Aedas Homes Sa · BME:AEDAS
Aedas Homes Sa — H1 2019 Earnings Presentation
29 slides from Aedas Homes Sa's earnings presentation, July 2019
Slide 1: H1 2019 Results
Kane Málaga Ramón y Cajal Sevilla H1 2019 Results July 2019 1 H1 2019 RESULTS
Slide 2: Disclaimer
Disclaimer This document has been prepared by Aedas Homes, S.A. (the “Company”) and comprises slides for a Corporate Presentation to the market of the Company and its subsidiaries (the “Group”). For the purposes of this disclaimer, “Presentation” means this document, its contents or any part of it.
Slide 3: Key Highlights
Key Highlights Normalisation of HPA and Construction Cost Inflation Strong visibility on current and future operating targets: Robust sales coverage → 2019: 92% ∕ 2020: 59% ∕ 2021: 15% 5,000+ units on the market ∕ 4,000+ units under construction ∕ c. 2,600 additional permits applied for Expected rev
Slide 4: Agenda
Agenda Villas Arco Norte I Dos Hermanas 1 Business Update 2 H1 2019 Financial Results 3 Valuation Performance 4 H1 2019 RESULTS
Slide 5: Business Plan 2017-2023
Business Plan 2017-2023 01 BUSINESS UPDATE Sustainable Housing Development Plan (IPO Business Plan) Target Launches Target Deliveries # Units 1,773 launched 2,265 launched 3.326 3.000 3.000 3.000 3.063 3.000 2.580 2.438 2.042 1.986 1.748 1.055 231 0 2017 2018 2019 2020 2021 2022 2023 As of 30 June 2
Slide 6: Projects Launched
Projects Launched 01 BUSINESS UPDATE 842 units launched1 in Q2 2019 (GDV: €242 Mn) 5,028 units on the market net of deliveries with €364 ths ASP (GDV: €1,829 Mn) Coverage of deliveries: 2019:100% ∕ 2020:100% ∕ 2021: 78% Ramp-up activity of projects launched2 (by # units) Regional breakdown of total
Slide 7: Marketing Activity
Marketing Activity 01 BUSINESS UPDATE 472 units sold in Q2 2019 (GDV: €146 Mn) 2,578 units in order book (GDV: €913 Mn) Coverage of deliveries: 2019:92% ∕ 2020:59% ∕ 2021: 15% Sales1 Evolution in # units & €Mn Order Book Regional breakdown as of 30 Jun 2019 €310 Mn €75 Mn €135 Mn €91 Mn €146 Mn €100
Slide 8: Construction and Permits
Construction and Permits 01 BUSINESS UPDATE 863 units started construction in Q2 2019/ 4,020 total units under construction 648 units w/ permit granted in Q2 2019/ 4,229 total units w/ permit granted Coverage of deliveries: 2019:100% ∕ 2020:100% ∕ 2021: 51% Under Construction # units Permits Granted
Slide 9: 2019 Deliveries Focus (30.06.19)
2019 Deliveries Focus (30.06.19) 01 BUSINESS UPDATE Construction Target Deliveries Project Regional Office FCC2 FOP2 Sold3 Deliveries H1 2019 Progress1 2019 Galera Sun Costa del Sol 100% Granted Granted 5 100% 5 Brisas del Arenal East 100% Granted Granted 11 91% 9 Hacienda del Mar II East 100% Grant
Slide 10: Land acquisitions in H1 2019
Land acquisitions in H1 2019 01 BUSINESS UPDATE Regular acquisitions in H1 2019 Land feeder acquisitions Housing Units1 Acquisition Cost (€Mn) First acquisition has taken place in Madrid 80% Concentrated Closed deals 395 21.7 replenishment in AEDAS Homes launched sites Stake giving right of conversi
Slide 11: Land Bank
Land Bank 01 BUSINESS UPDATE Current Total Land Bank1: 15,202 units (as of 30 Jun 2019) % Regional Breakdown of units Province HPA as per Tinsa (YoY Q2 2019)2 CENTRE 33% (+3.1%) Madrid +5.1% CATALONIA 13% (+0.1%) Tarragona -0.3% Valladolid +3.0% Barcelona +3.9% COSTA DEL SOL 16% (+7.8%) Malaga +7.8%
Slide 12: Agenda
Agenda Villas Arco Norte I Dos Hermanas 1 Business Update 2 H1 2019 Financial Results 3 Valuation Performance 12 H1 2019 RESULTS
Slide 13: Consolidated P&L
Consolidated P&L 02 H1 2019 FINANCIAL RESULTS AEDAS HOMES Variation Variation A 30/06/2019 30/06/2018 In € Mn1 € Mn1 % A REVENUE 22.9 14.7 8.1 55% Revenue derived solely from delivery of 102 units Cost of Goods Sold (16.6) (10.5) (6.1) 58% B GROSS MARGIN 6.3 4.2 2.1 49% % Gross Margin 27.4% 28.6% -
Slide 14: Balance Sheet Structure
Balance Sheet Structure 02 H1 2019 FINANCIAL RESULTS Main Balance Sheet Changes AEDAS Homes Variation Variation 30/06/2019 31/12/2018 A In € Mn1 € Mn1 % Growth in inventories due to increase in construction activity, with a growing trend of completed product. Weight of land reducing. NON- CURRENT AS
Slide 15: Net Debt
Net Debt 02 H1 2019 FINANCIAL RESULTS Total Net Debt of €191.3 Mn Efficient and diversified funding ramp-up process – organic growth on track Net Debt Position (€ Mn) Financial Debt Structure3 (€ Mn) Jun Dec 2019 2018 Unsecured Debt Secured Debt Secured Financial Debt 88.0 57.1 2.13% €646 Mn €876 Mn
Slide 16: Capital Allocation – Discretionary Share Buy Back
Capital Allocation – Discretionary Share Buy Back 02 H1 2019 FINANCIAL RESULTS Discretionary Share Buy Back Programme approved by Board of Directors 1 Will maximise value for shareholders 2 Use of expected surplus cash generated in 2019 and 2020 3 Initial allocation of up to €50 Mn 16 H1 2019 RESULT
Slide 17: Agenda
Agenda Villas Arco Norte I Dos Hermanas 1 Business Update 2 H1 2019 Financial Results 3 Valuation Performance 17 H1 2019 RESULTS
Slide 18: GAV and NAV Bridge
GAV and NAV Bridge 03 VALUATION PERFORMANCE GAV Revaluation LfL GAV1 Bridge from Dec 2018 to Jun 2019 € Mn € Mn +9.2% GAV Growth LFL +1.2% 26,9 1,930.8 124 1.931 1,768 11,9 1.768 Dec 2018 Jun 2019 GAV Dec 2018 Revaluation LfL WIP & Deliveries Acquisitions GAV Jun 2019 NAV: €1,621 Mn GAV Dec18 GAV Ju
Slide 19: Savills Appraisal Drivers
Savills Appraisal Drivers 03 VALUATION PERFORMANCE GAV GDV €1,931 Mn €5,239 Mn Valuation drivers Dec 18 Jun 19 Chg % Chg LfL Valuation drivers since Dec 2018 GDV € / sqm Total 2,816 2,847 31 1.1% ASP Total € thousands / unit 342 345 3 0.8% LfL GDV 1.7% GAV € / sqm 978 1,049 71 7.3% Pending cost 4.4%
Slide 20: Appendix 1: Deliveries visibility
Appendix 1: Deliveries visibility
Slide 21: 2019 Expected Deliveries
2019 Expected Deliveries Delivery target: 1,055 units (92% sold) Project1 Regional Office Municipality Total Units Deliveries Construction Progress Sold2 FCC Terraza Los Fresnos Boadilla del Monte 30 100% 100% Granted Merian I Torrejón de Ardoz 10 97% 90% Pending Altos del Pilar Madrid 94 89% 100% P
Slide 22: 2020 Expected Deliveries
2020 Expected Deliveries Delivery target: 1,986 units (59% sold) Project1 Regional Office Municipality Total Units Construction Permit Status Sold2 Altos del Pilar Madrid 6 Granted Construction 83% Altos de la Reserva Boadilla del Monte 1 Granted Construction 0% Altos de Los Fresnos Boadilla del Mon
Slide 23: 2020 Expected Deliveries
2020 Expected Deliveries Delivery target: 1,986 units (59% sold) Project1 Regional Office Municipality Total Units Construction Permit Status Sold2 Dampier Masnou 6 Granted Construction 0% Orpí Masnou 36 Granted Construction 86% Hannon Sant Adriá de Besós 40 Granted Construction 18% Humboldt Catalon
Slide 24: 2020 Expected Deliveries
2020 Expected Deliveries Delivery target: 1,986 units (59% sold) Project1 Regional Office Municipality Total Units Construction Permit Status Sold2 Villas Arco Norte III Dos Hermanas 5 Granted Construction 0% Tovar Mairena de Aljarafe 28 Granted Construction 29% Armstrong Cisneo (I, II) Andalusia Se
Slide 25: Appendix 2: Cash Flow Statement
Appendix 2: Cash Flow Statement
Slide 26: Cash Flow Statement Summary
Cash Flow Statement Summary Summary Cash Flow Statement AEDAS HOMES (In € 30/06/2019 31/12/2018 Mn1) EBT (14.3) (8.1) Change in Trade Provisions 4.5 3.0 Change in Investment properties (0.6) (0.5) Financial cost / (income) 9.4 9.6 Other Income / (expense) (6.0) (6.4) Change in working capital (79.8)
Slide 27: Appendix 3: Macro Outlook
Appendix 3: Macro Outlook
Slide 28: Market Overview
Market Overview Positive Outlook for Spanish Economy (GDP %) Spanish Unemployment Rate (%) 4% 28,0% 3,6% 3,2% 3,0% 26,0% 3% 2,60% 2,4% 24,0% 2% 1,4% 22,0% 1% 20,0% 18,0% 0% 2013 2014 2015 2016 2017 2018 2019E 16,0% -1% 14,0% -2% -1,7% 12,0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E Source:
Slide 29: Llul, Palma de Mallorca
Llul, Palma de Mallorca 29 H1 2019 RESULTS