Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — FY2014 Earnings Presentation
50 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Feb 26, 2015
Slide 1: Results presentation as at 31/12/2014
Conference call 26 February 2015 3.00 p.m. CET Results presentation as at 31/12/2014
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. 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: 2014, a year of transformation…in view of growth
3 2014,a year of transformation…in view of growth Core Extraordinary business management OPERATING ACTIVITY FINANCIAL STRUCTURE STRENGTHENING Core business revenues, financial occupancy and • Capital increase of € 200 mn recurring cash flow (FFO) substantially steady (even • Dividend Reinvestment Op
Slide 4: Highlights (1/2)
4 Highlights (1/2) REVENUES € 120.5 mn • Core business revenues (-0.2% vs 31/12/2013) EBITDA € 79.3 mn • EBITDA (core business) ( -4.3% vs 31/12/2013) 77.3% • EBITDA margin from Freehold ( -0.9 percentage points) • Pre-tax Profit of the Group € 9.4 mn ( € 0.9 mn at 31/12/2013) € 7.3 mn • Group Net P
Slide 5: Highlights (2/2)
5 Highlights (2/2) FINANCIAL OCCUPANCY at 31/12/2014 • ITALY 96.2% • ROMANIA 86.4% Total Portfolio Market Value € 1,951.2 mn Loan to Value 48.3% (vs 57.4% at 31/12/2013) Gearing (D/E) 0.95 (vs 1.38 at 31/12/2013) NNNAV € 1.23 Dividend per share € 0.0375 +25.4% on 2013 adjusted DPS* * Adjusted: consi
Slide 6: Economic context
ECONOMIC CONTEXT
Slide 7: Italian macroeconomic indicators
7 Italian macroeconomic indicators Evolution of annual foreign GDP trend (% change) Consumption trend (% change) investment in Italy (€ mn) 2.0% 2.0% 5,000 1.5% 1.5% 1.0% 4,000 1.0% 3,000 1.0% 0.5% 0.8% 0.5% 0.6% 2,000 0.5% 1,000 0.0% 0.2% -0.4% 0 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 -0.5% 2
Slide 8: Romanian macroeconomic indicators
8 Romanian macroeconomic indicators GDP trend (% change) Consumption trend (% change) 4.0% 5.0% 4.5% 4.0% 3.5% 2.8% 2.9% 4.0% 3.0% 2.7% 3.5% 2.5% 3.0% 2.8% 2.7% 2.0% 2.5% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% 2014 2015 2016 2014 2015 2016 • OUTLOOK: positive macroeconomic data: GDP (excluding
Slide 9: Economic and financial results
ECONOMIC AND FINANCIAL RESULTS
Slide 10: Consolidated Income Statement
10 Consolidated Income Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2013 31/12/2014 D% 31/12/2013 31/12/2014 D% 31/12/2013 31/12/2014 D% Revenues from freehold real estate and rental activities 105,653 102,907 (2.6)% 105,556 102,633 (2.8)% 97 274 n.a. Revenues from leasehold
Slide 11: Revenues
11 Revenues BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET Total 126,995 Revenues 122,403 0.2% -3.6% 0.3% 7.2% 97 1.5% 274 6,163 1,644 4,996 5,139 Core Revenues from non core Business business rental activity -0.2% Revenues from trading 31.4% 59.3% Revenues from services 115,739
Slide 12: Rental Income Drivers
12 Rental Income Drivers (€/000) 2014 Average inflation in Italy -959 equal to about + 0.2% 2,032 -984 +0.2% 254 -735 LFL Italian revenues Acquisitions/ Extensions/ Other Romania (LFL) Romania (instrumental Porta a Mare Total change Restyling vacancy) -216 -9.8% 177 Negative change due to -0.2% inst
Slide 13: Core Business Direct costs and G&A expenses
13 Core Business Direct costs and G&A expenses CORE BUSINESS DIRECT COSTS (€ 000) +11% Without 12,322 The difference is almost entirely justified by the non 11,838 property increase in non property leases thanks to the leases Livorno Masterlease. +2.9% 7,705 7,613 Other changes refer to higher IMU a
Slide 14: Total consolidated Ebitda: € 78.8 mn
Total consolidated Ebitda: € 78.8 mn Ebitda (core business): € 79.3 mn (-4.3%) 14 CONSOLIDATED EBITDA (€ 000) -73 -3.088 -660 -268 82,903 78,814 Ebitda 31/12/2013 Change in rental revenues Change in direct costs Change in trading activities Change in G&A expenses Ebitda 31/12/2014 and services EBITD
Slide 15: Profit of the Group: € 7.3 mn (+46.1%)
Profit of the Group: € 7.3 mn (+46.1%) 15 NET PROFIT EVOLUTION (€ 000) • Including una tantum effect of € 1.9 mn of “Unlock Italy” law. • € 4.4 mn failed allocation of deferred taxes on 2014 changes. 2,240 -6,272 +46.1% 711 -581 10,295 -3,545 7,302 4,998 -544 Group net Change in core Change in Chang
Slide 16: Core Business Funds From Operations
16 Core Business Funds From Operations FFO (€/000) 31/12/2013 301/12/2014 D D% Of which: Pre-tax profit 6,584 12,925 6,341 96.3% • –3.5€mn due to Depreciation and other provisions 1,446 1,537 90 6.3% decreased Ebitda (mainly Change in FV and devaluations 28,467 20,604 -7,863 -27.6% due to Livorno ma
Slide 17: Operating performance
FY 2009 RESULTS OPERATING Bologna PERFORMANCE November 11, 2011
Slide 18: Commercial Highlights
18 Commercial Highlights Footfalls in Italian IGD Shopping Malls -0.1% Footfalls in Italian Shopping Malls -0.1% Tenant sales in Italian IGD Shopping Malls* +3.4% progressive change Tenant sales in Italian Shopping Malls + 0.7 Hypermarket sales -3.9% progressive change IGD’s hypermarket and supermar
Slide 19: The performance of our shopping malls in 2014
19 The performance of our shopping malls in 2014 IGD’S* TENANT SALES PERFORMANCE 2012-2014 2012 2013 2014 6.0% 4.0% 4° consecutive 0.0% 2.0% quarter on the INCREASE 0.0% Apr-13 Apr-12 Apr-14 Feb-12 Sep-12 Feb-14 Sep-14 Feb-13 Sep-13 Jun-12 Jul-13 Jul-12 Jun-14 Jun-13 Jul-14 Dec-12 Mar-14 Mar-12 Mar-
Slide 20: The performance of our shopping malls in 2014
20 The performance of our shopping malls in 2014 TENANT SALES AND FOOTFALLS IN OUR SHOPPING CENTERS SALES FOOTFALLS progressive progressive absolute value change change ITALY +3.4% -0.1% 60 million ROMANIA n.p* -5.9% 29.8 milion * Not all our tenants have a cash register ITALY Tenant sales increased
Slide 21: Contracts in Italy and Romania
Contracts in Italy and Romania 21 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) N 21 100% 90% 84.0% 87.5% 80% 90% 80% N 612 70% 60.4% 70% 60% 59.8% 60% 50% 40% 50% N 168 30% 40% 13.7% 15.2% 16
Slide 22: 2014 Commercial and asset management activities (1/4)
22 2014 Commercial and asset management activities (1/4) Location: San Giovanni Teatino, Activity: Extension and 2014 footfalls: +9.3% vs 2013 Chieti restyling (abs. Value 3.4 mn) Extension date: 10/04/2014 2014 tenant sales: +35.1% vs 2013 (abs. Value € 27.2 mn)
Slide 23: 2014 Commercial and asset management activities (2/4)
23 2014 Commercial and asset management activities (2/4) Activity: Tenant mix 2014 footfalls: +13.1% vs 2013 Location: Guidonia redefinition, unification of small (abs. Value 5.1 mn) Montecelio, Roma shops to create new middle 2014 tenant sales: +12.6% vs 2013 sized areas (abs. Value € 75.7 mn)
Slide 24: 2014 Commercial and asset management activities (3/4)
24 2014 Commercial and asset management activities (3/4) Location: Afragola, Napoli Activity: Mall extension, Dec-2014 footfalls: +11.3% vs Dec-2013 Restyling date: 03/12/2014 internal remodeling and (abs. Value in 1 month 0.5 mn) hypermarket reduction Dec-2014 tenant sales: +51.2% vs Dec-2013 (abs.
Slide 25: 2014 Commercial and asset management activities (4/4)
25 2014 Commercial and asset management activities (4/4) Location: Mondovì, Cuneo Intervention date: April 2014 Activity: Creation of a middle sized area (Terranova) with the unification of some vacant shops, to reduce vacancy and increase attractiveness. 2014 footfalls: +0.6% vs 2013 (abs. Value 2.
Slide 26: Focus Romania: main 2014 activities
26 Focus Romania: main 2014 activities Location: Winmarkt Galati Activity: Internal structural remodeling and work on 2 floors of the shopping mall due to introduction of H&M (1,600 m²) Location: Winmarkt Ramnicu Valcea Activity: Internal improvements and refurbishment on 2 floors of the shopping ma
Slide 27: CSR: the most important 2014 achievements
27 CSR: the most important 2014 achievements BP TARGETS SOME RESULTS ACHIEVED IN 2014 Increase in quality and • The ISO 14001 certification of Shopping Centers in IGD’s efficiency of Centers portfolio continued, according to the roll out plan • Energy consumption reduced (-12.4% in the period 2013-2
Slide 28: Technological innovation in 2014
28 Technological innovation in 2014 APPS DIGITAL TOTEM • Introduction of digital • 2 apps created in 2 totem into malls to Shopping Centers communicate what is • About 2,400 total happening in the downloads Center and to promote visitor loyalty WEB SITES SOCIAL NETWORK • All the centers have • Faceb
Slide 29: Portfolio
FY 2009 RESULTS PORTFOLIO Bologna November 11, 2011
Slide 30: Portfolio characteristics
30 Portfolio characteristics ITALY ROMANIA HYPERMARKETS MALLS AVERAGE MALLS Financial occupancy 100.0% 94.3% 96.2% 86.4% Market value as at 31 December 2014 €mn 602.18 970.44 171.90 Compound average yield of total portfolio (gross initial yield) 6.52% 6.58% 6.72% Gla mq 262,160 279,860 77,969 BTP yi
Slide 31: Market Value evolution
31 Market Value evolution € mn Mkt Value Mkt Value 31/12/2013 31/12/2014 Malls+Hypermarkets+Other Italy 1,522.49 1,579.09 City Center ( V. Rizzoli + Piazza Mazzini) 27.80 56.50 Total income related portfolio in ITALY 1,550.29 1,635.57 Total income related portfolio in ROMANIA 173.40 175.30 TOTAL IGD
Slide 32: Work in progress (1/2)
32 Work in progress (1/2) Chioggia Retail Park Location: Chioggia, Venezia Start of work: November 2013 End of work: 1H 2015 Total expected investment about € 39 mn Officine Storiche Location: Livorno Start of work: 1H 2015 End of work: 2H 2017 Total expected investment about € 40 mn Extension of Sh
Slide 33: Work in progress (2/2)
33 Work in progress (2/2) Extension Location: Porto d’Ascoli (AP) Start of work: 1H 2015 End of work: 2H 2016 Total expected investment about € 10 mn Restyling Location: Sesto San Giovanni (MI) Start of work: 2013 End of work: 2015 Total expected investment about € 8 mn Restyling Location: Bologna S
Slide 34: Disposal plan
34 Disposal plan 2/3 of disposals scheduled in the 2014-2016 Business Plan (€ 150 mn excluding Porta Medicea) already carried out with values equal to or higher than the asset book value 14 February 2014: Disposal of Le Fonti del Corallo mall (Livorno) for € 47 mn 5 March 2014: Disposal of treasur
Slide 35: NNNAV
35 NNNAV December 31, 2013 December 31, 2014 EPRA NNNAV Calculation € € p.s. € € p.s. Share total number 348,001,715 756,356,289 1) NAV per the financial statement 752,850 2.16 950,229 1.26 Include Revaluation intangibles and operating assets 423 0 Exclude Fair value of financial instruments 33,303
Slide 36: Financial structure
FY 2009 RESULTS FINANCIAL STRUCTURE Bologna November 11, 2011
Slide 37: Important financial transactions carried out in 2014
37 Important financial transactions carried out in 2014 May: Issue of a € 150 mn Senior Bond with Morgan Stanley May: Dividend Reinvestment Option successfully completed (about 78% of subscriptions) October: Capital increase of € 200 mn successfully completed (99.75% of subscriptions, a record
Slide 38: Financial Highlights (1/2)
38 Financial Highlights (1/2) 31/12/2013 31/12/2014 GEARING RATIO (D/E) 1.38 0.95 LOAN TO VALUE 57.4% 48.3% COST OF DEBT 3.94% 4.23% INTEREST COVER RATIO 1.90X 1.77X AVERAGE LENGTH OF LONG TERM DEBT 7.7 years 6.2 years (bond included) 26 February 2015 Results presentation as at 31/12/2014
Slide 39: Financial Highlights (2/2)
39 Financial Highlights (2/2) 31/12/2013 31/12/2014 HEDGING ON LONG TERM DEBT + BOND 79.3% 90.9% BANKING CONFIDENCE € 273.5 mn € 267.5 mn BANKING CONFIDENCE AVAILABLE € 86.6 mn € 234.0 mn MKT VALUE OF MORTGAGE FREE ASSETS/LANDS € 347.7 mn € 618.9 mn 26 February 2015 Results presentation as at 31/12/
Slide 40: Debt Maturity
40 Debt Maturity 200,000,000 180,000,000 160,000,000 140,000,000 Of which €135 mn BNP loan 120,000,000 100,000,000 € 144.9 € 150 mn mn Bond Bond 80,000,000 60,000,000 40,000,000 20,000,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 26 February 2015 Results presentation as at 31/12/2014
Slide 41: Dividend
41 Dividend IGD’s Board of Directors will ask the shareholders at the Annual General Meeting on 15 April 2015, to approve the distribution of a dividend of € 0.0375 per share 0.0351 +25.4% 0.065 Dividend Yield on year end price 5.8% 0.0375 0.0299 Dividend Yield on 25 February price 4,6% DPS2013 CAPI
Slide 42: Attachments
FY 2009 RESULTS ATTACHMENTS Bologna November 11, 2011
Slide 43: Margins from activities
43 Margins from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2013 31/12/2014 % 31/12/2013 31/12/2014 % 31/12/2013 31/12/2014 % Margin from freehold properties 91,332 88,243 (3.4)% 91,256 87,985 (3.6)% 76 258 n.a. Margin from leasehold properties 935 1,015 8.6% 935 1,015 8.6
Slide 44: Tenants in Italy
44 Tenants in Italy Product Turnover TOP 10 Tenant Contracts TOTAL CONTRACTS category impact Gruppo Miroglio Malls 1,024 clothing 3.5% 32 Hypermarkets 24 clothing 3.1% 10 Total 1,048 clothing 2.7% 8 NEW BRANDS footwear 2.0% 5 clothing 1.6% 19 clothing 1.5% 4 electronics 1.5% 1 bricolage 1.4% 1 resta
Slide 45: Tenants in Romania
45 Tenants in Romania Product Turnover TOP 10 Tenant Contracts TOTAL CONTRACTS 523 category impact food 9.1% 9 clothing 5.1% 4 MAIN BRANDS electronics 4.7% 8 jewellery 2.8% 8 household 2.6% 5 goods pharmacy 2.2% 4 clothing House of art 1.7% 5 (family) supermarkets 1.3% 2 footwear 1.2% 5 electronics
Slide 46: Market Value evolution
46 Market Value evolution Breakdown of the portfolio appraisals As at 31 December 2014 IGD Group's real estate portfolio had been appraised by 3 independent experts: CBRE, REAG and CUSHMAN&WAKEFIELD 21% 38% Rotated asset as CBRE REAG at 31/12/2014: CUSHMAN&WAKEFIELD 61% 40% 26 February 2015 Results
Slide 47: Italian and Romanian Portfolio
47 Italian and Romanian Portfolio 56 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 19 shopping malls and retail parks 14 SHOPPING CENTERS + 1 OFFICE BUILDING 24 hypermarkets and supermarkets IN 13 DIFFERENT ROMANIAN MEDIUM SIZED 2 city center 3 plots of lands for development CITIES 1 property held for tr
Slide 48: Italian and Romanian Portfolio
48 Italian and Romanian Portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO BREAKDOWN BY GEPGRAPHIC PORTFOLIO MARKET VALUE AREA IN ITALY (mkt value) 2.9% 0.3% 9.0% 19.0% 4.4% 30.9% 2.8% 39.7% 27.6% 49.7% 13.8% HYPERMARKETS/SUPERMARKETS MALLS LANDS OTHER NORTH EAST NORTH WEST CENTRE SOUTH+ISLANDS PORTA A
Slide 49: Reclassified balance sheet
49 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) FY13 FY14 D D% Fixed assets 1,857,799 1,900,357 42,558 2.3% Non-current assets held for sale 0 28,600 28,600 n.a. NWC 71,271 66,637 -4,634 -6.5% Other long term liabilities -47,189 -48,769 -1,580 3.3% TOTAL USE OF FUNDS 1,881,881 1,946,825 6
Slide 50: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it to @igdSIIQ
Immobiliare Grande Distribuzione SIIQ S.p.A. (IGD) — FY2014 Earnings Presentation on 6ix