Metrovacesa Sa · BME:MVC
Metrovacesa Sa — 9M 2019 Earnings Presentation
28 slides from Metrovacesa Sa's earnings presentation, Nov 14, 2019
Slide 1: Results 3Q2019
November 14, 2019 Results 3Q2019 Majestic Heights (Manilva, Málaga)
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Highlights 2. Business Update 3. Financial Overview 4. Sector dynamics 5. Perspectives 6. Appendix Today’s Presenters Jorge Perez de Leza CEO Borja Tejada CFO Juan Carlos Calvo IR 3.
Slide 4: 1. Highlights
Nereidas (Torremolinos, Málaga) 1. Highlights
Slide 5: Highlights
Highlights Healthy progress on the • Pre-sales in 9M19 1,104 units (+129% YoY) • Pre-sales backlog €533m (1,882 units) development activity • Building licenses obtained 2,242 units • Total revenues: €109m (+16% YoY) Financial results • Units delivered: 131. Land sales: €78m in 9M2019 • Ebit: €7m. Pr
Slide 6: 2. Business update
Momentum (Montornés del Vallés, Barcelona) 2. Business update
Slide 7: Key operational data as of September 30, 2019
Key operational data as of September 30, 2019 7,340 activeunits €305k/unit 5,168 units and Sales Backlog (2) Business 121 developments active ASP (1) 87 developments under 1,882 €533m commercialization Sold units €283k/unit ASP (1) 3,388 57 units under developments construction under construction 13
Slide 8: Residential active units: 7,340 as of September
Residential active units: 7,340 as of September Active units Accum. 9m 19 # units Figures as of September 2019: €612m €1,730m €543m (€31m) €2,242m (131) 7,340 • Total active units reached 7,340 (ASP €305k/unit) 5,565 1,906 • 121 active developments: · 87 under commercialization (5,168 units) · 57 un
Slide 9: Residential pre-sales: 1,104 units sold in 9M19, backlog of 1,882 units
Residential pre-sales: 1,104 units sold in 9M19, backlog of 1,882 units Pre-sales YtD: 1,104 units in 9m19 (263 in 3Q) Under commercialization: 5,168 units, 36% already sold, avg ASP of €299k # units # units % sales over units under commercialization Unsold 1,104 Sold 44% 24% 36% 1,222 3,840 5,168 X
Slide 10: Construction & licenses YTD
Construction & licenses YTD Units in construction (#) Works in progress • 57 projects (3,388 units) currently under construction. • Total volume of works contracted is €425m with 25 construction companies 3,388 • During 9M2019, 31 projects (2,188 units) initiated construction. In 3Q: 10 projects, 68
Slide 11: Deliveries: construction works completed for all 2019 projects
Deliveries: construction works completed for all 2019 projects Construction completed for all the projects scheduled for 2019 Deliveries in 9M19: 131 units • With the exception of 95 units, where the contractor was replaced in July, • Revenues of €31m as we reported in 1H results. These will now be
Slide 12: Land sales: €78m completed as of September, more deals to come in 4Q
Land sales: € 78m completed as of September, more deals to come in 4Q Project Location Use Sale price Buildable Residential Quarter Land sales (€m) (€m) sqm units # Llacuna Barcelona Commercial 15.5 9,960 Q1 78 Avda Manuel Fdez Marquez Barcelona Commercial 5.9 11,778 Q1 Arrosadía A4 Pamplona Residen
Slide 13: Land management: units transformed to FP in 9m19
Land management: 370 units transformed to FP in 9m19 Plot Municipality € m (1) Units Date Status Santiago Cordero Madrid 7.4 65 2Q Transformed to FP, pending urbanization Fully Calderotas Martorell, Barcelona 1.3 187 3Q Transformed to FP (2) permitted AD20 Barberá del Vallés, Barcelona 5.2 118 3Q Tr
Slide 14: Turnkey Project signed with 11,250 sqm office in Madrid
Turnkey Project signed with 11,250 sqm office in Madrid Monteburgos II renders Purchase and Sale agreement signed in November • Turnkey sale of a 11,250 sqm office building situated in Las Tablas district (Madrid city) • Sold to the insurance group Catalana Occidente • Plot previously named as Monte
Slide 15: 3. Financial Overview
Aqualina (Benahavís, Málaga) 3. Financial Overview
Slide 16: Financial Accounts: highlights
Financial Accounts: highlights Ebit evolution Profit & Loss Financial situation 6.7 €109m total revenues (+16% YoY) LTV ratio: 3% Sept. 2019 (2.0) Sept. 2018 Residential deliveries: Land Sales: Net debt: €83.3m €31m €78m • 131 units Cash: €107m • Gross margin: 11% Pre-tax profit • Avg ASP of €234k •
Slide 17: Net Debt: LTV ratio of 3%
Net Debt: LTV ratio of 3% Net debt (net cash) evolution Key considerations • Net debt of €83m 83.3 · Slight increase in net debt in 3Q driven by construction capex 42.4 · LTV ratio of 3% 10.3 9.7 • Gross debt of €144m Dec. 2017 Jun. 2018 Sept. 2019 · Corporate financing of €103m drawn after repaymen
Slide 18: 4. Sector dynamics
Hespérides (Sevilla) 4. Sector dynamics
Slide 19: Recent sector dynamics
Recent sector dynamics • Price rise is decelerating vs last year. HPA for 2019 could be lower than our initial estimate of 4% House prices • Slowdown in housing demand, influenced by the political uncertainty and regulatory changes and demand • Effect should be temporary since fundamentals remain so
Slide 20: MVC is adapting to the context
MVC is adapting to the context Majestic Heights (Manilva, Málaga) A conservative approach Greater focus on on new launches institutional clients • Actively marketing a list of suitable • Assuming lower HPA and longer projects selling periods • Includes traditional residential for rent as • Deeper an
Slide 21: 5. Perspectives
Avante render (Valencia) 5. Perspectives
Slide 22: 2019 year-end perspectives and share buyback
2019 year-end perspectives and share buyback • MVC maintains its overall P&L and cashflow expectations, with a different mix: • Lower residential development deliveries Meeting • Higher land sales • MVC is anticipating land sales to compensate fluctuations in unit deliveries, using its flexibility t
Slide 23: Perspectives on 2020 and beyond
Perspectives on 2020 and beyond • We are reviewing our operational mix to adapt to the changing market dynamics with the aim to maintain our strong FCF generation targets • MVC will adapt to changes using its key competitive advantages: • A large land bank of high quality: a diversified presence in
Slide 24: 6. Appendix
Residencial Citrea (Málaga) 6. Appendix • Financial accounts 9M19
Slide 25: Profit and Loss Account
Profit and Loss Account Summary P&L (€m) Sept. 2018 Sept. 2019 Key considerations A Revenues 93,4 108,7 A Residential Development 70,8 30,6 Land Sales 22,6 78,1 •Total revenues of €108.7m (+16% YoY) COGS (79,7) (94,4) • Residential revenues of €30.6m (131 units delivered) COGs Developments (56,5) (2
Slide 26: Balance Sheet
Balance Sheet Summary Balance Sheet Key considerations (€m) Dec. 2018 (1) Sept. 2019 A Investment property (2) 340,1 341,3 A B Other non- current assets 236,8 255,2 Book value of real estate assets (inventory + investment property): €2.2bn Total non-current assets 576.9 596,5 • External appraisal va
Slide 27: Cash Flow Statement
Cash Flow Statement Summary Cash Flow Statement (€m) Dec. 2018 (1) Sept. 2019 EBT 0.4 1.9 Key considerations Changes in trade provisions 1.6 (8.9) • Net debt has increased €124.4m YtD Changes in investment properties (9.7) (7.3) • Reduction of €40.5m in total cash and €58.4m increase in gross debt F
Slide 28: Q&A
Residencial Novolérez I & II render (Pontevedra) Q&A