Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — H1 2013 Earnings Presentation
47 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Aug 7, 2013
Slide 1: Results Presentation as at 30/06/2013
Conference call 7 August 2013 3.00 p.m. Results Presentation as at 30/06/2013
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 € 60.5 mn •Revenues from core business ( -1.8% vs 30/06/2012) EBITDA € 41.6 mn •EBITDA (core business) ( -3.5% vs 30/06/2012) •EBITDA margin (core business) 68.8% (-1.2 percentage points) Group Net Profit € 4.1 mn ( -51.1% vs 30/06/2012) € 17.6 mn Funds From Operations (FFO) (
Slide 4: Economic Context
ECONOMIC CONTEXT
Slide 5: The Italian economic context
5 The Italian economic context Household spending and retail trade GDP trend (change %) Evolution of retail investments (change%) 2 High street Retail warehousing Shopping center Supermarket Total investments 2500 1 1,990 1.5% 2000 0 1.0% 0.4% 0.5% 2008 2009 2010 2011 2012 2013 2014 0.5% 1,340 -1 15
Slide 6: The Romanian economic context
6 The Romanian economic context GDP trend (change %) Split of retail stock per category 4.0% 0.60% Factory Outlet Centers 11.80% 17.10% 3.5% Shopping centers < 20,000 sqm 3.0% 13.10% Shopping centers 2.5% 2.2% 2.2% 20,001-40,000 sqm Shopping centers > 2.0% 1.7% 17.00% 40,001 sqm 1.5% Retail parks <
Slide 7: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 8: Consolidated Income Statement
8 Consolidated Income Statement "PORTA A MARE" CONSOLIDATED CORE BUSINESS PROJECT €/000 30/06/2012 30/06/2013 % 30/06/2012 30/06/2013 % 30/06/2012 30/06/2013 % Revenues from freehold properties 54,731 53,831 (1.6)% 54,731 53,790 (1.7)% 0 41 n.a. Revenues from leasehold properties 4,262 4,201 (1.4)%
Slide 9: Margin for activities
9 Margin for activities "PORTA A MARE" CONSOLIDATED CORE BUSINESS PROJECT €/000 30/06/2012 30/06/2013 % 30/06/2012 30/06/2013 % 30/06/2012 30/06/2013 % Margin from freehold properties 46,705 45,511 (2.6)% 46,705 45,480 (2.6)% 0 31 n.a. Margin from leasehold properties 766 654 (14.6)% 766 654 (14.6)%
Slide 10: Revenues from core business: -1.8%
10 Revenues from core business: -1.8% BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 61,613 Total 60,546 8.8% 0.1% revenues 0.4% -1.7% 41 1.2% Core business -1.8% "PORTA A MARE" PROJECT CORE BUSINESS 60.4% 29.1% 61,613 60,505 30/06/2012 30/06/2013 MALLS HYPERMARKETS CITY OTHER R
Slide 11: Direct costs and G&A expenses core business
11 Direct costs and G&A expenses core business DIRECT COSTS CORE BUSINESS (€ 000) 13,766 14,074 +2.0% Increase in Direct Costs mainly due to: OTHER DIRECT COSTS PROVISIONS •IMU property tax + € 0.5 mn (+14.1%) IMU (ex ICI) because some coefficients have been 9,073 9,206 changed. •SERVICE CHARGES + €
Slide 12: Total consolidated Ebitda and core business Ebitda
Total consolidated Ebitda: € 41.2 mn 12 Ebitda (core business): € 41.6 mn (-3.5%) TOTAL EBITDA (€ 000) 1,067 362 367 173 43,187 41,218 Ebitda 30/06/2012 Change in Change in direct Change in Change in G&A Ebitda 30/06/2013 operating revenues costs increases, cost of expenses sales and other EBITDA an
Slide 13: Group net profit: € 4.1 mn
13 Group net profit: € 4.1 mn GROUP NET PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) 8,292 -62.4 % 1,489 480 4,709 197 8,292 4,056 1,282 963 4,056 Group net Change in Change in Change in Change in Change in Change in Group net 30/06/2012 30/06/2013 profit Ebitda core Ebitda of depreciation, financial
Slide 14: Funds From Operations
14 Funds From Operations FFO (€/000) 30/06/2012 30/06/2013 D D% Pre-tax profit 6,450 735 -5,715 -88.6% Of which: Depreciation & other provisions 651 723 72 11.0% • – € 2.0 mn due to Change in FV and writedowns 11,694 16,331 4,637 39.6% decreased Ebitda Extraordinary management 367 490 123 33.3% • +
Slide 15: Commercial Highlights
15 Commercial Highlights Footfalls in Italian IGD shopping malls (L4L) +1.5% vs 30/06/2012 Tenants sales in Italian IGD shopping malls (L4L) -3.1% vs 30/06/2012 Footfalls in Romanian WINMARKT -0.6% vs 30/06/2012 shopping malls (L4L) 7 August 2013 1H2013 Results Presentation
Slide 16: The performance of our shopping malls in 1H2013
16 The performance of our shopping malls in 1H2013 TENANT SALES AND FOOTFALLS IN OUR SHOPPING CENTERS SALES FOOTFALLS Total trend LFL Total trend LFL abs. Value ITALY -2.8% -3.1% +1.5% +1.5% 31.7 mn** ROMANIA n.p* -0.6% 15.9 mn *not all our tenants have a cash register ** the footfalls of Centro Gra
Slide 17: The performance of our shopping malls in 1H2013
17 The performance of our shopping malls in 1H2013 TENANT SALES AND FOOTFALLS TREND (per month) Turnover change Footfalls change 6.0% 5.4% 4.4% 4.0% 3.6% 2.0% 1.2% -0.3% 0.0% -0.4% January February March April May June -1.2% -1.8% -2.0% -4.0% -4.0% -4.3% -5.1% -5.7% Source: IGD’s marketing -6.0% Pos
Slide 18: Hypermarkets and shopping trends in 1H2013
18 Hypermarkets and shopping trends in 1H2013 HYPERMARKET/SUPERMARKET SALES IN ITALY Total trend LFL Total trend LFL Total trend LFL Total trend LFL Supermarkets + -0.7% -1.6% +0.3% - 1.1% + 0.4% - 0.8% - 3.6% - 3.6% Hypermarkets Hypermarkets - 1.3% -1.5% + 0.1% +0.2% - 0.9% - 0.9% - 3.6% - 3.6% Sup
Slide 19: Tenants in Italy
19 Tenants in Italy TOTAL CONTRACTS Turnover TOP 10 Tenant Product category Contracts impact Gruppo Miroglio Malls 1,003 clothing 3.6% 34 Hypermarkets 19 clothing 3.1% 10 Total 1,022 clothing 1.9% 6 clothing and sports 1.9% 3 equipment BRANDS BREAKDOWN IN MALLS By turnover COMPAR footwear 1.8% 9 foo
Slide 20: Tenants in Romania
20 Tenants in Romania TOTAL CONTRACTS 584 BRANDS BREAKDOWN IN MALLS By turnover 28% 35% 37% NEW International brands National brands Local brands 7 August 2013 1H2013 Results Presentation
Slide 21: Contracts in Italy and Romania
21 Contracts in Italy and Romania EXPITY DATE OF CONTRACTS OF HYPERMARKETS EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. of contracts) MALLS IN ITALY ( % of value) 120% Nr. 19 120% 100.0% 100.0% 100% 100% 80% Nr. 584 80% Malls 62.9% Malls 58.2% 60% 60% Hypermarkets/ Hypermar
Slide 22: How we are facing the future
22 How we are facing the future From an operating point of view, we can start from Footfalls in our shopping centers that are holding up well although Consumption styles have changed then We need to focus on and think again about: 1. Shopping centers as ”spaces to be lived in” 2. Sustainability 3. M
Slide 23: Shopping centers as spaces to be lived in
23 1. Shopping centers as ”spaces to be lived in” The number of marketing events (+50%) to reinforce the concept of Shopping centers as “spaces to be lived in“ has increased. Final of “The Talent” Sport time in collaboration with CONI Final of “The Talent” 7 August 2013 1H2013 Results Presentation
Slide 24: Sustainability
24 2. Sustainability SUSTAINABILITY ECONOMIC-FINANCIAL SOCIAL – ENVIRONMENTAL - Attention placed on the needs of the Commercial policy with attention placed on the territories; economic balance of IGD and its partners. - Reduction of the environmental impact of its structures: - In March 2013 UNI EN
Slide 25: Malls merchandising mix
25 3. Malls merchandising mix We will be able to maintain a high consumer interest in our shopping centers only by means of continuous monitoring of new consumption trend . New styles in times of crisis: - Do it your self - Food Design - The rebirth of the traditional shops - Re-commerce - Where e-c
Slide 26: New consumption styles 1/2
26 New consumption styles 1/2 FOOD DESIGN = it is not enough that the food is DO IT YOUR SELF = move away from good, it is important (or perhaps first of all) the purchase of a product to the that it looks good. autonomous and personalized creation of it. Merchandising ideas stores: Merchandising i
Slide 27: New consumption styles 2/2
27 New consumption styles 2/2 RE-COMMERCE = refers to the growing WHERE E-COMMERCE DOES NOT ARRIVE behaviour of selling products that were = the growing importance of e-commerce will purchased and no longer needed. Who require us to enter stores where human sells gains space and money. Who buys cont
Slide 28: Work on structure and Food anchor: Centro Tiburtino
28 4. Work on structure and Food anchor Commercial restyling in Centro Tiburtino - Guidonia Work regarding incorporation of neighborhood shops to create attractive spaces for operators of medium surfaces. 7 August 2013 1H2013 Results Presentation
Slide 29: Work on structure and Food anchor: La Torre
29 4. Work on structure and Food anchor Commercial restyling in La Torre - Palermo An oversized food court with poor visibility can become a revitalized square by merging small restaurants and creating medium-sized areas and introducing attractive brands New medium sized areas in the ex food court 7
Slide 30: Work on structure and food anchor: Mondovicino
30 4. Work on structure and food anchor Commercial restyling in Mondovicino - Mondovì The merging of different shops will lead to the creation of a new medium-sized area with a front made more visible thanks to the enlargement of the square, obtained by moving a shop. SOSTENIBILITÀ New medium sized
Slide 31: Focus on Romania
31 Focus on Romania NEXT OPENINGS Spring 2014 – Galati Spring 2014 – Ramnicu Valcea The renovation of the portfolio continues Autumn 2014 – Piatra Neamt Spring 2015 - Tulcea Total investments equal to € 4.9 mn expected in 2013 of which € 1.6 mn in 1H2013 shopping center status @ 30 June 2013 main go
Slide 32: Portfolio
PORTFOLIO
Slide 33: Italian portfolio
33 Italian portfolio 51 REAL ESTE UNITS IN 11 ITALIAN REGIONS: 19 shopping malls and retail parks 19 hypermarkets and supermarkets 1 city center 4 plots of land for development 1 property held for trading 7 other Emilia Romagna 5 shopping malls, 8 hypermarkets-Super, 1 city center, 5 other, 1 land P
Slide 34: Romanian portfolio
34 Romanian portfolio 15 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 DIFFERENT ROMANIAN MEDIUM SIZED CITIES GEOGRAPHICAL DISTRIBUTION OF ROMANIAN PORTFOLIO 24% 15% x <= 100.000 abitanti 100.000h < x <= 200.000 abitanti x > 200.000 abitanti 61% 7 August 2013 1H2013 Results Presentation
Slide 35: Italian and Romanian portfolio
35 Italian and Romanian portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO MARKET VALUE 9.3% 1.5% HYPERMARKET/ SUPERMARKET 6.0% MALLS 0.4% 2.4% 28.6% LANDS OTHER TRADING WINMARKT CITY CENTER 51.9% PORTFOLIO BREAKDOWN BY PORTFOLIO BREAKDOWN ITALY AND GEOGRAPHIC AREA IN ITALY (mkt value) ROMANIA (mkt valu
Slide 36: Breakdown of portfolio appraisals
36 Breakdown of portfolio appraisals CATEGORIA IMMOBILE % PORTAFOGLIO PERITO 13.37% CBRE Hypermarket and supermarket 15.20% REAG 28.83% CBRE Shopping malls and RP 23.03% REAG City Center 1.47% CBRE 0.33% CBRE Other 0.02% REAG Asset held for trading 6.04% CBRE 1.73% CBRE Development and lands 0.66% R
Slide 37: Market Value evolution 1/2
37 Market Value evolution 1/2 € mn Mkt Value Mkt Value 31/12/2012 30/06/2013 LFL Italian portfolio 1,548.95 1,531.41 (malls+hypermarkets+other) City Center Project V. Rizzoli 27.70 27.80 Total income related portfolio in ITALY 1,576.65 1,559.21 -1.11% Winmarkt Romanian portfolio 177.90 176.90 (malls
Slide 38: Market Value evolution 2/2
38 Market Value evolution 2/2 ITALIAN Portfolio Change in income related LFL FV (hypermarkets, malls, city center and other): -1.1% of which: • HYPERMARKETS: +0.59% (mainly due to the different allocation of IMU property tax between hypermarket and mall in the Tiburtino Shopping Center in Guidonia.
Slide 39: Portfolio characteristics
39 Portfolio characteristics ITALY ROMANIA HYPERMARKETS MALLS AVERAGE MALLS Financial occupancy 100.0% 95.4% 96.9% 88.3% Market value As at 31 December 2012 €mn 541.60 983.10 172.8 Compound average yield of total portfolio 6.64% 6.59% 7.14% (gross initial yield) The return on HYPERMARKETS (6.64%, +0
Slide 40: NAV
40 NAV NNAV PS (€) NNAV FY12 1H13 2.53 Market value ow ned properties, lands, direct development initiatives, assets held for trading a 1,906.56 1,895.93 2.31 Investment properties, lands and development initiatives, assets held for trading b 1,905.78 1,895.43 2.20 Potential capital gain c=a-b 0.78
Slide 41: Financial Structure
FINANCIAL STRUCTURE
Slide 42: Financial Highlights 1/2
42 Financial Highlights 1/2 31/03/2013 30/06/2013 GEARING RATIO 1.36 1.38 LOAN TO VALUE 57.0% 57.3% COST OF DEBT • Total 4.04% 4.13% • “Adjusted” (excluding figurative charges on bond) 3.82% 3.79% INTEREST COVER RATIO • Total 1.88X 1.80X • “Adjusted” (excluding figurative charges on bond) 2.07X 1.95
Slide 43: Financial Highlights 2/2
43 Financial Highlights 2/2 31/03/2013 30/06/2013 AVERAGE LENGTH OF LONG TERM DEBT 9.9 years 9.7 years (Bond excluded) MID/LONG TERM DEBT RATE 61.1% 69.2% If we would consider the remainig part of the Convertible Bond (expiring in the financial year) as HEDGING ON LONG TERM DEBT + BOND 76.3% 76.9% l
Slide 44: Financial structure
44 Financial structure NET DEBT COMPOSITION (€ 000) 4,366 9,642 761,066 1,086,188 149,289 Of which 181,109 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) Work in progress on a further 90,
Slide 45: Net debt
45 Net debt NET DEBT CHANGE (€ 000) 4,056 12,691 3,741 487 1,659 16,991 1,089,631 1,086,188 Net debt 31/12/12 Profit for the period attributable to Depreciation/Devaluation/Change Change in NWC (net PM Change in other non-current Change in fixed/non-fixed assets Change in shareholders' equity Net de
Slide 46: Reclassified balance sheet
46 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) FY11 FY12 D D% Fixed assets 1,889,979 1,875,227 -14,752 -0.8% NWC 75,713 76,181 468 0.6% Other long term liabilities -68,520 -66,947 1,573 -2.3% TOTAL USE OF FUNDS 1,897,172 1,884,461 -12,711 -0.7% Net debt 1,089,631 1,086,188 -3,443 -0.3% N
Slide 47: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Raffaele Nardi T. +39. 051 509231 raffaele.nardi@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it