Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Non-Deal Roadshow (March 2016)
79 slides from Immobiliare Grande Distribuzione SIIQ's roadshow presentation, March 2016
Slide 1: Road Show Presentation
Road Show Presentation March 2016
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: Index
3 Index INTRODUCTION TO THE IGD GROUP 4 IGD’S RESULTS AS AT 31/12/2015 16 OTHER INFORMATION – Results as at 31/12/2015 55 APPENDIX – BUSINESS PLAN 2015-2018 68 March 2016
Slide 4: Introduction to the IGD group
Introduction to the IGD group
Slide 5: IGD is one of the main players in the Italian retail real estate sector
5 IGD is one of the main player in the Italian retail real estate sector: develops and manages shopping centers across the country and has a significant presence in retail distribution in Romania Presence throughout the territory, capital strength, processing power, control and management of all pha
Slide 6: Our business model
6 Our business model A careful merchandising mix, marketing activity adapted to each DIRECT MANAGEMENT context and various customer related services but, especially in OF THE SHOPPING CENTRES this economic environment, careful attention paid to tenants’ needs MEDIUM SIZED AND EASILY In line with the
Slide 7: Italian Portfolio: hypermarkets and shopping malls
7 Italian Portfolio: hypermarkets and shopping malls (as at 30/06/2015) 21 SHOPPING MALLS 25 HYPERMARKETS TENANTS OF HYPERMARKETS CENTRO D'ABRUZZO - Pescara CENTRO D'ABRUZZO - Pescara Coop Alleanza 3.0 PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Alleanza 3.0 ESP - Rave
Slide 8: Main lease terms
8 Main lease terms Italian Shopping Malls Italian Hypermarkets Romanian Shopping Malls Main lease terms: Main lease terms: Main lease terms: Average maturity: Average maturity: 6 to 18 years (+ 6 years) Average maturity: Lease agreement (only space): 6 years Rents indexation: 75% of CPI 2 years for
Slide 9: SIIQ regime: main features
9 SIIQ regime: main features SIIQ STATUS FOR IGD SINCE 1 JANUARY 2008 At least 80% of total assets must be rental asset KEY PARAMETERS At least 80% of total positive components of P&L must be rental income (excluding change in FV) Largest shareholder stake ≤ 60% (vs. previous 51%) SHAREHOLDING LIMIT
Slide 10: IGD's shareholders and governance
10 IGD’s shareholders and governance IGD IS LISTED ON THE STAR SEGMENT OF BORSA ITALIANA TOTAL SHARES 813,045,631 SHARE CAPITAL € 599,760,278.16 5,39% Coop Alleanza 3.0 Unicoop Tirreno 40,92% 41,66% Free Float Market Quantum Strategic 47.5% Partners Ltd 12,03% MARKET SHAREHOLDING REFLECTED IN A GOVE
Slide 11: IGD top management
11 IGD top management GILBERTO COFFARI (1946) CLAUDIO ALBERTINI (1958) Chairman Chief Executive Officer Chairman of IGD's Board since its creation in 2000 Appointed in May 2009 Chairman of Coop Adriatica from 2006 to 2011 Board member at IGD since 2006 Currently board member of the BancaSAI and of F
Slide 12: World (1/2)
12 WORLD (1/2) 7 LEGAL ENTITIES THROUGHOUT ITALY Emilia Romagna, Lombardia, Trentino, Veneto, Friuli Venezia Giulia, Marche, Abruzzo, Puglia, Basilicata Toscana, Lazio, Umbria, Campania Lombardia, Sicilia Piemonte Liguria, Piemonte Toscana Toscana, Umbria, Abruzzo Regions covered by Coop From 1st Ja
Slide 13: World (2/2)
13 WORLD (2/2) Data as at 31/12/2014 Market share in Italy: 19.1% (approx. equal to 2013) Turnover : €12,421M N° of point of sale: ~ 1,200 Employees: ~ 54,600 Members: 8,5 million people (+3.1% vs 2013) COOP PRODUCTS AND SERVICES Goods with Coop brand: Market share > 26% (+1% vs 2013) Coop Salute: 1
Slide 14: From 1 January 2016 Coop Alleanza 3.0
14 From 1 of January 2016 COOP ALLEANZA 3.0 Data as at 31/12/2014 By merging of Coop Adriatica, Coop Estense and Coop Consumatori Nordest Turnover : € 5 bn N° of point of sale: ~419 (o.w. 56 hypermarkets) Employees: ~ 22,000 Members: 2.7 million people Deposits from members: € 7 bn Presence in 12 It
Slide 15: Unicoop Tirreno
15 Unicoop Tirreno Data as at 31/12/2014 Turnover: €1.10 billion Point of sale: 117 Employees: 4,730 Members: 965,466 (+2.44% vs 2013) STRATEGIC PARTNERSHIPS UNIPOL GRUPPO FINANZIARIO (Insurance and banking) IGD SIIQ SPA UNICOOP TIRRENO HAS SET-UP 2 E-COMMERCE PLATFORMS allows you to purchase food p
Slide 16: IGD's results as at 31/12/2015
IGD’s results as at 31/12/2015
Slide 17: 2015: The growth path is confirmed
17 2015: The growth path is confirmed Excellent operating results: Significant economic/financial • Tenant sales +6.7% results: • Revenues: +5% • Footfalls +1.6% • Ebitda: +7% • Occupancy growth in Italy (96.9%) and Romania (93.9%) • FFO: +28.5% Delivering the 2015-2018 Business Plan…and even more!!
Slide 18: Highlights 1/2
18 Highlights 1/2 REVENUES € 125.9 mn •Core Business revenues (+4.5% vs 31/12/2014) EBITDA €84.7 mn •EBITDA (core business) (+6.9% vs 31/12/2014) 67.3% •EBITDA margin (core business) ( +1.5 pts. vs 31/12/2014) •EBITDA margin from Freehold 77.2% •Group Net Profit €45.6 mn (7.3€ mn as at 31/12/2014) €
Slide 19: Highlights 2/2
19 Highlights 2/2 FINANCIAL OCCUPANCY as at 31/12/2015 •ITALY 96.9% (96.2% as at 31/12/2014) •ROMANIA 93,9% (86.4% as at 31/12/2014) Total portfolio Market Value €2,082 mn (€1,951.21 mn as at 31/12/2014) Loan to Value 47,3% (vs 48.3% as at 31/12/2014) Gearing (D/E) 0.93 (vs 0.95 as at 31/12/2014) 1.
Slide 20: Economic Context
ECONOMIC CONTEXT
Slide 21: Macroeconomic context
21 Macroeconomic context 2015 Italy’s indicators* Italy’s 2016 Outlook 125 120 GDP +0.8% 115 110 Consensus 105 indicators for CONSUMPTION +0.9% 100 2016: 95 90 GDP +1/1.4% INFLATION +0.1% 85 Consumption 80 +1.3% 75 2013 2014 2015 2016 Consumers' Confidence Index Firms' Confidence Index Source: Istat
Slide 22: The retail real estate
22 The retail real estate Retail Investments evolution in Italy Total real estate investments in 2015: €8.1 bn Of which total retail investments: €1.4 bn Italia The Italian real estate recorded great results in 2015 with total investments of around €8.1 billion, of which 75% came from foreign inve
Slide 23: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 24: Revenues
24 Revenues BREAKDOWN OF RENTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 122,406 Total 128,516 Revenues +5.0% 353 274 2,289 1.4% 1,645 5,085 5,141 7.1% Core Business +4.7% 32.8% 120,789 115,346 58.7% MALLS HYPERMARKET ROMANIA OTHER CONS 2014 CONS 2015 Core business revenues from rental act.
Slide 25: Rental income drivers
25 Rental income drivers (€/000) ITALY ROMANIA 0.3% +6.1% +4.8% 5,954 -1.176 79 499 -150 316 115,620 121,142 Revenues from rental LFL Italy change Acquis/ext/restyling Disposals+other "Porta a Mare" change LFL Romania change Romania change Revenues from rental activities 2014 change change (other) a
Slide 26: Operating cost and financial management
26 Operating cost and financial management CORE BUSINESS G&A EXPENSES AND DIRECT COSTS (€ 000) (€ 000) Lower effects of operating 10,141 +5% 10,646 costs on Revenues Core business Ebitda margin G&A expenses Direct costs (67.3%) -2% 31,096 30,480 growth: +150bps Ebitda margin from Cons 2014 Cons 2015
Slide 27: Group Net Profit: €45.6 mn
27 Group Net Profit: €45.6 mn NET PROFIT EVOLUTION (€ 000) • In 2014 one-off effect of €1.9 mn due to “Sblocca Italia” law”. • Positive Ace effect on the capital increases 2,627 186 5,466 24,503 45,639 5,495 59 7,302 Group net Profit Change in core Change in Ebitda Change in Change in financial and
Slide 28: Core business Funds From Operations
28 Core business Funds From Operations Funds from Operations 31/12/2014 31/12/2015 D D% Pre-tax proft 12,925 47,290 34,365 265.9% Depreciation and other provisions 1,537 1,670 132 8.6% Of which: Change in FV and devaluation 20,604 -3,196 -23,800 -115.5% • + €5.5 mn due to Ebitda increase Extraordina
Slide 29: Operating Performance
OPERATING PERFORMANCE
Slide 30: Commercial Highlights
30 Commercial Highlights Tenants sales in Italian Shopping Malls + 6.7% yoy * No extensions included +4.6% L4L* +2.8% Footfalls in Italian Shopping Malls +1.6% Footfalls in Italian Shopping Malls -0.2% Hypermarket (in our Shopping Centers) sales -2.7% yoy (-3.9% at 31/12/2014) Footfalls in Romanian
Slide 31: Focus on Italian sales
31 Focus on Italian sales SALES TREND 7.0% 6.3% 6.0% 5.0% 5.0% 4.2% JANUARY 2016 4.0% 2.9% 3.1% Sales +7.6% lfl 3.0% 2.7% 2.2% 2.3% Footfalls +5.8% 2.0% 1.0% 0.0% 1 quarter 14 2 quarter 14 3 quarter 14 4 quarter 14 1 quarter 15 2 quarter 15 3 quarter 15 4 quarter 15 Progressive trend. Abruzzo extens
Slide 32: Commercial activities
32 Commercial activities COMMERCIAL/MARKETING ACTIVITIES Rotation rate of the contracts: 6.3%* New tenants introduced in 2015 *No. of turnover (71) over the total no. of contracts (1,131) E-COMMERCE/NEW TECHNOLOGIES E-commerce confirmed to be an opportunity not a threat: - Shopping Center that
Slide 33: Marketing activities (1/2)
33 Marketing activities (1/2) Enhance the shopping centers’ attractiveness and vitality Increased footfalls Created new entertainment and more inclusive events Some examples of events: Example: HAPPY HAND in TOUR Dear Jack (Conè) +54% Kolors (Porte di Napoli) +104.5% 11 shopping centers Webstar (Cen
Slide 34: Marketing activities (2/2)
Marketing activities (2/2) 34 Enhance the shopping centers’ attractiveness and vitality Increased cultural and educational Tenants involved offering Example: Fashion show organized with tenants and personal shopper available for the guests Cinema exhibition held at Le Maioliche 10 shopping centers F
Slide 35: Focus Romania
35 Focus Romania • INVESTMENTS 2015: €3 mn Total stores as at 31/12/2015: 5 •OCCUPANCY IMPROVEMENT: New opening scheduled in 2016 93,9% compared to 86.4% at 31/12/2014 •LFL REVENUES: +6.1% •RENEWALS UPSIDE: +3.7% 6 opening in 2015 (Alexandria, Braila, Bistrita, Galati, Ploiesti and Buzau) and 2 cont
Slide 36: Sustainability: important results achieved in 2015
Sustainability: 36 important results achieved in 2015 Growth of international reputation Growth of environmental commitment • The EPRA SBPR Gold Award • Consumption down - 10% and obtained for Sustainbility Report 1.2 € million saved by the • Only Italian company in the ICSC tenants in the last thre
Slide 37: Portfolio
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Slide 38: Portfolio characteristics
38 Portfolio characteristics ITALY ROMANIA HYPERMARKET MALLS AVERAGE MALLS Financial Occupancy 100% 95.30% 96.85% 93.90% Market value as at 31 December 2015 €mn 632.93 1,136.81 167.30 Weight on the total value of the portfolio 30.4% 54.6% 8.0% Compounded average yield of total portfolio 6.34% 6.33%
Slide 39: Market Value evolution
39 Market Value evolution € mn Mkt Value Mkt Value 31/12/2014 31/12/2015 Asset Rotation Malls + Hypermarkets + Other Italy 1,579.08 1,775.73 City Center (Piazza Mazzini) 56,50 23.70 Total income related portofolio ITALY 1,635.58 1,799.43 Acquisition Total income related portofolio ROMANIA 175.30 170
Slide 40: Ambitious assets management operations
40 Ambitious assets management operations January 2015 Asset via Rizzoli in Bologna sold to UBS Real Estate Gmbh Total consideration: €29.4 million, (+17.6% vs purchase value (€25mn)) December 2015 Acquisition from UnipolSai of the mall of the Puntadiferro Shopping Center (Forlì), made up by 97 unit
Slide 41: Asset management activities (1/2)
41 Asset management activities (1/2) Internal and external restyling End of works: October 2015 Investment: approx. €4 mn Advantages: increase in occupancy and tenants sales Tenants sales: +12.5% (Oct-Dec‘15/14) Restyling and new medium surface Internal and external restyling End of works: November
Slide 42: Asset management activities (2/2)
42 Asset management activities (2/2) Opening of the Retail Park in Chioggia The retail park is made up by an hypermarket, 8 medium surfaces and 8 stores for a total GLA of 16,900 sqm. End of works: May 2015 Investment: approx. €36 mn Main brands introduced: Trony, Scarpe&Scarpe, OVS, Casa, Decathlon
Slide 43: EPRA NNNAV per share
43 EPRA NNNAV per share The net asset value per share increased +2.7% +10.4% € 1.25 € 1.23 Group Net + € 0.02 € 1.21 € Profit 0.056 - € 0.0375 € Capital increase 0.061 € 1.13 EPRA NNNAV Dividend Fair Value of EPRA NNNAV EPRA NNNAV EPRA NNNAV 31 Dec 2014 debt Restated 31 dic 2014 Adjusted 31 Dec 2015
Slide 44: Financial Structure
FINANCIAL STRUCTURE
Slide 45: An effective financial management
45 An effective financial management NEW RESOURCES DEBT CLOSED Financial management caught the favorable Amount Average cost Amount Average cost conditions available on the market: (€ mln) (%) (€ mln) (%) Bank 80.0 2.05% 104.2 2.6% Debt (M/L) Conditions of two bank mortgages renegotiated Exchang
Slide 46: Financial Highlights 1/2
46 Financial Highlights1/2 31/12/2014 31/12/2015 GEARING RATIO (D/E) 0.95 0.93 LOAN TO VALUE 48.3% 47.3% COST OF DEBT* 4.03% 3.67% *Net of charges on loan (both recurrent and not) INTEREST COVER RATIO 1.77X 2.15X March 2016
Slide 47: Financial Highlights 2/2
47 Financial Highlights 2/2 31/12/2014 31/12/2015 AVERAGE LENGHT OF LONG TERM DEBT (bonds included) 6.2 years 6,3 years MEDIUM/LONG TERM DEBT QUOTA 90.2% 77.6% HEDGING ON LONG TERM DEBT + BOND 90.9% 91.6% BANKING CONFIDENCE €267.5 mn €302.5 mn BANKING CONFIDENCE AVAILABLE €234 mn €120 mn MKT VALUE O
Slide 48: Debt structure and debt maturity
48 Debt structure and debt maturity Natural maturities will ease the cost of debt goal achievement 200 Milioni OPTION Net Debt 180 EARLY €984.81 mn CLOSURE 160 Of which 135mn € 22.3% 140 CMBS BNP 120 cost 5.1% 43.7% 100 162,0 125,0 bond 56.3% bankbancario debito debt 77.7% 80 60 40 8,0 BANKING SYSTE
Slide 49: Dividend of €0.04 per share
49 Dividend IGD’s Board of Directors is asked to propose to the Shareholders’ Annual General Meeting on April 14°, 2015 the approval of the distribution of a: : dividend of €0.04 per share 0.04 +14.3% 0.0375 14.3% Dividend Yield 4.5% on year-end price 0.035 Dividend yield 5.2% on 2 March price 2014
Slide 50: Outlook
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Slide 51: Outlook 2016: execution Pipeline (1/4)
51 Outlook 2016: execution Pipeline (1/4) 2016 Opening: Grosseto The new shopping mall will have a GLA of approx. 17,000sqm, divided in 45 shops of which 7 are medium surfaces, and an hypermarket. Start of work: 1H2015 End of work: 2H 2016 Expected investment: approx. €47 million (only mall) Pre-let
Slide 52: Outlook 2016: execution Pipeline (2/4)
52 Outlook 2016: execution Pipeline(2/4) EXTENSION The project calls for the extension of the mall GLA of about 19,000sqm. Start of work: 2H 2015 End of work: April 2017 Expected investment: approx. € 54 millions OFFICINE STORICHE The project sees the realization of a retail area, of which works are
Slide 53: Outlook 2016 (3/4): Considerable improvements expected
53 Outlook 2016 (3/4) Considerable improvements expected: on REVENUES: • on a like-for-like basis • thanks to the contribution of the Grosseto Shopping Mall from the second half of 2016, and the full year contribution of the 2015 new entry: Clodì Retail Park (Chioggia) and puntadiferro Shopping Ma
Slide 54: Outlook 2016 (4/4): Expected FFO for 2016
54 Outlook 2016 (4/4) Expected FFO for 2016 ≈ + 13/15 % Commited in maintaing an attractive dividend policy linked to the FFO trend ( 2/3 of the gross FFO) March 2016
Slide 55: Other Information: Results as at 31/12/2015
OTHER INFORMATION Results as at 31/12/2015
Slide 56: Consolidated Financial Statement
56 Consolidated Financial Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2014 31/12/2015 D% 31/12/2014 31/12/2015 D% 31/12/2014 31/12/2015 D% Revenues from freehold real estate and rental activities 102,907 108,865 5.8% 102,633 108,512 5.7% 274 353 28.9% Revenues from leasehol
Slide 57: Margin from activities
57 Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2014 31/12/2015 D% 31/12/2014 31/12/2015 D% 31/12/2014 31/12/2015 D% Margin from freehold properties 88,243 93,186 5.6% 87,985 92,921 5.6% 258 265 2.8% Margin from leasehold properties 1,015 1,999 96.9% 1,015 1,999
Slide 58: Total consolidated Ebitda: €84.4 mn
Total consolidated Ebitda: €84.4 mn 58 Ebitda (core business): €84.7 mn CONSOLIDATED EBITDA (€ 000) -56 615 -505 59 5,443 84,369 78,814 Ebitda 31/12/2014 Change in revenues Change in revenues Change in direct Change in G&A Ebitda "Porta a Ebitda 31/12/2015 from rental act. from services costs expens
Slide 59: Sales/Footfalls trend
Sales/Footfalls trend: 59 Increase of sales volume/footfalls 2015/2011 6.0% 4.0% 2.0% +0.4% 0.0% +0.3% Apr-14 Apr-12 Apr-13 Apr-15 Feb-13 Sep-13 Feb-12 Sep-12 Feb-14 Sep-14 Feb-15 Sep-15 Jun-12 Jul-12 Jun-15 Jul-15 Jun-13 Jul-13 Jun-14 Jul-14 Mar-13 Mar-12 Mar-14 Mar-15 Dec-14 Dec-12 Dec-13 Dec-15 O
Slide 60: Contracts in Italy and Romania
60 Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKETS AND MALLS EXPIRY DATE OF HYPERMARKETS AND MALLS CONTRACTS ITALY (% no. of contracts) CONTRACTS ITALY ( % of value) N 20 90% 80% 73.5% 80% N 644 70% 70% 80.0% 57.1% 60% Average yearly 60% 50% maturity 50% 56.9% 40% Hyper 7.8 years 40% N 15
Slide 61: Tenants Italy
61 Tenants Italy MALLS MERCHANDISING MIX Product Turnover SERVICES TOP 10 Tenant Contracts 8% category impact RESTAURANTS 8% clothing 3,2% 11 ELECTRONICS 11% Gruppo Miroglio clothing 3,1% 30 PERSONAL CARE, CLOTHING 51% HEALTHCARE 4% clothing 3,1% 9 ENTERTAINMENT 5% CULTURE, LEISURE, clothing 2,3% 7
Slide 62: Tenants Romania
62 Tenants Romania MALLS MERCHANDISING MIX SUPERMARKETS 12% OTHER 30% ELECTRONICS 9% ENTERTAINMENT 12% CLOTHING 38% TENANT MIX INTERNATIONAL BRANDS 32% LOCAL BRANDS 43% NATIONAL BRANDS 25% March 2016
Slide 63: EPRA NNNAV per share
63 EPRA NNNAV per share 31-Dec-14 31-Dec-15 NNNAV Calculation €'000 € p.s. €'000 € p.s. Total number of shares 756,356,289 813,045,631 1) Group's net equity 950,229 1.26 1,022,054 1.26 Exclude Fair value of financial instruments 43,912 34,990 Deferred taxes 18,093 19,917 Goodwill as a result of defe
Slide 64: Market Value Evolution
64 Market Value Evolution Breakdown of the Portofolio’s appraisals As at 31 December 2015 IGD group’s real estate portfolio has been appraised by three independent experts: CBRE, REAG and CUSHMAN&WAKEFIELD 20% 37% 43% CBRE REAG CUSHMAN&WAKEFIELD March 2016
Slide 65: Italian and Romanian portfolio
65 Italian and Romanian portfolio 57 REAL ESTATE UNITS IN 11 ITALIAN REGION: 21 Malls and retail parks 25 Hypermarkets and supermarkets 14 SHOPPING CENTERS+ 1 OFFICE BUILDING IN 13 1 city center DIFFERENT MEDIUM SIZED CITIES 2 plots of land for development 1 property held for sale 7 other March 2016
Slide 66: Italian and Romanian Portfolio
66 Italian and Romanian Portfolio MARKET VALUE BREAKDOWN OF IGD’S PORTFOLIO BY IGD’S ITALIAN PORTFOLIO BREAKDOWN BY TYPE OF ASSET GEOGRAPHICAL DISTRIBUTION (mkt value) 1,1% 8,2% 0,3% 4,1% 1,3% 19.2% 30,4% 39.1% 27.7% 54,6% 14.1% NORTH EAST NORTH WEST HYPER/SUPERMARKETS MALLS LANDS OTHER CENTER SOUTH
Slide 67: Net debt
67 Net debt NET DEBT EVOLUTION (€ 000) 25,748 126,169 45,639 275 14,840 2,503 984,815 942,095 Net debt 31/12/2014 Profit for the period attributable Depreciations/Devaluations/ Change in NWC (net of PMI Change in other non-current Change in fixed/non-fixed Change in shareholders' equity Net debt 31/
Slide 68: Appendix: Business Plan 2015-2018
APPENDIX 2015 – 2018 Business Plan
Slide 69: New Business Plan 2015-2018: it is time to grow!!!
69 New Business Plan 2015-2018: it is time to grow!!! What has changed? In the macroeconomic scenario In IGD • Italian economy started to grow again (GDP +0.6% in • Financial structure strengthened 1H2015) (LTV went from >55% to ~ 48%) • Consumption is growing (expected at +0.7% in 2015) • Continuou
Slide 70: Investment Plan
70 Investment Plan We will continue to work on and complete the commited pipeline presented in the business plan 2009-2013 2009 - 2014 2015 - 2018 • Total investments 2009-2014: €790 • Total investments: approx. €260 mn mn* • approx. €185 mn of which in • 13 new assets in the portfolio** development
Slide 71: Disposals
71 Disposals We will complete the disposals included in the previous BP (2/3 of the €150mn in disposals planned already completed) at levels equal to or higher than book value (as already demonstrated in the previous disposals) Total disposals planned for the Porta a Mare project: ca € 40mn With
Slide 72: Business Plan 2015-2018: Investments
72 Business Plan 2015-2018: Investments 2015 2016 2017 2018 Total Tot. 23.8 €mn 135.2 €mn 20.2 €mn 4.8 €mn ~ 185 €mn Development Tot. ~ 75 €mn Total Capex and others 31.2 €mn 15.1 €mn 11.9 €mn 15.7 €mn TOT. INVESTMENTS ~260 €MN Officine Storiche – Livorno New opening Clodì – Chioggia New opening 52.
Slide 73: Investment Pipeline
73 Investment Pipeline Openings expectations Total Investment month year Before 2015 2015 2016 2017 2018 in BP ('15-'18) CHIOGGIA may 2015 30.0 6.4 PORTO GRANDE - Medium surface areas apr 2017 4.3 4.9 ESP EXTENSION apr 2017 18.6 35.5 CREMA EXTENSION sep 2018 6.3 OFFICINE STORICHE (Porta Medicea work
Slide 74: Financial area (2/2)
74 Financial area (2/2) Targets • Maintain rigorous financial discipline and a conservative capital structure LTV >45% - < 50% (BP time span) GEARING (D/E) <1 (BP time span) • Improve financial management and reduce the average cost of debt ICR >3 (end of 2018) Average cost of debt about 3% (end of
Slide 75: Key figures - Business Plan 2015-2018
75 Key figures - Business Plan 2015-2018 RENTAL REVENUE Total growth approx. > +20% cagr > 5% cagr LFL approx. + 2% EBITDA MARGIN Core Business >70% (end of 2018) >80% (end of 2018) EBITDA MARGIN Freehold Growth concentrated at the end of the business plan when the impact of the Funds From Operation
Slide 76: Dividend policy
76 Dividend policy Committed to maintaining an attractive dividend policy linked to FFO ( 2/3 of the gross FFO) and Dividend Reinvestment Option (DRO) As announced at the time of the share capital increase, the DRO will not be offered in 2015 But it will continue to be an option that we will consid
Slide 77: Final Remarks 1/2
77 Final Remarks 1/2 Over the next years IGD will continue its investment pipeline, increase its cash flows (FFO) and strengthen the visibility of the dividends that will be paid, by leveraging solely on ORGANIC growth and while respecting all the predetermined financial constraints Target Leader of
Slide 78: Final Remarks 2/2
78 Final Remarks 2/2 HOWEVER if we also consider: the recent SIIQ reform that the market is still very fragmented The context appears favourable to completing, over the next few years, contribution transactions at market conditions and/or entering into partnerships with industrial/financial play
Slide 79: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Federica Pivetti T. +39. 051 509242 federica.pivetti@gruppoigd.it