Immobel Sa · EURONEXT:IMMO
Immobel Sa — Investor Presentation (May 2020)
41 slides from Immobel Sa's investor presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION May 2020 0
Slide 2: Today's Presenters
TODAY‘S PRESENTERS Marnix Galle Karel Breda (Executive Chairman and CEO) (CFO) In total more than 30 years of professional real estate In total more than 17 years of professional finance sector experience experience Founder of Allfin in 2001, a leading Belgian real estate Previous functions include
Slide 3: Shaping the Landscape of European cities since 1863
Shaping the Landscape of European cities since 1863 2
Slide 4: >150 Years Proof-of-Delivery
>150 YEARS PROOF-OF-DELIVERY Deployment in Family-owned Acquisition of First visionary Luxembourg ALLFIN becomes Nafilyan & Partners, French work-site the major residential property developer 1930 2008 shareholder 2019 Merger with Real Creation of the IMMOBEL Start of office 2014 Social Fund Estate
Slide 5: Key Drivers of Modern Society...
KEY DRIVERS OF MODERN SOCIETY... Older Single Moving to Urban Healthy Growing population households centers densification living style standard of living 6 Climate Sustainable Smart Residential Negative High change economics homes IoT interest rates uncertainty 4
Slide 6: ...Have a Structural Impact on the Real Estate Sector
...HAVE A STRUCTURAL IMPACT ON THE REAL ESTATE SECTOR Urban transformation New ways of living and Green buildings “Real estate as a service” working that include facilities as amenities The answer to these challenges: The delivery of relevant projects to improve urban living 5
Slide 7: Immobel Is Uniquely Placed to Deliver
IMMOBEL IS UNIQUELY PLACED TO DELIVER Proven track-record Strong in-house capabilities Long-standing local partner network >EUR 200 #1 2.5bn Total turnover for relevant projects to Highly talented individuals with unique First partner of choice for various local improve urban living(1) profiles auth
Slide 8: Immobel at a Glance
IMMOBEL AT A GLANCE €4.5bn ~75 % GDV(1) Residential 18% exposure as % of GDV(2) average gross margin of the total portfolio’s future revenue >75 Projects secured >15% Focus on ROE Note(s): (1) Please refer to the appendix for the definition; (2) Office segment of mixed-use projects now considered of
Slide 9: Key Highlights
KEY HIGHLIGHTS 1 Leading real estate developer strongly benefitting from structural growth drivers in top-tier European cities Market 2 Scalable and diversified business model backed by established partner network, allowing full control of the entire value chain Business model 3 Unique combination o
Slide 10: Immobel's European Presence
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S EUROPEAN PRESENCE European presence Brussels, Belgium GDV: EUR 2.3bn 1 Total residential m2: 566,399 Total office m2: 132,587 No. of Projects: >30 projects 1 Brussels Luxembourg City, Luxembourg 2 3 GDV: EUR 7
Slide 11: Brussels Real Estate Market – Residential
Market Business model Operational track-record Financial profile Growth strategy BRUSSELS REAL ESTATE MARKET – RESIDENTIAL # permitted apartments Supply Permits being issued for new, large, mixed-use/ 2,661 2,444 2,619 residential developments in Brussels are at an 2,168 1,583 1,819 all-time low 1
Slide 12: Brussels Real Estate Market – Office
Market Business model Operational track-record Financial profile Growth strategy BRUSSELS REAL ESTATE MARKET – OFFICE Supply Total Brussels office market amounts to 13 1.4 1.4 1.3 1.2 1.1 1.1 million m² 0.9 Generally, Brussels displays a vacancy rate of 10.5% 10.3% 9.8% 9.0% ~7%, however, in CBD
Slide 13: Immobel's Position in Brussels
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN BRUSSELS BROUCKERE MÖBIUS CHAMBON RAC 4 COMMERCE 46 40,000 m² - Mixed-use 60,000 m² - Office 50,000 m² - Mixed-use 59,000 m² - Mixed-use 13,800 m² - Office MULTI TOWER 45,000 m² - Office COURS ST-M
Slide 14: Luxembourg Real Estate Market – Residential
Market Business model Operational track-record Financial profile Growth strategy LUXEMBOURG REAL ESTATE MARKET – RESIDENTIAL Demographics Economics Luxembourg’s GDP has tripled in the course of 2.4% 2.3% 2.4% 2.4% 2.4% 4.9% 4.3% 4.3% 4.6% the last 25 years 2.2% 2.2% 3.7% 1.8% 1.9% 3.1% Attractiv
Slide 15: Luxembourg Real Estate Market – Office
Market Business model Operational track-record Financial profile Growth strategy LUXEMBOURG REAL ESTATE MARKET – OFFICE Supply 234.0 225.0 208.7 206.1 189.5 Stock has increased by 23% over the last 10 179.4 170.6 157.2 139.0 135.4 years Access to developable land is limited - offer can 7.2% 6.1%
Slide 16: Immobel's Position in Luxembourg
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN LUXEMBOURG LAANGFUR 25,500 m² - Mixed-use INFINITY 33,300 m² - Mixed-use MAMER THOMAS 13,800 m² - Residential 5,700 m² - Office NOVA 4,200 m² - Office POLVERMILLEN 26,600 m² - Mixed-use LIVINGSTONE
Slide 17: Paris Real Estate Market – Residential
Market Business model Operational track-record Financial profile Growth strategy PARIS REAL ESTATE MARKET – RESIDENTIAL Supply(1) 37,300 34,000 28,700 31,000 26,700 27,300 27,200 21,800 22,300 Currently Paris is undergoing a supply shock 18,300 31,200 29,900 due to the municipal elections in March
Slide 18: Paris Real Estate Market – Office
Market Business model Operational track-record Financial profile Growth strategy PARIS REAL ESTATE MARKET – OFFICE Supply Permit delays due to municipal election affect 6.9% 6.9% 7.5% 7.7% 7.5% 6.8% 6.7% 6.1% the supply of available offices for rent 5.4% 5.0% Steadily decreasing vacancy rate exe
Slide 19: Immobel's Position in Paris
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN PARIS AUBERVILLIERS ZAC BUTTES CHAUMONT DU FORT 5,360 m² - Residential 16,650 m² - Residential RUEIL MALMAISON 28,500m² - Office building PARIS SAINT ANTOINE 5,300 m² - Mixed-use LOUVECIENNES 7,188
Slide 20: Fragmented Developer Space
Market Business model Operational track-record Financial profile Growth strategy FRAGMENTED DEVELOPER SPACE Highly fragmented European residential real estate markets Immobel outperforms its competitors Limited number of international competitors Immobel’s competitive advantages comprise... Specific
Slide 21: Immobel's Proven Business Model
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL‘S PROVEN BUSINESS MODEL Sourcing Acquisition Development Construction Marketing & sales 80-100 Due diligence Conception and permitting Process management In-house sales team initial screenings Financial, legal a
Slide 22: Excellent Partner Network
Market Business model Operational track-record Financial profile Growth strategy EXCELLENT PARTNER NETWORK Marketing & Sales Construction Close local relationships are the Conception & Development foundation of Immobel‘s success story Financial network Marnix Galle Adel Yahia Local executive Executi
Slide 23: Proven Portfolio Strategy
Market Business model Operational track-record Financial profile Growth strategy PROVEN PORTFOLIO STRATEGY Portfolio by country Portfolio by asset class(1) Portfolio by status Time to delivery 11% 7% 8% 13% 4% 26% 14% EUR EUR EUR 16% 9% 4.5bn 53% 4.5bn 46% 4.5bn % of equity GDV GDV GDV invested 38%
Slide 24: Proven Track Record for >150 Years
Market Business model Operational track-record Financial profile Growth strategy PROVEN TRACK RECORD FOR >150 YEARS Proven track record Highly attractive project portfolio HQ Deloitte Enest Black Pearl RAC 3 HQ Allianz Eden TBU Chambon HQ Allen & Overy Panorama Lebeau O’Sea Source(s): Company inform
Slide 25: Signing of Major Office Project Despite COVID-19
Market Business model Operational track-record Financial profile Growth strategy SIGNING OF MAJOR OFFICE PROJECT DESPITE COVID-19 Transaction highlights European district, Brussels, Office project, ca. 14,000 Belgium sqm Architects: Office and Tenant: ING 9 Jaspers-Eyers 9 year lease agreement BREAA
Slide 26: Impact of COVID-19 on Key Business Drivers
Market Business model Operational track-record Financial profile Growth strategy IMPACT OF COVID-19 ON KEY BUSINESS DRIVERS Key business drivers Sales Construction Permitting Contracted sales of 13 new construction projects New permits for Pre COVID-19 >EUR 400m GDV to be launched >EUR 400m of GDV 6
Slide 27: Illustrative Example of Contracted Sales, Cash and IFRS Revenue Recognition
Market Business model Operational track-record Financial profile Growth strategy ILLUSTRATIVE EXAMPLE OF CONTRACTED SALES, CASH AND IFRS REVENUE RECOGNITION 15% 20% 0% 0% 0% 100% 90% -15% 80% -20% 50% 40% 25% 20% 5% 5% Acquisition Permitting Construction Delivery (1 month) (19 months) (26 months) (7
Slide 28: Resilient Earnings with Strong Rebound Expected in 2022
Market Business model Operational track-record Financial profile Growth strategy RESILIENT EARNINGS WITH STRONG REBOUND EXPECTED IN 2022 (EURm) Stress case scenario >13% CAGR Earnings delay in 2020 & 2021 due to COVID-19 which is recovered in 2022 >7% CAGR 700 600 486 500 400 400 320 2019A 2020E 202
Slide 29: Overview of Current Project Pipeline
Market Business model Operational track-record Financial profile Growth strategy OVERVIEW OF CURRENT PROJECT PIPELINE Project Country Type Gross m² GDV (EURm)(1) % sold(2) 2019A 2020E 2021E 2022E 2023E 2024E+ ‘t Zout BE Residential 4,772 16.1 96.7% O'Sea Phase 1 BE Residential 16,844 67.9 86.0% Gree
Slide 30: Liquidity Remains Strong for the Next Two Years
Market Business model Operational track-record Financial profile Growth strategy LIQUIDITY REMAINS STRONG FOR THE NEXT TWO YEARS Liquidity Cash commitments With a strong residential portfolio (EURm) (EURm) delivering recurring sales, Immobel still 1 expects further sales in 2020 and 2021 Additiona
Slide 31: Immobel Has Achieved Record Results Since Merger
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL HAS ACHIEVED RECORD RESULTS SINCE MERGER ROE (EURm) Net income 30% 102 Allfin Merger Allfin Merger 19% 17% Ø 17.1% 53 57 Target ROE 15% 9% 10% 6% 6% 20 Ø 5.4% 3% 16 12 11 2 11 1% 0.4% 1 2010A 2011A 2012A 2013A 2
Slide 32: Highly Scalable Business Model Focusing on Profitable Growth
Market Business model Operational track-record Financial profile Growth strategy HIGHLY SCALABLE BUSINESS MODEL FOCUSING ON PROFITABLE GROWTH (EURm) Operating income (EURm) EBITDA 486 Y-o-Y: 31% 4 371 70 Y-o-Y: 64% Margin 12% 21% 27% 17 227 135 206 132 80 65 Y-o-Y: 62% 79 147 171 189 Y-o-Y: 182% 28
Slide 33: Financial Stability Backed by Strong Balance Sheet
Market Business model Operational track-record Financial profile Growth strategy FINANCIAL STABILITY BACKED BY STRONG BALANCE SHEET Gearing(1) (EURm) Debt maturity schedule as of 2019A(3) 70% Project financing Additional Bonds headroom 61% 100 50 54% to drive 212 125 138 48% profitable 90 103 growth
Slide 34: Acquisitions Strengthen Market Position in Each Core Market
Market Business model Operational track-record Financial profile Growth strategy ACQUISITIONS STRENGTHEN MARKET POSITION IN EACH CORE MARKET (EURbn) Historical acquisitions GDV Gross GDV Project Country Type m2(2) (EURm)(2) 0.94 (0.47) 0.23 4.56 (0.37) Eden / 0.96 3.85 GER Residential 20,000 174.5 3
Slide 35: Key Building Blocks of Future Growth
Market Business model Operational track-record Financial profile Growth strategy KEY BUILDING BLOCKS OF FUTURE GROWTH Market penetration Market expansion Platform development Future Partnerships with investors to further improve capital efficiency Further diversification of Immobel‘s platform into G
Slide 36: Treasury Shares as Firepower for New Opportunities
Market Business model Operational track-record Financial profile Growth strategy TREASURY SHARES AS FIREPOWER FOR NEW OPPORTUNITIES Capital structure Additional headroom Additional GDV (EURm) (EURm) (EURm) The placement of treasury shares could Treasury shares(1) ~75 1 1 increase the equity by ~EU
Slide 37: Overview of Current Project Pipeline
Market Business model Operational track-record Financial profile Growth strategy OVERVIEW OF CURRENT PROJECT PIPELINE Project Country Type Gross m2(1) GDV (EURm)(1) On/off market Status (EURm) GDV per status 447 A Luxembourg Residential 26,724 265 Off market Exclusivity 257 278 B Luxembourg Resident
Slide 38: Shaping the Landscape of European Cities Since 1863
SHAPING THE LANDSCAPE OF EUROPEAN CITIES SINCE 1863
Slide 39: Appendix
Appendix
Slide 40: Definitions
DEFINITIONS Gross development Total expected future turnover (group share) of a project or all projects in the current portfolio value External view Official IFRS reported figures of the company Internal view External view figures before the application of IFRS 11 Inventory Inventories plus
Slide 41: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by receiving and/or reading the The statements included in this presentation are neither reported results nor other historical presentation slides, you agree to be bound by the following limitations: information. These statement