Plaza Centers N.v. · LSE:PLAZ
Plaza Centers — Q1 2016 Earnings Presentation
30 slides from Plaza Centers's earnings presentation, May 17, 2016
Slide 1: Results for the 3 months ended 31 March 2016
Results for the 3 months ended 31 March 2016 17 May 2016 1
Slide 2: Disclaimer
DISCLAIMER The information detailed in this presentation is subject to the general reservations and the risk factors detailed herein. •This presentation does not constitute a proposal and/or an offer and/or invitation by or on behalf of Plaza Centers N.V. (the “Company”) and/or any of its affiliates
Slide 3: Agenda
AGENDA Agenda Company Overview Capital Markets & Debt Restructuring Financial Highlights Operational Highlights 3
Slide 4: Company Overview
Company Overview Plaza Centers is a leading emerging markets property developer, focused on western-style shopping and entertainment centres Business Description Real Estate Portfolio Plaza Centers • 20-year track record of developing shopping & N.V. entertainment centres in CEE - Plaza Centers has
Slide 5: Company Overview: Competitive Advantage
Company Overview Competitive Advantage • Proven track record and Geographical reach – Plaza has been • Strong brand name — Plaza Centers has become a widely active in the CEE for 20 years and together with its regional recognised brand name for successful property development in teams has developed
Slide 6: Historical Business Cycle (1996-2016)
Company Overview 20Historical Business year track record Cycle shopping of developing (1996-2016)& entertainment centres in CEE — Plaza Centers has been active in the region since 1996 and was the first to develop western-style shopping and entertainment centres in Hungary 1996 First investment in H
Slide 7: Historical Business Cycle (1996-2016) cont.
Company Overview 20Company Overview year track record - Historical of developing shoppingBusiness Cycle centers & entertainment (1996-2016) in CEE – —cont. Plaza Centers has been active in 20 year track record of developing shopping & entertainment centers in CEE — Plaza Centers has been active thei
Slide 8: Portfolio Summary by Country
Company Overview Portfolio Summary by Country Portfolio Summary by Country Total portfolio of 20 assets in eight countries 4 2 3 1 1 2 2 1 1 1 1 1 Poland Serbia India Romania Hungary Bulgaria Greece Latvia 8 Completed & Active (4) Offices (1) For Development (3) Plots Pipeline (12)
Slide 9: Operating Shopping and Entertainment Centers
Company Overview Operating Shopping and Entertainment Centers Location Torun, Poland Torun Plaza Concept Shopping and entertainment center GLA (sqm) 40,000 Occupancy 94% • Operating shopping and entertainment center • Located in Central Poland • Opened to the public in November 2011 • External Valua
Slide 10: Operating Shopping and Entertainment Centers
Company Overview Operating Shopping and Entertainment Centers Location Zgorzelec, Poland Zgorzelec Plaza Concept Shopping and entertainment center GLA (sqm) 13,000 Occupancy 89% • Operating shopping and entertainment center • Located in South West Poland • Opened to the public in March 2010 • Extern
Slide 11: Capital Markets & Debt Restructuring
Capital Markets & Debt Restructuring Plaza’s shares are traded on the Main Board of the London Stock Exchange (LSE), listed on the Warsaw Stock Exchange (WSE) and on Tel-Aviv Stock Exchange (TASE) Capital Markets Shareholding Structure • On 1 November 2006, Plaza raised ₤166m (€247m) from its IPO an
Slide 12: Bonds Repayments Schedule
Capital Markets & Debt Restructuring Capital Markets & Debt Restructuring Bonds Repayments Schedule Bonds Series Plaza currently has two series of NIS Bonds traded on the Tel-Aviv Stock Exchange (“TASE”) and one series of PLN bonds (circa €13 Million) held by Polish institutional investors. Debentur
Slide 13: Bonds Repayments Schedule- cont.
Capital Markets & Debt Restructuring Capital Markets & Debt Restructuring Bonds Repayments Schedule- cont. Debentures Repayment Schedule post restructuring (for the three series) – Principal & Interest (€ M) Based on the Company’s forecast of asset sales resulting early principal repayments* 120.0 1
Slide 14: Capital Markets & Debt Restructuring
Capital Markets & Debt Restructuring Capital Plaza’s Markets &plan debt restructuring Debtwas Restructuring approved by the Dutch court in July 2014 and became final in November 2014 with the Rights Issuance approval. Plaza’s debt Sinceprogram restructuring then (until wasMarch approved31,by2016), P
Slide 15: Activities Following Approval of Restructuring Plan
Activities Following Approval of Restructuring Plan Sales of assets since approval of the Restructuring Plan In line with the Company’s stated restructuring plan, 75% of the net cash proceeds from Plaza’s asset sales are distributed to the Company’s bondholders as an early principal repayment. Septe
Slide 16: Activities Following Approval of Restructuring Plan
Activities Following Approval of Restructuring Plan Sales of assets since approval of the Restructuring Plan – Cont. March 2016: Completed the sale of Liberec Plaza Shopping and Entertainment Centre in Liberec, Czech Republic for €9.5 million (upon completion of the disposal the Company received €8.
Slide 17: Bank Loans - Refinancing and Discounts
Activities Following Approval of Restructuring Plan Bank Loans- Refinancing and Discounts As part of the Company’s plan to reduce its leverage, the following action was taken: February 2014: Following the sale of its airplane for US$1.9 million, the Company reached a settlement with the airplane fin
Slide 18: Plaza's Main Focus in 2016
Activities Following Approval of Restructuring Plan Plaza’s main focus in 2016 Plaza’s Main Focus in 2016 Developments:1. Continuing construction of Belgrade Plaza (“Visnjicka”) in Belgrade, Serbia – The building permit was received in July 2015 and bank financing is expected to be agreed shortly. T
Slide 19: Financial Highlights Summary
Financial Highlights Summary Financial Highlights Reduction in total assets value to €386 million (31 December 2015: €392 million) mainly due to cash decrease, which was used to repay interest and principal of bonds according to restructuring plan. Book value of the Company’s trading properties
Slide 20: Financial Highlights Summary cont.
Financial Highlights Summary- cont. cont. Financial Highlights Loss in Q1/2016 totalled €7.6 million (Q1 2015: loss of €17.7 million), the 2016 loss stemming vastly from a non- cash €8.5 million of finance costs (resulting from Bonds discount amortisation), Basic and diluted loss per share reduced
Slide 21: Financial Overview: Results
Financial Highlights Financial Overview Results Results (€ 000)cont. (€ 000) Three months ended March 31 2016 2015 Revenue from disposal of Trading Property 9,632 - Rental income 4,524 5,291 Revenues from entertainment centres - 219 14,156 5,510 Cost of Trading Property disposed (9,632) - Cost of op
Slide 22: Financial Overview: Results cont.
Financial Highlights Financial Overview Results Results (€ 000)- (€ 000) cont. cont. Three months ended March 31 2016 2015 Write-down of Trading Property (23) (212) Share in results of equity-accounted investees (“EAI”), net of tax 569 (176) Administrative expenses1) (1,542) (1,810) Other income 362
Slide 23: Financial Overview: Results cont.
Financial Highlights Financial Overview Results Results (€ 000)- (€ 000) cont. cont. Three months ended March 31 2016 2015 Finance income(1) 3,592 1,417 Finance costs(2) (12,900) (21,338) Net finance costs (9,308) (19,921) Loss before income tax (7,379) (17,454) Income tax expense (258) (224) Loss f
Slide 24: Notes to the Financial Overview
Financial Highlights Financial Notes Overview to the (Cont.) results (1) Finance income increased to €3.6 million from €1.4 in Q1 2015 mainly due €3.3 million income resulting from Forex and Israeli CPI decrease incurred in 2016. (2) Finance costs decreased from €21.3 million in Q1 2015 to €12.9 mil
Slide 25: Company's Shopping Centres' Net Operating Income
Financial Highlights Company’s ShoppingCenters Company’s Shopping Centres’ Net Operating Net Operating IncomeIncome (“NOI”) (“NOI”) The following table presents the NOI performance of shopping centres for the three months ended 31 March 2016: Shopping Centre NOI 3 months 2016 NOI 3 months 2015 Remar
Slide 26: Debt Structure of the Group
Financial Highlights Debt DebtStructure structure ofof thethe Group Group Debt Structure – March 31, 2016 € million Debentures(1) 197 CEE - operating malls(3) 122 Debt Bank Loans CEE - others(4) 8 Total Debt 327 Including receivable due to selling Liberec – obtained Liquid balances - Consolidated in
Slide 27: Operational Highlights: Developments, Finance and Asset sales
Operational Highlights Developments, Finance and Asset sales Operational Highlights The Company completed the sale of its subsidiary holding the Liberec Plaza, a shopping and entertainment centre in the Czech Republic, on 31 March 2015 for €9.5 million. Following net asset value adjustments relate
Slide 28: Operational Highlights: Developments, Finance and Asset sales cont.
Operational Highlights Developments, Finance and Asset sales- cont. Operational Highlights As announced after on 16 May 2016, after the period end, a subsidiary of Plaza, in which the Company has a 50% stake, entered into a business sale agreement with respect to the disposal of Riga Plaza shoppin
Slide 29: Operating Shopping and Entertainment Centres
Operational Highlights Operating Shopping Operational Highlightsand Entertainment Centres (cont.) Stable performance at core CEE shopping centres during the Period: Portfolio occupancy slightly improved to 95.92% as of 31 March 2016, compared to 94% in Q1 2015. – At Torun Plaza, Poland, occupancy
Slide 30: Plaza Centers
PLAZA CENTERS