Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — FY2013 Earnings Presentation
49 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Feb 27, 2014
Slide 1: Presentation of results as at 31/12/2013
Conference call 27 February 2014 2.30 p.m. Presentation of results as at 31/12/2013
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: Highlights 1/2
3 Highlights 1/2 REVENUES € 127.0 mn •Total revenues (+3.0% vs 31/12/2012) € 120.7 mn •Core business revenues (-2.1% vs 31/12/2012) EBITDA € 82.8 mn •EBITDA (core business) (-3.5% vs 31/12/2012) 68.6% •EBITDA margin (core business) (-1 percentage point) Group Net Profit € 5.0 mn (-55.7% vs 31/12/201
Slide 4: Highlights 2/2
4 Highlights 2/2 € 2.22 NNAV per share (2.31% as at 31/12/2012) Total Portfolio Market Value € 1,891.3 mn (-15.3 € mn vs 31/12/2012) Income related Portfolio Market Value € 1,723.7 mn (-30.9 € mn vs 31/12/2012) FINANCIAL OCCUPANCY at 31/12/2013 •ITALY 97.4% •ROMANIA 84.5% 27 February 2014 2013 Resul
Slide 5: Economic Context
ECONOMIC CONTEXT
Slide 6: The Italian economic context in 2013
6 The Italian economic context in 2013 GDP trend (change %) Consumption trend (change%) Retail investments in Italy High street Shopping centers Retail warehousing 1.0% 1.5% 1.5% 0.6% Factory outlet Supermarkets Other 0.0% 1.0% 0.6% 0.5% 1.3% 3,000 0.5% -0.5% 2,500 0.0% -0.5% -1.5% 2,000 -2.5% -1.0%
Slide 7: The Romanian economic context in 2013
7 The Romanian economic context in 2013 GDP trend (change %) Consumption trend (change %) 4.0% 3.5% 3.5% 3.0% 3.0% 2.9% 2.5% 2.9% 2.5% 2.3% 2.1% 2.1% 2.5% 2.0% 1.6% 2.0% 1.5% 1.5% 1.0% 1.0% 0.7% 1.0% 0.5% 0.5% 0.0% 0.0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Data source: sample averages i
Slide 8: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 9: Consolidated Income Statement
9 Consolidated Income Statement CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/12/2012 31/12/2013 % 31/12/2012 31/12/2013 % 31/12/2012 31/12/2013 % Revenues from freehold properties 107,637 105,653 (1.8)% 107,625 105,556 (1.9)% 12 97 n.a. Revenues from leasehold properties 10,503 10,183
Slide 10: Margins from activities
10 Margins from activities CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/12/2012 31/12/2013 Δ% 31/12/2012 31/12/2013 Δ% 31/12/2012 31/12/2013 Δ% Margin from freehold properties 93,660 91,353 (2.5)% 93,648 91,256 (2.6)% 12 97 n.a. Margin from leasehold properties 1,295 935 (27.8)% 1,295
Slide 11: Revenues
11 Revenues BREAKDOWN OF TOTAL REVENUES BYTYPE TOTAL REVENUES (€/000) OF ASSET 123,276 Total 126,995 revenues 8.3% 0.1% +3.0% 6.260 0.4% 1.2% Core business -2.1% "PORTA A MARE" PROJECT 29.3% 60.7% CORE BUSINESS 123.264 120.735 MALLS HYPERMARKETS CITY OTHER ROMANIA "PORTA A MARE" PROJECT 31/12/2012 3
Slide 12: Direct costs and G&A expenses core business
12 Direct costs and G&A expenses core business DIRECT COSTS CORE BUSINESS (€ 000) 27,749 28,011 Trend of direct costs mainly due to: OTHER DIRECT COSTS • IMU +0.4 € mn (+6.2%) with an increase in +0.9% PROVISIONS calculation coefficients on D8 land registry 18,419 18,314 IMU property tax (ex ICI) ca
Slide 13: Total consolidated Ebitda: € 82.9 mn
Total consolidated Ebitda: € 82.9 mn 13 Ebitda (core business): € 82.8 mn (-3.5%) CONSOLIDATED EBITDA (€ 000) 2,445 284 281 381 85,732 82,903 Ebitda 31/12/2012 Change in core Change in direct Change in trading Change in G&A Ebitda 31/12/2013 business revenues costs activities expenses EBITDA and EBI
Slide 14: Group net profit: € 5.0 mn
14 Group net profit: € 5.0 mn GROUP NET PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) 2,988 159 11,288 -55.7% 2,641 1,423 2,941 11,288 698 4,998 4,998 31/12/2012 31/12/2013 Group net profit Change in Change in Change in Change in Change in Change in Group net profit 31/12/2012 Ebitda core Ebitda 'Port
Slide 15: Core business Funds From Operations
15 Core business Funds From Operations FFO (€/000) 31/12/2012 31/12/2013 D D% Of which: • –3.0 € mn due to Pre-tax profit 5,763 6,584 821 14.2% decreased Ebitda (decreased net Depreciation and other provisions 1,688 1,446 -243 -14.3% revenues, slightly Change in FV and devaluations 30,594 28,467 -2,
Slide 16: Operating Performance
FY 2009 RESULTS OPERATING Bologna PERFORMANCE November 11, 2011
Slide 17: Commercial Highlights
17 Commercial Highlights Footfalls in Italian IGD Shopping Malls (L4L) + 0.9% vs 31/12/2012 Tenants sales in Italian IGD Shopping Malls (L4L) -1.6% vs 31/12/2012 Retailer sales in CNCC malls -2.5% Footfalls in Romanian WINMARKT Shopping -5.4% vs 31/12/2012 Malls (L4L) 27 February 2014 2013 Results p
Slide 18: The performance of our shopping malls in 2013
18 The performance of our shopping malls in 2013 TENANT SALES AND FOOTFALLS IN OUR SHOPPING CENTERS SALES FOOTFALLS total trend LFL total trend LFL abs. Value ITALY -1.4% -1.6% +0.9% +0.9% 66.2 mn ROMANIA n.p* -5.4% 31.7 mn *not all our tenants have a cash register ITALY Footfalls: +0.9%. Footfalls
Slide 19: The performance of our shopping malls in 2013
19 The performance of our shopping malls in 2013 TENANT SALES AND FOOTFALLS TREND (per month) 6.0% 5.4% 4.4% 5.0% 3.6% 4.0% 3.9% 3.6% 3.8% 2.0% 1.1% 1.2% -0.4% 0.0% -0.4% 0.2% -2.1% -1.0% -1.6% -1.0% -2.0% -3.3% -3.1% -2.6% -4.0% -4.3% -3.7% -4.2% -4.4% -6.0% -5.7% -8.0% Tenant sales change Footfall
Slide 20: Hypermarket and supermarket trends in 2013
20 Hypermarket and supermarket trends in 2013 HYPERMARKET/SUPERMARKET SALES IN ITALY total trend LFL total trend LFL total trend LFL total trend LFL supermarkets + -0.8% -1.6% -0.7% -1.5% -0.7% -1.4% -2.1% -6.6% hypermarkets hypermarkets -1.6% -2.7% -1.0% -1.0% -3.0% -3.0% -2.1% -6.6% supermarkets -
Slide 21: Tenants in Italy
21 Tenants in Italy TOP 10 Tenants Product category Turonver impact Contracts TOTAL CONTRACTS Miroglio group clothing 3.7% 34 Malls 1,016 clothing 3.2% 9 Hypermakets 19 Total 1,035 clothing 1.9% 7 clothing 1.7% 19 BRAND BREAKDOWN IN MALLS footwear 1.6% 4 By turnover BBC bricolage 1.4% 1 electronics
Slide 22: Tenants in Romania
22 Tenants in Romania TOTAL CONTRACTS 552 BRAND BREAKDOWN IN MALLS By turnover 29% 46% 25% International brands National brands Local brands 27 February 2014 2013 Results presentation
Slide 23: Contracts in Italy and Romania
Contracts in Italy and Romania 23 EXPIRY DATE OF CONTRACTS OF HYPERMARKETS EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. Of contracts) MALLS IN ITALY ( % of value) Nr. 19 120% 100.0% 120% 100.0% 100% 100% 80% Nr. 546 80% Nr. 140 53.7% 55.4% 60% 60% Nr. 212 40% 40% Nr. 118 17
Slide 24: Commercial strategies: Italy (1/2)
24 Commercial strategies: Italy (1/2) Ability to understand and react to the ongoing changes in consumption models: new food anchor needs, development of temporary shops, introduction of traditional shops selling typical and food design products, a new second-hand area (both in clothing and in ele
Slide 25: Commercial strategies: Italy (2/2)
25 Commercial strategies: Italy (2/2) Merchandising mix not only stores dedicated to shopping but also personal services (such as medical and dental clinics, fitness centers, spa). This also serves as a balance to the new shopping trends resulting from the spread of e-commerce. Sports event -Esp S
Slide 26: E-commerce
26 E-commerce Change in e-commerce sales by country 2012- Italy is an emerging market in e-commerce even 2016 if something is changing. 2012 2013 2014 2015 2016 Italy 17.0% 16.8% 15.3% 13.5% 12.0% 2013 online sales in Italy: +17% (total estimated UK 13.7% 13.7% 12.2% 10.2% 8.2% US 14.2% 13.4% 11
Slide 27: IGD and new technologies
27 IGD and new technologies LEGEND: CURRENT SITUATION OF NEW TECHNOLOGIES IN IGD 1. Idea 2. Project 3. Implementation 4. Execution Shopping Social network Mobile centers websites applications - All shopping centers have a - 66% of the shopping centers - After completion of the survey, website and wi
Slide 28: Sustainability
28 Sustainability MARCH: ISO14001 environmental certification obtained for 4 shopping centers and for the headquarters APRIL: 3° Sustainability Report presented APRIL: Specialized training on sustainability carried out to 2/3 of IGD’s employees (to be extended to all in 2014) JULY/DECEMBER:
Slide 29: Portfolio
FY 2009 RESULTS PORTFOLIO Bologna November 11, 2011
Slide 30: Italian and Romanian Portfolio
30 Italian and Romanian Portfolio 51 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 19 shopping malls and retail parks 15 SHOPPING CENTERS + 1 OFFICE 19 hypermarkets and supermarkets BUILDING IN 13 DIFFERENT ROMANIAN 1 city center 4 plots of land for development MEDIUM SIZED CITIES 1 property held for tra
Slide 31: Italian and Romanian portfolio
31 Italian and Romanian portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO PORTFOLIO BREAKDOWN BY MARKET VALUE GEOGRAPHIC AREA IN ITALY (mkt value) 1.5% 0.3% 9.2% 6.0% 21.6% 28.8% 2.8% 35.5% 28.1% 51.4% 14.7% NORTH EAST NORTH WEST CENTRE SOUTH+ISLANDS HYPERMARKETS/SUPERMARKETS MALLS LANDS OTHER PORTA A
Slide 32: Breakdown of portfolio appraisals
32 Breakdown of portfolio appraisals PROPERTY CATEGORY % PORTFOLIO APPRAISER 13.37% CBRE Hypermarkets and supermarkets 15.20% REAG 28.83% CBRE Shopping malls and retail parks 23.03% REAG City Center 1.47% CBRE 0.33% CBRE Other 0.02% REAG Porta a Mare 6.04% CBRE 1.73% CBRE Development and lands 0.66%
Slide 33: Market Value evolution 1/2
33 Market Value evolution 1/2 € mn Mkt Value Mkt Value 31/12/2012 31/12/2013 LFL Italian portfolio 1,548.95 1,522.49 (malls+hypermarkets+other) City Center Project V. Rizzoli 27.70 27.80 Total income related portfolio in ITALY 1,576.65 1,550.29 -1.67% Total income related portfolio in ROMANIA 177.90
Slide 34: Market Value evolution 2/2
34 Market Value evolution 2/2 ITALIAN Portfolio Change in income related LFL FV (hypermarekts, malls, city center and others): -1.67% of which: • HYPERMARKETS: +1.11% (FV of hypermarket asset class suffered a decrease of about -0.7 € mn due to the reduction of inflation rate hypothesis used in DCF,
Slide 35: Portfolio characteristics
35 Portfolio characteristics ITALY ROMANIA HYPERMARKETS MALLS AVERAGE MALLS Financial occupancy 100.0% 96.2% 97.4% 84.5% Market value as at 31 December 2013 €mn 544.39 971.52 170.00 Compound average yield of total portfolio 6.63% 6.52% 6.44% (gross initial yield) The profit return on HYPERMARKETS (6
Slide 36: Porta a Mare evolution: work in sub area Piazza Mazzini completed
Porta a Mare evolution: 36 work in sub area Piazza Mazzini completed Retail and Residential Palazzo Orlando (Offices) Work in Piazza Mazzini completed in the second half of 2013 Breakdown of Piazza Mazzini areas (19,208 m² ) Retail area: work in progress for commercialization. Expected opening date
Slide 37: 2013 investments/capex
37 2013 investments/capex 2013 main investments were: Centro d’Abruzzo Restyling and Extension Inside Restyling Extension Mondovì and La Torre Fit out Creation of a new medium sized area in Mondovì Tiburtino shopping center remodeling Creation of a new medium sized area outside Retail Park Chioggia
Slide 38: Focus on Romania
NEXT OPENINGS Spring 2014 – Galati Spring 2014 – Ramnicu Valcea 38 Focus on Romania Autumn 2014 – Piatra neamt Spring 2015 - Tulcea The renovation of the portfolio continues Total investments activated in 2013 equal to about € 4.7 mn Total investments expected in 2014 about € 4.1 mn before shopping
Slide 39: NNAV
39 NNAV NNAV PS (€) 2.31 NNAV FY12 FY13 Market value ow ned properties, lands, direct development initiatives and assets held for trading a 1,906.56 1,891.28 2.23 Investment properties, lands and development initiatives, assets held for trading b 1,905.78 1,890.86 Potential capital gain c=a-b 0.78 0
Slide 40: Financial Structure
FY 2009 RESULTS FINANCIAL STRUCTURE Bologna November 11, 2011
Slide 41: Financial Highlights 1/2
41 Financial Highlights 1/2 31/12/2012 31/12/2013 GEARING RATIO 1.38 1.38 LOAN TO VALUE 57.2% 57.4% COST OF DEBT 3.91% 3.94 % INTEREST COVER RATIO 2.00X 1.91X AVERAGE LENGTH OF LONG TERM DEBT (Bond excluded) 10.2 years 8.6 years MID/LONG TERM DEBT RATE 56.3% 75.3% 27 February 2014 2013 Results prese
Slide 42: Financial Highlights 2/2
42 Financial Highlights 2/2 31/12/2012 31/12/2013 HEDGING ON LONG TERM DEBT + BOND 76.1% 79.3% HEDGING ON LONG TERM DEBT 68.1% 75.3% BANKING CONFIDENCE € 273.5 mn € 273.5 mn BANKING CONFIDENCE AVAILABLE € 93.8 mn € 86.6 mn MKT VALUE OF MORTGAGE FREE ASSETS7LANDS € 551.3 mn € 347.7 mn 27 February 201
Slide 43: Financial structure
43 Financial structure NET DEBT COMPOSITION (€ 000) 4,779 8,819 814,681 1,084,887 86,661 187,585 Short term debt Current share of long term Long term debt Potential mall and business Cash&cash equivalents Net debt debt division fees DEBT MATURITY (€ 000) 200,000,000 180,000,000 160,000,000 140,000,0
Slide 44: Net Debt
44 Net Debt NET DEBT CHANGE (€ 000) 4,998 22,277 5,128 34,810 578 17,337 1,089,631 1,084,887 Net debt 31/12/12 Profit for the period Depreciation/ Devaluation/ Change in NWC (net PM Change in other non- Change in fixed/ non-fixed Change in shareholders' Net debt 31/12/13 attributable to Parent Chang
Slide 45: Reclassified balance sheet
45 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) FY12 FY13 D D% Fixed assets 1,889,979 1,879,129 -10,850 -0.6% NWC 75,713 71,271 -4,442 -5.9% Other long term liabilities -68,520 -68,519 0 0.0% TOTAL USE OF FUNDS 1,897,172 1,881,881 -15,291 -0.8% Net debt 1,089,631 1,084,887 -4,744 -0.4% Ne
Slide 46: Dividend of € 0.065 per share
46 Dividend The IGD Board of Directors will ask the shareholders at the Annual General Meeting on 15 April 2014 to approve the distribution of a: dividend of € 0.065 per share DIVIDEND (€) DIVIDEND YIELD (%) on price at year-end 0.070 8.5% 0.065 7.5% 2012 2013 2012 2013 A Dividend yield of 5.8% on t
Slide 47: Dividend Reinvestment Option
47 Dividend Reinvestment Option The Board of Directors at the Annual General Meeting to be held on 15 April 2014 will propose a share capital increase without pre-emption rights, to be offered to IGD Shareholders entitled to receive the 2013 dividend. Those who decide to agree to the capital increas
Slide 48: Dividend Reinvestment Option: steps
48 Dividend Reinvestment Option: steps Who can participate Shareholders that own IGD shares on the trading day prior to the 2013 going-ex dividend The total offer will amount to 80% of the proposed 2013 dividend. How much Each shareholder may reinvest an amount not exceeding 80% of their gross divid
Slide 49: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it