Metrovacesa Sa · BME:MVC
Metrovacesa Sa — Q1 2018 Earnings Presentation
25 slides from Metrovacesa Sa's earnings presentation, May 11, 2018
Slide 1: Q1 2018 Results
Q1 20 = 11.May.2018 metrovacesa
Slide 2: Disclaimer
Disclaimer This Presentation neither constitutes nor forms part of any offer for sale or invitation to purchase or subscribe for, or request for an offer of purchase or subscription, of the shares belonging to Metrovacesa, SA (“Metrovacesa”). This Presentation, as well as the information included th
Slide 3: Agenda
Agenda Table of Contents 1. Key Business Highlights 2. Business Update 3. Financial Overview 4. Closing Remarks 5. Appendix / Recent case studies Today’s Presenters Jorge Perez de Leza CEO Borja Tejada CFO Pablo Ortiz IR 3.
Slide 4: 1. Key Business Highlights
Mundo Aguilón. Feel Priviledge (Pulpí, Almería) 1. Key Business Highlights
Slide 5: Portfolio as of Q1 2018
Portfolio as of Q1 2018 Sales Backlog (2) 2,959 active units 1,422 units and €294k/unit Business 62 developments active 34 developments under ASP (1) 593 €149m commercialization Sold units 1,003 24 units under developments construction under construction €245k/unit Commercial business 36 Turnkey pro
Slide 6: 2. Business Update
Albácora Village (Isla Cristina, Huelva) 2. Business Update
Slide 7: Residential launches and active units: in line with our target
Residential launches and active units: in line with our target Active units Q1 Launches – Geographical split (1) Key considerations # units 854 Levante 8% 2,959 (36) Catalonia 12% Center-North 33% • Total active units reaching 2,959 which 2,141 represent 45% of gross active units expected Total in 2
Slide 8: Residential sales and commercialization evolution. 88 units sold in Q1
Residential sales and commercialization evolution. 88 units sold in Q1 88 units sold, 593 units of sales backlog (1) 42% of units under commercialization already sold # units €m Order book # units 44% 42% 135.1 (8.8) 23.0 149.3 % sales over 88 593 units under 541 1,422 commercialization 1,222 (36) 8
Slide 9: Residential: main projects in commercialization and under construction
Residential: main projects in commercialization and under construction Project Status Region # Units Expected % Sales % Construction Delivery Date Completion Under construction/ East Andalusia 197 2018-2019 19% (1) 99% (2) Delivery Mundo Aguilon Feel Priv. Under construction Madrid 132 2018 100% 81%
Slide 10: Residential: 36 deliveries in Q1 2018
Residential: 36 deliveries in Q1 2018 Main residential developments delivered Terrazas III (9 units) Mirador de San Blas I (19 units) Location Marbella, Málaga Location Alicante Region Costa del Sol Region Levante Units 13 Units 32 Sqm for sale 2,154 Sqm for sale 3,745 Construction Company Teginser
Slide 11: Commercial and Land business: Quarterly Update
Commercial and Land business: Quarterly Update Target 2018 Status Additional information Preliminary agreements Sale of Almogavers expected to close Land • Almogavers (Barcelona): €22m during Q2 2018. Agreed sale price in line Sales > €30m • Other: €8m with current GAV Advanced negotiations (LOI) €1
Slide 12: 3. Financial Overview
Villas de Alhakén (Córdoba) 3. Financial Overview
Slide 13: Profit and Loss Account: Breakeven net result
Profit and Loss Account: Breakeven net result Summary P&L (1) Key considerations (€m) YTD Mar. 18 A Revenues 8.8 Cost of sales (6.8) • 36 units delivered (€245k/unit) A Gross margin 2.0 • 23% gross margin in line with guidance for 2018 % Gross margin 23% · 24.7% residential development Wages & salar
Slide 14: Balance Sheet
Balance Sheet Summary Balance Sheet (1) Key considerations (€m) Dec. 2017 Mar. 2018 A A Investment property (2) 370.6 370.3 Other non- current assets 177.3 176.9 • Book value (inventory + investment property): €2.3Bn Total non-current assets 547.9 547.2 · Updating valuation in June 2018 A Inventory
Slide 15: Cash Flow Statement
Cash Flow Statement Summary Cash Flow Statement (€m) Dec. 2017 Mar. 2018 Key considerations EBT (78.1) (2.8) Changes in trade provisions 65.8 (7.5) A Changes in investment properties (1.4) - Financial cost / (income) - 1.4 • Shareholders contribution pre-IPO for MIP and prepaid CIT (2) (€10.2m) Othe
Slide 16: Fully-funded business plan and leverage in ramp up
Fully-funded business plan and leverage in ramp up Net debt position (1) Key considerations (€m) Dec. 2017 Mar. 2018 Adjusted gross debt 38.1(2) 73.2 • Prudent leverage strategy Corporate Financing • Net debt according to IPO guidance • Prioritizing the use of cash to minimize financial expenses Non
Slide 17: 4. Closing remarks
Villas Bahía de las Rocas (Manilva, Málaga) 4. Closing remarks
Slide 18: Reconfirming 2018 Targets
Reconfirming 2018 Targets Residential Commercial Land Management Leverage 3,500 - 4,000(1) 36,000 sqm Land Sales > €30m LTV < 25% units launched launched (equivalent to 388-444k sqm) Gradually reach 83% of fully permitted GAV (in 12-18 months since IPO) 520 units to be delivered Notes (1)Estimated n
Slide 19: Closing remarks
Closing remarks Strong real estate market fundamentals across the different submarkets 2018-19 deliveries well on track Sales momentum aligned with the ongoing sharp increase in projects under commercialization HPA growth absorbing construction cost increase Continuous value creation effort through
Slide 20: 5. Appendix
Residencial Vivaldi (Sagunto, Valencia) 5. Appendix Case Studies
Slide 21: Residencial Novolérez (under project design)
Residencial Novolérez (under project design) Key metrics Key highlights Location Pontevedra • Residencial Novorélez is located in Pontevedra, Region Galicia Galicia Units 96 • 92 multy-family homes (1, 2, 3 and 4 bedrooms) over 8 floors Sqm for sale 12,425 • 189 parking spaces and 92 storage rooms C
Slide 22: Residencial Vivaldi (in commercialization)
Residencial Vivaldi (in commercialization) Key metrics Key highlights Location Puerto de Sagunto, Valencia • Residencial Vivaldi is located very close to the Region Levante beach of Sagunto and to commercial and Units 21 recreational areas • 21 attached single-family homes (4 and 5 Sqm for sale 3,50
Slide 23: Lago de Arrosadía (under construction)
Lago de Arrosadía (under construction) Key metrics Key highlights Location Pamplona • Lago de Arrosadía is located in the southern part Region Navarre of Pamplona, next to the three universities Units 41 • This area has recently experienced a remarkable expansion Sqm for sale 6,411 • 38 multi-family
Slide 24: La Reserva de Sotorebolo (delivered)
La Reserva de Sotorebolo (delivered) Key metrics Key highlights Location Algeciras, Cádiz • Reserva de Sotorebolo is located in the city of Region West Andalusia Algeciras, in the province of Cádiz Units 8 • It consists of 8 villas (4 bedrooms) where quality and design is present in all its finishes
Slide 25: Q&A
Cancelada R4. Le Mirage III (Estepona, Málaga) Q&A