Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (March 2021)
57 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, March 2021
Slide 1: Road Show presentation March 2021
Road Show presentation March 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with The securities referred
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 5 Dividend and Outlook Pag. 41 2 Operating performances in 2020 Pag. 10 6 Sustainability Pag. 44 3 Portfolio and projects Pag. 22 7 Appendix Pag. 46 4 FY2020 Financial results Pag. 31 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a Glance
IGD at a Glance IGD is the leading Italian listed developer and operator of Italian quality retail real estate properties: develops and manages shopping centers across the country and has also a presence in retail distribution in Romania IGD #1 italian retail SIIQ (REIT) - Portfolio €2,265.7mn Portf
Slide 6: IGD Business Model Explained
IGD Business Model Explained A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well Diversified Across Italy 39.2k GDP Per-capita 2 Strategic Positioning 3 Strong Food Anchor (COOP) 4 Strong Track-Record of Direct Management €34.6k – €42.6k 1 30.9k 35.2k 38.
Slide 7: Our shareholding structure
Our shareholding structure Listed on the Italian Stock Exchange in the STAR segment (“high requirements”) Freefloat equal to 45.02%, majority of institutional investors, of which* Italy Number of shares: 110,341,903 EUROPA PLUS (GWM) 30% Mediolanum, Banca d’Italia 4,20% UK & Ireland 1% Unicoop Tirre
Slide 8: Coop world and our main Shareholders
Coop world and our main Shareholders 7 Legal entities throughout Italy Coop world key data*: 17 Regions covered by Coop Turnover ~ EUR 14.7 bil € (12.9 % of italian large scale retail) No. of stores: ~1,200 Employees ~52,000 Members ~ 6.7 Mn people Coop Alleanza 3.0** Unicoop Tirreno** Revenues ~4.0
Slide 9: Our Top Management
Our Top Management Elio Gasperoni (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Chairman of IGD's Board since April 2017 • Appointed in May 2009 • Board member of IGD since 2015 • Board member at IGD since 2006 • He has held numerous roles in Public Adminstrations and Local • Mo
Slide 10: Operating performances in 2020
Titolo titolo 2 Operating performances in 2020 note 37
Slide 11: Covid-19 emergency in Italy
Covid-19 emergency in Italy Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 POSITIVE NATIONAL EASING NEW RESTRICTIONS START OF LOCKDOWN OF THE Closure of cinemas, gyms, bars and THE YEAR RESTRICIONS restaurants + Regions variable coloring system based on changes i
Slide 12: IGD's response to Covid-19
IGD’s response to Covid-19 IGD immediately implemented precautions and measures to ensure the safety of the shopping centre visitors TEMPERATURE MONITORING OBSERVE SOCIAL DISTANCING SANITIZING GEL DISPENSERS AVAILABLE TO VISITORS AIR RECICLYING MASK REQUIRED FROM OUTSIDE SANITATION OF STAGGERED ENTR
Slide 13: Negative trends due to restrictions…
Negative trends due to restrictions… Positive Lockdown Positive quick answer when the New restrictions start restrictions were eased 10% 0% -10% -20% -30% -40% -50% -60% ON AVERAGE YEAR 2020vs 2019 (Italy): -70% Mall tenants sales -27.6% (CNCC -29.9%)* -80% Hypermarket sales -2.8% Footfalls -29.5% (
Slide 14: …but no rushed conclusions
…but no rushed conclusions Evidence emerged after restrictions were eased*… Fewer but more targeted visits… Approx. 87% of footfalls recovered …with an increase in average ticket … € 26.0, +17% (+€3.8) …resulting in a slight increase in Tenant sales +0.3% overall purchases Quick answer from visitors
Slide 15: Performances diversified depending on merchandise category
Performances considerably diversified depending on the merchandise category MERCHANDISE CATEGORIES WITH MERCHANDISE CATEGORIES BETTER PERFORMANCES THAN MORE PENALIZED BY RESTRICTIONS IGD’S PORTFOLIO AVERAGE* ✓ Household goods ✓ Restaurants ✓ Consumer electronics ✓ Entertainment ✓ Personal and health
Slide 16: Maintained a controlled risk profile
Maintained a controlled risk profile 73.4% 26.3% MALLS of rental income HYPER of rental income LEASING ITALY MANAGEMENT • Always open FINANCIAL CONTRACTS: OCCUPANCY* • The shopping centres’ civil role • No changes on existing Renewals 55 turnover 46 (downside -0.38%) 94.3% contracts became even stro
Slide 17: 2020 Rent collection rate
2020 Rent collection rate* Italian Porfolio Romanian Porfolio Collected>91% Collected>94% To be collected in To be collected in 2021<9% 2021<6% of which 2,5% collected at 28/02/2021 *% on invoiced rent net of reductions and loss on receivables 17
Slide 18: Leasing and commercial activities did not stop
Leasing and commercial activities did not stop The evolution in consumption styles, accelerated by Covid, has led us to innovate by means of digital communication and the introduction of new brands and services in the malls NEW MERCHANDISE CATEGORIES DIGITAL COMMUNICATION AND INTRODUCED TENANT INITI
Slide 19: Retailers continued to open in Italy…
Retailers continued to open in Italy… Frwrd - Le Porte di Napoli (NA) Chicco - La Torre (PA) – Tiburtino (RM) Wycon cosmetics - Katanè (CT) JD Store - Centro Nova (BO) Pepco - Centro Borgo (BO) Mondo Convenienza - ESP (RA) Little Italy Barber Shop - Centro Kasanova - Centro d’Abruzzo (CH) Leonardo (
Slide 20: …and in Romania
…and in Romania KIK (clothing) - Cluj KIK (clothing) - Slatina Bijuteria Stil (jewellery) - Braila Bijuteria Stil (jewellery) - Tulcea Cofetaria Oli (restaurant) - Ploiesti Big Mageda Crafts (gift items) - Ploiesti GC 20
Slide 21: True omnichannel passes through the shopping center
True omnichannel passes through the shopping center IGD’s path toward omnichannel Definition of the first Digital Definition of a dialogue Marketing Plan and between tenants and implementation of a Customer customers which can benefit Relationship Management of personalized offering Installation of
Slide 22: Portfolio and projects
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Slide 23: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets Centro Sarca North Sesto S.Giovanni Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro (MI) Ravenna Faenza (RA) Bologna Bologna Forlì IGD - Main Centro Leonardo Conè Centro Piave San Donà di Clodì Centro Nova Villanova di Mondovicino Sc&Rp Imola (BO) Coneg
Slide 24: The main characteristics of our portfolio
The main characteristics of our portfolio 2,265.7 € mn 42% of this portfolio consists of 8 “Key” assets of which 6 are Shopping centres (mall + hypermarket) On average every shopping centre is 10 years old Romania (last restyling/opening) 6% North western Italy 15% Southern Italy 12% Full ownership
Slide 25: IGD's portfolio market value (1/2)
IGD’s portfolio market value (1/2) Gross Initial EPRA Net Initial EPRA Net Initial FY 2019 * FY 2020 Δ% Yield Yield Yield topped up Malls Italy 1,574.54 1,473.30 (-6.43%) 6.53% 5.3% 5.4% Hypermarkets Italy 564.58 558.97 (-0.99%) 6.02% Romania 150.29 138.64 (-7.75%) 7.35% 6.0% 6.2% Porta a Mare + dev
Slide 26: IGD's portfolio market value (2/2)
IGD’s portfolio market value (2/2) ITALY ROMANIA € 2,381.4mn 7.5 7.5 Other 3.9% (91.99 €mn) Romania 6.3% -115.3 (150.29 €mn) -115.3 € 2,265.7mn 10.3 -6.5 0.5 -12.2 10.3 Other 4.2% -6.5 0.5 -12.2 (94.78 €mn) Romania 6.1% (138.64 €mn) FV change is due to DCF 2,381.4 assumptions (rates) for Malls 66.1%
Slide 27: EPRA Metrics
EPRA Metrics € per share FY 2020 FY 2019 Δ% NRV and NAV 10.38 11.40 -8.9% NTA 10.31 11.29 -8.7% NDV 10.42 10.81 -3.6% -0.23 0.54 -1.32 0.00 11.40 10.38 EPRA NRV/NAV 31 Resolved dividend FFO Change in asset fair Change in financial EPRA NRV/NAV 31 Dec 2019 value instruments fair Dec 2020 value and ot
Slide 28: Strong repositioning of the Romanian Portfolio
Strong repositioning of the Romanian Portfolio 1 5 9 13 2 6 10 14 1 7 2 Bistrita Piatra Neamt 8 Cluj-Napoca Vaslui 7 11 3 9 3 Turda Galati 14 Key Strategical points 4 10 1 13 12 Ramnicu Valcea 1 Buzau Braila Tulcea • Further capex Ploiesti for safety, maintenance 5 4 8 12 and commercial Slatina Bucu
Slide 29: Flexible and sustainable asset management
Flexible and sustainable asset management 2020 2021/2022 ✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities, solidity some projecys and capex were extraordinary maintenance, update of postponed as early March 2020. systems as well as fit out adaptations in order t
Slide 30: 2021-2022 Projects
2021-2022 Projects CASILINO PORTO GRANDE LA FAVORITA PORTA A MARE (Officine Storiche – retail/residential) Asset Restyling and Restyling Restyling Creation of more Description hypermarket/mall than 15,000 m² remodeling devoted to retail + 42 seafront flats End of work H1 2022 End of 2022 End of 2022
Slide 31: FY2020 Financial Results
4 FY2020 Financial Results
Slide 32: FY 2019 and FY2020 main results
FY 2019 and FY2020 main results 2019 vs 2018 2020 vs 2019 REVENUES Rental Income €155.3 mn +2.3% €145.6mn -6.2% Net Rental Income €136.6mn +10.1% €109.5 mn -19.8% EBITDA EBITDA (Core Business ) €125.2 mn +10.1% €99.4 mn -20.6% EBITDA Margin (Core Business) 77.5% +560pts 65.4% -121pts EBITDA Margin F
Slide 33: Net Rental Income
Net Rental Income (€mn) -€8.6mn Italy -€27.1mn -6.3% -19.9% -19.8% Romania -19.3% -5.3 -3.3 -18.5 * 136.6 128.0 109.5 Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020 Malls Italy -€4.0mn: Increase in dire
Slide 34: Core business Ebitda
Core business Ebitda (€mn) -€7.3mn -€25mn -5.8% -20.6% -8.6 1.1 0.2 -18.5* 125.2 117.9 99.4 Ebitda 2019 Net Rental Income Net Service Income Change in G&A expenses Ebitda 2020 adj COVID net direct impact Ebitda 2020 Decrease in G&A expenses (-8.8%) EBITDA MARGIN Thanks to the Group’s cost cutting Co
Slide 35: Financial management
Financial management (€mn) Figure, net of accounting items and negative carry, is further decreasing (-4.7% vs FY2019) Total Total € 36.8mn € 36.2mn -4.7% 3.8 Negative carry 5.45.4 3.8 €400mn bond issue + SACE 2.8 2.8 IFRS16 and non-recurring charges 31.0 29.6 31.0 29.6 Finacial Mgt. Adj: -€1.4mn vs
Slide 36: Funds From Operations (FFO)
Funds From Operations (FFO) -€5.5mn -€24.0mn -6.6% -28.8% -7.3 0.2 1.4 FFO p.s. -18.5 0.54€ 83.3 77.8 59.3 FFO_2019 Change in core Change in financial Change in taxes and FFO_2020 adj COVID net direct FFO_2020 business Ebitda adj* management adj other impacts The result is substantially in line with
Slide 37: Financial activities during the year
Financial activities during the year Committed €36.3mn loan Ratings: Early repayment credit lines granted by Banca of the Notes renewed by 2 Monte dei Paschi di Fitch »300,000,000 2.500 leading credit Siena guaranteed BBB- negative per cent. Notes due institutions (€40mn by SACE Spa (6 31 May 2021»
Slide 38: Financial structure
Financial structure Debt breakdwon* Net debt €1,155.5 mn** MARKET SECURED 56.5% 25.0% BANKING SYSTEM 43.5% L.T. 1,272.80 UNSECURED 75.0% CASH -117.34 31/12/2019 31/12/2020 LTV 47.6% 49.9% • Net Debt remained nearly (adj. IFRS16 c. 46.4%) (adj. IFRS16 c. 47.8%) stable during the year (€1,162mn in 201
Slide 39: Debt maturity
Debt maturity €100mn: 2.25% 7y €400mn: 2,.25% 5y 2.1% 5y* 2.65% 500 7y 209 2.5% 5y 154 71 9 2 9 67 7 52 53 46 25 27 6 2021 2022 2023 2024 2025 2026 >2026 Secured bank debt Unsecured bank debt Bonds Taking into account the cash-on-hands equal to €117mn and the committed and uncomitted credit lines, t
Slide 40: Disposals to rebalance the financial structure
Disposals to rebalance the financial structure ✓ Consistent with 2019-2021 Strategic Plan, the procedure for the disposal of a portfolio of stand-alone hypermarkets/supermarkets was started ✓ Mandate granted to CBRE, a premiere international advisor ✓ Value approx. €185mn Asset class with a Attracti
Slide 41: Dividend and Outlook
5 Dividend and Outlook
Slide 42: Dividend
Dividend 2020 Next few years ✓ Loss of the Parent company IGD SIIQ SPA ✓ As soos as external conditions allow, IGD ✓ Safeguard of the financial stability and the intends to resume paying dividends and investment grade profile providing its shareholders with attractive remuneration NO DIVIDEND IGD sh
Slide 43: Outlook
Outlook The first few months of 2021 will undoubtely still be difficult for shopping center operations due to the restrictions that are still in place, and it is therefore plausible that the Company will again be impacted directly and indirectly by the pandemic Basic assumptions • Effective implemen
Slide 44: Sustainability
6 Sustainability
Slide 45: Sustainability: commitment continues despite the pandemic
Sustainability: committment continues despite the pandemic Most short-term goals achieved, work in progress on the medium/long-term targets. GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER • €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the energy
Slide 46: Appendix
Titolo titolo 7 Appendix note 65
Slide 47: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (b) Δ FY_CONS_2019 FY_CONS_2020 (b)/(a) Revenues from freehold rental activities 142.7 133.8 -6.3% Revenues from leasehold rental activities 12.6 11.9 -5.6% Total income from rental activities 155.3 145.6 -6.2% Rents and payable leases 0.0 0.0 -27
Slide 48: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds (€/000) 31/12/2020 31/12/2019 Δ Δ% Fixed assets 2,234,484 2,365,214 130,730 5.9% Assets under construction 42,673 40,827 -1,846 -4.3% Other non-current assets 17,374 21,845 4,472 25.7% Other non-current liabilities -29,130 -28,998 132 -0.5% NWC 29,1
Slide 49: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations CONS_2019 CONS_2020 Δ 2019 Δ% * Core business Ebitda 125.194 99.446 -25.7 -20.6% IFRS16 Adjustment (Payable leases) -10.302 -10.31 0.0 0.1% Financial management adj -31.384 -33.405 -2.0 6.4% Extraordinary management adj 0.000 0.000 0.0 n.a. Current t
Slide 50: Other Epra metrics
Other Epra metrics EPRA Performance Measure 31/12/2020 31/12/2019 EPRA NRV/NAV (€'000) 1,145,827 1,258,008 EPRA NRV/NAV per share € 10.38 € 11.40 EPRA NTA 1,137,258 1,245,473 EPRA NTA per share € 10.31 € 11.29 EPRA NDV 1,149,534 1,192,894 EPRA NDV per share € 10.42 € 10.81 EPRA Net Initial Yield (NI
Slide 51: More financial highlights
More financial highlights 31/12/2019 31/12/2020 Gearing ratio 0.95X 1.03X Average lenght of long-term debt 4.1 years 3.2 years Hedging on long term debt+ bond 94.8% 93.0% Share of M/L debt 95.4% 98.3% Uncommitted credit lines granted €161 mn* €151 mn* Uncommitted credit lines available €161 mn €151
Slide 52: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls 27 shopping malls 25 hypermarkets Tenants of hypermarkets Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0 Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0 Porto Grande - Porto d'Ascoli (AP) Porto Grande - Porto d'Ascoli (A
Slide 53: Contracts and key tenants Italy
Contracts and key tenants Italy Malls Product Turnover TOP 10 Tenant Contracts category impact N 237 N 202 N 208 N 768 clothing 3.0% 14 54.3% 16.8% 14.3% 14.7% clothing 2.5% 9 2021 2022 2023 >2023 clothing 2.1% 10 Average residual maturity: 4.2 years Top 10 Tenants Gallerie electronics 2.1% 8 Total
Slide 54: Contracts and key tenants Romania
Contracts and key tenants Romania Product Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarket 11.1% 11 N 261 N 144 N 39 N 69 clothing 7.2% 6 clothing 5.2% 10 33.0% 34.0% clothing 4.6% 11 23.0% 10.0% drugstore 2.8% 5 jewellery 2.2% 5 2021 2022 2023 >2023 personal care 2.2% 4 offices
Slide 55: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Culture, leisure, gift Supermarkets Household Household goods Restaurants items 11% goods 5% 7% 3% Culture, leisure, 9% gift items Electronics Personal care Electronics 6% 11% 4% 2% Personal care Services 4% 9% Services 7% Merchandising Restaurants Mix* 7% E
Slide 56: Governance Directors and Committees
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 Chairman CEO Executive Elio Gasperoni Claudio Albertini Vice Chairman Ro
Slide 57: Investor relations contacts
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