Banimmo Sa · EURONEXT:BANI
Banimmo Sa — Debt Investor Presentation (April 2010)
27 slides from Banimmo Sa's debt investor presentation, April 2010
Slide 1: Banimmo – Bond + Warrants
Banimmo – Bond + Warrants A il 2010 April
Slide 2: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 2
Slide 3: Banimmo in a nutshell
BANIMMO IN A NUTSHELL Spin-off leading to Belgium, France, progressive focus in Luxembourg undervalued/obsolete 3 asset classes assets 2 platforms 1995 1999 2000 2006 2006 2010 Workout for Anhyp Shareholdings Shareholdings Mgnt: 4→12% Affine: 50% Mgnt: 29% P R I C O A April 2010 3
Slide 4: Banimmo in a nutshell
BANIMMO IN A NUTSHELL Property company generating both capital gains and recurring income Capital gains from ‘asset asset redevelopment’ redevelopment Rental income from diversified tenant base Ownership / strategic management of conference centers Financial income from stake in listed SIC
Slide 5: Banimmo vs. REITs
BANIMMO VS. REITS Banimmo is not a REIT-like Belgian SICAFI… fully liable to corporate tax (33.99% in Belgium) actively involved in property redevelopment no legal indebtedness ceiling no minimum payout (80% of recurring cash flow) … but still shows several similarities substantial and
Slide 6: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 6
Slide 7: Business model
BUSINESS MODEL B2B Sectors Offices Retail Conference Centers Properrty reposittioning & Niche Acttivity redevelopm ment N Rents + capital gains Rents + capital gains Operating income + fees April 2010 7
Slide 8: Business model: property repositioning
BUSINESS MODEL Property repositioning Identification of obsolete asset with redevelopment potential ACQUIRE Q Extensive analysis & due diligence (including fiscal & financial) 6-12 months Technical upgrading Æ energy/carbon efficient Commercial repositioning p g Æ improved p occupancy p y an
Slide 9: Business model: property repositioning
BUSINESS MODEL Property repositioning Sustained profitability High development margins in Belgium Barriers of entry vs. traditional property investment (t h i l financial, (technical, fi i l llegal,l ttax llocall expertise) ti ) Lower competition among investors for ‘complicated’ assets Be
Slide 10: Durability requirements create opportunities for Banimmo
BUSINESS MODEL Current requirements of durability of buildings create opportunities for Banimmo Facts Priority of tenants and investors to reduce their costs (maintenance, energy, etc.) Global awareness of our impact on the climate: • Construction phase: green materials, renewable energy, bett
Slide 11: Case study: Repositioning of the Honeywell site
BUSINESS MODEL Case study: Repositioning of the Honeywell site (Da Vinci site) L Location ti Evere (next to NATO) Acquisition Date: 2000 Amount: €14.1 mio During first years, buildings were rented to Honeywell Specifications Area of 43,600m² 3 buildings with a total surface of 24,2
Slide 12: Business model: conference centers
BUSINESS MODEL Conference centers Ownership & management of 2 conference centers acquisition of Dolce Chantilly and grand opening of Dolce La Hulpe Brussels in March 2007 ‘sales & manage back’: ownership + full business risk & return retained day to day management incl day-to-day incl. HR HR
Slide 13: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 13
Slide 14: Portfolio distribution
PORTFOLIO DISTRIBUTION Portfolio made up of 25 sites in Belgium and France (158,000 m² for the investment portfolio) Portfolio value: €341 mio(1) (at 31/12/2009 vs. €390 mio on 31/12/2008) Target: T t €500 mio i NAV of €143 mio Value underestimated: Accounting A ti value l off conference
Slide 15: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 15
Slide 16: Income statement
INCOME STATEMENT € ‘000 Audited Audited Audited 2007 2008 2009 Net rental income 10,937 15,178 16,159 Other income (commissions on JV) 2,729 831 1,300 Share in the result of companies accounted by the equity method 169 (427) (2,442) Recurrent income 13 835 13,835 15 582 15,582 15 017 15,017 Operatio
Slide 17: Key P&L figures and ratios
KEY P&L FIGURES AND RATIOS Key P&L figures Key P&L ratios 30 2007 2008 2009 29,0 Margin on assets sales 62% 51% 19% 25 Revenue mix (recurr. Rev. vs. capital 37/63 69/31 45/55 24,9 gains) 22,9 ROE (Net current result on average 18% 6% 13% 20 equity) it ) Net result / share A (in €) 1.98 0.30 0.76 18,
Slide 18: Financial structure
FINANCIAL STRUCTURE Key figures Key y ratios 31/12/2007 31/12/2008 31/12/2009 Net debt (€ M) 47.4 172.8 145.3 Net debt / shareholders equity 0.30 1.20 1.02 Fin. debt / Total assets 21.0% 51.3% 46.3% Current resources: • €190 mio syndicated bank credit • €50.4 mio specific asset financing loans •
Slide 19: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 19
Slide 20: Forecasts
FORECASTS Appealing (economical) return on equity of 16 16.1% 1% despite depressive real estate and bank market conditions Strong capacity to develop new projects in a buyer’s market o Objective: > €100 mio Strong pipeline under study with greater focus in the retail segment. Office segment fo
Slide 21: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 21
Slide 22: Key features of the offer
KEY FEATURES OF THE OFFER ¾ Size of the offer Maximum €75 mio ¾ Denomination € 1,000 with 35 warrants each ¾ Coupon 5.15 % paid annually on June 10th from June 2011 ¾ Yield to Maturity 4.78% ¾ Maturity June 10th, 2015 ¾ Warrants 35 warrants per bond right to subscribe to a new share of Class A each
Slide 23: Agenda
AGENDA Banimmo in a nutshell Business model Portfolio description Management Analysis of the results Forecasts Key features of the offer Investment case April 2010 23
Slide 24: Advantages for the investors of the bond cum warrants
ADVANTAGES FOR THE INVESTORS OF THE BOND CUM WARRANTS Advantages of the bond… ¾ Fixed income guaranteed for 5 years, with a large appetite from private investors ¾ Increasing number of bond issues …linked to warrants ¾ Progressive turnaround of stock markets ¾ Indexes have rebounded above levels
Slide 25: Reasons for Banimmo
REASONS FOR BANIMMO Further diversification of financing sources Reduce weight of syndicated credit of which a tranche of €140 mio has a maturity in September 2011 Possible capital increase in 2014 and/or 2015 allowing new equity Capacity to achieve a portfolio of € 400 million under managem
Slide 26: Use of proceeds
USE OF PROCEEDS Banimmo intends to invest around € 100 mio in new assets Mainly in the retail segment Both in France and Belgium First acquisition in retail in France made public in March 2010 Three other acquisitions under advanced study Large pipeline of opportunities under investigati
Slide 27: Turning obsolescence into sustainable excellence
Turning obsolescence into sustainable excellence www.banimmo.be b i b