Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD Siiq — Non-Deal Roadshow (June 2021)
64 slides from Immobiliare Grande Distribuzione SIIQ's roadshow presentation, June 2021
Slide 1: Road Show Presentation June 2021
Road Show Presentation June 2021
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 5 FY2020 and 1Q2021 Financial results Pag. 42 2 Operating performances in 2020 Pag. 11 6 Dividend and Outlook Pag. 50 3 Portfolio and projects Pag. 26 7 Appendix Pag. 53 4 Sustainability Pag. 38 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a glance
IGD at a glance IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across the country. We are also present in the retail sector in Romania 25 hyper/ 14 shopping 27 shopping Development malls in Italy supermarkets c. €2.3bn malls in & other
Slide 6: IGD Business Model
IGD Business Model A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well-diversified presence across Italy 39,2k PIL pro capite 2 Strategic positioning 3 Strong food anchor 4 Strong track record of direct management €34,6k–€42,6k 1 30,9k 35,2k €30,0k– €34,5
Slide 7: Group Structure (simplified)
Group Structure (simplified) 80.4% Revenues Parent Company 95% Financial debt 86% Portfolio value 13,7% Revenues 100% 5% Financial debt Italian Facility Management 6% Portfolio value 5,4% Revenues 100% No Financial debt Romania 6% Portfolio value 100% 0,5% Revenues Development project in No Financia
Slide 8: IGD's shareholding structure
IGD’s shareholding structure No. of shares Share capital Net equity 110,341,903 € 650 Mn € 1.1 Bn Average 2020 market Listed on STAR Segment of capitalization: c. €424 Mn Average 2020 daily trading: Italian Stock Exchange Last mkt capitalization approx.261,262 shares (28 May ’21) c. €444 mn Majority
Slide 9: IGD Governance – Directors and Committees
IGD 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. CEO EXECUTIVE Claudio Albertini CHAIRMAN Timothy Guy Rossella Sao
Slide 10: Our Top Management
Our Top Management Rossella Saoncella (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Appointed as IGD’s Chairman on 20 April 2021 • Appointed in May 2009 • She was and executive of Conad Grouo until 1993 • IGD Board member since 2006 • She was General Manager of the Graranolo Gro
Slide 11: Operating performances
Titolo titolo 2 Operating performances note 37
Slide 12: Operating performances in Italy in 2019 and 2020
Operating performances in Italy in 2019 and 2020 2019 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Positive National Positive quick answer New restrictions* start of the Lockdown when the restrictions year were eased IMPACTS ON IGD’S SC: IMPACTS ON IGD’S SC: 66
Slide 13: Quick response to Covid and limited effects on leasing activities in 2020
Quick response to Covid and limited effects on leasing activities in 2020 Precautions and measures implemented to ensure Maintained a controlled risk profile the safety of the shopping centre visitors ITALIAN MALLS FINANCIAL CONTRACTS: OCCUPANCY* Renewals 55 turnover 46 TEMPERATURE MONITORING (downs
Slide 14: Good results when the restrictions were eased in 2020
Good results when the restrictions were eased in 2020 Evidence emerged after restrictions were eased*… Fewer but more targeted visits… Approx. 87% of footfalls recovered …with an increase in average ticket … € 26.0, +17% (+€3.8) …resulting in a slight increase in Tenant sales +0.3% overall purchases
Slide 15: What's happened in 1Q 2021: Covid restrictions still impact
What’s happened in 1Q 2021: Covid restrictions still impact January February March Normal activity Normal activitiy lockdown Ø 2020 economic «non-essential» activities in IGD’s shopping malls impact were closed about 25% of the possible days of operation on 1Q 2020 vs Restrictions and variable Restr
Slide 16: The main trends in the first months of 2021
The main trends in the first 4 months of 2021 January February March 2021 2020 1Q 2021 vs 1Q 2021 vs Δ month/month 1Q 2020 1Q 2019 TENANT SALES -38.1% -16.9% +142.2% -14.4% -38.1% FOOTFALLS -38.1% -27.1% +50.0% -19.5% -36.5% The 2020 trend with fewer but more targeted visits continued in the 1Q aver
Slide 17: Scenario change thanks to the reopenings
Scenario change thanks to the reopenings week 17-23 May week 24-30 May week 31 May – 6 June Progressive change Change vs 2020 +21.9% Change vs 2019 -11.5% 17
Slide 18: Leasing management performance in 1Q2021
Leasing management performance in 1Q2021 74% MALLS of rental KEY MESSAGES income • No changes on the ITALY structure of existing contracts CONTRACTS: FINANCIAL OCCUPANCY* • Occupancy is decreasing in Renewals 50 Turnover 22 Italy (-90 bps) because of 93.6% the «knock-on effect» of the restrictions i
Slide 19: Collection rate FY2020 and 1Q2021
Collection rate* FY2020 and 1Q2021 2020 1Q 2021 Collected>95% Collected~75% ▪ Monthly invoicing Italian ▪ Negotiations with Portfolio tenants are in progress to manage the second lockdown in the same way as in 2020 (especially temporary Collected >95% Collected >88% reductions) Romanian Portfolio *%
Slide 20: IGD's shopping centers adapting to this context (1/2)
IGD’s shopping centers adapting to this context (1/2) Introduction of new brands, which despite the restrictions, recorded good results: Furniture solutions, opened at International brand, 4 stores Ready to Centro ESP: opened* with excellent results; new introduce new it became a true attractive anc
Slide 21: IGD's shopping centers adapting to this context (2/2)
IGD’s shopping centers adapting to this context (2/2) Openings of new brands and formats continued, despite being one of the sectors hit hardest by the restrictions La Piadineria – Centro Lame (BO) Poke Kal - Centrosarca (MI) Food and Open air food and beverage services allowed from 26th April #3 2.
Slide 22: Effective leasing activities to combat the negative impacts of Covid
Effective leasing activities to combat the negative impacts of Covid 24* among new openings and fully Innovative brand: MI Store restyled shops Next opening @Tiburtino (Roma) Continuous intense leasing activities to re-let the higher number of vacant spaces caused by the impacts of Covid Some of the
Slide 23: IGD assets to serve the community
IGD assets to serve the community The shopping center, which offers large, organized, supervised, regularly sanitized and easy to reach spaces, is the ideal location to quickly and safely create areas to endure proximity healthcare in Palermo is the first IGD shopping center to host a vaccination ce
Slide 24: Our idea of shopping center in the coming years
Our idea of shopping center in the coming years «Next Steps» projects: ideas for innovation ▪ The pandemic favored the acceleration of some transformations on-going in the retail world and, therefore, in the Shopping Centers sector • Two surveys* to better understand new visitors needs «Next steps»
Slide 25: First initiatives that are already being implemented
First initiatives that are already being implemented SERVICES MERCHANDISING LAYOUT AND TENANT MIX ▪ External areas intended for ▪ Apps to book/order at the ▪ Clinics in line with the plan to restaurants and leisure restaurants endure proximity healthcare ▪ Areas intended for pick-up and ▪ pet store
Slide 26: Portfolio and projects
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Slide 27: 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 28: The main characteristics of our portfolio
The main characteristics of our portfolio 2,265.7 € mn 42% of this portfolio consists of 8 “Key” assets of which 6 are Shopping centres (mall + hypermarket) On average every shopping centre is 10 years old Romania (last restyling/opening) 6% North western Italy 15% Southern Italy 12% Full ownership
Slide 29: IGD's portfolio market value (1/2)
IGD’s portfolio market value (1/2) Gross Initial EPRA Net Initial EPRA Net Initial FY 2019 * FY 2020 Δ% Yield Yield Yield topped up Malls Italy 1,574.54 1,473.30 (-6.43%) 6.53% 5.3% 5.4% Hypermarkets Italy 564.58 558.97 (-0.99%) 6.02% Romania 150.29 138.64 (-7.75%) 7.35% 6.0% 6.2% Porta a Mare + dev
Slide 30: IGD's portfolio market value (2/2)
IGD’s portfolio market value (2/2) ITALY ROMANIA € 2,381.4mn 7.5 7.5 Other 3.9% (91.99 €mn) Romania 6.3% -115.3 (150.29 €mn) -115.3 € 2,265.7mn 10.3 -6.5 0.5 -12.2 10.3 Other 4.2% -6.5 0.5 -12.2 (94.78 €mn) Romania 6.1% (138.64 €mn) FV change is due to DCF 2,381.4 assumptions (rates) for Malls 66.1%
Slide 31: EPRA Metrics
EPRA Metrics € per share FY 2020 FY 2019 Δ% NRV and NAV 10.38 11.40 -8.9% NTA 10.31 11.29 -8.7% NDV 10.42 10.81 -3.6% -0.23 0.54 -1.32 0.00 11.40 10.38 EPRA NRV/NAV 31 Resolved dividend FFO Change in asset fair Change in financial EPRA NRV/NAV 31 Dec 2019 value instruments fair Dec 2020 value and ot
Slide 32: 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 33: Flexible and sustainable asset management
Flexible and sustainable asset management 2020 2021/2022 ✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities, solidity some projects and capex were extraordinary maintenance, update of postponed as early March 2020. systems as well as fit out adaptations in order t
Slide 34: Pipeline
Pipeline CENTRO CASILINO PORTO GRANDE LA FAVORITA Project Mall Restyling and Mall Restyling and Hypermarket Hypermarket Mall Restyling Remodelling Remodelling Restyling of the external Reduction in the façade and internal areas hypermarket area and Restyling of the together with seismic creation of
Slide 35: Porta a Mare: an ambitious multifunctional project
Porta a Mare: an ambitious multifunctional project Lips Molo Mediceo Arsenale Livorno, touristic Port (Hotel, residential, entertainment and Officine Storiche services for the port) (retail, food court, residential) Focus next slide Piazza Mazzini Palazzo Orlando (retail, residential) Retail owned b
Slide 36: Porta a Mare: Officine Storiche The heart of the project
Porta a Mare: Officine Storiche The heart of the project End of work:1H2022 Total expected investment retail area : € 53 mn (of which remaining € 11mn*) Total surfaces: 20k sqm, of which 15k sqm dedicated to retail Stores: 30 + 10 restaurants + 1 fitness center *Data at 31/03/2021 36
Slide 37: Residential areas
Residential areas Piazza Mazzini Officine storiche 73 flats already sold 42 seafront flats (flats with garden, flats with terrace, (11 preliminary purchase agreements signed + 3 duplex terraced houses) being finalized at 25/05/2021 ) 37
Slide 38: Sustainability
4 Sustainability
Slide 39: Sustainability: commitment continues despite the pandemic
Sustainability: committment continues despite the pandemic Most short-term goals achieved, work in progress on the medium/long-term targets. GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER • €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the energy
Slide 40: Some of the results achieved
Some of the results achieved Level of satisfaction of IGD shopping centers’ visitors 3.9 (scale 1min. - 5max.) Co2 Emissions intensity 2020-2012 (KgCo2/Mq) -36.1% The structured engagement of all stakeholders allows IGD to understand their expectations and evaluate if integrate them in its strategy
Slide 41: IGD sustainability in the national and international context
IGD sustainability in the national and international context PARTICIPATION IN NATIONAL AND INTERNATIONAL ORGANISATIONS AND EVENTS ON SUSTAINBILITY Universities lectures and testimonies Member of the EPRA Member of the Chairman of the ESG Member of Impronta IGD is called to spoke Sustanability commit
Slide 42: FY2020 and 1Q2021 Financial Results
5 FY2020 and 1Q2021 Financial Results
Slide 43: FY 2020 and 1Q2021 main results
FY 2020 and 1Q2021 main results 2020 vs 2019 1Q 2021 vs 1Q 2020 REVENUES Rental Income €145.6 mn -6.2% €36.7 mn -4,4% Net Rental Income €109.5mn -19.8% €26.2 -20.7% EBITDA EBITDA (Core Business ) €99.4 mn -20.6% €23,8mn -21.6% EBITDA Margin (Core Business) 65.4% -121pts 61.8% -140pts EBITDA Margin F
Slide 44: Net Rental Income
Net Rental Income (€mn) Italy -€8.6mn -19.9% -€27.1mn -6.3% Romania -19.8% -19.3% -5.3 -3.3 -18.5 * 136.6 FY2020 128.0 109.5 Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020 Italy -1.4€mn -20.9% -6.8€mn -
Slide 45: Financial management
Financial management (€mn) 5.4 3.8 5.4 3.8 2.8 3.8 2.8 2.8 Total Total € 36.8mn € 36.2mn -4.7% Negative carry 31.0 5.4 29.6 3.8 €400mn bond issue + SACE 31.0 29.6 2.8 29.6 IFRS16 and Totale Totale 9,0€mn non-recurring charges 8,8€mn FY2020 Totale 8,8€mn 31.0 29.6 0.7FY 2019 FY0.6 2020 Finacial Mgt.
Slide 46: Funds From Operations (FFO)
Funds From Operations (FFO) -€5.5mn -€24.0mn -6.6% -28.8% -7.3 0.2 FFO p.s. 1.4 -18.5 0.54€ 83.3 77.8 FY2020 59.3 FFO_2019 Change in core Change in financial Change in taxes and FFO_2020 adj COVID net direct FFO_2020 business Ebitda adj* 1 management adj other impacts -1.5€mn -6.9€mn -7.1% -33.3% FF
Slide 47: Financial structure as at 1Q2021
Financial structure as at 1Q2021 31/12/2020 31/03/2021 LTV 49.9% 49.5% • Net debt improved in the (adj. IFRS16 c. 47.8%) (adj. IFRS16 c. 47.6%) first quarter (-10€mn vs YE2020) ICR 3.2X 2.9X • LTV is slightly decreasing Average cost of 2.30% 2.32% debt NET DEBT Debt breakdown* €1,145.4 mn** MARKET S
Slide 48: Debt maturity as at 1Q2021 Ratings
Debt maturity as at 1Q2021 €100mn: 2.25% 7y €400mn: 2.125% 5y Ratings 2.1% 5y* Repayed on 2.65% 7y 209 500 BBB- negative outlook 1 March 154 71 9 2 9 67 7 52 53 46 25 27 6 2021 2022 2023 2024 2025 2026 >2026 BB+ negative outlook secured bank debt unsecured bank debt Bonds Already repayed Taking into
Slide 49: On-going process on disposals to rebalance the financial structure
On-going process on disposals to rebalance the financial structure ✓ Consistent with 2019-2021 Strategic Plan, the procedure for the disposal of a portfolio of stand-alone hypermarkets/supermarkets was started ✓ Mandate granted to CBRE, a premiere international advisor Asset class with a Attractive
Slide 50: Dividend and Outlook
6 Dividend and Outlook
Slide 51: Dividend
Dividend 2020 Next few years ✓ Loss of the Parent company IGD SIIQ SPA ✓ As soos as external conditions allow, IGD ✓ Safeguard of the financial stability and the intends to resume paying dividends and investment grade profile providing its shareholders with attractive remuneration NO DIVIDEND IGD sh
Slide 52: Outlook
Outlook The first few months of 2021 were undoubtely difficult for shopping center operations due to the restrictions put in place, and it is therefore plausible that the Company will again be impacted directly and indirectly by the pandemic NEW OUTLOOK Basic assumptions • Effective implementation o
Slide 53: Appendix
Titolo titolo 7 Appendix note 65
Slide 54: Consolidated Income Statement 1Q2021
Consolidated Income Statement 1Q2021 GROUP CONSOLIDATED (a) (c) Δ 1Q_CONS_2020 1Q_CONS_2021 (c)/(a) Revenues from freehold rental activities 35.3 33.6 -5.0% Revenues from leasehold rental activities 3.1 3.1 1.9% Total income from rental activities 38.4 36.7 -4.4% Rents and payable leases 0.0 0.0 -9.
Slide 55: Reclassified Balance Sheet 1Q2021
Reclassified Balance Sheet 1Q2021 Sources - Uses of funds (€/000) 31/03/2021 31/12/2020 Δ Δ% Fixed assets 2,231,246 2,234,484 3,238 0.1% Assets under construction 44,182 42,674 -1,508 -3.4% Other non-current assets 17,956 17,374 -582 -3.2% Other non-current liabilities -30,646 -30,371 275 -0.9% NWC
Slide 56: Funds From Operations (FFO) 1Q2021
Funds From Operations (FFO) 1Q2021 Funds from Operations CONS_2020 CONS_2021 Δ 2020 Δ% * Core business Ebitda 30.3 23.8 -6.6 -21.6% IFRS16 Adjustments (Payables leases) -2.6 -1.7 0.8 0.3% Financial management adj -6.8 -7.9 -1.0 15.2% Extraordinary management adj 0.0 0.0 0.0 n.a. Gross margin from tr
Slide 57: More financial highlights 1Q2021
More financial highlights 1Q2021 31/12/2020 31/03/2021 Gearing ratio 1.03X 1.01X Average lenght of long-term debt 3.2 years 3.2 years Hedging on long-term debt + bond 93.0% 92.7% Share of M/L term 98.3% 98.6% Uncommitted credit lines granted 151€ mn* 151€ mn* Uncommitted credit lines available 151€
Slide 58: Other Epra metrics FY2020
Other Epra metrics FY2020 EPRA Performance Measure 31/12/2020 31/12/2019 EPRA NRV/NAV (€'000) 1,145,827 1,258,008 EPRA NRV/NAV per share € 10.38 € 11.40 EPRA NTA 1,137,258 1,245,473 EPRA NTA per share € 10.31 € 11.29 EPRA NDV 1,149,534 1,192,894 EPRA NDV per share € 10.42 € 10.81 EPRA Net Initial Yi
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) Porto Grande - Porto d'Ascoli (A
Slide 60: Contracts and key tenants Italy 1Q2021
Contracts and key tenants Italy 1Q2021 Malls Product Rents TOP 10 Tenant Contracts category impacts N 171 N 187 N 204 N 840 clothing 3.1% 14 64.8% 10.6% 10.4% 14.2% clothing 2.6% 9 2021 2022 2023 >2023 electronics 2.1% 8 Average residual maturity: 3.9 years personal care 1.8% 17 Total contracts: 1,4
Slide 61: Contracts and key tenants Romania 1Q2021
Contracts and key tenants Romania 1Q2021 Product Rents TOP 10 Tenant Contracts category impacts Winmarkt supermarkets 11.3% 11 N 216 N 197 N 49 N 78 clothing 5.7% 10 36.0% clothing 4.6% 11 28.0% 25.0% clothing 3.6% 6 drugstore 2.8% 5 11.0% jewellery 2.3% 4 personal care 2.1% 5 2021 2022 2023 >2023 o
Slide 62: Merchandising & Tenants Mix 1Q2021
Merchandising & Tenants Mix 1Q2021 Italy Romania Household Culture, leisure and Household goods Restaurants Supermarkets goods gift items 5% 7% 11% Culture, leisure 9% 3% and gift items Electronics Personal care 12% Electronics 7% 4% 2% Personal care Services 5% 9% Services Merchandising Restaurants
Slide 63: The main shareholders: «Coop world»
The main shareholders: «Coop world» 7 Legal entities throughout Italy «Coop world» key data(1): 17 Regions covered by Coop Turnover ~ EUR 14.7 bil € (12.9 % of italian large scale retail) 2 No. of stores: ~1,200 Employees ~52,000 Members ~ 6.7 Mn people Coop Alleanza 3.0 (3) Unicoop Tirreno (4) Reve
Slide 64: 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