64 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, November 2012
Slide 1: IGD SIIQ SPA IGD's Presentation
IGD SIIQ SPA IGD’S PRESENTATION
Slide 2: Disclaimer
MER CLAIM This presentation contains forwards-looking information and statements about IGD SIIQ SPA and its Group. Forward-looking statements are statements that are not historical fa acts. These statements include financial projections and estimates and thheir underlying assumptions assumptions, st
Slide 3: Index
3 Index IGD Group 4 Business Plan 2012-2015 13 Results as at 30/09/2012 41
Slide 4: IGD group overview
IG GD 4 Is one of the main player in the Italian real estate e sector of the large organized distribution: develops and manages shopping centers acro oss the country and has a significant presence in retail distributio on in Romania. Presence throughout the territory, capital stren ngth, processing
Slide 5: SIIQ status from 1 January 2008
Siiq status from 1° 1 Jan nuary 2008 5 First of all: BEING LISTED ON THE STOCK MARKET ((IGD has been listed since 2005)) At least 80% of total assets must be rental asset KEY FIGURES At least 80% of total positive components of P&L (excl change in FV) must be rental income N. 1 shareholder: no more
Slide 6: IGD's shareholders
6 IGD IGD’ss shareholders COOP ADRIATICA UNICOOP TIRRENO 29,84% TREASURY SHARES 42,77% EUROPEAN INVESTORS INC. 4,25% 4,63% SCHRODER INVESTMENT 3,33% MANAGEMENT LTD 15,18% FREE FLOAT IGD is listed on the STAR seg gment of Borsa Italiana Share Capital 322 2,545,915.08
Slide 7: Italian Portfolio
Italian Portfolio 7 51 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 19 shopping pp g malls and retail park p 19 hypermarkets and supermarkets 1 city center 4 plots of land for development 1 property held for trading 7 other Emilia Romagna 5 shopping malls, 8 hypermarkets-Super, 1 city center, 5 other, 1
Slide 8: Romanian Portfolio
8 Romanian R i P Portfolio tf li 15 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 DIFFERENT ROMANIAN MEDIUM SIZED CITIES GEOGRAPHICAL DISTRIBUTION OF ROMANIAN PORTFOLIO 15% 24% 100,000 <x <= 200,000 inhabitants x > 200,000 inhabitants x <= < 100,000 100 000 inhabitants 61%
Slide 9: Italian and Romanian Portfolio
Italian and Romanian Portfolio 9 BREAKDOWN BY TYPE OF O IGD’S PORTFOLIO MARKET VALUE 1.4% HYPERMARKET/SUPERMARKET / 9.2% 0.4% SHOPPING MALLS 5.3% 27.9% 2.2% LANDS OTHER ASSET HELD FOR TRADING WINMARKT 53.5% CITY CENTER BREAKDOWN BY GEOGRAPHIC AREA IN PORTFOLIO BREAKDOWN ITALY AND ITALY (mkt value) R
Slide 10: Portfolio characteristic
Portfolio characteristic 10 € mn Mkt Value Mkt Value 31/12/2011 30/06/2012 LFL Italian Portfolio 1,719.3 1,708.86 Change in L4L FV decreased of - 0.57% City Center Project V. Rizzoli 27.3 27.5 (10.99 € mn in absolute value) l ) compared d tot Winmarkt Portfolio Romania (malls + office 31.12.2011. 17
Slide 11: 2009 and 2010 openings
2009 and 2010 opening gs 11 Tiburtino Shopping Center Katanè K t è Sh Shoppingi g Center C t Le Maioliche Shopping Center Guidonia (Lazio) Catania (Sicilia) Faenza (Emilia-Romagna) April 2009 May 2009 June 2009 I Bricchi Shopping Center La Torre Shopp S ping Center C Coné C é Sh Shopping i CCenter t
Slide 12: 2011: City Center Project and Asset Turn Over
12 2011: City Center Projectt and Asset Turn Over June 2011 Hypermarket in Conè Shopping Center in Conegliano Veneto April 2011 Via Rizzoli Bologna July J l 2011 Hypermarket in La Torre Shopping Center in Palermo
Slide 13: 2012-2015 business plan presentation
2012-2015 business plan presentation a get Susta Target: Sustainability ab ty
Slide 14: Why a new Business Plan? (1/2)
14 Why a new Business Plan? (1/2) EURO area crisis Nov. ‘09 N ‘09: Nov. ‘1 10: 2009- 2009-2013 BP 2013 BP B Review 2012-2015 Business Plan 2009 2010 2011 2012 165 145 125 105 85 65 45 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐100 Jan‐11 Apr‐11 Jul‐11 Oct‐11 Jan‐12 Apr‐12 Jul‐12 Oct‐12 EPR
Slide 15: Why a new Business Plan? (2/2)
Why a new Business Plan? (2/2) 15 BIG CHANGES IN THE MACRO‐ECONOMIC SCENARIO Review of the strategic s guidelines with Involvement of all IGD’s particular ti l atten tt ntion ti t the to th GROUP’S Departments in SUSTAINABILITY Y in terms of: the process of REDUCTION OF FINANCIAL drawing up of LEVER
Slide 16: Trends in the Italian retail real estate sector
16 Trends in the Italian re etail real estate sector GENERAL TRENDS MOREOVER Investor and retailer interest HAS TO DEAL WITH 9Decline •Decline in in investment investment in 2012, in 2012, but but Italy Italy still has still a goodhaspotential a good poteential 9Country •Country Risk Risk 9Solidity
Slide 17: How IGD is placed and the effects on the Business Plan
How IGD is placed and the e effects on the Business Plan 17 Mostly MEDIUM SIZED IGD DIRECT Presence in THE LEADING and EASILY Shopping BUSINESS MANAGEMENT WHOLE OF centers in their REACHAABLE centers with of shopping ITALY catchment area MODEL shopping FOOD ANCHOR centers (11 regions) (“PRIME cente
Slide 18: Basic macro assumptions
18 Basic macro assumpttions Basic assumptions 2012 2013 2014 2015 Inflation 3.2% 2.2% 2.0% 2.0% GDP -2.3% -0.3% 1.1% 1.2% Italy Consumptions -3.1% -1.1% 0.7% 1.0% Euro area inflation 2 2% 2.2% 1 7% 1.7% 1 7% 1.7% 1 7% 1.7% GDP 0.5% 2.2% 3.7% 4.0% Romania Consumption 0.8% 2.9% nd nd IGD processing on
Slide 19: Key figures - 2012-2015 Business Plan
19 Key K figures fi - 2012-201 2012 201 15 business b i Pl Plan 20 012-2015 BP Consolidation of operational 9Rental revenues CAGR +3.6% results 9LFL Rental R l revenues CAGR +2.8% 9Ebitda Margin (Core business >71% 2015) Asset <1 2 <1.2 2x end d off 2015 9 Geraring ratio (end of Management B timespa
Slide 20: Strategic guidelines
20 Strategic guidelines Sustainab ble Growth 3. Enhancement 1. Consolidation 2. Financiall off portfolio f l and d of operational Sustainability development results pipeline
Slide 21: Consolidation of operating results: Italy
21 1. 1 Consolidation of ope erating results: Italy 1. Commercial strategies to support the headlin ne of revenues: Consolidation of operational results 9 Ability to innovate… (increase in internation nal brands, enhancement of local qualities, personal services) 9 … and to understand the changes in
Slide 22: Consolidation of operating results: Romania
22 1. 1 Consolidation of ope erating results: Romania The estimated growth in Winmarkt net revenue es in the period 2012-2015 will be influenced by: 1. Consolidation 9 Indexation of contracts; of operational results 9 stepped rents; 9 renewals carried out at market rent; 9 GLA qualification actions.
Slide 23: Financial Sustainability: assumptions
2 Financial Sustainability 2. 23 2012 2013 2014 2015 2. Financial Sustainability Financial Spread on short term 3.1% 2.8% 2.5% 2.5% assumptions Spread on new loans 3 5% 3.5% 3 5% 3.5% 3 3% 3.3% STRATEGIA FINANZIARIA Euribor3M fforecast Euribor6M fforecast Market IRS (€ Millions)) 2.50% € 50 IRS EUR3
Slide 24: Financial Sustainability
24 2 Financial Sustainability 2. 2. Financial Italy Sustainability Gearing ratio 9Reduction in debt ratio at 2015 D/E: <1.2 X (in the e event of asset disposal for about € 100 mn over bp timespan, not exceeding g 1.4x)) STRATEGIA FINANZIARIA Hedging policies 9 Target: degree of total debt coverage u
Slide 25: Convertible Bond
25 2. 2 Convertible Bond 2. Financial Sustainability Convertible Bond (Expiry date 28/12/2013)) Work o in p progress og ess with so some eoof the e leading ead g financial a c a institutions i s u o s ((Italian a a a and d foreign) o eg )o on how o to o refinance. e a ce STRATEGIA FINANZIARIA Issue
Slide 26: Pipeline
26 3. 3 Pipeline 3. Enhancement of portfolio and development New Esp pipeline Chioggia Centro d’Abruzzo investments Restyling/ Porta Medicea Porto Grande extension Centro Sarca Grand Rondò Le porte di Napoli Opening €/000 Investment Month Year 2012 2013 2014 2015 Total off which in bp timespan Chiog
Slide 27: Italy: investments and capex
27 3. 3 Italy 3. Enhancement of portfolio and I Investments t t and d capex development pipeline Focus on the committed pipeline: 9 Restyling and extensions in prime shop pping centers according to the commercial targets and to maintain high level of attracctiveness 9New openings in shopping centers
Slide 28: Disposals and further development opportunities: Italy
28 3. 3 Disposals and further development d opportunities: Italy 3. Enhancement of portfolio and development pipeline 9 Disposal of assets for an am mount of € 100 mn during the Business Plan timespan. 9 Asset rotation and Partnersh hip with institutional financial investors also in light of o the a
Slide 29: Disposals and further development opportunities: Romania
29 3. 3 Disposals and further development d opportunities: Romania 3. Enhancement of portfolio and development pipeline Investment plan for upgrading Investment target for extraordinary maintenance (ab bout 12mn€): 9Adjustment of centers to international standards (fa acades and interior fit-out) 9P
Slide 30: Romania
30 3. 3 RRomania i 3. Enhancement GLA RECOVERY of portfolio and AND FLOW development pipeline OPTIMIZATION Cluj Fitnesss center La cuina Ploiesti 2015 REFURBISHMENT DESIGNING STARTUP 2014 CORE SCOPE (capex to set up the GameLand – Rm Valcea OF 2 NEW FACADES REDEFINITION portfolio for future + 2013 (
Slide 31: Chioggia Retail Park
31 3. 3 Chioggia Retail Park 3. Enhancement of portfolio and development CHIOGGIA RETAIL PARK – CHIOGGIA (VE) pipeline Start of work end 2012 End of work March 2014 The project consists of a total GLA of 18,343 m², wh hich will incorporate a Hypercoop of 7,490 m² (of which 4,500 m² of sales area), 5
Slide 32: ESP
32 3. 3 ESP ESP – Restyling and Extension 3. Enhancement of portfolio and development Restyling - Work completed at the end of 2011 pipeline Total investment about 2.8 mn € ng, The restyling (inside and outside) concerned lightin flooring furnishing and layout of some stores in th flooring, he shopp
Slide 33: Porto Grande
33 3 Porto Grande 3. 3. Enhancement of portfolio and PORTO GRANDE – Porto d’Ascoli (AP) development pipeline Start of work half 2013 End of work May 2014 The final urban planning with the municipality is in progress. The extension consists of an additional 5,000 m² foor 2 external medium surface are
Slide 34: Centro d'Abruzzo
34 3. 3 Centro d d’Abruzzo Abruzzo 3. Enhancement of portfolio and CENTRO D’ABRUZZO – S. Giovanni Teatino (CH) development pipeline Start of work second half 2012 End of work March 2014 The final urban planning with the municipality is in progress. The extension consists of the construction of a bui
Slide 35: Centro Sarca, Gran Rondò, Le Porte di Napoli (capex)
35 3. 3 Centro Sarca, Sarca Gran Ro ondò Le Porte di Napoli (capex) ondò, 3. Enhancement of portfolio and development pipeline CENTRO SARCA – Sesto San Giovanni (MI) Start of work 2013 End of work 2015 Restyling of the mall and of the facade. Total expected investment about 6 € mn Rendering Centro S
Slide 36: Porta a Mare - City Center (1/3)
3 Porta a Mare - City Cente 3. er (1/3) 36 PORTA A MARE PROJECT- LIVORNO The Porta a Mare project is under revision with 3. Enhancement p g uses and function types. the aim of optimizing yp of portfolio and development pipeline It is expected that the necessary authorizations will be forthcoming at
Slide 37: Porta a Mare - City Center (2/3)
37 3. 3 Porta a Mare – Cityy Center (2/3) 3. Enhancement of portfolio and development pipeline
Slide 38: Porta a Mare - City Center (3/3)
38 3. 3 Porta a Mare – City Ce enter (3/3) 2012-2013 2014-2015 Piazza Mazzini: end of sales for residential 3. Enhancement Mazzini Officine: retail and start of sales for of portfolio and retail and residential development residential pipeline PORTA MEDICEA - Sales development Pre 1H H 2012 2H 2012
Slide 39: Final remarks (1/2)
39 Final remarks (1/2) We belie eve that: 9the 2012-2015 9th 2012 2015 BBusiness i Pl Plan, as an evolutio l tion off the th previous i plan, l can b be considered id d a consolidation plan of the great developm ment achieved over the previous years (Value of the property portfolio from 500€ €mn at
Slide 40: Final remarks (2/2)
40 Final remarks (2/2) But most of all to: 9Remain at or abo ove 0.07 € of dividend and 9If the share p price levvels will p permit it, to repeat p the Dividend Reinves stment Option every year (It is assumed that 50% of the amount to be distribute ed will be reinvested in a capital increase organiz
Slide 41: Results presentation as at 30/09/2012
Results presentation as at 30/09/2012
Slide 42: Economic and Financial Highlights
42 Economic E i and d Fi Financial i l Highlights H hli ht Hi REVENUES 92.1 € mn •Revenues from core business (+2 6% vs 30/09/2011) (+2.6% EBITDA 64.6 € mn •EBITDA (core business) ( -2.7% vs 30/09/2011) g (core •EBITDA margin ( business)) 70.1 % ( -3.8 3 8 percentage t points) i t ) Group Net Profit
Slide 43: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 44: Consolidated Income Statement
44 Consolidated C lid t d IIncome S St t Statement t CONSOLIDATED S D CORE BUSINESS S SS "PORTA A MARE" PROJECT €/000 30/09/2011 30/09/2012 % 30/09/2011 30/09/2012 % 30/09/2011 30/09/2012 % Revenues from freehold properties 79,453 81,862 3.0% 79,453 81,862 3.0% 0 0 n.a. Revenues from leasehold prope
Slide 45: Margin for activities
45 Margin M i ffor activities ti iti CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 30/09/2011 30/09/2012 % 30/09/2011 30/09/2012 % 30/09/2011 30/09/2012 % Margin from freehold properties 70,548 69,642 (1.3)% 70,548 69,642 (1.3)% n.a. Margin from leasehold properties 1,449 1,152 (20 0.5)% 1
Slide 46: Revenues from core business
46 Revenues R ffrom core busi b iiness: +2.6% 2 6% BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 9.2% 91,543 Total 92,150 0.4% revenues 1.726 +0.7% 1.1% 3,984 3,925 Revenues from f trading Core business Revenues from f services + 2.6 26% 61 3% 61.3% 28.1% 85,833 88,225 Ricavi d
Slide 47: Direct Costs and G&A Expenses Core Business
47 Direct Costs and G&A Expenses Core Business DIRECT COSTS CORE BUSINESS ((€ 000)) Direct costs increase mainly due to: •IMU (26% of core business direct costs), 20,70 +2.1 € mn,(+64.7%) + 22.2 % 3 The costs in IMU will not be affected by 16 939 16,939 strong changes having taken the rates already
Slide 48: Consolidated and core business Ebitda
Total consolidated Ebitda: 64.3 64 3 € mn 48 Ebitda (core business): 64.6 € mn (-2.7%) CONSOLIDATED EBITDA (€ 000) + 37.3% + 4.7% 607 3,930 1,129 320 66,819 64,305 Ebida 30/09/2011 Change in Change in directt Change in Change in G&A Ebitda 30/09/2012 operating revenues costs increases, cost of sales
Slide 49: Group Net Profit
49 Group G Net N P Profit: fi 16.1 16 1 € mn NET GROUP PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) Tax rate adjusted by change in FV 1,821 693 8.5% 39,622 ‐ 59.4% 23,968 39,622 142 6,756 16,075 3,963 16,075 30/09/2011 30/09/2012 Group net Change in Change in Change in Change in Change in Change in G
Slide 50: Funds From Operations
50 Funds F d From F Operation O ti ns FFO (€/000) 30 0/09/2011 / / 30/09/2012 / / Δ Δ% % Pre‐tax profit 45,312 14,867 ‐30,445 ‐67.2% Depreciation & other provisions 768 988 220 28.6% Change in FV -11,686 11,686 12,063 23,749 ‐203 203.2% 2% Extraordinary management 635 566 -68 ‐10.7% Margin from trad
Slide 51: Commercial Highlights
51 Commercial C i l Hi Highlights hli hts Footfalls in Italian shopping malls (L4L) + 1.6% vs 30/09/2011 Hypermarkets/Supermarkets sales in Italian shopping centers (L4L) - 0.6% vs 30/09/2011 Tenant sales in Italian shopping malls s (L4L) - 2.7% vs 30/09/2011 Footfalls in Romanian shopping malls (L4
Slide 52: Performance of our malls in the first 9 months of 2012
52 Performance P f off our malls lls in i th the first fi t 9 months th off 2012 TENANT SALES AND FOOTFALLS IN OUR R SHOPPING MALLS MALL SALES per moths 10.0% 8.0% 8.0% SALES FOOTFALLS 6.0% 6.8% 4.2% 4.5% 4.2% 4.0% 2.0% 2.3% 1.8% 1.5% 0.4% ‐0.1% Sale change total trend LFL total trend LFL abs. Value
Slide 53: Hypermarkets shopping trends
53 Hypermarkets H k t e shopping h i g trends t d as att 30/09/12 HYPERMARKET/SUP PERMARKET SALES IN ITALY total trend LFL total trend t LFL total trend LFL total trend LFL supermarkets+ +0.9% 0% +0.9 9% -0.4% -0.9% -0,3% +3% +3% hypermarkets hypermarkets -0.1% -1.2% -0.9 9% -0,9% -4% -1,3% +3% +3%
Slide 54: Tenants in Italy
54 Tenants T t in i Italy It l Turnover TOTAL CONTRACTS TOP 10 Tenant Product category g y Contracts i impact Miroglio group Malls 1,021 clothing 3.4% 34 Hypermarkets 19 clothing 3 1% 3.1% 10 Total 1,040 COMPAR footwear 1.9% 10 clothing and sports 1.7% 3 equipment BRANDS BREAKDOWN IN MALLS clothing
Slide 55: Tenants in Romania
55 Tenants in Romania Turnover TOP 10 Tenant Product category g y Co ontracts i impact TOTAL CONTRACTS 604 food 6.5% 8 electronics 6.1% 9 BRANDS BREAKDOWN IN MALLS jewellery 5.7% 12 footwear 3.9% 13 26% 35% services 3.3% 1 House of Art clothing (family) 3.3% 9 39% pharmacy 3.0% 8 International brand
Slide 56: Contracts in Italy and Romania
Contracts in Italy and R Romania 56 EXPIRY DATE OF CONTRACTS OF HYPERMARKET EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. of contracts) MALLS IN ITALY (% of value) Nr. 19 120% 120% 100.0% 100.0% 100% 100% 80% 80% Nr. 583 61.3% Malls Malls 56 2% 56.2% 60% 60% Nr. 220 Hypermar
Slide 57: Focus on Romania
57 Focus F on Romania R i The eighth Carrefour opened in Vaslui Winmarkt obtained the permission to build a doubling of the overhead pedestrian bridge to join the two shopping centers Omnia and Grand Center (value equal to 32% of the total portfolio Winmarkt) from the City of Ploiesti. Investment: a
Slide 58: Financial Structure
FINANCIAL STRUCTURE
Slide 59: Financial Highlights 1/2
59 Financial Fi i l Hi Highlights hli ht 1/2 30/06/2012 30/09/2012 GEARING RATIO 1.39 1.37 LOAN TO VALUE 57.2% 57% COST OF DEBT 4.3% 4.2% INTEREST COVER RATIO 1.78 1.73 AVERAGE LENGHT OF LONG TERM DEBT 10.7 years (BOND excluded) 10.5 years
Slide 60: Financial Highlights 2/2
60 Financial Fi i l Hi Highlights hli ht 2/2 30/06/2012 30/09/2012 BALANCED CAPITAL STRUCTURE 75.7% (LT debt +Bond) 76.3% HEDGING ON LONG TERM DEBT + BOND 78.1% 77.6% HEDGING ON LONG TERM DEBT 70.6% 69.9% BANKING CONFIDENCE 291.5 € mn 291.5 € mn BANKING CONFIDENCE AVAILABLE 92.7 € mn 95.3 € mn ASSET
Slide 61: Financial structure
61 Financial Fi i l structure t t NET DEBT COMPOSITION (€ 000) 8,078 17,869 768,950 1,090,420 133,298 197,963 Short term debt Current share of long term Long term debt Potentiaal mall and business Cash & cash equivalents Net debt debt d division fees DEBT MATURITY (€ 000) 90,000,000 230 € mn CONV 80
Slide 62: Net debt
62 Net N t debt d bt NET DEBT CHANGE (€ 000) 4,287 7,739 1,053 1,983 5,633 3,262 1,095,313 1,090,420 Net debt 30/06/12 Net profit 3Q Depreciation, Change in NWC C 3Q Change in other non Capex 3Q Change in Net debt 30/09/12 devaluation, chenge current assets & Shareholders' equity in FV 3Q liabilitie
Slide 63: Reclassified Balance Sheet
63 Reclassified R l ifi d B Balance l S Sh t Sheet SOURCES/USE OF FUNDS(€ 000) FY10 FY11 Δ Δ% Fixed asset 1,893,0 088 1,896,372 3,284 0.2% NWC 73,4 406 75,389 1,983 2.7% Other long term liabilities -69,4 69 4 462 -70,075 70 075 -613 613 0 9% 0.9% TOTAL USE OF FUNDS 1,897,0 032 1,901,686 4,654 0.2% N
Slide 64: Investor relations contact
gd.it ppoig Claudia Contarini, IR w w.grup T. +39. 051 509213 M. +39 3386211738 claudia.contarini@gruppoigd.it www