Neinor Homes SA · BME:HOME
Neinor Homes SA — Q3 2018 Earnings Presentation
24 slides from Neinor Homes SA's earnings presentation, Oct 31, 2018
Slide 1: Q3 2018 Results Presentation
October 31st, 2018 e eee on |Q3 2018 Construimos casas pensando en personas. Results Presentation Marina de Badalona Barcelona (2018 Delivery) -
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 information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentation” means this document, it
Slide 3: Today's Agenda
TODAY’S AGENDA Member of: Contents 01 Business Review Juan Velayos Lluis Chief Executive Officer 02 Non-Financial Reporting 03 Q&A Jordi Argemí García Chief Financial Officer 04 Appendix Juan Gómez Vega Chief Investor Relations Officer
Slide 4: Business Review
Atria Homes – Madrid (Center) 4
Slide 5: Solid execution in Q3. Confident on delivering 2018 targets
SOLID EXECUTION IN Q3. Performance CONFIDENT ON DELIVERING 2018 TARGETS Delivery Licenses Units Guidance Commercialization(1) Construction Q3 Milestone (1) Granted (%) delivered (units) 2018 5 sites for Q4 98% 9 sites delivery 1,000+ 100% 474(2) All with end of works delivered as per pre-sold certif
Slide 6: Development activity adding visibility to the ramp-up
DEVELOPMENT ACTIVITY ADDING VISIBILITY Performance TO THE RAMP-UP AS OF H1 YTD PROGRESS (1) Land Bank 13,500+ units land bank 13,700+ units land bank 1,400+ units of strategic land secured 1,400+ units of strategic land secured 500+ units (€25m) fully permitted land acquired 900+ units (€42m) fully
Slide 7: €100M development revenues YTD
€100M DEVELOPMENT REVENUES YTD CORE BUSINESS DELIVERIES PUSHING CUMULATIVE EBITDA TO c. €10M Financials Financial KPIs Quarterly Progress c. 4x EBITDA 15 €156m €9.5m -€1.2m 10 9.5 P&L Earnings before tax €m Revenues Operating EBITDA vs. -€5.4m in H1 5 2,6 0 H1 2018 Q3 2018 2x Development revenues €1
Slide 8: Non-Financial Reporting
02) Non-Financial 2s Reporting ys |
Slide 9: Non-Financial Reporting
NON-FINANCIAL REPORTING BREEAM BET FOR SUSTAINABLE HOMES. AGREEMENT WITH GOOGLE FOR SMART HOMES Neinor Homes, the #1 homebuilder with sustainable homes in Spain Certificates: 44 projects (c. 3,500 units) have been certified in design phase, with 5 sites (c. 230 units) having received final certifica
Slide 10: Q&A
Eixample Homes Sabadell, Barcelona (East)
Slide 11: Appendix
: 04) Appendix atl a hin, ey hh
Slide 12: Appendix Contents
APPENDIX Contents 01 Land Bank 02 Pre-sales and HPA 03 Q3 2018 Deliveries 04 Financials 05 2018 Visibility 06 2019 Visibility 07 2020 Visibility
Slide 13: Land bank for 2021 deliveries secured
Appendix LAND BANK FOR 2021 DELIVERIES SECURED 01 DISCIPLINED FOCUS ON ACQUISITIONS FOR 2022 Snapshot of recent acquisitions East North c.2,400 units A 18% c.2,500 units Sevilla 19% B Plot Center c.3,000 units B 22% S. Sebastian S. West c.1,400 units A 10% Plot Levante c.1,200 units 9% ASSET A B(1)
Slide 14: Disciplined pre-sales enhancing visibility
Appendix DISCIPLINED PRE-SALES ENHANCING VISIBILITY 02 STRONG DEMAND ABSORBING INCREASING PRICES 8.2% ANNUAL OBSERVED HPA(1) IN Q3 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 8.2% North Center HPA Q3 2018 HPA Q2 2018 HPA Q1 2018 East South East SALES ACCELERATING FOLLOWING COMMERCIAL LAUNCHES Monthly Pre-s
Slide 15: 474 units delivered YTD
474 UNITS DELIVERED YTD Appendix (1) 03 5(2) SITES DELIVERED SO FAR IN H2 / CUMULATIVE DELIVERIES: 900+ Irun Homes Avenida Homes Region North Region Center Location Irun, Guipuzcoa Location Madrid Units (#) 38 Units (#) 54 Sqm 3.384 Sqm 5.766 Construction Company Moyua Construction Company CHM Const
Slide 16: €100M development revenues YTD
Appendix €100M DEVELOPMENT REVENUES YTD 04 CORE BUSINESS DELIVERIES PUSHING CUMULATIVE EBITDA TO c.€10M Summary P&L (in €M) €M H1 2018 Q3 2018 Revenues 78,9 156,0 Gross Margin 27,8 48,6 Gross Margin (%) 35,2% 31,1% €156M REVENUES Development €99.9m / Legacy €31.4m / Servicing €23.4m / Other €1.3m Op
Slide 17: Strong operating cash flow in Q3
Appendix STRONG OPERATING CASH FLOW IN Q3 04 POSITIVE TREND CONFIRMED FROM Q2 Summary Cash Flow (in €M) €M H1 2018 Q3 2018 Profit (Loss) before Tax1 -5,4 -1,2 Adjustments 8,2 13,5 Amortization 0,5 0,8 +€12.4M OPERATING CASH FLOW Finance Costs/Revenues 5,3 8,0 Change in provisions 2,3 4,0 Incentive p
Slide 18: BS: Over 80% inventory is active
Appendix BS: OVER 80% INVENTORY IS ACTIVE 04 INVESTMENT IN ACTIVE SITES DRIVING GROWING INVENTORIES Summary Balance Sheet (in EUR m) €M FY 2017 H1 2018 Q3 2018 PPE 1,9 5,8 6,6 Investment Property 1,6 1,2 1,1 Other Non-Current Assets Non-Current Assets 1,6 5,1 2,1 9,1 2,1 9,7 BALANCE SHEET SIZE €1.4B
Slide 19: Prudent debt levels
Appendix PRUDENT DEBT LEVELS 04 BANKS ALREADY COMMITTED TO FINANCE MOST OF THE CAPEX NEEDS OF THE NEXT 12 MONTHS Net Debt (in EUR m) €M FY 2017 H1 2018 Q3 2018 Gross Debt 417,7 440,8 455,8 Non-Current Bank Borrowing 17,9 8,9 8,9 CONSERVATIVE DEBT RATIOS Corporate Financing 17,9 8,9 8,9 LTV AT 25% Cu
Slide 20: 2018: Deliveries on track
Appendix 2018: DELIVERIES ON TRACK 05 5 SITES TO BE DELIVERED IN Q4 WITH ADEQUATE PROGRESS Total End of Works Development Region Municipality Pre-sales % Works Status Units Certificate PLAZA HOMES Centre GETAFE 217 100% Finished Obtained LA MARINA DE BADALONA East BADALONA 180 94% Finished Obtained
Slide 21: 2019: On track to deliver c.2,000 units
Appendix 2019: ON TRACK TO DELIVER C.2,000 UNITS 06 ALL 31 SITES SHOWING GOOD PROGRESS Total Works Expected Development Region Municipality Pre-sales % Works Status Units progress (1) Delivery ATRIA HOMES Center ALCOBENDAS 148 99% Certificate of Final Works Granted 93% H1 2019 MEDINA HOMES South Wes
Slide 22: 2020+: 74% licenses granted
Appendix 2020+: 74% LICENSES GRANTED 07 ALL PRODUCT ALREADY PRE-SELLING LICENSING PROGRESS 7.000 5.864 Status of pending licenses by 6.000 c.3,000 units submission date 5.000 obtained licenses 4.000 already 531 Units 2.887 0-4 months 3.000 4-8 months (1) 2.000 1.566 8+ months 1.508 1.469 790 1.000 0
Slide 23: 2020 developments with license
Appendix 2020 22 DEVELOPMENTS WITH LICENSE 2020+: 07 Expected Development Region Municipality Total Units Works Status Delivery PLAZA EUROPA 14 HOMES East L´HOSPITALET DE LLOBREGAT 79 Foundation works 2020 LLACUNA HOMES East MONCADA Y REIXACH 44 Foundation works 2020 MAIRENA HOMES South West MAIRENA
Slide 24: Zahir Homes Cordoba
Zahir Homes Cordoba (South West)