Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (June 2023)
69 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, June 2023
Slide 1: Road show presentation June 2023
Road show presentation June 2023
Slide 2: Disclaimer
Disclaimer IGD These statements include financial projections and This presentation does not constitute an offer or an estimates and their underlying assumptions, statements invitation t o subscribe for or purchase any securities. regarding plans, objectives and expectations with respect to future o
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 2 Portfolio Pag. 12 3 Operating performance Pag. 24 4 Financial Results Pag. 33 5 ESG Strategy at-a-glance Pag. 43 6 Appendix Pag. 56 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a glance
IGD at a glance IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across the country. We are also present in the retail sector in Romania 19 hyper/ 14 shopping 27 shopping supermarkets c. €2.1bn malls in Development malls in Italy & other
Slide 6: IGD Business Model
IGD Business Model A distinctive competitive positioning Well Diversified Across Strong Track-Record of 1 Italy 2 Strategic Positioning 3 Strong Food Anchor 4 Direct Management 39.2k 35.2k 1 30.9k Services 38.0k 33.1k 3 5 30.3k 2 35.3k 23 1 31.6k 30.4k 26.8k 7 24.5k 7 Food Court 24.7k 32.7k 2 5 19.8
Slide 7: A typical example: Centro Esp in Ravenna
A typical example: Centro Esp in Ravenna Industrial area Dominant (1) and touristic area Our assets are the dominant Industrial and retail destination in their Romagna’s «Riviera» touristic port (110km touristic destination) catchment area Densely populated residential neighborhoods «Urban» shopping
Slide 8: An overview of our Group structure
An overview of our Group structure (1) 72.6% Revenues (2) Parent Company 100% Financial Debt (3) 100% 16.2% Revenues Italian Facility Management No Financial Debt 100% 6.2% Revenues Romania No Financial Debt 100% Development project in 5% Revenues Livorno No Financial Debt 1. For a complete group ch
Slide 9: Our shareholding structure
Our shareholding structure Share Capital Average Market Capitalization Number of shares: 110,341,903 (1/1-31/5/23): € 650 Mn approx. €317 Mn Average daily trading Listed on the Italian Stock Net Equity EUR 1.1 Bn (1/1-31/5/23): Exchange in the STAR approx. 344,271 shares segment Majority of institut
Slide 10: IGD Governance – Directors and Committees
IGD Governance – Directors and Committees IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008. CEO EXECUTIVE Claudio Albertini CHAIRMAN Timothy Guy Rossella Sao
Slide 11: Our Top Management
Our Top Management Rossella Saoncella (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Appointed in May 2009 • Appointed as IGD’s Chairman on 20 April 2021 • IGD Board member since 2006 • Member of EPRA (1) Advisory Board since 2017 • Member of ECSP’s (2) Nominations Committee sinc
Slide 12: Portfolio
2 Portfolio
Slide 13: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets IGD Main Italian Asset Centro Sarca Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro Centro Leonardo Conè Conegliano Sesto S.Giovanni Ravenna Faenza (RA) Bologna Bologna Forlì Imola (BO) (TV) (MI) North Centro Piave Clodì Centro Nova Mondovicino Nuova Da
Slide 14: Portfolio market value
Portfolio market value Gross Initial EPRA Net Initial EPRA Net Initial Financial FY 2021 FY 2022 Δ% Yield Yield Yield topped up occupancy Malls Italy 1,481.6 1,466.5 (-1.02%) 6.97% 94.70% 5.6% 5.9% Hypermarkets Italy 423.8 401.2 (-5.35%) 6.41% 100.0% Romania 135.8 128.3 (-5.49%) 7.99% 6.1% 6.5% 98.0
Slide 15: MV Evolution in 2022
MV Evolution in 2022 ITALY ROMANIA € 2,140.5mn € 2,080.9mn Change in Fair Value is mainly due to the increase in rates 15
Slide 16: Epra indicators
Epra indicators € per share FY2022 FY 2021 Δ% NRV 10.28 10.85 -5.3% NTA 10.20 10.78 -5.3% NDV 10.06 10.43 -3.6% Some figures may not add due to rounding. 16
Slide 17: Restyling La Favorita Mantua - completed
Restyling La Favorita Mantua - completed • Internal layout of the mall completely redesigned • New energy-efficient LED lighting system • Improved connection among the shopping center and the nearby cinema and sport arena • Photovoltaic solar panels installed in the parking area • New green and pede
Slide 18: Porta a Mare mixed-use project – Officine Storiche residential
Porta a Mare mixed-use project – Officine Storiche residential • 42 flats • 27 units sold; 5 binding proposals • c.7€mn cash-in in 2022; c.7€mn expected cash-in in 2023 18
Slide 19: Porta a Mare mixed-use project Officine Storiche retail
Porta a Mare mixed-use project Officine Storiche retail >16,000 m2 GLA retail and entertainment >90% pre-letting Expected opening September 2023 19
Slide 20: Restyling in progress
Restyling in progress Leonardo (Imola - Bo) Portogrande (Ap) Total restyling of Total restyling the mall, facade of the mall and parking area Work started: 2022 Work started: 2023 End of work: end of End of work: 2Q 2024 2023 20
Slide 21: Investment pipeline
Investment pipeline Key points: • Business Plan pipeline almost completed by the end of 2023 • Investments reduction from 2024, no development projects • Maintaining maximum flexibility over the period c.82€mn 15€mn ~13 32€mn 17€mn ~ 24 35€mn 15€mn ~12 Porta a Mare project development Assets renewal
Slide 22: Energy efficiency: targets
Energy efficiency: targets Main targets -21.5% GHG emissions (at 2025 location based «baseline 2018») At least 1 asset carbon positive Centro Tiburtino (Roma) - render of the main entrance (at 2030) 100% Use of energy from renewable sources (already in place) Centro Sarca (Milano) – render of new in
Slide 23: Energy efficiency
Energy efficiency 7 Photovoltaic systems to be added to the 8 already existing 23
Slide 24: Operating performance
3 Operating performance
Slide 25: Excellent operating performances in shopping centers in Italy
Excellent operating performances in shopping centers in Italy*… 18.6% +18.6% MALLS +11.2% +13.5% +8.5% +11.0% +8.2% +11.0% +9.4% +8.2% +9.4% +6.1%+6.1% 5.9% 7.0% 5.9% 7.0% GENNAIO GENNAIO FEBBRAIO FEBBRAIO MARZOMARZO APRILEAPRILE NNAIO FEBBRAIO JANUARY MARZOMARZO FEBRUARY FEBBRAIO MARCH APRIL APRILE
Slide 26: …with (almost) all the merchandise categories in increase
…with (almost) all the merchandise categories in increase Only one negative category but with extremely positive +24.7% results in 2021 +17.7% +17.6% (+7.5%*) and 2022 +16.4% (+9.9%*) Tenant sales +12.7% Italy 4M23vs22 +9.2% -4.7% Clothing Housegold Culture, leisure, Personal and Electronics Restaur
Slide 27: The leasing activities confirmed to be effective in Italy (1Q23)
The leasing activities confirmed to be effective in Italy (1Q23)… LEASING ACTIVITIES • On a portfolio of 54 contracts (equal to 2.4% of Group’s total rent) • Total downside -4.5%*, on contracts that in 2022 increased by approx. 9% due to indexation • Figure updated with negotiations in progress -2.2
Slide 28: …and in Romania (1Q23)
…and in Romania (1Q23) New rents level 112 renewals LEASING ACTIVITIES flat 68 turnover +291 bps vs 1Q22 OCCUPANCY 97% -101 bps vs FY22 Vacancy mainly due to 3 exits in Buzau, Turda and Alexandria already in advanced negotiations COLLECTION RATE* c. 90% Some pictures from the latest openings *Collec
Slide 29: Puntadiferro in Forlì 1/2
A constantly evolving portfolio: the example of Puntadiferro in Forlì 1/2 An area of the city Strategies and activities carried out by IGD in the that is expanding: last months: industrial area in further ➢ A more differentiated offer in the food court with development + an adjacent Retail new healt
Slide 30: Puntadiferro in Forlì 2/2
A constantly evolving portfolio: the example of Puntadiferro in Forlì 2/2 Occupancy*: 97% 85% FY2021 1Q2023 Operating Performances 1Q23vs22: +10.4% +11.7% TENANT SALES FOOTFALLS *On GLA 30
Slide 31: Tiburtino in Rome 1/2
A constantly evolving portfolio: the example of Tiburtino in Rome 1/2 Strategies and activities carried out by IGD in the last months: ➢ More non-food category killers with a focus on convenience ➢More restaurants ➢ New attractive international and national brands and expansion of the «Household goo
Slide 32: Tiburtino in Rome 2/2
A constantly evolving portfolio: the example of Tiburtino in Rome 2/2 Occupancy*: 97% 89.1% FY2021 1Q2023 Operating Performances 1Q23vs22: +19.3% +15.3% TENANT SALES FOOTFALLS *On GLA 32
Slide 33: Financial Results
4 Financial Results
Slide 34: Highlights
Highlights 1Q2023 Δ vs Like for FY2022 FY2021R* (€mn) 2022 like (€mn) (€mn) Rental Income 34.7 +2.3% 137.3 134.2 Net Rental Income 29.1 +1.3% +4.9% 114.0 108.3 Core Business Ebitda 26.8 +2.5% 103.4 97.1 Funds From Operations (FFO) 15.8 -5.6% 67.2 56.5 Real Estate Portfolio 2,080.9 2,140.5** Market V
Slide 35: Net rental Income
Net rental Income Like for like Change vs 2022 net rental +0.4€mn income +1.3% +4.9% €mn Like for like: +4.7% (+1.5 €mn) • Malls (+1.1€mn; +4.7%): thanks to leasing activities and indexation (+1.9 €mn +7.7%), partially offset bu hugher temporary reductions (-0.4 €mn) and slight increase in vacancy.
Slide 36: Core business Ebitda (€mn)
Core business Ebitda (€mn) Change vs 2022 +0.7€mn +2.5% Core business 2022 2023 EBITDA 73.2% 73.2% MARGIN EBITDA 2022 2023 MARGIN 75.6% 75.5% freehold Some figures may not add up due to rounding. 36
Slide 37: Financial Management
Financial Management IFRS16 and non recurring charges Financial Management Adj*: +1.5€mn vs 2022 (+22.0%) Impact of the two loans signed in 2H2022 *Financial management adJ: net of IFRS16 (0.2€mn) and IFRS9 and non recurring charges Some figures may not add up due to rounding 37
Slide 38: Funds From Operations (FFO)
Funds From Operations (FFO) Of which: +0.7 €mn change in core business Ebitda; Change vs 2022 -0.1 €mn payable leases; -0.9€mn -0.1€mn other non recurring items. -5.6% FY2023 FFO Guidance as of today confirmed: approx. 53€mn *Financial Management adj: net of IFRS16 and IFRS9, non recurring charges a
Slide 39: Net debt and LTV
Net debt and LTV FY2022 1Q2023 NET DEBT €976.94mn NET DEBT €966.34 mn Net debt reduction thanks to cash flow Long term financial generated in instruments Long term financial instruments 1Q2023 991.01 984.31 Short term financial instruments 13.00 Cash –27.07 Cash –17.97 45.7% Loan to Value 45.3% 3.6X
Slide 40: Liability management activities in progress
Liability management activities in progress • May 2023: a green secured loan for an amount equal to 250€mn (5 years maturity) obtained • Use of proceeds: refinance the maturities up to 1H24 • Next significant maturity: 400€mn Bond expiring in 15 months (November 2024) Bond Exp. Nov. 2024 Unsecured s
Slide 41: Financial strategy
Financial strategy FINANCIAL Obtain the best economic conditions whatever the market context is, STRATEGY and minimize exposure to financial risks TARGET (credit risk and fluctuation of interest rates) Maintaining a rigorous financial discipline consistent with IG profile Early refinancing of maturi
Slide 42: A strategic asset rotation to reduce leverage
A strategic asset rotation to reduce leverage Potential target Strategic rationale Romania ➢ Reduction of financial Potential disposals leverage over BP timespan Portfolio of selected 180/200 € mn Super/hypermarkets ➢ Non core asset disposal OR MORE Three Porta a Mare plots of land to be developed 4
Slide 43: ESG Strategy At-a-glance
5 ESG Strategy At-a-glance
Slide 44: ESG: awards, ratings and certifications obtained
ESG: awards, ratings and certifications obtained Awards 86/100, Score A 5° year in a row 8° year in a row Rating ESG 12 ratings independent and unsolicited 1 , of Stock Indexes ESG focused Ratings which - 5 already present in 2020 10 indexes - 5 achieved in 2021 -2 achieved in 2022 BREEAM Certificat
Slide 45: 2022-2024 Sustainability Plan
2022-2024 Sustainability Plan 41 targets at 2024: 22 ambitions toward 2030 • Material for IGD STRATEGY • Consistent with UN SDG’s IGD RELEVANT SDG’S 45
Slide 46: First results of the path defined in the 2022-2024 Business Plan
First results of the path defined in the 2022-2024 Business Plan OVERALL ACHIEVEMENT LEVEL OF SUSTAINABILITY TARGETS IN 2022 42,7% €2,4 mn invested in Bio Safety Certification Induction actitivies 35 new brands Defined the improving the energy obtained for all freehold with the BoD relating introduc
Slide 47: Sustainability: GHG emissions considerably reduced over the last 5 years
Sustainability: GHG emissions considerably reduced over the last 5 years - 26.2% -18% District Heating: - Monitoring and efficiency actions -19% Electricity consumption: - Led lighting systems - Photovoltaic system -27% Fuel consumption: - Plant improvements (ex. new boilers) - Management interventi
Slide 48: Sustainability in Romania
Sustainability in Romania First PHOTOVOLTAIC ENERGY SYSTEM installed in our most important shopping center. 4 more plants expected to be installed in 2023 48
Slide 49: First circular economy project started in March 2023
First circular economy project started in March 2023 Opened at Centro Nova (Bologna) on 28 March 2023 49
Slide 50: Green
Green 1 2 3 4 2024 TARGETS 2030 OBJECTIVES CLIMATE CHANGE • 100% green energy purchased • Zero carbon emissions (scope 1 and 2) at 100% of the Italian shopping centers • double the use of energy produced from renewable sources • Reduce indirect emissions (scope 3) • -15% reduction in energy consumpt
Slide 51: Green Transition
Green Transition 1 2 3 4 Main targets 100% of the shopping centers with charging stations Different types of charging stations (traditional, fast, Tesla) across the whole network 50% of the shopping centers with fast charging stations (agreement with top international player) 100% of the assets ISO1
Slide 52: Responsible
Responsible 1 2 3 4 2024 TARGETS 2030 OBJECTIVES WORKPLACE QUALITY • Training: 100% of the employees in Italy and • Gender equality in roles of responsibility Romania each year • Improve employees’ wellbeing and expertise • 1 employee satisfaction survey and 2 «pulse surveys» • «Sustainability Innov
Slide 53: Ethical
Ethical 1 2 3 4 2024 TARGETS 2030 OBJECTIVES • Corporate cybersecurity strategy • Best-in-class for corporate governance and legality • Systematic assessment of the providers along the supply chain with a view to sustainability • CSR policies included in company supply chains • Maintain the highest
Slide 54: Attractive
Attractive 1 2 3 4 2024 TARGETS 2030 GOALS SUSTAINABLE ENHANCEMENT OF THE PORTFOLIO • 4 key restyling/remodeling projects • Up to 10 sustainable restylings completed to renew and enhance the portfolio • 100% with projects aiming to increase visitors’ well OFFER being • Commercial and strategic adjus
Slide 55: Together
Together 1 2 3 4 2024 TARGETS 2030 OBJECTIVES STAKEHOLDER ENGAGEMENT Relationship with investors/financial community • Partnering with tenants in sustainability • 1st Sustainability Framework defined and issue • Partnerships with NGOs of 1st Sustainability Linked Bond • Investor/CSR Day and theme-ba
Slide 56: Appendix
6 Appendix
Slide 57: Consolidated Income Statement 1Q23
Consolidated Income Statement 1Q23 GROUP CONSOLIDATED (a) (c) Δ 1Q_2022 1Q_2023 (c)/(a) Revenues from freehold rental activities 31.6 32.5 2.6% Revenues from leasehold rental activities 2.3 2.2 -1.9% Total income from rental activities 33.9 34.7 2.3% Rents and payable leases 0.0 0.0 1.4% Direct cost
Slide 58: Re-classified balance sheet 1Q23
Re-classified balance sheet 1Q23 Sources - Uses of funds (€/000) 31/03/2023 31/12/2022 Δ Δ% Fixed assets 2,040,137 2,041,330 -1,193 -0.1% Assets under construction 40,284 36,662 3,622 9.9% Other non-current assets 42,965 43,190 -226 -0.5% Other non-current liabilities -28,009 -27,228 -781 2.9% NWC 1
Slide 59: Funds From Operations (FFO) 1Q23
Funds From Operations (FFO) 1Q23 Δ% Funds from Operations CONS_2022 CONS_2023 Δ 2022 vs 2022 Core business EBITDA 26.1 26.8 0.658 2.5% IFRS16 Adjustments (Payable leases) -2.0 -2.1 -0.119 6.0% Financial Management Adj -7.1 -8.6 -1.557 22.0% Extraordinary management Adj * 0.0 0.0 0.000 n.a. Current t
Slide 60: Other Metrics FY2022
Other Metrics FY2022 EPRA Performance Measure 12/31/2022 12/31/2021 EPRA NRV (€'000) 1,133,860 1,197,354 EPRA NRV per share € 10.28 € 10.85 EPRA NTA 1,125,979 1,189,467 EPRA NTA per share € 10.20 € 10.78 EPRA NDV 1,110,002 1,151,244 EPRA NDV per share € 10.06 € 10.43 EPRA Net Initial Yield (NIY) 6.0
Slide 61: EPRA Net Asset Value FY2022
EPRA Net Asset Value FY2022 12/31/2022 12/31/2021 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1,121,800 1,121,800 1,121,800 1,171,758 1,171,758 1,171,758 Exclude: v) Deferred tax in relation to fair value gains of IP 18,175 18,175 17
Slide 62: More financial highlights and debt breakdown 1Q23
More financial highlights and debt breakdown 1Q23 31/12/2022 31/03/2023 Debt breakdown* Gearing ratio 0.87X 0.85X Average lenght of long term debt 2.7 anni 2.4 anni Hedging on long term debt + bond 84.3% 84.5% Share of M/L debt 92.6% 83.2% Uncommitted credit lines granted 151€ mn 118€ mn Uncommitted
Slide 63: Contracts and key tenants Italy 1Q23
Contracts and key tenants Italy 1Q23 Malls Merchandise Turnover TOP 10 Tenant Contracts Category impact N 201 N 242 N 168 N 797 clothing 2.7% 11 clothing 2.6% 9 electronics 2.4% 9 Average residual maturity: 3.9 years clothing 2.0% 10 Total no. of contracts: 1,408. In 1Q 39 renewals and 15 turnovers
Slide 64: Contracts and key tenants Romania 1Q23
Contracts and key tenants Romania 1Q23 Merchandise Turnover TOP 10 Tenant Contracts Category impact Winmarkt supermarkets 11.7% 11 N 213 N 165 N 106 N 93 clothing 4.9% 11 clothing 3.8% 8 clothing 3.5% 6 drugstore 2.7% 5 healthcare 2.2% 4 offices 2.0% 1 Average residual maturity: 3.7 years jewellery
Slide 65: Merchandising & Tenants Mix 1Q23
Merchandising & Tenants Mix 1Q23 Italy Romania Merchandising Mix* Tenant Mix* 65 *Internal processing on sqm
Slide 66: Winmarkt Portfolio
Winmarkt Portfolio 2022-2024 Plan Main characteristics Highlights Extended network Approx. €5mn capex plan (safety, maintenance and environmental) Strategic locations Approx. €19.4mn of generated FFO Adaptable and flexible Approx. € 13.5mn assets of generated dividends Direct 100% self-financed mana
Slide 67: Porta a Mare Livorno Mixed-use project
Porta a Mare Livorno Mixed-use project D C A B A Piazza Mazzini C Officine Storiche • Retail: operating, 100% owned by IGD • Retail: >16k sqm, • Residential: 73 flats, sales completed • Residential: 42 flats, sales ongoing B Palazzo Orlando D Sub areas Lips, Molo Mediceo and Arsenale • Offices: sold
Slide 68: Italian Portfolio composition
Italian Portfolio composition 27 shopping malls 19 hypermarkets Tenants of hypermarkets CENTRO D'ABRUZZO - Pescara CENTRO D'ABRUZZO - Pescara Coop Alleanza 3.0 CLODI' - Chioggia CLODI' - Chioggia Coop Alleanza 3.0 PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Alleanza 3.
Slide 69: Raffaele Nardi Director of Planning, Control and investor relations
Raffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator T. +39 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 509260 f