Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Non-Deal Roadshow (May 2010)
61 slides from Immobiliare Grande Distribuzione SIIQ's roadshow presentation, May 2010
Slide 1: Roadshow Presentation
Roadshow Presentation Kempen May 2010
Slide 2: Disclaimer
2 Disclaimer This presentation contains forwards-looking information and statements about IGD SIIQ SPA and its Group. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements reg
Slide 3: Index
3 Index IGD Group 4 2010 1Q Results 15 Approved by BoD on 13 May 2010 2009 FY Results 26 Approved by BoD on 11 March and by AGM on 22 April 2010 2009-2013 Business Plan 44 Approved by BoD on13 November 2009
Slide 4: Agenda: IGD Group
Agenda 4 IGD GROUP
Slide 5: Group Structure & Shareholders
Group Structure & Shareholders 5 Shareholders 100% 100%* 100% Immobiliare Faenza Millennium Larice Sviluppo Gallery 15% 100% 60%** 50% Iniziative WinMagazine Bologna Nord Source: CONSOB 100% 100% 100% WinManagement RGDGestioniSrl New MallSrl * Project of merger by incorporation in IGD SIIQ Spa appro
Slide 6: The IGD Governance
The IGD Governance 6 IGD BOARD OF DIRECTORS: Lead Non- Int. control Nomination Compensation Independent Name Role executive Executive Independent Committee Committee Committee Director Gilberto Coffari Chairman X Sergio Costalli Vice-Chairman X Claudio Albertini CEO X Roberto Zamboni Director X Leon
Slide 7: Italian portfolio
Italian portfolio 7 REGIONS WITH IGD PRESENCE 11 MARKET VALUE (included RGD) as of 31/12/2009 1,537.26 €/mln Freehold properties: 44 (including RGD assets and excluding the lands) LEASEHOLD PROPERTIES: 18 N. footfalls(total portfolio): 53.9 mln. N. footfalls (LfL): 42.3 mln. Tenants: nr. 885 Yield S
Slide 8: Winmarkt's Portfolio
8 Winmarkt’s Portfolio Presence in Romania in 13 medium size cities. No properties in Bucarest. Freehold properties: 15 Shopping Malls 1 office building MARKET VALUE as of 31/12/2009 187.6 €/mln Tenants: nr. 752 Yield: 8.96% Occupancy: 77.50%
Slide 9: Breakdown of the portfolio's market value and revenues
Breakdown of the portofolio’s market value and revenues 9 Breakdown by type of the revenues at 31 December 2009 14.95% 24.02% 61.03% Shopping malls Hypermarkets Romania
Slide 10: Shopping Malls' Merchandising Mix
Shopping Malls’ Merchandising Mix SPORT 11% SERVIZI SPORT 10% ABBIGLIAMENTO SERVICES 38% CLOTHING & FOOTWEAR RISTORAZIONE 8% BARS & CASA RESTAURANTS 4% PERSONA HOBBY&MEDIA 12% 17% HOME PERSONAL HOBBY&MEDIA CARE
Slide 11: Main lease terms
11 Main lease terms for: Shopping Malls Hypermarkets Main lease terms: Main lease terms: Average maturity: Average maturity: 18 years + 6 years lease agreement of the going concern 6 years + 6 Rents indexation: 75% of FOI (ISTAT index for workers rental agreement: 5 years and employees families) Ren
Slide 12: Tenants in IGD Italian shopping malls
12 Tenants in IGD Italian shopping malls INTERNATIONAL AND PREMIUM BRANDS Stimulate new traffic for the whole mall Refresh the offer mix Are ideal targets for new galleries – facilitate pre-letting
Slide 13: Romania – Partnerships and agreements 2009 and 2010
Romania – Partnerships and agreements 13 2009 and 2010 Enhance the value of the real estate assets in Romania EXECUTION OF ANNOUNCED by improving the consumer appeal and, consequently, STRATEGY the traffic for the centre operators Announced: on March, 16 2009 3 centres: Turda, Bistrata, Cluj Contrac
Slide 14: The first and sole Italian SIIQ
The first and sole Italian SIIQ 14 ASSET & REVENUE TEST – the ‘must be’ be’ % KEY FEATURES At least 80% of total assets must be- be-> rental assets At least 80% of total positive components of P&L (excl. Change in FV) must be -> rental income INCOME TAXATION -Exemption from Italian Corporate taxatio
Slide 15: Agenda: 2010 1Q Results
Agenda 15 2010 1Q Results Approved by BoD on 13 May 2010
Slide 16: Highlights
vs 16 Highlights cons vs 2009 1Q cons 2009 1Q Revenues: 28.08 €/mn +12.5% Ebitda: 20.10 €/mn +17.7% Ebitda Margin: 71.6% +4.7% Net Profit: 8.46 €/mn +15.9% FFO: 9.89 €/mn +11.6%
Slide 17: Net profit
17 Net profit NET PROFIT (€ mn) 9.00 + 15.9% 8.00 8.46 7.00 7.30 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2009 1Q 2010 1Q NET PROFIT EVOLUTION (€ mn) 0.05 3.03 2.40 0.48 8.46 7.30 20091Q Net Profit Change Ebitda Change Change Change taxes 2010 1Q Net Profit depreciation & fv financial charges
Slide 18: Reclassified Income Statement
Reclassified Income Statement 18 €/mn 2009 1Q 2010 1Q ∆ % Revenues from freehold properties 21.47 24.88 3.41 15.89% Revenues from leasehold properties 2.55 2.03 (0.52) (20,34%) Revenues from services 0.92 1.12 0.20 21.69% Different Revenues 0.03 0.05 0.02 83.52% Total revenues 24.97 28.08 3.11 12.47
Slide 19: Revenues: +12.5%
19 Revenues: +12.5% TOTAL REVENUES (€ mn) 35.00 30.00 29.90 25.00 26.81 20.00 15.00 10.00 5.00 0.00 2009 1Q 2010 1Q 0.62 0.10 RENTS GROWTH (€ mn) 1.38 2009 1Q vs. 2010 1Q 4.90 2.89 0.09 LIKE FOR LIKE GROWTH 2009 PURCHASES 2009 EXIT 2010 EXIT ROMANIA TOTAL GROWTH
Slide 20: Ebitda: +17.7% and Ebitda Margin: 71.6%
20 Ebitda: + 17.7% and Ebitda Margin: 71.6% EBITDA e EBITDA MARGIN (€ mn) EBITDA TREND (€ mn) 71.6% 3.11 0.03 0.11 0.06 20.10 20.10 17.07 68.4% 17.07 1Q 09 Ebitda Change in Change Change Change G & A 1Q 10 Ebitda 2009 1Q 2010 1Q revenues inventories Direct Costs DIRECT COST (€ mn) G & A (€ mn) 6.00
Slide 21: Financial Highlights
21 Financial Highlights Total portfolio mkt value 1.72 €/billion Gearing ratio 1.37x LTV 56.7% Hedging level 66.0% (on long term debt + bond)
Slide 22: Reclassified Balance Sheet and Gearing ratio
22 Reclassified Balance Sheet and Gearing ratio Sources/use of funds 2009 FY 2010 1Q ∆ ∆% Fixed assets 1,760.35 1,767.12 6.77 0.39% NWC 96.49 96.45 -0.04 - 0.05% Other long term liabilities -81.49 -83.28 -1.79 2,20% TOTAL USE OF FUNDS 1,775.35 1,780.29 4.94 0,28% Net Debt 1,027.82 1,029.08 1.26 0.12
Slide 23: Financial remarks
23 Financial remarks 31.12.2009 31.03.2010 LTV 56.88% 56.71% % HEDGING ON MORTGAGES+BOND 66.61% 66.03% AVERAGE COST OF DEBT 3.53% 3.63% FIXED COST OF MORTGAGES 4.14% 4.14% BANKING CONFIDENCE 327.50 €/mn 327.50 €/mn BANKING CONFIDENCE AVAILABLE 178.00 €/mn 199.00 €/mn ASSET AVAILABLE TO GUARANTEE NEW
Slide 24: Net Debt
Net Debt (€ mn) 24 NET DEBT COMPOSITION (€ mn) 24.95 33.63 841.86 1,029.08 49.78 128.76 Short term debt Current share of Long term debt Options value Cash & Net Debt long term debt cash equivalents NET DEBT CHANGE (€ mn) 8.46 0.48 0.04 0.36 5.82 4.78 1,029.08 1,027.82 Dec 31, 2009 Net Debt Net profi
Slide 25: Funds From Operations
25 Funds From Operations Funds from Operations 2009 1Q 2010 1Q ∆ ∆% Profit before faxes 9.08 9.76 0.05 7.49% Depreciation 0.16 0.21 0.05 32.41% Devaluation 0.00 0.00 0.00 0.00 Change in fair value 0.37 0.27 -0.10 -26.65% Taxes -0.75 -0.35 0.41 -54.00% FFO 8.86 9.89 1.03 11.63% 12.00 11.6% 10.00 8.00
Slide 26: Agenda: 2009 FY Results
Agenda 26 2009 FY Results Approved by BoD on 11 March and AGM on 22 April 2010
Slide 27: 2009 Macro Economic Scenario
2009 Macro Economic Scenario 27 Italy GDP (source: ISTAT) - 5.1% INFLATION (source: ISTAT) + 0.8% EURIBOR 3M (avg year 2009) 1.225% CONSUMPTION (source: ISTAT) - 1.9% Romania GDP - 8.0% (source: the Romanian National Statistics Bureau) INFLATION + 4.7% (source: the Romanian National Statistics Burea
Slide 28: Main events in 2009
Main events in 2009 28 4 new openings/acquisitions Tiburtino a Guidonia (April) New BoD and Board of Statutory Auditors and new CEO (April) Katanè a Catania (May) Le Maioliche a Faenza (June) New 2009/2013 Business Plan (November) I Bricchi ad Asti (December)
Slide 29: Highlights 2009
29 Highlights 2009 vs. 2008 Revenues € 119.65 mn + 17.95% EBITDA € 76.29 mn + 29.47% FFO € 39.66 mn + 27.9% Mkt Value of IGD portfolio at + 21.2% year-end € 1,724.855 mn NNAV ps € 2.47 + 0.82% Dividend ps € 0.05 + 42.86%
Slide 30: Net Profit
30 Net Profit NET PROFIT (€ 000) NET PROFIT CHANGE (€ 000) 8,739 3,278 17,362 34,831 43,337 20,408 FY08 net profit Ebitda change Change in Change in Change FY09 net profit depreciation net fin.charges in taxes & Fair Value &extraord. items The € 22.9 mn decrease in Net Income vs. FY08 reflects: + a
Slide 31: Reclassified Income Statement
31 Reclassified Income Statement €/000 FY 2008 FY 2009 Change % Revenues from freehold properties 77,008 97,813 20,805 27.02% Revenues from leasehold properties 11,190 8,515 (2,675) (23.90%) Revenues from services 4,425 6,315 1,890 42.72% Corporate revenues 82 17 (65) (79.24%) Total revenues 92,705
Slide 32: Total Revenues: +17.95%
32 Total Revenues: + 17.95% Total revenues (€ 000) Investments made in 2008 and in 2009 drove FY09 topline growth REVENUE GROWTH DRIVERS (€ 000) 357 3,046 13,605 18,130 3,881 121 3,212 LFL RENTAL ROMANIA 2008 2009 CENTRONOVA 2009 OVERALL INVESTMENTS INVESTMENTS REFURBISHMENT CENTRONOVA GROWTH GROWTH
Slide 33: Ebitda: +29.47%, Ebitda Margin 67.71%
33 Ebitda: + 29.47%, Ebitda Margin 67.71% EBITDA EVOLUTION (€ 000) 226 101 19,955 2,718 67.71% 76,287 58,925 63.56% FY08 Ebitda Change in Change in Change in Change in FY09 Ebitda revenues inventories Direct costs G&A exp. G&A expenses 10,000 9,000 9,589 9,488 8,000 7,000 6,000 5,000 4,000 3,000 2,0
Slide 34: Financial highlights
34 Financial highlights Total portfolio 1,725 €/mln Gearing ratio 1.37x LTV 56.9% Hedging level 66.6% (on long term debt + Bond) NNAV per share 2.47 € (as of Dec. 09)
Slide 35: Reclassified Balance Sheet
35 Reclassified Balance Sheet SOURCE / USE OF FUNDS (€ 000) 31 Dec. 2008 31 Dec. 2009 ∆ % Fixed assets 1,516,187 1,760,342 244,155 16.10% NWC 42,759 96,500 53,741 125.68% Other long term liabilities -82,164 -81,492 672 -0.82% TOTAL USE OF FUNDS 1,476,782 1,775,350 298,568 20.22% Shareholders’ equity
Slide 36: Capital structure
36 Capital structure CAPITAL STRUCTURE (€ 000) 1.37 Shareholders’ equity 0.99 747,533 742,877 Net Financial Debt 1,027,817 733,905 Gearing FY08 FY09 NET DEBT COMPOSITION (€ 000) 36,544 33,289 833,371 1,027,817 47,409 150,292 Short-term debt Current share of Long-term debt Options value Cash and liqu
Slide 37: Finance
37 Finance Well below the peak gearing of 1.5X (expected in GEARING (D/E) = 1.37x 2011) Well below the breach level of any covenants Below the 65% limit LTV = 56.9% LT debt weight = 81.1% at YE BALANCED CAPITAL STRUCTURE LT debt duration = 12 y Average cost of debt: 3.53% LOW COST OF DEBT Presently
Slide 38: New convertible bond conditions
38 New convertible bond conditions (Amount 230,000,000) Was 28th June, 2012; new exp. date: 28th Dec. 2013 LENGTHENING OF THE EXPIRATION DATE --> + 18 months Was 4.93€; new strike price: 2.75€ from 29th June, LOWER STRIKE PRICE 2010 Formerly 2.5% (last annual coupon to be paid on HIGHER COUPON 28th
Slide 39: Market Values, occupancy rates and yields
39 Market Values, occupancy rates and yields € mn Mkt Value 2008YE Mkt Value 2009YE LFL Italian real estate portfolio 994.48 982.50 Assets generating revenues from 2009 368.00 Asset held for trading + plot of lands * 149.65 113.29 50% of RGD Portfolio 78.96 73.47 Winmarkt Portflolio Romania 200.10 1
Slide 40: Market value evolution
40 Market value evolution Market value of IGD freehold properties is € 1,724.86 mn as of 31Dec09, including 50% of RGD assets. IGD real estate portfolio growth of 21.2% was driven by new entries: market value of assets bought in 2009 (Guidonia, Catania, Faenza and Asti). LFL market value change indi
Slide 41: NAV
41 NAV FY08 FY09 NNAV ps (€) Freehold Assets' Market Value a 1,423.20 1,724.86 Freehold Assets' Book Value b 1,421.24 1,726.02 2.45 2.47 2.40 1.96 (1.17) 1.95 2.06 Potential capital gain/loss c=a-b Shareholders' Equity 742.88 747.53 2005 2006 2007 2008 2009 Treasury shares 22.25 22.25 Adjusted Share
Slide 42: Dividend distribution
42 Dividend distribution The AGM, on April 22 approved the distribution of a 0.05 € DIVIDEND PER SHARE representing: - A 42.85% increase (+0.015 €) vs. the FY08 dividend per share of 0.035 €. - A 94% payout of 2009 net distributable income. - A dividend yield of 3.2%, on the basis of 2009 year-end s
Slide 43: Final remarks
43 Final remarks OUTLOOK Asset values stabilizing Consumptions expected to remain weak in Italy in 2010 FOCUS Execution of 2009-2013 business plan Continued marketing effort to support tenants profitability and keep occupancy high
Slide 44: Agenda: 2009-2013 Business Plan
Agenda 44 2009-2013 BUSINESS PLAN Approved by BoD on13 November 2009
Slide 45: Why a new plan?
Why a new plan? 45 REASONS METHODOLOGY Substantial changes in Preliminary focus on clear strategic macroeconomic scenario guidelines 1-year lengthening of Bottom-up process, involving all time horizon Æ 2013 functions and areas Establishment of a planning process on a regular basis …and a new CEO
Slide 46: Business Plan Targets 2009-2013
Targets 46 2009-2013 BUSINESS PLAN TARGETS INVESTMENTS Ca 750 € Topline and FV growth (cash out) driven by new investments mn YIELD 6.3-6.5% LFL rents slightly above LFL RENTAL forecasted CPI REVENUES CAGR 1.6% without RGD OVERALL RENTS EBITDA growing faster than GROWTH (’09-’13) CAGR +9.8% rents OV
Slide 47: Assumptions - Italy
Assumptions - Italy 47 2010 2011 2012 2013 CPI Italy +1.3% +1.5% +1.5% +1.5% 2009 2010 Small-sized areas the ones suffering more Italy Food consumptions* -2,0% -0,2% Customers changed their habits, buying products with a lower per unit price, in order Italy Non-food consumptions* -3,9% -1,7% to re-b
Slide 48: Retail property market in Italy – 1/2
Retail property market in Italy – 1/2 48 Retail rents (€/sqm/year) Yields (%) •Source: Jones Lang LaSalle, October 2009 •Source: Jones Lang LaSalle, October 2009 Key findings by J.L.LaSalle research: Crisis in consumption led large retail players to generally re-evaluate their new openings plans; ju
Slide 49: Retail Property Market in Italy – 2/2
Retail Property Market in Italy – 2/2 49 FAIR VALUE EVOLUTION EXPECTED 2009 2010 2011 2012 2013 Caution Moderate optimism 9Focus on committed pipeline 9New investment opportunities 9Re-qualify existing portfolio Stable LFL rental revenues Moderate growth in rental revenues Fair Value of IGD Italian
Slide 50: Investment strategy – main drivers
50 Investment strategy – main drivers TOP PRIORITY: EXECUTION OF COMMITTED PIPELINE NEW INVESTMENTS EXISTING PORTFOLIO Shopping centres in our pipeline are designed to be Preserve high quality of assets functional and take in consideration local consumptions patterns Expansion, re-stylings, overall
Slide 51: Investment pipeline 2009-2013
Investment pipeline 2009-2013 51 2009-2013 INVESTMENT PIPELINE smq GLA Vigevano Guidonia 40,000 Gallery in a mall with a hypermarket Gorizia Rovereto Catania Gravina 15,000 Gallery in a mall with a hypermarket Asti Catania Hypermkt 12,000 Hypermarket Conegliano Faenza 32,000 Gallery in a mall with a
Slide 52: Investments – Timetable and amounts
Investments – Timetable and amounts 52 Investment Cash out Previous 2009 2010 2011 2012 2013 total total €'mln Years in the Plan Invest. Apr-09 GUIDONIA 90.0 118.5 May-09 CATANIA GALLERIA 14.4 59.0 Oct-09 CATANIA IPER 39.5 39.5 June-09 FAENZA 85.3 85.3 Dec- 09 ASTI 5.1 45.0 Apr-10 ROVERETO 2.5 2.5 P
Slide 53: Disposals
Disposals 53 We expect some 60 to 70 mn € proceeds from disposals over the 2009- 2013 period SALE OF TREASURY SHARES* 9May 2010 DISPOSAL OF A 20% STAKE IN PORTA MEDICEA 9Work in IN ROMANIA, DISPOSAL OF 4 ‘VALUE’ SHOPPING MALLS AND OF 1 OFFICE BUILDING progress (*) Not before 2011: sale of 10,976,592
Slide 54: Commercial strategy - Operating in a new environment
Commercial strategy - Operating in a new environment 54 New trends in a changing scenario IN THE PAST… …WHILE CURRENTLY PROACTIVE SELECTION Tenants’ presence led by IGD carefully selects tenants OF TENANTS expansion plans of large retail IGD careful tenant selection brands ANCHOR Food areas reduced
Slide 55: Occupancy rates and leases expirations
Occupancy rates and leases expirations 55 Occupancy expected stable throughout 2013 OCCUPANCY RATES HYPERMARKETS GALLERIES 100% 98% 40% of total contracts to be renewed by 2013 70.0% 59.5% 60.0% 50.0% 40.0% 30.0% 20.4% 20.0% 5.6% 6.3% 8.2% 10.0% 0.0% 2010 2011 2012 2013 > 2013
Slide 56: Merchandising mix is critical
56 Merchandising mix is critical NEW TRENDS …AVOID REPEATING THE SAME MERCHANDISING MIX A more limited weight for EVERYWHERE… apparel New malls designed to target …IN PARTICULAR WHEN specific customers FOCUSING ON CENTRES WITH SMALLER GLA, IN MAIN ITALIAN CITIES Offer will be divided into ‘worlds’ –
Slide 57: Romania still enhancing consolidated EBITDA margin
Romania still enhancing consolidated EBITDA margin 57 STRONG RESILIENCE OF In 2009 we limited the impact of an 8% drop in GDP thanks to the strong REVENUES AND MARGINS position of our shopping centres (downtown locations). We also benefited from an anticipated execution of commercial strategy. In li
Slide 58: Human Resources
Human Resources 58 Fast growth in headcounts driven by the quick property portfolio expansion 180 160 140 54 64 120 65 100 Romania 80 Italy 60 111 99 A YOUNG AND HIGH-PROFILE STAFF 40 85 73 57 20 38 27 Avg. age: 37 0 2004 2005 2006 2007 2008 2009 2013 College graduates:73% We feel we are adequately
Slide 59: Finance strategy
Finance strategy 59 Gearing will likely peak in 2011 PEAK GEARING (D/E) = 1.5 x 1.5 x was already in the previous plan’s target set Never exceeded in the past Well below the breach level of any covenants 59% at 31 Oct 09 with a market value of 1,719.1 € KEEP LTV < 65% mn At 31 Oct 2009 LT debt weigh
Slide 60: Further growth options
Further growth options 60 Over the coming years we are committed to executing a challenging growth plan and to improving IGD’s margins ON TOP OF THIS: FURTHER GROWTH OPTIONS AVAILABLE ATTRACTION OF RETAIL PROPERTY PORTFOLIOS LEVERAGING ON THE FISCAL EFFICIENCY OF OUR ‘SIIQ STATUS’ ASSETS FROM THE CO
Slide 61: Contacts
Contacts 61 IGD Immobiliare Grande Distribuzione SIIQ SpA www.gruppoigd.it IR TEAM Claudia Contarini, IR Team T. +39 051 509213 M. +39 3386211738 claudia.contarini@gruppoigd.it Elisa Zanicheli, Assistant T. +39 051 509242 elisa.zanicheli@gruppoigd.it