Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — H1 2016 Earnings Presentation
45 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 5, 2016
Slide 1: Results presentation as at 30/06/2016
puntadiferro- Forlì Conference call 5 August 2016 H 2.30 pm CET Results presentation as at 30/06/2016
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
Slide 3: Solid results and improved financial profile
3 Solid results and improved financial profile Excellent operating results… Positive results also in 2Q 2016, that lead to half- year total results yoy : • Retail Sales +4.6% • Footfalls + 1.3% • Increased occupancy both in Italy 97.3% and Romania 95.1 % • FFO 1H2016 +26.3% …despite turmoil on the f
Slide 4: Highlights 1/2
4 Highlights 1/2 REVENUES €67.5 mn • Core business revenues (+8.1% vs 30/06/2015) EBITDA €46.7 mn •EBITDA (core business) (+12.4% vs 30/06/2015) 69.2% •EBITDA margin (core business) ( +2.6 p.ts vs 30/06/2015) •EBITDA margin from Freehold 78.6% •Group net profit € 26.5 mn ( € 20.4mn al 30/06/2015) €2
Slide 5: Highlights 2/2
5 Highlights 2/2 FINANCIAL OCCUPANCY as at 30/06/2016 •ITALY 97.3% 96.8% al 31/12/2015 •ROMANIA 95.1% 93.9% al 31/03/2015 Total portfolio Market Value 2,093.6 €mn Loan to Value 48.2% (vs 47.3% al 31/12/2015) Gearing (D/E) 0.96 (vs 0.93 al 31/12/2015) €1.22 NNNAV (vs 1.25€ al 31/12/2015) 5 August 201
Slide 6: Economic Context
Centro Sarca - Sesto S.Giovanni (MI) ECONOMIC CONTEXT
Slide 7: Macroeconomic context
7 Macroeconomic context Even though economic forecasts were revised downwards, the Italian economy should continue to expand: GDP expected at +0.9% in 2016. * Growth will be mainly driven by consumption, which is expected to increase in 2016 (+1.3% at year end) thanks to an increase in household dis
Slide 8: The retail real estate
8 The retail real estate Retail investments evolution in Italy Total retail investments in 1H2016: approx. €900 mn +40% vs 1H2015 The retail real estate sector in Italy recorded positive results in 1H2016 with a total investment of approx. 900 million of Euro, +40% compared to the same period last y
Slide 9: Economic and Financial Results
Le Porte di Napoli – Afragola (NA) ECONOMIC AND FINANCIAL RESULTS
Slide 10: Revenues
10 Revenues BREAKDOWN OF RENTAL REVENUES BY TYPE OF TOTAL REVENUES (€/000) ASSETS 63,345 Total 68,133 revenues 1.1% +7.6% 590 6.6% 2,558 886 Core 30.7% 2,551 business +8.1% 64,985 61.6% 59,908 CONS 2015 CONS 2016 Core business revenues from rental activities MALLS HYPERMARKETS ROMANIA OTHER Revenues
Slide 11: Rental income drivers
11 Rental income drivers (€/000) ITALY ROMANIA 66,000 +2.2% +2% +8.5% 64,000 -659 85 4,442 62,000 60,000 1,209 58,000 64,985 56,000 59,908 54,000 52,000 50,000 Revenues from rental act 1H_2015 LFL Italy Acquis/Exten/Restyling Disposals+Other LFL Romania Revenues from rental act 1H_2016 LFL: Malls +3
Slide 12: Operating costs and financial management
12 Operating costs and financial management CORE BUSINESS DIRECT COSTS AND G&A EXPENSES (€ 000) Lower weight of operating cost on Revenues 5,317 5,346 Core business Ebidta G&A expenses margin (69.2%) is Direct costs growing: + 260bps 15,561 15,455 Ebitda margin Freehold: 78.6% 30/06/2015 30/06/2016
Slide 13: Group Net Profit: €26.5 mn
13 Group Net Profit: €26.5 mn NET PROFIT EVOLUTION(€ 000) 706 -744 14 809 152 5,161 26,508 20,410 Group Net Profit Change in core Change in "Porta a Change in Change in financial Change in taxes Change in (profit)/loss Group Net Profit 30/06/2015 business Ebitda Mare" project Ebitda depreciations, a
Slide 14: Core business Funds From Operations
14 Core business Funds From Operations Funds from Operations 30/06/2015 30/06/2016 D D% Pre-tax profit 20,952 28,731 7,779 37.1% Of which: Depreciations and other provisions 702 653 -50 -7.0% • + €5.2 mn due to Ebitda increase Change in FV and devaluation -333 -2,369 -2,037 611.9% Extraordinary mana
Slide 15: Operating Performance
Centro Borgo - Bologna FY 2009 RESULTS OPERATING Bologna PERFORMANCE November 11, 2011
Slide 16: Commercial Highlights
16 Commercial Highlights Tenats sales in Italian Shopping Malls +4.6% yoy Footfalls in IGD Italian Shopping Malls +1.3% Footfalls in Italian Shopping Malls +0.7% Footfalls in Romanian shopping malls + 4% L4L (growth especially due to the reduction of the building activities) Hypermarket (in our Shop
Slide 17: Operating performance
17 Operating perfomance Retail sales quarterly trend 6.5% 5.5% 4.5% 3.5% 2.5% 1.5% 0.5% 1q 14 2q 14 3q 14 4q 14 1q 15 2q 15 3q 15 4q 15 1q 16 2q 16 -0.5% Retail sales and footfalls monthly trend (change 2016/2015) 10.00% 8.0% 7.6% 7.0% 6.9% 5.00% Trends of retail sales 5.8% 4.9% 1.9% 2.8% and footfa
Slide 18: Asset management activities (1/2)
18 Asset management activities (1/2) Effective restyling and remodeling activities in shopping center’s areas, with works on the merchandising mix (new food court concept and focus on personal services) and the liveability of the spaces in the mall to make it more and more attractive Bologna Interna
Slide 19: Asset management activities (2/2)
19 Asset management activities (2/2) Palermo Space remodeling and insertion of a multiplex Total sales +11.7% (2016 vs 2015) Afragola (NA) Hypermarkets remodeling and new tenants Total sales +12.6% (2016 vs 2015) 5 August 2016 Results presentation as at 30/06/2016
Slide 20: Sustainability: BREEAM certified
20 Sustainability: BREEAM certified In addition to the ISO14001 certification obtianed in 2013, in June the Sarca Shopping Center has obtained the BREEAM environmental certification. It is the FIRST and the ONLY center in Italy to HAVE a double environmental certification. Main activities: Building
Slide 21: Portfolio
Katanè - Catania FY 2009 RESULTS PORTFOLIO Bologna November 11, 2011
Slide 22: Market Value evolution
22 Market Value evolution € mn Mkt Value Mkt Value 31/12/2015 30/06/2016 Malls + Hypermarkets + Other Italy 1,775.73 1,784.25 City Center (Piazza Mazzini) 23,70 23.70 Total income related portfolio ITALY 1,799.43 1,807.95 Total income related portofolio Romania 170.60 166.05 TOTAL IGD'S INCOME RELAT
Slide 23: Portfolio characteristics
23 Portfolio characteristics ITALY ROMANIA HYPERMARKET MALLS AVERAGE MALLS Financial Occupancy 100% 95.99% 97.34% 95.13% Market value as at 30 June 2016 €mn 638.31 1,141.08 163.45 Weight on the total value of the portfolio 30.5% 54.5% 7.8% Gla smq 269,623 317,187 79,703 5 August 2016 Results present
Slide 24: NNNAV
24 NNNAV 31-Dec-15 30-Jun-16 D% €'000 € p.s. €'000 € p.s. Total number of shares 813,045,631 813,045,631 1) Group's shareholders equity 1,022,053 1.26 1,014,010 1.25 -0.8% Excludes: Fair Value of financial instruments 34,990 35,417 1.2% Deferred taxes 19,917 19,382 -2.7% Goodwill as a results of def
Slide 25: Financial Structure
Centro Sarca – Sesto San Giovanni (MI) FY 2009 RESULTS FINANCIAL Bologna STRUCTURE November 11, 2011
Slide 26: Achieved new important results
26 Achieved new important results • Rating Baa(3) Stable Outlook assigned by Moody’s: entry into a small Group of Italian companies with Investment Grade rating* • First public issue of an unsecured senior Bond (€ 300 mn; 5 years) at the lowest cost of the Group’s history (coupon 2.50%) • Extension
Slide 27: Effective and well-timed financial management (1/2)
27 Effective and well-timed financial management (1/2) Placement by geographical area 1% 2% 6% Bond issue 2% Italy Type Eurobond Senior Unsecured France 17% Size €300 mln UK Coupon 2.50% BeNeLux Germany&Austria Expiry Date May 2021 62% 11% Switzerland Demand 2 x, #100 orders Other Debt structure aft
Slide 28: Effective and well-timed financial management (2/2)
28 Effective and well-timed financial management (2/2) Rating Improved access to debt capital at more Agency Moody’s Investors Service favourable conditions Rating Baa3 Certified the debt quality and the Outlook Stable financial risk of the Group 350 Current debt maturity Million 300 NET DEBT AV
Slide 29: Financial highlights 1/2
29 Financial highlights 1/2 31/12/2015 30/06/2016 GEARING RATIO (D/E) 0.93x 0.96x LOAN TO VALUE 47.3% 48.2% AVERAGE COST OF DEBT* 3.67% 3.23% *Net of charges on loans (both recurrent and not) INTEREST COVER RATIO 2.15X 2.37X LONG TERM DEBT AVERAGE RESIDUAL MATURITY (bond included) 6.3 years 5.7 year
Slide 30: Financial highlights
30 Financial highlights 31/12/2015 30/06/2016 SHARE OF MEDIUM/LONG TERM DEBT 77.6% 92.5% HEDGING ON LONG TERM DEBT+ BOND 91.6% 95.3% UNCOMMITTED CREDIT LINES €302.5 mn €301.5 mn UNCOMMITTED CREDIT LINES - AVAILABLE €120 mn €275 mn COMMITTED CREDIT LINES - GRANTED AND AVAILABLE - €60.0 mn UNENCUMBERE
Slide 31: Outlook
Puntadiferro - Forlì FY 2009 RESULTS OUTLOOK Bologna November 11, 2011
Slide 32: Update Outlook
32 Update Outlook Outlook stated in March 2016 FFO expected at year end ≈ + 13/15 % August 2016: FFO 2016 outlook reviewed ≈ +15/16% 5 August 2016 Results presentation as at 30/06/2016
Slide 33: Attachments
Centro Borgo - Bologna FY 2009 RESULTS ATTACHMENTS Bologna November 11, 2011
Slide 34: Consolidated income statement
34 Consolidated income statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2015 30/06/2016 D% 30/06/2015 30/06/2016 D% 30/06/2015 30/06/2016 D% Revenues from freehold real estate and rental activities 53,829 58,838 9.3% 53,829 58,838 9.3% 0 0 n.a. Revenues from leasehold real estat
Slide 35: Margin from activities
35 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2015 30/06/2016 % 30/06/2015 30/06/2016 % 30/06/2015 30/06/2016 % Margin from freehold properties 45,874 50,905 11.0% 45,874 50,905 11.0% 0 0 n.a. Margin from leasehold properties 959 1,030 7.4% 959 1,030 7.4% 0 0
Slide 36: Ebitda (core business): €46.7 mn (+12.4%)
Total consolidated Ebitda: €46.4 mn 36 Ebitda (core business): €46.7 mn (+12.4%) CONSOLIDATED EBITDA (€ 000) 105 28 14 5,085 46,429 41,254 Ebitda 30/06/2015 Change in rental and Change in direct costs Change in G&A expenses Change in Ebitda Porta a Ebitda 30/06/2016 services revenues Mare project CO
Slide 37: Contracts in Italy and Romania
37 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKETS AND MALLS EXPIRY DATE OF HYPERMARKETS AND MALLS CONTRACTS ITALY: (% no of contracts) CONTRACTS ITALY: ( % of value) N 23 90% 100% 89.0% 80% N 797 92.0% 70% 80% 70.1% Average residual 60% 69.4% maturity 60% 50% Hyper 8.3 years N 157 N2 40%
Slide 38: Tenants Italy
38 Tenants Italy MALL MERCHANDISING MIX Product Turnover No. of TOP 10 Tenant category impact contracts SERVICES 7% RESTAURANTS clothing 3.2% 11 7% ELECTRONICS Gruppo Miroglio 11% clothing 3.0% 29 PERSONAL CARE, CLOTHING HEALTHCARE 52% 4% clothing 2.9% 9 ENTERTAINMENT 5% CULTURE, LEISURE, GIFT ITEMS
Slide 39: Tenants Romania
39 Tenants Romania MALL MERCHANDISING MIX SUPERMARKETS 11% ELECTRONICS 7% OTHER 32% ENTERTAINMENT CLOTHING 39% 11% TENANT MIX INTERNATIONAL BRANDS 32% LOCAL BRANDS 45% NATIONAL BRANDS 23% 5 August 2016 Results presentation as at 30/06/2016
Slide 40: Market Value evolution
40 Market Value evolution Breakdown of the Portfolio’s appraisals Starting from 1H2016 IGD’s Group real estate portfolio will be appraised by the companies Cbre, Reag ,C&W and, for the first time, JLL. 11% 34% 20% 35% CBRE REAG CUSHMAN&WAKEFIELD JLL 5 August 2016 Results presentation as at 30/06/201
Slide 41: Italian and Romanian portfolio
41 Italian and Romanian portfolio 56 REAL ESTATE UNITS IN 11 ITALIAN REGIONS : 21 Malls and hypermarkets 25 Hypermarkets and supermarkets 14 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 1 city center DIFFERENT MEDIUM-SIZED CITIES 2 plots of land for development 1 property held for trading 6 other 5 Au
Slide 42: Italian and Romanian portfolio
42 Italian and Romanian portfolio MARKET VALUE BREAKDOWN OF IGD’S PORTFOLIO BY IGD’S ITALIAN PORTFOLIO BREAKDOWN BY TYPE OF ASSET GEOGRAPHICAL DISTRIBUTION (mkt value) 1.1% 7.9% 0.2% 4.2% 17.8% 1.5% 30.5% 43.4% 25.8% 54.5% 12.9% HYPER/SUPERMARKETS MALLS LANDS OTHER PORTA A MARE WINMARKT NORTH-EAST N
Slide 43: Net debt
43 Net debt NET DEBT EVOLUTION (€ 000) 34,888 26,508 12,815 199 2,453 1,220 1,009,484 984,815 Net Debt 31/12/2015 Profit for the period attributable to Depreciations/devaluations/chnage Change in NWC Change in other non-current Change in fixed/non-fixed assets Change in shareholders' equity Net DEbt
Slide 44: Reclassified Balance Sheet
44 Reclassified Balance Sheet Sources - Use of funds 31/12/2015 30/06/2016 D % Fixed assets 2,057,039 2,064,466 7,427 0.36% Non-current assets held for sale 0 4,466 4,466 NWC 51,797 54,250 2,453 4.74% Other non-current liabilities (56,828) (54,458) 2,370 (4.17%) TOTAL USE OF FUNDS 2,052,008 2,068,72
Slide 45: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it to @igdSIIQ