Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2011 Earnings Presentation
57 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, March 2012
Slide 1: Road Show Presentation IGD - FY2011 Results
Road Show Presentation IGD - FY2011 RESULTS
Slide 2: Disclaimer
DISCLAIMER This presentation contains forwards-looking information and statements about IGD SIIQ SPA and its Group. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regar
Slide 3: 2011 results (1/2)
2011 results (1/2) 3 After a promising first half and a sharp deterioration of the macroeconomic and financial environment in the second half of the year, IGD Group achieved more than satisfying results in 2011. OPERATING • Ebitda (core business): € 88.1 mn (Ebitda margin: 71.7%, an increase of PROF
Slide 4: 2011 results (2/2)
4 2011 results (2/2) DIVIDENDS • At a historical maximum: 0.08 € per share • Dividend yield 10.1% (p at 30/12/2011) • Dividend yield 9.4% (p at 7/3/2012) FINANCIAL • Net debt: € 1,129 mn STRUCTURE • Cost of debt amongst the lowest in the sector: 4.08% • Adjusted gearing ratio: 1.38 CONFIRMED • Marke
Slide 5: Highlights
Highlights 5 REVENUES 124.7 € mn •Total revenues (management accounting) (+ 7.3% vs 31/12/2010) •Revenues from core business 122.9 € mn (+ 5.8% vs 31/12/2010 ) EBITDA 88.1 € mn •EBITDA (core business) (+ 6.8% vs 31/12/2010) •EBITDA margin (core business) 71.7% ( + 0.7 percentage points) Group Net Pr
Slide 6: Economic Context
ECONOMIC CONTEXT
Slide 7: The Italian economic context
7 The Italian economic context CONSUMER CONSUMPTION AND CONSUMER CONFIDENCE RETAIL INVESTMENT VOLUME INCOME IN ITALY (change %) 2 110.0 105.0 21% 23% 1 100.0 0 95.0 8% 5% -1 90.0 point values -2 85.0 80.0 -3 2008 2009 2010 2011 2012 43% 2008 2009 2010 2011 Data source: ISTAT Shopping Center Retail P
Slide 8: The Romanian economic context
8 The Romanian economic context ECONOMIC GROWTH: MEDIUM TERM RETAIL STOCK & PIPELINE IN BUCAREST OUTLOOK (% change yoy) AND IN ROMANIA AT 4Q2011 Under construction Planned Bucharest On hold Romania Retail stock 0 1000000 2000000 3000000 4000000 Source: CBRE Source: IHS Global Insight Jan 2012 Outloo
Slide 9: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 10: Consolidated Income Statement
10 Consolidated Income Statement CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/12/2010 31/12/2011 % 31/12/2010 31/12/2011 % 31/12/2010 31/12/2011 % Revenues from freehold properties 101,864 109,110 7.1% 101,864 109,110 7.1% 0 0 n.a. Revenues from leasehold properties 8,231 8,537 3.7% 8,
Slide 11: Reclassified Income Statement Margin
11 Reclassified Income Statement MARGIN CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/12/2010 31/12/2011 % 31/12/2010 31/12/2011 % 31/12/2010 31/12/2011 % Margin from freehold properties 89,573 94,825 5.9% 89,573 94,825 5.9% n.a. Margin from leasehold properties 1,772 1,917 8.2% 1,772 1
Slide 12: Total revenues: +7.3%
12 Total revenues: + 7.3% Total operating revenues: + 7.3% - Total revenues from core business: + 5.8% BREAKDOWN OF REVENUES BY TYPE OF TOTAL REVENUES (€/000) ASSET +7.3 % 1,726 9.6% 1.4% 5,284 0.3% 6,092 0.7% Revenues from trading 62.5% +5.8 % MALL Revenues from services HYPERMARKET CITY 117,647 25
Slide 13: Ebitda (core business): +6.8%, Ebitda margin: 71.7%
13 Ebitda (core business): + 6.8%, Ebitda margin: 71.7% CONSOLIDATED EBITDA (€ 000) EBITDA and EBITDA MARGIN CORE BUSINESS (€ 000) 71.7% 71.0% 8,470 2,425 147 82,480 88,119 88,509 82,317 Ebida 31/12/2010 Change in revenues Change in direct costs Change in G&A Ebitda 31/12/2011 31/12/2010 31/12/2011
Slide 14: Group Net Profit: +2.4%
14 Group Net Profit: + 2.4% NET GROUP PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) 553 942 + 2.4% 5,639 7,890 3,386 29 Total tax rate changes 29,340 30,057 from 7.9% FY10 to 30,057 29,340 -3% FY11. Group net Change in Change Ebitda Change in Change in Change in Change in Group net 31/12/2010 31/12/20
Slide 15: Funds From Operations
15 Funds From Operations FFO (€/000) 30/09/2010 30/09/2011 D D% Pre-tax profit 31,782 29,142 -2,640 -8.3% Depreciation & other provisions 1,463 871 -592 -40.4% Real estate devaluation&investments 3,842 500 -3,343 -87.0% Change in FV 8,746 14,150 5,404 61.8% Income tax for the period -2,834 -1,397 1,
Slide 16: 2011 results confirm of a rewarding business model
16 2011 results confirm of a rewarding business model A careful merchandising mix, marketing activity DIRECT MANAGEMENT of centers adapted to each context and various customer related services, but especially in this economic environment careful attention paid to tenants and their problems. MEDIUM S
Slide 17: Performance of our Shopping Centers
17 Performance of our Shopping Centers TENANT SALES AND FOOTFALLS IN OUR SHOPPING MALLS SALES FOOTFALLS Total trend LFL Total trend LFL abs. Value ITALY 12.0% - 2.9% 18.1% 0.8% 68.1 mn ROMANIA n.p* - 0.8% 31.3 mn *not all our tenants have a cash register ITALY Footfalls : + 0.8% particularly positiv
Slide 18: Hypermarkets and shopping malls trends
18 Hypermarkets e shopping malls trends HYPERMARKET/SUPERMARKET SALES IN ITALY Hypermarkets in shopping centers MARKET owned by IGD registered LFL - 1.6% Total trend LFL Total trend LFL Total trend LFL Supermarkets + + 1.5% - 1.0% + 1.7% - 0.3% + 2.5% - 0.8% Hypermarkets Hypermarkets - 2.1% - 3.6% 0
Slide 19: Shopping malls merchandising mix
19 Shopping malls merchandising mix ITALIAN SHOPPING MALLS MERCHANDISING ITALIAN SHOPPING MALLS MIX GLA MERCHANDISING MIX TURNOVER entertainment 0.1% entertainment services 6.0% bars & restaurants 3.3% 7.1% sport bars & restaurants services 7.4% 8.2% 5.8% sport other 8.8% 0.9% personal care 17.2% cl
Slide 20: Tenants in Italy
Tenants in Italy 20 TOTAL CONTRACTS Italy Malls 1,043 Hypermarkets 19 Total 1,062 BRANDS BREAKDOWN IN OUR MALLS 13.2% 20.1% 66.6% LOCAL BRANDS NATIONAL BRANDS INTERNATIONAL BRANDS The continuous dialogue with tenants resulted in an effective relationship and this enabled the sudden and critical situ
Slide 21: Tenants in Romania
21 Tenants in Romania TOTAL CONTRACTS 612 LENGTH OF CONTRACTS Consolidation tenant portfolio 2010 2011 3% 19% 36% 36% 61% 45% <3 years from 3 to 5 years > 5 years <3 years from 3 to 5 years > 5 years March 2012 IGD‟s Presentation
Slide 22: Contracts in Italy and Romania
Contracts in Italy and Romania 22 EXPIRY DATE OF CONTRACTS OF HYPERMARKET EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. of contracts) MALLS IN ITALY (% of value) 120% Nr. 19 120% 100% 100% 100% 100% 80% 80% Nr. 516 Malls 57.1% Malls 60% 60% 49.4% Nr. 244 Hypermarket/ Hyperma
Slide 23: Focus on Romania
23 Focus on Romania VALUE ADDED CONTRIBUTION by Winmarkt REBRANDING To emphasize the concept of group management and enhance the strength of central location Continuous decrease in vacancy from 22.58% end 2010 to 11.23% end 2011 Continuous introduction of new brands and new product categories dedica
Slide 24: IGD spaces to be lived in
24 Igd spaces to be lived in… COMMON APPROACH TO MARKETING Saving of 10% of marketing costs • CREATING A COMMON IDENTITY maintaining individual local characteristics • Shopping centers as places to be lived in, meeting places, provided good footfalls (+0.8% LFL) “NEW“ EVENTS FOR IGD Give precedence
Slide 25: Portfolio
PORTFOLIO
Slide 26: Italian Portfolio
Italian Portfolio 26 51 REAL ESTATE UNITS IN 11 ITALIAN REGIONS: 19 shopping malls and retail park 19 hypermarkets and supermarkets 1 city center 4 plots of land for development 1 property held for trading 7 other Emilia Romagna 5 shopping malls, 8 hypermarkets-Super, 1 city center, 5 other, 1 land
Slide 27: Romanian Portfolio
27 Romanian Portfolio 15 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 DIFFERENT ROMANIAN MEDIUM SIZED CITIES GEOGRAPHICAL DISTRIBUTION OF ROMANIAN PORTFOLIO 15% 24% 100,000 <x <= 200,000 inhabitants x > 200,000 inhabitants x <= 100,000 inhabitants 61% March 2012 IGD‟s Presentation
Slide 28: Italian and Romanian Portfolio
Italian and Romanian Portfolio APPRAISAL BREAKDOWN OF 28 PORTFOLIO PROPERTY % APPRAISER CATHEGORY PORTFOLIO BREAKDOWN BY TYPE OF IGD‟S PORTFOLIO Hypermarkets and 13.27% CBRE MARKET VALUE Supermarkets 14.66% REAG 29.86% CBRE Shopping Malls 23.64% REAG 1.4% HYPERMARKET/SUPERMARKET City Center 1.42% CB
Slide 29: Portfolio characteristic
29 Portfolio characteristic € mn MKT VALUE MKT VALUE 31/12/2010 31/12/2011 LFL Italian Portfolio 1,508.40 1,505.26 Income related assets in 2011 (Hypermarkets of Conè 62.00 \ in Conegliano and La Torre in Palermo) Asset held for trading + lands + other 152.09 115.48 (in addition to work under constr
Slide 30: Market value evolution
30 Market value evolution ITALIAN Portfolio MARKET VALUE EVOLUTION (€ 000) Change in income related FV LFL (hypermarkets, shopping malls and other): - 0.05% 2,500,000 RGD WINMARKT ITALY LFL change HYPERMARKETS: +1% LFL change SHOPPING MALLS and RETAIL PARKS: -0.52% 2,000,000 (including Crema and Cen
Slide 31: NAV
31 NAV NNAV FY10 FY11 NNAV PS (€) Market value ow ned properties, lands and development initiatives, assets held for trading a 1,803.98 1,924.65 2.55 Investment properties, lands and development initiatives, assets 2.53 held for trading b 1,804.01 1,916.79 Potential capital gain /loss c=a-b (0.03) 7
Slide 32: Financial Structure
FINANCIAL STRUCTURE
Slide 33: Financial Highlights 1/2
33 Financial Highlights 1/2 31/12/2010 31/12/2011 ADJUSTED GEARING RATIO (net of Cash Flow Hedge reserve effects) 1.28 1.38 LOAN TO VALUE 56.4% 58.7% COST OF DEBT 3.53% 4.08% INTEREST COVER RATIO 2.33 2.04 AVERAGE LENGHT OF LONG TERM DEBT 12 years 11.5 years AVERAGE LENGHT OF LONG TERM DEBT includin
Slide 34: Financial Highlights 2/2
34 Financial Highlights 2/2 31/12/2010 31/12/2011 BALANCED CAPITAL STRUCTURE 84.0 % (LT debt +Bond) 78.6 % HEDGING ON LONG TERM DEBT + BOND 74.1 % 79.1% HEDGING ON LONG TERM DEBT 65.1% 74.1 % BANKING CONFIDENCE € 293 mn € 303 mn BANKING CONFIDENCE AVAILABLE* € 173.6 mn € 106.7 mn ASSETS MKT VALUE MO
Slide 35: Financial structure
35 Financial structure NET DEBT COMPOSITION (€ 000) 14,954 16,138 895,236 1,128,968 37,608 197,308 Short term debt Current share of long term Long term debt Valorizzazione opzioni Cash&cash equivalents PFN debt DEBT MATURITY (€ 000) 90,000,000 230mn CONV 80,000,000 BOND deadline 70,000,000 28/12/201
Slide 36: Net debt
36 Net debt SENSITIVITY 5.00% Euribor 3M: 1.457 % cost of debt: 4.08% In the event of an increase or at 31/12/2011 decrease in rates the average 4.00% cost of debt would increase inferior in proportion thanks to 3.00% hedging. 2.00% 1.00% 0.00% Euribor 3M 0.71% 0.96% 1.21% 1.46% 1.71% 1.96% 2.21% NE
Slide 37: Reclassified Balance Sheet
37 Reclassified Balance Sheet SOURCES/USE OF FUNDS(€ 000) FY10 FY11 D D% Fixed assets 1,782,089 1,897,756 115,667 6.5% NWC 85,239 68,909 -16,330 -19.2% Other long term liabilities -76,792 -70,644 6,148 -8.0% TOTAL USE OF FOUNDS 1,790,536 1,896,021 105,485 5.9% Net debt 1,017,082 1,128,968 111,886 11
Slide 38: Dividend
38 Dividend Thanks to the good results reached in 2011, the IGD BoD will ask AGM of 19 April 2012 to approve the distribution of a: dividend of 0,08 € per share DIVIDEND (€) DIVIDEND YIELD (%) 10.81% 5.14% 0.075 0.080 3.21% 0.050 2009 2010 2011 2009 2010 2011 Which represents: An increase of 6.7% (0
Slide 39: Dividend Reinvestment Option
39 Dividend Reinvestment Option The Board of Directors at the Annual General Meeting to be held on 19 April 2012 will propose a capital increase without pre-emption rights for shareholders, coupon holders entitled to receive the 2011 dividend. The shareholders who decide to subscribe will be offered
Slide 40: Dividend Reinvestment Option: steps
40 Dividend Reinvestment Option: steps Who can participate Shareholders, coupon holders entitled to receive the 2011 dividend The total offer will amount to 80% of the proposed 2011 dividend How much Each shareholder may subscribe to a number of shares, the amount of which does not exceed 80% of the
Slide 41: Appendix
Appendix
Slide 42: IGD Group
42 IGD Group 100% 0,1% 100% Immobiliare WinMagazine Millennium Larice Gallery 15% 99.9% 60%(*) Iniziative WinMagazine Bologna Nord 100% WinManagement (*) Porta Medicea is 80% consolidated on the back of the Put&Call option on the 20% minority stake. March 2012 IGD‟s Presentation
Slide 43: Governance and Shareholders
Governance and Shareholders 43 This Board of Directors is going to expire, and the AGM on 19 April 2012 will appoint new BoD Board of Directors was IGD BOARD OF DIRECTORS: renewed by the AGM on Lead Related-parties 23 April, 2009 Audit Nomination Compensantion Non-executive Executive Indipendent Ind
Slide 44: Pipeline BP 2009-2013
Sale of JV RGD (15/12/2010): 59mn€ Pipeline BP 2009-2013 Iper Conè 23,5 mn € 30/06 Iper La Torre 36 mn € 14/07 44 Via RIZZOLI Closing 17/04/2011 25 mn€ Vigevano Inv. per Turn (sold with RGD Inv. in over provided stake) City center replacement in 2011 and project of Gorizia 2012 900 28 Provided in pr
Slide 45: Pipeline BP 2009-2013
45 Pipeline BP 2009-2013 Investment cash-out Previous 2009 2010 2011 2012 2013 Amount Total amount (mn euro) years in the in the Plan Plan invested 1 GUIDONIA 90 118.5 2 CATANIA GALLERY 14.4 59.0 2009 3 CATANIA HYPERMARKET 39.5 39.5 4 FAENZA 85.3 85.3 5 ASTI 5.1 45.0 6 VIBO VALENTIA 30.0 30.0 7 PALE
Slide 46: Porta a Mare Project development - Livorno
46 Porta a Mare Project development - Livorno BREAKDOWN SURFACE “PORTA A MARE” PROJECT 32% 29% retail Total surface 70,000 sqm Tot expected inv residential about € 200 mnoffices Tot expected revenues touristic about € 240 mn 18% 21% 5 AREAS TYPOLOGY START WORK Piazza Mazzini (included retail, reside
Slide 47: Porta a Mare Project development - Livorno
Porta a Mare Project development - Livorno 47 Strong interest has been seen in the residential area with 14 committed proposals in the first 4 months of which many transformed into preliminary purchase contracts. 73 residences having planned in the sub area of Piazza Mazzini and 97 in the sub area o
Slide 48: Porta a Mare Project - work in progress and banking confidence
“PORTA A MARE” PROJECT – Livorno: 48 work in progress and banking confidence Sub area Piazza Mazzini retail (including reail tertiary) 7,685 sqm Start of work Dec 2010 residential 6,348 sqm Investment expected 63mn€ End of work end 2013 Revenues expected 79.8mn€ P. Orlando (tertiary) 5,276 sqm Total
Slide 49: Restyling and extension ESP - Ravenna
Restyling and extension ESP- Ravenna 49 Before the restyling RESTYLING End of work by the end of 2011 The restyling (inside and outside) regards lighting, flooring, furnishing and layout of some stores in the shopping mall. Total expected investment about 2.6 mn € After the restyling EXTENSION: at t
Slide 50: Extensions Porto Grande and Centro D'Abruzzo
50 Extensions Porto Grande and Centro D‟Abruzzo “PORTO GRANDE” Shopping Center in “Centro D‟Abruzzo” Shopping Center in Porto d‟Ascoli (AP) San Giovanni Teatino (CH) Start of work within end of 2012 Start of work within end of 2012 End of work by May of 2014 End of work by May 2014 Work stage: the f
Slide 51: Chioggia Retail Park
51 Chioggia Retail Park Chioggia Retail Park (VE) Start of work 1H2012 End of work November 2013 The project consists of a total GLA of 18,343 sqm, in which there will be an Ipercoop of 7,490 sqm, 5 medium surfaces for a total of 9,575 sqm and 8 stores of which one will be a restaurant. The expected
Slide 52: Disposals - BP 2009-2013
52 Disposals – BP 2009-2013 We expect some 160 mn € of proceeds from disposals over the 2009-2013 period (they were 60-70 mn € in the previous 2009-2013 BP) May 2010 DISPOSAL OF A 20% STAKE IN PORTA MEDICEA Completed in 2010 for 13.1 mn € (book value was 12 mn €) 1-year delay in sales; now expected
Slide 53: Main lease terms
53 Main lease terms ITALIAN SHOPPING ITALIAN ROMANIAN SHOPPING MALLS HYPERMARKETS MALLS Average maturity Average maturity Average maturity LEASE AGREEMENT Around 18 years 2 years for local tenants (spaces + licences) around 6 years Rents‟ indexation 5 years for national tenants RENTAL AGREEMENT 75%
Slide 54: Hypermarkets and shopping malls
54 Hypermarkets and shopping malls TENANTS OF 19 SHOPPING MALLS 19 HYPERMARKETS HYPERMAKET CENTRO D'ABRUZZO - Pescara CENTRO D'ABRUZZO - Pescara Coop Adriatica PORTO GRANDE - Porto D'Ascoli PORTO GRANDE - Porto D'Ascoli Coop Adriatica ESP - Ravenna ESP - Ravenna Coop Adriatica BORGO - Bologna BORGO
Slide 55: Siiq status
55 Siiq status ASSET & REVENUES TEST: the „must be‟ %: at least 80% of total assets must be RENTAL ASSET KEY FEATURES at least 80% of total positive compenents of P&L (excl change in FV) must be RENTAL INCOME Exemption from Italian Corporate taxation INCOME TAXATION (IRES and IRAP) 31,4% tax rate on
Slide 56: World
WORLD 56 9 big legal entities Turnover (2010): 12.9 mn € (18.3% of the total market) Points of sale: 1,444 (37 new openings in 2010) Employees (2010): 56,600 people Members (2010): 7.4 mn people Associate Companies: Insurance & banking Discount chain Bookstore The largest high quality food market Tr
Slide 57: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 M. +39 3386211738 claudia.contarini@gruppoigd.it Raffaele Nardi T. +39. 051 509231 raffaele.nardi@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it