Investis Holding SA · SIX:IREN
Investis Holding SA — H1 2017 Earnings Presentation
37 slides from Investis Holding SA's earnings presentation, Aug 31, 2017
Slide 1: IR-Presentation Half-Year 2017 Results
Investis Holding SA IR-PRESENTATION HALF-YEAR 2017 RESULTS - 31 AUGUST 2017
Slide 2: Disclaimer
Disclaimer This communication contains specific forward-looking statements, beliefs or opinions, including statements with respect to objectives, which are based on current beliefs, expectations and projections about future events and assumptions of the management of Investis Holding SA ("Investis")
Slide 3: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights HY 2017 3. Financials HY 2017 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 3
Slide 4: Macroeconomic Overview
Macroeconomic Overview Overall positive environment for the real estate market prevailing Globally: increased growth expectation for Swiss economy by the International Monetary Fund (IMF) Swiss economy slowly recovering from the effects of the abolition of the Franc-Euro exchange rate mechanism
Slide 5: Highlights on Swiss Real Estate Market
Highlights on Swiss Real Estate Market High demand persistent Continuing immigration but at a lower level Focused demand on reasonably priced rental units ongoing high – 38% of online search subscriptions focus on these apartments, but they represent only 25% of the offering (source: WüestPartne
Slide 6: Real Estate will be impacted by digital technologies
Real Estate will be impacted by digital technologies – like any other industry Few innovation was done so far – especially in Switzerland Property managers will have to offer more value added services – create a journey for the customer Internet of Things and Big Data are providing huge opport
Slide 7: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights HY 2017 3. Financials HY 2017 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 7
Slide 8: Main developments HY 2017
Main developments HY 2017 Investis Group: – Top line growth by +18%, mainly driven by organic growth, investments in Properties and acquisitions in Facility Management – Substantial improvement of operating performance; EBITDA before revaluations/disposals +35% – Further reduction of mortgage expo
Slide 9: Main achievements since IPO
Main achievements since IPO Development of the property portfolio – Portfolio value at CHF 1,036m as at 30.6.2017 vs CHF 875m a year ago; +18% – CHF 167m1) invested since 30.6.2016; Gross yield of acquired properties >5% – Revaluation gains: 1HY 2016: CHF 17m / 2HY 2016: CHF 30m / 1HY 2017: CHF 17
Slide 10: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights HY 2017 3. Financials HY 2017 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 10
Slide 11: HY 2017 - Highlights
HY 2017 - Highlights +40% 0.7% Profit for the period CHF 17.2m Avg interest rate +x%+ 18 % Revaluation gains Revenue Growth IR-PRESENTATION - HALF-YEAR 2017 RESULTS 11
Slide 12: Solid performance in both segments
Solid performance in both segments (CHFm) HY 17 HY 16 Δ in % HY 2017 Revenues Revenue 93.6 79.3 +18.0 24% EBITDA 17.6 13.0 +35.0 before revaluation/disposals 76% Income from revaluations 17.2 16.7 +2.5 EBIT 34.3 29.7 +15.6 Properties EBIT margin 36.7% 37.4% Real Estate Services Net financial expense
Slide 13: Property portfolio passing the threshold of CHF 1bln in value
Property portfolio passing the threshold of CHF 1bln in value (CHFm) HY 17 HY 16 Δ% Property Portfolio 138 properties – 2,354 residential units Revenue from letting of 23.3 20.2 +15.7 properties 13% EBITDA 15.3 12.2 +25.6 … by main use: before revaluations/disposals Revaluations & disposals 17.8 17.
Slide 14: Stable and further improved operating performance in Properties
Stable and further improved operating performance in Properties Portfolio value Portfolio split Rent potential based on Wüest Partner appraisal 1 036 (CHFm) (CHFm) +15% Residential Commercial 875 Undeveloped plots of land 857 Properties held for sale Properties u/construction CHF 54m CHF 47m +4.1% -
Slide 15: Property quality
Robust and well-maintained residential portfolio further expanded in one of Switzerland’s most dynamic regions A robust, large and .… Portfolio structure 91% located in the wealthy and stable Lake Geneva region Year of construction(3) 14% 87% share of residential (1) 26% 99% underlying occupancy (2)
Slide 16: HY 2017 - Highlights Real Estate Services
HY 2017 - Highlights Real Estate Services +5.7% +152% 5.0% IR-PRESENTATION - HALF-YEAR 2017 RESULTS 16
Slide 17: Real Estate Services – developments above expectations
Real Estate Services – developments above expectations Revenue split (CHFm) HY 17 HY 16 Δ% 1% Revenue 72.6 68.7 +5.7 Direct expenses -7.1 -14.9 +52.5 53% 46% Personnel expenses -50.0 -42.3 -18.3 EBIT 3.7 1.5 +152 EBIT margin 5.0% 2.1% Property Mgmt Facility Mgmt Average FTEs 1,121 875 +28.1 Construc
Slide 18: Real Estate Services: Considerable improvement in operating performance
Real Estate Services: Considerable improvement in operating performance as a result of … EBIT Bridge (CHFm) - 7.7 - 11.7 - 1.8 3.7 1.5 HY 2016 EBIT GoP Personnel expenses Other operating HY 2017 EBIT expenses/Depreciation IR-PRESENTATION - HALF-YEAR 2017 RESULTS 18
Slide 19: Lower interest expenses and tax rate improved net profit further
Investis Group: Lower interest expenses and tax rate improved net profit further (CHFm) HY 17 HY 16 Δ% Substantial decrease of average interest rate to 0.7% (from 2.0% in 2016) – First bond issued in November 2016 EBIT 34.3 29.7 +15.6 – Second bond issued in Feb 2017 nom CHF 140m Financial income
Slide 20: Sound Balance Sheet prevails – conservative financing strategy
Sound Balance Sheet prevails – conservative financing strategy Balance Sheet (CHFm) 30.06.17 31.12.16 Δ% Property Portfolio value +5.7 % to surpass CHF 1 bln for the first time Cash and cash equivalents 56 53 +5.5 Mortgages to be replaced by unsecured senior debt Properties portfolio 1,036 981 +
Slide 21: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights HY 2017 3. Financials HY 2017 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 21
Slide 22: Outlook – solid performance expected for 2017
Outlook – solid performance expected for 2017 Investis Group: EBITDA (before revaluations and disposals) to be at least 10% higher than 2016 Mid-term targets 2019 confirmed: – Properties: annualised rental income > CHF 50m – Real Estate Services: High single digit EBIT-margin – Financing: throug
Slide 23: Upcoming Dates
Upcoming Dates Publication of FY 2017 results 21 March 2018 AGM 20 April 2018 IR-PRESENTATION - HALF-YEAR 2017 RESULTS 23
Slide 24: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights 2016 3. Financials FY 2016 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 24
Slide 25: Q&A
Q&A IR-PRESENTATION - HALF-YEAR 2017 RESULTS 25
Slide 26: Agenda
Agenda 1. View on the Swiss Real Estate Market 2017 2. Highlights 2016 3. Financials FY 2016 4. Outlook 5. Q&A 6. Appendix – Strategy – Business Profile – Investment highlights – History, Management, others IR-PRESENTATION - HALF-YEAR 2017 RESULTS 26
Slide 27: Leading Swiss residential property company in the Lake Geneva region
Investis Group is a leading Swiss residential property company in the Lake Geneva region and a national real estate services provider STRATEGY AND INVESTMENT POLICY Continuation of the buy-and-hold strategy through selected investments in the properties segment Preservation and increase of portf
Slide 28: Major development projects
Major development projects are: Hérémence Time of construction: 2016-2026 Total costs: CHF 90m (current project) Land size: 25’088 m2 To be built: 1 Hotel (60 rooms) 1 Spa area (approx. 3’300 m2) 5 Chalets (individual) 7 buildings with 99 apartments to be sold individually or en bloc Ownership: JV 5
Slide 29: Investis Real Estate Services active throughout Switzerland
Investis Real Estate Services is active throughout Switzerland with well-known local brands Focus on two activities: Property Management and Facility Management Property Management Facility Management Property Management Caretaking services Co-ownership associations Management Services Cen
Slide 30: Why invest in Investis?
A compelling investment case for investors Why invest in INVESTIS? Largest listed residential portfolio in the Swiss market Robust and well maintained portfolio focused on the Lake Geneva region Low vacancy Pure Swiss player Attractive and stable return profile – high dividend Value crea
Slide 31: Entrepreneurial business since 1994
Investis Group has been an entrepreneurial business since 1994 Entry in Real Estate Successful listing Services business; at SIX Swiss Exchange Consolidation and capitalise on strong active refurbishment property portfolio of the property Investment and portfolio IPO 30th June 2016 formation of a
Slide 32: Entrepreneurial Management
Entrepreneurial Management Board of Directors Executive Board Riccardo Boscardin Stéphane Bonvin Chairman CEO Investis Group Independent member Head of Properties Member of the Audit and Compensation Committee Albert Baehny René Häsler Vice-Chairman CFO Investis Group Independent member Chairman of
Slide 33: Organisation
Organisation IR-PRESENTATION - HALF-YEAR 2017 RESULTS 33
Slide 34: Highlights on Swiss Real Estate Market
Highlights on Swiss Real Estate Market Rent evolution for rental accommodation Offer on rental accommodation Switzerland big city centers smaller city centers big city centers agglomeration of big city centers small and medium city centers periphery Source: WüestPartner agglomeration of small and me
Slide 35: Vacancy rates in core agglomerations stable
Vacancy rates in core agglomerations stable – sideways movement to be excepted Vacancy rates by type of area Flatter curve in GE vs average As % of number of rental apartments (estimate) as per 1 June in % 1.3 Switzerland 1.2 avg 1.1 1.0 0.9 0.8 Vaud 0.7 27% of portfolio value 0.6 0.5 Geneva 0.4 0.3
Slide 36: Case study: Buy and hold strategy / Rue du Nant 30 – Geneva
Case study: Buy and hold strategy / Rue du Nant 30 – Geneva Acquisition in December 1998 for CHF Renovation of the bathrooms and 1.9m Residential block built in 1986 kitchens. Additional energy efficiency Stairs New lifts with 40 residential units and two retail renovation works painting units in 20
Slide 37: Thank you for your attention!
Thank you for your attention! IR-PRESENTATION - HALF-YEAR 2017 RESULTS 37