Neinor Homes Sa · BME:HOME
Neinor Homes Sa — FY2020 Earnings Presentation
30 slides from Neinor Homes Sa's earnings presentation, February 2021
Slide 1: FY20 Results Presentation
FY20 RESULTS PRESENTATION February 2021 IBEX MID CAP®
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or other companies operating in the same sector and industry. This information has been derived from publicly-available sources and Neinor information whi
Slide 3: Contents
CONTENTS 01 02 03 04 05 06 FY20 RESULTS COMPANY DEVELOPMENT RENTAL KEY APPENDIX STRATEGY BUSINESS BUSINESS TAKEAWAYS UPDATE 3
Slide 4: FY20 Results
01 FY20 RESULTS LEIOANDI HOMES I
Slide 5: FY20 Results Key Highlights
FY20 RESULTS KEY HIGHLIGHTS Outstanding Results Right Investment Strategy Leading Rental Platform ▪ +€110mn Adj. EBITDA (+10% ▪ Stoped acquisitions during ▪ Integrated OpCo with #2.5k AUM pre-covid guidance beat) 2018-2020 sellers’ market ▪ C400 units yielding portfolio ▪ +€70mn Net Income ▪ First c
Slide 6: Financials Summary
FY20 RESULTS FINANCIALS SUMMARY (€mn) FY18 FY19 FY20 CAGR18-20 TOTAL REVENUES 382 489 579 +23% ADJ. EBITDA 56 104 110 +40% NET INCOME 50 63 70 +18% ADJ. NET DEBT 344 261 123 -40% TOTAL CASH 114 173 271 +54% LTV (%) 19% 16% 7% (-6PP) FINANCIAL RESULTS: THE MOST PROFITABLE SPANISH DEVELOPER SINCE 2018
Slide 7: Company Strategy Update
02 COMPANY STRATEGY UPDATE PLAZA EUROPA 14 HOMES I
Slide 8: The Leading Residential Platform in Spain
COMPANY STRATEGY UPDATE THE LEADING RESIDENTIAL PLATFORM IN SPAIN FROM A PURE DEVELOPER (2020) … A RESIDENTIAL PLATFORM (2024) SERVICES SERVICES 10% 5% RENTAL 20% TO… EBITDA EBITDA DEVELOPMENT DEVELOPMENT 90% 75% 8
Slide 9: Highly Disciplined Land Acquisition Strategy
COMPANY STRATEGY UPDATE HIGHLY DISCIPLINED LAND ACQUISITION STRATEGY +€500mn LAND ACQUISITION POLICY (+11,000 UNITS) BUYERS’ MARKET SELLERS’ MARKET BUYERS’ MARKET €370mn ▪ LOCATION: Top-6 regions by demand (+7,000 UNITS) €286mn ▪ TARGET MGS: +20% contribution margin for (3,100 UNITS) €250mn fully pe
Slide 10: Pro-forma Land Bank
COMPANY STRATEGY UPDATE PRO-FORMA LAND BANK LAND BANK KEY FINANCIAL METRICS NORTH (BILBAO) 12% +16,100 c€2,000mn ▪ LAND BANK ▪ GAV +13,000 CENTER 35% EAST (BARCELONA & BALEARIC ISLANDS) 10% c€1,400mn (MADRID & GUADALAJARA) ▪ DEVELOPMENT ▪ NAV +3,100 c€400mn ▪ RENTAL ▪ Adjusted Net Debt S. WEST LEVAN
Slide 11: Development Business
03 DEVELOPMENT BUSINESS MIGDIA HOMES I
Slide 12: Development Business Operational Snapshot
DEVELOPMENT BUSINESS OPERATIONAL SNAPSHOT DEVELOPMENT BUSINESS DEVELOPMENT OPERATIONAL STATUS ▪ LAND BANK: +13,000 units equivalent to ~5-6 years of +7,500 deliveries ▪ ORDERBOOK: 47% of active +5,500 units already pre-sold and ~80% of the order book is in +3,500 private contracts ▪ CAPEX FINANCING:
Slide 13: Commercialization Activity
DEVELOPMENT BUSINESS COMMERCIALIZATION ACTIVITY ▪ LEADS GREW +10% YOY ▪ VISITS FELL 7% YOY DUE TO LOCKDOWN ▪ PRE-SALES GREW 2% YOY 18,324 1,480 52,844 1,452 16,957 48,242 2019 2020 2019 2020 2019 2020 13
Slide 14: Build-to-Sell Fundamentals Continue Supportive
DEVELOPMENT BUSINESS BUILD-TO-SELL FUNDAMENTALS CONTINUE SUPPORTIVE Population Growth Housing Housing New Built Housing Starts Housing Inhabitants per Region Deficit/Surplus in 2020 YoY Stock Stock Needs Transactions 2019 2020 (YoY%) 2019 Madrid 6.75 105,777 3.01 2.2 47,169 10,101 22,130 15,535 -30%
Slide 15: Rental Business
04 RENTAL BUSINESS OLARIZU HOMES I
Slide 16: Neinor Rental Strategy
COMPANY STRATEGY UPDATE THE LEADING RESIDENTIAL PLATFORM IN SPAIN NEINOR RENTAL STRATEGY ▪ NEINOR AIMS TO CREATE CORE PRS PRODUCT RISK ▪ LAND BANK: +3,100 portfolio targeting 5,000 in the medium-long term NEINOR RENTAL PIPELINE: DEVELOPMENT +2,700 UNITS ▪ GEOGRAPHICAL EXPOSURE: >70% exposure to Madr
Slide 17: Rental Business Operational Snapshot
RENTAL BUSINESS OPERATIONAL SNAPSHOT RENTAL OPERATIONAL STATUS 1,500 ▪ LAND BANK: Total units allocated to rental business are +3,100 ▪ OPERATING PORTFOLIO: 391 units (12%) 700 500 391 ▪ DELIVERIES: LAND BANK LAUNCHED WIP OPERATING ▪ VALUE-ADD P1: +1,200 units until 2023 ▪ VALUE-ADD P2: +1,500 units
Slide 18: Rental Business Operating Portfolio
RENTAL BUSINESS OPERATING PORTFOLIO O PERATING PORTFOLIO - S ARDES LOCATION MÁLAGA MADRID MADRID VALENCIA ALICANTE BADALONA SABADELL TARRASA GERONA UNITS (#) 28 24 129 59 36 21 26 36 32 GLA (SQM) 2,311 1,829 6,778 4,742 3,430 2,243 3,213 2,701 4,668 OCCUPANCY1 (%) 77.3% 87.5% 94.1% 81.4% 83.4% 87.4%
Slide 19: Rental Business Development Pipeline
RENTAL BUSINESS DEVELOPMENT PIPELINE V ALUE -A DD P1 V ALUE -A DD P2 Hacienda HOMES SKY HOMES Europa HOMES 6 DEVELOPMENTS TOTAL VALUE-ADD P1 TOTAL VALUE-ADD P2 LOCATION Málaga Valencia Madrid 56% in Madrid 45% in Madrid 89% in Madrid UNITS (#) 146 213 146 690 +1,200 +1,500 GLA (SQM) 14,200 26,900 15
Slide 20: Key Takeaways
05 KEY TAKEAWAYS AZAHAR HOMES I
Slide 21: Neinor Is Highly Committed to Mitigate ESG Risks
KEY TAKEAWAYS NEINOR IS HIGHLY COMMITTED TO MITIGATE ESG RISKS 2020 ESG POLICY HIGHLIGHTS ▪ 76% of FY20 revenues were generated from BREEAM developments – the highest share in Spain ▪ Neinor has obtained a score of ▪ MSCI reiterated it’s A 10.5 (Low risk) on rating on Neinor ▪ Neinor is amongst the
Slide 22: 2021 Outlook
KEY TAKEAWAYS 2021 OUTLOOK QUABIT ABSORPTION NEXT STEPS FY21: REITERATE GUIDANCE SHAREHOLDER REMUNERATION ▪ Global Shareholders Meeting ▪ Deliveries: 2,400 units ▪ €50mn Target Dividend over scheduled for 31/03 FY21 results aligned with ▪ EBITDA: €150mn underlying business growth and cash flow gener
Slide 23: Appendix
06 APPENDIX MARINA BADALONA HOMES I
Slide 24: FY20 Financials: P&L Statement
APPENDIX FY20 FINANCIALS: P&L STATEMENT (€mn) FY19 FY20 YoY Change Revenues 489.2 578.8 89.6 18% ▪ €579MN REVENUES Gross Margin 160.4 165.1 4.7 3% DEVELOPMENT LEGACY SERVICING OTHER REV. Gross Margin (%) 32.8% 28.5% -4.3% -13% €545.2mn €3.5mn €23.6mn €6.5mn OpEx & Other (56.5) (54.8) 1.7 -3% Gains (
Slide 25: FY20 Financials: Cash Flow Statement
APPENDIX FY20 FINANCIALS: CASH FLOW STATEMENT (€mn) FY19 FY20 YoY Change Profit (Loss) before Tax 81.3 90.7 9.4 11.6% Adjustments Amortization 22.1 4.0 19.0 4.1 (3.1) 0.1 -14.2% 2.4% ▪ €5MN LAND CAPEX Finance Costs/Revenues 9.0 5.9 (3.1) -34.0% Change in provisions Incentive plans 7.8 1.4 8.0 1.1 0.
Slide 26: FY20 Financials: Net Debt Position
APPENDIX FY20 FINANCIALS: NET DEBT POSITION €M FY19 FY20 YoY Change Gross Debt 365.7 335.6 (30.1) -8.2% Non-Current Bank Borrowing 50.0 70.7 20.7 41.3% ▪ €65MN NET DEBT Corporate Financing 50.0 70.7 20.7 41.3% Current Bank Borrowing Develooper Loan 315.7 181.4 262.3 205.2 (53.4) 23.8 -16.9% 13.1% ▪
Slide 27: FY20 Financials: Balance Sheet
APPENDIX FY20 FINANCIALS: BALANCE SHEET (€mn) FY19 FY20 YoY Change PPE 7.2 6.0 (1.2) -17.1% Right of use assets 3.3 3.5 0.2 5.9% Investment Property 0.2 0.2 (0.0) -14.2% Other Non-Current Assets 2.3 12.7 10.4 453.3% Deferred Tax assets Non-Current Assets 25.5 38.5 25.4 47.7 (0.1) 9.2 -0.6% 23.9% ▪ €
Slide 28: FY20 Financials: GAV Bridge
APPENDIX FY20 FINANCIALS: GAV BRIDGE 1 1 1. Excluding client prepayments. 28
Slide 29: FY20 Financials: Savills Appraisal
APPENDIX FY20 FINANCIALS: SAVILLS APPRAISAL (16.35/SH1) (15.95/SH1) 2 1. Excluding 4.65mn treasury shares held as of Dec20. 2. Excluding client prepayments. 29
Slide 30: The Leading Residential Group
THE LEADING RESIDENTIAL GROUP VIDEO ENG / ESP