Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — 9M 2020 Earnings Presentation
35 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Nov 5, 2020
Slide 1: 9M 2020 Result presentation
9M 2020 Result presentation 5 November 2020
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation to subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect The securities r
Slide 3: Economic Highlights
Economic Highlights Rental Income Net Rental Income €109.0 mn €89.7 mn -6.1% -12.2% Core business Ebitda Funds From Operation (FFO) €82.8 mn €53.4 mn -12.3% -15.0% Include Covid-19 one-off effects (no further impacts on subsequent years) 3
Slide 4: Assets' resilience proved by main indicators
Assets’ resilience proved by main indicators… Italian portfolio figures Financial occupancy 95.7% 3Q20 vs 3Q19 -16.4% Footfalls Sept20 vs Sept19 -13,3% 3Q20 vs 3Q19 -4.9% Tenant sales Sept20 vs Sept19 -2.9% Negotiations with tenants c. 1.7 months of already closed* >90% temporary reductions granted
Slide 5: …but we keep high attention to the evolution of the scenario
…but we keep high attention to the evolution of the scenario… Due to the surge in the pandemic also in Italy over the past few weeks, some regions (Lombardy, Piedmont, Sicily…) decided to close shopping centers during the weekends starting from 23/10. On 25/10 the Italian Government issued a first p
Slide 6: …including in light of the latest Decree
…including in light of the latest Decree New measures effective from 6/11 to 3/12 MAIN NATIONAL DEGREE MAIN REGIONAL RESTRICTIONS OF RISK RESTRICTIONS 1 3 2 • «CURFEW» FROM 10:OO • All retail businesses closed 2 (with the exception of categories PM THROUGH 5:00 AM 1 8 deemed essential*) • SHOPPING C
Slide 7: Operating performances
1 Operating performances
Slide 8: Operating performances Italy
Operating performances Italy Negotiations with tenants to manage March-May 2020 lockdown period being finalized 67.8% 26.4% MALLS of rental income HYPER of rental income Negotiations Leasing Mgt • Always operating Tenants 711 Contracts • Enhance the shopping centers service expiring in 223 role in t
Slide 9: Operating performances Romania
Operating performances Romania Negotiations with tenants to manage March-May 2020 lockdown period concluded 5.4% MALLS of rental income Negotiations Leasing Mgt Financial Occupancy 93.8% Tenants 379 Contracts expiring in 94 Contracts 547 2020 Post-lockdown Closed Renewed 68% (upside 0.4%) footfalls*
Slide 10: Rent collection Italy & Romania
Rent collection Italy&Romania 96% 83% 81% 64% 83% 81% 64% 22% 17% 14% 12% 8% 4% FIRST QUARTER SECOND QUARTER THIRD QUARTER JANUARY TO SEPTEMBER 22% 17% Collected Deferred Non-paid/Written-off ITALY 14% ITALY 12% Tenant default in the 9months: 8 June payment due date 10/11 8% tenants % ROMANIA Collec
Slide 11: New ways of living shopping centers
New ways of living shopping centers Consumers are adapting their habits: More aimed visits… September footfalls -13.3% …with an increase in the average €26 (+€3.2; +14.1% Sept ‘20 vs Sept ‘19) ticket… …ending in a very slight reduction of September tenant sales -2.9% purchases 11
Slide 12: Tenants' sales Italy
Tenants’ sales Italy Tenants’ sales: -2.9% (Sept ‘20 vs Sept ‘19) -4.9% (3Q20 vs 3Q19) Product categories: main trends (Sept 20 vs Sept 19) PARTICULARLY IMPROVING CATEGORIES STRUGGLING CATEGORIES Restaurants with Electronics +6.9% table service -28.4% Household goods +14.1% Shoes -8.6%* *It has to b
Slide 13: Footfalls
Footfalls Weekly footfalls 2020/2019 18-24 May 28 Sept - 4 Oct 12 mar – 17 mag Lockdown Δ -6.3% 18-24 May/ 28 Sept-4 Oct -31.4% +34.0% -17.7% Footfalls* CAGR Sept. 20 vs Sept. 19: +1.9% -13.3% Weekly change Progressive change -31.4% Footfalls per time-slot 2020/2019 9-12 12-14 14-19 19-23 00% -3.2%
Slide 14: Retailers continue to open new shops in our assets
Retailers continue to open new shops in our assets ITALY ROMANIA 21/7 –Frwrd (clothing) 24/7 – Chiccho (baby clothes) 2/8 – Wycon cosmetics 30/06 – KIK 2/07 – KIK (clothing) Le Porte di Napoli (Na) La Torre (Pa) Centro Nova (Bo) (clothing) Cluj Slatina 28/8- JD Store (sportswear) 17/9– Il mio barbie
Slide 15: New promotional activities
New promotional activities New contest «Voglia di vincere» in 27 shopping centers Jackpot >€630k with numerous immediate prizes (15 winners per hour in each center) Final drawing With prizes in line with IGD mission concerning green and sustainability (e-cars, e-bike,…) Great result 880,000 games an
Slide 16: New Code of Conduct
New Code of Conduct IGD’s Code of 2006 – Code of Conduct’s first version Conduct 2010 – first review 2020 – second review, considering the update of the Organizational, Management and Control Model, the new Code of Conduct of Coop Alleanza 3.0 and new internal procedures/policies (anti- bribery, pri
Slide 17: Sustainability breaking news
Sustainability breaking news • Adhesion to United Nations Global Compact, the most important international standard concerning human rights, labor, environmental sustainability as well as the fight against corruption • For the sixth year in a row, IGD received the “EPRA sBPR Gold Award” (sustainabil
Slide 18: Financial Results at September 2020
2 Financial Results at 30 September 2020
Slide 19: Rental Income (€mn)
Rental Income (€mn) -€3.4mn -€11.4mn -2.9% -9.9% -2.4 -0.6 -0.4 -8.1 116.0 112.7* 104.6 Rental Income Change in Like-for- Non like-for-like Italy Change in Like-for- Rental Income COVID one-off net Rental Income net of 9M2019 like Italy like Romania 9M2020 adj impact estimate COVID impact 9M2020 Mal
Slide 20: Net rental Income (€mn)
Net rental Income (€mn) Italy -€4.4mn -11.4% -€12.5mn -4.3% Romania -12.2% -24.5% -3.4 -1.0 -8.1 * 102.2 97.7 89.7 Net rental income Change in rental income Change in rental costs Net rental income COVID one-off net Net rental income 9M2019 9M2020 adj impact estimate 9M2020 It is a one-off impact on
Slide 21: Core business EBITDA (€mn)
Core business EBITDA (€mn) -€3.5mn -€11.6mn -3.7% -12.3% -4.4 0.2 0.7 -8.1* Decrease in G&A expenses (-8.2%) 94.4 thanks to the Group 90.8 cost cutting activities 82.8 Ebitda 9M2019 Net rental income Net service income Change in G&A expenses Ebitda 9M2020 adj COVID one-off net impact Ebitda 9M2020 e
Slide 22: Financial management (€mn)
Financial management (€mn) Figures, net of accounting items and negative carry related to the last bond issued (financial management ADJ*) are improving (-6.0% vs 30 September 2019) Total Total € 24.7mn Totale € 27.0mn Totale 24,7€mn 27,0€mn -6.0% Negative carry €400mn 3.1 bond issue 1.4 2.0 IFRS16
Slide 23: Financial structure
Financial structure 30/09/2020 30/09/2020 LTV Uncommitted credit lines 151€ mn 49.3% available (adj. IFRS16 c. 48.3%) Committed credit lines ICR 3.6X* granted and available 60€ mn Average cost of Unencumbered 2.30% assets 1,471.9€ mn debt NET DEBT DEBT BREAKDOWN*** €1,173.5 mn** MARKET SECURED 57.3%
Slide 24: Update on financial management
Update on finacial management Latest news Debt maturity Liquidity at 30/09 €87mn €100mn: 2.25% 7y €400mn: 2.125% 5y 16/10 (post 3Q) €36,3mn loan granted by Banca Monte dei Paschi di Siena guarateed by 2.1% SACE Spa (6 years, cost including 5y* government guarantee in line 2.65% 500 2.5% 7y with the
Slide 25: Funds From Operations (FFO)
Funds From Operations (FFO) -€1.4mn -€9.5mn -2.2% -15.0% -3.5 1.4 0.1 -8.1 62.9 61.5 53.4 FFO_9M2019 Change in core Change in financial Change in taxes and FFO_9M2020 adj COVID one-off net FFO_9M2020 business Ebitda Adj* management Adj** other impact estimate *Change Ebitda Adj: equal to core busine
Slide 26: Outlook
3 Outlook
Slide 27: Final remarks and Outlook 2020
Final remarks and Outlook 2020 The FFO guidance, revised and disclosed last 6 August, was based on the estimated impact of the health crisis at that moment and did not take into account the repercussions that worsening health and economic conditions could have for the business. The positive operatin
Slide 28: Attachments
4 Attachments 28
Slide 29: Consolidated Income Statement
Consolidated Income Statement (a) (b) Δ GROUP CONSOLIDATED 9M_CONS_2019 9M_CONS_2020 (b)/(a) Revenues from freehold rental activities 106.7 100.2 -6.0% Revenues from leasehold rental activities 9.4 8.7 -6.7% Total revenues from rental activities 116.0 109.0 -6.1% Rents and payable leases -0.1 0.0 -9
Slide 30: Contracts in Italy and Romania at 30/09/2020
Contracts in Italy and Romania at 30/09/2020 N 110 N 195 N 213 N 925 Average residual maturity: 4.1years Malls Total contracts: 1,443 of which 76 renewals 70.2% Italy with the same tenant 54 signed with a new tenant 11.8% 11.1% 6.9% Rotation Rate 3.7% (% new contracts on tot. contracts) 2020 2021 20
Slide 31: Key tenants
Key tenants Product Turnover Product Turnover TOP 10 Tenant Contracts TOP 10 Tenant Contracts category impact category impact clothing 3.0% 14 supermarket 10.6% 11 clothing 2.5% 10 clothing 7.2% 6 clothing 2.1% 10 clothing 5.0% 10 Top 10 electronics 2.0% 8 Top 10 clothing 4.4% 11 Tenants Tenants sho
Slide 32: Funds From Operations (FFO)
Funds From Operations (FFO) * Funds from Operations 9M_CONS_2019 9M_CONS_2020 Δ Δ% Core business EBITDA 94.4 82.8 -11.6 -12.3% IFRS16 Adjustments (payable leases) -7.6 -6.9 0.7 -9.6% Financial management adj. -23.3 -25.0 -1.7 7.5% Extraordinary management adj. 0.0 0.0 0.0 n.a. Current taxes for the
Slide 33: Further financial highlights
Further financial highlights 30/06/2020 30/09/2020 Gearing ratio 1.0X 1.0X (adj. IFRS16 c. 0.96X) Average lenght of long-term debt 3.6 years 3.4 years Hedging on long-term debt + bond 95.1% 95.3% Share of M/L debt 89.3% 88.9% Uncommitted credit lines granted 161€ mn** 151€ mn** * Some banks allowed
Slide 34: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds (€/000) 30/09/2020 30/06/2020 Δ Δ% Fixed assets 2,297,973 2,300,570 2,597 0.1% Assets under construction 42,714 40,610 -2,105 -4.9% Other non-current assets 21,422 21,551 129 0.6% Other non-current liabilities -28,092 -28,251 -159 0.6% NWC 45,940 19
Slide 35: Investor relations contacts
Raffaele Nardi, Director of Planning, Control and investor relations T. +39. 051 509231 Raffaele.nardi@gruppoigd.it Claudia Contarini, IR 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 5