Metrovacesa Sa · BME:MVC
Metrovacesa Sa — H1 2022 Earnings Presentation
32 slides from Metrovacesa Sa's earnings presentation, Jul 29, 2022
Slide 1: Results 1H2022
Illa Natura (Terrassa, Barcelona) Results 1H2022 July 29th, 2022
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Highlights 2. Business Update 3. Financial Overview 4. Closing remarks Appendices Today’s Presenters Jorge Pérez de Leza Borja Tejada Juan Carlos Calvo CEO CFO Strategy & IR 3.
Slide 4: 1. Highlights
Océana Views & Collection (Estepona, Málaga) 1. Highlights
Slide 5: Highlights
Highlights Good performance in a changing context Strong results Successfully managing in 1H 2022 the changing context Total €246.6m +32% YoY • Construction costs Revenues • Cost volatility in 1H • No major impact on timing or margins in the near term EBITDA €23.2m +183% YoY • Housing demand • Some
Slide 6: 2. Business Update
Residencial San Marcos (Santiago de Compostela, A Coruña) 2. Business Update
Slide 7: Key operational data
Key operational data as of June 30th 2022 Active Deliveries / Land Construction Financials projects Sales portfolio Sales Backlog (1) 3,061 €916m €268m Sold units €299 k/unit ASP (2) 3,360 units under construction (3) 952 units delivered €24.5m Total cash in the period Land Sales Under commercializa
Slide 8: Spanish market dynamics (1/2)
Spanish market dynamics (1/2) Construction costs stabilizing Supply: new construction permits, monthly change YoY % Source: MITMA Corrugated-steel price in Spain: Anifer index monthly Source: Cámara de Comercio 120% 270 100% 80% 220 60% 40% 170 20% 0% -20% 120 -40% -28.0% -60% 70 Drop in constructio
Slide 9: Spanish market dynamics (2/2)
Spanish market dynamics (2/2) Positive sectors stats, but deceleration in recent months Demand: number of housing transactions, 3m rolling # units Source: MITMA House prices in Spain: monthly change YoY % 180,000 10% 8.5% 160,000 8% 160,244 6.7% 140,000 6% 4% 120,000 2% 100,000 0% 80,000 -2% 60,000
Slide 10: Pre-sales
Pre-sales 980 net pre-sales in 1H22 Demand and absorption ratios 1H22 pre-sales: 980 units # units • Some slowdown in housing demand in 2Q vs Last 12M presales support future deliveries previous quarters: 412 presales in 2Q and ASP €311k 568 in 1Q # units 990 ASP €288k 980 • Monthly absorption ratio
Slide 11: Residential deliveries
Residential deliveries On track to meet FY22 targeted 1,600-2,000 units 1H22 deliveries Deliveries by province 1H22 # units €241m % of total units 1,000 952 900 Strong visibility on full-year deliveries 800 €175m 60% 700 645 of full-year target(1) • Execution: nearly 100% of 600 construction works c
Slide 12: Operational activity
Operational activity Providing high visibility for the next few years Pre-sales backlog Backlog evolution in # units: Units under construction or completed • Avg. unit price (ASP): 3,033 • Works execution without €299k (+6.7% vs. Dec.21) 980 (952) 3,061 significant disruptions: 759 units • 72% contr
Slide 13: Land activity
Land activity Land management progress in 1H Progress on land sales and management Palmas Altas / Isla Natura (Seville) • 2,000 units, fully permitted Land sales in 1H 2022 • Urbanisation works ongoing and recent approval of the South access • Already received building license for the first few resi
Slide 14: Commercial segment
Commercial segment Deal progress in 1H Puerto Somport (Madrid) Oria (Madrid) New lease of 5,200 sqm office space: Deal with VITA to develop a large student residence: • With a multinational company, on a long-term lease contract • Joint development of a student residence building • On-going negotiat
Slide 15: Oria Innovation Campus
Oria Innovation Campus Next to the former Clesa factory • Oria is MVC’s largest commercial development project, with 89,000 sqm of mixed uses and a total estimated investment of €330m • Located in Madrid, next to the former Clesa factory. An attractive location, close to two major hospitals (Ramón y
Slide 16: Sustainability and ESG
Sustainability and ESG Making progress on our ESG commitments • 100% of developments launched in 1H 2022 are expected to obtain sustainability certifications • 41% of developments launched in 1H 2022 are targeting AA Efficient Energy Rating Certifications E Environment • Member of Clúster de la Edif
Slide 17: 3. Financial Overview
Meissa 28 (Torre del Mar, Málaga) 3. Financial Overview
Slide 18: Profit & Loss
Profit & Loss Summary €m 1H 2021 1H 2022 % Change +31.6% rise in 187.4 246.6 +31.6% total revenues Revenues Development 175.0 240.8 Land sales 12.4 5.8 21.0% gross Gross Profit 31.3 50.9 62.5% development Development 25.8 margin 50.6 % gross margin dev`t 18.5% 21.0% Land sales (1.0) 0.2 EBITDA of €2
Slide 19: Cashflow
Cashflow Summary Cashflow €m 1H 2021 1H 2022 + EBITDA 8.2 23.2 - Net financial expenses paid (5.0) (3.3) - Corporate taxes paid 0.0 (2.5) €76.3m + Land monetisation: Gross operating Book value of land sold (1) 12.4 5.6 cashflow Cashflow related to COGS of deliveries (land only) (2) 40.8 50.5 deliver
Slide 20: Net debt
Net debt Solid financial structure Net debt details Evolution of net debt and LTV ratio €m Dec. 2021 Jun. 2022 300 8.5% 9% Total cash Developer loans 55.9 35.4 €268m 8% 250 6.6% 7% Corporate debt 338.6 324.1 6.2% 200 228.4 6% Gross Financial Debt 394.5 359.5 €189.6m unrestricted cash 5% Unrestricted
Slide 21: Asset appraisal
Asset appraisal NAV of €15.52 per share, +1.8% incl.dividend Like-for-like • +3.2% residential use • 75% residential GAV total +2.7% • +0.9% commercial uses €2,566m • 25% commercial vs.Dec.21 Net Asset Value, €/sh Portfolio value (GAV) breakdown, € m 25% 632 17% 0.60 +1.8% incl. dividend 21% 450 2,5
Slide 22: 4. Closing Remarks
Xardins da Gaiteira (A Coruña, Galicia) 4. Closing Remarks
Slide 23: Update on shareholding structure
Update on shareholding structure CEC-FCyC has a 17.23% in MVC after the partial bid(1) Partial public bid completed in June Current Shareholder Structure 23 March: FCyC announces bid for 24% of MVC at €7.8/share 49.36% 20.85% 04 May: bid price is reduced to €7.2, adjusting for the €0.6 dividend CEC
Slide 24: Closing remarks
Closing remarks Good progress on targets and strategy Confirmation of Reinforcement of MVC Strategy full-year targets Housing • Reinforce leading position in Spain • 93% presold Housing 1.6k to 2.0k development • Increase activity to 2.0k-2.5k units p.a. • Almost 100% deliveries units construction f
Slide 25: Appendices
Residencial Aida (Sagunto, Valencia) Appendices
Slide 26: Profit and Loss
Profit and Loss (€m) 1H 2021 1H 2022 YoY A Total Revenues 187.4 246.6 32% Residential Development Land Sales 175.0 12.4 240.8 5.8 Key comments Total COGs (156.1) (195.7) Residential Development (142.7) (190.2) Land Sales (13.5) (5.6) A -Total revenues of €246.6m (up 32% YoY) B Gross Margin 31.3 50.9
Slide 27: Balance Sheet
Balance Sheet (€m) Dec.21 Jun.22 Investment Property 417.0 298.2 Other non-current assets 159.5 169.4 Total non-current assets 576.5 467.6 Inventory 1,844.0 1,900.8 Land 992.5 966.9 WIP & finished product 851.6 933.9 Cash 299.6 268.3 Other current assets 56.9 57.5 Total current assets 2,200.4 2,226.
Slide 28: GAV and NAV
GAV and NAV Details Net Asset Value calculation, € m GAV evolution, € m Eur m Dec.2021 Jun.2022 Dec Jun 2021 Shareholders’ funds 2,079.6 2020 2,000.8 69.5 130.3 +/- Capital gains gross 265.4 296.9 (232.9) +/- Other adjustments 54.9 56.0 = NAV gross 2,399.9 2,353.7 +/- Taxes on capital gains (66.4) (
Slide 29: Portfolio by provinces
Portfolio by provinces Strong presence in the key areas Top 6 provinces: 73% of GAV Portfolio details by province <1% 4% Ranked by % GAV June 2022 1% <1% GAV (%) # of resi units <1% 1% 19% Fully Under Location Total Resid. Commer Total permitted permitting 2% <1% Madrid 25% 17% 49% 4.6k 0.8k 3.8k Ba
Slide 30: Data series
Data series Evolution of key operating data # Units 2018 2019 2020 2021 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Pre-sales in the period 888 1,511 1,037 2,093 263 27 505 242 407 549 590 547 568 412 Backlog of presales (units) 909 2,131 2,568 3,033 2,248 2,195 2,637 2,568 2,678 2,878 3,034 3
Slide 31: Client profile
Client profile Location, price, age, motivation and financing Units in commercialization by province MVC Client profile: type of acquisition Price range of sales: k€ per unit ASP units in % units 82% of offer between €150k-€400k commercialization Mostly 1st residence product for middle classes Barce
Slide 32: Q&A
Residencial Dora Maar (Marbella, Málaga) Q &A