Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Non-Deal Roadshow (May 2020)
61 slides from Immobiliare Grande Distribuzione SIIQ's roadshow presentation, May 2020
Slide 1: Road Show presentation
Road Show presentation May 2020
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with The securities referred
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 4 FY2019 + 1Q2020 Financial results Pag. 36 2 Operating data Pag. 10 5 Sustainability Pag. 47 3 Recent events and impact of Covid-19 on Group’s activities Pag. 21 6 Appendix Pag. 52 3 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a Glance
IGD at a Glance IGD is the leading Italian listed developer and operator of Italian quality retail real estate properties: develops and manages shopping centers across the country and has also a presence in retail distribution in Romania IGD #1 Italian Retail SIIQ (REIT) - Portfolio Snapshot 5.4% EP
Slide 6: IGD Business Model Explained
IGD Business Model Explained A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well Diversified Across Italy 39.2k GDP Per-capita 2 Strategic Positioning 3 Strong Food Anchor (COOP) 4 Strong Track-Record of Direct Management €34.6k – €42.6k 1 30.9k 35.2k 38.
Slide 7: Our shareholding structure
Our shareholding structure Listed on the Italian Stock Exchange in the STAR segment (“high requirements”) Freefloat equal to 45.02%, majority of institutional investors, of which⁽1⁾ Italy Number of shares: 110,341,903 20% Mediolanum, EUROPA PLUS (GWM) Generali, Eurizon 4,20% UK & Ireland 25% Unicoop
Slide 8: Key data of the entire Coop world and of our two main Shareholders
Key data of the entire Coop world and of our two main Shareholders 7 Legal entities throughout Italy Coop world key data*: 17 Regions covered by Coop Turnover ~14.7 bn € (13.6% of italian large scale retail) No. of stores: ~1,200 Employees ~52,000 Members ~ 6.7 million people Coop Alleanza 3.0 Unico
Slide 9: Our Top Management
Our Top Management Elio Gasperoni (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Chairman of IGD's Board since April 2017 • Appointed in May 2009 • Vice Chairman of Coop Alleanza • Board member at IGD since 2006 • Board member of IGD since 2015 • More than 20 years of experience
Slide 10: Operating Data
Ri. * LUMBERJACK Ea . : a =
Slide 11: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets Centro Sarca North Sesto S.Giovanni Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro (MI) Ravenna Faenza (RA) Bologna Bologna Forlì IGD - Main Centro Leonardo Conè Centro Piave San Donà di Clodì Centro Nova Villanova di Mondovicino Sc&Rp Imola (BO) Coneg
Slide 12: Located in the most attractive Italian regions
Located in the most attractive Italian regions >80% of value of italian portfolio ITALY- 60 properties in 12 regions concentrate in Northern & Central Italy GDP Per-capita (93.7% of total IGD market Value) 39.2k FY2019 35.2k 30.9k € 2,381.4 38.0k 33.1k 30.3k Romania 35.3k 6.3% 31.6k S+l 30.4k 6 26.8
Slide 13: Main characteristic of our portfolio
Main characteristic of our portfolio € 2,381.4mn other 3.9% Total GLA (Ita) 6 5 5 , 0 0 0 m² (market share c. 4%) (91.99 €mn) Romania 6.3% (150.29 €mn) A young portfolio : on average 8 years old (since opening or last restyling) SMALL 11.3% Full ownership of 16 Shopping centres (mall+hyper) in Italy
Slide 14: Strong repositioning of the Romanian Portfolio
Strong repositioning of the Romanian Portfolio 1 5 9 13 2 6 10 14 1 7 2 Bistrita Piatra Neamt 8 Cluj-Napoca Vaslui 7 11 3 9 3 Turda Galati 14 Key Strategical points 4 10 1 13 12 Ramnicu Valcea 1 Buzau Braila Tulcea • Further capex Ploiesti for safety, maintenance 5 4 8 12 and commercial Slatina Bucu
Slide 15: Market value as at 31/12/2019 (1/2)
Market value as at 31/12/2019 (1/2) ITALY ROMANIA € 2,412.2mn other 4.1% 19.3 (97.94 €mn) -50.9 € 2,381.4mn Romania 6.4% 6.7 -1.3 2.1 -6.6 other 3.9% (154.79 €mn) (91.99 €mn) Romania 6.3% (150.29 €mn) The change FV is due for approx. 50% to assumptions Malls 65.2% DCF (rates, inflation, erv) and (1,
Slide 16: Market value as at 31/12/2019 (2/2)
Market value as at 31/12/2019 (2/2) Gross Initial EPRA Net Initial EPRA Net Initial FY 2018 FY 2019 Δ% Yield Yield Yield topped up Malls Italy 1,573.79 1,555.50 (-1.16%) 6.52% 5.4% 5.5% Hypermarkets Italy 585.63 583.62 (-0.34%) 6.06% Romania 154.79 150.29 (-2.91%) 7.09% 6.1% 6.3% Porta a Mare + deve
Slide 17: NNNAV
NNNAV € per share FY 2018 FY 2019 Δ% NAV 11.77 11.40 -3.1% NNNAV 11.45 10.92 -4.6% € -0.50 € 0.75 € -0.66 € -0.11 € 11.45 € 10.92 EPRA NNNAV 31 Dec Dividends Change in debt fair value FFO Asset fair value EPRA NNNAV 31 Dec 2018 and other 2019 17
Slide 18: Focus on trends Italy as at 31/03/2020
Focus on trends Italy as at 3 1 / 0 3 / 2 0 2 0 Tenant sales and footfalls progressive trends 1Q 2019 2Q 3Q 4Q Jan-Feb 2020 2020 data are -0.4% +0.6% +0.5% +1.3% +2.0% impacted by the Tenant sales progressive spread of the Covid-19 -6.0% and the restrictive +0.7% -1.6% -1.3% +1.0% measures put in fo
Slide 19: Contracts in Italy and Romania at 31/03/2020
Contracts in Italy and Romania at 31/03/2020 N 188 N 220 N 221 N 828 Average residual maturity: 4.17years Malls Totale contracts: 1,457 of which 30 renewals 65.1% Italy with the same tenant and 35 signed with a new tenant 10.6% 12.9% 11.5% Rotation Rate 2.4% (% new contracts on tot. contracts) 2020
Slide 20: Key tenants as at 31/03/2020
Key tenants as at 31/03/2020 Product Turnover Product Turnover TOP 10 Tenant Contracts TOP 10 Tenant Contracts category impact category impact clothing 2.7% 13 supermarket 10.2% 11 clothing 2.4% 10 clothing 7.2% 6 clothing 2.0% 10 clothing 4.2% 11 shoes 2.0% 8 Top 10 clothing 4.2% 8 Top 10 Tenants T
Slide 21: Recent events and impact of Covid-19 on Group's activities
Titolo titolo 3 Recent events and impact of Covid-19 on Group’s activities note 37
Slide 22: 2020 had started well...
2020 had started well... January +1.4% +1.7% Cumulative data Italian malls footfalls tenant sales February +1.0% +2.0% Cumulative data Italian malls footfalls tenant sales …but at the end of February the Covid-19 started to spread, firstly in some regions of Northern Italy and then throughout Italy
Slide 23: Evolution of the restrictive measures
Evolution of the restrictive measures PERIOD MAIN PROVISIONS ADOPTED 23-24 Feb – Restrictions in Milan (Sesto CentroSarca: early closure of the mall + only hypermarket San Giovanni) opened 25Feb – 07Mar – Restrictions in Cinemas closed; malls opened until 6pm (closed during the Lombardy (3 shopping
Slide 24: Shopping centers activities during phase 1 and phase 2
Shopping centers activities during phase 1 and phase 2 Uniqueness of IGD’s portfolio: Centers remained open and Shopping centers mainly near urban centers, with operational with IGD direct strong food anchors supervision IN ITALY Hypermarkets Other activities (only (operational**) potentially operat
Slide 25: Shopping centers activities during phase 1 and phase 2
Shopping centers activities during phase 1 and phase 2 PHASE 1 PHASE 2 Negative trends in both footfalls and sales due to material difficulties also for customers Italian (travel restrictions, reduction in hours of malls operations and staggered entries) The restrictive measures to retail activities
Slide 26: The principles followed
The principles followed IGD immediately implemented a series of measures consistent with its sustainability policies relative to all its stakeholders 26
Slide 27: Actions taken toward tenants in Italy and Romania
1. Actions taken toward tenants in Italy and Romania • Support initiatives activated aimed at revising the payment schedules for 2Q 2020 and monthly invoicing of rents. • Postponed to 30 June 2020 the payment date of the April invoice (rent and condomium fees); the payment date of May invoice postpo
Slide 28: Actions taken in the shopping centers
2. Actions taken in the shopping centers Health and Other safety acitvities • Ad-hoc information to visitors concerning the • Work sites secured correct behaviour to be followed to guarantee safety («coronavirus» decalogue) • Use of social media channels to give information about the hours of operat
Slide 29: Actions taken toward company personnel
3. Actions taken toward company personnel Health and HR Actions safety • Definiton of the Covid-19 Procedure (shared Register) • Smart working for headquarter personnel • Increase in daily cleaning and extraordinary sanitization of offices and filters • Smart working for the shopping centers staff,
Slide 30: Optimization of 2020 cash flow
4. Optimization of 2020 cash flow Several activities to optimize cash outflows by: Revising, reducing Reduction of non- Social safety nets and/or eliminating essential operating provided for the several capex and expenses resulting in employees by the investments that can be saving during the year g
Slide 31: Actions taken on financing
5. Actions taken on financing The company is evaluating all options to further reinforce available liquidity: Renewal of the Request of a €38mn committed credit lines, bank loan provided for €60 mn by 2 leading credit under the «Liquidity institutions with maturity Decree», namely a low between the
Slide 32: Liquidity
Liquidity STRONG LIQUIDITY AS Cash outflows Ability to cope with STARTING POINT reduction different operational Cash on hand €130 mn scenarios for the next Further potential 12/18 months Credit lines €221 mn* forms of liquidity *of which committed for €60mn with maturity between the end of 2020 and
Slide 33: Rating changes
Rating changes IGD maintained a direct and continuos contact with all the rating agencies which, based on their estimates of the impact that the current situation will have, have changed their rating as follows: Data Rating Outlook Downgrade to 03/23/2020 Negative BB+ BBB- Rating watch 04/08/2020 Ma
Slide 34: How to deal with the emergency exit phase
How to deal with the emergenty exit phase Consistent with the national guidelinees proposed by the CNCC, IGD will continue to implement the measures already adopted in order to promote safe traffic flows in the shopping centers (thermoscanners, cleaning and sanitization, masks and staggered entries)
Slide 35: Further possible evolution
Further possible evolution IGD’s strategic guidelines already included an operational plan to continuously update and adapt the offer in the shopping centers to the new visitors needs. The health emergency will lead to an acceleration in the implementation in terms of: Re-thinking of food Greater di
Slide 36: FY 2019 + 1Q2020 Financial Results
4 FY 2019 + 1Q2020 Financial Results
Slide 37: FY 2019 and 1Q2020 main results
FY 2019 and 1Q2020 main results 2018 2019 1Q2019 1Q2020 REVENUES Rental Income €151.8 mn €155.3 mn +2.3% €38.8mn €38.4 mn -0.9% Net Rental Income €124.0 mn €136.6mn +10.1% €34.2mn €33.0 mn -3.3% EBITDA EBITDA (Core Business ) €113.7 mn €125.2 mn +10.1% €31.2 mn €30.3 mn -2.8% EBITDA Margin (Core Bus
Slide 38: Rental Income (€mn)
Rental Income (€mn) Total LFL -0.4% -0.4 €mn 1Q2020 -0.7% +3.5% Breakdown of rental -0.9% income by type of asset Decrease in malls 6.6% 0.4% (-0.8%): mainly due to lower -0.3 -0.2 0.1 variable and temporary revenues 25.2% Slight decrease in hypermarkets (-0.4%)* 38.8 38.4 67.9% Inflation impa
Slide 39: Net rental income (€mn)
Net rental income (€mn) Italy -1.2€mn -3.6% -3.3% Romania 1Q2020 +1.2% -0.4 -0.8 34.2 33.0 Net rental income 2019 Change in rental income Change in rental costs ** Net rental income 2020 Italy FY2019 +€2.3 mn +1.9% Romania +€12.6 mn +1.8% +10.1% +2.1% -1,3 10.3 3.5 136.6 124.0 126.3 Net rental incom
Slide 40: Financial management
1.5 0.7 Financial management 1Q2020 Total Totale Totale 6.8 8, 1 €mn 9, 0 €mn Total € 9.0mn € 8.1mn 1.5 0.4 0.7 -10.2% Not considering negative carry, 1Q 2020 7.6 IFRS16 and non-recurring charges 6.8 Negative Carry the Adj. Financial Management IFRS16 and Non-recurring charges improves by €0.8 mn (-
Slide 41: Funds From Operations (FFO) keep growing
Founds From Operations (FFO) keep growing -€0.0mn +0.1% 1Q2020 -0.7 0.8 0.0 20.8 20.8 FFO_2019 Change in core business Change in Financial Change in taxes and other FFO_2020 Ebitda Adj* management Adj** FY 2019 +€3.6mn +4.5% 1.7 1.5 0.4 79.7 83.3 FFO_2018 Change in core business Adj. Ebitda* ** Chan
Slide 42: Financial Structure 1/2
Financial Structure 1/2 31/12/2019 31/03/2020 LTV 47.6% 47.2% ICR 3.8X* 4.2X* Average cost of 2.35% 2.30% debt Net Debt €1,153.2 mn** Debt breakdown*** MARKET SECURED 56.1% 28.0% BANKING SYSTEM L.T. 43.9% 1,227.40 S.T. UNSECURED 55.88 72.0% CASH -130.09 *Excluding the effects of the last bond issue;
Slide 43: Financial structure 2/2
Financial structure 2/2 2019 main achievements: 31/12/2019 31/03/2020 Partial repayment of two bonds Uncommitted for an amount of €237.6€ mn credit lines granted and 161€ mn 161€ mn available New bond issuance €400mn at a Committed credit lines 60€ mn 60€ mn record condition for IGD (2.125% granted
Slide 44: Financial Covenants Eurobond
Financial Covenants Eurobond 31/12/2017 31/12/2018 31/12/2019 Threshold 1 Total Debt / Total Asset 46.9% 45.3% 48.7% < 60% Secured Debt / Total Asset 14.1% 15.0% 12.6% < 45% Unencumbered Total Asset / Unsecured Debt 2.0x 2.0x 1.6x > 1.25x Interest Cover 3.3x 3.8x 3.5x > 1.7x 1 According to terms and
Slide 45: Review of the proposed dividend
Review of the proposed dividend The Board of Directors, on a conservative basis, and in order to maintain a solid finacial profile, decided to revise the dividend to be proposed during the Annual General Meeting: from €0.50 per share to €0.228152 per share (minimum mandatory dividend provided for in
Slide 46: Outlook
Outlook At this time, given the lack of visibility as to how the situation will unfold, the support measures that will be adopted by the government and discussion with retailers, we believe it is still premature to provide new indications on the FFO guidance for the current year * *First guidance co
Slide 47: Sustainability
5 Sustainability
Slide 48: 10° year of Sustainability Report
10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved • Zero CO2 Emissions of Italian portfolio by 2030 -7.1% ENERGY CONSUMPTION LIKE FOR LIKE 2019 VS • BREEAM Certification for 80% of the Italian portfolio by 2018 2030 1 MORE PHOTOVOLTAIC SYSTEM (8 in total)
Slide 49: 10° year of Sustainability Report
10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved CORPORATE WELFARE FULLY • Training: focus on the soft skills and the importance of OPERATIONAL the interfunctional work group • New work environmental survey between 2020 and 2021 CONTINUATION OF 3 CORPORAT
Slide 50: 10° year of Sustainability Report
10° year of Sustainability Report Actions carried out/ Priority Main targets Results achieved 716 EVENTS HELD IN THE CENTERS • Sustainable enhancement of the portfolio: restyling (13.1% OF WHICH WERE SOCIAL- to be carried out with improvements in ENVIRONMENTAL EVENTS) environmental impact in 10 shop
Slide 51: UNI ISO37001 Anti-Bribery certification obtained
UNI ISO37001 Anti-Bribery certification obtained 20 April 2020 UNI ISO 37001:2016 Certification «Anti Bribery Management System» The certification represents the international standard for anti-corruption management system. The result achieved is consistent with the values expressed in the MOG*, the
Slide 52: Appendix
Titolo titolo 6 Appendix note 65
Slide 53: Consolidated Income Statement as at 31/03/2020
Consolidated Income Statement as at 31/03/2020 (a) (b) Δ GROUP CONSOLIDATED 1Q_CONS_2019 1Q_CONS_2020 (b)/(a) Revenues from freehold rental activities 35.6 35.3 -0.8% Revenues from leasehold rental activities 3.1 3.1 -2.7% Total income from rental activities 38.8 38.4 -0.9% Rents and payable leases
Slide 54: Funds From Operations as at 31/03/2020 (FFO)
Funds From Operations as at 31/03/2020 (FFO) €20.8 mn +0.1% Funds from Operations 1Q_2020 1Q_2019 Δ vs 1Q_2019 Δ% Core business EBITDA 30,330 31,194 864 -2.8% IFRS16 Adjustments (Payable leases) -2,576 -2,539 37 1.5% Financial Management Adj. -8,372 -7,624 749 9.8% Extraordinary Management Adj. 0 0
Slide 55: Further financial highlights as at 31/03/2020
Further financial highlights as at 31/03/2020 31/12/2019 31/03/2020 Gearing ratio 0.95X 0.93X Average lenght of long-term debt 4.1 years 3.9 years Hedging on long-term debt + bond 94.8% 94.9% Share of M/L term debt 94.3% 94.4% Unencumbered assets 1,480.0 € mn 1,480.0 € mn *Some banks allowed us to t
Slide 56: Re-classified Balance Sheet as at 31/03/2020
Re-classified Balance Sheet as at 31/03/2020 Sources - Uses of funds (€/000) 31/03/2020 31/12/2019 Δ Δ% Fixed assets 2,362,214 2,365,214 3,000 0.1% Assets under construction 43,627 40,827 -2,800 -6.4% Other non-current assets 21,721 21,845 124 0.6% Other non-current liabilities -29,313 -28,998 315 -
Slide 57: Gradual closures ordered by the Government since late February 1/2
Gradual closures ordered by the Government and local authorities since late February 1/2 Day Note Sunday 23.02.2020 - Centro Sarca closed at 3pm Monday 24.02.2020 - Centro Sarca: only hypermarket is open Shopping centers in Lombardy: - Cinemas always closed From Tuesday 25.02.2020 to Friday - Shoppi
Slide 58: Gradual closures ordered by the Government since late February 2/2
Gradual closures ordered by the Government and local authorities since late February 2/2 Day Note In all shopping centers: - Cinemas always closed - Shopping malls: opened only the stores according to Sunday 15.03.2020 DPCM 11 March (medium surfaces excluded) - Hypermarkets opened (Afragola and Quar
Slide 59: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls 27 shopping malls 25 hypermarkets Tenants of hypermarkets Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0 Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0 Porto Grande - Porto d'Ascoli (AP) ESP Porto Grande - Porto d'Ascol
Slide 60: Governance Directors and Committees
Governance Directors and Committees IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008 Chairman CEO Executive Elio Gasperoni Claudio Albertini Vice Chairman Ro
Slide 61: Investor relations contacts
Raffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator T. +39 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 509260 f