Edgar Filing: IRSA INVESTMENTS & REPRESENTATIONS INC

form6k.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2016

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)

Bolivar 108

(C1066AAB)

Buenos Aires, Argentina

(Address of principal executive offices)

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANÓNIMA
(THE "COMPANY")

REPORT ON FORM 6-K

Attached is an English translation of the Unaudited Condensed Interim Consolidated Financial Statements as of March 31, 2016 and for the nine-month periods ended March 31, 2016 and 2015 filed by the Company with the Comisi�n Nacional de Valores and the Bolsa de Comercio de Buenos Aires:

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Financial Statements

as of March 31, 2016 and for the nine-month periods

ended March 31, 2016 and 2015

Legal Information

Denomination: IRSA Inversiones y Representaciones Sociedad Anónima.

Fiscal year N°: 73, beginning on July 1st, 2015.

Legal address: 108 Bolívar St., 1st floor, Autonomous City of Buenos Aires, Argentina.

Company activity: Real estate investment and development.

Date of registration of the by-laws in the Public Registry of Commerce: June 23, 1943.

Date of registration of last amendment of the by-laws in the Public Registry of Commerce: March 15, 2013.

Expiration of the Company’s by-laws: April 5, 2043.

Registration number with the Superintendence: 213,036.

Capital: 578,676,460 shares.

Common Stock subscribed, issued and paid up (in millions of Ps.): 579.

Parent Company: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

(Cresud S.A.C.I.F. y A.).

Legal Address: 877 Moreno St., 23rd. floor, Autonomous City of Buenos Aires, Argentina.

Main activity: Real estate, agricultural, commercial and financial activities.

Interest of the Parent Company on the capital stock: 366,788,251 common shares.

Percentage of votes of the Parent Company on the shareholders’ equity: 63.8%.

	CAPITAL STATUS
Type of stock	Authorized for Public Offer of Shares (*)		Subscribed, Issued and Paid up (in millions of Pesos)
Common stock with a face value of Ps. 1 per share and entitled to 1 vote each		578,676,460		579

(*) Company not included in the Optional Statutory System of Public Offer of Compulsory Acquisition.

Index

Glossary	1
Unaudited Condensed Interim Consolidated Statements of Financial Position	2
Unaudited Condensed Interim Consolidated Statements of Income	3
Unaudited Condensed Interim Consolidated Statements of Comprehensive Income	4
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity	5
Unaudited Condensed Interim Consolidated Statements of Cash Flows	7
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
Note 1 – The Group’s business and general information	8
Note 2 – Summary of significant accounting policies	11
Note 3 – Seasonal effects on operations	20
Note 4 – Acquisitions and dispositions	21
Note 5 – Financial risk management and fair value estimates	28
Note 6 – Segment information	33
Note 7 – Information about the main subsidiaries	44
Note 8 – Investments in associates and joint ventures	45
Note 9 – Financial assets and other assets held for sale	49
Note 10 – Investment properties	51
Note 11 – Property, plant and equipment	53
Note 12 – Trading properties	54
Note 13 – Intangible assets	55
Note 14 – Financial instruments by category	56
Note 15 – Trade and other receivables	60
Note 16 – Investments in financial assets	61
Note 17 – Derivative financial instruments	63
Note 18 – Cash flow information	64
Note 19 – Trade and other liabilities	67
Note 20 – Provisions	67
Note 21 – Borrowings	70
Note 22 – Taxes	79
Note 23 – Shareholders’ Equity	80
Note 24 – Revenues	81
Note 25 – Costs	82
Note 26 – Expenses by nature	82
Note 27 – Other operating results, net	86
Note 28 – Financial results, net	86
Note 29 – Employee benefits	87
Note 30 – Related parties transactions	88
Note 31 – Subsequent Events	93

Review report on the Unaudited Condensed Consolidated Financial Statements

Glossary

The followings are not technical definitions, but help the reader to understand certain terms used in the wording of the notes to the Group´s Financial Statements.

Terms		Definitions
Adama		Adama Agricultural Solutions Ltd.
BACS		Banco de Crédito y Securitización S.A.
Bartan		Bartan Holdings and Investments Ltd.
BASE		Buenos Aires Stock Exchange
BCRA		Central Bank of the Argentine Republic
BHSA		Banco Hipotecario S.A.
BMBY		Buy Me Buy You (Note 4.a)
Cellcom		Cellcom Israel Ltd.
Clal		Clal Holdings Insurance Enterprises Ltd.
CNV		Securities Exchange Commission
CODM		Chief Operating Decision Maker
Condor		Condor Hospitality Trust Inc.
Cresud		Cresud S.A.C.I.F. y A.
DFL		Dolphin Fund Ltd.
DIC		Discount Investment Corporation Ltd.
DN B.V.		Dolphin Netherlands B.V.
Dolphin		Dolphin Fund Ltd. and Dolphin Netherlands B.V.
EHSA		Entertainment Holdings S.A.
ERSA		Emprendimiento Recoleta S.A.
Financial Statements		Unaudited Condensed Interim Consolidated Financial Statements
Annual Financial Statements		Consolidated Financial Statements as of June 30, 2015
ETH		C.A.A. Extra Holdings Ltd.
FPC		Collective Promotion Funds
IDB Tourism		IDB Tourism (2009) Ltd
IDBD		IDB Development Corporation Ltd.
IDBGI		IDB Group Investment Inc.
IDBH		IDB Holdings Corporation Ltd.
IFISA		Inversiones Financieras del Sur S.A.
IFRS		International Financial Reporting Standards
Indarsa		Inversora Dársena Norte S.A.
CPI		Consumer Price Index
IRSA, the Company or Us		IRSA Inversiones y Representaciones Sociedad Anónima
IRSA CP		IRSA Propiedades Comerciales S.A.
Koor		Koor Industries Ltd.
Lipstick		Lipstick Management LLC
LRSA		La Rural S.A.
Metropolitan		Metropolitan 885 Third Avenue Leasehold LLC
New Lipstick		New Lipstick LLC
IAS		International Accounting Standards
IFRS		International Financial Reporting Standards
NIS		New Israeli Shekel
NFSA		Nuevas Fronteras S.A.
NPSF		Nuevo Puerto Santa Fe S.A.
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.
Rigby		Rigby 183 LLC
Shufersal		Shufersal Ltd.
SRA		Sociedad Rural Argentina
Tarshop		Tarshop S.A.
TASE		Tel Aviv Stock Exchange
Tender offers		Share repurchase commitment

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Financial Position

as of March 31, 2016 and June 30, 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		03.31.16		06.30.15
ASSETS
Non-current assets
Investment properties		10	49,404		3,490
Property, plant and equipment		11	21,154		243
Trading properties		12	1,366		128
Intangible assets		13	6,589		127
Investments in associates and joint ventures		8	15,858		3,173
Deferred income tax assets		22	1,127		53
Income tax and minimum presumed income tax ("MPIT") credit			107		109
Trade and other receivables		15	3,835		115
Employee benefits		29	4		-
Investments in financial assets		16	2,332		703
Financial assets and other assets held for sale		9	3,745		-
Derivative financial instruments		17	8		206
Total non-current assets			105,529		8,347
Current Assets
Trading properties		12	2,914		3
Inventories			2,899		23
Restricted assets			473		9
Income tax and minimum presumed income tax ("MPIT") credit			527		19
Financial assets and other assets held for sale		9	1,620		-
Trade and other receivables		15	13,405		1,143
Investments in financial assets		16	10,166		295
Derivative financial instruments		17	43		29
Cash and cash equivalents		18	19,224		375
Total current assets			51,271		1,896
TOTAL ASSETS			156,800		10,243
SHAREHOLDERS’ EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital			575		574
Treasury stock			4		5
Inflation adjustment of share capital and treasury stock			123		123
Share premium			793		793
Additional paid-in capital from treasury stock			16		7
Legal reserve			117		117
Special reserve			4		4
Other reserves			320		330
Retained earnings			(675	)	521
Total capital and reserves attributable to equity holders of the parent			1,277		2,474
Non-controlling interest			6,284		396
TOTAL SHAREHOLDERS’ EQUITY			7,561		2,870
LIABILITIES
Non-current liabilities
Trade and other payables		19	905		255
Borrowings		21	95,315		3,736
Derivative financial instruments		17	94		264
Deferred income tax liabilities		22	5,291		51
Employee benefits		29	654		-
Salaries and social security liabilities			3		2
Provisions		20	1,812		374
Total non-current liabilities			104,074		4,682
Current liabilities
Trade and other payables		19	18,291		896
Borrowings		21	23,742		1,248
Derivative financial instruments		17	102		237
Salaries and social security liabilities			1,621		123
Provisions		20	761		52
Income tax and minimum presumed income tax ("MPIT") liabilities			648		135
Total current liabilities			45,165		2,691
TOTAL LIABILITIES			149,239		7,373
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES			156,800		10,243

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Income

for the nine and three-month periods beginning on July 1st, 2015 and 2014 and January 1st, 2016 and 2015, respectively and ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

			Nine months					Three months
	Note			03.31.16		03.31.15			03.31.16		03.31.15
Income from sales, rents and services		24		19,731		2,509			17,567		811
Costs		25		(14,392	)	(1,109	)		(13,420	)	(374	)
Gross profit				5,339		1,400			4,147		437
Gain from disposal of investment properties		10		1,068		801			39		-
General and administrative expenses		26		(805	)	(261	)		(532	)	(99	)
Selling expenses		26		(2,539	)	(137	)		(2,419	)	(53	)
Other operating results, net		27		83		63			(37	)	(5	)
Profit from operations				3,146		1,866			1,198		280
Share of loss of associates and joint ventures		8		(686	)	(842	)		(288	)	(161	)
Profit before financial results and income tax				2,460		1,024			910		119
Finance income		28		1,000		84			626		36
Finance costs		28		(4,284	)	(825	)		(2,146	)	(290	)
Other financial results		28		35		(57	)		495		(65	)
Financial results, net		28		(3,249	)	(798	)		(1,025	)	(319	)
(Loss) / Profit before income tax				(789	)	226			(115	)	(200	)
Income tax		22		(250	)	(390	)		(14	)	(11	)
Loss for the period				(1,039	)	(164	)		(129	)	(211	)

Attributable to:
Equity holders of the parent				(676	)	(245	)		(189	)	(250	)
Non-controlling interest				(363	)	81			60		39

Loss per share attributable to equity holders of the parent during the period:
Basic				(1.176	)	(0.426	)		(0.329	)	(0.434	)
Diluted				(1.176	)	(0.426	)		(0.329	)	(0.434	)

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Comprehensive Income

for the nine and three-month periods beginning on July 1st, 2015 and 2014 and January 1st, 2016 and 2015, respectively and ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Nine months					Three months
		03.31.16		03.31.15			03.31.16		03.31.15
Loss for the period		(1,039	)	(164	)		(129	)	(211	)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment		(3,334	)	(148	)		(1,461	)	204
Currency translation adjustment associates		5,133		42			1,384		(174	)
Net change in fair value of hedging instruments		4		-			4		-
Other reserves		19		-			19		-
Items that may not be reclassified subsequently to profit or loss, net of income tax:
Actuarial loss from defined benefit plans		(11	)	-			(11	)	-
Other results generated in associates		4		-			4		-
Other comprehensive income / (loss) for the period		1,815		(106	)		(61	)	30
Total comprehensive income / (loss) for the period		776		(270	)		(190	)	(181	)

Attributable to:
Equity holders of the parent		(472	)	(368	)		(189	)	(220	)
Non-controlling interest		1,248		98			(1	)	39

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Attributable to equity holders of the parent
	Share capital	Treasury stock	Inflation adjustment of share capital and treasury stock (2)	Share premium	Additional paid-in capital from treasury stock	Legal reserve	Special reserve (1)	Other reserves (Note 23)	Retained earnings	Subtotal	Non-controlling interest	Total Shareholders’ equity


Balance at July 1st, 2015	574	5	123	793	7	117	4	330	521	2,474	396	2,870
Loss for the period	-	-	-	-	-	-	-	-	(676)	(676)	(363)	(1,039)
Other comprehensive income for the period	-	-	-	-	-	-	-	204	-	204	1,611	1,815
Total comprehensive income / (loss) for the period	-	-	-	-	-	-	-	204	(676)	(472)	1,248	776
Appropriation of retained earnings approved by Shareholders’ meeting held 11.26.15	-	-	-	-	-	-	-	520	(520)	-	-	-
Reserve for share-based compensation	1	(1)	-	-	9	-	-	4	-	13	-	13
Share of changes in subsidiaries’ equity	-	-	-	-	-	-	-	41	-	41	(17)	24
Tender offer to non-controlling shareholders (Note 4)	-	-	-	-	-	-	-	(190)	-	(190)	169	(21)
Cumulative translation adjustment for interest held before business combination (Note 4)	-	-	-	-	-	-	-	(144)	-	(144)	-	(144)
Incorporation for business combination	-	-	-	-	-	-	-	-	-	-	3,287	3,287
Capital reduction	-	-	-	-	-	-	-	-	-	-	(4)	(4)
Changes in non-controlling interest (Note 4)	-	-	-	-	-	-	-	(445)	-	(445)	1,221	776
Dividends distribution to non-controlling interest	-	-	-	-	-	-	-	-	-	-	(16)	(16)
Balance at March 31, 2016	575	4	123	793	16	117	4	320	(675)	1,277	6,284	7,561

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

(1)	Related to CNV General Resolution N° 609/12. See Note 23.

(2)	Includes Ps. 1 of Inflation adjustment of treasury stock. See Note 23.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Attributable to equity holders of the parent
	Share capital		Treasury stock		Inflation adjustment of share capital and treasury stock (2)		Share premium		Legal reserve		Special reserve (1)			Other reserves (Note 23)			Retained earnings			Subtotal			Non-controlling interest			Total Shareholders’ equity
Balance at July 1st, 2014		574		5		123		793		117		375			806			(785	)		2,008			548			2,556
Loss for the period		-		-		-		-		-		-			-			(245	)		(245	)		81			(164	)
Other comprehensive (loss) / income for the period		-		-		-		-		-		-			(123	)		-			(123	)		17			(106	)
Total comprehensive (loss) / income for the period		-		-		-		-		-		-			(123	)		(245	)		(368	)		98			(270	)
Appropriation of retained earnings approved by Shareholders’ meeting held 11.14.14		-		-		-		-		-		(371	)		(414	)		785			-			-			-
Reserve for share-based compensation		-		-		-		-		-		-			18			-			18			-			18
Capital reduction		-		-		-		-		-		-			-			-			-			(228	)		(228	)
Changes in non-controlling interest		-		-		-		-		-		-			16			-			16			(22	)		(6	)
Reimbursement of expired dividends		-		-		-		-		-		-			-			1			1			-			1
Dividends distribution to non-controlling interest		-		-		-		-		-		-			-			-			-			(22	)		(22	)
Balance at March 31, 2015		574		5		123		793		117		4			303			(244	)		1,675			374			2,049

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

(1) Related to CNV General Resolution N° 609/12. See Note 23.

(2) Includes Ps. 1 of Inflation adjustment of treasury stock. See Note 23.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Cash Flows

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		03.31.16		03.31.15
Operating activities:
Cash generated by operations before income tax paid		18	3,420		1,023
Income tax and Minimum Presumed Income tax paid			(656	)	(287	)
Net cash generated by operating activities			2,764		736
Investing activities:
Capital contributions in associates and joint ventures			(206	)	(39	)
Purchases of associates and joint ventures			-		(1,062	)
Purchases of investment properties			(141	)	(368	)
Proceeds from sale of investment properties			1,149		2,050
Proceeds from disposal of trading properties			(415	)
Purchases of property, plant and equipment			(650	)	(29	)
Purchases of intangible assets			(116	)	(5	)
Purchase of investments in financial assets			(7,272	)	(1,836	)
Proceeds from sale of investments in financial assets			7,637		1,438
Advanced payments			(14	)	(17	)
Proceeds from sale of equity interest in associates and joint ventures			9		56
Interest received from financial assets			62		92
Loans granted to related parties			(794	)	-
Cash incorporated by business combination		4	9,193		-
Dividends received		8	593		21
Net cash generated by investing activities			9,035		301
Financing activities:
Proceeds from borrowings			2,369		634
Payments of borrowings			(4,740	)	(971	)
Payment of financial leasing			(3	)	(2	)
Dividends paid			(76	)	(55	)
Issuance of non-convertible notes			7,290		-
Acquisition of non-controlling interest in subsidiaries			(1,939	)	(6	)
Interest paid			(2,535	)	(476	)
Loans from associates and joint ventures, net			-		22
Distribution of capital of non-controlling interest in subsidiaries			(4	)	(228	)
Payment of seller financing of shares			-		(106	)
Acquisition of derivative financial instruments			(49	)	(110	)
Repurchase of non-convertible notes			(121	)	-
Reissuance of non-convertible notes			7		-
Proceeds from derivative financial instruments			1,328		-
Payment of principal of non-convertible notes			(944	)
Net cash generated by / (used in) financing activities			583		(1,298	)
Net Increase / (Decrease) in cash and cash equivalents			12,382		(261	)
Cash and cash equivalents at beginning of year		18	375		610
Foreign exchange gain / (loss) on cash and cash equivalents			6,467		(111	)
Cash and cash equivalents at end of period			19,224		238

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated) Free translation from the original prepared in Spanish for publication in Argentina

1.	The Group’s business and general information

IRSA was founded in 1943, and is engaged in a diversified range of real estate activities in Argentina since 1991.

IRSA and its subsidiaries are collectively referred to hereinafter as “the Group”.

Cresud is our ultimate parent company and is a corporation incorporated and domiciled in Argentina. The address of its registered office is 877 Moreno St., Floor 23, Autonomous City of Buenos Aires, Argentina.

These Financial Statements have been approved for issue by the Board of Directors on May 12, 2016.

As of March 31, 2016, the Group has established two Operations Centers to manage its global business, mainly through the following companies (see Note 6).

(i)	Remains in current and non-current assets, as financial asset held for sale (see Note 9).

(ii)	Corresponds to Group’s associates, which are hence excluded from consolidation.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	The Group’s business and general information (Continued)

Operations Center in Argentina

The activities of the operations center in Argentina are mainly developed through IRSA and its main subsidiary, IRSA CP. Through IRSA and IRSA CP, the Group owns, manages and develops shopping centers across Argentina, a portfolio of office and other rental properties in the Autonomous City of Buenos Aires, and it entered the United States of America (“USA”) real estate market in 2009, mainly through the acquisition of non-controlling interests in office buildings and hotels. Through IRSA or IRSA CP, the Group also develops residential properties for sale. The Group, through IRSA, is also involved in the operation of branded hotels. The Group uses the term “real estate” indistinctively in these Financial Statements to denote investment, development and/or trading properties activities. IRSA’s shares are listed and traded on both the BASE and the NYSE.

The activities of the Group’s segment “financial operations and others” is carried out mainly through BHSA, where we have a 29.91% interest (without considering treasury shares of our own). BHSA is a commercial bank offering a wide variety of banking activities and related financial services to individuals, small and medium-sized companies and large corporations, including the provision of mortgaged loans. BHSA's shares are listed on the BASE. Besides that, the Group has a 42.88% indirect equity interest in Tarshop, which main activities are credit card and loan origination transactions.

Operations Center in Israel

During the fiscal year ended June 30, 2014, the Group made an investment in the Israeli market, through DFL and DN B.V., in IDBD (an Israeli Company), with of an initial interest of 26.65%. IDBD is one of the Israeli largest and most diversified conglomerates, which is involved, through its subsidiaries and other investments, in several markets and industries, including real estate, retail, agribusiness, insurance, telecommunications, etc.; controlling or participating in companies such as: Clal (Insurance Company), Cellcom (Mobile phone services), Adama (Agrochemicals), Shufersal (Supermarkets), PBC (Real Estate), among others. IDBD traded its shares in TASE between May 2014 and March 2016. To date, it is only trading as a “Debentures Company” under the Israeli law, because some of its bonds are listed.

On October 11, 2015, the Group gain effective control over IDBD (see Note 4). As a result, the Group has consolidated significant figures of several industries from IDBD and its subsidiaries.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	The Group’s business and general information (Continued)

Following the reduction of ETH’s equity interest in IDBD to less than 26.65% in February 2015 and the completion of BMBY’s process whereby Extra sold its equity interest, IDBD’s creditors saw an opportunity to call for the immediate payment of financial liabilities. During January 2016 and March 2016 IDBD agreed with the creditors certain amendments to the covenants in their loan agreements that will be enforced during the quarter ending December 31, 2015 until September 30, 2016. To date, IDBD is complying with the agreed commitments but there is no certainty that they will be met in the future. If IDBD fails to reach an agreement with its creditors under favorable terms, the preexisting restrictions and covenants turn to be in force and may not be fulfilled under the prevailing circumstances.

As a holding company, IDBD’s main sources of funds derive from the dividends distributed by its subsidiaries, which have experienced a reduction in recent years. Yet, there are restrictions as to the payment of dividends based on the indebtedness level in some subsidiaries. IDBD has projected future cash flows; however, such cash flows are not deemed sufficient to settle its liabilities and other commitments. IDBD expects to receive capital contributions from Dolphin to honor its financial commitments if so required and subject to Dolphin’s acceptance. However, the Group has not undertaken to provide further financing to the subsidiary or to complete any divestiture, including the sale of Clal. IDBD could also secure additional financing through the private or public issuance of equity securities and additional divestitures.

On December, 2013, was published in the Official Gazette of Israel the Promotion of Competition and Reduction of Concentration Law, 5774-2013 (‘the Concentration Law’) which has material implications for IDBD and its investments, including the disposal of the controlling interest in Clal, a potential delisting of IDBD or DIC so as to no longer trade its shares publicly or a merger between IDBD and DIC. The shares representing the controlling interest in Clal have been deposited with a trust fund designated by the Capital Markets, Insurance and Savings Commission, which is dependent on the Ministry of Finance of Israel. This Commission also set a deadline by which the sale of the controlling interest should be complete. According to the framework established by the governmental authorities, IDBD should have executed an agreement for the sale of the interest in Clal by January 7, 2016 in order for the buyer to be able to secure all required regulatory approvals by June 30, 2016. Despite the fact that IDBD had received several non-binding offers to buy its controlling interest in Clal, such offers did not succeed for reasons beyond IDBD’s control, and the regulatory entity established an arrangement to complete the sale of Clal, as described in detail in Note 9. According to certain terms and covenants governing the above mentioned financial debt, there are also restrictions on the sale of material subsidiaries requiring the financial entities’ approval, and the regulatory entity’s requirement of selling the equity interest in Clal is also subject to IDBD’s current renegotiations with its creditors.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	The Group’s business and general information (Continued)

All factors mentioned above, mainly (i) IDBD’s current financial position and need of financing to honor its financial debt and other commitments, (ii) the renegotiation underway with financial creditors, and (iii) the term set by Israel’s governmental authorities to sell the equity interest in Clal and the potential effects of such sale, in particular, on its market value, raise significant uncertainties as to IDBD’s capacity to continue as a going-concern. These financial statements do not include the adjustments or reclassifications related to the valuation of IDBD’s assets and liabilities that would be required if IDBD were not able to continue as a going-concern.

The Group is and will continue working to address the uncertainties described above.

The Group

The financial position of IDBD and its subsidiaries at the operations center in Israel does not affect the financial position of IRSA and its subsidiaries at the operations center in Argentina.

IRSA and its subsidiaries are not facing financial constraints and are compliant with their financial commitments. In addition, the commitments and other covenants resulting from the loan granted to IDBD do not have impact on IRSA since such loan has no recourse against IRSA and it is not secured by IRSA’s assets.

There are no significant uncertainties as to the capacity of the Group, as a whole, to operate as a going-concern, with such uncertainties being limited to the operations in Israel.

2.	Summary of significant accounting policies

2.1.	Basis of preparation of the Financial Statements

These Financial Statements have been prepared in accordance with IAS 34 "Interim Financial Reporting", therefore, should be read together with the Annual Financial Statements of the Group as of June 30, 2015 prepared in accordance with IFRS in force. Furthermore, these Financial Statements include supplementary information required by Law N° 19,550 and/or regulations of the CNV. Such information is included in notes to these Financial Statements according to IFRS.

These Financial Statements corresponding to the nine-month periods ended March 31, 2016 and 2015 have not been audited. The management believes they include all necessary adjustments to fairly present the results of each period. The Company’s nine-month periods ended March 31, 2016 and 2015 results do not necessarily reflect the proportion of the Group’s full-year results.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

On October 11, 2015, the Group took over IDBD. IDBD’s fiscal year ends on December 31 each year and the Company’s fiscal year ends on June 30. IDBD’s quarterly and annual reporting follows the guidelines of Israeli standards, which means that the information is only available after the applicable statutory terms in Argentina. Therefore, the Company will not be able to include IDBD’s quarterly results in its consolidated financial statements to be filed with the CNV within the applicable statutory terms in Argentina. The Company has started to consolidate IDBD’s results of operations with a three-month lag, adjusted for the effects of material transactions that may have taken place during the reported period. Hence, IDBD’s results of operations for the period beginning on October 11, 2015 (the acquisition date) through December 31, 2015 are included in the Group’s interim consolidated statement of comprehensive income for the nine-month period ended March 31, 2016, adjusted by such material transactions that had been substantially affected.

The Group expects the business combination to be fully booked in its financial statements as of June 30, 2016 and is preliminary and subject to potential measurement adjustments, as explained in Note 4.

Given the materiality of IDBD’s figures incorporated, the Group had to change the format of its financial statements for the ease of reading and analysis. The most significant change is in line with the new organizational structure, which is split into two large operations centers in Argentina and Israel. In this regard, changes have been made to the notes and tables and their respective order, classification and content in the financial statements, on a geographic basis and taking into consideration the significance of the Group’s global operations following IDBD’s consolidation.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

2.2.	Scope of consolidation

In addition to the comments in Note 2.3 a) to the Annual Financial Statements, below are the consolidation bases that were followed to consolidate IDBD from October 11, 2015.

The Group conducts its business through several operating and holding companies, the principal are listed below:

Operations Center in Argentina:

Name of the entity	Main activity	% of ownership interest held by the Group (4)			% of ownership interest held by the NCI
Direct interest of IRSA:
IRSA CP	Real estate		94.74	%		5.26	%
E-Commerce Latina S.A. (3)	Holding		100.00	%		-
Efanur S.A.	Holding		100.00	%		-
Hoteles Argentinos S.A.	Hotel		80.00	%		20.00	%
Inversora Bolívar S.A.	Holding		100.00	%		-
Llao Llao Resorts S.A. (1)	Hotel		50.00	%		50.00	%
Nuevas Fronteras S.A.	Hotel		76.34	%		23.66	%
Palermo Invest S.A.	Holding		100.00	%		-
Ritelco S.A.	Holding		100.00	%		-
Tyrus S.A.	Holding		100.00	%		-

Interest indirectly held through IRSA CP:
Arcos del Gourmet S.A.	Real estate	90.00	%	10.00	%
Emprendimiento Recoleta S.A.	Real estate	53.68	%	46.32	%
Fibesa S.A.	Real estate	100.00	%	-
Panamerican Mall S.A.	Real estate	80.00	%	20.00	%
Shopping Neuquén S.A.	Real estate	99.56	%	0.44	%
Torodur S.A.	Holding	100.00	%	-

Interest indirectly held through Tyrus S.A.:
Dolphin Fund Ltd. (2)	Holding	91.57	%	8.43	%
I Madison LLC	Holding	100.00	%	-
IRSA Development LP	Holding	100.00	%	-
IRSA International LLC	Holding	100.00	%	-
Jiwin S.A.	Holding	100.00	%	-
Liveck S.A.	Holding	100.00	%	-
Real Estate Investment Group V LP	Holding	100.00	%	-
Real Estate Strategies LLC	Holding	100.00	%	-
Interest indirectly held through Efanur S.A.:
Real Estate Strategies LP	Holding	66.83	%	33.17	%
Interest indirectly held through Dolphin Fund Ltd.
IDB Development Corporation Ltd.	Holding	68.28	%	31.72	%

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

Operations Center in Israel:

Name of the entity	Main activity	% of ownership interest held by the Group (4)			% of ownership interest held by the NCI
Interest indirectly held through IDBD:
Discount Investment Corporation Ltd.	Holding		76.43	%		23.57	%
IDB Tourism (2009) Ltd.	Holding company in the tourism services sector		100.00	%		-
IDB Group Investment Inc.	Holding		50.00	%		50.00	%

Interest indirectly held through Discount Investment Corporation Ltd
Property & Building Corporation Ltd.	Real estate		76.46	%		23.54	%
Gav Yam Land Ltd.	Real estate		69.06	%		30.94	%
Israel Property Rental Corporation Ltd. (ISPRO)	Real estate		100.00	%		-
MATAM - Haifa Science Industries Center	Real estate		50.10	%		49.90	%
Neveh-Gad Building & Development Ltd.	Real estate		100.00	%		-
Hadarim Properties Ltd.	Real estate		100.00	%		-
PBC USA Investment Inc.	Real estate		100.00	%		-
Shufersal Ltd.	Supermarket		52.94	%		47.06	%
Shufersal Real Estate Ltd.	Supermarket		100.00	%		-
Koor Industries Ltd.(5)	Holding company in the agrochemical sector		100.00	%		-
Cellcom Israel Ltd. (6)	Communication services		41.77	%		58.23	%
Netvision Ltd.	Communication services		100.00	%		-
Elron Electronic Industries Ltd.	Technology development – Holding		50.32	%		49.68	%
Bartan Holdings and Investments Ltd.	Holding		55.68	%		44.32	%
Epsilon Investment House Ltd.	Holding		68.75	%		31.25	%

(1)	The Group has consolidated the investment in Llao Llao Resorts S.A. considering its equity interest and a shareholder agreement that confers it majority of votes in the decision making process.

(2)	Includes interest indirectly held through Ritelco S.A..

(3)	Includes interest indirectly held through Tyrus S.A..

(4)	Correspond to interest directly held in each company.

(5)	Owns a 40% equity interest of Adama.

(6)	The Group has consolidated the interest in Cellcom taking into consideration its equity interest and decision-making power given the fact that the remaining interests are too disperse.

Summarized financial information on principal subsidiaries with material non-controlling interests and other information are included in note 7.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

2.3.	Significant accounting policies

The accounting policies applied in the presentation of these Financial Statements are consistent with those applied in the preparation of the Annual Financial Statements under IFRS as described in Note 2 to the Consolidated Financial Statements as of June 30, 2015, except for the new accounting policies adopted following IDBD’s consolidation.

The most significant accounting policies applied since control was gained are the following:

2.3.1 Non-recourse loan

IDBD has a non-recourse loan, which was split into two components on the basis of an independent appraiser’s report.

The commitment to transfer shares represents the main contract and was initially recognized at fair value and, later, at its depreciated cost. The derivative embedded represents a call option and is computed taking into account future payments of interest on the loan.

The main contract and the embedded derivative ("non-recourse loan") are disclosed net in loans.

2.3.2 Irrevocable right of use of the capacity of underground communication lines

Transactions carried out to acquire an irrevocable right of use of the capacity of underground communication lines are accounted for as service contracts. The amount paid for the rights of use of the communication lines is recognized as “Prepaid expenses” under trade and other receivables, and is amortized over a straight-line basis during the period set forth in the contract (including the option term), which is the estimated useful life of such capacity.

2.3.3 Inventories

Inventories are measured at the lower of cost and net realizable value.

The cost of inventory includes expenses incurred in buying and taking the inventory to its existing location and condition. The cost of inventory of mobile phones and their related accessories and spare parts is calculated on the basis of the moving average, with the cost of other inventory being calculated on a FIFO basis.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

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.

2.3.4 Property, plant and equipment

The Group, through its Operations Center in Israel, holds hotels that have been reported under “Investment properties” since, unlike the hotels in the Operations Center in Argentina, it does not have a significant exposure to changes in operating cash flows of such hotels.

2.3.5 Employee benefits

Defined contribution plans

A defined contribution plan is a retirement benefit whereby IDBD and its subsidiaries make fixed contributions to a separate entity, without the legal or implicit obligation to pay additional amounts. The Group’s obligation to make contributions to defined contribution plans is recognized as expense when the obligation arises.

Defined benefit plans

Net obligation of IDBD and its subsidiaries 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.

Other long-term employee benefits

The net obligation of IDBD and its subsidiaries concerning employee long-term benefits, other than retirement plans, is the amount of the future benefits employees have gained in exchange for their services in the current and prior periods. These benefits are discounted at their present values.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

2.3.6 Provisions

Guarantees

A provision for warranties is recognized when the underlying products or services are sold. The provision is based on historic data of the warranties granted and all potential results are weighted against associated probabilities.

Onerous contracts

A provision for onerous contracts is recognized when the expected benefits are lower than the costs of complying with contract obligations. The provision is measured at the present value of the lower of expected cost of terminating the contract and the net expected cost of continuing the contract. Before recognizing a provision, the Group recognizes the impairment of the assets related to the mentioned contract.

2.3.7. Revenue Recognition

Sale of products

Revenue from the sale of goods in the ordinary course of business are recognized at the fair value of the consideration collected or receivable, net of returns and discounts. Where the credit term is short and financing is that typical in the industry, consideration is not discounted. Where the credit term is longer than the industry’s average, in accounting for the consideration, the Group discounts it to its net present value by using the client’s risk premium or the market rate. The difference between the fair value and the nominal amount is accounted for under financial income. If discounts are granted and their amount can be measured reliably, the discount is recognized as a reduction of revenue.

Generally, the Group recognizes revenue upon delivery of goods to the client. In international sales, revenue is recognized upon loading goods with the forwarder. Where two or more products are sold under one single contract, the Group separates each component and gives them a separate accounting treatment. The attribution of value to each component is based on the relative fair value of each unit. Should the fair value not be measurable on a reliable basis, then revenue is attributed based on the difference arising between the total amount of the executed contract and the fair value of the goods delivered.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

As regards client loyalty programs, the fair value of the consideration received or receivable in relation to the initial sale is allocated across the rewards credits and the other components of the sale. The amount allocated to rewards credits is estimated based on the market value of the goods to be delivered. The fair value of the right to purchase products at a discount is calculated considering the expected exchange ratio and the expected terms. Such amount is deferred and revenue is recognized only where rewards credits are exchanged and the Group has complied with its obligation to provide the products at a discount, or else when such reward credits have expired. The amount of revenue recognized under such circumstances is based on the number of reward credits that have been exchanged for products with discounts, in relation to the total number of reward credits expected to be exchanged. Deferred revenue is then reversed when reward credits are no longer likely to be exchanged.

In addition, when the Group acts as agent and not as main supplier in a transaction, revenue is recognized at the net amount of commissions. Revenue from commissions is recognized based on transactions conducted by credit card companies at the rate and on the date they are credited. Revenue from credit margins of credit cards is recognized on the date the client is bound to pay and revenue for subscription fees is recognized on a monthly basis.

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 and roaming service rates, 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 are 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 and recognizes revenue pursuant to the transaction value upon delivery of the equipment to the client. Revenue from telephone services are recognized and accounted for as they are provided. 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.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

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.

Revenue from tourism operations

Revenue from the provision of tourist services is recognized based on the degree of completion of the transaction, and provided the following conditions are met:

·	The revenue amount may be reliably measured;

·	the economic benefits associated to the transaction are expected to have an impact on the Group;

·	the degree of completion of the transaction may be measured on a reliable basis; and

·	expenses incurred in relation to the transaction as well as all necessary costs to finalize the transaction may be reliably measured.

2.3.8. Cost of sales

The cost of retail sales, includes the acquisition costs for the products minus discounts granted by suppliers, as well as all expenses associated with storing and handling inventories. It also includes operational and management costs for shopping centers 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.

2.4.	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 period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Summary of significant accounting policies (Continued)

In the preparation of these Financial Statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the Annual Financial Statements, as describe in Note 5 to those Financial Statements, save for changes in accrued income tax, provision for legal claims, provision for Directors' fees, allowance for bad debts and accrued supplementary rental, and those incorporated by business combination with IDBD.

2.5.	Comparability of information

Balance items as of June 30, 2015 and March 31, 2015 shown in these financial statements for comparative purposes arise from the Consolidated Financial Statements then ended.

As required by IFRS 3, the information of IDBD is included in the financial statements of the Group as from the acquisition date, and the prior periods are not modified by this situation. Therefore, the financial information consolidated for periods after the acquisition is not comparative with prior periods.

During the nine-month period ended March 31, 2016, the Argentine Peso devalued against the US$ and other currencies by around 63%, which has an impact in comparative information presented in these Financial Statements, due mainly to the currency exposure of our income and costs from "offices and other properties" segment, and our assets and liabilities in foreign currency (mainly assets and liabilities of the Operations Center in Israel).

3.	Seasonal effects on operations

Operations Center in Argentina

The operations of the shopping centers are subject to seasonal effects, which affect the level of sales recorded by lessees. During summer time in Argentina (January and February), the lessees of shopping centers experience the lowest sales levels in comparison with the winter holidays (July) and Christmas and year-end holidays celebrated in December, when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also affect the business. As a consequence, for shopping center operations, a higher level of business activity is expected in the period ranging between July and December, compared to the period January through June.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

3.	Seasonal effects on operations (Continued)

Operations Center in Israel

The operations of the Shufersal supermarket chain are subject to fluctuations of quarterly sales and income due to the increase in activity during religious holidays in different quarters throughout the year. For instance, in Pesaj (Passover) between March and April, and the Jewish New Year, sometime between September and October each year.

The results of operations of Cellcom are also usually affected by seasonality in summer months in Israel and by the Jewish New Year, given a higher consumption due to internal and external tourism.

4.	Acquisition and dispositions

a)	Acquisition of control over IDBD

On May 7, 2014, a transaction was agreed whereby the Group, acting indirectly through Dolphin, acquired, jointly with E.T.H.M.B.M. Extra Holdings Ltd. (a non-related company incorporated under the laws of the State of Israel) controlled by Mordechay Ben Moshé, an aggregate number of 106.6 million common shares in IDBD representing 53.30% of its stock capital, under the scope of the debt restructuring of IDBH with its creditors (the "Arrangement"), the IDBD's parent company.

Under the terms of the agreement entered into between Dolphin and ETH, to which Dolphin and ETH agreed to (the "Shareholders' Agreement"), Dolphin acquired 50% interest in this investment, and ETH acquired the remaining 50%. The initial total investment amount was NIS 950 million, equivalent to approximately US$ 272 million at the exchange rate prevailing on that date.

On May 28, 2015, ETH launched the BMBY mechanism provided in the Shareholders’ Agreement (clause which establishes that each party of the Shareholders' Agreement may offer to the counterparty to acquire (or sell, as the case may be), the shares it holds in IDBD at a fixed price). In addition, ETH further added that the purchaser thereunder required to assume all obligations of seller under the Arrangement.

On June 10 and 11, 2015, Dolphin gave notice to ETH of its intention to buy all the shares of IDBD held by ETH.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

After certain aspects of the offer were resolved through an arbitration process brought by Dolphin and ETH in accordance with provisions on dispute resolution included in the Shareholders’ Agreement, on September 24, 2015, the competent arbitrator resolved that: (i) Dolphin and IFISA (related company to the Group) were entitled to act as buyers in the BMBY process, and ETH should sold IDBD shares held by it (92,665,925 shares) at a price of NIS 1.64 per share; (ii) The buyer had to fulfill all of the commitments included in the seller’s Arrangement, including the commitment to carry out Tender Offers where responsibility were borne by Dolphin; (iii) The buyer had to pledge in favor of the Arrangement Trustees the shares that seller had pledged to them.

On October 11, 2015, the BMBY process concluded, and IFISA acquired all IDBD's shares of stock held by ETH. Consequently, the Shareholders' Agreement ceased and members of IDBD's Board of Directors representing ETH submitted their irrevocable resignation to the Board. Dolphin was hence empowered to appoint the new members to the Board. Additionally, on the same date, Dolphin pledged additional shares as collateral to secure compliance with the IDBD stock purchase agreement, thereby increasing the number of pledged shares to 64,067,710. As a consequence, the Group gained control of IDBD and started to consolidate financial statements as from that date with an initial interest of 49%.

The Group is analyzing the allocation of the price paid across various net assets acquired by IDBD; therefore, the information presented below is preliminary and subject to changes.

The following chart shows the consideration, the fair value of the acquired assets, the assumed liabilities and the non-controlling interest as of the acquisition date.

	10.11.15
Fair value of the interest in IDBD’s equity held before the business combination and warrants	1,416
Total consideration	1,416

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

	10.11.15
Fair value of identifiable assets and assumed liabilities:
Investment properties	28,726
Property, plant and equipment	13,067
Intangible assets	1,287
Investment in associates and joint ventures	9,043
Financial assets and other assets held for sale	4,475
Trading properties	2,564
Inventories	1,822
Income tax credits for the year	91
Trade and other receivables	9,546
Investments in financial assets	6,684
Restricted assets	250
Cash and cash equivalents	9,193
Deferred income tax	(2,660	)
Provisions	(1,106	)
Borrowings	(68,170	)
Derivative financial instruments, net	(39	)
Income tax expense	(316	)
Employee benefits	(405	)
Salaries and social security liabilities	(794	)
Trade and other liabilities payables	(11,261	)
Total net identifiable assets	1,997
Non-controlling interest	(3,287	)
Goodwill not yet allocated	2,706
Total	1,416

The fair value of the investment property was assessed by qualified independent appraisers. As of the acquisition date, the Group estimates that recognized assets are recoverable. The value of the non-controlling interest in IDBD has been determined on a proportional basis to the fair value of net acquired assets.

Following the control of IDBD, the cumulative currency translation accumulated in shareholders’ equity from the interest held in IDBD before the business combination in the amount of Ps. 144 was recognized in the statement of income. This gain was disclosed under "Other operating results, net" line in the statement of income.

Later on, following the exercise of BMBY, Dolphin has entered into an option agreement with IFISA that grants Dolphin the right, but not the obligation, to acquire 92,665,925 shares in IDBD which IFISA acquired in the BMBY process at a price per share of NIS 1.64 plus an annual interest rate of 8.5%. The exercise date for the option extends for two years. Additionally, Dolphin is entitled to a first refusal right in case that IFISA agrees to sell these shares to a third party.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

b)	Acquisition offers

As described in Note 3.1 to the Annual Financial Statements, Dolphin was required to carry out the first tranche of tender offers in December 2015. Before expiration of such first tranche, Dolphin and the agreement administrators (the “Administrators”) entered into an extension agreement (the “Extension Agreement”), including but not limited to:

(i)

Postpone the date in which Dolphin would propose the first part of the tender offers until March 15, 2016, so that the execution of the tender offers would extend until March 31, 2016. Increase the first part of the tender offers by NIS 7 million, without changing the number of shares entitled to participate in the Tender Offer;

(ii)

Should IDBD carry out the issue of shares or convertible bonds before March 15, 2016 (excluding the issuance of shares resulting from exercising already existing warrants) to any person other than Dolphin and/or any other company not entitled to take part as offeror in the tender offers, will proceed to increase the first part of the tender offers by NIS 53 million (in addition to the NIS 7 million detailed in section (i)), without changing the total number of shares included in the tender offers.

(iii)

Increase the collateral granted to the Agreement Administrators to secure performance of the commitments assumed under the tender offers;

(iv)	The Extension Agreement should be approved by the Shareholders’ Meeting, after which the parties would file a petition requesting that the appeal with the Supreme Court be dismissed without costs for the parties;

(v)	The Extension Agreement would also be subject to the execution of the Subordinated Loan between Dolphin and IDBD (a subordinated and convertible loan granted to IDBD in the amount of NIS 210 million).

On December 6, 2015, the Shareholders’ Meeting approved of the Extension Agreement and on December 8, 2015 it was approved by a competent court, and upon appeal filed with the Supreme Court (mentioned in subsection (iv) above), it was dismissed without cost to the parties.

On December 1, 2015, Dolphin and IDBD subscribed the subordinated loan.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

During February and March 2016, Dolphin has entered into an agreement with the Agreement Administrators to amend the terms and conditions of the tender offers mentioned above. This amendment was approved by approximately 95% of the non-controlling shareholders of IDBD (excluding IFISA) and by warrant holders of IDBD on March 2, 2016, and by the competent court on March 10, 2016. The major amendments to the Agreement are:

(i)

Replacement of the obligation to conduct tender offers as previously established under an agreement whereby Dolphin should purchase all the shares outstanding on March 29, 2016 from non-controlling shareholders of IDBD (except for those held by IFISA) on March 31, 2016. On March 29, 2016, all IDBD shares would cease to be traded in the TASE. On that date, all IDBD warrants held by non-controlling shareholders will expire and Dolphin will make capital contributions to IDBD or grant subordinate loans, as described hereafter.

(ii)

The price to be paid for each IDBD share held by non-controlling shareholders on March 29, 2016 will be NIS 1.25 in cash, NIS 1.20 adjusted nominal value in bonds of the IDBD Series 9 (the “IDBD Bonds”), which IDBD will issue directly to non-controlling shareholders and holders of warrants, and Dolphin will inject funds into IDBD equal to the adjusted nominal value of IDBD Bonds. Additionally, Dolphin undertakes to pay NIS 1.05 (subject to adjustments) in cash should Dolphin, either directly or indirectly, gain control of Clal, or else if IDBD sells a controlling shareholding in Clal under certain parameters (the “payment by Clal”), which refers mainly to Clal’s sale price (at a price which exceeds 75% of its book value upon execution of the sale agreement, subject to adjustments) and, under certain circumstances, the proportion of Clal shares sold by IDBD.

(iii)

The warrants held by non-controlling shareholders that have not been exercised until March 28, 2016 shall expire on March 31, 2016. Each warrant holder shall be entitled to elect whether: (a) to receive IDBD bonds (based on the adjusted nominal value) in an amount equal to the difference between NIS 2.45 and the exercise price of the warrants and be entitled to a payment from Clal; or (b) to receive a payment which will be determined by an independent appraiser.

(iv)

Dolphin shall provide IDBD a total amount of NIS 515 million (the “Contribution to IDBD”), out of which it has already contributed NIS 15 million in February 2016 and NIS 85 million in March 2016. The amount injected to IDBD will be reduced by any capital contribution resulting from the exercise of warrants held by non-controlling shareholders (maximum amount of approximately NIS 37.5 million). The contribution to IDBD will further cover the IDBD Bonds that would be necessary to comply with the transactions described above (between NIS 166.5 million and NIS 178 million), and the balance will be contributed until completing the amount committed by Dolphin either as a capital contribution or as a subordinated loan (between NIS 284.5 and NIS 333.5 million).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

(v)

On March 31, Dolphin should pledge 28% of its IDBD shares, as well as all rights held by Dolphin in relation to the subordinated loan granted in the amount of NIS 210 million in December 2015, until the payment obligation to Clal has been completed or has expired, after which the pledge will be discharged. Should new shares be issued by IDBD, Dolphin will have to pledge additional shares until completing the 28% of all IDBD share capital. This pledge supersedes the existing pledge on approximately 64 million shares of IDBD and all Dolphin’s rights in relation to the Subordinated Loan.

(vi)

Additionally, Dolphin agrees not to exercise its right to convert the subordinated loans into shares of IDBD until the pledge described above has been released. Should the pledge on subordinated loans be exercised by the Administrators of the Agreement, then those Administrators may convert the subordinated loans into shares; however, in such case, the maximum percentage of the IDBD capital that may be pledged is 35%, and any shares in excess of such amount will be released from the pledge.

As a result of the description above, on March 31, 2016: (i) Dolphin acquired all shares from IDBD non-controlling shareholders (except for IFISA), (ii) all warrants held by IDBD non-controlling shareholders expired, and (iii) Dolphin made additional contributions to IDBD via subordinated loans pursuant to the description below.

The price paid for each IDBD share based on the holdings as of March 29, 2016 was as follows: (i) NIS 1.25 in cash, thus paying a total amount of NIS 159.6 million (US$ 42.2 million), (ii) NIS 1.20 per share through the subscription and delivery of IDBD Bonds Series 9 (the “IDBD Bonds”) to non-controlling shareholders and warrant holders that did not choose for the independent appraiser alternative, issued by IDBD and paid by Dolphin at its adjusted nominal value, thus injecting NIS 166.5 million (an amount of NIS 134 million worth of IDBD Bonds was issued by IDBD). This payment in bonds includes the Payment of Warrants (as detailed below), and (iii) the commitment to pay NIS 1.05 (subject to adjustments) in cash in case Dolphin indirectly receives an authorization to take over Clal, or else if IDBD sells its holdings in Clal under certain parameters, mainly referring to Clal sale price above 75% of its book value and under certain circumstances pro rata any holdings in Clal sold by IDBD; should the conditions indicated above be met, Dolphin will pay under this concept the approximate amount of NIS 155.8 (around US$ 40.8 million).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisition and dispositions (Continued)

In relation to warrants that were not exercised as of March 28, 2016, each such warrant holder received the difference between NIS 2.45 and the warrant exercise price (“Payment of Warrants”) in IDBD Bonds and is entitled to receive the consideration for Clal; as for those warrants holders who chose the independent appraiser alternative, IDBD bonds for the same value were deposited to the Agreement Administrators up to the payment (the amount will be subject to approval of the competent court, following the valuation made by the appraiser and the right of each such relevant party to file their arguments with the court); such payment will be treated as a deposit that may be used to pay the warrant holders under certain circumstances.

Additionally, Dolphin made a contribution to IDBD in a total amount of NIS 348.5 million, which were contributed in the form of a subordinated loan convertible into shares, thus discharging the commitment to contribute NIS 515 million.

To secure payment by Clal, on March 31, 2016 Dolphin pledged 28% of all IDBD shares as well as the subordinated loan rights of NIS 210 million granted on December 1, 2015. Should new shares be issued by IDBD, they should have to be further pledged until reaching 28% of all IDBD capital.

Following March 31, 2016, IDBD shares ceased to be listed in TASE, there are no more warrants held by general public and IDBD went private. IDBD will continue to file reports with the TASE as a “Debentures Company” pursuant to Israeli law, because some of its bonds are listed.

As a result of the above, upon compliance by Dolphin with the obligations assumed under the amended agreement, all commitments to invest in IDBD by Dolphin have been fully complied with, so that the only obligation still pending is the payment for Clal, provided the conditions herein described are met.

As of March 31, 2016, IRSA’s indirect interest in IDBD was approximately 68%.

c)	Sale of properties in the Operations Center in Argentina

During the nine-month period ended March 31, 2016, the Group has sold certain floors corresponding to Maipú 1300 Building, Intercontinental Plaza, all the floors corresponding to Dique IV and Isla Sirgadero.

All sales mentioned above led to a combined profit for the Group of Ps. 1,068, disclosed within the line “Gain from disposal of investment properties” in the statement of income.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5. Financial risk management and fair value

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 risk), 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 are focused on the unpredictability of financial markets and 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.

Given the diversity of sectors in the economy and industries, different regulatory and legal frameworks and the macroeconomic environment in each of its operations centers, the Group has decentralized the risk management policies geographically based on its two operations centers in order to identify and properly analyze the various types of risks to which each of the subsidiaries is exposed.

Below is a list of the main risk management policies of each of the operations centers:

5.1 Risk management in the operations center in Argentina:

These Financial Statements do not include all the information and disclosures on financial risk management in this operations center; therefore they should be read along with Note 4 to the Annual Financial Statements. There have been no changes in the risk management or risk management policies applied by the Group to the Operations Center in Argentina since year end.

5.2 Risk management in the operations center in Israel:

Given the diversity of sectors in the economy, industries, and risks, IDBD manages its exposure to key financial risks in accordance with a decentralized risk management policy for all its subsidiaries. Both IDBD as holding and each subsidiary are responsible for managing their own financial risks in accordance with agreed global guidelines. The Chief Financial Officers of each entity are responsible for managing the risk management policies and systems, the definition of hedging strategies, insofar as applicable and based on any restriction that may be apply as a result of financial debt, the supervision of its implementation and the answer to such restrictions. The management framework includes policies, procedures, limits and allowed types of derivative financial instruments.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5. Financial risk management and fair value (Continued)

This section provides a description of the principal risks and uncertainties related to the operations center in Israel that could have a material adverse effect on the IDBD’s strategy, performance, results of operations and financial condition. The risks and uncertainties facing the businesses, set out below, do not appear in any particular order of potential materiality or probability of occurrence.

(a)	Market risk management

(i) Foreign currency risk

IDBD operates at an international level and is exposed to exchange rate risks. 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 in which the transaction is conducted, mainly the US dollar.

Real estate, business and/or financial activities of IDBD subsidiaries in the operations center in Israel are developed in the functional currencies of the economies where they operate, in that they IDBD is not significantly exposed to foreign currency risk.

Net financial position exposure to the functional currencies is managed in a decentralized way on a case-by-case basis, by entering into foreign currency derivative instruments and/or by borrowings in foreign currencies, as the case may be, or by other methods, considered adequate by the Management, according to circumstances.

(ii) Risk of fluctuations of the CPI of Israel

IDBD has financial liabilities indexed by the Israeli CPI. As of the balance sheet date, 72.6% of financial debts arising from the center of operations in Israel was adjusted by the Israeli CPI.

Net financial position exposure to the Israeli CPI fluctuations is managed in a decentralized way on a case-by-case basis, by using different derivative financial instruments, as the case may be, or by other methods, considered adequate by the Management, based on the circumstances.

(iii) Interest rate risk

The IDBD’s interest rate risk principally arises from long-term borrowings (See Note 21). Borrowings issued at variable rate expose IDBD to cash flow interest rate risk, partially offset by financial assets at floating interest rate. Borrowings issued at fixed rates expose IDBD to fair value interest rate risk.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5. Financial risk management and fair value (Continued)

IDBD manages the exposure to the interest rate risk on a dynamic basis. Various scenarios are simulated by IDBD, taking into consideration refinancing, renewal of existing positions, alternative financing sources or hedging instruments, maintaining an appropriate mix between fixed and floating rate interest bearing liabilities. Exposure to interest rate risk is managed in a decentralized way and these activities are evaluated regularly by Management to determine that IDBD is not exposed to interest rate movements that could adversely impact its ability to meet its financial obligations and to comply with its borrowings covenants.

As of the date of these Financial Statements, the 22.3% of the Group’s long-term financial borrowings in this operations center are at fixed interest rate, therefore, IDBD is not significantly exposed to the interest rate fluctuation risk.

(iv) Other price risk

IDBD is exposed to equity securities price risk or derivative financial instruments price risk because of investments held in entities that are publicly traded.

As indicated in Note 9, investment in Clal is classified on the statements of financial position at "fair value through profit or loss" and represents the most significant IDBD’s exposure to price risk. IDBD has not used hedging against these risks.

IDBD regularly reviews the prices evolution of these equity securities in order to identify significant movements.

(b)	Credit risk management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to IDBD. Credit risk is managed in a decentralized way. Each entity is responsible for managing and analyzing the credit risk and limits have been established to ensure that IDBD 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 IDBD.

IDBD 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.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5. Financial risk management and fair value (Continued)

The IDBD’s policy is to manage credit exposure to deposits, short-term investments and other financial instruments by maintaining diversified funding sources in various financial institutions. All the institutions that operate with IDBD are well known because of their experience in the market and high credit quality. IDBD 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 statements of financial position.

IDBD’s primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk. IDBD generally enters into derivative transactions with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to each counterparty. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which counterparty’s obligations exceed the obligations that IDBD has with that counterparty. The credit risk associated with derivative financial instruments is representing by the carrying value of the assets positions of these instruments.

The IDBD’s policy is to manage credit exposure to trade and other receivables within defined trading limits. All IDBD’s significant counterparties have internal trading limits.

Trade receivables from investment and development property activities are primarily derived from leases and services from shopping centers, office and other rental properties; receivables from the sale of trading properties and investment properties (primarily undeveloped land and non-retail rental properties). IDBD has a large customer base and is not dependent on any single customer.

There is not a high credit risk concentration in trade receivables from telecommunications and supermarket activity, as the business does not rely on few customers and most of the transactions are paid in cash or credit card.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5. Financial risk management and fair value (Continued)

(c)	Liquidity risk management

The most important risk in the operations center in Israel is liquidity risk, 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 IDBD’s cash flow and 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, IDBD aims to maintain flexibility in funding its existing and prospective debt requirements by maintaining diversified funding sources.

IDBD monitors its current and projected financial position using several key internally generated reports: cash flow forecasts; debt maturity; and interest rate exposure. IDBD 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.

IDBD’s debt and derivative positions are continually reviewed to meet current and expected debt requirements. IDBD 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 IDBD’s needs, by spreading the repayment dates and extending facilities, as appropriate.

Given the current financial debt conditions of the Operations Center in Israel, in particular in the holding company IDBD, the main source of funding has been capital contributions. See Note 21 that includes a description of commitments and restrictions related to loans and renegotiation processes under way.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

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. In addition, and due to the acquisition of IDBD, two responsibility levels have been established for resource allocation and assessment of results of the two operations centers, through executive committees in Argentina and Israel.

Following the control of IDBD, the Group reports its financial and equity performance based on the new segment structure. Comparative information has been modified to reflect the new organization insofar as possible.

Segment information is now reported from two perspectives: geographic presence and products and services. From the geographic point of view, the Group has established two Operations Centers to manage its global interests: Argentina and Israel. Within each operations center, the Group considers separately the various activities being developed, which represent reporting operating segments given the nature of its products, services, operations and risks. Management believes the operating segment clustering in each operations center reflects similar economic characteristics in each region, as well as similar products and services offered, types of clients and regulatory environments.

Below is the segment information prepared as follows:

·	Operations Center in Argentina:

Within this center, the Group operates in the following segments:

o	The “Shopping Centers” segment includes assets and operating results of the activity of shopping centers portfolio principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping centers of the Group.

o	The “Offices and others” segment includes assets and operating results from lease revenues of office and other rental space and other service revenues related to the office activities.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

The “Sales and Development” segment includes assets and operating results of the sales of undeveloped parcels of land and/or trading properties, as the results related with its development and maintenance. Also included in this segment are the results of the sale of real property intended for rent, sales of hotels and other properties included in the international segment.

o	The "Hotels" segment includes the operating results of hotels mainly comprised of room, catering and restaurant revenues.

The “International” segment includes assets and operating profit or loss from business related to associates Condor and Lipstick. Through these associates, the Group derives revenue from hotels and an office building in United States, respectively. Until September 30, 2014, this segment included revenue from a subsidiary that owned the building located at 183 Madison Ave in New York, United States, which was sold on September 29, 2014. Additionally, until October 11, 2015, this international segment only included results from the investment in IDBD carried at fair value.

o	The “Financial operations and others” segment primarily includes the financial activities carried out by BHSA and Tarshop and other residual financial operations.

The CODM periodically reviews the results and certain asset categories and assesses performance of operating segments of this operations center based on a measure of profit or loss of the segment composed by the operating income plus the equity in earnings of associates and joint ventures. 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: Cyrsa S.A., NPSF, Puerto Retiro, Baicom Networks S.A. and Quality are evaluated by the CODM applying proportional consolidation method. Under this method the income/loss generated and assets, are reported in the income statement 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. Moreover, operating results of EHSA joint venture is accounted for under the equity method. Management believes that, in this case, this method provides more adequate information for this type of investment, given its low materiality and considering it is a company without direct trade operations, where the main asset consists of an indirect interest of 25% of LRSA.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

Operating results from Shopping Centers and Offices segments does not include the amounts pertaining to building administration expenses and collective promotion funds (“FPC”, as per its Spanish acronym) and so does it exclude total recovered costs, whether by way of building administration expenses or other concepts included under financial income (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).

Information analyzed in relation to Group revenue and assets:

The assets’ categories examined by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, 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.

Within the operations center in Argentina, most revenue from its operating segments are derived from, and their assets are located in, Argentina, except for earnings of associates included in the “International” segment located in United States.

·	Operations center in Israel:

Within this center, the Group operates in the following segments:

The segment “Commercial Properties” includes mainly assets and operating income derived from business related to the subsidiary PBC. Through PBC, the Group operates rental properties and residential properties in Israel, United States and other parts of the world and carries out commercial projects in Las Vegas, United States.

o	The segment “Supermarkets” includes assets and operating income derived from the business related to the subsidiary Shufersal. Through Shufersal, the Group mainly operates a supermarket chain in Israel.

o	The segment “Agrochemicals” includes income derived from the associate Adama. Adama is a company specialized in agrochemicals, particularly for the production of crops.

The segment “Telecommunications” includes assets and operating income derived from the business related to the subsidiary Cellcom. Cellcom is a provider of telecommunication services and its main activities include the provision of mobile phone services, fixed line phone services, data and Internet, among others.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

The segment “Insurance” includes the business related to Clal. This company is one of the most important insurance groups in Israel, and is mainly engaged in pension and social security insurance, among others. As indicated in Note 9, 51% of the controlling shares of Clal are held in a trust following the instructions of the Israel Securities Commission in order to comply with the sale of the controlling shares of Clal; as a result, the Company is not fully consolidated on a line-by-line basis but rather in a single line as a financial instrument at fair value, as required by the IFRS under the current circumstances where no control is exercised.

o	The "Others" segment includes the assets and income derived from other diverse business activities, such as technological developments, tourism, gas and oil assets, electronics, and others.

As indicated under Note 2, the Group decided to consolidate income derived from its operations center in Israel with a three month lag, as adjusted for the effects of significant transactions; hence, operating results of IDBD for the period extending from October 11, 2015 (acquisition date) through December 31, 2015 are included under interim comprehensive income of the Group for the nine-month period ended March 31, 2016.

Furthermore, comparative information has not been modified for as of that date the Group did not exercise control over IDBD. The assessment of this investment was part of the international segment of the operations center in Argentina.

Goods and services exchanged between segments are calculated on the basis of market prices. Intercompany transactions between segments, if any, are eliminated.

As to those business segments involving the operations center in Argentina where assets are reported under the proportional consolidation method, each reported asset includes the proportional share of the Group in the same class of assets of the associates and/or joint ventures. Only as an example, the amount of investment properties reported includes (i) the balance of investment properties as stated in the statement of financial position, plus (ii) the Group’s share in the balances of investment properties of joint ventures.

Within the operations center in Israel, most revenue from its operating segments are derived from, and their assets are located in, Israel, except for part of earnings from the segment Commercial Properties, from activities outside Israel, mainly in United States.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

Below is a summarized analysis of the lines of business of the Group for the nine-month periods ended March 31, 2016 and 2015:

	March 31, 2016									March 31, 2015
	Operations Center Argentina			Operations Center Israel			Total			Operations Center Argentina
Revenues from sales, rents and services		2,382			16,486			18,868			1,886
Costs		(588	)		(12,919	)		(13,507	)		(464	)
Gross profit		1,794			3,567			5,361			1,422
Gain from disposal of investment properties		1,068			-			1,068			801
General and administrative expenses		(392	)		(420	)		(812	)		(264	)
Selling expenses		(188	)		(2,352	)		(2,540	)		(138	)
Other operating results, net		110			(19	)		91			63
Profit from operations		2,392			776			3,168			1,884
Share of loss of associates and joint ventures		(606	)		(86	)		(692	)		(854	)
Segment Profit		1,786			690			2,476			1,030

Reportable assets		4,938			133,252			138,190			6,378
Reportable liabilities		-			(97,161	)		(97,161	)		-

Operating assets		4,938			36,091			41,029			6,378

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

Below is a summarized analysis of the lines of business of Group’s operations center in Argentina for the period ended March 31, 2016:

	March 31, 2016
	Operations center in Argentina
	Shopping Center			Offices and others			Sales and developments			Hotels			International			Financial operations and others			Total
Revenues from sales, rents and services		1,734			235			6			406			-			1			2,382
Costs		(277	)		(34	)		(15	)		(262	)		-			-			(588	)
Gross Profit / (Loss)		1,457			201			(9	)		144			-			1			1,794
Gain from disposal of investment properties		-			-			1,068			-			-			-			1,068
General and administrative expenses		(122	)		(38	)		(92	)		(75	)		(65	)		-			(392	)
Selling expenses		(96	)		(27	)		(15	)		(49	)		-			(1	)		(188	)
Other operating results, net		(24	)		(3	)		(8	)		(1	)		143			3			110
Profit from operations		1,215			133			944			19			78			3			2,392
Share of profit / (loss) of associates and joint ventures		-			10			6			-			(795	)		173			(606	)
Segment Profit / (Loss)		1,215			143			950			19			(717	)		176			1,786

Investment properties		2,339			862			322			-			-			-			3,523
Property, plant and equipment		45			20			1			158			2			-			226
Trading properties		-			-			188			-			-			-			188
Goodwill		7			4			-			-			-			-			11
Right to receive future units under barter agreements		-			-			90			-			-			-			90
Inventories		19			-			-			8			-			-			27
Investments in associates and joint ventures		-			26			62			-			(809	)		1,594			873
Operating assets		2,410			912			663			166			(807	)		1,594			4,938

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Segment information (Continued)

Below is a summarized analysis of the lines of business of Group’s operations center in Argentina for the period ended March 31, 2015:

	March 31, 2015
	Operations center in Argentina
	Shopping Center			Offices and other			Sales and developments			Hotels			International			Financial operations and others			Total
Revenues from sales, rents and services		1,282			250			11			317			26			-			1,886
Costs		(199	)		(33	)		(14	)		(211	)		(7	)		-			(464	)
Gross Profit / (Loss)		1,083			217			(3	)		106			19			-			1,422
Gain from disposal of investment property		-			-			801			-			-			-			801
General and administrative expenses		(91	)		(40	)		(35	)		(57	)		(41	)		-			(264	)
Selling expenses		(78	)		(13	)		(7	)		(40	)		-			-			(138	)
Other operating results, net		(20	)		(113	)		14			(3	)		187			(2	)		63
Profit / (Loss) from operations		894			51			770			6			165			(2	)		1,884
Share of profit / (loss) of associates and joint ventures		-			3			2			1			(973	)		113			(854	)
Segment Profit / (Loss)		894			54			772			7			(808	)		111			1,030

Investment properties		2,347			917			339			-			-			-			3,603
Property, plant and equipment		38			25			1			161			1			-			226
Trading properties		-			-			134			-			-			-			134
Goodwill		1			9			-			-			-			-			10
Right to receive future units under barter agreements		9			5			76			-			-			-			90
Inventories		14			-			1			7			-			-			22
Investments in associates and joint ventures		-			26			47			-			859			1,361			2,293
Operating assets		2,409			982			598			168			860			1,361			6,378

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Segment information (Continued)

Below is a summarized analysis of the lines of business of Group’s operations center in Israel for the period ended March 31, 2016:

	March 31, 2016
	Operations center in Israel
	Commercial properties			Supermarkets			Agrochemicals			Telecommunications			Insurances		Others			Total
Revenues from sales, rents and services		955			10,797			-			4,128			-		606			16,486
Costs		(575	)		(8,008	)		-			(3,620	)		-		(716	)		(12,919	)
Gross profit / (loss)		380			2,789			-			508			-		(110	)		3,567
Gain from disposal of investment properties		-			-			-			-			-		-			-
General and administrative expenses		(67	)		(119	)		-			(230	)		-		(4	)		(420	)
Selling expenses		(15	)		(1,699	)		-			(597	)		-		(41	)		(2,352	)
Other operating results, net		-			-			-			(4	)		-		(15	)		(19	)
Profit / (Loss) from operations		298			971			-			(323	)		-		(170	)		776
Share of (loss) / profit of associates and joint ventures		(85	)		70			(130	)		-			-		59			(86	)
Segment Profit / (Loss)		213			1,041			(130	)		(323	)		-		(111	)		690

Operating assets		59,231			28,361			9,467			24,824			5,146		6,223			133,252
Operating liabilities		(49,408	)		(24,021	)		-			(20,894	)		-		(2,838	)		(97,161	)
Operating Assets, net		9,823			4,340			9,467			3,930			5,146		3,385			36,091

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

The following tables present a reconciliation between the total results of operations as per segment information and the results of operations as per the statements of income. The adjustments relate to the presentation of the results of operations of joint ventures accounted for under the equity method under IFRS and the non-elimination of the inter-segment transactions. Additionally, in the last quarter of the fiscal year ended June 30, 2015, the Group has changed the presentation of the Statements of income which is reviewed by the CODM for purposes of assigning resources and assessing performance for the fiscal year for a better alignment with the current business vision and the metrics used to such end. These amendments affected the shopping centers and office segments. The information examined by the CODM does not include the amounts pertaining to building administration expenses and collective promotion funds from the Statements of income, and so does it exclude total recovered costs, as they are not analyzed to assess the operating performance of the segment. The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and collective promotion funds and recoverable expenses). These costs and income are presented now for reconciliation of all segments and their respective consolidating operating income.

	March 31, 2016
	Total as per segment information			Adjustment for share of profit / (loss) of joint ventures			Expenses and collective promotion funds			Adjustment to income for elimination of inter-segment transactions			Total as per Statement of income
Revenues from sales, rents and services		18,868			(20	)		888			(5	)		19,731
Costs		(13,507	)		12			(901	)		4			(14,392	)
Gross profit / (loss)		5,361			(8	)		(13	)		(1	)		5,339
Gain from disposal of investment properties		1,068			-			-			-			1,068
General and administrative expenses		(812	)		1			-			6			(805	)
Selling expenses		(2,540	)		1			-			-			(2,539	)
Other operating results, net		91			(3	)		-			(5	)		83
Profit / (loss) from operations		3,168			(9	)		(13	)		-			3,146
Share of (loss) / profit of associates and joint ventures		(692	)		6			-			-			(686	)
Net segment profit / (loss) before financing and taxation		2,476			(3	)		(13	)		-			2,460

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Segment information (Continued)

	March 31, 2015
	Total as per segment information			Adjustment for share of profit / (loss) of joint ventures			Expenses and collective promotion funds			Adjustment for elimination of inter-segment transactions			Total as per Statement of income
Revenues from sales, rents and services		1,886			(22	)		649			(4	)		2,509
Costs		(464	)		11			(659	)		3			(1,109	)
Gross profit / (loss)		1,422			(11	)		(10	)		(1	)		1,400
Gain from disposal of investment properties		801			-			-			-			801
General and administrative expenses		(264	)		-			-			2			(262	)
Selling expenses		(138	)		2			-			-			(136	)
Other operating results, net		63			1			-			(1	)		63
Profit / (loss) from operations		1,884			(8	)		(10	)		-			1,866
Share of (loss) / profit of associates		(854	)		12			-			-			(842	)
Net segment profit / (loss) before financing and taxation		1,030			4			(10	)		-			1,024

The following tables present a reconciliation between total segment assets and liabilities as per segment information of operations centers in Argentina and Israel and total assets as per the statement of financial position.

	March 31, 2016								March 31, 2015
	Operations center in Argentina			Operations center in Israel		Total			Operations center in Argentina
Total assets per segment based on segment information		4,938			133,252		138,190			6,378
Total assets per segment based on segment information		4,938			133,252		138,190			6,378
Less:
Proportionate share in assets per segment of joint ventures (2)		(119	)		-		(119	)		(98	)
Plus:
Investment in joint ventures (1)		195			-		195			169
Other non-reportable assets		15,838			2,696		18,534			2,813
Total assets per segment as per statement of financial position		20,852			135,948		156,800			9,262

(1)	Represents the proportionate equity value of joint ventures that were proportionately consolidated for information by segment purposes.

(2)	Below is a detail of the proportionate share in assets by segment of joint ventures of the operations center in Argentina, included in the information reported by segment:

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Segment information (Continued)

	March 31, 2016		March 31, 2015
Investment properties		111		88
Property, plant and equipment		1		1
Trading properties		2		3
Goodwill		5		6
Total proportionate share in assets per segment of joint ventures		119		98

	March 31, 2016									March 31, 2015
	Operations Center Argentina			Operations Center Israel			Total			Operations Center Argentina
Total liabilities per segment based on segment information		-			(97,161	)		(97,161	)		-
Plus:
Other non-reportable liabilities		(15,499	)		(36,579	)		(52,078	)		(7,213	)
Total liabilities per segment as per statement of financial position		(15,499	)		(133,740	)		(149,239	)		(7,213	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

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 non-controlling interests material to the Group. Significant non-controlling interests have changed following the business combination. As of March 31, 2016 and June 30, 2015, significant non-controlling interests pertain to the operations center in Israel and the operations center in Argentina, respectively.

	At March 31, 2016															Period ended March 31, 2016
	Non-controlling shareholders interest %			Current Assets		Non-current Assets		Current Liabilities		Non- Current Liabilities		Net assets		Book Values of Non- controlling interests		Revenue		Net income equity			Other comprehensive loss			Total comprehensive (loss / income)			Profit (Loss) attributable to non-controlling interest			Other comprehensive loss attributable to non-controlling interest			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

Elron (2)		49.68	%		2,305		974		98		31		3,150		2,223		89		(37	)		(19	)		(56	)		(18	)		(10	)		(96	)		4			7			(85	)		-
PBC (2)		23.55	%		12,183		46,796		9,776		39,565		9,638		6,701		1,150		267			(48	)		219			173			(21	)		657			26			(768	)		(85	)		-
Cellcom (2)		58.23	%		9,725		15,098		7,467		13,427		3,929		2,667		3,913		145			(4	)		141			100			(4	)		783			30			(26	)		787			(4	)
Shufersal (2)		47.05	%		11,459		16,903		12,938		11,083		4,341		2,599		10,890		312			-			312			193			-			41			(1,265	)		(364	)		(1,588	)		-
															14,190													448			(35	)														(4	)

	At June 30, 2015															Period ended March 31, 2015
	Non-controlling shareholders interest %			Current Assets		Non-current Assets		Current Liabilities		Non- Current Liabilities		Net assets		Book Values of non-controlling interest		Revenue		Net income equity			Other comprehensive loss			Total comprehensive loss			Profit (Loss) attributable to non-controlling interest			Other comprehensive (loss) attributable to non-controlling interest		Cash of operating activities		Cash of investment activities			Cash of financial activities			Net Increase (decrease) in cash and cash equivalents			Dividends distribution to non-controlling shareholders
PAMSA (3)		20.00	%		488		518		310		21		675		129		251		111			-			111			22			-		77		(108	)		6			(25	)		-
DFL (1)		8.43	%		330		1,729		299		264		1,496		13		-		(974	)		14			(960	)		(100	)		-		-		-			-			-			-
Rigby (1)		25.50	%		19		-		-		-		19		5		28		398			(196	)		202			109			-		-		1,518			(1,517	)		1			-
RES (4)		33.17	%		30		356		11		14		361		120		N/A		N/A			N/A			N/A			N/A			N/A		N/A		N/A			N/A			N/A			N/A
															267													31			-													-

N/A: Not applicable. Not considered a significant non-controlling interest.

(1)	Corresponds to the Group's indirect interest. The percentage of the non-controlling interest represents the equity interest which is not owned by Tyrus.

(2)	Corresponds to the Group's indirect interest. The percentage of the non-controlling interest represents the equity interest which is not owned by DIC.

(3)	Corresponds to the Group's indirect interest. The percentage of the non-controlling interest represents the equity interest which is not owned by IRSA CP.

(4)	Corresponds to the Group's indirect interest. The percentage of the non-controlling interest represents the equity interest which is not owned by Efanur.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7.	Information about principal subsidiaries (Continued)

Cellcom is the largest provider of mobile telecommunications in Israel; it offers its services approximately to 2.9 million subscribers with a wide range of services. By the end of 2014, the Company launched television services over the Internet. Under Israeli laws, in order for a shareholder to be able to exert control over a Telecommunications Company, such shareholder must first secure the approval of the Ministry of Communications of Israel. Such approval, consequence of change in control of IDBD, has not yet been obtained.

In November 2015, Cellcom entered into an agreement, subject to approval, with Golan Telecom Ltd. ("Golan") and its shareholders to acquire all of Golan’s shares for a price of NIS 1,170 million, subject to certain adjustments. To complete the transaction, Cellcom intends to raise funds by way of a public offering and DIC expects to subscribe shares for up to NIS 100 million at that public offering to maintain its current equity interests.

During April 2016, the Anti-trust Commission of Israel and the Ministry of Communications notified Cellcom their objection to the transaction described above but failed to state the grounds for such objection.

8.	Investments in associates and joint ventures

As of June 30, 2015, the Group's associates were New Lipstick, BHSA, IDBD, Tarshop, Manibil S.A., Lipstick and BACS and the Groups’ joint ventures were Cyrsa S.A., Puerto Retiro, Baicom Networks S.A., Quality, NPSF, Entretenimiento Universal S.A. and EHSA. The shares of these investments are not publicly traded except for BHSA and IDBD, at such date.

Due to IDBD’s consolidation, Adama, Mehadrin Ltd., PBEL Real Estate Ltd., Gav-Yam Properties in Lod, were included as associates, among others.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Investments in associates and joint ventures (Continued)

Changes in the Group’s investments in associates and joint ventures for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	March 31, 2016									June 30, 2015
	Operations center in Argentina			Operations center in Israel			Total			Operations center in Argentina
Beginning of the period / year		2,810			-			2,810			2,084
Acquisition of equity interest (Note 4)		-			134			134			1,255
Decrease for the taking over (Note 4)		(1,047	)		-			(1,047	)		-
Increase due to deconsolidation		-			115			115			-
Balance incorporated by business combination (Note 4)		-			9,043			9,043			-
Capital contributions		47			104			151			39
Share of loss		(36	)		(156	)		(192	)		(21	)
Currency translation adjustment		(152	)		5,285			5,133			87
Cash dividends		(11	)		(593	)		(604	)		(47	)
Sale of equity interest (Note 4)		(5	)		-			(5	)		(34	)
Reclassification to financial instruments (Note 4)		-			-			-			(30	)
Capital reduction (ii)		-			-			-			(111	)
(Loss) / gain from fair value changes		(564	)		70			(494	)		(412	)
End of the period / year (i)		1,042			14,002			15,044			2,810

(i)	Includes Ps. (814) and Ps. (363) reflecting interests in companies with negative equity as of March 31, 2016 and June 30, 2015, respectively, which are disclosed in “Provisions” (Note 20).

(ii)During the year ended June 30, 2015 Cyrsa S.A. distributed dividends due to capital reduction in the amount of Ps. 111.

Restrictions, commitments and other matters in respect of investments in Operations Center Argentina

Legal reserve applicable to the Argentine Companies

According to the Argentine laws, 5% of the profit of the year is separated to constitute legal reserve until they reach legal capped amounts (20% of total capital). This legal reserve is not available for the dividend distribution and can only be released to absorb losses. The Group’s investments under these laws have not reached the legal capped amounts.

There are no contingent liabilities relating to the Group’s interest in associates and joint ventures.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Investments in associates and joint ventures (Continued)

Quality

In March 2011, Quality purchased an industrial plant located in San Martín, Province of Buenos Aires. The facilities have the necessary features and scales for multiple uses.

On January 20, 2015, Quality entered into an Urbanization Agreement with the Municipality of San Martin which contemplates a monetary compensation to the City Council totaling Ps. 40, payable in two installments of Ps. 20 each. The first one has been paid out, while the second – adjustable based upon the index of the Argentine Chamber of Construction – will be paid within 60 days following the registration of the land subdivision plan with the Office of Geodesy of the Buenos Aires province, a milestone that has not yet taken place.

On January 5, 2016 the Official Bulletin of the Province of Buenos Aires published the Order of Provincial Ratification (of the Municipal Ordinance), whereby the urban parameters originally requested entered into full force, thus concluding the legislative enactment process.

EHSA

During November 2012, IRSA CP acquired shares of common stock, representing 50% of Entertainment Holdings S.A. (“EHSA”)’s capital stock and votes and as a consequence IRSA CP holds a jointly indirect interest in LRSA of 25% which operates the Exhibition Center “Predio Ferial de Buenos Aires”.

In connection with the Exhibition Center, in December 2012 the Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which approved the sale of the Exhibition Center to the SRA; the effect of this new order was to revoke the sale transaction.

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 was lifted.

Although several resolutions have been issued since that point, to the date, we are not aware of any judicial measure petitioned by the owner of the Plot of Land and/or the National Government, or the corresponding appeals or rulings, may have affected the actual use of the Plot of Land.

Puerto Retiro

On April 18, 2000, Puerto Retiro was notified of a filing made by the National Government, through the Ministry of Defense, to extend the petition in bankruptcy of Indarsa to Puerto Retiro. At the request of plaintiff, the bankruptcy court for the Buenos Aires District issued an order restraining the ability of Puerto Retiro to sell or dispose in any manner the land. Indarsa had acquired 90% of the capital stock of Tandanor to a formerly estate owned company in 1991.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Investments in associates and joint ventures (Continued)

Indarsa did not comply with the payment of the outstanding price for the acquisition of the stock of Tandanor, and therefore the Ministry of Defense requested the bankruptcy of Indarsa, pursuing to extend the bankruptcy to Puerto Retiro.

In addition, Tandanor filed a civil action against Puerto Retiro and other accused parties in the criminal case for violation of section 174 subsection 5, under section 173 subsection 7 of Criminal Code. The claim expects that upon invalidation of executive order that approved the bid of Dársena Norte plot of land, Tandanor be reimbursed any other sum of money that it claims to have lost due to the alleged fraudulent purchase-sale transaction of the real property disputed in the case.

The Management and legal advisors of Puerto Retiro estimate that there are legal and technical issues to consider that the request for bankruptcy will be denied by the court as well as the fraud action. However, given the current status of the case, we cannot predict its outcome.

Tarshop

The BCRA modified certain aspects of the regulatory framework of the activities carried out by Tarshop. Based on these changes, our associate is going through a business reformulation process. In this context, the BHSA and IRSA CP approved a gradual capitalization plan to be carried out by shareholders pro rata their holdings, under which certain contributions were already made for a total amount of Ps. 215.

New Lipstick

New Lipstick has a pledge over the shares of its operating subsidiary Metropolitan. Metropolitan owns the building known as Lipstick Building in Manhattan.

Restrictions, commitments and other matters in respect of investments of the operations center in Israel

Adama

Adama is specialized in the chemical industry, mainly, in the agrochemical industry. In this framework, Adama is engaged in developing, manufacturing and selling crop protection products, while also operating in other areas based on its basic capacities (the agricultural and chemical sectors), but to a immaterial extent.

In 2011, IDBD sold 60% of Adama’s shares to China National Agrochemical Corporation (“ChemChina”) and was also granted a non-recourse loan in the aggregate amount of US$ 960, which is secured by the 40% of the shares held by IDBD as of March 31, 2016. The loan is disclosed in Note 21 under Non-current loans.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Investments in associates and joint ventures (Continued)

IDBD through DIC reported a potential transaction whereby Koor and ChemChina would transfer their entire interests (40% and 60%, respectively) in Adama to Hubei Sanonda Co. Ltd., a Chinese public company whose shares are listed in the Shenzhen Stock Exchange, China. Sanonda’s shares would be delivered as consideration for the transaction in such amount that, following the transaction, Adama would become a wholly-owned subsidiary of Sanonda and Koor would be a shareholder of Sanonda. Pursuant to Chinese laws, Sanonda’s shares owned by Koor would be subject to a lock-up period of 3 years.

In February 2016, an agreement was executed to sell Class B shares of Sanonda to Huebei Sanonda Co. and to suspend trading of Sanonda shares (until August 4, 2016).

9.	Financial assets and other assets held for sale

The composition of financial assets and other assets held for sale as of March 31, 2016 and June 30, 2015 is as follows:

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Non-current
Clal		-		3,745		3,745		-
Non-current financial asset held for sale		-		3,745		3,745		-

Current
Clal		-		1,401		1,401		-
Others		-		219		219		-
Current financial assets and other assets held for sale		-		1,620		1,620		-
Total financial assets and other assets held for sale		-		5,365		5,365		-

Clal is a holding company that mainly operates in the insurance and pension markets and in segments of pension funds. The company holds assets and other businesses (such as insurance agencies) and is one of the largest insurance groups in Israel. Clal mainly develops its activities in three operating segments: long-term savings, general insurance and health insurance.

Given that IDBD failed to meet the requirements set forth by the Capital Markets, Insurance and Savings Commission, which is dependent on the Ministry of Finance of Israel, to have control over an insurance company, on August 21, 2013, such commission required that IDBD grant an irrevocable power of attorney to Mr. Moshe Tery ("the Administrator") by 51% of the shareholding capital and vote interests in Clal, thus transferring control over that investee.

On December 30, 2014, the Insurance Commission sent an additional letter setting a term by which IDBD’s control over and equity interests in Clal were to be sold and giving directions as to the Administrator’s continuity in office, among other aspects.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

9.	Financial assets and other assets held for sale (Continued)

The sale arrangement outlined in the letter involves IDBD’s and the Administrator’s interests in the sale process under different options and timeframes. As of March 31, 2016, the current sale arrangement involved the sale of the interest in the stock exchange or in over-the-counter trades, as per the following detail and by the following dates:

a.	IDBD will have to sell at least 5% of its equity interest in Clal beginning on May 7, 2016.

b.	During each of the subsequent four-month periods, IDBD will have to sell at least an additional 5% of its equity interest in Clal.

c.	If IDBD sells more than 5% of its equity interest in Clal in any given four-month period, the percentage in excess of the required 5% will be offset against the percentage required in the following period.

IDBD’s failure to fulfill its obligation in the manner described in the above paragraph will entitle the Administrator to act upon the specified arrangement in lieu of IDBD, pursuant to all powers that had been vested under the representations of the trust letter. The consideration for the sale will be transferred to IDBD, with the expenses incurred in the sale process to be solely borne by IDBD.

During February 2016, bond holders and minority shareholders filed a complaint against the Insurance Commission and the Administrator so that the order by the Administrator to sell the shares in the market is revoked, for this would cause irreversible damage to the company and its bond holders. A hearing was agreed to be held between the parties in May 2016.

On March 31, 2016 the holding of IDBD to Clal was of 55%, and as a result of the circumstances mentioned above, IDBD has accounted for it as a financial asset held for sale. Valuation as of March 31, 2016 amounts to Ps. 5,146, and a loss of Ps. 1,112 has been recorded reflecting the fall in the share price.

Claims against Clal

On the aggregate, all legal actions brought against Clal’s investees out of the ordinary course of business amount to approximately NIS 17,625 (or Ps. 68,976 at the exchange rate of 3.91354).

The Group set up a reserve for all legal actions brought against Clal’s investees out of the ordinary course of business in the amount of approximately NIS 96 (or Ps. 375.7 at the exchange rate of 3.91354). Most legal actions are related to consumer claims and derivative actions.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Investment properties

Changes in the Group’s investment properties for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Operations Center Argentina												Operations Center Israel
	Rental properties (II)			Undeveloped parcel of lands			Properties under development			Subtotal			Rental properties			Undeveloped parcel of lands		Properties under development			Subtotal			Total
At July 1st, 2014:
Costs		4,158			368			363			4,889			-			-		-			-			4,889
Accumulated depreciation		(1,619	)		-			-			(1,619	)		-			-		-			-			(1,619	)
Residual value		2,539			368			363			3,270			-			-		-			-			3,270

Year ended June 30, 2015
Opening residual value		2,539			368			363			3,270			-			-		-			-			3,270
Additions		280			2			187			469			-			-		-			-			469
Transfers		513			25			(539	)		(1	)		-			-		-			-			(1	)
Transfers to property, plant and equipment		10			-			(9	)		1			-			-		-			-			1
Transfers to trading property		(3	)		-			-			(3	)		-			-		-			-			(3	)
Disposals		(94	)		(3	)		(2	)		(99	)		-			-		-			-			(99	)
Depreciation (i)		(147	)		-			-			(147	)		-			-		-			-			(147	)
Residual value at the year end		3,098			392			-			3,490			-			-		-			-			3,490
At June 30, 2015:
Costs		4,865			392			-			5,257			-			-		-			-			5,257
Accumulated depreciation		(1,767	)		-			-			(1,767	)		-			-		-			-			(1,767	)
Residual value		3,098			392			-			3,490			-			-		-			-			3,490

Period ended March 31, 2016:
Opening residual value		3,098			392			-			3,490			-			-		-			-			3,490
Balance incorporated by business combination (see Note 4)		-			-			-			-			24,935			1,260		2,531			28,726			28,726
Additions		138			3			-			141			111			-		657			768			909
Transfers		-			(97	)		97			-			1,213			-		(1,213	)		-			-
Transfers from / to property, plant and equipment		5			-			-			5			(11	)		-		-			(11	)		(6	)
Transfers to trading properties		-			(16	)		-			(16	)		-			-		-			-			(16	)
Transfers to assets held for sale		-			-			-			-			(208	)		-		-			(208	)		(208	)
Disposals		(77	)		(3	)		-			(80	)		(78	)		-		-			(78	)		(158	)
Currency translation adjustment		-			-			-			-			14,826			751		1,470			17,047			17,047
Depreciation (i)		(128	)		-			-			(128	)		(252	)		-		-			(252	)		(380	)
Closing residual value		3,036			279			97			3,412			40,536			2,011		3,445			45,992			49,404
At March 31, 2016:
Costs		4,931			279			97			5,307			40,788			2,011		3,445			46,244			51,551
Accumulated depreciation		(1,895	)		-			-			(1,895	)		(252	)		-		-			(252	)		(2,147	)
Residual value		3,036			279			97			3,412			40,536			2,011		3,445			45,992			49,404

(i)	Depreciation charges of investment properties were included in “Costs”, “General and administrative expenses” and "Selling expenses" in the statement of income (Note 26).

(ii)

Arcos del Gourmet, concession status: The National State issued Executive Order 1723/2012 whereby several plots of land located in prior rail yards of Palermo, Liniers and Caballito rail stations ceased to be used for rail purposes, in order to be used for development of integral urbanization projects. Arcos del Gourmet S.A. has filed the relevant administrative remedies (appeal) and has also filed a judicial action requesting that the revocation of such concession be overruled and has paralelly brought an action for determination of lease rental payments as a result of which it is making judicial deposits of the monthly rental for the premises.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10. Investment properties (Continued)

The following amounts have been recognized in the statement of income:

	March 31, 2016									March 31, 2015
	Operations center in Argentina			Operations center in Israel			Total			Operations center in Argentina
Sales, rental and services income		2,837			796			3,633			2,186
Direct operating expenses		(1,200	)		(575	)		(1,775	)		(889	)
Gain from disposal of investment property		1,068			-			1,068			801

Borrowing costs incurred during the nine-month period ended March 31, 2016 of Ps. 13, were capitalized at the rate of the borrowings between 3% and 3.65%. Those costs correspond to PBC and Shufersal pertaining to the operations center in Israel. Borrowing costs as of March 31, 2015 of Ps. 13, were capitalized at the rate of the IRSA CP's general borrowings which amounted to 15%. Those costs correspond to Alto Comahue pertaining to the operations center in Argentina. Capitalization of financial costs has ceased since the completion of the shopping mall, therefore, financial costs have not been capitalized as of March 31, 2016.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

11.	Property, plant and equipment

Changes in the Group’s property, plant and equipment for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Operations Center Argentina									Operations Center Israel
	Buildings and facilities			Others (i)			Subtotal			Buildings and facilities			Communication networks			Machinery and equipment			Others			Subtotal			Total
At July 1st, 2014:
Costs		466			115			581			-			-			-			-			-			581
Accumulated depreciation		(270	)		(92	)		(362	)		-			-			-			-			-			(362	)
Residual value		196			23			219			-			-			-			-			-			219

Year ended June 30, 2015
Opening residual value		196			23			219			-			-			-			-			-			219
Additions		21			29			50			-			-			-			-			-			50
Transfers of investment properties		(10	)		9			(1	)		-			-			-			-			-			(1	)
Depreciation (II)		(14	)		(11	)		(25	)		-			-			-			-			-			(25	)
Residual value at the year end		193			50			243			-			-			-			-			-			243
At June 30, 2015:
Costs		477			153			630			-			-			-			-			-			630
Accumulated depreciation		(284	)		(103	)		(387	)		-			-			-			-			-			(387	)
Residual value		193			50			243			-			-			-			-			-			243

Period ended March 31, 2016
Opening residual value		193			50			243			-			-			-			-			-			243
Assets incorporated by business combination (Note 4)		-			-			-			4,318			3,759			1,697			3,293			13,067			13,067
Additions		4			9			13			145			223			159			208			735			748
Currency translation adjustment		-			1			1			2,579			2,237			1,012			1,956			7,784			7,785
Transfers to / from investment properties		(5	)		-			(5	)		11			-			-			-			11			6
Depreciation (ii)		(15	)		(12	)		(27	)		(52	)		(293	)		(141	)		(182	)		(668	)		(695	)
Closing residual value		177			48			225			7,001			5,926			2,727			5,275			20,929			21,154
At March 31, 2016:
Costs		476			163			639			7,053			6,219			2,868			5,457			21,597			22,236
Accumulated depreciation		(299	)		(115	)		(414	)		(52	)		(293	)		(141	)		(182	)		(668	)		(1,082	)
Residual value		177			48			225			7,001			5,926			2,727			5,275			20,929			21,154

(i)	Include furniture and fixtures, machinery and equipment and vehicles.

(ii)	Depreciation charges of property, plant and equipment were included in “Cost”, “General and administrative expenses” and "Selling expenses” in the statement of income (Note 26).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

12.	Trading properties

Changes in the Group’s trading properties for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Operations Center Argentina											Operations Center Israel
	Completed properties			Properties under development			Undeveloped sites		Subtotal			Completed properties		Properties under development		Undeveloped sites		Subtotal		Total
At July 1st, 2014		6			119			10		135			-		-		-		-		135
Additions		-			1			-		1			-		-		-		-		1
Currency translation adjustment		-			(6	)		-		(6	)		-		-		-		-		(6	)
Transfers of investment properties		-			-			3		3			-		-		-		-		3
Disposals		(2	)		-			-		(2	)		-		-		-		-		(2	)
At June 30, 2015		4			114			13		131			-		-		-		-		131
Assets incorporated by business combination (see Note 4)		-			-			-					98		924		1,542		2,564		2,564
Currency translation adjustment		-			40			-		40			59		551		920		1,530		1,570
Transfers of investment properties		-			16			-		16			-		-		-		-		16
Disposals		(1	)		-			-		(1	)		-		-		-		-		(1	)
At March 31, 2016		3			170			13		186			157		1,475		2,462		4,094		4,280

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Non-current		176		1,190		1,366		128
Current		10		2,904		2,914		3
Total		186		4,094		4,280		131

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

13.

Intangible assets

Changes in the Group’s intangible assets for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Operations Center Argentina													Operations Center Israel
	Goodwill		Rights of use (ii)			Right to receive future units under barter agreements (iii)		Others (iv)			Subtotal			Goodwill not yet allocated		Licenses			Information systems and software			Others			Subtotal			Total
At July 1st, 2014
Costs		6		21			85		30			142			-		-			-			-			-			142
Accumulated depreciation		-		-			-		(18	)		(18	)		-		-			-			-			-			(18	)
Residual value		6		21			85		12			124			-		-			-			-			-			124
Year ended June 30, 2015
Opening residual value		6		21			85		12			124			-		-			-			-			-			124
Additions		-		-			5		1			6			-		-			-			-			-			6
Depreciation (i)		-		(1	)		-		(2	)		(3	)		-		-			-			-			-			(3	)
Residual value at the year-end		6		20			90		11			127			-		-			-			-			-			127
At June 30, 2015
Costs		6		21			90		31			148			-		-			-			-			-			148
Accumulated depreciation		-		(1	)		-		(20	)		(21	)		-		-			-			-			-			(21	)
Residual value		6		20			90		11			127			-		-			-			-			-			127
Period ended March 31, 2016
Opening residual value		6		20			90		11			127			-		-			-			-			-			127
Additions		-		-			-		1			1			-		-			130			108			238			239
Disposals		-		-			-		-			-			-		-			(4	)		-			(4	)		(4	)
Assets incorporated by business combination (see Note 4)		-		-			-		-			-			2,706		510			635			142			3,993			3,993
Currency translation adjustment		-		-			-		-			-			1,594		303			380			86			2,363			2,363
Depreciation (i)		-		(1	)		-		(2	)		(3	)		-		(26	)		(96	)		(4	)		(126	)		(129	)
Residual value at period-end		6		19			90		10			125			4,300		787			1,045			332			6,464			6,589
Period ended March 31, 2016
Costs		6		21			90		32			149			4,300		813			1,141			336			6,590			6,739
Accumulated depreciation		-		(2	)		-		(22	)		(24	)		-		(26	)		(96	)		(4	)		(126	)		(150	)
Residual value		6		19			90		10			125			4,300		787			1,045			332			6,464			6,589

(i)	Amortization charges of intangible assets are included in "Costs", “General and administrative expenses” and "Selling expenses" in the statement of income (Note 26). There are no impairment charges for any of the years / period presented.

(ii)	Correspond to Distrito Arcos Depreciation began in January, 2015, upon delivery of the Shopping Center.

(iii)

Correspond to receivables in kind representing the right to receive residential apartments in the future by way of barter agreements.

(iv)	Includes computer software and others.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Financial instruments by category

Determination of fair values

The fair value hierarchy adopted by the Group is described in Note 15 to the Annual Financial Statements.

The following tables present the Group’s financial assets and financial liabilities that are measured at fair value as of March 31, 2016 and June 30, 2015 and their allocation to the fair value hierarchy:

	March 31, 2016
	Level 1		Level 2		Level 3		Total
Assets
Operations Center Argentina
Financial assets at fair value through profit or loss:
- Public companies securities		120		-		604		724
- Private companies securities		166		-		-		166
- Mutual funds		75		-		-		75
- Bonds		404		-		-		404
Derivative financial instruments:
- Foreign-currency future contracts		-		35		-		35
Cash and cash equivalents:
- Mutual funds		12		-		-		12
Total operations center Argentina assets		777		35		604		1,416

Operations Center Israel
Financial assets at fair value through profit or loss:
- Public companies securities	94	-	-	94
- Private companies securities	806	-	-	806
- Deposits	2,560	-	-	2,560
- Mutual funds	2,356	-	-	2,356
- Bonds	4,673	-	-	4,673
- Others	524	-	-	524
Derivative financial instruments:
- Others	16	-	-	16
Non-current trade receivables	-	-	1,828	1,828
Financial assets and other assets held for sale	5,365	-	-	5,365
Total operations center Israel assets	16,394	-	1,828	18,222
Total assets	17,171	35	2,432	19,638

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14. Financial instruments by category (Continued)

	March 31, 2016
	Level 1		Level 2		Level 3		Total
Liabilities
Operations Center Israel
Derivative financial instruments:
- DIC and Cellcom derivatives		-		196		-		196
Borrowings:
- Non-recourse loan		-		-		11,349		11,349
Total operations center Israel liabilities		-		196		11,349		11,545
Total liabilities		-		196		11,349		11,545

	June 30, 2015
	Level 1		Level 2		Level 3		Total
Assets
Operations Center Argentina
Financial assets at fair value through profit or loss:
- Public companies securities		89		-		349		438
- Private companies securities		102		-				102
- Mutual funds		145		-		-		145
- Bonds		103		-		-		103
Derivative financial instruments:
- Warrants of IDBD		228		-		-		228
- Warrants of Condor		-		-		7		7
Cash and cash equivalents:
- Mutual funds		2		-		-		2
Investment in associates:
- IDBD		1,529		-		-		1,529
Total assets		2,198		-		356		2,554

	June 30, 2015
	Level 1		Level 2		Level 3		Total
Liabilities
Operations Center Argentina
Derivative financial instruments:
- Commitment to tender offer shares in IDBD		-		-		501		501
Borrowings:
- Other borrowings		-		26		-		26
Total liabilities		-		26		501		527

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14. Financial instruments by category (Continued)

The following table presents the changes in Level 3 instruments as of March 31, 2016 and June 30, 2015:

	Preferred shares of Condor and promissory note		Non-current trade receivables			Warrants of Condor			Investment in associate IDBD			Commitment to tender offer of shares in IDBD			Borrowings			Total
Total as of June 30, 2014		211		-			-			-			(321	)		-			(110	)
Currency translation adjustment		-		-			-			-			(45	)		-			(45	)
Total gains / (losses) for the year		138		-			7			-			(135	)		-			10
Balances at June 30, 2015		349		-			7			-			(501	)		-			(145	)
Additions and acquisitions		50		-			-			-			-			-			50
Transfer to level 3		-		-			-			1,529			-			(26	)		1,503
Cumulative translation adjustment		-		704			-			82			(18	)		(4,354	)		(3,586	)
Acquisition of control over IDBD		-		1,187			-			(1,047	)		500			(7,337	)		(6,697	)
Total gain (losses) for the period		205		(63	)		(7	)		(564	)		19			368			(42	)
Balances at March 31, 2016		604		1,828			-			-			-			(11,349	)		(8,917	)

Non-recourse loan

IDBD resorts to an independent appraiser to determine the value of the non-recourse loan. The valuation model is a binomial tree where the main variable is Adama’s share price.

Securities and warrants of Condor

Upon initial recognition of the new instrument, the consideration paid for the Shares and Warrants of Condor was assigned to both instruments based on the relative fair values of those instruments upon acquisition. The fair values of these instruments exceeded the price of the transaction and were assessed using a valuation method that incorporates unobservable market data. Given the fact that the fair value of these instruments was estimated by applying the mentioned method, the Group did not recognize a gain at the time of initial recognition.

In March 2016, the Group has exchanged its preferred Class C shares for a new Class D preferred shares issued by Condor and, additionally, it has received cash in the amount of US$ 1.2 million and a promissory note for US$ 1.1 million related to dividends receivable.

In this new issue the company “Stepstone Real Estate” has been added as new partner by making a contribution of US$ 30 million, which will be used to redeem Class A and B preferred shares and the acquisition of new hotels.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14. Financial instruments by category (Continued)

The new Class D preferred shares will accrue annual interest at a rate of 6.25% and will be convertible in common shares at a price of US$/share 1.60.

There were no changes to the warrants held by the Group.

The Board of Directors of Condor is now formed by 4 directors of the company, 3 directors appointed by Stepstone Real Estate and 2 independent directors. In addition, the voting power held by the company in Condor amounts to 49%, thus keeping significant influence.

Investment in IDBD, associate and warrants

As described in Note 3 to the annual financial statements, in Note 15 to the financial consolidated statements as of September 30, 2015 and until acquiring control over IDBD, the Group stated its equity interest in IDBD as an associate measured at fair value, invoking the exception under IAS 28 and the warrants to acquire IDBD’s common shares were booked at their quoted prices. Since October 11, 2015, as result of consolidation, the equity interest in IDBD as an associate and the warrants were eliminated following the consolidation to add IDBD’s assets and liabilities on a line-by-line basis.

When no quoted prices in an active market are available, fair values (particularly with derivatives) 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	Pricing method	Parameters	Range
Non-current trade receivables	Cash flows	Theoretical price	Projected discounted income as per discount rate.	5.20
Interest rate swaps	Cash flow	Theoretical price	Interest rate and cash flow future contract.	-
Preferred shares of Condor	Binomial tree	Theoretical price	Underlying asset price (Market price); share price volatility (historical) and money market interest-rate curve (Libor rate).	Underlying asset price 1.7 to 2.1 Share price volatility 58% to 78% Money market interest-rate 1.0% to 1.3%
Warrants of Condor	Black-Scholes	Theoretical price	Underlying asset price (Market price); share price volatility (historical) and money market interest-rate curve (Libor rate).	Underlying asset price 1.7 to 2.1 Share price volatility 58% to 78% Money market interest-rate 1.0% to 1.3%
Call option of Arcos	Discounted cash flow	-	Projected income and discounted interest rate.	-
Non-recourse loan	Binomial tree	Theoretical price	Underlying asset price (obtained by the discounted cash flow valuation), capital cost, discounted market interest rate; control premium, underlying asset volatility.	Underlying asset price US$ 760MM to US$ 9400MM, capital cost 11.8% to 14.4%, discounted market interest rate 7.9% to 12.9%, control premium 3.3% to 6.6%, underlying asset volatility 25.7% to 33.1%.
Promissory note	Discounted cash flow	Theoretical price	Money market interest-rate (Libor curve)	Money market interest-rate 1.0% to 1.3%

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.	Trade and other receivables

Group’s trade and other receivables as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016								June 30, 2015
	Operations Center Argentina			Operations Center Israel		Total			Operations Center Argentina
Non-current
Trade, leases and services receivables		113			1,828		1,941			62
Less: allowance for doubtful accounts		(2	)		-		(2	)		(2	)
Total non-current trade receivables		111			1,828		1,939			60
VAT receivables		28			-		28			25
Prepaid expenses		25			1,245		1,270			11
Borrowings, deposits and other debit balances		27			571		598			-
Others		-			-		-			19
Total non-current other receivables		80			1,816		1,896			55
Total non-current trade and other receivables		191			3,644		3,835			115

Current
Trade, leases and services receivables	934		9,999	10,933		695
Less: Allowance for doubtful accounts	(113	)	-	(113	)	(93	)
Total current trade receivables	821		9,999	10,820		602
Tax credits	38		286	324		23
Prepaid expenses	63		446	509		99
Borrowings, deposits and other debit balances	1,082		-	1,082		330
Advances to suppliers	53		172	225		49
Others	108		337	445		40
Current other receivables	1,344		1,241	2,585		541
Total current trade and other receivables	2,165		11,240	13,405		1,143
Total trade and other receivables	2,356		14,884	17,240		1,258

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.	Trade and other receivables (Continued)

Movements on the Group’s allowance for trade and other receivables are as follows:

	March 31, 2016								June 30, 2015
	Operations Center Argentina			Operations Center Israel		Total			Operations Center Argentina
Beginning of the period / year		95			-		95			82
Additions (Note 26)		31			-		31			26
Unused amounts reversed (Note 26)		(11	)		-		(11	)		(12	)
Used during the period / year		-			-		-			(1	)
End of the period / year		115			-		115			95

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 26). Amounts charged to the provision account are generally written off, when there is no expectation of recovering additional cash.

16.	Investments in financial assets

Group’s investments in financial assets as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016						June 30, 2015
	Operations Center Argentina		Operations Center Israel		Total		Operations Center Argentina
Non-current
Financial assets at fair value
Public companies securities		712		12		724		421
Private companies securities		166		806		972		102
Deposits		-		12		12		-
Others		-		524		524		-
Total non-current financial assets at fair value		878		1,354		2,232		523
Financial assets at amortized cost
Bonds		100		-		100		180
Total non-current financial assets at amortized cost		100		-		100		180
Total investments in non-current financial assets		978		1,354		2,332		703

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Investments in financial assets (Continued)

	March 31, 2016						June 30, 2015
	Operations Center Argentina		Operations Center Israel		Total		Operations Center Argentina
Current
Financial assets at fair value
Mutual funds (i)		75		2,356		2,431		145
Public companies securities		12		82		94		17
Bonds		404		4,673		5,077		103
Deposits		-		2,548		2,548		-
Total current financial assets at fair value		491		9,659		10,150		265

Financial assets at amortized cost
Bonds		16		-		16		30
Total current financial assets at amortized cost		16		-		16		30
Total investments in current financial assets		507		9,659		10,166		295
Total investments in financial assets		1,485		11,013		12,498		998

(i)	It includes shares granted as collateral to transact foreign currency future contracts in the operations center in Argentina

(see Note 17).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

17.	Derivative Financial Instruments

Group’s derivative financial instruments as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016						June 30, 2015
	Operations Center Argentina		Operations Center Israel		Total		Operations Center Argentina
Assets
Non-current
Warrants of Condor		-		-		-		7
Warrants of IDBD (Note 4)		-		-		-		199
Others		-		8		8		-
Total non-current derivative financial instruments		-		8		8		206

Current
Forward exchange agreements	35	-	35	-
Warrants of IDBD (Note 4)	-	-	-	29
Others	-	8	8	-
Total current derivative financial instruments	35	8	43	29
Total assets	35	16	51	235

Liabilities
Non-current
Commitment to tender offer shares in IDBD (Note 4)	-	-		-		(264	)
DIC and Cellcom derivatives	-	(94	)	(94	)	-
Total non-current derivative financial instruments	-	(94	)	(94	)	(264	)

Current
Commitment to tender offer shares in IDBD (Note 4)	-	-		-		(237	)
DIC and Cellcom derivatives	-	(102	)	(102	)	-
Total current derivative financial instruments	-	(102	)	(102	)	(237	)
Total liabilities	-	(196	)	(196	)	(501	)
Total derivative financial instruments	35	(180	)	(145	)	(266	)

As part of the foreign exchange risk management, the Company had negotiated long positions forward exchange agreements for the amount of US$ 273.45, at an average price of Ps. 11.385 per US$ 1, and some short positions forward exchange agreements for the amount of US$ 130.95, at an average price of Ps. 15.57 per US$ 1. As of March 31, 2016 the gain generated by these futures amounted to Ps. 1,320.86 and was booked in financial results, net under the line Gains (losses) on derivative financial instruments, net.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of March 31, 2016 and June 30, 2015:

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Cash at bank and on hand		4,454		14,758		19,212		373
Mutual funds		12		-		12		2
Total cash and cash equivalents		4,466		14,758		19,224		375

Following is a detailed description of cash flows generated by the Group’s operations for the nine-month periods ended March 31, 2016 and 2015:

	Note		March 31, 2016			March 31, 2015
Loss for the period				(1,039	)		(164	)
Adjustments for:
Income tax expense		22		250			390
Amortization and depreciation		26		1,204			135
Gain from disposal of investment property		10		(1,068	)		(801	)
Dividends received		28		(70	)		(12	)
Share-based payments		29		13			18
(Gain) / loss from derivative financial instruments		28		(917	)		54
Changes in fair value of investments in financial assets		28		723			3
Interest expense, net		28		1,239			440
Gain on repurchase of Non-Convertible notes		28		159			-
Loss from disposal of associates				(4	)		(22	)
Provisions and allowances				128			93
Share of profit of associates and joint ventures		8.9		686			842
Unrealized foreign exchange loss, net				2,304			294
Changes in operating assets and liabilities:
Decrease / (Increase) in inventories				100			(4	)
Decrease in trading properties		12		1			-
Decrease / (Increase) in trade and other receivables				141			(291	)
(Decrease) / Increase in trade and other payables				(515	)		51
Increase in salaries and social security liabilities				-			1
Increase / (Decrease) in provisions				85			(4	)
Net cash generated by operating activities before income tax paid				3,420			1,023

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Cash flow information (Continued)

The following table shows a detail of non-cash transactions occurred in the periods ended March 31, 2016 and 2015:

	March 31, 2016		March 31, 2015
Increase in investments in financial assets through an increase in trade and other payables		180		-
Increase in investments in financial assets through a decrease in trade and other receivables		71		-
Increase in trading properties through a decrease in investment properties		16		-
Increase in restricted assets through a decrease in assets held for sale		-		9
Increase in property, plant and equipment through an increase in borrowings		1		1
Increase in investment properties through a decrease in property, plant and equipment		5		4
Decrease in investments in associates and joint ventures through a decrease in borrowings granted to associates and joint ventures		10		137
Increase in investments in associates and joint ventures through an increase in derivative financial instruments		855		-
Tender offer to non-controlling shareholders		21		-
Increase in tax receivables through a decrease in derivative instruments		27		-
Use of tax loss carryforwards		73		-
Increase in tax receivables through a decrease in investments in financial assets		21		-
Receivables from the sale of shares in subsidiaries		81		-
Reimbursement of expired dividends		-		1
Dividends payable		-		13
Increase in investment properties through a decrease in financial assets		-		48
Increase in financial assets through a decrease in investments in associates and joint ventures		-		30
Decrease in investment properties through an increase in intangible assets		-		2

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Cash flow information (Continued)

Business combination

	March 31, 2016			March 31, 2015
Investment properties		28,726			-
Property, plant and equipment		13,067			-
Trading properties		2,564			-
Intangible assets		1,287			-
Investments in associates and joint ventures		9,043			-
Deferred income tax		(2,660	)		-
Trade and other receivables		9,546			-
Investments in financial assets		6,684			-
Derivative Financial Instruments		(39	)		-
Inventories		1,822			-
Restricted assets		250			-
Income tax and minimum presumed income tax ("MPIT") credit		91			-
Assets held for sale		4,475			-
Trade and other liabilities		(11,261	)		-
Borrowings		(68,170	)		-
Salaries and social security liabilities		(794	)		-
Provisions		(1,106	)		-
Income tax and minimum presumed income tax ("MPIT") liabilities		(316	)		-
Employee benefits		(405	)		-
Total		(7,196	)		-
Non-controlling interest		(3,287	)		-
Goodwill not yet allocated		2,706			-
Total net assets added as a result of business combination		(7,777	)		-
Cash added as a result of business combination		9,193			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

19.	Trade and other liabilities

Group’s trade and other payables as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Non-current
Trade payables		456		247		703		217
Deferred income tax		7		12		19		7
Others		35		148		183		31
Total non-current trade and other payables		498		407		905		255

Current
Trade payables		318		10,535		10,853		261
Accrued invoices		237		2,677		2,914		119
Sale and rent payments received in advance		258		2,904		3,162		223
Total current trade payables		813		16,116		16,929		603
Dividends payable to non-controlling shareholders		-		-		-		59
Tax liabilities		87		231		318		83
Others		281		763		1,044		151
Total current other payables		368		994		1,362		293
Total current trade and other payables		1,181		17,110		18,291		896
Total trade and other payables		1,679		17,517		19,196		1,151

20.	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 liability 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.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.	Provisions (Continued)

The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:

	Operations center in Argentina									Operations center in Israel
	Legal claims			Investments in associates and joint ventures (ii)			Subtotal			Sited dismantling and remediation (iii)		Legal claims			Onerous contracts (iv)			Guarantees and other provisions			Subtotal			Total
At July 1st, 2014		47			177			224			-		-			-			-			-			224
Additions (i)		35			159			194			-		-			-			-			-			194
Recovery (i)		(15	)		-			(15	)		-		-			-			-			-			(15	)
Used during the year		(4	)		-			(4	)		-		-			-			-			-			(4	)
Contributions		-			(2	)		(2	)		-		-			-			-			-			(2	)
Currency translation adjustment		-			29			29			-		-			-			-			-			29
At June 30, 2015		63			363			426			-		-			-			-			-			426
Liabilities added as a result of business combination (see Note 4)		-			-			-			47		284			726			49			1,106			1,106
Additions (i)		16			232			248			4		30			67			-			101			349
Recoveries (i)		(10	)		-			(10	)		-		(59	)		-			-			(59	)		(69	)
Used during the period		(4	)		-			(4	)		-		-			(96	)		(7	)		(103	)		(107	)
Contributions		-			(17	)		(17	)		-		-			-			-			-			(17	)
Currency translation adjustment		-			236			236			28		168			424			29			649			885
At March 31, 2016		65			814			879			79		423			1,121			71			1,694			2,573

(i) Additions and recoveries are included in "Other operating results, net".

(ii)	Corresponds to the equity interest in New Lipstick and Condor with negative equity. Additions and recoveries are included in "Share of loss of associates and joint ventures".

(iii)

The Group’s companies are required to recognize certain costs related to dismantling assets and remediating sites here such assets are located.

The calculation of expenses are based on the dismantling value for the current year, taking into consideration the best estimate of future changes in prices, inflation, etc. and such costs are capitalized at a risk-free interest rate. Volume projections for retired or built assets are restated based on expected changes from technological rulings and requirements.

(iv)	Provisions for other contractual liabilities include a series of liabilities resulting from a contractual liability or laws, regarding which there is a high degree of certainty as to the terms and the necessary amounts to discharge such liability.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.	Provisions (Continued)

Disclosure of total provisions in current and non-current is as follows:

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Non-current		869		943		1,812		374
Current		10		751		761		52
Total		879		1,694		2,573		426

Operations Center in Argentina

On February 23, 2016, a complaint was filed under a presumed class action against the Company, Cresud and some first-line managers and directors with the District Court of the United States for the Central District of California. The complaint, on behalf of people holding American Depositary Receipts of the Company between November 3, 2014 and December 30, 2015, claims violations to the US federal securities laws. In addition, it argues that defendants have made material misrepresentations and made some omissions related to the Company’s investment in IDBD.

Such complaint was voluntarily waived on May 4, 2016 by the plaintiff and filed again on May 9, 2016 with the US District Court by the East District of Pennsylvania. The Company holds that such allegations are meritless and intends to make a strong defense in this action.

Operations Center in Israel

The amount of the provision for the Operations Center in Israel related to legal claims stands at Ps. 423. Additionally, there are other processes and actions (collective and/or individual) that are at a preliminary stage or where the amount of the claim is not specified. Therefore, it is not possible to reasonably estimate i) the probabilities of success, or ii) the potential losses, all of which depends on the progress of the respective judicial proceedings.

The main claims include the following:

Claims against Cellcom and its subsidiaries

Most legal proceedings involve consumer claims and actions derived from these claims and petitions have been filed requesting that they be admitted as class actions.

Claims against Shufersal and its subsidiaries

Most legal actions pertain to consumer claims and petitions requesting that such claims be admitted as class actions. There are also individual legal actions brought by employees, subcontractors and suppliers.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings

The breakdown of the Group borrowings as of March 31, 2016 and June 30, 2015 was as follows:

	March 31, 2016						June 30, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Non-current
Non-Convertible Notes		6,171		64,387		70,558		3,634
Bank loans and others		125		13,283		13,408		102
Non-recourse loan		-		11,349		11,349		-
Total non-current borrowings		6,296		89,019		95,315		3,736

Current
Non-Convertible Notes	4,885	11,776	16,661	337
Bank loans and others	122	5,769	5,891	204
Bank overdrafts	1,085	105	1,190	681
Other borrowings	-	-	-	26
Total current borrowings	6,092	17,650	23,742	1,248
Total borrowings	12,388	106,669	119,057	4,984

Operations Center in Argentina

Purchase offers and requests for consent of IRSA CP’s Class I Corporate Notes and IRSA’s Class I and Class II Corporate Notes.

On March 3, 2016, IRSA and IRSA CP announced that it would launch offers to buy in cash: (i) 11.50% Class 2 corporate notes outstanding due in 2020 and issued by IRSA for a total nominal value of up to US$ 76.5 million, subject to a potential extension of the Offer Limit of Corporate Notes due in 2020 for a nominal value of up to US$ 73.5 million, at IRSA’s exclusive decision, (ii) each and every 8.50% Class 1 corporate notes outstanding due in 2017 and issued by IRSA, and (iii) each and every 7.875% Class 1 corporate notes outstanding due in 2017 and issued by IRSA CP.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

Along with the Purchase Offers, (i) IRSA asked (a) the holders of 2020 Corporate Notes to give their consent to certain proposed changes to the trust agreement dated June 20, 2010, including the amendment or elimination of certain events of breach and other provisions of the 2020 Corporate Notes Trust Agreement and the 2020 Corporate Notes, and (b) the holders of 2017 Corporate Notes to give their consent to certain proposed changes to the trust agreement dated February 2, 2007, including the elimination of substantially all covenants, and the amendment or elimination of certain events of breach and other provisions of the 2017 Corporate Notes Trust Agreement and the 2017 Corporate Notes, and (ii) IRSA CP asked the holders of Corporate Notes to give their consent to certain proposed changes to the trust agreement dated May 11, 2007, including the elimination of substantially all covenants, and the amendment or elimination of certain events of breach and other provisions of IRSA CP’s Corporate Notes Trust Agreement of and Corporate Notes.

The table below detail of certain information on the main payment terms of the Purchase Offers and Request for Consent:

Existing Corporate Notes	CUSIP Numbers	ISINs	Outstanding Nominal Value (i)	Purchase price (i)	Payment for Early Offer (i)	Payment for Consent (i)	Total Consideration (i)
11.500% Corporate Notes maturing in 2020	450047AG0 / P5880CAB6	US450047AG04 / USP5880CAB65	US$ 150,000,000	US$ 1,070.00	US$ 30.00	US$ 10.00	US$ 1,110.00
8.500% Corporate Notes maturing in 2017	450047AF2 / P5880CAA8	US450047AF21 / USP5880CAA82	US$ 150,000,000	US$ 975.00	US$ 30.00	N/A	US$ 1,005.00
7.875% Corporate Notes maturing in 2017	02151PAB3 / P0245MAC3	US02151PAB31 / USP0245MAC30	US$ 120,000,000	US$ 974.50	US$ 30.00	N/A	US$ 1,004.50

(i)	Figures are expressed in whole numbers.

The purchase offers were subject to certain conditions, including (i) the execution of a simultaneous offering of corporate notes in the international capital markets by IRSA CP in order to fund the purchase offer; (ii) IRSA CP corresponding payment of the outstanding purchase price balance of US$ 240.0 million owed by IRSA CP to IRSA for the acquisition of office buildings and reserves of land in December 2014; (iii) an offer, not to be validly withdrawn in the Offer of Corporate Notes due in 2020, for more than 50% of the nominal value of outstanding Corporate Notes due in 2020 pursuant to the terms and conditions established in the Offer Documents, as amended and supplemented; (iv) securing all Required Consents and maintaining them in full force and effect, and (v) the General Conditions (any significant political, economic or financial change in the conditions, among others).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

On April 4, 2016, IRSA and IRSA CP announced the final outcomes of the purchase offers and requests for consent, as summarized in the following table:

Existing Corporate Notes	CUSIP Numbers	ISINs	Outstanding Nominal Value (i)	Approximate Amount of Existing Corporate Notes Offered for sale (i)	Approximate Percentage of Existing Corporate Notes Offered for sale	Approximate Percentage of Consents Received
11.500% Corporate Notes maturing in 2020	450047AG0 / P5880CAB6	US450047AG04 / USP5880CAB65	US$150,000,000	US$78,563,000	52.37%	57.98%
8.500% Corporate Notes maturing in 2017	450047AF2 / P5880CAA8	US450047AF21 / USP5880CAA82	US$150,000,000	US$75,446,000	50.30%	50.30%
7.875% Corporate Notes maturing in 2017	02151PAB3 / P0245MAC3	US02151PAB31 / USP0245MAC30	US$120,000,000	US$59,504,000	49.59%	49.59%

(i)	Figures are expressed in whole numbers

On March 23, 2016, a meeting was held by the holders of Corporate Notes Class 2 issued by IRSA; upon constitution of quorum, the holders of the majority of all 11.50% corporate notes Class 2 due in 2020 and issued by IRSA – at their nominal value – then outstanding voted to approve the proposed amendments to the Trust Indenture of IRSA 2020. Approximately 57.98% of the holders of 11.50% corporate notes due in 2020 approved the terms and conditions of the Trust Indenture for IRSA 2020 Corporate Notes.

In relation to financial covenants under 11.50% Corporate Notes due in 2020 issued by IRSA, as described in Note 24 to the annual financial statements, the Meeting of Noteholders held on March 23, 2016 approved:

to modify the covenant on Limitation on Restricted Payments, so that the original covenant was replaced so as to take into consideration IRSA’s capability to make any restricted payment provided that (a) no Event of Default has occurred and persisted, and (b) IRSA may incur at least US$ 1.00 of additional debt pursuant to the Limitation on Additional Indebtedness; and

ii)

the exclusion of IDB Development Corporation Ltd. or any of its subsidiaries for purposes of the definition of “Subsidiary” or any of the definitions or commitments under the Trust Indenture of Corporate Notes due in 2020 and issued by IRSA (regardless of whether the financial statements of any of these companies has any time been consolidated into IRSA’s financial statements).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

On March 28, 2016, IRSA and the Bank of New York Mellon, as Trustee, have entered into a Supplementary Trust Indenture reflecting all the modifications approved by the Noteholders’ Meetings, which became effective on April 8, 2016.

The Meeting of IRSA’s 2017 Corporate Notes holders scheduled for March 23, 2016 could not be held for the required quorum was not gathered. On April 7, 2016, a Meeting was held by the holders of Corporate Notes Class I issued by IRSA, on second call; upon establishing quorum, the majority of note holders of all 8.50% Class 1 Corporate Notes due in 2017 and issued by IRSA – stated at nominal value – then outstanding voted to approve of the proposed amendments to the IRSA 2017 Trust Indenture, which included basically the elimination of all financial restrictive covenants on such class. Approximately 50.30% of holders of Corporate Notes due 2017 approved the terms and conditions of the Trust Indenture for IRSA Corporate Notes 2017.

On April 7, 2016, IRSA and the Bank of New York Mellon, as Trustee, have entered into a Supplementary Trust Indenture reflecting all amendments approved by the Noteholders’ Meeting, which came into force on April 8, 2016.

On March 28, 2016 and April 8, 2016, IRSA CP bought the aggregate principal amount of US$ 59.1 and US$ 0.4, respectively, of 7.875% Class I Corporate Notes maturing in 2017, and ordered the Trustee to settle US$ 59.5 of the aggregate principal amount of the Corporate Notes on such dates. Following such settlements, the aggregate outstanding principal amount of 7.875% Class I Corporate Notes maturing in 2017 issued by IRSA CP was US$ 60.5.

On April 4, 2016, IRSA CP’s Board of Directors decided to approve the payment of US$ 60.5, the remaining outstanding amount of IRSA CP’s Class I Corporate Notes. Such payment was made on May 4, 2016.

On April 8, 2016, IRSA acquired US$ 75.5 of the total nominal value of 8.500% Corporate Notes due in 2017, and ordered the Trustee on that date to redeem such amount of Corporate Notes at nominal value. Following such redemptions, the total nominal amount of outstanding corporate notes is US$ 74.6.

On April 8, 2016, IRSA acquired US$ 78.6 of the total nominal value of 11.500% Class II Corporate Notes due in 2017, and ordered the Trustee on that date to redeem such amount of Corporate Notes at nominal value. Following such redemptions, the total nominal amount of outstanding corporate notes is US$ 71.4.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

Issuance of IRSA CP’s 8.75% Class II Corporate Notes maturing in 2023.

On March 23, 2016, IRSA CP issued corporate notes for an aggregate nominal amount of US$ 360 million under its Global Corporate Note Program. Class II Corporate Notes accrue interest on a half-yearly basis, at an annual fixed rate of 8.75% and are repayable at maturity on March 23, 2023. The issue price is 98.722% of nominal value.

IRSA CP’s Corporate Notes maturing in 2023 are subject to certain Commitments, Events of Breach and Limitations, including Limitations on Additional Indebtedness, Limitations on Restricted Payments, Limitations on Transactions with Affiliates, Limitations on the Merger, Take-over Merger and Limitations on the Sale of all or a substantial portion of the company’s Assets.

In order to borrow additional debt, IRSA CP shall have to meet the additional debt Consolidated Interest Coverage ratio, which shall be higher than 2.00. The Consolidated Interest Coverage ratio is defined as Consolidated EBITDA divided by consolidated net interest. Consolidated EBITDA is defined as operating income (loss) plus depreciation and amortization, and other consolidated non-monetary charges.

Class II Corporate Notes are subject to certain financial commitments pursuant to which IRSA CP may not declare or pay dividends in cash or in kind, unless the following conditions are met at the time of payment:

a)	an Event of Default does not occur or persist,

b)	IRSA may incur at least US$ 1.00 worth of additional debt pursuant to the “Restriction on Additional Borrowing”; and

c)	the amount of such Restricted payment exceeds the sum of:

(i)	100% of the accumulated EBITDA for the period (considered as one single accounting period) from July 1, 2015 to the last day of the last fiscal quarter ended before the date of such Restricted Payment, less an amount equal to 150% of net consolidated interest for such period; and

(ii)	any debt reduction by the Issuer or its Subsidiaries after the Issue Date (other than Debt due by the Subsidiaries to the Issuer) through a swap or exchange of shares of the Issuer or its Subsidiaries.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

Operations Center in Israel

IDBD has certain restrictions and financial covenants in connection with its financial debt, included in its debentures, loans from banks and financial institutions.

As of December 31, 2015 IDBD reported that the application of the “Liquidity Covenant” and the “Economic Equity Covenant” was suspended.

Note that, it was agreed between IDBD and the relevant financial entities that the parties would work to formulate an arrangement, to replace or amend the current financial covenant by September 30, 2016.

If such arrangement has not been reached, then with respect to the results for IDBD´s third quarter of 2016 and thereafter, the previous financial covenants will re-apply. In the event that these covenants will re-apply, IDBD estimates that it will not be able to meet the thresholds which were determined in the past with respect to the Liquidity Covenant and the Economic Equity Covenant with respect to IDBD´s results for the first quarter of 2016.

Particularly, if the previous financial covenants will re-apply, IDBD estimates it will not be able to fulfill the covenant which stipulates that the balance of cash and marketable securities will not fall below the scope of forecasted current maturities for the two quarters subsequent to the reporting quarter (the “Liquidity Covenant”). Regarding the Economic Equity Covenant, it is noted that the economic equity as of December 31, 2015, amounted to a positive balance of NIS 152 million, significantly lower than the thresholds which were determined in the past.

Additionally, in light of and due to the reduction of Mr. Ben Moshe’s shareholding since February 2015, in March 2016 IDBD reached agreements with the lending entities on covenants governing change of control and other amendments to covenants governing the sale of major holdings.

IDBD is continuing to work towards reaching understandings with the relevant lending corporations, and additional contractual issues in the loan agreements.

In December 2015, PBC, issued three series of debentures under the current programs for an aggregate amount of NIS 417 million (or Ps. 1,397 million at the exchange rate of 3.35).

In addition, IDB Tourism renegotiated the terms and conditions of the loan for the purchase of aircrafts. The amendments included the extension of the term.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

The breakdown of the Group borrowings as of March 31, 2016 was as follows:

	Operations center in Argentina								Operations center in Israel
Debt	IRSA		IRSA CP		Others		Subtotal		IDBD		DIC		Shufersal		Cellcom		PBC		Others		Subtotal		Total
Non-Convertible Notes		4,607		6,449		-		11,056		7,551		12,793		12,191		15,787		27,841		-		76,163		87,219
Bank loans and others		14		104		129		247		2,575		1,307		17		-		13,090		2,063		19,052		19,299
Non-recourse loan		-		-		-		-		-		11,349		-		-		-		-		11,349		11,349
Bank overdrafts		796		230		59		1,085		-		-		-		-		-		105		105		1,190
Total debt		5,417		6,783		188		12,388		10,126		25,449		12,208		15,787		40,931		2,168		106,669		119,057

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

The breakdown of the borrowings of Operations centers in Argentina and Israel is as follows:

	Operations center in Argentina
	Company	Secured / unsecured	Series / Class		Currency	Rate	Payment date for capital		Effective interest rate %			Capital nominal value in million Issue currency		Book value March 31, 2016
Non-convertible notes	IRSA CP	Unsecured	Class I		Ps.	Fixed / Floating	2020		Badlar + 400ps				407		895
	IRSA CP	Unsecured	Series I		US$	Fixed	2017			7.88	%		61		410
	IRSA CP	Unsecured	Class II		US$	Fixed	2023			8.75	%		360		5,144
	IRSA	Unsecured	Class I		US$	Fixed	2017			8.50	%		150		2,240
	IRSA	Unsecured	Class IV		Ps.	Floating	2017		Badlar + 450ps				11		11
	IRSA	Unsecured	Class II		US$	Fixed	2020			11.50	%		150		2,356
Total non-convertible notes															11,056

Bank loans	IRSA	Secured		-	US$	Fixed		2020	3.2% to 14.3%				1		1
and others	IRSA	Unsecured		-	Ps.	Floating		2017	Badlar				15		13
	IRSA CP	Secured		-	US$	Fixed		2020	3.2% to 14.3%				257		4
	IRSA CP	Unsecured		-	Ps.	Fixed		2016		15.25	%		12		12
	IRSA CP	Unsecured		-	Ps.	Fixed		2017		26.50	%		10		10
	IRSA CP	Unsecured		-	Ps.	Fixed		2016		23	%		72		72
	IRSA CP	Unsecured		-	Ps.	Floating		2016	Badlar + 300				6		6
	HASA	Unsecured		-	Ps.	Fixed		2016		15.25	%		6		6
	LLAO LLAO	Unsecured		-	Ps.	Fixed		2016		15.25	%		1		1
	NFSA	Unsecured		-	Ps.	Fixed		2016		24	%		6		6
	LIVECK	Secured		-	US$	Fixed		2017		-			2		34
	LIVECK	Secured		-	US$	Fixed				3.50	%		5		82
Total bank loans and others															247
Bank overdrafts															1,085
Subtotal Operations center in Argentina															12,388

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Borrowings (Continued)

Operations center in Israel

Non-convertible notes

Company

Secured / unsecured

Series

Currency

Rate

Adjustment factor

Payment date for capital

Effective interest rate %

Capital nominal value in million

Issue currency

Book value

March 31,

2016

IDBD

Unsecured

NIS

Fixed

CPI

2016 – 2018

4.50

2,130

3,366

IDBD

Unsecured

NIS

Fixed

CPI

2020 – 2025

4.95

881

3,113

IDBD

Unsecured

NIS

Fixed

N/A

2015 – 2018

6.60

721

1,072

DIC

Unsecured

NIS

Fixed

CPI

2012 – 2016

5.00

2,263

497

DIC

Unsecured

NIS

Fixed

CPI

2017 – 2025

4.95

2,958

9,275

DIC

Unsecured

NIS

Fixed

N/A

2012 – 2016

6.35

DIC

Unsecured

NIS

Fixed

CPI

2014 – 2019

4.45

187

528

DIC

Unsecured

NIS

Fixed

N/A

2010 – 2018

6.70

1,482

2,462

Shufersal

Unsecured

NIS

Fixed

CPI

2015 – 2019

5.20

1,706

6,927

Shufersal

Unsecured

NIS

Fixed

N/A

2010 – 2017

5.45

858

912

Shufersal

Unsecured

NIS

Fixed

CPI

2014 – 2029

2.99

472

1,569

Shufersal

Unsecured

NIS

Fixed

N/A

2014 – 2029

5.09

448

1,550

Shufersal

Unsecured

NIS

Fixed

CPI

2020 – 2028

4.30

317

1,233

Cellcom

Unsecured

NIS

Fixed

CPI

2013 – 2017

5.30

925

1,756

Cellcom

Unsecured

NIS

Fixed

CPI

2013 – 2017

5.19

2,423

2,827

Cellcom

Unsecured

NIS

Fixed

N/A

2012 – 2017

6.25

1,799

1,314

Cellcom

Unsecured

NIS

Fixed

CPI

2017 – 2020

4.60

715

3,057

Cellcom

Unsecured

NIS

Fixed

N/A

2017 – 2019

6.99

285

1,230

Cellcom

Unsecured

NIS

Fixed

CPI

2018 – 2024

1.98

950

3,472

Cellcom

Unsecured

NIS

Fixed

N/A

2018 – 2025

4.14

558

2,131

PBC

Unsecured

NIS

Fixed

CPI

2009 – 2017

2,069

2,681

PBC

Unsecured

NIS

Fixed

CPI

2020 – 2025

4.95

1,114

6,680

PBC

Unsecured

NIS

Fixed

CPI

2015 – 2023

4.95

955

4,227

PBC

Unsecured

NIS

Fixed

N/A

2015 – 2025

7.05

632

3,045

PBC

Unsecured

Gav-Yam Series E

NIS

Fixed

CPI

2014 – 2018

4.55

707

2,078

PBC

Unsecured

Gav-Yam Series F

NIS

Fixed

CPI

2021 – 2026

4.75

1,226

6,684

PBC

Unsecured

Gav-Yam Series G

NIS

Fixed

N/A

2013 – 2017

6.41

537

900

PBC

Unsecured

Ispro Series B

NIS

Fixed

CPI

2007 – 2021

5.40

581

1,546

Total non-convertible notes

76,163

IDBD

Unsecured (1)

NIS

Floating

Prime interest rate

2015 – 2018

Prime + 1.3%

415

1,405

IDBD

Unsecured (1)

NIS

Floating

Prime interest rate

2015 – 2019

Prime + 1%

200

309

Bank loans

IDBD

Unsecured

NIS

Floating

Prime interest rate

2015 – 2020

Prime + 0.65%

100

196

and others

IDBD

Secured (2)

NIS

Fixed

CPI

2015 – 2018

6.90

150

665

DIC

Unsecured

NIS

Fixed

N/A

2015 – 2017

5.39

250

204

DIC

Unsecured

NIS

Floating

Prime interest rate

2015 – 2018

2.12

223

442

DIC

Unsecured

NIS

Fixed

N/A

2015 – 2018

5.90

250

340

DIC

Unsecured

NIS

Fixed

Prime interest rate

2015 – 2018

2.20

250

321

Shufersal

Secured

NIS

Fixed

CPI

2015 – 2017

4.95

Shufersal

Secured

NIS

Fixed

CPI

2015 – 2017

4.95

Shufersal

Secured

NIS

Fixed

CPI

2015 – 2017

4.75

Shufersal

Secured

NIS

Fixed

CPI

2015 – 2017

4.40

Shufersal

Secured

NIS

Fixed

CPI

2015 – 2017

3.25

PBC

Secured

NIS

Fixed

N/A

2015 – 2020

3.60

PBC

Secured

NIS

Fixed

CPI

2015 – 2020

4.30

2,004

6,803

PBC

Secured

US$

Fixed

N/A

2015 – 2020

5.00

1,569

6,208

Bartan

Unsecured

NIS

Floating

Prime interest rate

2015 – 2022

2.80

Bartan

Unsecured

NIS

Floating

Prime interest rate

2015 – 2022

IDB Tourism

Secured

US$

Floating

Libor interest rate

5.66

207

798

IDB Tourism

Secured

US$

Floating

Libor interest rate

2015 – 2018

5.21

IDB Tourism

Secured

NIS

Floating

Prime interest rate

2015 – 2018

4.70

IDBG

Secured

US$

Floating

Libor interest rate

2015 - 2015

Libor + 5%

900

IDBG

Unsecured

US$

Fixed

N/A

(3)

12% - 5

286

Total bank loans and others

19,052

Bank overdrafts

105

Non-recourse loan

11,349

Subtotal Operations center in Israel

106,669

(1)	They pertain to a bank loan in the amount of NIS 750 million, where repayment of principal had been deferred for three years starting March 2014 until March 2018.

(2)

In May 2012, IDBD was granted a secured loan in the amount of NIS 150 million by the financial institutions of Menorah Group. Principal is repayable in two installments of NIS 50 million and NIS 100 million in 2017 and 2018, respectively. As part of the loan, IDBD granted the lender any stock call option on the shares it held in DIC, representing approximately 1.7% of the share capital issued by this company. These stock options may be exercised until May 2016. The loan was secured by shares of DIC, Clal Industries Ltd. and Clal.

(3)	Without preset maturities.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

22.

Taxes

The details of the provision for the Group’s income tax, is as follows:

	March 31, 2016									March 31, 2015
	Operations center in Argentina			Operations center in Israel			Total			Operations center in Argentina
Current income tax		(205	)		(152	)		(357	)		(633	)
Deferred income tax		14			93			107			246
Minimum Presumed Income tax (MPIT)		-			-			-			(3	)
Income tax		(191	)		(59	)		(250	)		(390	)

The gross movement on the deferred income tax account is as follows:

	March 31, 2016									June 30, 2015
	Operations center in Argentina			Operations center in Israel			Total			Operations center in Argentina
Beginning of the period /year		2			-			2			23
Added as a result of the business combination (see Note 4)		-			(2,660	)		(2,660	)		-
Use of tax loss carryforwards		(12	)		-			(12	)		(157	)
Change of non-controlling interest		(55	)		-			(55	)		-
Cumulative translation adjustment		-			(1,546	)		(1,546	)		(1	)
Assets held for sale		-			-			-			(33	)
Deferred income tax expense		14			93			107			170
End of period / year		(51	)		(4,113	)		(4,164	)		2

Below is a reconciliation between income tax recognized and that which would result applying the prevailing tax rate on Profit before income tax for the nine-month periods ended March 31, 2016 and 2015:

	March 31, 2016									March 31, 2015
	Operations center in Argentina			Operations center in Israel			Total			Operations center in Argentina
Tax calculated at the tax rates applicable to profits in the respective countries		189			208			397			13
Permanent differences:
Share of profit of associates and joint ventures		15			42			57			390
Unrecognized tax losses carryforwards		(1	)		182			181			5
Change of measurement and partial disposal of Avenida Inc.		-			-			-			(15	)
Non-taxable income		(13	)		(371	)		(384	)		(6	)
Others		1			(2	)		(1	)		-
Income tax		191			59			250			387
Minimum Presumed Income tax (MPIT)		-			-			-			3

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.	Shareholders’ equity

The breakdown and explanation of shareholders’ equity has not changed from June 30, 2015, and should therefore be read in Note 29 to the Annual Financial Statements.

Group’s other reserves for the years ended March 31, 2016 and 2015 were as follows:

	Attributable to equity holders of the parent
	Cost of treasury stock			Changes from non-controlling interest			Reserve for share-based payments			Reserve for future dividends		Reserve for defined benefit plans			Other reserves		Cumulative translation adjustment			Total Others reserves
Balance at July 1st, 2015		(34	)		(6	)		64			-		-			-		306			330
Profit for the period		-			-			-			-		-			-		-			-
Other comprehensive (loss) / income for the period		-			-			-			-		(4	)		12		196			204
Total comprehensive (loss) / income for the period		-			-			-			-		(4	)		12		196			204
Reserve for future dividends - Shareholders' meeting held 11.26.15		-			-			-			520		-			-		-			520
Reserve for share-based compensation		5			-			(1	)		-		-			-		-			4
Share of changes in subsidiaries’ equity		-			-			-			-		-			41		-			41
Changes from non-controlling interest (Note 4)		-			(445	)		-			-		-			-		-			(445	)
Reserve for share-based payments		-			-			-			-		-			-		-			-
Cumulative translation adjustment held before business combination		-			-			-			-		-			-		(144	)		(144	)
Tender offer to non-controlling shareholders (Note 4)		-			(190	)		-			-		-			-		-			(190	)
Balance at March 31, 2016		(29	)		(641	)		63			520		(4	)		53		358			320

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.	Shareholders’ Equity (Continued)

	Attributable to equity holders of the parent
	Cost of treasury stock			Changes from non-controlling interest			Reserve for share-based payments		Reserve for new developments			Cumulative translation adjustment			Total other reserves
Balance at July 1st, 2014		(38	)		(22	)		53		414			399			806
Other comprehensive loss for the period		-			-			-		-			(123	)		(123	)
Total comprehensive loss for the period		-			-			-		-			(123	)		(123	)
Distribution of retained earnings approved by Shareholders’ meeting held 11.14.14		-			-			-		(414	)		-			(414	)
Reserve for share-based compensation		-			-			18		-			-			18
Changes from non-controlling interest		-			16			-		-			-			16
Balance at March 31, 2015		(38	)		(6	)		71		-			276			303

Dividends

During the period ended March 31, 2016 there were no distributions of dividends.

24.

Revenue

	March 31, 2016						March 31, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Income from real estate business		2,837		796		3,633		2,186
Sale of trading properties		1		159		160		6
Income from hotel operations		406		38		444		317
Income from sale of communication equipment		-		1,172		1,172		-
Income from telecommunications services		-		2,956		2,956		-
Income from tourism activities		-		568		568		-
Sale of products (supermarkets)		-		10,797		10,797		-
Others		1		-		1		-
Total Group’s revenues		3,245		16,486		19,731		2,509

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

25.

Costs

	March 31, 2016						March 31, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Cost of real estate business		1,200		575		1,775		889
Cost of trading properties		11		-		11		9
Cost of hotel operations		262		11		273		211
Cost of communication equipment		-		846		846		-
Cost of telecommunications services		-		2,774		2,774		-
Cost of tourism activities		-		705		705		-
Cost of products (supermarkets)		-		8,008		8,008		-
Total costs		1,473		12,919		14,392		1,109

26.	Expenses by nature

The Group disclosed expenses the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.

The following tables provide the additional required disclosure of expenses by nature and their relationship to the function within the Group.

	March 31, 2016						March 31, 2015
	Operations center in Argentina		Operations center in Israel		Total		Operations center in Argentina
Salaries, social security costs and other personnel expenses		691		2,110		2,801		519
Maintenance, security, cleaning, repair and others		392		455		847		277
Advertising and other selling expenses		251		164		415		166
Taxes, rates and contributions		203		259		462		155
Amortization and depreciation		158		1,046		1,204		135
Fees and payments for services		123		1,251		1,374		66
Director´s fees		102		19		121		67
Other expenses		49		1,212		1,261		39
Food, beverage and other expenses		31		7,467		7,498		58
Research and development expenses, net				56		56		-
Leases and service charges		25		727		752		15
Allowance for trade and other receivables (charge and recovery)		20		-		20		9
Cost of sales of properties		1		924		925		1
Total expenses by nature		2,046		15,690		17,736		1,507

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Expenses by nature (Continued)

For the period ended March 31, 2016:

	Operations center in Argentina
	Group Costs
	Cost of real estate business		Costs of trading properties		Costs of hotel operations		Total costs		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		377		1		156		534		123		34		691
Maintenance, security, cleaning, repair and others		319		6		37		362		28		2		392
Advertising and other selling expenses		229		-		-		229		-		22		251
Taxes, rates and contributions		97		2		-		99		11		93		203
Amortization and depreciation		141		-		8		149		8		1		158
Fees and payments for services		6		-		11		17		95		11		123
Director´s fees		-		-		-		-		102		-		102
Other expenses		11		-		19		30		17		2		49
Food, beverage and other expenses		-		-		31		31		-		-		31
Leases and service charges		20		1		-		21		2		2		25
Allowance for trade and other receivables (charge and recovery)		-		-		-		-		-		20		20
Cost of sales of properties		-		1		-		1		-		-		1
Total expenses by nature		1,200		11		262		1,473		386		187		2,046

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

26.	Expenses by nature (Continued)

	Operations center in Israel
	Group Costs
	Cost of products (supermarkets)		Costs of services and telecommunications		Costs of hotel operations		Costs of real estate business		Costs of communication equipment		Costs of tourism services		Total costs		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		297		582		-		15		7		100		1,001		171		938		2,110
Maintenance, security, cleaning, repair and others		-		122		-		137		-		33		292		7		156		455
Advertising and other selling expenses		-		30		-		4		-		11		45		-		119		164
Taxes, rates and contributions		-		-				63		-		59		122		-		137		259
Amortization and depreciation		152		441		-		260		7		37		897		28		119		1,044
Fees and payments for services		-		1,102		-		-		-		19		1,121		41		89		1,251
Director´s fees		-		-		-		-		-		-		-		19		-		19
Other expenses		92		167		11		-		-		439		709		82		423		1,214
Food, beverage and other expenses		7,467		-		-		-		-		-		7,467		-		-		7,467
Research and development expenses, net		-		-		-		-		4		-		4		52		-		56
Leases and service charges		-		330		-		-		-		7		337		19		371		727
Cost of sales of properties		-		-		-		96		828		-		924		-		-		924
Total expenses by nature		8,008		2,774		11		575		846		705		12,919		419		2,352		15,690

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

26.	Expenses by nature (Continued)

For the period ended March 31, 2015:

	Operations center in Argentina
	Group Costs
	Cost of sale and development		Costs of rental and services		Costs of hotel operations		Total costs		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		1		289		121		411		86		22		519
Maintenance, security, cleaning, repair and others		4		231		26		261		14		2		277
Advertising and other selling expenses		-		137		5		142		-		24		166
Taxes, rates and contributions		2		77		-		79		7		69		155
Amortization and depreciation		-		121		9		130		5		-		135
Fees and payments for services		-		5		2		7		54		5		66
Director´s fees		-		-		-		-		67		-		67
Other expenses		-		19		-		19		19		1		39
Food, beverage and other expenses		-		-		48		48		6		4		58
Leases and service charges		1		10		-		11		3		1		15
Allowance for trade and other receivables (charge and recovery)		-		-		-		-		-		9		9
Cost of sales of properties		1		-		-		1		-		-		1
Total expenses by nature		9		889		211		1,109		261		137		1,507

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27.	Other operating results, net

	March 31, 2016			March 31, 2015
	Operations center in Argentina	Operations center in Israel	Total	Operations center in Argentina
Gain from disposal of equity interest in an associate	4	-	4	22
Expenses related to transfers of investment property to subsidiaries (1)	-	-	-	(110)
Reversal of currency translation adjustment (2)	148	-	148	188
Donations	(29)	-	(29)	(14)
Judgments and other contingencies (3)	(6)	(42)	(48)	(17)
Others	(15)	23	8	(6)
Total other operating results, net	102	(19)	83	63

(1)

On December 22, 2014, IRSA conveyed title on the properties located in Bouchard 710, Suipacha 652, Torre BankBoston, República Building, Intercontinental Plaza and the plot of land next to the latter, to its subsidiary IRSA CP, which as from such date will continue to operate such properties. This transfer has had no effects whatsoever in the consolidated financial statements of the Group other than the expenses and taxes associated to the transfer.

(2)

As of March 31, 2016, Ps. 144 million correspond to the reversal of currency translation adjustment before business combination with IDBD and Ps. 5 million to the reversal of the translation reserve generated in Rigby following the partial repayment of principal of the company. As of March 31, 2015, corresponds to the reversal of the translation reserve generated in Rigby following the partial repayment of principal of the company.

(3)	Includes legal costs and expenses.

28.	Financial results, net

	March 31, 2016			March 31, 2015
	Operations center in Argentina	Operations center in Israel	Total	Operations center in Argentina
Finance income:
- Interest income	89	204	293	44
- Foreign exchange gains	592	45	637	28
- Dividends income	22	48	70	12
Total finance income	703	297	1,000	84
Finance costs:
- Interest expense	(716)	(829)	(1,545)	(484)
- Foreign exchange losses	(2,497)	-	(2,497)	(301)
- Other finance costs	(136)	(119)	(255)	(53)
Subtotal finance costs	(3,349)	(948)	(4,297)	(838)
Less: Capitalized finance costs	-	13	13	13
Total finance costs	(3,349)	(935)	(4,284)	(825)
Other financial results:
- Fair value gain (loss) of financial assets and liabilities at fair value through profit or loss, net	401	(1,124)	(723)	(3)
- Gain (loss) on derivative financial instruments, net	973	(56)	917	(54)
- Loss from repurchase of non-convertible notes	(159)	-	(159)	-
Total other financial results	1,215	(1,180)	35	(57)
Total financial results, net	(1,431)	(1,818)	(3,249)	(798)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Employee benefits

Operations center in Argentina

Equity Incentive Plan

The Group incurred a charge of Ps. 16.8 million and Ps. 24.1 million for the nine-month periods ended March 31, 2016 and 2015, respectively, related to the awards granted under the Equity Incentive Plan.

Movements in the number of shares outstanding under the Equity Incentive Plan are as follows:

	March 31, 2016			June 30, 2015
At the beginning		4,439,507			5,786,388
Additions		-			18,734
Granted		(702,541	)		(680,047	)
Canceled		(94,618	)		(685,568	)
At the end		3,642,348			4,439,507

Operations center in Israel

Benefits to hired employees include post-employment benefits, retirement benefits, share-based plans and other short and long term benefits. The Group’s liabilities in relation to severance pay and/or retirement benefits of Israeli employees are calculated in accordance with Israeli laws.

	March 31, 2016
Present value of unfunded obligations		403
Present value of funded obligations		1,652
Total Present value of defined benefits obligations (post-employment)		2,055
Fair value of plan assets		(1,444	)
Recognized liability for defined benefits obligations		611
Liability for other long term benefits		43
Subtotal		654
Assets designed for payment of benefits for employees		(4	)
Total		650

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Employee benefits (Continued)

Plans associated to certain key members of management

IDBD, through its subsidiaries, has granted stock incentive plans to key members of management. In April 2016, some modifications have been introduced to the plans as regards exercise prices for each of the five tranches of options, thus establishing a range of NIS 9.5 to NIS 12.5. The share price at the time of approval was NIS 7.73.

30.	Related parties transactions

As mentioned in Note 4, on October 11, 2015, the Group took over IDBD. Before takeover, the Group had entered into certain transactions with IDBD as associate, mainly related to the subscription of warrants and/or capital contributions, but had not conducted commercial transactions. See Note 4 for further information related to investment in IDBD.

Below are the most significant transactions conducted with related parties in each of the operations centers, their balances as of March 31, 2016 and June 30, 2015 and the corresponding income for each of the reporting periods in these financial statements:

Operations center in Argentina:

1.	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, the Group, or its related parties, including its parent company, in certain occasions purchases and/or hires services which later sells and/or recovers for companies of the Group or other related parties, based upon their actual utilization.

As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net payables balances in the amount of Ps. 4 and net receivables of Ps. 6, respectively, with its controlling company, associates, joint ventures and other related parties, related to sales of advertising seconds to third parties, sales of inputs and materials, and reimbursement of expenses for acquired and/or lent services, among others. These operations do not entail profits to the company recovering expenses, for the same are carried out as per the cost value of the goods or services acquired.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related parties transactions (Continued)

2.	Corporate Service Agreement

On June 30, 2004, the Group and its parent Company, Cresud, entered into a Master Agreement for the Exchange of Corporate Services (“Frame Agreement"), automatically renewable every 24 months for equal periods, unless it is terminated by any of the parties upon prior notice. Given that companies have operating areas with certain common characteristics, the Master Agreement seeks to reduce its incidence on operating performance, leveraging and optimizing the individual efficiencies of each of the companies in the various areas that form part of the operating administration.

As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net payable balances in the amounts of Ps. 47 and Ps. 52, respectively, with its controlling company. For the nine-month period ended March 31, 2016 and 2015, the Group recorded corporate service expenses in the amount of Ps. 88 and Ps. 68, respectively.

3.	Legal services

The Group hires legal services from Estudio Zang, Bergel & Viñes, Our Vice-president, Saúl Zang, and our alternate directors, Juan M. Quintana, Salvador D. Bergel, and D. Pablo Vergara del Carril are members of that law firm.

As of March 31, 2016 and June 30, 2015, the Group maintains net payable balances in the amount of Ps. 1 and Ps. 0.5, respectively, with the Estudio Zang, Bergel & Viñes. For the nine-month period ended March 31, 2016 and 2015, the Group recorded legal services expenses in the amounts of Ps. 4 and Ps. 3, respectively.

4.	Property leases and/or rights of use

The Group normally leases diverse spaces in its Shopping Centers (stores, stands, storage rooms or advertising spaces) to its associates Tarshop and BHSA, and to a lesser extent to other related parties. Lease agreements entered into with associates included similar provisions to those included in agreements with third parties.

Additionally, the Group assigned under a free-use contract certain spaces in some of its shopping centers to Fundación Museo de los Niños, a non-profit organization, to establish the “Museo de los Niños, Abasto” and “Museo de los Niños, Rosario”, to interactive learning centers for children and adults.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related parties transactions (Continued)

The Group, together with its parent company, rent the offices of Eduardo S. Elsztain, property of Isaac Elsztain e Hijos S.C.A. (a company controlled by certain relatives of Eduardo S. Elsztain) and Hamonet S.A. (a company controlled by Fernando A. Elsztain, director of the Group and cousin of Eduardo S. Elsztain), under operating lease contracts, under standard terms and conditions, renewables, expiring in 2017.

Furthermore, the Group leases certain floors and parking space at the Intercontinental Plaza building owned by the Group to its parent company, under operating leases agreements under standard terms and conditions which expires in 2017. The Group also leases certain floors and parking space of its building Suipacha 652 to its associate Tarshop, under operating leases agreements which expires in 2017.

As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net receivable balances in the amount of Ps. 1 and Ps. 2, respectively, with its related parties. The Group recognized income from leases and services provided of Ps. 17 and Ps. 14 for the six-month periods ended March 31, 2016 and 2015, respectively.

5.	Remuneration of the Board of Directors and Top Management

The remuneration of directors for each fiscal year is based on the provisions established by the Law N° 19,550, taking into consideration whether such directors perform technical-administrative functions and depending upon the results recorded by the Company during the fiscal year. Once such amounts are determined, they should be approved by the Shareholders’ Meeting. The members of Top Management are appointed and removed by the Board of Directors, and perform functions in accordance with the instructions delivered by the Board itself.

The remuneration earned by Top Management for their functions consists of an amount that is fixed taking into account the manager's backgrounds, capacity and experience, plus an annual bonus based on their individual performance and the Group's results. Also, they participate in defined contribution and share-based incentive plans.

As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net payable balances in the amount of Ps. 41 in both periods, with Directors and Top Management members. The Group incurred a charge from remuneration to Board of Directors and Top Management of Ps. 102 and Ps. 55 for the nine-month periods ended March 31, 2016 and 2015, respectively.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related parties transactions (Continued)

6.	Financial operations

In the normal course of its activities, the Group enters into diverse loan agreements or credit facilities with related parties. These loans accrue interest at market rates and are cancelable wholly or partially prior to the due date, either in cash and/or through capitalization (conversion into shares), and/or by way of offsetting arrangements involving debit and credit balances existing between the parties.

As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net receivable balances in the amount of Ps. 1,006 and Ps. 3,083, respectively, with related parties, with the most significant balance as of March 31, 2016 being a receivable with Inversiones Financieras del Sur in the amount of Ps. 1,036 (equal to US$ 68.8 million). For the nine-month periods ended March 31, 2016 and 2015, the Group recognized a gain of Ps. 4 and Ps. 10, respectively, from which US$ 3.7 million correspond to the borrowing to IFISA.

In February 2015, the Group, through Dolphin sold 71.39 million IDBD shares to IFISA, at the closing price of NIS 1.39 per share, making a total of NIS 99.23 million, equal to US$ 25.65 million at the exchange rate prevailing on the transaction date thus receiving a payment of US$ 4 million cash with the balance due in February 2016, plus interest at Libor + 3%. On May 9, the parties agreed to extend the expiration date to June 8, 2016, to be automatically renewable every 30 days for a maximum term of 180 days, and increased the rate to 9%. The new expiration date and the change of interest rate were also applied to the financing granted on July 31, 2015. As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net receivable balances in the amount of Ps. 1,036 and Ps. 199, respectively.

In February 2016, Dolphin Netherlands B.V., a subsidiary of Dolphin, entered into an option contract with Inversiones Financieras del Sur S.A. (“IFISA”) whereby Dolphin is granted the right, but not the obligation to acquire 92,665,925 shares of IDB Development Corporation Ltd. held by IFISA at a share price of NIS 1.64 plus an annual interest of 8.5%. The exercise date for the option extends for two years.

The Group, through ERSA and PAMSA, acquired 12,072,900 corporate notes of Cresud, for an aggregate amount of Ps. 109.9 during the fiscal year 2015; and through IRSA CP, ERSA and PAMSA, 15,981,795 for an aggregate amount of Ps.146.6 during this fiscal year. As of March 31, 2016 the balance is Ps. 206 and financial income amounts to Ps. 35.

In June 2015, the Group subscribed Convertible Notes into ordinary shares, issued by BACS for a face value of 100,000,000. As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net receivable balances in the amount of Ps. 116 and Ps. 110.9, respectively. For the nine-month period ended March 31, 2016, the Group recognized a gain of Ps. 15.5.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related parties transactions (Continued)

Donations

Fundación IRSA is a non-profit 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 Group’s 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 founds its activities with the donations made by the Group.

As of March 31, 2016 and 2015, the Group recognized a charge of Ps. 5 and Ps. 3, respectively, corresponding to donations.

8.	Services rendered and received

The Group provides management services to associates, joint ventures and other related parties. As of March 31, 2016 and June 30, 2015, the Group maintains aggregate net receivable balances in the amount of Ps. 4 and Ps. 3, respectively, with related parties. The Group incurred a charge, related to management fees, of Ps. 3 and Ps. 2 for the nine-month periods ended March 31, 2016 and 2015, respectively.

Operations center in Israel:

1.	Remuneration of the Board of Directors and Top Management

The compensation of the Board of Directors is determined in accordance with the resolutions made by the Shareholders’ Meeting. The members of Top Management are appointed and removed by the Board of Directors, and perform functions in accordance with the instructions delivered by the Board itself.

As of March 31, 2016, the Group maintains aggregate net payable balances in the amount of Ps. 12.4 with Directors and Top Management members.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related party transactions (Continued)

2.	Financial operations

As of March 31, 2016, the Group maintains aggregate net receivable balances in the amount of Ps. 2,254 with related parties in this respect, with the most significant being Ps.1,565 related to a loan granted by ELRON to its subsidiary BPEL.

31.	Subsequent events

· On May 9, 2016, IDBD received a letter from the Insurance Commission informing that it ordered the trustee holding Clal shares to sell 5% of those shares. As of the balance sheet date, no action had been taken.

·On April 21, 2016, the Noteholders Meeting decided to apply the acceleration clause on the outstanding balance owed by IDBD to Noteholders (Series I) and the lawyer representing the Noteholders’ Trustee (Series I) demanded payment no later than May 8, 2016. In response, the Company informed the lawyer that it radically rejected the Noteholders’ Meeting decision because it lacked any ground or reason for such decision and reserved the right to start legal actions against the Trustee. The decision by the Noteholders’ Meeting has no legal force until it is confirmed by a competent court. As of the balance sheet date, Noteholders have not filed any request for confirmation with a competent court.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders, President and Directors of

IRSA Inversiones y Representaciones Sociedad Anónima

Legal address: Bolivar 108 – 1° floor

Autonomous City Buenos Aires

Tax Code No. 30-52532274-9

Introduction

We have reviewed the unaudited condensed interim consolidated financial statements of IRSA Inversiones y Representaciones Sociedad Anónima and its subsidiaries (hereinafter “the Company”) which included the unaudited condensed interim consolidated statement of financial position as of March 31, 2016, and the unaudited condensed interim consolidated statements of income and comprehensive income for the nine-month period and three-month period ended March 31, 2016, the unaudited condensed interim consolidated statement of changes in shareholders’ equity and unaudited condensed interim consolidated statement of cash flows for the nine-month period ended March 31, 2016 and selected explanatory notes.

The balances and other information corresponding to the fiscal year ended June 30, 2015 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to those financial statements.

Management responsibility

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with the International Financial Reporting Standards, adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and added by the National Securities Commission (CNV) to its regulations as approved by the International Accounting Standard Board (IASB) and , for this reason, is responsible for the preparation and presentation of the unaudited condensed interim consolidated financial statements above mentioned in the introductory paragraph according to the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34).

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Scope of our review

Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina in Technical Resolution No. 33 of the FACPCE, without modification as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim consolidated financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated statement of financial position, the consolidated statement of income, the consolidated statement of comprehensive income and consolidated statement of cash flow of the Company.

Conclusion

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim consolidated financial statements above mentioned in the introductory paragraph of this report have not been prepared in all material respects in accordance with International Accounting Standard No. 34.

Emphasis paragraph

Without modifying our conclusion, we want to refer to the information included in Note 1 of these unaudited condensed interim consolidated financial statements.

Report on compliance with current regulations

In accordance with current regulations, we report about IRSA Inversiones y Representaciones Sociedad Anónima that:

the unaudited condensed interim consolidated financial statements of IRSA Inversiones y Representaciones Sociedad Anónima are recorded in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)

b)	the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima arise from accounting records carried in all formal respects in accordance with applicable legal provisions;

c)	we have read the Business Summary (“Reseña Informativa”) on which, as regards these matters that are within our competence, we have no observations to make;

d)	at March 31, 2016, the debt of IRSA Inversiones y Representaciones Sociedad Anónima owed in favor of the Argentina Integrated Pension System which arises from accounting records and submissions amounted to Ps. 61,522 which was no callable at that date.

Autonomous City of Buenos Aires, May 12, 2016.

PRICE WATERHOUSE & Co. S.R.L.

(Socio)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Eduardo A. Loiácono

Contador Público (UBA)

C.P.C.E.C.A.B.A. T° 326 F° 94

ABELOVICH, POLANO & ASOCIADOS S.R.L.

(Socio)

C.P.C.E. C.A.B.A. T° 1 F° 30

Noemí I. Cohn

Contador Público (U.B.A.)

C.P.C.E.C.A.B.A. T° 116 F° 135

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Financial Statements as of March 31, 2016 and for the nine-month periods ended March 31, 2016 and 2015

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Financial Position

as of March 31, 2016 and June 30, 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		03.31.16		06.30.15
ASSETS
Non-current Assets
Investment properties		6	507		412
Property, plant and equipment		7	3		3
Trading properties		8	26		11
Intangible assets		9	52		52
Investments in subsidiaries, associates and joint ventures		5	4,172		3,315
Deferred income tax assets		18	202		283
Income tax and minimum presumed income tax ("MPIT")credit			97		100
Trade and other receivables		11	55		2,248
Investments in financial assets		12	100		100
Total Non-current Assets			5,214		6,524
Current Assets
Inventories			1		-
Trading properties		8	1		-
Trade and other receivables		11	2,136		215
Income tax and minimum presumed income tax ("MPIT") credit			43		13
Investments in financial assets		12	19		96
Derivative financial instruments		13	15		-
Cash and cash equivalents		14	73		3
Total Current Assets			2,288		327
TOTAL ASSETS			7,502		6,851
SHAREHOLDERS’ EQUITY
Share capital			575		574
Treasury stock			4		5
Inflation adjustment of share capital and treasury stock			123		123
Share premium			793		793
Additional paid-in capital from treasury stock			16		7
Legal reserve			117		117
Special reserve			4		4
Other reserves		19	320		330
Retained earnings			(675	)	521
TOTAL SHAREHOLDERS’ EQUITY			1,277		2,474
LIABILITIES
Non-Current Liabilities
Trade and other payables		15	185		3
Borrowings		17	1,194		2,819
Provisions		16	28		1
Other Liabilities		5	136		583
Total Non-Current Liabilities			1,543		3,406
Current Liabilities
Trade and other payables		15	156		94
Salaries and social security liabilities			2		2
Borrowings		17	4,523		850
Provisions		16	1		25
Total Current Liabilities			4,682		971
TOTAL LIABILITIES			6,225		4,377
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES			7,502		6,851

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Income

for the nine and three-month periods beginning on July 1st, 2015 and January 1st, 2016 and ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

			Nine months					Three months
	Note			03.31.16		03.31.15			03.31.16		03.31.15
Income from sales, rents and services		20		36		154			5		19
Income from expenses		20		10		49			4		16
Costs		21		(22	)	(68	)		(7	)	(20	)
Gross Profit				24		135			2		15
Gain from disposal of investment properties		6		729		455			-		1
General and administrative expenses		22		(89	)	(73	)		(30	)	(30	)
Selling expenses		22		(21	)	(16	)		(8	)	(7	)
Other operating results, net		24		(10	)	(16	)		(6	)	(11	)
Profit / (Loss) from operations				633		485			(42	)	(32	)
Share of profit of subsidiaries, associates, and joint ventures		5		(490	)	(259	)		52		(133	)
(Loss) / Profit from operations before financial results and income tax				143		226			10		(165	)
Finance income		25		1,567		164			438		130
Finance cost		25		(2,278	)	(530	)		(732	)	(183	)
Other financial results		25		(82	)	(102	)		(12	)	(92	)
Financial results, net		25		(793	)	(468	)		(306	)	(145	)
Loss before income tax				(650	)	(242	)		(296	)	(310	)
Income tax		18		(26	)	(3	)		107		61
Loss for the period				(676	)	(245	)		(189	)	(249	)


Loss per share for the period:
Basic				(1.176	)	(0.426	)		(0.329	)	(0.434	)
Diluted				(1.040	)	(0.426	)		(0.193	)	(0.434	)

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Comprehensive Income

for the nine and three-month periods beginning on July 1st, 2015 and January 1st, 2016 and ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Nine months					Three months
		03.31.16		03.31.15			03.31.16		03.31.15
Loss for the period		(676	)	(245	)		(189	)	(249	)
Items that may be reclassified subsequently to profit or loss:
The Company’s interest in other earnings in relation with companies accounted for under the equity method		8		-			8		-
Currency translation adjustment of subsidiaries, associates, and joint ventures		196		(123	)		(8	)	29
Other comprehensive income (loss) for the period (i)		204		(123	)		-		29
Total comprehensive loss for the period		(472	)	(368	)		(189	)	(220	)

(i) Components of other comprehensive income (loss) have no impact on income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock			Inflation adjustment of Share Capital and Treasury Stock		Share premium		Additional Paid-in Capital from Treasury Stock		Legal reserve		Special reserve (1)		Other reserves (Note 19)			Retained earnings			Total Shareholders’ equity
Balance at June 30, 2015		574		5			123		793		7		117		4		330			521			2,474
Loss for the period		-		-			-		-		-		-		-		-			(676	)		(676	)
Other comprehensive income for the period		-		-			-		-		-		-		-		204			-			204
Total comprehensive income / (loss) for the period		-		-			-		-		-		-		-		204			(676	)		(472	)
Appropriation of retained earnings approved by Shareholders’ meeting held 11.26.15		-		-			-		-		-		-		-		520			(520	)		-
Share of changes in subsidiaries’ equity		-		-			-		-		-		-		-		41			-			41
Tender offer of non-controlling shares		-		-			-		-		-		-		-		(190	)		-			(190	)
Changes in non-controlling interest		-		-			-		-		-		-		-		(445	)		-			(445	)
Reserve for share-based compensation		1		(1	)		-		-		9		-		-		4			-			13
Cumulative translation adjustment for interest held before business combination		-		-			-		-		-		-		-		(144	)		-			(144	)
Balance at March 31, 2016		575		4			123		793		16		117		4		320			(675	)		1,277

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

(1)	Related to CNV General Resolution N° 609/12. See Note 19.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share capital		Treasury Stock		Inflation adjustment of Share Capital and Treasury Stock		Share premium		Legal reserve		Special reserve (1)			Other reserves (Note 19)			Retained earnings			Total Shareholders’ equity
Balance at June 30, 2014		574		5		123		793		117		375			806			(785	)		2,008
Loss for the period		-		-		-		-		-		-			-			(245	)		(245	)
Other comprehensive loss for the period		-		-		-		-		-		-			(123	)		-			(123	)
Total comprehensive loss for the period		-		-		-		-		-		-			(123	)		(245	)		(368	)
Reserve for share-based compensation		-		-		-		-		-		-			18			-			18
Reimbursement of expired dividends		-		-		-		-		-		-			-			1			1
Appropriation of retained earnings approved by Shareholders’ meeting held 11.14.14		-		-		-		-		-		(372	)		(413	)		785			-
Changes in non-controlling interest		-		-		-		-		-		-			16			-			16
Balance at March 31, 2015		574		5		123		793		117		3			304			(244	)		1,675

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

(1) Related to CNV General Resolution N° 609/12. See Note 19.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Statements of Cash Flows

for the nine-month periods ended March 31, 2016 and 2015

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		03.31.16		03.31.15
Operating activities:
Cash (used in) / generated by the operations		14	(120	)	114
Income tax and minimum presumed income tax paid			-		(1	)
Net cash (used in) / generated by operating activities			(120	)	113
Investing activities:
Capital contributions to subsidiaries, associates and joint ventures		5	(2,883	)	(514	)
Additions of investment properties		6	(4	)	(169	)
Proceeds from sale of investment properties			768		560
Additions of property, plant and equipment		7	(1	)	(1	)
Proceeds from transfers of assets to subsidiary			1,676		38
Additions of investments in financial assets			(1,450	)	(1,070	)
Proceeds from sale of investments in financial assets			2,041		1,014
Proceeds from / (payments of) derivative financial instruments			77		(1	)
Interest received			163		-
Loans granted to subsidiaries, associates and joint ventures			-		(2	)
Proceeds from sale of equity interest of associates and joint ventures			75		-
Share-holding decrease / (increase) in equity investees associates			7		(6	)
Dividends received			-		135
Net cash generated by / (used in) investing activities			469		(16	)
Financing activities:
Bank overdrafts, net			436		198
Proceeds from borrowings			72		110
Payment of non-convertible notes			(96	)	-
Dividends paid			(8	)	(48	)
Interest paid			(480	)	(330	)
Payment of borrowings from subsidiaries, associates and joint ventures			-		(3	)
Proceeds from borrowings from subsidiaries, associates and joint ventures			-		15
Repurchase of non-convertible notes			(121	)	-
Reissuance non-convertible notes			7		36
Payment of borrowings			(100	)	(110	)
Net cash (used in) financing activities			(290	)	(132	)
Net Increase / (Decrease) in cash and cash equivalents			59		(35	)
Cash and cash equivalents at the beginning of the year		14	3		43
Foreign exchange gain on cash and cash equivalents			11		-
Cash and cash equivalents at end of period			73		8

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

Eduardo S. Elsztain

President

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information and company’s business

IRSA was founded in 1943, primarily engaged in managing real estate holdings in Argentina since 1991.

IRSA is a corporation incorporated and domiciled in Argentina. The registered office is Bolívar 108, 1st Floor, Autonomous City of Buenos Aires, Argentina.

The Company owns, manages and develops, directly and indirectly through its subsidiaries, a portfolio of office and other rental properties in Buenos Aires. In addition, IRSA through its subsidiaries, associates and joint ventures manages and develops shopping centers and branded hotels across Argentina, and also office properties in the United States of America and Israel. As mentioned in Note 1 to the Unaudited Condensed Consolidated Financial Statements, on October 11, 2015 IRSA acquired control over IDBD. This Israeli company is one of the largest and most significant conglomerates of Israel, which takes part in many markets and sectors of the industry.

These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on May 12, 2016.

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements

2.1.	Basis of preparation

The Unaudited Condensed Interim Financial Statements have been prepared in accordance with the Technical Resolution N° 26 of the Argentine Federation of Professional Councils of Economic Science and with IAS 34 “Interim Financial Reporting”. Furthermore, some additional issues were included as required by the Law N° 19,550 and/or regulations of the CNV, including supplementary information provided in the last paragraph of section 1, Chapter III, Title IV of General Ruling 622/13 of the CNV. Such information is included in the Notes to these Unaudited Condensed Interim Separate Financial Statements according to IFRS.

These Financial Statements should be read together with the annual separate financial statements of the Company as of June 30, 2015 prepared in accordance with the Technical Resolution N° 26. These Unaudited Condensed Interim Separate Financial Statements are presented in Argentine Pesos.

These Unaudited Condensed Interim Separate Financial Statements corresponding to the nine and three-month periods ended March 31, 2016 and 2015 have not been audited. The Company’s Management believes they include all necessary adjustments to fairly present the results of each period. The Company’s nine and three-month periods ended March 31, 2016 and 2015 results do not necessarily reflect the proportion of the Company’s full-year results.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)

2.2. Significant accounting policies

The principal accounting policies adopted for the preparation of these Unaudited Condensed Interim Financial Statements are consistent with those applied in the preparation of the information under RT 26 as of June 30, 2015, and are based on those IFRS in force as of June 30, 2015 (except for the accounting of investments in subsidiaries, associates and joint ventures, which are accounted for under the equity method as required in RT 26). In addition, the most significant accounting policies are described in the Annual Separate Financial Statements and in Note 2 to the Unaudited Consolidated Financial Statements as of March 31, 2016.

2.3. Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimates 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 period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the main significant judgments made by Management in applying the Company’s accounting policies and the major sources of uncertainty were the same that the Company used in the preparation of financial statements as of and for the fiscal year ended June 30, 2015, save for changes in accrued income tax, provision for legal claims, allowance for bad debts and accrued supplementary rental.

2.4.	Comparative Information

Balance items as of March 31, 2015 and June 30, 2015 shown in these financial statements for comparative purposes arise from financial statements then ended. Certain reclassifications have been made in order to present figures comparatively with those of this period.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

3. Acquisition and disposals

See description of acquisitions and disposals made by the Company and/or its subsidiaries for the nine-month period ended March 31, 2016 in Note 4 to the Unaudited Condensed Interim Consolidated Financial Statements. Among the acquisitions, it is described the takeover of IDBD.

Company’s Merger and Spin-off – Merger with Solares de Santa María S.A. (Solares), Unicity S.A. (Unicity) and Spin-off – Merger with E-Commerce Latina S.A. (ECLSA)

Pursuant to the previous merger and spin-off commitment undertaken on September 16, 2015, the following transactions were agreed upon:

a) the “Takeover Merger” with Solares, where Solares would be the acquired or target company and IRSA would be the acquirer;

b) the “Takeover Merger” with Unicity, where Unicity would be the acquired or target company and IRSA would be the acquirer;

c) the spin-off of a 7.96% ECLSA equity, which accounts for a 11.39% equity interest in Solares, in order for that interest to be subsequently merged into IRSA. ECLSA shall retain the ownership of all of its other rights, obligations, assets and liabilities.

That was approved in Shareholders' Meeting held on November 26, 2015.

The following table summarizes the effect the merger, and the spin-off-merger would have had on the Company’s separate balance sheet as of June 30, 2015.

Caption	Issued Financial Statements as of June 30, 2015 Ps.	Solares as of June 30, 2015 Ps.	Unicity as of June 30, 2015 Ps.	ECLSA spin-off assets as of June 30, 2015 Ps.	Eliminations / Reclassifications as of June 30, 2015 Ps.	Merged Financial statements Ps.
Non-current Assets	6,524	321	30	21	(365)	6,531
Current Assets	327	1	-	-	(7)	321
Total Assets	6,851	322	30	21	(372)	6,852
Shareholders’ Equity	2,474	314	30	21	(365)	2,474
Non-Current Liabilities	3,406	-	-	-	-	3,406
Current Liabilities	971	8	-	-	(7)	972
Total Liabilities	4,377	8	-	-	(7)	4,378

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4. Financial risk management and fair value estimates

The Company’s activities are exposed to a variety of financial risks: market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.

The Unaudited Condensed Interim Financial Statements do not include all the information and disclosures of the risk management, so they should be read together with the annual separate financial statements as of June 30, 2015. There have been no changes in the risk management or risk management policies applied by the Company since the end of the annual fiscal year, except for those financial risks incorporated by IDBD's business combination. See Note 5 to the Unaudited Condensed Interim Consolidated Financial Statements.

5.	Information about principal subsidiaries, associates and joint ventures

The Company conducts its business through several operating and holding subsidiaries, associates and joint ventures. Its main subsidiaries include IRSA CP and Tyrus.

As indicated in Note 1 to the Unaudited Condensed Consolidated Financial Statements, the Company has an indirect participation in IDBD through Tyrus. Factors namely (i) IDBD’s current financial position and need for financing to honor its financial debt and other commitments, (ii) the renegotiation underway with financial creditors, and (iii) the term set by Israel’s governmental authorities to sell the equity interest in Clal and the potential effects of such sale, in particular, on its market value, raise significant uncertainties as to IDBD’s capacity to continue as a going-concern.

Its main associates include BHSA and New Lipstick. Its main joint ventures include Cyrsa, Puerto Retiro and Baicom.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5.	Information about principal subsidiaries, associates and joint ventures (Continued)

Set out below is the summarized financial information for investments in subsidiaries, associates and joint ventures for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015:

Subsidiaries, Associates and Joint ventures

	March 31, 2016			June 30, 2015
Beginning of the period / year		2,732			3,441
Capital contribution (i)		2,883			1,378
Changes of non-controlling interest		(547	)		22
Merger–spin-off (ii)		(165	)		-
Share of (loss) / profit, net		(490	)		719
Translation adjustment		53			(93	)
Dividends distribution (iii)		(286	)		(455	)
Offer to purchase non-controlling shares		(190	)		-
Capital reduction (iv)		-			(123	)
Reimbursement of expired dividends		-			1
Other reserves		49			-
Intergroup transactions from transfer of assets		-			(2,158	)
Disposal of subsidiaries, associates and joint ventures		(3	)		-
End of the period / year (v)		4,036			2,732

(i)

During the period capital contributions were made to Tyrus S.A. and Manibil S.A. for Ps. 2,873 and Ps. 10, respectively. During the fiscal year ended as of June 30, 2015 capital contributions were made to Manibil S.A., Tyrus S.A., Solares and Efanur S.A. for Ps. 7, Ps. 1,288, Ps. 1 and Ps. 82 respectively.

(ii)	See Note 3.

(iii)

During the period Palermo Invest S.A., Inversora Bolivar S.A., ECLSA, CYRSA and IRSA CP distributed dividends to the Company for an amount of Ps. 3, Ps. 3, Ps. 3, Ps. 6 and Ps. 271, respectively. During the year ended June 30, 2015, IRSA CP, Cyrsa S.A., BHSA, Inversora Bolivar S.A. and ECLSA, distributed dividends to the company for an amount of Ps. 418, Ps. 31, Ps. 2, Ps. 2, and Ps. 2, respectively.

(iv)	During the year ended June 30, 2015, Cyrsa S.A. and Nuevas Fronteras S.A. made a capital reduction to the Company in the amount of Ps. 111 and Ps. 12, respectively.

(v)

As of March 31, 2016 and June 30, 2015 includes Ps. 136 and Ps. 583, respectively, corresponding to equity interest in IRSA CP, included in Other liabilities non-current. Even though the Company has positive financial position and income, under applicable accounting standards, the Company has recorded an adjustment to consolidated income items included in the asset balance of the subsidiary (transferred to this as part of the transaction indicated in Note 3 to the Annual Financial Statements), resulting in a negative accounting exposure. This effect will be reverting in future fiscal years by way of an amortization over the residual useful life of the real property transferred and/or by total or partial disposition of those assets.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Investment properties

Changes in Company’s investment properties for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Rental properties			Undeveloped parcel of lands			Properties under development		Total
At July 1st, 2014:
Costs		803			119			-		922
Accumulated depreciation		(185	)		-			-		(185	)
Residual value		618			119			-		737
Year ended June 30, 2015:								-
Additions		217			-					217
Transfers of property, plant and equipment		6			-			-		6
Disposals		(533	)		(1	)		-		(534	)
Depreciation (i)		(14	)		-			-		(14	)
Residual value at the year-end		294			118			-		412
At June 30, 2015:
Costs		329			118			-		447
Accumulated depreciation		(35	)		-			-		(35	)
Residual value		294			118			-		412
Period ended March 31, 2016:
Additions		-			4			-		4
Additions as a result of the merger (ii)		13			159			-		172
Disposals		(60	)		(3	)		-		(63	)
Transfers (iii)		-			(114	)		98		(16	)
Depreciation (i)		(2	)		-			-		(2	)
Residual value at period-end		245			164			98		507
At March 31, 2016:
Costs		253			164			98		515
Accumulated depreciation		(8	)		-			-		(8	)
Residual value		245			164			98		507

(i)	Depreciation charges of investment properties were included in “Costs” in the Statements of Income (Note 22).

(ii)

See Note 3.

(iii)

Corresponds to transfers within investment properties and/or trading properties.

The following amounts have been recognized in the statement of income:

	March 31, 2016			March 31, 2015
Rental and service income		36			154
Income from collected expenses		10			49
Rental properties maintenance and operation		(16	)		(64	)
Maintenance of undeveloped land		(5	)		(2	)
Gain from disposal of investment properties		729			455

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6. Investment properties (Continued)

The following is a detailed summary of the investment properties of the Company by type as of March 31, 2016 and June 30, 2015.

	Net book amount
Name	March 31, 2016	June 30, 2015
Office building and Other rental properties portfolio:
Bouchard 551	7	8
Dique IV	-	52
Libertador 498	4	4
Maipú 1300	5	14
Constitución 1111	1	1
La Adela	215	215
Santa María del Plata	13	-
Total Office and Other rental properties portfolio	245	294
Undeveloped Parcels of land:
Catalinas Norte	-	109
Pilar	2	2
Santa María del Plata	158	-
Others	4	7
Total of undeveloped parcels of land	164	118
Properties under development:
Catalinas Norte	98	-
Total Properties under development	98	-
Total	507	412

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7. Property, plant and equipment

Changes in Company’s property, plant and equipment for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	March 31, 2016
At July 1st, 2014:
Costs		34
Accumulated depreciation		(26	)
Residual value		8
Year ended June 30, 2015:
Additions		1
Transfers to investment properties		(5	)
Depreciation (i)		(1	)
Residual value at the year end		3
At June 30, 2015:
Costs		29
Accumulated depreciation		(26	)
Residual value		3
Period ended March 31, 2016:
Additions		1
Depreciation (i)		(1	)
Residual value at period-end		3
At March 31, 2016:
Costs		30
Accumulated depreciation		(27	)
Residual value		3

(i)	Depreciation charges of property, plant and equipment were included in “Cost” and “General and administrative expenses” in the statement of income (Note 22).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8. Trading properties

Changes in the Company’s trading properties for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Completed properties		Properties under development		Total
At July 1st, 2014		3		8		11
At June 30, 2015		3		8		11
Transfers (i)		-		16		16
At March 31, 2016		3		24		27

(i)

Corresponds to transfers from investment properties.

The following is a detailed summary of the properties for sale of the Company by type as of March 31, 2016 and June 30, 2015:

	Book Values
Description	March 31, 2016		June 30, 2015
Properties under development:
Pereiraola		8		8
Catalinas Norte		16		-
Total properties under development		24		8
Completed properties:
Abril		3		3
Total completed properties		3		3
Total		27		11

	March 31, 2016		June 30, 2015
Net book amount
Non-current		26		11
Current		1		-
Total		27		11

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

9. Intangible assets

Changes in Company’s intangible assets for the nine-month period ended March 31, 2016 and for the year ended June 30, 2015 were as follows:

	Right to receive future units under barter agreements (i)		Others			Total
At July 1st, 2014:
Costs		52		7			59
Accumulated depreciation		-		(2	)		(2	)
Residual value		52		5			57
Year ended June 30, 2015:
Disposals		-		(5	)		(5	)
Residual value at the year-end		52		-			52
At June 30, 2015:
Costs		52		2			54
Accumulated depreciation		-		(2	)		(2	)
Residual value		52		-			52
Period ended March 31, 2016:
Book amount at the beginning of the year		52		-			52
Residual value at period-end		52		-			52
At March 31, 2016:
Costs		52		2			54
Accumulated depreciation		-		(2	)		(2	)
Residual value		52		-			52

(i)	As of March 31, 2016 and June 30, 2015 receivables in kind representing the right to receive residential apartments in the future by way of barter agreements, are included for an amount of Ps. 52 (see Note 38 to the Annual Consolidated Financial Statements as of June 30, 2015).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Financial instruments by category

Determination of fair values

See determination of fair value in Note 14 to the Unaudited Condensed Interim Consolidated Financial Statements.

The following tables presents the financial assets and financial liabilities of the Company that are measured at fair value as of March 31, 2016 and June 30, 2015 and their allocation to the fair value hierarchy:

	March 31, 2016
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Mutual funds		2		-		-		2
- Government bonds		1		-		-		1
- Derivative financial instruments		-		15		-		15
Total assets		3		15		-		18

	June 30, 2015
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Mutual funds		37		-		-		37
- Related parties bonds (Note 27)		37		-		-		37
- Government bonds		22		-		-		22
Total assets		96		-		-		96

The derivative financial instruments are classified as Level 2 since their fair value is calculated under the discounted cash flow method. The main parameter used in that model is interest rate futures (Note 13).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Financial instruments by category (Continued)

When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Company uses a range of valuation models for the measurement of Level 2 instruments, details of which may be obtained from the following table:

Description		Pricing model		Pricing method		Parameters
Foreign currency-contracts		Present value method		Theoretical price		Money market curve, interest curves; foreign exchange curve

11.	Trade and other receivables

Company’s trade and other receivables, as of March 31, 2016 and June 30, 2015 are as follows:

	Note		March 31, 2016			June 30, 2015
Non-current
Sale, leases and services receivable				-			1
Receivables from the sale of properties		27		30			2,239
Loans granted		27		-			4
Total non-current trade receivables				30			2,244
Prepaid expenses				14			-
Trade receivables of joint ventures		27		6			3
VAT receivables				5			-
Others				-			1
Total non-current other receivables				25			4
Total non-current trade and other receivables				55			2,248
Current
Leases and services receivables				21			36
Receivables from the sale of properties		27		1,886			89
Overdue debtors and debtors under legal proceedings				12			8
Less: Allowance for trade accounts receivables				(15	)		(10	)
Total current trade receivables				1,904			123
Tax receivables				9			6
Prepaid expenses				3			5
Expenses and services to recover		27		124			77
Advance payments				4			3
Receivables from the sale of shares				82			-
Dividends		27		3			-
Loans granted		27		4			-
Advances to directors		27		3			-
Others				-			1
Total current other receivables				232			92
Total current trade and other receivables				2,136			215
Total trade and other receivables				2,191			2,463

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

11.	Trade and other receivables (Continued)

Movements on the Company’s allowance for trade and other receivables are as follows:

	March 31, 2016			June 30, 2015
Beginning of the period /year		10			8
Charges for the period / year		6			3
Unused amounts reversed		(1	)		(1	)
End of the period / year		15			10

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 22). Amounts charged to the allowance account are generally written off, when there is no expectation of recovering additional cash.

12.	Investments in financial assets

Company’s investments in financial assets as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016		June 30, 2015
Non-current
Financial assets at amortized cost
Related parties bonds (Note 27)		100		100
Total non-current investments in financial assets		100		100
Current
Financial assets at fair value
Mutual funds		2		37
Related parties bonds (Note 27)		-		37
Government bonds		1		22
Financial assets at amortized cost
Related parties bonds (Note 27)		16		-
Total current investments in financial assets		19		96
Total investments in financial assets		119		196

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

13.	Derivative financial instruments

Company’s derivative financial instruments as of March 31, 2016 and June 30, 2015 are as follows:

	March 31, 2016		June 30, 2015
Assets
Current
Forward exchange contracts		15		-
Total current assets		15		-
Total derivative financial instruments		15		-

As part of the foreign exchange risk management, the Company had negotiated long positions forward exchange agreements for the amount of US$ 14.15, at an average price of Ps. 11 per US$ 1 and some short positions forward exchange agreements for the amount of US$ 10.15, at an average price of Ps. 15.82 per US$ 1. As of March 31, 2016 the gain generated by these futures amounted to Ps. 119 and was booked in Financial results, net under the line Gain (loss) on derivative financial instruments, net.

14.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of March 31, 2016 and June 30, 2015:

	March 31, 2016		June 30, 2015
Cash at bank and on hand		73		3
Total cash and cash equivalents		73		3

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Cash flow information (Continued)

Following is a detailed description of cash flows generated by the Company’s operations for the nine-month periods ended March 31, 2016 and 2015:

	Note		March 31, 2016			March 31, 2015
Loss for the period				(676	)		(245	)
Adjustments for:
Income tax		18		26			3
Depreciation and amortization		22		3			15
Gain from disposal of investment properties		6		(729	)		(455	)
Gain from disposal of trading properties				-			(2	)
Gain from disposal of associates		24		(3	)		-
Loss from repurchase of Non-Convertible Notes		25		147			4
Share-based compensation plan				-			7
Changes in fair value of investments in financial assets		25		54			97
(Gain) / loss from derivative financial instruments		25		(119	)		1
Interest expense, net		25		236			234
Provisions and allowances				9			14
Share of profit from subsidiaries, associates and joint ventures		5		490			259
Unrealized foreign exchange loss, net				443			124
Decrease in trading properties				-			2
Increase in trade and other receivables				(35	)		(1	)
Increase in trade and other payables				34			63
Decrease in salaries and social security liabilities				-			(4	)
Decrease in provisions				-			(2	)
Net cash (used in) / generated by operating activities				(120	)		114

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Cash flow information (Continued)

Additional information	03.31.16	03.31.15
Changes in non-controlling interest	451	16
Reimbursement of expired dividends	-	1
Reserve for share-based compensation	64	18
Cumulative translation adjustment	52	123
Increase in investments in financial assets through an increase in borrowings	229	7
Increase in investments in financial assets through a decrease in trade and other receivables	143	3
Decrease in investment in subsidiaries, associates and joint ventures through a decrease in borrowings from subsidiaries, associates and joint ventures	-	157
Increase in investment properties through a decrease in financial assets	-	48
Receivables from the sale of shares of subsidiaries	81	-
Other reserves	49	-
Reserve for tender offer to non-controlling shareholders	190	-
Use of tax loss carryforwards	73	-
Increase in investments in financial assets through an increase in trade and other payables	180	-
Decrease in dividends receivables through a decrease in borrowings granted to subsidiaries	248	-
Decrease in dividends receivables through a decrease in trade payables	36	-
Transfer of investment properties through an increase in trading properties	16	-
Increase in tax receivables through a decrease in derivative instruments	27	-
Decrease in investments in financial assets through a decrease in borrowings obtained from subsidiaries, associates and joint ventures	-	7
Increase in borrowings granted to subsidiaries, associates and joint ventures through a decrease in investment in financial assets	-	3
Decrease in trade and other receivables through an increase in investments in financial assets	-	7
Increase in investment in subsidiaries, associates and joint ventures through a decrease in borrowings granted to subsidiaries, associates and joint ventures	-	537

Sale of properties to IRSA CP	03.31.16	03.31.15
Gain from disposal to IRSA CP	-	2,164
Investment properties	-	472
Value of disposal assets	-	472
Gain from disposal to IRSA CP	-	2,636
Trade and other receivables	-	(2,292	)
Investment in financial assets	-	(86	)
Borrowings	-	(169	)
Total consideration paid not affecting funds	-	(2,547	)
Cash	-	89

	03.31.16		03.31.15
Balances added as a result of the merger
Assets
Trade and other receivables	5		-
Investments in subsidiaries, associates and joint ventures	165		-
Investment properties	(171	)	-
Total Assets	(1	)	-
Liabilities
Borrowings	1		-
Total Liabilities	1		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.	Trade and other liabilities

Company’s trade and other payables as of March 31, 2016 and June 30, 2015 are as follows:

	Note		March 31, 2016		June 30, 2015
Non-current
Tax amnesty plan for payable taxes				2		3
Customers advances				180		-
Other tax payables				1		-
Tax on shareholders’ personal assets				2		-
Total non-current trade and other payables				185		3

Current
Trade payables		27		81		51
Invoices to be received				19		10
Customers advances				6		7
Sales, rent and services payments received in advance				4		3
Tenant deposits				1		1
Total current trade payables				111		72
Dividends payable to non-controlling shareholders				-		9
Tax on shareholders’ personal assets				4		2
Long-term incentive plan		27		31		8
Others				10		3
Total current other payables				45		22
Total current trade and other payables				156		94
Total trade and other payables				341		97

16.	Provisions

The table below shows the movements in Company's provisions:

	Labor, legal and other claims			Total
At June 30, 2015		26			26
Additions		5			5
Decreases		(2	)		(2	)
At March 31, 2016		29			29

The breakdown of total current and non-current provisions is as follows:

	March 31, 2016		June 30, 2015
Non-current		28		1
Current		1		25
		29		26

22.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

17.	Borrowings

Company’s borrowings as of March 31, 2016 and June 30, 2015 were as follows:

									Book value
	Secured / unsecured	Currency	Fixed Rate / Floating	Effective interest rate %			Nominal value of share capital		March 31, 2016		June 30, 2015
Non-current
IRSA NCN due 2017 (Note 27)	Unsecured	US$	Fixed		8.50	%		150		-		1,355
IRSA NCN due 2020	Unsecured	US$	Fixed		11.50	%		150		1,038		1,345
IRSA NCN due 2017	Unsecured	Ps.	Floating	Badlar + 450 points				11		-		11
Non-current borrowings										1,038		2,711
Related parties (Note 27) (1)										156		108
Total non-current borrowings										1,194		2,819
Current
IRSA NCN due 2017	Unsecured	Ps.	Floating	Badlar + 450 points				11		11		-
IRSA NCN due 2017 (Note 27)	Unsecured	US$	Fixed		8.50	%		150		2,240		48
IRSA NCN due 2020	Unsecured	US$	Fixed		11.50	%		150		1,321		70
IRSA NCN due 2015	Unsecured	Ps.	Floating	Badlar + 395 points				209		-		214
Bank overdrafts	Unsecured	Ps.	Floating		-			-		796		352
Bank loans	Unsecured	Ps.	Fixed		23	%		100		-		100
Current borrowings										4,368		784
Related parties (Note 27) (1)										155		66
Total current borrowings										4,523		850
Total borrowings										5,717		3,669

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

17. Borrowings (Continued)

(1)	Related parties breakdown

Book value

Secured / unsecured

Currency

Fixed Rate / Floating

Effective

interest rate %

Nominal value

March 31,

2016

June 30,

2015

Non-current

Inversora Bolivar S.A.

Unsecured

Ps.

Floating

Badlar

Nuevas Fronteras S.A.

Unsecured

Ps.

Floating

Badlar

Cyrsa S.A.

Unsecured

Ps.

Floating

Badlar

Ritelco S.A

Unsecured

US$

Floating

Libor 3m + 200 points

121

Total non-current related parties borrowings

156

108

Current

Inversora Bolivar S.A.

Unsecured

Ps.

Floating

Badlar

Cyrsa S.A.

Unsecured

Ps.

Floating

Badlar

Nuevas Fronteras.S.A.

Unsecured

Ps.

Floating

Badlar

IRSA CP

Unsecured

US$

Fixed

Libor 12m + 300 points

ECLSA

Unsecured

Ps.

Floating

Badlar

Ritelco S.A.

Unsecured

Ps.

Floating

Badlar

Ritelco S.A.

Unsecured

US$

Floating

Libor 3m + 200 points

Ritelco S.A.

Unsecured

US$

Fixed

4.237%

Total current related parties borrowings

155

Total related parties borrowings

311

174

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Current and deferred income tax

The details of the provision for the Company’s income tax are as follows:

	March 31, 2016		March 31, 2015
Current income tax		8		186
Deferred income tax		18		(183	)
Income tax		26		3

The gross movement on the deferred income tax account is as follows:

	March 31, 2016			June 30, 2015
Beginning of the period / year		283			328
Use of tax loss carryforwards		(8	)		(157	)
Income tax expense		(18	)		112
Changes of non-controlling interest		(55	)		-
End of period / year		202			283

Below is a reconciliation between income tax expense and the amount that would arise using the income tax rate applicable to Profit Before Income Tax for the nine-month periods ended March 31, 2016 and 2015:

	March 31, 2016			March 31, 2015
Net income at tax rate		(228	)		178
Permanent differences:
Share of profit / (loss) from subsidiaries, associates and joint ventures		250			(169	)
Non-deductible items and others		4			(6	)
Income tax expense		26			3

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

19.

Equity

The breakdown and explanation of shareholders’ equity has not changed from June 30, 2015, and should therefore be read in Note 25 to the annual financial statements.

Company’s other reserves as of March 31, 2016 and 2015 were as follows:

	Cost of treasury stock			Changes from non-controlling interest			Reserve for share-based compensation			Reserve for future dividends		Cumulative translation adjustment			Other reserves from subsidiaries		Total other reserves
Balance at July 1st, 2015		(34	)		(6	)		64			-		306			-		330
Other comprehensive income for the period		-			-			-			-		196			8		204
Total comprehensive income for the period		-			-			-			-		196			8		204
Appropriation of retained earnings approved by Shareholders’ meeting held 11.26.15		-			-			-			520		-			-		520
Share of changes in subsidiaries’ equity		-			-			-			-		-			41		41
Offer to purchase non-controlling shares		-			(190	)		-			-		-			-		(190	)
Changes from non-controlling interest		-			(445	)		-			-		-			-		(445	)
Currency translation adjustment for interest held before business combination		-			-			-			-		(144	)		-		(144	)
Reserve for share-based compensation		5			-			(1	)		-		-			-		4
Balance at March 31, 2016		(29	)		(641	)		63			520		358			49		320

	Cost of treasury stock			Changes from non-controlling interest			Reserve for share-based compensation		Reserve for new developments			Cumulative translation adjustment			Total other reserves
Balance at July 1st, 2014		(38	)		(21	)		53		413			399			806
Other comprehensive loss for the period		-			-			-		-			(123	)		(123	)
Total comprehensive loss for the period		-			-			-		-			(123	)		(123	)
Distribution of retained earnings approved by Shareholders’ meeting held 11.14.14		-			-			-		(413	)		-			(413	)
Reserve for share-based compensation		-			-			18		-			-			18
Changes from non-controlling interest		-			16			-		-			-			16
Balance at March 31, 2015		(38	)		(5	)		71		-			276			304

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.

Revenue

	March 31, 2016		March 31, 2015
Rental and scheduled rent increases		34		146
Property management fee		2		4
Others		-		1
Rental and service income		36		151
Sale of trading properties		-		3
Total income from sales, rents and services		36		154
Expenses		10		49
Total revenues		46		203

21.

Costs

	March 31, 2016		March 31, 2015
Costs of rental and services		16		64
Cost of sales and development		6		4
Total cost of property operations		22		68
Total costs		22		68

22.	Expenses by nature

The Company disclosed expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.

The following tables provide the additional required disclosure of expenses by nature and their relationship to the function within the Company.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

22. Expenses by nature (Continued)

For the period ended March 31, 2016:

	Costs
	Cost of rental and services		Cost of sale and development		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		3		1		42		6		52
Director´s fees		-		-		18		-		18
Fees and payments for services		-		-		14		1		15
Taxes, rates and contributions		2		2		-		7		11
Maintenance, security, cleaning, repairs and others		6		3		1		-		10
Traveling, transportation and stationery		-		-		7		-		7
Allowances for trade and other receivables (charge and recovery, net)		-		-		-		5		5
Leases and service charges		1		-		3		-		4
Public services and others		2		-		2		-		4
Amortization and depreciation		2		-		1		-		3
Advertising and others selling expenses		-		-		-		2		2
Bank charges		-		-		1		-		1
Total expenses by nature		16		6		89		21		132

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

22. Expenses by nature (Continued)

For the period ended March 31, 2015:

	Costs
	Cost of rental and services		Cost of sale and development		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		11		1		39		8		59
Director´s fees		-		-		14		-		14
Fees and payments for services		-		-		8		1		9
Taxes, rates and contributions		9		2		-		5		16
Maintenance, security, cleaning, repairs and others		19		1		-		-		20
Traveling, transportation and stationery		-		-		6		-		6
Allowances for trade and other receivables (charge and recovery, net)		-		-		-		1		1
Leases and service charges		2		-		2		-		4
Public services and others		9		-		2		-		11
Amortization and depreciation		14		-		1		-		15
Advertising and others selling expenses		-		-		-		1		1
Bank charges		-		-		1		-		1
Total expenses by nature		64		4		73		16		157

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.	Employee costs

	March 31, 2016		March 31, 2015
Salaries, bonuses and social security costs		43		46
Pension costs plan and defined contribution		6		8
Other expenses and benefits		3		5
Total employee costs		52		59

24.	Other operating results, net

	March 31, 2016			March 31, 2015
Tax on shareholders’ personal assets		(4	)		(2	)
Gain from sale of subsidiaries and / or joint ventures		3			-
Donations		(6	)		(2	)
Lawsuits and other contingencies (1)		(3	)		(10	)
Others		-			(2	)
Total other operating results, net		(10	)		(16	)

(1)	Includes legal costs and expenses.

25.	Financial results, net

	March 31, 2016			March 31, 2015
Finance income:
- Interest income		236			61
- Foreign exchange gain		1,331			103
Total finance income		1,567			164

Finance costs:
- Interest expense		(472	)		(295	)
- Foreign exchange loss		(1,785	)		(220	)
- Other finance costs		(21	)		(15	)
Total finance costs		(2,278	)		(530	)
Other financial results:
- Fair value loss in financial assets		(54	)		(97	)
- Gain / (Loss) on derivative financial instruments, net		119			(1	)
- Loss on repurchase of Non-Convertible Notes		(147	)		(4	)
Total other financial results		(82	)		(102	)
Total financial results, net		(793	)		(468	)

26.	Share-based payments

For more details on share-based payments, see Note 29 to the Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27.	Related parties transactions

The following is a summary of the balances with related parties as of March 31, 2016:

Related parties	Description of Transaction	Investments in financial assets current		Investments in financial assets non-current		Trade and other receivables current		Trade and other receivables non-current		Trade and other payables current			Borrowings current			Borrowings non-current
Parent Company
Cresud	Corporate services		-		-		-		-		(14	)		-			-
	Leases		-		-		1		-		-			-			-
	Non-Convertible Notes		-		-		-		-		-			(112	)		-
	Reimbursement of expenses		-		-		-		-		(5	)		-			-
	Long-term incentive program		-		-		-		-		(7	)		-			-
Total Parent Company			-		-		1		-		(26	)		(112	)		-
Subsidiaries
ECLSA	Borrowings		-		-		-		-		(1	)		-			-
IRSA CP	Reimbursement of expenses		-		-		-		-		(50	)		-			-
	Corporate services		-		-		76		-		-			-			-
	Long-term incentive program		-		-		-		-		(24	)		-			-
	Borrowings		-		-		-		-		-			(64	)		-
	Sale of property		-		-		1,874		-		-			-			-
Palermo Invest S.A.	Dividends receivable		-		-		3		-		-			-			-
Palermo Invest S.A.	Borrowings		-		-		4		-		-			-			-
Ritelco S.A.	Borrowings		-		-		-		-		-			(78	)		(121	)
Inversora Bolivar S.A.	Borrowings		-		-		-		-		-			-			(6	)
Hoteles Argentinos S.A.	Hotel services		-		-		-		-		(3	)		-			-
Llao Llao Resorts S.A.	Hotel services		-		-		2		-		-			-			-
Nuevas Fronteras S.A.	Management fees		-		-		3		-		-			-			-
Nuevas Fronteras S.A.	Borrowings		-		-		-		-		-			-			(29	)
Total Subsidiaries			-		-		1,962		-		(78	)		(142	)		(156	)
Subsidiaries Cresud
Helmir S.A.	Bonds		-		-		-		-		-			(45	)		-
Total Subsidiaries Cresud			-		-		-		-		-			(45	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

Related parties	Description of Transaction	Investments in financial assets current		Investments in financial assets non-current		Trade and other receivables current		Trade and other receivables non-current		Trade and other payables current			Borrowings current			Borrowings non-current
Subsidiaries IRSA CP
Fibesa S.A.	Long-term incentive program		-		-		11		-		-			-			-
PAMSA	Long-term incentive program		-		-		2		-		-			-			-
Total Subsidiaries IRSA CP			-		-		13		-		-			-			-
Subsidiaries TYRUS
Irsa International LLC	Reimbursement of expenses		-		-		3		-		(2	)		-			-
Real Estate Strategies LP	Reimbursement of expenses		-		-		5		-		-			-			-
New Lipstick	Reimbursement of expenses		-		-		4		-		-			-			-
Imadison LLC	Reimbursement of expenses		-		-		2		-		-			-			-
Total Subsidiaries TYRUS			-		-		14		-		(2	)		-			-
Associates
BHSA	Reimbursement of expenses		-		-		-		-		(1	)		-			-
Banco de Crédito y Securitización	Non-Convertible Notes		16		100		-		-		-			-			-
Total Associates			16		100		-		-		(1	)		-			-
Joint Ventures
Cyrsa S.A.	Credit due to capital reduction		-		-		7		-		-			-			-
Cyrsa S.A.	Borrowing		-		-		-		-		-			(13	)		-
Total Joint Ventures			-		-		7		-		-			(13	)		-
Other related parties
Consultores Asset Management S.A.	Reimbursement of expenses		-		-		4		-		-			-			-
Total Other related parties							4
Directors and Senior Management
Directors	Advances		-		-		3		-		-			-			-
Total Directors and Senior Management			-		-		3		-		-			-			-
Total			16		100		2,004		-		(107	)		(312	)		(156	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

The following is a summary of the balances with related parties as of June 30, 2015:

Related parties	Description of Transaction	Trade and other receivables non-current		Trade and other receivables current		Investments in financial assets non-current		Investments in financial assets current		Trade and other payables current			Borrowings non-current			Borrowings current
Parent Company
Cresud	Leases and/or rights of use		-		1		-		-		-			-			-
	Corporate services		-		-		-		-		(17	)		-			-
	Reimbursement of expenses		-		-		-		-		(4	)		-			-
	Long-term incentive program		-		-		-		-		(8	)		-			-
	Bonds		-		-		-		-		-			(17	)		(1	)
Total Parent Company			-		1		-		-		(29	)		(17	)		(1	)
Subsidiaries
ECLSA	Borrowings		-		-		-		-		-			-			(8	)
IRSA CP	Reimbursement of expenses		-		-		-		-		(14	)		-			-
	Corporate services		-		-		-		-		(13	)		-			-
	Leases and/or rights of use		-		-		-		-		(1	)		-			-
	Bonds		-		-		-		37		-			-			-
	Long-term incentive program		-		48		-		-		-			-			-
	Sale of properties		2,239		89		-		-		-			-			-
	Borrowings		-		-		-		-		-			-			(38	)
Solares	Reimbursement of expenses		-		7		-		-		-			-			-
Palermo Invest S.A.	Reimbursement of expenses		4		-		-		-		-			-			-
Ritelco S.A.	Borrowings		-		-		-		-		-			(73	)		(7	)
Ritelco S.A.	Non-Convertible Notes		-		-		-		-		-			(38	)		(2	)
Inversora Bolivar S.A.	Borrowings		-		-		-		-		-			-			(9	)
Hoteles Argentinos S.A.	Hotel services		-		-		-		-		(1	)		-			-
Tyrus S.A.	Reimbursement of expenses		-		-		-		-		(1	)		-			-
Llao Llao Resorts S.A.	Hotel services		-		3		-		-		-			-			-
Nuevas Fronteras S.A.	Management fees		-		1		-		-		-			-			-
Nuevas Fronteras S.A.	Borrowings		-		-		-		-		-			(21	)		(4	)
Total Subsidiaries			2,243		148		-		37		(30	)		(132	)		(68	)
Subsidiaries Cresud
HELMIR S.A.	Bonds		-		-		-		-		-			(28	)		(1	)
Total Subsidiaries Cresud			-		-		-		-		-			(28	)		(1	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

Related parties	Description of Transaction	Trade and other receivables non-current		Trade and other receivables current		Investments in financial assets non-current		Investments in financial assets current		Trade and other payables current		Borrowings non-current			Borrowings current
Subsidiaries IRSA CP
ERSA	Bonds		-		-		-		-		-		(15	)		(1	)
Fibesa S.A.	Long-term incentive program		-		11		-		-		-		-			-
PAMSA	Reimbursement of expenses		-		1		-		-		-		-			-
	Long-term incentive program		-		1		-		-		-		-			-
	Non-Convertible Notes		-		-		-		-		-		(57	)		(3	)
Total Subsidiaries IRSA CP			-		13		-		-		-		(72	)		(4	)
Subsidiaries TYRUS
Real Estate Strategies LP	Reimbursement of expenses		-		3		-		-		-		-			-
New Lipstick	Reimbursement of expenses		-		2		-		-		-		-			-
Imadison LLC	Reimbursement of expenses		-		2		-		-		-		-			-
Total Subsidiaries TYRUS			-		7		-		-		-		-			-
Associates
BACS	Bonds		-		-		100		-		-		-			-
Total Associates			-		-		100		-		-		-			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

Related parties	Description of Transaction	Trade and other receivables non-current		Trade and other receivables current		Investments in financial assets non-current		Investments in financial assets current		Trade and other payables current			Borrowings non-current			Borrowings current
Joint Ventures
Cyrsa S.A.	Credit due to capital reduction		-		9		-		-		-			-			-
Cyrsa S.A.	Borrowings		-		-		-		-		-			(14	)		-
Baicom Networks S.A.	Reimbursement of expenses		-		1		-		-		-			-			-
Total Joint Ventures			-		10		-		-		-			(14	)		-
Joint Ventures IRSA CP
NPSF	Long-term incentive program		-		1		-		-		-			-			-
Total Joint Ventures IRSA CP			-		1		-		-		-			-			-
Other related parties
Consultores Asset Management S.A.	Reimbursement of expenses		-		3		-		-		-			-			-
Total Other related parties			-		3		-		-		-			-			-
Total			2,243		183		100		37		(59	)		(263	)		(74	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2016:

Related parties	Leases and/or rights of use			Management fees		Corporate services			Legal services		Financial operations			Donations		Fees and salaries
Parent Company
Cresud		2			-		(24	)		-		(13	)		-		-
Total Parent Company		2			-		(24	)		-		(13	)		-		-
Subsidiaries
IRSA CP		(1	)		-		(14	)		-		1,491			-		-
ECLSA		-			-		-			-		(1	)		-		-
Inversora Bolivar S.A.		-			-		-			-		(1	)		-		-
Ritelco S.A.		-			-		-			-		(78	)		-		-
Nuevas Fronteras S.A.		-			1		-			-		(4	)		-		-
Hoteles Argentinos S.A.		-			-		-			-		(1	)		-		-
Palermo Invest S.A.		-			-		-			-		1			-		-
Total Subsidiaries		(1	)		1		(14	)		-		1,407			-		-
Subsidiaries Parent Company
Helmir S.A.		-			-		-			-		23			-		-
Total Subsidiaries Parent Company		-			-		-			-		23			-		-
Subsidiaries IRSA CP
ERSA		-			-		-			-		(2	)		-		-
Total Subsidiaries IRSA CP		-			-		-			-		(2	)		-		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

Related parties	Leases and/or rights of use		Management fees			Corporate services			Legal services			Financial operations			Donations			Fees and salaries
Subsidiaries Tyrus
Irsa International LLC		-		-			-			-			(1	)		-			-
Total Subsidiaries Tyrus		-		-			-			-			(1	)		-			-
Associates
BACS		-		-			-			-			16			-			-
Total Associates		-		-			-			-			16			-			-
Joint Ventures
Cyrsa S.A.		-		-			-			-			(2	)		-			-
Total Joint Ventures		-		-			-			-			(2	)		-			-
Other related parties
Estudio Zang, Bergel & Viñes		-		-			-			(2	)		-			-			-
Fundación IRSA		-		-			-			-			-			(5	)		-
Total Other related parties		-		-			-			(2	)		-			(5	)		-
Directors and Senior Management
Senior Management		-		(2	)		-			-			-			-			-
Directors		-		(18	)		-			-			-			-			-
Total Directors and Senior Management		-		(20	)		-			-			-			-			-
Total		1		(19	)		(38	)		(2	)		1,428			(5	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2015:

Related parties	Leases and/or rights of use		Management fees		Corporate services			Legal services		Financial operations			Donations		Fees and salaries		Sale of properties
Parent Company
Cresud		3		-		(23	)		-		(6	)		-		-		-
Total Parent Company		3		-		(23	)		-		(6	)		-		-		-
Subsidiaries
IRSA CP		3		-		-			-		56			-		-		2,636
ECLSA		-		-		-			-		(1	)		-		-		-
Inversora Bolívar S.A.		-		-		-			-		(1	)		-		-		-
Ritelco S.A.		-		-		-			-		(9	)		-		-		-
Nuevas Fronteras S.A.		-		1		-			-		(3	)		-		-		-
Efanur S.A.		-		-		-			-		8			-		-		-
Tyrus S.A.		-		-		-			-		29			-		-		-
Total Subsidiaries		3		1		-			-		79			-		-		2,636
Subsidiaries IRSA CP
Fibesa S.A.		1		-		-			-		-			-		-		-
PAMSA		-		-		-			-		(4	)		-		-		-
ERSA		-		-		-			-		(1	)		-		-		-
Total Subsidiaries IRSA CP		1		-		-			-		(5	)		-		-		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27. Related parties transactions (Continued)

Related parties	Leases and/or rights of use		Management fees		Corporate services			Legal services			Financial operations			Donations			Fees and salaries			Sale of properties
Associates
BACS		2		-		-			-			-			-			-			-
BHSA		1		-		-			-			-			-			-			-
Total Associates		3		-		-			-			-			-			-			-
Associates IRSA CP
Tarshop		3		-		-			-			-			-			-			-
Total Associates IRSA CP		3		-		-			-			-			-			-			-
Joint Ventures
Cyrsa S.A.		-		-		-			-			(9	)		-			-			-
Total Joint Ventures		-		-		-			-			(9	)		-			-			-
Other related parties
Estudio Zang, Bergel & Viñes		-		-		-			(1	)		-			-			-			-
Fundación IRSA		-		-		-			-			-			(1	)		-			-
Total Other related parties		-		-		-			(1	)		-			(1	)		-			-
Directors and Senior Management
Senior Management		-		-		-			-			-			-			(8	)		-
Directors		-		-		-			-			-			-			(1	)		-
Total Directors and Senior Management		-		-		-			-			-			-			(9	)		-
Total		13		1		(23	)		(1	)		59			(1	)		(9	)		2,636

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

28.	CNV General Resolution N° 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622, below there is a detail of the notes to the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 6 Investment properties and Note 7 Property, plant and equipment
Exhibit B - Intangible assets	Note 9 Intangible assets
Exhibit C - Equity investments	Note 29 Equity investments
Exhibit D - Other investments	Note 10 Financial instruments by category
Exhibit E - Provisions	Note 11 Trading and other receivables and Note 16 Provisions
Exhibit F- Cost of sales and services provided	Note 8 Trading properties and Note 22 Expenses by nature
Exhibit G - Foreign currency assets and liabilities	Note 30 Foreign currency assets and liabilities

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Equity investments

Issuer and type of securities	Class / Items	Amount	Value recorded as of 03.31.16	Value recorded as of 06.30.15	Market value as of 03.31.16	Issuer's information						Interest in common stock
						Main activity	Registered office	Last financial statements issued
						Main activity	Registered office	Date	Common stock (nominal value)	Profit (loss) for the period	Shareholders’ Equity
IRSA CP	Common shares 1 vote	120,500,167	1,165	1,596	109.00	Real estate	Argentina	03.31.16	126	559	1,233	94.55%
	Higher value		(1,688)	(2,587)
	Intergroup transactions		386	408

BHSA (1)	Common shares 1 vote	75,000,000	255	225	5.65	Financial	Argentina	03.31.16	1,500	637	5,035	5.05%

BACS (1)	Common shares 1 vote	3,984,375	20	16	Not publicly traded	Financial	Argentina	03.31.16	63	63	311	6.38%

Cyrsa S.A.	Common shares 1 vote	8,748,270	16	18	Not publicly traded	Real estate	Argentina	03.31.16	17	12	33	50.00%

ECLSA	Common shares 1 vote	83,913,950	273	260	Not publicly traded	Investment	Argentina	03.31.16	80	37	281	96.74%
ECLSA	Higher value		(2)	(2)	Not publicly traded	Investment	Argentina	03.31.16	80	37	281	96.74%

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Equity investments (Continued)

Issuer and type of securities	Class / Items	Amount	Value recorded as of 03.31.16	Value recorded as of 06.30.15	Market value as of 03.31.16	Issuer's information						Interest in common stock
						Main activity	Registered office	Last financial statements issued
						Main activity	Registered office	Date	Common stock (nominal value)	Profit (loss) for the period	Shareholders’ Equity
Efanur S.A.	Common shares 1 vote	213,743,711	328	237	Not publicly traded	Investment	Uruguay	03.31.16	110	81	328	100.00%

Hoteles Argentinos S.A.	Common shares 1 vote	15,366,840	(1)	1	Not publicly traded	Hotel	Argentina	03.31.16	19	(2)	(1)	80.00%
Hoteles Argentinos S.A.	Higher value		1	1	Not publicly traded	Hotel	Argentina	03.31.16	19	(2)	(1)	80.00%

Inversora Bolivar S.A.	Common shares 1 vote	78,909,867	312	284	Not publicly traded	Investment	Argentina	03.31.16	84	33	328	95.13%
Inversora Bolivar S.A.	Higher value		6	6	Not publicly traded	Investment	Argentina	03.31.16	84	33	328	95.13%

Llao Llao Resort S.A.	Common shares 1 vote	73,580,206	25	24	Not publicly traded	Hotel	Argentina	03.31.16	147	2	49	50.00%

Manibil S.A.	Common shares 1 vote	47,747,880	62	47	Not publicly traded	Real estate	Argentina	03.31.16	97	12	127	49.00%

Nuevas Fronteras S.A.	Common shares 1 vote	38,068,999	37	36	Not publicly traded	Hotel	Argentina	03.31.16	50	2	49	76.34%
Nuevas Fronteras S.A.	Lower value		(14)	(15)	Not publicly traded	Hotel	Argentina	03.31.16	50	2	49	76.34%

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Equity investments (Continued)

Issuer and type of securities	Class / Items	Amount	Value recorded as of 03.31.16	Value recorded as of 06.30.15	Market value as of 03.31.16	Issuer's information						Interest in common stock
						Main activity	Registered office	Last financial statements issued
								Date	Common stock (nominal value)	Profit (loss) for the period	Shareholders’ Equity
Palermo Invest S.A.	Common shares 1 vote	153,283,989	268	238	Not publicly traded	Investment	Argentina	03.31.16	158	33	276	97.00%
	Intergroup transactions		(30)	(30)

Ritelco S.A.	Common shares 1 vote	181,016,717	435	322	Not publicly traded	Investment	Uruguay	03.31.16	94	92	462	100.00%
	Irrevocable contributions		27	27

Solares (2)	Common shares 1 vote	-	-	284	Not publicly traded	Real estate	Argentina	03.31.16	-	-	-	-
	Intergroup transactions		-	(167)

Tyrus S.A.	Common shares 1 vote	4,000,000,000	(1,595)	591	Not publicly traded	Investment	Uruguay	03.31.16	877	(1,665)	2,164	100.00%
	Irrevocable contributions		3,759	886
	Higher value		(9)	-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.	Equity investments (Continued)

Issuer and type of securities

Class / Items

Amount

Value recorded as of 03.31.16

Value recorded as of 06.30.15

Market value as of 03.31.16

Issuer's information

Interest in common stock

Main activity

Registered office

Last financial statements issued

Date

Common stock (nominal value)

Profit (loss) for the period

Shareholders’ Equity

Unicity (2)

Common shares 1 vote

Not publicly traded

Investment

Argentina

03.31.16

Total investments in subsidiaries, associates and joint ventures as of 03.31.16

4,036

Total investments in subsidiaries, associates and joint ventures as of 06.30.15

2,732

(1) The amounts correspond to the financial statements of BHSA and BACS prepared in accordance with the BCRA standards. For the purpose of the valuation of the investment in the Company, adjustments necessary to adequate the financial statements to IFRS have been considered.

(2) See Note 3.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items	Amount of foreign currency (1)	Prevailing exchange rate (2)	Total as of 03.31.16	Amount of foreign currency (1)	Prevailing exchange rate (2)	Total as of 06.30.15
Assets
Trade and other receivables
US Dollar	11	14.600	157	2	8.988	22
Receivables with related parties:
US Dollar	126	14.700	1,851	257	9.088	2,338
Total trade and other receivables			2,008			2,360
Investments in financial assets
US Dollar	-	14.600	3	7	8.988	60
Total investments in financial assets			3			60
Cash and cash equivalents
US Dollar	5	14.600	71	-	8.988	2
Euros	-	16.608	1	-	10.005	1
Total cash and cash equivalents			72			3
Total assets as of 03.31.16			2,083
Total assets as of 06.30.15						2,423
Liabilities
Trade and other payables
US Dollar	1	14.700	18	1	9.088	9
Payables with related parties:
US Dollar	-	14.700	5	1	9.088	7
Total trade and other payables			23			16
Borrowings
US Dollar	313	14.700	4,601	294	9.088	2,674
Borrowings with related parties:
US Dollar	18	14.700	263	29	9.088	261
Total borrowings			4,864			2,935
Total liabilities as of 03.31.16			4,887			-
Total liabilities as of 06.30.15			-			2,951

(1) Considering foreign currencies those that differ from Company’s functional currency at each period / year-end.

(2) Exchange rate as of March 31, 2016 and June 30, 2015 according to Banco Nación Argentina records.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in millions of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

31.	CNV General Resolution N° 629/14 – Storage of documentation

On August 14, 2014, the CNV issued General Resolution N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Company has entrusted the storage of certain non-sensitive and old information of the following providers:

Storage of documentation responsible		Location
Bank S.A.		Ruta Panamericana Km 37.5, Garín, Province of Buenos Aires
		Av. Fleming 2190, Munro, Province of Buenos Aires
		Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires

Iron Mountain Argentina S.A.		Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
		Pedro de Mendoza 2143, Autonomous City of Buenos Aires
		Saraza 6135, Autonomous City of Buenos Aires
		Azara 1245, Autonomous City of Buenos Aires
		Polígono Industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
		Cañada de Gómez 3825, Autonomous City of Buenos Aires

It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the rules (2013 as amended) are available at the registered office.

On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse. Such company is a supplier of the Company and Company’s documentation was being kept in the mentioned warehouse. Based on the internal review carried out by the Company, duly reported to the CNV on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.

32.	Negative working capital

As of March 31, 2016, the Company has recorded negative working capital of Ps. 2,394, which is permanently under consideration of the Board of Directors and Management.

33.	Subsequent Events

See other subsequent events in Note 31 to Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12,

Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

1.	Specific and significant systems that imply contingent lapsing or rebirth of benefits envisaged by such provisions.

None.

Significant changes in the Company’s activities or other similar circumstances that occurred during the fiscal years included in the financial statements, which affect their comparison with financial statements filed in previous fiscal years, or that could affect those to be filed in future fiscal years.

See Note 2.1.

3.	Receivables and liabilities by maturity date.

Items		Falling due	Without term	Without term	To be due								Total
Items		03.31.16	Current	Non-current	Up to 3 months	From 3 to 6 months	From 6 to 9 months	From 9 to 12 months	From 1 to 2 years	From 2 to 3 years	From 3 to 4 years	From 4 years on	Total
Account	Trade and other receivables	308	2	6	1,710	3	12	101	27	8	8	6	2,191
receivables	Total	308	2	6	1,710	3	12	101	27	8	8	6	2,191
Liabilities	Trade and other payables	4	3	-	123	-	21	5	183	-	-	2	341
	Borrowings	-	-	-	2,140	86	-	2,297	4	-	29	1,161	5,717
	Salaries and social security liabilities	-	1	-	-	1	-	-	-	-	-	-	2
	Provisions	-	-	28	-	-	-	1	-	-	-	-	29
	Total	4	4	28	2,263	87	21	2,303	187	-	29	1,163	6,089

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12,

Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.a.	Breakdown of accounts receivable and liabilities by currency and maturity.

Items		Current			Non-current			Totals
		Local currency	Foreign currency	Total	Local currency	Foreign currency	Total	Local currency	Foreign currency	Total
		Local currency	Foreign currency	Total	Local currency	Foreign currency	Total	Local currency	Foreign currency	Total
Account	Trade and other receivables	165	1,971	2,136	18	37	55	183	2,008	2,191
receivables	Total	165	1,971	2,136	18	37	55	183	2,008	2,191
Liabilities	Trade and other payables	133	23	156	185	-	185	318	23	341
	Borrowings	820	3,703	4,523	33	1,161	1,194	853	4,864	5,717
	Salaries and social security liabilities	2	-	2	-	-	-	2	-	2
	Provisions	1	-	1	28	-	28	29	-	29
	Total	956	3,726	4,682	246	1,161	1,407	1,202	4,887	6,089

4.b.	Breakdown of accounts receivable and liabilities by adjustment clause.

As of March 31, 2016 there are not receivable and liabilities subject to adjustment clause.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12, Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.c.	Breakdown of accounts receivable and liabilities by interest clause.

Items		Current				Non-current				Accruing interest		Non- accruing interest	Total
		Accruing interest		Non-accruing interest	Total	Accruing interest		Non-accruing interest	Total	Accruing interest
		Fixed rate	Floating rate	Non-accruing interest	Total	Fixed rate	Floating rate	Non-accruing interest	Total	Fixed rate	Floating rate
Accounts	Trade and other receivables	9	-	2,127	2,136	30	-	25	55	39	-	2,152	2,191
receivables	Total	9	-	2,127	2,136	30	-	25	55	39	-	2,152	2,191
Liabilities	Trade and other payables	-	-	156	156	3	-	182	185	3	-	338	341
	Borrowings	141	786	3,596	4,523	1,038	156	-	1,194	1,179	942	3,596	5,717
	Salaries and social security liabilities	-	-	2	2	-	-	-	-	-	-	2	2
	Provisions	-	-	1	1	-	-	28	28	-	-	29	29
	Total	141	786	3,755	4,682	1,041	156	210	1,407	1,182	942	3,965	6,089

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12, Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

5. Related parties.

a.	Interest in related parties:

Name of the entity	% of ownership interest held by the Group
Direct Controlling interest of IRSA:
IRSA CP	94.74%
ECLSA	100.00%
Efanur S.A.	100.00%
Hoteles Argentinos S.A.	80.00%
Inversora Bolívar S.A.	100.00%
Llao Llao Resorts S.A.	50.00%
Nuevas Fronteras S.A.	76.34%
Palermo Invest S.A.	100.00%
Ritelco S.A.	100.00%
Tyrus S.A.	100.00%

b.	Related parties debit/credit balances. See Note 27 to the Unaudited Condensed Interim Separate Financial Statements.

6.	Loans to directors.

See Note 27 to the Unaudited Condensed Interim Separate Financial Statements.

7.	Inventories.

In view of the nature of the inventories, no physical inventories are performed and there are no slow turnover assets.

8.	Current values.

See Notes 6, 7, 8 and 10 to the Unaudited Condensed Interim Separate Financial Statements.

9.	Appraisal revaluation of property, plant and equipment.

None.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12, Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

10.	Obsolete unused property, plant and equipment.

None.

11.	Equity interest in other companies in excess of that permitted by section 31 of law N° 19,550.

None.

12.	Recovery values.

See Notes 6, 7, 8 and 10 to the Unaudited Condensed Interim Separate Financial Statements.

13.	Insurances.

Insured Assets.

Real Estate	Insured amounts (1)		Accounting values		Risk covered
BOUCHARD 551		2		8	All operational risk with additional coverage and minor risks
MAIPU 1300		7		5	All operational risk with additional coverage and minor risks
LIBERTADOR 498		4		4	All operational risk with additional coverage and minor risks
CASONA ABRIL		4		2	All operational risk with additional coverage and minor risks
CATALINAS NORTE		2		110	All operational risk with additional coverage and minor risks
SUBTOTAL		19		129
SINGLE POLICY		15		-	Third party liability

(1)

The insured amounts are in U.S.dollars.

In our opinion, the above-described insurance policies cover current risks adequately.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations and Section 12, Chapter III, Title IV of the National Securities Commission Regulations

Statement of Financial Position as of March 31, 2016

Stated in millions of pesos

Free translation from the original prepared in Spanish for publication in Argentina

14.	Allowances and provisions that, taken individually or as a whole, exceed 2% of the shareholder´s equity.

None.

15.	Contingent situations at the date of the financial statements which probabilities are not remote and the effects on the Company’s financial position have not been recognized.

Not applicable.

16.	Status of the proceedings leading to the capitalization of irrevocable contributions towards future subscriptions.

Not applicable.

17.	Unpaid accumulated dividends on preferred shares.

None.

18.	Restrictions on distributions of profits.

According to the Argentine laws, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution.

In addition, according to CNV General Resolution N° 609/12, a special reserve was constituted which could not be released to make distributions in cash or in kind. See Note 26 to the Unaudited Condensed Interim Consolidated Financial Statements.

IRSA NCN due 2017 and IRSA NCN due 2020 both contain certain customary covenants and restrictions, including amount others, limitations for the incurrence of additional indebtedness, restricted payments, disposal of assets, and entering into certain transactions with related companies. Restricted Payments include restrictions on the payment of dividends.

Autonomous City of Buenos Aires May 12, 2016.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED

INTERIM SEPARATE FINANCIAL STATEMENTS

To the Shareholders, President and Directors of

IRSA Inversiones y Representaciones Sociedad Anónima

Legal address: Bolivar 108 – 1° floor

Autonomous City Buenos Aires

Tax Code No. 30-52532274-9

Introduction

We have reviewed the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima (hereinafter “the Company”) which included the unaudited condensed interim separate statement of financial position as of March 31, 2016, and the unaudited condensed interim separate statements of income and comprehensive income for the nine-month and three-month period ended March 31, 2016 the unaudited condensed interim separate statements of changes in shareholders’ equity and the unaudited condensed interim separate statements of cash flows for the nine-month period ended March 31, 2016 and selected explanatory notes.

Management responsibility

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with professional accounting standards of Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) added by the National Securities Commission (CNV) to its regulations. Those standards differ from the International Financial Reporting Standards (IFRS) and, especially, from the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34) approved by the International Accounting Standard Board (IASB) and used for the preparation of the unaudited condensed interim consolidated financial statements of IRSA Inversiones y Representaciones Sociedad Anónima with its subsidiaries as to the aspects mentioned in note 2.1 to the unaudited condensed interim separate financial statements attached.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED

INTERIM SEPARATE FINANCIAL STATEMENTS (Continued)

Scope of our review

Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina in Technical Resolution No. 33 of the FACPCE, without modification as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim separate financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the separate statement of financial position, the separate statement of income, the separate statement of comprehensive income and separate statement of cash flow of the Company.

Conclusion

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim separate financial statements above mentioned in the introductory paragraph of this report have not been prepared in all material respects in accordance Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences for separate financial statements of a parent company.

Emphasis paragraph

Without modifying our conclusion, we want to refer to the information included in Note 5 of these unaudited condensed interim separate financial statements.

Report on compliance with current regulations

In accordance with current regulations, we report about IRSA Inversiones y Representaciones Sociedad Anónima that:

the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima are recorded in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;

b)	the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima arise from accounting records carried in all formal aspects in conformity with the applicable legal provisions;

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED

INTERIM SEPARATE FINANCIAL STATEMENTS (Continued)

we have read the additional information to the notes to the unaudited condensed interim separate statements required by section 68 of the listing regulations of the Buenos Aires Stock Exchange and by section 12 of Chapter III Title IV of the text of the National Securities Commission, on which, as regards those matters that are within our competence, we have no observations to make;

d)	at March 31, 2016, the debt of IRSA Inversiones y Representaciones Sociedad Anónima owed in favor of the Argentina Integrated Pension System which arises from accounting records and submissions amounted to Ps. 61,522 which was no callable at that date.

Autonomous City of Buenos Aires, May 12, 2016.

PRICE WATERHOUSE & CO. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Eduardo A. Loiácono

Public Accountant (UBA)

C.P.C.E.C.A.B.A. Tº 326 Fº 94

ABELOVICH, POLANO & ASOCIADOS S.R.L.

(Partner)

C.P.C.E. C.A.B.A. T° 1 F° 30

Noemí I. Cohn

Contador Público (U.B.A.)

C.P.C.E.C.A.B.A. T° 116 F° 135

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2016

Buenos Aires, May 12, 2016 - IRSA Inversiones y Representaciones Sociedad Anónima (NYSE: IRS) (BASE: IRSA), Argentina’s leading real estate company, announces today the results of its operations for the nine month period of FY 2016 ended March 31, 2016.

I. Brief comment on the Company’s activities during the period, including references to significant events occurred after the end of the period.

Consolidation of IDB Development Corporation

On October 11, 2015, the Group obtained control of the Israeli company IDB Development Corporation Ltd. (“IDBD”). During the past quarter, the investment was consolidated in the balance sheet, and as from this third quarter of fiscal year 2016, it is also disclosed at income statement level. IDBD’s fiscal year-end is on December 31 of each year, whereas the Company’s is on June 30. Moreover, in compliance with Israeli regulations, IDBD reports its quarterly and annual results after the expiration of the Argentine statutory terms. For such reasons, the Company will be unable to have available IDBD’s quarterly results as and when due in order to report them to the CNV in its financial statements for the period ended March 31, 2016. Thus, the Company will consolidate results from IDBD’s operations with a three-month mismatch adjusted for the effects of material transactions occurred during the reported period. In this way, the results of IDBD’s operations for the period running from October 11, 2015 (date of acquisition) until December 31, 2015 are included in the interim comprehensive results of the Group for the nine-month period ended on March 31, 2016, except for material transactions considered. The Company estimates a similar mismatch in obtaining IDBD’s results in the succeeding periods.

IDBD is one of the largest and most diversified holding companies in Israel. Through its subsidiaries, associates, joint ventures and other investments, IDBD is engaged in numerous markets and industry sectors in Israel and other countries, including real estate (Property & Building Corporation), supermarkets (Shufersal), agroindustry (Adama), insurance (Clal Holdings Insurance Enterprises, hereinafter Clal), and telecommunications (Cellcom). After the closing of this quarter, IDBD’s shares were delisted from the Tel Aviv Stock Exchange (“TASE”). However, the company will continue to be registered with the TASE as a “Debentures Company” pursuant to Israeli law, as it has bonds listed in such exchange.

Significant assets have been added in various industries in which the Group did not have investments until to date, as well as liabilities for loans taken by IDBD and its subsidiaries.

The company is conducting the “Purchase Price Allocation” process, which is expected to be completed on June 30, 2016.

We have decided to break down reporting into an Argentine Operating Center and an Israeli Operating Center. From the Argentine Operating Center, the Group, through IRSA and its subsidiaries, manages the businesses in Argentina and the international investments in the Lipstick Building in New York and the Condor Hospitality Trust hotel REIT. From the Israeli Operating Center, the Group manages IDBD.

Israeli Operating Center

Argentine Operating Center

(i) Recorded under current assets as a financial asset available for sale (see Note 9).

(ii) Corresponds to associates of the Group; therefore, they are not consolidated.

Consolidated Results

In ARS Million	IIIQ 16		IIIQ 15		YoY Var			9M16	9M 15	YoY Var
Revenues from sales, leases and services		17,567		811		2,066.1	%	19,731	2,509		686.4	%
Operating Income		1,198		280		327.9	%	3,146	1,866		68.6	%
Depreciation and Amortization		1,098		50		2,096.0	%	1,204	135		791.9	%
EBITDA		3,325		1,203		176.4	%	4,350	2,001		117.4	%
Net (Loss) / Income		-129		-211		-38.9	%	-1,039	-164		533.5	%
Attributable to the parent company’s shareholders		-189		-250		-24.4	%	-676	-245		175.9	%
Attributable to non-controlling interest		60		39		53.8	%	-363	81		-548.1	%

The Company’s consolidated results reflect in all lines the material accounting impact of IDBD’s consolidation. Revenues and operating income for the first 9 months of 2016 increased 686.4% and 68.6%, respectively, as compared to the same period of 2015. In turn, the Company recorded a net loss of ARS 1,039 million for the 9-month period of 2016, compared to a net loss of ARS 164 million for the same period of 2015.

Argentine Operating Center

II. Shopping Centers (through our subsidiary IRSA Propiedades Comerciales S.A.)

During the nine-month period of fiscal year 2016, consumption at shopping centers maintained good performance levels. Our tenants’ sales reached ARS 20,962.3 million during the first nine months of fiscal year 2016, 36.3% higher than in the same period of 2015 (30.0% without considering sales from Distrito Arcos and Alto Comahue Shopping). In the third quarter of 2016, there was a slight deceleration in the growth rate of sales, which rose 29% as compared to the third quarter of 2015 (25.4% in the same shopping centers). Our portfolio’s leasable area totaled 334,080 square meters during the quarter under review, whereas the occupancy rate stood at optimum levels of 98.6%, reflecting the quality of our portfolio.

Shopping Centers’ Financial Indicators

(in millions of ARS)

	IIIQ 16		IIIQ 15		YoY Var			9M 16	9M 15	YoY Var
Revenues		541		415		30.4	%	1,734	1,282		35.5	%
Operating Income		361		267		35.2	%	1,215	894		35.9	%
Depreciation and Amortization		41		38		7.9	%	123	99		24.2	%
EBITDA		400		304		31.6	%	1,338	993		34.7	%

Shopping Centers’ Operating Indicators

(in millions of ARS, except as indicated)

	IIIQ 16			IIQ 16			IQ 16			IVQ 15			IIIQ 15
Gross Leaseable Area (sqm)(1)		334,080			333,719			334,055			333,911			333,432
Tenants’ sales(1)		6,099.5			8,275.9			6,586.9			6,125.0			4,727.3
Occupancy (1)		98.6	%		99.0	%		98.9	%		98.7	%		98.5	%

(1) 16-FP Includes Distrito Arcos (opening: December 18, 2014): Total Leaseable Area (sqm) 10,746. Sales IIIQ 16 (ARS MM) 205.5; and Alto Comahue (opening March 17, 2015):Total Leaseable Area (sqm) 9,800. Sales IIIQ 16 (ARS MM) 147.4.

Revenues from this segment grew 35.5% during this nine-month period, whereas Operating Income reached ARS 1,215 million (+ 35.9% compared to the third quarter of 2015). The EBITDA margin, excluding income from common expenses and common promotional fund, was 77.1%, in line with the margins recorded in the same period of 2015.

Operating data of our Shopping Centers

Shopping Center	Date of Acquisition	Gross Leaseable Area (sqm)(1)	Stores	IRSA Propiedades Comerciales S.A.’s Interest	Occupancy(2)	Book Value (ARS million) (3)
Alto Palermo	Nov-97	18,849	142	100.0%	99.1%	212
Abasto Shopping(4)	Jul-94	36,813	170	100.0%	99.8%	248
Alto Avellaneda	Nov-97	36,117	138	100.0%	100.0%	126
Alcorta Shopping	Jun-97	15,432	111	100.0%	99.2%	105
Patio Bullrich	Oct-98	11,636	89	100.0%	99.0%	110
Buenos Aires Design	Nov-97	14,306	63	53.7%	96.0%	8
Dot Baires Shopping	May-09	49,848	158	80.0%	99.9%	372
Soleil	Jul-10	13,991	78	100.0%	100.0%	81
Distrito Arcos(5)	Dec-14	10,746	59	90.0%	96.9%	277
Alto Noa Shopping	Mar-95	19,094	89	100.0%	100.0%	32
Alto Rosario Shopping(6)	Nov-04	30,183	146	100.0%	98.3%	123
Mendoza Plaza Shopping	Dec-94	42,101	142	100.0%	95.1%	97
Córdoba Shopping	Dec-06	15,249	109	100.0%	100.0%	58
La Ribera Shopping(7)	Aug-11	9,915	64	50.0%	98.4%	25
Alto Comahue(8)	Mar-15	9,800	105	99.6%	95.6%	320
Total		334,080	1,663		98.6%	2,194
Notes:
(1) Corresponds to total leasable area in each property. Excludes common areas and parking spaces. (2) Calculated dividing occupied square meters by leasable area on the last day of the period. (3) Cost of acquisition plus improvements, less cumulative depreciation, plus adjustment for inflation. (4) Excludes Museo de los Niños (3,732 square meters). (5) Distrito Arcos: Opening on December 18, 2014. (6) Excludes Museo de los Niños (1,261 square meters). (7) Through our joint venture Nuevo Puerto Santa Fe S.A. (8) Alto Comahue: Opening on March 17, 2015.

Cumulative tenants’ sales as of March 31

(per Shopping Center, for the quarter and for the first nine months of each fiscal year, in ARS million)

Shopping Center	IIIQ 16		IIIQ 15		YoY Var			9M 16	9M 15	YoY Var
Alto Palermo		722.3		542.9		33.0	%	2,519.0	1,948.3		29.3	%
Abasto Shopping		860.2		686.0		25.4	%	2,964.5	2,307.0		28.5	%
Alto Avellaneda		783.8		630.1		24.4	%	2,781.6	2,087.3		33.3	%
Alcorta Shopping		378.6		289.9		30.6	%	1,372.5	1,071.2		28.1	%
Patio Bullrich		217.7		178.1		22.2	%	770.3	647.9		18.9	%
Buenos Aires Design		105.7		80.9		30.7	%	314.3	240.0		31.0	%
Dot Baires Shopping		676.2		557.1		21.4	%	2,368.3	1,881.7		25.9	%
Soleil		230.1		197.5		16.5	%	855.7	660.3		29.6	%
Distrito Arcos(1)		205.5		118.8		72.9	%	676.2	143.5		371.2	%
Alto Noa Shopping		325.4		262.5		24.0	%	1,014.7	777.5		30.5	%
Alto Rosario Shopping		575.7		439.8		30.9	%	1,917.7	1,390.9		37.9	%
Mendoza Plaza Shopping		513.4		449.7		14.2	%	1,717.5	1,380.7		24.4	%
Córdoba Shopping		215.1		168.5		27.7	%	723.1	542.1		33.4	%
La Ribera Shopping(2)		142.4		98.8		44.1	%	459.0	278.7		64.7	%
Alto Comahue(3)		147.4		26.7				507.9	26.7		1804.7	%
Total(4)		6,099.5		4,727.3		29.0	%	20,962.3	15,383.8		36.3	%

(1) Distrito Arcos: opening on December 18, 2014.

(2) Through our joint venture Nuevo Puerto Santa Fe S.A.

(3) Alto Comahue: opening on March 17, 2015.

(4) Excluding Distrito Arcos and Alto Comahue: Total 9M 16 (ARS M) 19,778.1 YoY Var 30.0%.

Cumulative tenants’ sales as of March 31

(per Type of Business, for the quarter and for the first nine months of each fiscal year, in ARS million)

Type of Business	IIIQ 16		IIIQ 15		YoY Var			9M 16	9M 15	YoY Var
Anchor Store		311.6		269.3		15.7	%	1,134.4	941.3		20.5	%
Clothes and Footwear		3,010.4		2,269.0		32.7	%	10,815.7	7,809.9		38.5	%
Entertainment		250.2		186.5		34.2	%	706.8	507.0		39.4	%
Home		186.4		147.4		26.4	%	584.6	448.2		30.4	%
Restaurant		667.0		490.5		36.0	%	1,969.2	1,410.4		39.6	%
Miscellaneous		784.2		594.9		31.8	%	2,534.6	1,947.5		30.1	%
Services		87.2		63.4		37.7	%	305.0	149.2		104.4	%
Electronic appliances		802.4		706.3		13.6	%	2,911.9	2,170.2		34.2	%
Total (1)		6,099.4		4,727.3		29.0	%	20,962.3	15,383.8		36.3	%

(1) Excluding Distrito Arcos and Alto Comahue: Total IIIQ 16 (ARS MM), 5,746.6 Var 25.4%, Total 9 M 16 (ARS M), 19,778.1 YoY Var 30.0 %.

Revenues from cumulative leases as of March 31

(Breakdown per quarter and for the first nine months of each fiscal year, in ARS million)

Detailed Revenues	IIIQ16		IIIQ15		YoY Var			9M 16	9M 15	YoY Var
Base Rent		346.5		240.2		44.3	%	955.2	685.9		39.3	%
Percentage Rent		75.1		84.9		-11.5	%	437.1	345.7		26.4	%
Total Rent		421.7		325.1		29.7	%	1,392.3	1,031.60		35.0	%
Admission rights		53.7		41.7		28.7	%	146.9	113.4		29.5	%
Fees		18.3		12.9		42.2	%	52.1	33.8		54.0	%
Parking		35.3		25.6		38.0	%	110.6	78.5		40.8	%
Management fees		9.3		6.7		38.3	%	26.9	19.8		35.9	%
Other		1.9		1.8		3.6	%	5.1	4.5		12.2	%
Total Revenues from sales, leases and services		540.2		413.9		30.5	%	1,733.7	1,282.0		35.5	%

III. Offices

The A+ office market in the City of Buenos Aires remains robust. Demand for Premium commercial spaces continues its upward trend, with sale prices in the whereabouts of USD 4,200 per square meter, 5% higher than at the closing of 2015, while rental prices increased slightly as compared to the previous year, averaging USD 30 per square meter. The vacancy rate stood at 10.8% slightly below the figures recorded in 2015.

As concerns the A+ office market in the Northern Area, we have noted a significant improvement in the price of units during the last 10 years, and we believe in its potential during the next decade. Rental prices have remained at USD 24.5 per square meter, whereas vacancy continues to drop, down to 7.4% in March 2016 from 9.4% in March 2015.

Rental and Sale Prices of A+ Offices – City of Buenos Aires

Source: L.J. Ramos

Rental and Sale Prices of A+ Offices – Northern Area

Source: L.J. Ramos

In ARS Million	IIIQ 16		IIIQ 15		YoY Var			9M16	9M 15	YoY Var
Revenues		90		87		3.4	%	235	250		-6.0	%
Operating Income		49		52		-5.8	%	133	51		160.8	%
Depreciation and amortization		7		10		-30.0	%	24	27		-11.1	%
EBITDA(*)		56		-49		-214.3	%	157	189		-16.9	%

(*)EBITDA for 9M15 excludes stamp tax expenses incurred in the transfer of assets.

Revenues from the Offices segment decreased by 6.0% in the first nine months of fiscal year 2016 due to a 28% reduction in the leaseable area as a result of the sales made during the period, offset by higher rental prices in ARS/sqm, as lease agreements are denominated in U.S. dollars. In addition, the portfolio’s occupancy stood at 94%, slightly lower than the one recorded in the past quarter, mainly due to the partial sale of the Intercontinental building, whose occupancy rate was higher than the portfolio average. As compared to the same quarter of 2015, occupancy dropped 5.3% due to the vacancy of two floors in the “República” building during the second quarter of 2016, which we expect to occupy in the short term. The segment’s EBITDA, excluding stamp tax expenses incurred in the transfer of assets, dropped by 16.9% during the period due to lower revenues and higher administrative and selling expenses.

	IIIQ 16			IIQ 16			IQ 16(1)			IVQ 15			IIIQ 15
Leaseable area		81,020			81,918			94,862			111,678			112,575
Occupancy		93.3	%		94.2	%		96.9	%		98.1	%		98.6	%
Monthly Rent (ARS/sqm)		357			338			243.5			230.2			223.0
Monthly Rent (USD/sqm)		27.5			26.0			25.9			25.3			25.3

(1) Includes 9 floors of Intercontinental Building sold on June 30, 2015.

The portfolio’s rental prices rose, reaching USD 27.5 per square meter.

Below is information on our offices and other rental properties segment as of March 31, 2016.

	Date of Acquisition		Leaseable Area sqm (1)		Occupancy Rate (2)			IRSA’s Effective Interest			Book Value (3) (ARS million)
Offices
Edificio República (4)	04/28/2008			19,885		90	%		100	%		190
Torre Bankboston (4)	08/27/2007			14,873		94	%		100	%		136
Bouchard 551	03/15/2007			-		-			100	%		7
Intercontinental Plaza (4)	11/18/1997			6,569		100	%		100	%		26
Bouchard 710 (4)	06/01/2005			15,014		100	%		100	%		60
Dique IV, Juana Manso 295	12/02/1997			-		-			100	%		-
Maipú 1300	09/28/1995			1,353		100	%		100	%		5
Libertador 498	12/20/1995			620		100	%		100	%		4
Suipacha 652/64 (4)	11/22/1991			11,465		77	%		100	%		8
Madero 1020	12/21/1995			-		-			100	%		-
Dot Building (5)	11/28/2006			11,242		100	%		80	%		123
Subtotal Offices				81,020		94	%		N/A			559
Other Properties
Santa María del Plata S.A.	17/10/97			106,100		100	%		100	%		13
San Martín plot (6)	05/31/11			109,610		75	%		50	%		7
Other Properties (7)		N/A		39,232		42	%		N/A			91
Subtotal Other Properties				254,942		80	%		N/A			111
TOTAL OFFICES AND OTHER				335,962		83	%		N/A			670
Notes:
(1) Total leaseable area for each property as of March 31, 2016. Excludes common areas and parking.
(2) Calculated dividing occupied square meters by leaseable area as of March 31, 2016.
(3) The contracts in effect as of March 31, 2016 in each property were computed.
(4) Corresponds to total consolidated leases. (5) Through IRSA Propiedades Comerciales S.A.
(6) Through Quality Invest S.A. (7) Includes the following properties: Ferro, Dot adjacent plot, Anchorena 665, Chanta IV, Constitución 1111 and Rivadavia 2774.

IV. Sales and Developments

Sales and Developments in millions of ARS	IIIQ 16		IIIQ 15		YoY Var			9M16	9M 15	YoY Var
Revenues		1		4		-75.0	%	6	11		-45.5	%
Gain from sale of investment properties		39		0		-		1,068	801		33.3	%
Operating Income		7		-4		-275.0	%	944	770		22.6	%
Depreciation and Amortization		-		-		0.0	%	-	-		0.0	%
EBITDA		8		-4		-300.0	%	944	770		22.6	%

For the first nine months of fiscal year 2016, EBITDA from the Sales and Developments segment increased by 22.6% as compared to the same period of the previous fiscal year, due a higher gain from sales of investment properties.

Below is a description of the sales of investment properties made during the period under review:

Maipú 1300 Building, located in Retiro district, City of Buenos Aires: During July and August 2015, 1,761 sqm corresponding to 4 floors of the Maipú 1300 building were sold, at a gain of ARS 57.1 million. During November and December 2015, 1,690 sqm corresponding to 4 additional floors of this building were sold, at a gain of ARS 52.9 million.

ü	Isla Sirgadero Plot, located in the Province of Santa Fe: On September 3, 2015, the 8,262,600 sqm plot was sold for a total amount of USD 4.0 million, at a gain of ARS 32.6 million.

Intercontinental Plaza Building, located in the Montserrat district, City of Buenos Aires: On September 10, 2015, our subsidiary IRSA Propiedades Comerciales S.A. (“IRSA CP”) sold 5,963 sqm comprising seven office floors, 56 parking spaces and 3 storage spaces for a total amount of ARS 324.5 million, at a gain of ARS 300.0 million. On February 4, 2016, our subsidiary IRSA CP sold 851 square meters corresponding to one office floor and 8 parking units for a total amount of ARS 41.5 million, at a gain of ARS 19.8 million.

ü	Juana Manso 294 Building (“Dique IV”): In December 2015, the entire Dique IV building located in Puerto Madero was sold, at a gain of ARS 586.8 million.

Catalinas partial sale: In December 2015, 4,896 sqm were sold corresponding to four office floors of a building to be developed in the “Catalinas” area in the City of Buenos Aires and 44 parking spaces located in the same building. Surrender of possession is expected within 48 months and the execution of the title deed within 60 months, in both cases counted as from even date. The transaction amount was ARS 180.3 million.

Accumulated sales as of March 31 of the fiscal periods (ARS Million)

DEVELOPMENT	IIIQ 16		IIIQ 15		Var %
Residential apartments
Condominios I and II(1)		-		4		-100.00	%
Caballito Nuevo		-		1		-100.00	%
Libertador 1703 and 1755 (Horizons) (2)		4		5		-20.00	%
Other residential apartments (3)		2		-		100.00	%
Subtotal Residential Apartments		6		10		-54.55	%
Residential Communities
Abril/Baldovinos(4)		-		1		-100.00	%
Subtotal Residential Communities		-		1		-100.00	%
TOTAL		6		11		-54.54	%

(1)	Through IRSA Propiedades Comerciales S.A.

(2)	Owned by CYRSA S.A.

(3)	Corresponds to Entre Ríos 465.

(4)	Includes sale of shares in Abril.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2016

Development	Company	Interest			Date of Acquisition	Land Area sqm		Saleable area sqm(1)		Buildable area sqm		Sold(2)			Location	Accumulated revenues as of March 2016		Accumulated revenues as of March 2015		Book Value (ARS Million)
Residential properties
Available for sale
Condominios del Alto I	IRSA CP		100	%	04/30/1999		-		2,082		-		100	%	Santa Fe		-		4		0
Condominios del Alto II	IRSA CP		100	%	04/30/1999		-		4,082		-		100	%	Santa Fe		-		-		1
Caballito Nuevo	IRSA		100	%	11/03/1997		-		7,323		-		100	%	CABA		-		1		-
Barrio Chico	IRSA		100	%	03/01/2003		-		2,872		-		100	%	CABA		-				0
El Encuentro	IRSA		100	%	11/18/1997		-		127,748		-		100	%	Buenos Aires		-		-		-
Abril Club de Campo – plots	IRSA		100	%	01/03/1995		-		5,135		-		100	%	Buenos Aires		-		1		-
Abril Club de Campo – Manor house(3)	IRSA		100	%	01/03/1995		31,224		34,605		-		100	%	Buenos Aires		-		-		2
Torres Jardín	IRSA		100	%	07/18/1996		-		-				-		CABA		-		-		-
Departamento Entre Ríos 465/9	IRSA CP		100	%			-		-				100	%	Buenos Aires		2		-		-
Horizons	IRSA		50	%	01/16/2007		-		60,232		-		100	%	Buenos Aires		4		5		1
Intangible – Receivable units									-								-		-		-
Beruti (Astor Palermo) (4)	IRSA CP		100	%	06/24/2008		-		2,170		-		-		CABA		-		-		33
Caballito Manzana 35	IRSA		100	%	10/22/1998		-		6,952		-		-		CABA		-		-		52
CONIL - Güemes 836 – Mz, 99 & Güemes 902 – Mz, 95& Retail Stores	IRSA CP		100	%	07/19/1996		1,389		-		5,994		-		Buenos Aires		-		-		5
Canteras Natal Crespo (2 commercial parcels)	IRSA		-				40,333		-		-		-		Buenos Aires		-		-		-
Isla Sirgadero	IRSA		100	%	02/16/2007		826,276		-	sin dato			-		Santa Fe		-		-		-
Pereiraola (Greenville)	IRSA 100%				04/21/2010	04/21/2010			39,634		-		-		Buenos Aires		-		-		8

Subtotal Residential properties							899,222		292,835		5,994						6		11		95
Land Reserves
Pilar R8 Km 53	IRSA		100	%	05/29/1997		74,828		-		-		-		Buenos Aires		-		-		2
Pontevedra	IRSA		100	%	02/28/1998		730,994		-		-		-		Buenos Aires		-		-		1
Mariano Acosta	IRSA		100	%	02/28/1998		967,290		-		-		-		Buenos Aires		-		-		1
Merlo	IRSA		100	%	02/28/1998		1,004,987		-		-		-		Buenos Aires		-		-		1
San Luis plot	IRSA		50	%	03/31/2008		3,250,523		-		-		-		San Luis		-		-		2
Subtotal Land Reserves							6,028,622		-		-						-		-		7
Future Developments
Mixed Uses
UOM Lujan (5)	IRSA CP		100	%	05/31/2008		1,160,000		-	sin dato			N/A		Buenos Aires		-		-		42
La Adela	IRSA		100	%	08/01/2014		10,580,000		-		-		N/A		Buenos Aires		-		-		215
San Martín plot (Ex Nobleza Piccardo) (6)	IRSA CP		50	%	05/31/2011		159,995		-		127,996		N/A		Buenos Aires		-		-		60
Puerto Retiro	IRSA		50	%	05/18/1997		82,051		-	sin dato			N/A		CABA		-		-		22
Solares Santa María (7)	IRSA		100	%	07/10/1997		716,058		-	sin dato			N/A		CABA		-		-		159
Residential													-				-		-		-
Coto Abasto Air Space	IRSA CP		100	%	09/24/1997		-		-		21,536		N/A		CABA		-		-		9
Neuquén - Residential parcel	IRSA CP		100	%	07/06/1999		13,000		-		18,000		N/A		Neuquén		-		-		1
Uruguay Zetol	IRSA		90	%	06/01/2009		152,977		62,756		-		N/A		Uruguay		-		-		87
Uruguay Vista al Muelle	IRSA		90	%	06/01/2009		102,216		62,737		-		N/A		Uruguay		-		-		60

Retail
Caballito Shopping plot (8)	IRSA CP		100	%			23,791		-	sin dato			N/A		CABA		-		-		-
Dot potential expansion	IRSA CP		80	%			15,881		-		47,643		N/A		CABA		-		-		-
Offices
Philips adjoining plots - Offices 1 & 2	IRSA CP		80	%	11/28/2006		12,800		-		38,400		N/A		CABA		-		-		25
Baicom	IRSA		50	%	12/23/2009		6,905		-		34,500		N/A		CABA		-		-		4
Intercontinental Plaza II (9)	IRSA CP		100	%	02/28/1998		6,135		-		19,598		N/A		CABA		-		-		2
Terreno Catalinas Norte	IRSA		100	%	12/17/2009		3,649		-		35,468		13	%	CABA		-		-		112
Subtotal Future Developments							13,035,458		125,493		342,973						-		-		806
Total Land Reserves							19,963,302		418,328		348,967						-		-		907

Notes:

(1) Saleable Area means the housing square meters proper, excluding parking and storage spaces. It is recorded at 100%, before making any sales.

(2) % Sold includes those sale transactions for which there is a Preliminary Sales Agreement, Possession or a Title Deed executed. Includes square meters of housing, non parking and storage spaces.

(3) Saleable Area includes 31,224 sqm of the plot and 4,712.81 total sqm of the Manor House (discounting 1,331.76 sqm of Ground Floor).

(4) Saleable Area excludes 171 commercial parking spaces to be received and the units as compensation.

(5) Mixed Used Feasibility requested, pending provincial approval.

(6) 127,996 sqm arise from current laws, a draft project is being made for 479,415 buildable square meters (pending approval).

(7) Feasibility requested for 716,058 buildable square meters, pending approval from the Legislative body of the City of Buenos Aires.

(8) Draft project of 71,374 buildable square meters, pending approval of zoning parameters.

(9) 6,135 sqm of surface area correspond to the parcel, which includes Intercontinental I and II.

V. Hotels

During the first nine months of fiscal year 2016, the hotel segment recorded an increase in revenues of 28.1% mainly due to the depreciation of the exchange rate, which resulted in an increase in the average rate per room, offsetting the lower average occupancy in the 3 hotels, which stood at 61.4% during the third quarter of 2016. The segment’s EBITDA rose 76.5%, as the increase in costs and selling expenses lagged behind that of revenues.

Hotels (in millions of ARS)	IIIQ 16		IIIQ 15		YoY Var			9M 16	9M 15	YoY Var
Revenues		162		104		55.8	%	406	317		28.1	%
Operating income		24		-3		-900.0	%	19	6		216.7	%
Depreciation and amortization		4		3		33.3	%	11	11		0.0	%
EBITDA		28		0		-		30	17		76.5	%

	IIIQ 16			IIQ 16			IQ 16			IVQ 15			IIIQ 15			IIQ 15
Average Occupancy		61.4	%		67.6	%		66.7	%		65.7	%		68.5	%		68.8	%
Average Rate per Room (ARS/night)		2,064			1,760			1,660			1,564			1,625			1,599
Average Rate per Room (USD/night)		184			178			179			182			191			190

The following is information on our hotel segment as of March 31, 2016:

Hotels	Date of Acquisition	IRSA’s Interest			Number of Rooms		Average Occupancy (1)			Average Rate		Book Value (in millions of ARS)
Intercontinental (3)	11/01/97		76.34	%		309		62.2	%		1,473		51
Sheraton Libertador (4)	03/01/98		80.00	%		200		65.4	%		1,332		29
Llao Llao (5)	06/01/97		50.00	%		205		56.4	%		3,871		78
Total						714		61.4	%		2,064		158

Notes:
1) Cumulative average for the 12-month period.
2) Cumulative average for the 12-month period.
3) Through Nuevas Fronteras S.A. (IRSA’s subsidiary).
4) Through Hoteles Argentinos S.A. (IRSA’s subsidiary).
5) Through Llao Llao Resorts S.A. (IRSA’s subsidiary).

Accumulated sales as of March 31 of the fiscal periods (ARS million)

	IIIQ 16		IIIQ 15		YoY Var			9M 16	9M 15	YoY Var
Intercontinental		54		33		62.3	%	138	110		25.06	%
Sheraton Libertador		30		21		43.3	%	84	69		21.88	%
Llao Llao		78		50		55.9	%	184	138		33.28	%
Total		162		104		55.4	%	406	317		27.95	%

VI. International

Lipstick Building, New York, United States

The Lipstick Building is a landmark building in the City of New York, located at Third Avenue and 53th Street in Midtown Manhattan, New York. It was designed by architects John Burgee and Philip Johnson (Glass House and Seagram Building, among other renowned works) and it is named after its elliptical shape and red façade. Its gross leaseable area is approximately 57,500 sqm and consists of 34 floors.

As of March 31, 2016, the building reached an occupancy rate of 95.11%, thus generating an average rent of USD 67.23 per sqm.

Lipstick	March-16			Dec-15			YoY Var
Gross Leaseable Area (sqm)		58,092			58,094			-
Occupancy		95.11	%		95.11	%	0pp
Rental price (USD/sqm)		67.23			65.26			3.02	%

In March 2016, two lease agreements were executed: one for the lease of the entire Floor 28 and another one for a portion of the underground floor, at an average rental price of US$ 85 per square meter. This will cause occupancy to rise to over 97% of the total surface area.

Moreover, we successfully completed the building’s certification process and obtained the LEED EB: O&M Gold certification. The implementation of this project started in July 2015, and it has concluded with a certification that endorses the best environmental practices, transforming the building’s operational standards.

Investment in Condor Hospitality Inc.

We maintain our investment in the Condor Hospitality Trust hotel REIT (NASDAQ: CDOR) through our subsidiary Real Estate Strategies L.P. (“RES”), in which we hold a 66.3% interest. Condor is a REIT listed in Nasdaq focused on medium-class and long-stay hotels located in various states of the United States of America, operated by various operators and franchises such as Comfort Inn, Days Inn, Hampton Inn, Holiday Inn, Sleep Inn, and Super 8, among others.

During the last months, the company’s results have shown an improvement in operating levels and it has continued with its strategy of selectively disposing of lower-class hotels at very attractive prices and replacing them with higher-class hotels

In March 2016, the Company exchanged its Class C preferred shares for new Class D preferred shares issued by Condor. In this new issue, “Stepstone Real Estate” joined as new partner to the investment by contributing US$ 30 million, which were used to retire the Class A and B Preferred shares and to acquire new hotels.

The new Class D preferred shares will accrue interest at an annual rate of 6.25% and will be convertible into common shares at a price of US$ 1.60 per share at any time upon the occurrence of an event of capitalization with respect to the Company.

Condor’s board of directors will be composed of 4 directors nominated by the Company, 3 by Stepstone and 2 independent directors. Moreover, the Company’s voting rights in Condor reach 49% of its total voting rights.

VII. Financial Transactions and Other

Interest in Banco Hipotecario S.A. (“BHSA”) through IRSA

BHSA is a leading bank in the mortgage lending industry, in which IRSA held an equity interest of 29.91% as of March 31, 2016 (excluding treasury shares). During the first nine months of fiscal year 2016, the investment in Banco Hipotecario generated income of ARS 196.1 million, 98.7% higher than in the same period of 2015. For further information, visit http://www.cnv.gob.ar or http://www.hipotecario.com.ar.

Israeli Operating Center

VIII. Investment in IDB Development Corporation

a)	Acquisition of Control over IDBD

On May 7, 2014, a transaction was closed whereby the Group, acting indirectly through Dolphin, acquired, jointly with E.T.H.M.B.M. Extra Holdings Ltd. (“ETH”, a non-related company incorporated under the laws of the State of Israel) controlled by Mordechay Ben Moshé, an aggregate of 106.6 million common shares in IDBD representing 53.30% of its stock capital, under the scope of the debt restructuring process of IDBD’s holding company, IDBH, with its creditors (the “Arrangement”).

Under the terms of the agreement entered into between Dolphin and ETH, to which Dolphin and ETH adhered (the “Shareholders' Agreement”), Dolphin acquired a 50% interest in this investment, while ETH acquired the remaining 50%. The initial amount invested by both companies was NIS 950 million, equivalent to approximately USD 272 million at the exchange rate prevailing on that date.

On October 11, 2015, the shareholders’ agreement became ineffective and IFISA (a company indirectly controlled by Eduardo S. Elsztain) acquired the shares in E.T.H.M.B.M. Extra Holdings, and the directors appointed by ETH in IDBD tendered their irrevocable resignation to their positions in the Board of Directors. In this way, Dolphin became entitled to appoint new board members.

In this way, the Group started to consolidate IDBD effective October 11, 2015.

As of to date, the investment made in IDBD is US$ 515 million, and IRSA’s indirect equity interest reached 68.3% of IDBD’s total stock capital.

b) Tender Offers

On March 31, 2016, Dolphin satisfied the commitments assumed by it under the amendment to the debt restructuring agreement of IDBD’s controlling company IDB Holdings Corporation Ltd. (“IDBH”) with its creditors (the “Arrangement”). Such changes were approved by 95% of IDBD’s minority shareholders on March 2, 2016 and by the competent court on March 10, 2016.

Therefore, as of March 31: (i) Dolphin purchased all the shares held by IDBD’s minority shareholders; (ii) all the warrants held by IDBD’s minority shareholders expired; and (iii) Dolphin made additional contributions in IDBD in the form of a subordinated loan, as described below.

The price paid for each IDBD share according to the holdings as of March 29, 2016 was: (i) NIS 1.25 in cash, resulting in a total payment of NIS 159.6 million (US$ 42.2 million); (ii) NIS 1.20 per share through the subscription and delivery of IDBD’s Series 9 bonds (“IDBD Bonds”) issued by IDBD and paid by Dolphin at par value; therefore, it subscribed bonds for NIS 166.5 million, including the payment to the warrant holders (as detailed below); and (iii) the commitment to pay NIS 1.05 (subject to adjustment) in cash in the event that Dolphin receives indirectly the control authorization over Clal Insurance Company Ltd. and Clal Insurance Business Holdings Ltd. (“Clal”) or IDBD sells its interest in Clal under certain standards (the “Consideration for Clal”), mainly related to the sale price of Clal above 75% of its book value and the proportion of Clal’s holding sold by IDBD, with Dolphin being required to pay in this regard, in the event that the above mentioned conditions are met, the sum of approximately NIS 155.8 (approximately US$ 40.8 million).

As concerns the warrants held by the minority shareholders that were not exercised as of March 28, 2016, each warrant holder received the difference between NIS 2.45 and the warrant’s exercise price, IDBD Bonds (“Payment to the Warrant Holders”) and is entitled to receive the Consideration for Clal.

In addition, Dolphin injected in the company NIS 348.4 million (the “Injection in IDBD”), which were contributed as a subordinated loan, convertible into shares.

To secure payment of the Consideration for Clal, on March 31, 2016 Dolphin set up a pledge over 28% of the total stock capital in IDBD and the collection rights of a subordinated loan for NIS 210.0 million made on December 1, 2015. If new shares are issued in IDBD, additional shares shall be pledged until reaching 28% of IDBD’s total stock capital.

Dolphin has promised that it will abstain from exercising its right to convert the subordinated loan into IDBD shares until the above mentioned pledge is not released. However, if the pledge is enforced, the representatives of IDBH’s creditors will be entitled to convert the subordinated debt into shares under conditions previously agreed to such effect, provided that the maximum amount of IDBD shares that may be pledged at any time will be 35% and any excess shares must be released.

On March 31, 2016, IDBD’s shares were delisted from the Tel Aviv Stock Exchange (“TASE”) and all the minority warrants were cancelled. The company will continue to be registered with the TASE as a “Debentures Company” pursuant to Israeli law, as it has bonds listed on such exchange.

As a result of the foregoing, as Dolphin performed its obligations under the terms of the amended Arrangement, Dolphin’s investment commitments in IDBD have been fully discharged, and only the payment of the Consideration for Clal would be pending in the event that the conditions herein described were met.

Segment Data

Within this center, the Group operates in the following segments:

The “Commercial Properties” segment mainly includes the assets and operating income derived from the business related to the subsidiary PBC. Through PBC, the Group operates rental and residential properties in Israel, United States and other locations in the world, and executes commercial projects in Las Vegas, United States of America.

o	The “Supermarkets” segment includes the assets and operating income derived from the business related to the subsidiary Shufersal. Through Shufersal, the Group mainly operates a supermarket chain in Israel.

o	The “Agrochemicals” segment includes the income from the associate Adama. Adama is a company engaged in agrochemicals, in particular for crops.

The “Telecommunications” segment includes the assets and operating income derived from the business related to the subsidiary Cellcom. Cellcom is supplier of telecommunication services and its main businesses include the provision of cellular and fixed telephone, data and Internet services, among others.

The “Insurance” segment includes the assets from the business related to Clal. This company is one of the largest insurance groups in Israel, whose businesses mainly comprise pension and social security insurance and other insurance lines. As set forth in Note 9, 51% of Clal’s controlling shares are deposited in a trust following the instructions of the Israeli’s Capital Markets Commission in order to comply with the sale of Clal’s controlling stake; therefore, the company is not fully consolidated on a line-by-line basis, but under a single line as a financial instrument at fair value, as required under IFRS under the current circumstances in which no control is exercised.

o	The “Others” segment includes the assets and income from other miscellaneous businesses, such as technological developments, tourism, oil and gas assets, electronics, and other sundry activities.

Operating Income – In Millions of NIS

	December 31, 2015 (for the period running from 09/30 to 12/31)
	Israeli Operating Center
	Commercial Properties		Supermarkets		Agrochemicals		Telecommunications		Insurance		Other		Total
Revenues from sales, leases and services		257		2,911				1,113				163		4,445
Costs		-155		-2,159				-976				-193		-3,483
Gross profit / (loss)		102		752		-		137		-		-30		962
Gain from sale of investment properties														-
General and administrative expenses		-18		-32				-62				-1		-113
Selling expenses		-4		-458				-161				-11		-634
Other operating loss, net		-		-				-1				-4		-5
Operating income / (loss)		80		262		-		-87		-		-46		210
Share of profit / (loss) of associates and joint ventures		-23		19		-35		-				16		-23
Segment profit / (loss)		57		281		-35		-87		-		-30		187
														-
Operating assets		15,135		7,247		2,419		6,343		1,315		1,590		34,049
Operating liabilities		-12,625		-6,138		-		-5,339		-		-725		-24,827
Operating assets / (liabilities), net		2,510		1,109		2,419		1,004		1,315		865		9,222

The revenues and operating income from the Commercial Properties segment through the subsidiary Property & Building (“PBC”) reached NIS 257 million and NIS 80 million, respectively (USD 69 million and USD 22 million, respectively) during the consolidated quarter (October 1, 2015 to December 31, 2015). During this quarter there was an increase in rental income and occupancy rates from PBC’s investment properties, mainly the HSBC building in the City of New York.

The Supermarkets segment, through Shufersal, recorded revenues of NIS 2,911 million (USD 775 million) for the quarter, mainly due to an increase in revenues from the retail and real estate segments. Same-store sales rose 6.4% during the quarter under review, compared to the same quarter of the previous fiscal year. Sales per square meter stood at NIS 5,799 in the fourth quarter of 2015, as compared to NIS 5,260 in the same quarter of the previous fiscal year, accounting for a 10.2% increase, mainly attributable to the reduction of sales areas and changes in the shopping cart components and sales campaign mix. Operating income from this segment reached NIS 262 million (USD 69 million).

The Telecommunications segment,operated by Cellcom, recorded revenues of NIS 1,113 million (USD 296 million). There was a decrease in revenues as compared to the same quarter of 2014 in both revenues from services and revenues from handsets. Netvision’s contribution to total revenues during the fourth quarter of 2015 was NIS 222 million. The reduction in revenues from services during the fourth quarter of 2015 mainly reflected lower revenues from cell telephone services due to the continued erosion of the price of these services as a result of stronger competition in the cell telephone market and lower revenues from international call services. The reduction in the revenues from handsets during the fourth quarter of 2015 was mainly due to the reduction in the number of cell phones sold during the fourth quarter of 2015 as compared to the fourth quarter of 2014, partially offset by an increase in revenues from handsets for Netvision’s final users. Netvision’s contribution to the revenues from handsets during the fourth quarter of 2015 was NIS 57 million. Operating loss for the fourth quarter of 2015 was NIS 87 million (USD 24 million).

The “Others” segment recorded revenues for NIS 163 million (USD 43 million), and an operating loss of NIS 46 million (USD 12 million).

As concerns “Clal”, the Group values its interest in this insurance company as a financial asset at fair value. The valuation of Clal’s shares was NIS 1,315 million (USD 350 million) as of March 31, 2016.

Finally, the results from the agrochemical company “Adama” are recorded at proportional equity value. For the consolidated quarter, a loss of NIS 35 million (USD 9 million) was recorded in this regard.

IDBD’s Balance Sheet as of December 31, 2015 (NIS million)

Non-current Assets: 28,531	Non-current Liabilities: 25,047

Current Assets: 10,650	Current Liabilities: 10,277

Total Assets: 39,181	Shareholders’ Equity: 3,857	Shareholders’ Equity Attributable to Controlling Shareholder: 131
		Shareholders’ Equity Attributable to Non-Controlling Shareholder: 3,726

IX. EBITDA by segment (ARS million)

Argentine Operating Center

9M 16	Shopping Centers	Offices	Sales and Developments	Hotels	International	Financial Transactions and Other	Total
Operating income / (loss)	1,215	133	944	19	78	3	2,392
Depreciation and Amortization	123	24	-	11	-	-	158
EBITDA	1,338	157	944	30	78	3	2,550
9M 15	Shopping Centers	Offices	Sales and Developments	Hotels	International	Financial Transactions and Other	Total
Operating income / (loss)	894	51	770	6	165	-2	1,884
Depreciation and Amortization	99	27	-	11	-	-	137
EBITDA	993	78	770	17	166	-2	2,022
EBITDA Var	34.74	101.28	22.60	76.47	-53.04	-248.15	26.11	%

Israeli Operating Center (NIS and USD million)

3M (Sep15 to Dec15)	Commercial properties	Supermarkets	Agrochemicals	Telecommunications	Insurance		Other	Total
EBITDA (NIS million)	86	152	-	292		-	-	530
EBITDA (USD million)	23	40	-	78		-	-	141

X. Reconciliation with Consolidated Income Statement (ARS million)

Below is an explanation of the reconciliation of the company’s income by segment with its consolidated income statement. The difference lies in the presence of joint ventures included in the segment but not in the income statement.

	Total Segment		Joint Ventures *		Common Maintenance Expenses and Common Advertising Fund		Intersegment eliminations		Income Statement
Revenues		18,868		-20		888		-5		19,731
Costs		-13,507		12		-901		4		-14,392
Gross Profit		5,361		-8		-13		-1		5,339
Income from sale of investment properties		1,068						0		1,068
General and administrative expenses		-812		1				6		-805
Selling expenses		-2,540		1				0		-2,539
Other operating income, net		91		-3				-5		83
Operating income		3,168		-9		-13		0		3,146
Income / (loss) from interests in associates and joint ventures		-692		6				0		-686
Income before financial income / (loss) and income tax		2,476		-3		-13		0		2,460

*Includes Puerto Retiro, Baicom, CYRSA, Nuevo Puerto Santa Fe and Quality (San Martín lot).

XI. Financial Debt and Other Indebtedness

Argentine Operating Center

Financial debt as of March 31, 2016:

Description	Currency	Amount (1)	Interest Rate	Maturity
Bank overdrafts	ARS	57.9	Variable	< 180 days
IRSA 2017 Notes, Series I(6)	USD	150.0	8.50
IRSA 2020 Notes, Series II(6)	USD	150.0	11.50
Series VI Notes	ARS	0.7	Badlar + 450 bps	27-Feb-17
IRSA CP Credit line	USD	60.0	Variable	25-Jun-16
Other Loans		1.8
IRSA’s Total Debt	USD	420.4
Cash&Eq + Investments IRSA(4)	USD	13.1
Credit for asset sale (3)	USD	127.5
IRSA’s Net Debt	USD	279.8
Bank overdrafts	ARS	16.4	Variable	< 360 days
CP Bank Loan	ARS	4.9	23.00
APSA 2017 Notes, Series I (2) (6)	USD	60.8	7.88
IRSA CP Notes, Series I ARS	ARS	27.7	26.5% / Badlar + 400 bps	20-Mar-17
Other Loans		1.7
Asset purchase debt (3)	USD	127.5	8.50
IRSA CP Notes, Series II	USD	360.0	8.75
IRSA CP’s Total Debt	USD	599.0
Cash&Eq + Investments IRSA CP(5)	USD	383.9
Repurchased debt (2)	USD	1.7
IRSA CP’s Net Debt	USD	213.4

1)Principal amount in USD (million) at an exchange rate of ARS 14.70/USD, without considering accrued interest or eliminations of balances with subsidiaries.
(2)As of March 31, 2016, IRSA CP had repurchased a principal amount of USD 1.7 million.
(3)Corresponds to a loan between IRSA and IRSA CP for the asset conveyance made in December 2014. On April 6, 2016, IRSA CP repaid the balance outstanding under the intercompany loan. (4)Cash & Equivalents plus Investments IRSA includes Cash & Cash Equivalents, IRSA + Investments in current and non-current financial assets IRSA. (5)Cash & Equivalents plus Investments IRSA CP includes Cash & Cash Equivalents IRSA CP + Investments in current and non-current financial assets IRSA CP.

(6) Tender Offers and Consent Solicitations for IRSA CP’s Notes, Series I and IRSA’s Notes, Series I and II

On March 3, 2016, IRSA and IRSA CP announced the launch of cash tender offers for: (i) up to USD 76.5 million in principal amount of IRSA’s outstanding 11.500% Notes due 2020, Series No. 2, subject to a possible increase of the 2020 Notes Tender Cap by a principal amount of up to USD 73.5 million, in IRSA’s sole discretion; (ii) any and all of IRSA’s outstanding 8.500% Notes due 2017, Series No. 1; and (iii) any and all of IRSA CP’s outstanding 7.875% Notes due 2017, Series No. 1.

In conjunction with the Tender Offers, (i) IRSA solicited from (a) holders of the 2020 Notes consents to certain proposed amendments to the indenture, dated as of July 20, 2010, which would modify or eliminate certain restrictive covenants and certain other provisions in the 2020 Notes Indenture and the 2020 Notes, and (b) holders of the 2017 Notes consents to certain proposed amendments to the indenture, dated as of February 2, 2007, which would eliminate substantially all of the restrictive covenants, and modify or eliminate certain events of default and certain other provisions in the 2017 Notes Indenture and the 2017 Notes and (ii) IRSA CP solicited from holders of the IRSA CP Notes consents to certain proposed amendments to the indenture, dated as of May 11, 2007, which would eliminate substantially all of the restrictive covenants and modify or eliminate certain events of default and certain other provisions in the IRSA CP Notes Indenture and the IRSA CP Notes.

The following table sets forth certain information on the principal payment terms of the Tender Offers and Consent Solicitation.

Existing Notes	CUSIP Numbers	ISINs	Principal Amount Outstanding	Purchase Price	Early Tender Payment	Consent Payment	Total Consideration
11.500% Notes due 2020	450047AG0 / P5880CAB6	US450047AG04 / USP5880CAB65	USD 150,000,000	USD 1,070.00	USD 30.00	USD 10.00	USD 1,110.00
8.500% Notes due 2017	450047AF2 / P5880CAA8	US450047AF21 / USP5880CAA82	USD 150,000,000	USD 975.00	USD 30.00	N/A	USD 1,005.00
7.875% Notes due 2017	02151PAB3 / P0245MAC3	US02151PAB31 / USP0245MAC30	USD 120,000,000	USD 974.50	USD 30.00	N/A	USD 1,004.50

The tender offers were subject to certain conditions, including (i) the consummation of a contemporaneous offering of notes in the international capital markets by IRSA CP in order to finance the tender offers; (ii) related repayment by IRSA CP of the US$240.0 million unpaid balance of the purchase price owing by IRSA CP to IRSA for its purchase of office buildings and land reserves in December 2014; (iii) more than 50% of the outstanding aggregate principal amount of the 2020 Notes being validly tendered and not validly withdrawn in the 2020 Notes Offer in accordance with the terms and conditions set forth in the Offer Documents as amended or supplemented, (iv) the Requisite Consents being obtained and in full force and effect; and (v) the General Conditions (any political, economic or financial material change in the conditions, among others).

On April 4, 2016, IRSA and IRSA CP announced the final results of the tender offers and consent solicitations, as described in the following table:

Existing Notes	CUSIP Numbers	ISINs	Principal Amount Outstanding	Approximate Amount of Existing Notes Tendered	Approximate Percentage of Existing Notes Tendered	Approximate Percentage of Consents Received
11.500% Notes due 2020	450047AG0 / P5880CAB6	US450047AG04 / USP5880CAB65	USD 150,000,000	US$78,563,000	52.37%	57.98%
8.500% Notes due 2017	450047AF2 / P5880CAA8	US450047AF21 / USP5880CAA82	USD 150,000,000	US$75,446,000	50.30%	50.30%
7.875% Notes due 2017	02151PAB3 / P0245MAC3	US02151PAB31 / USP0245MAC30	USD 120,000,000	US$59,504,000	49.59%	49.59%

On March 23, 2016, the Meeting of Holders of IRSA’s Notes, Series 2, was held. The requisite quorum was present at the meeting, and the Holders of a majority in aggregate principal amount of IRSA’s 11.500% Notes due 2020, Series 2 then outstanding voted in favor of approving the proposed amendments to IRSA’s 2020 Indenture. Approximately 56.79% of the holders of the 11.500% Notes due 2020 approved the conditions of IRSA’s 2020 Notes Indenture.

In connection with the financial covenants applicable to IRSA’s 11.500% Notes due 2020, the Noteholders’ Meeting dated March 23, 2016 approved:

i) the amendment to the Limitation on Restricted Payments covenant, whereby the original covenant was replaced so as to contemplate IRSA’s capacity to make any restricted payment provided that :

(a) no Event of Default shall have occurred and be continuing;

(b)

IRSA is able to incur at least USD 1.00 of Additional Indebtedness under the Limitation on Incurrence of Additional Indebtedness; and

ii) IDB Development Corporation Ltd. or any of its Subsidiaries are excluded for purposes of the definition of “Subsidiary” or any of the definitions or covenants of IRSA’s 2020 Notes Indenture (whether or not the Financial Statements of any of such companies are at anytime consolidated with IRSA’s Financial Statements).

On March 28, 2016, IRSA and The Bank of New York Mellon, as Trustee, entered into a Supplementary Indenture reflecting all the changes approved by the Noteholders’ Meeting, which became effective on April 8, 2016.

The Meeting of Holders of IRSA’s 2017 Notes convened for March 23, 2016 could not be held due to the failure to reach the requisite quorum. On April 7, 2016, the Meeting of Holders of IRSA’s Series 1 Notes was held on second call. At such meeting, the requisite quorum was present and the Holders of a majority in aggregate principal amount of IRSA’s 8.50% Notes due 2017, Series 1, then outstanding, voted in favor of the approval of the proposed amendments to IRSA’s 2017 Indenture. Approximately 50.30% of the holders of the 2017 Notes approved the terms of IRSA’s 2017 Notes Indenture, which basically provided for the deletion of all the financial restrictions.

On April 7, 2016, IRSA and The Bank of New York Mellon, as Trustee, entered into a Supplementary Indenture reflecting all the changes approved by the Noteholders’ Meeting, which became effective on April 8, 2016.

On March 28, and April 8, 2016, IRSA CP purchased USD 59,152,000 and USD 352,000, respectively, in aggregate principal amount of the 7.875% Notes due 2017, Series 1, and also on those dates it instructed the Trustee to repay USD 59,504,000 in aggregate principal amount of such Notes. After those repayments, the aggregate principal amount of outstanding 7.875% Notes due 2017, Series 1, issued by IRSA CP is USD 60,496,000.

On April 4, 2016, the Board of Directors of IRSA CP approved the repayment of the outstanding balance of USD 60,496,000 of IRSA CP’s Notes, Series 1. Payment of such Notes will be made on May 4, 2016.

On April 8, 2016, IRSA purchased USD 75,446,000 in aggregate principal amount of the 8.500% Notes due 2017, and also on such date it instructed the Trustee to repay such aggregate principal amount of Notes. After those repayments, the aggregate outstanding principal amount is USD 74,554,000.

On April 8, 2016, IRSA purchased USD 78,563,000 in aggregate principal amount of 11.500% Notes due 2017, Series 2, and also on such date it instructed the Trustee to repay such aggregate principal amount of Notes. After those repayments, the aggregate outstanding principal amount is USD 71,437,000.

Issue of IRSA CP’s 8.75% Notes due 2023, Series II

On March 23, 2016, IRSA CP issued Notes for an aggregate principal amount of USD 360 million under our Global Note Program. The Series II Notes accrue interest semi-annually, at a fixed rate of 8.75% per annum, and are repayable upon maturity, on March 23, 2023. Their issue price was 98.722% of the principal amount.

IRSA CP’s 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 in additional indebtedness, IRSA CP is required to meet the Consolidated Interest Coverage Ratio on additional indebtedness, which should be greater than 2.00. The Consolidated Interest Coverage Ratio is defined as Consolidated EBITDA divided by consolidated interest expense. Consolidated EBITDA is defined as operating income plus depreciation and amortization and other consolidated non-cash charges.

The Series II Notes contain financial covenants limiting IRSA CP’s ability to declare or pay dividends in cash or in kind, unless the following conditions have been met at the time of payment:

a) no Event of Default shall have occurred and be continuing;

IRSA is able to incur at least USD 1.00 of Additional Indebtedness under the “Limitation on Incurrence of Additional Indebtedness”; and

the aggregate amount of such Restricted Payment 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 cumulative consolidated interest expense for such period; and

(ii)

any reductions of Indebtedness of the Issuer or its Subsidiaries after the Issue Date (other than Indebtedness of Subsidiaries owed to the Issuer) by conversion or exchange to Capital Stock of the Issuer or its Subsidiaries.

Israeli Operating Center

Financial debt as of December 31, 2015

Indebtedness	Amount (1)
IDBD’s Total Debt		787
DIC’s Total Debt		1,174
Shufersal’s Total Debt		779
Cellcom’s Total Debt		974
PBC’s Total Debt		2,442
Others’ Total Debt (2)		157

(1) Principal amount in USD (million) at an exchange rate of 3.8911 NIS/USD, without considering accrued interest or elimination of balances with subsidiaries.

(2) Includes IDB Tourism, Bartan and IDBG.

XII. Subsequent Events

Argentine Operating Center

April 2016: Announcement of Results of the Tender Offers and Consent Solicitation and Extension of Tender Offer and Consent Solicitation for the Notes

On April 1, 2016, the Company announced the results of the previously announced tender offers to purchase for cash (the “Tender Offers”) for: (i) up to US$76.5 million in aggregate principal amount (the “2020 Notes Tender Cap”) of IRSA’s outstanding 11.500% Notes due 2020, Series No. 2 (the “2020 Notes”); (ii) any and all of IRSA’s outstanding 8.500% Notes due 2017, Series No. 1 (the “2017 Notes”); and (iii) any and all of IRSA CP’s outstanding 7.875% Notes due 2017, Series No. 1 (the “IRSA CP Notes” and, together with the 2020 Notes and the 2017 Notes, the “Existing Notes”). The principal purpose of the Tender Offers is to retire and cancel the Existing Notes purchased by the Purchasers in the Tender Offers.

April 2016: Repayment of Intercompany Loan

On April 6, 2016, the Company repaid the intercompany loan balance owed to the company for USD 240 million, plus accrued interest, incurred as a result of the purchase of the office portfolio in December 2014.

April 2016: Transfer of offices and parking spaces to be built in the “Catalinas” site

The Company sold to its subsidiary IRSA Propiedades Comerciales S.A. (“IRSA CP”) 16,012 square meters, consisting of 14 floors (from 13 to 16 and from 21 to 30) intended for long term lease and 142 parking spaces of the building to be built in the “Catalinas” area, City of Buenos Aires. The building to be built will have a gross leaseable area of 35,468 square meters distributed over 30 office floors and 316 parking spaces in 4 underground levels. Surrender of possession is expected to take place in December 2019, and the deed of conveyance is planned to be executed in December 2020.

The transaction price was set considering two components: a “Fixed” portion, relating to the incidence of the land over the square meters purchased by IRSA CP, for a total amount of ARS 455.7 million (approximately USD 1,600 + VAT per square meter), which was paid on the date hereof, and a “Determinable” portion, as to which IRSA will pass through to IRSA CP only the actual cost of the works per square meter.

This transaction will not generate income in the Company’s consolidated financial statements because it is a related-party transaction.

Israeli Operating Center

·	On May 9, 2016, IDBD received a letter from the Insurance Commission whereby it gave notice to it that it had instructed the trustee who holds Clal’s shares to sell 5% of such shares. As of the date of these financial statements, no action had been taken in this regard.

On April 21, 2016, a meeting of bondholders (Series I) was held in which the bondholders resolved to declare the immediate repayment of the outstanding balance due by IDBD to the bondholders (Series I), and the attorney for the bondholders’ (Series I) Trustee demanded the company to pay such balance by May 8, 2016. In its response, the company stated to the Trustee’s attorney that it fully rejected the bondholders’ meeting resolution as being devoid of any legal basis, and that it reserved its right to file legal actions against the Trustee. The bondholders’ meeting resolution is legally ineffective until it is validated by a competent court. As of the date of these financial statements, the bondholders had not made any filing with a competent court.

XIII. Comparative Summary Consolidated Balance Sheet Data

	03.31.16	03.31.15	03.31.14
Non-current assets	105,529	7,572	8,216
Current assets	51,271	1,690	1,244
Total Assets	156,800	9,262	9,460
Non-controlling Interest	6,284	374	429
Shareholder’s Equity attributable to controlling interest	1,277	1,676	2,490
Total Shareholder´s Equity	7,561	2,050	2,919
Non-current liabilities	104,074	4,628	5,167
Current Liabilities	45,165	2,584	1,374
Total Liabilities	149,239	7,212	6,541
Total Liabilities and Shareholder´s Equity	156,800	9,262	9,460

XIV. Comparative Summary Consolidated Income Statement Data

	03.31.16	03.31.15	03.31.14
Operating income	3,146	1,866	889
Income from interest in associates and joint ventures	-686	-842	102
Income before financial income / (loss) and income tax	2,460	1,024	991
Financial income	1,000	84	94
Financial expenses	-4,284	-825	-1,521
Other financial income	35	-57	245
Financial income / (loss), net	-3,249	-798	-1,182
(Loss) / Income before income tax	-789	226	-191
Income tax	-250	-390	112
Net loss	-1,039	-164	-79
Attributable to:
Controlling company’s shareholders	-676	-245	-92
Non-controlling interest	-363	81	13

XV. Comparative Summary Consolidated Cash Flow Data

	03.31.16	03.31.15	03.31.14
Net cash provided by operating activities	2,764	736	686
Net cash (used in) / provided by investment activities	9,035	301	-598
Net cash provided by (used in) financing activities	583	-1,298	-688
Net increase / (decrease) in cash and cash equivalents	12,382	-261	-600
Cash and cash equivalents at the beginning of the fiscal year	375	610	797
Gain / (loss) from exchange rate differences of cash and cash equivalents	6,467	-111	42
Cash and cash equivalents at the end of the period	19,224	238	239

XVI. Comparative Ratios

	03.31.2016		03.31.2015		03.31.2014
Liquidity
CURRENT ASSETS	51,271	1.14	1,690	0.65	1,244	0.91
CURRENT LIABILITIES	45,165		2,584		1,374
Indebtedness
TOTAL LIABILITIES	149,239	116.87	7,212	4.30	6,541	2.63
SHAREHOLDERS’ EQUITY	1,277		1,676		2,490
Solvency
SHAREHOLDERS’ EQUITY	1,277	0.01	1,676	0.23	2,490	0.38
TOTAL LIABILITIES	149,239		7,212		6,541
Restricted Assets
NON-CURRENT ASSETS	105,529	0.67	7,572	0.82	8,216	0.87
TOTAL ASSETS	156,800		9,262		9,460

XVII. Brief comment on prospects for the next period

Our real estate businesses in Argentina and abroad have posted sound results in the first nine-month period of fiscal year 2016. We believe that the diversification of our business, with real estate assets in Argentina and abroad, favorably positions us to face all the challenges and opportunities that may arise in the coming years.

Our subsidiary IRSA Propiedades Comerciales S.A. keeps recording sound growth in both its shopping centers and premium offices segments. Although shopping center sales saw a slight deceleration in the third quarter of the fiscal year, occupancy remained almost full, at 98.6%. Customer flow keeps increasing and tenants continue to choose us to showcase their brands.

We will remain active during the year by promoting marketing actions, events, and promotions in our shopping centers, which have proved to be highly effective in terms of sales and have been eagerly endorsed by the public. Moreover, we plan to optimize even further the performance of our current shopping centers through improvements that result in taking better advantage of the leaseable square meters and creating higher functionality and appeal for the benefit of consumers, retailers, and tenants alike. Along these lines, we have launched a project for expanding our Alto Palermo shopping center, which is strategically located in the heart of the city and generates the highest sales per square meter in our portfolio. The project adds approximately 4,000 square meters of gross leaseable area to the shopping center, and works are expected to start in the next fiscal year.

Offices continue to exhibit sound rental prices in USD per sqm and similar occupancy rates as those observed in the previous quarter, standing at 94%. We have recorded better results from this segment during the quarter under review, thanks to the variation in the exchange rate, and we expect to obtain sound results during the next quarter.

We were able to consummate the sale of the office assets that had not been transferred to IRSA Propiedades Comerciales, as they were intended for sale. During the first 9 months of fiscal year 2016, we sold most of such stock, including the building on Juana Manso 297, certain floors in Maipú 1300 building, and four floors in a building to be developed on the “Catalinas” site in the City of Buenos Aires.

Our subsidiary IRSA Propiedades Comerciales has recently launched an office building project in the commercial complex adjacent to our Dot Baires shopping center. The project, known as “Polo Dot”, will include, in a first stage, the development of a 11-floor, 30,000-square meter office building in a property owned by the company. Works will start during the next fiscal year, and we have had a large demand for premium office spaces in this emerging new commercial hotspot.

We are optimistic regarding the opportunities that may arise in Argentina toward the closing of fiscal year 2016 and the start of the next fiscal year hand in hand with the new administration. We have a large reserve of lands intended for future shopping-center, office, and mixed-use developments in an industry scenario with high growth potential.

As concerns our investments outside Argentina, we will continue working in the improvement of the operating ratios of our “Lipstick” building in New York. Our investment in “Condor Hospitality Trust” hotel REIT (NASDAQ: CDOR) has shown very good results in the last months derived from its sales of hotels, whilst it has managed to seize good opportunities for purchasing higher class hotels. We believe that Stepstone’s recent entry as partner to the investment and the simplification of the shareholding structure will help unleash value in Condor. We trust in the new senior management and hope to reap the benefits of this investment in the future.

Regarding our investment in the Israeli company IDBD, during this fiscal year we have been reducing the company’s indebtedness level and rolling out a strategy intended to improve operating margins in each of its business units. A new CEO and CFO were appointed, who are working proactively toward simplifying and optimizing its capital structure. In 2016, we will continue to work for deleveraging the company and improving the results of its operating subsidiaries. We trust in the value of this investment, which we expect will deliver very good results in the medium term.

Taking into account the quality of the real estate assets in our portfolio, the Company’s financial position and low indebtedness level and its franchise for accessing the capital markets, we remain confident that we will continue consolidating the best real estate portfolio in Argentina and diversifying our operations by adding businesses abroad with attractive value-creation opportunities.