Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — Non-Deal Roadshow (March 2010)
31 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, March 2010
Slide 1: Presentation 2009-2013 Business Plan Road Show March 2010
Presentation 2009-2013 Business Plan Road Show March, 2010
Slide 2: Disclaimer
2 Disclaimer This presentation contains forwards-looking information and statements about IGD SIIQ SPA and its Group. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements reg
Slide 3: Agenda
3 Agenda COMPANY PROFILE 2009-2013 BUSINESS PLAN Approved by BoD on November 13, 2009
Slide 4: Group Structure
4 Group Structure 100% 100% 100% Immobiliare Faenza Millennium Larice Sviluppo Gallery 15% 100% 80% 50% Iniziative WinMagazine Bologna Nord 100% 100% 100% WinManagement RGD Gestioni Srl New Mall Srl
Slide 5: The IGD stock / Governance and Shareholders
5 The IGD stock / Governance and Shareholders IGD BOARD OF DIRECTORS: Lead Non- Audit Nomination Compensation Independent Name Role executive Executive Independent Committee Committee Committee Director Gilberto Coffari Chairman X Sergio Costalli Vice-Chairman X Claudio Albertini CEO X Roberto Zambo
Slide 6: IGD portfolio in Italy
6 6 IGD portfolio in Italy 44 IGD (ex-RDG) real estate assets in 11 Italian Regions : Emilia Romagna: 4 galleries, 8 hyper-supermarkets, 1 plot of land, 3 other assets Piedmont: 2 galleries Lombardy: 2 galleries Trentino-Alto Adige: 1 gallery Veneto: 2 plots of land Marche: 1 gallery, 3 hypermarkets
Slide 7: IGD portfolio in Romania
7 7 IGD portfolio in Romania Winmarkt real estate assets in Romania: 15 shopping malls 1 office building. Department stores are in prime central locations in 13 different cities in Romania
Slide 8: Main lease terms
8 Main lease terms for: Shopping Malls Hypermarkets Main lease terms: Main lease terms: Average maturity: Average maturity: 18 years + 6 years lease agreement of the going concern 6 years + 6 Rents indexation: 75% of FOI (ISTAT index for workers rental agreement: 5 years and employees families) Rent
Slide 9: The Italian SIIQ Regime
9 The Italian SIIQ Regime ASSET & REVENUE TEST – the ‘must be’ be’ % KEY FEATURES At least 80% of total assets must be- be-> rental assets At least 80% of total positive components of P&L (excl. Change in FV) must be -> rent al income rental -Exemption from Italian Corporate taxation (IRES and IRAP)
Slide 10: Italy - New openings and acquisitions in 2009
10 Italy - New openings and acquisitions in 2009 Shopping centre Shopping centre Shopping centre Shopping centre TIBURTINO KATANE’ LE MAIOLICHE I BRICCHI Opening date: 2 April Opening date: 5 May Opening date: 8 October Opening date: 3 Dec. Investment: 118 € mn Investment: 98 € mn Investment: 85 € m
Slide 11: Romania – Partnerships and agreements
11 Romania – Partnerships and agreements Enhance the value of the real estate assets in Romania EXECUTION OF by improving the consumer appeal and, consequently, ANNOUNCED STRATEGY the traffic for the centre operators Announced: on March, 16 2009 3 centres: Turda, Bistrata, Cluj Contract Lenght: 20 y
Slide 12: Agenda
12 Agenda COMPANY PROFILE 2009-2013 BUSINESS PLAN Approved by BoD on November, 13 2009
Slide 13: Why a new plan?
13 Why a new plan? REASONS METHODOLOGY Substantial changes in Preliminary focus on clear strategic macroeconomic scenario guidelines 1-year lengthening of Bottom-up process, involving all time horizon Æ 2013 functions and areas Establishment of a planning process on a regular basis …and a new CEO
Slide 14: Targets
14 Targets 2009-2013 BUSINESS PLAN TARGETS INVESTMENTS Headline and FV growth Ca 750 € (cash out) driven by new investments mn YIELD 6.3-6.5% LFL rents slightly above LFL RENTAL 1.6% (excl. RGD) forecasted CPI REVENUES CAGR OVERALL RENTS EBITDA growing faster than GROWTH (’09-’13) CAGR +9.8% rents O
Slide 15: Assumptions - Italy
15 Assumptions - Italy 2010 2011 2012 2013 CPI Italy +1.3% +1.5% +1.5% +1.5% 2009 2010 Small-sized areas the ones suffering more Italy Food consumptions* -2,0% -0,2% Customers changed their habits, buying products with a lower per unit price, in order Italy Non-food consumptions* -3,9% -1,7% to re-b
Slide 16: Assumptions - Romania
16 Assumptions - Romania 2010 2011 2012 2013 CPI Romania +0% +0.5% +1.0% +1.5% €/Ron 4.25 4.20 4.20 4.20 Consumptions Consumptions, which in 2009 reflected a –8.5% drop in GDP (source: IMF), Romania are expected to recover at a pace well below than GDP’s one
Slide 17: Retail property market in Italy – 1/2
17 Retail property market in Italy – 1/2 Retail rents (€/sqm/year) Yields (%) •Source: Jones Lang LaSalle, October 2009 •Source: Jones Lang LaSalle, October 2009 Key findings by J.L.LaSalle research: Consumptions crisis led large-distribution players to a general re-thinking of their new openings pl
Slide 18: Retail Property Market in Italy – 2/2
18 Retail Property Market in Italy – 2/2 FAIR VALUE EVOLUTION EXPECTED 2009 2010 2011 2012 2013 Caution Moderate optimism 9Focus on committed pipeline 9New investment opportunities 9Re-qualify existing portfolio Stable LFL rental revenues Moderate growth in rental revenues Fair Value of IGD Italian
Slide 19: Investment strategy – main drivers
19 Investment strategy – main drivers TOP PRIORITY: EXECUTION OF COMMITTED PIPELINE NEW INVESTMENTS EXISTING PORTFOLIO Shopping centres in our pipeline are designed to be Preserve high quality of assets functional and take in consideration local consumptions patterns Extensions, re-stylings, overall
Slide 20: Investment pipeline 2009-2013
20 Investment pipeline 2009-2013 Vigevano Gorizia Rovereto 2009-2013 INVESTMENT PIPELINE Asti smq GLA Conegliano Guidonia 40,000 Gallery in a mall with a hypermarket Catania Gravina 15,000 Gallery in a mall with a hypermarket Beinasco Chioggia Faenza Catania Hypermkt 12,000 Hypermarket Ravenna Faenz
Slide 21: Investments – Timetable and amounts
21 Investments – Timetable and amounts Investment Cash-out Previous 2009 2010 2011 2012 2013 Amount Total amount euro mn Years in the Plan Invested+K1 1 GUIDONIA 90.0 118.5 2 CATANIA GALLERIA 14.4 59.0 3 CATANIA IPER 39.5 39.5 4 FAENZA 85.3 85.3 5 ASTI 5.1 45.0 6 VIBO VALENTIA 25.0 25.0 7 PALERMO 37
Slide 22: Disposals
22 Disposals We expect some 60 to 70 mn € proceeds from disposals over the 2009- 2013 period SALE OF TREASURY SHARES* DISPOSAL OF A 20% STAKE IN PORTA MEDICEA IN ROMANIA, DISPOSAL OF 4 ‘VALUE’ SHOPPING MALLS AND OF 1 OFFICE BUILDING (*) Not before 2011: sale of 10,976,592 own shares at a price in li
Slide 23: Commercial strategy - Operating in a new environment
23 Commercial strategy - Operating in a new environment New trends in a changing scenario IN THE PAST… …WHILE CURRENTLY PROACTIVE SELECTION Tenants’ presence led by OF TENANTS expansion plans of large retail IGD careful tenant selection brands ANCHOR Food areas reduced as Food as the sole anchor, on
Slide 24: Occupancy rates and leases expirations
24 Occupancy rates and leases expirations Occupancy expected stable throughout 2013 OCCUPANCY RATES HYPERMARKETS GALLERIES 100% 98% 40% of total contracts to be renewed by 2013 70.0% 59.5% 60.0% 50.0% 40.0% 30.0% 20.4% 20.0% 5.6% 6.3% 8.2% 10.0% 0.0% 2010 2011 2012 2013 > 2013
Slide 25: Merchandising mix is critical
25 Merchandising mix is critical NEW TRENDS …AVOID REPEATING THE SAME MERCHANDISING MIX A more limited weight for EVERYWHERE… apparel New malls with differentiated …IN PARTICULAR WHEN features, targeting specific kind FOCUSING ON CENTRES WITH of customers SMALLER GLA, IN MAIN ITALIAN CITIES Offer wi
Slide 26: Romania still enhancing consolidated EBITDA margin
26 Romania still enhancing consolidated EBITDA margin STRONG RESILIENCE OF In 2009 we limited the impact of an 8% drop in GDP thanks to the strong REVENUES AND MARGINS position of our shopping centres (downtown locations). We also benefited from an anticipated execution of commercial strategy. In li
Slide 27: Human Resources
27 Human Resources Fast growth in headcounts driven by the quick property portfolio expansion 180 160 140 54 64 120 65 100 Romania 80 Italy 60 111 99 A YOUNG AND HIGH-PROFILE STAFF 40 85 73 57 20 38 27 Avg. age of headcounts: 37 years 0 2004 2005 2006 2007 2008 2009 2013 Graduated:73% We feel we are
Slide 28: Finance strategy
28 Finance strategy Gearing will likely peak in 2011 PEAK GEARING (D/E) = 1.5 x 1.5 x was already in the previous plan’s target set Never exceeded in the past Well below the breach level of any covenants Presently 59% (31 Oct 09) with a market value of KEEP LTV < 65% 1,719.1 € mn Presently LT debt w
Slide 29: Further growth options
29 Further growth options Over the coming years we are committed to execute a challenging growth plan, improving IGD margin profile ON TOP OF THIS: FURTHER GROWTH OPTIONS AVAILABLE ATTRACTION OF RETAIL PROPERTY PORTFOLIOS LEVERAGING ON THE FISCAL EFFICIENCY OF OUR ‘SIIQ STATUS’ ASSETS FROM THE COOP
Slide 30: Final remarks
30 Final remarks STRONG Retail property industry STRATEGIC FOCUS Italian market ATTRACTIVE BP Visible and sizeable headline growth TARGETS Continuous EBITDA margin improvement Room for rewarding dividend distribution FINANCIAL Long-term capital structure balanced vs. long-term SUSTAINABILITY asset p
Slide 31: Contacts
31 Contacts IGD Immobiliare Grande Distribuzione SIIQ SpA www.gruppoigd.it IR TEAM Claudia Contarini, IR Team T. +39 051 509213 M. +39 3386211738 claudia.contarini@gruppoigd.it Elisa Zanicheli, Assistant T. +39 051 509242 elisa.zanicheli@gruppoigd.it
Immobiliare Grande Distribuzione SIIQ — Non-Deal Roadshow (March 2010) on 6ix