Emeis · EURONEXT:EMEIS
Emeis — Investor Day (December 2019)
39 slides from Emeis's investor day presentation, December 2019
Slide 1: Analyst day in Lisbon Management presentation
Analyst day in Lisbon Management presentation December 2019
Slide 2: Agenda
Agenda 1. Greenfields development process 2. Example of a Greenfield project 3. Premiumization of the network 4. Real-estate strategy 5. Q&A 2
Slide 3: Greenfield development process
Greenfield development process
Slide 4: Be ready to step up the pace in Greenfield development
Be ready to step up the pace in Greenfield development International ventures into Structuration & Internationalization Greenfields neighboring countries & Professionalization & integration Acceleration development in France Strong growth, Acceleration of Greenfields to continue essentially through
Slide 5: Organization reshaped for a smooth-running Greenfield development
Organization reshaped for a smooth-running Greenfield development Objectives: Increase decentralization and reliance on Cluster/BU’s teams with the Corporate Team in a role of support and control At Corporate level: 3 Corporate Services working hand in hand Development Transactions Construction &
Slide 6: Greenfield projects approval process
Greenfield projects approval process Greenfield projects - from origination until CODEV approval LEAD QUALIFICATION PROJECT FEASIBILITY STUDY PRE-CODEV CODEV PRE-CODEV CODEV 2-phase project analysis • PRE-CODEV to avoid further investigation of projects not worth it (includes preliminary design wi
Slide 7: CODEV presentation: mandatory Greenfield Template
CODEV presentation: mandatory Greenfield Template Example of mandatory information Project description, motivations 1 EXECUTIVE SUMMARY Financial information, suspensive conditions Number of rooms, type of units, surface, capacity … 2 DESCRIPTION OF THE FACILITY Average daily price, % privat
Slide 8: Tools for Greenfield projects
Tools for Greenfield projects Templates, tools and training created How to assess the feasibility of a project How to optimize the conception of a building with following appendices Best plans Nursing Homes TRAINING Best plans Psychiatric clinics Best plans Rehab clinics What to include in the preli
Slide 9: Outcome of Greenfields process: optimized projects' duration
Outcome of Greenfields process: optimized projects’ duration Year 1 Year 2 Year 3 Year 4 Year 5 = 49 month (4,1 years) Duration with new process…………………………………… PRE- BP BP Construction CODEV filing obtaining start date Opening Works duration 16 month CODEV Construction Check-to-Go = 38 month (3,2 year
Slide 10: Example of Greenfield project: Chabad Jardins, São Paulo, Brazil
Example of Greenfield project: Chabad Jardins, São Paulo, Brazil
Slide 11: Presentation of Chabad Jardins project
Presentation of Chabad Jardins project 190-bed nursing home Project Area: facility of 7,700 sqm (R+8) and plot of 1,905 sqm Real-estate ownership 100% owned Famous and wealthy district of Cerqueira Cesar in São Paulo Location At the border of Jardins and Pinheiros areas, two of the richest
Slide 12: Greenfield in one of the richest areas of Sao Paulo
Greenfield in one of the richest areas of Sao Paulo « Jardins » area Rua Oscar Freire Jardins and Pinheiros areas: high-purchasing power districts, boasting famous shops, restaurants and ancient buildings all renovated, and very well connected by public transport Very famous roads: • Rua Oscar F
Slide 13: Real estate prices in the environment
Real estate prices in the environment Real estate 20,000 R$ Real estate 15,000 R$ Real estate 12,000 R$ Real estate 10,000 R$ Real estate 8,000 R$ CHABAD project JV SIS projects Competitor 13
Slide 14: Location and environment
Location and environment Jardins Real estate 15,000 R$ Location Jardim Paulista Real estate 12,000 R$ Pinheiros 14
Slide 15: Market and competition
Market and competition Cora Most famous streets CHABAD project 15
Slide 16: Competitors in the catchment area
Competitors in the catchment area Casa Rasada Casa de Repouso Vila Lobos Casa Rasada Em Familia Residencial por Idosos 16
Slide 17: Feasibility of the construction
Feasibility of the construction 17
Slide 18: Example of architectural drawing: Alzheimer Unit
Exemple of architectural drawing: Alzheimer Unit 18
Slide 19: Business plan and return at maturity
Business plan and return at maturity P&L Investment CAPACITY 190 beds Price of Land: € 11.5m DAILY PRICE EUR 96 Construction Cost: € 10.5m OCCUPANCY RATE 97% Total real estate invesment: € 22m REVENUES € 6.5m Invesment / bed: €115,000 € 3.0m (46%) (including land) EBITDAR INTERNAL RENT (8%)
Slide 20: Premiumization of the network
Premiumization of the network
Slide 21: Premiumization strategy
Premiumization strategy GREENFIELD ACQUISITION EXISTING NETWORK Increasing the share of new Selective acquisitions Shift to more premium creations in the best rooms / facilities locations (best districts in the main cities of a country) 21
Slide 22: Focus on premium construction projects
Focus on premium construction projects LATIN AMERICA EUROPE 3 COUNTRIES + 2 UNDER 12 COUNTRIES + 5 UNDER DEVELOPMENT DEVELOPMENT Wroclaw Mexico Poznan Warsaw Mexico Netherlan Czech rep. Poland Sao Paolo ds Rio de Janeiro Belgium Russia Brazil Fortaleza Germany Belo Horizonte Florianopolis Colombia L
Slide 23: Premium Greenfield project in Luxembourg City
Premium Greenfield project in Luxembourg City Les Terrasses de Luxembourg - Merl Nursing home of 125 beds and assisted living facility of 35 service flats Project Project embedded in a recent high quality real estate project of a local developer Purchase of a plot within this newly developed a
Slide 24: A favorable context in Luxembourg
A favorable context in Luxembourg Wealthy country Average GDP per capita: EUR 89,000 Dependency Insurance surplus: EUR 180m 2017-2021 GDP increase: +4.8% pa Clervaux Average annual Dependency Average wealth per household: Insurance budget per resident in EUR 570,000 facility: EUR 62,000 Vi
Slide 25: Most comparable peers' facilities
Most comparable peers’ facilities Fondation Pescatore (at 1 km) – Luxembourg Les Jardins Alysea – Crauthem (at 15 km) Years of construction/renovation: 1892, 1954, 1977, 1982, Year of construction: 2013 and 2017 2002, 2007 Capacity: 138 beds Capacity: 350 beds Range in terms of quality & d
Slide 26: Les Terrasses de Luxembourg: a unique spot
Les Terrasses de Luxembourg: a unique spot Historical center (Blv Royal) 2.4 km Historic centre of Luxemburg City at 2.4 km 26
Slide 27: Les Terrasses de Luxembourg: a unique spot
Les Terrasses de Luxembourg: a unique spot 27
Slide 28: Les Terrasses de Luxembourg
Les Terrasses de Luxembourg 28
Slide 29: Les Terrasses de Luxembourg
Les Terrasses de Luxembourg 29
Slide 30: M&A focus on premium small and mid-size groups: acquisition of Sinoué
M&A focus on premium small and mid-size groups: acquisition of Sinoué Founded in 1998 by a team of psychiatrists led by Dr Cléry-Melin, the group’s current Chairman and CEO A key player in mental healthcare in France Recognised for the quality of its care and premium accommodation 7 facilities
Slide 31: M&A focus on premium small and mid-size groups: acquisition of Axion Group
M&A focus on premium small and mid-size groups: acquisition of Axion Group Founded in 2001 by Mr Tavridis, renowned expert in the nursing home industry in Germany 7 facilities of which 2 high-end nursing homes in Hamburg Joint-venture ORPEA (75%) and Mr Tavridis (25%) to develop premium faciliti
Slide 32: German network: active shift to the premium segment
German network: active shift to the premium segment Standard room City or Daily price: EUR 100 Resident Rent Inflation-linked annual increase of price for all residents 15% Care + Long-term care Dep. public insurance Food / 50% Resident Services or Welfare State 35% Comfort room Comfort light:
Slide 33: Example of shift to a premium facility in Hamburg
Example of shift to a premium facility in Hamburg Current facility New facility 33
Slide 34: Share of comfort & premium rooms in Germany
Share of comfort & premium rooms in Germany 60 50 40 30 20 10 0 Nursing homes within Orpea Nursing homes within Orpea Nursing home pipeline network for more than 3 years network for less than 3 years Share of comfort and premium rooms (%) 34
Slide 35: Increasing share of premium
Increasing share of premium* Groups % premium facilities % premium facilities % premium in 2009 in 2018 pipeline Clusters 100% France Benelux 80% Central Europe 71% 54% 56% Eastern Europe 36% 29% 25,0% Iberia Latam 19% 21% 14,0% 9,0% New Countries % premium facilities in 2009 % premium facilities in
Slide 36: Real-estate strategy
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Slide 37: Real estate: strategic challenge and opportunity
Real estate: strategic challenge and opportunity A high quality real-estate portfolio 1 Excluding €190m of assets held for sale as of 30.06.19 and €144m at 31.12.2018 Total Quality assets contribute to the wellbeing of residents and Total employees and to the value resilience of the business Real es
Slide 38: 50/50 mix between ownership and leasing
Real estate: a balanced ownership structure 50/50 mix between ownerhip and leasing FUND MANAGEMENT Sale-and-lease back strategy for less strategic assets Possibility of creating various investment funds for more strategic assets: Owned – By geographical area Leased – Raise money with local finan
Slide 39: Assets classification and appropriate strategy
Assets classification and appropriate strategy CORE+ CORE VALUE-AD Prime assets Strategic assets in good location Non strategic assets with premium location and strong needed to be secured « réversion » power Strategy Strategy Strategy Keep the majority of these assets Keep a minority stake 10