Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (August 2020)
61 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, August 2020
Slide 1: Road show presentation August 2020
Road show presentation August 2020
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with The securities referred
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 5 Outlook Pag. 44 2 Operating data Pag. 10 6 Sustainability Pag. 46 3 Recent events and impact of Covid-19 on Group’s activities Pag. 20 7 Appendix Pag. 52 4 1H2020+FY2019 Pag. 36 Financial results 3 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a Glance
IGD at a Glance IGD is the leading Italian listed developer and operator of Italian quality retail real estate properties: develops and manages shopping centers across the country and has also a presence in retail distribution in Romania IGD #1 Italian Retail SIIQ (REIT) - Portfolio Snapshot 5.4% EP
Slide 6: IGD Business Model Explained
IGD Business Model Explained A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well Diversified Across Italy 39.2k GDP Per-capita 2 Strategic Positioning 3 Strong Food Anchor (COOP) 4 Strong Track-Record of Direct Management €34.6k – €42.6k 1 30.9k 35.2k 38.
Slide 7: Our shareholding structure
Our shareholding structure Listed on the Italian Stock Exchange in the STAR segment (“high requirements”) Freefloat equal to 45.02%, majority of institutional investors, of which⁽1⁾ Italy Number of shares: 110,341,903 20% Mediolanum, EUROPA PLUS (GWM) Generali, Eurizon 4,20% UK & Ireland 25% Unicoop
Slide 8: Coop world and our main Shareholders
«Coop world" and our main Shareholders 7 Legal entities throughout Italy «Coop world" key data*: 17 Regions covered by Coop Turnover ~14.7 bn € (13.6% of italian large scale retail) No. of stores: ~1,200 Employees ~52,000 Members ~ 6.7 million people Coop Alleanza 3.0 Unicoop Tirreno Revenues ** ~4,
Slide 9: Our Top Management
Our Top Management Elio Gasperoni (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Chairman of IGD's Board since April 2017 • Appointed in May 2009 • Board member of IGD since 2015 • Board member at IGD since 2006 • He has held numerous roles in Public Adminstrations and Local • Mo
Slide 10: Operating Data
Ri. * LUMBERJACK Ea . : a =
Slide 11: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets Centro Sarca North Sesto S.Giovanni Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro (MI) Ravenna Faenza (RA) Bologna Bologna Forlì IGD - Main Centro Leonardo Conè Centro Piave San Donà di Clodì Centro Nova Villanova di Mondovicino Sc&Rp Imola (BO) Coneg
Slide 12: Located in the most attractive Italian regions
Located in the most attractive Italian regions >80% of value of italian portfolio ITALY- 60 properties in 12 regions concentrate in Northern & Central Italy GDP Per-capita (93.9% of total IGD market Value) 39.2k 1H2020 35.2k 30.9k € 2,322.6 38.0k 33.1k 30.3k 35.3k Romania South+ 6.1% 31.6k 30.4k lsl
Slide 13: Main characteristic of our portfolio
Main characteristic of our portfolio € 2,322.6mn other 3.9% (91.3 €mn) Total GLA (Ita) 6 5 5 , 0 0 0 m² (market share c. 4%) Romania 6.1% (142.2€mn) A young portfolio : on average 8 years old Small (since opening or last restyling) 14.7% Full ownership of 16 Shopping centres (mall+hyper) in Italy Ke
Slide 14: Strong repositioning of the Romanian Portfolio
Strong repositioning of the Romanian Portfolio 1 5 9 13 2 6 10 14 1 7 2 Bistrita Piatra Neamt 8 Cluj-Napoca Vaslui 7 11 3 9 3 Turda Galati 14 Key Strategical points 4 10 1 13 12 Ramnicu Valcea 1 Buzau Braila Tulcea • Further capex Ploiesti for safety, maintenance 5 4 8 12 and commercial Slatina Bucu
Slide 15: IGD Market value as at 30/06/2020 (1/2)
IGD Market value as at 30/06/2020 (1/2) ITALY ROMANIA € 2,381.4mn Other 3.9% 4.5 (91.99 €mn) Romania 6.3% -55.2 € 2,322.6mn (150.29 €mn) 3.4 -3.4 0.2 -8.3 Other 3.9% (91.29 €mn) Romania 6.1% (142.22 €mn) The FV change for approx. 28% is due to DCF Malls 65.3% assumptions (rates) and for approx. 72%
Slide 16: IGD Market value as at 30/06/2020 (2/2)
IGD Market value as at 30/06/2020 (2/2) Gross Initial EPRA Net Initial EPRA Net Initial FY 2019 1H 2020 Δ% Yield Yield Yield topped up Malls Italy 1,555.50 1,513.36 (-2.71%) 6.84% 5.4% 5.5% Hypermarkets Italy 583.62 575.75 (-1.35%) 6.12% Romania 150.29 142.22 (-5.37%) 7.44% 6.0% 6.2% Porta a Mare +
Slide 17: EPRA Metrics as at 30/06/2020
EPRA Metrics as at 30/06/2020 € per share 1H2020 FY 2019 Δ% NRV and NAV 10.81 11.40 -5.1% NTA 10.70 11.29 -5.2% Thanks to NDV 11.35 10.81 +5.0% the increase in financial instruments fair value 0.30 -0.23 -0.67 0.00 11.40 10.81 EPRA NRV/NAV 31 Dec Resolved dividend FFO Change in assets fair Change in
Slide 18: Contracts in Italy and Romania as at 30/06/2020
Contracts in Italy and Romania ad at 30/06/2020 N 136 N 207 N 219 N 887 Average residual maturity: 4.1years Malls Italy Total contracts: 1,449 of whic 42 renewals 67.9% with the same tenant and 37 signed with a new tenant 8.4% 12.5% 11.3% Rotation Rate 2.7% (% new contracts on tot. contracts) 2020 2
Slide 19: Key tenants as at 30/06/2020
Key tenants as at 30/06/2020 Product Turnover Product Turnover TOP 10 Tenant Contracts TOP 10 Tenant Contracts category impact category impact clothing 2.8% 13 supermarket 10.6% 11 clothing 2.5% 9 clothing 7.2% 6 clothing 2.1% 10 clothing 4.5% 10 shoes 2.0% 8 Top 10 clothing 4.4% 11 Top 10 Tenants T
Slide 20: Recent events and impact of Covid-19 on Group's activities
Titolo titolo 3 Recent events and impact of Covid-19 on Group’s activities note 37
Slide 21: Business strongly affected, but also strongly resilient
Business strongly affected, but also strongly resilient COVID-19: main events in Italy 23-24 Feb Since 12 Mar OPERATING ITALIAN ASSETS: Since 18 May First restrictive Lockdown Easing of the measures Restrictions on the HYPER (25%* of tot. rents) + restrictions, activities in Milan area whole of the
Slide 22: Priority given to health and safety
Priority given to health and safety Thermal camera Access and routes Strenghtened Sanitation Informative panels and temperature regulation surveillance control Increase in 80 THERMAL In order to monitor Informative panels to Rules to enter in the cleaning of the CAMERAS* compliance with the provide
Slide 23: Turning a need into a future opportunity
Turning a need into a future opportunity Thermal cameras high technology could be used in the future for: 1. Flow analysis to check the «hot/cold» areas of the shopping centers – pilot project at ESP Shopping Center (Ravenna) 2. Shopping center customers clusterization 3. Footfalls counting; monitor
Slide 24: Enhancement of the communication to visitors
Enhancement of the communication to visitors 1. Reconnecting and 2. New sales 3. Tenants informing promotions new initiatives Communication campaign Initiatives in all our Tenants’ specific initiatives (e.g. on local press and shopping centers starting outdoors dehors for restaurants) social network
Slide 25: Government measures to support tenant in Italy
Government measures to support tenant in Italy The Government adopted some fiscal measures regarding rents: TAX CREDIT* 60% or 30% (Limits: Annual IGD POTENTIAL RECIPIENTS Revenues<5mn To be applied Turnover -50%) on fully paid % on Revenues <5mn Revenues >5mn rents for the 30% n. of tenants 70% mon
Slide 26: Leasing activities Italy: malls
Leasing activities Italy: malls Ongoing negotiations with tenants to manage the lockdown period with a view to mutual sustainability 1H includes Tenants 717 Closed estimate of negotiations** 76% Covid-19 Contracts 1,449 one-off impact 65.8% for -8.5 mn €* of total rents In general no changes to exis
Slide 27: Leasing activities Italy: hypermarkets
Leasing activities Italy: hypermarkets • Always operating during lockdown • Enhancing the shopping centers service role in 25.8% of total their catchment areas rents No impacts on existing contracts and proceeds 1°, 2° and 3° QUARTER Quarterly BOP invoicing INVOICING AND Collected 100% COLLECTION 27
Slide 28: Leasing activities Romania
Leasing activities Romania Ongoing negotiations with tenants to manage the lockdown period with a view to mutual sustainability In 1H granted Tenants 380 temporary Closed negotiations 99% reductions Contracts 539 mainly on April and May rents 5.2% for approx. of total rents € 1mn No changes to exist
Slide 29: The operativeness and occupancy in Italy
The operativeness and occupancy AGGIORNARE in Italy OPENED AT 31 AUGUST 2020 99.4% IN TERMS OF GLA OPERATING of TENANTS which PRE-LOCKDOWN IN TERMS OF 99.0% TOTAL RENTS FINANCIAL OCCUPANCY at 30/06 confirmed at high levels: 95.6% 29
Slide 30: Footfalls in Italy (1/2)
Footfalls in Italy (1/2) Weekly footfalls 2020/2019 Recovered approx. 87% of Δ the pre-lockdown footfalls 18-24 May 24-30 August 18-24 May/ 24-30 Aug Penalized time slot: lunch and post work +34.8% -12.7% Contingent factors that are affecting trends: Weekly change -31.4% Progressive change -20,0% CA
Slide 31: Footfalls in Italy (2/2)
Footfalls in Italy (2/2) Return to physical Safety in our shopping after the shopping centers lockdown Obvious increase in online shopping during the lockdown, followed by return to physical Over 80% of respondents said they felt shopping after the end of restrictions; also safe and protected by the
Slide 32: Tenant sales in Italy: increase in average ticket
Tenant sales in Italy: increase in average ticket July tenant sales News -14.2%* (June -13.6%) Decreased less than footfalls The Government is Higher average ticket studying measures to €26.6 (+€4.1; +18.1% vs 2019) boost consumption Some product categories performed better compared to 2019 (June
Slide 33: The operativeness in Romania
The operativeness in Romania OPENED AT 31 AUGUST 2020 94.0% IN TERMS OF GLA OPERATING of TENANTS PRE- which LOCKDOWN IN TERMS OF 97.0% TOTAL RENTS FINANCIAL OCCUPANCY at 30/06 confirmed at high levels: 94.7% Post lockdown FOOTFALLS: -25% (July 2020 VS July 2019) 33
Slide 34: Capex and on-going projects as at 30/06/2020
Capex and on-going projects as at 30/06/2020 In order to strenghten the Group’s financial solidity, several capex and projects have been suspended for a total savings of around €40mn vs forecasts. Resumption of work is currently being evaluated Porta a Mare: work is underway to protect the construct
Slide 35: Update on financial activities as at 30/06/2020
Update on financial activities as at 30/06/2020 Committed credit lines A government Ratings: renewed by 2 leading guaranteed loan of credit institutions (40 roughly €37 million (6- Fitch mn€ +20 mn€) and years at a rate, including BBB- rating watch negative maturity extended to the cost of the 2023
Slide 36: 1H2020 + FY2019 Financial Results
4 1H2020 + FY2019 Financial Results
Slide 37: FY 2019 and 1H2020 main results
FY 2019 and 1H2020 main results 2018 2019 1H2019 1H2020 REVENUES Rental Income €151.8 mn €155.3 mn +2.3% 77.3 €74.6 mn -3.5% Net Rental Income €124.0 mn €136.6mn +10.1% €68.6mn €56,3 mn -17.9% EBITDA EBITDA (Core Business ) €113.7 mn €125.2 mn +10.1% €62.9 mn €51.4 mn -18.3% EBITDA Margin (Core Busi
Slide 38: Rental Income as at 30/06/2020
Rental Income as at 30/06/2020 (€mn) -€2.7mn -€11.2mn -3.5% -14.5% -1.3 -0.4 -1.0 -8.5 77.3 74.6 66.1 Rental Income Change in like-for- Non like-for-like Change in like-for- Rental Income Internal estimate Rental Income net 1H2019 like Italy Italy like Romania 1H2020 COVID impact of COVID impact 1H2
Slide 39: Net Rental Income as 30/06/2020
Net Rental Income as 30/06/2020 (€mn) -€3.8mn Italy -€12.3mn -5.5% -17.4% -17.9% Romania -25.2% -2.7 -1.1 -8.5* 68.6 64.8 56.3 Net rental income 1H2019 Change in rental income Change in rental costs Net rental income 2020 adj Internal estimates COVID effect Net rental income 1H2020 *the estimates of
Slide 40: Financial management
Financial management (€mn) Figures, net of accounting items and negative carry related to the last bond issue, are further decreasing (-9.8% vs 1H2019) Total Totale Total Totale 16,4€mn € 16.4mn 18,0€mn € 18.0mn -9.8% Negative carry 2.7 €400mn bond issue 1.0 1.3 IFRS16 and non-recurring charges 15.4
Slide 41: Funds From Operations (FFO) as at 30/06/2020
Funds From Operations (FFO) as at 30/06/2020 -€0.5mn -€9.0mn -1.1% -21.4% -2.1 1.5 0.1 -8.5 41.8 41.4 32.9 FFO_1H2019 Change in core Change in Financial Change in taxes and FFO_2020 adj Internal estimate FFO_1H2020 business Ebitda Adj* management Adj** other COVID impact 41 *Change Ebitda Adj: equal
Slide 42: Financial structure as at 30/06/2020
Financial structure as at 30/06/2020 31/12/2019 30/06/2020 LTV 47.6% 49.0% (adj. IFRS16 c. 46.4%) (adj. IFRS16 c. 47.9%) ICR 3.8X* 3,5X* Average cost of 2.35% 2.30% debt NET DEBT €1,165.6 mn** DEBT BREAKDOWN*** SECURED MARKET 27.4% 56.7% BANKING SYSTEM L.T. 1,218.33 43.3% S.T. UNSECURED 50.19 72.6%
Slide 43: Debt maturity as at 30/06/2020
Debt maturity as at 30/06/2020 Thanks to liability management activities carried out over the last few months and ongoing, the committed and uncommitted credit lines for €220 mn and the cash-on-hand for €103 mn, the Group is capable to cover next 18 months financial maturities €100mn: 2.25% 7y €400m
Slide 44: Outlook
5 Outlook
Slide 45: FFO Outlook 2020
FFO Outlook 2020 FFO p.s. -25/28% vs FY2019 (c. €0.54/€0.57) FY2020 (Includes estimate of Covid-19 one-off impact; no effects on the subsequent years NEW OUTLOOK are expected) Given this backdrop, the 2021 targets for the Business Plan 2019-2021 (presented on 7 November 2018) should no longer be con
Slide 46: Sustainability
6 Sustainability
Slide 47: 2019: 10° year of Sustainability Report
2019: 10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved • Zero CO2 Emissions of Italian portfolio by 2030 -7.1% ENERGY CONSUMPTION LIKE FOR LIKE 2019 VS • BREEAM Certification for 80% of the Italian portfolio by 2018 2030 1 MORE PHOTOVOLTAIC SYSTEM (8 in t
Slide 48: 2019: 10° year of Sustainability Report
2019: 10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved CORPORATE WELFARE FULLY • Training: focus on the soft skills and the importance of OPERATIONAL the interfunctional work group • New work environmental survey between 2020 and 2021 CONTINUATION OF 3 CO
Slide 49: 2019: 10° year of Sustainability Report
2019: 10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved 716 EVENTS HELD IN THE CENTERS • Sustainable enhancement of the portfolio: restyling (13.1% OF WHICH WERE SOCIAL- to be carried out with improvements in ENVIRONMENTAL EVENTS) environmental impact in 1
Slide 50: UNI ISO37001 Anti-Bribery certification obtained
UNI ISO37001 Anti-Bribery certification obtained 20 April 2020 UNI ISO 37001:2016 Certification «Anti Bribery Management System» The certification represents the international standard for anti-corruption management system. The result achieved is consistent with the values expressed in the MOG*, the
Slide 51: Update on Sustainability as at 30/06/2020
Update on Sustainability as at 30/06/2020 Sustainable mobility Certifications EPRA Best practice Puntadiferro s.c. became the city ISO 14001 In the report “Enhancing hub for sustainable mobility 4 more certififications transparency with the TCFD”, Supercharger Standard obtained in 2020 published by
Slide 52: Appendix
Titolo titolo 7 Appendix note 65
Slide 53: Consolidated Income Statement as at 30/06/2020
Consolidated Income Statement as at 30/06/2020 (a) (b) Δ GROUP CONSOLIDATED 1H_CONS_2019 1H_CONS_2020 (b)/(a) Revenues from freehold rental activities 71.1 68.7 -3.4% Revenues from leasehold rental activities 6.3 5.9 -5.2% Total income from rental activities 77.3 74.6 -3.5% Rents and payable leases
Slide 54: Funds From Operations (FFO) as at 30/06/2020
Funds From Operations (FFO) as at 30/06/2020 Funds from Operations CONS_2019 * CONS_2020 Δ 1H 2019 Δ% Core business EBITDA 62.9 51.4 -11.5 -18.3% IFRS16 Adjustments (Payable leases) -5.1 -4.3 0.8 -15.7% Financial Management adj. -15.5 -16.6 -1.2 7.7% Extraordinary Management adj. 0.0 0.0 0.0 n.a. Cu
Slide 55: Other Epra metrics as at 30/06/2020
Other Epra metrics as at 30/06/2020 EPRA Performance Measure 6/30/2020 12/31/2019 EPRA NRV/NAV (€'000) 1,193,288 1,258,008 EPRA NRV/NAV per share € 10.81 € 11.40 EPRA NTA 1,180,764 1,245,473 EPRA NTA per share € 10.70 € 11.29 EPRA NDV 1,252,303 1,192,894 EPRA NDV per share € 11.35 € 10.81 EPRA Net I
Slide 56: Further financial highlights as at 30/06/2020
Further financial highlights as at 30/06/2020 31/12/2019 30/06/2020 Gearing ratio 0.95X 1.0X (adj. IFRS16 c. 0.91X) (adj. IFRS16 c. 0.96X) Average lenght of long term debt 4.1 years 3.6 years Hedging on long term debt + bond 94.8% 95.1% Share of M/L debt 95.4% 89.3% Uncommitted credit lines granted
Slide 57: Reclassified balance sheet as at 30/06/2020
Reclassified balance sheet as at 30/06/2020 Sources - Uses of funds (€/000) 6/30/2020 31/12/2019 Δ Δ% Fixed assets 2,300,570 2,365,214 64,644 2.8% Assets under construction 40,610 40,827 217 0.5% Other non-current assets 21,552 21,845 293 1.4% Other non-current liabilities -28,250 -28,998 -748 2.6%
Slide 58: Government measures to support tenants in Italy
Government measures to support tenants in Italy • Tax credit equal to 60% of the March rent if the Only 39% of lease contracts, equal Measures provided leased property falls into the cadastral category to 7% of total contracts, can by the «Cura Italia» C/1 benefit from this measure Decree • Tax cred
Slide 59: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls 27 shopping malls 25 hypermarkets Tenants of hypermarkets Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0 Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0 Porto Grande - Porto d'Ascoli (AP) ESP Porto Grande - Porto d'Ascol
Slide 60: Governance Directors and Committees
Governance Directors and Committees IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008 Chairman CEO Executive Elio Gasperoni Claudio Albertini Vice Chairman Ro
Slide 61: Investor relations contacts
Raffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator T. +39 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 509260 f