Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2012 Earnings Presentation
42 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Feb 28, 2013
Slide 1: Results Presentation as at 31/12/2012
Conference call 28 February 2013 3.00 p.m. Results Presentation as at 31/12/2012
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Sec Act of 1933, as amended (the “Securities Ac
Slide 3: Highlights
3 Highlights REVENUES € 123.3 mn •Revenues from core business ( +1.7% vs 31/12/2011 ) EBITDA € 85.8 mn •EBITDA (core business) (-2.7% vs 31/12/2011) •EBITDA margin (core business) 69.6% (-3.1 percentage points) € 11.3 mn Group Net Profit (-62.4% vs 31/12/2011) € 35.9 mn Funds From Operations (FFO) (
Slide 4: Economic Context
ECONOMIC CONTEXT
Slide 5: The Italian economic context
5 The Italian economic context Household spending and retail GDP trend (change ( %) Evolution of retail investments trade (change%) 2 3.0 1,200 1 2.0 1,000 1.0 0 800 0.0 2008 2009 2010 2011 2012 2013 -1 -1.0 600 -2 -2.0 400 Retail trade -3.0 -3 200 -4.0 -4 Resident household 0 spending -5.0 Q1 07 Q2
Slide 6: The Romanian economic context
6 The Romanian economic context Completed new shopping center projects GDP trend (change %) (% year/total in the period) 8.0 10% 6.0 4.0 16% 2008 2.0 41% 2009 0.0 2010 2008 2009 2010 2011 2012 2013 2014 -2.0 2011 -4.0 13% 2012 -6.0 -8.0 20% Source: Eurostat and Oxford Economics Source: CBRE Outlook
Slide 7: Economic and Financial Results
ECONOMIC AND FINANCIAL RESULTS
Slide 8: Consolidated Income Statement
8 Consolidated Income Statement "PORTA A MARE" CONSOLIDATED CORE BUSINESS PROJECT €/000 31/12/2011 31/12/2012 % 31/12/2011 31/12/2012 % 31/12/2011 31/12/2012 % Revenues from freehold properties 107,369 109,555 2.0% 107,369 109,548 2.0% 0 7 n.a. Revenues from leasehold properties 8,537 8,573 0.4% 8,5
Slide 9: Margin for activities
9 Margin for activities CONSOLIDATED CORE BUSINESS "PORTA A MARE" PROJECT €/000 31/12/2011 31/12/2012 % 31/12/2011 31/12/2012 % 31/12/2011 31/12/2012 % Margin from freehold properties 94,809 93,351 -1.5% 94,809 93,344 -1.5% 0 7 n.a. Margin from leasehold properties 1,933 1,599 -17.3% 1,933 1,599 -17
Slide 10: Revenues from core business: +1.7%
10 Revenues from core business: +1.7% BREAKDOWN OF TOTAL REVENUES BY TYPE TOTAL REVENUES (€/000) OF ASSET 9.1% 122,915 Total 123,264 0.4% revenues 1,726 +0.3% 1.1% 5,284 5,136 Revenues from trading Core business MALLS + 1.7% Revenues from services HYPERMARKETS 28.1% 61.3% Revenues from CITY 115,906
Slide 11: Direct costs and G&A expenses core business
11 Direct costs and G&A expenses core business DIRECT COSTS CORE BUSINESS (€ 000) Increase in direct costs mainly due to: 27,741 +18.0% •IMU + € 2.8 mn (+63.4%) 23,520 OTHER DIRECT COSTS PROVISIONS • Prudent policy of PROVISIONS, increasing ICI/IMU 18,411 due to the challenging conditions in 17,109
Slide 12: Total consolidated Ebitda: € 85.7 mn
Total consolidated Ebitda: € 85.7 mn 12 Ebitda (core business): € 85.8 mn (-2.7%) CONSOLIDATED EBITDA (€ 000) 348 4,406 1,394 111 88,509 85,734 Ebida 31/12/2011 Change in Change in direct Change in Change in G&A Ebitda 31/12/2012 operating revenues costs increases, cost of sales and other EBITDA and
Slide 13: Group net profit: € 11.3 mn
13 Group net profit: € 11.3 mn GROUP NET PROFIT (€ 000) NET PROFIT EVOLUTION (€ 000) Tax rate adjusted 2,336 439 by change in FV 6.8% - 62.4% 30,057 17,303 30,057 97 4,097 5,309 11,288 11,288 31/12/2011 31/12/2012 Group net Change in Change in Change in Change in Change in Change in Group net profit
Slide 14: Funds From Operations
14 Funds From Operations FFO (€/000) 31/12/2011 31/12/2012 ∆ ∆% Pre-tax profit 29,142 4,966 -24,176 -83.0% Depreciation & other provisions 871 1,702 831 Of which: 95.3% • – € 2.5 mn due to Change in FV 14,122 30,594 16,472 116.6% decreased Ebitda Extraordinary management 887 746 -141 -15.9% (increas
Slide 15: Commercial Highlights
15 Commercial Highlights Footfalls in Italian shopping malls (L4L) +0.6% vs 31/12/2011 Tenant sales in Italian shopping malls (L4L) -3.1% vs 31/12/2011 Retailer sales in CNCC malls -3.2% Footfalls in Romanian shopping malls (L4L) +7% vs 31/12/2011 28 February 2013 2012 Results Presentation
Slide 16: The performance of our malls in FY 2012
16 The performance of our malls in FY 2012 TENANT SALES AND FOOTFALLS IN OUR SHOPPING MALLS MALL SALES IN ITALY (per month) 10.0% In December change in 8.0% 6.8% sales compared to 2011 is SALES FOOTFALLS 5.0% 4.2% better than the change in 4.5% 4.2% footfalls 2.3% 0.4% 1.8% 1.5% -0.1% -0.3% Total tr
Slide 17: Hypermarkets and shopping trends in FY 2012
17 Hypermarkets and shopping trends in FY 2012 HYPERMARKET/SUPERMARKET SALES IN ITALY Total trend LFL Total trend LFL Total trend LFL Total trend LFL Supermarkets + 0.0% -0.9% +0.3% -0.9% -2.1% -1.8% +2.2% +2.2% Hypermarkets Hypermarkets -1.2% -2.1% -2.1% -2.1% -4.9% -2.8% +2.2% +2.2% Supermarkets +
Slide 18: Tenants in Italy
18 Tenants in Italy Turnover TOTAL CONTRACTS TOP 10 Tenant Product category Contracts impact Miroglio group clothing 3.6% 34 Malls 1,027 Hypermarkets 19 clothing 3.1% 10 Total 1,046 COMPAR footwear 1.8% 9 clothing and sports 1.7% 3 equipment BRANDS BREAKDOWN IN MALLS footwear 1.6% 4 By turnover clot
Slide 19: Tenants in Romania
19 Tenants in Romania Turnover TOP 10 Tenant Product category Contracts impact TOTAL CONTRACTS 606 food 6.5% 8 electronics 6.1% 9 BRANDS BREAKDOWN IN MALLS By turnover jewellery 5.7% 12 footwear 3.9% 13 26% 35% services 3.3% 1 House of Art clothing (family) 3.3% 9 pharmacy 3.0% 8 39% household goods
Slide 20: Contracts in Italy and Romania
20 Contracts in Italy and Romania EXPIRY DATE OF CONTRACTS OF HYPERMARKET EXPIRY DATE OF CONTRACTS OF HYPERMARKETS AND AND MALLS IN ITALY (% no. of contracts) MALLS IN ITALY (% of value) 120% Nr. 19 120% 100.0% 100.0% 100% 100% 80% 80% Nr. 501 Malls Malls 60% 55.9% 60% Nr. 227 48.8% Hypermarkets/ Hy
Slide 21: Focus on Romania
21 Focus on Romania NEXT OPENINGS The consolidation strategy of 2013 - Buzau Winmarkt portfolio continues 2014 – Galati 2015 - Tulcea facade ↑ renovation and international introduction of international EBITDA MARGIN traffic generators interior renewal fitness and consolidation practices (index, cons
Slide 22: Igd spaces to be lived in…
22 Igd spaces to be lived in… Common approach to marketing continues to create a common identity maintaining individual local characteristics IGD gives precedence to social/cultural, environmental and sports events, to those paying particular attention to local characteristics and that involve young
Slide 23: The sustainability process continues…
APRIL 2013: 23 The sustainability process continues… 3° presentation 2012 was the first year where social responsibility activities were structurized. structurized Below are the most important results reached: IGD’S POSITIONING REINFORCED IN LOCAL AREA • “Spaces to be lived in”: increase in across-t
Slide 24: Portfolio
PORTFOLIO
Slide 25: Italian Portfolio
25 Italian Portfolio 51 REAL ESTE UNITS IN 11 ITALIAN REGIONS: 19 shopping malls and retail parks 19 hypermarkets and supermarkets 1 city center 4 plots of land for development 1 property held for trading 7 other Emilia Romagna 5 shopping malls, 8 hypermarkets-Super, 1 city center, 5 other, 1 land P
Slide 26: Romanian Portfolio
26 Romanian Portfolio 15 SHOPPING CENTERS + 1 OFFICE BUILDING IN 13 DIFFERENT ROMANIAN MEDIUM SIZED CITIES GEOGRAPHICAL DISTRIBUTION OF ROMANIAN PORTFOLIO 24% 15% x <= 100.000 H 100.000h < x <= 200.000 H x > 200.000 H 61% 28 February 2013 2012 Results Presentation
Slide 27: Italian and Romanian Portfolio
27 Italian and Romanian Portfolio BREAKDOWN BY TYPE OF IGD’S PORTFOLIO MARKET VALUE 9.3% 1.5% HYPERMARKET/ SUPERMARKET 5.7% MALLS 0.4% 2.3% 28.2% LANDS OTHER ASSET HELD FOR TRADING WINMARKT CITY CENTER 52.7% PORTFOLIO BREAKDOWN BY PORTFOLIO BREAKDOWN ITALY AND GEOGRAPHIC AREA IN ITALY (mkt value) RO
Slide 28: Breakdown of portfolio appraisals
28 Breakdown of portfolio appraisals PROPERTY % APPRAISER CATHEGORY PORTFOLIO 13.28% CBRE Hypermarket and supermarket 14.96% REAG 29.34% CBRE Shopping malls and RP 23.30% REAG City Center 1.45% CBRE 0.33% CBRE Other 0.03% REAG Asset held for trading 5.72% CBRE 1.69% CBRE Development and lands 0.56%
Slide 29: Market Value evolution
29 Market Value evolution ITALIAN Portfolio Change in income related LFL FV (hypermarkets hypermarkets, malls, city center and other): -1.55% of which: • HYPERMARKETS: 0.15% • MALLS and RETAIL PARKS: -2.51% MARKET VALUE EVOLUTION (€ 000) • OTHER: -1.96% 2,500,000 • CITY CENTER: 1.47% ITALY WINMARKT
Slide 30: Portfolio characteristics 1/2
30 Portfolio characteristics 1/2 € mn Mkt Value Mkt Value 31/12/2011 31/12/2012 LFL Italian portfolio (malls+hypermarkets+other) 1,574.15 1,548.95 City Center Project V. Rizzoli 27.30 27.70 Total income related portfolio in ITALY 1,601.45 1,576.65 -1.55% Winmarkt Romanian portfolio (malls + office b
Slide 31: Portfolio characteristics 2/2
31 Portfolio characteristics 2/2 ITALY ROMANIA HYPERMARKETS MALLS AVERAGE MALLS Financial occupancy 100% 96.29% 97.46% 89.36% Market value as at 31 December 2012 €mn 538.42 1,003.77 173.6 Compound average yield of total portfolio (gross initial yield) 6.59% 6.61% 6.72% The return on HYPERMARKETS (6.
Slide 32: NAV
32 NAV NNAV FY11 FY12 NNAV PS (€) 2.55 Market value ow ned properties, lands, direct 2.53 development initiatives, assets held for trading a 1,924.65 1,906.56 Investment properties, lands and development 2.31 initiatives, assets held for trading b 1,916.79 1,905.78 Potential capital gain c=a-b 7.86
Slide 33: Financial Structure
FINANCIAL STRUCTURE
Slide 34: Financial Highlights (1/2)
34 Financial Highlights (1/2) 31/12/2011 31/12/2012 GEARING RATIO 1.38 1.38 LOAN TO VALUE 56.9% 57.2% COST OF DEBT • Total 4.08% 4.29% • “Adjusted” (excluding figurative charges on bond) 3.71% 3.91% INTEREST COVER RATIO 2.04X 1.80X • Total • “Adjusted” (excluding figurative charges on bond) 2.24X 2.
Slide 35: Financial Highlights (2/2)
35 Financial Highlights (2/2 2) 31/12/2011 31/12/2012 AVERAGE LENGTH OF LONG TERM DEBT 11.5 years (BOND excluded) 10.2 years MID/LONG TERM DEBT RATE 81.8 % 56.3% The difference is so high due to the displacement of short term debts of the 80.8 % Convertible Bond HEDGING ON LONG TERM DEBT + BOND 76.1
Slide 36: Financial structure
36 Financial structure NET DEBT COMPOSITION (€ 000) 8,081 8,320 566,253 1,089,631 341,796 181,821 Short term debt Current share of long term Long term debt Potential mall and business Cash & cash equivalents Net debt debt division fees DEBT MATURITY (€ 000) 90,000,000 € 230 mn 80,000,000 CONV BOND 7
Slide 37: Net debt
37 Net debt NET DEBT CHANGE (€ 000) 11,152 24,639 31,920 5,933 6,804 12,796 1,094,397 1,089,631 Net debt 31/12/11 Net profit Depreciation, Change in NWC Change in other non CAPEX Change in Net debt 31/12/12 devaluation and current assets & shareholders' equity change in FV liabilities 28 February 20
Slide 38: Reclassified balance sheet
38 Reclassified balance sheet SOURCES/USE OF FUNDS (€ 000) FY11 FY12 ∆ ∆% Fixed asset 1,897,756 1,889,979 -7,777 -0.4% NWC 68,909 75,713 6,804 9.9% Other long term liabilites -70,644 -68,520 2,124 -3.0% TOTAL USE OF FUNDS 1,896,021 1,897,172 1,150 0.1% Net debt 1,094,397 1,089,631 -4,766 -0.4% Net (
Slide 39: Dividend
39 Dividend The IGD Board of Directors will ask the shareholders at the Annual General Meeting on 18 April 2013 to approve the distribution of a: dividend of € 0.07 per share DIVIDEND (€) DIVIDEND YIELD (%) on price at year-end 0.080 0.075 0.070 10.8% 8.5% 5.1% 2010 2011 2012 2010 2011 2012 A divide
Slide 40: Dividend Reinvestment Option
40 Dividend Reinvestment Option The Board of Directors at the Annual General Meeting to be held on 18 April 2013 will propose a share capital increase without pre-emption rights, to be offered to IGD Shareholders entitled to receive the 2012 dividend. Those who decide to agree to the capital increas
Slide 41: Dividend Reinvestment Option: steps
41 Dividend Reinvestment Option: steps Shareholders that own IGD shares on the trading day prior to Who can participate the 2012 going-ex dividend. The total offer will amount to 80% of the proposed 2012 dividend dividend. How much Each shareholder may reinvest an amount not exceeding 80% of their g
Slide 42: www.gruppoigd.it
www.gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 M. +39 3386211738 claudia.contarini@gruppoigd.it Raffaele Nardi T. +39. 051 509231 raffaele.nardi@gruppoigd.it Elisa Zanicheli T. +39. 051 509242 elisa.zanicheli@gruppoigd.it