Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — H1 2018 Earnings Presentation
30 slides from Lumo Homes's earnings presentation, Aug 24, 2018
Slide 1: Half Year Financial Report 1−6/2018
24 August 2018 Half Year Financial Report 1−6/2018 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo Plc
Slide 2: Agenda
Agenda • Summary of January−June 2018 • Financial development • Outlook, financial targets and dividend policy Saariniemenkatu 6, Helsinki 2 Kojamo plc’s Half Year Financial Report 2018
Slide 3: The half year financial report will be presented by
The half year financial report will be presented by Jani Nieminen Erik Hjelt CEO CFO 3 Kojamo plc’s Half Year Financial Report 2018
Slide 4: Summary of January−June 2018
Summary of January−June 2018 Kojamo plc’s Half Year Financial Report 2018 4
Slide 5: Operating environment
Operating environment General macroeconomic Development of living habits Urbanisation development and structure of households • General operating environment • Construction volumes • Apartment prices Kojamo is affected by the situation According to the Confederation of Finnish According to a forecas
Slide 6: Strong operational development and increased investments during the review period
Strong operational development and increased investments during the review period • Total revenue increased to EUR 178.0 (167.2) million, • The fair value of investment properties was EUR 4.9 showing 6.4 per cent growth. Total revenue for the (4.4) billion at the end of review period. second quarter
Slide 7: The focus of our operations is on the seven main urban regions of Finland
The focus of our operations is on the seven main urban regions of Finland Apartment distribution, % Fair value distribution, % Helsinki region 56.6% Helsinki region 66.7% Tampere region 14.2% Tampere region 11.7% Turku region 5.3% Turku region 4.5% 34,172 EUR Oulu 6.5% apartments 4.9 Bn Oulu 4.0% Ku
Slide 8: The number of Lumo apartments increased in line with our strategy
The number of Lumo apartments increased in line with our strategy • The number of Lumo apartments increased by 8 per cent year-on-year. • At the end of the review period, the Lumo segment included 32,943 apartments. • The number of apartments in the VVO segment decreased to 1,229. 32,943 31,108 31,0
Slide 9: Key figures
Key figures 4−6/2018 4−6/2017 Change,% 1−6/2018 1−6/2017 Change, % 2017 Total revenue, M€ 89.8 83.6 7.3 178.0 167.2 6.4 337.0 Net rental income, M€ 61.4 55.6 10.4 109.5 101.1 8.3 216.0 Net rental income margin, % of total revenue 68.4 66.5 61.5 60.5 64.1 Profit before taxes, M€ 91.5 80.7 13.3 140.5
Slide 10: Financial development
Financial development Kojamo plc’s Half Year Financial Report 2018 10
Slide 11: Total revenue increased in the first half of 2018, profit improved
Total revenue increased in the first half of 2018, profit improved Total revenue, M€ Profit before taxes, M€ Change in the fair value of investment properties Other items 370.9 346.6 356.5 351.5 337.0 289.7 266.7 224.7 126.4 140.5 167.2 178.0 146.5 140.5 154.4 132.0 64.5 66.4 75.9 120.3 163.3 126.2
Slide 12: In Lumo segment, total revenue and net rental income increased year-on-year
In Lumo segment, total revenue and net rental income increased year-on-year Total revenue, Lumo segment, M€ Net rental income, Lumo segment, M€ 307.2 291.1 190.3 201.2 208.8 134.6 174.3 176.4 172.4 152.3 111.8 106.6 101.6 93.2 2013 2014* 2015 2016 2017 H1/2017 H1/2018 2013 2014* 2015 2016 2017 H1/20
Slide 13: Investments in Lumo segment continued
Investments in Lumo segment continued Gross investments and sales of investment properties, M€ Modernisation investments and repairs, M€ Gross investments Sales of investment properties Modernisation investments Repairs 696.0 92.3 83.8 78.6 367.3 68.4 223.2 235.0 243.2 46.5 200.5 61.0 129.4 48.4 49.
Slide 14: The value of investment properties developed in line with strategy
The value of investment properties developed in line with strategy Fair value of investment properties, M€ (at the end of the review period) 6 000 M€ 30 Jun 2018 30 Jun 2017 31 Dec 2017 4,923.3 5 000 4,710.2 Fair value of investment properties 4,423.0 4,710.2 4,298.9 4,298.9 4,298.9 1 Jan 3,999.2 4
Slide 15: The occupancy rate remained high and increased during the second quarter
The occupancy rate remained high and increased during the second quarter Financial occupancy rate, % Tenant turnover, % Excluding internal turnover 100 98.5 98.1 97.6 97.4 96.7 96.6 96.5 40 90 35 80 30 28.6 27.6 70 25 23.7 60 21.6 21.2 50 20 40 14.4 14.7 15 30 10 20 5 10 0 0 2013 2014 2015 2016 2017
Slide 16: Equity ratio improved
Equity ratio improved Equity per share, € Equity ratio, % 10 45 9.11 41.3 41.1 40.7 41.3 41.6 9 8.88 40.0 38.7 8.40 40 8.10 8 7.58 35 7 6.75 6.88 30 6 25 5 20 4 15 3 2 10 1 5 0 0 2013 2014* 2015 2016 2017 H1/2017 H1/2018 2013 2014* 2015 2016 2017 H1/2017 H1/2018 *As of 2014, the Group adopted IFRS f
Slide 17: Versatile capital structure
Versatile capital structure Distribution of the Group’s loan maturities 30 June 2018: The Group’s loan distribution 30 June 2018 average maturity of 5.9 years Loan total EUR 2,540 million M€ 700 0% 2% 6% 644 0% Interest subsidy loans 158 M€ 611 600 41% Annuity loans 0 M€ 500 Bonds 1,300 M€ 400 295 L
Slide 18: Strong financial key figures
Strong financial key figures Average interest rate, maturity and interest rate Group’s LTV, Loan to Value, % fixing period of the Group’s loans % Years 2.7 7 48.6 2.5 6 46.8 47.1 46.1 46.7 46.0 39.8 2.3 5 2.1 4 1.9 3 1.7 2 Average interest rate, % 1.5 Average loan period, years 1 Average interest ra
Slide 19: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc’s Half Year Financial Report 2018 19
Slide 20: We are progressing toward our strategic targets
We are progressing toward our strategic targets Straregic key figures Goal 2021 June 30 2018 Fair value of investment properties EUR 6.0 billion EUR 4.9 billion Number of apartments About 38,000 34,172 Equity ratio, % > 40 41.6 Loan to Value, % < 50 46.7 FFO as a percentage of total revenue > 32 22.
Slide 21: Outlook for Kojamo in 2018 (unchanged)
Outlook for Kojamo in 2018 (unchanged) • Kojamo estimates that in 2018, the Group’s total revenue will grow by 3 to 9 per cent year-on- year. In addition, the company estimates that the Group’s FFO for 2018 will amount to between EUR 103 and EUR 116 million, excluding one-off items. Investments in n
Slide 22: Dividend policy
Dividend policy Kojamo’s objective is to be a stable dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group’s equity ratio is 40 per cent or more and taking account of the company’s financial position. 22 Kojamo plc’s Half Year Financial Report 2018
Slide 23: Appendix
Appendix Kojamo plc’s Half Year Financial Report 2018 23
Slide 24: Kojamo’s ten largest shareholders (31 July 2018)
Kojamo’s ten largest shareholders (31 July 2018) Number of Shareholder shares % of shares The number of shareholders after 1. Ilmarinen Mutual Pension Insurance Company 32,359,243 13.1 the completion of the Initial Public 2. Varma Mutual Pension Insurance Company 30,398,089 12.3 Offering was 2,700.
Slide 25: Consolidated income statement
Consolidated income statement M€ 4−6/2018 4−6/2017 1−6/2018 1−6/2017 2017 Total revenue 89.8 83.6 178.0 167.2 337.0 Maintenance expenses -18.4 -17.6 -50.9 -48.5 -85.4 Repair expenses -9.9 -10.4 -17.5 -17.6 -35.6 Net rental income 61.4 55.6 109.5 101.1 216.0 Administrative expenses -11.2 -9.5 -20.2 -
Slide 26: Balance sheet
Balance sheet Group Group Group M€ 30 June 2018 30 June 2017 31 Dec 2017 ASSETS Non-current assets Intangible assets 0.3 0.5 0.4 Investment properties 4,923.3 4,419.1 4,706.5 Property, plant and equipment 30.7 31.1 31.0 Investments in associated companies 2.6 1.2 1.7 Financial assets 0.5 0.5 0.5 Non
Slide 27: Balance sheet
Balance sheet Group Group Group M€ 30 June 2018 30 June 2017 31 Dec 2017 EQUITY AND LIABILITIES Equity attributable to owners of the parent company Share capital 58.0 58.0 58.0 Share issue premium 35.8 35.8 35.8 Fair value reserve -19.4 -27.7 -23.7 Invested non-restricted equity reserve 164.6 17.9 1
Slide 28: Segment information
Segment information Lumo Lumo VVO VVO Group Group 1−6/2018 1−6/2017 1−6/2018 1−6/2017 1−6/2018 1−6/2017 Total revenue, M€ 172.4 152.3 5.7 15.2 178.0 167.2 Operating profit, M€ 106.6 93.2 3.1 8.2 109.5 101.1 Balance sheet, M€ 5,371.9 4,876.5 66.0 179.8 5,421.5 4,980.9 Equity, M€ 2,232.8 1,882.4 20.0
Slide 29: Financial key figures
Financial key figures 30 Jun 2018 31 Mar 2018 31 Dec 2017 30 Sept 2017 30 Jun 2017 Equity ratio, % 41.6 37.4 41.3 40.2 38.7 Interest cover 4.2 4.2 4.2 4.1 4.2 LTV, % 46.7 49.2 46.0 45.9 46.1 Hedging ratio, % 92 87 111 88 83 Average interest rate, % 1.8 1.8 2.0 2.0 1.9 Average loan period, years 5.9
Slide 30: Thank you!
Thank you! Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 www.kojamo.fi Kojamo plc’s Half Year Financial Report 2018 30