Polski Holding Nieruchomosci Sa · GPW:PHN
Polski Holding Nieruchomosci Sa — H1 2013 Earnings Presentation
35 slides from Polski Holding Nieruchomosci Sa's earnings presentation, Sep 3, 2013
Slide 1: Consolidated financial results for H1 2013
Prestigious addresses on the commercial map of Warsaw Consolidated financial results for H1 2013 Presentation 3 September 2013 Strictly confidential. Material distributed solely to its addressees. 1
Slide 2: Participants in today's meeting
Participants in today’s meeting Paweł Laskowski-Fabisiewicz Włodzimierz Stasiak Deputy President of the Member of the Management Management Board Board, CFO 2
Slide 3: Agenda
• Key achievements in H1 2013 • Market environment • Financial results • Additional information 3
Slide 4: PHN Group in numbers as at 30.06.2013
PHN Group in numbers as at 30.06.2013 RENTAL REVENUES (PLN million): GROUP ASSETS (PLN million): GROSS RENTAL SPACE (m2): 68.2 2.254.8 305.605 In Hi 2013 the Group maintained stable rental As at 30 June 2013 Group assets amounted to The Group holds totally 305.605 m2 of gross results of PLN 68.2 mil
Slide 5: Achievements of the PHN Group in 2013 (1/2)
Achievements of the PHN Group in 2013 (1/2) Polski Holding Nieruchomości S.A. had a success debut at the Warsaw Stock Exchange. The offer met with a good response on the part of investors. Starting from 24 June 2013, in line with the quarterly update of index participants made after the session of 2
Slide 6: Achievements of the PHN Group in 2013 (2/2)
Achievements of the PHN Group in 2013 (2/2) Disinvestment process commenced with success (one preliminary contract was concluded and after the balance sheet date one preliminary contract and one final contract were concluded). In H1 2013 the Foksal and Rakowiecka projects were continued and the Doma
Slide 7: Achievements of the PHN Group after the balance-sheet date
Achievements of the PHN Group after the balance-sheet date In August 2013, Intraco S.A. contributed an enterprises composed of a set of tangible and intangible assets for business operations, to SPV. As a result of the transaction, requirements were satisfied of IAS 12 § 39 and consistently in Q3 20
Slide 8: Implementation of strategic objectives
Implementation of strategic objectives IMPLEMENTATION OBJECTIVES A Commencement to the change process of Group Adjustment of the Group structure to business Change of the structure: contribution of the business of Intraco needs and market standard and allocation of Capital Group to PHN SKA and prepa
Slide 9: Structure of tenants of the PHN Group as at 30.06.2013
Structure of tenants of the PHN Group as at 30.06.2013 Portfolio* - split by the number of tenants Characteristics of tenants % of total % of total 1.241 tenants 4%4% 9% 8% usułgi biznesowe mieszkaniowe oraz 2% 4% pozostałe 1% klienci indywidualni biurowe 25% media 14% przemysł handlowe FIRE 58% log
Slide 10: Agenda
• Key achievements in H1 2013 • Market environment • Financial results • Additional information 10
Slide 11: Market environment and development prospects
Market environment and development prospects According to the recent publication by Consensus Economics Forecast, Poland’s GDP in 2013 will grow by 1.1% which will be slower than last year. However, for 2014 an economic recovery is expected and GDP is to grow by 2.5%. (Jones Lang LaSalle, Polish mar
Slide 12: Poland's macroeconomic condition
Poland’s macroeconomic condition According to the recent publication by Consensus Economics Forecast, Poland’s GDP in 2013 will grow by 1.1% which will be slower than last year. However, for 2014 an economic recovery is expected and GDP is to grow by 2.5%. (Jones Lang LaSalle, Polish market of offic
Slide 13: Office property market – Poland
+ 17.9 Office property market – Poland Rates of return on the best The demand for office space in Poland recorded in the first two properties in Poland quarters was about 522 000 m2. (Colliers International, Review of commercial properties in Poland - H1 2013) Transactions in the Warsaw office marke
Slide 14: Office property market - Warsaw
Office property market - Warsaw New supply of office space (m2) and Demand for office space: unoccupied space ratio (%) In the first half of 2013 the office space market in Warsaw was characterised by moderate demand. Supply of office space: In 2013 the largest volume of new office space is to be de
Slide 15: Agenda
• Key achievements in H1 2013 • Market environment • Financial results • Additional information 15
Slide 16: Good sales results
Good sales results [PLN million] Result on rental - 0,5 Maintenance of the current results on rental despite decreasing revenues resulting from economic slowdown and growing + 4,8 19,3 18,6 18,8 demand. 37,4 32,6 The major improvement of the results in H1 y/y by PLN 4.8 million (15%) as a result of
Slide 17: Further reduction of administrative costs and improved net profit on sales
Further reduction of administrative costs and improved net profit on sales [PLN million] Administrative costs Major reduction of administrative expenses in H1 y/y + 6,6 by PLN 7.2 million (24%) as a result of consistent + 7,2 operational restructuring, including centralisation of management and head
Slide 18: Systematic reduction of salary expenses
Systematic reduction of salary expenses [PLN million] Headcount (number of persons) - 459 744 Reduced headcount by 459 persons (62%) over 475 six quarters to 285 persons as at 30 June 2013. 331 285 31.12.2011 30.06.2012 31.12.2012 30.06.2013 Salaries and benefits + 5,0 + 12,3 Reduction of salary and
Slide 19: EBITDA growth
EBITDA growth [PLN million] EBITDA Increase of EBITDA in H1 y/y by PLN 15.9 million. + 5,3 In Q2 2013 EBITDA was lower than in Q1 2013 by PLN 1.4 million + 15,9 (21%) with the highest net profit on sales by PLN 3.2 million, mainly 6,6 as a net result of 11,8 5,2 higher severance pay by PLN 1.2 milli
Slide 20: Improved rental profitability ratios by EPRA
Improved rental profitability ratios by EPRA [PLN million] Net profit of rental segment by EPRA EPRA NIY** + 4,1 + 0,5 13,1 4,1% 4,6% 9,0 1H2012 1H2013 2012 2013 H12013 H12012 2013A 2012 Net result in rental segment (14.3) (85.5) Investment properties as per the report on Adjustments 25.9 98.0 finan
Slide 21: Improved P&L structure
Improved P&L structure [PLN million] H12012 H12013 32.6 Profit on rental 37,4 +3.4 Result on development activities +4,5 -1.5 Result on other activities 0,0 -30.1 Administrative costs -22,9 4.4 Net profit on sales 19,0 -120,2 Change in the value of investment properties -31,0 -11.8 Other net income
Slide 22: Reduction of equity
Reduction of equity [PLN million] Net assets Total equity: PLN – 17.6 PLN (-0.9%) Equity attributable to the parent company: PLN – 16.3 million (-1%) Minority interests: PLN -1.3 million (-0.7%) +19.0 1 885.7 +2.6 +2.8 1 868.1 -7.2 -2.2 -1.5 -31.0 -0.1 175.2 173.9 1 710.5 1 694.2 Total equity Adjust
Slide 23: Increased balance of investment properties
Increased balance of investment properties [PLN million] Investment properties -5.2 • PLN 7.3 million of the outlays related to the commercial development projects (mainly Domaniewska, Foksal, Rakowiecka) and PLN 3.5 1 911.5 1 906.3 million of outlays on modernisation of properties. +10.8 +16.8 -31.
Slide 24: Positive cash flows from operating activities in H1 2013
Positive cash flows from operating activities in H1 2013 despite negative impact of extraordinary events [PLN million] Cash flows from operating activities : +1.0 Cash flows from investing activities: - 6.4 18.9 178.6 4.2 173.0 -5.2 -3.5 0.2 3.2 4.7 -5.9 -4.2 -3.3 4.7 -9.8 -0.2 173.9 168.3 Cash and
Slide 25: Material improvement of operating cash flows
Material improvement of operating cash flows [PLN million] Cash flows from operating activities + 24,6 Positive cash flows from operating activities in Q2 2013 mainly as + 33,7 a net result of 9,7 • positive adjusted EBITDA (PLN +8.9 million), 1,0 • settlement/refund of VAT on property sale transact
Slide 26: Additional financial information
Additional financial information 26
Slide 27: Rental – segment result
Rental – segment result 2Q2012 2Q2013 [PLN million]35.2 33.8 -0.5 +2.2 19.3 18.8 +2.8 +1.0 12.2 10.0 8.0 9.0 6.0 4.8 3.0 1.5 3.2 0.9 -6.6 -7.7 -7.7 -9.3 -15.9 -15.0 Rental income Property Gross profit on Administrative Net profit on Other net Depreciation EBITDA Provision, costs of Adjusted maintena
Slide 28: Development activities – result of the segment
Development activities – result of the segment [PLN million] 15.8 2Q2012 2Q2013 -4.1 -3.1 10.9 -2.4 -2.2 7.5 6.1 4.0 3.4 3.8 2.0 1.0 1.6 0.9 0.8 0.4 0.6 -2.1 -1.1 -1.4 -5.5 -9.7 -10.8 Income from Costs of Gross profit on Administrative Net profit on Other net Depreciation EBITDA Provision, costs Adj
Slide 29: Other activities – results
Other activities – results 2Q2012 2Q2013 [PLN million] 1.5 1.1 +0.4 +0.9 +2.4 +0.9 0.2 0.0 0.0 0.0 0.0 0.0 -0.2 0.0 0.0 0.0 0.0 -0.4 -0.5 -0.9 -0.9 -1.5 -1.5 -2.4 Revenues from Costs of Gross profit on Administrative Net profit on Other net Depreciation and EBITDA Costs of Adjusted other other sales
Slide 30: Non-allocated items of consolidated statement of total income
Non-allocated items of consolidated statement of total income [PLN million] 2Q2012 2Q2013 3.0 +2.5 -0.4 0.0 0.2 0.1 0.0 0.1 -1.3 -2.0 -1.8 -1.7 -4.4 -4.3 Administrative costs Other net income and costs Depreciation EBITDA Costs of Group Adjusted EBITDA establishment, restructuring IPO change in PLN
Slide 31: Structure of assets and liabilities
Structure of assets and liabilities [PLN million] Assets Liabilities 2 297.6 2 254.8 2 297.6 2 254.8 Other (51.5m): 2,2% 2,4% Other (53.4m): 6,6% 5,9% Other (133.7m): receivables (26.9 m), receivables (30.4 m), 7,8% 7,7% investment in JV (18.2 m), Other (152m): financial leasing (1.8 m), investement
Slide 32: Agenda
• Key achievements in Q1 2013 • Market environment • Financial results • Additional information 32
Slide 33: Key data and leading recommendations
Key data and leading recommendations Key ratios as at 30.06.2013 * Shareholding structure as at 30.06.2013 Other: 19.95% Number of issued shares 43 384 003 Market capitalisation (PLN million) 1 258.14** AVIVA OFE: 5.05% Book value (PLN million) 1 694.20 Ministry of Treasury: 75.00% P/BV 0.74 ** • *
Slide 34: History of stock prices
History of stock prices From 13.02.2013 r. to 02.09.2013 the price of the PHN S.A. shares was positively standing out in the WIG and WIG Developers index: • PHN change from 13.02.2013 to 02.09.2013: +22,88% • WIG change from 13.02.2013 to 02.09.2013: +5,99% • WIG-DEWEL change from 13.02.2013 to 02.0
Slide 35: Thank you for your attention
Thank you for your attention Polski Holding Nieruchomości S.A. 00-116 Warszawa, ul. Świętokrzyska 36 lok. 30/27 tel. +48 22 52 63 107, fax. +48 22 620 99 60 www.GrupaPHNSA.pl NIP 525-250-49-78, KRS 0000383595, REGON 142900541
Polski Holding Nieruchomości — H1 2013 Earnings Presentation on 6ix