XML 120 R46.htm IDEA: XBRL DOCUMENT

Investments in associates and joint ventures (Tables)

12 Months Ended

Jun. 30, 2019

Investments In Associates and Joint Ventures [Abstract]

Schedule of Group's investments in joint ventures

Changes of the Group’s investments in associates and joint ventures for the fiscal years ended June 30, 2019 and 2018 were as follows:

		June 30, 2019				June 30, 2018
Beginning of the year			36,507				17,575
Adjustments of previous years (IFRS 9 and 15)			(107	)			-
Increase in equity interest in associates and joint ventures			488				658
Issuance of capital and contributions			92				196
Capital reduction			(470	)			(513	)
Decrease of interest in associate			(5,022	)			(526	)
Share of loss			(4,889	)			(2,444	)
Transfer to borrowings to associates (i)			-				(330	)
Currency translation adjustment			(283	)			2,111
Incorporation of deconsolidated subsidiary, net			-				20,481
Dividends (ii)			(1,202	)			(529	)
Distribution for associate liquidation			-				(112	)
Reclassification to held-for-sale			-				(86	)
Others			(79	)			26
End of the year (iii)			25,035				36,507

(i)	Corresponds to a reclassification made at the time of formalizing the loan repayment terms with the associate in the Operations Center in Israel.
(ii)	See Note 29.
(iii)	Includes Ps. (6,058) and Ps. (3,815) reflecting interests in companies with negative equity as of June 30, 2019 and 2018, respectively, which are disclosed in “Provisions” (see Note 18).

Schedule of additional information related to the Groups investment

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, 2019 and 2018, as well as the Group's share of the comprehensive results of these companies for the years ended on June 30, 2019, 2018 and 2017:

		% ownership interest												Value of Group's interest in equity								Group's interest in comprehensive income / (loss)
Name of the entity		June 30, 2019				June 30, 2018				June 30, 2017				June 30, 2019				June 30, 2018				June 30, 2019				June 30, 2018				June 30, 2017
Associates
New Lipstick (1)			49.96	%			49.90	%			49.90	%			(6,058	)			(3,815	)			(2,238	)			(3,703	)			(4,794	)
BHSA			29.91	%			29.91	%			30.66	%			3,114				5,103				(1,687	)			291				(885	)
Condor			18.89	%			28.10	%			28.72	%			974				1,083				27				417				907
PBEL			45.40	%			45.40	%			45.40	%			1,385				1,632				(82	)			291				528
Shufersal			26.02	%			33.56	%			N/A				16,102				19,856				208				N/A				N/A
Other associates			N/A				N/A				N/A				2,342				4,127				(725	)			188				(1,009	)
Joint ventures
Quality			50.00	%			50.00	%			50.00	%			1,308				1,665				(408	)			613				1,090
La Rural SA			50.00	%			50.00	%			50.00	%			71				272				101				(31	)			28
Mehadrin			45.41	%			45.41	%			45.41	%			3,390				3,535				(78	)			893				30
Other joint ventures			N/A				N/A				N/A				2,407				3,049				(290	)			708				1,199
Total associates and joint ventures															25,035				36,507				(5,172	)			(333	)			(2,906	)

Latest financial statements issued

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

Shareholders' equity

Associates

New Lipstick (1)

US

Real estate

N/A

-

(31

)

(210

)

BHSA (2)

Argentina

Financial

48,689,072

(***)1,500

(***)1,698

(***)10,496

Condor (3)

US

Hotel

2,198,225

N/A

4

107

PBEL

India

Real estate

450

(**)1

(20

)

512

Shufersal (6)

Israel

Retail

79,282,087

242

254

1,859

Other associates

N/A

N/A

N/A

N/A

Joint ventures

Quality (4)

Argentina

Real estate

120,827,022

326

(816

)

2,571

La Rural S,A,

Argentina

Organization of events

714,498

1

227

72

Mehadrin (5)

Israel

Agriculture

1,509,889

(**)3

32

611

Other joint ventures

N/A

N/A

N/A

N/A

(1)	On March 4, 2019, Metropolitan, a subsidiary of New Lipstick, has renegotiated its debt without recourse to IRSA and it has been reconfigured with a balance of US$ 11MM. Said debt must be canceled on April 30, 2021.

In June 2019, an Escrow Agreement was signed for the sum of US$ 5.1 million, through which an option was acquired to purchase the controlling stake on one of the lands on which the Lipstick building is built. This option expired on August 30, so the seller has the right to collect the deposit. The company will continue negotiations, trying to obtain funding sources that allow us to execute the purchase.

(2)	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 17.15 pesos per share. The effect of the treasury shares in the BHSA portfolio is considered for the calculation.
(3)	Condor is an investment company focused on US hotels. The price of its shares as of June 30, 2019 is US$ 9.07 per share.
(4)	Quality is dedicated to the exploitation of the San Martín property (former property of Nobleza Piccardo S.A.I.C. and F.).
(5)	Mehadrin is a company dedicated to the production and export of citrus, fruits and vegetables. The Group has entered into a Joint - Venture agreement in relation to this company. The price of its shares as of June 30, 2019 is NIS 20.40 per share.
(6)	Shufersal is a company that has supermarkets and pharmacies in Israel, the market price of the share is NIS 2,385 as of June 30, 2019.

(*)	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.
(**)	Amounts in millions of NIS.
(***)	The balances as of June 30, 2019 correspond to the Financial Statements of BHSA prepared in accordance with BCRA standards.

Schedule of financial information of the joint ventures considered to be material

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 06,30,19
Associates
BHSA (iii)			61,440				22,382				62,630				10,696				10,496				29.91	%			3,139				25				3,114
PBEL			2,220				597				442				8,486				(6,111	)			45.00	%			(2,750	)			4,135				1,385
Shufersal			36,202				62,604				38,278				38,338				22,190				26.02	%			5,774				10,328				16,102
Joint ventures
Quality Invest (ii)			17				3,443				83				806				2,571				50.00	%			1,286				22				1,308
Mehadrin			8,319				10,718				9,143				2,602				7,292				45.41	%			3,311				79				3,390
As of 06,30,18
Associates
BHSA			56,183				24,827				44,697				28,560				7,753				29.91	%			2,319				2,784				5,103
PBEL			3,057				650				909				8,506				(5,708	)			45.00	%			(2,569	)			4,201				1,632
Shufersal			34,198				60,060				37,450				34,381				22,427				33.56	%			7,527				12,329				19,856
Joint ventures
Quality Invest (ii)			7				4,387				100				1,008				3,286				50.00	%			1,643				22				1,665
Mehadrin			9,905				8,813				7,561				3,855				7,302				45.41	%			3,317				218				3,535

		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
Year ended 06,30,19 (i)
Associates
BHSA (iii)			17,006				1,698				1,698				250				7,940				(2,041	)			(5,044	)			1,689
PBEL			9				(182	)			(223	)			-				40				167				(214	)			(7	)
Shufersal			115,894				2,214				2,202				1,713				3,119				(8,067	)			977				(3,971	)
Joint ventures
Quality Invest (ii)			25				(816	)			(816	)			-				(87	)			-				87				-
Mehadrin			12,125				542				573				-				470				(194	)			(883	)			(607	)
Year ended 06,30,18 (i)
Associates
BHSA			12,300				2,054				2,054				200				2,602				(79	)			(821	)			1,702
PBEL			8				(552	)			(548	)			-				(76	)			397				(345	)			(24	)
Shufersal			94,100				1,847				(118	)			708				5,906				(7,587	)			4,569				2,888
Joint ventures
Quality Invest (ii)			22				1,227				1,227				-				(138	)			-				138				-
Mehadrin			11,277				534				541				-				615				40				(110	)			545

(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 Ps. 40 million, payable in two installments of Ps. 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 Ps. 71 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.
(iii)	Information under BCRA Standards except for the book value of the interest in the associate, goodwill and others.