Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — H1 2014 Earnings Presentation
47 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 7, 2014
Slide 1: Results presentation as at 30/06/2014
Conference call 7 August 2014 3.30 p.m. Results presentation as at 30/06/2014
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: Highlights 1/2
3 Highlights 1/2 REVENUES € 61.8 mn •Total revenues (+2.1% vs 30/06/2013) € 60.3 mn • Core business revenues (-0.3% vs 30/06/2013) EBITDA € 39.9 mn Masterlease •EBITDA (core business) (-4.3% vs 30/06/2013) of Le Fonti del Corallo •EBITDA margin (core business) 66.1% mall (Livorno) (-2.7 percentage p
Slide 4: Highlights 2/2
4 Highlights 2/2 € 2.13 NNAV per share (€ 2.22 as at 31/12/2013) Changes Total Portfolio Market Value € 1,849.5 mn mainly due to the sale of (-42 € mn vs 31/12/2013) Le Fonti del Corallo mall (Livorno) in Income related portfolio Market Value € 1,690.6 mn February for (€ 1,723.7 mn vs 31/12/2013) €
Slide 5: A strong half year in line with the 2014-2016 BP
5 A “strong” half year… in line with the 2014-2016 BP NEWS Post 1H 14 February 2014 – Sale 3 March 2014 – Sale of 11 April 2014 – Private 30 May 2014 – DRO – 7 July 2014 – BoD of the mall “Fonti del the treasury shares to placement with Morgan Subscribed 77.8% (best approves the Capital Corallo” in
Slide 6: Economic Context
ECONOMIC CONTEXT
Slide 7: The Italian economic context in 1H 2014
7 The Italian economic context in 1H 2014 GDP trend (change %) Consumption trend (change %) Retail investments in Italy € 1,400 2.0% 2.0% € 1,200 1.5% 1.5% 1.5% € 1,000 1.2% 1.1% € 800 1.0% 1.0% 0.8% € 600 0.3% € 400 0.5% 0.5% 0.1% € 200 0.0% 0.0% €0 2014 2015 2016 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 1
Slide 8: The Romanian economic context in 1H 2014
8 The Romanian economic context in 1H 2014 GDP trend (change %) Consumption trend (change %) 4.0% 4.0% 3.5% 3.5% 2.8% 2.9% 2.9% 2.9% 2.9% 3.0% 3.0% 2.5% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% 2014 2015 2016 2014 2015 2016 Data source: sample averages institutes and researches Da
Slide 9: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 10: Revenues
10 Revenues BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 60,546 Total 61,829 revenues 0.2% +2.1% 0.3% 1.385 MALLS 2.514 2.710 7.3% Core business 1.4% HYPERMARKETS -0.3% Revenues from trading CITY CENTER 31.1% Revenues from services OTHER 59.7% 58.032 57.734 Revenues from renta
Slide 11: Rental income drivers (€/000)
11 Rental income drivers (€/000) 49 262 -572 370 LFL Italian Centro Strategic Romania (LFL) Strategic Porta a mare Total change revenues d'Abruzzo vacancy and vacancy extension other Italy Romania +0.7% - 11.9% -298 -499 93 -0.5% Not including strategic Includes the positive effect of Not including
Slide 12: Direct costs and G&A expenses core business
12 Direct costs and G&A expenses core business DIRECT COSTS CORE BUSINESS (€ 000) 14,048 15,487 Trend of direct costs mainly due to: +10.2% • RENTS AND LEASES PAYABLE +1.2 € mn (+26.9%) increasing thanks to the 6,137 masterlease of the previously sold Le Fonti 5,967 del Corallo mall (Livorno). Other
Slide 13: Total consolidated EBITDA: € 39.7 mn
Total consolidated Ebitda: € 39.7 mn Ebitda (core business): € 39.9 mn (-4.3%) 13 CONSOLIDATED EBITDA (€ 000) -102 -1.452 252 -190 41,218 39,726 Ebitda Change in Change in direct Change in trading Change in G&A Ebitda 30/06/2013 revenues from costs activities expenses 30/06/2014 rental activity and
Slide 14: Group net profit: € 4.5 mn
14 Group net profit: € 4.5 mn GROUP NET PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) +9.8% 663 -1,344 29 2,543 4,454 -1,770 4,056 278 4,056 4,454 Group net Change in Change in Change in Change in Change in taxes Change in Group net profit Ebitda core Ebitda 'Porta a depreciation, financial and (profi
Slide 15: Core business Funds From Operations
15 Core business Funds From Operations FFO (€/000) 30/06/2013 30/06/2014 D D% Of which: Pre-tax profit 2,667 6,758 4,091 n.a. • –1.8 € mn due to a Depreciation and other provisions 721 754 32 4.6% decrease in Ebitda Change in FV and devaluations 15,140 9,917 -5,223 n.a. (decreased net Extraordinary
Slide 16: Operating Performance
FY 2009 RESULTS OPERATING Bologna PERFORMANCE November 11, 2011
Slide 17: Commercial Highlights
17 Commercial Highlights Footfalls in Italian IGD Shopping Malls** +0.1% progressive change Tenants sales in Italian IGD Shopping Malls +2.7% progressive change Improving Hypermarket sales* -3.8% progressive change compared to 31/03/2014 (-5.4%) IGD’s Hypermarket and Supermarket sales* -3.3% progres
Slide 18: The performance of our shopping malls in 1H2014
18 The performance of our shopping malls in 1H2014 TENANT SALES AND FOOTFALLS IN OUR SHOPPING CENTERS SALES FOOTFALLS Progressive Progressive Absolute value change June change June ITALY +2.7% +0.1% 29.5 million** ROMANIA n.p* -8.2% 14.6 million *not all our tenants have a cash register ** Footfalls
Slide 19: The performance of our shopping malls in 1H2014
19 The performance of our shopping malls in 1H2014 QUARTERLY TREND OF TENANT SALES 2011-2Q 2014 6.0% 4.0% 3.8% 2.0% 1.4% 1.0% 0.0% 0.0% -0.1% 1q2011 2q2011 3q2011 4q2011 1q2012 2q2012 3q2012 4q2012 1q2013 2q2013 3q2013 4q2013 1q2014 2q2014 -0.8% -2.0% -1.6% -0.7% -2.0% -4.0% -4.1% -4.6% -5.0% In the
Slide 20: Contracts in Italy and Romania
20 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKET AND MALL EXPIRY DATE OF HYPERMARKET AND MALL CONTRACTS CONTRACTS IN ITALY (% no. of contracts) IN ITALY (% of value) 120% N 19 100.0% 120% 100% 100.0% 100% N 655 80% 62.8% 80% 62.7% 60% 60% 40% N 143 N 132 N 114 40% 20% 11.8% 11.1% 14.4% 2
Slide 21: Commercial and asset management activities (1/4)
21 Commercial and asset management activities in 1H 2014 (1/4) Creation of a new medium sized area (Terranova), through the unification of some vacant shops. Result: increase in attractiveness and reduction in vacancy. Remodeling Creation of a new medium sized area (New Yorker), introduction of high
Slide 22: Commercial and asset management activities (2/4)
22 Commercial and asset management activities in 1H 2014 (2/4) Introduction of new brands in the food court: America Graffiti, a 50s style American-inspired restaurant, La Torteria, a cake and coffee corner and Titto, an ice cream shop offering personalised toppings. Spring 2014: opening of a new H&
Slide 23: Commercial and asset management activities (3/4)
23 Commercial and asset management activities in 1H 2014 (3/4) Chioggia Retail Park Work in progress for the construction of a new format for IGD: an open air shopping mall with neighbourhood shops, a hypermarket, 7 medium sized areas, all connected by covered walkways Porta a Mare 10/07/2014 Openin
Slide 24: Extension opening
Commercial and asset management activities in 1H 2014 (4/4) 24 Extension opening New entrance of Centro d’Abruzzo after restyling Location: San Giovanni Teatino, CH Extension opening date: 10 April 2014 Footfalls (from 10/4 to 13/4): 80,000 In 2Q 2014 turnover of the shopping center increased of +69
Slide 25: July 2014: IGD presented its first APP
25 July 2014: IGD presented its first APP During the weekend 5-6 July IGD’s first APP regarding Centro d’Abruzzo was launched Benefits to the customers that donwload it • Real-time news on promotions and events going on in the Shopping Center; • Information on shops in the Mall; • Exclusive promotio
Slide 26: Portfolio
FY 2009 RESULTS PORTFOLIO Bologna November 11, 2011
Slide 27: Market value evolution (1/5)
27 Market value evolution (1/5) BREAKDOWN OF PORTFOLIO APPRAISALS As at 30 June 2014 IGD Group's real estate portfolio had been appraised by 3 independent experts: CBRE, REAG and CUSHMAN&WAKEFIELD 18% 43% CBRE Rotated asset REAG as at CUSHMAN&WAKEFIELD 30/06/2014: 61% 39% 7 August 2014 1H2014 Result
Slide 28: Market Value evolution (2/5)
28 Market Value evolution (2/5) € mn Mkt Value Mkt Value 31/12/2013 30/06/2014 Malls+Hypermarkets+Other Italy 1.522,49 1.489,54 City Center (V. Rizzoli) 27,80 27,70 Total income related Portfolio in ITALY 1.550,29 1.517,24 Total income related Portfolio in ROMANIA 173,40 173,40 TOTAL IGD INCOME RELA
Slide 29: Market value evolution (3/5)
29 Market value evolution (3/5) ITALY ROMANIA HYPERMARKET MALLS AVERAGE MALLS Financial occupancy 100.0% 94.7% 96.6% 86.3% Market value at 30 June 2014 €mn 526.72 956.22 170.10 Compound average yield of total portfolio 6.65% 6.59% 6.64% (gross initial yield) The profit return on HYPERMARKETS (6.65%,
Slide 30: Market Value evolution (4/5)
30 Market Value evolution (4/5) ITALIAN Portfolio Change in income related LFL FV (hypermarkets, malls, city center and other): -0.1% • HYPERMARKETS: +0.6% equal to +3.1 € mn excluding Hypermarket in “Le Porte di Napoli” Shopping Center, which decreased its GLA from 17,248 m² to 9,570 m² MARKET VALU
Slide 31: Market Value evolution (5/5) – Income related assets
31 Market Value evolution (5/5) – Income related assets Strategy of portfolio turnover 1,718.5 € mn +27.9 +27.9 Piastra Piastra Mazzini Mazzini 1,723.7 - 48.0 + 16.4 - 4.5 + 3.1 - 0.1 0.0 1,690.6 Market Value (Decreases) Effect due to Δ MV Malls Δ MV Hypermarket Δ MV income Δ MV Romania Market Value
Slide 32: NNAV
32 NNAV NNAV PS (€) NNAV FY13 1H14 Market value ow ned properties, lands and direct 2.31 development initiatives and assets held for trading a 1,891.28 1,849.53 Investment properties, lands and development 2.22 initiatives, assets held for trading b 1,890.86 1,848.51 Potential capital gain c=a-b 0.4
Slide 33: Financial Structure
FY 2009 RESULTS FINANCIAL STRUCTURE Bologna November 11, 2011
Slide 34: Financial Highlights 1/2
34 Financial Highlights 1/2 31/03/2014 30/06/2014 GEARING RATIO 1.27 1.30 LOAN TO VALUE 55.5% 55.9% COST OF DEBT 4.12% 4.26% INTEREST COVER RATIO 1.73X 1.75X AVERAGE LENGHT OF LONG TERM DEBT 7.5 years 7 years (bonds included) MID/LONG TERN DEBT RATE 81.1% 91.0% 7 August 2014 1H2014 Results presentat
Slide 35: Financial Highlights 2/2
35 Financial Highlights 2/2 31/03/2014 30/06/2014 HEDGING ON LONG TERM DEBT + BOND 79.5% 84.0% BANKING CONFIDENCE € 273.5 mn € 266.0 mn BANKING CONFIDENCE AVAILABLE € 132.5 mn € 229.5 mn MKT VALUE OF MORTGAGE FREE ASSETS/LANDS € 349.3 mn € 360.7 mn 7 August 2014 1H2014 Results presentation
Slide 36: Financial structure
36 Financial structure NET DEBT COMPOSITION (€ 000) 4,404 12,985 937,089 91% 1,034,231 long term 72,209 33,514 Short term debt Current share of long term Long term debt Potential mall business Cash&cash equivalents Net debt debt division fees BREAKDOWN MARKET-BANKING SYSTEM 41.6% Market Banking syst
Slide 37: Debt Maturity
37 Debt Maturity 200,000,000 180,000,000 of which 160,000,000 €135 mn BNP 140,000,000 loan 120,000,000 100,000,000 € 150 mn 80,000,000 Bond € 144,9 mn Bond + 60,000,000 + 40,000,000 Of which in 1H € 38 20,000,000 mn 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 7 August 2014 1H2014 Results pre
Slide 38: Appendix
FY 2009 RESULTS APPENDIX Bologna November 11, 2011
Slide 39: Consolidated Income Statement
39 Consolidated Income Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % Revenues from freehold real estate and rental activities 52.972 51.541 (2,7)% 52.931 51.407 (2,9)% 41 134 n.a. Revenues from leasehold real e
Slide 40: Margin from activities
40 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % 30/06/2013 30/06/2014 % Margin from freehold properties 45.781 44.309 (3,2)% 45.750 44.176 (3,4)% 31 134 n.a. Margin from leasehold properties 384 432 12,4% 384 432 12,4% 0
Slide 41: Tenants in Italy
41 Tenants in Italy TOP 10 Tenants Product category Turnover impact Contracts TOTAL CONTRACTS Miroglio group clothing 3.5% 32 Malls 1,044 Hypermarkets 19 clothing 3.1% 10 Total 1,063 clothing 2.4% 7 footwear 2.0% 5 BRAND BREAKDOWN IN MALLS By turnover clothing 1.7% 20 restaurant 1.5% 9 16% 17% elect
Slide 42: Tenants in Romania
42 Tenants in Romania TOTAL CONTRACTS 540 BRAND BREAKDOWN IN MALLS By turnover 31% 47% 22% International brands National brands Local brands 7 August 2014 1H2014 Results presentation
Slide 43: Italian and Romanian Portfolio
43 Italian and Romanian Portfolio 50 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 18 shopping malls and retail parks 14 SHOPPING CENTERS + 1 OFFICE 19 hypermarkets and supermarkets BUILDING IN 13 DIFFERENT ROMANIAN 1 city center 4 plots of lands for development MEDIUM SIZED CITIES 1 property held for tr
Slide 44: Italian and Romanian Portfolio
44 Italian and Romanian Portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO BREAKDOWN BY PORTFOLIO MARKET VALUE GEOGRAPHIC AREA IN ITALY (mkt value) 1.5% 9.4% 4.6% 28.5% 0.4% 37.1% 4.0% 14.8% 22.3% 25.8% 51.7% HYPERMARKETS/SUPERMARKETS MALLS LANDS OTHER TRADING WINMARKT CITY CENTER North East North West
Slide 45: Net debt
45 Net debt NET DEBT CHANGE (€ 000) -4,454 -14,448 -9,952 -4,073 -21,068 3,339 1,084,887 1,034,231 Net debt 31/12/13 Profit for the period Depreciation/ Devaluation/ Change in NWC (excluding Change in other non- Change in fixed/ non-fixed Change in shareholders' Net debt 30/06/14 attributable to Par
Slide 46: Reclassified balance sheet
46 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) 31/12/2013 30/06/2014 D D% Fixed assets 1,879,129 1,848,270 -30,859 -1.6% NWC 71,271 61,319 -9,952 -14.0% Other consolidated liabilities -68,519 -68,747 -228 0.3% TOTAL USE OF FUNDS 1,881,881 1,840,842 -41,039 -2.2% Net debt 1,084,887 1,034,
Slide 47: 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
Immobiliare Grande Distribuzione SIIQ — H1 2014 Earnings Presentation on 6ix