Aedas Homes Sa · BME:AEDAS
Aedas Homes Sa — H1 2018 Earnings Presentation
32 slides from Aedas Homes Sa's earnings presentation, September 2018
Slide 1: H1 2018 Results and Business Update as of 31 August 2018
Altos de los Fresnos Boadilla del Monte Madrid H1 2018 Results and Business Update as of 31 August 2018 September 2018 1 2018 CORPORATE PRESENTATION
Slide 2: Disclaimer
Disclaimer This document has been prepared by Aedas Homes, S.A. (the “Company”) and comprises slides for a presentation to the market of the results of the Company and its subsidiaries (the “Group”) during the first half of 2018 and operating results as of 31 August 2018. For the purposes of this di
Slide 3: Agenda
Agenda Nou Eixample Mar Vilanova i la Geltru Barcelona 1 Business Update 2 H1 2018 Financial Results 3 Valuation Performance 4 Closing Remarks 3 H1 2018 RESULTS
Slide 4: Active units as of 31 August 2018
Active units as of 31 August 2018 02 BUSINESS UPDATE Ramp-up is well underway with 6,287 active units Active1 Units Evolution +55% 6,287 Active Units Completed2 126 Under • 6,287 units activated in total 1.623 Construction • 2,230 units activated in 2018 Marketing 4,057 3,172 Permit Launched3 Units
Slide 5: Marketing Activity as of 31 August 2018
Marketing Activity as of 31 August 2018 02 BUSINESS UPDATE Sales performance is keeping pace with ramp-up speed Sales1 Evolution Order book & Deliveries as of 31 Aug 2018 % units3 2017 Sales 2018 Sales Total Sales2 Delivered 7% 1.659 159 Contracts Reservations 365 64% 29% 1,659 units €580 Mn 220 915
Slide 6: Deliveries Visibility as of 31 August 2018
Deliveries Visibility as of 31 August 2018 02 BUSINESS UPDATE Construction works provide excellent visibility on margins 2018 Deliveries Visibility 2019 Deliveries Visibility 1.055 1.071 761 221 222 190 97 Target deliveries 2018 Construction completed Sales Delivered Target deliveries 2019 Construct
Slide 7: Margin outlook above forecast, despite construction cost inflation
02 BUSINESS UPDATE Margin outlook above forecast, despite construction cost inflation HPA and CCI margin impact on projects under Proactive Approach Towards construction (as of 31 Aug18): Preserving Margins GDV 1,862 units under 705 Mn € 1. Pacing sales rhythm to capture HPA construction and offset
Slide 8: Land Bank as of 31 August 2018
Land Bank as of 31 August 2018 02 BUSINESS UPDATE Total Land Bank1: 14,521 units % Regional Breakdown of units Province HPA as per Tinsa (YoY Q2 2018) 2019, 2020 and 2021 land needs fully covered Catalonia 15% Tarragona +3.4% Barcelona +5.6% Moving up land investments to secure 2022 launches Centre
Slide 9: Offsite Construction Will Reduce Delivery Time
Offsite Construction Will Reduce Delivery Time Industrialized vs traditional construction • Simultaneous offsite execution in controlled factory settings vs sequential onsite execution exposed to weather conditions • High-quality, completed finished precast modules • Transported to site ready-to-ins
Slide 10: Agenda
Agenda Villas de Arco Norte Dos Hermanas Seville 1 Business Update 2 H1 2018 Financial Results 3 Valuation Performance 4 Closing Remarks 10 H1 2018 RESULTS
Slide 11: Consolidated P&L H1 2018
Consolidated P&L H1 2018 02 H1 2018 FINANCIAL RESULTS AEDAS HOMES Total H1 A Revenue derived from delivery of houses and sale of land In € Mn1 2018 A REVENUE 14.7 Deliveries 36 Units Land Disposals 2 Plots Cost of Goods Sold (10.5) €7.2 Mn 49% €7,5 Mn 51% GROSS MARGIN 4.2 % Gross Margin 28.6% B Mark
Slide 12: Balance Sheet Structure as of 30 June 2018
Balance Sheet Structure as of 30 June 2018 02 H1 2018 FINANCIAL RESULTS Aedas Homes Change 30/06/2018 31/12/2017 In € Mn1 € Mn Main Balance Sheet Changes A An increase of 11,8€ MN in tax credits for tax-loss carryforwards from previous A NON- CURRENT ASSETS 26 14 12 years B Inventories 1,011 881 130
Slide 13: Net Debt as of 30 June 2018
Net Debt as of 30 June 2018 02 H1 2018 FINANCIAL RESULTS Net Financial debt of €18.4 Mn Diversified sources of funding at competitive cost Total Net Debt of €26.4 Mn Net Debt Position (€ Mn) Financial Debt Structure (€ Mn) June Dec 2018 2017 Unsecured Debt Secured Debt Secured Financial Debt 73.5 61
Slide 14: Recent Unsecured Corporate Financing
Recent Unsecured Corporate Financing 02 H1 2018 FINANCIAL RESULTS Senior Corporate Loan for new land acquisitions Note on Commercial Paper Term loan signed to bring forward 2019 and part of 2020 investments To provide marginally cheaper financing for generic project and land capex needs. 1+1 3.5%- 6
Slide 15: Agenda
Agenda 1 Business Update 2 H1 2018 Financial Results 3 Valuation Performance 4 Closing Remarks Marina Real Denia, Alicante 15 H1 2018 RESULTS
Slide 16: GAV and NAV Bridge
GAV and NAV Bridge 03 VALUATION PERFORMANCE GAV Revaluation LfL GAV1 Bridge from H2 2017 to H1 2018 € Mn € Mn GAV Growth Net of +9% investment in W.C 93 1,608 LFL +1.1% 68 1.608 303 1.475 13 1.131 1.143 Dec 2017 Jun 2018 LfL H2 2017 Revaluation LfL Assets LFL WIP & Capex In delivery Additional Total
Slide 17: Savills Appraisal Drivers
Savills Appraisal Drivers 03 VALUATION PERFORMANCE GAV GDV €1,608 Mn €4,808 Mn Valuation drivers Dec 17 Jun18 Chg % Chg LfL Growth Rate since Dec 2017 GDV € / sqm Total 2,635 2,714 79 3.1 15,9% ASP Total € thousands / unit 317 331 14 4.7 LfL 10,4% 8,3% GAV € / sqm 952 907 (44) (4.9) 0,9% IRR weighte
Slide 18: Agenda
Agenda Dampier El Masnou Barcelona 1 Business Update 2 H1 2018 Financial Results 3 Valuation Performance 4 Closing Remarks 18 H1 2018 RESULTS
Slide 19: Closing Remarks
Closing Remarks Confirming Preserving Leaders in Delivering Guidance Margins Land Investment Positive Results • 6,287 active units, • Construction cost • 2019 - 2021 land • Gross Margin 117 developments inflation will needs fully covered 28.6% continue to be offset • Solid operational by strong dema
Slide 20: Appendix 1: P&L / Balance Sheet / NAV
Appendix 1: P&L / Balance Sheet / NAV
Slide 21: Consolidated P&L H1 2018
Consolidated P&L H1 2018 Aedas Homes 30 June 2018 31 December 2017 In € Mn1 Revenue In € Mn 14.7 38.6 Cost of Goods Sold (10.5) (23.3) GROSS MARGIN 4.2 15.3 Marketing (2.5) (3.6) Sales commissions (0.5) (0.4) Other expenses related to developments (0.2) (0.2) Taxes (0.6) (0.5) NET MARGIN 0.4 10.5 Ov
Slide 22: Final Balance Sheet as of 30 June 2018
Final Balance Sheet as of 30 June 2018 Aedas Homes Change 30 June 2018 31 December 2017 In € Mn1 Mn NON- CURRENT ASSETS 26 14 12 Inventories 1,011 881 130 Trade and Other Receivables 32 53 (21) Short Term Accruals 5 3 2 Cash and Equivalents 106 178 (72) CURRENT ASSETS 1,154 1,115 39 TOTAL ASSETS 1,1
Slide 23: Cash Flow Statement Summary
Cash Flow Statement Summary Summary Cash Flow Statement AEDAS HOMES Jun 2018 Dec 2017 (In € Mn1) EBT (8.3) (45.9) Change in Trade Provisions 0.9 0.1 Change in Investment properties (0.04) 2.5 Financial cost / (income) 0.2 8.5 Other Income / (expense) (1.1) 5.6 Change in working capital (86.8) (130.6
Slide 24: NAV & NNAV Calculation details as of 30 June 2018 - Savills
NAV & NNAV Calculation details as of 30 June 2018 - Savills In € Mn € Mn Current Contingent Adjusted Per Share Perimeter Acquisitions perimeter Inventory Carrying Cost net of deposits 1,001.2 17.2 1,018.3 LCG 589.6 589.6 Appraised MV 1,590.7 17.2 1,608.0 GAV 1,590.7 17.2 1,608.0 Gross debt (81.7) (8
Slide 25: Appendix 2: Business Plan Guidance
Appendix 2: Business Plan Guidance
Slide 26: Business Plan 2017-2023: Confirming Guidance
Business Plan 2017-2023: Confirming Guidance Sustainable Housing Development Plan (IPO Business Plan) # Units Target Launches Target Deliveries Launch Delivery Run Rate Run Rate 3.326 3.000 3.000 3.000 3.063 3.000 1,773 Units 2.580 launched in 2017 2.438 2.042 1.986 1.748 1.055 231 0 2017 2018 2019
Slide 27: Appendix 3: 2018-2020 Deliveries visibility
Appendix 3: 2018-2020 Deliveries visibility
Slide 28: 2018 Expected Deliveries
Total housing units 222 2018 Expected Deliveries Completed 100% as of 31 Aug 2018 Sold2 86% Occupational Project1 Regional Office Municipality # Units Construction Status Sold2 Delivered Permit Brisas del Arenal East & Mallorca Jávea 64 Completed Granted 50 47 Galera Sun Costa del Sol Estepona 323 C
Slide 29: 2019 Expected Deliveries
Total housing units 1,071 2019 Expected Deliveries Under construction 100% as of 31 Aug 2018 Sold2 71% Current expected Project1 Regional Office Municipality # Housing Units Construction Progress Sold2 deliveries Altos de la Reserva Boadilla del Monte 11 7 H2 Terraza Los Fresnos Boadilla del Monte 3
Slide 30: 2020 Expected Deliveries
Total housing units 2,011 licence granted 38% 2020 Expected Deliveries Under construction 28% licence requested 61% as of 31 Aug 2018 Sold2 31% licence to be requested 1% Project1 Regional Office Municipality # Units Construction Permit Status Sold2 Zagaleta 2 Costa del Sol Benahavis 1 Granted Const
Slide 31: 2020 Expected Deliveries
Total housing units 2,011 licence granted 38% 2020 Expected Deliveries Under construction 28% licence requested 61% as of 31 Aug 2018 Sold2 31% licence to be requested 1% Project1 Regional Office Municipality # Units Construction Permit Status Sold2 Forneri Cataluña Cambrils 48 Requested Marketing 3
Slide 32: Jardines Hacienda Rosario, Seville
Jardines Hacienda Rosario, Seville 32 H1 2018 RESULTS