Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — Q1 2016 Earnings Presentation
45 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, May 10, 2016
Slide 1: 1Q 2016 Results presentation and 2016-2018 Business Plan update
Conference call 10 May 2016 6.00 pm CET 1Q 2016 Results presentation and 2016-2018 Business Plan update
Slide 2: Disclaimer
This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. DISCLAIMER 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: Results presentation as at 31/03/2016
Results presentation as at 31/03/2016
Slide 4: Highlights 1/2
4 Highlights 1/2 €33.8 mn Core business revenues (+8.7% vs 31/03/2015) EBITDA €23.6 mn •EBITDA (core business) (+12.5% vs 31/03/2015) 69.9% •EBITDA margin (core business) ( +2.4pts. vs 31/03/2015) 79.2% •EBITDA margin from Freehold ( +1.7pts. vs 31/03/2015) €12.7 mn Group Net Profit (+37.4% vs 31/03
Slide 5: Highlights 2/2
5 Highlights 2/2 FINANCIAL OCCUPANCY at 31/03/2016 97.2% •ITALY (96.9% at 31/12/2015) •ROMANIA 94.2% (93.9% at 31/12/2015) Net Debt €984.2 (€984.8 at 31/12/2015) Gearing ratio €0.92 (vs €0.93 at 31/12/2015) 47.3% Loan to value (vs 47.3% at 31/12/2015) 10 May 2016 Results presentation as at 31/03/201
Slide 6: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 7: Revenues
7 Revenues BREAKDOWN OF RENTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 31,400 Total 33,862 Revenues +7.8% 1.1% 106 6.6% 76 1,269 258 1,264 30.7% Core business 32,487 +8.7% 29,802 61.6% CONS 2015 CONS 2016 Core business revenues from rental act. MALLS HYPER ROMANIA OTHER Revenues from servic
Slide 8: Rental income drivers
8 Rental income drivers (€/000) ITALY ROMANIA +1.6% +2.3% +9.1% 195 30 49 2,407 424 32,593 29,878 Revenues from rental act. LFL Italy Acquis/Exten/Restyling Disposal+other "Porta a Mare" change LFL Romania Revenues from rental act. 1Q_2015 1Q_2016 LFL: Malls +2.1% Higher revenues on a non like- Nega
Slide 9: Operating cost and financial management
9 Operating cost and financial management CORE BUSINESS G&A EXPENSES AND DIRECT COSTS (€ 000) Lower weight of operating costs on 2,517 - 2.2% 2,463 Revenues Core Business Ebidta margin G&A expenses (69.9%) is growing: +150bps + 1.7% 7,700 direct costs 7,568 Ebitda margin from Freehold: 79.2 % 1Q2015
Slide 10: Group Net Profit: €12.7 MN (+37.4%)
10 Group Net Profit: €12.7 MN (+37.4%) NET PROFIT EVOLUTION (€ 000) 988 -12 -14 24 -154 2,613 12,659 9,215 Group Net Profit Change in core Change in Ebitda Change in Change in financial Change in taxes Change in Group Net Profit 31/03/2015 business Ebitda "Porta a Mare" depreciations, and extraordin
Slide 11: Funds From Operations
11 Funds From Operations Funds from Operations (core business) 31/03/2015 31/03/2016 D D% Pre-tax profit 10,003 13,396 3,393 33.92% Depreciations and other provisions 339 328 -12 -3.26% Of which: Change in FV and devaluation 413 577 164 39.76% • + €2.6 mn due to Ebitda increase Extraordinary managem
Slide 12: Operating Performance
OPERATING PERFOMANCE
Slide 13: Commercial highlights
13 Commercial highlights Footfalls in Italian Shopping Malls +2.4% yoy Tenants sales in Italian Shopping Malls +6.0% yoy Hypermarketys sales +0,3*% yoy Footfalls in Romanian shopping malls +1% vs 31/03/2015 *Excluding hypermarkets of Sarca, Casilino which are currently subject to restyling 10 May 20
Slide 14: Financial Structure
FINANCIAL STRUCTURE
Slide 15: Financial highlights 1/2
15 Financial highlights 1/2 31/12/2015 31/03/2016 NET DEBT €984.8 mn €984.2 mn AVERAGE COST OF DEBT 3.67% 3.26% INTEREST COVER RATIO 2.15X 2.52X LOAN TO VALUE 47.3% 47.3% GEARING RATIO 0.93 0.92 10 May 2016 Results presentation as at 31/03/2016
Slide 16: Financial highlights 2/2
16 Financial highliths 2/2 31/12/2015 31/03/2016 AVERAGE LENGHT OF LONG TERM DEBT 6.3 years 6 years (bonds included) HEDGING ON LONG TERM DEBT + BOND 91.6% 93.7% CREDIT LINES - TOTAL €302.5 mn €301.5 mn CREDIT LINES - AVAILABLE €120.0 mn €114.0 mn UNENCUMBERED ASSETS €867.6 mn €883.5 mn 10 May 2016
Slide 17: 2016-2018 Business Plan update presentation
2016-2018 Business Plan update presentation
Slide 18: Why an update of the Plan?
18 Why un update of the Plan? Evolution of the macro-economic context Important acquisition carried out at the end of 2015, not foreseen in the 2015-2018 Business Plan New financial operations All this, continuing the strategy of development and pipeline completion 10 May 2016 2016-2018 Busine
Slide 19: Introduction – Italian context
19 Introduction – Italian context GDP trend (change %) Consumers and business confidence index 3.0% 120.0 1.5% 1.7% 115.0 2.0% 1.2% 1.3% 1.3% 0.8% 110.0 1.0% 0.6% 105.0 -0.3% 100.0 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e 95.0 -1.0% -1.7% 90.0 -1.1% -2.0% 85.0 80.0 -3.0% -
Slide 20: Introduction – Romania context
20 Introduction – Romania context GDP trend (% change) 10.00% 8.50% 8.00% 6.90% 6.00% 4.20% 3.50% 3.70% 3.40% 4.00% 3% 3.10% 2.00% 1.10% 0.60% 0.00% -0.80% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e -2.00% -4.00% -6.00% -7.10% -8.00% Source: Eurostat data compiled by IGD GDP is e
Slide 21: The retail real estate
21 The retail real estate Retail investments evolution in Italy Retail investments 1Q2016: €600 mn, +13% vs 4Q 2015 Italy In 1Q 2016 there has been an improvement in investments in the retail real estate sector, the volume of which increased by 13% compared to the last quarter of 2015 and more tha
Slide 22: Strategy confirmed
22 Strategy confirmed Goal: Confirm our position as a leading owner and manager of shopping centers in Italy and continue our path of a sustainable growth SUSTAINABILITY FULLY INTEGRATED IN THE BUSINESS PLANNING ASSET MANAGEMENT FULLY INTEGRATED APPROACH COMMERCIAL/ FINANCE MARKETING 10 May 2016 201
Slide 23: Main targets - BP 2016-2018
23 Main targets - BP 2016-2018 New Targets BP 2016-2018 Target previous plan (BP 2015-2018) Total growth> +20% approx. REVENUES FROM RENTAL Total growth: confirmed ACTIVITIES cagr* +7% approx. Cagr > +5% approx., increasing cagr* LFL +2% approx. Cagr LFL confirmed EBITDA MARGIN Core business >70%
Slide 24: Assumptions on Italian and Romanian revenues
24 Assumptions on Italian and Romanian revenues ITALY • Occupancy increase (about 1 percentage point with evidence already from 2016) and constant decrease of temporary reductions • Contribution for the whole year of the assets acquired/opened in 2015 (Puntadiferro and Clodì) • Development of revenu
Slide 25: Focus on new openings
25 Focus on new openings Overall growth LFL Rental Revenues (lfl 2015) > + 6% + New openings = Total rental revenues > + 20% Of which: 1. puntadiferro and Chioggia excluded from the like-for-like as opened/acquired in 2015. Whole year revenues already from 2016 2. NEW PROJECTS: Grosseto (opening in
Slide 26: Assumptions on costs and Ebitda evolution
26 Assumptions on costs and Ebitda evolution Costs increase over BP timespan (mainly due to extension of portfolio perimeter for investments), but their impact on revenues decrease. Core business Ebitda and Ebitda margin evolution €87 mn > 70% 67.3% 2015 2016 2017 2018 Ebitda and related margin perf
Slide 27: Assets management assumptions
27 Assets management assumptions 1) Investments evolution 2016 - 2018 • Total investments: approx. €195 mn • Of which, for development: approx. €145 mn • Average yield on cost (on development): > 7% • New GLA approx. 71,500 smq 2) Assumptions on the assets fair values No change in fair value in the
Slide 28: Investments Pipeline
28 Investments Pipeline 2016 2017 2018 Total development Tot. ~ €81 mn ~ €26 mn ~ €38 mn projects ~ €145 mn Total Capex Tot. ~€24 mn ~ €18 mn ~ €8 mn and other ~ €50 mn TOT. INVESTIMENTS ~€195 MN Grosseto ESP – Ravenna Officine Storiche – Livorno New opening Extension New opening November2016 1H 201
Slide 29: Financial area
29 Financial area Main assumptions • Issue of unsecured senior bond 5-7 years in 2016 with an expected cost lower than the current Group’s cost of debt. • Option execise for CMBS early repayment (€135mn, cost approx. 5.2%) Targets confirmed with respect to the previous plan • Maintain a strict finan
Slide 30: Debt structure and debt maturity
30 Debt structure and debt maturity Activities to extend the repayment profile to longer maturities and reduce the average cost of debt are being carried out 200 Milioni 180 EARLY Net Debt CLOSURE OPTION of which at 31/03/2016 160 135mn € €984.16 mn CMBS 140 BNP Cost 23.7% 120 5.2% 100 43.7% 56.3% 8
Slide 31: FFO evolution and Dividend policy
31 FFO evolution and Dividend policy CAGR 2015 - 18 + 18.3 % Funds from 75 operations evolution (FFO - € mn) 45 2015 2016 2017 2018 As for dividends, policy, already communicated to the market, of the distribution of about 2/3 of the core business FFO, is confirmed Dividend Reinvestment Option (DRO)
Slide 32: Final remarks
32 Final remarks The updated Business Plan, that has a low execution risk, confirms IGD’s ability to increase FFOs and strenghten visibility of the dividends that will be distributed. Following Punta di Ferro acquisition, not foreseen in the previous Plan, FFO target has been further improved. There
Slide 33: BP 2016-2020 Appendix
aT Dim BP 2016-2020 Appendix
Slide 34: Focus BP: pipeline in progress (1/6)
34 Focus BP: pipeline in progress (1/6) Mall acquisition in Grosseto The new shopping mall will have a GLA of approx. 17,000sqm, divided in 42 shops and 8 medium surfaces, and an hypermarket. Pre-letting: around 80% (full occupancy is expected on the opening) End of work: November 2016 Total expecte
Slide 35: Focus BP: pipeline in progress (2/6)
35 Focus BP: pipeline in progress (2/6) ESP Shopping Center extension (Ra) The project calls for an increase in the mall’s GLA of 19,000 m² and the creation of 1,100 parking places. End of work: 1H 2017 Total expected investment: approx. €53 mn 10 May 2016 2016-2018 Business Plan update presentation
Slide 36: Focus BP: pipeline in progress (3/6)
36 Focus BP: pipeline in progress (3/6) Opening of the Mall Officine Storiche - Livorno Requalification of the industrial warehouses of the former Cantieri Navali Orlando inside of which vast reception facilities and accommodations will be created housing personal services (fitness centers, leisure
Slide 37: Focus BP: pipeline in progress (4/6)
37 Focus BP: pipeline in progress (4/6) Gran rondo’ - Extension and restyling The project calls for an extension with the creation of a new medium surface area, with a total GLA of around 2,850 sqm and the complete restyling of the shopping mall. End of work: 1H 2018 Total expected investment: appro
Slide 38: Focus BP: pipeline in progress (5/6)
38 Focus BP: pipeline in progress (5/6) PORTA A MARE PROJECT - LIVORNO The purpose of the project is to transform an area of the port of Livorno, near the city center, with the construction of a multi-purpose complex of about 70,000 m² which will house shops, residential units, services, accommodati
Slide 39: 1Q 2016 Results Appendix
1Q FY 2009 2016 RESULTS Bologna Appendix November 11, 2011
Slide 40: Consolidated Financial Statement
40 Consolidated Financial Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/03/2015 31/03/2016 D% 31/03/2015 31/03/2016 D% 31/03/2015 31/03/2016 D% Revenues from freehold real estate and rental activities 26,856 29,507 9.9% 26,780 29,401 9.8% 76 106 38.6% Revenues from leasehold rea
Slide 41: Margin from activities
41 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE €/000 31/03/2015 31/03/2016 % 31/03/2015 31/03/2016 % 31/03/2015 31/03/2016 % Marginfrom freehold properties 22,999 25,517 10.9% 22,929 25,437 10.9% 70 80 12.9% Margin from leasehold properties 466 518 11.2% 466 518 11.2% 0 0 n.a. Mar
Slide 42: Ebitda (core business): €23.6mn
Total consolidated Ebitda: € 23.5mn 42 Ebitda (core business): € 23.6mn CONSOLIDATED EBITDA (€ 000) -133 55 24 2,691 23,502 20,866 Ebitda 31/03/2015 Change in revenues from Change in direct costs Change in G&A expenses Change in Ebitda "Porta a Ebitda 31/03/2016 rental act. and services Mare" projec
Slide 43: Contracts in Italy and Romania
43 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKETS AND MALLS EXPIRY DATE OF HYPERMARKETS AND MALLS CONTRACTS ITALY (% no. of contracts) CONTRACTS ITALY ( % of value) N 19 70% 67.4% 80% 76.0% 60% 70% 60% 50% 50% N 311 40% 35.2% 40% N3 N 2 N 254 N 169 30% 30% 27.2% N 104 N 145 N 159 22.2% 2
Slide 44: Net Debt
44 Net Debt NET DEBT EVOLUTION -12.659 10,100 -2.561 3,378 1,947 -858 984,815 984,162 Net Debt 31/12/2015 Profit for the period attributable to the Depreciations/Devaluations/Change in Change in NWC (net of PM Change in other non assets and Change in fixed/non-fixed assets Change in shareholders' eq
Slide 45: 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) — Q1 2016 Earnings Presentation on 6ix