Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (October 2021)
64 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, October 2021
Slide 1: Road Show Presentation October 2021
Road Show Presentation October 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with The securities referred
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 5 Financial results Pag. 38 2 Operating performances Pag. 11 6 Outlook and dividend Pag. 46 3 Portfolio and projects Pag. 23 7 Appendix Pag. 50 4 Sustainability Pag. 34 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a glance
IGD at a glance IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across the country. We are also present in the retail sector in Romania 25 hyper/ 14 shopping 27 shopping Development malls in Italy supermarkets c. €2.3bn malls in & other
Slide 6: IGD Business Model
IGD Business Model A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well-diversified presence across Italy 39,2k PIL pro capite 2 Strategic positioning 3 Strong food anchor 4 Strong track record of direct management €34,6k–€42,6k 1 30,9k 35,2k €30,0k– €34,5
Slide 7: Group Structure (simplified)
Group Structure (simplified) 80.4% Revenues Parent Company 95% Financial debt 86% Portfolio value 13,.5% Revenues 100% 5% Financial debt Italian Facility Management 6% Portfolio value 5.5% Revenues 100% No Financial debt Romania 6% Portfolio value 100% 0.6% Revenues Development project in No Financi
Slide 8: IGD's shareholding structure
IGD’s shareholding structure No. of shares Share capital Net equity 110,341,903 € 650 Mn € 1.1 Bn Average 2021 daily trading Listed on STAR Segment of Avearage 2021 mkt (01/01 – 31/08): Italian Stock Exchange capitalization (01/01 – 31/08) c. €427 mn c. 282,235 shares Majority of institutional inves
Slide 9: IGD Governance – Directors and Committees
IGD Governance – Directors and Committees IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008. CEO EXECUTIVE Claudio Albertini CHAIRMAN Timothy Guy Rossella Sao
Slide 10: Our Top Management
Our Top Management Rossella Saoncella (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Appointed as IGD’s Chairman on 20 April 2021 • Appointed in May 2009 • She was and executive of Conad Grouo until 1993 • IGD Board member since 2006 • She was General Manager of the Graranolo Gro
Slide 11: Operating performances
Titolo titolo 2 Operating performances note 37
Slide 12: Operating performances in Italy in 2020
Operating performances in Italy in 2020 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Positive National Positive quick answer New restrictions* start of the Lockdown when the restrictions year were eased IMPACTS ON IGD’S SC: IMPACTS ON IGD’S SC: 66 days of restr
Slide 13: Main trends in the first months of 2021
Main trends in the first 6 months of 2021 18/5 Jan Feb Apr May Jun Mar Closed for 39% of the total normal first easing of the possible days* 1H 2020 activties restr. lockdown restrictions €9.3 mn Covid one-off impact estimated in 1H20 17/5 Jan Feb Mar Apr May Jun Closed for 36% of the total 1H 2021
Slide 14: Monthly trends 2021 vs 2019
Monthly trends 2021 vs 2019 10,0% TENANT SALES FOOTFALLS 3,7% 0,3% 0,0% -2,4% -10,0% -6,4% -20,0% -15,2% -15,4% -24,2% -17,8% -20,4% -30,0% -24,3% -34,3% -37,1% -41,4% -40,0% -36,0% -40,9% -50,0% -46,1% JAN FEB MAR APR MAY JUN JUL AUG Good feedback on tenant sales in the first 3 months of full opera
Slide 15: Focus tenant sales June, July and August 2021 vs 2019
Focus tenant sales June, July and August 2021 vs 2019 * -15,8% -19,1% SERVICES -20,6% -25,2% • Positive trend -23,8% RESTAURANTS -24,8% confirmed for 6,3% 3,2% 14,5% ELECTRONICS electronics, -4,6% culture-leisure and PERSONAL AND -3,0% HEALTHCARE -4,6% household goods 7,7% CULTURE, LEISURE, 4,7% GIF
Slide 16: Leasing management performance 1H2021
Leasing management performance 1H2021 73.9% MALLS of rental KEY MESSAGES income ITALY • Occupancy is improving in Italy (+100bps vs FY20) FINANCIAL and in Romania (+70bps vs Renewals: 85 OCCUPANCY* FY20) Turnover: 46 Downside: -1,0% 95.3% • No significant impacts on rents in Romania with a slight im
Slide 17: Collection rate FY2020 and 1H2021
Collection rate FY2020 and 1H2021* 2020 1H 2021 Collected c. 98%** Collected c.83 %*** ▪ Monthly invoicing Italian ▪ Positive impact on the Portfolio ongoing negotiations expected from Government measures to support tenants (see appendix) Collected c.98% Collected c.93% Romanian Porfolio *% on invoi
Slide 18: Effective leasing activities in Italy continues to combat Covid
Effective leasing activities in Italy continues to combat the negative impacts of Covid… Leasing activity to re-commercialize the vacancy mainly due to the effects of Covid Some of the new openings The End – Fonti del Corallo Pandora – Katanè Pepco – Centro Borgo, Centro Lame, Le Ceylon Store - ESP
Slide 19: …and to answer to new market trends
…and to answer to new market trends Introduced innovative and appealing brands in line with the latest market trends and current needs Restaurants Services/tech Events Introduction of brands in line Introduction of high tech Organization of events, such with new trends, brands and more services as f
Slide 20: Effective leasing activities in Romania
Effective leasing activities in Romania continues to combat the negative impacts of Covid… Robust re-commercialization activity also in Winmarkt Portfolio Sense- Galati Venus – Ploiesti & Alexandria Madre Cucina – Ploiesti Tendresse - Ploiesti Eurasia – Tulcea (next opening Proline Estet – Piatra Ne
Slide 21: IGD shopping centers to serve the community
IGD shopping centers to serve the community Vaccination hub: more than 100,000 doses administered to date • Shopping centers offer large, organized, supervised, regularly From 19/02- Perlaverde in Riccione* From 24/5 - La Torre and from 3/6 Poseidon* from 2/8 - ESP in Ravenna sanitized and easy to i
Slide 22: Our idea of shopping center in the coming years
Our idea of shopping center in the coming years «Next Steps» projects: ideas for innovation ▪ The pandemic favored the acceleration of some transformations on-going in the retail world and, therefore, in the Shopping Centers sector • Two surveys* to better understand new visitors needs «Next steps»
Slide 23: Portfolio and projects
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Slide 24: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets Centro Sarca North Sesto S.Giovanni Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro (MI) Ravenna Faenza (RA) Bologna Bologna Forlì IGD - Main Centro Leonardo Conè Centro Piave San Donà di Clodì Centro Nova Villanova di Mondovicino Sc&Rp Imola (BO) Coneg
Slide 25: The main characteristics of our portfolio
The main characteristics of our portfolio 2,267.9 € mn 42% of this portfolio consists of 8 “Key” assets of which 6 are Shopping centres (mall + hypermarket) Other 4.3% (96.29 €mn) Romania 6.1% (137.52 €mn) Romania On average every shopping centre is 10 years old 6.1% North western Italy (last restyl
Slide 26: IGD's portfolio market value (1/2)
IGD’s portfolio market value (1/2) Gross Initial EPRA Net Initial EPRA Net Initial Finan FY 2020 1H 2021 Δ% Yield Yield Yield topped up occupa Malls Italy 1,473.30 1,472.29 (-0.07%) 6.60% 93.67 5.3% 5.3% Hypermarkets Italy 558.97 561.78 + 0.50% 6.01% 100.0 Romania 138.64 137.52 (-0.81%) 7.49% 5.9% 6
Slide 27: IGD's portfolio market value (2/2)
IGD’s portfolio market value (2/2) ITALY ROMANIA € 2,267.9mn € 2,265.7mn Other 4.2% 4.6 -2.4 4.4 -3.3 0.5 -1.6 Other 4.3% (94.78 €mn) (96.29 €mn) Romania 6.1% 4.4 Romania 6.1% (138.64 €mn) 4.6 -2.4 -3.3 0.5 -1.6 (137.52 €mn) 2,265.7 Malls 65.0% 2,267.9 Malls 64,9% (1,472.29 €mn) (1,473.30 €mn) 2,265
Slide 28: EPRA Metrics
EPRA Metrics Euro per share 1H 2021 FY 2020 Δ% NRV 10.56 10.38 1.7% NTA 10.48 10.31 1.7% NDV 10.19 10.42 -2.1% 0.28 -0.11 0.01 10.38 10.56 EPRA NRV 31/12/2020 FFO Change in fair value assets Change in financial EPRA NRV 30/06/2021 instrument fair value and other Some figures may not add up due to ro
Slide 29: Flexible and sustainable asset management
Flexible and sustainable asset management 2020 2021/2022 ✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities, solidity some projects and capex were extraordinary maintenance, update of postponed as early March 2020. systems as well as fit out adaptations in order t
Slide 30: Pipeline
Pipeline CENTRO CASILINO PORTO GRANDE LA FAVORITA Project Mall Restyling and Mall Restyling and Hypermarket Hypermarket Mall Restyling Remodelling Remodelling Restyling of the external Reduction in the façade and internal areas hypermarket area and Restyling of the together with seismic creation of
Slide 31: Porta a Mare: an ambitious multifunctional project
Porta a Mare: an ambitious multifunctional project Lips Molo Mediceo Arsenale Livorno, touristic Port (Hotel, residential, entertainment and Officine Storiche services for the port) (retail, food court, residential) Focus next slide Piazza Mazzini Palazzo Orlando (retail, residential) Retail owned b
Slide 32: Porta a Mare: Officine Storiche, the heart of the project
Porta a Mare: Officine Storiche The heart of the project End of work:1H2022 Total expected investment retail area : € 53 mn (of which remaining € 11mn*) Total surfaces: 20k sqm, of which 15k sqm dedicated to retail Stores: 30 + 10 restaurants + 1 fitness center *Data at 31/03/2021 32
Slide 33: Residential areas
Residential areas Piazza Mazzini Officine storiche 73 flats already sold 42 seafront flats (flats with garden, flats with terrace, (15 preliminary purchase agreements signed) duplex terraced houses) 33
Slide 34: Sustainability
4 Sustainability
Slide 35: Sustainability: commitment continues despite the pandemic
Sustainability: committment continues despite the pandemic Most short-term goals achieved, work in progress on the medium/long-term targets. GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER • €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the energy
Slide 36: Some of the results achieved
Some of the results achieved Level of satisfaction of IGD shopping centers’ visitors 3.9 (scale 1min. - 5max.) Co2 Emissions intensity 2020-2012 (KgCo2/Mq) -36.1% The structured engagement of all stakeholders allows IGD to understand their expectations and evaluate if integrate them in its strategy
Slide 37: IGD sustainability in the national and international context
IGD sustainability in the national and international context PARTICIPATION IN NATIONAL AND INTERNATIONAL ORGANISATIONS AND EVENTS ON SUSTAINBILITY Universities lectures and testimonies Member of the EPRA Member of the Chairman of the ESG Member of Impronta IGD is called to spoke Sustanability commit
Slide 38: Financial Results
5 Financial Results
Slide 39: FY 2020 and 1H2021 main results
FY 2020 and 1H2021 main results FY 2020 1H 2021 vs 2019 vs 1H 2020 REVENUES Rental Income €145.6 mn -6.2% €73.1 mn -2.1% Net Rental Income €109.5mn -19.8% €55.5 mn -1.4% EBITDA EBITDA (Core Business ) €99.4 mn -20.6% €50.6 mn -1.6% EBITDA Margin (Core Business) 65.4% -121pts 66.3% +20pts EBITDA Marg
Slide 40: Net Rental Income
Net Rental Income (€mn) Italy -€8.6mn -19.9% -€27.1mn -6.3% Romania -19.8% -19.3% -5.3 -3.3 -18.5* 136.6 FY2020 128.0 109.5 Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020 Italy -2.3% -0.8€mn Romania -1.
Slide 41: Financial management
Financial management (€mn) 5.4 3.8 5.4 3.8 2.8 3.8 2.8 2.8 Total Total € 36.8mn € 36.2mn -4.7% Negative carry 31.0 5.4 29.6 3.8 €400mn bond issue + SACE 31.0 29.6 2.8 29.6 IFRS16 and non-recurring charges FY2020 31.0 29.6 FY 2019 FY 2020 Finacial Mgt. Adj: FY 2019 FY 2020 -€1.4mn vs 2019 (-4.7%) FY
Slide 42: Funds From Operations (FFO)
Funds From Operations (FFO) -€5.5mn -€24.0mn -6.6% -28.8% -7.3 1.4 0.2 FFO p.s. -18.5 0.54€ 83.3 77.8 FY2020 59.3 FFO_2019 Change in core business Ebitda adj* 1 Change in financial Change in taxes and management adj other FFO_2020 adj COVID net direct impacts FFO_2020 -2.3€mn -6.8% -0.9 -1.2 -0.1 32
Slide 43: Financial structure
Financial structure 31/12/2020 30/06/2021 LTV 49.9% 49.1% • Net debt improved in 1H2021 ICR 3.2X* 3.2X* (-€20.66 mn vs FY2020) Average cost of • LTV is slightly decreasing 2.30% 2.22% debt Net Debt Debt breakdown** 1,134.80 € mn*** SECURED MARKET 25.0% 57.2% BANKING SYSTEM 42.8% L.T. 1,178.58 UNSECU
Slide 44: Debt maturity and Ratings
Debt maturity Ratings €100mn: 2.25% 7y €400mn: 2.125% 5y 500 BBB- stable outlook 2.1% 5y* 2.65% 7y 209 209 153.6 BB+ negative outlook 9 9 9 2 9 7 2 67 53 7 44 29 25 67 53 27 6 44 29 25 27 6 2021 2022 2023 2024 2025 2026 >2026 2021 2022 2023 2024 2025 2026 >2026 Debito bancario secured debito bancari
Slide 45: On-going process on disposals to rebalance the financial structure
On-going process on disposals to rebalance the financial structure ✓ Consistent with 2019-2021 Strategic Plan, the procedure for the disposal of a portfolio of stand-alone hypermarkets/supermarkets was started ✓ Mandate granted to CBRE, a premiere international advisor Asset class with a Attractive
Slide 46: Outlook and dividend
6 Outlook and dividend
Slide 47: Outlook
Outlook Guidance FFO ‘21 vs ‘20 +7/8% In view of the positive signs of recent months, in a context of economic and +3/4% consumption recovery and taking into account the Covid-19 impact estimated for the current year, the 2021 FFO outlook has been revised from +3/4%, announced on 25 February, to +7/
Slide 48: Dividend
Dividend 2020 Next few years ✓ Loss of the Parent company IGD SIIQ SPA ✓ As soos as external conditions allow, IGD ✓ Safeguard of the financial stability and the intends to resume paying dividends and investment grade profile providing its shareholders with attractive remuneration NO DIVIDEND IGD sh
Slide 49: Final remarks
Final remarks Urban shopping centers with an attractive food anchor resiliency confirmed Operating performance recovery paving the way for a better 2H; FFO guidance raised Italian GDP growth expected: about +6% in 2021, +4% in 2022 49
Slide 50: Appendix
Titolo titolo 7 Appendix note 65
Slide 51: Consolidated income statement
Consolidated income statement GROUP CONSOLIDATED (a) (c) Δ 1H_CONS_2020 1H_CONS_2021 (c)/(a) Revenues from freehold rental activities 68.7 66.9 -2.6% Revenues from leasehold rental activities 5.9 6.2 3.9% Total income from rental activities 74.6 73.1 -2.1% Rents and payable leases 0.0 0.0 -0.3% Dire
Slide 52: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations CONS_2020 CONS_2021 Δ 2020 Δ% Core business Ebitda 51.4 50.6 -0.8 -1.6% IFRS16 Adjustments (payable leases) -4.3 -4.2 0.1 -1.6% Financial management Adj -13.9 -15.2 -1.2 8.9% * Extraordinary management Adj 0.0 0.0 0.0 n.a. Gross margin from trading 0
Slide 53: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds (€/000) 30/06/2021 31/12/2020 Δ Δ% Fixed assets 2,229,892 2,234,484 -4,591 -0.2% Assets under construction 42,757 42,674 82 0.2% Other non-current assets 17,714 17,374 340 2.0% Other non-current liabilities -29,767 -30,371 604 -2.0% NWC 33,435 30,42
Slide 54: EPRA Net Asset Value
EPRA Net Asset Value 30/06/2021 31/12/2020 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1.136.236 1.136.236 1.136.236 1.114.442 1.114.442 1.114.442 Exclude: v) Deferred tax in relation to fair value gains of IP 17.743 17.743 16.989 16
Slide 55: Other Epra metrics
Other Epra metrics EPRA Performance Measure 30/06/2021 31/12/2020 EPRA NRV (€'000) 1.165.199 1.145.827 EPRA NRV per share € 10,56 € 10,38 EPRA NTA 1.156.816 1.137.258 EPRA NTA per share € 10,48 € 10,31 EPRA NDV 1.124.867 1.149.534 EPRA NDV per share € 10,19 € 10,42 EPRA Net Initial Yield (NIY) 5,8%
Slide 56: More financial highlights
More financial highlights 31/12/2020 30/06/2021 Gearing ratio 1.03X 0.99X Average lenght of long term debt 3.2 years 2.9 years Hedging long term debt + bond 93.0% 92.9% Share of M/L debt 98.3% 85.3% Uncommitted credit lines granted 151€ mn* 151€ mn* Uncommitted credit lines available 151€ mn 151€ mn
Slide 57: Contratti e key tenants Italia
Contratti e key tenants Italia Malls Product Turnover TOP 10 Tenant Contracts category Impact N 183 N 206 N 279 N 144 N 587 clothing 2.9% 14 18.8% 46.1% 10.5% 10.1% 14.5% clothing 2.7% 10 2021 2022 2023 2024 >2024 electronics 2.0% 8 Average residual maturity: 4.0 years clothing 1.6% 23 Total contrac
Slide 58: Contratti e key tenants Romania
Contratti e key tenants Romania Product Turnover TOP 10 Tenant Contracts category Impact Winmarkt supermarket 10.7% 11 N 142 N 252 N 60 N 26 N 67 clothing 6.5% 6 clothing 5.4% 10 clothing 4.4% 11 drugstore 2.7% 5 personal care 2.2% 4 jewellery 2.0% 5 Average residual maturity: 4.6 years offices 1.7%
Slide 59: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italia Romania Household Restaurant Culture, leisure, gift Household goods goods 9% 7% items 5% Supermarkets Culture, leisure, 3% 11% Electronics gift items Electronics Personal care 7% 12% 2% 4% Personal care Service 5% 10% Service Merchandising 7% Mix* Restaurant 7% Ent
Slide 60: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls 27 shopping malls 25 hypermarkets Tenants of hypermarkets Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0 Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0 Porto Grande - Porto d'Ascoli (AP) Porto Grande - Porto d'Ascoli (A
Slide 61: Strong repositioning of the Romanian Portfolio
Strong repositioning of the Romanian Portfolio 1 5 9 13 2 6 10 14 1 7 2 Bistrita Piatra Neamt 8 Cluj-Napoca Vaslui 7 11 3 9 3 Turda Galati 14 4 10 1 13 12 Ramnicu Valcea 1 Buzau Braila Tulcea Ploiesti 5 4 8 12 Slatina Bucuresti - Hq 6 Alexandria 661 1
Slide 62: The main shareholders: «Coop world»
The main shareholders: «Coop world» 7 Legal entities throughout Italy «Coop world» key data(1): 17 Regions covered by Coop Turnover ~ EUR 14.7 bil € (12.5 % of italian large scale retail) 2 No. of stores: ~1,150 Employees ~48,000 Members ~ 6.4 Mn people Coop Alleanza 3.0 (3) Unicoop Tirreno (4) Reve
Slide 63: Government's support measures: «Sostegni» and «Sostegni Bis» decrees
Government’s support measures: «Sostegni» and «Sostegni Bis» decrees Measures provided for by Measures provided for by Decree «Sostegni» Decree «Sostegni bis» DL 41/2021 DL 73/2021 Non-repayable contributions provided by the Tax credit for rents of non-residential Government properties confirmed: •
Slide 64: Investor relations contacts
Raffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator 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 f