and Intercontinental hotels in the Autonomous City of Buenos Aires and the exclusive Llao Llao resort, in the city of Bariloche, in southern Argentina. Additionally, the Group participates in the development of residential properties for sale, as well as in other investments.

Operations Center in Israel

As stated in Note 1 to the consolidated financial statements as of June 30, 2020, on September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed from its functions, therefore, the Group lost control on that date. For comparability purposes and as required by IFRS 5, the results of the Israel Operations Center have been reclassified to discontinued operations for all the years presented.

XML

Summary of significant accounting policies

12 Months Ended

Jun. 30, 2022

2. Summary of significant accounting policies

2. Summary of significant accounting policies

2.1. Basis of preparation of the Consolidated Financial Statement

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB and interpretations issued by the IFRIC. All IFRS applicable as of the date of these Consolidated Financial Statements have been applied.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting fiscal year, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude whether economy is categorized as hyperinflationary the provisions of IAS 29, details a series of factors to be considered, including the existence of a cumulative inflation rate in the three years preceding the measurement that approximates or exceeds 100%. It is for this reason that, in accordance with IAS 29, Argentina must be considered a country with highly inflationary economy starting July 1, 2018.

In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the measuring unit current at the end of the reporting period set forth in IAS 29 in their annual, interim and special financial statements closed on or after December 31, 2018. Thus, these Consolidated Financial Statements have been reported in terms of the measuring unit current as of June 30, 2022 accordingly to IAS 29.

Pursuant to IAS 29, the Financial Statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the date of the Financial Statements. All the amounts included in the Consolidated Statements of Financial Position which are not stated in terms of the measuring unit current as of the date of the Financial Statements should be restated applying the general price index. All items in the Consolidated Statements of Income and Other Comprehensive Income should be stated in terms of the measuring unit current as of the date of the Financial Statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the Financial Statements.

Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the FACPCE based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).

The principal inflation adjustment procedures are the following:

- Monetary assets and liabilities that are already recorded at the measuring unit of the balance sheet closing date are not restated because they are already stated in terms of the measuring unit current as of the date of the financial statements.

- Non-monetary assets, and liabilities recorded at cost as of the balance sheet date and equity component are restated by applying the relevant adjustment coefficients.

- All items in the Consolidated Statements of Income and Other Comprehensive Income are restated applying the relevant conversion factors.

- The effect of inflation on the Group’s net monetary position is included in the Consolidated Statements of Income and Other Comprehensive Income under Financial results, net, in the item “Inflation adjustment”.

- Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.

Upon initially applying inflation adjustment, the equity accounts were restated as follows:

- Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later. The resulting amount was included in the “Comprehensive Inflation adjustment of share capital and treasury shares adjustment” account.

- Translation difference was restated in current terms.

- Other comprehensive income / (loss) was restated as from each accounting allocation.

- The other reserves in the Consolidated Statements of Income and Other Comprehensive Income were restated from the initial application.

The inflation index to be used and in accordance with the FACPCE Resolution No. 539/18, it will be determined based on the Wholesale Price Index (IPIM) until 2016, considering for the months of November and December 2015 the average variation of Consumer Price indices (CPI) of the Autonomous City of Buenos Aires, because during those two months there were no national IPIM measurements. Since January 2017, the National Consumer Price Index (National CPI) will be considered. The tables below show the evolution of these indices in the last two fiscal years and as of June 30, 2022 according to official statistics (INDEC) following the guidelines described in Resolution 539/18.

Annual price variation	June 30, 2020			June 30, 2021			June 30, 2022			Cumulative as of June 30, 2022 (3 years)
		43	%		50	%		64	%		252	%

As a consequence of the aforementioned, these Consolidated Financial Statements as of June 30, 2022 were restated in accordance with IAS 29.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its Consolidated Statement of Financial Position according to the operating cycle of each activity. Current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax liabilities) are presented separately from each other and from other assets and liabilities, classified as current and non-current, respectively.

(c) Presentation currency

The Consolidated Financial Statements are presented in millions of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to “Peso amounts” or “ARS”, are millions of Argentine Pesos, references to “US$” or “US Dollars” are millions of US Dollars and references to "NIS" are millions of New Israeli Shekel.

(d) Fiscal year-end

The fiscal year begins on July 1st and ends on June 30 of each year.

(e) Accounting criteria

See Notes 2.2 to 2.25 with the accounting policies of each item.

(f) Reporting cash flows

The Group reports operating activities cash flows using the indirect method. Interest paid is presented within financing activities. Interest received for financing of operating activities is presented within operating activities whereas the rest is presented within investing activities. The acquisitions and disposals of investment properties are disclosed within investing activities as this most appropriately reflects the Group’s business activities. Cash flows in respect to trading properties are disclosed within operating activities because these items are sold in the ordinary course of business.

(g) Use of estimates

The preparation of Financial Statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the year. Actual results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimations and significant judgments are described in Note 3.

2.2. New accounting standards

The following standards and amendments have been issued by the IASB. Below we outline the standards and amendments that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group

Standards and amendment	Description	Date of mandatory adoption for the Group in  the year ended on
Covid-19 - related Rent Concessions - Amendments to IFRS 16.	As a result of the COVID-19 pandemic, rent concessions have been granted to lessees. Such concessions might take a variety of forms, including payment holidays and deferral of lease payments. In May 2020, the IASB made an amendment to IFRS 16 Leases which provides lessees with an option to treat qualifying rent concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concessions as variable lease payments in the period in which they are granted. Entities applying the practical expedients must disclose this fact, whether the expedient has been applied to all qualifying rent concessions or, if not, information about the nature of the contracts to which it has been applied, as well as the amount recognized in profit or loss arising from the rent concessions.	06-30- 2021

The adoption of these amendment has not had a material impact for the Group.

Standards and amendments not yet adopted by the Group:

Standards and amendment	Description	Date of mandatory adoption for the Group in the year ended on
Amendment to IAS 1.	The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g., the receipt of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities, particularly for entities that previously considered management’s intentions to determine classification and for some liabilities that can be converted into equity. They must be applied retrospectively in accordance with the normal requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.	06-30-2024
Amendment to IAS 37.	The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. Before recognizing a separate provision for an onerous contract, the entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract.	06-30-2023
Property, plant and equipment: Proceeds before intended use - Amendments to IAS 16.	The amendment to IAS 16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment.	06-30-2023
Reference to the Conceptual Framework – Amendments to IFRS 3	Minor amendments were made to IFRS 3 Business Combinations to update the references to the Conceptual Framework for Financial Reporting and add an exception for the recognition of liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation 21 Levies. The amendments also confirm that contingent assets should not be recognized at the acquisition date.	06-30-2023
Annual Improvements to IFRS 2018-2020	The following improvements were finalized in May 2020: •        IFRS 9 Financial Instruments: clarifies which fees should be included in the 10% test for derecognition of financial liabilities. •        IFRS 16 Leases – amendment of illustrative example 13 to remove the illustration of payments from the lessor relating to leasehold improvements, to remove any confusion about the treatment of lease incentives. •        IFRS 1 First-time Adoption of International Financial Reporting Standards – allows entities that have measured their assets and liabilities at carrying amounts recorded in their parent’s books to also measure any cumulative translation differences using the amounts reported by the parent. This amendment will also apply to associates and joint ventures that have taken the same IFRS 1 exemption.	06-30-2023

Deferred tax - Amendments to IAS 12.	The IASB issued amendments to IAS 12 that clarifies how companies account for deferred tax related to assets and liabilities that arise from a single transaction. The effects of these amendments essentially mean that the initial recognition exception is not available for transactions that involve the recognition of both an asset and a liability, such as leases and decommissioning obligations.	06-30-2024
Accounting Policy Disclosures - Amendment to IAS 1 and Practical Statement 2	The IASB amended IAS 1 to require entities to disclose their material accounting policies rather than their significant accounting policies. The amendments define what it implies and how to identify material accounting policy information. They also clarify that it is not necessary to disclose immaterial accounting policy. If it is disclosed should not overshadow material accounting information. To support this amendment, the IASB also amended IFRS Practical Statement 2 on "Making materiality related judgments" to advise on how to apply the concept of materiality to disclosure of accounting policies.	06-30-2024
Definition of accounting estimates - Amendments to IAS 8.	The amendment to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" clarifies how entities should distinguish changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events, as well as to the current exercise.	06-30-2024
Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28	The IASB has made limited scope amendments to IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures. The amendments clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the nonmonetary assets sold or contributed to an associate or joint venture constitute a ‘business’ (as defined in IFRS 3 Business Combinations). Where the non-monetary assets constitute a business, the investor will recognize the full gain or loss on the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is recognized by the investor only to the extent of the other investor’s interests in the associate or joint venture. The amendments apply prospectively.	N/A. In December 2015 the IASB decided to defer the application date of this amendment until the IASB has finalized its research project on the equity method.

Management is evaluating the impact that these new standards and amendments will have for the Group.

At the date of issuance of these consolidated financial statements, there are no other standards or modifications issued by the IASB which must be analyzed.

2.3. Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity but does have capacity to define its relevant activities because of de-facto control.

The Group uses the acquisition method of accounting for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on a case-by-case base.

The excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the Consolidated Statements of Income and Other Comprehensive Income as “Bargain purchase gains”.

The Group conducts its business through several operating and investment companies, the main ones are listed below:

			% of ownership interest held by the Group
Name of the entity	Country	Main activity	06.30.2022			06.30.2021			06.30.2020
IRSA's direct interest:
E-Commerce Latina S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Hoteles Argentinos S.A.U.	Argentina	Hotel		100.00	%		100.00	%		100.00	%
Inversora Bolívar S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Llao Llao Resorts S.A. (1)	Argentina	Hotel		50.00	%		50.00	%		50.00	%
Nuevas Fronteras S.A.	Argentina	Hotel		76.34	%		76.34	%		76.34	%
Palermo Invest S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Ritelco S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Tyrus S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment		50.00	%		50.00	%		50.00	%
Arcos del Gourmet S.A.	Argentina	Real estate		90.00	%		90.00	%		90.00	%
Emprendimiento Recoleta S.A.	Argentina	Real estate		53.68	%		53.68	%		53.68	%
Fibesa S.A. (2)	Argentina	Real estate		100.00	%		100.00	%		100.00	%
Panamerican Mall S.A.	Argentina	Real estate		80.00	%		80.00	%		80.00	%
Shopping Neuquén S.A.	Argentina	Real estate		99.95	%		99.95	%		99.95	%
Torodur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
EHSA	Argentina	Investment		70.00	%		70.00	%		70.00	%
Centro de Entretenimiento La Plata	Argentina	Real estate		100.00	%		100.00	%		100.00	%
We Are Appa S.A.	Argentina	Design and software development		93.63	%		93.63	%		69.69	%
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment		99.50	%		99.50	%		97.04	%
IRSA International LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Jiwin S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Liveck S.A. (4)	British Virgin Islands	Investment		100.00	%		100.00	%		100.00	%
Real Estate Strategies LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment		100.00	%		100.00	%		100.00	%
DFL's and DN BV's direct interest:
IDB Development Corporation Ltd. (3)	Israel	Investment		-			-			100.00	%
Dolphin IL Investment Ltd.	Israel	Investment		100.00	%		100.00	%		100.00	%
DIL's direct interest:
Discount Investment Corporation Ltd. (3)	Israel	Investment		-			-			83.72	%
IDBD's direct interest:
IDB Tourism (2009) Ltd. (3)	Israel	Tourism services		-			-			100.00	%
IDB Group Investment Inc (3)	Israel	Investment		-			-			100.00	%
DIC's direct interest:
Property & Building Corporation Ltd. (3)	Israel	Real estate		-			-			72.40	%
Cellcom Israel Ltd. (3)	Israel	Telecommunications		-			-			46.20	%
Elron Electronic Industries Ltd. (3)	Israel	Investment		-			-			61.06	%
Bartan Holdings and Investments Ltd. (3)	Israel	Investment		-			-			55.68	%
Epsilon Investment House Ltd. (3)	Israel	Investment		-			-			68.75	%
Mehadrin Ltd. (3)	Israel	Agricultural		-			-			43.75	%
PBC's direct interest:
Gav-Yam Bayside Land Corporation Ltd. (3)	Israel	Real estate		-			-			-
Ispro The Israeli Properties Rental Corporation Ltd. (3)	Israel	Real estate		-			-			100.00	%
Matam - Scientific Industries Center Haifa Ltd. (3)	Israel	Real estate		-			-			50.10	%
Hadarim Properties Ltd. (3)	Israel	Real estate		-			-			100.00	%
Property & Building (Commercial Centers) Ltd. (3)	Israel	Real estate		-			-			100.00	%
PBC USA Investments Inc (3)	USA	Real estate		-			-			100.00	%

(1)	The Group has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers it majority of votes in the decision-making process.
(2)	Includes interest held through Ritelco S.A. and Torodur S.A.
(3)	Control was lost in September 2020. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.
(4)	Includes Tyrus’ and IRSA S.A.’s equity interests.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant. In quantitative terms, the Group considers significant those investments that individually represent at least 20% of the total equity attributable to non-controlling interest in subsidiaries at each year-end. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each of them has for the Group.

Summarized financial information on subsidiaries with material non-controlling interests and other information are included in Note 7.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – i.e., as transactions with the owners in their capacity as owners. The recorded value corresponds to the difference between the fair value of the consideration paid and/or received and the relevant share acquired and/or transferred of the carrying value of the net assets of the subsidiary.

(c) Disposal of subsidiaries with loss of control

When the Group ceases to have control any retained interest in the entity is re-measured at its fair value at the date when control is lost, with changes in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, usually representing an interest between 20% and at least 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, except as otherwise indicated as explained below. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

As of each year-end or upon the existence of evidence of impairment, a determination is made as to whether there is any objective indication of impairment in the value of the investments in associates. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the Associates and its carrying value and recognizes the amount adjacent to "Share of profit / (loss) of associates and joint ventures " in the Statement of Income and Other Comprehensive Income.

Profit and losses resulting from transactions between the Group and the associate are recognized in the Group's financial statements only to the extent of the interests in the associates of the unrelated investor. Unrealized losses are eliminated unless the transaction reflects signs of impairment of the value of the asset transferred. The accounting policies of associates are modified to ensure uniformity within Group policies.

Note 8 includes summary financial information and other information of the Group's associates.

The Group takes into account quantitative and qualitative aspects to determine which investments in associates are considered significant.

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method of accounting, pursuant to which interests in joint ventures are initially recognized in the Consolidated Statements of Financial Position at cost and adjusted thereafter to recognize the Group’s share of post-acquisition profits or losses and other comprehensive income in the Statements of Income and Other Comprehensive Income.

The Group determines at each reporting date whether there is any objective evidence that the investment in a joint ventures is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes such difference in "Share of profit / (loss) of associates and joint ventures" in the Consolidated Statements of Income and Other Comprehensive Income.

2.4. Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (“CODM”), responsible for allocating resources and assessing performance. The operating segments are described in Note 6.

2.5. Foreign currency translation

(a) Functional and presentation currency

Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities nominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the Consolidated Statements of Income and Other Comprehensive Income within other financial income, as appropriate, unless they have been capitalized.

(c) Group companies

The results and financial position of all the Group entities that have a functional currency different from the presentation currency (none of which has the currency of a hyperinflationary economy) are translated into the presentation currency as follows:

(i)	assets, liabilities and goodwill for each Statement of Financial Position presented are translated at the closing rate at the date of that financial position;
(ii)	income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and
(iii)	all resulting exchange differences are recognized in the Consolidated Statements of Income and Other Comprehensive Income.

The accounting policy of the Group consists in accounting for the translation difference of its subsidiaries by the “step-by-step” method according to IAS 21.

2.6. Investment properties

Investment properties are those properties owned by the Group that are held either to earn long-term rental income or for capital appreciation, or both, and that are not occupied by the Group for its own operations. Investment property also includes property that is being constructed or developed for future use as investment property. The Group also classifies as investment properties land whose future use has not been determined yet. The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and undeveloped land.

Additionally, the Group reflects the value of economically “buildable potentials” in those properties that meet the following requirements: a) have buildable potential that are legally viable based on the application of approved Planning Codes and / or specific Ordinances. and b) have a commercial viability either due to their realization market or their constructive feasibility (see Note 9). If due to regulatory or legal regulations and commercial and/or economic aspects, the buildable potential can only be made by the Group and it has not been built yet, the asset value is not recognized.

When a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment properties under IAS 40 “Investment Properties”.

Investment properties are measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in condition to start operating.

Direct expenses related to lease contract negotiation (such as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. Capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only where activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. On the other hand, properties under construction for which the fair value cannot be determined reliably, but for which the Group expects it to be determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of office buildings and land reserves is based on comparable active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset (Level 2).

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations (Level 3).

As required by CNV 576/10 Resolution, valuations are performed as of the financial position date by accredited externals appraisers who have recognized professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the Consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditures are capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the Consolidated Statements of Income and Other Comprehensive Income under the line item “Net (loss) / gain from fair value adjustment of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The transfer of investment properties to other items is carried out at the fair value of the asset on the date of change of use and said fair value is the cost of the property for the purposes of subsequent accounting according to the applicable standard. If an owner-occupied property is converted to investment property, the Group values the property at the corresponding carrying amount prior to transfer and classifies it as investment property at fair value on the date of change of use. The Group will treat any difference, as of that date, between the determined carrying amount of the property and the fair value, in the same way in which it would record a revaluation applying IAS 16. A transfer from inventories to Investment properties, will be accounted by recognizing the result between its previous book value and its fair value and any difference between the fair value of the property at that date and its previous carrying amount will be recognized in the result of the fiscal year.

The Group may sell its investment property when it considers that such property no longer forms part of the lease business. The carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the Consolidated Statements of Income and Other Comprehensive Income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposals. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are accounted for when title to property passes to the buyer and the buyer intends to make the respective payment. In the case of conditional agreements, disposal are accounted for when the conditions the agreements is subject to has been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value. The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "Other operating results, net" in the Consolidated Statements of Income and Other Comprehensive Income at the time they are incurred.

2.7. Property, plant and equipment

This category primarily comprises, buildings or portions of a building used for administrative purposes, machines, computers, and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

The Group has also several hotel properties. Based on the respective contractual arrangements with hotel managers and / or given their direct operators nature, the Group considers it retains significant exposure to the variations in the cash flows of the hotel operations, and accordingly, hotels are treated as owner-occupied properties and classified under "Property, plant and equipment".

All property, plant and equipment (“PPE”) is stated at acquisition cost restated as of the closing date less accumulated depreciation and impairment, if any. The acquisition cost includes expenditures which are directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and the property is in conditions to start operating.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized. The carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged as incurred in the Consolidated Statements of Income and Other Comprehensive Income. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

The remaining useful life as of June 30, 2022 is as follows:

Buildings and facilities	Between 5 and 50 years
Machinery and equipment	Between 3 and 24 years
Communication networks	Between 4 and 20 years
Others	Between 3 and 25 years

As of each fiscal year-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each fiscal year-end, the residual useful life of assets is estimated and adjusted, if necessary. The book amount of an asset is reduced to its recoverable value if the book value greater than its estimated recoverable value.

Gains from the sale of these assets are recognized when control is transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied. Gains and losses on disposals are determined by comparing the proceeds net of direct expenses related to such sales, with the carrying amount as of the date of each transaction. Gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

When assets of property, plant and equipment are transferred to investment property, the difference between the value at cost transferred and the fair value of the investment property is allocated to a reserve within equity.

2.8. Leases

Leases are recorded pursuant to IFRS 16. The Group recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of a lease in accordance with the standard and the rate used will be the implicit rate in the contract if it can be determined.

A Group company is the lessor:

Properties leased out to tenants under operating leases are included in “Investment Properties” in the Consolidated Statement of Financial Position. See Note 2.21 for the recognition of rental income.

A Group company is the lessee:

The Group acquires certain specific assets (especially machinery, computer equipment and real property exploitation concessions) under leases pursuant to IFRS 16. Assets so acquired are recorded as an asset at the present value of the minimum future lease payments (the rate used by the Group is between 10.61% and 52.94%). Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Leases falling within the IFRS 16 exemption, where the Group acts as lessee are charged to results at the time they accrue. They mainly include contracts for less than one year and/or for non-material items.

2.9. Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

Goodwill is not amortized but tested for impairment at each fiscal year-end, or more frequently if there is an indication of impairment.

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units (“CGU”). In order to determine whether any impairment loss should be recognized, the book value of CGU or CGU groups is compared against its recoverable value. Net book value of CGU and CGU groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are not reversed in a subsequent period.

The recoverable amount of a CGU is the higher of the fair value less costs-to-sell and the value-in-use. The fair value is the amount at which a CGU may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from CGU or CGU groups.

Goodwill is assigned to the Group's cash generating units on the basis of operating segments. The recoverable amount of a cash generating unit is determined based on fair value calculations. These calculations use the price of the CGU assets and they are compared with the book values plus the goodwill assigned to each cash generating unit.

No material impairment was recorded as a result of the analysis performed. (Note 12).

(b) Computer software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed 3 years.

(c) Branding and client relationships

This relates to the fair value of brands and client relationships arising at the time of the business combination with IDBD. They are subsequently valued at cost, less the accumulated amortization or impairment. Client relationships have an average twelve-year useful life, while one of the brands have an indefinite useful life and the other ten-year useful life.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where it normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and are not adjusted later, unless there is any sign of impairment.

At each year-end, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any of such signs exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. For intangible assets with indefinite useful lives, the Group annually reviews the existence of an impairment, or more frequently if signs of impairment are identified.

2.10. Trading properties

Trading properties comprises those properties either intended for sale or in the process of construction for subsequent sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

2.11. Inventories

Inventories include assets held for sale in the ordinary course of the Group's business activities, assets in production or construction process for sale purposes, and materials, agricultural products, supplies or other assets held for consumption in the process of producing sales and/or services.

Inventories are measured at the lower of cost or net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business less selling expenses. It is determined on an ongoing basis, taking into account the product type and aging, based on the accumulated prior experience with the useful life of the product. The Group periodically reviews the inventory and its aging and books an allowance for impairment, as necessary.

The cost of consumable supplies, materials and other assets is determined using the weighted average cost method, the cost of inventories of mobile phones, related accessories and spare parts is priced under the moving average method, and the cost of the remaining inventories is priced under the first in, first out (FIFO) method.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories and materials are initially recognized at cash price, and the difference being charged as finance cost.

2.12. Financial instruments

The Group classifies financial assets in the following categories: those to be measured subsequently at fair value, and those to be measured at amortized cost. This classification depends on whether the financial asset is an equity investment or a debt investment.

Debt investments

A debt investment is classified at amortized cost only if both of the following criteria are met: (i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt investment are considered in determining whether the cash derives solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria mentioned in the previous paragraph is not met, the debt instrument is classified at fair value through profit or loss. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

Equity investments

All equity investments, which are neither subsidiaries nor associate companies nor joint venture of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity investments through changes in profit or loss.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value though profit or loss are expensed in the Consolidated Statements of Income and Other Comprehensive Income.

In general, the Group uses the transaction price to ascertain the fair value of a financial instrument on initial recognition. In the other cases, the Group records a gain or loss on initial recognition only if the fair value of the financial instrument can be supported by other comparable transactions observable in the market for the same type of instrument or if based on a technical valuation that only inputs observable market data. Unrecognized gains or losses on initial recognition of a financial asset are recognized later on, only to the extent they arise from a change in factors (including time) that market participants would consider upon setting the price.

Gains/losses on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized, and during the amortization process under the effective interest method. The Group is required to reclassify all affected debt investments when and only when its business model for managing those assets changes.

The Group assesses at the end of each reporting period the expected losses for impairment of a financial asset or group of financial assets measured at amortized cost. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

2.13. Derivative financial instruments and hedging activities and options

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide coverage. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used put and call options, foreign currency future and forward contracts and interest rate swaps, as appropriate.

The Group’s policy is to apply hedge accounting where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting year.

2.14. Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

An allowance for doubtful accounts is recorded based on the expected loss of the receivables portfolio. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

For significant non-homogeneous receivables, the Group generally measures impairment based on an individual analysis. When they are evaluated individually, the Group recognizes the provision for impairment as the difference between the book value of the receivable and the present value of future cash flows, taking into account the existing guarantees, if applicable. This allowance for doubtful accounts considers the financial situation of the debtor, their resources, the payment history and, if applicable, the value of the guarantees provided.

For non-significant homogeneous receivables, the Group assesses the impairment by grouping these receivables based on characteristics of similar risks, considering the type of asset, the delinquency condition and other relevant factors. The Group considers different factors to calculate the amount of the allowance for impairment, which, in its opinion, represents the expected losses over the life of the receivables. When determining the allowance for doubtful accounts, the Group considers, among other factors: (i) the delinquency of the receivables, (ii) the history of losses and the general behavior of the clients, (iii) the trends in volumes and terms of the receivables, (iv) the Group's experience in credit management, (v) national and local economic trends, (vi) credit concentrations by individual size and type of credit, and (vii) the effect of other external factors.

The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of a separate account, and the amount of the loss is recognized in the Consolidated Statements of Income and Other Comprehensive Income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the Consolidated Statements of Income and Other Comprehensive Income.

2.15. Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

2.16. Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

2.17. Provisions

Provisions are recognized when: (i) the Group has a present (legal or constructive) obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The Group bases its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel´s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized in the Consolidated Statements of Income and Other Comprehensive Income.

2.18. Employee benefits

(a) Defined contribution plans

The Group operates a defined contribution plan, which is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current year or prior periods. The contributions are recognized as employee benefit expense in the Consolidated Statements of Income and Other Comprehensive Income in the fiscal year they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or as a result of an offer made to encourage voluntary termination as a result of redundancy.

(c) Bonus plans

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Defined benefit plans

The Group’s net obligation concerning defined benefit plans are calculated on an individual basis for each plan, estimating the future benefits employees have gained in exchange for their services in the current and prior periods. The benefit is disclosed at its present value, net of the fair value of the plan assets. Calculations are made on an annual basis by a qualified actuary.

(e) Share-based payments

The fair value of share-based payments is measured at the date of grant. The Group measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioral considerations.

The fair value of the share-based payment is expensed and charged to income under the straight-line method over the vesting period in which the right to the equity instrument becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of equity instruments expected to vest. Such estimate is revised if subsequent information available indicates that the number of equity instruments expected to vest differs from original estimates.

2.19. Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred income. Income tax is recognized in the Consolidated Statements of Income and Other Comprehensive Income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax expense is calculated on the basis of the tax laws enacted or substantially enacted at the date of the Statements of Financial Position in the countries where the Company and its subsidiaries operate and generate taxable income. The Group periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the deferred tax liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the Statements of Financial Position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence, deferred tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Statements of Financial Position, dividends have been accrued as receivable a binding agreement to distribute past earnings in future has been entered into by the subsidiary or there are sale plans in the foreseeable future.

Entities in Argentina were subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. Any excess of the MPIT over the income tax is carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, recognizes the MPIT as a current or non-current receivable, within “Trade and other receivables” in the Consolidated Statements of Financial Position.

The minimum presumed income tax was repealed by Law N ° 27,260 in its article 76 for the periods that begin as of January 1,2019.

2.20. Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less and that they are subject to a negligible risk of change in value. Bank overdrafts are not included.

2.21. Revenue recognition

The group identifies contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.

Revenue from satisfaction of performance obligations at a given time is recognized when the client obtains control of the committed asset or service considering whether there is a right to collection, if the client has the physical possession, if the client has the legal right and if they have the transferred the risks and benefits.

In accordance with IFRS 15, the Group recognizes revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Group has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed, depending on the case, when the risk transfers are completed, the collection is reasonably assured and there is a price already determined.

Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Group uses the input method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.

The Group's revenue is recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.

· Rental and services - Shopping malls portfolio

Revenues derived from business activities developed in the Group’s shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to the Group’s lessees.

The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect the Group.

The Group has determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. The Group concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. The Group considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. The Group reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of the Group’s investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where the Group’s investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of the Group’s tenants only have stores in shopping malls with a few or none street stores. See details in Note 22.

Lessees of rental space located within shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 12% of the lessees’ gross sales. In addition, in accordance with the standard terms of the typical commercial lease, the Base Rent is usually increased at that time by the Consumer Price Index (CPI) in Argentina.

In addition, some leases include provisions that set forth variable rent based on specific volumes of sales revenue and other types of ratios.

Rental income from shopping mall, admission rights and commissions, are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, i.e. lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent increases are recognized when such increases have been agreed with tenants.

Tenants in the Group’s shopping mall are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the Consolidated Statements of Income and other Comprehensive Income on a straight-line basis over the term of the respective lease agreement.

The Group acts as its own leasing agent for arranging and closing lease agreements for its shopping malls properties and consequently earns letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by the Group are treated as additional rental income and are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the lease agreements.

The Group’s lease contracts also provide that common area maintenance charges and collective promotion funds of the Group’s shopping malls are borne by the corresponding lessees, generally on a proportionally basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Under the terms of the leases, lessees also agree to participate in collective promotion funds (“CPF”) to be used in advertising and promoting the Group’s shopping malls. Each lessee’s participation generally equals a percentage calculated based on the monthly accrued rental prices. Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.

On the other hand, revenue includes income from managed operations and other services such as car parking spaces. Those revenues are recognized on an accrual basis as services are provided.

· Rental and services - Offices and other rental properties

Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.

Rental income from offices and other rental properties is recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

A substantial portion of the Group’s leases require the tenant to reimburse the Group for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. The Group manages its own rental properties. The Group makes the original payment for these expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. The Group accrues reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

· Revenue from communication services and sale of communication equipment

Revenue derived from the use of communication networks by the Group, including mobile phones, Internet services, international calls, fixed line calls, interconnection rates, roaming service rates and television, are recognized when the service is provided, proportionally to the extent the transaction has been realized, and provided all other criteria have been met for revenue recognition.

Revenue from the sale of mobile phone cards is initially recognized as deferred revenue and then recognized as revenue as they are used or upon expiration, whichever takes place earlier.

A transaction involving the sale of equipment to a final user normally also involves a service sale transaction. In general, this type of sale is performed without a contractual obligation by the client to consume telephone services for a minimum amount over a predetermined period. As a result, the Group records the sale of equipment separately of the performance obligations and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services is recognized and accounted for as they are provided over time. When the client is bound to make a minimum consumption of services during a predefined period, the contract formalizes a transaction of several elements and, therefore, revenue from the sale of equipment is recorded at an amount that should not exceed its fair value, and is recognized upon delivery of the equipment to the client and provided the criteria for recognition are met. The Group ascertains the fair value of individual elements, based on the price at which it is normally sold, after taking into account the relevant discounts.

Revenue derived from long-term contracts is recognized at the present value of future cash flows, discounted at market rates prevailing on the transaction date. Any difference between the original credit and its net present value is accounted for as interest income over the credit term.

These revenues have been recognized in discontinued operations. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.

· Sales and Development activities

Revenue from sale and developments of real estate properties primarily comprises the results from the sale of trading properties. Results from the sale of properties are recognized only when the control has been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion, the Group also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. The Group generally requires the developer to issue insurances or to mortgage the land in favor of the Group as performance guarantee. In the event the developer does not fulfil its obligations, the Group forecloses on the land through the execution of the mortgage or the surety insurances, together with a cash penalty.

The Group determines that its barters have commercial substance and that the conditions for recording the income from the transfer of parcels or land are met at the time the swap operation is carried out. Revenues are recorded at the fair value of the goods delivered, adjusted as appropriate by the amount of cash received. In exchange for the parcels or land transferred, the Group generally receives cash and / or a right to receive future units that are part of the projects to be built on the parcels or land exchanged. This right is initially recognized at cost (this being the fair value of the land transferred) as an intangible asset in the statements of financial position. Said intangible asset is not adjusted in subsequent years unless it is impaired.

The Group may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the control is transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.

However, the Group may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to the Group with the remaining amount being paid when the developer completes the property and transfers it to the Group, and the Group in turn transfers it to the buyer. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, the Group is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. The Group may then seek legal remedy against the developer for non-performance of its obligations under the agreement. The Group exercised judgment and considers that the most significant risk associated with the asset the Group holds (i.e. the right to receive the apartments) consisting of the non-fulfillment of the developer's obligations (i.e. to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.

· Revenue from hotels

Revenue income from hotel operations mainly includes room services, gastronomy and other services. Revenue from the sale of products is recognized when the product is delivered and the significant risks and rewards of ownership are transferred to the buyer. Revenue from the sale of services is recognized when the service is provided. When the sale of products or services is covered by a customer loyalty program, revenues billed to the customer are allocated between the product or service sold and the award credits granted by the third party that awards the program points. The consideration assigned to the credits, which is measured in reference to the fair value of the points awarded, is deferred and recognized as income when the customer redeems the credits, that is, when a prize is received in exchange for converting the program points.

2.22. Cost of sales

The cost of sales, includes the acquisition costs and the operational and management costs for shopping malls and offices held by the Group as part of its real estate investments.

The Group’s cost of sales in relation to the supply of communication services mainly includes the costs to purchase equipment, salaries and related expenses, service costs, royalties, ongoing license dues, interconnection and roaming expenses, cell tower lease costs, depreciation and amortization expenses and maintenance expenses directly related to the services provided and they are classified in discontinued operations.

The cost of sales of supermarkets, includes the acquisition costs for the products less discounts granted by suppliers, as well as all expenses associated with storing and handling inventories and is classified as discontinued operations.

2.23. Cost of borrowings and capitalization

The costs for general and specific loans that are directly attributable to the acquisition, construction or production of suitable assets for which a prolonged period is required to place them in the conditions required for their use or sale, are capitalized as part of the cost of those assets until the assets are substantially ready for use or sale. The general loan costs are capitalized according to the average debt rate of the Group. Foreign exchange differences for loans in foreign currency are capitalized if they are considered an adjustment to interest costs. The interest earned on the temporary investments of a specific loan for the acquisition of qualifying assets are deducted from the eligible costs to be capitalized. The rest of the costs from loans are recognized as expenses in the period in which they are incurred.

2.24. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new common shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any Group’s subsidiary purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such common shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

2.25. Comparability of information

The balances as of June 30, 2021 and 2020 that are disclosed for comparative purposes were restated in accordance with IAS 29. See Note 2.1. Certain items from prior fiscal years have been reclassified for consistency purposes. Additionally, the Group has redefined the operating segments, see Note 6 to these Consolidated Financial Statements.

XML

Significant judgments, key assumptions and estimates

12 Months Ended

Jun. 30, 2022

3. Significant judgments, key assumptions and estimates

3. Significant judgments, key assumptions and estimates

Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Control, joint control or significant influence	Judgment relative to the determination that the Group holds an interest in the shares of investees (considering the existence and influence of significant potential voting rights), its right to designate members in the executive management of such companies (usually the Board of directors) based on the investees’ bylaws; the composition and the rights of other shareholders of such investees and their capacity to establish operating and financial policies for investees or to take part in the establishment thereof.	Accounting treatment of investments as subsidiaries (consolidation) or associates (equity method)	Note 2.3
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	Should any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 8 – Investments in associates and joint ventures Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 10.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 21 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Improper recognition of charges / reimbursements of the allowance for bad debt.	Note 15 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: ·     Discounted projected income by interest rate ·     Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. ·     Comparable market multiple (EV/GMV ratio). ·     Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 14 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions
Qualitative considerations for determining whether or not the replacement of the debt instrument involves significantly different terms	The entire set of characteristics of the exchanged debt instruments, and the economic parameters represented therein: Average lifetime of the exchanged liabilities; Extent of effects of the debt terms (linkage to index; foreign currency; variable interest) on the cash flows from the instruments.	Classification of a debt instrument in a manner whereby it will not reflect the change in the debt terms, which will affect the method of accounting recording.	Note 14 – Financial instruments by category

XML

Acquisitions and disposals

12 Months Ended

Jun. 30, 2022

4. Acquisitions and disposals

4. Acquisitions and disposals

A) Sale of Catalinas Tower building

On November 2, 2021, three medium-height floors of the tower "261 Della Paolera" located in the Catalinas District of the Autonomous City of Buenos Aires were sold for a total area of approximately 3,582 square meters and 36 parking spaces located in the building. The transaction price was approximately USD 32 million.

On December 15, 2021, a medium-height floor and 12 parking spaces were sold. The total of the operation was USD 9.2 million.

On March 9, 2022, three medium-height floors of the tower were sold for a total leasable area of approximately 3,550 square meters, 30 parking spaces located in the building and other complementary units. The transaction price was approximately USD 31.6 million.

On March 29, 2022, two floors of the tower were sold for a total leasable area of approximately 2,370 square meters and 24 parking spaces located in the building. The transaction price was approximately USD 20.4 million.

B) Investment in Condor Hospitality Trust

 On September 22, 2021, Condor Hospitality Trust S.A. (“Condor”) has signed a sale agreement for its portfolio of 15 hotels in the United States with B9 Cowboy Mezz A LLC, an affiliate of Blackstone Real Estate Partners. Said sale was approved by the Condor Shareholders' Meeting held on November 12, 2021 and was completed on the 19th of the same month for an amount of USD 305 million. Within this framework, Condor announced a Liquidation and Dissolution Plan, with the intention of distributing certain net income from the sale of the hotel portfolio to the shareholders in one or more installments, which was approved by the Condor Shareholders' Meeting held on December 1, 2021.

 On December 10, 2021, in accordance with the aforementioned Plan, Condor's Board of Directors approved the distribution of a special dividend of USD 7.94 per share, which payment was made on December 30, 2021, corresponding to IRSA an approximate amount of USD 25.3 million for its direct and indirect holding of 3,191,213 common shares that, as of the date of issuance of the financial statements, have already been fully collected. As of December 31, 2021, Condor shares were delisted from the NYSE. On August 26, 2022, the company issued a statement informing that it had concluded the liquidation process, paying a final liquidation dividend of approximately USD 0.127 per common share, corresponding to IRSA approximately USD 0.41 million.

C) Merger by absorption of IRSA and IRSA Propiedades Comerciales

On September 30, 2021, IRSA & IRSA Propiedades Comerciales (former subsidiary) Boards of Directors approved the prior merger agreement between both companies and the corresponding special financial statements as of June 30, 2021, initiating the corporate reorganization process under the terms of art. 82 et seq. of the General Law of Companies. The merger process has particular characteristics given that they are two companies included in the public offering regime, reason why, not only apply the current provisions of the General Law of Companies but also the procedures established regarding reorganization of companies of the Regulations of the “Comisión Nacional de Valores” (National Securities Commission) and the markets, both national and foreign, where their shares are listed.

The Merger was carried out in order to streamline the technical, administrative, operational and economic resources of both Companies, standing out among others: (a) the operation and maintenance of a single transactional information system and centralization of the entire accounting registration process; (b) presentation of a single financial statement to the different control agencies with the consequent cost savings in accounting and advisory fees, tariffs and other related expenses; (c) simplification of the accounting information reporting and consolidation process, as a consequence of the reduction that the merger would imply for the corporate structure as a whole; (d) removal of the IRSA CP public offering listing on BYMA and NASDAQ with the associated costs that this represents; (e) cost reduction for legal fees and tax filings; (f) increase in the percentage of the capital stock that is listed in the different markets, increasing the liquidity of the listed shares; (g) tax efficiencies and (h) preventively avoid the potential overlap of activities between the Companies.

In accordance with the commitments assumed in the Prior Merger Commitment, having obtained the administrative consent of the United States Securities and Exchange Commission, an entity to which they are subject because both companies list their shares in markets that operate in said jurisdiction, The shareholders' meetings of both companies were called.

On December 22, 2021, the Shareholders' Meetings of IRSA and IRSA CP were held, approving the merger by absorption, whose effective date was established on July 1, 2021. As of that date, the transfer to the absorbent of the totality of the equity of the absorbed company, thereby incorporating all its rights and obligations, assets and liabilities into the equity of the absorbing company.

Likewise, and within the framework of the reorganization process, the Board of Directors has approved the exchange ratio, which has been established at 1.40 IRSA shares for each IRSA CP share, which is equivalent to 0.56 IRSA GDS for each ADS of IRSA CP. Within this framework, it was decided to increase the share capital by issuing 152,158,215 new shares in IRSA.

As of June 30, 2022, the merger is registered and approved in the corresponding control agencies, the exchange of IRSA CP shares for IRSA shares was carried out, and the listing of IRSA CP shares was cancelled.

D) Acquisition of Beruti real estate

On February 18, 2022, the Company purchased by public auction from the Government of the Autonomous City of Buenos Aires (hereinafter "GCABA") a property located in Beruti, corner of Av. Coronel Díaz, in front of the Alto Palermo shopping center, owned by the Company, in one of the main commercial corridors of the city, in the neighborhood of Palermo.

The property, built on land with an area of approximately 2,386.63 square meters, consists of a ground floor, six upper levels, a basement and a total covered area of approximately 8,136.85 square meters and has potential for future expansion. The purchase price was ARS 2,159, which was paid in full.

As of June 30, 2022, the transfer deed of ownership was signed. Simultaneously with the deed, the Company is required to sign a bailment agreement with the GCABA, with the latter holding the property free of charge for a period of up to 30 months, in accordance with the conditions agreed upon in the auction.

E) Republica Building Sale

On April 19, 2022, the Company sold in block 100% of the “República” building, located next to “Catalinas Norte” area in the City of Buenos Aires. The tower has 19,885 square meters of gross leasable area on 20 office floors and 178 parking spaces.

The transaction price was set at USD 131.8 million (USD/square meters 6,629), approximately 80% has already been paid in cash (USD 105,1 million or ARS 11,944.8 million), and the remaining amount has been paid with the delivery of a 46-hectare plot of land located on the Bs. As – La Plata Highway, in the district of Quilmes, Buenos Aires Province. This property has approved regulations and urban indicators to develop a mixed-use project with a construction capacity of approximately 521,400 square meters.

XML

Financial risk management and fair value estimates

12 Months Ended

Jun. 30, 2022

5. Financial risk management and fair value estimates

5. Financial risk management and fair value estimates

The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, indexing risk due to specific clauses and other price risks), credit risk, liquidity risk and capital risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

The general risk management policies of the Group seek both to minimize adverse potential effects on the financial performance of the Group and to manage and control the financial risks effectively. The Group uses financial instruments to hedge certain risk exposures when deemed appropriate based on its internal management risk policies, as explained below.

The Group’s principal financial instruments comprise cash and cash equivalents, receivables, payables, interest bearing assets and liabilities, other financial liabilities, other investments and derivative financial instruments. The Group manages its exposure to key financial risks in accordance with the Group’s risk management policies.

The Group’s management framework includes policies, procedures, limits and allowed types of derivative financial instruments. The Group has established a Risk Committee, composed of the CEO, the CFO, the compliance manager and certain directors, which reviews and oversees management’s compliance with these policies, procedures and limits and has overall accountability for the identification and management of risk across the Group.

This section provides a description of the principal risks that could have a material adverse effect on the Group’s strategy, performance, results of operations and financial condition. The risks facing the businesses, set out below, do not appear in any particular order of potential materiality or probability of occurrence.

The analysis of sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice this is unlikely to occur, and changes in some of the factors may be correlated – for example, changes in interest rate and changes in foreign currency rates.

This sensitivity analysis provides only a limited, point-in-time view. The actual impact on the Group’s financial instruments may differ significantly from the impact shown in the sensitivity analysis.

(a) Market risk management

The market risk is the risk of changes in the market price of financial instruments with which the Group operates. The Group’s market risks arise from open positions in foreign currencies, interest-bearing assets and liabilities and equity securities of certain companies, to the extent that these are exposed to market value movements. The Group sets limits on the exposure to these risks that may be accepted, which are monitored on a regular basis.

Foreign Exchange risk and associated derivative financial instruments

The Group publishes its Consolidated Financial Statements in Argentine pesos but conducts operations and holds positions in other currencies. As a result, the Group is exposed to foreign currency exchange risk through exchange rate movements, which affect the value of the Group’s foreign currency positions. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

The real estate, commercial and/or financial activities of the Group’s subsidiaries have the Argentine Peso as functional currency. An important part of the business activities of these subsidiaries is conducted in that currency, thus not exposing the Group to foreign exchange risk. Other Group's subsidiaries have other functional currencies, principally US Dollar. In the ordinary course of business, the Group, through its subsidiaries, transacts in currencies other than the respective functional currencies of the subsidiaries. These transactions are primarily denominated in US Dollars. Net financial position exposure to the functional currencies is managed on a case-by-case basis, partly by entering into foreign currency derivative instruments and/or by borrowings in foreign currencies, or other methods, considered adequate by the Management, according to circumstances.

Financial instruments are considered sensitive to foreign exchange rates only when they are not in the functional currency of the entity that holds them. The following table shows the net carrying amounts of the Company’s financial instruments nominated in US$, broken down by the functional currencies in which the Company operates for the years ended June 30, 2022 and 2021. The amounts are presented in Argentine Pesos, the presentation currency of the Group:

	Net monetary position liability
Functional currency	06.30.2022			06.30.2021
Argentine Peso		(44,735	)		(71,843	)
Total		(44,735	)		(71,843	)

The Group estimates that, other factors being constant, a 10% appreciation of the foreign currency against Argentine Peso at year-end would have an impact in the Statement of Income and Other Comprehensive Income before income tax for the years ended June 30, 2022 and 2021 for an amount of ARS 4,474 (loss) and ARS 7,184 (loss), respectively.

On the other hand, the Group also uses derivatives, such as future exchange contracts, to manage its exposure to foreign currency risk. There were no such contracts as of June 30, 2022 and 2021.

Interest rate risk

The Group is exposed to interest rate risk on its investments in debt instruments, short-term and long-term borrowings and derivative financial instruments.

The primary objective of the Group’s investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, the Group diversifies its portfolio in accordance with the limits set by the Group. The Group maintains a portfolio of cash equivalents and short-term investments in a variety of securities, including both government and corporate obligations and money market funds.

The Group’s interest rate risk principally arises from long-term borrowings (Note 20). Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.

As of June 30, 2022 and 2021, 99.1% and 96.3% of the Group’s long-term financial loans have a fixed interest rate so that IRSA is not significantly exposed to the fluctuation risk of the interest rate.

The Group manages this risk by maintaining an appropriate mix between fixed and floating rate interest bearing liabilities. These activities are evaluated regularly to determine that the Group is not exposed to interest rate fluctuations that could adversely impact its ability to meet its financial obligations and to comply with its borrowing covenants.

The Group occasionally manages its cash flow interest rate risk exposure by different hedging instruments, including but not limited to interest rate swap, depending on each particular case. For example, interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates or vice versa.

The interest rate risk policy is approved by the Board of Directors. Management analyses the Group’s interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions. Trade payables are normally interest-free and have settlement dates within one year. The simulation is done on a regular basis to verify that the maximum potential loss is within the limits set by management.

Note 20 shows a breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2022 and 2021.

The Group estimates that, other factors being constant, a 1% increase in floating rates at year-end would increase net loss before income tax for the years ended June 30, 2022 and 2021 in the amount of ARS 4.2 and ARS 4.4, respectively. A 1% decrease in floating rates would have an equal and opposite effect on the Consolidated Statements of Income and Other Comprehensive Income.

Other price risks

The Group is exposed to equity securities price risk or derivative financial instruments because of investments held in entities that are publicly traded, which were classified on the Consolidated Statements of Financial Position at “fair value through profit or loss”. The Group regularly reviews the prices evolution of these equity securities in order to identify significant movements.

As of June 30, 2022 and 2021 the total value of Group’s investments in shares of public companies amounts to ARS 1,346 and ARS 1,600, respectively.

The Group estimates that, other factors being constant, a 10% decrease in quoted prices of equity securities and in derivative financial instruments portfolio at year-end would generate a loss before income tax for the year ended June 30, 2022, of ARS 135 (ARS 160 in 2021). An increase of 10% on these prices would have an equal and opposite effect in the Statement of Income.

(b) Credit risk management

The credit risk arises from the potential non-performance of contractual obligations by the parties, with a resulting financial loss for the Group. Credit limits have been established to ensure that the Group deals only with approved counterparties and that counterparty concentration risk is addressed and the risk of loss is mitigated. Counterparty exposure is measured as the aggregate of all obligations of any single legal entity or economic entity to the Group.

The Group is subject to credit risk arising from deposits with banks and financial institutions, investments of surplus cash balances, the use of derivative financial instruments and from outstanding receivables

The credit risk is managed on a country-by-country basis. Each local entity is responsible for managing and analyzing the credit risk.

The Group’s policy is to manage credit exposure from deposits, short-term investments and other financial instruments by maintaining diversified funding sources in various financial institutions. All the institutions that operate with the Group are well known because of their experience in the market and high credit quality. The Group places its cash and cash equivalents, investments, and other financial instruments with various high credit quality financial institutions, thus mitigating the amount of credit exposure to any one institution. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents and short-term investments in the Consolidated Statements of Financial Position.

Trade receivables related to leases and services provided by the Group represent a diversified tenant base and account for 96.6% and 95.6% of the Group’s total trade receivables of the operations center as of June 30, 2022 and 2021, respectively. The Group has specific policies to ensure that rental contracts are transacted with counterparties with appropriate credit quality. The majority of the Group’s shopping mall, offices and other rental properties’ tenants are well recognized retailers, diversified companies, professional organizations, and others. Owing to the long-term nature and diversity of its tenancy arrangements, the credit risk of this type of trade receivables is considered to be low. Generally, the Group has not experienced any significant losses resulting from the non-performance of any counterpart to the lease contracts and, as a result, the allowance for doubtful accounts balance is low. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Group. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its past experience, financial position, actual experience and other factors. Based on the Group’s analysis, the Group determines the size of the deposit that is required from the tenant at inception. Management does not expect any material losses from non-performance by these counterparties. See details on Note 15.

On the other hand, property receivables related to the sale of trading properties represent 2.3% and 4.1% of the Group’s total trade receivables as of June 30, 2022 and 2021, respectively. Payments on these receivables have generally been received when due. These receivables are generally secured by mortgages on the properties. Therefore, the credit risk on outstanding amounts is considered very low.

(c) Liquidity risk management

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature, the risk that borrowing facilities are not available to meet cash requirements, and the risk that financial assets cannot readily be converted to cash without loss of value. Failure to manage liquidity risks could have a material impact on the Group’s cash flow and Consolidated Statements of Financial Position.

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding its existing and prospective debt requirements by maintaining diversified funding sources.

The Group monitors current and projected financial position using several key internally generated reports: cash flow; debt maturity; and interest rate exposure. The Group also undertakes sensitivity analysis to assess the impact of proposed transactions, movements in interest rates and changes in property values on the key profitability, liquidity and balance sheet ratios.

The debt and the derivative positions are continually reviewed to meet current and expected debt requirements. Each operation center maintains a balance between longer-term and shorter-term financings. Short-term financing is principally raised through bank facilities and overdraft positions. Medium- to longer-term financing comprises public and private bond issues, including private placements. Financing risk is spread by using a variety of types of debt. The maturity profile is managed in accordance with each operation center needs, by spreading the repayment dates and extending facilities, as appropriate.

The tables below show financial liabilities, including each operation center derivative financial liabilities groupings based on the remaining period at the Statements of Financial Position to the contractual maturity date. The amounts disclosed in the tables are the contractual undiscounted cash flows and does not include advances and other concepts already disbursed since they are not future cash flows, as a result, they do not reconcile to the amounts disclosed on the Statements of Financial Position. However, undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the Consolidated Statements of Financial Position, as the impact of discounting is not significant. The tables include both interest and principal flows.

Where the interest payable is not fixed, the amount disclosed has been determined by reference to the existing conditions at the reporting date.

June 30, 2022	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,625		103		40		26		40		4,834
Borrowings		61,682		10,470		2,150		115		317		74,734
Finance leases obligations		87		88		93		99		2,095		2,462
Derivative Financial Instruments		16		-		-		-		-		16
Total		66,410		10,661		2,283		240		2,452		82,046

June 30, 2021	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,900		171		2		-		-		5,073
Borrowings		25,268		66,631		9,338		346		304		101,887
Finance leases obligations		153		143		146		148		2,898		3,488
Derivative Financial Instruments		79		15		-		-		-		94
Total		30,400		66,960		9,486		494		3,202		110,542

See Note 20 for a description of the commitments and restrictions related to loans and the ongoing renegotiations.

(d) Capital risk management

The capital structure of the Group consists of shareholders’ equity and net borrowings. The Group’s equity is analyzed into its various components in the Consolidated Statements of Changes in Shareholders’ Equity. Capital is managed so as to promote the long-term success of the business and to maintain sustainable returns for shareholders. The Group seeks to manage its capital requirements to maximize value through the mix of debt and equity funding, while ensuring that Group entities continue to operate as going concerns, comply with applicable capital requirements and maintain strong credit ratings.

The Group assesses the adequacy of its capital requirements, cost of capital and gearing (i.e., debt/equity mix) as part of its broader strategic plan. The Group continuously reviews its capital structure to ensure that (i) sufficient funds and financing facilities are available to implement the Group’s property development and business acquisition strategies, (ii) adequate financing facilities for unforeseen contingencies are maintained, and (iii) distributions to shareholders are maintained within the Group’s dividend distribution policy. The Group also protects its equity in assets by obtaining appropriate insurance.

The Group’s strategy is to maintain key financing metrics (net debt to total equity ratio or gearing and debt ratio) in order to ensure that asset level performance is translated into enhanced returns for shareholders whilst maintaining an appropriate risk reward balance to accommodate changing financial and operating market cycles.

The following tables details the Group’s key metrics in relation to managing its capital structure. The ratios are within the ranges previously established by the Group’s strategy.

	June 30, 2022			June 30, 2021
Gearing ratio (i)		31.99	%		50.12	%
Debt ratio (ii)		24.31	%		32.37	%

(i)	Calculated as total of borrowings over total borrowings plus equity attributable equity holders of the parent company.
(ii)	Calculated as total borrowings over total properties (including trading properties, property, plant and equipment, investment properties and rights to receive units under barter agreements).

XML

Segment information

12 Months Ended

Jun. 30, 2022

6. Segment information

6. Segment information

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by the President of the Group, Mr. Eduardo S. Elsztain.

Segment information is reported from the perspective of products and services, considering separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks.

After the merger of the Company with IRSA CP, the structure is made up of the following five segments:

-Shopping Malls

-Offices

-Hotels

-Sales and development

-Others

The “Offices and Other Rental Properties” segment is renamed “Offices” and will exclusively include the results from the company’s six buildings. The other rental properties that were part of this segment were allocated to the “Sales and Developments” segment, which will include the results generated by these assets, as well as those from Land Reserves, Barter Agreements and Properties for Sale. Likewise, the “Others” segment is incorporated, which will group the results from investments in associates and foreign companies that were previously allocated in the “Corporate” and “International” segments. The “Shopping Malls” and “Hotels” segments did not undergo any changes.

Below is the segment information which was prepared as follows:

· The Group operates in the following segments:

o The “Shopping Malls” segment includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Group.

o  The “Offices” segment includes the operating results from lease revenues of offices and other service revenues related to the office activities.

o  The “Sales and Developments” segment includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results and other rental spaces are also included.

o  The "Hotels" segment includes the operating results mainly comprised of room, catering and restaurant revenues.

o  The “Others” segment includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. and Centro de Convenciones Buenos Aires (concession), We Are Appa investments in associates such as TGLT and the financial activities carried out through BHSA / BACS, as well as other investments in associates.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of joint ventures and associates. The valuation criteria used in preparing this information are consistent with IFRS standards used for the preparation of the Consolidated Financial Statements, except for the following:

· Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method the profit/loss generated and assets are reported in the Statement of Income line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.

· Operating results from Shopping Malls and Offices segments do not include the amounts pertaining to building administration expenses and collective promotion funds (“FPC”, as per its Spanish acronym) as well as total recovered costs, whether by way of expenses or other concepts included under financial results (for example default interest and other concepts). The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and FPC and recoverable expenses).

The assets’ categories examined by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, right to receive future units under barter agreements, investment in associates and goodwill. The sum of these assets, classified by business segment, is reported under “assets by segment”. Assets are allocated to each segment based on the operations and/or their physical location.

Most revenue from its operating segments is derived from, and their assets are located in, Argentina, except for some share of profit / (loss) of associates included in the “Others” segment located in USA.

Revenues for each reporting segments derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.

Until September 2020 the Group used to report its financial performance separately in two Operations Centers. However, as described in Note 1 to the Consolidated Financial Statements as of June 30, 2020, during September 2020 the Group lost control of IDBD and, then, has reclassified the results of Operations Center in Israel to discontinued operations. As a consequence of the situation described, from October 1, 2020, the Group reports its financial performance through a single Operation Center. Segment information for the previous fiscal years has been recast for the purposes of comparability with the present fiscal year.

Below is a summary of the Group’s lines of business and a reconciliation between the results from operations as per segment information and the results from operations as per the Consolidated Statements of Income and Other Comprehensive Income for the years ended June 30, 2022, 2021 and 2020:

	June 30, 2022
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		25,593			(233	)		6,725			-			32,085
Costs		(5,333	)		91			(6,874	)		-			(12,116	)
Gross profit / (loss)		20,260			(142	)		(149	)		-			19,969
Net gain from fair value adjustment of investment properties		12,328			1,322			-			-			13,650
General and administrative expenses		(5,327	)		27			-			23			(5,277	)
Selling expenses		(2,242	)		5			-			-			(2,237	)
Other operating results, net		28			-			56			(23	)		61
Profit / (loss) from operations		25,047			1,212			(93	)		-			26,166
Share of profit / (loss) of associates and joint ventures		466			(821	)		-			-			(355	)
Segment profit / (loss)		25,513			391			(93	)		-			25,811
Reportable assets		325,837			(1,939	)		-			48,894			372,792
Reportable liabilities		-			-			-			(203,065	)		(203,065	)
Net reportable assets		325,837			(1,939	)		-			(154,171	)		169,727

	June 30, 2021
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		16,585			(82	)		4,830			(51	)		21,282
Costs		(5,665	)		115			(5,213	)		-			(10,763	)
Gross profit / (loss)		10,920			33			(383	)		(51	)		10,519
Net (loss) / gain from fair value adjustment of investment properties		(12,542	)		(200	)		-			-			(12,742	)
General and administrative expenses		(5,049	)		22			-			79			(4,948	)
Selling expenses		(2,477	)		34			-			-			(2,443	)
Other operating results, net		(256	)		(33	)		176			(28	)		(141	)
Loss from operations		(9,404	)		(144	)		(207	)		-			(9,755	)
Share of loss of associates and joint ventures		(6,541	)		(641	)		-			-			(7,182	)
Segment loss		(15,945	)		(785	)		(207	)		-			(16,937	)
Reportable assets		335,973			(2,481	)		-			31,833			365,325
Reportable liabilities		-			-			-			(229,672	)		(229,672	)
Net reportable assets		335,973			(2,481	)		-			(197,839	)		135,653

	June 30, 2020
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		27,434			(150	)		7,638			(54	)		34,868
Costs		(6,725	)		132			(7,956	)		-			(14,549	)
Gross profit / (loss)		20,709			(18	)		(318	)		(54	)		20,319
Net gain from fair value adjustment of investment properties		83,728			(648	)		-			-			83,080
General and administrative expenses		(5,527	)		35			-			79			(5,413	)
Selling expenses		(3,029	)		41			-			-			(2,988	)
Other operating results, net		29			42			149			(25	)		195
Profit / (loss) from operations		95,910			(548	)		(169	)		-			95,193
Share of profit of associates and joint ventures		17,367			420			-			-			17,787
Segment profit / (loss)		113,277			(128	)		(169	)		-			112,980
Reportable assets (3)		1,498,210			(1,704	)		-			48,303			1,544,809
Reportable liabilities (3)		(987,692	)		-			-			(255,011	)		(1,242,703	)
Net reportable assets (3)		510,518			(1,704	)		-			(206,708	)		302,106

(1)	Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(2)	Includes deferred income tax assets, income tax and minimum presumed income tax credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of ARS 8, ARS 12 and ARS 43, as of June 30, 2022, 2021 and 2020, respectively.
(3)	Includes assets and liabilities from IDBD.

Below is a summarized analysis of the lines of Group business for the fiscal years ended June 30, 2022, 2021 and 2020:

	June 30, 2022
	Shopping Malls			Offices			Sales and developments			Hotels			Others			Total
Revenues		17,334			3,041			746			4,300			172			25,593
Costs		(1,495	)		(293	)		(581	)		(2,456	)		(508	)		(5,333	)
Gross profit / (loss)		15,839			2,748			165			1,844			(336	)		20,260
Net gain / (loss) from fair value adjustment of investment properties		553			(5,391	)		17,106			-			60			12,328
General and administrative expenses		(2,862	)		(341	)		(1,058	)		(730	)		(336	)		(5,327	)
Selling expenses		(847	)		(78	)		(922	)		(340	)		(55	)		(2,242	)
Other operating results, net		(142	)		(23	)		(48	)		(59	)		300			28
Profit / (loss) from operations		12,541			(3,085	)		15,243			715			(367	)		25,047
Share of profit of associates and joint ventures		-			-			-			-			466			466
Segment profit / (loss)		12,541			(3,085	)		15,243			715			99			25,513
Investment properties and trading properties		91,770			68,197			142,511			-			430			302,908
Investment in associates and joint ventures		-			-			-			-			11,578			11,578
Other operating assets		299			2,537			2,984			4,183			1,348			11,351
Reportable assets		92,069			70,734			145,495			4,183			13,356			325,837

From all the revenues corresponding to the segments, ARS 25,579 are originated in Argentina, and ARS 14 in the U.S. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the segments, ARS 323,901 are located in Argentina and ARS 1,936 in other countries, principally in USA for ARS 296 and Uruguay for ARS 1,630.

	June 30, 2021
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		8,727			4,401			1,271			1,510			676			16,585
Costs		(1,428	)		(236	)		(1,379	)		(1,746	)		(876	)		(5,665	)
Gross profit / (loss)		7,299			4,165			(108	)		(236	)		(200	)		10,920
Net (loss) / gain from fair value adjustment of investment properties		(33,349	)		9,088			11,658			-			61			(12,542	)
General and administrative expenses		(2,348	)		(685	)		(1,164	)		(699	)		(153	)		(5,049	)
Selling expenses		(740	)		(307	)		(1,145	)		(231	)		(54	)		(2,477	)
Other operating results, net		(207	)		(8	)		(8	)		(20	)		(13	)		(256	)
(Loss) / profit from operations		(29,345	)		12,253			9,233			(1,186	)		(359	)		(9,404	)
Share of loss of associates and joint ventures		-			-			(26	)		-			(6,515	)		(6,541	)
Segment (loss) / profit		(29,345	)		12,253			9,207			(1,186	)		(6,874	)		(15,945	)
Investment properties and trading properties		89,070			119,013			102,415			-			423			310,921
Investment in associates and joint ventures		-			-			-			-			14,609			14,609
Other operating assets		436			1,839			3,271			4,269			628			10,443
Reportable assets		89,506			120,852			105,686			4,269			15,660			335,973

(i) Includes the result for the investment in TGLT y BHSA for ARS (3,496) and ARS (1,240) respectively, in the line “Share of loss of associates and joint ventures”.

From all the revenues included in the segments ARS 16,557 are originated in Argentina and ARS 28 are originated in USA. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 328,863 are located in Argentina and ARS 7,110 in other countries, principally in USA for ARS 5,692 and Uruguay for ARS 1,468.

	June 30, 2020
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		14,569			5,616			2,025			4,978			246			27,434
Costs		(1,401	)		(192	)		(1,825	)		(3,066	)		(241	)		(6,725	)
Gross profit		13,168			5,424			200			1,912			5			20,709
Net (loss) / gain from fair value adjustment of investment properties		(5,185	)		54,755			34,495			-			(337	)		83,728
General and administrative expenses		(2,044	)		(601	)		(1,217	)		(897	)		(768	)		(5,527	)
Selling expenses		(1,751	)		(185	)		(502	)		(566	)		(25	)		(3,029	)
Other operating results, net		42			(20	)		(111	)		(49	)		167			29
Profit / (loss) from operations		4,230			59,373			32,865			400			(958	)		95,910
Share of profit of associates and joint ventures		-			-			-			-			17,367			17,367
Segment profit		4,230			59,373			32,865			400			16,409			113,277
Investment properties and trading properties		120,956			147,863			89,401			-			942			359,162
Investment in associates and joint ventures		-			-			1,310			-			21,529			22,839
Other operating assets		500			160			1,931			4,527			702			7,820
Reportable assets		121,456			148,023			92,642			4,527			23,173			389,821

(ii) Includes the result for the investment in New Lipstick for ARS 18,399 in the line “Share of profit of associates and joint ventures”. Such amount under the previous classification was included in the International segment, however the CODM does not analyze it anymore as an independent segment due to the cessation of the activities of Condor and New Lipstick.

From all the revenues corresponding included in the segments ARS 26,221 are originated in Argentina, ARS 1,179 are originated in Uruguay and ARS 34 are originated in USA. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets included in the segments, ARS 405,499 are located in Argentina and ARS (15,678) in other countries, principally in USA for ARS (17,121) and Uruguay for ARS 1,433.

XML

Information about the main subsidiaries

12 Months Ended

Jun. 30, 2022

7. Information about the main subsidiaries

7. Information about the main subsidiaries

The Group conducts its business through several operating and holding subsidiaries. The Group considers that the subsidiaries below are the ones with significant non-controlling interests to the Group.

Restrictions, commitments and other matters in respect of subsidiaries

According to Law N° 19,550, 5% of the profit in each fiscal year must be separated to constitute a legal reserve until they reach legal capped amounts (20% of the nominal value of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. The Group has not reached the legal limit of this reserve. Dividends are paid across the Group’s subsidiaries based on their individual accounting statements.

Arcos del Gourmet

In December 2013, the Judicial Branch confirmed a precautionary measure that suspended the opening of the Shopping mall because it considered that it did not have certain government permits within the framework of two judicial proceedings. However, by virtue of the result of the ordinary instances of the cases, this precautionary measure was dismissed and the shopping mall has been operating for more than five years.

Notwithstanding the foregoing, one of these judicial proceedings continued its process in an extraordinary instance, as the plaintiff filed an appeal for unconstitutionality before the Superior Court of Justice of the Autonomous City of Buenos Aires. Although that appeal was initially rejected, the plaintiff filed a complaint for denied appeal and finally it was granted. Within that framework, the Superior Court of Justice of the Autonomous City of Buenos Aires decided to refer the proceedings to the Chamber so that it may issue a new sentence contemplating certain parameters set by said Court regarding the transfer of green spaces to the City. On February 14, 2019, the Chamber decided to condemn the Government of the City of Buenos Aires ("GCBA") and Arcos, providing for the partial annulment of resolution 157 / APRA / 14 at the point that it did not consider appropriate for Arcos to transfer 65% of the land for use and public utility with unrestricted access and destined "especially and preferably to the generation of new landscaped green spaces". Consequently, it was resolved that the GCBA must issue an administrative act that provides for this assignment. If it does not do so, Arcos must also comply with said assignment, either on the premises where the commercial center is currently located, be it totally or partially on land adjacent to the area. Failing to do this, Arcos del Gourmet S.A. ("Arcos") must pay, prior to the realization of an expert report to be ordered in the execution stage, the sum of money necessary in order for the Administration to proceed to the search for a property with the objective of fulfilling the aforementioned purpose. If none of the aforementioned forms of compliance are specified, the power to order will be expedited - prior intervention of the relevant experts and / or technical departments of the corresponding GCBA - the demolition of the necessary works in order to comply with the ordered assignment.

Against that judgment, an appeal for local unconstitutionality was filed on March 11, 2019 and a federal extraordinary appeal on March 15, 2019. After the relevant transfers were made, the Chamber decided to reject the appeal for unconstitutionality raised, which is why on May 29, 2019, a complaint was lodged due to an appeal of unconstitutionality denied. Said appeal is pending before the Superior Court of Justice of the City of Buenos Aires (SCJ). On June 10, 2019, said the Court urged Arcos to accompany additional documentation. This documentation consists of provisions dictated by different departments of the Government of the City of Buenos Aires. Such intimation was fulfilled in a timely manner. By virtue of this, a transfer was sent to the Attorney General's Office so that it can issue an opinion on the formal origin of the complaint, after which the aforementioned appeal will be resolved. On October 26, 2019, the Deputy Attorney General's Office ruled: “(…) admit the complaint, allow the unconstitutionality appeal filed and reject the lawsuit. (…)”. On January 22, 2022, Arcos was notified of the SCJ's resolution partially revoking the Chamber's ruling, insofar as it established demolition as the last alternative sentence given the impossibility of complying with the provisions of the Urban Planning Code. Consequently, Arcos del Gourmet SA must comply with the resolution of February 14, 2019 without this implying the demolition of the building.

Concession Status

In November 2008, the Arcos del Gourmet S.A. signed a contract with the Agencia de Administración de Bienes del Estado (State Assets Administration Office, or AABE in Spanish) for which the Company had been granted the concession to use the properties located in the jurisdiction of Estación Palermo, ex Línea San Martín - Palermo loading deck (on Juan B. Justo Avenue from Santa Fe Avenue to Paraguay Street) until December 31, 2025 (the “Arcos concession agreement”).

Subsequently, in September 2011, a Contract for the Readjustment of this Concession was entered into with the Railway Infrastructure Administrator (ADIF in Spanish) (to which the rail assets were transferred in the jurisdiction of AABE), pursuant to the term of the Arcos concession agreement was extended until December 31, 2030. This new agreement provides for an automatic extension of 3 years and 4 months in the event that the Company complies with the agreement and ADIF so finds. Likewise, a new extension is established for an additional 3 years if the Company so declares and ADIF corroborates compliance with the obligations. This agreement established an initial monthly fee of ARS 0.2 million (plus VAT) until December 31, 2025, and ARS 0.25 million (plus VAT) as of January 1, 2026, these values being adjustable every 2 years until the end of the term of the concession.

The Argentine government issued Executive Order 1723/2012, whereby several plots of land located in prior rail yards of Palermo, Liniers and Caballito were designated for development and urbanization projects.

In this respect and as part of several measures related to other licensed persons and/or concessionaires, the Company was notified, of Resolution 170/2014 revoking of the Arcos Concession agreement.

It should further be pointed out that such measure:

(i) it is not related to a breach by Arcos.

(ii) there is any interruption of the commercial development or operation of the shopping mall, which continues to operate under normal conditions.

 Notwithstanding the foregoing, Arcos del Gourmet S.A. has filed the relevant administrative resources (appeal) and has also filed a judicial action requesting that the revocation of the Arcos Concession agreement be overruled. In the framework of this process, the National Government has already answered the transfer of the claim. Likewise, the administrative appeal has been withdrawn (legal imperative for having initiated legal action).

Once the evidence had been produced and the arguments made, on August 24, 2022, a judgment of first instance was issued, in which the claim for annulment was rejected, and it was affirmed that, since the contract provided the ability to terminate the agreement for reasons of opportunity and merit, the AABE’s decision to terminate to carry out urban projects was not arbitrary.

On August 25, 2022, that sentence was appealed by Arcos, so it is not final. The main grievance of the company consists of the violation of its property rights due to the untimely nature of the revocation, as well as the arbitrariness that it has been arranged before there is a specific urban project to be carried out.

At the same time, the National Government filed a lawsuit to launch Law No. 17,901 against Arcos. On May 11, the Court decided to decree the immediate release of Arcos and/or occupants and/or intruders of the properties. On May 12, 2022, Arcos appealed said resolution and that same day, the Court admitted the appeal, which is pending resolution. In turn, and due to the possibility that the eviction of the Arcos District property would be resolved in a short time, a precautionary measure was filed in order to avoid the eviction until the annulment action is resolved. On June 28, 2019, the interim precautionary measure was granted, which is why the opening of the property has been suspended. The amount of ARS 60,500,000 was set as a real surety, which was fulfilled with the constitution of a surety policy. However, it should be noted that the resolution that granted the precautionary measure has been appealed. On March 3, 2020, the CNACAF (National Chamber of Appeals in Federal Administrative Dispute) decided that since the six-month period originally established by the Court of First Instance for the validity of the precautionary measure had expired, the treatment of appeals was devoid of purpose. Faced with this resolution, an appeal for reconsideration was presented in extremis and the First Instance Courts was simultaneously requested to order the extension of the precautionary measure. On October 23, 2020, the extension of the precautionary measure for six months was resolved, which was later appealed by Playas Ferroviarias de Buenos Aires S.A. and the AABE, pending resolution of the appeal filed by both. In view of the impending expiration of the six-month period set by the Judge of First Instance when granting the precautionary measure, on March 8, 2021, the Company requested that an extension of the validity of the measure. On May 6, 2021, the precautionary measure was extended. However, this measure was appealed by Playas Ferroviarias and AABE. On September 7, 2021, the Chamber revoked the granting of the new extension to the precautionary measure. Arcos filed an extraordinary appeal against said resolution on November 17, 2021, which was denied by the Chamber.

Likewise, it has also initiated a consignment lawsuit in which Arcos del Gourmet S.A. is depositing in due time and form the rental fees corresponding to the Contract for the Readjustment of the Use and Exploitation Concession that Arcos interprets has been improperly revoked. In this process, the claim was transferred, which was answered by Trenes Argentinos with exceptions. These exceptions were answered by Arcos.

Emprendimiento Recoleta S.A.

As a result of a public auction, in February 1991, the City of Buenos Aires granted to ERSA a 20-year concession to use a plot of land in Centro Cultural Recoleta, which was set to expire in November 2013.

Pursuant to Decree No. 867/10 dated November 25, 2010, a five-year extension was granted so the agreement expired on November 18, 2018.

 On April 12, 2018, ERSA was notified by the Federal National Criminal and Correctional Court No. 1, Secretariat No. 2 in the case entitled “Blaksley Enrique and others s / infraction art. 303 ” of the judicial intervention for a period of six months, ordering the appointment of collecting and informants overseers and decreeing their general inhibition of assets. On July 20, 2018 and subsequently, on August 10, 2018, ERSA received two new notifications from the same Court in which it was ordered: 1) to transfer to the Court's account 7.36% of the income received by the company for any concept and 2) designate as representatives of the minority of 46.316% in all shareholders' meetings, board meetings, the interveners. On January 8, 2019, the Federal National Criminal and Correctional Court No. 1 decreed the preventive seizure for the purpose of confiscation of 46.31% of all value obtained from the sale and / or liquidation of the assets of ERSA after deduction of taxes and any other expense. Although these measures were appealed in a timely manner, all of them are in force as of the date of these Consolidated Financial Statements.

On November 16, 2018, the Ordinary and Extraordinary General Shareholders meeting resolved the early dissolution and the beginning of the liquidation process of ERSA, appointing Messrs. Gastón Armando Lernoud and Juan Manuel Quintana as liquidator.

On December 5, 2018, the property was returned to the competent authorities, who from that date have control of the property, terminating the concession.

It should be noted that the end of ERSA’s concession has no significant impact on the Group’s Financial Statements.

IDBD

As indicated in Note 1. to these Consolidated Financial Statements, the Group lost control of IDBD on September 25, 2020.

On September 21, 2020, IDBD filed a lawsuit against Dolphin Netherlands B.V. (“Dolphin BV”) and IRSA before the Tel-Aviv Jaffa District Court (civil case no. 29694-09-20). The amount claimed by IDBD is NIS 140 million, alleging that Dolphin BV and IRSA breached an alleged legally binding commitment to transfer to IDBD 2 installments of NIS 70 million. On December 24, 2020, and following approval by the insolvency court, the IDBD trustee filed a motion to dismiss the claim, maintaining the right as IDBD trustee, to file a new inter alia claim in the same matter, after conduct an investigation into the reasons for IDBD's insolvency. On December 24, 2020, the court entered a judgment to dismiss the claim as requested. On October 31, 2021, the Insolvency Commissioner notified that he did not oppose the motion, and on that same date, the court affirmed the motion initiated by the trustee of IDBD.

On December 26, 2021 IDBD filed the lawsuit against Dolphin BV and IRSA for the sum of NIS 140 million.

We have not been formally notified of the lawsuit and, with the information currently available, the Management of the Company and its legal advisors consider that there are legal arguments for an eventual defense.

Panamerican Mall S.A.

Below is the summarized financial information of subsidiaries with material non-controlling interests which are considered significant for the Group, presented before intercompany eliminations.

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held by non-controlling interests			Book value of non-controlling interests		% of ownership interest held by controlling interests			Book value of controlling interests
06.30.22		760		59,599		2,054		15,344		42,961		20	%		8,592		80	%		34,369
06.30.21		973		64,049		3,050		17,882		44,090		20	%		8,818		80	%		35,272

	Revenues		Comprehensive loss for the year			Cash of Operating activities		Cash of investing activities			Cash of financial activities			Net Increase / (decrease) in cash and cash equivalents			Dividends distribution to non-controlling shareholders
06.30.22		3,766		(1,129	)		2,415		(292	)		(2,112	)		11			-
06.30.21		3,230		(3,754	)		1,428		(391	)		(1,123	)		(86	)		-

The non-controlling interests of the remaining subsidiaries summarize ARS 4,309 and ARS 25,441 (out of witch ARS 1,579 corresponds to PAMSA and ARS 23,862 corresponds to IRSA CP, see Note 4.C) as of June 30, 2022 and 2021, respectively. None of these subsidiaries has a non-controlling interest that individually is considered significant for the Group.

XML

Investments in associates and joint ventures

12 Months Ended

Jun. 30, 2022

8. Investments in associates and joint ventures

8. Investments in associates and joint ventures

Changes of the Group’s investments in associates and joint ventures for the fiscal years ended June 30, 2022 and 2021 were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		19,936			183,192
Capital contributions		1,035			69
Decrease of interest in associate (iv)		-			(71,905	)
Deconsolidation (i)		-			(79,438	)
Share of loss		(355	)		(4,977	)
Impairment (iii)		-			(1,027	)
Currency translation adjustment		(473	)		(5,869	)
Dividends		(3,586	)		-
Other comprehensive loss		-			(89	)
Others		(431	)		(20	)
End of the year (ii)		16,126			19,936

(i)	See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.
(ii)	Includes ARS (8) and ARS (12) reflecting interests in companies with negative equity as of June 30, 2022 and 2021, respectively, which are disclosed in “Provisions” (see Note 19).
(iii)	Corresponds to investment in TGLT S.A.
(iv)	Corresponds to the sale of the remaining equity interest in Shufersal in July 2020.

Below is a detail of the investments and the values of the stake held by the Group in associates and joint ventures for the years ended as of June 30, 2022 and 2021, as well as the Group's share of the comprehensive results of these companies for the years ended on June 30, 2022, 2021 and 2020:

Name of the entity	% ownership interest									Value of Group's interest in equity				Group's interest in comprehensive income / (loss)
	June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2022		June 30, 2021		June 30, 2022			June 30, 2021			June 30, 2020
Associates and joint ventures
New Lipstick		49.96	%		49.96	%		49.96	%		143		357		69			(787	)		18,801
BHSA (1)		29.91	%		29.91	%		29.91	%		9,665		8,792		873			(1,240	)		(936	)
Condor		21.70	%		18.89	%		18.89	%		-		2,657		425			(679	)		295
Quality (2)		50.00	%		50.00	%		50.00	%		3,858		4,800		(983	)		(425	)		456
La Rural SA		50.00	%		50.00	%		50.00	%		243		277		(42	)		(221	)		251
TGLT (3)		27.82	%		27.82	%		30.20	%		813		1,537		(723	)		(3,537	)		(285	)
Other joint ventures		N/A			N/A			N/A			1,404		1,516		(447	)		(3,957	)		2,896
Total associates and joint ventures											16,126		19,936		(828	)		(10,846	)		21,478

Name of the entity

Place of business / Country of incorporation

Main activity

Common shares 1 vote

Share capital (nominal value)

Profit / (loss) for the year

Latest financial statements issued Shareholders’ equity

Associates and joint ventures

New Lipstick

U.S.

Real estate

N/A

-

(*) (1

)

(*) (42

)

BHSA (1)

Argentina

Financial

448,689,072

(**) 1,500

(**) 2,920

(**) 31,251

Quality (2)

Argentina

Real estate

225,146,912

406

(1,965

)

7,563

La Rural SA

Argentina

Organization of events

714,998

1

(58

)

339

TGLT (3)

Argentina

Real estate

257,330,595

925

(2,950

)

4,084

(1)	BHSA is a commercial bank of comprehensive services that offers a variety of banking and financial services for individuals, small and medium businesses and large companies. The market price of the share is 7.78 pesos per share. The effect of the treasury shares in the BHSA portfolio is considered for the calculation.
(2)	Quality is dedicated to the exploitation of the San Martín property (former property of Nobleza Piccardo S.A.I.C. and F.).
(3)	See Note 8 to the Consolidated Financial Statements as of June 30, 2021
(*)	Amounts in millions of US Dollars under USGAAP. Condor’s year-end falls on December 31, so the Group estimates their interest with a three-month lag, including material adjustments, if any.
(**)	Information as of June 30, 2022 according to IFRS

New Lipstick:

On August 7, 2020, as a consequence of negotiations conducted in the context of an increased lease price effective as of May 2020, as set forth in the lease (hereinafter, “Ground Lease”), Metropolitan (a company where IRSA holds, indirectly, a 49.96% interest) executed an agreement with the Ground Lease lessor to conclude the relationship and terminate the ground lease, abandoning the administration of the building. As a consequence of the foregoing, Metropolitan derecognized the liability associated to the Ground Lease, as well as all assets and liabilities associated to the building and the administration as of June 30, 2020.

TGLT S.A.:

During the fiscal year ended at June 30, 2020, TGLT S.A. and the Company entered into a recapitalization agreement, based on which IRSA increased its holding in TGLT S.A. reason why it began to be considered an associate company.

During the fiscal year ended at June 30, 2021, TGLT S.A. yielded significant losses and its business was affected by different factors related to the context in which it finds itself. Therefore, the Company decided to re-evaluate the recoverability of this asset.

For this reason and considering that the events are public and have been openly disclosed to the market, it is considered that the market value of the shares is more suitable indicator to determine the value of this holding.

La Rural S.A.

 In connection with the Fairground, as publicly known, in December 2012 the National Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which had approved the sale of the Fairground to the Sociedad Rural Argentina (SRA); the effect of this new order was to revoke the sale transaction. Subsequent, on March 21, 2012, the National Executive Branch notified the SRA of said executive order and further ordered that the property be returned to the Argentine government within 30 subsequent days. Then, the SRA issued a press release publicly disclosing the initiation of legal actions and the obtaining of a precautionary measure for which Decree 2552/12 was suspended. Furthermore, as it has become publicly known, on August 21, 2013, the Supreme Court of Justice rejected the appeal filed by the Argentine government against the interim measure timely requested by the SRA.

Neither has IRSA been served notice formally nor is it a party involved in the legal actions brought by the SRA.

Given the potential dimension of the dispute, as it has been known to the public, we estimate that if Executive Order 2552/12 was found to be unconstitutional, such order shall have no legal effects either in Entertainment Holdings S.A. (EHSA) or in the acquisition by IRSA of an equity interest in EHSA. However, should the opposite happen, that is, a court order declaring the Executive Order 2699/91, this could have a real impact on acquired assets. In this scenario, the judicial decision may render the purchase of the Plot of Land by SRA null and void, and all acts executed by SRA in relation to the Plot of Land, including the right of use currently held by the entity where EHSA has an indirect equity interest, through vehicle entities, would also become null and void.

On June 1, 2015, a ruling was issued in case 4573/2012 SOCIEDAD RURAL ARGENTINA vs. NATIONAL STATE – EXECUTIVE POWER ON DECLARATORY ACTION, whereby the injunction staying the effects of Executive Order 2552/12 were lifted.

On June 2, 2015 the SRA filed a writ of appeals against the ruling indicated above and on that same date the appeal was admitted with staying effects. While the appeal filed by SRA was filed in the Appellate court, the decision of the judge of first instance who decided to lift the precautionary measure had no effect and was suspended.

On September 17, 2015, the court of appeals revoked the decision and rejected in the motion by of the Argentine government to lift the precautionary measure and the Law N° 26,854 was declared inapplicable to the case of precautionary measures against the Government. As a result, the injunction issued on January 4, 2013 was confirmed. The National Government filed an extraordinary federal appeal and subsequently a complaint, both were dismissed, therefore, the precautionary measure was reaffirmed.

On March 11, 2016 La Rural S.A. was summoned as third party in the case referred to above, and filed an answer to such summons on April 6, 2017. 

On April 21, 2016 the National Government presented itself, requested the annotation of litis as a precautionary measure, opposed the exception of incompetence, raised the inadmissibility of the declaratory action of certainty, in subsidy, proceeded to answer the complaint. It also requested the suspension of the sentence until the criminal case is resolved and opposed, as a counterclaim, a motion declare the annulment of Decree 2699/91, as well as all those acts enacted in consequence of said decree.

By order of April 29, 2016, the National Government was presented, opposed to the exception raised, the claim in subsidy was contested and the action of injuriousness filed, and it ordered the transfer of the different Government proposals to the SRA.

On the same occasion, the precautionary measure for the annotation of the requested litigation was admitted under the responsibility of the National Government regarding the individualized properties in the process.

On November 22, 2016, SRA answered the transfer of the injuriousness action filed by the National Government, which was considered as answered on December 1.

On December 21, 2016, the National Government, for its part, answered the exception of expiration opportunely opposed. Nevertheless, it was indicated that confirmation with La Rural S.A. was pending.

On June 19, 2017, the transfer of the exception of incompetence raised by the National Government was substantiated, which was answered by La Rural S.A. in June 2017. On the same occasion, SRA accused expiry of that previous exception in the terms of article 310 CPCCN, which was resolved by order of July 14, 2017.

On that occasion it was resolved to sustain the expiration filed by Sociedad Rural Argentina regarding the incident of exception of incompetence filed by the National Government. Therefore, the process was settled in the Civil and Commercial Federal jurisdiction.

On August 28, 2017, the National Government notified the transfer of the request of certain sections of the SRA's submission that answered the counterclaim and was transferred to the third party of the prescription exception opposed by the SRA at the time of answer the counterclaim. Both substations were answered by SRA and La Rural S.A. on September 4, 2017.

On October 5, 2017, the Federal Oral Criminal Court No. 2 requested the referral of the proceedings in the context of the case: "Menem, Carlos Saúl and other s / inf. Art. 261, first paragraph of the CP ". For presentations of December 2017 and March 2018, SRA requested the Oral Court to return the proceedings in order to continue with the process.

On March 27, 2018, the Court decided to convict various Administration officials, including former President Carlos S. Menem and former Minister Domingo F. Cavallo, as necessary participants in the crime of peculation. Additionally, it resolved to acquit the authorities of the imputed Argentine Rural Society and it was decided to reject the request for restitution of the property requested by the AABE, leaving the decision on that matter in the hands of the Federal Civil and Commercial Court involved. The basics of the decision were published on May 28, 2018.

On February 27, 2020, the proceedings were considered returned to the Federal Civil and Commercial Court and the parties were ordered to notify their return.

On July 30, 2020, the SRA and La Rural S.A. were notified about the return of the proceedings.

 On August 13, 2020, the Oral Court was released to send the entirety of the evidence to the Civil Court.

On August 19, 2021, the Civil and Commercial Court decided to defer the treatment of the prescription exception opposed by Sociedad Rural with respect to the counterclaim of the government for the moment of sentencing, and also decided to reject the examination request of the paragraphs by the government. Against this last resolution, the government filed an appeal, which was admitted by resolution of September 8, 2021.Finally, on February 2, 2022, the Chamber of Appeals upheld the proposal of the government and ordered that the considerations expressed by the SRA in Chapter 8 of the presentation of the response to the action of harmfulness be omitted, considering that such response was not admitted by the procedural system. On March 7, 2022, the case was returned to the court of origin.

On May 11, 2022, the trial was opened.

Set out below is summarized financial information of the associates and joint ventures considered to be material to the Group:

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held			Interest in associate and joint venture		Goodwill and others			Book value
As of 06.30.22
Associates
BHSA		241,536		79,939		280,495		8,961		32,019		29.91	%		9,577		88			9,665
TGLT		7,511		12,371		8,176		7,677		4,029		27.82	%		1,121		(308	)		813
Joint ventures
Quality Invest (ii)		61		11,490		70		3,919		7,562		50.00	%		3,781		77			3,858
.
As of 06.30.21
Associates
BHSA		188,185		116,578		256,477		19,122		29,164		29.91	%		8,723		69			8,792
TGLT		8,460		19,366		8,117		12,635		7,074		27.82	%		1,968		(431	)		1,537
Joint ventures
Quality Invest (ii)		8		14,499		164		4,898		9,445		50.00	%		4,723		77			4,800

	Revenues		Net income / (loss)			Total comprehensive income / (loss)			Dividend distribution		Cash of operating activities			Cash of investing activities			Cash of financing activities			Changes in cash and cash equivalents
As of 06.30.22 (i)
Associates
BHSA		54,043		2,920			2,920			-		33,208			(240	)		(24,583	)		8,385
TGLT		4,198		(2,129	)		(2,089	)		-		(1,322	)		4,209			(2,530	)		357
Joint ventures
Quality Invest (ii)		206		(1,965	)		(1,965	)		-		(1	)		24			(2	)		21
As of 06.30.21 (i)
Associates
BHSA		47,976		(4,145	)		(4,145	)		-		7,081			(212	)		(46,143	)		(39,274	)
TGLT		4,196		(3,142	)		(3,155	)		-		185			108			(746	)		(453	)
Joint ventures
Quality Invest (ii)		74		(849	)		(849	)		-		(97	)		(7	)		104			-

(i)

Information under GAAP applicable in the associate and joint ventures´ jurisdiction.

(ii)

In March 2011, Quality acquired an industrial plant located in San Martín, Province of Buenos Aires. The facilities are suitable for multiple uses. On January 20, 2015, Quality agreed with the Municipality of San Martin on certain re zoning and other urban planning matters (“the Agreement”) to surrender a non-significant portion of the land and a monetary consideration of ARS 40 million, payable in two installments of ARS 20 each, the first of which was actually paid on June 30, 2015. In July 2017, the Agreement was amended as follows: 1) a revised zoning plan must be submitted within 120 days as from the amendment date, and 2) the second installment of the monetary considerations was increased to ARS 76 million payables in 18 equal monthly installments. On March 8, 2018, it was agreed with the well-known Gehl Study (Denmark) - Urban Quality Consultant - the elaboration of a Master Plan, generating a modern concept of New Urban District of Mixed Uses. On July 20, 2020 we were notified of the granting of the Hydraulic Aptitude in pre-feasibility instance. On August 5, 2021, they were signed between Quality Invest S.A. and the Municipality of San Martín the following documents: 1) CLUB PERETZ CLUB AGREEMENT ACT CLOSING: It is agreed that within 48 hours of signing the same Quality will pay the certificates owed for the work in question already completed, releasing both parties from any claim regarding the Minutes signed on January 20, 2015 The amount owed (already checked and agreed between the parties) is ARS 18,926,541. and the execution of the works are described, detailed and carried out. As of June 30, 2022, the amount owed and the works are completed and paid, as well as the closing act signed. 2) COMPLEMENTARY AGREEMENT WITH THE MUNICIPALITY OF SAN MARTIN: In this agreement the completion of the Rodriguez Peña expansion work and the relocation and start-up of the EDENOR substation are agreed, according to the plan and specifications drawn up by TIS and that they are part of its annexes. In return, the certifications owed will be paid as follows: The total is for ARS 26,085,086: ARS 15,000,000.- are paid 48 hours after signing this document and the balance (without any adjustment clause) at the time of the provisional reception of the work, where the definitive reception and Delivery Certificate will be signed. As of June 30, 2022, the $15,000,000 have already been paid and the work is not yet finished (being executed by more than 85%). The balance due is $11,085,086, which will be paid at the time of provisional reception of the work, when it and the Delivery Certificate will be signed.

BHSA

BHSA is subject to certain restrictions on the distribution of profits, as required by BCRA regulations.

The Annual Shareholders' Meeting decided to allocate 35.1 million of Class D shares of a par value of ARS 1, to an employee compensation plan pursuant to Section 67 of Law 26,831. As of June 30, 2022, BHSA has a remnant of 26.8 million of such treasury shares. As of June 30, 2022, considering the effect of such treasury shares, the Group’s interest in BHSA amounts to 29.91%.

The Group estimated that the value in use of its investment in BHSA as of June 30, 2022 and 2021 amounted to ARS 9,680, ARS 11,043, respectively. The value in use was estimated based on the present value of future business cash flows. The main assumptions used were the following:

- The Group considered 9 years as the horizon for the projection of BHSA cash flows, including perpetual value.

- The “Private BADLAR” interest rate was projected based on internal data and information gathered from external advisors.

- The projected exchange rate was estimated in accordance with internal data and external information provided by independent consultants.

- The discount rate used to discount actual dividend flows was 15.64% in 2022 and 14.02% in 2021.

- The sensitivity to a 1% increase in the discount rate would be a reduction in the value in use of ARS 760 for 2022 and of ARS 625 for 2021.

 The estimated value in use exceeds the book value of the investment, because of that, no adjustment was necessary on the recorded value of the investment.

Puerto Retiro (joint venture):

At present, this 8.3-hectare plot of land, is affected by a zoning regulation defined as U.P. which prevents the property from being used for any purposes other than strictly port activities.

Puerto Retiro was involved in a judicial bankruptcy action brought by the National Government. The current Board of Directors would not be held personally liable with regard to this action. Management and legal counsel of the Company believe that there are sufficient legal and technical arguments to consider that the petition for extension of the bankruptcy case will be dismissed by the court. However, in view of the current status of the action, its result cannot be predicted.

Moreover, Tandanor filed a civil action against Puerto Retiro S.A. and the other defendants in the criminal case for violation of Section 174 (5) based on Section 173 (7) of the Criminal Code of Argentina. Such action seeks -on the basis of the nullity of the decree that approved the bidding process involving the Dársena Norte property- the restitution of the property and a reimbursement in favor of Tandanor for all such amounts it has allegedly lost as a result of a suspected fraudulent transaction involving the sale of the property. Puerto Retiro has presented the allegation on the merit of the evidence, highlighting that the current shareholders of Puerto Retiro did not participate in any of the suspected acts in the criminal case since they acquired the shares for consideration and in good faith several years after the facts told in the process. Likewise, it was emphasized that the company Puerto Retiro is foreign to the bidding / privatization carried out for the sale of Tandanor shares. On September 7, 2018, the Oral Federal Criminal Court No. 5 rendered a decision. According to the sentence read by the president of the Court, Puerto Retiro won the preliminary objection of limitation filed in the civil action. However, in the criminal case, where Puerto Retiro is not a party, it was ordered, among other issues, the confiscation (“decomiso”) of the property owned by Puerto Retiro known as Planta I. The grounds of the Court's judgment were read on November 11, 2018. From that moment, all the parties were able to present the appeals. Given this fact, an extraordinary appeal was filed, which was rejected, and as a result, a complaint was filed for a rejected appeal, which was granted. Consequently, the appeal is under study in the Argentine Supreme Court of Justice.

In the criminal action, the claimant reported the violation by Puerto Retiro of the injunction ordered by the criminal court consisting in an order to stay (“prohibición de innovar”) and not to contract with respect to the property disputed in the civil action. As a result of this complaint, the Federal Oral Court No. 5 formed an incident and ordered and executed the closure of the property where the lease agreements were being executed (a heliport and a mooring), in order to enforce compliance with the measure before mentioned. As a result of this circumstance, it was learned that the proceedings were turned over to the Criminal Chamber for the allocation of the court to investigate the possible commission of a crime of disobedience. As of the date of issuance of these Consolidated Financial Statements there has been no news about the progress of this cause.

Faced with the evolution of the legal cases that affect it and based on the reports of its legal advisors, Puerto Retiro Management has decided to register in fiscal year 2019 an allowance equivalent to 100% of the book value of its investment property, without prejudice to reverse it when a favorable ruling is obtained in the interposed actions.

XML

Investment properties

12 Months Ended

Jun. 30, 2022

9. Investment properties

9. Investment properties

Changes in the Group’s investment properties according to the fair value hierarchy for the years ended June 30, 2022 and 2021 were as follows:

	June 30, 2022						June 30, 2021
	Level 2			Level 3			Level 2			Level 3
Fair value at the beginning of the year		153,474			146,863			179,631			380,822
Additions		7,364			2,052			449			1,250
Capitalized leasing costs		23			19			21			15
Amortization of capitalized leasing costs (i)		(36	)		(9	)		(11	)		(10	)
Transfers / Reclassification to assets held for sale (iv)		62,350			(63,306	)		(869	)		-
Deconsolidation (ii)		-			-			-			(192,757	)
Disposals (iii)		(29,116	)		-			(35,135	)		-
Currency translation adjustment		(34	)		-			(20	)		(20,262	)
Net gain / (loss) from fair value adjustment		14,533			(883	)		9,408			(22,195	)
Fair value at the end of the year		208,558			84,736			153,474			146,863

(i)	As of June 30, 2022 and 2021, amortization charges of capitalized leasing costs were recognized: ARS 38 and ARS 21 in "Costs" and ARS 7 in "General and administrative expenses", respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24).
(ii)	As of June 30, 2021 corresponds to IDBD.
(iii)	See Notes 4.A and 4.E to these Consolidated Financial Statements.
(iv)	Includes the transfer from level 3 to level 2 of Costa Urbana, see note below.

The following is the balance by type of investment property of the Group as of June 30, 2022 and 2021:

	06.30.2022		06.30.2021
Shopping Malls		90,142		83,331
Offices and other rental properties		74,338		122,477
Undeveloped parcels of land		127,956		88,851
Properties under development		567		5,441
Others		291		237
Total		293,294		300,337

Certain investment property assets of the Group have been mortgaged or restricted to secure some of the Group’s borrowings and other payables. The net book value of those properties as of June 30, 2022 and 2021 is as follows:

	06.30.2022		06.30.2021
Córdoba Shopping (i)		2,215		2,832
Total		2,215		2,832

(i) A portion of the Córdoba Shopping mall property is encumbered with an antichresis right as collateral for an advance rent received from NAI International II Inc. amounting to ARS 272 million and ARS 276 million, as of June 30, 2022 and 2021, respectively, (included in “Trade and other payables” in the Consolidated Statements of Financial Position).

The following amounts have been recognized in the Consolidated Statements of Income and Other Comprehensive Income:

	06.30.2022			06.30.2021			06.30.2020
Rental and services income		27,281			18,093			28,092
Direct operating expenses		(9,191	)		(7,264	)		(19,909	)
Development reimbursements		186			187			277
Net realized gain from fair value adjustment of investment properties (i) (ii)		13,980			17,745			2,793
Net unrealized (loss) / gain from fair value adjustment of investment properties		(330	)		(30,487	)		80,287

(i)

As of June 30, 2022, includes ARS 18 for the sale of Casona Hudson, ARS 83 for the sale of Merlo Land, ARS 75 for the sale of Mariano Acosta Land, ARS 113 for the sale of parking spaces in Libertador building, ARS 5,223 for the sale of Catalinas building’s floors and ARS 8,468 for the sale of República building. As of June 30, 2021, includes ARS 8,911 for the sale of Torre Boston, ARS 8,803 for the sale of Bouchard 710 and ARS 31 for the sale of parking spaces in Bouchard 557. As of June 30 ,2020 includes ARS 8 and ARS 887 for the monetary and non-monetary benefit, respectively, corresponding to the barter transaction related to Caballito Ferro land, ARS 1,413 for the sale of floors 10th and 11th of the office building “200 Della Paolera”, and ARS 485 for the deconsolidation of La Maltería S.A.

(ii)

As of June 30, 2022, ARS (9,513) corresponds to the result for changes in the fair value realized for the year ((ARS 103) from the sale of Casona Hudson, (ARS 22) from the sale of Merlo land, (ARS 25) from the sale of Mariano Acosta land, (ARS 104) from the sale of parking spaces in Libertador 498 building, (ARS 2,733) from the sale of Catalinas building and (ARS 6,526) from the sale of República building) and ARS 23,493 from the result of changes in the fair value made in previous years (ARS 121 from the Casona Hudson sale, ARS 105 from the Merlo land sale, ARS 100 from the Mariano Acosta land sale, ARS 217 from the sale of parking spaces in Libertador 498 building, ARS 7,956 from the sale of Catalinas building’s floors and ARS 14,994 from the sale of República Building). As of June 30, 2021, ARS (2,552) corresponds to the result for changes in the fair value realized for the year ((ARS 1,756) from the sale of Torre Boston, (ARS 771) from the sale of Bouchard 710 and (ARS 25) for the sale of parking spaces in Bouchard 557) and ARS 20,297 from the result of changes in the fair value made in previous years (ARS 10,667 from the Boston Tower sale and ARS 9,574 from the Bouchard 710 and ARS 56 from the Bouchard 557 sale). As of June 30, 2020, ARS 1,641 corresponds to net realized gain from fair value on investment properties for the year (ARS 228 from the sale of the Caballito Ferro land and ARS 1,413 from the sale of the “200 Della Paolera” building) and ARS 1,152 net realized gain from fair value on investment properties in previous years (ARS 667 attributable to the Caballito Ferro land and ARS 485 to the deconsolidation of La Maltería S.A.).

See note 5 (liquidity schedule) for detail of contractual commitments related to investment properties.

Valuation processes

The Group’s investment properties were valued at each reporting date by independent professionally qualified appraisers who hold a recognized relevant professional qualification and have experience in the locations and segments of the investment properties appraised. For all investment properties, their current use equates to the highest and best use.

The Group has a team which reviews the appraisals performed by the independent appraisers (the “review team”). The review team: i) verifies all major and important assumptions relevant to the appraisal in the valuation report from the independent appraisers; ii) assesses property valuation movements compared to the valuation report from the prior period; and iii) holds discussions with the independent appraisers.

Changes in Level 2 and 3 fair values, if any, are analyzed at each reporting date during the valuation discussions between the review team and the independent appraisers. The Board of Directors ultimately approves the fair value calculation for recording into the Financial Statements.

During the annual investment property valuation process, the following circumstances were identified, among other aspects: i) entry into force of the modifications in the urban planning code of the Autonomous City of Buenos Aires (CABA) with the new urban code law sanctioned in November 2020 and which entered into force in February 2021 modifying approximately one third of the current code, ii) new construction potential, iii) consolidation of new paradigms of the sector imposed by the pandemic, the general economic situation and the situation of the real estate sector that make technical, legal or economically viable buildable potentials or surpluses for alternative uses of the entire portfolio of properties.

In this sense, the shopping malls were the most affected by the aforementioned circumstances, taking into account the size of their plots and their unique and strategic locations, considering an alternative potential realization market.

The impact of the pandemic and the long-term closure of shopping malls led to a reconsideration of the possibility of mixed uses in the buildable potentials of such shopping malls, seeking a new centrality and enhancing the attractiveness in replacement of anchor stores.

On the other hand, the analysis of opening towards its surroundings and the generation of open spaces produced a new distribution of the value of the existing square meters, producing a change of focus on how to maximize said surplus square meters.

This led to reevaluate the analysis of the value of surplus square meters that were potentially marketable, (being that historically they were the most profitable), to reconvert them to other complementary uses. The buildable potentials analyzed have unique, irreplaceable locations, with high potentials, feasible realization and very attractive from an economic point of view. As a data, the value of construction during 2020 improved the relationship of the construction cost and its future sale speculation of square meters.

The identified buildable potentials are included in the value of the investment property based on the methodology established for other Level 2 properties:

1.	Patio Bullrich, CABA
2.	Alto Palermo, CABA
3.	Córdoba Shopping, Córdoba
4.	Alto Rosario, Rosario, Santa Fe.
5.	Beruti 3345/47, CABA.

Valuation techniques used for the estimation of fair value of the investment property

The Group has defined valuation techniques according to the characteristics of each property and the type of market in which these assets are located, in order to maximize the use of observable information available for the determination of fair value.

For the Shopping Malls there is no liquid market for the sale of properties with these characteristics that can be taken as a reference of value. Likewise, the Shopping Malls, a business whose revenue is denominated in Argentine Pesos, are highly related to the fluctuation of macroeconomic variables in Argentina, the purchasing power of individuals, the economic cycle of Gross Domestic Product (GDP) growth, the evolution of inflation, among others. Consequently, the methodology adopted by the Group for the valuation of Shopping Malls is the discounted cash flow model (“DCF”), which allows the volatility of the Argentine economy to be taken into account and its correlation with the revenue streams of the Malls and the inherent risk of the Argentine macroeconomy. The DCF methodology contemplates the use of certain unobservable valuation assumptions, which are determined reliably based on the information and internal sources available at the date of each measurement. These assumptions mainly include the following:

· Future projected income flow based on the current locations, type and quality of the properties, supported by the rental contracts that the Company has signed with its tenants. Because the Company's income arises from the higher value between a Minimum Insured Fixed Value (“VMA”) and a percentage of the sales of the tenants in each Shopping Mall, estimates of the evolution of GDP and Inflation of the Argentine economy provided by external consultants to estimate the evolution of tenant sales, which present a high correlation with these macroeconomic variables. Said macroeconomic projections were contrasted with the projections prepared by the International Monetary Fund (“IMF”), the Organization for Economic Cooperation and Development (“OECD”) and with the Market Expectations Survey (“REM”), which consists of a survey prepared by the Central Bank of the Argentine Republic (“BCRA”) aimed at local and foreign specialized analysts in order to allow a systematic monitoring of the main macroeconomic forecasts in the short and medium term on the evolution of the Argentine economy.

· The income from all Shopping Malls was considered to grow with the same elasticity in relation to the evolution of the GDP and the projected inflation. The specific characteristics and risks of each Shopping Mall are captured through the use of the historical average EBITDA Margin of each of them.

· Cash flows from future investments, expansions or improvements in Shopping Mall were not contemplated.

· Terminal value: a perpetuity calculated from the cash flow of the last year of useful life was considered.

· The cash flow for concessions was projected until the termination date of the concession stipulated in the current contract.

· Given the prevailing inflationary context and the volatility of certain macroeconomic variables, a reference long term interest rate in Argentine Pesos is not available to discount the projected cash flows from shopping malls. Consequently, the projected cash flows were dollarized through the future ARS / US$ exchange rate curve provided by an external consultant, which are contrasted to assess their reasonableness with those of the IMF, OECD, REM and the On-shore Exchange Rate Futures Market (ROFEX). Finally, dollarized cash flows were discounted with a long-term dollar rate, the weighted average capital cost rate (“WACC”), for each valuation date.

· The estimation of the WACC discount rate was determined according to the following components:

a)	United State Governments Bonds risk-free rate;
b)	Industry beta, considering comparable companies from the United States, Brazil, Chile and Mexico, in order to contemplate the Market Risk on the risk-free rate;
c)	Argentine country risk considering the EMBI + Index; and
d)	Cost of debt and capital structure, considering that information available from the Argentine corporate market (“blue chips”) was determined as a reference, since sovereign bonds have a history of defaults. Consequently, and because IRSA CP, based on its representativeness and market share represents the most important entity in the sector, we have taken its indicators to determine the discount rate.

For offices, other rental properties, plot of lands and buildable potentials the valuation was determined using transactions of comparable market assets, since the market for offices and land banks in Argentina is liquid and has market transactions that can be taken as reference. These values are adjusted to reflect differences in key attributes such as location, property size and quality of interior fittings (incidence adjustments). The most significant input to the comparable market approach is the price per square meter that derives from the supply and demand in force in the market at each valuation date.

Since September 2019, the real estate market has faced certain changes in terms of its operation as a consequence of the implementation of regulations applicable to the foreign exchange market. In general terms, the measure adopted on September 1, 2019 by the BCRA sets forth that exporters of goods and services should settle foreign currency from abroad in the local exchange market 5 days after the collection of such funds, at the latest. Furthermore, it provides that legal entities residing in Argentina may buy foreign currency without restrictions for imports or payments of debts on the maturity date thereof, although they shall apply for the BCRA´s prior authorization for the purposes of: buying foreign currency in order to form external assets, prepaying debts, making remittances of profits and dividends abroad or transferring funds abroad. Likewise, pursuant to such regulations, access to the market by natural persons for the purchase of dollars was restricted. Afterwards, the BCRA implemented stricter measures, further limiting access to the foreign exchange market (see Note 33).

From the previous year, it is observed that the purchase and sales transactions for office buildings may be settled in Argentine Pesos (by using an implicit foreign exchange rate higher than the official one) or in dollars. Consequently, the most probable scenario is that any sale of office buildings/reserves be settled in Argentine Pesos at an implicit foreign exchange rate higher than the official one. This is evidenced by the transactions consummated by the Group prior to and after the closing of these Consolidated Financial Statements. Therefore, the Group has valued its office buildings, land reserves and buildable potentials in Argentine Pesos at the end of the year considering the situation described above, considering an implicit exchange rate higher than the official one.

In certain situations, it is complex to determine reliably the fair value of developing properties. In order to assess whether the fair value of a developing property can be determined reliably, management considers the following factors, among others:

· The provisions of the construction contract.

· The stage of completion.

· Whether the project / property is standard (typical for the market) or non-standard.

· The level of reliability of cash inflows after completion.

· The specific development risk of the property.

· Previous experience with similar constructions.

· Status of construction permits.

There were no changes in the valuation techniques during the year.

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3):

				06.30.22						06.30.21						06.30.20
Description	Valuation technique	Parameters	Range fiscal year 2021 / 2019	Increase			Decrease			Increase			Decrease			Increase			Decrease
Shopping Malls (Level 3)	Discounted cash flows	Discount rate	14.53% / 12.18%		(5,864	)		6,890			(6,297	)		7,525			(10,474	)		12,825
		Growth rate	2.4% / 2.3%		2,636			(2,234	)		2,884			(2,414	)		4,993			(4,077	)
		Inflation	(*)		10,516			(8,704	)		13,399			(11,052	)		21,803			(17,936	)
		Devaluation	(*)		(7,758	)		9,482			(7,145	)		8,732			(10,136	)		12,389

(*) Fiscal year 2022: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 163.65 (corresponding to the year ended June 30, 2023) and arriving at ARS 622.06 in 2028. In the long term, a nominal devaluation rate of 5.57% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 70.9% (corresponding to the year ended June 30, 2023) and stabilizes at 8.0% after 5 years.

Fiscal year 2021: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 116.94 (corresponding to the year ended June 30, 2022) and arriving at ARS 376.56 in 2027. In the long term, a nominal devaluation rate of 27.5% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 44.1% (corresponding to the year ended June 30, 2022) and stabilizes at 30.0% after 5 years.

Fiscal year 2020: For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 86.21 (corresponding to the year ended June 30, 2021) and arriving at ARS 243.89 in 2026. In the long term, a nominal devaluation rate of 21.1% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 47.9% (corresponding to the year ended June 30, 2021) and stabilizes at 23.2% after 5 years.

(i) Considering an increase or decrease of: 100 points for the discount and growth rate in Argentina, 10% for the incidence and inflation and 10% for the devaluation.

Costa Urbana –former Solares de Santa María– Costanera Sur, Buenos Aires City (IRSA)

On December 21, 2021, it was published the law from Buenos Aires City congress approving the Regulations for the development of the property of approximately 70 hectares, owned by the Company since 1997, previously known as “Solares de Santa María”, located in front of the Río de la Plata in the South Coast of the Autonomous City of Buenos Aires, southeast of Puerto Madero. The published law grants a New Standard, designated: “U73 - Public Park and Costa Urbana Urbanization”, which enables the combination of diverse uses such as homes, offices, retail, services, public spaces, education, and entertainment.

The Company will have a construction capacity of approximately 895,000 sqm, which will drive growth for the coming years through the development of mixed-use projects.

IRSA will destinate 50.8 hectares for public use, which represents approximately 71% of the total area of the property and will contribute with three additional lots of the property, two for the Sustainable Urban Development Fund and one for the Innovation Trust, Science and Technology of the Government of the Autonomous City of Buenos Aires, to which the sum of USD 2 million in cash and the amount of 3,000,000 sovereign bonds (AL35) will also be contributed. Likewise, the Company will be in charge of the infrastructure and road works on the property and will carry out the public space works contributing up to USD 40 million together with the maintenance of the public spaces assigned for 10 years or until the sum of USD 10 million is completed.

“Costa Urbana” will change the landscape of the City of Buenos Aires, giving life to an undeveloped area and will be in an exceptional property due to its size, location and connectivity, providing the City the possibility of expanding and recovering access to the Río de la Plata coast with areas for walks, recreation, green spaces, public parks and mixed uses.

On October 29, 2021, a notification was received in relation to a collective protective petition requesting the convening of a public hearing prescribed by art. 63 of the Constitution of the City of Buenos Aires and the suspension of the treatment of Bill 1831 - J 2021 (first Instance trail in contentious Administrative and Tax matters No. 10, Sec. 19 - Cause "Civil Association Observatory of the Right to the city and others against GCBA and Others on protection - others" - EXP J-01-00166469-3/2021-0). The Company proceeded to answer the notification on November 12, 2021, requesting its rejection and on March 10, 2022, the court issued a ruling partially upholding the protective petition. On March 15, 2022, IRSA appealed said ruling, as did the Government of the Autonomous City of Buenos Aires, co-defendant in the case. On March 17, 2022, the court granted the appeals in relation and with suspensive effect, of the contested sentence (in accordance with the provisions of Law No. 2145). The matter is to be resolved by the in Administrative, Tax and Consumer Relations Litigation- Room IV.

XML

Property, Plant and Equipment

12 Months Ended

Jun. 30, 2022

Property, Plant and Equipment

10. Property, plant and equipment

10. Property, plant and equipment

Changes in the Group’s property, plant and equipment for the years ended June 30, 2022 and 2021 were as follows:  

	Agricultural establishments			Buildings and facilities			Machinery and equipment			Communication networks			Others (i)			Total
Net book amount at the June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Costs		23,397			29,746			11,043			248,594			31,754			344,534
Accumulated depreciation		(12,674	)		(17,057	)		(9,308	)		(196,589	)		(15,977	)		(251,605	)
Balances at June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Additions		90			331			105			953			1,236			2,715
Disposals		-			(46	)		(11	)		(90	)		-			(147	)
Deconsolidation		(10,006	)		(7,027	)		(1,304	)		(46,443	)		(13,914	)		(78,694	)
Reclassification to assets assets held for sale		-			(46	)		-			-			-			(46	)
Currency translation adjustment		(761	)		(562	)		(101	)		(3,749	)		(1,117	)		(6,290	)
Transfers		-			1,622			-			-			-			1,622
Depreciation charges (ii)		(46	)		(702	)		(146	)		(2,676	)		(1,720	)		(5,290	)
Net book amount at the June 30, 2021		-			6,259			278			-			262			6,799
Costs		-			11,603			4,121			-			949			16,673
Accumulated depreciation		-			(5,344	)		(3,843	)		-			(687	)		(9,874	)
Balances at June 30, 2021		-			6,259			278			-			262			6,799
Additions		-			282			51			-			2			335
Disposals		-			(2	)		(1	)		-			-			(3	)
Currency translation adjustment		-			-			-			-			(3	)		(3	)
Transfers		-			1,492			19			-			-			1,511
Depreciation charges (ii)		-			(499	)		(111	)		-			(39	)		(649	)
Net book amount at the June 30, 2022		-			7,532			236			-			222			7,990
Costs		-			13,375			4,190			-			948			18,513
Accumulated depreciation		-			(5,843	)		(3,954	)		-			(726	)		(10,523	)
Balances at June 30, 2022		-			7,532			236			-			222			7,990

(i)

Includes furniture and fixtures and vehicles.

(ii)

As of June 30, 2022 and 2021, depreciation charges of property, plant and equipment were recognized: ARS 463 and ARS 515 in "Costs", ARS 182 and ARS 164 in "General and administrative expenses" and ARS 4 and ARS 7 in "Selling expenses", respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). Likewise, a charge of ARS 4,604 has been made in “Discontinued operations” as of June 30, 2021.

XML

Trading Properties

12 Months Ended

Jun. 30, 2022

11. Trading properties

11. Trading properties

Changes in the Group’s trading properties for the fiscal years ended June 30, 2022 and 2021 were as follows:

	Completed properties			Properties under development			Undeveloped sites			Total
At June 30, 2020		4,985			2,043			10,638			17,666
Additions		-			669			651			1,320
Deconsolidation		(3,490	)		(233	)		(8,887	)		(12,610	)
Currency translation adjustment		(320	)		(206	)		(612	)		(1,138	)
Transfers		318			(318	)		-			-
Disposals		(1,295	)		(640	)		(420	)		(2,355	)
At June 30, 2021		198			1,315			1,370			2,883
Additions		-			471			37			508
Currency translation adjustment		-			(157	)		-			(157	)
At June 30, 2022		198			1,629			1,407			3,234

	June 30, 2022		June 30, 2021
Non-current		3,041		2,696
Current		193		187
Total		3,234		2,883

(i) Includes Zetol and Vista al Muelle plots of land, which have been mortgaged to secure Group's borrowings. The net book value amounted to ARS 1,629 and ARS 1,315 as of June 30, 2022 and 2021, respectively. Additionally, the Group has contractual obligations not provisioned related to these plots of lands committed when certain properties were acquired or real estate projects were approved, and amount to ARS 953 and ARS 1,486, respectively. As of June 30, 2022, the infrastructure work regarding to sectors A and B of the property has been completed and is in the process of being received, including, among others, the coastal road, roundabouts, lights, landfills, and stormwater and sewage connections for an amount of USD 3.2 MM.

XML

Intangible assets

12 Months Ended

Jun. 30, 2022

12. Intangible assets

12. Intangible assets

Changes in the Group’s intangible assets for the years ended June 30, 2022 and 2021 were as follows:

	Goodwill			Trademarks			Licenses			Customer relations			Information systems and software			Contracts and others			Total
Balance at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Costs		13,899			20,742			27,805			58,450			19,494			32,913			173,303
Accumulated amortization		-			(1,953	)		(21,844	)		(52,355	)		(9,093	)		(19,625	)		(104,870	)
Net book amount at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Additions		-			-			-			46			728			2,793			3,567
Disposals		-			-			-			-			(182	)		-			(182	)
Deconsolidation		(13,904	)		(17,405	)		(5,398	)		(5,151	)		(7,632	)		(10,439	)		(59,929	)
Impairment		(66	)		-			-			-			-			-			(66	)
Currency translation adjustment		292			(1,338	)		(427	)		(446	)		(1,159	)		(981	)		(4,059	)
Amortization charges (i)		-			(46	)		(136	)		(544	)		(1,820	)		(1,282	)		(3,828	)
Balance at June 30, 2021		221			-			-			-			336			3,379			3,936
Costs		221			-			-			-			1,294			3,884			5,399
Accumulated amortization		-			-			-			-			(958	)		(505	)		(1,463	)
Net book amount at June 30, 2021		221			-			-			-			336			3,379			3,936
Additions		-			-			-			-			65			38			103
Disposals		-			-			-			-			-			(471	)		(471	)
Impairment		-			-			-			-			(40	)		-			(40	)
Amortization charges (i)		-			-			-			-			(148	)		(1	)		(149	)
Balance at June 30, 2022		221			-			-			-			213			2,945			3,379
Costs		221			-			-			-			1,319			3,451			4,991
Accumulated amortization		-			-			-			-			(1,106	)		(506	)		(1,612	)
Net book amount at June 30, 2022		221			-			-			-			213			2,945			3,379

(i) Amortization charge was recognized in the amount of ARS 40 and ARS 34 under "Costs", in the amount of ARS 109 and ARS 166 under "General and administrative expenses" as of June 30, 2022 and 2021, respectively in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). Likewise, ARS 3,628 has been charged to the result of discontinued operations as of June 30, 2021.

XML

Rights of use of assets

12 Months Ended

Jun. 30, 2022

13. Rights of use of assets

13. Right-of-use assets

 Below is the composition of the Group´s right-of-use assets as of June 30, 2022 and 2021:

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		17		18
Machinery and equipment		2		7
Convention center		1,223		1,305
Total Right-of-use assets		1,242		1,330
Non-current		1,242		1,330
Total		1,242		1,330

Changes in the Group´s right-of-use assets during the fiscal years ended June 30, 2022 and 2021, were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		1,330			48,913
Additions		-			1,458
Disposals		-			(136	)
Amortization charges		(88	)		(3,135	)
Deconsolidation		-			(42,394	)
Currency translation adjustment		-			(3,376	)
Total		1,242			1,330

Depreciation charge for right-of-use assets is detailed below:

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		78		2,119
Telecommunications		-		485
Others		10		531
Total depreciation of right-of-use assets (i)		88		3,135

(i) As of June 30, 2022, depreciation charges were recognized as follows: ARS 79 in "Costs" and ARS 9 in "General and administrative expenses" in the Consolidated Statements of Income and Other Comprehensive Income (Note 24). As of June 30, 2021 includes ARS 2,991 in “discontinued operations”.

Other charges to income related to right-of-use assets were as follows:

	June 30, 2022			June 30, 2021
Lease liabilities interests		(120	)		(458	)
Results from short-term leases		(43	)		(59	)

 The average discount rate and the term of liability for lease recognized as of June 30, 2022 are detailed below:

Average discount rate	Maturity date
10.61%	2023-2041

XML

Financial instruments by category

12 Months Ended

Jun. 30, 2022

14. Financial instruments by category

14. Financial instruments by category

The following note presents the financial assets and financial liabilities by category and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Since the line items “Trade and other receivables” and “Trade and other payables” contain both financial instruments and non-financial assets or liabilities (such as prepayments, trade receivables, trade payables in-kind and tax receivables and payables), the reconciliation is shown in the columns headed “Non-financial assets” and “Non-financial liabilities”. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy.

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels.

In the case of Level 1, valuation is based on quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company can refer to at the date of valuation. In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period. In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no market data is available. The inputs used reflect the Group’s assumptions regarding the factors which market players would consider in their pricing.

The Group’s Finance Division has a team in place in charge of estimating the valuation of financial assets required to be reported in the Consolidated Financial Statements, including the fair value of Level-3 instruments. The team directly reports to the Chief Financial Officer ("CFO"). The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, as of the end of each reporting period.

According to the Group’s policy, transfers among the several categories of valuation are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

Financial assets and financial liabilities as of June 30, 2022 are as follows:

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2022
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,057		-		-		-		12,057		3,963		16,020
Investments in financial assets:
- Public companies’ securities		-		1,346		-		-		1,346		-		1,346
- Mutual fonds		-		13,870		-		-		13,870		-		13,870
- Bonds		-		3,806		-		-		3,806		-		3,806
- Others		10		265		-		-		275		-		275
Cash and cash equivalents:
- Cash at bank and on hand		10,015		-		-		-		10,015		-		10,015
- Short-term investments		-		2,761		-		-		2,761		-		2,761
Total assets		22,082		22,048		-		-		44,130		3,963		48,093

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2022
Liabilities as per Statements of Financial Position
Trade and other payables		4,440		-		-		-		4,440		7,641		12,081
Borrowings		74,734		-		-		-		74,734		-		74,734
Derivative financial instruments:
- Swaps		-		-		16		-		16		-		16
Total liabilities		79,174		-		16		-		79,190		7,641		86,831

Financial assets and financial liabilities as of June 30, 2021 were as follows:

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2021
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		11,858		-		-		-		11,858		8,104		19,962
Investments in financial assets:
- Public companies’ securities		-		1,600		-		-		1,600		-		1,600
- Bonds		-		4,446		-		-		4,446		-		4,446
- Investments in financial assets with quotation		16		1,048		-		79		1,143		-		1,143
Cash and cash equivalents:
- Cash at bank and on hand		1,850		-		-		-		1,850		-		1,850
- Short term investments		-		1,317		-		-		1,317		-		1,317
Total assets		13,724		8,411		-		79		22,214		8,104		30,318

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2021
Liabilities as per Statements of Financial Position
Trade and other payables		4,729		-		-		-		4,729		5,913		10,642
Borrowings		101,887		-		-		-		101,887		-		101,887
Derivative financial instruments:		-
- Swaps		-		-		94		-		94		-		94
Total liabilities		106,616		-		94		-		106,710		5,913		112,623

(i) The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 20).

The following are details of the book value of financial instruments recognized, which were offset in the statements of financial position:

	As of June 30, 2022							As of June 30, 2021
	Gross amounts recognized		Gross amounts offset			Net amount presented		Gross amounts recognized		Gross amounts offset			Net amount presented
Financial assets
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,587		(530	)		12,057		15,221		(3,363	)		11,858
Financial liabilities
Trade and other payables		3,910		530			4,440		1,366		3,363			4,729

Income, expense, gains and losses on financial instruments can be assigned to the following categories:

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss		Total
June 30, 2022
Interest income		463			-		463
Interest expense		(8,171	)		-		(8,171	)
Interest expense on lease liabilities		(120	)		-		(120	)
Foreign exchange gains, net		14,406			-		14,406
Gain from repurchase of NCN		1,460			-		1,460
Fair value gain on financial assets at fair value through profit or loss		-			1,454		1,454
Interest and discount generated by operating credits		128			-		128
Gain on derivative financial instruments, net		-			33		33
Other finance costs		(463	)		-		(463	)
Total financial instruments (i)		7,703			1,487		9,190

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2021
Interest income		591			-			591
Interest expense		(10,511	)		-			(10,511	)
Interest expense on lease liabilities		(158	)		-			(158	)
Foreign exchange gains, net		11,512			-			11,512
Dividend income		1			-			1
Loss from repurchase of NCN		(156	)		-			(156	)
Fair value gain on financial assets at fair value through profit or loss		-			8,720			8,720
Interest and discount generated by operating credits		157			-			157
Loss on derivative financial instruments, net		-			(740	)		(740	)
Other finance costs		(1,420	)		-			(1,420	)
Total financial instruments (i)		16			7,980			7,996

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2020
Interest income		491			-			491
Interest expense		(14,114	)		-			(14,114	)
Interest expense on lease liabilities		(133	)		-			(133	)
Foreign exchange gains, net		(15,386	)		-			(15,386	)
Dividend income		34			-			34
Gain from repurchase of NCN		228			-			228
Fair value gain on financial assets at fair value through profit or loss		-			828			828
Interest and discount generated by operating credits		417			-			417
Loss on derivative financial instruments, net		-			(901	)		(901	)
Other finance costs		(923	)		-			(923	)
Total financial instruments (i)		(29,386	)		(73	)		(29,459	)

(i) Included within “Financial results, net“ in the Consolidated Statements of Income and Other Comprehensive Income, with the exception of interest and discount generated by operating assets, which are included within "Other operating results, net".

The following table presents the changes in Level 3 financial instruments as of June 30, 2022 and 2021:

	Derivative financial instruments - Forwards			Investments in financial assets - Private companies' securities			Investments in financial assets - Others			Derivative financial instruments			Total
Balances at June 30, 2020		(49	)		7,164			571			349			8,035
Deconsolidation		49			(7,164	)		(500	)		(349	)		(7,964	)
Currency translation adjustment		-			-			(7	)		-			(7	)
Gain for the year (i)		-			-			15			-			15
Balances at June 30, 2021		-			-			79			-			79
Currency translation adjustment		-			-			(8	)		-			(8	)
Write off		-			-			(96	)		-			(96	)
Gain for the year (i)		-			-			25			-			25
Balances at June 30, 2022		-			-			-			-			-

(i) Included within “Financial results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

During the fiscal year ended June 30, 2021, there were no transfers between levels of hierarchy of the fair value. During the fiscal year ended June 30, 2022, there were no transfers between levels of hierarchy of the fair value. When there are no quoted prices available in an active market, fair values (especially derivative instruments) are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table.

Description	Pricing model / method	Parameters	Fair value hierarchy	Range
Derivative financial instruments Swaps	Theoretical price	Underlying asset price and volatility	Level 2 and 3		-

As of June 30, 2022, there are no changes in economic or business circumstances that affect the fair value of the Group's financial assets and liabilities that were not considered in the fair value estimation.

XML

Trade and other receivables

12 Months Ended

Jun. 30, 2022

Trade and other receivables

15. Trade and other receivables

15. Trade and other receivables

Group’s trade and other receivables as of June 30, 2022 and 2021 were as follows:

	June 30, 2022			June 30, 2021
Sale, leases and services receivables		8,012			7,532
Less: Allowance for doubtful accounts		(853	)		(1,395	)
Total trade receivables		7,159			6,137
Prepaid expenses		339			1,320
Borrowings, deposits and others		4,661			6,017
Advances to suppliers		917			1,558
Tax receivables		935			1,912
Others		1,156			1,623
Total other receivables		8,008			12,430
Total trade and other receivables		15,167			18,567
Non-current		4,336			4,669
Current		10,831			13,898
Total		15,167			18,567

Book amounts of Group's trade and other receivables in foreign currencies are detailed in Note 31.

The fair value of current receivables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant.

Trade accounts receivables are generally presented in the Consolidated Statements of Financial Position net of allowances for doubtful accounts. Impairment policies and procedures by type of receivables are discussed in detail in Note 2. Movements on the Group’s allowance for doubtful accounts were as follows:

	June 30, 2022			June 30, 2021
Beginning of the year		1,395			9,199
Additions (i)		250			1,238
Recovery (i)		(282	)		(376	)
Currency translation adjustment		73			(452	)
Deconsolidation		-			(7,614	)
Receivables written off during the year as uncollectable		(12	)		(46	)
Inflation adjustment		(571	)		(554	)
End of the year		853			1,395

(i) The creation and release of the provision for impaired receivables have been included in “Selling expenses” in the Consolidated Statements of Income and Other Comprehensive Income (Note 24).

The Group’s trade receivables comprise several classes. The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables (see Note 5). The Group also has receivables from related parties neither of them is due nor impaired.

Due to the distinct characteristics of each type of receivables, an aging analysis of past due unimpaired and impaired receivables is shown by type and class, as of June 30, 2022 and 2021 (a column of non-past due receivables is also included so that the totals can be reconciled with the amounts appearing on the Consolidated Statement of Financial Position):

	Past due
	Up to 3 months		From 3 to 6 months		Over 6 months		Non-past due		Impaired		Total		% of representation
Leases and services		391		238		649		5,607		853		7,738		96.58	%
Consumer financing		-		-		-		87		-		87		1.09	%
Sale of properties and developments		40		-		20		127		-		187		2.33	%
Total as of June 30, 2022		431		238		669		5,821		853		8,012		100.00	%
Leases and services		554		405		1,077		3,794		1,369		7,199		95.58	%
Consumer financing		-		-		-		-		26		26		0.35	%
Sale of properties and developments		-		-		-		307		-		307		4.07	%
Total as of June 30, 2021		554		405		1,077		4,101		1,395		7,532		100.00	%

XML

Cash flow information

12 Months Ended

Jun. 30, 2022

16. Cash flow information

16. Cash flow information

Following is a detailed description of cash flows generated by the Group’s operations for the years ended June 30, 2022, 2021 and 2020:

	Note		06.30.2022			06.30.2021			06.30.2020
Profit / (loss) for the year				34,892			(61,641	)		58,461
Profit for the year from discontinued operations				-			14,633			8,112
Adjustments for:
Income tax		21		2,770			35,540			16,505
Amortization and depreciation		24		931			1,051			1,174
Net (gain) / loss from fair value adjustment of investment properties				(13,650	)		12,742			(83,080	)
Gain from disposal of associates				-			(61	)		-
Financial results, net				(14,298	)		(10,840	)		32,366
Provisions and allowances				1,560			1,846			2,035
Share of loss / (profit) of associates and joint ventures		8		355			7,182			(17,787	)
Changes in operating assets and liabilities:										-
(Increase) / decrease in inventories				(7	)		43			10
Decrease / (increase) in trading properties				89			(46	)		(971	)
Increase in restricted assets				-			-			(2,870	)
(Increase) / decrease in trade and other receivables				(31	)		2,483			4,680
Increase / (decrease) in trade and other payables				624			(5,553	)		(735	)
Increase / (decrease) in salaries and social security liabilities				31			87			(476	)
Decrease in provisions				(97	)		(176	)		(1,309	)
Net cash generated by / (used in) continuing operating activities before income tax paid				13,169			(2,710	)		16,115
Net cash generated by discontinued operating activities before income tax paid				-			5,577			62,117
Net cash generated by operating activities before income tax paid				13,169			2,867			78,232

The following table shows balances incorporated as result of business combination or deconsolidation of subsidiaries:

	June 30, 2022		June 30, 2021			June 30, 2020
Investment properties		-		192,757			383,250
Property, plant and equipment		-		78,694			(12,432	)
Trading properties		-		12,610			382
Intangible assets		-		59,929			7,940
Investments in associates and joint ventures		-		79,438			6,200
Deferred income tax assets		-		931			-
Restricted assets		-		13,775			526
Income tax and MPIT credit		-		699			108
Trade and other receivables		-		115,924			(22,298	)
Right-of-use assets		-		42,394			(9,795	)
Investments in financial assets		-		51,889			33,359
Derivative financial instruments		-		603			(92	)
Inventories		-		7,727			(6,166	)
Group of assets held for sale		-		90,236			-
Borrowings		-		(697,452	)		(216,942	)
Lease liabilities		-		(38,857	)		-
Deferred income tax liabilities		-		(26,665	)		(49,767	)
Trade and other payables		-		(50,426	)		5,697
Lease liabilities		-		-			5,116
Provisions		-		(11,635	)		141
Employee benefits		-		(1,023	)		264
Derivative financial instruments		-		(1,023	)		-
Salaries and social security liabilities		-		(7,260	)		339
Group of liabilities held for sale		-		(47,235	)		-
Income tax expense		-		(977	)		(264	)
Net value of deconsolidated / incorporated assets that do not affect cash		-		(134,947	)		125,566
Cash and cash equivalents		-		(238,316	)		(14,786	)
Non-controlling interest		-		(102,520	)		124,986
Goodwill		-		-			(927	)
Net value of deconsolidated / incorporated assets		-		(475,783	)		234,839
Seller Financed Amount		-		-			-
Net (outflow) / inflow of cash and cash equivalents		-		(475,783	)		234,839

The following table shows a detail of significant non-cash transactions occurred in the years ended June 30, 2022, 2021 and 2020:

	06.30.2022		06.30.2021		06.30.2020
Decrease of associates and joint ventures through an increase of assets held for sale		-		-		5,101
Increase of investment properties through a decrease of financial assets		-		-		685
Increase of trading properties through an increase in borrowings		-		100		30
Increase of property, plant and equipment through an increase of trade and other payables		-		-		1,820
Increase of intangible assets through an increase of trade and other payables		12		-		1,217
Distribution of dividends in shares		-		1,193		1,451
Increase of investment properties through a decrease in trade and other receivables		-		-		69
Issuance of NCN		4,304		-		-
Decrease of property, plant and equipment through an increase of tax receivables and tax debts		-		136		-
Distribution of dividends to non-controlling interest pending payment		-		-		4,337
Decrease in borrowings through a decrease in financial assets		-		-		6,044
Increase in investment properties through an increase in trade and other payables		185		-		1,751
Increase of investment properties through an increase of borrowings		-		668		247
Increase in right-of-use assets through an increase in lease liabilities - Adjustment of opening balances (IFRS 16)		-		-		34,787
Increase in right-of-use assets through an increase in lease liabilities		-		-		19,929
Increase in intangible assets through a decrease in investment in associates		-		1,340		-
Currency translation adjustment		177		18,748		34,929
Increase in investment properties under barter agreements		3,139		-		-
Payment of non-convertible notes		633		-		-
Decrease in lease liabilities through a decrease in trade and other receivables		3		-		-
Decrease in investment properties through an increase in property, plant and equipment		1,558		-		-
Decrease in property, plant and equipment through an increase in investment properties		600		-		-
Decrease in property, plant and equipment through an increase in revaluation surplus		556		-		-
Decrease in revaluation surplus through an increase in deferred income tax liabilities		195		-		-
Increase in intangible assets through an increase salaries and social security liabilities		26		-		-
Increase in investments in associates through a decrease in investments in financial assets		865		-		-
Decrease in borrowings through a decrease in credits for trade and other receivables		441		-		-
Increase in investments in associates and joint ventures through a decrease in investments in financial assets		45		-		-
Capital contributions from non-controlling interest through a decrease of borrowings		4		-		-
Capital contributions from non-controlling interest through an increase in trade and other receivables		5		-		-

XML

Shareholders' Equity

12 Months Ended

Jun. 30, 2022

17. Shareholders' Equity

17. Shareholders’ Equity

Share capital and share premium

The share capital of the Group is represented by common shares with a nominal value of ARS 1 per share and one vote each.

On April 12, 2021, the Company announced the launch of its public offering of shares for up to 80 million shares (or its equivalent 8 million GDS) and 80 million warrants to subscribe for new common shares, to registered holders as of April 16, 2021. Each common share right entitles its holder to subscribe for 0.1382465082 new common shares and to receive free of charge, for each new common share that it purchases pursuant to this offering, one warrant to purchase one additional common share. The final subscription price for the new shares was ARS 58.35 or USD 0.36 and for the new GDS it was USD 3.60. The new shares, registered, of ARS 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.

The 80,000,000 new shares (or its equivalent 8 million GDS) offered were totally subscribed.

Likewise, 80,000,000 warrants were issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares. The exercise price of the warrants is USD 0.432. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year on the business day prior to maturity and on the date of maturity (if dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue. These warrants have been considered as equity instruments.

The Company received all the funds in the amount of USD 28.8 million and issued the new shares, increasing the capital stock to 658,676,460 shares.

By Extraordinary Shareholders’ Meeting dated December 22, 2021, an increase of the capital stock of the company was approved, as a result of the merger by absorption with IRSA Propiedades Comerciales S.A. in the amount of ARS 152,158,215 through the issuance of 152,158,215 common shares of ARS 1 par value each and one vote per share. See Note 4.C to these Consolidated Financial Statements.

As of the date of these Consolidated Financial Statements, the total number of shares issued by the Company amounts to 810,879,553 shares.

Treasury shares

On March 11, 2022, the IRSA Board of Directors approved the shares buyback program issued by the Company and established the terms and conditions for the acquisition of shares issued by the Company, under the terms of Article 64 of Law No. 26,831 and the regulations of the CNV, for up to a maximum amount of ARS1,000 million and up to 10% of the capital stock, up to a daily limit of up to 25% of the average volume of daily transactions experienced by the Company's shares, jointly in the listed markets, during the previous 90 business days, and up to a maximum price of USD 7 per ADS and ARS 140 per share. Likewise, the buyback term was set at up to 120 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange.

As of March 31, 2022 the Company has acquired 3,808,472 common shares of ARS 1 par value each for an amount of ARS 348 million approximately, representing the 34.84% of the program. As of the date of issuance of these Consolidated Financial Statements there is no due date for the disposal of the shares acquired.

See Note 34 to these Consolidated Financial Statements, for repurchases after the closing date of the fiscal year.

Inflation adjustment of share capital and treasury shares

The inflation adjustment related to share capital is allocated to an inflation adjustment reserve that forms part of shareholders' equity. The balance of this reserve could be applied only towards the issuance of common stock to shareholders of the Company.

Warrants

Common stock purchase options (warrants), issued by IRSA with common shares during the fiscal year and treated as equity instruments, are recorded as a separate component of the equity and are measured at cost; represented by fair value on the issue date using the Black-Scholes pricing model, which incorporates certain inputs assumptions, including shares price and volatility, risk-free interest rate, and warrant maturity.

At the time of the exercise of the warrants by the holders, the warrants are transferred to share capital for the nominal value of the issued shares and the difference with the product is recognized in the share premium.

Legal reserve

According to Law N° 19,550, 5% of the profit of the year is destined to the constitution of a legal reserve until it reaches the legal capped amount (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses.

Special reserve Resolution CNV 609/12 - Retained earnings

The CNV, through General Ruling N° 562/9 and 576/10, has provided for the application of Technical Resolutions N° 26 and 29 of the FACPCE, which adopt the IFRS, as issued by the IASB, for companies subject to the public offering regime ruled by Law 17,811, due to the listing of their shares or corporate notes, and for entities that have applied for authorization to be listed under the mentioned regime. The Group has applied IFRS, as issued by the IASB, for the first time in the year beginning July 1^st, 2012, being its transition date July 1^st, 2011. Pursuant to CNV General Ruling N° 609/12, the Company set up a special reserve reflecting the positive difference between the balance of retained earnings disclosed in the first Financial Statements prepared according to IFRS and the balance of retained earnings disclosed in the last Financial Statements prepared in accordance with previously effective accounting standards. The reserve recorded amounted to ARS 425, which as of June 30, 2017 were fully used to absorb the negative balances in the retained earnings account. During fiscal year ended June 30, 2017, the Company’s Board of Directors decided to change the accounting policy of investment property from the cost method to the fair value method, as allowed by IAS 40. For this reason, as of the transition date, figures have been modified and, hence, the special reserve as set forth by General Ruling CNV N° 609/12 has been increased to ARS 23,164, which may only be reversed to be capitalized or to absorb potential negative balances under retained earnings.

Special reserve

The Ordinary and Extraordinary General Meeting of Shareholders on October 31, 2017 constituted a special reserve which was subsequently utilized to absorb losses and as of June 30, 2022 amounts to ARS 1,337.

Additional paid-in capital from treasury shares

Upon sale of treasury shares, the difference between the net realizable value of the treasury shares sold and the acquisition cost will be recognized, whether it is a gain or a loss, under the non-capitalized contribution account and will be known as “Treasury shares trading premium”.

Dividends

On October 26, 2020, our shareholders held an Ordinary and Extraordinary Meeting and approved an in kind dividend distribution equivalent to ARS 484 million (representative of ARS 0.84 per share) and payable in shares of IRSA CP. Our shareholders decided to consider IRSA CP’s ’quoted price per share as of October 23, 2020, which resulted amounted ARS 320 per share. Pursuant to that shareholders’ decision, we distributed 1,512,500 common shares of IRSA CP. We reflected this transaction on our financial statements as a change in equity, which generated a reduction of the equity attributable to the controlling shareholders totalling ARS 1,189 million restated for inflation as of June 30, 2022.

During the fiscal year ended June 30, 2022 there was no distribution of dividends.

XML

Trade and other payables

12 Months Ended

Jun. 30, 2022

Trade and other payables

18. Trade and other payables

18. Trade and other payables

Group’s trade and other payables as of June 30, 2022 and 2021 were as follows:

	June 30, 2022		June 30, 2021
Customers´ advances (*)		3,641		2,894
Trade payables		1,599		1,687
Accrued invoices		1,179		1,409
Admission fees (*)		2,575		1,771
Other income to be accrued		96		128
Tenant deposits		67		148
Total trade payables		9,157		8,037
Taxes payable		1,329		1,120
Other payables		1,595		1,485
Total other payables		2,924		2,605
Total trade and other payables		12,081		10,642
Non-current		3,557		2,274
Current		8,524		8,368
Total		12,081		10,642

(*) Corresponds mainly to admission rights and rents collected in advance, which will accrue in an average term of 3 to 5 years. The variation is mainly due to the new contracts signed and an extraordinary rent in Alto Avellaneda.

The fair value of payables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).

XML

Provisions

12 Months Ended

Jun. 30, 2022

Provisions

19. Provisions

19. Provisions

The Group is subject to claims, lawsuits and other legal proceedings in the ordinary course of business, including claims from clients where a third party seeks reimbursement or damages. The Group’s responsibility under such claims, lawsuits and legal proceedings cannot be estimated with certainty. From time to time, the status of each major issue is evaluated and its potential financial exposure is assessed. If the potential loss involved in the claim or proceeding is deemed probable and the amount may be reasonably estimated, a liability is recorded. The Group estimates the amount of such liability based on the available information and in accordance with the provisions of the IFRS. If additional information becomes available, the Group will make an evaluation of claims, lawsuits and other outstanding proceeding, and will revise its estimates.

The following table shows the movements in the Group's provisions categorized by type:

	Legal claims			Investments in associates and joint ventures (ii)			Site dismantling and remediation			Other provisions			Total
As of 06.30.20		6,144			43			1,102			6,266			13,555
Additions (i)		151			-			46			(182	)		15
Deconsolidation		(5,072	)		-			(1,071	)		(5,492	)		(11,635	)
Recovery (i)		(54	)		(31	)		-			-			(85	)
Used during the year		(166	)		-			-			(46	)		(212	)
Inflation adjustment		(187	)		-			-			-			(187	)
Currency translation adjustment		(400	)		-			(77	)		(546	)		(1,023	)
As of 06.30.21		416			12			-			-			428
Additions (i)		341			-			-			-			341
Share of loss of associates		-			(4	)		-			-			(4	)
Recovery (i)		(79	)		-			-			-			(79	)
Used during the year		(97	)		-			-			-			(97	)
Inflation adjustment		(195	)		-			-			-			(195	)
As of 06.30.22		386			8			-			-			394

	June 30, 2022		June 30, 2021
Non-Current		196		187
Current		198		241
Total		394		428

(i)	Additions and recoveries are included in "Other operating results, net".
(ii)	Corresponds to the equity interest in Puerto Retiro in 2022 and 2021. Additions and recoveries are included in "Share of profit / (loss) of associates and joint ventures".

XML

Borrowings

12 Months Ended

Jun. 30, 2022

Borrowings

20. Borrowings

20. Borrowings

The breakdown and the fair value of the Group borrowings as of June 30, 2022 and 2021 was as follows:

	Total as of June 30, 2022		Total as of June 30, 2021		Fair value as of June 30, 2022		Fair value as of June 30, 2021
NCN		66,216		85,081		62,411		79,987
Bank loans		1,012		5,110		1,018		5,131
Bank overdrafts		5,871		8,665		5,871		8,665
Other borrowings		1,015		2,267		1,015		2,267
AABE Debt		405		423		405		423
Loans with non-controlling interests		215		341		215		341
Total borrowings		74,734		101,887		70,935		96,814
Non-current		13,052		76,619
Current		61,682		25,268
Total		74,734		101,887

As of June 30, 2022 and 2021, total borrowings include collateralized liabilities (seller financing, leases and bank loans) of ARS 953 and ARS 1,169, respectively. These borrowings are mainly collateralized by investment properties and property, plant and equipment of the Group (Notes 9 and 10).

The terms of the loans include standard covenants for this type of financial operations. As of the date of these Consolidated Financial Statements, the Group has complied with the covenants contemplated in its respective loan agreements.

The maturity of the Group's borrowings is as follows:

	June 30, 2022		June 30, 2021
Capital
Less than 1 year (i)		60,208		23,234
Between 1 and 2 years		10,470		66,542
Between 2 and 3 years		2,087		9,317
Between 3 and 4 years		106		272
Between 4 and 5 years		253		97
Later than 5 years		-		142
		73,124		99,604
Interest
Less than 1 year (i)		1,474		2,034
Between 1 and 2 years		-		89
Between 2 and 3 years		63		21
Between 3 and 4 years		9		74
Between 4 and 5 years		64		10
Later than 5 years		-		55
		1,610		2,283
		74,734		101,887

(i) On July 6, 2022, the Company completed the exchange of the Series II Notes, for which it canceled and/or extended the amount of USD 239 million of said class. See Note 34 to these Consolidated Financial Statements.

The following table shows a breakdown of Group’s borrowing by type of fixed-rate and floating-rate, per currency denomination and per functional currency of the subsidiary that holds the loans for the fiscal years ended June 30, 2022 and 2021.

	June 30, 2022
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		11,818		-		11,818
US Dollar		-		62,249		62,249
Subtotal fixed-rate borrowings		11,818		62,249		74,067
Floating rate:
Argentine Peso		418		-		418
US Dollar		-		249		249
Subtotal floating-rate borrowings		418		249		667
Total borrowings as per analysis		12,236		62,498		74,734
Total borrowings as per Statement of Financial Position		12,236		62,498		74,734

	June 30, 2021
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		16,605		-		16,605
US Dollar		-		81,573		81,573
Subtotal fixed-rate borrowings		16,605		81,573		98,178
Floating rate:
Argentine Peso		444		-		444
US Dollar		-		3,265		3,265
Subtotal floating-rate borrowings		444		3,265		3,709
Total borrowings as per analysis		17,049		84,838		101,887
Total borrowings as per Statement of Financial Position		17,049		84,838		101,887

The following describes the debt issuances made by the Group for the years ended June 30, 2022 and 2021:

Entity	Series	Issuance / expansion date	Amount in original currency	Maturity date	Interest	Principal payment	Interest payment
					rate
IRSA	Series I	nov-20	USD 3.1	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series VIII	nov-20	USD 31.7	11/12/2023	10.00% n.a.	33% in November 21, 33% in November 22, 34% in November 23	Quarterly
IRSA	Series IX	nov-20	USD 80.7	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series XI	mar-21	USD 15.81	3/1/2024	5.00% n.a.	At expiration	Biannual
IRSA	Series XII	mar-21	UVAs 53.78	03/31/2024	4.00% n.a.	At expiration	Biannual
IRSA	Series XIII	aug-21	USD 58.1	08/26/2024	3.90% n.a	Biannual	Quarterly

The following table shows a detail of evolution of borrowing during the years ended June 30, 2022 and 2021:

	June 30, 2022			June 30, 2021
Balance at the beginning of the year		101,887			926,487
Borrowings		7,427			43,119
Payment of borrowings		(11,834	)		(96,340	)
(Payment) / Collection of short term loans, net		(999	)		6,605
Interests paid		(8,204	)		(23,535	)
Deconsolidation		-			(697,452	)
Accrued interests		7,722			19,465
Cumulative translation adjustment and exchange differences, net		22,656			(71,995	)
Inflation adjustment		(42,666	)		(4,455	)
Reclassifications and other movements		(1,255	)		(12	)
Balance at the end of the year		74,734			101,887

Issuance of IRSA Non-convertible Notes

On August 26, 2021, the Company issued USD 58.1 Non-convertible Notes in the local market. The main characteristics of the issue are detailed below:

· Series XIII: denominated in USD and payable in ARS at the applicable exchange rate for USD 58.1 at a fixed rate of 3.9%, with semiannual payments plus. The principal will be paid in three installments, counted from the date of issue: the first one - equal to 25% of the par value of the notes - payable on the date that is 12 (twelve) months after the Issue, on August 26, 2023; the second one - equal to 25% of the par value of the notes - payable on the date that is 30 (thirty) months after the Issue, on February 26, 2024 and the third one - equal to 50% of the par value of the notes - payable on the relevant due date, i.e. August 26, 2024. Price of issuance was 100.0% of the nominal value.

The funds have been used to refinance short-term liabilities.

IRSA´s Series VII Non-convertible Notes Redemption

The Company resolved to early redeem the Series VII Notes maturing last January 21, 2022.

The redemption took place on November 25, 2021, in accordance with the terms and conditions detailed in the Prospectus Supplement for Series VII Notes.

The redemption price was 100% of the face value of the Series VII Notes, plus accrued and unpaid interest, as of the date set for redemption.

XML

Taxes

12 Months Ended

Jun. 30, 2022

21. Taxes

21. Taxes

The Group’s income tax has been calculated on the estimated taxable profit for each year at the rates prevailing in the respective tax jurisdictions. The subsidiaries of the Group in the jurisdictions where the Group operates are required to calculate their income taxes on a separate basis; thus, they are not permitted to compensate subsidiaries’ losses against subsidiaries income.

Argentine tax reform

Due to the enactment of Law 27630 published in the Official Gazette on June 16, 2021 and effective for the years beginning on January 1, 2021, the current rates for corporate income tax are modified according to the following scale:

Accumulated net taxable profit				Will pay		More of %			On the surplus of
More of		To
	-		5,000,000		-		25	%		-
	5,000,000		50,000,000		1,250,000		30	%		5,000,000
	50,000,000	Onwards			14,750,000		35	%		50,000,000

The amounts provided for in the scale will be adjusted annually, as of January 1, 2022, considering the annual variation of the Consumer Price Index (CPI), corresponding to the month of October of the year prior to the adjustment, with respect to the same month. from the previous year. The amounts determined by application of the described mechanism will be applicable for the fiscal years that begin after each update.

The Argentine Tax Authority established through the resolution 5248/2022 an extraordinary payment on account of the income tax payable in 3 monthly installments, for companies that meet any of the following requirements:

(i)	The amount of the tax determined from the affidavit corresponding to the fiscal period 2021 (closing between August and December 2021) or 2022 (closing between January and July 2022), as applicable, is equal to or greater than ARS 100 million.
(ii)	The amount of the tax result that arises from the affidavit, without applying the deduction of tax losses from previous years, is equal to or greater than ARS 300 million.

The payment on account will be 25% of the base for calculating the advance if point 1 is met, or 15% of the tax result without taking into account losses from previous years if point 2 is met.

The aforementioned payment on account may not be canceled through the compensation mechanism and, furthermore, should not be taken into account when a request for reduction of advances is made.

The expiration of the first installment is in October 2022 for those of the fiscal period 2021 and April 2023 for those of the fiscal period 2022.

The companies that would be paying the extraordinary payment on account are: IRSA, PAMSA, Fibesa and Arcos, all maturing after April 2023.

Submission of income tax presentation – IRSA

Dated November 15, 2021 IRSA CP hereinafter "the taxpayer", which according to what is detailed in the Note. 4.1 has been absorbed by the Company, filed to the Argentine Tax Authority the income tax for the fiscal year ended June 30, 2021 applying the systemic and comprehensive inflation adjustment mechanism as detailed: restating tax amortizations according to articles 87 and 88; updating the computable cost of real estate acquired or built prior to July 1, 2018 and sold in this fiscal year under the terms of article 63; updating the loss of the fiscal period 2018, until the limit of the tax result of the exercise, following the methodology provided in article 25 and updating the costs of inventories as established in article 59, all articles mentioned belong to the income tax law (ordered text in 2019).

The non-application of the aforementioned mechanisms would have implied that the tax to be paid amounted to ARS 1,377, in this way the effective rate to be paid would have consumed a substantial portion of the income obtained by the taxpayer exceeding the reasonable limit of taxation, being configured in the opinion of the taxpayer and his tax and legal advisors an assumption of confiscation, an assumption that at the date of issuance of these Consolidated Financial Statements has not been validated or challenged by the Argentine Tax Authority or by higher courts. Together with the aforementioned income tax presentation, a multinote form was presented in which the application of the mechanisms was reported, arguing that the effective tax rate would represent a percentage that would exceed the reasonable limits of taxation, setting up a situation of confiscation, in violation of art. 17 of the National Constitution (according to doctrine of the judgment "Candy S.A. c/AFIP and another a/ protection action", judgment of 07/03/2009, Judgments 332:1571, and subsequent precedents).

The aforementioned legal doctrine of the national supreme court is fully applicable to the particular case of IRSA, since the application of the regulations that do not allow the application of the integral and systematic inflation adjustment would prevent, as happened in the "Candy case", recognizing the totality of the inflationary effect in its tax balance causing the company to pay taxes on fictitious income.

Notwithstanding what is detailed in the previous paragraph, and given the existing background, the taxpayer timely determined and accounted for the income tax for the fiscal year ended June 30, 2021 without considering the aforementioned adjustment mechanisms, considering that , in the opinion of their tax advisors, the Argentine Tax Authority could challenge the presentation and said challenge could be validated by higher courts because there is no uniform jurisprudence to date that irrefutably validates the taxpayer's position. In this sense, after the merger process detailed in Note 4.1, the Company's Board of Directors has reassessed, together with its tax advisors, the characteristics of the presentation, the existing background and the analysis that the taxpayer made in a timely manner, having concluded in the same sense and therefore it has decided to keep the liability accounted for, which at the closing date of these Consolidated Financial Statements with the computation of accrued interest amounts to ARS 1,743, and is disclosed in the item Income tax liabilities in the Consolidated Statements of Financial Position. As of the date of issuance of these Consolidated Financial Statements, the Company has not received any challenge or formal rejection by the Tax Authority.

The details of the provision for the Group’s income tax, is as follows:

	June 30, 2022			June 30, 2021			June 30, 2020
Current income tax		(16,508	)		(1,571	)		(633	)
Deferred income tax		13,738			(33,969	)		(15,539	)
Minimum presumed income tax		-			-			(333	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

The statutory taxes rates in the countries where the Group operates for all of the years presented are:

Tax jurisdiction	Income tax rate
Argentina	25% - 35%
Uruguay	0% - 25%
U.S.A.	0% - 40%
Bermuda / British Virgin Islands / Netherlands	0%
Israel	23% - 24%

Below is a reconciliation between income tax expense and the tax calculated applying the current tax rate, applicable in the respective countries, to profit before taxes for years ended June 30, 2022, 2021 and 2020:

	June 30, 2022			June 30, 2021			June 30, 2020
(Profit) / loss from continuing operations at tax rate applicable in the respective countries		(13,080	)		3,442			(26,437	)
Permanent differences:
Share of (profit) / loss of associates and joint ventures		(155	)		(2,155	)		2,189
Tax loss carryforwards recovery / (unrecognized tax loss carryforwards)		4,649			(3,872	)		(2,055	)
Inflation adjustment permanent difference		15,637			5,774			4,088
Tax rate differential		-			(24,902	)		6,115
Non-taxable profit, non-deductible expenses and others		(328	)		(131	)		4,360
Fiscal transparency		-			(275	)		372
Tax inflation adjustment		(9,493	)		(13,421	)		(5,137	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

Deferred tax assets and liabilities of the Group as of June 30, 2022 and 2021 will be recovered as follows:

	June 30, 2022		June 30, 2021
Deferred income tax asset to be recovered after more than 12 months		963		2,622
Deferred income tax asset to be recovered within 12 months		1,031		7,250
Deferred income tax assets		1,994		9,872

	June 30, 2022			June 30, 2021
Deferred income tax liability to be recovered after more than 12 months		(100,056	)		(121,046	)
Deferred income tax liability to be recovered within 12 months		(452	)		(830	)
Deferred income tax liability		(100,508	)		(121,876	)
Deferred income tax liabilities, net		(98,514	)		(112,004	)

The movement in the deferred income tax assets and liabilities during the years ended June 30, 2022 and 2021, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

	06.30.21			Charged / (Credited) to the statements of income			Revaluation surplus reserve			06.30.22
Assets
Investment properties and Property, plant and equipment		838			(793	)		-			45
Trade and other payables		1,234			279			-			1,513
Tax loss carry-forwards		382			82			-			464
Borrowings		1,765			(1,594	)		-			171
Trade and other receivables		4,814			(5,008	)		-			(194	)
Others		839			(844	)		-			(5	)
Subtotal assets		9,872			(7,878	)		-			1,994
Liabilities
Investment properties and Property, plant and equipment		(94,812	)		5,809			(248	)		(89,251	)
Trade and other receivables		(5,393	)		5,011			-			(382	)
Investments		(4	)		(27	)		-			(31	)
Tax inflation adjustment		(21,318	)		11,106			-			(10,212	)
Borrowings		3			(3	)		-			-
Intangible assets		(123	)		(557	)		-			(680	)
Others		(229	)		277			-			48
Subtotal liabilities		(121,876	)		21,616			(248	)		(100,508	)
Assets (Liabilities), net		(112,004	)		13,738			(248	)		(98,514	)

	06.30.20			Currency translation adjustment			Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income			Revaluation surplus reserve			Deconsolidation			Incorporation by business combination		06.30.21
Assets
Investment properties and Property, plant and equipment		730			121			92			-			(105	)		-		838
Trade and other payables		13,096			3,995			(80	)		-			(15,777	)		-		1,234
Tax loss carry-forwards		21,049			3,804			(9,649	)		-			(14,822	)		-		382
Borrowings		379			-			1,386			-			-			-		1,765
Trade and other receivables		162			-			4,652			-			-			-		4,814
Others		3,834			856			(438	)		-			(3,475	)		62		839
Subtotal assets		39,250			8,776			(4,037	)		-			(34,179	)		62		9,872
Liabilities
Investment properties and Property, plant and equipment		(127,242	)		(2,447	)		(11,825	)		(136	)		46,838			-		(94,812	)
Trade and other receivables		(2,271	)		-			(3,122	)		-			-			-		(5,393	)
Investments		(175	)		-			171			-			-			-		(4	)
Tax inflation adjustment		(10,644	)		-			(10,674	)		-			-			-		(21,318	)
Borrowings		(2,350	)		(779	)		154			-			2,978			-		3
Intangible assets		(5,895	)		(1,934	)		275			-			7,431			-		(123	)
Others		2,424			(862	)		(4,457	)		-			2,666			-		(229	)
Subtotal liabilities		(146,153	)		(6,022	)		(29,478	)		(136	)		59,913			-		(121,876	)
Assets (Liabilities), net		(106,903	)		2,754			(33,515	)		(136	)		25,734			62		(112,004	)

Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefits through future taxable profits is probable. Tax loss carry-forwards may have expiration dates or may be permanently available for use by the Group depending on the tax jurisdiction where the tax loss carry-forward is generated. Tax loss carry forwards in Argentina and Uruguay generally expire within 5 years.

As of June 30, 2022, the Group's recognized tax loss carry forward prescribed as follows:

Date	Total
2022		9
2023		130
2024		261
2025		441
2026		308
2027		747
Total		1,896

In order to fully realize the deferred tax asset, the respective companies of the Group will need to generate future taxable income. To this aim, a projection was made for future years when deferred assets will be deductible. Such projection is based on aspects such as the expected performance of the main macroeconomic variables affecting the business, production issues, pricing, yields and costs that make up the operational flows derived from the regular exploitation of fields and other assets of the group, the flows derived from the performance of financial assets and liabilities and the income generated by the Group’s strategy of crop rotation. Such strategy implies the purchase and/or development of fields in marginal areas or areas with a high upside potential and periodical sale of such properties that are deemed to have reached their maximum appreciation potential.

Based on the estimated and aggregate effect of all these aspects on the companies’ performance, Management estimates that as at June 30, 2022, it is probable that the Company will realize all of the deferred tax assets.

The Group did not recognize deferred income tax assets (tax loss carry forwards) of ARS 185 as of June 30, 2022 and ARS 3,056 as of June 30, 2021. Although the Management estimates that the business will generate sufficient income, pursuant to IAS 12, management has determined that, as a result of the recent loss history and the lack of verifiable and objective evidence due to the subsidiary’s results of operations history, there is sufficient uncertainty as to the generation of sufficient income to be able to offset losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

XML

Leases

12 Months Ended

Jun. 30, 2022

22. Leases

22. Leases

The Group as lessee

In the ordinary course of business, the Group leases property or spaces for administrative or commercial use. The agreements entered into include several clauses, including but not limited, to fixed, variable or adjustable payments. Some leases were agreed upon with related parties (Note 30).

The future minimum payments that the Group must pay under leases are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		-		-		5,685
Later than one year and not later than five years		-		-		12,971
Later than five years		-		-		5,907
		-		-		24,563

The Group as lessor

Leases:

In the Shopping Malls segment and Offices segment, the Group enters into operating lease agreements typical in the business. Given the diversity of properties and lessees, and the various economic and regulatory jurisdictions where the Group operates, the agreements may adopt different forms, such as fixed, variable, adjustable leases, etc. For example, operating lease agreements with lessees of Shopping Malls generally include escalation clauses and contingent payments. Income from leases are recorded in the Statement of Income and Other Comprehensive Income under rental and service income in all of the filed fiscal years.

Rental properties are considered to be investment property. Book value is included in Note 9. The future minimum proceeds under non-cancellable operating leases from Group’s shopping malls, offices and other buildings are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		2,709		6,597		1,796
Later than one year and not later than five years		7,066		13,215		50,938
Later than five years		1,274		3,716		23,899
		11,049		23,528		76,633

Revenues from contingent rent for the fiscal years ended June 30, 2022, 2021 and 2020 were as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
Contingent rent		8,296		2,360		3,604

XML

Revenues

12 Months Ended

Jun. 30, 2022

Revenues

23. Revenues

23. Revenues

	June 30, 2022		June 30, 2021		June 30, 2020
Rental and services income		27,281		18,093		28,092
Sales of trading properties and developments		505		1,679		1,796
Revenue from hotels operation and tourism services		4,299		1,510		4,980
Total Group’s revenues		32,085		21,282		34,868

XML

Expenses by nature

12 Months Ended

Jun. 30, 2022

24. Expenses by nature

24. Expenses by nature

The Group disclosed expenses in the Consolidated Statements of Income and Other Comprehensive Income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following tables provide additional disclosure regarding expenses by nature and their relationship to the function within the Group as of June 30, 2022, 2021 and 2020:

	Costs		General and administrative expenses		Selling expenses			Total as of June 30, 2022
Cost of sale of goods and services		609		-		-			609
Salaries, social security costs and other personnel expenses		4,311		2,012		151			6,474
Depreciation and amortization		620		307		4			931
Fees and payments for services		252		675		505			1,432
Maintenance, security, cleaning, repairs and others		3,497		445		3			3,945
Advertising and other selling expenses		1,327		-		312			1,639
Taxes, rates and contributions		1,092		213		1,277			2,582
Director´s fees		-		1,316		-			1,316
Leases and service charges		257		84		7			348
Allowance for doubtful accounts, net		-		-		(32	)		(32	)
Other expenses		151		225		10			386
Total as of June 30, 2022		12,116		5,277		2,237			19,630

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2021
Cost of sale of goods and services		1,639		-		-		1,639
Salaries, social security costs and other personnel expenses		3,671		1,896		239		5,806
Depreciation and amortization		675		367		9		1,051
Fees and payments for services		208		374		484		1,066
Maintenance, security, cleaning, repairs and others		2,754		448		4		3,206
Advertising and other selling expenses		587		-		66		653
Taxes, rates and contributions		837		204		1,290		2,331
Director´s fees		-		1,386		-		1,386
Leases and service charges		310		59		23		392
Allowance for doubtful accounts, net		-		-		318		318
Other expenses		82		214		10		306
Total as of June 30, 2021		10,763		4,948		2,443		18,154

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2020
Cost of sale of goods and services		1,540		-		-		1,540
Salaries, social security costs and other personnel expenses		4,692		1,968		330		6,990
Depreciation and amortization		800		369		5		1,174
Fees and payments for services		369		928		108		1,405
Maintenance, security, cleaning, repairs and others		4,247		558		8		4,813
Advertising and other selling expenses		1,269		-		169		1,438
Taxes, rates and contributions		1,112		220		1,530		2,862
Director´s fees		-		1,005		-		1,005
Leases and service charges		328		57		48		433
Allowance for doubtful accounts, net		-		-		761		761
Other expenses		192		308		29		529
Total as of June 30, 2020		14,549		5,413		2,988		22,950

XML

Cost of goods sold and services provided

12 Months Ended

Jun. 30, 2022

25. Cost of goods sold and services provided

25. Cost of goods sold and services provided

	Total as of June 30, 2022			Total as of June 30, 2021			Total as of June 30, 2020
Inventories at the beginning of the year (*)		3,001			29,200			24,625
Purchases and expenses		12,631			2,278			141,883
Capitalized finance costs		-			-			30
Currency translation adjustment		(157	)		(9,485	)		20,350
Transfers		-			(502	)		495
Deconsolidation		-			(7,727	)		(382	)
Incorporated by business combination		-			-			651
Inventories at the end of the year (*)		(3,359	)		(3,001	)		(29,200	)
Total costs		12,116			10,763			158,452

The following table presents the composition of the Group’s inventories for the years ended June 30, 2022 and 2021:

	Total as of June 30, 2022		Total as of June 30, 2021
Real estate		3,234		2,883
Others		125		118
Total inventories at the end of the year (*)		3,359		3,001

(*) Includes trading properties and inventories.

XML

Other operating results, net

12 Months Ended

Jun. 30, 2022

26. Other operating results, net

26. Other operating results, net

	June 30, 2022			June 30, 2021			June 30, 2020
Result from purchase / sale of subsidiary and associates		-			59			(15	)
Donations		(150	)		(223	)		(244	)
Lawsuits and other contingencies		(276	)		(142	)		(269	)
Administration fees		37			16			37
Interest and discount generated by operating credits		128			157			417
Others		322			(8	)		269
Total other operating results, net		61			(141	)		195

XML

Financial results, net

12 Months Ended

Jun. 30, 2022

27. Financial results, net

27. Financial results, net

	June 30, 2022			June 30, 2021			June 30, 2020
Finance income:
- Interest income		463			591			491
- Dividend income		-			1			34
Total finance income		463			592			525
Finance costs:
- Interest expenses		(8,291	)		(11,437	)		(14,524	)
- Other finance costs		(902	)		(1,299	)		(923	)
Subtotal finance costs		(9,193	)		(12,736	)		(15,447	)
Capitalized finance costs		-			768			277
Total finance costs		(9,193	)		(11,968	)		(15,170	)
Other financial results:
- Fair value gain of financial assets and liabilities at fair value through profit or loss, net		1,454			8,720			828
- Exchange rate differences, net		14,406			11,512			(15,386	)
- Gain / (loss) from repurchase of NCN		1,460			(156	)		228
- Gain / (loss) from derivative financial instruments, net		33			(740	)		(901	)
- Other financial results		439			(121	)		-
Total other financial results		17,792			19,215			(15,231	)
- Inflation adjustment		2,789			(2,370	)		(26	)
Total financial results, net		11,851			5,469			(29,902	)

XML

Earnings per share

12 Months Ended

Jun. 30, 2022

Profit / (loss) per share attributable to equity holders of the parent: (ii)

28. Earnings per share

28. Earnings per share

Below is a reconciliation between the weighted-average number of common shares outstanding and the diluted weighted-average number of common shares.

	June 30, 2022		June 30, 2021		June 30, 2020
Weighted - average outstanding shares		809		588		575
Adjustments for calculation of diluted earnings per share
Treasury shares		2		-		2
Warrants		80		-		-
Weighted - average diluted common shares		891		588		577

(a) Basic

Basic earnings per share amounts are calculated in accordance with IAS 33 "Earning per share" by dividing the profit attributable to equity holders of the Group by the weighted average number of common shares outstanding during the year.

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		809		588			575
Basic earnings per share		42.73		(83.41	)		61.00

(b) Diluted

Diluted earnings per share amounts are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential shares. The Group holds treasury shares and, as of fiscal year 2021, warrants associated with incentive plans with potentially dilutive effect.

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year per share attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		891		588			579
Diluted earnings per share		38.79		(83.41	)		60.66

XML

Employee benefits and share-based payments

12 Months Ended

Jun. 30, 2022

29. Employee benefits and share-based payments

29. Employee benefits and share-based payments

Incentive Plan

The Group has an equity incentives plan (“Incentive Plan”), created in September 30, 2011, which is aimed at certain employees, directors and top management of the Company and Cresud (the “Participants”). Engagement was voluntary and by invitation of the Board of Directors.

Under the Incentive Plan, over the years 2011, 2012 and 2013, Participants will be entitled to receive shares ("Contributions") of the Company and Cresud based on a percentage of their annual bonus for the years 2011, 2012 and 2013, providing they remain as employees of the Company for at least five years, among other conditions required, to qualify for such Contributions. Contributions shall be held by the Company and Cresud, and as the conditions established by the Plan are verified, such contributions shall be transferred to the Participants. In spite of this, the economic rights of the shares in the portfolio assigned to said participants will be received by them.

Regarding the shares to be delivered by Cresud to the employees of the company, and for the shares to be delivered by IRSA to Cresud employees, the Group accounts the active or passive position measured at the closing date of the financial statements.

For the fiscal years ended June 30, 2021, the Group has incurred a charge related to the Incentive Plan of ARS 1.0.

Movements in the number of matching shares outstanding under the incentive plan corresponding to the Company´s contributions are as follows:

	June 30, 2022		June 30, 2021		June 30, 2020
At the beginning		2.1		2.4		2.8
Granted		-0.1		-0.3		-0.4
At the end		2		2.1		2.4

The fair value determined at the time of granting the plan after obtaining all the corresponding authorizations was ARS 25.3 per share of IRSA. This fair value was estimated by taking into account the market price of the shares of the Company on said date.

Defined contribution plan

The Group operates a defined contribution plan (the “Plan”) which covers certain selected managers. The Plan was effective as from January 1, 2006. Participants can make pre-tax contributions to the Plan of up to 2.5% of their monthly salary (“Base Contributions”) and up to 15% of their annual bonus (“Extraordinary Contributions”). Under the Plan, the Group matches employee contributions to the plan at a rate of 200% for Base Contributions and 300% for Extraordinary Contributions.

All contributions are invested in funds administered outside of the Group. Participants or their assignees, as the case may be, will have access to the 100% of the Company contributions under the following circumstances:

(i)	ordinary retirement in accordance with applicable labor regulations;
(ii)	total or permanent incapacity or disability;
(iii)	death.

In case of resignation or termination without fair cause, the manager will receive the Group’s contribution only if he or she has participated in the Plan for at least 5 years.

Contributions made by the Group under the Plan amount to ARS 101 and ARS 94 for the fiscal years ended June 30, 2022 and 2021, respectively.

XML

Related party transactions

12 Months Ended

Jun. 30, 2022

Related party transactions

30. Related party transactions

30. Related party transactions

In the normal course of business, the Group conducts transactions with different entities or parties related to it.

Remunerations of the Board of Directors

The Business Companies Act of Argentina (Law N° 19,550), provides that the remuneration to the Board of Directors, where it is not set forth in the Company’s by-laws, shall be fixed by the Shareholders' Meetings. The maximum amount of remuneration that the members of the Board are allowed to receive, including salary and other performance-based remuneration of permanent technical-administrative functions, may not exceed 25% of the profits.

Such maximum amount is limited to 5% where no dividends are distributed to the Shareholders, and will be increased proportionately to the distribution, until reaching such cap where total profits are distributed, except that such remunerations were expressly agreed by the Shareholders' Meeting, for which purpose the matter must be included as one of the items on the agenda.

Some of the Group's Directors are hired under the Employment Contract Law N° 20,744. This Act rules on certain conditions of the work relationship, including remuneration, salary protection, working hours, vacations, paid leaves, minimum age requirements, workmen protection and forms of suspension and contract termination. The remuneration of directors for each fiscal year is based on the provisions established by the Business Companies Act, taking into consideration whether such directors perform technical-administrative functions and depending upon the results recorded during the fiscal year. Once such amounts are determined, they should be approved by the Shareholders’ Meeting.

Senior Management remuneration

The members of the Group’s senior management are appointed and removed by the Board of Directors and perform functions in accordance with the instructions delivered by the Board itself.

The Company’s Senior Management is composed of as follows:

Name	Date of Birth	Position	Current position since
Eduardo S. Elsztain	01/26/1960	General Manager	1991
Arnaldo Jawerbaum	08/13/1966	Operating Manager	2022
Jorge Cruces	11/07/1966	Investment Manager	2020
Matías I. Gaivironsky	02/23/1976	Administrative and Financial Manager	2011

The total remuneration paid to members of senior management for their functions consists of a fix salary that takes account of the manager's backgrounds capacity and experience, plus an annual bonus based on their individual performance and the Group's results. Members of senior management participate in defined contributions and share-based incentive plans that are described in Note 29.

The aggregate compensation to the Senior Management for the year ended June 30, 2022 amounts to ARS 77.

Corporate Service Agreement with Cresud

Considering that IRSA and Cresud have operating overlapping areas, the Board of Directors considered it convenient to implement alternatives that allow reducing certain fixed costs of its activity, in order to reduce its impact on operating results, taking advantage of and optimizing the individual efficiencies of each of the companies in the different areas that make up the operational administration.

For this purpose, on June 30, 2004, a Framework Agreement for the Exchange of Corporate Services (“Framework Agreement”) was signed, between IRSA, Cresud and IRSA CP. On December 22, 2021, were held the shareholders' meeting approving the merger by absorption of IRSA and IRSA CP, for which IRSA, in its capacity as absorbing company, is the successor of all the rights and obligations assumed by IRSA CP by the Framework Agreement. The last modification to the Framework Agreement was made on July 12, 2022.

Under this Framework Agreement, corporate services are currently provided for different areas including: Corporate Human Resources, Administration and Finance, Planning, Institutional Relations, Compliance and others.

Under this agreement, the companies entrusted to an external consultant the semi-annual review and evaluation of the criteria used in the process of apportionment of costs to be settled for corporate services, as well as the distribution bases and supporting documentation used in the aforementioned process, through the preparation of a semi-annual report.

It should be noted that the operation under comment allows Cresud and IRSA to maintain absolute independence and confidentiality in their strategic and commercial decisions, being the allocation of costs and benefits made on the basis of operational efficiency and equity, without pursuing individual economic benefits for each of the companies.

Offices and Shopping Malls spaces leases

The offices of our President are located at 108 Bolivar, in the Autonomous City of Buenos Aires. The property has been rented to Isaac Elsztain e Hajes S.A., a company controlled by some family members of Eduardo Sergio Elsztain, our president, and to Hamonet S.A., a company controlled by Fernando A. Elsztain, one of our directors, and some of his family members.

Furthermore, we also let various spaces in our shopping malls (stores, stands, storage space or advertising space) to third parties and related parties such as BHSA.

Donations granted to Fundación IRSA and Fundación Museo de los Niños

Fundación IRSA is a non-profit charity institution that seeks to support and generate initiatives concerning education, the promotion of corporate social responsibility and the entrepreneurial spirit of the youth. It carries out corporate volunteering programs and fosters donations by the employees. The main members of Fundación IRSA's Board of Directors are: Eduardo S. Elsztain (President); Saul Zang (Vice President I), Alejandro Elsztain (Vice President II) and Mariana C. de Elsztain (secretary). It funds its activities with the donations made by us and Cresud.

Fundación Museo de los Niños is a non-profit association, created by the same founders of Fundación IRSA and its Management Board is formed by the same members as Fundación IRSA. Fundación Museo de los Niños acts as special vehicle for the development of "Museo de los Niños, Abasto" and "Museo de los Niños, Rosario". On October 29, 1999, our shareholders approved the award of the agreement “Museo de los Niños, Abasto” to Fundación Museo de los Niños. On October 31, 1997, IRSA CP entered into an agreement with Fundación IRSA whereby it loaned 3,800 square meters of the area built in the Abasto Shopping mall for a total term of 30 years, and on November 29, 2005, shareholders of IRSA CP approved another agreement entered into with Fundación Museo de los Niños whereby 2,670.11 square meters built in the Alto Rosario shopping mall were loaned for a term of 30 years. Fundación IRSA has used the available area to house the museum called “Museo de los Niños, Abasto” an interactive learning center for kids and adults, which was opened to the public in April 1999.

Legal Services

The Group hires legal services from Estudio Zang, Bergel & Viñes, at which Saúl Zang was a founding partner and sits at the Board of Directors of the Group companies.

Purchase and sale of goods and/or service hiring

In the normal course of its business and with the aim of making resources more efficient, in certain occasions purchases and/or hires services which later sells and/or recovers for companies or other related parties, based upon their actual utilization.

Sale of advertising space in media

Our company and our related parties frequently enter into agreements with third parties whereby we sell/acquire rights of use to advertise in media (TV, radio stations, newspapers, etc.) that will later be used in advertising campaigns. Normally, these spaces are sold and/or recovered to/from other companies or other related parties, based on their actual use.

Purchase and sale of financial assets

The Group usually invests excess cash in several instruments that may include those issued by related companies, acquired at issuance or from unrelated third parties through secondary market deals.

Investment in investment funds managed by BACS

The Group invests part of its liquid funds in mutual funds managed by BACS among other entities.

Borrowings

In the normal course of its activities, the Group enters into diverse loan agreements or credit facilities between the group’s companies and/or other related parties. These borrowings generally accrue interests at market rates.

Financial and service operations with BHSA

The Group works with several financial entities in the Argentine market for operations including, but not limited to, credit, investment, purchase and sale of securities and financial derivatives. Such entities include BHSA and its subsidiaries. BHSA and BACS usually act as underwriters in Capital Market transactions. In addition, we have entered into agreements with BHSA, who provides collection services for our shopping malls.

The following is a summary presentation of the balances with related parties as of June 30, 2022 and 2021:

Item	June 30, 2022			June 30, 2021
Trade and other receivables		4,382			4,888
Investments in financial assets		2,834			2,583
Borrowings		(166	)		(1,479	)
Lease liabilities		-			(10	)
Trade and other payables		(1,114	)		(740	)
Total		5,936			5,242

The following is a summary of the results with related parties for the years ended June 30, 2022, 2021 and 2020:

Related party	June 30, 2022	June 30, 2021	June 30, 2020		Description of transaction
BACS	58	128	126		Financial operations
Metropolitan 885 Third Av. LLC (1)	31	25	(11)		Financial operations
BHN Vida S.A	25	25	25		Leases and/or rights of use
BHN Seguros Generales S.A.	24	10	25		Leases and/or rights of use
Lipstick Management LLC	20	14	(36)		Financial operations
Comparaencasa Ltd.	192	-	-		Financial operations
La Rural S.A.	-	(25)	-		Leases and/or rights of use
Condor	27	418	-		Financial operations
Otras asociadas y negocios conjuntos	136	19		82	Financial operations
	(14)	(13)	23		Leases and/or rights of use
	31	-	(323)		Corporate services
Total associates and joint ventures	530	601	(89)
Cresud	61	59	48		Leases and/or rights of use
	(1,139)	(1,169)	(1,154)		Corporate services
	(25)	540	551		Financial operations
Total parent company	(1,103)	(570)	(555)
Helmir	1	157	-		Financial operations
Total subsidiaries of parent company	1	157	-
Directors	(1,316)	(1,386)	(1,005)		Fees and remunerations
Senior Management	(77)	(72)	(74)		Fees and remunerations
Yad Leviim LTD	113	-	-		Corporate services
Otras (2)	6	-	-		Corporate services
	10	(26)	-		Leases and/or rights of use
	17	(3)	-		Financial operations
	(63)	(87)	-		Donations
	(15)	-	(57)		Fees and remuneration
	(49)	(49)	(72)		Legal services
Total others	(1,374)	(1,623)	(1,208)
Total at the end of the year	(1,946)	(1,435)	(1,852)

(1)   On January 31, 2022 Metropolitan 885 3rd Av, LLC was liquidated. 

(2)   It includes Isaac Elsztain e Hijos, CAMSA, Hamonet S.A., Ramat Hanassi, Estudio Zang, Bergel & Viñes, and Fundación IRSA. 

The following is a summary of the transactions with related parties for the years ended June 30, 2022 and 2021:

Related party	June 30, 2022	June 30, 2021	Description of the operation
Cresud	-	289	Dividends granted
Total dividends distribution	-	289
Quality	41	(49)	Capital contributions
Condor	865	-	Exchange of shares
Puerto Retiro	-	(20)	Capital contributions
Comparaencasa	129	-	Capital contributions
Total capital contributions	1,035	(69)
Condor	3,586	-	Dividends received
Total other transactions	3,586	-

XML

Foreign currency assets and liabilities

12 Months Ended

Jun. 30, 2022

31. Foreign currency assets and liabilities

31. Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Item / Currency (3)	Amount (1)		Peso exchange rate (2)		Total as of 06.30.22		Total as of 06.30.21
Assets
Trade and other receivables
US Dollar		27		125.03		3,413		5,329
Euros		-		130.88		11		39
Receivables with related parties:
US Dollar		18		125.23		2,264		3,152
Total trade and other receivables						5,688		8,520
Investments in financial assets
US Dollar		14		125.03		1,723		1,107
Pounds		1		130.95		98		164
New Israel Shekel		16		35.93		574		1,000
Investments with related parties:
US Dollar		23		125.23		2,864		3,676
Total investments in financial assets						5,259		5,947
Cash and cash equivalents
US Dollar		74		125.03		9,224		1,728
Euros		-		130.88		1		2
Total cash and cash equivalents						9,225		1,730
Total Assets						20,172		16,197
Liabilities
Trade and other payables
US Dollar		9		125.23		1,073		1,983
Euros		-		131.40		1		52
Payables to related parties:
US Dollar		-		125.23		60		87
Total Trade and other payables						1,134		2,122
Borrowings
US Dollar		499		125.23		62,503		82,145
Borrowings with related parties
US Dollar		1		125.23		139		2,386
Total Borrowings						62,642		84,531
Derivative financial instruments
US Dollar		-		125.23		16		95
Total derivative financial instruments						16		95
Lease liabilities
US Dollar		9		125.23		1,115		1,282
Lease liabilities with related parties
US Dollar		-		125.23		-		10
Total lease liabilities						1,115		1,292
Total Liabilities						64,907		88,040

XML

Results from discontinued operations

12 Months Ended

Jun. 30, 2022

32. Results from discontinued operations

32. Results from discontinued operations

The results of discontinued operations include the operations of IDBD / DIC which were deconsolidated in previous years (see Note 4.G to the Consolidated Financial Statements as of June 30, 2021) and the results of the comparative fiscal years have been reclassified.

	June 30, 2022		June 30, 2021			June 30, 2020
Revenues		-		62,057			255,065
Costs		-		(50,353	)		(182,872	)
Gross profit		-		11,704			72,193
Net loss from fair value adjustment of investment properties		-		(45	)		(7,363	)
General and administrative expenses		-		(7,143	)		(24,309	)
Selling expenses		-		(6,805	)		(33,302	)
Impairment of associates and joint ventures		-		-			(6,084	)
Other operating results, net		-		2,322			879
Profit from operations		-		33			2,014
Share of profit of associates and joint ventures		-		1,178			3,567
Profit before financial results and income tax		-		1,211			5,581
Finance income		-		862			3,316
Finance cost		-		(11,316	)		(41,940	)
Other financial results		-		749			(19,789	)
Financial results, net		-		(9,705	)		(58,413	)
Loss before income tax		-		(8,494	)		(52,832	)
Income tax		-		454			(413	)
Loss from operations that are discontinued		-		(8,040	)		(53,245	)
(Loss) / gain for loss of control		-		(6,593	)		45,133
Loss from discontinued operations		-		(14,633	)		(8,112	)
(Loss) / profit for the year from discontinued operations attributable to:
Equity holders of the parent		-		(11,562	)		(13,984	)
Non-controlling interest		-		(3,071	)		5,872
Loss per share from discontinued operations attributable to equity holders of the parent:
Basic		-		(19.65	)		(24.30	)
Diluted		-		(19.65	)		(24.30	)

XML

Other relevant events of the year

12 Months Ended

Jun. 30, 2022

33. Other relevant events of the year

33. Other relevant events of the year

Ordinary Shareholders’ Meeting

On October 21, 2021, the Ordinary Shareholders’ Meeting approved among others:

- Partially write off the special reserve in the amount of ARS 30,693 which, restated for inflation, amounts to the sum of ARS 50,332, and use it for the total absorption of the negative result for the fiscal year ended June 30, 2021.

Warrants exercise

During the present fiscal year, certain warrant holders exercised their right to acquire additional shares. As of June 30, 2022, USD 19,837 was received, for a converted warrants of 44,878 to common shares.

Economic context in which the Group operates

The Company does business in a complex framework due to the macroeconomic conditions, whose main variables have recently shown high volatility, and also due to regulatory, social and political conditions, both at a national and international level.

Its operating income may be affected by the fluctuations in the inflation rate and in the exchange rate at which the peso is converted into other currencies, mainly the US dollar, the variations in interest rates, which have an impact on the cost of capital, the changes in governmental policies, capital controls and other local and international political or economic events.

The main indicators of the Argentine economy are described below:

· In June 2022, the Monthly Economic Activity Estimator (“EMAE” in Spanish) reported by the National Institute of Statistics and Censuses (“INDEC” in Spanish), registered a variation of 6.4% compared to the same month of 2021, and 1.1% compared to the previous month.

· The annual retail inflation reached 63.98% in the last 12 months. The survey on market expectations prepared by the Argentine Central Bank in July 2022, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 90.2% i.a. for December 2022 and 76.6% for December 2023. Analysts participating in the REM forecast a rebound in economic activity in 2022, reaching an economic growth of 3.4%.

· In the period from June 2021 to June 2022, the Argentine peso depreciated 30.8% against the US dollar according to the wholesale average exchange rate of Banco de la Nación Argentina. Given the exchange restrictions in force since August 2019, as of June 30, 2022, there is an exchange gap of approximately 99.3% between the official price of the dollar and its price in parallel markets, which impacts the level of activity in the economy and affects the level of reserves of the Argentine Central Bank. Additionally, these exchange restrictions, or those that may be dictated in the future, could affect the Group’s ability to access the Single Free Exchange Market (“MULC” in Spanish) to acquire the necessary currencies to meet its financial obligations.

On March 3, 2022, the Central Bank of the Argentine Republic (“BCRA”) published the Communication “A” 7466 which establishes that those who register financial debts with capital maturities in foreign currency scheduled between June and December 2022, must submit a refinancing plan to the BCRA based on the following criteria: (a) that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the principal amount due in the indicated period above, and (b) that the rest of the capital is, at least, refinanced with a new external debt with an average life of 2 years, provided that the new debt is settled in the exchange market.

After the end of the fiscal year, on July 21, 2022, the BCRA published the Communication “A” 7552 through which it includes within the limit of USD 100,000 in available liquid foreign assets that entities may have to access the Foreign Exchange Market, the holding of Argentine deposit certificates representing foreign shares (“Cedears”). Likewise, the rule establishes that the holding of Cedears acquired until 07.21.2022 that exceed said combined limit of USD 100,000 may be held until 08.19.2022. After this period, the companies must get rid of the Cedears positions when they exceed the indicated limit.

COVID-19 Pandemic

In December 2019, a new strain of coronavirus (SARS-COV-2), which caused severe acute respiratory syndrome (COVID-19) appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary measures to contain the spread of the virus, including imposing travel restrictions and closing borders, closing businesses deemed non-essential, instructing residents to practice social distancing, implementing lockdowns, among other measures. The ongoing pandemic and these extraordinary government measures are affecting global economic activity, resulting in significant volatility in global financial markets.

On March 3, 2020, the first case of COVID-19 was registered in the country and as of today, approximately 9,500,000 cases of infections had been confirmed in Argentina, by virtue of which the Argentinian Government implemented a series of health measures of social, preventive and mandatory lockdown at the national level with the closure of non- essential activities, including shopping malls, as well as the suspension of flights and border closures, for much of the years 2020 and 2021.

Since the beginning of fiscal year 2022, and until the date of presentation of the financial statements, the Company’s shopping malls are fully operational, as well as the office buildings, despite the remote work modality that some tenants continue to apply. Regarding hotels, operating since December 2020, the sector is recovering thanks to domestic tourism and the government’s incentives to promote it after the prolonged restrictions on air flows that directly affected the influx of international tourism.

The effects of the coronavirus pandemic are not expected to affect business continuity and the Group’s ability to meet its financial commitments for the next twelve months. The Group is closely monitoring the situation and taking all necessary measures to preserve human life and the Group’s businesses.

XML

Subsequent events

12 Months Ended

Jun. 30, 2022

34. Subsequent events

34. Subsequent events

Series XIV Notes (Exchange of Series II Notes)

As consequence of the regulations established by the BCRA, on July 6, 2022, the company completed the exchange of its Series II Notes, originally issued by IRSA CP, in an aggregate principal amount of USD 360 million, maturing on March 23, 2023. On July 6, 2022, the expiration of the exchange was announced, USD 239 million of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued for an amount of USD 171.2 million and the Series II Notes were partially canceled, the outstanding principal amount is USD 121 million.

The exchange offered two alternatives:

-Option A: Cash payment for up to 30% of the total amount of participation in the exchange, and the difference to complete the exchanged face value, in Series XIV Notes with a premium of 1,015 times. For each USD 1,000 tendered, the bondholder received USD 493.18 million in cash and USD 514.42 million in Series XIV Notes. Under Option A, 60.83% of the notes were accepted.

-Option B: For each USD 1,000 of Series II Notes the bondholder received 1,030 of Series XIV Notes. Under Option B, 39.17% of the notes were accepted.

In both options, the interest accrued as of settlement date was paid.

Series XIV Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%, with interest payable semi-annually on June 22 and December 22 of each year, until expiration. Amortization will be in annual installments payable on June 22 of each year, each for 17.5% from 2024 to 2027 and the remaining 30% on June 22, 2028. The issue price was 100%.

Shares Buyback Program extension and completion

As a subsequent event, on July 12, 2022, the Board of Directors has resolved to extend the term of the shares repurchase plan that was determined by the Board of Directors on March 11, 2022, for an additional period of one hundred and twenty (120) days, maintaining the other terms and conditions that were duly informed.

On September 22, 2022, the Company completed the share buyback program, having acquired the equivalent of 9,419,623 IRSA common shares, which represent approximately 99.51% of the approved program and 1.16% of the outstanding shares.

“Della Paolera 261” floor sale

On August 17, the Company has sold and transferred one floor of the tower “200 Della Paolera” for a total leasable area of approximately 1,184 square meters and 8 parking spaces located in the building. The transaction price was set at approximately USD 12.6 million (USD/square meters 10,600), which had already been paid.

XML

Summary of significant accounting policies (Policies)

12 Months Ended

Jun. 30, 2022

Basis of preparation of the Consolidated Financial Statement

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB and interpretations issued by the IFRIC. All IFRS applicable as of the date of these Consolidated Financial Statements have been applied.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting fiscal year, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude whether economy is categorized as hyperinflationary the provisions of IAS 29, details a series of factors to be considered, including the existence of a cumulative inflation rate in the three years preceding the measurement that approximates or exceeds 100%. It is for this reason that, in accordance with IAS 29, Argentina must be considered a country with highly inflationary economy starting July 1, 2018.

In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the measuring unit current at the end of the reporting period set forth in IAS 29 in their annual, interim and special financial statements closed on or after December 31, 2018. Thus, these Consolidated Financial Statements have been reported in terms of the measuring unit current as of June 30, 2022 accordingly to IAS 29.

Pursuant to IAS 29, the Financial Statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the date of the Financial Statements. All the amounts included in the Consolidated Statements of Financial Position which are not stated in terms of the measuring unit current as of the date of the Financial Statements should be restated applying the general price index. All items in the Consolidated Statements of Income and Other Comprehensive Income should be stated in terms of the measuring unit current as of the date of the Financial Statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the Financial Statements.

Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the FACPCE based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).

The principal inflation adjustment procedures are the following:

- Monetary assets and liabilities that are already recorded at the measuring unit of the balance sheet closing date are not restated because they are already stated in terms of the measuring unit current as of the date of the financial statements.

- Non-monetary assets, and liabilities recorded at cost as of the balance sheet date and equity component are restated by applying the relevant adjustment coefficients.

- All items in the Consolidated Statements of Income and Other Comprehensive Income are restated applying the relevant conversion factors.

- The effect of inflation on the Group’s net monetary position is included in the Consolidated Statements of Income and Other Comprehensive Income under Financial results, net, in the item “Inflation adjustment”.

- Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.

Upon initially applying inflation adjustment, the equity accounts were restated as follows:

- Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later. The resulting amount was included in the “Comprehensive Inflation adjustment of share capital and treasury shares adjustment” account.

- Translation difference was restated in current terms.

- Other comprehensive income / (loss) was restated as from each accounting allocation.

- The other reserves in the Consolidated Statements of Income and Other Comprehensive Income were restated from the initial application.

The inflation index to be used and in accordance with the FACPCE Resolution No. 539/18, it will be determined based on the Wholesale Price Index (IPIM) until 2016, considering for the months of November and December 2015 the average variation of Consumer Price indices (CPI) of the Autonomous City of Buenos Aires, because during those two months there were no national IPIM measurements. Since January 2017, the National Consumer Price Index (National CPI) will be considered. The tables below show the evolution of these indices in the last two fiscal years and as of June 30, 2022 according to official statistics (INDEC) following the guidelines described in Resolution 539/18.

Annual price variation	June 30, 2020			June 30, 2021			June 30, 2022			Cumulative as of June 30, 2022 (3 years)
		43	%		50	%		64	%		252	%

As a consequence of the aforementioned, these Consolidated Financial Statements as of June 30, 2022 were restated in accordance with IAS 29.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its Consolidated Statement of Financial Position according to the operating cycle of each activity. Current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax liabilities) are presented separately from each other and from other assets and liabilities, classified as current and non-current, respectively.

(c) Presentation currency

The Consolidated Financial Statements are presented in millions of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to “Peso amounts” or “ARS”, are millions of Argentine Pesos, references to “US$” or “US Dollars” are millions of US Dollars and references to "NIS" are millions of New Israeli Shekel.

(d) Fiscal year-end

The fiscal year begins on July 1st and ends on June 30 of each year.

(e) Accounting criteria

See Notes 2.2 to 2.25 with the accounting policies of each item.

(f) Reporting cash flows

The Group reports operating activities cash flows using the indirect method. Interest paid is presented within financing activities. Interest received for financing of operating activities is presented within operating activities whereas the rest is presented within investing activities. The acquisitions and disposals of investment properties are disclosed within investing activities as this most appropriately reflects the Group’s business activities. Cash flows in respect to trading properties are disclosed within operating activities because these items are sold in the ordinary course of business.

(g) Use of estimates

The preparation of Financial Statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the year. Actual results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimations and significant judgments are described in Note 3.

New accounting standards

The following standards and amendments have been issued by the IASB. Below we outline the standards and amendments that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group

Standards and amendment	Description	Date of mandatory adoption for the Group in  the year ended on
Covid-19 - related Rent Concessions - Amendments to IFRS 16.	As a result of the COVID-19 pandemic, rent concessions have been granted to lessees. Such concessions might take a variety of forms, including payment holidays and deferral of lease payments. In May 2020, the IASB made an amendment to IFRS 16 Leases which provides lessees with an option to treat qualifying rent concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concessions as variable lease payments in the period in which they are granted. Entities applying the practical expedients must disclose this fact, whether the expedient has been applied to all qualifying rent concessions or, if not, information about the nature of the contracts to which it has been applied, as well as the amount recognized in profit or loss arising from the rent concessions.	06-30- 2021

The adoption of these amendment has not had a material impact for the Group.

Standards and amendments not yet adopted by the Group:

Standards and amendment	Description	Date of mandatory adoption for the Group in the year ended on
Amendment to IAS 1.	The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g., the receipt of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities, particularly for entities that previously considered management’s intentions to determine classification and for some liabilities that can be converted into equity. They must be applied retrospectively in accordance with the normal requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.	06-30-2024
Amendment to IAS 37.	The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. Before recognizing a separate provision for an onerous contract, the entity recognizes any impairment loss that has occurred on assets used in fulfilling the contract.	06-30-2023
Property, plant and equipment: Proceeds before intended use - Amendments to IAS 16.	The amendment to IAS 16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment.	06-30-2023
Reference to the Conceptual Framework – Amendments to IFRS 3	Minor amendments were made to IFRS 3 Business Combinations to update the references to the Conceptual Framework for Financial Reporting and add an exception for the recognition of liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation 21 Levies. The amendments also confirm that contingent assets should not be recognized at the acquisition date.	06-30-2023
Annual Improvements to IFRS 2018-2020	The following improvements were finalized in May 2020: •        IFRS 9 Financial Instruments: clarifies which fees should be included in the 10% test for derecognition of financial liabilities. •        IFRS 16 Leases – amendment of illustrative example 13 to remove the illustration of payments from the lessor relating to leasehold improvements, to remove any confusion about the treatment of lease incentives. •        IFRS 1 First-time Adoption of International Financial Reporting Standards – allows entities that have measured their assets and liabilities at carrying amounts recorded in their parent’s books to also measure any cumulative translation differences using the amounts reported by the parent. This amendment will also apply to associates and joint ventures that have taken the same IFRS 1 exemption.	06-30-2023

Deferred tax - Amendments to IAS 12.	The IASB issued amendments to IAS 12 that clarifies how companies account for deferred tax related to assets and liabilities that arise from a single transaction. The effects of these amendments essentially mean that the initial recognition exception is not available for transactions that involve the recognition of both an asset and a liability, such as leases and decommissioning obligations.	06-30-2024
Accounting Policy Disclosures - Amendment to IAS 1 and Practical Statement 2	The IASB amended IAS 1 to require entities to disclose their material accounting policies rather than their significant accounting policies. The amendments define what it implies and how to identify material accounting policy information. They also clarify that it is not necessary to disclose immaterial accounting policy. If it is disclosed should not overshadow material accounting information. To support this amendment, the IASB also amended IFRS Practical Statement 2 on "Making materiality related judgments" to advise on how to apply the concept of materiality to disclosure of accounting policies.	06-30-2024
Definition of accounting estimates - Amendments to IAS 8.	The amendment to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" clarifies how entities should distinguish changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events, as well as to the current exercise.	06-30-2024
Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28	The IASB has made limited scope amendments to IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures. The amendments clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the nonmonetary assets sold or contributed to an associate or joint venture constitute a ‘business’ (as defined in IFRS 3 Business Combinations). Where the non-monetary assets constitute a business, the investor will recognize the full gain or loss on the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is recognized by the investor only to the extent of the other investor’s interests in the associate or joint venture. The amendments apply prospectively.	N/A. In December 2015 the IASB decided to defer the application date of this amendment until the IASB has finalized its research project on the equity method.

Management is evaluating the impact that these new standards and amendments will have for the Group.

At the date of issuance of these consolidated financial statements, there are no other standards or modifications issued by the IASB which must be analyzed.

Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity but does have capacity to define its relevant activities because of de-facto control.

The Group uses the acquisition method of accounting for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on a case-by-case base.

The excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the Consolidated Statements of Income and Other Comprehensive Income as “Bargain purchase gains”.

The Group conducts its business through several operating and investment companies, the main ones are listed below:

			% of ownership interest held by the Group
Name of the entity	Country	Main activity	06.30.2022			06.30.2021			06.30.2020
IRSA's direct interest:
E-Commerce Latina S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Hoteles Argentinos S.A.U.	Argentina	Hotel		100.00	%		100.00	%		100.00	%
Inversora Bolívar S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Llao Llao Resorts S.A. (1)	Argentina	Hotel		50.00	%		50.00	%		50.00	%
Nuevas Fronteras S.A.	Argentina	Hotel		76.34	%		76.34	%		76.34	%
Palermo Invest S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Ritelco S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Tyrus S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment		50.00	%		50.00	%		50.00	%
Arcos del Gourmet S.A.	Argentina	Real estate		90.00	%		90.00	%		90.00	%
Emprendimiento Recoleta S.A.	Argentina	Real estate		53.68	%		53.68	%		53.68	%
Fibesa S.A. (2)	Argentina	Real estate		100.00	%		100.00	%		100.00	%
Panamerican Mall S.A.	Argentina	Real estate		80.00	%		80.00	%		80.00	%
Shopping Neuquén S.A.	Argentina	Real estate		99.95	%		99.95	%		99.95	%
Torodur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
EHSA	Argentina	Investment		70.00	%		70.00	%		70.00	%
Centro de Entretenimiento La Plata	Argentina	Real estate		100.00	%		100.00	%		100.00	%
We Are Appa S.A.	Argentina	Design and software development		93.63	%		93.63	%		69.69	%
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment		99.50	%		99.50	%		97.04	%
IRSA International LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Jiwin S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Liveck S.A. (4)	British Virgin Islands	Investment		100.00	%		100.00	%		100.00	%
Real Estate Strategies LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment		100.00	%		100.00	%		100.00	%
DFL's and DN BV's direct interest:
IDB Development Corporation Ltd. (3)	Israel	Investment		-			-			100.00	%
Dolphin IL Investment Ltd.	Israel	Investment		100.00	%		100.00	%		100.00	%
DIL's direct interest:
Discount Investment Corporation Ltd. (3)	Israel	Investment		-			-			83.72	%
IDBD's direct interest:
IDB Tourism (2009) Ltd. (3)	Israel	Tourism services		-			-			100.00	%
IDB Group Investment Inc (3)	Israel	Investment		-			-			100.00	%
DIC's direct interest:
Property & Building Corporation Ltd. (3)	Israel	Real estate		-			-			72.40	%
Cellcom Israel Ltd. (3)	Israel	Telecommunications		-			-			46.20	%
Elron Electronic Industries Ltd. (3)	Israel	Investment		-			-			61.06	%
Bartan Holdings and Investments Ltd. (3)	Israel	Investment		-			-			55.68	%
Epsilon Investment House Ltd. (3)	Israel	Investment		-			-			68.75	%
Mehadrin Ltd. (3)	Israel	Agricultural		-			-			43.75	%
PBC's direct interest:
Gav-Yam Bayside Land Corporation Ltd. (3)	Israel	Real estate		-			-			-
Ispro The Israeli Properties Rental Corporation Ltd. (3)	Israel	Real estate		-			-			100.00	%
Matam - Scientific Industries Center Haifa Ltd. (3)	Israel	Real estate		-			-			50.10	%
Hadarim Properties Ltd. (3)	Israel	Real estate		-			-			100.00	%
Property & Building (Commercial Centers) Ltd. (3)	Israel	Real estate		-			-			100.00	%
PBC USA Investments Inc (3)	USA	Real estate		-			-			100.00	%

(1)	The Group has consolidated the investment in Llao Llao Resorts S.A. and UT IRSA and Galerías Pacífico considering its equity interest and a shareholder agreement that confers it majority of votes in the decision-making process.
(2)	Includes interest held through Ritelco S.A. and Torodur S.A.
(3)	Control was lost in September 2020. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.
(4)	Includes Tyrus’ and IRSA S.A.’s equity interests.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant. In quantitative terms, the Group considers significant those investments that individually represent at least 20% of the total equity attributable to non-controlling interest in subsidiaries at each year-end. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each of them has for the Group.

Summarized financial information on subsidiaries with material non-controlling interests and other information are included in Note 7.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – i.e., as transactions with the owners in their capacity as owners. The recorded value corresponds to the difference between the fair value of the consideration paid and/or received and the relevant share acquired and/or transferred of the carrying value of the net assets of the subsidiary.

(c) Disposal of subsidiaries with loss of control

When the Group ceases to have control any retained interest in the entity is re-measured at its fair value at the date when control is lost, with changes in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, usually representing an interest between 20% and at least 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, except as otherwise indicated as explained below. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

As of each year-end or upon the existence of evidence of impairment, a determination is made as to whether there is any objective indication of impairment in the value of the investments in associates. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the Associates and its carrying value and recognizes the amount adjacent to "Share of profit / (loss) of associates and joint ventures " in the Statement of Income and Other Comprehensive Income.

Profit and losses resulting from transactions between the Group and the associate are recognized in the Group's financial statements only to the extent of the interests in the associates of the unrelated investor. Unrealized losses are eliminated unless the transaction reflects signs of impairment of the value of the asset transferred. The accounting policies of associates are modified to ensure uniformity within Group policies.

Note 8 includes summary financial information and other information of the Group's associates.

The Group takes into account quantitative and qualitative aspects to determine which investments in associates are considered significant.

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method of accounting, pursuant to which interests in joint ventures are initially recognized in the Consolidated Statements of Financial Position at cost and adjusted thereafter to recognize the Group’s share of post-acquisition profits or losses and other comprehensive income in the Statements of Income and Other Comprehensive Income.

The Group determines at each reporting date whether there is any objective evidence that the investment in a joint ventures is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes such difference in "Share of profit / (loss) of associates and joint ventures" in the Consolidated Statements of Income and Other Comprehensive Income.

Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (“CODM”), responsible for allocating resources and assessing performance. The operating segments are described in Note 6.

Foreign currency translation

(a) Functional and presentation currency

Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities nominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the Consolidated Statements of Income and Other Comprehensive Income within other financial income, as appropriate, unless they have been capitalized.

(c) Group companies

The results and financial position of all the Group entities that have a functional currency different from the presentation currency (none of which has the currency of a hyperinflationary economy) are translated into the presentation currency as follows:

(i)	assets, liabilities and goodwill for each Statement of Financial Position presented are translated at the closing rate at the date of that financial position;
(ii)	income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and
(iii)	all resulting exchange differences are recognized in the Consolidated Statements of Income and Other Comprehensive Income.

The accounting policy of the Group consists in accounting for the translation difference of its subsidiaries by the “step-by-step” method according to IAS 21.

Investment properties

Investment properties are those properties owned by the Group that are held either to earn long-term rental income or for capital appreciation, or both, and that are not occupied by the Group for its own operations. Investment property also includes property that is being constructed or developed for future use as investment property. The Group also classifies as investment properties land whose future use has not been determined yet. The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and undeveloped land.

Additionally, the Group reflects the value of economically “buildable potentials” in those properties that meet the following requirements: a) have buildable potential that are legally viable based on the application of approved Planning Codes and / or specific Ordinances. and b) have a commercial viability either due to their realization market or their constructive feasibility (see Note 9). If due to regulatory or legal regulations and commercial and/or economic aspects, the buildable potential can only be made by the Group and it has not been built yet, the asset value is not recognized.

When a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment properties under IAS 40 “Investment Properties”.

Investment properties are measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in condition to start operating.

Direct expenses related to lease contract negotiation (such as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. Capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only where activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. On the other hand, properties under construction for which the fair value cannot be determined reliably, but for which the Group expects it to be determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of office buildings and land reserves is based on comparable active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset (Level 2).

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations (Level 3).

As required by CNV 576/10 Resolution, valuations are performed as of the financial position date by accredited externals appraisers who have recognized professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the Consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditures are capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the Consolidated Statements of Income and Other Comprehensive Income under the line item “Net (loss) / gain from fair value adjustment of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The transfer of investment properties to other items is carried out at the fair value of the asset on the date of change of use and said fair value is the cost of the property for the purposes of subsequent accounting according to the applicable standard. If an owner-occupied property is converted to investment property, the Group values the property at the corresponding carrying amount prior to transfer and classifies it as investment property at fair value on the date of change of use. The Group will treat any difference, as of that date, between the determined carrying amount of the property and the fair value, in the same way in which it would record a revaluation applying IAS 16. A transfer from inventories to Investment properties, will be accounted by recognizing the result between its previous book value and its fair value and any difference between the fair value of the property at that date and its previous carrying amount will be recognized in the result of the fiscal year.

The Group may sell its investment property when it considers that such property no longer forms part of the lease business. The carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the Consolidated Statements of Income and Other Comprehensive Income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposals. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are accounted for when title to property passes to the buyer and the buyer intends to make the respective payment. In the case of conditional agreements, disposal are accounted for when the conditions the agreements is subject to has been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value. The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "Other operating results, net" in the Consolidated Statements of Income and Other Comprehensive Income at the time they are incurred.

Property, plant and equipment

This category primarily comprises, buildings or portions of a building used for administrative purposes, machines, computers, and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

The Group has also several hotel properties. Based on the respective contractual arrangements with hotel managers and / or given their direct operators nature, the Group considers it retains significant exposure to the variations in the cash flows of the hotel operations, and accordingly, hotels are treated as owner-occupied properties and classified under "Property, plant and equipment".

All property, plant and equipment (“PPE”) is stated at acquisition cost restated as of the closing date less accumulated depreciation and impairment, if any. The acquisition cost includes expenditures which are directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and the property is in conditions to start operating.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized. The carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged as incurred in the Consolidated Statements of Income and Other Comprehensive Income. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

The remaining useful life as of June 30, 2022 is as follows:

Buildings and facilities	Between 5 and 50 years
Machinery and equipment	Between 3 and 24 years
Communication networks	Between 4 and 20 years
Others	Between 3 and 25 years

As of each fiscal year-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each fiscal year-end, the residual useful life of assets is estimated and adjusted, if necessary. The book amount of an asset is reduced to its recoverable value if the book value greater than its estimated recoverable value.

Gains from the sale of these assets are recognized when control is transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied. Gains and losses on disposals are determined by comparing the proceeds net of direct expenses related to such sales, with the carrying amount as of the date of each transaction. Gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

When assets of property, plant and equipment are transferred to investment property, the difference between the value at cost transferred and the fair value of the investment property is allocated to a reserve within equity.

Leases

Leases are recorded pursuant to IFRS 16. The Group recognizes an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of a lease in accordance with the standard and the rate used will be the implicit rate in the contract if it can be determined.

A Group company is the lessor:

Properties leased out to tenants under operating leases are included in “Investment Properties” in the Consolidated Statement of Financial Position. See Note 2.21 for the recognition of rental income.

A Group company is the lessee:

The Group acquires certain specific assets (especially machinery, computer equipment and real property exploitation concessions) under leases pursuant to IFRS 16. Assets so acquired are recorded as an asset at the present value of the minimum future lease payments (the rate used by the Group is between 10.61% and 52.94%). Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Leases falling within the IFRS 16 exemption, where the Group acts as lessee are charged to results at the time they accrue. They mainly include contracts for less than one year and/or for non-material items.

Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

Goodwill is not amortized but tested for impairment at each fiscal year-end, or more frequently if there is an indication of impairment.

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units (“CGU”). In order to determine whether any impairment loss should be recognized, the book value of CGU or CGU groups is compared against its recoverable value. Net book value of CGU and CGU groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are not reversed in a subsequent period.

The recoverable amount of a CGU is the higher of the fair value less costs-to-sell and the value-in-use. The fair value is the amount at which a CGU may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from CGU or CGU groups.

Goodwill is assigned to the Group's cash generating units on the basis of operating segments. The recoverable amount of a cash generating unit is determined based on fair value calculations. These calculations use the price of the CGU assets and they are compared with the book values plus the goodwill assigned to each cash generating unit.

No material impairment was recorded as a result of the analysis performed. (Note 12).

(b) Computer software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed 3 years.

(c) Branding and client relationships

This relates to the fair value of brands and client relationships arising at the time of the business combination with IDBD. They are subsequently valued at cost, less the accumulated amortization or impairment. Client relationships have an average twelve-year useful life, while one of the brands have an indefinite useful life and the other ten-year useful life.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where it normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and are not adjusted later, unless there is any sign of impairment.

At each year-end, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any of such signs exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. For intangible assets with indefinite useful lives, the Group annually reviews the existence of an impairment, or more frequently if signs of impairment are identified.

Trading properties

Trading properties comprises those properties either intended for sale or in the process of construction for subsequent sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

Inventories

Inventories include assets held for sale in the ordinary course of the Group's business activities, assets in production or construction process for sale purposes, and materials, agricultural products, supplies or other assets held for consumption in the process of producing sales and/or services.

Inventories are measured at the lower of cost or net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business less selling expenses. It is determined on an ongoing basis, taking into account the product type and aging, based on the accumulated prior experience with the useful life of the product. The Group periodically reviews the inventory and its aging and books an allowance for impairment, as necessary.

The cost of consumable supplies, materials and other assets is determined using the weighted average cost method, the cost of inventories of mobile phones, related accessories and spare parts is priced under the moving average method, and the cost of the remaining inventories is priced under the first in, first out (FIFO) method.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories and materials are initially recognized at cash price, and the difference being charged as finance cost.

Financial instruments

The Group classifies financial assets in the following categories: those to be measured subsequently at fair value, and those to be measured at amortized cost. This classification depends on whether the financial asset is an equity investment or a debt investment.

Debt investments

A debt investment is classified at amortized cost only if both of the following criteria are met: (i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt investment are considered in determining whether the cash derives solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria mentioned in the previous paragraph is not met, the debt instrument is classified at fair value through profit or loss. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the Consolidated Statements of Income and Other Comprehensive Income.

Equity investments

All equity investments, which are neither subsidiaries nor associate companies nor joint venture of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity investments through changes in profit or loss.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value though profit or loss are expensed in the Consolidated Statements of Income and Other Comprehensive Income.

In general, the Group uses the transaction price to ascertain the fair value of a financial instrument on initial recognition. In the other cases, the Group records a gain or loss on initial recognition only if the fair value of the financial instrument can be supported by other comparable transactions observable in the market for the same type of instrument or if based on a technical valuation that only inputs observable market data. Unrecognized gains or losses on initial recognition of a financial asset are recognized later on, only to the extent they arise from a change in factors (including time) that market participants would consider upon setting the price.

Gains/losses on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized, and during the amortization process under the effective interest method. The Group is required to reclassify all affected debt investments when and only when its business model for managing those assets changes.

The Group assesses at the end of each reporting period the expected losses for impairment of a financial asset or group of financial assets measured at amortized cost. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Derivative financial instruments and hedging activities and options

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide coverage. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used put and call options, foreign currency future and forward contracts and interest rate swaps, as appropriate.

The Group’s policy is to apply hedge accounting where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting year.

Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

An allowance for doubtful accounts is recorded based on the expected loss of the receivables portfolio. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

For significant non-homogeneous receivables, the Group generally measures impairment based on an individual analysis. When they are evaluated individually, the Group recognizes the provision for impairment as the difference between the book value of the receivable and the present value of future cash flows, taking into account the existing guarantees, if applicable. This allowance for doubtful accounts considers the financial situation of the debtor, their resources, the payment history and, if applicable, the value of the guarantees provided.

For non-significant homogeneous receivables, the Group assesses the impairment by grouping these receivables based on characteristics of similar risks, considering the type of asset, the delinquency condition and other relevant factors. The Group considers different factors to calculate the amount of the allowance for impairment, which, in its opinion, represents the expected losses over the life of the receivables. When determining the allowance for doubtful accounts, the Group considers, among other factors: (i) the delinquency of the receivables, (ii) the history of losses and the general behavior of the clients, (iii) the trends in volumes and terms of the receivables, (iv) the Group's experience in credit management, (v) national and local economic trends, (vi) credit concentrations by individual size and type of credit, and (vii) the effect of other external factors.

The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of a separate account, and the amount of the loss is recognized in the Consolidated Statements of Income and Other Comprehensive Income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the Consolidated Statements of Income and Other Comprehensive Income.

Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

Provisions

Provisions are recognized when: (i) the Group has a present (legal or constructive) obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The Group bases its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel´s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized in the Consolidated Statements of Income and Other Comprehensive Income.

Employee benefits

(a) Defined contribution plans

The Group operates a defined contribution plan, which is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current year or prior periods. The contributions are recognized as employee benefit expense in the Consolidated Statements of Income and Other Comprehensive Income in the fiscal year they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or as a result of an offer made to encourage voluntary termination as a result of redundancy.

(c) Bonus plans

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Defined benefit plans

The Group’s net obligation concerning defined benefit plans are calculated on an individual basis for each plan, estimating the future benefits employees have gained in exchange for their services in the current and prior periods. The benefit is disclosed at its present value, net of the fair value of the plan assets. Calculations are made on an annual basis by a qualified actuary.

(e) Share-based payments

The fair value of share-based payments is measured at the date of grant. The Group measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioral considerations.

The fair value of the share-based payment is expensed and charged to income under the straight-line method over the vesting period in which the right to the equity instrument becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of equity instruments expected to vest. Such estimate is revised if subsequent information available indicates that the number of equity instruments expected to vest differs from original estimates.

Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred income. Income tax is recognized in the Consolidated Statements of Income and Other Comprehensive Income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax expense is calculated on the basis of the tax laws enacted or substantially enacted at the date of the Statements of Financial Position in the countries where the Company and its subsidiaries operate and generate taxable income. The Group periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the deferred tax liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the Statements of Financial Position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence, deferred tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Statements of Financial Position, dividends have been accrued as receivable a binding agreement to distribute past earnings in future has been entered into by the subsidiary or there are sale plans in the foreseeable future.

Entities in Argentina were subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. Any excess of the MPIT over the income tax is carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, recognizes the MPIT as a current or non-current receivable, within “Trade and other receivables” in the Consolidated Statements of Financial Position.

The minimum presumed income tax was repealed by Law N ° 27,260 in its article 76 for the periods that begin as of January 1,2019.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less and that they are subject to a negligible risk of change in value. Bank overdrafts are not included.

Revenue recognition

The group identifies contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.

Revenue from satisfaction of performance obligations at a given time is recognized when the client obtains control of the committed asset or service considering whether there is a right to collection, if the client has the physical possession, if the client has the legal right and if they have the transferred the risks and benefits.

In accordance with IFRS 15, the Group recognizes revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Group has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed, depending on the case, when the risk transfers are completed, the collection is reasonably assured and there is a price already determined.

Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Group uses the input method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.

The Group's revenue is recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.

· Rental and services - Shopping malls portfolio

Revenues derived from business activities developed in the Group’s shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to the Group’s lessees.

The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect the Group.

The Group has determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. The Group concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. The Group considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. The Group reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of the Group’s investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where the Group’s investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of the Group’s tenants only have stores in shopping malls with a few or none street stores. See details in Note 22.

Lessees of rental space located within shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 12% of the lessees’ gross sales. In addition, in accordance with the standard terms of the typical commercial lease, the Base Rent is usually increased at that time by the Consumer Price Index (CPI) in Argentina.

In addition, some leases include provisions that set forth variable rent based on specific volumes of sales revenue and other types of ratios.

Rental income from shopping mall, admission rights and commissions, are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, i.e. lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent increases are recognized when such increases have been agreed with tenants.

Tenants in the Group’s shopping mall are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the Consolidated Statements of Income and other Comprehensive Income on a straight-line basis over the term of the respective lease agreement.

The Group acts as its own leasing agent for arranging and closing lease agreements for its shopping malls properties and consequently earns letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by the Group are treated as additional rental income and are recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the lease agreements.

The Group’s lease contracts also provide that common area maintenance charges and collective promotion funds of the Group’s shopping malls are borne by the corresponding lessees, generally on a proportionally basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Under the terms of the leases, lessees also agree to participate in collective promotion funds (“CPF”) to be used in advertising and promoting the Group’s shopping malls. Each lessee’s participation generally equals a percentage calculated based on the monthly accrued rental prices. Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.

On the other hand, revenue includes income from managed operations and other services such as car parking spaces. Those revenues are recognized on an accrual basis as services are provided.

· Rental and services - Offices and other rental properties

Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.

Rental income from offices and other rental properties is recognized in the Consolidated Statements of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

A substantial portion of the Group’s leases require the tenant to reimburse the Group for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. The Group manages its own rental properties. The Group makes the original payment for these expenses, which are then reimbursed by the lessees. The Group considers that it acts as a principal in these cases. The Group accrues reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

· Revenue from communication services and sale of communication equipment

Revenue derived from the use of communication networks by the Group, including mobile phones, Internet services, international calls, fixed line calls, interconnection rates, roaming service rates and television, are recognized when the service is provided, proportionally to the extent the transaction has been realized, and provided all other criteria have been met for revenue recognition.

Revenue from the sale of mobile phone cards is initially recognized as deferred revenue and then recognized as revenue as they are used or upon expiration, whichever takes place earlier.

A transaction involving the sale of equipment to a final user normally also involves a service sale transaction. In general, this type of sale is performed without a contractual obligation by the client to consume telephone services for a minimum amount over a predetermined period. As a result, the Group records the sale of equipment separately of the performance obligations and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services is recognized and accounted for as they are provided over time. When the client is bound to make a minimum consumption of services during a predefined period, the contract formalizes a transaction of several elements and, therefore, revenue from the sale of equipment is recorded at an amount that should not exceed its fair value, and is recognized upon delivery of the equipment to the client and provided the criteria for recognition are met. The Group ascertains the fair value of individual elements, based on the price at which it is normally sold, after taking into account the relevant discounts.

Revenue derived from long-term contracts is recognized at the present value of future cash flows, discounted at market rates prevailing on the transaction date. Any difference between the original credit and its net present value is accounted for as interest income over the credit term.

These revenues have been recognized in discontinued operations. See Note 4.G to the Consolidated Financial Statements as of June 30, 2021.

· Sales and Development activities

Revenue from sale and developments of real estate properties primarily comprises the results from the sale of trading properties. Results from the sale of properties are recognized only when the control has been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion, the Group also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. The Group generally requires the developer to issue insurances or to mortgage the land in favor of the Group as performance guarantee. In the event the developer does not fulfil its obligations, the Group forecloses on the land through the execution of the mortgage or the surety insurances, together with a cash penalty.

The Group determines that its barters have commercial substance and that the conditions for recording the income from the transfer of parcels or land are met at the time the swap operation is carried out. Revenues are recorded at the fair value of the goods delivered, adjusted as appropriate by the amount of cash received. In exchange for the parcels or land transferred, the Group generally receives cash and / or a right to receive future units that are part of the projects to be built on the parcels or land exchanged. This right is initially recognized at cost (this being the fair value of the land transferred) as an intangible asset in the statements of financial position. Said intangible asset is not adjusted in subsequent years unless it is impaired.

The Group may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the control is transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.

However, the Group may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to the Group with the remaining amount being paid when the developer completes the property and transfers it to the Group, and the Group in turn transfers it to the buyer. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, the Group is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. The Group may then seek legal remedy against the developer for non-performance of its obligations under the agreement. The Group exercised judgment and considers that the most significant risk associated with the asset the Group holds (i.e. the right to receive the apartments) consisting of the non-fulfillment of the developer's obligations (i.e. to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.

· Revenue from hotels

Revenue income from hotel operations mainly includes room services, gastronomy and other services. Revenue from the sale of products is recognized when the product is delivered and the significant risks and rewards of ownership are transferred to the buyer. Revenue from the sale of services is recognized when the service is provided. When the sale of products or services is covered by a customer loyalty program, revenues billed to the customer are allocated between the product or service sold and the award credits granted by the third party that awards the program points. The consideration assigned to the credits, which is measured in reference to the fair value of the points awarded, is deferred and recognized as income when the customer redeems the credits, that is, when a prize is received in exchange for converting the program points.

Cost of sales

The cost of sales, includes the acquisition costs and the operational and management costs for shopping malls and offices held by the Group as part of its real estate investments.

The Group’s cost of sales in relation to the supply of communication services mainly includes the costs to purchase equipment, salaries and related expenses, service costs, royalties, ongoing license dues, interconnection and roaming expenses, cell tower lease costs, depreciation and amortization expenses and maintenance expenses directly related to the services provided and they are classified in discontinued operations.

The cost of sales of supermarkets, includes the acquisition costs for the products less discounts granted by suppliers, as well as all expenses associated with storing and handling inventories and is classified as discontinued operations.

Cost of borrowings and capitalization

The costs for general and specific loans that are directly attributable to the acquisition, construction or production of suitable assets for which a prolonged period is required to place them in the conditions required for their use or sale, are capitalized as part of the cost of those assets until the assets are substantially ready for use or sale. The general loan costs are capitalized according to the average debt rate of the Group. Foreign exchange differences for loans in foreign currency are capitalized if they are considered an adjustment to interest costs. The interest earned on the temporary investments of a specific loan for the acquisition of qualifying assets are deducted from the eligible costs to be capitalized. The rest of the costs from loans are recognized as expenses in the period in which they are incurred.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new common shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any Group’s subsidiary purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such common shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

Comparability of information

The balances as of June 30, 2021 and 2020 that are disclosed for comparative purposes were restated in accordance with IAS 29. See Note 2.1. Certain items from prior fiscal years have been reclassified for consistency purposes. Additionally, the Group has redefined the operating segments, see Note 6 to these Consolidated Financial Statements.

XML

Summary of significant accounting policies (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of evolution of these indices

Annual price variation	June 30, 2020			June 30, 2021			June 30, 2022			Cumulative as of June 30, 2022 (3 years)
		43	%		50	%		64	%		252	%

Schedule of business through several operating and investment companies

			% of ownership interest held by the Group
Name of the entity	Country	Main activity	06.30.2022			06.30.2021			06.30.2020
IRSA's direct interest:
E-Commerce Latina S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Hoteles Argentinos S.A.U.	Argentina	Hotel		100.00	%		100.00	%		100.00	%
Inversora Bolívar S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Llao Llao Resorts S.A. (1)	Argentina	Hotel		50.00	%		50.00	%		50.00	%
Nuevas Fronteras S.A.	Argentina	Hotel		76.34	%		76.34	%		76.34	%
Palermo Invest S.A.	Argentina	Investment		100.00	%		100.00	%		100.00	%
Ritelco S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Tyrus S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
U.T. IRSA y Galerias Pacifico (1)	Argentina	Investment		50.00	%		50.00	%		50.00	%
Arcos del Gourmet S.A.	Argentina	Real estate		90.00	%		90.00	%		90.00	%
Emprendimiento Recoleta S.A.	Argentina	Real estate		53.68	%		53.68	%		53.68	%
Fibesa S.A. (2)	Argentina	Real estate		100.00	%		100.00	%		100.00	%
Panamerican Mall S.A.	Argentina	Real estate		80.00	%		80.00	%		80.00	%
Shopping Neuquén S.A.	Argentina	Real estate		99.95	%		99.95	%		99.95	%
Torodur S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
EHSA	Argentina	Investment		70.00	%		70.00	%		70.00	%
Centro de Entretenimiento La Plata	Argentina	Real estate		100.00	%		100.00	%		100.00	%
We Are Appa S.A.	Argentina	Design and software development		93.63	%		93.63	%		69.69	%
Tyrus S.A.'s direct interest:
DFL and DN BV	Bermuda’s / Netherlands	Investment		99.50	%		99.50	%		97.04	%
IRSA International LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Jiwin S.A.	Uruguay	Investment		100.00	%		100.00	%		100.00	%
Liveck S.A. (4)	British Virgin Islands	Investment		100.00	%		100.00	%		100.00	%
Real Estate Strategies LLC	USA	Investment		100.00	%		100.00	%		100.00	%
Efanur S.A.'s direct interest:
Real Estate Investment Group VII LP (REIG VII)	Bermuda’s	Investment		100.00	%		100.00	%		100.00	%
DFL's and DN BV's direct interest:
IDB Development Corporation Ltd. (3)	Israel	Investment		-			-			100.00	%
Dolphin IL Investment Ltd.	Israel	Investment		100.00	%		100.00	%		100.00	%
DIL's direct interest:
Discount Investment Corporation Ltd. (3)	Israel	Investment		-			-			83.72	%
IDBD's direct interest:
IDB Tourism (2009) Ltd. (3)	Israel	Tourism services		-			-			100.00	%
IDB Group Investment Inc (3)	Israel	Investment		-			-			100.00	%
DIC's direct interest:
Property & Building Corporation Ltd. (3)	Israel	Real estate		-			-			72.40	%
Cellcom Israel Ltd. (3)	Israel	Telecommunications		-			-			46.20	%
Elron Electronic Industries Ltd. (3)	Israel	Investment		-			-			61.06	%
Bartan Holdings and Investments Ltd. (3)	Israel	Investment		-			-			55.68	%
Epsilon Investment House Ltd. (3)	Israel	Investment		-			-			68.75	%
Mehadrin Ltd. (3)	Israel	Agricultural		-			-			43.75	%
PBC's direct interest:
Gav-Yam Bayside Land Corporation Ltd. (3)	Israel	Real estate		-			-			-
Ispro The Israeli Properties Rental Corporation Ltd. (3)	Israel	Real estate		-			-			100.00	%
Matam - Scientific Industries Center Haifa Ltd. (3)	Israel	Real estate		-			-			50.10	%
Hadarim Properties Ltd. (3)	Israel	Real estate		-			-			100.00	%
Property & Building (Commercial Centers) Ltd. (3)	Israel	Real estate		-			-			100.00	%
PBC USA Investments Inc (3)	USA	Real estate		-			-			100.00	%

Schedule of useful life

Buildings and facilities	Between 5 and 50 years
Machinery and equipment	Between 3 and 24 years
Communication networks	Between 4 and 20 years
Others	Between 3 and 25 years

XML

Significant judgments, key assumptions and estimates (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of complexity, judgment or estimations involved in their application

Estimation	Main assumptions	Potential implications	Main references
Control, joint control or significant influence	Judgment relative to the determination that the Group holds an interest in the shares of investees (considering the existence and influence of significant potential voting rights), its right to designate members in the executive management of such companies (usually the Board of directors) based on the investees’ bylaws; the composition and the rights of other shareholders of such investees and their capacity to establish operating and financial policies for investees or to take part in the establishment thereof.	Accounting treatment of investments as subsidiaries (consolidation) or associates (equity method)	Note 2.3
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	Should any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 8 – Investments in associates and joint ventures Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 10.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 21 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Improper recognition of charges / reimbursements of the allowance for bad debt.	Note 15 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: ·     Discounted projected income by interest rate ·     Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. ·     Comparable market multiple (EV/GMV ratio). ·     Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 14 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions
Qualitative considerations for determining whether or not the replacement of the debt instrument involves significantly different terms	The entire set of characteristics of the exchanged debt instruments, and the economic parameters represented therein: Average lifetime of the exchanged liabilities; Extent of effects of the debt terms (linkage to index; foreign currency; variable interest) on the cash flows from the instruments.	Classification of a debt instrument in a manner whereby it will not reflect the change in the debt terms, which will affect the method of accounting recording.	Note 14 – Financial instruments by category

XML

Financial risk management and fair value estimates (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of net carrying amounts of the Company's financial instruments broken down by the functional currencies

	Net monetary position liability
Functional currency	06.30.2022			06.30.2021
Argentine Peso		(44,735	)		(71,843	)
Total		(44,735	)		(71,843	)

Schedule of Group's derivative financial liabilities to the contractual maturity date.

June 30, 2022	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,625		103		40		26		40		4,834
Borrowings		61,682		10,470		2,150		115		317		74,734
Finance leases obligations		87		88		93		99		2,095		2,462
Derivative Financial Instruments		16		-		-		-		-		16
Total		66,410		10,661		2,283		240		2,452		82,046

June 30, 2021	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		More than 4 years		Total
Trade and other payables		4,900		171		2		-		-		5,073
Borrowings		25,268		66,631		9,338		346		304		101,887
Finance leases obligations		153		143		146		148		2,898		3,488
Derivative Financial Instruments		79		15		-		-		-		94
Total		30,400		66,960		9,486		494		3,202		110,542

Schedule of Group's key metrics in relation to managing its capital structure

	June 30, 2022			June 30, 2021
Gearing ratio (i)		31.99	%		50.12	%
Debt ratio (ii)		24.31	%		32.37	%

XML

Segment information (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Group's lines of business and a reconciliation between the results from operations as per segment information

	June 30, 2022
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		25,593			(233	)		6,725			-			32,085
Costs		(5,333	)		91			(6,874	)		-			(12,116	)
Gross profit / (loss)		20,260			(142	)		(149	)		-			19,969
Net gain from fair value adjustment of investment properties		12,328			1,322			-			-			13,650
General and administrative expenses		(5,327	)		27			-			23			(5,277	)
Selling expenses		(2,242	)		5			-			-			(2,237	)
Other operating results, net		28			-			56			(23	)		61
Profit / (loss) from operations		25,047			1,212			(93	)		-			26,166
Share of profit / (loss) of associates and joint ventures		466			(821	)		-			-			(355	)
Segment profit / (loss)		25,513			391			(93	)		-			25,811
Reportable assets		325,837			(1,939	)		-			48,894			372,792
Reportable liabilities		-			-			-			(203,065	)		(203,065	)
Net reportable assets		325,837			(1,939	)		-			(154,171	)		169,727

	June 30, 2021
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		16,585			(82	)		4,830			(51	)		21,282
Costs		(5,665	)		115			(5,213	)		-			(10,763	)
Gross profit / (loss)		10,920			33			(383	)		(51	)		10,519
Net (loss) / gain from fair value adjustment of investment properties		(12,542	)		(200	)		-			-			(12,742	)
General and administrative expenses		(5,049	)		22			-			79			(4,948	)
Selling expenses		(2,477	)		34			-			-			(2,443	)
Other operating results, net		(256	)		(33	)		176			(28	)		(141	)
Loss from operations		(9,404	)		(144	)		(207	)		-			(9,755	)
Share of loss of associates and joint ventures		(6,541	)		(641	)		-			-			(7,182	)
Segment loss		(15,945	)		(785	)		(207	)		-			(16,937	)
Reportable assets		335,973			(2,481	)		-			31,833			365,325
Reportable liabilities		-			-			-			(229,672	)		(229,672	)
Net reportable assets		335,973			(2,481	)		-			(197,839	)		135,653

	June 30, 2020
	Total			Joint ventures (1)			Expenses and collective promotion funds			Elimination of inter-segment transactions and non-reportable assets / liabilities (2)			Total as per statement of income / statement of financial position
Revenues		27,434			(150	)		7,638			(54	)		34,868
Costs		(6,725	)		132			(7,956	)		-			(14,549	)
Gross profit / (loss)		20,709			(18	)		(318	)		(54	)		20,319
Net gain from fair value adjustment of investment properties		83,728			(648	)		-			-			83,080
General and administrative expenses		(5,527	)		35			-			79			(5,413	)
Selling expenses		(3,029	)		41			-			-			(2,988	)
Other operating results, net		29			42			149			(25	)		195
Profit / (loss) from operations		95,910			(548	)		(169	)		-			95,193
Share of profit of associates and joint ventures		17,367			420			-			-			17,787
Segment profit / (loss)		113,277			(128	)		(169	)		-			112,980
Reportable assets (3)		1,498,210			(1,704	)		-			48,303			1,544,809
Reportable liabilities (3)		(987,692	)		-			-			(255,011	)		(1,242,703	)
Net reportable assets (3)		510,518			(1,704	)		-			(206,708	)		302,106

Schedule of lines of business of groups operations center

	June 30, 2022
	Shopping Malls			Offices			Sales and developments			Hotels			Others			Total
Revenues		17,334			3,041			746			4,300			172			25,593
Costs		(1,495	)		(293	)		(581	)		(2,456	)		(508	)		(5,333	)
Gross profit / (loss)		15,839			2,748			165			1,844			(336	)		20,260
Net gain / (loss) from fair value adjustment of investment properties		553			(5,391	)		17,106			-			60			12,328
General and administrative expenses		(2,862	)		(341	)		(1,058	)		(730	)		(336	)		(5,327	)
Selling expenses		(847	)		(78	)		(922	)		(340	)		(55	)		(2,242	)
Other operating results, net		(142	)		(23	)		(48	)		(59	)		300			28
Profit / (loss) from operations		12,541			(3,085	)		15,243			715			(367	)		25,047
Share of profit of associates and joint ventures		-			-			-			-			466			466
Segment profit / (loss)		12,541			(3,085	)		15,243			715			99			25,513
Investment properties and trading properties		91,770			68,197			142,511			-			430			302,908
Investment in associates and joint ventures		-			-			-			-			11,578			11,578
Other operating assets		299			2,537			2,984			4,183			1,348			11,351
Reportable assets		92,069			70,734			145,495			4,183			13,356			325,837

	June 30, 2021
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		8,727			4,401			1,271			1,510			676			16,585
Costs		(1,428	)		(236	)		(1,379	)		(1,746	)		(876	)		(5,665	)
Gross profit / (loss)		7,299			4,165			(108	)		(236	)		(200	)		10,920
Net (loss) / gain from fair value adjustment of investment properties		(33,349	)		9,088			11,658			-			61			(12,542	)
General and administrative expenses		(2,348	)		(685	)		(1,164	)		(699	)		(153	)		(5,049	)
Selling expenses		(740	)		(307	)		(1,145	)		(231	)		(54	)		(2,477	)
Other operating results, net		(207	)		(8	)		(8	)		(20	)		(13	)		(256	)
(Loss) / profit from operations		(29,345	)		12,253			9,233			(1,186	)		(359	)		(9,404	)
Share of loss of associates and joint ventures		-			-			(26	)		-			(6,515	)		(6,541	)
Segment (loss) / profit		(29,345	)		12,253			9,207			(1,186	)		(6,874	)		(15,945	)
Investment properties and trading properties		89,070			119,013			102,415			-			423			310,921
Investment in associates and joint ventures		-			-			-			-			14,609			14,609
Other operating assets		436			1,839			3,271			4,269			628			10,443
Reportable assets		89,506			120,852			105,686			4,269			15,660			335,973

	June 30, 2020
	Shopping Malls			Offices			Sales and developments			Hotels			Others (i)			Total
Revenues		14,569			5,616			2,025			4,978			246			27,434
Costs		(1,401	)		(192	)		(1,825	)		(3,066	)		(241	)		(6,725	)
Gross profit		13,168			5,424			200			1,912			5			20,709
Net (loss) / gain from fair value adjustment of investment properties		(5,185	)		54,755			34,495			-			(337	)		83,728
General and administrative expenses		(2,044	)		(601	)		(1,217	)		(897	)		(768	)		(5,527	)
Selling expenses		(1,751	)		(185	)		(502	)		(566	)		(25	)		(3,029	)
Other operating results, net		42			(20	)		(111	)		(49	)		167			29
Profit / (loss) from operations		4,230			59,373			32,865			400			(958	)		95,910
Share of profit of associates and joint ventures		-			-			-			-			17,367			17,367
Segment profit		4,230			59,373			32,865			400			16,409			113,277
Investment properties and trading properties		120,956			147,863			89,401			-			942			359,162
Investment in associates and joint ventures		-			-			1,310			-			21,529			22,839
Other operating assets		500			160			1,931			4,527			702			7,820
Reportable assets		121,456			148,023			92,642			4,527			23,173			389,821

XML

Information about the main subsidiaries (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of subsidiaries with significant non-controlling interests

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held by non-controlling interests			Book value of non-controlling interests		% of ownership interest held by controlling interests			Book value of controlling interests
06.30.22		760		59,599		2,054		15,344		42,961		20	%		8,592		80	%		34,369
06.30.21		973		64,049		3,050		17,882		44,090		20	%		8,818		80	%		35,272

	Revenues		Comprehensive loss for the year			Cash of Operating activities		Cash of investing activities			Cash of financial activities			Net Increase / (decrease) in cash and cash equivalents			Dividends distribution to non-controlling shareholders
06.30.22		3,766		(1,129	)		2,415		(292	)		(2,112	)		11			-
06.30.21		3,230		(3,754	)		1,428		(391	)		(1,123	)		(86	)		-

XML

Investments in associates and joint ventures (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Group's investments in joint ventures

	June 30, 2022			June 30, 2021
Beginning of the year		19,936			183,192
Capital contributions		1,035			69
Decrease of interest in associate (iv)		-			(71,905	)
Deconsolidation (i)		-			(79,438	)
Share of loss		(355	)		(4,977	)
Impairment (iii)		-			(1,027	)
Currency translation adjustment		(473	)		(5,869	)
Dividends		(3,586	)		-
Other comprehensive loss		-			(89	)
Others		(431	)		(20	)
End of the year (ii)		16,126			19,936

Schedule of additional information related to the Groups investment

Name of the entity	% ownership interest									Value of Group's interest in equity				Group's interest in comprehensive income / (loss)
	June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2022		June 30, 2021		June 30, 2022			June 30, 2021			June 30, 2020
Associates and joint ventures
New Lipstick		49.96	%		49.96	%		49.96	%		143		357		69			(787	)		18,801
BHSA (1)		29.91	%		29.91	%		29.91	%		9,665		8,792		873			(1,240	)		(936	)
Condor		21.70	%		18.89	%		18.89	%		-		2,657		425			(679	)		295
Quality (2)		50.00	%		50.00	%		50.00	%		3,858		4,800		(983	)		(425	)		456
La Rural SA		50.00	%		50.00	%		50.00	%		243		277		(42	)		(221	)		251
TGLT (3)		27.82	%		27.82	%		30.20	%		813		1,537		(723	)		(3,537	)		(285	)
Other joint ventures		N/A			N/A			N/A			1,404		1,516		(447	)		(3,957	)		2,896
Total associates and joint ventures											16,126		19,936		(828	)		(10,846	)		21,478

Name of the entity

Place of business / Country of incorporation

Main activity

Common shares 1 vote

Share capital (nominal value)

Profit / (loss) for the year

Latest financial statements issued Shareholders’ equity

Associates and joint ventures

New Lipstick

U.S.

Real estate

N/A

-

(*) (1

)

(*) (42

)

BHSA (1)

Argentina

Financial

448,689,072

(**) 1,500

(**) 2,920

(**) 31,251

Quality (2)

Argentina

Real estate

225,146,912

406

(1,965

)

7,563

La Rural SA

Argentina

Organization of events

714,998

1

(58

)

339

TGLT (3)

Argentina

Real estate

257,330,595

925

(2,950

)

4,084

Schedule of financial information of the joint ventures considered to be material

	Current Assets		Non-current Assets		Current Liabilities		Non-current Liabilities		Net assets		% of ownership interest held			Interest in associate and joint venture		Goodwill and others			Book value
As of 06.30.22
Associates
BHSA		241,536		79,939		280,495		8,961		32,019		29.91	%		9,577		88			9,665
TGLT		7,511		12,371		8,176		7,677		4,029		27.82	%		1,121		(308	)		813
Joint ventures
Quality Invest (ii)		61		11,490		70		3,919		7,562		50.00	%		3,781		77			3,858
.
As of 06.30.21
Associates
BHSA		188,185		116,578		256,477		19,122		29,164		29.91	%		8,723		69			8,792
TGLT		8,460		19,366		8,117		12,635		7,074		27.82	%		1,968		(431	)		1,537
Joint ventures
Quality Invest (ii)		8		14,499		164		4,898		9,445		50.00	%		4,723		77			4,800

	Revenues		Net income / (loss)			Total comprehensive income / (loss)			Dividend distribution		Cash of operating activities			Cash of investing activities			Cash of financing activities			Changes in cash and cash equivalents
As of 06.30.22 (i)
Associates
BHSA		54,043		2,920			2,920			-		33,208			(240	)		(24,583	)		8,385
TGLT		4,198		(2,129	)		(2,089	)		-		(1,322	)		4,209			(2,530	)		357
Joint ventures
Quality Invest (ii)		206		(1,965	)		(1,965	)		-		(1	)		24			(2	)		21
As of 06.30.21 (i)
Associates
BHSA		47,976		(4,145	)		(4,145	)		-		7,081			(212	)		(46,143	)		(39,274	)
TGLT		4,196		(3,142	)		(3,155	)		-		185			108			(746	)		(453	)
Joint ventures
Quality Invest (ii)		74		(849	)		(849	)		-		(97	)		(7	)		104			-

XML

Investment properties (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of recognized in the Statements of Income

	06.30.2022			06.30.2021			06.30.2020
Rental and services income		27,281			18,093			28,092
Direct operating expenses		(9,191	)		(7,264	)		(19,909	)
Development reimbursements		186			187			277
Net realized gain from fair value adjustment of investment properties (i) (ii)		13,980			17,745			2,793
Net unrealized (loss) / gain from fair value adjustment of investment properties		(330	)		(30,487	)		80,287

Schedule of fair value measurements of investment properties

				06.30.22						06.30.21						06.30.20
Description	Valuation technique	Parameters	Range fiscal year 2021 / 2019	Increase			Decrease			Increase			Decrease			Increase			Decrease
Shopping Malls (Level 3)	Discounted cash flows	Discount rate	14.53% / 12.18%		(5,864	)		6,890			(6,297	)		7,525			(10,474	)		12,825
		Growth rate	2.4% / 2.3%		2,636			(2,234	)		2,884			(2,414	)		4,993			(4,077	)
		Inflation	(*)		10,516			(8,704	)		13,399			(11,052	)		21,803			(17,936	)
		Devaluation	(*)		(7,758	)		9,482			(7,145	)		8,732			(10,136	)		12,389

Schedule of investment properties

	June 30, 2022						June 30, 2021
	Level 2			Level 3			Level 2			Level 3
Fair value at the beginning of the year		153,474			146,863			179,631			380,822
Additions		7,364			2,052			449			1,250
Capitalized leasing costs		23			19			21			15
Amortization of capitalized leasing costs (i)		(36	)		(9	)		(11	)		(10	)
Transfers / Reclassification to assets held for sale (iv)		62,350			(63,306	)		(869	)		-
Deconsolidation (ii)		-			-			-			(192,757	)
Disposals (iii)		(29,116	)		-			(35,135	)		-
Currency translation adjustment		(34	)		-			(20	)		(20,262	)
Net gain / (loss) from fair value adjustment		14,533			(883	)		9,408			(22,195	)
Fair value at the end of the year		208,558			84,736			153,474			146,863

Schedule of Group's borrowings and other payables

	06.30.2022		06.30.2021
Córdoba Shopping (i)		2,215		2,832
Total		2,215		2,832

Schedule of investment property of the Group

	06.30.2022		06.30.2021
Shopping Malls		90,142		83,331
Offices and other rental properties		74,338		122,477
Undeveloped parcels of land		127,956		88,851
Properties under development		567		5,441
Others		291		237
Total		293,294		300,337

XML

Property, Plant and Equipment (Tables)

12 Months Ended

Jun. 30, 2022

Property, Plant and Equipment

Schedule of property, plant and equipment

	Agricultural establishments			Buildings and facilities			Machinery and equipment			Communication networks			Others (i)			Total
Net book amount at the June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Costs		23,397			29,746			11,043			248,594			31,754			344,534
Accumulated depreciation		(12,674	)		(17,057	)		(9,308	)		(196,589	)		(15,977	)		(251,605	)
Balances at June 30, 2020		10,723			12,689			1,735			52,005			15,777			92,929
Additions		90			331			105			953			1,236			2,715
Disposals		-			(46	)		(11	)		(90	)		-			(147	)
Deconsolidation		(10,006	)		(7,027	)		(1,304	)		(46,443	)		(13,914	)		(78,694	)
Reclassification to assets assets held for sale		-			(46	)		-			-			-			(46	)
Currency translation adjustment		(761	)		(562	)		(101	)		(3,749	)		(1,117	)		(6,290	)
Transfers		-			1,622			-			-			-			1,622
Depreciation charges (ii)		(46	)		(702	)		(146	)		(2,676	)		(1,720	)		(5,290	)
Net book amount at the June 30, 2021		-			6,259			278			-			262			6,799
Costs		-			11,603			4,121			-			949			16,673
Accumulated depreciation		-			(5,344	)		(3,843	)		-			(687	)		(9,874	)
Balances at June 30, 2021		-			6,259			278			-			262			6,799
Additions		-			282			51			-			2			335
Disposals		-			(2	)		(1	)		-			-			(3	)
Currency translation adjustment		-			-			-			-			(3	)		(3	)
Transfers		-			1,492			19			-			-			1,511
Depreciation charges (ii)		-			(499	)		(111	)		-			(39	)		(649	)
Net book amount at the June 30, 2022		-			7,532			236			-			222			7,990
Costs		-			13,375			4,190			-			948			18,513
Accumulated depreciation		-			(5,843	)		(3,954	)		-			(726	)		(10,523	)
Balances at June 30, 2022		-			7,532			236			-			222			7,990

XML

Trading Properties (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of trading properties

	Completed properties			Properties under development			Undeveloped sites			Total
At June 30, 2020		4,985			2,043			10,638			17,666
Additions		-			669			651			1,320
Deconsolidation		(3,490	)		(233	)		(8,887	)		(12,610	)
Currency translation adjustment		(320	)		(206	)		(612	)		(1,138	)
Transfers		318			(318	)		-			-
Disposals		(1,295	)		(640	)		(420	)		(2,355	)
At June 30, 2021		198			1,315			1,370			2,883
Additions		-			471			37			508
Currency translation adjustment		-			(157	)		-			(157	)
At June 30, 2022		198			1,629			1,407			3,234

	June 30, 2022		June 30, 2021
Non-current		3,041		2,696
Current		193		187
Total		3,234		2,883

XML

Intangible assets (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of intangible assets

	Goodwill			Trademarks			Licenses			Customer relations			Information systems and software			Contracts and others			Total
Balance at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Costs		13,899			20,742			27,805			58,450			19,494			32,913			173,303
Accumulated amortization		-			(1,953	)		(21,844	)		(52,355	)		(9,093	)		(19,625	)		(104,870	)
Net book amount at June 30, 2020		13,899			18,789			5,961			6,095			10,401			13,288			68,433
Additions		-			-			-			46			728			2,793			3,567
Disposals		-			-			-			-			(182	)		-			(182	)
Deconsolidation		(13,904	)		(17,405	)		(5,398	)		(5,151	)		(7,632	)		(10,439	)		(59,929	)
Impairment		(66	)		-			-			-			-			-			(66	)
Currency translation adjustment		292			(1,338	)		(427	)		(446	)		(1,159	)		(981	)		(4,059	)
Amortization charges (i)		-			(46	)		(136	)		(544	)		(1,820	)		(1,282	)		(3,828	)
Balance at June 30, 2021		221			-			-			-			336			3,379			3,936
Costs		221			-			-			-			1,294			3,884			5,399
Accumulated amortization		-			-			-			-			(958	)		(505	)		(1,463	)
Net book amount at June 30, 2021		221			-			-			-			336			3,379			3,936
Additions		-			-			-			-			65			38			103
Disposals		-			-			-			-			-			(471	)		(471	)
Impairment		-			-			-			-			(40	)		-			(40	)
Amortization charges (i)		-			-			-			-			(148	)		(1	)		(149	)
Balance at June 30, 2022		221			-			-			-			213			2,945			3,379
Costs		221			-			-			-			1,319			3,451			4,991
Accumulated amortization		-			-			-			-			(1,106	)		(506	)		(1,612	)
Net book amount at June 30, 2022		221			-			-			-			213			2,945			3,379

XML

Rights of use of assets (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of composition of the rights of use of the Group?s assets

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		17		18
Machinery and equipment		2		7
Convention center		1,223		1,305
Total Right-of-use assets		1,242		1,330
Non-current		1,242		1,330
Total		1,242		1,330

Schedule of changes in the Group?s rights of use

	June 30, 2022			June 30, 2021
Beginning of the year		1,330			48,913
Additions		-			1,458
Disposals		-			(136	)
Amortization charges		(88	)		(3,135	)
Deconsolidation		-			(42,394	)
Currency translation adjustment		-			(3,376	)
Total		1,242			1,330

Schedule of depreciation charge for rights of use

	June 30, 2022		June 30, 2021
Offices, shopping malls and other rental properties		78		2,119
Telecommunications		-		485
Others		10		531
Total depreciation of right-of-use assets (i)		88		3,135

Schedule of other charges to income related to rights of use

	June 30, 2022			June 30, 2021
Lease liabilities interests		(120	)		(458	)
Results from short-term leases		(43	)		(59	)

Schedule of average discount rate and the term of liability for lease

Average discount rate	Maturity date
10.61%	2023-2041

XML

Financial instruments by category (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of financial assets and financial liabilities

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2022
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,057		-		-		-		12,057		3,963		16,020
Investments in financial assets:
- Public companies’ securities		-		1,346		-		-		1,346		-		1,346
- Mutual fonds		-		13,870		-		-		13,870		-		13,870
- Bonds		-		3,806		-		-		3,806		-		3,806
- Others		10		265		-		-		275		-		275
Cash and cash equivalents:
- Cash at bank and on hand		10,015		-		-		-		10,015		-		10,015
- Short-term investments		-		2,761		-		-		2,761		-		2,761
Total assets		22,082		22,048		-		-		44,130		3,963		48,093

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2022
Liabilities as per Statements of Financial Position
Trade and other payables		4,440		-		-		-		4,440		7,641		12,081
Borrowings		74,734		-		-		-		74,734		-		74,734
Derivative financial instruments:
- Swaps		-		-		16		-		16		-		16
Total liabilities		79,174		-		16		-		79,190		7,641		86,831

	Financial assets at amortized cost		Financial assets at fair value through profit or loss						Subtotal financial assets		Non-financial assets		Total
			Level 1		Level 2		Level 3
June 30, 2021
Assets as per Statements of Financial Position
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		11,858		-		-		-		11,858		8,104		19,962
Investments in financial assets:
- Public companies’ securities		-		1,600		-		-		1,600		-		1,600
- Bonds		-		4,446		-		-		4,446		-		4,446
- Investments in financial assets with quotation		16		1,048		-		79		1,143		-		1,143
Cash and cash equivalents:
- Cash at bank and on hand		1,850		-		-		-		1,850		-		1,850
- Short term investments		-		1,317		-		-		1,317		-		1,317
Total assets		13,724		8,411		-		79		22,214		8,104		30,318

	Financial liabilities at amortized cost		Financial liabilities at fair value through profit or loss						Subtotal financial liabilities		Non-financial liabilities		Total
			Level 1		Level 2		Level 3
June 30, 2021
Liabilities as per Statements of Financial Position
Trade and other payables		4,729		-		-		-		4,729		5,913		10,642
Borrowings		101,887		-		-		-		101,887		-		101,887
Derivative financial instruments:		-
- Swaps		-		-		94		-		94		-		94
Total liabilities		106,616		-		94		-		106,710		5,913		112,623

Schedule of book value of financial instruments recognized

	As of June 30, 2022							As of June 30, 2021
	Gross amounts recognized		Gross amounts offset			Net amount presented		Gross amounts recognized		Gross amounts offset			Net amount presented
Financial assets
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)		12,587		(530	)		12,057		15,221		(3,363	)		11,858
Financial liabilities
Trade and other payables		3,910		530			4,440		1,366		3,363			4,729

Schedule of income, expense, gains and losses on financial instruments

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss		Total
June 30, 2022
Interest income		463			-		463
Interest expense		(8,171	)		-		(8,171	)
Interest expense on lease liabilities		(120	)		-		(120	)
Foreign exchange gains, net		14,406			-		14,406
Gain from repurchase of NCN		1,460			-		1,460
Fair value gain on financial assets at fair value through profit or loss		-			1,454		1,454
Interest and discount generated by operating credits		128			-		128
Gain on derivative financial instruments, net		-			33		33
Other finance costs		(463	)		-		(463	)
Total financial instruments (i)		7,703			1,487		9,190

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2021
Interest income		591			-			591
Interest expense		(10,511	)		-			(10,511	)
Interest expense on lease liabilities		(158	)		-			(158	)
Foreign exchange gains, net		11,512			-			11,512
Dividend income		1			-			1
Loss from repurchase of NCN		(156	)		-			(156	)
Fair value gain on financial assets at fair value through profit or loss		-			8,720			8,720
Interest and discount generated by operating credits		157			-			157
Loss on derivative financial instruments, net		-			(740	)		(740	)
Other finance costs		(1,420	)		-			(1,420	)
Total financial instruments (i)		16			7,980			7,996

	Financial assets / liabilities at amortized cost			Financial assets / liabilities at fair value through profit or loss			Total
June 30, 2020
Interest income		491			-			491
Interest expense		(14,114	)		-			(14,114	)
Interest expense on lease liabilities		(133	)		-			(133	)
Foreign exchange gains, net		(15,386	)		-			(15,386	)
Dividend income		34			-			34
Gain from repurchase of NCN		228			-			228
Fair value gain on financial assets at fair value through profit or loss		-			828			828
Interest and discount generated by operating credits		417			-			417
Loss on derivative financial instruments, net		-			(901	)		(901	)
Other finance costs		(923	)		-			(923	)
Total financial instruments (i)		(29,386	)		(73	)		(29,459	)

Schedule of changes in Level 3 instruments

	Derivative financial instruments - Forwards			Investments in financial assets - Private companies' securities			Investments in financial assets - Others			Derivative financial instruments			Total
Balances at June 30, 2020		(49	)		7,164			571			349			8,035
Deconsolidation		49			(7,164	)		(500	)		(349	)		(7,964	)
Currency translation adjustment		-			-			(7	)		-			(7	)
Gain for the year (i)		-			-			15			-			15
Balances at June 30, 2021		-			-			79			-			79
Currency translation adjustment		-			-			(8	)		-			(8	)
Write off		-			-			(96	)		-			(96	)
Gain for the year (i)		-			-			25			-			25
Balances at June 30, 2022		-			-			-			-			-

Schedule of range of valuation models for the measurement of Level 2 and Level 3 instruments

Description	Pricing model / method	Parameters	Fair value hierarchy	Range
Derivative financial instruments Swaps	Theoretical price	Underlying asset price and volatility	Level 2 and 3		-

XML

Trade and other receivables (Tables)

12 Months Ended

Jun. 30, 2022

Trade and other receivables

Schedule of trade and other receivables

	June 30, 2022			June 30, 2021
Sale, leases and services receivables		8,012			7,532
Less: Allowance for doubtful accounts		(853	)		(1,395	)
Total trade receivables		7,159			6,137
Prepaid expenses		339			1,320
Borrowings, deposits and others		4,661			6,017
Advances to suppliers		917			1,558
Tax receivables		935			1,912
Others		1,156			1,623
Total other receivables		8,008			12,430
Total trade and other receivables		15,167			18,567
Non-current		4,336			4,669
Current		10,831			13,898
Total		15,167			18,567

Schedule of allowance for doubtful accounts

	June 30, 2022			June 30, 2021
Beginning of the year		1,395			9,199
Additions (i)		250			1,238
Recovery (i)		(282	)		(376	)
Currency translation adjustment		73			(452	)
Deconsolidation		-			(7,614	)
Receivables written off during the year as uncollectable		(12	)		(46	)
Inflation adjustment		(571	)		(554	)
End of the year		853			1,395

Schedule of an aging analysis of past due unimpaired and impaired receivables

	Past due
	Up to 3 months		From 3 to 6 months		Over 6 months		Non-past due		Impaired		Total		% of representation
Leases and services		391		238		649		5,607		853		7,738		96.58	%
Consumer financing		-		-		-		87		-		87		1.09	%
Sale of properties and developments		40		-		20		127		-		187		2.33	%
Total as of June 30, 2022		431		238		669		5,821		853		8,012		100.00	%
Leases and services		554		405		1,077		3,794		1,369		7,199		95.58	%
Consumer financing		-		-		-		-		26		26		0.35	%
Sale of properties and developments		-		-		-		307		-		307		4.07	%
Total as of June 30, 2021		554		405		1,077		4,101		1,395		7,532		100.00	%

XML

Cash flow information (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of cash flows generated

	Note		06.30.2022			06.30.2021			06.30.2020
Profit / (loss) for the year				34,892			(61,641	)		58,461
Profit for the year from discontinued operations				-			14,633			8,112
Adjustments for:
Income tax		21		2,770			35,540			16,505
Amortization and depreciation		24		931			1,051			1,174
Net (gain) / loss from fair value adjustment of investment properties				(13,650	)		12,742			(83,080	)
Gain from disposal of associates				-			(61	)		-
Financial results, net				(14,298	)		(10,840	)		32,366
Provisions and allowances				1,560			1,846			2,035
Share of loss / (profit) of associates and joint ventures		8		355			7,182			(17,787	)
Changes in operating assets and liabilities:										-
(Increase) / decrease in inventories				(7	)		43			10
Decrease / (increase) in trading properties				89			(46	)		(971	)
Increase in restricted assets				-			-			(2,870	)
(Increase) / decrease in trade and other receivables				(31	)		2,483			4,680
Increase / (decrease) in trade and other payables				624			(5,553	)		(735	)
Increase / (decrease) in salaries and social security liabilities				31			87			(476	)
Decrease in provisions				(97	)		(176	)		(1,309	)
Net cash generated by / (used in) continuing operating activities before income tax paid				13,169			(2,710	)		16,115
Net cash generated by discontinued operating activities before income tax paid				-			5,577			62,117
Net cash generated by operating activities before income tax paid				13,169			2,867			78,232

Schedule of reclassification of assets and liabilities held for sale

	June 30, 2022		June 30, 2021			June 30, 2020
Investment properties		-		192,757			383,250
Property, plant and equipment		-		78,694			(12,432	)
Trading properties		-		12,610			382
Intangible assets		-		59,929			7,940
Investments in associates and joint ventures		-		79,438			6,200
Deferred income tax assets		-		931			-
Restricted assets		-		13,775			526
Income tax and MPIT credit		-		699			108
Trade and other receivables		-		115,924			(22,298	)
Right-of-use assets		-		42,394			(9,795	)
Investments in financial assets		-		51,889			33,359
Derivative financial instruments		-		603			(92	)
Inventories		-		7,727			(6,166	)
Group of assets held for sale		-		90,236			-
Borrowings		-		(697,452	)		(216,942	)
Lease liabilities		-		(38,857	)		-
Deferred income tax liabilities		-		(26,665	)		(49,767	)
Trade and other payables		-		(50,426	)		5,697
Lease liabilities		-		-			5,116
Provisions		-		(11,635	)		141
Employee benefits		-		(1,023	)		264
Derivative financial instruments		-		(1,023	)		-
Salaries and social security liabilities		-		(7,260	)		339
Group of liabilities held for sale		-		(47,235	)		-
Income tax expense		-		(977	)		(264	)
Net value of deconsolidated / incorporated assets that do not affect cash		-		(134,947	)		125,566
Cash and cash equivalents		-		(238,316	)		(14,786	)
Non-controlling interest		-		(102,520	)		124,986
Goodwill		-		-			(927	)
Net value of deconsolidated / incorporated assets		-		(475,783	)		234,839
Seller Financed Amount		-		-			-
Net (outflow) / inflow of cash and cash equivalents		-		(475,783	)		234,839

Schedule of detail of significant non-cash transactions

	06.30.2022		06.30.2021		06.30.2020
Decrease of associates and joint ventures through an increase of assets held for sale		-		-		5,101
Increase of investment properties through a decrease of financial assets		-		-		685
Increase of trading properties through an increase in borrowings		-		100		30
Increase of property, plant and equipment through an increase of trade and other payables		-		-		1,820
Increase of intangible assets through an increase of trade and other payables		12		-		1,217
Distribution of dividends in shares		-		1,193		1,451
Increase of investment properties through a decrease in trade and other receivables		-		-		69
Issuance of NCN		4,304		-		-
Decrease of property, plant and equipment through an increase of tax receivables and tax debts		-		136		-
Distribution of dividends to non-controlling interest pending payment		-		-		4,337
Decrease in borrowings through a decrease in financial assets		-		-		6,044
Increase in investment properties through an increase in trade and other payables		185		-		1,751
Increase of investment properties through an increase of borrowings		-		668		247
Increase in right-of-use assets through an increase in lease liabilities - Adjustment of opening balances (IFRS 16)		-		-		34,787
Increase in right-of-use assets through an increase in lease liabilities		-		-		19,929
Increase in intangible assets through a decrease in investment in associates		-		1,340		-
Currency translation adjustment		177		18,748		34,929
Increase in investment properties under barter agreements		3,139		-		-
Payment of non-convertible notes		633		-		-
Decrease in lease liabilities through a decrease in trade and other receivables		3		-		-
Decrease in investment properties through an increase in property, plant and equipment		1,558		-		-
Decrease in property, plant and equipment through an increase in investment properties		600		-		-
Decrease in property, plant and equipment through an increase in revaluation surplus		556		-		-
Decrease in revaluation surplus through an increase in deferred income tax liabilities		195		-		-
Increase in intangible assets through an increase salaries and social security liabilities		26		-		-
Increase in investments in associates through a decrease in investments in financial assets		865		-		-
Decrease in borrowings through a decrease in credits for trade and other receivables		441		-		-
Increase in investments in associates and joint ventures through a decrease in investments in financial assets		45		-		-
Capital contributions from non-controlling interest through a decrease of borrowings		4		-		-
Capital contributions from non-controlling interest through an increase in trade and other receivables		5		-		-

XML

Trade and other payables (Tables)

12 Months Ended

Jun. 30, 2022

Trade and other payables

Schedule of trade and other payables

	June 30, 2022		June 30, 2021
Customers´ advances (*)		3,641		2,894
Trade payables		1,599		1,687
Accrued invoices		1,179		1,409
Admission fees (*)		2,575		1,771
Other income to be accrued		96		128
Tenant deposits		67		148
Total trade payables		9,157		8,037
Taxes payable		1,329		1,120
Other payables		1,595		1,485
Total other payables		2,924		2,605
Total trade and other payables		12,081		10,642
Non-current		3,557		2,274
Current		8,524		8,368
Total		12,081		10,642

XML

Provisions (Tables)

12 Months Ended

Jun. 30, 2022

Provisions

Schedule of provisions

	Legal claims			Investments in associates and joint ventures (ii)			Site dismantling and remediation			Other provisions			Total
As of 06.30.20		6,144			43			1,102			6,266			13,555
Additions (i)		151			-			46			(182	)		15
Deconsolidation		(5,072	)		-			(1,071	)		(5,492	)		(11,635	)
Recovery (i)		(54	)		(31	)		-			-			(85	)
Used during the year		(166	)		-			-			(46	)		(212	)
Inflation adjustment		(187	)		-			-			-			(187	)
Currency translation adjustment		(400	)		-			(77	)		(546	)		(1,023	)
As of 06.30.21		416			12			-			-			428
Additions (i)		341			-			-			-			341
Share of loss of associates		-			(4	)		-			-			(4	)
Recovery (i)		(79	)		-			-			-			(79	)
Used during the year		(97	)		-			-			-			(97	)
Inflation adjustment		(195	)		-			-			-			(195	)
As of 06.30.22		386			8			-			-			394

	June 30, 2022		June 30, 2021
Non-Current		196		187
Current		198		241
Total		394		428

XML

Borrowings (Tables)

12 Months Ended

Jun. 30, 2022

Borrowings

Schedule of fair value of borrowings

	Total as of June 30, 2022		Total as of June 30, 2021		Fair value as of June 30, 2022		Fair value as of June 30, 2021
NCN		66,216		85,081		62,411		79,987
Bank loans		1,012		5,110		1,018		5,131
Bank overdrafts		5,871		8,665		5,871		8,665
Other borrowings		1,015		2,267		1,015		2,267
AABE Debt		405		423		405		423
Loans with non-controlling interests		215		341		215		341
Total borrowings		74,734		101,887		70,935		96,814
Non-current		13,052		76,619
Current		61,682		25,268
Total		74,734		101,887

Schedule of maturity of the group's borrowings

	June 30, 2022		June 30, 2021
Capital
Less than 1 year (i)		60,208		23,234
Between 1 and 2 years		10,470		66,542
Between 2 and 3 years		2,087		9,317
Between 3 and 4 years		106		272
Between 4 and 5 years		253		97
Later than 5 years		-		142
		73,124		99,604
Interest
Less than 1 year (i)		1,474		2,034
Between 1 and 2 years		-		89
Between 2 and 3 years		63		21
Between 3 and 4 years		9		74
Between 4 and 5 years		64		10
Later than 5 years		-		55
		1,610		2,283
		74,734		101,887

Schedule of borrowing by type of fixed-rate and floating-rate

	June 30, 2022
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		11,818		-		11,818
US Dollar		-		62,249		62,249
Subtotal fixed-rate borrowings		11,818		62,249		74,067
Floating rate:
Argentine Peso		418		-		418
US Dollar		-		249		249
Subtotal floating-rate borrowings		418		249		667
Total borrowings as per analysis		12,236		62,498		74,734
Total borrowings as per Statement of Financial Position		12,236		62,498		74,734

	June 30, 2021
Rate per currency	Argentine Peso		US dollar		Total
Fixed rate:
Argentine Peso		16,605		-		16,605
US Dollar		-		81,573		81,573
Subtotal fixed-rate borrowings		16,605		81,573		98,178
Floating rate:
Argentine Peso		444		-		444
US Dollar		-		3,265		3,265
Subtotal floating-rate borrowings		444		3,265		3,709
Total borrowings as per analysis		17,049		84,838		101,887
Total borrowings as per Statement of Financial Position		17,049		84,838		101,887

Schedule of debt issuances

Entity	Series	Issuance / expansion date	Amount in original currency	Maturity date	Interest	Principal payment	Interest payment
					rate
IRSA	Series I	nov-20	USD 3.1	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series VIII	nov-20	USD 31.7	11/12/2023	10.00% n.a.	33% in November 21, 33% in November 22, 34% in November 23	Quarterly
IRSA	Series IX	nov-20	USD 80.7	3/1/2023	10.00% n.a.	At expiration	Quarterly
IRSA	Series XI	mar-21	USD 15.81	3/1/2024	5.00% n.a.	At expiration	Biannual
IRSA	Series XII	mar-21	UVAs 53.78	03/31/2024	4.00% n.a.	At expiration	Biannual
IRSA	Series XIII	aug-21	USD 58.1	08/26/2024	3.90% n.a	Biannual	Quarterly

Schedule of evolution of borrowing

	June 30, 2022			June 30, 2021
Balance at the beginning of the year		101,887			926,487
Borrowings		7,427			43,119
Payment of borrowings		(11,834	)		(96,340	)
(Payment) / Collection of short term loans, net		(999	)		6,605
Interests paid		(8,204	)		(23,535	)
Deconsolidation		-			(697,452	)
Accrued interests		7,722			19,465
Cumulative translation adjustment and exchange differences, net		22,656			(71,995	)
Inflation adjustment		(42,666	)		(4,455	)
Reclassifications and other movements		(1,255	)		(12	)
Balance at the end of the year		74,734			101,887

XML

Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of income tax

Accumulated net taxable profit				Will pay		More of %			On the surplus of
More of		To
	-		5,000,000		-		25	%		-
	5,000,000		50,000,000		1,250,000		30	%		5,000,000
	50,000,000	Onwards			14,750,000		35	%		50,000,000

Schedule of provision for group income tax

	June 30, 2022			June 30, 2021			June 30, 2020
Current income tax		(16,508	)		(1,571	)		(633	)
Deferred income tax		13,738			(33,969	)		(15,539	)
Minimum presumed income tax		-			-			(333	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

Schedule of statutory taxes rates

Tax jurisdiction	Income tax rate
Argentina	25% - 35%
Uruguay	0% - 25%
U.S.A.	0% - 40%
Bermuda / British Virgin Islands / Netherlands	0%
Israel	23% - 24%

Schedule of reconciliation of income tax expense

	June 30, 2022			June 30, 2021			June 30, 2020
(Profit) / loss from continuing operations at tax rate applicable in the respective countries		(13,080	)		3,442			(26,437	)
Permanent differences:
Share of (profit) / loss of associates and joint ventures		(155	)		(2,155	)		2,189
Tax loss carryforwards recovery / (unrecognized tax loss carryforwards)		4,649			(3,872	)		(2,055	)
Inflation adjustment permanent difference		15,637			5,774			4,088
Tax rate differential		-			(24,902	)		6,115
Non-taxable profit, non-deductible expenses and others		(328	)		(131	)		4,360
Fiscal transparency		-			(275	)		372
Tax inflation adjustment		(9,493	)		(13,421	)		(5,137	)
Income tax from continuing operations		(2,770	)		(35,540	)		(16,505	)

Schedule of deferred tax assets and liabilities

	June 30, 2022		June 30, 2021
Deferred income tax asset to be recovered after more than 12 months		963		2,622
Deferred income tax asset to be recovered within 12 months		1,031		7,250
Deferred income tax assets		1,994		9,872

	June 30, 2022			June 30, 2021
Deferred income tax liability to be recovered after more than 12 months		(100,056	)		(121,046	)
Deferred income tax liability to be recovered within 12 months		(452	)		(830	)
Deferred income tax liability		(100,508	)		(121,876	)
Deferred income tax liabilities, net		(98,514	)		(112,004	)

Schedule of movement in the deferred income tax assets and liabilities

	06.30.21			Charged / (Credited) to the statements of income			Revaluation surplus reserve			06.30.22
Assets
Investment properties and Property, plant and equipment		838			(793	)		-			45
Trade and other payables		1,234			279			-			1,513
Tax loss carry-forwards		382			82			-			464
Borrowings		1,765			(1,594	)		-			171
Trade and other receivables		4,814			(5,008	)		-			(194	)
Others		839			(844	)		-			(5	)
Subtotal assets		9,872			(7,878	)		-			1,994
Liabilities
Investment properties and Property, plant and equipment		(94,812	)		5,809			(248	)		(89,251	)
Trade and other receivables		(5,393	)		5,011			-			(382	)
Investments		(4	)		(27	)		-			(31	)
Tax inflation adjustment		(21,318	)		11,106			-			(10,212	)
Borrowings		3			(3	)		-			-
Intangible assets		(123	)		(557	)		-			(680	)
Others		(229	)		277			-			48
Subtotal liabilities		(121,876	)		21,616			(248	)		(100,508	)
Assets (Liabilities), net		(112,004	)		13,738			(248	)		(98,514	)

	06.30.20			Currency translation adjustment			Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income			Revaluation surplus reserve			Deconsolidation			Incorporation by business combination		06.30.21
Assets
Investment properties and Property, plant and equipment		730			121			92			-			(105	)		-		838
Trade and other payables		13,096			3,995			(80	)		-			(15,777	)		-		1,234
Tax loss carry-forwards		21,049			3,804			(9,649	)		-			(14,822	)		-		382
Borrowings		379			-			1,386			-			-			-		1,765
Trade and other receivables		162			-			4,652			-			-			-		4,814
Others		3,834			856			(438	)		-			(3,475	)		62		839
Subtotal assets		39,250			8,776			(4,037	)		-			(34,179	)		62		9,872
Liabilities
Investment properties and Property, plant and equipment		(127,242	)		(2,447	)		(11,825	)		(136	)		46,838			-		(94,812	)
Trade and other receivables		(2,271	)		-			(3,122	)		-			-			-		(5,393	)
Investments		(175	)		-			171			-			-			-		(4	)
Tax inflation adjustment		(10,644	)		-			(10,674	)		-			-			-		(21,318	)
Borrowings		(2,350	)		(779	)		154			-			2,978			-		3
Intangible assets		(5,895	)		(1,934	)		275			-			7,431			-		(123	)
Others		2,424			(862	)		(4,457	)		-			2,666			-		(229	)
Subtotal liabilities		(146,153	)		(6,022	)		(29,478	)		(136	)		59,913			-		(121,876	)
Assets (Liabilities), net		(106,903	)		2,754			(33,515	)		(136	)		25,734			62		(112,004	)

Schedule of tax loss carry forward

Date	Total
2022		9
2023		130
2024		261
2025		441
2026		308
2027		747
Total		1,896

XML

Leases (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Revenues from contingent rent

	June 30, 2022		June 30, 2021		June 30, 2020
Contingent rent		8,296		2,360		3,604

Schedule of future minimum payments

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		-		-		5,685
Later than one year and not later than five years		-		-		12,971
Later than five years		-		-		5,907
		-		-		24,563

Schedule of non-cancellable operating leases

	June 30, 2022		June 30, 2021		June 30, 2020
No later than one year		2,709		6,597		1,796
Later than one year and not later than five years		7,066		13,215		50,938
Later than five years		1,274		3,716		23,899
		11,049		23,528		76,633

XML

Revenues (Tables)

12 Months Ended

Jun. 30, 2022

Revenues

Schedule of revenues

	June 30, 2022		June 30, 2021		June 30, 2020
Rental and services income		27,281		18,093		28,092
Sales of trading properties and developments		505		1,679		1,796
Revenue from hotels operation and tourism services		4,299		1,510		4,980
Total Group’s revenues		32,085		21,282		34,868

XML

Expenses by nature (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of expenses by nature

	Costs		General and administrative expenses		Selling expenses			Total as of June 30, 2022
Cost of sale of goods and services		609		-		-			609
Salaries, social security costs and other personnel expenses		4,311		2,012		151			6,474
Depreciation and amortization		620		307		4			931
Fees and payments for services		252		675		505			1,432
Maintenance, security, cleaning, repairs and others		3,497		445		3			3,945
Advertising and other selling expenses		1,327		-		312			1,639
Taxes, rates and contributions		1,092		213		1,277			2,582
Director´s fees		-		1,316		-			1,316
Leases and service charges		257		84		7			348
Allowance for doubtful accounts, net		-		-		(32	)		(32	)
Other expenses		151		225		10			386
Total as of June 30, 2022		12,116		5,277		2,237			19,630

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2021
Cost of sale of goods and services		1,639		-		-		1,639
Salaries, social security costs and other personnel expenses		3,671		1,896		239		5,806
Depreciation and amortization		675		367		9		1,051
Fees and payments for services		208		374		484		1,066
Maintenance, security, cleaning, repairs and others		2,754		448		4		3,206
Advertising and other selling expenses		587		-		66		653
Taxes, rates and contributions		837		204		1,290		2,331
Director´s fees		-		1,386		-		1,386
Leases and service charges		310		59		23		392
Allowance for doubtful accounts, net		-		-		318		318
Other expenses		82		214		10		306
Total as of June 30, 2021		10,763		4,948		2,443		18,154

	Costs		General and administrative expenses		Selling expenses		Total as of June 30, 2020
Cost of sale of goods and services		1,540		-		-		1,540
Salaries, social security costs and other personnel expenses		4,692		1,968		330		6,990
Depreciation and amortization		800		369		5		1,174
Fees and payments for services		369		928		108		1,405
Maintenance, security, cleaning, repairs and others		4,247		558		8		4,813
Advertising and other selling expenses		1,269		-		169		1,438
Taxes, rates and contributions		1,112		220		1,530		2,862
Director´s fees		-		1,005		-		1,005
Leases and service charges		328		57		48		433
Allowance for doubtful accounts, net		-		-		761		761
Other expenses		192		308		29		529
Total as of June 30, 2020		14,549		5,413		2,988		22,950

XML

Cost of goods sold and services provided (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of cost of goods sold and services

	Total as of June 30, 2022			Total as of June 30, 2021			Total as of June 30, 2020
Inventories at the beginning of the year (*)		3,001			29,200			24,625
Purchases and expenses		12,631			2,278			141,883
Capitalized finance costs		-			-			30
Currency translation adjustment		(157	)		(9,485	)		20,350
Transfers		-			(502	)		495
Deconsolidation		-			(7,727	)		(382	)
Incorporated by business combination		-			-			651
Inventories at the end of the year (*)		(3,359	)		(3,001	)		(29,200	)
Total costs		12,116			10,763			158,452

Schedule of inventories

	Total as of June 30, 2022		Total as of June 30, 2021
Real estate		3,234		2,883
Others		125		118
Total inventories at the end of the year (*)		3,359		3,001

XML

Other operating results net (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of other operating results

	June 30, 2022			June 30, 2021			June 30, 2020
Result from purchase / sale of subsidiary and associates		-			59			(15	)
Donations		(150	)		(223	)		(244	)
Lawsuits and other contingencies		(276	)		(142	)		(269	)
Administration fees		37			16			37
Interest and discount generated by operating credits		128			157			417
Others		322			(8	)		269
Total other operating results, net		61			(141	)		195

XML

Financial results net (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of financial results

	June 30, 2022			June 30, 2021			June 30, 2020
Finance income:
- Interest income		463			591			491
- Dividend income		-			1			34
Total finance income		463			592			525
Finance costs:
- Interest expenses		(8,291	)		(11,437	)		(14,524	)
- Other finance costs		(902	)		(1,299	)		(923	)
Subtotal finance costs		(9,193	)		(12,736	)		(15,447	)
Capitalized finance costs		-			768			277
Total finance costs		(9,193	)		(11,968	)		(15,170	)
Other financial results:
- Fair value gain of financial assets and liabilities at fair value through profit or loss, net		1,454			8,720			828
- Exchange rate differences, net		14,406			11,512			(15,386	)
- Gain / (loss) from repurchase of NCN		1,460			(156	)		228
- Gain / (loss) from derivative financial instruments, net		33			(740	)		(901	)
- Other financial results		439			(121	)		-
Total other financial results		17,792			19,215			(15,231	)
- Inflation adjustment		2,789			(2,370	)		(26	)
Total financial results, net		11,851			5,469			(29,902	)

XML

Earnings per share (Tables)

12 Months Ended

Jun. 30, 2022

Profit / (loss) per share attributable to equity holders of the parent: (ii)

Schedule of reconciliation between the weighted-average number of common shares outstanding

	June 30, 2022		June 30, 2021		June 30, 2020
Weighted - average outstanding shares		809		588		575
Adjustments for calculation of diluted earnings per share
Treasury shares		2		-		2
Warrants		80		-		-
Weighted - average diluted common shares		891		588		577

Schedule of basic earnings per share

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		809		588			575
Basic earnings per share		42.73		(83.41	)		61.00

Schedule of diluted earnings per share

	June 30, 2022		June 30, 2021			June 30, 2020
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent		34,552		(37,515	)		49,084
Loss for the year of discontinued operations attributable to equity holders of the parent		-		(11,562	)		(13,984	)
Profit / (loss) for the year per share attributable to equity holders of the parent		34,552		(49,077	)		35,100
Weighted average number of common shares outstanding		891		588			579
Diluted earnings per share		38.79		(83.41	)		60.66

XML

Employee benefits and share-based payments (Tables)

12 Months Ended

Jun. 30, 2022

Employee benefits and share-based payments (Tables)

Schedule of movements in the number of matching shares outstanding

	June 30, 2022		June 30, 2021		June 30, 2020
At the beginning		2.1		2.4		2.8
Granted		-0.1		-0.3		-0.4
At the end		2		2.1		2.4

XML

Related party transactions (Tables)

12 Months Ended

Jun. 30, 2022

Related party transactions

Schedule of company's senior management

Name	Date of Birth	Position	Current position since
Eduardo S. Elsztain	01/26/1960	General Manager	1991
Arnaldo Jawerbaum	08/13/1966	Operating Manager	2022
Jorge Cruces	11/07/1966	Investment Manager	2020
Matías I. Gaivironsky	02/23/1976	Administrative and Financial Manager	2011

Schedule of balances with related parties

Item	June 30, 2022			June 30, 2021
Trade and other receivables		4,382			4,888
Investments in financial assets		2,834			2,583
Borrowings		(166	)		(1,479	)
Lease liabilities		-			(10	)
Trade and other payables		(1,114	)		(740	)
Total		5,936			5,242

Schedule of results with related parties

Related party	June 30, 2022	June 30, 2021	Description of transaction	Item
New Lipstick LLC	30	38	Reimbursement of expenses receivable	Trade and other receivable
Condor	-	902	Public companies securities	Trade and other receivable
	-	469	Loans granted	Trade and other receivable
	-	8	Others	Trade and other receivable
	-	79	Others	Investment in financial assets
Comparaencasa Ltd.	273	-	Other investments	Investments in financial assets
	(41)	-	Others	Trade and other payables
Galerias Pacifico	703	214	Others	Trade and other receivable
Lipstick Management LLC	-	(262)	Loans obtained	Borrowings
Metropolitan 885 Third Av. LLC (1)	-	(774)	Loans obtained	Borrowings
La Rural S.A.	246	120	Loans granted	Trade and other receivable
	204	335	Dividends	Trade and other receivable
	(5)	-	Others	Trade and other payables
	4	-	Others	Trade and other receivable
	-	(21)	Leases and/or rights of use payable	Trade and other payables
Other associates and joint ventures	1	3	Reimbursement of expenses receivable	Trade and other receivable
	(61)	(60)	Loans obtained	Borrowings
	7	10	Leases and/or rights of use receivable	Trade and other receivable
	-	(3)	Unpaid contributions	Trade and other payables
	19	10	Management Fee	Trade and other receivable
	(63)	(172)	NCN	Borrowings
	(42)	(120)	Others	Trade and other payables
	50	40	Others	Trade and other receivable
	1	2	Share based payments	Trade and other payables
	-	(10)	Lease liabilities	Lease liabilities
	-	11	Loans granted	Trade and other receivable
Total associates and joint ventures	1,326	819
Cresud	5	21	Reimbursement of expenses receivable	Trade and other receivable
	(416)	(146)	Corporate services receivable	Trade and other payables
	2,561	2,504	NCN	Investment in financial assets
	(205)	(236)	Others	Trade and other payables
	(3)	(5)	Share based payments	Trade and other payables
Total parent company	1,942	2,138
Futuros y Opciones S.A.	-	(156)	Loans obtained	Borrowings
	2	5	Others	Trade and other receivable
Helmir S.A.	(42)	(52)	NCN	Borrowings
Total subsidiaries of parent company	(40)	(203)
Directors	(364)	(207)	Fees for services received	Trade and other payables
	603	8	Advances	Trade and other receivable
Yad Levim LTD (2)	2,209	2,638	Loans granted	Trade and other receivable
Others (3)	(13)	(2)	Leases and/or rights of use receivable	Trade and other payables
	-	(3)	Loans obtained	Borrowings
	274	25	Others	Trade and other receivable
	(14)	-	Others	Trade and other payables
	(12)	(2)	Management Fee	Trade and other payables
	25	31	Reimbursement of expenses receivable	Trade and other receivable
Total directors and others	2,708	2,488
Total at the end of the year	5,936	5,242

Related party	June 30, 2022	June 30, 2021	June 30, 2020		Description of transaction
BACS	58	128	126		Financial operations
Metropolitan 885 Third Av. LLC (1)	31	25	(11)		Financial operations
BHN Vida S.A	25	25	25		Leases and/or rights of use
BHN Seguros Generales S.A.	24	10	25		Leases and/or rights of use
Lipstick Management LLC	20	14	(36)		Financial operations
Comparaencasa Ltd.	192	-	-		Financial operations
La Rural S.A.	-	(25)	-		Leases and/or rights of use
Condor	27	418	-		Financial operations
Otras asociadas y negocios conjuntos	136	19		82	Financial operations
	(14)	(13)	23		Leases and/or rights of use
	31	-	(323)		Corporate services
Total associates and joint ventures	530	601	(89)
Cresud	61	59	48		Leases and/or rights of use
	(1,139)	(1,169)	(1,154)		Corporate services
	(25)	540	551		Financial operations
Total parent company	(1,103)	(570)	(555)
Helmir	1	157	-		Financial operations
Total subsidiaries of parent company	1	157	-
Directors	(1,316)	(1,386)	(1,005)		Fees and remunerations
Senior Management	(77)	(72)	(74)		Fees and remunerations
Yad Leviim LTD	113	-	-		Corporate services
Otras (2)	6	-	-		Corporate services
	10	(26)	-		Leases and/or rights of use
	17	(3)	-		Financial operations
	(63)	(87)	-		Donations
	(15)	-	(57)		Fees and remuneration
	(49)	(49)	(72)		Legal services
Total others	(1,374)	(1,623)	(1,208)
Total at the end of the year	(1,946)	(1,435)	(1,852)

Schedule of transactions with related parties

Related party	June 30, 2022	June 30, 2021	Description of the operation
Cresud	-	289	Dividends granted
Total dividends distribution	-	289
Quality	41	(49)	Capital contributions
Condor	865	-	Exchange of shares
Puerto Retiro	-	(20)	Capital contributions
Comparaencasa	129	-	Capital contributions
Total capital contributions	1,035	(69)
Condor	3,586	-	Dividends received
Total other transactions	3,586	-

XML

Foreign currency assets and liabilities (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of book amounts of foreign currency assets and liabilities

Item / Currency (3)	Amount (1)		Peso exchange rate (2)		Total as of 06.30.22		Total as of 06.30.21
Assets
Trade and other receivables
US Dollar		27		125.03		3,413		5,329
Euros		-		130.88		11		39
Receivables with related parties:
US Dollar		18		125.23		2,264		3,152
Total trade and other receivables						5,688		8,520
Investments in financial assets
US Dollar		14		125.03		1,723		1,107
Pounds		1		130.95		98		164
New Israel Shekel		16		35.93		574		1,000
Investments with related parties:
US Dollar		23		125.23		2,864		3,676
Total investments in financial assets						5,259		5,947
Cash and cash equivalents
US Dollar		74		125.03		9,224		1,728
Euros		-		130.88		1		2
Total cash and cash equivalents						9,225		1,730
Total Assets						20,172		16,197
Liabilities
Trade and other payables
US Dollar		9		125.23		1,073		1,983
Euros		-		131.40		1		52
Payables to related parties:
US Dollar		-		125.23		60		87
Total Trade and other payables						1,134		2,122
Borrowings
US Dollar		499		125.23		62,503		82,145
Borrowings with related parties
US Dollar		1		125.23		139		2,386
Total Borrowings						62,642		84,531
Derivative financial instruments
US Dollar		-		125.23		16		95
Total derivative financial instruments						16		95
Lease liabilities
US Dollar		9		125.23		1,115		1,282
Lease liabilities with related parties
US Dollar		-		125.23		-		10
Total lease liabilities						1,115		1,292
Total Liabilities						64,907		88,040

XML

Results from discontinued operations (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of discontinued operations

	June 30, 2022		June 30, 2021			June 30, 2020
Revenues		-		62,057			255,065
Costs		-		(50,353	)		(182,872	)
Gross profit		-		11,704			72,193
Net loss from fair value adjustment of investment properties		-		(45	)		(7,363	)
General and administrative expenses		-		(7,143	)		(24,309	)
Selling expenses		-		(6,805	)		(33,302	)
Impairment of associates and joint ventures		-		-			(6,084	)
Other operating results, net		-		2,322			879
Profit from operations		-		33			2,014
Share of profit of associates and joint ventures		-		1,178			3,567
Profit before financial results and income tax		-		1,211			5,581
Finance income		-		862			3,316
Finance cost		-		(11,316	)		(41,940	)
Other financial results		-		749			(19,789	)
Financial results, net		-		(9,705	)		(58,413	)
Loss before income tax		-		(8,494	)		(52,832	)
Income tax		-		454			(413	)
Loss from operations that are discontinued		-		(8,040	)		(53,245	)
(Loss) / gain for loss of control		-		(6,593	)		45,133
Loss from discontinued operations		-		(14,633	)		(8,112	)
(Loss) / profit for the year from discontinued operations attributable to:
Equity holders of the parent		-		(11,562	)		(13,984	)
Non-controlling interest		-		(3,071	)		5,872
Loss per share from discontinued operations attributable to equity holders of the parent:
Basic		-		(19.65	)		(24.30	)
Diluted		-		(19.65	)		(24.30	)

XML

The Groups business and general information (Details Narrative)	12 Months Ended
	Jun. 30, 2022
Business combinations interest, percent	29.91%
Ownership[ Interest	50.00%

XML

Summary of significant accounting (Details)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Annual	64.00%	50.00%	43.00%
Accumulated in three years	252.00%

XML

Summary of significant accounting policies (Details 1)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Tyrus S.A.'s Direct Interest [Member] | DFL and DN BV [Member]
Statement [Line Items]
Country	Bermuda’s / Netherlands
Main activity	Investment
% of ownership interest held by the Group	99.50%	99.50%	97.04%
Tyrus S.A.'s Direct Interest [Member] | IRSA International LLC [Member]
Statement [Line Items]
Country	USA
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
Tyrus S.A.'s Direct Interest [Member] | Jiwin S.A. [Member]
Statement [Line Items]
Country	Uruguay
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
Tyrus S.A.'s Direct Interest [Member] | Real Estate Strategies LLC [Member]
Statement [Line Items]
Country	USA
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
Tyrus S.A.'s Direct Interest [Member] | Liveck S.A. [Member]
Statement [Line Items]
Country	British Virgin Islands
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Efanur S.A. [Member]
Statement [Line Items]
Country	Uruguay
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Hoteles Argentinos S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Hotel
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Inversora Bolivar S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Argentina
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Llao Llao Resorts S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Hotel
% of ownership interest held by the Group	50.00%	50.00%	50.00%
IRSA's Direct Interest [Member] | Nuevas Fronteras S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Hotel
% of ownership interest held by the Group	76.34%	76.34%	76.34%
IRSA's Direct Interest [Member] | Palermo Invest S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Ritelco S.A. [Member]
Statement [Line Items]
Country	Uruguay
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | Tyrus S.A. [Member]
Statement [Line Items]
Country	Uruguay
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA's Direct Interest [Member] | U.T. IRSA y Galerias Pacifico [Member]
Statement [Line Items]
Country	Argentina
Main activity	Investment
% of ownership interest held by the Group	50.00%	50.00%	50.00%
IRSA's Direct Interest [Member] | E-Commerce Latina S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA CP's Direct Interest [Member] | Panamerican Mall S.A [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	80.00%	80.00%	80.00%
IRSA CP's Direct Interest [Member] | Arcos del Gourmet S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	90.00%	90.00%	90.00%
IRSA CP's Direct Interest [Member] | Emprendimiento Recoleta S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	53.68%	53.68%	53.68%
IRSA CP's Direct Interest [Member] | Fibesa S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA CP's Direct Interest [Member] | Shopping Neuquen S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	99.95%	99.95%	99.95%
IRSA CP's Direct Interest [Member] | Torodur S.A. [Member]
Statement [Line Items]
Country	Uruguay
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA CP's Direct Interest [Member] | EHSA [Member]
Statement [Line Items]
Country	Argentina
Main activity	Investment
% of ownership interest held by the Group	70.00%	70.00%	70.00%
IRSA CP's Direct Interest [Member] | Centro De Entretenimiento La Plata [Member]
Statement [Line Items]
Country	Argentina
Main activity	Real estate
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IRSA CP's Direct Interest [Member] | Pareto S.A. [Member]
Statement [Line Items]
Country	Argentina
Main activity	Design and software development
% of ownership interest held by the Group	93.63%	93.63%	69.69%
IRSA CP's Direct Interest [Member] | La Malteria [Member]
Statement [Line Items]
Country	Argentina
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	100.00%
Efanur S.A.'s Direct Interest [Member] | Real Estate Investment Group VII LP (REIG VII) [Member]
Statement [Line Items]
Country	Bermuda’s
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
DFL's Direct Interest [Member] | IDB Development Corporation Ltd [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	100.00%
DFL's Direct Interest [Member] | Dolphin IL Investment Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	100.00%	100.00%	100.00%
IDBD's Direct Interest [Member] | IDB Tourism (2009) Ltd [Member]
Statement [Line Items]
Country	Israel
Main activity	Tourism services
% of ownership interest held by the Group	0.00%	0.00%	100.00%
IDBD's Direct Interest [Member] | IDB Group Investment Inc. [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	100.00%
DIC's Direct Interest [Member] | Property And Building Corporation Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	72.40%
DIC's Direct Interest [Member] | Cellcom Israel Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Telecommunications
% of ownership interest held by the Group	0.00%	0.00%	46.20%
DIC's Direct Interest [Member] | Elron Electronic Industries Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	61.06%
DIC's Direct Interest [Member] | Bartan Holdings and Investments Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	55.68%
DIC's Direct Interest [Member] | Epsilon Investment House Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	68.75%
DIC's Direct Interest [Member] | Mehadrin Ltd [Member]
Statement [Line Items]
Country	Israel
Main activity	Agricultural
% of ownership interest held by the Group	0.00%	0.00%	43.75%
DIL's Direct Interest [Member] | Discount Investment Corporation Ltd [Member]
Statement [Line Items]
Country	Israel
Main activity	Investment
% of ownership interest held by the Group	0.00%	0.00%	83.72%
PBC's direct interest [Member] | Gav-Yam Bayside Land Corporation Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	0.00%
PBC's direct interest [Member] | Ispro The Israeli Properties Rental Corporation Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	100.00%
PBC's direct interest [Member] | Matam - Scientific Industries Center Haifa Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group		0.00%	50.10%
PBC's direct interest [Member] | Hadarim Properties Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	100.00%
PBC's direct interest [Member] | Property & Building (Commercial Centers) Ltd. [Member]
Statement [Line Items]
Country	Israel
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	100.00%
PBC's direct interest [Member] | PBC USA Investments Inc [Member]
Statement [Line Items]
Country	USA
Main activity	Real estate
% of ownership interest held by the Group	0.00%	0.00%	100.00%

XML

Summary of significant accounting policies (Details 2)	12 Months Ended
	Jun. 30, 2022
Telecommunications [Member]
Statement [Line Items]
Useful life of property, plant and equipment	Between 4 and 20 years
Buildings And Facilities [Member]
Statement [Line Items]
Useful life of property, plant and equipment	Between 5 and 50 years
Machinery and Equipment [Member]
Statement [Line Items]
Useful life of property, plant and equipment	Between 3 and 24 years
Other PPE [Member]
Statement [Line Items]
Useful life of property, plant and equipment	Between 3 and 25 years

XML

Summary of significant accounting policies (Details Narrative)	12 Months Ended
	Jun. 30, 2021
Associates voting rights, description	Associates are all entities over which the Group has significant influence but not control, usually representing an interest between 20% and at least 50% of the voting rights.

XML

Acquisitions and disposals (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands	1 Months Ended					12 Months Ended
	Apr. 19, 2022 ft²	Feb. 18, 2022 USD ($) ft²	Dec. 22, 2021 ARS ($) $ / shares shares	Dec. 22, 2021 $ / shares	Sep. 22, 2021 USD ($)	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)	Mar. 29, 2022 ARS ($) ft²	Dec. 15, 2021 USD ($)	Nov. 02, 2021 ARS ($) ft²	Mar. 09, 2021 ARS ($) ft²
Statement [Line Items]
Total operation										$ 9,200,000
Dividend distribution						$ (176,000)	$ (1,189,000)	$ (5,623,000)
Distribution of dividends in kind [Member]
Statement [Line Items]
Dividend distribution			$ 25,300
Ordinary shares distibuted | shares			3,191,213
Ordinary shares distributed, value			$ 410
Interest rate	79.92%
Dividend distribution, per share | $ / shares				$ 7.94
Dividend Common Shares | $ / shares			$ 0.127
Investment in Condor Hospitality Trust [Member]
Statement [Line Items]
Capital stock					$ 305,000,000
Merger by absorption of IRSA and IRSA Propiedades Comerciales [Member]
Statement [Line Items]
Ordinary shares distibuted | shares			152,158,215
Dividend distribution, per share | $ / shares				$ 0.56
Dividend Common Shares | $ / shares			$ 1.40
Acquisition of Beruti real estate [Member]
Statement [Line Items]
Covering a total area | ft²		2,386.63
Total covered area | ft²		8,136.85
Purchase Price		$ 2,159
Republica Building Sale [Member]
Statement [Line Items]
Covering a total area | ft²	521,400
Interest rate	100.00%
Descripton of sale	The transaction price was set at USD 131.8 million (USD/square meters 6,629), approximately 80% has already been paid in cash (USD 105,1 million or ARS 11,944.8 million), and the remaining amount has been paid with the delivery of a 46-hectare plot
Sale of Boston Tower building [Member]
Statement [Line Items]
Covering a total area | ft²									2,370		3,582	3,550
Transaction price									$ 20,400		$ 32,000	$ 31,600

XML

Financial risk management and fair value estimates (Details) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Net monetary position (liability) /asset	$ (44,735)	$ (71,843)
Market Risk [Member] | Uruguayan Peso [Member]
Statement [Line Items]
Net monetary position (liability) /asset	$ (44,735)	$ (71,843)

XML

Financial risk management and fair value estimates (Details 1) - ARS ($)	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Trade and other payables	$ 3,557,000,000	$ 2,274,000,000
Liquidity Risk [Member]
Statement [Line Items]
Trade and other payables	4,834,000,000	5,073,000,000
Borrowings (excluding finance leases liabilities)	74,734	101,887
Finance leases obligations	2,462	3,488
Derivative Financial Instruments	16	94
Total obligations	82,046,000,000	110,542,000,000
Liquidity Risk [Member] | Less Than 1 year [Member]
Statement [Line Items]
Trade and other payables	4,625	4,900
Borrowings (excluding finance leases liabilities)	61,682	25,268
Finance leases obligations	87	153
Derivative Financial Instruments	16	79
Total obligations	66,410,000,000	30,400,000,000
Liquidity Risk [Member] | Between 1 And 2 Years [Member]
Statement [Line Items]
Trade and other payables	103	171
Borrowings (excluding finance leases liabilities)	10,470	66,631
Finance leases obligations	88	143
Derivative Financial Instruments	0	15
Total obligations	10,661,000,000	66,960,000,000
Liquidity Risk [Member] | Between 2 and 3 years [Member]
Statement [Line Items]
Trade and other payables	40	2
Borrowings (excluding finance leases liabilities)	2,150	9,338
Finance leases obligations	93	146
Derivative Financial Instruments	0	0
Total obligations	2,283,000,000	9,486,000,000
Liquidity Risk [Member] | Between 3 and 4 years [Member]
Statement [Line Items]
Trade and other payables	26	0
Borrowings (excluding finance leases liabilities)	115	346
Finance leases obligations	99	148
Derivative Financial Instruments	0	0
Total obligations	240,000,000	494,000,000
Liquidity Risk [Member] | More Than 4 Years [Member]
Statement [Line Items]
Trade and other payables	40	0
Borrowings (excluding finance leases liabilities)	317	304
Finance leases obligations	2,095	2,898
Derivative Financial Instruments	0	0
Total obligations	$ 2,452,000,000	$ 3,202,000,000

XML

Financial risk management and fair value estimates (Details 2) - Operations Center in Argentina [Member]	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Gearing ratio	31.99%	50.12%
Debt ratio	24.31%	32.37%

XML

Financial risk management and fair value estimates (Details Narrative) - ARS ($) shares in Millions	1 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Interest Rate Risk [member]
Statement [Line Items]
Increase in floating rates	1.00%	1.00%
Decrease in floating rates	1.00%	1.00%
Fixed interest rate on long-term borrowing	99.10%	96.30%
Other Price Risk [Member] | Derivatives [Member]
Statement [Line Items]
Financial investment	1,346	1,600
Decrease in quoted prices of equity securities	10.00%
Increase derivative financial instruments	10.00%
Loss before income tax	$ 135,000,000	$ 160,000,000
Credit Risk [Member] | Operations Center in Argentina [Member]
Statement [Line Items]
Percentage of trade receivable by group	96.60%	95.60%
Property receivable sale of trading properties	2.30%	4.10%
Foreign Exchange risk and associated derivative financial instruments [Member]
Statement [Line Items]
Appreciation of the foreign currency against Argentine Peso	10.00%
Statement of Income and Other Comprehensive Income before income tax	$ 4,474	$ 7,184

XML

Segment information (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Revenues	$ 32,085,000,000	$ 21,282,000,000	$ 34,868,000,000
Costs	12,116,000,000	10,763,000,000	14,549,000,000
Gross profit / (loss)	19,969,000,000	10,519,000,000	20,319,000,000
Net loss from fair value adjustment of investment properties	(13,650,000,000)	12,742,000,000	83,080,000,000
General and administrative expenses	5,277,000,000	4,948,000,000	5,413,000,000
Selling expenses	2,237,000,000	2,443,000,000	2,988,000,000
Other operating results, net	61,000,000	(141,000,000)	195,000,000
Loss from operations	26,166,000,000	(9,755,000,000)	95,193,000,000
Share of loss of associates and joint ventures	(355,000,000)	(7,182,000,000)	17,787,000,000
Segment profit	25,811,000,000	(16,937,000,000)	112,980,000,000
Operations Center in Israel [Member]
Statement [Line Items]
Revenues	32,085,000,000	21,282,000,000	34,868,000,000
Costs	(12,116,000,000)	(10,763,000,000)	(14,549,000,000)
Gross profit / (loss)	19,969,000,000	10,519,000,000	20,319,000,000
Net loss from fair value adjustment of investment properties	13,650,000,000	(12,742,000,000)	83,080,000,000
General and administrative expenses	5,277,000,000	4,948,000,000	5,413,000,000
Selling expenses	2,237,000,000	2,443,000,000	2,988,000,000
Other operating results, net	61,000,000	(141,000,000)	195,000,000
Loss from operations	26,166,000,000	(9,755,000,000)	95,193,000,000
Share of loss of associates and joint ventures	(355,000,000)	(7,182,000,000)	17,787,000,000
Segment profit	25,811,000,000	(16,937,000,000)	112,980,000,000
Reportable assets	372,792,000,000	365,325,000,000	1,544,809,000,000
Reportable liabilities	(203,065,000,000)	(229,672,000,000)	(1,242,703,000,000)
Net reportable assets	169,727,000,000	135,653,000,000	302,106,000,000
Operations Center in Israel [Member] | Income and Other Comprehensive Income, Total [Member]
Statement [Line Items]
Revenues	25,593,000,000	16,585,000,000	27,434,000,000
Costs	(5,333,000,000)	(5,665,000,000)	(6,725,000,000)
Gross profit / (loss)	20,260,000,000	10,920,000,000	20,709,000,000
Net loss from fair value adjustment of investment properties	12,328,000,000	(12,542,000,000)	83,728,000,000
General and administrative expenses	5,327,000,000	5,049,000,000	5,527,000,000
Selling expenses	2,242,000,000	2,477,000,000	3,029,000,000
Other operating results, net	28,000,000	(256,000,000)	29,000,000
Loss from operations	25,047,000,000	9,404,000,000	95,910,000,000
Share of loss of associates and joint ventures	466,000,000	(6,541,000,000)	17,367,000,000
Segment profit	25,513,000,000	(15,945,000,000)	113,277,000,000
Reportable assets	325,837,000,000	335,973,000,000	1,498,210,000,000
Reportable liabilities	0	0	(987,692,000,000)
Net reportable assets	325,837,000,000	335,973,000,000	510,518,000,000
Operations Center in Israel [Member] | Elimination of Inter-Segment Transactions and Non-reportable Assets / Liabilities [Member]
Statement [Line Items]
Revenues	0	(51,000,000)	(54,000,000)
Costs	0	0	(7,956,000,000)
Gross profit / (loss)	0	(51,000,000)	(54,000,000)
Net loss from fair value adjustment of investment properties	0	0	(648,000,000)
General and administrative expenses	23,000,000	79,000,000	79,000,000
Selling expenses	0	0	41,000,000
Other operating results, net	(23,000,000)	(28,000,000)	(25,000,000)
Loss from operations	0	0	(169,000,000)
Share of loss of associates and joint ventures	0	0	420,000,000
Segment profit	0	0	(169,000,000)
Reportable assets	48,894,000,000	31,833,000,000	48,303,000,000
Reportable liabilities	(203,065,000,000)	(229,672,000,000)	(255,011,000,000)
Net reportable assets	(154,171,000,000)	(197,839,000,000)	(206,708,000,000)
Operations Center in Israel [Member] | Expenses and Collective Promotion Funds [Member]
Statement [Line Items]
Revenues	6,725,000,000	4,830,000,000	7,638,000,000
Costs	(6,874,000,000)	(5,213,000,000)	(7,956,000,000)
Gross profit / (loss)	(149,000,000)	(383,000,000)	(318,000,000)
Net loss from fair value adjustment of investment properties	0	0	(648,000,000)
General and administrative expenses	0	0	35,000,000
Selling expenses	0	0	41,000,000
Other operating results, net	56,000,000	176,000,000	149,000,000
Loss from operations	(93,000,000)	(207,000,000)	(169,000,000)
Share of loss of associates and joint ventures	0	0	420,000,000
Segment profit	(93,000,000)	(207,000,000)	(169,000,000)
Reportable assets	0	0	(1,704,000,000)
Reportable liabilities	0	0	0
Net reportable assets	0	0	(1,704,000,000)
Operations Center in Israel [Member] | Joint Ventures [Member]
Statement [Line Items]
Revenues	(233,000,000)	(82,000,000)	(150,000,000)
Costs	91,000,000	115,000,000	132,000,000
Gross profit / (loss)	(142,000,000)	33,000,000	(18,000,000)
Net loss from fair value adjustment of investment properties	1,322,000,000	(200,000,000)	(648,000,000)
General and administrative expenses	27,000,000	22,000,000	35,000,000
Selling expenses	5,000,000	34,000,000	41,000,000
Other operating results, net	0	(33,000,000)	42,000,000
Loss from operations	1,212,000,000	(144,000,000)	(548,000,000)
Share of loss of associates and joint ventures	(821,000,000)	(641,000,000)	420,000,000
Segment profit	391,000,000	(785,000,000)	(128,000,000)
Reportable assets	(1,939,000,000)	(2,481,000,000)	(1,704,000,000)
Reportable liabilities	0	0	0
Net reportable assets	$ (1,939,000,000)	$ (2,481,000,000)	$ (1,704,000,000)

XML

Segment information (Details 1) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Revenues	$ 32,085	$ 21,282	$ 34,868
Costs	12,116	10,763	14,549
Gross profit / (loss)	19,969	10,519	20,319
Net gain from fair value adjustment of investment properties	(13,650)	12,742	83,080
General and administrative expenses	5,277	4,948	5,413
Selling expenses	2,237	2,443	2,988
Other operating results, net	61	(141)	195
(Loss) / profit from operations	26,166	(9,755)	95,193
Segment (loss) / profit	25,811	(16,937)	112,980
Operations Center in Argentina [Member]
Statement [Line Items]
Revenues	25,593	16,585	27,434
Costs	(5,333)	(5,665)	(6,725)
Gross profit / (loss)	20,260	10,920	20,709
Net gain from fair value adjustment of investment properties	12,328	(12,542)	83,728
General and administrative expenses	5,327	5,049	5,527
Selling expenses	2,242	2,477	3,029
Other operating results, net	28	(256)	29
(Loss) / profit from operations	25,047	(9,404)	95,910
Share of profit of associates and joint ventures	466	(6,541)	17,367
Segment (loss) / profit	25,513	(15,945)	113,277
Investment properties and trading properties	302,908	310,921	359,162
Investment in associates and joint ventures	11,578	14,609	22,839
Other operating assets	11,351	10,443	7,820
Operating assets	325,837	335,973	389,821
Operations Center in Argentina [Member] | Shopping Malls [Member]
Statement [Line Items]
Revenues	17,334	8,727	14,569
Costs	(1,495)	(1,428)	(1,401)
Gross profit / (loss)	15,839	7,299	13,168
Net gain from fair value adjustment of investment properties	553	(33,349)	(5,185)
General and administrative expenses	2,862	2,348	2,044
Selling expenses	847	740	1,751
Other operating results, net	(142)	(207)	42
(Loss) / profit from operations	12,541	(29,345)	4,230
Share of profit of associates and joint ventures	0	0	0
Segment (loss) / profit	12,541	(29,345)	4,230
Investment properties and trading properties	91,770	89,070	120,956
Investment in associates and joint ventures	0	0	0
Other operating assets	299	436	500
Operating assets	92,069	89,506	121,456
Operations Center in Argentina [Member] | Offices [Member]
Statement [Line Items]
Revenues	3,041	4,401	5,616
Costs	(293)	(236)	(192)
Gross profit / (loss)	2,748	4,165	5,424
Net gain from fair value adjustment of investment properties	(5,391)	9,088	54,755
General and administrative expenses	341	685	601
Selling expenses	78	307	185
Other operating results, net	(23)	(8)	(20)
(Loss) / profit from operations	(3,085)	12,253	59,373
Share of profit of associates and joint ventures	0	0	0
Segment (loss) / profit	(3,085)	12,253	59,373
Investment properties and trading properties	68,197	119,013	147,863
Investment in associates and joint ventures	0	0	0
Other operating assets	2,537	1,839	160
Operating assets	70,734	120,852	148,023
Operations Center in Argentina [Member] | Sales and Developments [Member]
Statement [Line Items]
Revenues	746	1,271	2,025
Costs	(581)	(1,379)	(1,825)
Gross profit / (loss)	165	(108)	200
Net gain from fair value adjustment of investment properties	17,106	11,658	34,495
General and administrative expenses	1,058	1,164	1,217
Selling expenses	922	1,145	502
Other operating results, net	(48)	(8)	(111)
(Loss) / profit from operations	15,243	9,233	32,865
Share of profit of associates and joint ventures	0	(26)	0
Segment (loss) / profit	15,243	9,207	32,865
Investment properties and trading properties	142,511	102,415	89,401
Investment in associates and joint ventures	0	0	1,310
Other operating assets	2,984	3,271	1,931
Operating assets	145,495	105,686	92,642
Operations Center in Argentina [Member] | Hotels [Member]
Statement [Line Items]
Revenues	4,300	1,510	4,978
Costs	(2,456)	(1,746)	(3,066)
Gross profit / (loss)	1,844	(236)	1,912
Net gain from fair value adjustment of investment properties	0	0	0
General and administrative expenses	730	699	897
Selling expenses	340	231	566
Other operating results, net	(59)	(20)	(49)
(Loss) / profit from operations	715	(1,186)	400
Share of profit of associates and joint ventures	0	0	0
Segment (loss) / profit	715	(1,186)	400
Investment properties and trading properties	0	0	0
Investment in associates and joint ventures	0	0	0
Other operating assets	4,183	4,269	4,527
Operating assets	4,183	4,269	4,527
Operations Center in Argentina [Member] | Other [Member]
Statement [Line Items]
Revenues	172	676	246
Costs	(508)	(876)	(241)
Gross profit / (loss)	(336)	(200)	5
Net gain from fair value adjustment of investment properties	60	61	337
General and administrative expenses	336	153	768
Selling expenses	55	54	25
Other operating results, net	300	(13)	167
(Loss) / profit from operations	(367)	(359)	(958)
Share of profit of associates and joint ventures	466	(6,515)	17,367
Segment (loss) / profit	99	(6,874)	16,409
Investment properties and trading properties	430	423	942
Investment in associates and joint ventures	11,578	14,609	21,529
Other operating assets	1,348	628	702
Operating assets	$ 13,356	$ 15,660	$ 23,173

XML

Segment information (Details Narrative) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Maximum allowed percentage of revenue	10.00%	10.00%	10.00%
Revenues	$ 505	$ 1,679	$ 1,796
Operations Center in Argentina [Member]
Statement [Line Items]
Revenues	25,579	16,557	26,221
Reportable assets	323,901	328,863	405,499
Uruguay [Member]
Statement [Line Items]
Revenues			1,179
Reportable assets	1,630	1,468	1,433
U.S.A [Member]
Statement [Line Items]
Revenues	14	28	34
Reportable assets	296	5,692	(17,121)
Other Countries [Member]
Statement [Line Items]
Reportable assets	$ 1,936	$ 7,110	$ (15,678)

XML

Information about the main subsidiaries (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Current Assets	$ 42,419	$ 22,833
Non-current Assets	330,373	342,492
Current Liabilities	86,429	36,304
Non-current Liabilities	116,636	193,368
Net assets	372,792	365,325
Book value of controlling interests	10,874	34,259
Revenues	32,085	21,282	$ 34,868
Net income / (loss)	34,892	(61,641)	58,461
Cash of Operating activities	12,677	2,389	76,630
Cash of investing activities	11,195	110,455	112,306
Cash of financial activities	(13,663)	(79,234)	(199,697)
Net (decrease) / increase in cash and cash equivalents	10,209	33,610	$ (10,761)
IRSA Inversionesy Representaciones Sociedad Anonima (IRSA) [Member]
Statement [Line Items]
Revenues	3,766	3,230
Net income / (loss)	(1,129)	(3,754)
Cash of Operating activities	2,415	1,428
Cash of investing activities	(292)	(391)
Cash of financial activities	(2,112)	(1,123)
Net (decrease) / increase in cash and cash equivalents	11	(86)
Dividends distribution to non-controlling shareholders	$ 0	$ 0
Panamerican Mall S.A [Member]
Statement [Line Items]
Direct interest of non-controlling interest %	20.00%	20.00%
Direct interest of controlling interest	80.00%	80.00%
Current Assets	$ 760	$ 973
Non-current Assets	64,049	59,599
Current Liabilities	2,054	3,050
Non-current Liabilities	15,344	17,882
Net assets	42,961	44,090
Book value of non-controlling interests	8,592	8,818
Book value of controlling interests	$ 34,369	$ 35,272

XML

Information about the main subsidiaries (Details Narrative) - ARS ($)		1 Months Ended	12 Months Ended
	Jan. 08, 2019	Aug. 10, 2018	Jun. 30, 2022	Dec. 26, 2021	Jun. 30, 2021	Sep. 21, 2020	Jun. 28, 2019
Statement [Line Items]
Non-controlling interest			$ 4,309		$ 25,441
Designated percentage	46.31%	46.316%
Description of legal reserve			According to Law N° 19,550, 5% of the profit of the year is destined to the constitution of a legal reserve until it reaches the legal capped amount (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses
Description of term monthly fees			established an initial monthly fee of ARS 0.2 million (plus VAT) until December 31, 2025, and ARS 0.25 million (plus VAT) as of January 1, 2026, these values being adjustable every 2 years until the end of the term of the concession
Amount set as real surety							$ 60,500,000
Expiration period			November 18, 2018
Income received percentage		7.36%
IRSA [Member]
Statement [Line Items]
Non-controlling interest					$ 23,862
PAMSA [Member]
Statement [Line Items]
Non-controlling interest			$ 1,579
IDBD [Member]
Statement [Line Items]
Claimed amount						$ 140,000,000
Compensation amount				$ 140,000,000

XML

Investments in associates and joint ventures (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Beginning of the year	$ 19,936	$ 183,192
Capital contributions	1,035	69
Decrease of interest in associate	0	(71,905)
Deconsolidations	0	(79,438)
Impairment	0	(1,027)
Share of profit / (loss)	355	4,977
Currency translations adjustment	(473)	(5,869)
Dividends	(3,586)	0
Other comprehensive income	0	(89)
Others	(431)	(20)
End of the year	$ 16,126	$ 19,936

XML

Investments in associates and joint ventures (Details 1) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
La Rural S. A. [Member]
Statement [Line Items]
% ownership interest	50.00%	50.00%	50.00%
Group's interest in comprehensive income/(loss)	$ (42)	$ (221)	$ 251
Value of group interest in equity	$ 243	$ 277
Condor [Member]
Statement [Line Items]
% ownership interest	21.70%	18.89%	18.89%
Group's interest in comprehensive income/(loss)	$ 425	$ (679)	$ 295
Value of group interest in equity	$ 0	$ 2,657
Quality Invest [Member]
Statement [Line Items]
% ownership interest	50.00%	50.00%	50.00%
Group's interest in comprehensive income/(loss)	$ (983)	$ (425)	$ 456
Value of group interest in equity	$ 3,858	$ 4,800
New Lipstick [Member]
Statement [Line Items]
% ownership interest	49.96%	49.96%	49.96%
Group's interest in comprehensive income/(loss)	$ 69	$ (787)	$ 18,801
Value of group interest in equity	$ 143	$ 357
BHSA [Member]
Statement [Line Items]
% ownership interest	29.91%	29.91%	29.91%
Group's interest in comprehensive income/(loss)	$ 873	$ (1,240)	$ (936)
Value of group interest in equity	$ 9,665	$ 8,792
TGLT [Member]
Statement [Line Items]
% ownership interest	27.82%	27.82%	30.20%
Group's interest in comprehensive income/(loss)	$ (723)	$ (3,537)	$ (285)
Value of group interest in equity	$ 813	$ 1,537
Other joint ventures [Member]
Statement [Line Items]
% ownership interest	0.00%	0.00%	0.00%
Group's interest in comprehensive income/(loss)	$ (447)	$ (3,957)	$ (2,896)
Value of group interest in equity	1,404	1,516
Total Associates And Joint Ventures [Member]
Statement [Line Items]
Group's interest in comprehensive income/(loss)	(828)	(10,846)	$ 21,478
Value of group interest in equity	$ 16,126	$ 19,936

XML

Investments in associates and joint ventures (Details 2)	12 Months Ended
	Jun. 30, 2022 USD ($) shares
La Rural S. A. [Member]
Statement [Line Items]
Place of business / Country of incorporation	Argentina
Main activity	Organization of events
Common share 1 vote | shares	714,998
Share capital (nominal value)	$ 1
Loss for year	(58)
Shareholders equity	$ 339
Quality [Member]
Statement [Line Items]
Place of business / Country of incorporation	Argentina
Main activity	Real estate
Common share 1 vote | shares	225,146,912
Share capital (nominal value)	$ 406
Loss for year	(1,965)
Shareholders equity	$ 7,563
New Lipstick [Member]
Statement [Line Items]
Place of business / Country of incorporation	U.S.
Main activity	Real estate
Common share 1 vote | shares	0
Share capital (nominal value)	$ 0
Loss for year	(1)
Shareholders equity	$ (42)
BHSA [Member]
Statement [Line Items]
Place of business / Country of incorporation	Argentina
Main activity	Financial
Common share 1 vote | shares	448,689,072
Share capital (nominal value)	$ 1,500
Loss for year	(2,920)
Shareholders equity	$ 31,251
TGLT [Member]
Statement [Line Items]
Place of business / Country of incorporation	Argentina
Main activity	Real estate
Common share 1 vote | shares	257,330,595
Share capital (nominal value)	$ 925
Loss for year	(2,950)
Shareholders equity	$ 4,084

XML

Investments in associates and joint ventures (Details 3) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Current Assets	$ 42,419	$ 22,833
Non-current Assets	330,373	342,492
Current Liabilities	86,429	36,304
Non-current Liabilities	116,636	193,368
Net assets	$ 372,792	365,325
% ownership interest held	85.00%
Revenues	$ 32,085	21,282	$ 34,868
Net income / (loss)	34,892	(61,641)	58,461
Total comprehensive income / (loss)	34,715	(80,389)	93,390
Cash of operating activities	12,677	2,389	76,630
Net cash generated from / (used in) investing activities	11,195	110,455	112,306
Cash of financing activities	(13,663)	(79,234)	$ (199,697)
Quality Invest [Member]
Statement [Line Items]
Current Assets	61	8
Non-current Assets	11,490	14,499
Current Liabilities	70	164
Non-current Liabilities	3,919	4,898
Net assets	$ 7,562	$ 9,445
% ownership interest held	50.00%	50.00%
Interest in associate and joint venture	$ 3,781	$ 4,723
Goodwill and others	77	77
Book value	3,858	4,800
Revenues	206	74
Net income / (loss)	(1,965)	(849)
Total comprehensive income / (loss)	(1,965)	(849)
Dividend distribution	0	0
Cash of operating activities	(1)	(97)
Net cash generated from / (used in) investing activities	24	(7)
Cash of financing activities	(2)	104
Changes in cash and cash equivalents	21	0
BHSA [Member]
Statement [Line Items]
Current Assets	241,536	188,185
Non-current Assets	79,939	116,578
Current Liabilities	280,495	256,477
Non-current Liabilities	8,961	19,122
Net assets	$ 32,019	$ 29,164
% ownership interest held	29.91%	29.91%
Interest in associate and joint venture	$ 9,577	$ 8,723
Goodwill and others	88	69
Book value	9,665	8,792
Revenues	54,043	47,976
Net income / (loss)	(2,920)	(4,145)
Total comprehensive income / (loss)	2,920	(4,145)
Dividend distribution	0	0
Cash of operating activities	33,208	7,081
Net cash generated from / (used in) investing activities	(240)	(212)
Cash of financing activities	(24,583)	(46,143)
Changes in cash and cash equivalents	8,385	(39,274)
TGLT [Member]
Statement [Line Items]
Current Assets	7,511	8,460
Non-current Assets	12,371	19,366
Current Liabilities	8,176	8,117
Non-current Liabilities	7,677	12,635
Net assets	$ 4,029	$ 7,074
% ownership interest held	27.82%	27.82%
Interest in associate and joint venture	$ 1,121	$ 1,968
Goodwill and others	(308)	(431)
Book value	813	1,537
Revenues	4,198	4,196
Net income / (loss)	(2,129)	(3,142)
Total comprehensive income / (loss)	(2,089)	(3,155)
Dividend distribution	0	0
Cash of operating activities	(1,322)	185
Net cash generated from / (used in) investing activities	4,209	108
Cash of financing activities	(2,530)	(746)
Changes in cash and cash equivalents	$ 357	$ (453)

XML

Investments in associates and joint ventures (Details Narrative) $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2022 ARS ($) $ / shares shares	Jun. 30, 2021 ARS ($)	Jun. 30, 2022 USD ($) shares	Jun. 30, 2019 ARS ($)	Jan. 20, 2015 ARS ($)
Statement [Line Items]
Provisional Balance due		$ 11,085,086
Value of Group's interest in equity		$ 15,000,000,000,000	$ 11,085,086,000,000		$ 35,780,000,000
% ownership interest		85.00%
Quality Invest [Member]
Statement [Line Items]
% ownership interest		50.00%	50.00%
Amount owed						$ 18,926,541
New Lipstick [Member]
Statement [Line Items]
% ownership interest		49.96%	100.00%
BHSA [Member]
Statement [Line Items]
% ownership interest		29.91%	29.91%
Treasury stock | shares		26.8		26.8
Market Price | $ / shares		$ 7.78
Treasury shares				$ 30
Description of assumptions for future business cash flows		The discount rate used to discount actual dividend flows was 15.64% in 2022 and 14.02% in 2021
Interest Rate		100.00%
Year		9 years
TGLT [Member]
Statement [Line Items]
% ownership interest		27.82%	27.82%
Debt instrument, description	On January 20, 2015, Quality agreed with the Municipality of San Martin on certain re zoning and other urban planning matters (“the Agreement”) to surrender a non-significant portion of the land and a monetary consideration of ARS 40 million, payable in two installments of ARS 20 each, the first of which was actually paid on June 30, 2015. In July 2017, the Agreement was amended as follows: 1) a revised zoning plan must be submitted within 120 days as from the amendment date, and 2) the second installment of the monetary considerations was increased to ARS 76 million payables in 18 equal monthly installments. On March 8, 2018

XML

Investment properties (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Fair value at the beginning of the year	$ 300,337,000,000
Fair value at the end of the year	293,294,000,000	$ 300,337,000,000
Level 3 [Member] | Shopping Malls in Argentina [Member]
Statement [Line Items]
Fair value at the beginning of the year	146,863,000,000	380,822,000,000
Additions	2,052,000,000	1,250,000,000
Capitalized leasing costs	19,000,000	15,000,000
Amortization of capitalized leasing costs	(9,000,000)	(10,000,000)
Transfers / Reclassification to assets held for sale	(63,306,000,000)	0
Investment properties, deconsolidation	0	(192,757)
Disposals	0	0
Currency translation adjustment	0	(20,262,000,000)
Net gain / (loss) from fair value adjustment	(883,000,000)	(22,195,000,000)
Fair value at the end of the year	84,736,000,000	146,863,000,000
Level 2 [Member]
Statement [Line Items]
Fair value at the beginning of the year	153,474,000,000	179,631,000,000
Additions	7,364,000,000	449,000,000
Capitalized leasing costs	23,000,000	21,000,000
Amortization of capitalized leasing costs	(36,000,000)	(11,000,000)
Transfers / Reclassification to assets held for sale	62,350	(869)
Investment properties, deconsolidation	0	0
Disposals	29,116,000,000	35,135,000,000
Currency translation adjustment	(34,000,000)	(20,000,000)
Net gain / (loss) from fair value adjustment	14,533,000,000	9,408,000,000
Fair value at the end of the year	$ 208,558,000,000	$ 153,474,000,000

XML

Investment properties (Details 1) $ in Millions, $ in Millions	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)
Statement [Line Items]
Property plant and equipment	$ 293,294		$ 300,337
Property plant and equipment	7,990		6,799
Undeveloped Parcels Of Land [Member]
Statement [Line Items]
Property plant and equipment	127,956		88,851
Shopping Malls [Member]
Statement [Line Items]
Property plant and equipment		$ 90,142	83,331
Other PPE [Member]
Statement [Line Items]
Property plant and equipment	291		237
Offices and other rental poperties [Member]
Statement [Line Items]
Property plant and equipment	74,338		122,477
Property Under Development [Member]
Statement [Line Items]
Property plant and equipment	$ 567		$ 5,441

XML

Investment properties (Details 2) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Total Properties	$ 2,215	$ 2,832
Cordoba Shopping [Member]
Statement [Line Items]
Total Properties	$ 2,215	$ 2,832

XML

Investment properties (Details 3) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Rental and services income	$ 27,281	$ 18,093	$ 28,092
Direct operating expenses	(9,191)	(7,264)	(19,909)
Development reimbursements	186	187	277
Net realized gain from fair value adjustment of investment properties	13,980	17,745	2,793
Net unrealized (loss) / gain from fair value adjustment of investment properties	$ (330)	$ (30,487)	$ 80,287

XML

Investment properties (Details 4) - Level 3 [Member] - Shopping Malls in Argentina [Member] - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Statement [Line Items]
Fair value of investment properties, valuation technique	Discounted cash flows
Discount rate [Member]
Statement [Line Items]
Fair value investment properties, range		14.53%		12.18%
Fair value investment properties, increase	$ (5,864)	$ (6,297)	$ (10,474)
Fair value investment properties, decrease	6,890	7,525	12,825
Growth rate [Member]
Statement [Line Items]
Fair value investment properties, increase	2,636	2,884	4,993
Fair value investment properties, decrease	(2,234)	$ (2,414)	(4,077)
Fair value investment properties, range		2.40%		2.30%
Inflation [Member]
Statement [Line Items]
Fair value investment properties, increase	10,516	$ 13,399	21,803
Fair value investment properties, decrease	(8,704)	(11,052)	(17,936)
Devaluation [Member]
Statement [Line Items]
Fair value investment properties, increase	(7,758)	(7,145)	(10,136)
Fair value investment properties, decrease	$ 9,482	$ 8,732	$ 12,389

XML

Investment properties (Details Narrative) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Cash	$ 2,000,000
Sovereign bond	3,000,000
Infrastructure and road works	$ 10,000,000
Assigned for year	10 years
Investment properties, description	For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 163.65 (corresponding to the year ended June 30, 2023) and arriving at ARS 622.06 in 2028. In the long term, a nominal devaluation rate of 5.57% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 70.9% (corresponding to the year ended June 30, 2023) and stabilizes at 8.0% after 5 years	For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 116.94 (corresponding to the year ended June 30, 2022) and arriving at ARS 376.56 in 2027. In the long term, a nominal devaluation rate of 27.5% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 44.1% (corresponding to the year ended June 30, 2022) and stabilizes at 30.0% after 5 years	For the next 5 years, an average ARS / US$ exchange rate with an upward trend was considered, starting at ARS 86.21 (corresponding to the year ended June 30, 2021) and arriving at ARS 243.89 in 2026. In the long term, a nominal devaluation rate of 21.1% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 47.9% (corresponding to the year ended June 30, 2021) and stabilizes at 23.2% after 5 years

XML

Property Plant and Equipment (Details)	12 Months Ended
	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2021 USD ($)
Statement [Line Items]
Net book amount at the beginning	$ 7,990		$ 92,929
Additions	335,000,000	$ 2,715,000,000
Disposals	(3,000,000)	(147,000,000)
Property plant and equipment, deconsolidation	(47,989,000,000)	(78,694,000,000)
Reclassification to assets assets held for sale		46,000,000
Currency translation adjustment	(3,000,000)	(6,290,000,000)
Transfers	1,511,000,000	1,622,000,000
Depreciation charges	(649,000,000)	(5,290,000,000)
Net book amount at the ending	7,990,000,000	92,929,000,000
Net book amount at the beginning	6,799,000,000	6,799,000,000
Costs [Member]
Statement [Line Items]
Net book amount at the ending	7,532,000,000	10,167,000,000
Net book amount at the beginning	13,375,000,000	10,723,000,000
Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the ending	0	0
Net book amount at the beginning	(5,843,000,000)	(12,674,000,000)
Buildings And Facilities [Member]
Statement [Line Items]
Net book amount at the beginning	6,259		12,689
Additions	282,000,000	331,000,000
Disposals	(2,000,000)	(46,000,000)
Property plant and equipment, deconsolidation		(7,027,000,000)
Reclassification to assets assets held for sale		46,000,000
Currency translation adjustment	0	(562,000,000)
Transfers	1,492,000,000	1,622,000,000
Depreciation charges	(499,000,000)	(702,000,000)
Net book amount at the ending	6,259,000,000	12,689,000,000
Buildings And Facilities [Member] | Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the beginning			12,689
Net book amount at the ending	(5,344,000,000)	(17,057,000,000)
Buildings And Facilities [Member] | Costs [Member]
Statement [Line Items]
Net book amount at the beginning	13,375		29,746
Net book amount at the ending		11,603,000,000
Machinery and Equipment [Member]
Statement [Line Items]
Additions	51,000,000	105,000,000
Disposals	(1,000,000)	(11,000,000)
Property plant and equipment, deconsolidation		(1,304,000,000)
Reclassification to assets assets held for sale		0
Currency translation adjustment	0	(101,000,000)
Transfers	19,000,000	0
Depreciation charges	(111,000,000)	(146,000,000)
Net book amount at the beginning	278,000,000	7,532,000,000
Net book amount at the ending	278,000,000	1,735,000,000
Machinery and Equipment [Member] | Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the beginning	(3,843)		(9,308)
Net book amount at the ending	(3,954,000,000)
Machinery and Equipment [Member] | Costs [Member]
Statement [Line Items]
Net book amount at the beginning	4,121		11,043
Net book amount at the ending	4,190,000,000	6,734,000,000
Other PPE [Member]
Statement [Line Items]
Additions	2,000,000	1,236,000,000
Disposals	0	0
Property plant and equipment, deconsolidation	(66,000,000)	(13,914,000,000)
Reclassification to assets assets held for sale		0
Currency translation adjustment	(3,000,000)	(1,117,000,000)
Transfers	0	0
Depreciation charges	(39,000,000)	(1,720,000,000)
Net book amount at the ending	262,000,000	15,777,000,000
Net book amount at the beginning	262,000,000	15,777,000,000
Other PPE [Member] | Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the ending	(726,000,000)	(687,000,000)
Net book amount at the beginning	(687,000,000)	(15,977,000,000)
Other PPE [Member] | Costs [Member]
Statement [Line Items]
Net book amount at the ending	948,000,000	949,000,000
Net book amount at the beginning	949,000,000	31,754,000,000
Communication Networks [Member]
Statement [Line Items]
Additions	0	953,000,000
Disposals	0	(90,000,000)
Property plant and equipment, deconsolidation	0	(46,443,000,000)
Reclassification to assets assets held for sale	0	0
Currency translation adjustment	0	(3,749,000,000)
Transfers	0	0
Depreciation charges	0	(2,676,000,000)
Net book amount at the beginning	0	52,005,000,000
Net book amount at the ending	0	52,005,000,000
Communication Networks [Member] | Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the ending	0	0
Net book amount at the beginning	0	(196,589,000,000)
Communication Networks [Member] | Costs [Member]
Statement [Line Items]
Net book amount at the ending	0	52,005,000,000
Net book amount at the beginning	0	248,594,000,000
Agricultural establishments [Member]
Statement [Line Items]
Additions	0	90,000,000
Disposals	0	0
Property plant and equipment, deconsolidation	0	(10,006,000,000)
Reclassification to assets assets held for sale	0	0
Currency translation adjustment	0	(761,000,000)
Transfers	0	0
Depreciation charges	0	(46,000,000)
Net book amount at the ending	0	10,723,000,000
Net book amount at the beginning	0	10,723,000,000
Agricultural establishments [Member] | Accumulated Depreciation [Member]
Statement [Line Items]
Net book amount at the beginning	0	0
Net book amount at the ending	0		$ (12,674)
Agricultural establishments [Member] | Costs [Member]
Statement [Line Items]
Net book amount at the ending	0	0
Net book amount at the beginning	$ 0	$ 23,397,000,000

XML

Property Plant and Equipment (Details Narrative) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Discontinued Operations [Member]
Statement [Line Items]
Depreciation charges		$ 4,604
General And Administrative Expenses [Member]
Statement [Line Items]
Depreciation charges	$ 182	164
Costs [Member]
Statement [Line Items]
Depreciation charges	463	515
Selling Expenses [Member]
Statement [Line Items]
Depreciation charges	$ 4	$ 7

XML

Trading Properties (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Additions	$ 508,000,000	$ 1,320,000,000
Desconsolidation		(12,610,000,000)
Currency translation adjustment	(157,000,000)	1,138,000,000
Transfers		0
Disposals		(2,355,000,000)
Ending	3,234,000,000	2,883,000,000	$ 17,666,000,000
Properties Under Development [Member]
Statement [Line Items]
Additions	471,000,000	669,000,000
Desconsolidation		(233,000,000)
Currency translation adjustment	(157,000,000)	206,000,000
Transfers		(318,000,000)
Disposals		(640,000,000)
Ending	1,629,000,000	1,315,000,000	2,043,000,000
Completed Properties [Member]
Statement [Line Items]
Additions	0	0
Desconsolidation		(3,490,000,000)
Currency translation adjustment	0	(320,000,000)
Transfers		318,000,000
Disposals		(1,295,000,000)
Ending	198,000,000	198,000,000	4,985,000,000
Undeveloped Sites [Member]
Statement [Line Items]
Additions	37,000,000	651,000,000
Desconsolidation		(8,887,000,000)
Currency translation adjustment	0	(612,000,000)
Transfers		0
Disposals		(420,000,000)
Ending	$ 1,407,000,000	$ 1,370,000,000	$ 10,638,000,000

XML

Trading Properties (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Non-current	$ 3,041	$ 2,696
Current	193	187
Total current and non-current	$ 3,234	$ 2,883

XML

Trading Properties (Details Narrative) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Net book value	$ 1,629	$ 1,315
Contractual obligations	$ 953	$ 1,486

XML

Intangible assets (Details) $ in Millions	12 Months Ended
	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 ARS ($)
Statement [Line Items]
Net book amount at the beginning	$ 3,936,000,000	$ 68,433,000,000
Costs	5,399,000,000	173,303,000,000
Accumulated amortization	(1,463,000,000)	(104,870,000,000)
Additions	103,000,000	3,567,000,000
Disposals	471,000,000	182,000,000
Deconsolidation		(59,929,000,000)
Impairment	(40,000,000)		$ (66)
Currency translation adjustment		(4,059,000,000)
Amortization charges	149,000,000	3,828,000,000
Balance at the end	3,379,000,000	3,936,000,000		$ 68,433,000,000
Net book amount	3,379,000,000	3,936,000,000
Goodwill [Member]
Statement [Line Items]
Net book amount at the beginning	221,000,000	13,899,000,000		221,000,000
Costs	221,000,000	13,899,000,000		221,000,000
Accumulated amortization	0	0		0
Additions	0	0
Disposals	0	0
Deconsolidation		(13,904,000,000)
Impairment	0	(66,000,000)
Currency translation adjustment		292,000,000
Amortization charges	0	0
Balance at the end	221,000,000	221,000,000		13,899,000,000
Net book amount	221,000,000	221,000,000
Contracts And Others [Member]
Statement [Line Items]
Net book amount at the beginning	3,379,000,000	13,288,000,000		2,945,000,000
Costs	3,884,000,000	32,913,000,000		3,451,000,000
Accumulated amortization	(505,000,000)	(19,625,000,000)		(506,000,000)
Additions	38,000,000	2,793,000,000
Disposals	471,000,000	0
Deconsolidation		(10,439,000,000)
Impairment	0	0
Currency translation adjustment		(981,000,000)
Amortization charges	1,000,000	1,282,000,000
Balance at the end	2,945,000,000	3,379,000,000		13,288,000,000
Net book amount	2,945,000,000	3,379,000,000
Trademark [member]
Statement [Line Items]
Net book amount at the beginning	0	18,789,000,000		0
Costs	0	20,742,000,000		0
Accumulated amortization	0	(1,953,000,000)		0
Additions	0	0
Disposals	0	0
Deconsolidation		(17,405,000,000)
Impairment	0	0
Currency translation adjustment		(1,338,000,000)
Amortization charges	0	46,000,000
Balance at the end	0	0		18,789,000,000
Net book amount	0	0
Customer relations [member]
Statement [Line Items]
Net book amount at the beginning	0	6,095,000,000		0
Costs	0	58,450,000,000		0
Accumulated amortization	0	(52,355,000,000)		0
Additions	0	46,000,000
Disposals	0	0
Deconsolidation	0	(5,151,000,000)
Impairment	0	0
Currency translation adjustment		(446,000,000)
Amortization charges	0	544,000,000
Balance at the end	0	0		6,095,000,000
Net book amount	0	0
Licenses [Member]
Statement [Line Items]
Net book amount at the beginning	0	5,961,000,000		0
Costs	0	27,805,000,000		0
Accumulated amortization	0	(21,844,000,000)		0
Additions	0	0
Disposals	0	0
Deconsolidation		(5,398,000,000)
Impairment	0	0
Currency translation adjustment		(427,000,000)
Amortization charges	0	136,000,000
Balance at the end	0	0		5,961,000,000
Net book amount	0	0
Information Systems And Software [Member]
Statement [Line Items]
Net book amount at the beginning	336,000,000	10,401,000,000		213,000,000
Costs	1,294,000,000	19,494,000,000		1,319,000,000
Accumulated amortization	(958,000,000)	(9,093,000,000)		(1,106,000,000)
Additions	65,000,000	728,000,000
Disposals	0	182,000,000
Deconsolidation		(7,632,000,000)
Impairment	(40,000,000)	0
Currency translation adjustment		(1,159,000,000)
Amortization charges	148,000,000	1,820,000,000
Balance at the end	213,000,000	336,000,000		$ 10,401,000,000
Net book amount	$ 213,000,000	$ 336,000,000

XML

Intangible assets (Details Narrative) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Discontinued Operations [Member]
Statement [Line Items]
Amortization charge		$ 3,628
General And Administrative Expenses [Member]
Statement [Line Items]
Amortization charge	$ 109	166
Costs [Member]
Statement [Line Items]
Amortization charge	$ 40	$ 34

XML

Rights of use of assets (Details) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Total Right-of-use assets	$ 1,242	$ 1,330
Non-current	1,242	1,330
Total right of use assets including non-current	1,242	1,330
Machinery and Equipment [Member]
Statement [Line Items]
Total Right-of-use assets	2	7
Real Estate [Member]
Statement [Line Items]
Total Right-of-use assets	17	18
Other [Member]
Statement [Line Items]
Total Right-of-use assets	$ 1,223	$ 1,305

XML

Rights of use of assets (Details 1) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Beginning of the year	$ 1,330	$ 48,913
Additions (i)	0	1,458
Disposals	0	(136)
Amortization charges	(88)	(3,135)
Deconsolidation right of use assets	0	(42,394)
Currency translation adjustment	0	(3,376)
Total Right-of-use assets	$ 1,242	$ 1,330

XML

Rights of use of assets (Details 2) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Total depreciation of right-of-use assets	$ 88	$ 3,135
Real Estate [Member]
Statement [Line Items]
Total depreciation of right-of-use assets	78	2,119
Other [Member]
Statement [Line Items]
Total depreciation of right-of-use assets	10	531
Telecommunications [Member]
Statement [Line Items]
Total depreciation of right-of-use assets	$ 0	$ 485

XML

Rights of use of assets (Details 3) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Right-of-use interests	$ (120)	$ (458)
Results from short-term leases	$ (43)	$ (59)

XML

Rights of use of assets (Details 4)	12 Months Ended
	Jun. 30, 2022
Average discount rate	10.61%
Maturity date	2023-2041

XML

Financial instruments by category (Details) - ARS ($)	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Financial assets at amortized cost	$ 22,082,000,000	$ 13,724,000,000
Subtotal financial assets	44,130,000,000	22,214,000,000
Non-financial assets	3,963,000,000	8,104,000,000
Total financial asset	48,093,000,000	30,318,000,000
Financial liabilities at amortized cost	79,174,000,000	106,616,000,000
Subtotal financial liabilities	79,190,000,000	106,710,000,000
Non-financial liabilities	7,641,000,000	5,913,000,000
Total financial liability	86,831,000,000	112,623,000,000
Borrowings Excluding Finance Leases [Member]
Statement [Line Items]
Financial liabilities at amortized cost	74,734,000,000	101,887,000,000
Subtotal financial liabilities	74,734,000,000	101,887,000,000
Non-financial liabilities	0	0
Total financial liability	74,734,000,000	101,887,000,000
Trade And Other Payables [Member]
Statement [Line Items]
Financial liabilities at amortized cost	4,440,000,000	4,729,000,000
Subtotal financial liabilities	4,440,000,000	4,729,000,000
Non-financial liabilities	7,641,000,000	5,913,000,000
Total financial liability	12,081,000,000	10,642,000,000
Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Financial liabilities at fair value through profit or loss	16,000,000	94,000,000
Level 2 [Member] | Borrowings Excluding Finance Leases [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Level 2 [Member] | Trade And Other Payables Two [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	22,048,000,000	8,411,000,000
Financial liabilities at fair value through profit or loss	0	0
Level 1 [Member] | Borrowings Excluding Finance Leases [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Level 1 [Member] | Trade And Other Payables one [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	79,000,000
Financial liabilities at fair value through profit or loss	0	0
Level 3 [Member] | Borrowings Excluding Finance Leases [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Level 3 [Member] | Trade And Other Payables Three [Member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Trade And Other Receivables Excluding The Allowance For Doubtful Accounts And Other Receivables [Member]
Statement [Line Items]
Financial assets at amortized cost	12,057,000,000	11,858,000,000
Subtotal financial assets	12,057,000,000	11,858,000,000
Non-financial assets	3,963,000,000	8,104,000,000
Total financial asset	16,020,000,000	19,962,000,000
Trade And Other Receivables Excluding The Allowance For Doubtful Accounts And Other Receivables [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Trade And Other Receivables Excluding The Allowance For Doubtful Accounts And Other Receivables [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Trade And Other Receivables Excluding The Allowance For Doubtful Accounts And Other Receivables [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Investments In Financial Assets [Member] | Mutual fonds [Member]
Statement [Line Items]
Financial assets at amortized cost	0
Subtotal financial assets	13,870,000,000
Non-financial assets	0
Total financial asset	13,870,000,000
Investments In Financial Assets [Member] | Mutual fonds [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Investments In Financial Assets [Member] | Mutual fonds [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	13,870,000,000
Investments In Financial Assets [Member] | Mutual fonds [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Investments In Financial Assets [Member] | Public Companies Securities [Member]
Statement [Line Items]
Financial assets at amortized cost	0	0
Subtotal financial assets	1,346,000,000	1,600,000,000
Non-financial assets	0	0
Total financial asset	1,346,000,000	1,600,000,000
Investments In Financial Assets [Member] | Public Companies Securities [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Investments In Financial Assets [Member] | Public Companies Securities [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	1,346,000,000	1,600,000,000
Investments In Financial Assets [Member] | Public Companies Securities [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Investments In Financial Assets [Member] | Bonds [Member]
Statement [Line Items]
Financial assets at amortized cost	0	0
Subtotal financial assets	3,806,000,000	4,446,000,000
Non-financial assets	0	0
Total financial asset	3,806,000,000	4,446,000,000
Investments In Financial Assets [Member] | Bonds [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Investments In Financial Assets [Member] | Bonds [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	3,806,000,000	4,446,000,000
Investments In Financial Assets [Member] | Bonds [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Investments In Financial Assets [Member] | Investments In Financial Assets With Quotation [Member]
Statement [Line Items]
Financial assets at amortized cost		16,000,000
Subtotal financial assets		1,143,000,000
Non-financial assets		0
Total financial asset		1,143,000,000
Investments In Financial Assets [Member] | Investments In Financial Assets With Quotation [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss		0
Investments In Financial Assets [Member] | Investments In Financial Assets With Quotation [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss		1,048,000,000
Investments In Financial Assets [Member] | Investments In Financial Assets With Quotation [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss		79,000,000
Investments In Financial Assets [Member] | Others [Member]
Statement [Line Items]
Financial assets at amortized cost	10,000,000
Subtotal financial assets	275,000,000
Non-financial assets	0
Total financial asset	275,000,000
Investments In Financial Assets [Member] | Others [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Investments In Financial Assets [Member] | Others [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	265,000,000
Investments In Financial Assets [Member] | Others [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Cash And Cash Equivalents [member] | Cash At Bank And On Hand [Member]
Statement [Line Items]
Financial assets at amortized cost	10,015,000,000	1,850,000,000
Subtotal financial assets	10,015,000,000	1,850,000,000
Non-financial assets	0	0
Total financial asset	10,015,000,000	1,850,000,000
Cash And Cash Equivalents [member] | Cash At Bank And On Hand [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Cash And Cash Equivalents [member] | Cash At Bank And On Hand [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Cash And Cash Equivalents [member] | Cash At Bank And On Hand [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0
Cash And Cash Equivalents [member] | Short Term Investments [Member]
Statement [Line Items]
Financial assets at amortized cost	0	0
Subtotal financial assets	2,761,000,000	1,317,000,000
Non-financial assets	0	0
Total financial asset	2,761,000,000	1,317,000,000
Cash And Cash Equivalents [member] | Short Term Investments [Member] | Level 2 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Cash And Cash Equivalents [member] | Short Term Investments [Member] | Level 1 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	2,761,000,000	1,317,000,000
Cash And Cash Equivalents [member] | Short Term Investments [Member] | Level 3 [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Derivative Financial Instruments [Member] | Swaps [member]
Statement [Line Items]
Financial liabilities at amortized cost	0	0
Subtotal financial liabilities	16,000,000	94,000,000
Non-financial liabilities	0	0
Total financial liability	16,000,000	94,000,000
Derivative Financial Instruments [Member] | Level 2 [Member] | Swaps [member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	16,000,000	94,000,000
Derivative Financial Instruments [Member] | Level 2 [Member] | Others one [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	30,000,000	0
Derivative Financial Instruments [Member] | Level 1 [Member] | Swaps [member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Derivative Financial Instruments [Member] | Level 1 [Member] | Others [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	0	0
Derivative Financial Instruments [Member] | Level 3 [Member] | Swaps [member]
Statement [Line Items]
Financial liabilities at fair value through profit or loss	0	0
Derivative Financial Instruments [Member] | Level 3 [Member] | Others [Member]
Statement [Line Items]
Financial assets at fair value through profit or loss	$ 213,000,000	$ 0

XML

Financial instruments by category (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Net amount presented	$ 44,130	$ 22,214
Net amount presented	79,190	106,710
Trade And Other Payables one [Member]
Statement [Line Items]
Gross amounts recognized	3,910	1,366
Gross amounts offset	530	3,363
Net amount presented	4,440	4,729
Trade And Other Receivables Excluding The Allowance For Doubtful Accounts And Other Receivables [Member]
Statement [Line Items]
Gross amounts recognized	12,587	15,221
Gross amounts offset	(530)	(3,363)
Net amount presented	$ 12,057	$ 11,858

XML

Financial instruments by category (Details 2) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Interest income	$ 463	$ 591	$ 491
Interest expense	(8,171)	(10,511)	(14,114)
Interest expense on lease liabilities	(120)	(158)	(133)
Foreign exchange gains, net	14,406	11,512	(15,386)
Dividend income	0	1	34
Gain/Loss from repurchase of negotiable obligations	1,460	(156)	228
Fair value gain on financial assets at fair value through profit or loss	1,454	8,720	828
Interest and discount generated by operating credits	128	157	417
Gain on derivative financial instruments, net	33	(740)	(901)
Other finance costs	(463)	(1,420)	(923)
Total financial instruments	9,190	7,996	(29,459)
Financial Assets And Liabilities At Amortised Cost Category [Member]
Statement [Line Items]
Interest income	463	591	491
Interest expense	(8,171)	(10,511)	(14,114)
Interest expense on lease liabilities	(120)	(158)	(133)
Foreign exchange gains, net	14,406	11,512	(15,386)
Dividend income		1	34
Gain/Loss from repurchase of negotiable obligations	1,460	(156)	228
Fair value gain on financial assets at fair value through profit or loss	0	0	0
Interest and discount generated by operating credits	128	157	417
Gain on derivative financial instruments, net	0	0	0
Other finance costs	(463)	(1,420)	(923)
Total financial instruments	7,703	16	(29,386)
Financial Assets And Liabilities At Fair Value Through Profit Or Loss Category [Member]
Statement [Line Items]
Interest income	0	0	0
Interest expense	0	0	0
Interest expense on lease liabilities		0	0
Foreign exchange gains, net	0	0	0
Dividend income	0	0	0
Gain/Loss from repurchase of negotiable obligations		0	0
Fair value gain on financial assets at fair value through profit or loss	1,454	8,720	828
Interest and discount generated by operating credits	0	0	0
Gain on derivative financial instruments, net	33	(740)	(901)
Other finance costs	0	0	0
Total financial instruments	$ 1,487	$ 7,980	$ (73)

XML

Financial instruments by category (Details 3)	12 Months Ended
	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)
Statement [Line Items]
Deconsolidation			$ (7,964,000,000)
Currency translation adjustments	$ (8,000,000)		(7,000,000)
Write off	(96,000,000)
Gain / (loss) for the year	25,000,000		15,000,000
financial instruments ending		$ 0	79
financial instruments, beginning	79		8,035
Investments In Financial Assets [Member] | Others [Member]
Statement [Line Items]
Deconsolidation			(500,000,000)
Currency translation adjustments	(8,000,000)		(7,000,000)
Write off	(96,000,000)
Gain / (loss) for the year	25,000,000		15,000,000
financial instruments ending		0	79
financial instruments, beginning	79		571
Investments In Financial Assets [Member] | Private Companies Securities [Member]
Statement [Line Items]
Deconsolidation	0		(7,164,000,000)
Currency translation adjustments	0		0
Write off	0		0
Gain / (loss) for the year	0		0
financial instruments ending		0	0
financial instruments, beginning	0		7,164
Derivative Financial Instruments [Member]
Statement [Line Items]
Deconsolidation			(349,000,000)
Currency translation adjustments	0		0
Write off	0
Gain / (loss) for the year	0		0
financial instruments ending		0	0
financial instruments, beginning	0		349
Derivative Financial Instruments [Member] | Forwards [Member]
Statement [Line Items]
Deconsolidation			49,000,000
Currency translation adjustments	0		0
Write off	0
Gain / (loss) for the year	0		0
financial instruments ending		$ 0	0
financial instruments, beginning	$ 0		$ (49)

XML

Financial instruments by category (Details 4) - Theoretical Price [Member] - Level 2 And 3 [Member]	12 Months Ended
	Jun. 30, 2022
Statement [Line Items]
Description	Derivative financial instruments Swaps
Pricing model / method	Theoretical price
Parameters	Underlying asset price and volatility
Range	0

XML

Trade and other receivables (Details) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Sale, leases and services receivables	$ 8,012	$ 7,532
Less: Allowance for doubtful accounts	(853)	(1,395)
Total trade receivables	7,159	6,137
Prepaid expenses	339	1,320
Borrowings, deposits and others	4,661	6,017
Advances to suppliers	917	1,558
Tax receivables	935	1,912
Others	1,156	1,623
Total other receivables	8,008	12,430
Total trade and other receivables	15,167	18,567
Non-current	4,336	4,669
Current	10,831	13,898
Total trade and other receivables including current	$ 15,167	$ 18,567

XML

Trade and other receivables (Details 1) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Beginning of the year	$ 1,395	$ 9,199
Additions (i)	250	1,238
Recovery (i)	(282)	(376)
Currency translations adjustment	73	(452)
Trade and other receivables, deconsolidation	0	(7,614)
Receivables written off during the period/year as uncollectable	(12)	(46)
Inflation adjustment	(571)	(554)
End of the year	$ 853	$ 1,395

XML

Trade and other receivables (Details 2) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
% of representation	100.00%	100.00%
Additions / (reversals) for doubtful accounts	$ (703,000,000)	$ (194,000,000)
Leases and services	7,738,000,000	7,199,000,000
Consumer financing	87,000,000	26,000,000
Sale of properties and developments	187,000,000	307,000,000
Total other receivables	$ 8,012,000,000	$ 7,532,000,000
Leases And Services [Member]
Statement [Line Items]
% of representation	96.58%	95.58%
Additions / (reversals) for doubtful accounts	$ (128,000,000)	$ (194,000,000)
Consumer Financing [Member]
Statement [Line Items]
% of representation	1.09%	0.35%
Additions / (reversals) for doubtful accounts	$ 14,000,000	$ 0
Sale Of Properties And Developments [Member]
Statement [Line Items]
% of representation	2.33%	4.07%
Additions / (reversals) for doubtful accounts	$ 0	$ 0
Non-Past Due [Member]
Statement [Line Items]
Leases and services	5,607,000,000	3,794,000,000
Consumer financing	87,000,000	0
Sale of properties and developments	127,000,000	307,000,000
Total other receivables	5,821,000,000	4,101,000,000
Past Due, Total [Member]
Statement [Line Items]
Leases and services	5,325,000,000	4,390,000,000
Consumer financing	24,000,000	16,000,000
Sale of properties and developments	1,370,000,000	187,000,000
Total other receivables	57,756,000,000	4,593,000,000
Impaired [Member]
Statement [Line Items]
Leases and services	853,000,000	1,369,000,000
Consumer financing	0	26,000,000
Sale of properties and developments	0	0
Total other receivables	5,821,000,000	1,395,000,000
Up to 3 Months [Member]
Statement [Line Items]
Leases and services	391,000,000	554,000,000
Consumer financing	0	0
Sale of properties and developments	40,000,000	0
Total other receivables	431,000,000	554,000,000
3 To 6 Months [Member]
Statement [Line Items]
Leases and services	238,000,000	405,000,000
Consumer financing	0	0
Sale of properties and developments	0	0
Total other receivables	238,000,000	405,000,000
Over 6 Months [Member]
Statement [Line Items]
Leases and services	649,000,000	1,077,000,000
Consumer financing	0	0
Sale of properties and developments	20,000,000	0
Total other receivables	$ 669,000,000	$ 1,077,000,000

XML

Cash flow information (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Net income / (loss)	$ 34,892	$ (61,641)	$ 58,461
Profit for the period from discontinued operations	0	14,633	8,112
Adjustments for:
Income tax	2,770	35,540	16,505
Amortization and depreciation	931	1,051	1,174
Net gain / (loss) from fair value adjustment of investment properties	(13,650)	12,742	83,080
Gain from disposal of associates	0	(61)	0
Financial results, net	(14,298)	(10,840)	32,366
Provisions and allowances	1,560	1,846	2,035
Share of (profit) /loss of associates and joint ventures	355	7,182	(17,787)
Changes in operating assets and liabilities:
Decrease in inventories	(7)	43	10
Decrease in trading properties	89	(46)	(971)
Increase in restricted assets	0	0	(2,870)
Decrease / (Increase) in trade and other receivables	(31)	2,483	4,680
Decrease in trade and other payables	624	(5,553)	(735)
Increase / (decrease) in salaries and social security liabilities	31	87	(476)
Decrease in provisions	(97)	(176)	(1,309)
Net cash (used in) / generated by continuing operating activities before income tax paid	13,169	(2,710)	16,115
Net cash generated by discontinued operating activities before income tax paid	0	5,577	62,117
Net cash generated by operating activities before income tax paid	$ 13,169	$ 2,867	$ 78,232

XML

Cash flow information (Details 1)	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)
Investment properties	$ 0		$ 192,757,000,000	$ 383,250,000,000
Property, plant and equipment	0		78,694,000,000	(12,432,000,000)
Trading properties	0		12,610,000,000	382,000,000
Intangible assets	0		59,929,000,000	7,940,000,000
Investments in associates and joint ventures	0		79,438,000,000	6,200,000,000
Deferred income tax assets	0		931,000,000	0
Restricted assets	0		13,775,000,000	526,000,000
Income tax and MPIT credit	0		699,000,000	108,000,000
Trade and other receivables	0		115,924,000,000	(22,298,000,000)
Right-of-use assets	0		42,394,000,000	(9,795,000,000)
Investments in financial assets	0		51,889,000,000	33,359,000,000
Derivative financial instruments	0		603,000,000	(92,000,000)
Inventories	0		(7,727,000,000)	6,166,000,000
Group of assets held for sale	0		90,236,000,000	0
Borrowings	0		(697,452,000,000)	(216,942,000,000)
Lease liabilities	0		(38,857,000,000)	0
Deferred income tax liabilities	0		(26,665,000,000)	(49,767,000,000)
Trade and other payables	0		(50,426,000,000)	5,697,000,000
Lease liabilities	0		0	5,116,000,000
Provisions	0		(11,635,000,000)	141,000,000
Employee benefits	0		(1,023,000,000)	264,000,000
Derivative financial instruments	0		(1,023,000,000)	0
Salaries and social security liabilities	0		7,260,000,000	339,000,000
Group of liabilities held for sale		$ 0	(47,235)	0
Income tax expense	0		(977,000,000)	(264,000,000)
Net value of incorporated assets that do not affect cash	0		134,947,000,000	125,566,000,000
Cash and cash equivalents	0		(238,316,000,000)	(14,786,000,000)
Non-controlling interest	0		(102,520,000,000)	124,986,000,000
Goodwill	0		0	(927,000,000)
Net value of assets incorporated / intended for sale	0		(475,783,000,000)	234,839,000,000
Seller Financed Amount	0		0	0
Net (outflow) inflow of cash and cash equivalents / assets and liabilities held for sale	$ 0		$ (475,783,000,000)	$ 234,839,000,000

XML

Cash flow information (Details 2)	12 Months Ended
	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)
Decrease of associates and joint ventures through an increase of asstes held for sale	$ 0		$ 0	$ 5,101,000,000
Increase of investment properties through a decrease of financial assets				685,000,000
Increase of trading properties for sale through an increase in borrowings	0		100,000,000	30,000,000
Increase of property, plant and equipment through an increase of trade and other payables	0		0	1,820,000,000
Increase of intangible assets through an increase of trade and other payables	12,000,000			1,217,000,000
Distribution of dividends on shares	0		1,193,000,000	1,451,000,000
Increase of investment properties through a decrease in trade and other receivables		$ 0	0	69
Issuance Of NCN		4,304	0	0
Decrease of property, plant and equipment through an increase of tax receivables and tax debts	0		136,000,000	0
Distribution of dividends to non-controlling interest pending payment	0		0	4,337,000,000
Decrease in borrowings through a decrease in financial assets		0	0	6,044
Increase in investment properties through an increase in trade and other payables	185,000,000		0	1,751,000,000
Increase of investment properties through an increase of borrowings	0		668,000,000	247,000,000
Increase in rights of use through an increase in lease liabilities - Adjustment of opening balances (IFRS 16)	$ 0		0	34,787,000,000
Increase in right-of-use assets through an increase in lease liabilities		0	0	19,929
Increase in intangible assets through a decrease in investment in associates		0	1,340	0
Currency translation adjustment		177,000,000	18,748,000,000	34,929,000,000
Increase in investment properties under barter agreements		3,139	0	0
Payment of non-convertible notes		633	0	0
Decrease in lease liabilities through a decrease in trade and other receivables		3	0	0
Decrease in investment properties through an increase in property, plant and equipment		1,558
Decrease in property, plant and equipment through an increase in investment properties		600	0	0
Decrease in property, plant and equipment through an increase in revaluation surplus		556	0	0
Decrease in revaluation surplus through an increase in deferred income tax liabilities		195	0	0
Increase in intangible assets through an increase salaries and social security liabilities		26	0	0
Increase in investments in associates through a decrease in investments in financial assets		865	0	0
Decrease in borrowings through a decrease in credits for trade and other receivables		441	0	0
Increase in investments in associates and joint ventures through a decrease in investments in financial assets		45	0	0
Capital contributions from non-controlling interest through a decrease of borrowings		4	0	0
Capital contributions from non-controlling interest through an increase in trade and other receivables		$ 5	$ 0	$ 0

XML

Shareholders Equity (Details Narrative) - ARS ($) $ / shares in Units, $ in Millions		1 Months Ended	12 Months Ended
	Mar. 11, 2022	Oct. 26, 2020	Jun. 30, 2022	Dec. 22, 2021	Apr. 12, 2021	Jun. 30, 2017
Public offering of shares					80,000,000
Warrants to subscribe					80,000,000
Totally subscribed					80,000,000
Warrants issued					80,000,000,000,000
Nominal value per share			$ 1
Description of legal reserve			According to Law N° 19,550, 5% of the profit of the year is destined to the constitution of a legal reserve until it reaches the legal capped amount (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses
Exercise price					$ 0.432
Reserve						$ 425
Additional new shares				152,158,215	80,000,000
Additional new share					28,800,000
increasing capital stock					658,676,460
New share				810,879,553,000,000
Buyback program	On March 11, 2022, the IRSA Board of Directors approved the shares buyback program issued by the Company and established the terms and conditions for the acquisition of shares issued by the Company, under the terms of Article 64 of Law No. 26,831 and the regulations of the CNV, for up to a maximum amount of ARS1,000 million and up to 10% of the capital stock, up to a daily limit of up to 25% of the average volume of daily transactions experienced by the Company's shares, jointly in the listed markets, during the previous 90 business days, and up to a maximum price of USD 7 per ADS and ARS 140 per share. Likewise, the buyback term was set at up to 120 days, beginning the day following the date of publication of the information in the Daily Bulletin of the Buenos Aires Stock Exchange
common shares	3,808,472,000,000
Par value	$ 1
Common shares		1,512,500,000,000
Dividend distribution		On October 26, 2020, our shareholders held an Ordinary and Extraordinary Meeting and approved an in kind dividend distribution equivalent to ARS 484 million (representative of ARS 0.84 per share) and payable in shares of IRSA CP. Our shareholders decided to consider IRSA CP’s ’quoted price per share as of October 23, 2020, which resulted amounted ARS 320 per share. Pursuant to that shareholders’ decision, we distributed 1,512,500 common shares of IRSA CP. We reflected this transaction on our financial statements as a change in equity, which generated a reduction of the equity attributable to the controlling shareholders totalling ARS 1,189 million restated for inflation as of June 30, 2022

XML

Trade and other payables (Details)	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)
Trade payables	$ 1,599,000,000		$ 1,687,000,000
Accrued invoices	1,179,000,000		1,409,000,000
Admission fee	2,575,000,000		1,771,000,000
Other income to be accrued	96,000,000		128,000,000
Tenant deposits	67,000,000		148,000,000
Total trade payables	9,157,000,000		8,037,000,000
Taxes payable	1,329,000,000		1,120,000,000
Other payables	1,595,000,000		1,485,000,000
Total other payables	2,924,000,000		2,605,000,000
Total trade and other payables	12,081,000,000		10,642,000,000
Trade and other payables	3,557,000,000		2,274,000,000
Current	8,524,000,000		8,368,000,000
Customer advances		$ 3,641	2,894
Total other payable	$ 12,081,000,000		$ 10,642,000,000

XML

Trade and other payables (Details Narrative)	12 Months Ended
	Jun. 30, 2022
Admission rights and rents collected average term Maximum	5 years
Admission rights and rents collected average term Minumum	3 years

XML

Provisions (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
As of beginning	$ 428,000,000	$ 13,555,000,000	$ 20,901,000,000
Additions	341,000,000	15,000,000
Deconsolidation		(11,635,000,000)
Share of los of associates	4,000,000
Recovery	(79,000,000)	(85,000,000)
Used during the period / year	(97,000,000)	(212,000,000)
Inflation adjustment	(195,000,000)	(187,000,000)
Currency translation adjustment		(1,023,000,000)
As of end	394,000,000	428,000,000	13,555,000,000
Inflation adjustment	2,789,000,000	(2,370,000,000)	(26,000,000)
Legal Claims [Member]
Statement [Line Items]
As of beginning	416,000,000	6,144,000,000
Additions	341,000,000	151,000,000
Deconsolidation		(5,072,000,000)
Share of los of associates	0
Recovery	(79,000,000)	(54,000,000)
Used during the period / year	(97,000,000)	(166,000,000)
Currency translation adjustment		400,000,000
As of end	386,000,000	416,000,000	6,144,000,000
Incorporated by business combination		84,000,000
Inflation adjustment	(195,000,000)	(187,000,000)
Investments In Associates And Joint Ventures [Member]
Statement [Line Items]
As of beginning	12,000,000	43,000,000
Additions	0	0
Deconsolidation		0
Share of los of associates	4,000,000	0
Recovery	0	(31,000,000)
Used during the period / year	0	0
Currency translation adjustment		0
As of end	8,000,000	12,000,000	43,000,000
Inflation adjustment	0	0
Site Dismantling And Remediation [Member]
Statement [Line Items]
As of beginning	0	1,102,000,000
Additions	0	46,000,000
Deconsolidation		(1,071,000,000)
Share of los of associates	0	0
Recovery	0	0
Used during the period / year	0	0
Currency translation adjustment		(77,000,000)
As of end	0	0	1,102,000,000
Inflation adjustment	0	0
Other Provisions [Member]
Statement [Line Items]
As of beginning	0	6,266,000,000
Additions	0	182,000,000
Deconsolidation	0	(5,492,000,000)
Recovery	0	0
Used during the period / year	0	(46,000,000)
Currency translation adjustment	0	(546,000,000)
As of end	0	0	$ 6,266,000,000
Inflation adjustment	$ 0	$ 0

XML

Provisions (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Non-current	$ 196	$ 187
Current	198	241
Total provision	$ 394	$ 428

XML

Borrowings (Details)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)
Statement [Line Items]
Total non-current borrowings		$ 13,052,000,000	$ 76,619,000,000
Total current borrowings		61,682,000,000	25,268,000,000
Borrowings total amount		74,734,000,000	101,887,000,000	$ 926,487,000,000
Fir value of Borrowings total amount	$ 70,935		96,814
At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		74,734,000,000	101,887,000,000
NCN [Member]
Statement [Line Items]
Borrowings total amount		66,216,000,000	85,081,000,000
NCN [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		62,411,000,000	79,987,000,000
Bank loans [Member]
Statement [Line Items]
Borrowings total amount		1,012,000,000	5,110,000,000
Other Borrowings [Member]
Statement [Line Items]
Borrowings total amount		1,015,000,000	2,267,000,000
Other Borrowings [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		1,015,000,000	2,267,000,000
AABE Debt [Member]
Statement [Line Items]
Borrowings total amount		405,000,000	423,000,000
AABE Debt [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		405,000,000	423,000,000
Loans with Non-controlling Interests [Member]
Statement [Line Items]
Borrowings total amount		215,000,000	341,000,000
Loans with Non-controlling Interests [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		215,000,000	341,000,000
Bank Overdrafts [Member]
Statement [Line Items]
Borrowings total amount		5,871,000,000	8,665,000,000
Bank Overdrafts [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		5,871,000,000	8,665,000,000
Bank Loans [Member] | At Fair Value [Member]
Statement [Line Items]
Borrowings total amount		$ 1,018,000,000	$ 5,131,000,000

XML

Borrowings (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Share capital	$ 73,124	$ 99,604
Interest	74,734	101,887
Less Than 1 year [Member]
Statement [Line Items]
Share capital	60,208	23,234
Interest	1,474	2,034
Between 1 And 2 Years [Member]
Statement [Line Items]
Share capital	10,470	66,542
Interest	0	89
Between 2 and 3 years [Member]
Statement [Line Items]
Share capital	2,087	9,317
Interest	63	21
Between 3 and 4 years [Member]
Statement [Line Items]
Share capital	106	272
Interest	9	74
Between 4 and 5 years [Member]
Statement [Line Items]
Share capital	253	97
Interest	64	10
Later Than Five Years [Member]
Statement [Line Items]
Share capital	0	142
Interest	$ 1,610	$ 2,283

XML

Borrowings (Details 2)	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)
Rate per currency
Subtotal fixed-rate borrowings	$ 74,067,000,000		$ 98,178,000,000
Subtotal floating-rate borrowings	667,000,000		3,709,000,000
Total borrowings as per analysis	74,734,000,000		101,887,000,000
Borrowings total amount	74,734,000,000		101,887,000,000	$ 926,487,000,000
Fixed rate [Member]
Rate per currency
Subtotal fixed-rate borrowings	11,818,000,000		16,605,000,000
Floating rate [Member]
Rate per currency
Subtotal floating-rate borrowings	207,112,000,000		444,000,000
Argentine Peso [Member]
Rate per currency
Subtotal fixed-rate borrowings	11,818,000,000		16,605,000,000
Subtotal floating-rate borrowings	418,000,000		444,000,000
Total borrowings as per analysis	12,236,000,000		17,049,000,000
Borrowings total amount	12,236,000,000		17,049,000,000
Argentine Peso [Member] | Fixed rate [Member]
Rate per currency
Subtotal fixed-rate borrowings	11,818,000,000		16,605,000,000
Argentine Peso [Member] | Floating rate [Member]
Rate per currency
Subtotal floating-rate borrowings	418,000,000		$ 444,000,000
US Dollar [Member]
Rate per currency
Subtotal fixed-rate borrowings	62,249,000,000	$ 81,573,000,000
Subtotal floating-rate borrowings	249,000,000	3,265,000,000
Total borrowings as per analysis	62,498,000,000	84,838,000,000
Borrowings total amount	62,498,000,000	62,498,000,000
US Dollar [Member] | Fixed rate [Member]
Rate per currency
Subtotal fixed-rate borrowings	62,249,000,000	81,573,000,000
US Dollar [Member] | Floating rate [Member]
Rate per currency
Subtotal floating-rate borrowings	$ 249,000,000	$ 3,265,000,000

XML

Borrowings (Details 3) - IRSA [Member] $ in Thousands	12 Months Ended
	Jun. 30, 2022 ARS ($)
Class XIII [Member]
Statement [Line Items]
Issuance / expansion date	aug-21
Maturity date	08/26/2024
Principal payment	Biannual
Interest payment	Quarterly
Description of interest rate	3.90% n.a
Class XIII [Member] | USD [Member]
Statement [Line Items]
Amount in original currency	$ 58,100
Class I [Member]
Statement [Line Items]
Issuance / expansion date	nov-20
Maturity date	3/1/2023
Principal payment	At expiration
Interest payment	Quarterly
Description of interest rate	10.00% n.a.
Class VIII [Member]
Statement [Line Items]
Issuance / expansion date	nov-20
Maturity date	11/12/2023
Principal payment	33% in November 21, 33% in November 22, 34% in
Interest payment	Quarterly
Description of interest rate	10.00% n.a.
Class VIII [Member] | USD [Member]
Statement [Line Items]
Amount in original currency	$ 31,700
Class XII [Member]
Statement [Line Items]
Issuance / expansion date	mar-21
Maturity date	03/31/2024
Principal payment	At expiration
Interest payment	Biannual
Description of interest rate	4.00% n.a.
Class XII [Member] | UVAs [Member]
Statement [Line Items]
Amount in original currency	$ 53,780
Class IX [Member]
Statement [Line Items]
Issuance / expansion date	nov-20
Maturity date	3/1/2023
Principal payment	At expiration
Interest payment	Quarterly
Description of interest rate	10.00% n.a.
Class IX [Member] | USD [Member]
Statement [Line Items]
Amount in original currency	$ 80,700
Class XI [Member]
Statement [Line Items]
Issuance / expansion date	mar-21
Maturity date	3/1/2024
Principal payment	At expiration
Interest payment	Biannual
Description of interest rate	5.00% n.a.
Class XI [Member] | USD [Member]
Statement [Line Items]
Amount in original currency	$ 15,810
Class I tramo2 [Member] | USD [Member]
Statement [Line Items]
Amount in original currency	$ 3,100

XML

Borrowings (Details 4)	12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)
Balance at the beginning of the year		$ 101,887,000,000	$ 926,487,000,000
Borrowings		7,427,000,000	43,119,000,000
Collection / (Payment) of short term loans, net		(999,000,000)	6,605,000,000
Interests paid		(8,204,000,000)	(23,535,000,000)
Deconsolidation (see Note 4)		0	(697,452,000,000)
Accrued interests		7,722,000,000	19,465,000,000
Cumulative translation adjustment and exchange differences, net		22,656,000,000	(71,995,000,000)
Inflation adjustment		(42,666,000,000)	(4,455,000,000)
Reclassifications and other movements	$ (1,255)		(12)
Balance at the end of the year		$ 74,734,000,000	$ 101,887,000,000

XML

Borrowings (Details Narrative) - ARS ($) $ in Millions	1 Months Ended
	Jun. 30, 2022	Jul. 06, 2022	Jun. 30, 2021
Statement [Line Items]
Total Borrowings from collateralized liabilities	$ 953		$ 1,169
Canceled and/or extended		$ 239
Series V11 [Member]
Statement [Line Items]
Issuance price percentage	100

XML

Taxes (Details)	12 Months Ended
	Jun. 30, 2022 USD ($)
Transaction 1 [Member]
Statement [Line Items]
Accumulated net taxable profit More of	$ 0
Accumulated net taxable profit To	5,000,000
Corporate income tax will pay	$ 0
Corporate income tax More of %	25
Corporate income tax On the surplus of	$ 0
Transaction 2 [Member]
Statement [Line Items]
Accumulated net taxable profit More of	5,000,000
Accumulated net taxable profit To	50,000,000
Corporate income tax will pay	$ 1,250,000
Corporate income tax More of %	30
Corporate income tax On the surplus of	$ 5,000,000
Transaction 3 [Member]
Statement [Line Items]
Accumulated net taxable profit More of	50,000,000
Corporate income tax will pay	$ 14,750,000
Corporate income tax More of %	35
Corporate income tax On the surplus of	$ 50,000,000

XML

Taxes (Details 1) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Current income tax	$ (16,508)	$ (1,571)	$ (633)
Deferred income tax	13,738	(33,969)	(15,539)
Minimum presumed income tax	0	0	(333)
Income tax from continuing operations	$ (2,770)	$ (35,540)	$ (16,505)

XML

Taxes (Details 2)	12 Months Ended
	Jun. 30, 2022
Uruguay [Member] | Bottom Range [Member]
Statement [Line Items]
Statutory taxes rates	0.00%
Uruguay [Member] | Top Range [Member]
Statement [Line Items]
Statutory taxes rates	25.00%
Argentina, Pesos [Member] | Bottom Range [Member]
Statement [Line Items]
Statutory taxes rates	25.00%
Argentina, Pesos [Member] | Top Range [Member]
Statement [Line Items]
Statutory taxes rates	35.00%
U.S.A. [Member] | Bottom Range [Member]
Statement [Line Items]
Statutory taxes rates	0.00%
U.S.A. [Member] | Top Range [Member]
Statement [Line Items]
Statutory taxes rates	40.00%
Israel [Member] | Bottom Range [Member]
Statement [Line Items]
Statutory taxes rates	23.00%
Israel [Member] | Top Range [Member]
Statement [Line Items]
Statutory taxes rates	24.00%
Bermuda [Member] | Bottom Range [Member]
Statement [Line Items]
Statutory taxes rates	0.00%

XML

Taxes (Details 3) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Profit from continuing operations at tax rate applicable in the respective countries	$ (13,080)	$ 3,442	$ (26,437)
Permanent differences:
Share of profit of associates and joint ventures	(155)	(2,155)	2,189
Unrecognized tax loss carryforwards	4,649	(3,872)	(2,055)
Inflation adjustment permanent difference	15,637	5,774	4,088
Tax rate differential	0	(24,902)	6,115
Non-taxable profit, non-deductible expenses and others	(328)	(131)	4,360
Fiscal transparency	0	(275)	372
Tax inflation adjustment	(9,493)	(13,421)	(5,137)
Income tax from continuing operations	$ (2,770)	$ (35,540)	$ (16,505)

XML

Taxes (Details 4) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Deferred income tax asset to be recovered after more than 12 months	$ 963	$ 2,622
Deferred income tax asset to be recovered within 12 months	1,031	7,250
Deferred income tax assets	1,994	9,872
Deferred income tax liability to be recovered after more than 12 months	(100,056)	(121,046)
Deferred income tax liability to be recovered within 12 months	(452)	(830)
Deferred income tax liability	(100,508)	(121,876)
Deferred income tax assets (liabilities), net	$ (98,514)	$ (112,004)

XML

Taxes (Details 5) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Assets (Liabilities), net at beginning of period	$ (112,004,000,000)	$ (106,903,000,000)
Cumulative translation adjustment	1,681,000,000	2,754,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	13,738,000,000	(33,515,000,000)
Revaluation surplus reserve	(248,000,000)	(136,000,000)
Taxes, deconsolidation		25,734,000,000
Incorporation by business combination		62,000,000
Assets (Liabilities), net at ending of period	(98,514,000,000)	(112,004,000,000)
Intangible Assets [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(123,000,000)	(5,895,000,000)
Cumulative translation adjustment		(1,934,000,000)
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(557,000,000)	275,000,000
Revaluation surplus reserve	0	0
Taxes, deconsolidation		7,431,000,000
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(680,000,000)	(123,000,000)
Subtotal Liabilities [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(121,876,000,000)	(146,153,000,000)
Cumulative translation adjustment		(6,022,000,000)
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	21,616,000,000	(29,478,000,000)
Revaluation surplus reserve	(248,000,000)	(136,000,000)
Taxes, deconsolidation		59,913,000,000
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(100,508,000,000)	(121,876,000,000)
Other PPE [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	839,000,000	3,834,000,000
Cumulative translation adjustment		856,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(844,000,000)	(438,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		(3,475,000,000)
Incorporation by business combination		62,000,000
Assets (Liabilities), net at ending of period	(5,000,000)	839,000,000
Others PPE 1 [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(229,000,000)	2,424,000,000
Cumulative translation adjustment		(862,000,000)
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	277,000,000	(4,457,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		2,666,000,000
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	48,000,000	(229,000,000)
Investment properties and Property plant and equipment [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	838,000,000	730,000,000
Cumulative translation adjustment		121,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(793,000,000)	92,000,000
Revaluation surplus reserve	0	0
Taxes, deconsolidation		(105,000,000)
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	45,000,000	838,000,000
Trade And Other Receivables [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(5,393,000,000)	(2,271,000,000)
Cumulative translation adjustment		0
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	5,011,000,000	(3,122,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		0
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(382,000,000)	(5,393,000,000)
Borrowings [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	1,765,000,000	379,000,000
Cumulative translation adjustment		0
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(1,594,000,000)	1,386,000,000
Revaluation surplus reserve	0	0
Taxes, deconsolidation		0
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	171,000,000	1,765,000,000
Trade And Other Payable [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	1,234,000,000	13,096,000,000
Cumulative translation adjustment		3,995,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	279,000,000	(80,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation	0	(15,777,000,000)
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	1,513,000,000	1,234,000,000
Tax Loss Carry-Forwards [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	382,000,000	21,049,000,000
Cumulative translation adjustment		3,804,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	82,000,000	(9,649,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		(14,822,000,000)
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	464,000,000	382,000,000
Subtotal Assets [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	9,872,000,000	39,250,000,000
Cumulative translation adjustment		8,776,000,000
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(7,878,000,000)	(4,037,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		(34,179,000,000)
Incorporation by business combination		62,000,000
Assets (Liabilities), net at ending of period	1,994,000,000	9,872,000,000
Investment Property and Property Plant and Equipment [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(94,812,000,000)	(127,242,000,000)
Cumulative translation adjustment		(2,447,000,000)
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	5,809,000,000	(11,825,000,000)
Revaluation surplus reserve	(248,000,000)	(136,000,000)
Taxes, deconsolidation		46,838,000,000
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(89,251,000,000)	(94,812,000,000)
Tax inflation adjustment [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(21,318,000,000)	(10,644,000,000)
Cumulative translation adjustment		0
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	11,106,000,000	(10,674,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		0
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(10,212,000,000)	(21,318,000,000)
Trade and other receivables 1 [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	4,814,000,000	162,000,000
Cumulative translation adjustment		0
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(5,008,000,000)	(4,652,000,000)
Revaluation surplus reserve	0	0
Taxes, deconsolidation		0
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	(194,000,000)	4,814,000,000
Investments 1 [Member]
Statement [Line Items]
Assets (Liabilities), net at beginning of period	(4,000,000)	(175,000,000)
Cumulative translation adjustment		0
Charged / (Credited) to the Consolidated Statements of Income and Other Comprehensive Income	(27,000,000)	171,000,000
Revaluation surplus reserve	0	0
Taxes, deconsolidation		0
Incorporation by business combination		0
Assets (Liabilities), net at ending of period	$ (31,000,000)	$ (4,000,000)

XML

Taxes (Details 6) $ in Millions	Jun. 30, 2022 ARS ($)
2022	$ 9
2023	130
2024	261
2025	441
2026	308
2027	747
Total taxes	$ 1,896

XML

Taxes (Details Narrative) $ in Millions	Jun. 30, 2022 ARS ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 ARS ($)
Statement [Line Items]
Deferred income tax liabilities, not recognize	$ 185		$ 3,056
Deferred liability, group recognized	$ 1,743
Deferred income tax assets and liabilities, net		$ 1,377
Bottom of range [Member]
Statement [Line Items]
Reduction of the corporate tax rate			15.00%
Tax rate applicable to the companies	25.00%	25.00%
Maximum [Member]
Statement [Line Items]
Tax rate applicable to the companies	30.00%	30.00%
Joint Ventures [Member]
Statement [Line Items]
Deferred income tax liabilities, not recognize			$ 300
Argentine Operations Center [Member]
Statement [Line Items]
Deferred income tax assets, not recognize	$ 100

XML

Leases (Details) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Operating Lease by lessee	$ 0	$ 0	$ 24,563
Less Than 1 year [Member]
Statement [Line Items]
Operating Lease by lessee	0	0	5,685
Later Than Five Years [Member]
Statement [Line Items]
Operating Lease by lessee	0	0	5,907
Later Than One Year And Not Later Than Five Years [Member]
Statement [Line Items]
Operating Lease by lessee	$ 0	$ 0	$ 12,971

XML

Leases (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Operating Lease by lessor	$ 11,049	$ 23,528	$ 76,633
Less Than 1 year [Member]
Statement [Line Items]
Operating Lease by lessor	2,709	6,597	1,796
Later Than Five Years [Member]
Statement [Line Items]
Operating Lease by lessor	1,274	3,716	23,899
Later Than One Year And Not Later Than Five Years [Member]
Statement [Line Items]
Operating Lease by lessor	$ 7,066	$ 13,215	$ 50,938

XML

Leases (Details 2) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Contingent rent	$ 8,296	$ 2,360	$ 3,604

XML

Revenues (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Revenues
Rental and services income	$ 27,281	$ 18,093	$ 28,092
Sales of trading properties and developments	505	1,679	1,796
Revenue from hotels operation and tourism services	4,299	1,510	4,980
Revenues	$ 32,085	$ 21,282	$ 34,868

XML

Expenses by nature (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Cost of sale of goods and services	$ 609,000,000	$ 1,639,000,000	$ 1,540,000,000
Salaries, social security costs and other personnel expenses	6,474,000,000	5,806,000,000	6,990,000,000
Depreciation and amortization	931,000,000	1,051,000,000	1,174,000,000
Fees and payments for services	1,432,000,000	1,066,000,000	1,405,000,000
Maintenance, security, cleaning, repairs and others	3,945,000,000	3,206,000,000	4,813,000,000
Advertising and other selling expenses	1,639,000,000	653,000,000	1,438,000,000
Taxes, rates and contributions	2,582,000,000	2,331,000,000	2,862,000,000
Director's fees	1,316,000,000	1,386,000,000	1,005,000,000
Leases and service charges	348,000,000	392,000,000	433,000,000
Allowance for doubtful accounts, net	(32,000,000)	318,000,000	761,000,000
Other expenses	386,000,000	306,000,000	529,000,000
Total cost and expense	19,630,000,000	18,154,000,000	22,950,000,000
General And Administrative Expenses [Member]
Statement [Line Items]
Cost of sale of goods and services	0	0	0
Salaries, social security costs and other personnel expenses	2,012,000,000	1,896,000,000	1,968,000,000
Depreciation and amortization	307,000,000	367,000,000	369,000,000
Fees and payments for services	675,000,000	374,000,000	928,000,000
Maintenance, security, cleaning, repairs and others	445,000,000	448,000,000	558,000,000
Advertising and other selling expenses	0	0	0
Taxes, rates and contributions	213,000,000	204,000,000	220,000,000
Director's fees	1,316,000,000	1,386,000,000	1,005,000,000
Leases and service charges	84,000,000	59,000,000	57,000,000
Allowance for doubtful accounts, net	0	0	0
Other expenses	225,000,000	214,000,000	308,000,000
Total cost and expense	5,277,000,000	4,948,000,000	5,413,000,000
Costs [Member]
Statement [Line Items]
Cost of sale of goods and services	609,000,000	1,639,000,000	1,540,000,000
Salaries, social security costs and other personnel expenses	4,311,000,000	3,671,000,000	4,692,000,000
Depreciation and amortization	620,000,000	675,000,000	800,000,000
Fees and payments for services	252,000,000	208,000,000	369,000,000
Maintenance, security, cleaning, repairs and others	3,497,000,000	2,754,000,000	4,247,000,000
Advertising and other selling expenses	1,327,000,000	587,000,000	1,269,000,000
Taxes, rates and contributions	1,092,000,000	837,000,000	1,112,000,000
Director's fees	0	0	0
Leases and service charges	257,000,000	310,000,000	328,000,000
Allowance for doubtful accounts, net	0	0	0
Other expenses	151,000,000	82,000,000	192,000,000
Total cost and expense	12,116,000,000	10,763,000,000	14,549,000,000
Selling Expenses [Member]
Statement [Line Items]
Cost of sale of goods and services	0	0	0
Salaries, social security costs and other personnel expenses	151,000,000	239,000,000	330,000,000
Depreciation and amortization	4,000,000	9,000,000	5,000,000
Fees and payments for services	505,000,000	484,000,000	108,000,000
Maintenance, security, cleaning, repairs and others	3,000,000	4,000,000	8,000,000
Advertising and other selling expenses	312,000,000	66,000,000	169,000,000
Taxes, rates and contributions	1,277,000,000	1,290,000,000	1,530,000,000
Director's fees	0	0	0
Leases and service charges	7,000,000	23,000,000	48,000,000
Allowance for doubtful accounts, net	(32,000,000)	318,000,000	761,000,000
Other expenses	10,000,000	10,000,000	29,000,000
Total cost and expense	$ 2,237,000,000	$ 2,443,000,000	$ 2,988,000,000

XML

Cost of goods sold and services provided (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Inventories at the beginning of the year	$ (3,001)	$ (29,200)	$ 24,625
Purchases and expenses	12,631	2,278	141,883
Capitalized finance costs	0	0	30
Currency translation adjustments	(157)	(9,485)	20,350
Transfers	0	(502)	495
Deconsolidation cogs	0	(7,727)	(382)
Incorporated by business combination	0	0	651
Inventories at the end of the year	(3,359)	(3,001)	(29,200)
Total costs	$ 12,116	$ 10,763	$ 158,452

XML

Cost of goods sold and services provided (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Real estate	$ 3,234	$ 2,883
Others	125	118
Total inventories at the end of the year	$ 3,359	$ 3,001

XML

Other operating results, net (Details)	12 Months Ended
	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 ARS ($)
Result from purchase / sale of subsidiary and associates	$ 0	$ 59,000,000		$ (15,000,000)
Donations	150,000,000	223,000,000		244,000,000
Lawsuits and other contingencies	(276,000,000)	(142,000,000)		(269,000,000)
Administration fees	37		$ 16	37
Interest and discount generated by operating credits	128,000,000	157,000,000		417,000,000
Others	322,000,000	(8,000,000)		269,000,000
Total other operating results, net	$ 61,000,000	$ (141,000,000)		$ 195,000,000

XML

Financial results, net (Details) - ARS ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
- Interest income	$ 463	$ 591	$ 491
- Dividend income	0	1	34
Total finance income	463	592	525
- Interest expense	(8,291)	(11,437)	(14,524)
- Others financial costs	(902)	(1,299)	(923)
Subtotal finance costs	9,193	12,736	15,447
Capitalized finance costs	0	768	277
Total finance costs	9,193	11,968	15,170
- Fair value gain of financial assets and liabilities at fair value through profit or loss, net	(1,454)	(8,720)	(828)
Exchange rate differences, net	14,406	11,512	(15,386)
- Gain/(Loss) from repurchase of negotiable obligations	1,460	(156)	228
- (Loss) / gain from derivative financial instruments, net	33	(740)	(901)
Other financial results	439	(121)	0
Total Other financial results	17,792	19,215	(15,231)
- Inflation adjustment	2,789	(2,370)	(26)
Total financial results, net	$ 11,851	$ 5,469	$ (29,902)

XML

Earnings per share (Details) - shares	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Profit / (loss) per share attributable to equity holders of the parent: (ii)
Weighted average outstanding shares	809,000,000	588,000,000	575,000,000
Adjustments for calculation of diluted earnings per share Treasury shares	2,000,000	0	2,000,000
Adjustments for calculation of diluted earnings per share warrants	80	0	0
Weighted - average diluted common shares	891,000,000	588,000,000	577,000,000

XML

Earnings per share (Details 1) - ARS ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Basic
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent	$ 34,552	$ (37,515)	$ 49,084
Loss for the year of discontinued operations attributable to equity holders of the parent	0	(11,562)	(13,984)
Profit / (loss) for the year attributable to equity holders of the parent	$ 34,552	$ (49,077)	$ 35,100
Weighted average number of ordinary shares outstanding	809	588	575
Basic earnings per share	$ 42.73	$ (83.41)	$ 61.00

XML

Earnings per share (Details 2) - ARS ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Diluted
Profit / (loss) for the year of continuing operations attributable to equity holders of the parent	$ 34,552	$ (37,515)	$ 49,084
Loss for the year of discontinued operations attributable to equity holders of the parent	0	(11,562)	(13,984)
Profit / (loss) for the year per share attributable to equity holders of the parent	$ 34,552	$ (49,077)	$ 35,100
Weighted average number of ordinary shares outstanding	891	588	579
Diluted earnings per share	$ 38.79	$ (83.41)	$ 60.66

XML

Employee benefits and share-based payments (Details) - shares shares in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
At the beginning	2.1	2.4	2.8
Granted	(0.1)	(0.3)	(0.4)
At the end	2.0	2.1	2.4

XML

Employee benefits and share-based payments (Details Narrative) - ARS ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Charge related to the Incentive Plan		$ 1.0
Granting fair value per share	$ 25.3
Defined contribution plan, description	The Plan was effective as from January 1, 2006. Participants can make pre-tax contributions to the Plan of up to 2.5% of their monthly salary (“Base Contributions”) and up to 15% of their annual bonus (“Extraordinary Contributions”). Under the Plan, the Group matches employee contributions to the plan at a rate of 200% for Base Contributions and 300% for Extraordinary Contributions.
Percentage of contributions access	100.00%
Resignation or termination, description	In case of resignation or termination without fair cause, the manager will receive the Group’s contribution only if he or she has participated in the Plan for at least 5 years.
Contributions plan amount	$ 101.0	$ 94.0

XML

Related Party Transactions (Details)	12 Months Ended
	Jun. 30, 2022
Arnaldo Jawerbaum [Member]
Statement [Line Items]
Date of Birth	08/13/1966
Position	Operating Manager
Current position since	2022
Eduardo S. Elsztain [Member]
Statement [Line Items]
Date of Birth	01/26/1960
Position	General Manager
Current position since	1991
Matias I. Gaivironsky [Member]
Statement [Line Items]
Date of Birth	02/23/1976
Position	Administrative and Financial Manager
Current position since	2011
Jorge Cruces [Member]
Statement [Line Items]
Date of Birth	11/07/1966
Position	Investment Manager
Current position since	2020

XML

Related Party Transactions (Details 1) - ARS ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Total related party balances	$ 5,936	$ 5,242
Borrowings Excluding Finance Leases [Member]
Statement [Line Items]
Total related party balances	(166)	(1,479)
Trade And Other Receivables [Member]
Statement [Line Items]
Total related party balances	4,382	4,888
Lease liabilities [Member]
Statement [Line Items]
Total related party balances	0	(10)
Trade And Other Payable [Member]
Statement [Line Items]
Total related party balances	(1,114)	(740)
Investments In Financial Assets [Member]
Statement [Line Items]
Total related party balances	$ 2,834	$ 2,583

XML

Related Party Transactions (Details 2)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 ARS ($)	Jun. 30, 2021 ARS ($)	Jun. 30, 2020 ARS ($)
Statement [Line Items]
Total associates and joint ventures		$ 1,326,000,000	$ 819,000,000
Total parent company		1,942,000,000	2,138,000,000
Total subsidiaries of parent company		(40,000,000)	(203,000,000)
Total directors and others		2,708,000,000	2,488,000,000
Total at the end of the year		5,936,000,000	5,242,000,000
Loans granted		74,734,000,000	101,887,000,000	$ 926,487,000,000
Trade And Other Payables [Member] | Cresud [Member]
Statement [Line Items]
Total others		(205,000,000)	(236,000,000)
Share-based payments		(3,000,000)	(5,000,000)
NCN		2,561,000,000	2,504,000,000
Reimbursement of expenses not yet paid		5,000,000	21,000,000
Corporate services not yet paid		(416,000,000)	(146,000,000)
Trade And Other Payables [Member] | Directors [Member]
Statement [Line Items]
Loans obtained		0	(3,000,000)
Leases and/or rights of use receivables		(13,000,000)	(2,000,000)
Total others		(14,000,000)	0
Fees for services received		(364,000,000)	(207,000,000)
Management fees		(12,000,000)	(2,000,000)
Trade And Other Payables [Member] | La Rural S.A. [Member]
Statement [Line Items]
Loans granted		246,000,000	120,000,000
Dividends		204,000,000	335,000,000
Leases and/or rights of use receivables		0	(21,000,000)
Total others		(5,000,000)	0
Lipstick Management LLC [Member]
Statement [Line Items]
Loans obtained		0	(262,000,000)
Metropolitan 885 Third Av. LLC [Member]
Statement [Line Items]
Loans obtained		0	(774,000,000)
Trade And Other Receivables [Member]
Statement [Line Items]
Total at the end of the year		4,382,000,000	4,888,000,000
Trade And Other Receivables [Member] | Directors [Member]
Statement [Line Items]
Loans granted		2,209,000,000	2,638,000,000
Total others		274,000,000	25,000,000
Reimbursement of expenses receivables		25,000,000	31,000,000
Advances		603,000,000	8,000,000
Trade And Other Receivables [Member] | Comparaencasa Ltd [Member]
Statement [Line Items]
Total others		(41,000,000)	0
Other investments	$ 273		0
Trade And Other Receivables [Member] | Galerias Pacificos [Member]
Statement [Line Items]
Total others		703,000,000	214,000,000
Trade And Other Receivables [Member] | New Lipstick [Member]
Statement [Line Items]
Reimbursement of expenses receivables		30,000,000	38,000,000
Trade And Other Receivables [Member] | Other Associates And Joint Ventures [Member]
Statement [Line Items]
Loans obtained		(61,000,000)	(60,000,000)
Loans granted		0	11,000,000
Leases and/or rights of use receivables		7,000,000	10,000,000
Total others		(42,000,000)	(120,000,000)
Reimbursement of expenses receivables		1,000,000	3,000,000
Share-based payments		1,000,000	2,000,000
Others One		50,000,000	40,000,000
NCN		(63,000,000)	(172,000,000)
Unpaid contributions		0	(3)
Lease liabilities	0		(10)
Management fees receivables		19,000,000	10,000,000
Trade And Other Receivables [Member] | Futuros y Opciones S.A. [Member]
Statement [Line Items]
Loans obtained		0	(156,000,000)
Total others		0	5,000,000
NCN		(42,000,000)	(52,000,000)
Condor [Member] | Trade And Other Receivables [Member]
Statement [Line Items]
Loans granted		0	469,000,000
Total others		0	8,000,000
Public companies securities	$ 0		902
Investment in financial assets		$ 0	$ 79,000,000

XML

Related Party Transactions (Details 3) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Totals [Member]
Statement [Line Items]
Total related party liabilities	$ (1,946,000,000)	$ (1,435,000,000)	$ (1,852,000,000)
Total Associates And Joint Ventures [Member]
Statement [Line Items]
Total associates and joint ventures	530,000,000	601,000,000	(89,000,000)
Comparaencas Ltd. [Member]
Statement [Line Items]
Financial operations	192	0	0
Yad Leviims LTD [Member]
Statement [Line Items]
Corporate services	113,000,000	0	0
Otras asociadas y negocios conjuntons [Member]
Statement [Line Items]
Leases and/or rights of use	(14,000,000)	(13,000,000)	23,000,000
Financial operations	136	19,000,000	82,000,000
Corporate services	31,000,000	0	(323,000,000)
BACS [Member]
Statement [Line Items]
Leases and/or rights of use	58,000,000	128,000,000	126,000,000
BHN Vida S.A [Member]
Statement [Line Items]
Leases and/or rights of use	25,000,000	25	25,000,000
BHN Seguros Generales S.A [Member]
Statement [Line Items]
Leases and/or rights of use	24,000,000	10,000,000	25,000,000
La Rural S. A. [Member]
Statement [Line Items]
Leases and/or rights of use	0	(25)
Metropolitan 885 Third Av LLC (1) [Member]
Statement [Line Items]
Financial operations	31,000,000	25	(11,000,000)
Senior Management [Member]
Statement [Line Items]
Fees and remunerations	(77,000,000)	(72,000,000)	(74,000,000)
Directors [Member]
Statement [Line Items]
Fees and remunerations	(1,316,000,000)	(1,386,000,000)	(1,005,000,000)
Total Parent Company [Member]
Statement [Line Items]
Total parent company	(1,103,000,000)	(570,000,000)	(555,000,000)
Total Others [Member]
Statement [Line Items]
Total others	(1,374,000,000)	(1,623,000,000)	(1,208,000,000)
Cresud [Member]
Statement [Line Items]
Leases and/or rights of use	61,000,000	59,000,000	48,000,000
Financial operations	(25,000,000)	540,000,000	551,000,000
Corporate services	(1,139,000,000)	(1,169,000,000)	(1,154,000,000)
Helmir [Member]
Statement [Line Items]
Financial operations	1,000,000	157,000,000	0
Otras (2) [Member]
Statement [Line Items]
Leases and/or rights of use	10,000,000	(26)	0
Fees and remunerations	(15)	0	(57)
Financial operations	17,000,000	(3)	0
Corporate services	6,000,000	0	0
Donations	63,000,000	87	(61,000,000)
Legal services	$ (49,000,000)	$ (49,000,000)	$ 72,000,000

XML

Related Party Transactions (Details 4) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement [Line Items]
Total capital contributions	$ 1,035,000,000	$ (69,000,000)
Total dividends distribution	0	289,000,000
Total other transactions	3,586	0
Condor [Member]
Statement [Line Items]
Dividends received	3,586,000,000	0
Exchange of shares	865	0
Total dividends received	0	2,734,000,000
Quality [Member]
Statement [Line Items]
Capital contributions	41,000,000	(49,000,000)
Cresud [Member]
Statement [Line Items]
Dividends granted	0	289,000,000
Comparaencas [Member]
Statement [Line Items]
Total other transactions	129	0
Puerto Retiro [Member]
Statement [Line Items]
Capital contributions	$ 0	$ (20,000,000)

XML

Related Party Transactions (Details Narrative)	1 Months Ended
	Oct. 29, 1999
Related party transactions
Award of the agreement, description	November 29, 2005, shareholders of IRSA CP approved another agreement entered into with Fundación Museo de los Niños whereby 2,670.11 square meters built in the Alto Rosario shopping mall were loaned for a term of 30 years. Fundación IRSA has used the available area to house the museum called “Museo de los Niños, Abasto” an interactive learning center for kids and adults, which was opened to the public in April 1999.

XML

Foreign currency assets and liabilities (Details) - ARS ($)	Jun. 30, 2022	Jun. 30, 2021
Assets
Total Financial assets	$ 20,172,000,000	$ 16,197,000,000
Liabilities
Total financial liabliites	64,907,000,000	88,040,000,000
Trade And Other Payable [Member]
Liabilities
Total trade and other payables	1,134,000,000	2,122,000,000
Total trade and other receivables [Member]
Assets
Total Financial assets	5,688,000,000	8,520,000,000
Derivative Financial Instruments [Member]
Liabilities
Total financial liabliites	16,000,000	95,000,000
Derivative Financial Instruments [Member] | Lease Liabilities with Related Parties [Member]
Liabilities
Derivative Financial Liabilities	1,115,000,000	1,292,000,000
Derivative Financial Instruments [Member] | Borrowings Excluding Finance Leases [Member]
Liabilities
Derivative Financial Liabilities	62,642,000,000	84,531,000,000
Derivative Financial Instruments [Member] | Total Cash And Cash Equivalents [Member]
Liabilities
Derivative Financial Assets	9,225,000,000	1,730,000,000
Derivative Financial Instruments [Member] | Total Investments In Financial Assets [Member]
Liabilities
Derivative Financial Assets	5,259,000,000	5,947,000,000
Euros [Member] | Derivative Financial Instruments [Member] | Cash And Cash Equivalents [Member]
Liabilities
Amount	$ 0
Peso exchange rate	$ 130.88
Derivative Financial Assets	$ 1,000,000	2,000,000
Euros [Member] | Derivative Financial Instruments [Member] | Trade And Other Payables [Member]
Liabilities
Amount	$ 0
Exchange rate	$ 131.40
Derivative Financial Liabilities	$ 1,000,000	52,000,000
USD [Member] | Derivative Financial Instruments [Member]
Liabilities
Amount	$ 9,000,000
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 1,115,000,000	1,282,000,000
USD [Member] | Derivative Financial Instruments [Member] | Lease Liabilities with Related Parties [Member]
Liabilities
Amount	$ 0
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 0	10,000,000
USD [Member] | Derivative Financial Instruments [Member] | Lease Liabilities [Member]
Liabilities
Amount	$ 0
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 16,000,000	95,000,000
USD [Member] | Derivative Financial Instruments [Member] | Borrowings Excluding Finance Leases [Member]
Liabilities
Amount	$ 499,000,000
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 62,503,000,000	82,145,000,000
USD [Member] | Derivative Financial Instruments [Member] | Related Parties [Member] | Borrowings Excluding Finance Leases [Member]
Liabilities
Amount	$ 1,000,000
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 139,000,000	2,386,000,000
USD [Member] | Derivative Financial Instruments [Member] | Receivable [member] | Related Parties [Member]
Liabilities
Amount	$ 18,000,000
Peso exchange rate	$ 125.23
Derivative Financial Assets	$ 2,264,000,000	3,152,000,000
USD [Member] | Derivative Financial Instruments [Member] | Investments In Financial Assets [Member] | Related Parties [Member]
Liabilities
Amount	$ 14,000,000
Peso exchange rate	$ 125.03
Derivative Financial Assets	$ 1,723,000,000	1,107,000,000
USD [Member] | Derivative Financial Instruments [Member] | Cash And Cash Equivalents [Member]
Liabilities
Amount	$ 74,000,000
Peso exchange rate	$ 125.23
Derivative Financial Assets	$ 9,224,000,000	1,728,000,000
USD [Member] | Derivative Financial Instruments [Member] | Trade And Other Payables [Member]
Liabilities
Amount	$ 9,000,000
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 1,073,000,000	1,983,000,000
USD [Member] | Derivative Financial Instruments [Member] | Payables [member] | Related Parties [Member]
Liabilities
Amount	$ 0
Exchange rate	$ 125.23
Derivative Financial Liabilities	$ 60,000,000	87,000,000
USD [Member] | Derivative Financial Instruments [Member]
Liabilities
Amount	$ 23,000,000
Peso exchange rate	$ 125.03
Derivative Financial Assets	$ 2,864,000,000	3,676,000,000
New Israel Shekel [Member] | Derivative Financial Instruments [Member] | Investments In Financial Assets [Member]
Liabilities
Amount	$ 16,000,000
Peso exchange rate	$ 35.93
Derivative Financial Assets	$ 574,000,000	1,000,000,000
Pounds [Member] | Derivative Financial Instruments [Member] | Investments In Financial Assets [Member]
Liabilities
Amount	$ 1,000,000
Peso exchange rate	$ 130.95
Derivative Financial Assets	$ 98,000,000	164,000,000
Trade And Other Receivables [Member] | Euros [Member] | Derivative Financial Instruments [Member]
Liabilities
Amount	$ 0
Peso exchange rate	$ 130.88
Derivative Financial Assets	$ 11,000,000	39,000,000
Trade And Other Receivables [Member] | USD [Member] | Derivative Financial Instruments [Member]
Liabilities
Amount	$ 27,000,000
Peso exchange rate	$ 125.03
Derivative Financial Assets	$ 3,413,000,000	$ 5,329,000,000

XML

Results from discontinued operations (Details) - ARS ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement [Line Items]
Costs	$ 12,116,000,000	$ 10,763,000,000	$ 14,549,000,000
Net gain from fair value adjustment of investment properties	13,650,000,000	(12,742,000,000)	83,080,000,000
Share of profit of associates and joint ventures	(155,000,000)	(2,155,000,000)	2,189,000,000
Finance income	463,000,000	592,000,000	525,000,000
Finance cost	9,193,000,000	11,968,000,000	15,170,000,000
Financial results, net	11,851,000,000	5,469,000,000	(29,902,000,000)
Loss before income tax	37,662,000,000	(11,468,000,000)	83,078,000,000
Loss from discontinued operations	0	(14,633,000,000)	(8,112,000,000)
Equity holders of the parent	34,552,000,000	(49,077,000,000)	35,100,000,000
Non-controlling interest	$ 340,000,000	$ (12,564,000,000)	$ 23,361,000,000
Basic	$ 42.73	$ (83.41)	$ 61.00
Diluted	$ 38.79	$ (83.41)	$ 60.66
Discontinued Operations [Member]
Statement [Line Items]
Revenues		$ 62,057,000,000	$ 255,065,000,000
Costs	$ 0	(50,353,000,000)	(182,872,000,000)
Gross profit	0	11,704,000,000	72,193,000,000
Net gain from fair value adjustment of investment properties		(45,000,000)	(7,363,000,000)
General and administrative expenses	0	(7,143,000,000)	(24,309,000,000)
Selling expenses	0	(6,805,000,000)	(33,302,000,000)
Impairment of associates and joint ventures	0	0	(6,084,000,000)
Other operating results, net	0	2,322,000,000	879,000,000
Profit from operations		33,000,000	2,014,000,000
Share of profit of associates and joint ventures	0	1,178,000,000	3,567,000,000
Profit before financial results and income tax	0	1,211,000,000	5,581,000,000
Finance income	0	862,000,000	3,316,000,000
Finance cost	0	(11,316,000,000)	(41,490,000,000)
Other financial results	0	749,000,000	(19,789,000,000)
Financial results, net		(9,705,000,000)	(58,413,000,000)
Loss before income tax	0	(8,494,000,000)	(52,832,000,000)
Income tax	0	454,000,000	(413,000,000)
Loss from operations that are discontinued	0	(8,040,000,000)	(53,245,000,000)
(Loss) / gain for loss of control	0	(6,593,000,000)	45,133,000,000
Loss from discontinued operations	0	(14,633,000,000)	(8,112,000,000)
Equity holders of the parent	0	(11,562,000,000)	(13,984,000,000)
Non-controlling interest	$ 0	$ (3,071,000,000)	$ 5,872,000,000
Basic	$ 0	$ (19.65)	$ (24.30)
Diluted	$ 0	$ (19.65)	$ (24.30)

XML

Other relevant events of the year (Details Narrative)		12 Months Ended
	Mar. 03, 2022	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 ARS ($)	Jul. 21, 2022 USD ($)
Statement [Line Items]
Description of inflation in economic activity		Inflation reached 63.98% in the last 12 months. The survey on market expectations prepared by the Argentine Central Bank in July 2022, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 90.2% i.a. for December 2022 and 76.6% for December 2023. Analysts participating in the REM forecast a rebound in economic activity in 2022, reaching an economic growth of 3.4%.
Depreciated percentage		30.80%
Market exchange gap percentage		99.30%
BCRA [Member]
Statement [Line Items]
Net amount for which the exchange market	40.00%
Average life Term	2 years
Liquid foreign assets				$ 100,000
Holding deposits				$ 100,000
Economic Activity Estimator [Member]
Statement [Line Items]
Description of economic variations		A variation of 6.4% compared to the same month of 2021, and 1.1% compared to the previous month
Warrants exercise
Statement [Line Items]
Converted warrants | shares		44,878
Warrants received		$ 19,837
Ordinary Shareholders' Meeting [Member]
Statement [Line Items]
Inflation amount			$ 50,332
Special reserve			$ 30,693,000,000

XML

Subsequent events (Details Narrative) - USD ($)				1 Months Ended		12 Months Ended
	Jul. 12, 2022	Jul. 08, 2022	Jul. 06, 2022	Sep. 22, 2022	Aug. 17, 2022	Jun. 30, 2022
Statement [Line Items]
Description of exchange offered second alternatives						Option B: For each USD 1,000 of Series II Notes the bondholder received 1,030 of Series XIV Notes. Under Option B, 39.17% of the notes were accepted.
Description of exchange offered first alternatives						Option A: Cash payment for up to 30% of the total amount of participation in the exchange, and the difference to complete the exchanged face value, in Series XIV Notes with a premium of 1,015 times. For each USD 1,000 tendered, the bondholder received USD 493.18 million in cash and USD 514.42 million in Series XIV Notes. Under Option A, 60.83% of the notes were accepted.
Subsequent Events [Member]
Statement [Line Items]
Description of Amortization annual installments payable		Series XIV Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%
Maturity date of Series XIV Notes		Jun. 22, 2028
Accrue interest at fixed rate of Series XIV Notes		8.75%
Description of interest payable semi-annually		on June 22 and December 22 of each year
Description of Shares Buyback Program extension and completion	the Board of Directors has resolved to extend the term of the shares repurchase plan that was determined by the Board of Directors on March 11, 2022, for an additional period of one hundred and twenty (120) days
Acquired the equivalent of IRSA common shares				9,419,623
Acquired the equivalent of IRSA common shares represent in percentage				99.51%
Outstanding shares represent in percentage				1.16%
Description of Della Paolera 261 floor sale					the Company has sold and transferred one floor of the tower “200 Della Paolera” for a total leasable area of approximately 1,184 square meters and 8 parking spaces located in the building. The transaction price was set at approximately USD 12.6 million (USD/square meters 10,600), which had already been paid.
Subsequent Events [Member] | IRSA CP [Member]
Statement [Line Items]
Aggregate principal amount of issued series II Notes			$ 360,000,000
Maturity date of Series II Notes			Mar. 23, 2023
Nominal value of existing notes valid tendered and accepted amount			$ 239,000,000
Nominal value of existing notes valid tendered and accepted represent in perentage			66.38%
New issued Series XIV Notes for settled		$ 171,200,000
Outstanding principal amount		$ 121,000,000

XML

Groups of assets and liabilities held for sale (Details) - ARS ($)	Jun. 30, 2022	Jun. 30, 2021
Property, plant and equipment	$ 0	$ 53,650,000,000
Intangible assets	0	2,047,000,000
Investments in associates	0	336,000,000
Deferred income tax assets	0	1,223,000,000
Trade and other receivables	0	2,777,000,000
Cash and cash equivalents	0	2,567,000,000
Total assets held-for-sale	0	62,600,000,000
Trade and other payables	0	14,909,000,000
Salaries and social security liabilities	0	581,000,000
Employee benefits	0	580,000,000
Deferred income tax liabilities	0	2,933,000,000
Borrowings	0	14,359,000,000
Total liabilities held-for-sale	0	33,362,000,000
Total net assets held-for-sale	$ 0	$ 29,238,000,000