Neinor Homes Sa · BME:HOME
Neinor Homes Sa — H1 2021 Earnings Presentation
29 slides from Neinor Homes Sa's earnings presentation, July 2021
Slide 1: 1H21 Results Presentation
1H21 RESULTS PRESENTATION July 2021 IBEX MID CAP®
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or other companies operating in the same sector and industry. This information has been derived from publicly-available sources and Neinor information whi
Slide 3: Agenda
01 02 03 04 05 A 1H21 RESULTS: FINANCIAL AND ACQUISITIONS STRATEGIC 1H21 RESULTS: APPENDIX KEY HIGHLIGHTS OPERATIONAL CONSIDERATIONS KEY TAKEAWAYS ACTIVITY 3
Slide 4: 1H21 Results: Key Highlights
01 1H21 RESULTS: KEY HIGHLIGHTS Riverside HOMES I
Slide 5: Outstanding financial results amid an intense investment activity
1H21 RESULTS: KEY HIGHLIGHTS OUTSTANDING FINANCIAL RESULTS AMID AN INTENSE INVESTMENT ACTIVITY FINANCIAL ▪ Outstanding financial results with c€70mn EBITDA1 and c€50mn Adj. Net Income1 ▪ LTM EBITDA and Net Income respectively at €151mn and €108mn RESULTS ▪ €315mn cash position2, no relevant corporat
Slide 6: Financial and Operational Activity
02 FINANCIAL AND OPERATIONAL ACTIVITY LIMONAR HOMES I
Slide 7: Financial Snapshot
FINANCIAL AND OPERATIONAL ACTIVITY FINANCIAL SNAPSHOT YOY CHANGE TOTAL REVENUES (+222%) CONSOLIDATED 1,048# €310mn 21% 327 P&L1 DELIVERIES2 DEVELOPMENT EBITDA MARGIN3 REVENUES2 101 1H20 1H21 BALANCE €1.5bn €491mn €315mn EBITDA3 (+366%) SHEET1 INVENTORIES ADJ. NET DEBT CASH & EQUIVALENTS4 70 15 €124m
Slide 8: Operational Snapshot
FINANCIAL AND OPERATIONAL ACTIVITY OPERATIONAL SNAPSHOT c14,800# c5,700# 3,877# (€1.07bn) 1,048# TOTAL LAND BANK WIP & FP ORDERBOOK DELIVERIES DEVELOPMENT ACTIVITY1 c6,600# c10,000# €276k/unit 1,481# UNDER COMMERCIALIZATION LAND ACQUISITIONS IMPLICIT ASP GROSS PRE-SALES2 C3,500# 396# 71% +12% TOTAL
Slide 9: Acquisitions
03 ACQUISITIONS AIGUADOLÇ II HOMES I
Slide 10: Best in class execution of investment strategy
ACQUISITIONS BEST IN CLASS EXECUTION OF INVESTMENT STRATEGY 4,500# 14,500# ▪ During 2020 Neinor launched the most aggressive investment strategy in c.2,500# c.400# c10,000# the sector c7,000# ▪ Wide consensus view was how much house prices would fall and if developers were going to be able to sustai
Slide 11: Swift absorption and integration of Quabit
ACQUISITIONS SWIFT ABSORPTION AND INTEGRATION OF QUABIT MERGER UPDATE QUABIT MERGER VALUE CREATION BRIDGE ▪ Merger was notarized on the 19th of May ▪ €151mn adjustment vs FY20 inventories after PPA1 ▪ Commercial teams integrated with a solid performance ▪ 1H21 appraisal implies €183mn capital gain (
Slide 12: Cherry picked acquisitions in top locations of Madrid and Barcelona
ACQUISITIONS CHERRY PICKED ACQUISITIONS IN TOP LOCATIONS OF MADRID AND BARCELONA LAND ACQUISITION STRATEGY BUSINESS PLAN TARGETS ▪ Los Carriles: Prime asset north of Madrid (c1,000#) bought at c€1,000/sqm vs 1,800/sqm for fully permitted land today ▪ Acquired c2,500# YTD for a total investment of €2
Slide 13: Affordable housing development and operation: a double-bottom line return
ACQUISITIONS AFFORDABLE HOUSING DEVELOPMENT AND OPERATION A ‘DOUBLE-BOTTOM LINE’ RETURN GENERAL DESCRIPTION PRIME RENTAL PORTFOLIO IN THE BEST AREAS OF BARCELONA STRATEGY ▪ Public-private partnership to develop an affordable rental STRATEGY portfolio in Barcelona. PROJECT ▪ Neinor will own a 25% sta
Slide 14: Strategic Considerations
04 STRATEGIC CONSIDERATIONS LIMONAR HOMES I
Slide 15: Residential platform sum-of-the-parts
STRATEGIC CONSIDERATIONS RESIDENTIAL PLATFORM SUM-OF-THE-PARTS DEVELOPMENT BUSINESS TODAY STABILIZED RENTAL PLATFORM IN 2024-25 NEINOR ADDITIONAL HMB1 NEINOR DELIVERIES 2,500-3,000# RENTAL PIPELINE RENTAL REVENUES €800-900mn UNITS C2,400# C1,100# 1,125# C4,600# €140-160MN EBITDA (~18% MARGIN) GRI €2
Slide 16: Residential platform sum-of-the-parts (illustrative)
ILLUSTRATIVE PURPOSES ONLY STRATEGIC CONSIDERATIONS RESIDENTIAL PLATFORM SUM-OF-THE-PARTS DEVELOPMENT BUSINESS TODAY STABILIZED RENTAL PLATFORM IN 2024-25 NEINOR ADDITIONAL HMB2 NEINOR DELIVERIES 2,500-3,000# RENTAL PIPELINE RENTAL REVENUES €800-900mn UNITS C2,400# C1,100# 1,125# C4,600# €140-160MN
Slide 17: Highly focused on crystalizing platform's value over the next 5Y
ILLUSTRATIVE PURPOSES ONLY STRATEGIC CONSIDERATIONS HIGHLY FOCUSED ON CRYSTALIZING PLATFORM’S VALUE OVER THE NEXT 5Y COMPANY SPECIFIC LEVERS MARKET LEVERS +€2,000mn Stabilized €1,750-1,850mn €80-120mn €60-120mn (+€25/sh) +€600mn (~€21-23/sh) ▪ +€1mn GRI ▪ +1% HPA net implies of CCI implies c€20mn NA
Slide 18: Rental platform expected to double GRI every year until 2024
STRATEGIC CONSIDERATIONS RENTAL PLATFORM IS EXPECTED DOUBLE GRI EVERY SINGLE YEAR UNTIL 2024 NEINOR RENTAL PORTFOLIO: 250 0 120 % 2,350 2,350 100% 200 0 ▪ Units: c2,350 1,946 100 % ▪ Estimated GRI: €28mn ▪ Potential NAV: +€435mn 71% 80% 150 0 60% 100 0 750 36% 40% 537 14% 500 20% 7% 0 0% 2021 2022 2
Slide 19: 1H21 Results: Key Takeaways
05 1H21 RESULTS: KEY TAKEAWAYS AURA HOMES I
Slide 20: Unique real estate value proposition to drive future shareholder returns
1H21 RESULTS: KEY TAKEAWAYS UNIQUE REAL ESTATE VALUE PROPOSITION TO DRIVE FUTURE SHAREHOLDER RETURNS FY21 ▪ On track to meet €150mn EBITDA guidance already with +95% pre-sales coverage and GUIDANCE construction completed on 70%1 of development sites MARKET ▪ Sales momentum to remain supportive under
Slide 21: Appendix
a CANTAL HOMES | beliver APPENDIX
Slide 22: Optimal capital allocation (2021-25) to drive shareholder returns
APPENDIX OPTIMAL CAPITAL ALLOCATION (2021-25) TO DRIVE SHAREHOLDER RETURNS FINANCIAL ▪ Yearly target of 2,500# deliveries, €150mn EBITDA and €100 Net Income delivering TARGETS best-in-class profitability for shareholders LAND ▪ Replenish land bank with ~€1bn investment (€200mn/year) to justify +2,50
Slide 23: 1H21 Financials: P&L Statement
APPENDIX 1H21 FINANCIALS1 P&L STATEMENT KEY CONSIDERATIONS (€mn, unless stated otherwise) 1H20 1H21 YoY A Revenues 101.3 326.6 222% A – REVENUES BREAKDOWN Gross Profit 36.0 90.8 152% B Gross Margin (%) 35.5% 27.8% -22% ▪ Development Activity: €310.4m Operating Expenses -8.3 -18.7 125% ▪ Residential
Slide 24: 1H21 Financials: Cash Flow Statement
APPENDIX 1H21 FINANCIALS1 CASH FLOW STATEMENT KEY CONSIDERATIONS (€mn, unless stated otherwise) 1H20 1H21 YoY EBT 9.6 56.6 487.5% A – LAND ACQUISITION Adjustments 3.9 -5.3 N.M. ▪ Land acquisitions associated with deferred CF from Operating Activities 13.5 51.3 278.8% payments and acquisitions report
Slide 25: 1H21 Financials: Balance Sheet
APPENDIX 1H21 FINANCIALS1 BALANCE SHEET KEY CONSIDERATIONS A – NON-CURRENT ASSETS (€mn, unless stated otherwise) FY20 1H21 YTD Investment Property 0.2 69.8 N.M. ▪ Investment Property increases up to €69mn due to the Other Non-Current Assets 22.2 29.1 31% acquisition of Sardes portfolio Deferred Tax
Slide 26: 1H21 Financials: Net Debt Position
APPENDIX 1H21 FINANCIALS1 NET DEBT POSITION KEY CONSIDERATIONS (€mn, unless stated otherwise) FY20 1H21 YTD A – NON-CURRENT LIABILITIES Gross Debt 335.6 702.5 109.4% ▪ Includes rental portfolio long-term financing and bond A Non-Current Liabilities 73.2 327.7 347.5% Bank Borrowing 70.7 31.1 -55.9% B
Slide 27: GAV Evolution
APPENDIX GAV EVOLUTION 1 1. Includes Savills post June appraisal of HMB 27
Slide 28: NAV Evolution
APPENDIX NAV EVOLUTION (€17.74/SH) (€17.17/SH) 28
Slide 29: The Leading Residential Group
THE LEADING RESIDENTIAL GROUP VIDEO ENG / ESP