Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — H1 2015 Earnings Presentation
41 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 6, 2015
Slide 1: Results presentation as at 30/06/2015
Conference call 6 August 2015 H 6.00 p.m. Results presentation as at 30/06/2015
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
Slide 3: A very intense and positive first half!
3 A very intense and positive first half! 15 January 2015 15 April 2015 Signed the preliminary The new Board of Directors agreement for the disposal of a elected (reduced the numbers of real estate complex on via Directors from 15 to 13 and Rizzoli in the historic heart of appointed the Board of Sta
Slide 4: Highlights 1/2
4 Highlights 1/2 REVENUES 62.3 € mn • Core business revenues (+ 3.3% vs 30/06/2014) EBITDA 41.4 € mn •EBITDA (core business) (+ 3.9% vs 30/06/2014) 66.5% •EBITDA margin (core business) (+ 0.4 points vs 30/06/2014) 76.7% •EBITDA margin from Freehold Group Net Profit 20.4 € mn ( €4.5 mn at 30/06/2014)
Slide 5: Highlights 2/2
5 Highlights 2/2 FINANCIAL OCCUPANCY at 30/06/2015 96.2% •ITALY 96.0% as at 31/03/2015 •ROMANIA 88.9% 86.2% as at 31/03/2015 Total Portfolio Market Value 1,942.38 € mn Loan to Value 48.3 % (vs 48.3% as at 31/12/2014) 0.95 Gearing (D/E) (vs 0.95 as at 31/12/2014) NNAV 1.23€ 6 August 2015 1H2015 Resul
Slide 6: Economic Context
ECONOMIC CONTEXT
Slide 7: Macroeconomic context
7 Macroeconomic context Italy consumers and companies confidence Italy GDP Trend (% change) indices 120.0 2.0% 115.0 1.4% 110.0 1.5% 105.0 1.0% 0.7% 100.0 95.0 0.5% 90.0 85.0 + 23% from 0.0% 80.0 Aril 2013 -0.4% 75.0 -0.5% 70.0 2010 2011 2012 2013 2014 2015 -1.0% Consumers confidence index Companies
Slide 8: The retail real estate
8 The retail real estate Retail Investments evolution in Italy Source: Italy In 2Q 2015 there has been an increase in the volume of retail investments compared to 1Q; the value is below that in 2014 but it is still +16% compared to the quarterly average in the last 5 years Italy confirmed to be
Slide 9: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 10: Revenues
10 Revenues BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET Total 61,829 revenues 63,344 +2.4% 0.3% 162 0.3% 134 886 7.0% 1.2% 1,385 2,551 2,710 Core business 32.9% +3.3% 59,745 58.3% 57,600 CONS 2014 CONS 2015 Core business revenues from rental act. Revenues from services MALLS
Slide 11: Rental income drivers
11 Rental income drivers (€/000) ITALY ROMANIA -217 +3.7% -395 116 -140 28 +2.9 % 2.821 2,174 0% flat -39 LFL Italian revenues Acquis/Extens/Restyling Disposals Other Romania Romania (instrumental Porta a mare Total change vacancy and other) ITALIA Higher revenues due to: Centro d’Abruzzo extension,
Slide 12: Core business direct costs and G&A expenses
12 Core business direct costs and G&A expenses CORE BUSINESS DIRECT COSTS (€ 000) Main changes: Considerable savings in rents and payable 15,487 15,554 leases (from real right of enjoyment to +0.4% ownership of Città delle Stelle) Less allocations to provision for doubtful accounts 6,137 6,333 I
Slide 13: Group net profit: €20.4 mn
13 Group net profit: €20.4 mn NET PROFIT EVOLUTION (€ 000) Less deferred taxes on changes in Fair Value 2,235 1,067 147 13,406 20,410 1,551 23 4,454 Group net profit Change in core Change in Ebitda Change in Change in financial Change in taxes Change in (profit)/loss Group net profit 30/06/2014 busi
Slide 14: Core business Funds From Operations
14 Core business Funds From Operations Funds from Operations 30/06/2014 30/06/2015 D D% Of which: Pre-tax profit 6,758 20,796 14,038 207.71% Depreciation and other provisions 754 702 -54 -6.96% • + €1.6 mn due to Ebitda Change in FV and devaluations 9,917 -333 -10,250 -103.36% increase Extraordinary
Slide 15: Operating Performance
FY 2009 RESULTS OPERATING Bologna PERFORMANCE November 11, 2011
Slide 16: Commercial Highlights
16 Commercial Highlights +6.7% progressive change Tenants sales in Italian Shopping Malls +3.5% LfL * Footfalls in Italian Shopping Malls SUBSTANTIALLY - 0.8% STABLE Footfalls in Italian Shopping Malls -0.9% Footfalls in Romanian WINMARKT Shopping Malls +1.7% LfL Hypermarket sales -2.8% progressive
Slide 17: Contracts in Italy and Romania
17 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKET AND MALL EXPIRY DATE OF HYPERMARKET AND MALL CONTRACTS CONTRACTS IN ITALY (% no. of contracts) IN ITALY (% of value) N 21 90% 84.5% 100% N 698 88.0% 80% 90% 67.5% 70% Average residual 80% 67.6% 60% 70% maturity 60% 50% Hyper 10.2 years 50%
Slide 18: Commercial and asset management activities in 1H 2015
18 Commercial and asset management activities in 1H 2015 Restyling and new tenants in Centro Borgo Switch between Unieuro and Magnosfera Restaurant. New dental clinic “Identi.coop” on the first floor (area dedicated to services) End of work: 3Q 2015 Restyling and new medium surface in Centro Sarca A
Slide 19: Focus Porta a Mare
Focus Porta a Mare 19 opening of the channel and next openng food court area 27/07/2015 Opening of the Channel between Piazza Mazzini and Officine Storiche 5 flats sold in the first few months of 2015 (3 as at 30/06 and 2 subsequently) and negotiations Financial completed for 3 more flats Occupancy
Slide 20: Focus Romania
20 Focus Romania 3 contracts signed in June (Bistrita, Ploiesti and Bazau) and 4 more contracts are being negotiated with Tulcea: restyling completed and Ploiesti Omnia: facade restyling narly opening of 5th H&M (April) completed Polish retailer specialized in clothing and households goods with more
Slide 21: CSR: the most important results achieved in the First Half of 2015
CSR: the most important results achieved in the 21 First Half of 2015 BUSINESS PLAN TOPICS SOME RESULTS ACHIEVED IN FIRST HALF OF 2015 • The first IGD photovoltaic system installed on the roof of the new Retail Park Clodì, in Chioggia (VE) • The LED lighting system installed in 6 Shopping centers, w
Slide 22: Portfolio
FY 2009 RESULTS PORTFOLIO Bologna November 11, 2011
Slide 23: Portfolio characteristics
23 Portfolio characteristics ITALY ROMANIA HYPERMARKETS MALLS AVERAGE MALLS Financial occupancy 100% 94.13% 96.24% 88.94% Market value as at 30 June 2015 €mn 624.90 1,004.10 169.30 Compounded average yield of total portfolio (gross 6.45% 6.42% 6.37% initial yield) Gla mq 268.650 292.887 77.969 The i
Slide 24: Market Value evolution
24 Market Value evolution € mn Mkt Value Mkt Value Asset 31/12/2014 30/06/2015 Rotation Malls+Hypermarkets+Other Italy 1,579.09 1,634.91 City Center (Piazza Mazzini) 56,5* 24.90 Total income related portfolio in ITALY 1,635.58 1,659.81 Total income related portfolio in ROMANIA 175.30 172.60 TOTAL IG
Slide 25: NNNAV
25 NNNAV Despite the distribution of dividends equal to €28.4 mn, the NNNAV as at 30 June 2015 results in line with that of FY 2014 31-Dec-14 30-Jun-15 NNNAV Calculation €'000 € p.s. €'000 € p.s. Share total number 756,356,289 756,356,289 1) NAV per the financial statement 950,229 1.26 947,739 1.25
Slide 26: Financial Structure
FY 2009 RESULTS FINANCIAL STRUCTURE Bologna November 11, 2011
Slide 27: Financial Highlights 1/2
27 Financial Highlights 1/2 31/12/2014 30/06/2015 GEARING RATIO 0.95 0.95 LOAN TO VALUE 48.3% 48.3% AVERAGE COST OF DEBT* 4.03% 3.88% INTEREST COVER RATIO 1.77X 2.04X Net of charges on loans (both recurrent and not) Improvement in Financial Management also due to the bond swap operation completed in
Slide 28: Financial Highlights 2/2
28 Financial Highlights 2/2 31/12/2014 30/06/2015 AVERAGE LENGTH OF LONG TERM DEBT (bonds included) 6.2 years 6.7 years MEDIUM LONG TERM DEBT QUOTA 90.2% 85.3% HEDGING ON LONG TERM DEBT + BOND 90.9% 91.4% BANKING CONFIDENCE € 267.5 mn 302.5 € mn BANKING CONFIDENCE AVAILABLE € 234 mn 209.5 € mn MKT V
Slide 29: Debt Maturity
29 Debt Maturity of which 200 OPTION €135 mn Millions EARLY CLOSURE CMBS 180 BNP 160 140 120 100 125.0 162.0 bond 80 debito Bank bancario debt 60 40 8.0 20 0 2015 2016 2017 2018 2019 2020 2021 2022 Net Debt €937.9 mn S.T. 14.7% 45.8% 54.2% L.T. 85.3% BANKING SYSTEM MARKET 6 August 2015 1H2015 Result
Slide 30: Appendix
FY 2009 RESULTS APPENDIX Bologna November 11, 2011
Slide 31: Consolidated Financial Statement
31 Consolidated Financial Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2014 30/06/2015 D% 30/06/2014 30/06/2015 D% 30/06/2014 30/06/2015 D% Revenues from freehold real estate and rental activities 51,541 53,829 4.4% 51,407 53,667 4.4% 134 162 20.8% Revenues from leasehold an
Slide 32: Margin from activities
32 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2014 30/06/2015 % 30/06/2014 30/06/2015 % 30/06/2014 30/06/2015 % Margin from freehold properties 44,334 45,874 3.5% 44,200 45,718 3.4% 134 155 15.5% Margin from leasehold properties 408 959 n.a. 408 959 n.a. 0 0 n
Slide 33: Total consolidated Ebitda: €41.3 mn
Total consolidated Ebitda : €41.3 mn 33 Ebitda (Core business): € 41.4 mn (+ 3.9%) CONSOLIDATED EBITDA (€ 000) 1,986 68 366 23 39,726 41,254 Ebitda 30/06/2014 Change in operating revenues Change in direct costs Change in G&A expenses Change in Ebitda "Porta a Mare" project Ebitda 30/06/2015 EBITDA a
Slide 34: Tenants in Italy
34 Tenants in Italy Product TOP 10 Tenant Turnover impact Contracts MALLS MERCHANDISING MIX cateogry SERVICES clothing 3.3% 11 8% RESTAURANTS Gruppo Miroglio 7% clothing 3.1% 28 ELETRONICS 11% clothing 2.9% 8 PERSONAL CARE, CLOTHING HEALTHCARE 51% footwear 2.3% 6 4% ENTERTAINMENT clothing 1.8% 5 4%
Slide 35: Tenants in Romania
35 Tenants in Romania MALLS MERCHANDISING MIX SUPERMARKETS 12% OTHER 28% ELETRONICS 13% ENTERTAINMENT 12% CLOTHING 35% TENANT MIX INTERNATIONAL BRANDS LOCAL BRANDS 32% 43% NATIONAL BRANDS 25% 6 August 2015 1H2015 Results presentation
Slide 36: Market Value Evolution
36 Market Value Evolution Breakdown of the Portfolio appraisals As at 30 June 2015 IGD Group’s real estate portfolio has been appraised by 3 independent experts: CBRE, REAG and CUSHMAN&WAKEFIELD 22% 39% 39% CBRE REAG CUSHMAN&WAKEFIELD 6 August 2015 1H2015 Results presentation
Slide 37: Italian and Romanian Portfolio
37 Italian and Romanian Portfolio 56 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 20 shopping malls and retail parks 14 SHOPPING CENTERS + 1 OFFICE 25 hypermarkets and supermarkets BUILDING IN 13 DIFFERENT ROMANIAN 1 city center 2 plots of lands for development MEDIUM SIZED CITIES 1 property held for tr
Slide 38: Italian and Romanian Portfolio
38 Italian and Romanian Portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO BREAKDOWN BY PORTFOLIO MARKET VALUE GEOGRAPHIC AREA IN ITALY (mkt value) 1.3% 8.9% 0.3% 4.4% 8.9% 1.3% 32.2% 51.7% 91.1% HYPERMARKETS/SUPERMARKETS MALLS LANDS OTHER PORTA A MARE WINMARKT ITALY ROMANIA 6 August 2015 1H2015 Results
Slide 39: Net debt
39 Net debt NET DEBT EVOLUTION (€ 000) 20,410 23,085 1,024 5,481 8,104 8,464 942,095 937,904 Net Debt 31/12/14 Profit for the period Depreciations/Devaluation/ Change in NVCC Change in other non -current Change in fixed/non -fixed Change in shareholders' Net Debt 31/03/2015 attributable Change in FV
Slide 40: Reclassified balance sheet
40 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) 31/12/2013 30/06/2014 D D% Investment property 1,782,283 1,832,410 50,126 2.8% Non-current assets held for sale 28,600 0 -28,600 -100.0% Assets under construction 82,179 51,631 -30,548 -37.2% Other non-current assets 26,173 30,216 4,042 15.4
Slide 41: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Federica Pivetti T. +39. 051 509242 federica.pivetti@gruppoigd.it
Immobiliare Grande Distribuzione SIIQ S.p.A. (IGD) — H1 2015 Earnings Presentation on 6ix