Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — Non-Deal Roadshow (June 2005)
35 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, June 2005
Slide 1: Presentation to Institutional Investors
Presentation to Institutional Investors London June 2005 December 2004 N
Slide 2: Agenda
Agenda Ê OVERVIEW Ê COMPANY OVERVIEW Ê MARKET & COMPETITION Ê OPERATING HIGHLIGHTS Ê PORTFOLIO & NAV Ê SERVICE ACTIVITY Ê FINANCIALS Ê STRATEGY & 2005 OUTLOOK Ê MONDOVICINO Ê GUIDONIA JUNE Ê APPENDIX 2005 2 O
Slide 3: Overview
OVERVIEW ] COMPANY OVERVIEW [ xxx Ê Ê MARKET & COMPETITION JUNE 2005 3 P
Slide 4: IGD overview
IGD overview IGD is one of the main players in the retail segment of the Italian real estate sector COMPANY OVERVIEW IGD business is mainly focused on large shopping centres made up of: hypermarkets (with a surface area higher than 2,500 sqm) shopping malls (from 23 to 60 shops each) IGD h
Slide 5: IGD strengths
COMPANY OVERVIEW IGD strengths One of the leading players in the Italian retail real estate market Leading player in an outperformance in recent years attractive and growing increasing investors’ interest market scarcity factor due to restrictive planning permissions Coop Adriatica & Unico
Slide 6: Framework agreement with Coop Adriatica and Unicoop Tirreno
Framework agreement with Coop Adriatica and Unicoop Tirreno Signed on 27th October 2004 among IGD, Coop Adriatica and Unicoop Tirreno COMPANY OVERVIEW 5 year agreement (+5 year tacit renewal) Key terms and conditions for the Cooperatives: inform IGD, on a quarterly basis, of any new investme
Slide 7: IGD operates in the Italian real estate market
MARKET & COMPETITION IGD operates in the Italian real estate market Total Total sqm. sqm. shopping shopping centers/1,000 centers/1,000 2004 Italian market evolution inhabitants, inhabitants, 2003 2003 500 Sqm/1.000 inhabitants: ITALY % .0 250 21 219 300 200 181 % 215 ,6 225 72 190 150 126 160 0,0%
Slide 8: The Italian large scale food retailers market
MARKET & COMPETITION The Italian large scale food retailers market Cumulated delta of Coop Adriatica and Unicoop MDO Tirreno sales (iper-super) against the market average 4.2% Sisa Finiper 2,50% 4.2% 4.0% Pam 2,00% 21.3% 4.2% 1,50% Selex 1,00% 6.8% 0,50% Interdis Carrefour 8.1% 13.8% 0,00% Apr Mag G
Slide 9: IGD's competitive environment in the property activity
MARKET & COMPETITION IGD’s competitive environment in the property activity High IGD Immochan GCI1 Rodamco Europe Eurocommercial Klepierre Corio Focus on retail Aedes Real estate funds Beni Pirelli RE Stabili Low Small Real estate portfolio Large Since hypermarket operators remain the main develop
Slide 10: IGD's competitive environment in the real estate service business
MARKET & COMPETITION IGD’s competitive environment in the real estate service business The real estate services 3 business is highly 3 TOTAL 5 5 4 fragmented 5 SHOPPING CENTRES 9 7 6 2% 1% 1% 1% The largest players are 276 23 2% 2% 2% either controlled by or 28 3% 8% 3% linked through formal 31
Slide 11: Operating Highlights
OPERATING HIGHLIGHTS [ xxx Ê PORTFOLIO & NAV Ê SERVICE ACTIVITY JUNE 2005 11 NN
Slide 12: Property management and sub-leasing activity
Property management and sub-leasing activity Total gross rents on IGD Real Estate portfolio (€mm) PORTFOLIO & NAV IGD property management activity consists of: Rents from freehold properties Rents from leasehold properties – acquisition and development of retail real 49.8 48.5 estate assets 41.0 1
Slide 13: Freehold properties
Freehold properties Freehold properties breakdown by destination1 Market value of IGD freehold properties PORTFOLIO & NAV IGD freehold portfolio is approx. €555.2mm as of July 2004 7 shopping centre (hyper + mall) (CB Richard Ellis) 5 hypermarkets 3 plots of land Gross lettable area equal
Slide 14: Hypermarkets and supermarket: lease terms and main tenants
PORTFOLIO & NAV Hypermarkets and supermarket: lease terms and main tenants Main lease terms: Average maturity: from 6 to 18 years + 6 years Rents indexation: 75% of inflation rate Maintenance: ordinary and extraordinary maintenance works charged to the tenant. External maintenance of the prope
Slide 15: Shopping malls: lease terms and tenant mix
Shopping malls: lease terms and tenant mix Main lease terms: PORTFOLIO & NAV Average maturity: ■ lease agreement of the going concern1: 5 years ■ rental agreement: 6 years Rental income: a minimum guaranteed rent plus a percentage based on the occupier’s sales Key money (non-recurrent): from 2
Slide 16: Net Asset Value as of March 31, 2005
PORTFOLIO & NAV Net Asset Value as of March 31, 2005 Net Asset Value (€ mm) Total Portfolio market value - 30 July 2004 555,2 Total Portfolio book value 418,4 Embedded capital gain 136,8 Shareholders' Equity 374,9 NAV 511,7 Estimated Tax on capital gain (37.25%) 51 Net NAV 460,7 Net NAV / share 1,63
Slide 17: Portfolio performance
PORTFOLIO & NAV Portfolio performance People Performance of a selected group of shopping centres owned by IGD: 1Q05 vs 1Q04 growth 866,300 Average spending ticket Visiting shoppers 792,442 753,704 31,7% 581,166 13,7% 7,1% 3,1% 2,4% 3,2% -5,7% Borgo Esp D'Abruzzo Portogrande -24,7% Borgo Esp D'Abruzz
Slide 18: Real estate services
Real estate services IGD offers real estate services in the retail real estate segment through its subsidiary, Gescom. The SERVICE ACTIVITY real estate services include the following activities: agency and facility management The agency activity includes: ■ marketing and promotion activity of th
Slide 19: Financials
FINANCIALS [ xxx ] JUNE 2005 19 NV
Slide 20: Revenue growth and breakdown
FINANCIALS Revenue growth and breakdown Revenues 2002 – 1Q05 (€mm) CAGR 02PF-04PF 10.4% 58.3 60 0.8 52.4 1.2 7.8 0.3 50 0.3 2.0 43.0 0.7 14.7 40 1.3 15.9 13.2 Other Revenues 30 Revenues from Services 15.0% Capital Gains 20 32.6 35.0 13.0 11.3 Leasehold rents 27.7 0.3 10 0.3 3.7 3.6 Freehold rents 7.
Slide 21: EBITDA and EBIT Trend
FINANCIALS EBITDA and EBIT Trend Ebitda and Ebitda Margin (€mm) Ebit and Ebit Margin (€mm) CAGR 02PF-04PF 15.0% 19.7% 65.8% CAGR 02PF-04PF 20.7% 79.2% 65.6% 61.4% 62.6% 60.0% 35.8 34.1 35.8% 35.2% 33.0% 25.8 29.5% 20.9 18.5 21.7% 12.7 8.5 7.1 4.3 2.4 2002PF 2003PF 2004PF 1Q04 1Q05 2002PF 2003PF 2004
Slide 22: Fixed Assets and Capex
FINANCIALS Fixed Assets and Capex Capital Expenditure (€mm) Fixed Assets (€mm) Intangible Fixed Assets Contribution of Afragola shopping centre Pro-forma investments Land & Building 200 Net capex 500 Other Tangible Fixed Assets 172.8 450 180 5.2 6.2 13.2 160 400 350 5.9 140 72,5 120 300 100 250 368.
Slide 23: Capital Structure
FINANCIALS Capital Structure Net Debt as of March 31, 2005 (€mm) Total Capitalisation (€mm) 84.9% 84.5% 153,5 153,4 61.9% 31,8 196,1 191,6 136,7 142,3 374,8 31,8 15,1 230,0 231,0 226,6 ST Debt LT Debt Cash & Net Debt Equivalents 8.48% Interest Expense 2002PF 2003PF 2004 PF 1Q05 100% long term debt
Slide 24: Free Cash Flow
Free Cash Flow 1Q05 Free Cash Flow reconciliation* FINANCIALS -- - 5,3 11.8 4,3 4.2 1,9 - 2.3 0 Ebit Taxes** Ebit after taxes D&A Other provisions Change in NWI Free cash flow Historical cash flow reconciliation 2004 18.5 -8.0 10.6 15.3 0.3 -2.8 22.5 2003 20.9 -5.5 15.4 14.1 0.9 -6.2 23.3 2002 12.7
Slide 25: Strategy & 2005 Outlook
STRATEGY & 2005 OUTLOOK [ xxx ]ÊMONDOVICINO ÊGUIDONIA JUNE 2005 25 OR
Slide 26: Corporate strategy
STRATEGY & 2005 OUTLOOK Corporate strategy Acquire shopping centres, either recently developed or already operating, in under-retailed markets Expansion via Become the consolidator of the real estate portfolio owned by the Coops acquisitions and new ■ benefit from strong relationship with Coop w
Slide 27: Mondovicino
Mondovicino IGD signed an agreement for the acquisition of the shopping mall and retail park for a total MONDOVICINO GLA of approximately 18,000 mq, on April 26 . The shopping park “Parco Commerciale e per il Tempo Libero Mondovìcino”, located in Mondovì (Cuneo) will consist of: a hypermarket
Slide 28: Guidonia
Guidonia IGD signed an agreement, with non related parties for the acquisition of a shopping centre GUIDONIA located in Guidonia (Rome), on May 30. The shopping centre (Works will start by the end of 2005 and will last until 2007) will be composed by: a hypermarket: 8.500 sm, Coop (Unicoop Tir
Slide 29: Appendices
Appendices [ xxx ] JUNE 2005 29 OV
Slide 30: Mondovicino
MONDOVICINO Mondovicino JUNE 2005 30 PM
Slide 31: Mondovicino
MONDOVICINO Mondovicino JUNE 2005 31 PN
Slide 32: Mondovicino
MONDOVICINO Mondovicino JUNE 2005 32 PO
Slide 33: Mondovicino
MONDOVICINO Mondovicino JUNE 2005 33 PP
Slide 34: Roma Guidonia: The Project
ROMA GUIDONIA The Project Esercizi di vicinato (da 0 a 250 mq) - vendita Somministrazioni Chioschi Medie superfici (da 251 a 2.500 mq) - vendita Brico Ipermercato Ipermercato - Uffici Galleria Servizi pubblici Locali Tecnici, Guardiania, Centro Direzionale Scale di sicurezza Uscite di sicurezza JUNE
Slide 35: Corporate Governance
CORPORATE GOVERNANCE Corporate Governance IGD IGD adopted adopted a a strong strong code code of of Corporate Corporate Governance Governance Board of Directors: 15 members, of which 8 independent non executive directors Internal control committee, consisting of 3 non executive Board members of
Immobiliare Grande Distribuzione Siiq S.p.a. (IGD) — Non-Deal Roadshow (June 2005) on 6ix