Immobel Sa · EURONEXT:IMMO
Immobel Sa — Investor Presentation (September 2020)
43 slides from Immobel Sa's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION September 2020 0
Slide 2: Today's Presenters
TODAY‘S PRESENTERS Marnix Galle Karel Breda (Executive Chairman and CEO) (CFO) In total more than 30 years of professional real estate In total more than 17 years of professional finance sector experience experience Founder of Allfin in 2001, a leading Belgian real estate Previous functions include
Slide 3: Shaping the Landscape of European cities since 1863
Shaping the Landscape of European cities since 1863 2
Slide 4: >150 Years Proof-of-Delivery
>150 YEARS PROOF-OF-DELIVERY First visionary Deployment in Family-owned Acquisition of work-site Luxembourg ALLFIN becomes Nafilyan & Partners, French 2008 the major residential property developer 1930 shareholder 2019 Merger with Real Creation of the IMMOBEL Start of office 2014 Estate Social Fund
Slide 5: Major drivers have impacted modern society over the past few years
MAJOR DRIVERS HAVE IMPACTED MODERN SOCIETY OVER THE PAST FEW YEARS... Older Single Moving to Urban Healthy Growing population households centers densification living style standard of living 6 Climate Sustainable Smart Residential Negative High change economics homes IoT interest rates uncertainty 4
Slide 6: ...with a structural impact on the real estate sector
...WITH A STRUCTURAL IMPACT ON THE REAL ESTATE SECTOR Urban transformation New ways of living and Green buildings “Real estate as a service” working that include facilities as amenities The answer to these challenges: The delivery of relevant projects to improve urban living 5
Slide 7: Potential implications from the COVID-19 situation
POTENTIAL IMPLICATIONS FROM THE COVID-19 SITUATION Rethinking residential space Re-imagining office space Reconfiguration of space Re-assessment of the role of the office ▪ More space for home office, easing work ▪ Increased WFH arrangements vs impact on from home (WFH) environment productivity ▪ Bi
Slide 8: Immobel is uniquely placed to deliver
IMMOBEL IS UNIQUELY PLACED TO DELIVER Proven track-record Strong in-house capabilities Long-standing local partner network >EUR 200 #1 2.5bn Total turnover for relevant projects to Highly talented individuals with unique First partner of choice for various local improve urban living(1) profiles auth
Slide 9: Immobel at a glance
IMMOBEL AT A GLANCE EUR 4.8bn ~75 % GDV(1) Residential 18% exposure as % of GDV average gross margin of the total portfolio’s future revenue >75 Projects secured >15% Focus on ROE Note(s): (1) Please refer to the appendix for the definition 8 Source(s): Company information
Slide 10: Key highlights
KEY HIGHLIGHTS 1 Leading real estate developer strongly benefitting from structural growth drivers in top-tier European cities Market 2 Scalable and diversified business model backed by established partner network, allowing full control of the entire value chain Business model 3 Unique combination o
Slide 11: Immobel's European presence
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S EUROPEAN PRESENCE European presence Brussels, Belgium GDV: EUR 2.4bn 1 Total residential m2: 497,279 Total office m2: 192,355 No. of projects: 29 projects 1 Brussels Luxembourg City, Luxembourg 2 3 GDV: EUR 84
Slide 12: Brussels real estate market – residential
Market Business model Operational track-record Financial profile Growth strategy BRUSSELS REAL ESTATE MARKET – RESIDENTIAL # permitted apartments Supply ▪ Permits being issued for new, large, mixed-use/ 2,661 2,444 2,61 9 residential developments in Brussels are at an 2,1 68 1 ,583 1 ,81 9 all-time
Slide 13: Brussels real estate market – office
Market Business model Operational track-record Financial profile Growth strategy BRUSSELS REAL ESTATE MARKET – OFFICE Supply ▪ Total Brussels office market amounts to 13 1 .4 1 .4 1 .3 1 .2 1 .1 1 .1 million m² 0.9 0.9 ▪ Generally, Brussels displays a vacancy rate of 1 0.5% 1 0.3% 9.8% 9.0% ~7%, how
Slide 14: Immobel's position in Brussels
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN BRUSSELS BROUCKERE MÖBIUS CHAMBON RAC 4 COMMERCE 46 ~40,000m² - Mixed-use ~63,000m² - Office ~50,000m² - Mixed-use ~59,000m² - Mixed-use ~14,000m² - Office MULTI TOWER ~45,000m² - Office COURS ST-M
Slide 15: Luxembourg real estate market – residential
Market Business model Operational track-record Financial profile Growth strategy LUXEMBOURG REAL ESTATE MARKET – RESIDENTIAL Demographics Economics ▪ Luxembourg’s GDP has tripled in the course of 2.4% 2.3% 2.4% 2.4% 2.4% 4.9% 4.3% 4.3% 4.6% the last 25 years 2.2% 2.2% 3.7% 3.1% 1 .8% 1 .9% 1 .7% 2.5
Slide 16: Luxembourg real estate market – office
Market Business model Operational track-record Financial profile Growth strategy LUXEMBOURG REAL ESTATE MARKET – OFFICE Supply 234 225 209 206 1 89 ▪ Stock has increased by more than 30% over the 1 79 1 71 1 57 1 39 1 35 1 34 last 10 years ▪ Access to developable land is limited - offer can 7.2% 6.1
Slide 17: Immobel's position in Luxembourg
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN LUXEMBOURG LAANGFUR ~26,000m² - Mixed-use INFINITY ~36,000m² - Mixed-use MAMER THOMAS ~14,000m² - Residential ~6,000m² - Office NOVA ~4,000m² - Office POLVERMILLEN ~27,000m² - Residential LIVINGSTO
Slide 18: Paris real estate market – residential
Market Business model Operational track-record Financial profile Growth strategy PARIS REAL ESTATE MARKET – RESIDENTIAL ▪ Currently Paris is undergoing a supply shock to Supply(1) 37,300 34,000 28,700 31,000 which the delay of municipal elections is 26,700 27,300 27,700 21,800 22,300 adding, leading
Slide 19: Paris real estate market – office
Market Business model Operational track-record Financial profile Growth strategy PARIS REAL ESTATE MARKET – OFFICE Supply 6.9% 6.9% 7.5% 7.7% 7.5% ▪ Permit delays due to municipal election affect 6.8% 6.7% 6.1% 5.4% 5.0% 5.5% the supply of available offices for rent ▪ Many contrasts between sectors;
Slide 20: Immobel's position in Paris
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL’S POSITION IN PARIS AUBERVILLIERS ZAC BUTTES CHAUMONT DU FORT ~6,000m² - Residential ~17,000m² - Residential RUEIL MALMAISON ~29,000m² - Office building SAINT ANTOINE ~6,000m² - Office LOUVECIENNES ~7,000m² - Re
Slide 21: Fragmented developer space
Market Business model Operational track-record Financial profile Growth strategy FRAGMENTED DEVELOPER SPACE Highly fragmented European residential real estate markets Immobel outperforms its competitors Limited number of international competitors Immobel’s competitive advantages comprise... Specific
Slide 22: Immobel's proven business model
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL‘S PROVEN BUSINESS MODEL Sourcing Acquisition Development Construction Marketing & sales Due diligence Conception and permitting Process management In-house sales team 80-100 initial screenings Financial, legal a
Slide 23: Proven portfolio strategy
Market Business model Operational track-record Financial profile Growth strategy PROVEN PORTFOLIO STRATEGY Portfolio by country Portfolio by asset class Portfolio by status Time to delivery 1 0% 3% 6% 3% 1 7% 27% 31 % 23% EUR EUR EUR EUR 1 9% 4.8bn 51 % 4.8bn 48% 4.8bn 4.8bn GDV GDV GDV GDV 73% 32%
Slide 24: Proven track record for >150 years
Market Business model Operational track-record Financial profile Growth strategy PROVEN TRACK RECORD FOR >150 YEARS Proven track record Highly attractive project portfolio Centre Monnaie HQ Deloitte Ernest Multi Black Pearl HQ Allianz RAC 3 De Brouckere TBD Eden TBU Chambon HQ Allen & Overy Panorama
Slide 25: Illustrative example of contracted sales, cash and IFRS revenue recognition
Market Business model Operational track-record Financial profile Growth strategy ILLUSTRATIVE EXAMPLE OF CONTRACTED SALES, CASH AND IFRS REVENUE RECOGNITION 1 5% 20% 0% 0% 0% 100% 90% -1 5% 80% -20% 50% 40% 25% 20% 5% 5% Acquisition Permitting Construction Delivery (1 month) (19 months) (26 months)
Slide 26: Overview of current project pipeline
Market Business model Operational track-record Financial profile Growth strategy OVERVIEW OF CURRENT PROJECT PIPELINE Project Country Type Gross sqm GDV (EURm)(1) % sold(2) H1 2020 H2 2020E 2021E 2022E 2023E 2024E+ Greenhill Park BEL Residential 6,440 31.8 86.8% Parc Seny BEL Residential 14,305 59.4
Slide 27: Highlights of Immobel's project pipeline
Market Business model Operational track-record Financial profile Growth strategy HIGHLIGHTS OF IMMOBEL‘S PROJECT PIPELINE ~61,000sqm ~5,700sqm EUR 88m GDV Total Total N/A(1) 50% 100% Immobel share Immobel share 524/ 5 20/ 1 Apartments/ retail units Apartments/ retail unit ~5,000sqm ~4,700sqm Offices
Slide 28: On track to outperform stress case scenario in 2020
Market Business model Operational track-record Financial profile Growth strategy ON TRACK TO OUTPERFORM STRESS CASE SCENARIO IN 2020 (EURm) Operating income guidance >13% CAGR Earnings delay in 2020 & 2021 due to COVID-19 which is recovered in 2022 >7% CAGR 700 600 486 500 400 400 320 239 2019A 2020
Slide 29: Results impacted by COVID-19, resilient business model
Market Business model Operational track-record Financial profile Growth strategy RESULTS IMPACTED BY COVID-19, RESILIENT BUSINESS MODEL ▪ Strong impact of COVID-19 on new sales, progress on construction sites and ongoing permitting process; recovery of sales post-lockdown ▪ Contracted sales volume f
Slide 30: Immobel has achieved record results since merger
Market Business model Operational track-record Financial profile Growth strategy IMMOBEL HAS ACHIEVED RECORD RESULTS SINCE MERGER ROE (EURm) Net income 30% 1 02 Allfin Merger Allfin Merger 68 1 9% 1 8% 1 7% 53 57 Target ROE 15% Ø 17.3% 9% 1 0% 6% 6% 20 22 Ø 5.4% 16 12 3% 11 11 1% 0.4% 2 1 201 0A 201
Slide 31: Highly scalable business model focusing on profitable growth
Market Business model Operational track-record Financial profile Growth strategy HIGHLY SCALABLE BUSINESS MODEL FOCUSING ON PROFITABLE GROWTH (EURm) Operating income (EURm) EBITDA 546 486 4 23 Margin 12% 21% 27% 18% 39% 15% 70 1 06 371 27 Y-o-Y: 17 1 32 5 Y-o-Y: 64% 1 35 1 34 Y-o-Y: 98 227 206 239 7
Slide 32: Financial stability backed by strong balance sheet
Market Business model Operational track-record Financial profile Growth strategy FINANCIAL STABILITY BACKED BY STRONG BALANCE SHEET Gearing(1) (EURm) Debt maturity schedule as of H1 2020A (3) 70% Project financing Additional 1 02 Corporate financing 2 61 % headroom 59% 54% to drive 1 1 91 53 1 82 1
Slide 33: Acquisitions strengthen market position in each core market
Market Business model Operational track-record Financial profile Growth strategy ACQUISITIONS STRENGTHEN MARKET POSITION IN EACH CORE MARKET (EURbn) Historical acquisitions GDV Gross GDV Project Country Type sqm(2) (EURm)(2) 0.94 (0.47) 4.56 0.48 (0.23) 0.05 4.85 (0.37) 0.23 Multi / 0.96 3.85 BEL Of
Slide 34: Liquidity remains strong in the upcoming years
Market Business model Operational track-record Financial profile Growth strategy LIQUIDITY REMAINS STRONG IN THE UPCOMING YEARS Liquidity Cash commitments (EURm) (EURm) ▪ With a strong residential portfolio Potential delivering recurring sales, Immobel still Additional future sales 1 1 expects furth
Slide 35: Key building blocks of future growth
Market Business model Operational track-record Financial profile Growth strategy KEY BUILDING BLOCKS OF FUTURE GROWTH Market penetration Market expansion Platform development Future Partnerships with investors to further improve capital efficiency Further diversification of Immobel‘s platform into G
Slide 36: Shaping the Landscape of European cities since 1863
SHAPING THE LANDSCAPE OF EUROPEAN CITIES SINCE 1863
Slide 37: Appendix
Appendix
Slide 38: Profit and Loss Statement (External)
PROFIT AND LOSS STATEMENT EXTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 Operating Income 148,999 326,131 419,547 213,914 Turnover 145,000 313,420 408,784 208,034 Other operating income 3,999 12,711 10,763 5,879 Operating Expenses (127,082) (260,953) (327,192) (185,995) Cost of sales (106,711)
Slide 39: Balance Sheet (External)
BALANCE SHEET EXTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 Non-current assets 66,454 181,670 213,311 251,778 Total equity 306,958 344,749 428,162 477,341 Goodwill - - 43,789 506 Equity share of immobel 306,941 344,633 426,151 474,761 Intangible asset
Slide 40: Profit and Loss Statement (Internal)
PROFIT AND LOSS STATEMENT INTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 Operating Income 226,716 371,265 486,298 238,505 Turnover 222,165 357,131 470,626 229,587 Other operating income 4,551 14,134 15,672 8,917 Operating Expenses (198,940) (297,440) (379,551) (203,522) Cost of sales (176,778)
Slide 41: Balance Sheet (Internal)
BALANCE SHEET INTERNAL (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 (EURk) Dec 2017 Dec 2018 Dec 2019 Jun 2020 Non-current assets 25,398 187,279 252,412 228,029 Total equity 303,578 344,749 426,182 477,341 Intangible and tangible assets 1,439 1,374 51,756 50,521 Non-current liabilities 383,990 414,877
Slide 42: Definitions
DEFINITIONS Gross development ▪ Total expected future turnover (group share) of a project or all projects in the current portfolio value External view ▪ Official IFRS reported figures of the company Internal view ▪ External view figures before the application of IFRS 11 Inventory ▪ Inventories plus
Slide 43: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by receiving and/or reading the The statements included in this presentation are neither reported results nor other historical presentation slides, you agree to be bound by the following limitations: information. These statement