Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — Non-Deal Roadshow (October 2014)
65 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, October 2014
Slide 1: IGD Roadshow Presentation
IGD ROADSHOW PRESENTATION October 2014
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: Index
3 Index INTRODUCTION TO THE IGD GROUP 4 SUMMARY OF 1H 2014 RESULTS 21 1H 2014 OPERATING PERFORMANCE 32 TRANSACTION DETAILS 42 APPENDIX 53 October 2014 Road-show presentation
Slide 4: Introduction to the IGD Group
INTRODUCTION TO THE IGD GROUP
Slide 5: IGD is one of the main players in the Italian real estate sector
IGD is one of the main player in the Italian real estate sector of the large 5 organized distribution: develops and manages shopping centers across the country and has a significant presence in retail distribution in Romania Presence throughout the territory, capital strength, processing power, cont
Slide 6: Our business model
6 Our business model A careful merchandising mix, marketing activity adapted to each DIRECT MANAGEMENT context and various customer related services but, especially in OF THE SHOPPING CENTRES this economic environment, careful attention paid to tenants‟ needs MEDIUM SIZED AND EASILY In line with the
Slide 7: Property portfolio breakdown as at 30/06/2014
7 Property portfolio breakdown as at 30/06/2014 PORTFOLIO BREAKDOWN BY TYPE OF ASSET ITALIAN PORTFOLIO BREAKDOWN (based on market value) BY GEOGRAPHIC AREA (based on market value) 1.5% Hypermarkets/ North East 4.6% supermarkets 37.1% 9.4% North West 0.4% Shopping malls 4.0% Centre 28.5% Lands 14.8%
Slide 8: Italian Portfolio as at 30/06/2014
8 Italian Portfolio as at 30/06/2014 Trentino Alto 50 REAL ESTATE ASSETS LOCATED IN Adige 11 ITALIAN REGIONS: Veneto Lombardy 18 shopping malls Piedmont 19 hypermarkets and supermarkets Emilia Romagna 1 city center 4 plots of lands for development Tuscany Marche 1 property held for trading 7 other A
Slide 9: Italian Portfolio: hypermarkets and shopping malls
9 Italian Portfolio: hypermarkets and shopping malls (as at 30/06/2014) 18 SHOPPING MALLS 19 HYPERMARKETS FOOD ANCHOR CENTRO D'ABRUZZO -Pescara CENTRO D'ABRUZZO -Pescara Coop Adriatica PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Adriatica ESP - Ravenna ESP - Ravenna Co
Slide 10: Romanian Portfolio as at 30/06/2014
10 Romanian Portfolio as at 30/06/2014 14 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 DIFFERENT ROMANIAN MEDIUM SIZED CITIES Bistrita Piastra Neamt Turda Market value: €173.4M Vaslui Galati Yield Shopping Malls: 6.64% Ploiesti Buzau Braila Tulcea Valcea Occupancy Shopping Malls: 86.3% Slatina Alexand
Slide 11: Main lease terms
11 Main lease terms Italian Shopping Malls Italian Hypermarkets Romanian Shopping Malls Main lease terms: Main lease terms: Main lease terms: Average maturity: Average maturity: 6 to 18 years (+ 6 years) Average maturity: lease agreement: 6 years (+ 6 years) Rents indexation: 75% of CPI 2 years for
Slide 12: SIIQ regime: main features
12 SIIQ regime: main features SIIQ STATUS FOR IGD SINCE 1 JANUARY 2008 At least 80% of total assets must be rental asset KEY PARAMETERS At least 80% of total positive components of P&L must be rental income (excluding change in FV) Largest shareholder stake ≤ 60% (vs. previous 51%) SHAREHOLDING LIMI
Slide 13: A sound track-record in a complex environment (1/2)
13 A sound track-record in a complex environment (1/2) IGD ACCOMPLISHED A SOUND SET OF RESULTS THROUGHOUT A DIFFICULT MACRO-ECONOMICAL CYCLE THANKS TO A CLEAR AND CONSISTENT STRATEGY STEADILY PURSUED OVERTIME… 4.00% 3.00% ITALIAN ECONOMICAL CONTEXT 2.00% Complex market environment featured by econom
Slide 14: A sound track-record in a complex environment (2/2)
14 A sound track-record in a complex environment (2/2) … WHILE DELIVERING A SOLID FINANCIAL PERFORMANCE! TOTAL REVENUES (€ M) MARKET VALUE OF PROPERTY PORTFOLIO (€M) +6.1% +12% 127.0 178 178 173 180 122.9 123.3 188 11.2 Financial occupancy 12% growth of property always > 95% 1,624 1,747 1,729 1,718
Slide 15: IGD's shareholders and governance
15 IGD‟s shareholders and governance IGD IS LISTED ON THE STAR SEGMENT OF BORSA ITALIANA TOTAL SHARES 360,169,663 / SHARE CAPITAL € 350,082,219 5.00% 3.14% Coop Adriatica Unicoop Tirreno 56.92% 43.99% 34.94% Quantum Strategic Partners LTD Schroder Investment Management LTD Market Free float 12.93% M
Slide 16: IGD top management
16 IGD top management GILBERTO COFFARI (1946) CLAUDIO ALBERTINI (1958) Chairman Chief Executive Officer Chairman of IGD's Board since its creation in 2000 Appointed in May 2009 Chairman of Coop Adriatica from 2006 to 2011 Board member at IGD since 2006 Currently board member of the BancaSAI and of F
Slide 17: WORLD (1/2)
17 WORLD (1/2) 9 LEGAL ENTITIES THROUGHOUT ITALY Veneto, Emilia Romagna, Marche, Abruzzo Toscana, Lazio, Umbria, Campania Lombardia, Sicilia Piemonte Liguria, Piemonte Emilia Romagna, Lombardia, Trentino, Veneto, Friuli Venezia Giulia Emilia Romagna, Puglia, Basilicata Toscana Toscana, Umbria, Abruz
Slide 18: WORLD (2/2)
18 WORLD (2/2) Market share in Italy: 19.1% (+0.6% vs 2012) Turnover : €12,724M N° of point of sale: ~ 1,200 Employees: ~ 54,700 Members: 8 million people (+3.4% vs 2012) COOP PRODUCTS AND SERVICES Goods with Coop brand: Market share of 27% (+1% vs 2012) Coop Salute: 119 points of sale Coop Voce: 1.
Slide 19: Coop Adriatica
19 Coop Adriatica Turnover: €2.1 billion Point of sale: 175 Employees: 8,979 Members: 1,258,452 (+3.79% vs 2012) STRATEGIC PARTNERSHIPS UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA IPERCOOP SICILIA SPA, SUPERCOOP SICILIA SRL and DISTRIBUZIONE ROMA SRL DIVERSIFICATION INITIATIVES RO
Slide 20: Unicoop Tirreno
20 Unicoop Tirreno Turnover: €1.18 billion Point of sale: 112 Employees: 5,118 Members: 942,466 (+2.40% vs 2012) STRATEGIC PARTNERSHIPS UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA UNICOOP TIRRENO HAS SET-UP 2 E-COMMERCE PLATFORMS allows you to purchase food products online and hav
Slide 21: Summary of 1H 2014 Results
|) SUMMARY OF 1H 2014 RESULTS
Slide 22: Highlights (1/2)
22 Highlights (1/2) REVENUES € 61.8M Total revenues (+2.1% vs 30/06/2013) € 60.3M Core business revenues (-0.3% vs 30/06/2013) EBITDA € 39.9M EBITDA (core business) (-4.3% vs 30/06/2013) Masterlease of Le Fonti del Corallo 66.1% mall (Livorno) had a EBITDA margin (core business) (-2.7 percentage poi
Slide 23: Highlights (2/2)
23 Highlights (2/2) € 2.13 NNAV per share (€ 2.22 as at 31/12/2013) Total Portfolio Market Value € 1,849.5M Changes mainly due (-€42M vs. 31/12/2013) to the sale of Le Fonti del Corallo mall (Livorno) in Income related portfolio Market Value € 1,690.6M February for €47M (€1,723.7M vs. 31/12/2013) Lo
Slide 24: A strong half year with several strategic actions
24 A “strong” half year with several strategic actions 28 February 2014 7 May 2014 30 May 2014 Sale of the treasury Private placement with DRO – Subscribed 77.8% POST 1H 2014 26 February 2014 shares to Quantum Morgan Stanley of a senior (best result since its Sale of the mall “Fonti Strategic Partne
Slide 25: Focus on revenues
25 Focus on revenues BREAKDOWN OF TOTAL REVENUES 1H 2014 TOTAL REVENUES (€ „000) BY TYPE OF ASSET (1H 2014) 60,546 Total 61,829 revenues 0.2% +2.1% 1.385 0.3% 1.4% Malls 2.514 2.710 7.3% Hypermarkets City center Trading revenues Revenues from Other 31.1% 58.032 57.734 services 59.7% Romania Rental a
Slide 26: Consolidated EBITDA
26 Consolidated EBITDA: € 39.7M EBITDA (core business): € 39.9M (-4.3%) CONSOLIDATED EBITDA (€ „000) - 102 252 - 1.452 - 190 41,218 39,726 EBITDA Change in Change in Change in Change in EBITDA 30/06/2013 revenues from direct costs trading activities G&A expenses 30/06/2014 rental activity and servic
Slide 27: Group net profit
27 Group net profit: € 4.5M GROUP NET PROFIT (€ „000) NET PROFIT EVOLUTION (€ „000) + 9.8% 663 2,543 29 - 1,345 278 4,454 4,056 4,454 4,056 - 1,770 Group net Change in Change in Change in Change in Change Change in Group net 30/06/2013 30/06/2014 profit EBITDA EBITDA Porta depreciation, financial an
Slide 28: Core business Funds From Operations (FFO)
28 Core business Funds From Operations (FFO) FFO (€ „000) 30/06/2013 30/06/2014 D D% Pre-tax profit 2,667 6,758 4,091 n.a. – €1.8M due to a decrease in Ebitda Depreciation and other provisions 721 754 32 4.6% (decreased net revenues, increased Change in FV and devaluations 15,140 9,917 -5,223 n.a. l
Slide 29: IGD financial structure: highlights
29 IGD financial structure: highlights 31/12/2012 31/12/2013 30/06/2014 GEARING RATIO 1.38 1.38 1.30 LOAN TO VALUE 57.2% 57.4% 55.9% AVERAGE COST OF DEBT 3.91% 3.79% 4.26% INTEREST COVER RATIO 2.0x 1.9X 1.75X AVERAGE LENGHT OF LONG TERM DEBT (bonds included) 10.2 years 8.6 years 7 years % MID/LONG T
Slide 30: IGD indebtedness structure and maturity profile
30 IGD indebtedness structure and maturity profile NET DEBT COMPOSITION (€ ‘000) 4,404 12,985 91% long-term 937,089 1,034,231 72,209 33,514 Current share Long term debt Potential mall business Cash & Net debt Short term debt of long term debt division fees cash equivalents BREAKDOWN MARKET-BANKING S
Slide 31: NNAV
31 NNAV NNAV FY13 1H14 NNAV PER SHARE (€) Market value ow ned properties, lands and direct 2.31 development initiatives and assets held for trading a 1,891.28 1,849.53 Investment properties, lands and development 2.22 initiatives, assets held for trading b 1,890.86 1,848.51 Potential capital gain c=
Slide 32: 1H 2014 Operating Performance
1H 2014 OPERATING PERFORMANCE
Slide 33: Commercial highlights
33 Commercial highlights Footfalls in Italian IGD Shopping Malls** +0.1% progressive change Tenants sales in Italian IGD Shopping Malls +2.7% progressive change Improving Q2 vs. Hypermarket sales * -3.8% progressive change 5.4% registered in Q1 2014 IGD‟s Hypermarket and Supermarket sales * -3.3% pr
Slide 34: Performance of our shopping malls in 1H 2014
34 Performance of our shopping malls in 1H 2014 TENANT SALES AND FOOTFALLS IN OUR SHOPPING CENTERS SALES FOOTFALLS Progressive change Progressive change Absolute June 2014 June 2014 value ITALY +2.7% + 0.1% 29.5 million** ROMANIA n.a.* - 8.2% 14.6 million (*) No data available as not all our tenants
Slide 35: Performance of IGD shopping malls in 1H2014
35 Performance of IGD shopping malls in 1H2014 QUARTERLY TREND OF TENANT SALES 2011-2Q 2014 6.0% 4.0% 3.8% 2.0% 1.4% 1.0% 0.0% 0.0% -0.1% 1q2011 2q2011 3q2011 4q2011 1q2012 2q2012 3q2012 4q2012 1q2013 2q2013 3q2013 4q2013 1q2014 2q2014 -0.8% -2.0% -1.6% -0.7% -2.0% -4.0% -4.1% -4.6% -5.0% -6.0% -5.3
Slide 36: Rental agreements in Italy and Romania as at 30/06/2014
36 Rental agreements in Italy and Romania as at 30/06/2014 EXPIRY DATE OF HYPERMARKET AND MALL EXPIRY DATE OF HYPERMARKET AND MALL ITALY CONTRACTS IN ITALY (based on n° of contracts) CONTRACTS IN ITALY (based on total value of contracts) n° 19 100.0% 100.0% 138 contracts signed in 1H 2014: n° 655
Slide 37: Commercial and asset management activities in 1H 2014 (1/4)
37 Commercial and asset management activities in 1H 2014 (1/4) Creation of a new medium sized area (Terranova), through the unification of some vacant shops. Result: increase in attractiveness and reduction in vacancy. Remodeling Creation of a new medium sized area (New Yorker), introduction of high
Slide 38: Commercial and asset management activities in 1H 2014 (2/4)
38 Commercial and asset management activities in 1H 2014 (2/4) Introduction of new brands in the food court: America Graffiti, a 50s style American-inspired restaurant, La Torteria, a cake and coffee corner and Titto, an ice cream shop offering personalised toppings. Spring 2014: opening of a new H&
Slide 39: Commercial and asset management activities in 1H 2014 (3/4)
Commercial and asset management activities 39 in 1H 2014 (3/4) Chioggia Retail Park Work in progress for the construction of a new format for IGD: an open air shopping mall with neighbourhood shops, a hypermarket, 7 medium sized areas, all connected by covered walkways Post 1H 2014 Porta a Mare 10/0
Slide 40: Commercial and asset management activities in 1H 2014 (4/4)
Commercial and asset management activities 40 in 1H 2014 (4/4) New entrance of Centro d‟Abruzzo after restyling Location: San Giovanni Teatino, CH Extension opening date: 10 April 2014 Footfalls (from 10/4 to 13/4): 80,000 In 2Q 2014 turnover of the shopping center increased of +69.3% compared to th
Slide 41: July 2014: IGD presented its first APP
41 July 2014: IGD presented its first APP During the weekend 5-6 July IGD‟s first APP regarding Centro d‟Abruzzo was launched Benefits to the customers that donwload it Real-time news on promotions and events going on in the Shopping Center; Information on shops in the Mall; Exclusive promotions Ben
Slide 42: Transaction Details
TRANSACTION DETAILS
Slide 43: Transaction overview
43 Transaction overview A MAJOR STEP FOR IGD CONFIRMING GROWTH AND VALUE-CREATION STRATEGY THROUGH THE INDUSTRIAL PARTNERSHIP WITH ITS REFERENCE SHAREHOLDERS On July 8, 2014, IGD announced: the signing of 2 preliminary agreements for the acquisition of a strategic real estate portfolio from Coop Adr
Slide 44: Continuity of IGD strategy through the years
44 Continuity of IGD strategy through the years LEVERAGE ON PRIVILEGED RELATIONSHIP WITH COOP UNIVERSE TO FOSTER GROWTH AN VALUE CREATION 2007 2009 2011 Mall Mondovì / Coop Liguria Shopping center Le Maioliche / Coop Adriatica Hypermarket Coné / Coop Adriatica acquisitions in Italy / Shopping center
Slide 45: A strategic transaction…
45 A strategic transaction… ACCELERATION OF GROWTH ALONG THE EXISTING STRATEGIC GUIDELINES… GROWTH OF Properties being acquired to contribute for €4.6M rents, representing RENTAL INCOME a ~ 4% increase vs. YE2013 + €1.9M reduction of leasehold cost AND EBITDA An increase in EBITDA ~ €6.2M PROPERTY P
Slide 46: … Improving IGD financial profile
46 … Improving IGD financial profile … WHILE CONVERGING THE LEVERAGE STRUCTURE TO BEST PRACTICES THUS PAVING THE WAY TO A NEW VALUE CREATION PHASE Deleveraging objectives set in the 2014-2016 business plan to be widely exceeded STRENGTHEN IGD leverage profile stabilised in order to converge the para
Slide 47: A strategic portfolio with very strong fundamentals
47 A strategic portfolio with a very strong fundamentals TOTAL INVESTMENT FOR THE ACQUISITION OF THE PROPERTIES: €92.7M + €2.1M ESTIMATED TRANSFER DUTIES AND COSTS Hypermarket Schio (VI) Leading properties in terms of standing and client attraction in their reference areas Hypermarket Cesena Lungo S
Slide 48: Overview of the properties being acquired
48 Overview of the properties being acquired HYPERMARKET SCHIO (VICENZA) HYPERMARKET CESENA LUNGO SAVIO (FORLÌ-CESENA) GLA: 8,176 sqm (net sales area: 4,806 sqm) GLA: 4,746 sqm (net sale area: 4,000 sqm) Rental income: €1.16M (€142/sqm/y) Rental income: €1.27M (€268/sqm/y) ERV as at 30/06/2014: €1.1
Slide 49: Key terms of the capital increase
49 Key terms of the capital increase ISSUER Immobiliare Grande Distribuzione SIIQ S.p.A. Public offer in Italy OFFER Issuance of new shares with preferential subscription rights in favour of existing shareholders STRUCTURE No offering in the US, Japan, Australia and Canada Amount: €199,678,061 OFFER
Slide 50: Highlights on main transaction impacts
50 Highlights on main transaction impacts TRANSACTION ALLOWING TO EXCEED THE TARGETS SET IN THE 2014-2016 BP, PAVING THE WAY TO PURSUE NEW STRATEGIC AMBITIONS IN TERMS OF GROWTH AND VALUE CREATION FY 2013 post FY 2013 transaction (1) RENTAL REVENUES (CORE BUSINESS) €115.5M +4.0% €120.1 EBITDA €82.9M
Slide 51: Financial prospects
51 Financial prospects ACCELERATION OF DISINTERMEDIATION OF IGD FUNDING POLICY FROM THE BANKING MARKET MARKET INCLUDES: €144M bond due 2017 €135M BNP Paribas CMBS due 2018 €150M Morgan Stanley bond due 2019 BREAKDOWN MARKET/BANKS 13.3% DISPOSALS (~ €60M) MORGAN STANLEY IGD set TRANSACTION BNP
Slide 52: Closing remarks
52 Closing remarks TRANSACTION IN LINE WITH IGD CORE STRATEGY GUIDELINES AND ALLOWING ALL SHAREHOLDERS TO TAKE PART TO THE TRANSACTION UNDER THE SAME TERMS Cooperatives are the leading player in the Italian grocery retail sector TRANSACTION IN LINE A resource IGD has been leveraging upon to consol
Slide 53: Appendix: Financial Details
APPENDIX FINANCIAL DETAILS
Slide 54: Consolidated income statement
54 Consolidated income statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT Figures in € ‘000 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % Revenues from freehold real estate and rental activities 52.972 51.541 (2.7)% 52.931 51.407 (2.9)% 41 134 n.a. Revenues from leas
Slide 55: Reclassified balance sheet
55 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) 31/12/2013 30/06/2014 D D% Fixed assets 1,879,129 1,848,270 -30,859 -1.6% NWC 71,271 61,319 -9,952 -14.0% Other consolidated liabilities -68,519 -68,747 -228 0.3% TOTAL USE OF FUNDS 1,881,881 1,840,842 -41,039 -2.2% Net debt 1,084,887 1,034,
Slide 56: Main tenants in Italy
56 Main tenants in Italy Product % of Contracts TOTAL N° OF CONTRACTS Top 10 Tenants category turnover Miroglio group Malls 1,044 clothing 3.5% 32 Hypermarkets 19 clothing 3.1% 10 Total 1,063 clothing 2.4% 7 footwear 2.0% 5 BRAND BREAKDOWN IN MALLS (based on revenues) clothing 1.7% 20 International
Slide 57: Main tenants in Romania
57 Main tenants in Romania Product % of Contracts TOTAL N° OF CONTRACTS: 540 Top 10 Tenants category turnover food 10.3% 10 clothing 6.5% 3 electronics 4.6% 8 jewellery 3.0% 9 BRAND BREAKDOWN IN MALLS (based on revenues) household goods 2.7% 5 International brands pharmacy 2.3% 5 National brands 31%
Slide 58: IGD 2014-2016 business plan investment pipeline
58 IGD 2014-2016 business plan investment pipeline ESP GrandRondò NEW Chioggia EXTENSION / Centro d’Abruzzo Le porte di Napoli PROPERTIES Porta Medicea RESTYLING Porto Grande Centro Borgo Centro Sarca Expected Investment schedule (€M) Total plan Project 2014-2016 (€M) opening 2014 2015 2016 Chioggia
Slide 59: Appendix: Details on property portfolio being acquired
APPENDIX DETAILS ON PROPERTY PORTFOLIO BEING ACQUIRED
Slide 60: Schio hypermarket
60 Schio hypermarket Via Luigi della Via , 9 int. 1 – Schio (Vicenza) DESCRIPTION Portion of the building used for hypermarket Opened to the public in 2008 GLA of Hypermarket: 8,176 sqm (net sales area: 4,806 sqm) The market share: 11.6% The catchment area (0-20 minutes): 141,524 inhabitants Rental
Slide 61: Cesena Lungo Savio hypermarket
61 Cesena “Lungo Savio” hypermarket Via Arturo Carlo Jemolo, 110 - Cesena DESCRIPTION Portion of the building used as hypermarket inside the Lungo Savio mall, already owned by IGD Hypermarket GLA: 7,476 sqm (sales area 4,000sqm) Gallery GLA: 2,917 sqm split in 22 points of sales (including 1 medium
Slide 62: Città delle Stelle shopping mall – Ascoli Piceno
62 Città delle Stelle shopping mall – Ascoli Piceno Viale dei Mutilati ed Invalidi del Lavoro, 94 – Campolungo (Ascoli Piceno) DESCRIPTION Complex built on 2 levels: ground floor hosting the hypermarket and a large shopping area + first floor with many recreational facilities (multiplex, bowling, ga
Slide 63: Civita Castellana supermarket
63 Civita Castellana supermarket Piazza Marcantoni – Civita Castellana (Viterbo) DESCRIPTION Supermarket located within the Piazza Marcantoni in-town shopping mall Opened in 2010 and situated between the historic center and areas of more recent development The supermarket has public access on the ma
Slide 64: Cecina supermarket
64 Cecina supermarket Via Pasubio, 33 – Cecina (Livorno) DESCRIPTION Supermarket hosted within a shopping center located in the town of Cecina The mall opened in 1994 and it was completely renovated in 2008 Supermarket GLA: 5,749 sqm (sales area: 3,155 sqm) The market share on the Cecina city: ~ 41%
Slide 65: 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 October 2014 Road-show presentation
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