Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2020 Earnings Presentation
47 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Feb 25, 2021
Slide 1: FY2020 Results
FY2020 Results Conference call 25th February 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation to subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect The securities r
Slide 3: Key points
Key points SHOPPING CENTER FORMAT PROVEN STILL TO BE VALID As restrictions began to be eased visitors continued to appreciate the shopping center format with increasing footfalls and average ticket PECULIARITIES OF IGD’S PORTFOLIO Urban shopping centers, dominant in their catchment areas with food a
Slide 4: Highlights (1/2)
Highlights (1/2) Rental Income Net Rental Income €150.0 mn €109.5 mn -3.4% -19.8% Core Business Ebitda Funds From Operation (FFO) €99.4 mn €59.3 mn -20.6% -28.8% (0.54€ p.s.) Include Covid-19 one-off net impact on 2020 with no further effects on the subsequent years 4
Slide 5: Highlights (2/2)
Highlights (2/2) Real Estate Portfolio EPRA NAV/NRV Market Value (excluding leasehold) €2,265.7 mn 10.38€ p.s. -4.9% -8.9% Financial Occupancy Italy* Financial Occupancy Romania 94.3% 93.6% *Malls + hypermarkets 5
Slide 6: Operating performances
1 Operating performances
Slide 7: Covid-19 emergency in Italy
Covid-19 emergency in Italy Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 POSITIVE NATIONAL EASING NEW RESTRICTIONS START OF LOCKDOWN OF THE Closure of cinemas, gyms, bars and THE YEAR RESTRICIONS restaurants + Regions variable coloring system based on changes i
Slide 8: IGD's response to Covid-19
IGD’s response to Covid-19 IGD immediately implemented precautions and measures to ensure the safety of the shopping centre visitors TEMPERATURE MONITORING OBSERVE SOCIAL DISTANCING SANITIZING GEL DISPENSERS AVAILABLE TO VISITORS AIR RECICLYING MASK REQUIRED FROM OUTSIDE SANITATION OF STAGGERED ENTR
Slide 9: Negative trends due to restrictions…
Negative trends due to restrictions… Positive Lockdown Positive quick answer when the New restrictions start restrictions were eased 10% 0% -10% -20% -30% -40% -50% -60% ON AVERAGE YEAR 2020vs 2019 (Italy): -70% Mall tenants sales -27.6% (CNCC -29.9%)* -80% Hypermarket sales -2.8% Footfalls -29.5% (
Slide 10: …but no rushed conclusions
…but no rushed conclusions Evidence emerged after restrictions were eased*… Fewer but more targeted visits… Approx. 87% of footfalls recovered …with an increase in average ticket … € 26.0, +17% (+€3.8) …resulting in a slight increase in Tenant sales +0.3% overall purchases Quick answer from visitors
Slide 11: Performances diversified depending on merchandise category
Performances considerably diversified depending on the merchandise category MERCHANDISE CATEGORIES WITH MERCHANDISE CATEGORIES BETTER PERFORMANCES THAN MORE PENALIZED BY RESTRICTIONS IGD’S PORTFOLIO AVERAGE* ✓ Household goods ✓ Restaurants ✓ Consumer electronics ✓ Entertainment ✓ Personal and health
Slide 12: Maintained a controlled risk profile
Maintained a controlled risk profile 73.4% 26.3% MALLS of rental income HYPER of rental income LEASING ITALY MANAGEMENT • Always open FINANCIAL CONTRACTS: OCCUPANCY* • The shopping centres’ civil role • No changes on existing Renewals 55 turnover 46 (downside -0.38%) 94.3% contracts became even stro
Slide 13: Net Rental Income
Net Rental Income (€mn) -€8.6mn Italy -€27.1mn -6.3% -19.9% -19.8% Romania -19.3% -5.3 -3.3 -18.5 * 136.6 128.0 109.5 Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020 Malls Italy -€4.0mn: Increase in dire
Slide 14: 2020 Rent collection rate
2020 Rent collection rate* Italian Porfolio Romanian Porfolio Collected>91% Collected>94% To be collected in To be collected in 2021<9% 2021<6% *% on invoiced rent net of reductions and loss on receivables 14
Slide 15: Leasing and commercial activities did not stop
Leasing and commercial activities did not stop The evolution in consumption styles, accelerated by Covid, has led us to innovate by means of digital communication and the introduction of new brands and services in the malls NEW MERCHANDISE CATEGORIES DIGITAL COMMUNICATION AND INTRODUCED TENANT INITI
Slide 16: Retailers continued to open in Italy…
Retailers continued to open in Italy… Frwrd - Le Porte di Napoli (NA) Chicco - La Torre (PA) – Tiburtino (RM) Wycon cosmetics - Katanè (CT) JD Store - Centro Nova (BO) Pepco - Centro Borgo (BO) Mondo Convenienza - ESP (RA) Little Italy Barber Shop - Centro Kasanova - Centro d’Abruzzo (CH) Leonardo (
Slide 17: …and in Romania
…and in Romania KIK (clothing) - Cluj KIK (clothing) - Slatina Bijuteria Stil (jewellery) - Braila Bijuteria Stil (jewellery) - Tulcea Cofetaria Oli (restaurant) - Ploiesti Big Mageda Crafts (gift items) - Ploiesti GC 17
Slide 18: True omnichannel passes through the shopping center
True omnichannel passes through the shopping center IGD’s path toward omnichannel Definition of the first Digital Definition of a dialogue Marketing Plan and between tenants and implementation of a Customer customers which can benefit Relationship Management of personalized offering Installation of
Slide 19: Sustainability: commitment continues despite the pandemic
Sustainability: committment continues despite the pandemic Most short-term goals achieved, work in progress on the medium/long-term targets. GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER • €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the energy
Slide 20: Portfolio
3 Portfolio
Slide 21: IGD's portfolio market value (1/2)
IGD’s portfolio market value (1/2) Gross Initial EPRA Net Initial EPRA Net Initial FY 2019 * FY 2020 Δ% Yield Yield Yield topped up Malls Italy 1,574.54 1,473.30 (-6.43%) 6.53% 5.3% 5.4% Hypermarkets Italy 564.58 558.97 (-0.99%) 6.02% Romania 150.29 138.64 (-7.75%) 7.35% 6.0% 6.2% Porta a Mare + dev
Slide 22: IGD's portfolio market value (2/2)
IGD’s portfolio market value (2/2) ITALY ROMANIA € 2,381.4mn 7.5 7.5 Other 3.9% (91.99 €mn) Romania 6.3% -115.3 (150.29 €mn) -115.3 € 2,265.7mn 10.3 -6.5 0.5 -12.2 10.3 Other 4.2% -6.5 0.5 -12.2 (94.78 €mn) Romania 6.1% (138.64 €mn) FV change is due to DCF 2,381.4 assumptions (rates) for Malls 66.1%
Slide 23: Flexible and sustainable asset management
Flexible and sustainable asset management 2020 2021/2022 ✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities, solidity some projecys and capex were extraordinary maintenance, update of postponed as early March 2020. systems as well as fit out adaptations in order t
Slide 24: 2021-2022 Projects
2021-2022 Projects CASILINO PORTO GRANDE LA FAVORITA PORTA A MARE (Officine Storiche – retail/residential) Asset Restyling and Restyling Restyling Creation of more Description hypermarket/mall than 15,000 m² remodeling devoted to retail + 42 seafront flats End of work H1 2022 End of 2022 End of 2022
Slide 25: Disposals to rebalance the financial structure
Disposals to rebalance the financial structure ✓ Consistent with 2019-2021 Strategic Plan, the procedure for the disposal of a portfolio of stand-alone hypermarkets/supermarkets was started ✓ Mandate granted to CBRE, a premiere international advisor ✓ Value approx. €185mn Asset class with a Attracti
Slide 26: Financial results
4 Financial results
Slide 27: Core business Ebitda
Core business Ebitda (€mn) -€7.3mn -€25mn -5.8% -20.6% -8.6 1.1 0.2 -18.5* 125.2 117.9 99.4 Ebitda 2019 Net Rental Income Net Service Income Change in G&A expenses Ebitda 2020 adj COVID net direct impact Ebitda 2020 Decrease in G&A expenses (-8.8%) EBITDA MARGIN Thanks to the Group’s cost cutting Co
Slide 28: Financial management
Financial management (€mn) Figure, net of accounting items and negative carry, is further decreasing (-4.7% vs FY2019) Total Total € 36.8mn € 36.2mn -4.7% 3.8 Negative carry 5.45.4 3.8 €400mn bond issue + SACE 2.8 2.8 IFRS16 and non-recurring charges 31.0 29.6 31.0 29.6 Finacial Mgt. Adj: -€1.4mn vs
Slide 29: Funds From Operations (FFO)
Funds From Operations (FFO) -€5.5mn -€24.0mn -6.6% -28.8% -7.3 0.2 1.4 FFO p.s. -18.5 0.54€ 83.3 77.8 59.3 FFO_2019 Change in core Change in financial Change in taxes and FFO_2020 adj COVID net direct FFO_2020 business Ebitda adj* management adj other impacts The result is substantially in line with
Slide 30: EPRA Metrics
EPRA Metrics € per share FY 2020 FY 2019 Δ% NRV and NAV 10.38 11.40 -8.9% NTA 10.31 11.29 -8.7% NDV 10.42 10.81 -3.6% -0.23 0.54 -1.32 0.00 11.40 10.38 EPRA NRV/NAV 31 Resolved dividend FFO Change in asset fair Change in financial EPRA NRV/NAV 31 Dec 2019 value instruments fair Dec 2020 value and ot
Slide 31: Financial activities during the year
Financial activities during the year Committed €36.3mn loan Ratings: Early repayment credit lines granted by Banca of the Notes renewed by 2 Monte dei Paschi di Fitch »300,000,000 2.500 leading credit Siena guaranteed BBB- negative per cent. Notes due institutions (€40mn by SACE Spa (6 31 May 2021»
Slide 32: Financial structure
Financial structure Debt breakdwon* Net debt €1,155.5 mn** MARKET SECURED 56.5% 25.0% BANKING SYSTEM 43.5% L.T. 1,272.80 UNSECURED 75.0% CASH -117.34 31/12/2019 31/12/2020 LTV 47.6% 49.9% • Net Debt remained nearly (adj. IFRS16 c. 46.4%) (adj. IFRS16 c. 47.8%) stable during the year (€1,162mn in 201
Slide 33: Debt maturity
Debt maturity €100mn: 2.25% 7y €400mn: 2,.25% 5y 2.1% 5y* 2.65% 500 7y 209 2.5% 5y 154 71 9 2 9 67 7 52 53 46 25 27 6 2021 2022 2023 2024 2025 2026 >2026 Secured bank debt Unsecured bank debt Bonds Taking into account the cash-on-hands equal to €117mn and the committed and uncomitted credit lines, t
Slide 34: Dividend and Outlook
4 Dividend and Outlook
Slide 35: Dividend
Dividend 2020 Next few years ✓ Loss of the Parent company IGD SIIQ SPA ✓ As soos as external conditions allow, IGD ✓ Safeguard of the financial stability and the intends to resume paying dividends and investment grade profile providing its shareholders with attractive remuneration NO DIVIDEND IGD sh
Slide 36: Outlook
Outlook The first few months of 2021 will undoubtely still be difficult for shopping center operations due to the restrictions that are still in place, and it is therefore plausible that the Company will again be impacted directly and indirectly by the pandemic Basic assumptions • Effective implemen
Slide 37: Agenda: Corporate IR
Agenda CORPORATE IR (confirmed as of today) 15° April Annual General Meeting (first call) 25° March Virtual Star conference 6° May Results as at 31/03/2021 10° May Italian equity conference Asia & Australia 5° August Results as at 30/06/2021 28° June Italian sustainability conference 4° November Res
Slide 38: Attachments
5 Attachments 38
Slide 39: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (b) Δ FY_CONS_2019 FY_CONS_2020 (b)/(a) Revenues from freehold rental activities 142.7 133.8 -6.3% Revenues from leasehold rental activities 12.6 11.9 -5.6% Total income from rental activities 155.3 145.6 -6.2% Rents and payable leases 0.0 0.0 -27
Slide 40: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds (€/000) 31/12/2020 31/12/2019 Δ Δ% Fixed assets 2,234,484 2,365,214 130,730 5.9% Assets under construction 42,673 40,827 -1,846 -4.3% Other non-current assets 17,374 21,845 4,472 25.7% Other non-current liabilities -29,130 -28,998 132 -0.5% NWC 29,1
Slide 41: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations CONS_2019 CONS_2020 Δ 2019 Δ% * Core business Ebitda 125.194 99.446 -25.7 -20.6% IFRS16 Adjustment (Payable leases) -10.302 -10.31 0.0 0.1% Financial management adj -31.384 -33.405 -2.0 6.4% Extraordinary management adj 0.000 0.000 0.0 n.a. Current t
Slide 42: Other Epra metrics
Other Epra metrics EPRA Performance Measure 31/12/2020 31/12/2019 EPRA NRV/NAV (€'000) 1,145,827 1,258,008 EPRA NRV/NAV per share € 10.38 € 11.40 EPRA NTA 1,137,258 1,245,473 EPRA NTA per share € 10.31 € 11.29 EPRA NDV 1,149,534 1,192,894 EPRA NDV per share € 10.42 € 10.81 EPRA Net Initial Yield (NI
Slide 43: More financial highlights
More financial highlights 31/12/2019 31/12/2020 Gearing ratio 0.95X 1.03X Average lenght of long-term debt 4.1 years 3.2 years Hedging on long term debt+ bond 94.8% 93.0% Share of M/L debt 95.4% 98.3% Uncommitted credit lines granted €161 mn* €151 mn* Uncommitted credit lines available €161 mn €151
Slide 44: Contracts and key tenants Italy
Contracts and key tenants Italy Malls Product Turnover TOP 10 Tenant Contracts category impact N 237 N 202 N 208 N 768 clothing 3.0% 14 54.3% 16.8% 14.3% 14.7% clothing 2.5% 9 2021 2022 2023 >2023 clothing 2.1% 10 Average residual maturity: 4.2 years Top 10 Tenants Gallerie electronics 2.1% 8 Total
Slide 45: Contracts and key tenants Romania
Contracts and key tenants Romania Product Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarket 11.1% 11 N 261 N 144 N 39 N 69 clothing 7.2% 6 clothing 5.2% 10 33.0% 34.0% clothing 4.6% 11 23.0% 10.0% drugstore 2.8% 5 jewellery 2.2% 5 2021 2022 2023 >2023 personal care 2.2% 4 offices
Slide 46: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Culture, leisure, gift Supermarkets Household Household goods Restaurants items 11% goods 5% 7% 3% Culture, leisure, 9% gift items Electronics Personal care Electronics 6% 11% 4% 2% Personal care Services 4% 9% Services 7% Merchandising Restaurants Mix* 7% E
Slide 47: Investor relations contacts
Raffaele Nardi, Director of Planning, Control and investor relations T. +39. 051 509231 Raffaele.nardi@gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 5