Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (May 2015)
70 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, May 2015
Slide 1: IGD Presentation: 1Q 2015 Results and 2015-2018 Business Plan
IGD PRESENTATION 1Q 2015 Results Presentation and 2015 – 2018 Business Plan
Slide 2: Disclaimer
This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. DISCLAIMER The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
Slide 3: Index
Index 3 INTRODUCTION TO THE IGD GROUP 4 SUMMARY OF 1Q2015 RESULTS 16 BP 2015-2018 29 ATTACHMENTS 1Q 2015 62 1Q Results presentation and 2015-2018 Business Plan Presentation
Slide 4: Introduction to the IGD Group
INTRODUCTION TO THE IGD GROUP
Slide 5: IGD is one of the main players in the Italian real estate sector
5 IGD is one of the main player in the Italian real estate sector of the large organized distribution: develops and manages shopping centers across the country and has a significant presence in retail distribution in Romania Presence throughout the territory, capital strength, processing power, cont
Slide 6: Our business model
6 Our business model A careful merchandising mix, marketing activity adapted to each DIRECT MANAGEMENT context and various customer related services but, especially in OF THE SHOPPING CENTRES this economic environment, careful attention paid to tenants’ needs MEDIUM SIZED AND EASILY In line with the
Slide 7: Italian Portfolio: hypermarkets and shopping malls
7 Italian Portfolio: hypermarkets and shopping malls (as at 31/12/2014) TENANTS OF 19 SHOPPING MALLS 24 HYPERMARKETS HYPERMARKETS CENTRO D'ABRUZZO -Pescara CENTRO D'ABRUZZO -Pescara Coop Adriatica PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Adriatica ESP - Ravenna ESP
Slide 8: Main lease terms
8 Main lease terms Italian Shopping Malls Italian Hypermarkets Romanian Shopping Malls Main lease terms: Main lease terms: Main lease terms: Average maturity: Average maturity: 6 to 18 years (+ 6 years) Average maturity: Lease agreement (only space): 6 years Rents indexation: 75% of CPI 2 years for
Slide 9: SIIQ regime: main features
9 SIIQ regime: main features SIIQ STATUS FOR IGD SINCE 1 JANUARY 2008 At least 80% of total assets must be rental asset KEY PARAMETERS At least 80% of total positive components of P&L must be rental income (excluding change in FV) Largest shareholder stake ≤ 60% (vs. previous 51%) SHAREHOLDING LIMIT
Slide 10: IGD's shareholders and governance
10 IGD’s shareholders and governance IGD IS LISTED ON THE STAR SEGMENT OF BORSA ITALIANA TOTAL SHARES 756,356,289 SHARE CAPITAL € 549,760,278.52 COOP ADRIATICA 5,05% 56.92% UNICOOP TIRRENO 43,99% 38,03% FREE FLOAT Market QUANTUM STRATEGIC 12,93% PARTNERS LTD* MARKET SHAREHOLDING REFLECTED IN A GOVER
Slide 11: IGD top management
11 IGD top management GILBERTO COFFARI (1946) CLAUDIO ALBERTINI (1958) Chairman Chief Executive Officer Chairman of IGD's Board since its creation in 2000 Appointed in May 2009 Chairman of Coop Adriatica from 2006 to 2011 Board member at IGD since 2006 Currently board member of the BancaSAI and of F
Slide 12: World (1/2)
12 WORLD (1/2) 9 LEGAL ENTITIES THROUGHOUT ITALY Veneto, Emilia Romagna, Marche, Abruzzo Toscana, Lazio, Umbria, Campania Lombardia, Sicilia Piemonte Liguria, Piemonte Emilia Romagna, Lombardia, Trentino, Veneto, Friuli Venezia Giulia Emilia Romagna, Puglia, Basilicata Toscana Toscana, Umbria, Abruz
Slide 13: World (2/2)
13 WORLD (2/2) Market share in Italy: 19.1% (+0.6% vs 2012) Turnover : €12,724M N°of point of sale : ~ 1,200 Employees: ~ 54,700 Members: 8 million people (+3.4% vs 2012) COOP PRODUCTS AND SERVICES Goods with Coop brand: Market share of 27% (+1% vs 2012) Coop Salute: 119 points of sale Coop Voce: 1.
Slide 14: Coop Adriatica
14 Coop Adriatica Turnover: €2.1 billion Point of sale: 175 Employees: 8,979 Members: 1,258,452 (+3.79% vs 2012) STRATEGIC PARTNERSHIPS UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA IPERCOOP SICILIA SPA, SUPERCOOP SICILIA SRL and DISTRIBUZIONE ROMA SRL DIVERSIFICATION INITIATIVES RO
Slide 15: Unicoop Tirreno
15 Unicoop Tirreno Turnover: €1.18 billion Point of sale: 112 Employees: 5,118 Members: 942,466 (+2.40% vs 2012) STRATEGIC PARTNERSHIPS UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA UNICOOP TIRRENO HAS SET-UP 2 E-COMMERCE PLATFORMS allows you to purchase food products online and hav
Slide 16: Results presentation as at 31/03/2015
Results presentation as at 31/03/2015
Slide 17: Highlights
17 Highlights REVENUES 31.0 € mn •Core business revenues (4.6% vs 31/03/2014) EBITDA 21.0 € mn •EBITDA (core business) (+4.2% vs 31/03/2014) 77.5% •EBITDA margin Freehold (-1 percentage points) Group Net Profit 9.2 € mn (+48.8% vs 31/03/2014) 10.5 € mn Funds From Operations (FFO) core business (+20.
Slide 18: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 19: Revenues
19 Revenues BREAKDOWN OF RENTAL AND REAL ESTATE TOTAL REVENUES (€/000) ACTIVITY INCOMES BY TYPE OF ASSET Total Revenues 31,031 31,400 +1.2% 76 0.3% 64 0.2% 258 7.0% 1.6% 1,278 1,263 Core 1,265 Business 32.8% +4.6% 58.1% 29,802 28,422 CONS 2014 CONS 2015 MALLS HYPERMARKETS CITY OTHER ROMANIA "PORTA A
Slide 20: Rental Income Drivers
20 Rental Income Drivers (€/000) +3.8% +4.9% -185 79 - 42 12 1,462 1,392 +0.3% 66 LFL Italian revenues Acquis/Extens/Restyling Other Romania Romania (Instrumental Porta a Mare Total change Vacancy) Higher revenues in non LFL perimeter: LFL Italy: +0.3% Centro d’Abruzzo extension; Le Porte di Strateg
Slide 21: Core Business Direct costs and G&A expenses
21 Core Business Direct costs and G&A expenses CORE BUSINESS DIRECT COSTS (€ 000) +6.0% 7,140 8,000 7,140 Main variations due mainly to: • IMU (property tax) (also because of more 7,000 assets); 6,000 2,968 2,735 • Condominum expenses (also due to the 5,000 drawing up of new contracts with rents 4,0
Slide 22: Net Group Profit: € 9.2 mn (+48.8%)
22 Net Group Profit: € 9.2 mn (+48.8%) NET PROFIT EVOLUTION (€ 000) 228 801 1,184 106 73 841 9,215 6,194 Group net profit Change in core Change in Ebitda Change in Change in financial Change in taxes Change in Group net profit 31/12/2014 business Ebitda 'Porta a mare' depreciations, and extraordinar
Slide 23: Core Business Funds From Operations
23 Core Business Funds From Operations Funds from Operations 31/03/2014 31/03/2015 ∆ ∆% Pre-tax profit 7,923 10,003 2,079 26.24% Of which: Depreciation and other provisions 372 339 -34 -8.90% • +€0,9 mn for Ebitda Change in FV and devaluations 453 413 -41 increase -8.96% Extraordinary management -12
Slide 24: Operating Performance
OPERATING PERFORMANCE
Slide 25: Commercial Highlights
25 Commercial Highlights Footfalls in Italian IGD Shopping Malls -0.3% progressive change Tenant sales in Italian IGD Shopping Malls +6.8% progressive change Hypermarket sales -1.8% progressive change IGD’s hypermarket and supermarket sales* -1.4% progressive change Footfalls in Romanian WINMARKT +2
Slide 26: Financial Structure
FY 2009 RESULTS FINANCIAL Bologna STRUCTURE November 11, 2011
Slide 27: Financial Highlights (1/2)
27 Financial Highlights (1/2) 31/12/2014 31/03/2015 GEARING RATIO (D/E) 0.95 0.94 LOAN TO VALUE 48.3% 48.2% AVERAGE COST OF DEBT* 4.03% 4.03% INTEREST COVER RATIO 1.77X 2.02X AVERAGE LENGTH OF LONG TERM DEBT 6.2 years 6 years (bond included) The exchange bond was issued for an amount equal to € 162
Slide 28: Financial Highlights (2/2)
28 Financial Highlights (2/2) 31/12/2014 31/03/2015 HEDGING ON LONG TERM DEBT + BOND 90.9% 90.9% BANKING CONFIDENCE € 267,5 mn 272.5€ mn BANKING CONFIDENCE AVAILABLE € 234 mn 235.4€ mn MKT VALUE OF MORTGAGE FREE ASSETS/LANDS € 618,9 mn 618.9€ mn 1Q Results presentation and 2015-2018 Business Plan Pr
Slide 29: 2015-2018 Business Plan presentation
2015 – 2018 Business Plan presentation
Slide 30: A look back…
30 A look back… Italy’s GDP and BTP spread 2007 – 2014* 10 512 600 8 500 CONCRETE EFFECTS OF THE CRISIS 6 400 300 4 1,5% 132 200 • GDP: -8.9% from 2007 to 2014** 2 100 • Consumption: - 7.7% from 2007 to 0 - 0,4% 33,3 2008 2010 2012 2014 0 2014** -2 -100 -4 -2,8% -200 -6 -300 -5,5% Italy's GDP Spread
Slide 31: New BP: it is time to grow!!!
31 New BP: it is time to grow!!! What has changed? 240 120,0 Thousands 220 115,0 In the macroeconomic context 200 110,0 180 105,0 • First concrete signs of a trend reversal: all the 160 100,0 growth forecasts have been revised upward 140 95,0 against Q4 2014 120 90,0 • The Italian consumer confidenc
Slide 32: Macroeconomic indicators
32 Macroeconomic indicators Italy’s GDP trend (% change) In Italy 2,0% 1.5% Positive effects of the ECB’s QE, lower oil prices and a 1,5% 1.3% weaker Euro; Growth driven by internal demand (consumption forecast 1,0% to grow from 0% in 2014 to +1.5% in 2018) Inflation rate slowly recovering (expected
Slide 33: The retail real estate
33 The retail real estate Italy BTP Yields vs Gross Initial Yields of IGD’s Italian Malls the Italian real estate market’s positive trend confirmed in Q1 2015: total investments reached € 7.00% 6.58% 2.1 billion, 10% of which in the Retail sector* 6.00% 5.00% Italy is one of the most interesting mar
Slide 34: Strategy and operational areas
34 Strategy and operational areas Our goal: Confirm our position as a leading owner COM MERCIAL ASSET and manager of shopping centers in Italy. / MA RKETING MAN AGEMENT Our shopping centers, local points of reference, have reinforced their F U L LY INTEGRATED positions, maintained a solid base of AP
Slide 35: Commercial/marketing area (1/2)
35 Commercial/marketing area (1/2) Close attention to consumers’ changing needs and, therefore, to the innovation that retail offers Ability to understand and react to changes in consumer trends: new New hypermarket in food anchor needs, development of temporary shops, introduction of Tiburtino, aft
Slide 36: Commercial/marketing area (2/2)
36 Commercial/marketing area (2/2) Marketing/management Shopping centers as “Spaces to be lived in” 441 Events held in 2014 Visitors attracted Centrally coordinated marketing plans shared identity and cost 10% by IGD events, (source: internal optimization event satisfaction survey) Planning/hosting
Slide 37: Focus Romania
37 Focus Romania • The macroeconomic outlook confirms a moderate but clear recovery trend with an expected positive effect over consumption and retail perfomance of the assets • Completion of refurbishment pipeline began in 2010; focus on retail investment and energetic efficiency • Continuation of
Slide 38: Asset management area
38 Asset management area Revision/remodeling of the internal spaces based on commercial needs and consumer trends (ie: structural remodeling of spaces, creation of medium surface areas with particularly attractive tenants…) Le Porte di Napoli: mall, extension, remodeled interiors and downsized hyper
Slide 39: Investment Plan
39 Investment Plan We will continue to work on and complete the commited pipeline presented in the business plan 2009-2013 2009 - 2014 2015 - 2018 • Total investments 2009-2014: €790 • Total investments: approx. €260 mn mn* • approx. €185 mn of which in • 13 new assets in the portfolio** development
Slide 40: Disposals
40 Disposals We will complete the disposals included in the previous BP (2/3 of the €150mn in disposals planned already completed) at levels equal to or higher than book value (as already demonstrated in the previous disposals) Total disposals planned for the Porta a Mare project: ca € 40mn With a v
Slide 41: Investment Pipeline
41 Investment Pipeline Openings expectations Total Investment month year Before 2015 2015 2016 2017 2018 in BP ('15-'18) CHIOGGIA may 2015 30.0 6.4 PORTO GRANDE - Medium surface areas Apr 2017 4.3 4.9 ESP EXTENSION Apr 2017 18.6 35.5 CREMA EXTENSION sep 2018 6.3 OFFICINE STORICHE (Porta Medicea work
Slide 42: Pipeline Focus: Clodì Retail Park - Chioggia
42 Pipeline Focus: Clodì Retail Park - Chioggia (Ve) Start of work: November 2013 End of work: Opening scheduled May 14, 2015 The project comprises a total GLA of 16,900 m², which includes a 7,490 m² Hypercoop (sales area of 4,500 m²), 8 medium surface areas for a total of 9,575 m² and 8 stores, one
Slide 43: Pipeline Focus: Grosseto
43 Pipeline Focus: Grosseto Start of work: work in progress End of work: second half 2016 The new mall comprises a total GLA of 17,050m², and it will house 45 stores, 6 of which medium surface areas. The mall will be adjacent to a hypermarket with a sales area of 4,200m² for a GLA of 7,346m², owned
Slide 44: Pipeline Focus: Officine Storiche - Livorno
44 Pipeline Focus: Officine Storiche – Livorno Start of work: 1 Half 2015 End of work: 2 Half 2017 Requalification of the industrial warehouses of the former Cantieri Navali Orlando inside of which vast reception facilities and accommodations will be created housing personal services (fitness center
Slide 45: Pipeline Focus: ESP - Ravenna
45 Pipeline Focus: ESP - Ravenna Start of work: June 2014 End of work: April 2017 The project calls for an increase in the mall’s GLA of 19,000 m² and the creation of 1,100 parking places. Total expected investment about € 54 mn Rendering of the extension’s interior and exterior. 1Q Results presenta
Slide 46: Pipeline Focus: remodeling of spaces
46 Pipeline Focus: remodeling of spaces “La Torre” Shopping Center - Palermo Start of work: May 2015 End of work: February 2016 Remodeling of the shopping mall which will result in the introduction of a multiplex cinema and optimization of the food court. Total expected investment: about € 1.7mn 1Q
Slide 47: Pipeline Focus: main restylings
47 Pipeline Focus: main restylings CENTRO SARCA RESTYLING Start of work: 2013 End of work: 2015 The first part of the restyling (involving underground parking and connecting stairs) has already been completed. The internal restyling was completed and the external restyling is expected to be finished
Slide 48: Pipeline Focus: other extensions
48 Pipeline Focus: other extensions GRAN RONDO’ - RESTYLING and EXTENSION Start of work: 2015 End of work: May 2018 The project calls for the creation of a new medium surface area, with a total GLA of 2,850 m², and the complete restyling of the shopping mall. Total expected investment about € 6 mn P
Slide 49: Focus Pipeline - Porta a Mare (1/4)
49 Focus Pipeline - Porta a Mare (1/4) PORTA A MARE PROJECT - LIVORNO The purpose of the project is to transform an area of the port of Livorno, near the city center, with the construction of a multi-purpose complex of about 70,000 m² which will house shops, residential units, services, accommodatio
Slide 50: Pipeline Focus - Porta a Mare (2/4)
50 Pipeline Focus - Porta a Mare (2/4) 1Q Results presentation and 2015-2018 Business Plan Presentation
Slide 51: Pipeline Focus - Porta a Mare (3/4)
51 Pipeline Focus - Porta a Mare (3/4) 2013-2014 2017-2018 Piazza Mazzini Mazzini: Residential + office sales Retail and Officine: Retail and begin Residential residential sales PORTA MEDICEA - Revenue development Ante 2015 2015 2016 2017 2018 Total 36,0 3,3 5,4 75,9 9,7 Cumulative Total 130,3 PORTA
Slide 52: Pipeline - Porta a Mare (4/4)
52 Pipeline - Porta a Mare (4/4) Palazzo Orlando: all 14 remaining office buildings are expected to be rented between 2015 and 2017 and the entire building should be sold by year-end 2017; Piazza Mazzini: 28 flats were sold at 1Q 2015 and the remaining 45 residential units are expected to be sold be
Slide 53: SGR/Fund
53 SGR/Fund A partnership with institutional investors was one of the assumptions included in the previous Business Plan We acquired 20% of Unipolsai Investimenti Sgr IGD’s Opportunities Expansion of the commercial network / increase the mass of tenant Initiatives being considered contracts managed
Slide 54: Financial area (1/2)
54 Financial area (1/2) What we worked on • Accessing the bond market more frequently which resulted in a substantial balance between resources gathered through debt capital markets and the banking system • Extending the average debt maturity • Starting to reduce the cost of debt (after a period in
Slide 55: Financial area (2/2)
55 Financial area (2/2) Targets • Maintain rigorous financial discipline and a conservative capital structure LTV >45% - < 50% (BP time span) GEARING (D/E) <1 (BP time span) • Improve financial management and reduce the average cost of debt ICR >3 (end of 2018) Average cost of debt about 3% (end of
Slide 56: Sustainability area
56 Sustainability area The strategy The actions implemented “Between 2015 and 2018 we want to International standard work for an IGD that is increasingly more adopted green, open to dialogue with all its stakeholders and innovative in its core Latest recommendations business, with its Shopping Cente
Slide 57: Sustainability area: material topics
57 Sustainability area: material topics Business and Quality and A changing The “Spaces to be The people managerial efficiency of the context lived in” concept integrity shopping centers • Stable and • Corporate • Structures’ • Stakeholder • Social role of the engaging governance environmental engag
Slide 58: Key figures - Business Plan 2015-2018
58 Key figures - Business Plan 2015-2018 RENTAL REVENUE Total growth approx. > +20% cagr > 5% cagr LFL approx. + 2% EBITDA MARGIN Core Business >70% (end of 2018) >80% (end of 2018) Growth concentrated EBITDA MARGIN Freehold at the end of the business plan when the impact of the investments made wil
Slide 59: Dividend policy
59 Dividend policy Committed to maintaining an attractive dividend policy linked to FFO (≈ 2/3 of the gross FFO) and Dividend Reinvestment Option (DRO) As announced at the time of the share capital increase, the DRO will not be offered in 2015 But it will continue to be an option that we will consid
Slide 60: Final Remarks 1/2
60 Final Remarks 1/2 Over the next years IGD will continue its investment pipeline, increase its cash flows (FFO) and strengthen the visibility of the dividends that will be paid, by leveraging solely on ORGANIC growth and while respecting all the predetermined financial constraints Target Leader of
Slide 61: Final Remarks 2/2
61 Final Remarks 2/2 HOWEVER if we also consider: the recent SIIQ reform that the market is still very fragmented The context appears favourable to completing, over the next few years, contribution transactions at market conditions and/or entering into partnerships with industrial/financial players
Slide 62: Attachments 1Q 2015
FY 2009 RESULTS ATTACHMENTS Bologna 1Q 2015 November 11, 2011
Slide 63: Consolidated Financial Statement
63 Consolidated Financial Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/03/2014 31/03/2015 ∆% 31/03/2014 31/03/2015 ∆% 31/03/2014 31/03/2015 ∆% Revenues from freehold real estate and rental activities 25,643 26,856 4.7% 25,579 26,780 4.7% 64 76 19.1% Revenues from leasehold real
Slide 64: Margins from activities
64 Margins from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/03/2014 31/03/2015 % 31/03/2014 31/03/2015 % 31/03/2014 31/03/2015 % Margin from freehold properties 22,206 22,999 3.6% 22,157 22,929 3.5% 49 70 43.1% Margin from leasehold properties 242 466 92.5% 242 466 92.5% 0 0
Slide 65: Total consolidated Ebitda
Total consolidated Ebitda : €20.9 mn 65 Ebitda (Core business): €21 mn (4.2%) CONSOLIDATED EBITDA (€ 000) 1,377 -428 -110 -106 20,131 20,866 Ebitda 31/03/2014 Change in operating revenues Change in direct costs Change in G&A expenses Change in Ebitda "Porta a Ebitda 31/03/2015 mare" project EBITDA a
Slide 66: Contracts in Italy and Romania
Contracts in Italy and Romania 66 EXPIRY DATE OF CONTRACTS OF HYPERMARKETS EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. of contracts) MALLS IN ITALY ( % of value) 100% N 21 90% 84,0% 90% 87,5% 80% 80% N 674 70% 63,9% 70% 60% 60% 65,8% 50% 50% 40% 40% N 115 N 88 N 112 30% 30
Slide 67: Net Debt composition
67 Net Debt composition (€000) 3,842 12,625 841,294 939,773 74,415 32,847 Short term debt Current share of long term debt Long term debt Potential mall and business division fees Cash and cash equivalents Net Debt 1Q Results presentation and 2015-2018 Business Plan Presentation
Slide 68: Net Debt
68 Net Debt NET DEBT EVOLUTION (€ 000) 9,215 721 7,574 362 3,596 3,998 942,095 939,773 Net Debt 31/12/2014 Profit for the period attributable to the Depreiation/devaluation/Change in FV Change in NWC (net PM writedowns Change in other non-current Change in fixed/non-fixed assets change in shareholde
Slide 69: Reclassified balance sheet
69 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) 31/12/2014 31/03/2015 ∆ ∆% Fixed assets 1,900,357 1,911,272 10,914 0.6% Non-current assets held for sale 28,600 28,600 0 n.a. NWC 66,637 63,041 -3,596 -5.4% Other long term liabilities -48,769 -49,216 -447 0.9% TOTAL USE OF FUNDS 1,946,825 1
Slide 70: Investor Relations contacts
70 Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Federica Pivetti T. +39. 051 509242 federica.pivetti@gruppoigd.it 1Q Results presentation and 2015-2018 Business Plan Presentation