Neinor Homes Sa · BME:HOME
Neinor Homes Sa — Q3 2020 Earnings Presentation
28 slides from Neinor Homes Sa's earnings presentation, Oct 29, 2020
Slide 1: Q3 2020 Results Presentation
ALEA HOMES - MADRID DELIVERED Q3 2020 Q3 2020 RESULTS PRESENTATION 29th OCTOBER 2020
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 José Francisco Egotxeaga García Cravo CEO Deputy CEO / CFO Head of IR 1 2 A Business & Q&A Appendix Financial Review Member of: IBEX MID CAP® 3
Slide 4: Strong Fundamentals
STRONG FUNDAMENTALS PRODUCTION DEFICIT BOTH FOR BTS AND FOR BTR Neinor Footprint Top 6 Growth Regions ‣ Large current housing deficit: Since 2017, the(*) Six Regions (*) of North Neinor footprint accumulated a housing production deficit of 134k units as housing starts were not enough to cope with po
Slide 5: Residential: A Top Sector Within Real Estate
RESIDENTIAL A TOP SECTOR WITHIN REAL ESTATE Home: From just a shelter to House Prices: Have been Neinor: Prepared to embrace the hub of our lives resilient post lockdown. Why? changes in a post Covid world • It also became our office, our gym, our • A loose monetary policy is driving • At Neinor Hom
Slide 6: Q3 2020 Executive Summary
Q3 2020 EXECUTIVE SUMMARY 3Q20 Financials Growing with Deliveries 3Q20: €96mn revenues / €19mn EBITDA / NI €15mn (+17% YoY) 9M20: €197mn revenues / €34mn EBITDA / NI €22mn Sales Activity & Construction Progress 400 units pre-sold during 3Q20 and 1,086 on 9M20 (+4% YoY) Received CFOs1 for 100% of tar
Slide 7: Business & Financial Review
Business & Financial 1 Review ALBORADA HOMES – MALAGA Delivered Q2 2020
Slide 8: Q3 2020 Operating Highlights
Q3 2020 OPERATING HIGHLIGHTS SEPTEMBER 2020 SNAPSHOT 9M 2020 PROGRESS Development c. 10,300 units c. 4,800 units +1,700 1,364 503 Activity (27% Gross Margin) LandBank WIP & FP CFO’s LPO’s Deliveries 6,000 300 5,000 4,000 250 200 Resilient Sales Performance 3,000 150 Leads 2,000 100 Leads +18% YoY 1,
Slide 9: Development Status
DEVELOPMENT STATUS STATUS WIP STATUS1 REVENUE VISIBILITY 30% DELIVERED 100% CFO CURRENT PRE-SALES • 968 units with LPO, delivered or in +90% delivery process 2020 EXPECTED PRESALES BY • 396 units with affidavit YEAR-END • 336 units pending LPO 90% 100% WIP FOUNDATION WORKS 8% 7% CFO CURRENT PRE-SALE
Slide 10: Land Acquisitions Update
LAND ACQUISITIONS UPDATE Keeping our disciplined strategy in an even more clear buyers’ market Land Acquisition Strategy ‣ We are back under exclusivity to acquire +2k units ‣ Units located in prime locations of the Top 6 Regions of Spain by North housing demand ‣ Equity efficient payment structures
Slide 11: Neinor Rental Strategy Update
NEINOR RENTAL STRATEGY UPDATE The only residential platform in Spain incorporating the whole PRS value chain. Once stabilized, expected €15-16mn of rec. EBITDA. RENTAL ASSETS ‣ 1,200 units BTR portfolio overweight in Madrid (c. 60%) ‣ 611 have been launched and first deliveries will take place PropC
Slide 12: Q3 2020 Financials Highlights
Q3 2020 FINANCIALS HIGHLIGHTS EBITDA of €34M and Net Income of €22M Quarterly Progress Financial KPIs Revenues (+20%) 96 80 P&L €197m €34m €22m Revenues EBITDA Net Income Q32019 Q32020 EBITDA (+4%) €1.4bn 80% Balance Sheet Development €115m 18 19 Of Development Cash¹ Stock Stock is Active Q32019 Q32
Slide 13: Closing Remarks
CLOSING REMARKS Reiterate FY20 Guidance Despite Covid, we confirm FY20 EBITDA target of +€100mn Sales & Construction Activity Expect pre-sales and new house prices to remain resilient during 4Q20 Construction productivity back to pre-Covid levels (c. 100%) Bet on Rental has been corroborated by Priv
Slide 14: Q&A
2 Q&A ALEA HOMES – MADRID Delivered Q3 2020
Slide 15: Appendix
A Appendix ITURRIBARRI II - BILBAO Delivered Q2 2020
Slide 16: Revenues of 96M in Q3 with EBITDA reaching €19M
REVENUES OF 96M IN Q3 WITH EBITDA REACHING €19M 26% development gross margin Summary P&L (in €M) €M Q3 2020 Q3 2019 Q3'20 vs Q3'19 € 96 M REVENUES IN Q32020 vs 80M in Q32019 Revenues 96.0 80.2 15.8 20% Development2 Legacy Servicing Gross Margin 29.3 30.0 (0.7) -2% €88.5m €1.6m €5.9m Gross Margin (%)
Slide 17: Cash Flow: Accelerating Capex
CF I ACCELERATING CAPEX Positive operating activities Cash Flow: +€31M Summary Cash Flow (in €M) €M Q3 2020 Q3 2019 Q3'20 vs Q3'19 Profit (Loss) before Tax 25.7 32.6 (6.9) -21.1% Adjustments 5.3 9.0 (3.7) -41.2% +€31M FROM OPERATING ACTIVITIES Amortization 3.0 3.1 (0.1) -3.6% Finance Costs/Revenues
Slide 18: BS: €1.6bn Asset Base
BS I €1.6BN ASSET BASE Focus on development (99% of total inventories) Summary Balance Sheet (in € m) €M Q3 2020 FY 2019 Q3'20 vs FY'19 PPE 6.3 7.2 (0.9) -12.8% Right of use assets 3.5 3.3 0.2 100.0% Investment Property 0.2 0.2 (0.0) -8.8% Other Non-Current Assets Deferred Tax assets 5.2 25.5 2.3 25
Slide 19: Conservative Leverage: LTV at 20%
CONSERVATIVE LEVERAGE: LTV AT 20% Net debt (in € m) €M Q3 2020 FY 2019 Q3'20 vs FY'19 Gross Debt 395.1 365.7 29.4 8.0% CONSERVATIVE DEBT RATIOS Non-Current Bank Borrowing 90.0 50.0 40.0 80.0% LTV AT 20% Corporate Financing 90.0 50.0 40.0 80.0% Current Bank Borrowing 305.1 315.7 (10.6) -3.4% Developm
Slide 20: BTR Strategies
BTR STRATEGIES Post Covid c€1bn investments have been announced trying to replicate Neinor’s BtR strategy – all from value- add investors targeting 12-15% IRRs and in JV with Spanish local players. Spanish Market: Clear lack of rental operating players PRS Sector Investment Volumes - Spain Foreign c
Slide 21: Spain: Residential Macro Analysis
SPAIN: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 48.0 2.5% 30.0 1.94 Millions Millions 1.92 47.0 2.0% 25.0 1.90 46.0 1.5% 20.0 1.88 45.0 1.0% 1.86 15.0 44.0 0.5% 1.84 43.0 0.0% 10.0 1.82 1.80 42.0 -0.5% 5.0 1.78 41.0 -1.0% - 1.76 2010 2004 2005 2006 2007 2008 2009 2011 2012
Slide 22: Madrid: Residential Macro Analysis
MADRID: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 6.8 3.5% 3.5 2.26 Millions Millions 6.6 3.0% 3.0 2.24 6.4 2.5% 2.5 2.22 2.0% 2.20 6.2 2.0 1.5% 2.18 6.0 1.0% 1.5 5.8 2.16 0.5% 1.0 5.6 2.14 0.0% 5.4 0.5 2.12 -0.5% 5.2 -1.0% 0.0 2.10 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 23: Barcelona: Residential Macro Analysis
BARCELONA: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 5.8 2.5% 3.0 2.15 Millions Millions 5.7 2.14 2.0% 2.5 5.6 5.5 2.13 1.5% 2.0 5.4 2.12 5.3 1.0% 1.5 5.2 2.11 5.1 0.5% 1.0 2.10 5.0 0.0% 0.5 2.09 4.9 4.8 -0.5% 0.0 2.08 2006 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 24: Levante: Residential Macro Analysis
LEVANTE: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 4.6 4.0% 3.0 1.70 Millions Millions 4.5 3.0% 1.68 2.5 4.4 1.66 2.0% 4.3 2.0 1.64 4.2 1.0% 1.62 1.5 4.1 0.0% 1.60 4.0 1.0 1.58 -1.0% 3.9 1.56 -2.0% 0.5 3.8 1.54 3.7 -3.0% 0.0 1.52 Population YoY Change First Residence Second
Slide 25: Malaga: Residential Macro Analysis
MALAGA: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 1.7 5.0% 1.0 2.00 Millions Millions 1.7 0.9 1.95 4.0% 1.6 0.8 1.90 3.0% 0.7 1.85 1.6 2.0% 0.6 1.80 1.5 1.0% 0.5 1.75 1.5 0.4 1.70 0.0% 1.4 0.3 1.65 1.4 -1.0% 0.2 1.60 1.3 -2.0% 0.1 1.55 1.3 -3.0% 0.0 1.50 Population YoY Chang
Slide 26: Sevilla: Residential Macro Analysis
SEVILLA: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 2.0 5.0% 1.0 2.35 Millions Millions 4.0% 0.9 2.0 0.8 2.30 3.0% 1.9 0.7 2.25 2.0% 0.6 1.9 1.0% 0.5 2.20 0.0% 0.4 1.8 0.3 2.15 -1.0% 1.8 0.2 2.10 -2.0% 0.1 1.7 -3.0% 0.0 2.05 Population YoY Change First Residence Second Reside
Slide 27: Vizcaya: Residential Macro Analysis
VIZCAYA: RESIDENTIAL MACRO ANALYSIS Number of inhabitants Residential Stock 0.6 2.35 1.2 0.6% Millions Millions 1.2 2.30 0.5 0.4% 1.2 2.25 0.4 1.2 0.2% 2.20 1.1 0.3 2.15 0.0% 1.1 2.10 0.2 1.1 -0.2% 2.05 1.1 0.1 -0.4% 2.00 1.1 0.0 1.95 1.1 -0.6% First Residence Second Residence inhabitants/unit (RHS)
Slide 28: The Leading Residential Group
The Leading Residential Group Video ENG / ESP