Immobel Sa · EURONEXT:IMMO
Immobel Sa — Corporate Update (April 2020)
25 slides from Immobel Sa's corporate update, Apr 27, 2020
Slide 1: COVID-19 Update
COVID-19 Update 27 April 2020 0
Slide 2: Key Highlights
KEY HIGHLIGHTS Immobel’s strong residential exposure in major European cities ensures financial and operational resilience in a challenging market environment 1 Business Despite the current COVID-19 situation, Immobel has secured a lease agreement with a large financial institution for a major o
Slide 3: Proven Portfolio Strategy
Business update Financial stability Outlook PROVEN PORTFOLIO STRATEGY Portfolio by country Portfolio by asset class(1) Portfolio by status Time to delivery 11% 7% 8% 13% 4% 26% 14% EUR EUR EUR 16% 9% 4.5bn 53% 4.5bn 46% 4.5bn % of equity GDV GDV GDV invested 38% 23% 25% 74% 33% Belgium Luxembourg Fr
Slide 4: Signing of Major Office Project Despite COVID-19
Business update Financial stability Outlook SIGNING OF MAJOR OFFICE PROJECT DESPITE COVID-19 Transaction highlights European district, Brussels, Office project, ca. 14,000 Belgium sqm Architects: Office and Major financial institution 9 Jaspers-Eyers 9 year lease agreement BREAAM excellent Other maj
Slide 5: Impact of COVID-19 on Key Business Drivers
Business update Financial stability Outlook IMPACT OF COVID-19 ON KEY BUSINESS DRIVERS COVID-19 lockdown schedule Belgium Larger construction sites halted but most are starting up again, smaller construction sites continued. Lockdown expected to continue until 3rd of May France Most construction sit
Slide 6: Resilient Earnings with Strong Rebound Expected in 2022
Business update Financial stability Outlook RESILIENT EARNINGS WITH STRONG REBOUND EXPECTED IN 2022 (EURm) Stress case scenario >13% CAGR Earnings delay in 2020 & 2021 due to COVID-19 which is recovered in 2022 >7% CAGR 700 600 486 500 400 400 320 2019A 2020E 2021E 2022E Minimum operating income und
Slide 7: Overview of Current Project Pipeline
Business update Financial stability Outlook OVERVIEW OF CURRENT PROJECT PIPELINE Project Country Type Gross m² GDV (EURm)(1) % sold(2) 2019A 2020E 2021E 2022E 2023E 2024E+ ‘t Zout BE Residential 4,772 16.1 96.7% O'Sea Phase 1 BE Residential 16,844 67.9 86.0% Greenhill Park BE Residential 6,440 32.2
Slide 8: Liquidity Remains Strong for the Next Two Years
Business update Financial stability Outlook LIQUIDITY REMAINS STRONG FOR THE NEXT TWO YEARS Liquidity Cash commitments With a strong residential portfolio (EURm) (EURm) delivering recurring sales, Immobel still 1 expects further sales in 2020 and 2021 Additional sales of large office projects in P
Slide 9: Treasury Shares as Firepower for New Opportunities
Business update Financial stability Outlook TREASURY SHARES AS FIREPOWER FOR NEW OPPORTUNITIES Capital structure Additional headroom Additional GDV (EURm) (EURm) (EURm) A placement of treasury shares could Treasury shares(1) ~75 1 1 increase the equity by ~EUR 75m to Value creation ~EUR 500m based
Slide 10: Premium Residential Portfolio and Strong Balance Sheet
Business update Financial stability Outlook PREMIUM RESIDENTIAL PORTFOLIO AND STRONG BALANCE SHEET Tier 1 residential and mixed-use projects across major European cities guarantee stability even in a challenging market environment Premium The pipeline of residential projects secures a recurring
Slide 11: Appendix
Appendix
Slide 12: Proven Track-Record and Resilient Business Model
PROVEN TRACK-RECORD AND RESILIENT BUSINESS MODEL ROE (EURm) Net income 30% 102 Allfin Merger Allfin Merger 19% 17% Ø 17.1% 53 57 Target ROE 15% 9% 10% 6% 6% 20 Ø 5.4% 3% 16 12 11 2 11 1% 0.4% 1 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017
Slide 13: Highly Scalable Business Model Focusing on Profitable Growth
HIGHLY SCALABLE BUSINESS MODEL FOCUSING ON PROFITABLE GROWTH (EURm) Operating income Comments 486 Y-o-Y: 31% 371 70 4 Top-line growth of 31% driven by all core markets significantly (Belgium Y-o-Y: 64% 17 EUR 189m, Luxembourg EUR 206m and France EUR 70m) 227 135 206 80 65 Belgium is mainly drive
Slide 14: Highly Scalable Business Model Focusing on Profitable Growth (Cont'd)
HIGHLY SCALABLE BUSINESS MODEL FOCUSING ON PROFITABLE GROWTH (CONT’D) (EURm) EBITDA Comments EBITDA increases even more than gross margin driven by higher Margin 12% 21% 27% portion of G&A being covered by project management fees charged 132 Y-o-Y: 62% to projects. Gap expected to decrease further
Slide 15: Growing Cash Conversion Supports Stable Shareholder Returns
GROWING CASH CONVERSION SUPPORTS STABLE SHAREHOLDER RETURNS (EURm) OCF excluding investments(1) Comments 110 Operational cash flows more than doubled in line with growth in net income 52 Immobel will further increase its dividend by 10% (subject to approval of General Assembly on the 28th May) i
Slide 16: Illustrative Example of the Locked-Box Approach
ILLUSTRATIVE EXAMPLE OF THE “LOCKED-BOX” APPROACH 20% 15% 0% 0% 0% 100% 90% -15% 80% -20% 50% 40% 25% 20% 5% 5% Acquisition Permitting Construction Delivery (1 month) (19 months) (26 months) (7 months) Costs (% of total project costs) Equity funded Net project equity flows(relative to costs) Breakev
Slide 17: Strong Balance Sheet with Further Upside from Leverage
STRONG BALANCE SHEET WITH FURTHER UPSIDE FROM LEVERAGE Gearing (EURm) Net debt(1) 70% 668 Additional Driven by new headroom 412 61% acquisitions in 54% to drive 278 2019 fuelling long- 48% profitable term growth growth 2017A 2018A 2019A 2017A 2018A 2019A (EURm) Maturity Schedule(2) Project financing
Slide 18: Value Creation Through Active Capital Management
VALUE CREATION THROUGH ACTIVE CAPITAL MANAGEMENT ROE vs cost of equity Comments Immobel achieved a ROE of 30% well above its target of 15% With a cost of equity estimated at 9% to 10% Immobel is creating substantial value for its shareholders 30% 19% Target ROE 15% 10% Cost of equity 9% 3% 2017A
Slide 19: Strong Acquisition Track-Record
STRONG ACQUISITION TRACK-RECORD (EURbn) Historical acquisitions GDV Gross GDV Project Country Type m2(2) (EURm)(2) 0.94 (0.47) 0.23 4.56 (0.37) Eden / 0.96 3.85 GER Residential 20,000 174.5 3.26 Frankfurt Key West / BE Residential 30,641 88.3 Brussels Centre Monnaie / BE Mixed 31,061 N/A(3) Brussels
Slide 20: Profit and Loss Statement
PROFIT AND LOSS STATEMENT EXTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Operating Income 148,999 326,131 419,547 Turnover 145,000 313,420 408,784 Other operating income 3,999 12,711 10,763 Operating Expenses (127,082) (260,953) (327,192) Cost of sales (106,711) (235,325) (291,027) Cost of commercialisa
Slide 21: Balance Sheet
BALANCE SHEET EXTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 (EURk) Dec 2017 Dec 2018 Dec 2019 Non-current assets 66,454 181,670 213,311 Total equity 306,958 344,749 428,162 Goodwill - - 43,789 Equity share of immobel 306,941 344,633 426,151 Intangible assets 405 427 543 Share capital 97,256 97,256 97,2
Slide 22: Profit and Loss Statement
PROFIT AND LOSS STATEMENT INTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Operating Income 226,716 371,265 486,298 Turnover 222,165 357,131 470,626 Other operating income 4,551 14,134 15,672 Operating Expenses (198,940) (297,440) (379,551) Cost of sales (176,778) (270,994) (340,310) Cost of commercialisa
Slide 23: Balance Sheet
BALANCE SHEET INTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 (EURk) Dec 2017 Dec 2018 Dec 2019 Non-current assets 25,398 187,279 252,412 Total equity 303,578 344,749 426,182 Intangible and tangible assets 1,439 1,374 51,756 Non-current liabilities 383,990 414,877 642,663 Investment property 2,960 158,28
Slide 24: Definitions
DEFINITIONS Gross development Total expected future turnover (group share) of a project or all projects in the current portfolio value External view Official IFRS reported figures of the company Internal view External view figures before the application of IFRS 11 Inventory Inventories plus
Slide 25: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by receiving and/or reading the The statements included in this presentation are neither reported results nor other historical presentation slides, you agree to be bound by the following limitations: information. These statement