27 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, May 9, 2013
Slide 1: Results Presentation as at 31/03/2013
Conference call 9 May 2013 2.30 p.m. Results Presentation as at 31/03/2013
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
Slide 3: Highlights
3 Highlights REVENUES € 30.4 mn •Revenues from core business ( -1.1% vs 31/03/2012 ) EBITDA € 21.3 mn •EBITDA (core business) (-3.9% vs 31/03/2012 ) •EBITDA margin (core business) 70.1% (-2 percentage points) € 8.2 mn Group Net Profit (-1.4% vs 31/03/2012 ) € 9.5 mn Funds From Operations (FFO) (-0.1
Slide 4: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 5: Consolidated Income Statement
5 Consolidated Income Statement "PORTA A MARE" CONSOLIDATED CORE BUSINESS PROJECT €/000 31/03/2012 31/03/2013 % 31/03/2012 31/03/2013 % 31/03/2012 31/03/2013 % Revenues from freehold properties 27,275 27,066 (0.8)% 27,275 27,047 (0.8)% 0 19 n.a. Revenues from leasehold properties 2,167 2,124 (2.0)%
Slide 6: Margin for activities
6 Margin for activities CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/03/2012 31/03/2013 % 31/03/2012 31/03/2013 % 31/03/2012 31/03/2013 % Margin from freehold properties 23,700 23,086 (2.6)% 23,700 23,067 (2.7)% 0 19 n.a. Margin from leasehold properties 495 391 (21.0)% 495 391 (21.0)%
Slide 7: Revenues from core business: -1.1%
7 Revenues from core business: -1.1% BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 30,440 8.9% 0.1% 30,745 Total revenues 0.4% -1% 1.1% 1,303 1,250 Revenues from services Core business - 1.1% 60.5% Revenues from rental 29.0% activities 29,442 29,190 31/03/2012 31/03/2013 MALLS
Slide 8: Direct costs and G&A expenses core business
8 Direct costs and G&A expenses core business DIRECT COSTS CORE BUSINESS (€ 000) Increase in direct costs mainly due to: •IMU + 0.3 € mn (+24%) due to the 6,808 implementation of the rates approved by the 6,350 +7.2% municipalities and to cadastral values only OTHER DIRECT COSTS estimated in 1Q2012
Slide 9: Total consolidated Ebitda: € 21.2 mn; Ebitda (core business): € 21.3 mn (-3.9%)
Total consolidated Ebitda: € 21.2 mn 9 Ebitda (core business): € 21.3 mn (-3.9%) CONSOLIDATED EBITDA (€ 000) 305 528 50 94 22,193 21,216 Ebitda 31/03/2012 Change in Change in direct Change in Change in G&A Ebitda 31/03/2013 operating revenues costs increases, cost of expenses sales and other EBITDA
Slide 10: Group net profit: € 8.2 mn
10 Group net profit: € 8.2 mn GROUP NET PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) 33 11 856 121 173 642 - 1.4% 8,237 Tax rate 7.9% 8,355 8,355 8,237 31/03/2012 31/03/2013 Group net Change in Change in Change in Change in Change in Change in Group net profit Ebitda core Ebitda 'Porta a depreciation
Slide 11: Funds From Operations
11 Funds From Operations FFO (€/000) 31/12/2012 31/03/2013 D D% Pre-tax profit 9,059 8,897 -163 -1.8% Depreciation & other provisions 323 358 35 10.8% Change in FV 483 275 -208 -43.0% Extraordinary management 173 413 240 139.3% Margin from trading activity -183 -133 50 -27.4% Income tax for the peri
Slide 12: Commercial Highlights
12 Commercial Highlights Footfalls in Italian shopping malls (L4L) 0.0% vs 31/03/2012 Tenant sales in Italian shopping malls (L4L) -5.9% vs 31/03/2012 Sales in large-scale distribution (estimates ) -5% vs 31/03/2012 Footfalls in Romanian shopping malls (L4L) + 0.2% vs 31/03/2012 9 May 2013 1Q2013 Re
Slide 13: The performance of our malls in 1Q2013
13 The performance of our malls in 1Q2013 TENANT SALES AND FOOTFALLS IN OUR SHOPPING MALLS MALL SALES IN ITALY (per month) 6.0% SALES FOOTFALLS 4.0% 3.6% 2.0% 1.2% Total trend LFL Total trend LFL absolute value 0.0% footfalls change January February March sales change ITALY -5.5% -5.5% -0.1% -0.1% 6
Slide 14: Hypermarkets and shopping trends in 1Q2013
14 Hypermarkets and shopping trends in 1Q2013 HYPERMARKET/SUPERMARKET SALES IN ITALY Total trend LFL Total trend LFL Total trend LFL Total trend LFL Supermarkets + 0% -0.9% +0.3% -1.1% +2.4% +1.6% / / Hypermarkets Hypermarkets -0.6% -1.1% +0.7% +0.7% +3.3% +3.3% -0.6% -0.6% Supermarkets +0.4% -0.7%
Slide 15: Tenants in Italy
15 Tenants in Italy Turnover TOP 10 Tenant Product category Contracts TOTAL CONTRACTS impact Gruppo Miroglio clothing 3.6% 34 Malls 999 clothing 3.2% 10 Hypermarkets 19 Total 1,018 COMPAR footwear 1.8% 9 clothing and sports 1.7% 3 equipment clothing 1.6% 6 BRANDS BREAKDOWN IN MALLS By turnover footw
Slide 16: Tenants in Romania
16 Tenants in Romania TOTAL CONTRACTS 589 BRANDS BREAKDOWN IN MALLS By turnover 26% 35% 39% International brands National brands Local brands 9 May 2013 1Q2013 Results Presentation
Slide 17: Contracts in Italy and Romania
17 Contracts in Italy and Romania 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. 501 60% 51% 60% 56% Malls Malls Nr. 211 40% 40% Nr. 131 Nr. 157
Slide 18: The sustainability process continues… 1/2
18 The sustainability process continues….1/2 From May 2013 Is online the third Sustainability Report 2013 TARGET Gradually integrate sustainability planning in the Business Plan 9 May 2013 1Q2013 Results Presentation
Slide 19: UNI EN ISO 14001 certification 2/2
19 UNI EN ISO 14001 certification 2/2 IGD SIIQ SPA (including the headquarters of In March 2013 the course, Perimeter of the Bologna) and, for IGD Management, the following begun at the end of 2011 for certification shopping centers: CentroSarca in S. S. Giovanni the adoption of an (MI), Gran Rondò
Slide 20: Financial Structure
FINANCIAL STRUCTURE
Slide 21: Financial Highlights (1/2)
21 Financial Highlights (1/2) 31/12/2012 31/03/2013 GEARING RATIO 1.38 1.36 LOAN TO VALUE 57.2% 57.0% COST OF DEBT • Total 4.29% 4.04% • “Adjusted” (excluding figurative charges on bond) 3.91% 3.82 % INTEREST COVER RATIO 1.80X 1.88X • Total • “Adjusted” (excluding figurative charges on bond) 2.00X 2
Slide 22: Financial Highlights (2/2)
22 Financial Highlights (2/2) 31/12/2012 31/03/2013 AVERAGE LENGTH OF LONG TERM DEBT 10.2 years (BOND excluded) 9.9 years MID/LONG TERM DEBT RATE 56.3 % 61.1% If the Bond would be considered in the long term for the part already refinanced (€ HEDGING ON LONG TERM DEBT + BOND 76.1% 76.3% 144.9 mn) it
Slide 23: Financial structure
23 Financial structure NET DEBT COMPOSITION (€ 000) 8,499 5,702 O.w. € 230 mn related to Convertible Bond 620.258 1,085,899 281,272 181,572 Short term debt Current share of long term Long term debt Potential mall and business Cash & cash equivalents Net debt debt division fees DEBT MATURITY (€ 000)
Slide 24: Refinancing of Convertible Bond and new funding
24 Refinancing of Convertible Bond (Deadline 28/12/2013) and new funding Issuance of a Senior Unsecured Bond New Notes characteristics •Exchange Offer of convertible bond “€230,000,000 3.50 per cent. Convertible bonds due 2013” having as exchange consideration a new Senior Bond of € • Maturity: 4
Slide 25: Net debt
25 Net debt NET DEBT CHANGE (€ 000) 8,197 4,101 2,312 2,342 3,688 602 1,089,631 1,085,899 Net debt 31/12/12 Net profit Depreciation and Change in NWC Change in other non CAPEX Change in Net debt 31/03/13 change in FV current assets & shareholders' equity liabilities 9 May 2013 1Q2013 Results Present
Slide 26: Reclassified balance sheet
26 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) 31/12/12 31/03/13 D D% Fixed assets 1,889,979 1,890,030 51 0.0% NWC 75,713 79,814 4,101 5.4% Other long term liabilities -68,520 -69,292 -772 1.1% TOTAL USE OF FUNDS 1,897,172 1,900,552 3,380 0.2% Net debt 1,089,631 1,085,899 -3,732 -0.3% Ne
Slide 27: 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