Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Merger or Acquisition (December 2017)
32 slides from Immobiliare Grande Distribuzione SIIQ's merger presentation, Dec 15, 2017
Slide 1: A new value creation step for IGD
A new value creation step for IGD 15 December 2017 Centro Sarca - Milano
Slide 2: Disclaimer
This presentation and the information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase or subscribe for securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation w
Slide 3: Strategic acquisition and capital increase
Strategic acquisition and capital increase Acquisition of a strategic shopping galleries portfolio for c. €200M ■ Acquisition of 4 strategic shopping galleries and a retail park (1), dominant in their catchment area and anchored to top- performing prime hypermarkets operated by “Coop” ■ Total invest
Slide 4: Portfolio being acquired
Portfolio being acquired 3 2 1 4 4 locally dominant shopping galleries and a retail park in Northern Italy, anchored to prime Coop hypermarkets 1 IMOLA (BO) 2 BOLOGNA (BO) 3 MANTUA (MN) (1) 4 SARZANA (SP) Reconstitution of full site ownership following the transaction Galleries anchored to Coop hype
Slide 5: Retail environment supported by positive macro fundamentals
Retail environment supported by positive macro fundamentals Conè - Conegliano
Slide 6: Italian economy: positive macro-economic trends in 2017
Italian economy: positive macro-economic trends in 2017 Growth stemming from structural reforms implemented during the last years Real GDP growth gaining pace Market revising upward Italian GDP growth expectations Evolution of 2017 real GDP growth forecast (Bloomberg consensus) (1) Evolution of Ital
Slide 7: Italian shopping centres market remains strongly attractive thanks to structural advantages
Italian shopping centres market remains strongly attractive thanks to several structural advantages Among the lowest shopping centre density Low population density with relevant medium-sized cities Shopping centre GLA / 100 inhabitants, sqm % of national population living in most populated urban are
Slide 8: Sound industrial rationale underpinned by IGD's track-record of value creation
Sound industrial rationale underpinned by IGD’s strong track-record of value creation Punta di ferro - Forlì
Slide 9: Transaction driven by a strong industrial rationale
Transaction driven by a strong industrial rationale Consolidating leadership on the local market Acquisition of dominant proximity galleries, in line with IGD asset allocation strategy: medium sized and easily reachable shopping centres tailored to the geographical structure of Italy, characterized
Slide 10: Transaction portfolio: 4 locally dominant assets anchored to prime hypermarkets
Transaction portfolio: 4 locally dominant assets, anchored to top- performing prime hypermarkets Assets anchored to hypermarkets generating over €8,000/sqm sales (1) Shopping galleries generating over €4,600/sqm tenants’ sales (2) Bologna, Centro Lame 2 Strong in-town location, serving the daily Imo
Slide 11: Solid fundamentals of the micro-locations
Solid fundamentals of the micro-locations Economic growth factors and demographic fostering asset value creation potential Gross income per capita significantly above Italian average Supportive population dynamics €/per income producer (2015) Population as of January 1st, 2012-2017 growth, % % premi
Slide 12: Full site ownership and consolidated partnership with Coop
Full site ownership and consolidated partnership with Coop bring additional advantages IGD empowered to deploy its asset management best practices IGD enjoys a unique control on its portfolio IGD currently holds the entire shopping centre site (hypermarket + gallery) for 16 galleries out of 22 owned
Slide 13: Improved operating flexibility thanks to full site ownership
Improved operating flexibility to deploy asset management strategies and meet customers’ needs thanks full site ownership Reconstitution of full ownership on 2 assets CENTRO LEONARDO (CURRENT OWNERSHIP) CENTRO LEONARDO (POST TRANSACTION) GLA: 15,862 sqm Entire asset GLA: 30,593 sqm Net sales area: 7
Slide 14: Portfolio focus: potential value creation levers (1/2)
Portfolio focus: several identified potential value creation levers (1/2) 3 2 1 4 Identified restyling and energy efficiency initiatives in line with asset management strategies Leonardo, Imola (BO) Identified potential value creation opportunities 1 Asset GLA 30,593 sqm o/w being acquired 14,731 sq
Slide 15: Portfolio focus: potential value creation levers (2/2)
Portfolio focus: several identified potential value creation levers (2/2) 3 2 1 4 Identified restyling and energy efficiency initiatives in line with asset management strategies La Favorita, Mantua (MN) Identified potential value creation opportunities 3 Asset GLA 24,613 sqm Possibility to further i
Slide 16: Proven track-record in proactive asset management (1 of 4)
Proven track-record in proactive asset management (1 of 4) 97% occupancy +19.9% in footfall Net yield on cost of % (vs. 84.6% at in the first 20 days of % the project: 6.5% acquisition) opening COMPLETION: NOVEMBER 2017 Reshaping and reconversion of 4,800 sqm of the hypermarket into gallery (total c
Slide 17: Proven track-record in proactive asset management (2 of 4)
Proven track-record in proactive asset management (2 of 4) +9.7% in tenants’ +3.6% in net Project Gross yield sales (1) rents (2) % on cost: >8.0% (vs. c. 7% expected) COMPLETION: JUNE 2017 19,000 sqm extension (11 MS + 40 units) and internal / external restyling (total capex: €52M) EXTENSION Creati
Slide 18: Proven track-record in proactive asset management (3 of 4)
Proven track-record in proactive asset management (3 of 4) +6.1% increase +12.9% increase in in tenants’ sales (1) net rents (2) COMPLETION: NOVEMBER 2015 Internal and external restyling (c. €10M capex) Creation of a food court (14 units): Roadhouse, Montaditos, Pizzeria Spontini Tenants’ relocation
Slide 19: Proven track-record in proactive asset management (4 of 4)
Proven track-record in proactive asset management (4 of 4) +6.4% LfL increase in tenants’ sales (1) % Asset fully let COMPLETION: DECEMBER 2014 HYPER CONVERSION INTO MALL FULLY LET (7,400 sqm) Reshaping and reconversion of 7,400 sqm of the hypermarket into gallery (total capex : c. €2.0M) Proactive
Slide 20: Capital increase and financial impacts of the transaction
Capital increase and financial impacts of the transaction Maremà - Grosseto
Slide 21: A successful growth and value creation story
A successful growth and value creation story IGD delivered superior growth and value creation since 2014 + 6% CAGR OF GROSS RENTS (1) > + 8% CAGR OF EBITDA (1) (€ millions) (€ millions) 131.3 94.9 115.6 121.1 85.0 103.4 79.5 75.9 2014 2015 2016 9M 2017 2014 2015 2016 9M 2017 +19% CAGR of FFO/share (
Slide 22: Supporting positive financial metrics (1 of 2)
Supporting positive financial metrics (1 of 2) Transaction expected to be cash-flow accretive while strengthening IGD financial profile Enhanced cash flow generation ■ €12.5M net operating income expected to be almost entirely reflected in the FFO net of transaction financing costs linked to the deb
Slide 23: Supporting positive financial metrics (2 of 2)
Supporting positive financial metrics (2 of 2) Transaction expected to be cash-flow accretive while strengthening IGD financial profile IGD Portfolio FY 2016 9M 2017 Data (1) €103.4M Rental Revenues €131.3M €13.3M (+6,1% vs 9m2016) EBITDA €75.9M €94.9M €12.5M Core Business (+7,7% (vs 9m2016) EBITDA
Slide 24: Key terms of the right issue and timetable
Key terms of the right issue and timetable Rights Issue Share capital increase via a pre-emptive rights issue offered to existing shareholders for an amount up to €150M, to be approved by the Extraordinary General Meeting, aimed at partially financing the acquisition of the Portfolio IGD main shareh
Slide 25: Final remarks
Final remarks ESP - Ravenna
Slide 26: Final remarks
Final remarks An accretive transaction on a strategic portfolio to sustain IGD’s growth Transaction with a prime listed counterpart and valuation in line with market value IGD’s enhanced position as the Italian leading shopping centres owner and manager Cash flow accretive on IGD’s financial profile
Slide 27: Appendix
Jove eh ie >. 5) BHU SAD pl: TH i i SY I gas tos ig Th a Appendix
Slide 28: Imola – Centro Leonardo
Imola – Centro Leonardo Description Shopping centre plan ■ Opened in 1992, extended / refurbished in 2006 ■ Core catchment area: 240k people (1) ■ Annual footfall: 4.9M visitors (1) Gallery Hypermarket (already owned) ■ # of units: 65 (1) ■ GLA: 15,862 sqm ■ GLA: 14,731 sqm (2) ■ Turnover: €72M (1)
Slide 29: Bologna – Centro Lame
Bologna – Centro Lame Description Shopping centre plan ■ Opened in 1996, refurbished in 2003 ■ Core catchment area: 532k people (1) ■ Annual footfall: 3.7M visitors (1) Gallery Hypermarket (already owned) ■ # of units: 44 (1) ■ GLA: 15,201 sqm ■ GLA: 5,575 sqm (2) ■ Turnover: €80M (1) ■ Gross rent:
Slide 30: Mantua – La Favorita
Mantua – La Favorita Description Plan ■ Opened in 1996, refurbished in 2007 Gallery + hypermarket Retail park ■ Core catchment area : 285k people (1) ■ Annual footfall: 2.9M visitors (1) Gallery + retail park Hypermarket (not part of transaction) ■ # of units: 42 (1) ■ GLA: 11,000 sqm ■ GLA: 13,613
Slide 31: Sarzana – Centroluna
Sarzana – Centroluna Description Shopping centre plan ■ Opened in 1992 ■ Core catchment area: 260k people (1) ■ Annual footfall: 2.9M visitors (1) Gallery Hypermarket (not part of transaction) ■ # of units: 39 (1) ■ GLA: 11,500 sqm ■ GLA: 3,576 sqm (2) ■ Turnover: €58M (1) ■ Gross rent: €1.9M (3) ■
Slide 32: Investor relations contacts
Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 509260 federica.pivetti@gruppoigd.it to @igdSIIQ