Metrovacesa Sa · BME:MVC
Metrovacesa Sa — H1 2021 Earnings Presentation
32 slides from Metrovacesa Sa's earnings presentation, Jul 27, 2021
Slide 1: Results 1H2021
Residencial Nereidas (Torremolinos, Málaga) Results 1H2021 July 27th, 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
Novolérez (Pontevedra, Galicia) 1. Highlights
Slide 5: Highlights
Highlights Continued recovery in housing demand New record quarter in pre-sales: 1H already close to FY20 New Build to Rent agreement for 206 units Deal signed with AEW in Valencia confirms interest outside Madrid Stepping-up on our operating plans On track to meet full-year targets and now intensif
Slide 6: 2. Business Update
Residencial Q (Valencia) 2. Business Update
Slide 7: Key operational data as of June 2021
Key operational data as of June 2021 Active projects Construction Deliveries / Sales Land portfolio Financials Sales Backlog (1) 2,878 €846m 3,620 units in 645 units €12.4m €259m Sold units €294 k/unit ASP (2) delivered Total cash construction Land Sales or completed €271 k/unit ASP (2) + €17.2m in
Slide 8: Spanish Market Dynamics: visible recovery in housing demand
Spanish Market Dynamics: visible recovery in housing demand Demand: housing transactions, accum. 12M (# units) Supply: construction starts, accum. 12M (# units) House prices (% Y/Y change) Source: MITMA and Notaries Source: MITMA Source: INE 700.000 70.000 120.000 8 7 650.000 65.000 100.000 6 600.00
Slide 9: Residential pre-sales: capturing the recovery in demand
Residential pre-sales: capturing the recovery in demand MVC’s pre-sales by quarter (1) # units A record quarter: A record semester: 549 units 956 units sold in 2Q sold in 1H 203 • 1H21 presales (956 units) is 3x larger than 1H20, and Absorption ratios, monthy avg (%)(2) already close to FY20 figure
Slide 10: Deliveries: 645 units in 1H, with a higher ASP and higher margins
Deliveries: 645 units in 1H, with a higher ASP and higher margins Deliveries # of units • 645 units in 1H: +185% yoy • ASP of €307k in 2Q More Higher deliveries 645 • 349 units in 2Q vs 296 units deliveries in 1Q unit prices • Up from €229k in 1Q • €107m revenues in 1H: +124% yoy • 21.5% gross margi
Slide 11: New Build to Rent agreement: 206 units in Valencia
New Build to Rent agreement: 206 units in Valencia Summary of the new transaction • Signed turnkey agreement with AEW to deliver 2 buildings with 206 units in Valencia, next to the iconic City of Arts and Sciences • Moreras Torre: a 21-floor tower with 155 apartments • A second 11-storey building wi
Slide 12: Kickstart on Palmas Altas / Isla Natura
Kickstart on Palmas Altas / Isla Natura A good start on MVC’s largest project • Palmas Altas, now renamed as Isla Natura, is MVC´s largest scale project: +2,000 residential units, 6% of total GAV • A whole new district in the South of Seville, with 67 hectares, designed with the Residencial Mont Bla
Slide 13: Operational activity: backlog, in construction, in commercialization
Operational activity: backlog, in construction, in commercialization Backlog of pre-sales: evolution Backlog split by province # units sales value % units Madrid 5% €746m €275m (€175m) €846m +12% 80% Rest 23% 956 contracts, Málaga 19% growth in Backlog 20% (645) backlog reservations Canary Is. 6% 2,
Slide 14: Land activity: progress on land sales and land management
Land activity: progress on land sales and land management Land Sales Land management • Transformation to fully-permitted: • 185 units transformed in 1H: 2 plots in Barcelona (Sabadell and Manresa) €29.6m 59% and 1 in Málaga (Mijas) sales signed = of FY target • Other relevant milestones: • Palmas Al
Slide 15: Commercial segment: growing investor interest
Commercial segment: growing investor interest Clesa (Madrid) • MVC is preparing a masterplan design for this major site, with 88,700 sqm of buildable area in four buildings with mixed use: • At least 50% for offices and up 50% for alternative uses (coliving, student residence, hotel, etc) • Prelimin
Slide 16: We reinforce our commitment to Sustainability
We reinforce our commitment to Sustainability We work daily on the development of our Strategic Sustainability Plan 2020- We apply our ESG value proposition in each link of the value chain, with 2022, approved in 2020 and updated annually, built upon 8 strategic principles: the following global goal
Slide 17: 3. Financial Overview
Aria (El Ejido, Almería) 3. Financial Overview
Slide 18: Financial accounts: P&L highlights
Financial accounts: P&L highlights Profit & Loss €m 1H 2020 (1) 1H 2021 % Change Revenues 48.6 187.4 286% 286% rise in total Development 47.4 175.0 revenues Land sales 1.2 12.4 Gross Profit 7.8 31.3 301% Improved gross Development 7.7 32.4 development 16.2% 18.5% margin % gross margin dev`t 21.5% in
Slide 19: Financial Debt: sound financial profile
Financial Debt: sound financial profile Net Debt Eur m Dec 2020 Jun 2021 Corporate debt Developer loans 178.8 116.9 • Syndicated bank loan: €193m, after €28m repaid in 1H LTV ratio Corporate debt 257.1 296.7 • Bond: €30m issued in May, 5-yr maturity with a 8.0% Gross Financial Debt 435.9 413.7 4.1%
Slide 20: Cashflow highlights
Cashflow highlights Cashflow Eur m 1H 2021 + EBITDA 8.2 - Net financial expenses paid (5.0) - Corporate taxes paid 0.0 + Land monetisation: Gross operating cashflow of €56.4m Book value of land sold (1) 12.4 COGS of deliveries (land only) (2) 40.8 Cashflow related to deliveries and land sales +/- Ot
Slide 21: Appraisal update: NAV of €16.05 per share, flat post dividend
Appraisal update: NAV of €16.05 per share, flat post dividend Net Asset Value calculation Eur m Dec 2020 Jun 2021 Shareholders’ funds 2,179,8 2,117.4 GAV +/- Capital gains gross 265.4 261.5 €2,724m +/- Other adjustments 54.2 55.0 = NAV gross 2,499.4 2,433.9 +/- Taxes on capital gains (66.4) (65.4) +
Slide 22: 4. Closing Remarks
Dora Maar (Marbella, Málaga) 4. Closing Remarks
Slide 23: Strategic positioning and value proposition
Strategic positioning and value proposition Key bottlenecks for the sector … … but competitive strengths for MVC ✓Access to land Competitive • Lack of quality land in good locations ✓ Our land bank provides greater visibility for strengths ✓Access to financing • Tougher terms to finance residential
Slide 24: Stepping-up on activity / Closing remarks
Stepping-up on activity / Closing remarks On track to meet our full-year 2021 targets ▪ Delivery range: 1,300-1,700 units → Min target range is already 100% covered with pre-sales in finished projects → 50% delivered in 1H and >60% in July ▪ Land sales: >€50m → 59% achieved to date, including privat
Slide 25: Appendices
Mirador de Montserrat (Manresa, Barcelona) Appendices
Slide 26: Profit and Loss Account
Profit and Loss Account (€m) 1H 2020 (1) 1H 2021 A Total Revenues 48.6 187.4 Residential Development 47.4 175.0 Key comments Land Sales 1.2 12.4 Total COGS (40.8) (156.1) Residential Development (39.7) (142.7) Land Sales (1.1) (13.5) A -Total revenues of €187.4m (up 286% YoY) B Gross margin 7.8 31.3
Slide 27: Balance Sheet
Balance Sheet (€m) Dec. 2020 Jun. 2021 A Investment Property 321.3 414.6 Key comments commnents Other non-current assets 154.0 161.2 Total non-current assets 475.3 575.8 A Inventory 1,982.6 1,979.6 1,097.7 A - Book value of real estate assets (inventory + Land 1,071.4 investment property): €2.39bn W
Slide 28: Data series: evolution of key operating data
Data series: evolution of key operating data In commercialization # Units 2017 2018 2019 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 5,378 5,440 5,221 3,840 1,222 Pre-sales in the period 512 888 1,511 1,037 417 424 263 407 263 27 505 242 407 549 FY17 FY18 FY19 FY20 1H 21 Backlog of presal
Slide 29: Portfolio by provinces: strong presence in the key areas
Portfolio by provinces: strong presence in the key areas Top 7 provinces: Portfolio details by province, ranked by % of GAV June 2021 76% of GAV GAV (%) Number of residential units Fully Under Location Total Resid. Commer Total permitted permitting Madrid 21% 14% 49% 4.6k 0.8k 3.8k Barcelona 17% 13%
Slide 30: MVC project examples I
MVC project examples I Llull 495 (Barcelona) Link to project website Terrazas de Poniente Sur (Córdoba) Link to project website Altum Lezkairu (Pamplona) Link to project website Mirades (Terrasa, Barcelona) Link to project website 30.
Slide 31: MVC project examples II
MVC project examples II Atlantia (Huelva) Link to project website Jardins de Can Gambús (Sabadell, Barcelona) Link to project website Serenity Collection (Estepona, Málaga) Link to project website Alamar (Torremolinos, Málaga) Link to project website 31.
Slide 32: Q & A
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