Neinor Homes Sa · BME:HOME
Neinor Homes Sa — H1 2019 Earnings Presentation
19 slides from Neinor Homes Sa's earnings presentation, Jul 25, 2019
Slide 1: H1 2019 Results Presentation
H1 2019 AIGUADOLÇ HOMES – SITGES (EAST REGION) Actual picture (June 2019) RESULTS PRESENTATION 25th JULY 2019
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentation” means this document, it
Slide 3: Presenters and agenda
Borja García Jordi Argemí Juan Gómez Vega Egotxeaga García Chief Investor Deputy CEO / CFO Relations Officer Chief Executive Officer 1 2 3 A Business & Q&A Non-Financial Appendix Financial Reporting Review Member of: IBEX SMALL CAP® 3
Slide 4: Business & Financials Review
Business & 1 Financials Review ATRIA HOMES – MADRID (CENTER REGION) Actual picture (March 2019)
Slide 5: H1 2019 Results Key Highlights
H1 2019 RESULTS KEY HIGHLIGHTS H1 SNAPSHOT H1 PROGRESS Licenses Development 12,500+ units 5,000+ units 800+ obtained 1,600+ 379 Activity LandBank WIP & FP WIP Starts Deliveries 2,400+ acc. submitted1 Pre-Sales Activity 2,966 (c.€975m) 702 units c.90% / 55% / c.30% Orderbook units Pre-sold during H1
Slide 6: 379 Units Delivered in H1
379 UNITS DELIVERED IN H1 1 Good performance in H1 with the delivery of Atria and Medina in Q1, alongside Aiguadolç Homes (Sitges) and Goiegi Homes (Lasarte) that started delivery in Q2, with overall development gross margin of 29%+. Aiguadolç Homes Goiegi Homes (1) The actual split is: Atria Homes
Slide 7: Business Plan 2019-2021: Presales Goal for 2019 Achieved
BUSINESS PLAN 2019-2021: PRESALES GOAL FOR 2019 ACHIEVED; GOOD PROGRESS OBTAINING LICENSES FOR 2021 AND 2022 STATUS WIP STATUS1 REVENUE VISIBILITY 18% LPO 32% DELIVERED 68% WIP 48% CFO2 CURRENT PRE-SALES • c.40% of the units to be delivered already 34% FAÇADE WORKS C.90% 32% 34% 18% with first occup
Slide 8: Strong Revenues with Positive EBITDA
STRONG REVENUES WITH POSITIVE EBITDA Revenues and profit reflecting the 379 units notarized (vs 164 units H1 2018) Financial KPIs Year on Year Progress c.3x Development Revenues 136 €162m €25.7m €12m 42 P&L EBITDA Adjusted H1'19 H1'18 Revenues c.40% of FY 2019 Target Net Income1 c.63x EBITDA Adjuste
Slide 9: Q&A
2 Q&A AIGUADOLÇ HOMES – SITGES (EAST REGION) Actual picture (June 2019)
Slide 10: Non-Financial Reporting
3 Non-Financial Reporting ATRIA HOMES – MADRID (CENTER REGION)
Slide 11: Non Financial Reporting
NON FINANCIAL REPORTING FOTOGRAFÍA Y TEXTO | Opción 1 The company continues is strong pursue of sustainability, innovation and quality product. Digital Sustainability High Quality Product Innovation Transformation 100% of 74 BREEAM Neinor Store: New tools developments certificates granted selected a
Slide 12: Appendix
A APPENDIX GOIEGI HOMES – LASARET (NORTH REGION) Actual picture (July 2019)
Slide 13: Pre-sales on Track with 702 Units Sold in H1
PRE-SALES ON TRACK WITH 702 UNITS SOLD IN H1 399 units pre-sold in Q2 with 5.8% HPA Observed 5.8% ANNUAL OBSERVED HPA (1) IN Q2 - 2% 4% 5.8% 6% 8% 10% 12% Center Q2 '19 East Q4 '18 Q3 '18 Levante Q2 '18 Q1 '18 North Q1 '19 South PRE-SALES RHYTHM IN LINE TO SECURE YEAR-END COVERAGE TARGETS FOR UPCOMI
Slide 14: Revenues of €162M with EBITDA Adjusted Reaching €26M
REVENUES OF €162M WITH EBITDA ADJUSTED REACHING €26M €136m of development revenues with 29% Gross Margin / c. 40% of annual EBITDA target achieved Summary P&L (in €M) €M H1 2019 H1 2018 Change H1'19 vs H1'18 Revenues 161.8 78.9 82.9 105.0% € 162 M REVENUES (c.2x H1’18) Gross Margin 50.6 27.8 22.8 82
Slide 15: Positive Operating Cash Flows
CF I POSITIVE OPERATING CASH FLOWS FOTOGRAFÍA CapExYaccelerating TEXTO | Opciónas 1 2019-2020-2021 developments progress Summary Cash Flow (in €M) €M H1 2019 H1 2018 Change H1'19 vs H1'18 Profit (Loss) before Tax1 17.1 (5.4) 22.5 N.M. Adjustments 6.6 8.2 (1.6) (19.8%) €23.8M OPERATING CASH FLOW VS m
Slide 16: 77% of Inventory is Active
BS I 77% OF INVENTORY IS ACTIVE Development represents 98% of total inventories Summary Balance Sheet (in € m) €M H1 2019 FY 2018 Change H1 '19 vs FY'18 PPE 7.5 7.7 (0.2) (2.7%) Right of use assets 3.9 - 3.9 100.0% Investment Property 0.5 1.0 (0.5) (49.7%) Other Non-Current Assets 7.3 2.7 4.6 167.2%
Slide 17: Prudent Debt Ratios with 19% LTV
PRUDENT DEBT RATIOS WITH 19% LTV Buy-back on track, having acquired c. 2m shares in Q2 with the Goldman Sachs line Net Debt (in € m) Change H1 '19 vs CONSERVATIVE DEBT RATIOS €M H1 2019 FY 2018 FY'18 LTV AT 19.2% Gross Debt 355.3 380.5 (25.2) (6.6%) Non-Current Bank Borrowing 21.6 - 21.6 - Corporate
Slide 18: Savills Valuation Highlights
SAVILLS VALUATION HIGHLIGHTS Fully permitted land GAV at €1.7bn NAV down to €1,325m due to BP re-set and later deliveries, buy-back program and legacy impairment Neinor’s Land Bank – National Footprint Savills GAV Split by Regional Office – Fully-permitted land bank1 % over GAV value of Land Bank As
Slide 19: Savills Valuation: NAV Bridge Dec '18 to June '19
SAVILLS VALUATION: NAV BRIDGE DEC ‘18 TO JUNE ‘19 Valuation changes after the business plan reset, buy-back and legacy explaining the evolution of NAV from December to June VALUATION at 31st December 2018 NAV GAV 1,823 € million 1,386 € million € p.s. 17.55 LENGTHENING OF TIMINGS IN THE NEW BP HAS A