Investis Holding Sa · SIX:IREN
Investis Holding Sa — H1 2018 Earnings Presentation
33 slides from Investis Holding Sa's earnings presentation, Aug 30, 2018
Slide 1: Half-Year 2018 Results
HALF-YEAR 2018 RESULTS IR-PRESENTATION – 30 AUGUST 2018 1
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 Highlights on Group performance and market overview Details on the performance for the HY 2018 and outlook Appendix IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 3
Slide 4: HY 2018 - Group Highlights
HY 2018 - Group Highlights % + 49 Net Profit excluding % revaluation effect 0.5 Avg interest rate % + 12 EBITDA % before revaluations/disposals + 4.6 % Revenue growth IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 4
Slide 5: Highlights on Lake Geneva Real Estate Market
Highlights on Lake Geneva Real Estate Market Focused demand on reasonably priced rental units ongoing high in Geneva / Lausanne GE and VD represent 15.2% of total population in Switzerland Continuing positive immigration – On Swiss level +24,866 in HY 2018 vs +25,526 in HY 2017 Despite a net g
Slide 6: Real Estate Market in Switzerland
Real Estate Market in Switzerland Immigration expected to flatten out on a national scale Geneva showing highest immigration growth year on year Population growth 2017 vs 2016 Net immigration change in % Zurich Agglomeration Geneva Switzerland Small City Middle City Centers Centers Municipalities Mu
Slide 7: Real Estate Market in Switzerland: favorable rent development in big city centers
Real Estate Market in Switzerland Continued favorable development of rents in big city centers as the number of apartments to be build does not grow Rent developments # of units with construction permit p.a. Index 1st Q 2008 = 100 Outskirts Agglomeration of Small& Middle sized city centers Small&Mid
Slide 8: Yield comparison for apartment buildings vs 10y government bond
Yield comparison for apartment buildings vs 10 y gvt bond – highest yields in Geneva Geneva Zurich 10y Swiss Government Bond Source: Wüest Partner IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 8
Slide 9: Agenda
Agenda Highlights on Group performance and market overview Details on the performance for the HY 2018 and outlook Appendix IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 9
Slide 10: Main developments HY 2018 – enhanced operating performance
Main developments HY 2018 – enhanced operating performance Investis Group: – Top line growth by +4.6%, driven by organic growth in both segments and further investments in Properties – Further double digit improvement in operating performance – 4th Bond issued in June, volume CHF 100m, coupon 0.35
Slide 11: Investis Group: Rise in Net profit excluding revaluation effect
Investis Group: Rise in Net profit excluding revaluation effect (CHFm) HY 18 HY 17 Δ in % HY 2018 Revenues Revenue 97.9 93.6 +4.6 27% 24% EBITDA 19.6 17.6 +11.8 before revaluation/disposals 73% 76% HY 17 Income from revaluations / from sale of investment 10.6 17.8 -40.6 properties EBIT 29.2 34.3 -14
Slide 12: Organic revenue growth in Property Mgmt and Facility Services
Organic revenue growth in Property Mgmt and Facility Services; full exit in Construction Mgmt (CHFm) 0.8 0.8 97.9 0.2 0.5 3.4 93.6 0.2 Revenue Properties Properties Property Facility Services Construction Eliminations Revenue HY 2017 (like-for-like (net acquired Management (organic) Management HY 20
Slide 13: HY 2018 - Highlights Properties
HY 2018 - Highlights Properties CHF 7.9 m Income from disposal of investment properties 1.4 %pt Improved Gross margin by + 1.0 % Like-for-like rental growth + 16 + 18 % Revenue growth % IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 13
Slide 14: Substantial increase in rental income
Substantial increase in rental income (CHFm) HY 18 HY 17 Δ% Property Portfolio Total value: CHF 1,289m (+15.0%) Revenue from letting of 159 properties – 2,911 residential units 27.0 23.3 +15.6 properties 9% EBITDA 17.5 15.3 +14.0 before revaluations/disposals … by main use: Revaluations & disposals
Slide 15: Properties: Adding value by further expanding the portfolio
Properties: Adding value by further expanding the portfolio A robust, large and .… Rent potential based on Wüest Partner appraisal 91% located in the wealthy and stable Lake Geneva region (CHFm) 91% share of residential 99% underlying occupancy +13% (97.5% including renovation and strategic vacancie
Slide 16: HY 2018 - Highlights Real Estate Services
HY 2018 - Highlights Real Estate Services % CHF 3.7 m EBIT 5.0 % Stable EBIT margin + 2.4 Organic revenue growth % Facility Services + 1.3 + 18 % Organic revenue growth % Property Management IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 16
Slide 17: Real Estate Services – further organic growth in both segments
Real Estate Services – further organic growth in both segments Revenue split (CHFm) HY 18 HY 17 Δ% Revenue 73.2 72.6 +0.7 Expenses -68.6 -68.0 -0.9 47% 53% EBIT 3.7 3.7 -0.3 EBIT margin 5.0% 5.0% Property Mgmt Facility Services Organic growth in Property Management (PM) and Facility Services (FS)
Slide 18: Real Estate Services active nationwide with well-known local brands
Real Estate Services active nationwide with well-known local brands Focus on two activities: Property Management and Facility Services Property Management Facility Services Property management Caretaking services Co-ownership associations Cleaning services Center management Building tech
Slide 19: Investis Group: improvement in Net profit excluding revaluation effect
Investis Group: considerable improvement in Net profit excluding revaluation effect (CHFm) HY 18 HY 17 Δ% Average interest rate reduced to 0.5% (0.7% in prior year) EBIT 29.2 34.3 -14.9 Partial reversal of deferred taxes in prior 1st HY 2017 Financial income 0.1 0.3 -77.8 (CHF 1.5m) Financial ex
Slide 20: Solid Balance Sheet prevails – LTV within target range
Solid Balance Sheet prevails – LTV remaining within target range Balance Sheet (CHFm) 30.06.18 31.12.17 Δ% Property Portfolio value +47% since IPO Cash and cash equivalents 22 51 -57.1 Mortgages reduced to CHF 13.7m 4 Bonds with a volume of total CHF 520m Properties portfolio 1,289 1,121 +15.0
Slide 21: Attractive financial profile with strong resilience
Attractive financial profile with strong resilience supported by flexibility in leverage Financial debts (in CHFm) 30.06.2018 31.12.2017 1.9% 2.5% Avg. interest rate 0.5 % 0.7 % Avg. bond maturity 32.0 40.0 (in months) Gross loan-to-value *) 41 % 39 % 95.6% 2y straight bond CHF 100m issued in June
Slide 22: Outlook
Outlook For the Full Year 2018 Rise in revenue and net profit excluding revaluation effect – Second HY expected to show lower growth rates than first HY Targeted annualised rental income of over CHF 50m for properties to be reached one year ahead For the Mid-term 2019 Remaining targets reaffir
Slide 23: A compelling investment case – why invest in Investis?
A compelling investment case for investors – why invest in INVESTIS? VALUE PROPOSITION PROPERTIES REAL ESTATE SERVICES Pure Swiss player Stable financing and financial flexibility to take advantage of market opportunities Established position with high barriers to entry and differentiated success fa
Slide 24: Q&A
Q&A IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 24
Slide 25: Agenda
Agenda Highlights on Group performance and market overview Details on the performance for the half year 2018 and outlook Appendix IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 25
Slide 26: 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: Inve
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: Entrepreneurial business since 1994
Investis Group has been an entrepreneurial business since 1994 1994 Foundation Foundation of «Compagnie Foncière de la Cité» with own funds 1994 – Investment and formation of a large Accumulation of residential properties in the Lake Geneva region 2005 property portfolio mainly through reinvestm
Slide 29: 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 30: Organisation
Organisation IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 30
Slide 31: 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 1.9m Renovation of Additional energy Stairs Residential block built in 1986 with bathrooms and efficiency renovation New lifts painting 40 residential units and two retail units kitchens works 1998 2012
Slide 32: IR-Agenda
IR-Agenda 26 September 2018: Investora, Zurich 28 March 2019: Publication of 2018 annual results 29 April 2019: Ordinary AGM 2019 in Zurich IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 32
Slide 33: Thank you for your attention!
Thank you for your attention! IR-PRESENTATION - HALF-YEAR 2018 RESULTS - 30 AUGUST 2018 33