Inmobiliaria Del Sur, S.a. · BME:ISUR

Inmobiliaria Del Sur — Investor Presentation (September 2015)

39 slides from Inmobiliaria Del Sur's investor presentation, September 2015

  1. Slide 1: Strategic plan 2016-2020: Ready for profitable growth

    Strategic plan 2016-2020: Ready for profitable growth… …driving the recovery of the real estate industry Corporate presentation September 2015 1

  2. Slide 2: Legal disclaimer

    Legal disclaimer This presentation is the exclusive property of INMOBILIRIA DEL SUR (Insur) and unless otherwise stated, no content may be copied, distributed, published or used in any way, in whole or part under current law. Offenders will be legally prosecuted in Spain and abroad. This presentatio

  3. Slide 3: Index

    Index Index 1. Executive summary 2. Maximising value from the real estate cycle 3. Insur today 4. Strategic Plan 2016-2020 Annexes 3

  4. Slide 4: Executive summary

    Executive summary Grupo Insur  Insur is a real estate group founded over 70 years ago. We operate across Spain in Seville, Western Andalusia, Malaga, Costa del Sol and Madrid.  There are 3 main divisions: real estate development, property management and JV management.  Insur has never resorted to

  5. Slide 5: Index

    Index Index 1. Executive Summary 2. Maximising value from the real estate cycle 3. Insur today 4. Strategic Plan 2016-2020 Annexes 5

  6. Slide 6: Introduction

    Introduction • The change in the real estate industry cycle is a reality: - Prices have risen by 4% (Q2 2015) year-on year - Mortgage approval volumes have grown by 21% (1H 2015) - Increase in the number of transactions of existing houses by 17% (June 2015) - Fresh development has grown with a 22% r

  7. Slide 7: Maximising value from the real estate cycle

    Maximising value from the real estate cycle Stock of empty houses / total houses 2014 (%) Evolution of housing prices in Spain (basis 100 in 2005) Source: Ministry of Public Works and Transport and Arcano Source: Ministry of Public Works and Transport Increase in mortgage approval volumes Planning p

  8. Slide 8: Maximising value from the real estate cycle

    Maximising value from the real estate cycle Transactions of second-hand houses in Andalusia Transactions of second-hand houses in Sevilla 30.000 7.000 25.000 6.000 -68% -68% 5.000 20.000 +64% 4.000 15.000 +30% 3.000 10.000 2.000 5.000 1.000 0 0 Source: INE (Spanish Statistical Office) Source: INE (S

  9. Slide 9: Index

    Index Index 1.Executive summary 2. Maximising value from the real estate cycle 3. Insur today 4. Strategic plan 2016-2020 Annexes 9

  10. Slide 10: Introduction

    Introduction • Insur was set up 70 years ago and has been quoted on the stock exchange (1984) for more than 30 following a conservative policy that has enabled it to survive the unstable property market. • The LTV is under 40%, which is the aim limit. • Insur has traditionally centered its core busi

  11. Slide 11: Insur today

    Insur today The Company The figures 80 61,4  Grupo Insur is a comprehensive real estate 54,4 55,3 60 3 management group founded in 1945 and quoted on 43,0 6,5 0,7 the stock market since 1984. 40 2,2 32,1 43,2 43 25,9 32,2 7,2  It has two main areas of business: property 20 11,5 management and real

  12. Slide 12: Property activity

    Property activity  The property portfolio offers a surface total of 120,000 m2 of premises and offices and 2,634 parking spaces in prime locations mainly in Seville capital.  A leading player in the office rental market in Andalusia. Annual revenues in €M 20 Occupancy rates 15 100% 10 90% 5 80% 0

  13. Slide 13: Development business: stock

    Development business: stock  Housing development business located in Madrid, Seville, Western Andalusia, Malaga and Costa del Sol.  Housing in the upper-middle range.  Vertical integration from construction to commercialization, which enables the group to retain construction margins and adapt the

  14. Slide 14: Other activities: Construction and Project Management

    Other activities: Construction and Project Management  Construction, management and commercialization of real estate projects for JVs and financial entities.  Optimising the Insur structure by means of this services.  Growth and diversification of income and results as well as an increase in effi

  15. Slide 15: Corporate governance: the highest standards

    Corporate governance: the highest standards The Boad of Directors committed to corporate governance  The Board of Directors represents 67% of Insur´s capital. A large stake is in the hands of the Pumar family who provide significant capital to the business.  The Board of Directors is involved in t

  16. Slide 16: KPIs

    KPIs Revenues (€M) GAV (€M) 70 800 60 1,3 700 0,1 0,0 0,7 600 50 16,9 15 14,7 11,6 0,3 500 40 400 484,5 466,4 16,6 449,1 30 1,0 13,5 300 397,0 355,4 342,0 20 39,4 43,2 39,6 43 200 26,1 10 17,7 100 187,4 171,2 154,2 125,0 96,3 106,7 0 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Deve

  17. Slide 17: Index

    Index Index 1. Executive summary 2. Maximising value from the real estate cycle 3. Insur today 4. Strategic Plan 2016-2020 Annexes 17

  18. Slide 18: Aims of the strategic plan 2016-2020

    Aims of the strategic plan 2016-2020 Property management  Grow the activity to realise greater recurring income in order to provide stability and diversification.  Create value in the long-term, developing rentals assets by the Company, achieving higher profitability on the investment than buying

  19. Slide 19: Aims of the strategic plan 2016-2020

    Aims of the strategic plan 2016-2020 Real estate development  Benefit from the market cycle by land acqusition at lower rates (373,000 m2 (1) between 2014 and 2015).  15% IRR as a target.  Deliver around 2,000-2,500 homes between 2016-2020.  Consolidation of geographical expansion. Grow areas su

  20. Slide 20: Aims of the strategic plan 2016-2020

    Aims of the strategic plan 2016-2020 Management and construction of real estate projects  Obtain revenue and positive results for JVs and financial entities, from the building, management and commercialization their projects. Increase turnover and results as well as improving efficiency ratios.  €

  21. Slide 21: Aims of the strategic plan 2016-2020: Summary

    Aims of the strategic plan 2016-2020: Summary Consolidated NAV Main aims 400 1) Maximise resources in the property activity. 300 2) Benefit from the recovery of the residential market. 200 100 3) Geographical diversification with a special emphasis on the Madrid area. 0 4) Move forward in project ma

  22. Slide 22: Stock market information

    Stock market information 2015 2011 2012 2013 2014 to 21/09 Capitalization * (in thousands of euros) 98,267 69,415 271,550 103,528 161,200 Closing price for period 5.7900 4.0900 15.2100 6.1000 9.5000 Cash (in thousands of euros) 3,097 3,691 4,786 5,301 9,560 * Insur joined the Spanish continuous mark

  23. Slide 23: Conclusions

    Conclusions • Currently, Insur has a favourable place in the market: market capitalization/NAV 0.6x • The current situation promotes substantial growth potential for both the rental business and development divisions which will lead to a signficant NAV increase. • The creation of value for the share

  24. Slide 24: Index

    Index Index 1. Executive summary 2. Maximising value from the real estate cycle 3. Insur today 4.Strategic Plan 2016-2020 Annexes 24

  25. Slide 25: 70 years of success

    70 years of success  The foundation of Inmobiliaria del Sur, S.A. in Seville. 1945  Acquisition of a big site in Seville in Avenida de República Argentina, prime real estate in the city. 1946  Following various housing developments, Grupo Insur sets up its property activity. 1960-1980  Developme

  26. Slide 26: The Board

    The Board Proprietary Directors Prudencio Hoyos-Limón Pumar Augusto Sequeiros Pumar Gregorio Arranz Pumar Andrés Fernández Romero José Manuel Pumar López Salvador Granell Balén Inversiones Agrícolas, Industriales y Comerciales, S.L. (Fernando Pumar López) Increcisa, S.L. (Ignacio Ybarra Osborne) Inv

  27. Slide 27: Management Structure and Human Resources

    Management Structure and Human Resources  Matrix structure incorporating business units and support areas.  Well dimensionated staff with 100 members and strong enhancement since 2014 due to new housing development in process.  Staff turnover is low. Grupo Insur´s organigram CHAIRMAN GENERAL DIRE

  28. Slide 28: Directors

    Directors Ricardo Pumar • Member of the Board since 2001 and President of the Board of Directors since 2005 Executive President • 20 years of experience in Business Management and Civil Law • He holds Degrees in Law and Business Management (ICADE) and Senior Management Program (San Telmo Institute)

  29. Slide 29: Property activity: Portfolio

    Property activity: Portfolio BUILDING CITY Main use m2 REPÚBLICA ARGENTINA BUILDING, 25 Seville Prem. and offices 19,749 INSUR BUILDING Seville Prem. and offices 16,495 REPÚBLICA ARGENTINA BUILDING, 23 Seville Prem. and offices 7,968 REPÚBLICA ARGENTINA BUILDING, 21 Seville Prem. and offices 7,155 C

  30. Slide 30: Property activity: Portfolio

    Property activity: Portfolio República Argentina, 23 Insur Centris2 Los Remedios, Seville (1985) Nervión, Seville (2005) Tomares, Seville (2014) El Mirador S.Justa Shopping Mall Nervión-Santa Justa, Seville (1995) Insur Cartuja Insur Huelva Isla de la Cartuja, Seville (2009) Pescaderías, Huelva (200

  31. Slide 31: Overview of our development activity

    Overview of our development activity  € 52 M invested in plots between 2009-2014.  740 houses started between 2009-2015.  872 delivered between 2009-Q2 2015.  Forecast to start building 2,500 homes between 2016-2020.  On target to deliver 2,200 homes between 2016-2020. Singles (Marbella) Aravac

  32. Slide 32: Projects in construction and projects through JVs

    Projects in construction and projects through JVs Projects in construction Suitability for Development Town Type No. Houses building Singles I Marbella Row houses 2,118 24 Singles II Marbella Row houses 2,705 17 Antonio Mairena Castilleja de la Cuesta Multi-family flats 6,864 32 La Reserva Marbella

  33. Slide 33: Projects in development and projects under planning procedures

    Projects in development and projects under planning procedures Projects in development Estimated Plot Town Type suitability for No. Houses building La Alberquilla Castilleja de la Cuesta Resid. 9,761 Cabo de Plata Tarifa Hotel 26,516 Solar Ferrocarril nº 10 Jerez de la Frontera Resid. flats 1,883 22

  34. Slide 34: Joint Venture Projects: Entrenúcleos

    Joint Venture Projects: Entrenúcleos Description  In 2015 Insur and Anida (BBVA Bank ) joined forces to create Desarrollos Metropolitanos del Sur, S.L. (DMS) to develop the following sites: UE-1 del Sector SEN-1 (Entrenúcleos) in Dos Hermanas (Seville) and in Nueva Andalucía (Marbella).  Total bui

  35. Slide 35: Joint Venture Projects: Los Monteros

    Joint Venture Projects: Los Monteros Description  In 2015 Insur (50%) and private investors joined forces to create IDS Residencial Los Monteros, S.A. (Los Monteros) to develop the site H and I of SUNC-T-RR-2 Lomas de Marbella (Los Monteros) in Marbella (Malaga).  Total build potential: 51,561 m2

  36. Slide 36: Joint Venture Projects: Pineda Parque

    Joint Venture Projects : Pineda Parque Description  In 2014 Insur (50%) and private investors joined forces to create IDS Palmera Residencial, S.A. to develop this site: E and F of PERI-SU-7 in Seville (Pineda Parque).  Total build potential: 28,915 m2 suitability for building (167 homes).  Funds

  37. Slide 37: Consolidated Statements: fixed assets and real estate holdings

    Consolidated Statements 31.12.2013 31.12.2014 30.06.2015 Property assets and other tangible assets 129 135 135 Investments in associated 12 6 15 Deferred tax assets 8 12 13 Other non-current assets 3 2 2 Total non-current assets 152 156 166 Stock 107 125 123 Other receivables 9 8 12  40% fixed Cash

  38. Slide 38: Consolidated Statements

    Consolidated Statements 31.12.2013 31.12.2014 30.06.2015 Revenues 32,2 55,3 22,6 Income 1,0 1,3 0,3 Costs - 26,1 - 45,3 - 19,7 Depreciation - 2,4 - 2,5 - 1,2 Assets sales 5,2 2,7 2,7 Other results - 1,2 - EBIT 9,9 12,7 4,6 Net financial expense - 5,8 - 5,7 - 3,5 EBT 4,1 7,0 1,1 Taxes - 1,0 - 3,6 0,6

  39. Slide 39: Ratios and Loan maturity

    Ratios EBITDA 12 14 6 (1) GAV 462 467 457 GAV (2) 474 481 484 NAV (1) 296 283 275 NAV (2) 298 288 285 LTV (1) 35,9% 39,4% 39,8% LTV (2) 37,0% 40,0% 41,0% Amount in €M (1) Corresponding to the assets and liabilities of the company and its 100% owned subsidiaries. (2) Assets and liabilities of JVs are

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