Slide 1: FY 2017 Results
FY 2017 Results 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 Corporate Presentation to the market of the Company and its subsidiaries (the “Group”). For the purposes of this disclaimer, “Presentation” means this document, its contents or any part of it.
Slide 3: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 3 FY 2017 RESULTS
Slide 4: Highlights 2017
Highlights 2017 1,773 Units Launched 01 Overachievement of 2017 operating targets 52% Sales1 ratio / 915 Units €310 Mn in Sales1 H2 EBITDA Results: €3.3 Mn (ex one offs) H2 Net Income Results:-€0.28 Mn (ex one offs) 02 H2 2017 Results in line with current ramp-up €37 Mn in programmed lan
Slide 5: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 5 FY 2017 RESULTS
Slide 6: Business targets 2017
Business targets 2017 02 BUSINESS UPDATE LAND AS 2017 Y-END2 # PROJECTS # UNITS # UNITS SOLD ACQUISITIONS LAUNCHED LAUNCHED (#UNITS) 7% PRICE BUSINESS PLAN INCREASE TARGETS 2017 Y-END 34 1,748 845 2,484 ACHIEVEMENT 35 1,773 915 3,1721 AS 2017 Y-END 3% CONSTRUCTION COST INFLATION CURRENT STATUS Note
Slide 7: Launching Activity in 2017
Launching Activity in 2017 02 BUSINESS UPDATE 1,773 Launched Units Launch strategy provides visibility Strong brand positioning in all GDV €722.6 Mn for 2018 & 2019 Deliveries 5 regions Total Launched1 Madrid East & Mallorca Catalonia Costa del Sol Seville 8% 32% 12% 16% Total GDV Breakdown of 2017
Slide 8: Marketing Activity by 2017 Year End
Marketing Activity by 2017 Year End 02 BUSINESS UPDATE 915 Units Sold1 44.9% of €310 Mn Sales already formalised in 52% of Sales over Total Launched Total Sales1 contracts Sustainable Evolution of Sales, adjusted to seasonality of the business Delivered2 # Projects 0.5% 8 19 25 35 Contracts Reservat
Slide 9: Projects Under Construction
Projects Under Construction 02 BUSINESS UPDATE Evolution of Construction Projects 209 1,419 1,286 Pace of Construction on track to meet 1,210 398 target deliveries on 2018 & 2019 812 +100% Units u/ Units starting in Total u/ Units to start Total units Target deliveries Out of Target deliveries of un
Slide 10: Land Bank Acquisitions & Sales in 2017
Land Bank Acquisitions & Sales in 2017 02 BUSINESS UPDATE €123.1 Mn invested 100% Fully Permitted Land €37.2 Mn Land Sales 3,172 potential units 29% RTB – Ready to Build 40.6% Land Sales Margin 27% of overachievement Land Acquisitions & Divestments in 2017 (# Units) Land Acquisition by Status (100%
Slide 11: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 11 11 FY 2017 RESULTS
Slide 12: Consolidated P&L 2017
Consolidated P&L 2017 03 FY 2017 FINANCIAL RESULTS AEDAS HOMES Total H2 H2 2017 One-Off In € Mn1 2017 H1 2017 Net Income already discounted in NAV at IPO GROSS MARGIN 15.2 15.3 H2 2017 Net income according to activity level NET MARGIN 12.2 12.2 EBITDA 3.3 3.3 Depreciation and Amortization -0.1 -0.1
Slide 13: EBITDA Breakdown 2nd Semester
EBITDA Breakdown 2nd Semester 03 FY 2017 FINANCIAL RESULTS AEDAS HOMES H1 2017 H2 2017 Revenues driven by programmed sale of 6 Plots + 12 units 1 In € Mn delivered - Total Gross Margin of 39.5% Revenues 0.3 38.3 Cost of Goods Sold -0.3 -23.0 Deliveries 3% Land Disposals 97% GROSS MARGIN 0.0 15.2 Mar
Slide 14: Final Balance Sheet Structure after IPO
Final Balance Sheet Structure after IPO 03 FY 2017 FINANCIAL RESULTS Aedas Homes Change Equity Liabilities 31/12/2017 30/06/2017 In € Mn1 Mn 83% 17% €937.3 Mn 192.0 NON- CURRENT ASSETS 14 5 10 Inventories 881 767 114 Main Balance Sheet Changes Trade and Other Receivables 53 19 34 Short Term Accruals
Slide 15: Net Debt as of 31/12
Net Debt as of 31/12 03 FY 2017 FINANCIAL RESULTS -4% -2% LTC1 LTV2 Financial Debt Structure (€ Mn) FY 2017 FY 2017 Total €69.5 Mn € '000s FY 2017 H1 2017 8.1 12% Unsecured Debt Corporate Financing Financial Debt 69.5 71.1 Deferred Land Payments 54.0 53.3 28.7 Construction Financing Gross Debt 123.5
Slide 16: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 16 16 FY 2017 RESULTS
Slide 17: GAV and NAV Bridge
GAV and NAV Bridge 04 VALUATION PERFORMANCE GAV Revaluation since IPO LfL GAV Bridge from H1 to H2 2017 € Mn € Mn GAV Growth Net of +7.3% investment in W.C 1,468.3 7 1,475.3 LFL +4.2% 107 1,370 1,475 54 1,361.2 17 34 1,255.7 GAV at IPO GAV as of H1 2017 Wip Pending Revaluation Assets LFL Assets + FY
Slide 18: Appraisal Drivers
Appraisal Drivers 04 VALUATION PERFORMANCE GAV GDV €1,475 Mn1 €4,070 Mn Valuation drivers Jun17 Dec17 Chg %Chg LfL Growth Rate since June 2017 GDV €/ Sqm Total 2,512 2,635 123 4.9% 5.1% 5.1% ASP Total € thousands /Ud 299 317 18 6.1% LfL 4.2% GAV €/Sqm 893 952 59 6.6% IRR weighted by GDV2 12.61% 12.4
Slide 19: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 19 FY 2017 RESULTS
Slide 20: Business Plan 2017-2023: Confirming Guidance
Business Plan 2017-2023: Confirming Guidance 05 GUIDANCE 2018 c. 12,9301 Sustainable Housing Development Plan Units Land Bank as of 31.12.2017 # Units Target Launches Target Deliveries Launch Delivery Run Rate Run Rate +12,000 3,326 3,000 3,000 3,000 3,063 3,000 2017-2023 Target Deliveries 1,773 Uni
Slide 21: Business Plan Targets for 2018
Business Plan Targets for 2018 05 GUIDANCE 2018 2017 Achieved 2018 Target 2018 Accumulated # Units Launched 1,773 2,050 3,823 # Units Sold 915 1,500 2,415 # Units under construction 812 2,390 3,202 # Units Delivered 12 221 233 21 21 FY 2017 RESULTS
Slide 22: Land Investment Guidelines
Land Investment Guidelines 05 GUIDANCE 2018 1,042 Units Continuing our Opportunity in the market to 2018 Investment Target frontload strategy overachieve initial previsions Pipeline Breakdown as of 31st December 4-Pillar Strategy 10,264 9,511 1 2 Focus in cherry picked and Increase focus in land cla
Slide 23: Agenda
Agenda 1 Highlights 2 Business Update 3 FY 2017 Financial Results 4 Valuation Performance 5 Guidance 2018 6 Closing Remarks Vanian Green Village, Estepona 23 FY 2017 RESULTS
Slide 24: Closing Remarks
Closing Remarks 06 CLOSING REMARKS Fulfilment of 2017 operating targets Confirming 2018 & 2019 delivery targets 2017 land bank investment overachievement Positive sales momentum and active management of price increases Day to day licensing management and construction cost control by in house project
Slide 25: Appendix 1: P&L / Balance Sheet / NAV
Appendix 1: P&L / Balance Sheet / NAV
Slide 26: Consolidated P&L 2017
Consolidated P&L 2017 AEDAS HOMES PROFIT & LOSS STATEMENT 31/12/2017 H1 2017 H2 2017 € Mn CONSOLIDATED ACCOUNTS In € Mn Revenues 38.6 0.3 38.3 Cost of Goods Sold -23.3 -0.3 -23.0 GROSS MARGIN 15.3 0.0 15.2 Marketing -3.6 -1.4 -2.2 Sales commissions -0.4 0.0 -0.4 Other expenses related to development
Slide 27: Final Balance Sheet Structure after IPO
Final Balance Sheet Structure after IPO Aedas Homes Change 31/12/2017 30/06/2017 In € Mn1 Mn NON- CURRENT ASSETS 14 5 10 Inventories 881 767 114 Trade and Other Receivables 53 19 34 Short Term Accruals 3 1 3 Cash and Equivalents 178 20 158 CURRENT ASSETS 1,115 806 309 TOTAL ASSETS 1,129 811 318 EQUI
Slide 28: NAV Calculations Detail
NAV Calculations Detail In € Mn Current Committed Adjusted € Mn Nagueles Perimeter Acquisitions perimeter Inventory Carrying Cost net of deposits 871 17 9 896 LCG 572 0 7 579 Mvalue appraised by Savills 1,435 17 16 1,468 MV of assets not appraised by Savills 9 0 0 9 GAV 1,442 17 16 1,475 Gross debt
Slide 29: Appendix 2: Market Overview
Appendix 2: Market Overview
Slide 30: Market Overview
Market Overview Positive Outlook for Spanish Economy (GDP) Spanish Consumer Confidence Index YoY Net Balance 10 +2 3.2% 3.2% 0 3.1% 2.5% 2.4% -10 2.2% 2.1% 2.0% 2.0% 1.8% -20 1.4% 1.2% -30 -40 0.0% -50 2013 2014 2015 2016 2017 2018E 2019E ene-08 ene-09 ene-10 ene-11 ene-12 ene-13 ene-14 ene-15 ene-1
Slide 31: Market Overview
Market Overview Cost of Mortgage & Mortgage Lending Over GDP Outstanding Loans to House Holds (%) % Cost of Mortgage 12-Month %Change % Mortgage Lending 7 40 100 35 6 80 30 5 58% 25 4 60 20 3 40 15 2 10 1 2.05 20 5 -2.44 0 0 0 dic-99 dic-01 dic-03 dic-05 dic-07 dic-09 dic-11 dic-13 dic-15 dic-17 -5
Slide 32: Market Overview
Market Overview Residencial Building Starts Year on Year Construction Costs Year on Year 000, Sqm % 8 14000 6 12000 10000 4 8000 1.21% 2 6000 0 jul-07 jul-08 jul-09 jul-10 jul-11 jul-12 jul-13 jul-14 jul-15 jul-16 jul-17 nov-06 mar-07 nov-07 mar-08 nov-08 mar-09 nov-09 mar-10 nov-10 mar-11 nov-11 ma
Slide 33: FY 2017 RESULTS
Mourelle, CalviagMallorca. 3D Render