Plaza Centers N.V. · LSE:PLAZ
Plaza Centers — H1 2015 Earnings Presentation
24 slides from Plaza Centers's earnings presentation, Aug 18, 2015
Slide 1: Results for the six months ended 30 June 2015
Results for the six months ended 30 June 2015 18 August 2015
Slide 2: Agenda
Agenda SECTION 1 Company Overview SECTION 2 Financial Highlights SECTION 3 Operational Highlights 2
Slide 3: Company Overview
Company Overview Plaza Centers is a leading emerging markets property developer, focusing on western-style shopping and entertainment centers Business Description Real Estate Portfolio • 19-year track record of developing shopping & entertainment Plaza Centers N.V. centers in CEE - Plaza Centers has
Slide 4: Portfolio Summary – by Country
Portfolio Summary – by Country Total portfolio of 24 assets in nine countries 3 4 1 2 3 1 2 2 1 1 1 1 1 1 Poland Serbia India Romania Hungary Czech Bulgaria Greece Latvia Republic Completed & Active (5) Offices (2) For Development (5) Plots Pipeline (12) 4
Slide 5: Plaza Centers - Operating Assets
Plaza Centers - Operating Assets Poland Location Torun, Poland • Operating shopping and entertainment centre Shopping and entertainment • Located in Central Poland Concept centre • Opened to the public in November 2011 GLA (sqm) 40,000 • External Valuation 12/2014: €96.3M Torun Plaza Occupancy 93% •
Slide 6: Plaza Centers - Operating Assets
Plaza Centers - Operating Assets Latvia Location Riga, Latvia • Operating shopping and entertainment centre Shopping and entertainment • Located in the capital of Latvia Concept • Opened to the public in March 2009 centre GLA (sqm) 49,000 • Plaza Centers’ share: 50% • External Valuation 12/2014: €90
Slide 7: Company Overview - Competitive Strengths
Company Overview Plaza has the ability to identify new growth opportunities, constantly targeting attractive returns in fast growing emerging markets Competitive Strengths • Flexibility and ability to anticipate and adapt to market • Strong brand name — Plaza Centers has become a trends — Plaza is w
Slide 8: Company Overview - Capital Markets Milestones
Company Overview - Capital Markets Milestones Plaza’s shares are traded on the Main Board of the London Stock Exchange (LSE), listed on the Warsaw Stock Exchange (WSE) and on Tel-Aviv Stock Exchange Capital Markets Shareholding Structure • On 1 November 2006, Plaza raised ₤166m (€247m) from its IPO
Slide 9: Historical Business Cycle (1996-2015)
Company Overview - Historical Business Cycle (1996-2015) 19 year track record of developing shopping & entertainment centers in CEE — Plaza Centers has been active in the region since 1996 and was the first to develop western-style shopping and entertainment centres in Hungary 1996 First investment
Slide 10: Historical Business Cycle (1996-2015) – cont.
Company Overview - Historical Business Cycle (1996-2015) – cont. 19 year track record of developing shopping & entertainment centers in CEE — Plaza Centers has been active in the region since 1996 and was the first to develop western-style shopping and entertainment centres in Hungary 2012 Opening o
Slide 11: Latest Transactions (2013-2015)
Latest Transactions (2013-2015) India May 2013: Completed the sale of Plaza’s 50% interest in a vehicle which mainly holds interests in an office complex project located in Pune, India, generating gross cash proceeds of circa €16.7 million May 2015: Sold Koregaon Park Plaza Shopping and Entertainmen
Slide 12: Latest Transactions (2013-2015)
Latest Transactions (2013-2015) Romania September 2014: Completed the sale of a 31,500 sqm plot in Targu Mures, Romania, generating cash proceeds of €3.5 million. December 2014: Completed the sale of a 41,000 sqm plot in Hunedoara, Romania generating cash proceeds of €1.2 million. May 2015: Complete
Slide 13: Company’s Debt
Company Overview – Company’s Debt Debentures repayment schedule before and after restructuring Original Debentures Repayment Schedule – Debentures Repayment Schedule post restructuring* – Principle & Interest (€ M) Principle & Interest (€ M) 90,0 120,0 80,0 112,9 82,5 78,5 100,0 70,0 93,3 60,0 80,0
Slide 14: Financial Highlights
Financial Highlights Successful sale of non-core assets saw total assets reduce to €428 million (31 December 2014: €466 million), primarily due to the divestment of Koregaon Park Plaza Book value of the Company’s Trading property decreased by 12% (€46 million) over the period, primarily due to the d
Slide 15: Financial Highlights cont.
Financial Highlights cont. Across our core shopping centres (excluding Riga Plaza), NOI rose by circa 8% compared to the first six months of 2014 Loss narrowed in the first half of 2015 to €36 million (first half of 2014: loss of €98.5 million), stemming from €28 million of mostly non-cash net finan
Slide 16: Financial Overview Results (€ 000) cont.
Financial Overview Results (€ 000) cont. Six months ended June 30, 2015 2014 Continuing operations Revenue from disposal of Trading Property 34,684 - Rental income 9,785 11,693 Revenues from entertainment centres 368 870 44,837 12,563 Cost of Trading Property disposed (34,684) - Cost of operations (
Slide 17: Financial Overview Results (€ 000) cont.
Financial Overview Results (€ 000) cont. Six months ended June 30, 2015 2014 Write-down of Trading Property (1) (6,761) (69,716) Loss from disposal of equity accounted investees - (4,048) Share in profit of equity-accounted investees (“EAI”), net of tax 171 414 Administrative expenses, excluding res
Slide 18: Financial Overview Results (€ 000) cont.
Financial Overview Results (€ 000) cont. Six months ended June 30, 2015 2014 Finance income(1) 3,794 211 Finance costs(2) (32,140) (27,486) Net finance costs (28,346) (27,275) Loss before income tax (35,740) (98,673) Tax benefit (income tax) (253) 113 Loss from continuing operations (35,993) (98,560
Slide 19: Financial Overview (Cont.) – Notes to the Results
Financial Overview (Cont.) NOTES TO THE RESULTS (1) Finance income increased to €2.4 million from €0.2 in 2014 mainly due to collection of premiums from selling of currency call options, as well as €1.4 million gain due to waiver agreement of a bank facility in one of the sold projects in Romania; (
Slide 20: Company Net Operating Income (“NOI”)
Company Net Operating Income (“NOI”) The following table presents the NOI performance of shopping centres for H1 2015: Shopping centre NOI 6M 2015 (€M) NOI 6M 2014 (€M) Remarks name Torun 3.8 3.3 TK Maxx major tenant opening in late March 2014. Kragujevac - 1.9 The asset was sold effective 31.08.14.
Slide 21: Company Trading property breakdown
Company Trading property breakdown Asset name Value June 30, 2015 (€M) Remarks Casa Radio (Romania) 116.2 Torun (Poland) 68.7 Suwalki (Poland) 39.5 Visnjicka- Sport Star (Serbia) 18.9 Liberec (Czech Republic) 10.8 Zgorzelec (Poland) 13.5 Belgrade MUP (Serbia) 13.3 Subtotal 280.9 Other plots, aggrega
Slide 22: Debt structure of the Group
Debt structure of the Group Debt Structure – June 30, 2015 € million Debentures(1) 212 CEE - operating malls(3) 145 Debt Bank Loans CEE - projects under development and others(4) 9 Total Debt 366 Liquid balances - Consolidated 35 Resources Financial Instruments and restricted bank deposits 11 Total
Slide 23: Operational Highlights
Operational Highlights Further to the announcement of 13 May, the Company has now completed the sale of Koregaon Park Plaza, the retail, entertainment and office scheme located in Pune, India for c. €35 million (2,500 million INR), as part of its ongoing strategy to refocus on the core geographies o
Slide 24: Operational Highlights (cont.)
Operational Highlights (cont.) A stable occupancy level was recorded across the Company’s existing shopping and entertainment centres in the CEE, with the overall portfolio occupancy level decreasing slightly to 93,11% as of 30 June 2015 compared to 94% at 31 December 2014. Footfall was strong acros