Warehouses De Pauw SA · EURONEXT:WDP
Warehouses De Pauw SA — FY2015 Earnings Presentation
48 slides from Warehouses De Pauw SA's earnings presentation, 2016
Slide 1: FY 2015 Results
FY 2015 RESULTS 201 WAREHOUSES WITH BRAINS
Slide 2: Agenda
AGENDA > Introduction > FY 2015 > Highlights > Operational review > Portfolio metrics > Results analysis > Financing structure > Looking ahead > Implementation new growth plan 2016-20 > Outlook 2016 > WDP share 2
Slide 3: Introduction
INTRODUCTION INTRODUCTION MARK DUYCK CHAIRMAN OF THE BOARD 2011-15 “Yes, we did ” 2016-20 “Yes, we can” 3
Slide 4: Highlights FY 2015: growth plan realized one year earlier
FY 2015 HIGHLIGHTS FY 2015 GROWTH PLAN 2013-16 REALIZED ONE YEAR EARLIER EPS DPS 5.00 4.00 euros euros Portfolio ca. 2bn euros (*) Debt ratio 55.7% (*) Including projects in execution. 4
Slide 5: Highlights FY 2015: accomplishments
FY 2015 HIGHLIGHTS FY 2015 ACCOMPLISHMENTS Occupancy Net investment Cost of debt EPS growth rate volume >97% 300m 2.8% 22% sustained euros (vs. 3.5% in FY 2014) 5
Slide 6: Highlights FY 2015: 22% EPS growth
FY 2015 HIGHLIGHTS FY 2015 22% EPS growth Accelerated Lengthening Indemnifications investment hedging early lease rhythm: instruments terminations 300m euros net Reduction in cost Strong solar of debt irradiation EPS 2015 Reported + 4% 0.15 5.00 euros euros EPS 2015 underlying + 6% 0.25 euros 4.85 +
Slide 7: #ThisWas2015
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Slide 8: Dual listing Brussels - Amsterdam
DUAL LISTING BRUSSELS - AMSTERDAM Market Same weight Ambition leader Dutch portfolio for growth Benelux Belgian portfolio in core regions Strengthening WDP’s profile and visibility on Dutch property market Diversification shareholder base Improved access to capital market 8
Slide 9: Purchases 2015
FY 2015 PURCHASES 2015 Transaction Surface Tenant BE Asse 26,000 m² Antalis BE Bornem 90,000 m² DHL Supply Chain BE Willebroek 15,000 m² Damco NL Moerdijk 41,000 m² Lidl NL Breda 175,000 m² (*) The Greenery NL Barendrecht (1) 70,000 m² (*) The Greenery NL Barendrecht (2) 50,000 m² (*) The Greenery N
Slide 10: Projects executed 2015
FY 2015 PROJECTS EXECUTED 2015 Location Completion Surface Tenant BE Vilvoorde Q1 2015 7,000 m² Intertrans BE Londerzeel Q4 2015 9,500 m² Lantmännen Unibake BE Bornem Q4 2015 18,000 m² DHL Supply Chain NL Schiphol Logistics Parc Q1 2015 14,000 m² Kuehne + Nagel NL Zwolle Q2 2015 35,000 m² wehkamp NL
Slide 11: Projects in execution (pre-let)
FY 2015 PROJECTS IN EXECUTION (PRE-LET) Location Completion Surface Tenant BE Willebroek Q2 2016 15,000 m² Damco BE WDPort of Ghent Q2 2016 20,000 m² Distrilog Group BE Heppignies Q2 2016 21,000 m² Trafic NL Barendrecht Q4 2016 40,000 m² The Greenery NL Breda Q4 2016 20,000 m² The Greenery RO Sibiu
Slide 12: Development potential
FY 2015 DEVELOPMENT POTENTIAL (*) Location Potential buildable surface BE WDPort of Ghent (concession) 160,000 m² BE Heppignies 60,000 m² BE Trilogiport (concession) 50,000 m² BE Meerhout (concession) 23,000 m² BE Sint-Niklaas 4,000 m² BE Courcelles 10,000 m² NL Tiel 30,000 m² FR Libercourt 24,000 m
Slide 13: Geographical footprint
FY 2015 GEOGRAPHICAL FOOTPRINT Airport Port Container terminal Zwolle Amsterdam Utrecht Rotterdam Tiel Nijmegen Tilburg Veghel Breda Venlo Antwerp Genk Ghent Meerhout Brussel s Maastricht ROMANIA Lille Liège Brasov Pitesti Ploiesti Charleroi Namur Value (*) 1,844m euros Corbii Mari Fundulea Constant
Slide 14: Geographical footprint: portfolio fair value split
FY 2015 GEOGRAPHICAL FOOTPRINT PORTFOLIO FAIR VALUE SPLIT FY 2015 (*) Belgium Netherlands France Romania Fair value 846m euros 875m euros 77m euros 46m euros 1,844m euros Buildings 1,543,000 m² 1,354,000 m² 146,000 m² 40,000 m² 3.1m m² Land 2,870,000 m² 2,401,000 m² 376,000 m² 965,000 m² 6.6m m² Ave
Slide 15: High-quality portfolio
FY 2015 HIGH-QUALITY PORTFOLIO Class A Deepfrozen BREEAM 1% warehouse Cooled Class A 5% Class C 12% warehouse General Multiple floor warehouse 67% warehouse 4% 1% 71% Cross-dock Other Building Type of 5% 3% quality buildings Other (retail Cross-dock and offices) 6% 4% Class B warehouse Semi industri
Slide 16: Occupancy
FY 2015 OCCUPANCY Historical occupancy rate Lease maturity profile (till first break) 100,0% 40% 7,0 35% 6,0 97,5% 30% 5,0 95,0% 25% 4,0 92,5% 20% 3,0 15% 90,0% 10% 2,0 87,5% 1,0 5% 85,0% 0% 0,0 2016 2017 2018 2019 2020 2021 2022 2023 2024 > 2024 % Lease maturities 2016 renewed year-to-date (lhs) Va
Slide 17: Diversified client base
FY 2015 DIVERSIFIED CLIENT BASE… Top-10 tenants (~40%) (*) 14% SOLAR PANELS 8% 7% 3 PL KUEHNE + NAGEL 7% Food 7% Wholesale GREENYARD FOODS 6% Other DHL SUPPLY CHAIN 4% Fast Consuming Goods DHL EXPRESS 4% Tenant industry Industry ID LOGISTICS 3% activity 7% Automotive ACTION 3% Textile CARREFOUR 3% 6
Slide 18: With long-term leases
FY 2015 … WITH LONG-TERM LEASES WEIGHTED AVERAGE LEASE DURATION (in y) TILL FIRST BREAK TILL EXPIRATION Rental contracts (excl. solar panels) 6,0 7,8 Rental contracts (incl. solar panels) 6,5 8,2 > Income visibility > Circa 35% of contracts have a duration of minimum 10y > Focus on long-term quality
Slide 19: FY 2015 consolidated results
FY 2015 FY 2015 CONSOLIDATED RESULTS Net current result (in euros x 1 000) FY 2015 FY 2014 % Growth Rental income, net of rental-related expenses 117 185 93 438 25,4% I ndemnification related to early lease terminations 3 750 0 n.r. I ncome from solar energy 8 200 6 819 20,3% Other operating income/
Slide 20: FY 2015 consolidated results: per share data
FY 2015 FY 2015 CONSOLIDATED RESULTS Per share data FY 2015 FY 2014 % Growth Net current result (EPRA) (*) 5,00 4,10 22,1% Result on the portfolio (I AS 40 result) (*) 2,60 1,20 n.r. Rev aluation of financial instruments (I AS 39 result) (*) 0,43 -1,18 n.r. Depreciation of solar panels (I AS 16 resu
Slide 21: FY 2015 consolidated B/S
FY 2015 FY 2015 CONSOLIDATED B/S in euros x 1 000 31.12.2015 31.12.2014 31.12.2013 I ntangible fixed assets 96 93 114 Property inv estments 1 796 888 1 461 814 1 167 733 Other tangible fixed assets (incl. solar panels) 74 708 63 699 66 814 Financial fixed assets 14 084 13 573 23 384 Trade receiv abl
Slide 22: FY 2015 consolidated B/S
FY 2015 FY 2015 CONSOLIDATED B/S in euros x 1 000 31.12.2015 31.12.2014 31.12.2013 Capital 143 568 135 329 124 898 I ssue premiums 304 426 239 399 177 057 Reserv es 177 581 174 016 145 451 Net result of the financial year 142 698 64 750 79 674 Equity capital 768 273 613 494 527 080 Long-term financi
Slide 23: Financial management
FY 2015 FINANCIAL MANAGEMENT Matching New funding Active debt & equity well diversified hedging policy 100m euros 45% 55% 7-year equity raised bonds bank loans duration Stable Buffer unused Reduced debt ratio credit facilities cost of debt 55.7% 110m euros 2.8% (*) The equity was strengthened follow
Slide 24: Maintaining balanced capital structure
FY 2015 MAINTAINING BALANCED CAPITAL STRUCTURE 1 100 1 100 1 000 1 000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Portfolio growth 2010-15 Funding sources 2010-15 (in million euros) (in million euros) capex existing portfolio retained earnings solar panels new equity
Slide 25: Financing structure
FY 2015 FINANCING STRUCTURE Evolution hedge ratio Commercial paper 90,0% 8,0 Long-term bilateral 11% 80,0% 7,0 credit lines 61% 70,0% 6,0 Debt 60,0% 5,0 Bonds composition 26% 50,0% 4,0 40,0% 3,0 30,0% 2,0 20,0% Straight loan 10,0% 1,0 Leasing 1% 1% 0,0% 0,0 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 26: Financing structure: debt maturities
FY 2015 FINANCING STRUCTURE Debt maturities (min.) (*) Debt maturities (max.) (*) 250 250 225 225 200 200 175 175 150 150 125 125 100 100 75 75 50 50 25 25 - - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Commercial paper & straight loans Commer
Slide 27: Financing structure
FY 2015 FINANCING STRUCTURE 5,0 65% 5,0% 4,5 4,0 4,0% 60% 3,5 3,0 3,0% 2,5 55% 2,0 2,0% 1,5 50% 1,0 1,0% 0,5 0,0 45% 0,0% 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 Interest Coverage Ratio Debt ratio (rhs) Average cost of debt > Disciplined and consistent financial managem
Slide 28: Focus on sustainable cash flow
FY 2015 FOCUS ON SUSTAINABLE CASH FLOW > Portfolio yielding ~7.5% > High occupancy rate ~97% INVESTMENTS > Lease duration ~7y > Opex <10% of rents GENERATING STRONG CASH FLOW PROFILE > Recurring return on equity >10% > High ICR > Balanced risks > High income visibility > Stable debt ratio ~55-60% >
Slide 29: Return on equity
FY 2015 RETURN ON EQUITY +2,39 44,87 +1,71 39,17 -3,40 +5,00 + 15% NAV (EPRA) Dividend Net current Effect Portfolio NAV (EPRA) 2014 distribution result capital result and 2015 increases other Cash return Fair value and other Return on equity 13% 11% 24% 29
Slide 30: Highlights FY 2015: key figures
HIGHLIGHTS FY 2015 FY 2015 SOUND METRICS KEY FIGURES Operational 31.12.2015 31.12.2014 Fair value of real estate portfolio (incl. solar panels) (in million euros) (*) 1 930,0 1 567,3 Gross rental yield (incl. vacancy) (in %) 7,6 8,0 Net initial yield (EPRA) (in %) 6,9 7,3 Average lease duration (til
Slide 31: New growth plan 2016-20
NEW GROWTH PLAN 201 6-20 WAREHOUSES WITH BRAINS
Slide 32: Looking ahead: growth plan 2011-13
Looking ahead Growth plan > Internal growth opportunities > Acquisitions 2011-13 > Building position in The Netherlands > Roll-out carbon neutrality plan Zeelandbrug © 10 11 12 13 14 15 16 17 18 19 20 Kalyan Chakravarthy 32
Slide 33: Looking ahead: growth plan 2013-16
Looking ahead Growth plan > Acceleration investment rhythm > Reloading development engine 2013-16 > Building genuine Benelux platform > Capturing benefits of falling cost of debt 10 11 12 13 14 15 16 17 18 19 20 33
Slide 34: Looking ahead: total investments 800m euros
Looking ahead Total investments 800m euros Acquisitions Developments | Solar 450m 350m euros euros of which repeat business 200m euros 10 11 12 13 14 15 16 17 18 19 20 34
Slide 35: Looking ahead: e-commerce and multimodality
Looking ahead Zwolle wehkamp Eindhoven DHL Liège Trilogiport E-COMMERCE WDPort of Ghent Flémalle DPD MULTIMODALITY Meerhout 35
Slide 36: Looking ahead: repeat business and sustainability
Looking ahead Willebroek Bakker Logistiek Harderwijk BREEAM Alcoa Excellent Zwolle REPEAT Solar panels BUSINESS Belgium Wallonia Brasov Inter Cars SUSTAINABILITY Eindhoven Bornem Schiphol DHL Tiel Kuehne + Solar Nagel programme Netherlands 36
Slide 37: Looking ahead: growth plan 2016-20
Looking ahead Growth plan > Capitalize on existing portfolio, clients and platform > Structural drivers underpinning demand for logistics space 2016-20 > Consolidating market leadership through repeat business > Improved access to funding through size 10 11 12 13 14 15 16 17 18 19 20 37
Slide 38: Looking ahead: strategy underpinned by macro trends
Looking ahead E-COMMERCE SUSTAINABILITY LOGISTIC CAMPUS GROWTH PLAN 2016-20 SPECIALIZATION Strategy underpinned by structural macro trends Further deployment MULTIMODALITY in existing markets LAST MILE DELIVERY SECURITY 38
Slide 39: Growth plan 2016-20 targets
Looking ahead GROWTH PLAN 2016-20 Portfolio growth EPS growth 1bneuros 25% cumulatively Portfolio DPS EPS 6.25 3bn 5.00 euros euros euros (*) 10 11 12 13 14 15 16 17 18 19 20 39
Slide 40: Growth plan 2016-20 assumptions
Looking ahead GROWTH PLAN 2016-20 Based on > Increasing portfolio with 50% or 1bn euros in existing markets, especially the Benelux > Acquisitions that add long-term value to the portfolio (including a high residual value and the potential to create partnerships with customers) > Realization of pre-
Slide 41: Outlook 2016
OUTLOOK 2016 41
Slide 42: Outlook 2016: building further
Looking ahead OUTLOOK 2016 BUILDING FURTHER EPS DPS 5.20 4.20 euros euros Debt ratio +/- 56% 42
Slide 43: Outlook 2016: EPS and DPS
Looking ahead OUTLOOK 2016 BUILDING FURTHER EPS 5.20 euros > Equivalent to +4% vs. 5.00 euros in 2015 (and +7% excl. non-recurring items in 2015) (**) > Based on net current result of circa 98m euros in absolute terms DPS 4.20 euros > Equivalent to +5% vs. 4.00 euros in 2015 and implying CAGR of 7%
Slide 44: WDP share
Share WDP SHARE 90 5,50 80 5,00 4,50 70 4,00 60 3,50 50 3,00 40 2,50 2,00 30 1,50 20 1,00 10 0,50 0 - EPS (EPRA) (rhs) DPS (rhs) WDP share price Net Asset Value (EPRA NAV) > Share statistics > NAV (EPRA) per share of 44.9 euros at FY 2015 > Market cap of ca. 1.3bn euros > Free float of 74% - Family
Slide 45: Consistent performance
Share CONSISTENT PERFORMANCE 5,50 65% 5,00 4,50 4,00 60% 3,50 3,00 55% 2,50 2,00 1,50 50% 1,00 0,50 - 45% 2009 2010 2011 2012 2013 2014 2015 EPS (EPRA) DPS Debt ratio (rhs) > Earnings growth based on constant capital structure > Creating growth and profitability > Efficient deployment of capital (de
Slide 46: Contact details
Save the date INVESTOR DAY 11 October 2016 CONTACT DETAILS Mickael Van den Hauwe Joost Uwents CFO CEO +32 (0)473 93 74 91 +32 (0)476 88 99 26 mickael.vandenhauwe@wdp.eu joost.uwents@wdp.eu www.wdp.eu 46
Slide 47: Disclaimer
DISCLAIMER Warehouses De Pauw Comm. VA, abbreviated WDP, having its registered office at Blakebergen 15, 1861 Wolvertem (Belgium), is a public Regulated Real estate company, incorporated under Belgian law and listed on Euronext Brussels. This presentation contains forward-looking information, foreca
Slide 48: Warehouses with brains
a wbDpP WAREHOUSES WITH BRAINS
WDP (Warehouses De Pauw) — FY2015 Earnings Presentation on 6ix