Neinor Homes Sa · BME:HOME
Neinor Homes Sa — Q3 2017 Earnings Presentation
30 slides from Neinor Homes Sa's earnings presentation, Oct 31, 2017
Slide 1: Q3 2017 Results Presentation
31st October | 2017 19:00 CET Q3 2017 Results Presentation
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: Today's Agenda
Today’s Agenda Presenters Contents 1 Introduction Juan Velayos Chief Executive Officer 2 Business Review 3 Financial Overview 4 Case Studies Jordi Argemí Chief Financial Officer 5 Non Financial Reporting 6 Q&A Juan Gómez Vega Chief Investor Relations Officer Member of: 3
Slide 4: 1. Introduction
1. INTRODUCTION RIVERSIDE – MADRID
Slide 5: Re-Cap of Neinor Homes Opportunity
Re-Cap of Neinor Homes Opportunity •Management team with top backgrounds in homebuilding, project management, construction and finance The Team •250+ employees working together for the past 2.5 years; on top of a 26 year old developer having delivered over 10,000 homes •Management Incentive Plan 100
Slide 6: Strong YTD Performance Further De-Risking the Platform
Strong YTD Performance Further De-Risking the Platform HIGHLIGHT JOB CREATION CONTINUING TO PUSH HOUSING DEMAND CATALONIA UNCERTAINTY GDP expected growth in 2017 Housing affordability Unemployment in Q3 PROVIDING AN 1 3.1% y-o-y 6.95x price to avg. income* 16.4% (-2.6% YoY) Above European Average 5.
Slide 7: 2. Business Review
2. Business Review LEIOANDI HOMES – LEIOA (VIZCAYA)
Slide 8: Supply-Demand Imbalance + Job Creation Pushing Forward
1 Supply-Demand Imbalance + Job Creation Pushing Forward GDP Growth and Growing Employment Pushing Demand Few Players to Satisfy Growing Demand Job creation: unemployment declined to lowest since 2008 (16.4%) Strong HPA growth (5.6% in Q2 2017 YoY) but prices still 27% below peak GDP to increase 3.1
Slide 9: Catalonia's Uncertainty as an Opportunity: Neinor's 2-Year Advantage
1 Catalonia’s Uncertainty as an Opportunity: Neinor’ 2-Year Advantage Catalonia in Spain Neinor Homes’ Exposure to Catalonia Overreaction Presents an Opportunity Catalonia’s Independence Challenge After more than 2 years of successful activity, Markets have reacted to uncertainty • Unilateral indepe
Slide 10: Delivering on Accretive Acquisitions
2 Delivering on Accretive Acquisitions In-House Acquisitions Team Continued to Add Top Quality Plots to the Land Bank Acquisition Program Evolution (1) High quality fully-permitted land acquisitions YTD totalled EUR 275m, representing more than 3,000 units with gross margins of c. 27% YTD* 100% of 7
Slide 11: Delivering on Pre-Sales
3 Delivering on Pre-Sales Optimising the Speed of Sales to Capture More HPA Active Commercialisation in 50 Developments Sales in Q3 in line with H1 UNITS Sites 1,080 units pre-sold YTD (in line with expectations), equivalent to 4.000 on the 50 market EUR 368m (8% ahead of YTD expectations) 3.500 40
Slide 12: Delivering on Development: Sites in Production
4 Delivering on Development: 71 Sites in Production Advantage into the Ramp-Up Years Ahead of Competition Accelerated Development Activity # Sites 60 61 69 78 Activity in Q3 # Units 4,002 4,036 5,004 5,706 80 (2) 5 New Launches (528 units) 5+2 70 3+2* 1 3 new WIP (construction starts) – 169 units 60
Slide 13: Deliveries Already Arriving: 185 Units YTD
4 Deliveries Already Arriving: 185 Units YTD 2 Successful Deliveries in Q3 to take the total YTD to 5 Delivered Sites On Track 5* sites (185 units) delivered YTD on time and on budget EUR 39m in revenues with a gross margin of ca. 27% Leku Eder Homes and Urduliz Homes (32 units) delivered in Q3 Nein
Slide 14: Delivering on Complimentary Ancillary Businesses
5 Delivering on Complimentary Ancillary Businesses Legacy Remaining BV and Quarterly Sales (EUR m) Servicing Revenues and EBITDA evolution 10 9 250 8 200 7 6 EUR m 150 -48% since 5 EUR m Dec’16 4 100 3 50 2 1 0 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Slide 15: 3. Financial Overview
3. Financial Overview PRADO HOMES – BOADILLA (MADRID)
Slide 16: Key Financial Highlights
6 Key Financial Highlights Positive Operating EBITDA1 YTD thanks to the increasing weight of Development Business: 2 sites delivered in Q3, 5 so far in 2017 with margins aligned with expectations. Ancillary Business weight on total revenues YTD: 77% In August 2017 Neinor Homes signed a bridge loan w
Slide 17: P&L Statement: Positive Operating EBITDA and Increasing Weight of Development Business
6 P&L Statement: Positive Operating EBITDA and Increasing Weight of Development Business Consolidated P&L (in EUR m) €M YTD Q3 2017 Positive Operating EBITDA of EUR 0.5m in line with H1 results (EUR 1.6m) Revenues 169,4 Strong revenue performance (in line with expectations). Driven by ancillary busi
Slide 18: CF Statement: Strong Investment and Positive Net Cash-Flow
6 CF Statement: Strong Investment and Positive Net Cash-Flow Summary Cash Flow (in €M) €M YTD Q3 2017 Profit (Loss) before Tax1,2 -6,1 Positive CF from operating activities of EUR 0.1m. Adjustments 6,2 Negative Free CF of EUR 199.2m: Amortization 0,5 Strong investment in Development inventories of o
Slide 19: Balance Sheet: Strong Cash Position Despite Asset Growth
6 Balance Sheet: Strong Cash Position Despite Asset Growth Summary Balance Sheet (in EUR m) €M Q3 2017 EoP 2016 Change Total Balance Sheet of ~EUR 1.3 bn. Total Equity of EUR 721m PPE 1,7 1,6 0,1 7,9% and total Liabilities of EUR 577m (Non-Current EUR 18m and Investment Property 9,5 12,9 -3,4 -26,7%
Slide 20: Working Capital: Development Inventories Growing
6 Working Capital: Development Inventories Growing Working Capital (in EUR m) €M Q3 2017 EoP 2016 Change INVENTORIES & INVESTMENT PROPERTY Investment Property 9,5 12,9 -3,4 -27% Inventories 1.132,0 925,4 206,7 22% LEGACY (10% OF INVENTORIES) Debtors 64,5 29,6 34,9 118% Trade & Receivables 21,8 20,6
Slide 21: Net Debt: Conservative Ratios Including the Bridge Loan
6 Net Debt: Conservative Ratios Including the Bridge Loan Net Debt (in EUR m) €M Q3 2017 EoP 2016 Change KEY RATIOS Gross Debt 453,6 315,6 138,1 43,8% NET DEBT / EQUITY LTC LTV Non-Current Bank Borrowing 17,6 26,6 -9,0 -33,8% 56% 46% 35% 31% 25% 21% Corporate Financing 17,6 26,6 -9,0 -33,8% Current
Slide 22: 4. Case Studies
4. Case Studies AIGUADOLÇ HOMES – SITGES (BARCELONA)
Slide 23: Acquisition: Juan XXIII, Valencia (Levante)
Acquisition: Juan XXIII, Valencia (Levante) 9 weeks Launched WIP Delivery Land Marketing Plan Design / Procurement / Commercialisation Under Construction Post Acquisition Sale Land plot located in the Benicalap district, a consolidated residential area in Valencia that hosts c. 45,000 inhabitants. B
Slide 24: Immediate Launch: Montcada i Reixac (East)
Immediate Launch(1): Montcada i Reixac (East) 6 weeks Launched WIP Delivery Land Design / Procurement / Commercialisation Under Construction Post Acquisition Marketing Plan Sale Montcada i Reixach is a municipality of approx. 34,000 inhabitants in the metropolitan area of Barcelona This municipality
Slide 25: Launched: Iturribarri Homes II (North)
Launched: Iturribarri Homes II (North) Launched 32 weeks WIP Delivery Land Marketing Plan Under Construction Post Acquisition Design / Procurement / Commercialisation Sale Ituribarri Homes II is the second development of the Company in Getxo, a high end municipality in the metropolitan area of Bilba
Slide 26: WIP: Dehesa Homes (Centre)
WIP: Dehesa Homes (Centre) Launched WIP 17-20 months Delivery Land Marketing Plan Design / Procurement / Commercialisation Under Construction Post Acquisition Sale Dehesa Homes is located in San Sebastián de los Reyes, a dormitory city with c. 86k inhabitants located 20km North West from Madrid The
Slide 27: 5. Non Financial Reporting
5. Non Financial Reporting PLAZA EUROPA 38 HOMES – HOSPITALET (BARCELONA)
Slide 28: Non-Financial Reporting: Leading the Sector Transformation
Non- Financial Reporting: Leading the Sector Transformation Institutionalization • New Independent Director: Mr. Alberto Prieto joins the Company’s board as an independent director, replacing Dominique Cressot, who was a dominical director for Lone Star. The Board has now 4 independent directors out
Slide 29: 6. Q&A
6. Q&A ALBORADA HOMES – BENAHAVÍS (MÁLAGA)
Slide 30: StS Neinor wou:
StS Neinor wou: