Metrovacesa Sa · BME:MVC
Metrovacesa Sa — Q3 2018 Earnings Presentation
31 slides from Metrovacesa Sa's earnings presentation, Nov 14, 2018
Slide 1: Q3 2018 Results
Q3 2018 Results November 14, 2018 Lago de Arrosadía (Pamplona)
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Business Update as of October 31 2. Financial Overview as of September 30 3. Closing Remarks 4. Appendix / Projects Today’s Presenters Jorge Perez de Leza CEO Borja Tejada CFO Pablo Ortiz IR 3.
Slide 4: 1. Business Update
Rosales Residencial (Villaverde, Madrid) 1. Business Update
Slide 5: Portfolio Summary as of October 2018
Portfolio Summary as of 31 October 2018 4,862 active units €296k/unit 3,755 units and Sales Backlog (2) Business 92 developments active ASP (1) 69 developments under 931 €250m commercialization Sold units €269k/unit ASP (1) 1,237 30 units under developments construction under construction 234 €224k/
Slide 6: Residential active units: In line with our 2018 target
Residential active units: In line with our 2018 target Active Units YTD # units Total Launches YTD: 2,955 Key considerations •Total active units reached 4,862 which 439 4.862 represent 75% of gross active units 1.662 4.546 (75) (123) expected in 2018, with an ASP of €296k/unit 854 2.141 (36) •92 act
Slide 7: Residential: Upward trend in sales
Residential: Upward trend in sales Monthly sales speeding u p 3,755 units under commercialization, 25% already sold # units # units 44% 42% 29% 25% 141 % sales over +62% +52% Q3: 238 units under 1,222 1,422 2,314 3,755 102 commercialization +78% Q2: 157 80 Q1: 88 67 65 56 2,824 36 1,639 26 26 25 681
Slide 8: Residential: 45% of deliveries executed and 96% sold
Residential: 45% of deliveries executed and 96% sold (1) Delivery Delivery status as of 9 Nov. 2018 Development Region targets ASP (2) % Sold (units) CFO (3) LPO (3) Delivered Rosales Residencial Center-North 132 196,478 100% Immediate - Resid. San Cosme Center-North 43 204,084 100% Immediate -
Slide 9: Residential: Status of deliveries 2018-2021
Residential: Status of deliveries 2018-2021 (1) Target ASP Construction license Delivery status Year of Gross Margin % Units deliveries Launches Forecast WIP delivery Forecast (3) sold (units) (€ ‘000) (3) Requested Granted CFO LPO Deliveries 2018 520 100% 218 27% 96% 100% 100% 100% 100% 63% 45% 201
Slide 10: Residential: Growing visibility in 2020-2021 deliveries
Residential: Growing visibility in 2020-2021 deliveries (1) March 2018 June 2018 November 2018 Target Year of deliveries Building Permit Building Permit Building Permit delivery (units) % Units sold % Units sold % Units sold Requested Granted Requested Granted Requested Granted 2018 520 73% 98% 98%
Slide 11: Residential: Expected 2018-2021 revenues in line with IPO plan
Residential: Expected 2018-2021 revenues in line with IPO plan IPO Business Plan Current Forecast Target Target Year of ASP forecast Total revenues ASP forecast Total revenues deliveries deliveries delivery (€ ‘000 ) (2) (€ m) (€ ‘000 ) (2) (€ m) (units) (units) 2018 520 218 113 520 218 113 2019 700
Slide 12: Commercial: Turnkey Projects and JVs
Commercial: Turnkey Projects and JVs Target 2018 Status Josefa Valcárcel Turnkey Region Madrid deliveries Use Office 0 €m 30 €m Sales area (sqm) 9,081 Selling price 30 €m (1) Delivery date September 18 (initially planned for Q1 19) Buyer Colonial Gross Margin 17% Turnkey Launch of Launch of •JV with
Slide 13: Land Sales: 2018 target accomplished
Land Sales: 2018 target accomplished Target 2018 Status Buildable area Sales Price GAV IPO Sales Sold assets Use (esqm ) (€m) (€m) Margin Almogavers (Barcelona) Commercial 16,733 22 20 10% Sales target for 2018 exceeded, focused on tertiary Sector Levante (P. Mallorca) Commercial 18,500 14 10 27% la
Slide 14: Land management Q3: continuous progress in urban management
Land management Q3: continuous progress in urban management Land plot Municipality Region Urban status Date Key Milestones Fully permitted GAV 1 Pere IV (Loinsa) Barcelona Catalonia Organized July Initital approval of the Rezoning Project Sept.17 Ratification of the Provisional Approval of the 2 Cre
Slide 15: Best in class platform: Business and geographical split
Best in class platform: Business and geographical split 2 Internal Audit Board of Directors Nov. 2018 Estimated Dec. 2019 Chairman: Ignacio Elena Andrade Moreno 141 FTEs 190 FTEs 5 Regional Offices CEO Jorge Pérez de Leza Residential Land Commercial Shared Development Mgmt. & Sales Development Servi
Slide 16: 2. Financial Overview
Gaztelondo Berria (Bilbao) 2. Financial Overview
Slide 17: Profit and Loss Account
Profit and Loss Account (1) Key considerations Summary P&L A YTD YTD YTD • Residential revenues of €43m (184 units delivered - €235k/unit) (€m) Mar 18 Jun. 18 Sept 18 • Net Commercial development revenues of €28m A Revenues 8.8 48.6 93.4 • Land sales of €36m(2), of which € 14 million recorded as ass
Slide 18: Balance Sheet
Balance Sheet (1) Summary Balance Sheet (€m) Dec. 2017 Sept. 2018 Key considerations A Investment property 370,6 332,8 Other non-current assets 177,3 179,2 A Total non-current assets 547,9 512,0 • Book value (inventory + investment property): €2.3bn with stability in A Inventory 1.906,0 1.935,0 main
Slide 19: Cash Flow Statement
Cash Flow Statement Summary Cash Flow Statement (1) Key considerations Dec. Sept. (€m) 2017 2018 • €65 million of cash increase during the period EBT (78,1) (6,8) • Positive operating cash flow thanks to a decrease in working capital Change in trade provisions 65,8 (6,6) amounting to €26.8 million C
Slide 20: Fully-funded business plan: €755m available financing
Fully-funded business plan: €755m available financing Net debt position (1) Key considerations (€m) Mar. 2018 Jun. 2018 Sept. 2018 • Ramp-up leverage strategy Adjusted gross debt 73.2 72.1 101.8 • Undrawn corporate debt and solid cash position Corporate financing 65.0 56.7 81.1 Net debt according
Slide 21: 3. Closing remarks
Residencial Nereidas (Torremolinos, Málaga) 3. Closing remarks
Slide 22: Construction Costs vs. HPA Margins not contracting
Construction Costs vs. HPA Margins not contracting Construction cost inflation anticipated by MVC earlier this year has become a widespread issue for the industry: (1) +5% HPA • Labour shortages continue to be the main source of inflation, although capacity is gradually ramping up (2) • On average w
Slide 23: Aligned with 2018 targets
Aligned with 2018 targets € Residential Commercial Land sales Land management LTV 3,500 – 4,000 (1) > €30 m 83% fully permitted over LTV < 25% 36,000 sqm launched units launched Target (Turnkey projects GAV + JVs) (July 2019) 520 units to be delivered 85% already launched, rest JV with Tishman Speye
Slide 24: Final Remarks
Final Remarks Consideraciones finales Residential market dynamics • Solid residential market fundamentals with significant room for growth. Housing activity expanding accross the country reaching regions beyond Tier I • Growth in construction cost inflation above initially expected. However, healthy
Slide 25: 4. Appendix
Residencial San Cosme (Valdemoro, Madrid) 4. Appendix
Slide 26: Appendix
Appendix Table of Contents Projects Torres del Cel Phase I (under project design) Tamadaba Phase I (in commercialization) Le Mirage I & II (under construction) Lago de Arrosadía (delivered) 26.
Slide 27: Torres del Cel Phase I (under project design)
Torres del Cel Phase I (under project design) Key metrics Key highlights Location Lleida •Two towers with 20 floors each, 98 homes and 2 commercial Region Catalonia premises per tower Units 100 •First phase has 107 parking spaces and 54 storage rooms Sqm for sale 15,539 •Total parking spaces in both
Slide 28: Tamadaba Phase I (in commercialization)
Tamadaba Phase I (in commercialization) Key metrics Key highlights Location Las Palmas de Gran Canaria •Located west of the city, close to the comercial area of Las Region Canary Islands Ramblas and the University Hospital Units 103 •First phase with 103 homes (1,2,3, and 4 bedrooms). Sqm for sale 1
Slide 29: Le Mirage I & II (under construction)
Le Mirage I & II (under construction) Key metrics Key highlights Location Estepona (Málaga) •Le Mirage phases 1 & 2 is located in the town of Region Costa del Sol Cancelada, municipality of Estepona, within walking Units 72 distance of a wide variety of amenities Sqm for sale 7,481 •Close to the wes
Slide 30: Lago de Arrosadía (delivered)
Lago de Arrosadía (delivered) Key metrics Key highlights Location Pamplona •Located in the zone of southern expansion of Pamplona, Region Center-North next to the 3 Navarrese universities and next to the Units 41 University Hospital Sqm for sale 6,199 •38 free multi-family dwellings (2 and 3 bedroom
Slide 31: Q&A
Pórtico Simón Verde (Sevilla) Q&A