Metrovacesa Sa · BME:MVC
Metrovacesa Sa — FY2020 Earnings Presentation
35 slides from Metrovacesa Sa's earnings presentation, Feb 23, 2021
Slide 1: Results FY2020
Residencial Montblanc / Palmas Altas (Sevilla) Results FY2020 February 23rd, 2021
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Highlights 2. Business Update 3. Financial Overview 4. Closing Remarks Appendices Today’s Presenters Jorge Pérez de Leza Borja Tejada Juan Carlos Calvo CEO CFO Strategy & IR 3.
Slide 4: 1. Highlights
Amura (Valencia) 1. Highlights
Slide 5: Highlights of 2020
Highlights of 2020 Housing development: Land management: Land sales: Good operational progress, Several important milestones Improving in 4Q after setting the ground for growth in to secure future launches in a quiet year 2021, despite the pandemic prime areas Financial results: Restore dividend in
Slide 6: 2. Business update
Hespérides (Sevilla) 2. Business update
Slide 7: Key operational data as of December 2020
Key operational data as of December 2020 Active projects Construction Deliveries / Sales Land portfolio Financials Sales Backlog (1) 2,568 €744m €15.8m €2.68bn Sold units €290 k/unit ASP (2) 3,550 units in 601 units construction delivered Land Sales GAV Dec 2020 or completed 5,440 units and 90 devel
Slide 8: Market Dynamics in Spanish residential
Market Dynamics in Spanish residential 2020: a year of two halves House price appreciation: stable prices in 2020 (%, a/a) • 1H: impacted by the 3-month lockdown, on pre-sales and cancellation rates • 2H: a return to pre-Covid sales ratios in first residence 10 8 2020 • Stable house prices, with a b
Slide 9: Operational activity in 2020
Operational activity in 2020 Pre-sales (net) Increase in activity Deliveries # of units # of units # of units 1,511 670 1,037 888 601 5.378 5.440 747 2H: +11% yoy 289 643 3.840 3.550 3.383 841 2.568 2.131 290 1.329 909 245 2018 2019 2020 2018 2019 2020 2019 2020 Units in commercialisation Units in C
Slide 10: Confidence on growing future deliveries
Confidence on growing future deliveries Sales backlog: up 21% # units sales value 80% (601) €744m of 2021 deliveries €597m 1,037 already pre-sold 2,568 2,131 €271m 86% €290k/unit in contracts 909 avg selling price and 14% in reservations vs 70%/30% in 2019 Sales backlog Sales backlog Sales Deliverie
Slide 11: Build to Rent: growing buyers’ interest
Build to Rent: growing buyers’ interest An important portfolio already in operation Growing appetite 5 BtR projects: 486 units (1) • We see improved interest from institutional investors on BtR projects in recent months Project Location Units Buyer Delivery • More open now to locations outside of Ma
Slide 12: Land management: securing prime locations for future years’ launches
Land management: securing prime locations for future years’ launches Land is 83% fully permitted Getting ready on prime locations Land porftolio: present in the most dynamic locations (1) Geographical presence by asset size in GAV • 307 units transformed to fully permitted in 2020 • On track to tran
Slide 13: Land sales
Land sales Land sales in 2020: €16m revenues Improving demand from 4Q20 Resi Buildable Plot Location Use units # sqm • Increased interest from 4Q20, more evident for residential use Valdelacasa Madrid Industrial - 6,219 than for commercial uses Palmas Altas Sevilla Residential 276 27,600 • Sales in
Slide 14: Commercial segment: ongoing projects
Commercial segment: ongoing projects Commercial projects under development 79 % of Commercial GAV in Madrid & Barcelona Rest 7% Canary Islands 4% Name Location Sqm % progress(1) Completion Comments Cádiz 3% Balearic Puerto Somport office Madrid 18,955 66% 3Q 2021 MVC 24% / Tishman 76% Islands 7% Mad
Slide 15: 3. Financial Overview
Residencial Cornes (Santiago de Compostela) 3. Financial Overview
Slide 16: Financial accounts: FY20 highlights
Financial accounts: FY20 highlights Profit & Loss Financial situation Total revenues: €146.1m LTV ratio: 8.5% Net debt: €228.4m Residential Land deliveries: Sales: €130.3m €15.8m Novolérez (Pontevedra) Cash: €334.0m • 601 units • Price in line with • Gross margin: 18% book values Appraisal values EB
Slide 17: Net Debt in December 2020
Net Debt in December 2020 Net debt details Eur m Dec. 2019 Jun. 2020 Dec. 2020 Developer loans 48.8 110.9 178.8 LTV ratio Corporate debt 103.6 247.3 257.1 8.5% Gross Financial Debt 152.4 358.1 435.9 Unrestricted cash & S/T invest. 74.8 217.0 207.4 Net Financial Debt 77.6 141.1 228.4 Total cash Restr
Slide 18: Free Cashflow to equity
Free Cashflow to equity Cash Flow detail Eur m FY 2020 Positive FCF generation: €27.8m + EBITDA (9.0) (1) • Driven by monetisation of land in residential + Book Value of land sold 9.0 deliveries and land sales + Book value of land in residential deliveries (2) 31.0 • Capex in construction WIP and la
Slide 19: Appraisal update: NAV of €16.48 per share
Appraisal update: NAV of €16.48 per share Net Asset Value calculation Eur m Dec.2019 Jun.2020 Dec.2020 2H % YoY % GAV NAV 2,264.8 -3.8% -6.8% Shareholders’ funds +/- Capital gains gross 2,340.8 363.4 299.1 2,179.8 265.4 €2,679m €16.48/sh +/- Other adjustments 9.5 25.6 54.2 = NAV gross 2,713.6 2,589.
Slide 20: 4. Closing remarks
RIVA (Marbella) 4. Closing remarks
Slide 21: Shareholder remuneration
Shareholder remuneration Cash dividends Share buyback Confirmation of cash distribution policy Execution update • Policy to distribute 80% of FCF generation • €15.4m invested to date(1), 1.67% of the share capital • Dividend figure for 2Q21 to be decided in late March for AGM approval • Acquired wit
Slide 22: Perspectives for 2021
Perspectives for 2021 Residential Dev’t Land sales Cashflow 1,300 - 1,700 >€50m >€100m Delivery units in 2021 Land sales in 2021 Free cashflow in 2021 KPIs at Dec 2020: • 80% pre-sold • 48% construction completed 22.
Slide 23: Strategic priorities
Strategic priorities Key strategic priorities Medium term outlook Improve business returns 7,382 units active at YE2020, for deliveries in 2021-2024 Consolidate the operational ramp-up in residential development Create value through Accelerate sale of land and optimise the portfolio land management
Slide 24: Appendices
Balcón de Europa (Arganda del Rey, Madrid) Appendices
Slide 25: Profit and Loss Account
Profit and Loss Account Key considerations (€m) FY 2019 FY 2020 A Revenues 170.1 146.1 Residential Development 63.2 130.3 Land Sales 106.9 15.8 A -Total revenues of €146.1m COGS (146.1) (123.0) • Residential revenues of €130.3m COGs Developments (51.5) (107.5) • Land sales of €15.8m COGs Land Sales
Slide 26: Balance Sheet
Balance Sheet Key considerations (€m) Dec. 2019 Dec. 2020 A Investment Property 334.1 321.3 Other non-current assets 254.0 154.0 Total non-current assets 588.1 475.3 A - Book value of real estate assets (inventory + investment A Inventory 1,902.3 1,982.6 property + others): €2.26bn Land 1,215.5 1,09
Slide 27: Data series: evolution of key operating data
Data series: evolution of key operating data # Units 2017 2018 2019 2020 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Pre-sales in the period 512 888 1,511 1,037 88 157 238 405 417 424 263 407 263 27 505 242 Backlog of presales (units) 541 909 2,131 2,568 593 675 840 909 1,312 1,718 1
Slide 28: MVC clients & projects: profile by location, price, age and motivation
MVC clients & projects: profile by location, price, age and motivation Backlog by province Units in commercialisation by province Range of selling prices: €k per residential unit % of units Targeting a wide range of prices, with an ASP of €303k/unit in commercialisation % of units Barcelona Madrid 4
Slide 29: Land management: recent milestones
Land management: recent milestones Land transformation Land portfolio: 83% fully permitted • Several major milestones achieved to secure land available in the most attractive locations: Fully permitted ✓Madrid: Arpo, Clesa (FP) Under ✓Barcelona: 3 Chimneys, Seda-Papelera 83% permitting 17% Organised
Slide 30: Portfolio by provinces: strong presence in the key areas
Portfolio by provinces: strong presence in the key areas Portfolio details by province, ranked by % of GAV GAV (%) Number of residential units Top 6 provinces: Fully Under Location Total Resid. Commerc. Total permitted permitting 70% of GAV Madrid 21% 14% 48% 4.8k 0.9k 3.9k Madrid 21% Barcelona 16%
Slide 31: Corporate & ESG: initiatives and recognitions
Corporate & ESG: initiatives and recognitions Among 100 best Equality in the ISO quality ASPRIMA - SIMA European Green companies company certifications Award Deal to work in Spain Award ISO 9001:2015 •Metrovacesa obtained in Nov. 2020 the ISO 9001- 2015 Quality certification, audited by AENOR •Metro
Slide 32: Housing demand and demographics
Housing demand and demographics Demographics: projected household creation by region 2020-2035 Source: INE projections 258,550 240,474 204,816 137,296 96,394 61,481 Castilla y 57,541 Asturias León 23,392 21,306 19,908 14,868 4,293 3,890 2,847 2,615 -14,514 -35,144 Madrid Andalucía Cataluña Com. Cana
Slide 33: MVC project examples I
MVC project examples I Novolérez (Pontrevedra) Link to project website Luz Lezkairu (Pamplona) Link to project website Mirador de la Albaida (Córdoba) Link to project website RIVA (Marbella) Link to project website 33.
Slide 34: MVC project examples II
MVC project examples II Gaztelondo (Bilbao) Link to project website Jarales (Algeciras) Link to project website Metropol Parc (Barcelona) Link to project website Oceana Views (Estepona, Málaga) Link to project website 34.
Slide 35: Q&A
Jardins Can Gambús (Sabadell, Barcelona) Q&A