Polski Holding Nieruchomosci Sa · GPW:PHN
Polski Holding Nieruchomosci Sa — FY2015 Earnings Presentation
40 slides from Polski Holding Nieruchomosci Sa's earnings presentation, Mar 16, 2016
Slide 1: Consolidated financial results for 2015
Consolidated financial results for 2015 Presentation Warsaw, March 16, 2016
Slide 2: Participants of today's meeting
PARTICIPANTS OF TODAY’S MEETING Deputy Director of the Accounting and Finance President of the Management Board Vice-President of the Management Board Office Maciej Jankiewicz Zbigniew Kulewicz Zbigniew Zawadzki 2
Slide 3: Agenda
AGENDA 1) PHN GROUP IN 2015 1. KEY ACHIEVEMENTS IN 2015 2. KEY EVENTS IN 2015 AND AFTER THE BALANCE SHEET DATE 2) PHN GROUP’S REAL ESTATE PORTFOLIO – CAPITAL RECYCLING 1. PROPERTIES REMAINING IN THE PORTFOLIO, DIVESTMENTS AND ACQUISITIONS 2. PHN GROUP’S CONSTRUCTION PROJECTS 3) PHN GROUP’S FINANCIAL
Slide 4: PHN Group in 2015
Presentation of consolidated financial results for 2015: 1) PHN GROUP IN 2015
Slide 5: Key achievements in 2015
KEY ACHIEVEMENTS IN 2015 BUILDING VALUE IMPROVING ECONOMIC EFFICIENCY NET RESULT FOR THE GROUP [PLN million]: 50.8 31.12.2014: 107.8 - 47 % EBITDA [PLN million]: 53.4 31.12. 2014: 43.1 24% GROUP ASSETS [PLN million]: 2,514.0 31.12.2014: 2,283.4 10% ADJUSTED EBITDA [PLN million]: 32.3 31.12. 2014: 25
Slide 6: Key events in 2015 and after the balance sheet date
KEY EVENTS IN 2015 AND AFTER THE BALANCE SHEET DATE 1. 13.01.2015 2. 23.01.2015 Signing a letter of intent on the purchase of ABC Signing a JV agreement on Parzniew Logistic Hub On January 13, 2015, Polski Holding Nieruchomości S.A. signed a letter of intent on the purchase of an A-class office The
Slide 7: Key events in 2015 and after the balance sheet date
KEY EVENTS IN 2015 AND AFTER THE BALANCE SHEET DATE 11. 07.08.2015 12. 14.08.2015 Terminating the agreement with Hochtief for the construction of City Tower Signing a letter of intent on the purchase of Alchemia II On August 14, the Management Board of Polski Holding Nieruchomości S.A. signed a lett
Slide 8: PHN Group's real estate portfolio – capital recycling
Presentation of consolidated financial results for 2015: 2) PHN GROUP’S REAL ESTATE PORTFOLIO – CAPITAL RECYCLING
Slide 9: PHN Group's real estate portfolio – capital recycling
1) PHN GROUP’S REAL ESTATE PORTFOLIO – CAPITAL RECYCLING REMAINING IN THE PORTFOLIO FOR DIVESTMENT • TOTAL VALUE: PLN 844.0 million • TOTAL VALUE: PLN 580.3 million • NUMBER OF PROPERTIES: 18 • NUMBER OF PROPERTIES: 76 • NOI 2015: PLN 33.7 million (YIELD: 5.0%) • NOI 2015: PLN 14.17 million (YIELD:
Slide 10: Divestments and acquisitions
DIVESTMENTS AND ACQUISITIONS DIVESTMENTS ACQUISITIONS Continuing the divestment program Completed acquisitions In 2015, PHN signed final agreements for the sale of 11 properties: Aldony 19, Francuska In July 2015, PHN S.A. purchased the Andersia Business Center office building located 2, Gruzińska 3
Slide 11: Construction projects – key information
CONSTRUCTION PROJECTS – KEY INFORMATION Item PROJECT FUNCTION AREA [sq.m.] START COMPLETION CAPEX [PLN million] PROJECTS – COMPLETED AND IN PROGRESS 1. FOKSAL CITY A-class office building GLA: 3,340 Q3 2012 Q2 2014 30 2. DOMANIEWSKA OFFICE HUB A-class office building GLA: 26,200 Q1 2014 Q3 2015 177
Slide 12: Construction projects – schedule
CONSTRUCTION PROJECTS – SCHEDULE Item PROJECT 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 * First phase of the project PROJECTS – COMPLETED AND IN PROGRESS 1. FOKSAL CITY 2. DOMANIEWSKA OFFICE HUB 3. RETKINIA RETAIL HUB (BIEDRONKA) 4. WROCŁAW INDUSTRIAL PARK PROJECTS UNDER PREPA
Slide 13: Construction projects – completed
CONSTRUCTION PROJECTS – COMPLETED 1 FOKSAL CITY 22 DOMANIEWSKA OFFICE HUB COMPLETED PROJECT COMPLETED PROJECT ul. KRYWULTA 2 ul. RODZINY HISZPAŃSKICH 8 KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Excellent location In 2014, occupancy permit was Attractive location In June 2015, PHN
Slide 14: Construction projects – completed and in progress
CONSTRUCTION PROJECTS – COMPLETED AND IN PROGRESS 3 RETKINIA RETAIL HUB 24 SEGRO INDUSTRIAL PARK COMPLETED PROJECT PROJECT IN PROGRESS RETKINIA, ŁÓDŹ ul. BIERUTOWSKA, WROCŁAW KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location In H1 2015, construction works Attractive l
Slide 15: Construction projects – under preparation
CONSTRUCTION PROJECTS – UNDER PREPARATION 5 PARZNIEW LOGISTICS CENTER 26 YACHT PARK PROJECT UNDER PREPARATION PROJECT UNDER PREPARATION PARZNIEW near WARSAW ul. HRYNIEWICKIEGO 10, GDYNIA KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Location close to A2 motorway The Group is implemen
Slide 16: Construction projects – under preparation
CONSTRUCTION PROJECTS – UNDER PREPARATION 7 PRYMASA TYSIĄCLECIA 83 28 INTRACO CITY PROJECT UNDER PREPARATION PROJECT UNDER PREPARATION al. PRYMASA TYSIĄCLECIA 83 ul. STAWKI 2 KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location In July 2015, PHN signed an Excellent locat
Slide 17: Construction projects – under preparation
CONSTRUCTION PROJECTS – UNDER PREPARATION 9 CITY TOWER 2 10 WILANOWSKA OFFICE HUB PROJECT IN PREPARATION PROJECT IN PREPARATION ul. ŚWIĘTOKRZYSKA 36 al. WILANOWSKA 372 KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location The project assumes the Attractive location On the
Slide 18: Construction projects – under preparation and planned
CONSTRUCTION PROJECTS – UNDER PREPARATION AND PLANNED 11 LEWANDÓW RETAIL HUB 2 12 RETKINIA RETAIL HUB PROJECT UNDER PREPARATION PLANNED PROJECT LEWANDÓW RETKINIA, ŁÓDŹ KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location On some parts of land with the total Attractive lo
Slide 19: Construction projects – under preparation and planned
CONSTRUCTION PROJECTS – UNDER PREPARATION AND PLANNED 13 LEWANDÓW RESIDENTIAL PROJECT 2 14 WAREHOUSE PROJECT PROJECT UNDER PREPARATION PLANNED PROJECT LEWANDÓW RETKINIA, ŁÓDŹ KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location On some parts of land with the total Attrac
Slide 20: Construction projects – planned
CONSTRUCTION PROJECTS – PLANNED 15 BARTYCKA RETAIL HUB 2 16 WILANÓW RESIDENTIAL ESTATE PLANNED PROJECT PLANNED PROJECT ul. BARTYCKA 26 WILANÓW RESIDENTIAL ESTATE KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Excellent location On the area of 7.6 ha, the Group Attractive location An O
Slide 21: Construction projects – planned
CONSTRUCTION PROJECTS – PLANNED 17 JANA PAWŁA II 34 2 18 INSTALATORÓW 7C PLANNED PROJECT PLANNED PROJECT al. JANA PAWŁA II 34 ul. INSTALATORÓW 7C KEY BENEFITS: STATUS OF WORKS: KEY BENEFITS: STATUS OF WORKS: Attractive location PHN organized a competition for the Attractive location Initial conditio
Slide 22: PHN Group's financial results
Presentation of consolidated financial results for 2015: 3) PHN GROUP’S FINANCIAL RESULTS
Slide 23: Thank you
Thank you Polski Holding Nieruchomości S.A. 00-124 Warsaw, al. Jana Pawła II 12 phone +48 22 850 91 00, fax +48 22 850 91 01 www.phnsa.pl NIP 525-250-49-78, KRS 0000383595, REGON 142900541
Slide 24: Consolidated financial statements for 2015
CONSOLIDATED FINANCIAL STATEMENTS FOR 2015 [PLN million] STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION [PLN million] [PLN million] Other (8.3%) ) 207,3 218,3 Other (8.7%) 3) Cash (5.0%) 126,5 Debt (12.4%) 313,0 32,9 Non-controlling interests (1.3%) 1) rental result PLN 60.1 milli
Slide 25: Selected profit and loss statement items Q4 2015 Q3 2015
SELECTED PROFIT AND LOSS STATEMENT ITEMS [PLN million] 47,9 16,8 19,0 4,9 8,9 9,5 9,8 Q4 2015 1,6 0,6 0,6 -4,4 -10,1 -17,1 -74,9 -64,9 Q3 2015 Higher rental result mainly due to commercialization of completed construction projects: obtaining profit from sale of properties (Q4: PLN 6.6 million, Q3: P
Slide 26: Cash flows
CASH FLOWS [PLN million] Cash flows from operating activities: +9.0 Cash flows from investment Cash flows from financial activities: +10.2 activities: +2.9 1) increase/decrease in liabilities, receivables, and inventory on construction operations 2) net expenses, sale of investment properties and ta
Slide 27: Properties
PROPERTIES [PLN million] INVESTMENT PROPERTIES, PROPERTIES HELD FOR SALE (IFRS 5) AND PROPERTIES CLASSIFIED AS TANGIBLE FIXED ASSETS Properties: -PLN 95.9 million (-4%) PLN 6.1 million in expenses related to implementation of a Investment properties: -PLN 106.1 million (-5%) commercial construction
Slide 28: Equity and debt
EQUITY AND DEBT [PLN million] Equity Total equity: -PLN 17.4 million (-0.9%) Equity allocated to parent entity shareholders: -PLN 16.8 million (-0.9%) Non-controlling interests: -PLN 0.6 million (1.7%) Decrease in equity allocated to parent entity shareholders as a result of net loss (PLN -16.8 mill
Slide 29: Structure of assets and liabilities
STRUCTURE OF ASSETS AND LIABILITIES [PLN million] ASSETS LIABILITIES Other (145.7m): Other (197.9m): 2,497.7 2,514.0 2,497.7 2,514.0 provisions: for benefits from provisions: for benefits from 4,5% Other (207.3m): 5,8% leased properties and their use 8,2% leased properties and their use 7,9% Other (
Slide 30: Supplementary information
Presentation of consolidated financial results for 2015: 5) SUPPLEMENTARY INFORMATION
Slide 31: Share price of Polski Holding Nieruchomości S.A.
SHARE PRICE OF POLSKI HOLDING NIERUCHOMOŚCI S.A. KEY DATA ON THE SHARE PRICE OF PHN S.A. 2015 2014 2013 Highest share price [PLN]1) 26.23 31.55 29.50 Lowest share price [PLN]1) 15.56 19.51 23.40 Price at year end [PLN]1) 18.92 26.30 26.83 Average price in the period [PLN]1) 22.45 26.08 26.22 Number
Slide 32: Share price of Polski Holding Nieruchomości S.A.
SHARE PRICE OF POLSKI HOLDING NIERUCHOMOŚCI S.A. PHN S.A. SHARE PRICES IN 2015 IN COMPARISON WITH STOCK EXCHANGE INDICES1) 2) PHN WIG WIG DEWEL 120% 110% 100% 90% 80% 70% 60% 50% 2014-12-30 2015-01-16 2015-01-30 2015-02-13 2015-02-27 2015-03-13 2015-03-27 2015-04-14 2015-04-28 2015-05-13 2015-05-27
Slide 33: Warsaw office market – outlook
WARSAW OFFICE MARKET – OUTLOOK* WARSAW OFFICE MARKET1) ABSORPTION OF NEW SPACE AND THE VACANCY RATIO1) [%] [thousands of Supply (sq.m.) Absorption (sq.m.) Vacancies (%) sq.m.] 20% ABSORPTION Q4 2015 [sq.m.]: 69,300 2015: 293,400 480 18% 400 15% 320 13% 240 10% ABSORPTION Q4 2015 [sq.m.]: 43,000 2015
Slide 34: Polish office market
POLISH OFFICE MARKET OFFICE SPACE RESOURCES SPACE UNDER CONSTRUCTION DEMAND RENTAL RATES CITY [sq.m.] [sq.m.] [sq.m.] [EUR/sq.m./month] WARSAW 4 660 000 755 100 829 800 12.5–23 KRAKÓW 672 000 258 700 171 200 13.5–15.5 WROCŁAW 596 200 186 400 112 100 12.5–16.5 TRI-CITY 463 800 112 300 94 300 13–15 PO
Slide 35: Real estate portfolio as at December 31, 2015
REAL ESTATE PORTFOLIO AS AT DECEMBER 31, 2015 GEOGRAPHIC STRUCTURE OF THE REAL ESTATE PORTFOLIO GEOGRAPHIC STRUCTURE OF SEGMENTS: REMAINING AND PROJECTS [% of fair value] [% of fair value] 14% 16% Warsaw and its Warsaw and its surroundings surroundings 6% 4% Tri-City Tri-City 8% 9% Wrocław Wrocław 7
Slide 36: Continued operations – result
CONTINUED OPERATIONS – RESULT [PLN million] Q4 2015 Q3 2015 Sales revenue 44.5 42.2 Operating expenses (22.6) (24.9) Gross sales result 21.9 17.3 Provision for warranty repairs and damages (2.9) 0.4 Adjusted gross sales result 19.0 17.7 Selling and administrative expenses (13.1) (8.5) One-off costs
Slide 37: Rental – segment result
RENTAL – SEGMENT RESULT [PLN million] Q4 2015 Q3 2015 Sales revenue 34.5 32.5 Operating expenses (17.7) (17.2) Gross sales result 16.8 15.3 Selling and administrative expenses (9.0) (6.7) One-off costs (Group restructuring) 3.0 0.1 Adjusted selling and administrative expenses (6.0) (6.6) Net sales r
Slide 38: Development – segment result
DEVELOPMENT – SEGMENT RESULT [PLN million] Q4 2015 Q3 2015 Sales revenue 8.0 7.6 Operating expenses (3.5) (6.2) Gross sales result 4.5 1.4 Provision for warranty repairs and damages (2.9) 0.4 Adjusted gross sales result 1.6 1.8 Selling and administrative expenses (1.9) (0.9) Net sales result 2.6 0.5
Slide 39: Other operations and unallocated items – result
OTHER OPERATIONS AND UNALLOCATED ITEMS – RESULT OTHER OPERATIONS – RESULT [PLN million] Q4 2015 Q3 2015 Sales revenue 2.0 2.1 Operating expenses (1.4) (1.5) Gross sales result 0.6 0.6 Net sales result 0.6 0.6 Other expenses (0.4) - Write-offs for properties under tangible fixed assets 0.4 - Operatin
Slide 40: Polski Holding Nieruchomości S.A. contact details
Polski Holding Nieruchomości S.A. 00-124 Warsaw, al. Jana Pawła II 12 phone +48 22 850 91 00, fax +48 22 850 91 01 www.phnsa.pl NIP 525-250-49-78, KRS 0000383595, REGON 142900541
Polski Holding Nieruchomości — FY2015 Earnings Presentation on 6ix