Neinor Homes Sa · BME:HOME
Neinor Homes Sa — Q3 2019 Earnings Presentation
16 slides from Neinor Homes Sa's earnings presentation, Oct 30, 2019
Slide 1: Q3 2019 Results Presentation
Q3 2019 SANT JUST HOMES – SANT JUST (EAST REGION) Actual picture (Delivery Q3 2019) RESULTS PRESENTATION 30th OCTOBER 2019
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 information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentation” means this document, it
Slide 3: Presenters and agenda
Borja García Jordi Argemí Juan Gómez Vega Egotxeaga García Chief Investor Deputy CEO / CFO Relations Officer Chief Executive Officer 1 2 A Business & Financial Review Q&A Appendix Member of: IBEX SMALL CAP® 3
Slide 4: Business & Financial Review
Business & 1 Financial Review ABRA HOMES – BILBAO (NORTH REGION) Actual picture (Q3 2019)
Slide 5: Q3 2019 Results Key Highlights
Q3 2019 RESULTS KEY HIGHLIGHTS Q3 SNAPSHOT YTD PROGRESS Licenses Development 12,500 units 5,600 units c. 1,500 obtained 2,300+ 572 Activity LandBank WIP & FP WIP Starts Deliveries 1,800+ acc. submitted1 Pre-Sales Activity 3,072 (€1bn +) 1,041 units 95% / 60%+ / c.35% Orderbook units Pre-sold YTD Pre
Slide 6: 572 Units Delivered by the End of Q3
572 UNITS DELIVERED BY THE END OF Q31 Delivery of 100+ units (Sant Just and Via Homes) in Q3 Sant Just Homes Region East Location Sant Just, Barcelona Units (#) 119 Units Delivered Q3-19' (#) 110 Sqm 13,617 Construction Company Bertolín Construction Started H2 2016 Construction Finished Q2 2019 Deli
Slide 7: Business Plan 2019-2021: Improved Visibility
BUSINESS PLAN 2019-2021: IMPROVED VISIBILITY STATUS WIP STATUS1 REVENUE VISIBILITY 47% DELIVERED 53% WIP 100% CFO2 • c. 1,000 units delivered or in delivery process 47% CURRENT PRE-SALES • 572 units delivered by Sept. 30th 2019 95% • c. 400 units in delivery process 53% • Awaiting LPO3 for 300+ unit
Slide 8: EBITDA on Track to Meet or Exceed 2019 Target
EBITDA ON TRACK TO MEET OR EXCEED 2019 TARGET Revenues and profit reflecting the 572 units notarized Year on Year Progress Financial KPIs c.2x Development Revenues 207 100 P&L €242m €44m €25m Revenues1 EBITDA Adjusted Net Income Q3'19 Q3'18 5x EBITDA adjusted 44 8.5 €1.3bn 80%+ Balance Sheet Develop
Slide 9: Q&A
2 Q&A AIGUADOLÇ HOMES – SITGES (EAST REGION) Actual picture (June 2019)
Slide 10: Appendix
A APPENDIX GOIEGI HOMES – LASARET (NORTH REGION) Actual picture (July 2019)
Slide 11: 1,041 Units Sold YTD – Pre-Sales Goal for 2019 Deliveries Surpassed
1,041 UNITS SOLD YTD – PRE-SALES GOAL FOR 2019 DELIVERIES ALREADY SURPASSED 354 units pre-sold in Q3 with 4.9% Observed HPA1 in last 12 months 0% 2% 4% 4.9% 6% 8% 10% 12% Center East Q3 '19 Q2 '19 Q1 '19 Levante Q4 '18 Q3 '18 North South PRE-SALES RHYTHM IN LINE TO SECURE YEAR-END COVERAGE TARGETS Q
Slide 12: Land Strategy: Rigorous and Profitable Execution
LAND STRATEGY: RIGOROUS AND PROFITABLE EXECUTION Acquisition of 2 land plots for 174 units in the Basque Country for c. €10m Sale of a €10.6m plot (1.8x book value) in Madrid LAND ACQUISITIONS ASSET ROTATION Company has growing fire-power on a buyers’ market Opportunistic asset sales at a multiple t
Slide 13: EBITDA Adjusted of €44M – c.5x vs 9M 2018
EBITDA ADJUSTED OF €44M – C.5X VS 9M 2018 31% development gross margin up to Q3 - €25M Net Income Summary P&L (in €M) €M Q3 2019 Q3 2018 Change Q3'19 vs Q3'18 Revenues 242.0 156.0 86.0 55% Gross Margin 80.6 48.6 32.0 66% € 242 M REVENUES Gross Margin (%) 33.3% 31.1% 2.1% 7% Development Legacy Servic
Slide 14: Cash Flow: Accelerating Capex
CF I ACCELERATING CAPEX Increase due to the 2,300+ new units in progress Summary Cash Flow (in €M) Change Q3'19 vs €M Q3 2019 Q3 2018 Q3'18 Profit (Loss) before Tax1 Adjustments 32.6 9.0 (1.2) 13.5 33.7 (4.5) n.s. -33.3% +€18M OPERATING CASH FLOW VS -€68 M IN Q3’18 Amortization 3.1 0.8 2.3 n.s. Fina
Slide 15: Balance Sheet: €1.45bn Asset Base
BS I €1.45BN ASSET BASE Focus on development (98% of total inventories) Summary Balance Sheet (in € m) €M Q3 2019 FY 2018 Change Q3 '19 vs FY'18 PPE 7.4 7.7 (0.3) -3.4% Right of use assets 3.5 - 3.5 100.0% Investment Property 0.3 1.0 (0.7) -69.2% Other Non-Current Assets Deferred Tax assets 13.1 22.
Slide 16: Continuing with Conservative Debt Ratios
CONTINUING WITH CONSERVATIVE DEBT RATIOS Slightly higher debt ratios (LTV 21%) due to the new construction starts Net debt (in € m) CONSERVATIVE DEBT RATIOS Change Q3 '19 vs €M Q3 2019 FY 2018 FY'18 LTV AT 21% Gross Debt 393.4 380.5 12.9 3.4% Non-Current Bank Borrowing 46.3 - 46.3 0.0% Corporate Fin